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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended July 31, 1996
or
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission file number 0-13399
LATEX RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Delaware 73-1405081
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4200 East Skelly Drive
Suite 1000
Tulsa, Oklahoma 74135
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 747-7000
Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class Name of Each Exchange on Which Registered
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<S> <C>
Common Stock, $0.01 par value per share Pacific Stock Exchange
Common Stock Purchase Warrants Pacific Stock Exchange
</TABLE>
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.01 par value per share
(Title of Class)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 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
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Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of the Regulation S-K is not contained herein, and will not be
contained, to the best of the Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [_]
The aggregate market value of the Registrant's voting stock held by
non-affiliates as of October 25, 1996 was approximately $4,830,888 (based upon
the average of the high bid and closing asked prices on such date).
On October 25, 1996 there were 19,805,495 shares of the Registrant's
common stock issued and outstanding.
Documents Incorporated by Reference
NONE
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LATEX RESOURCES, INC.
FORM 10-K
FISCAL YEAR ENDED JULY 31, 1996
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TABLE OF CONTENTS
PART I
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Page
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<S> <C> <C>
Item 1. Business................................................................................. 3
Item 2. Properties............................................................................... 3
Item 3. Legal Proceedings........................................................................ 21
Item 4. Submission of Matters to a Vote of Security Holders...................................... 23
PART II
Item 5. Market for Registrant's Common Equity and Related Shareholder Matters.................... 23
Item 6. Selected Financial Data.................................................................. 24
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations................................................................... 26
Item 8. Financial Statements and Supplementary Data.............................................. 37
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure................................................................ 38
PART III
Item 10. Directors and Executive Officers of the Registrant....................................... 38
Item 11. Executive Compensation................................................................... 40
Item 12. Security Ownership of Certain Beneficial Owners and Management........................... 46
Item 13. Certain Relationships and Related Transactions........................................... 48
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports
on Form 8-K............................................................................. 49
Signatures............................................................................... 61
</TABLE>
Certain statements in this Report under the captions "Item 1. Business and
Item 2. Properties" and Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations", and elsewhere in this Report
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual result, performance or achievements of the
Company, or industry trends and results, to be materially different from any
future results, trends, performance, or achievements expressed or implied by
such forward-looking statements. Such risks, uncertainties and other factors
include, among others, the following: general economic and business conditions;
oil and gas and other industry conditions and trends, including supply and
demand; fluctuations in the prices for oil, gas and refined products;
competition; import protection and regulation (including the implementation of
the World Trade Organization and North American Free Trade Agreement; the loss
of any significant customers; changes in business strategy or development plans;
quality of management; availability, terms and deployment of debt and equity
capital; business abilities and judgment of personnel; availability of qualified
personnel; changes in or the failure to comply with government regulations; and
other factors referenced in this Report. See "Item 1. Business and Item 2.
Properties - Cautionary Statement and Risk Factors."
Without limiting the foregoing, as disclosed in "Item 1. Business and
Item 2. Properties--Proposed Merger with Alliance Resources Plc," the Company
has entered into an Agreement and Plan of Merger with Alliance Resources PLC
("Alliance") pursuant to which the Company will merge (the "Merger") with a
wholly-owned subsidiary of Alliance. Pursuant to the Merger, two of the current
directors of the Company will become directors of Alliance, but the management
of the combined companies will otherwise consist of the current management of
Alliance. Statements made in this Report concerning future drilling,
acquisitions, budgets, spending, capital needs, operating plans and other
activities are made on behalf of the current management of the Company and will
not be indicative of the plans of the new management or activities of the
combined companies in the event the Merger is completed.
2
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PART I
Item 1. Business and Item 2. Properties.
As used in this Form 10-K:
"Mcf" means thousand cubic feet, "MMcf" means million cubic feet and
"Bcf" means billion cubic feet. "Mcfe" means thousand cubic feet equivalent,
"MMcfe" means million cubic feet equivalent and "Bcfe" means billion cubic feet
equivalent. "Bbl" means barrel, "MBbls" means thousand barrels and "MMBbls"
means million barrels. "BOE" means equivalent barrels of oil and "MBOE" means
thousands equivalent barrels of oil. Unless otherwise indicated herein, natural
gas volumes are stated at the legal pressure base of the state or area in which
the reserves are located and at 60 (degrees) Fahrenheit. Natural gas equivalents
are determined using the ratio of six Mcf of natural gas to one Bbl of crude
oil.
The term "gross" refers to the total leasehold acres or wells in which
the Company has a working interest. The term "net" refers to gross leasehold
acres or wells multiplied by the percentage working interest owned by the
Company. "Net production" means production that is owned by the Company less
royalties and production due others.
"Proved reserves" are estimated quantities of crude oil, natural gas
and natural gas liquids, which geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known reservoirs
under existing economic and operating conditions. "Proved developed reserves"
are those reserves which are expected to be recovered through existing wells
with existing equipment and operating methods. "Proved undeveloped reserves"
are those reserves which are expected to be recovered from new wells on
undrilled acreage or from existing wells where a relatively major expenditure is
required for recompletion.
The term "oil" includes crude oil, condensate and natural gas liquids.
Unless the context requires otherwise, all references to the "Company"
include LaTex Resources, Inc., and its consolidated subsidiaries including,
LaTex Petroleum Corporation ("LaTex Petroleum"), LaTex/GOC Acquisition, Inc.
("GOCA"), Germany Oil Company, formerly known as LRI Acquisition, Inc.
("Germany"), ENPRO, Inc. ("ENPRO"), Phoenix Metals, Inc. ("Phoenix Metals"), and
LaTex Resources International, Inc. ("LaTex Resources International").
The Company
LaTex Resources, Inc. ("the Company") is an independent oil and gas
company primarily engaged in the acquisition of producing oil and gas properties
which possess the potential for increased value through exploitation and
development. The Company seeks to realize such potential through workovers,
recompletions, secondary recovery operations, and the drilling of development or
infill wells. The Company is also engaged in the purchase and marketing of
crude oil and natural gas and the exploration and development of non-producing
oil and gas properties.
The Company owns and operates producing oil and gas properties located
in 12 states, with proved reserves located primarily in the states of
Mississippi, Louisiana, Oklahoma, Texas, and Alabama. Since July 31, 1991, the
Company has acquired approximately 4,500 MBbls of crude oil and 25.8 Bcf of
natural gas reserves involving total capital expenditures of approximately
$30,840,000 for an average acquisition cost of $3.50 per BOE. Daily gross
production from 156 wells operated by the Company in these states currently
averages approximately 1,055 Bbls of oil and 7,600 Mcf of gas. The Company also
owns interests in 342 producing wells and units in the same states which are
operated by others. Daily gross production from both operated and non-operated
wells, net to the Company's interest, currently averages approximately 1,000
Bbls of oil and 8,000 Mcf of gas from a total of 95 net wells.
From the end of its first year of oil and gas operations in 1987, the
Company's proved reserves have grown from 10 MBOE to 11,048 MBOE at July 31,
1996. At July 31, 1996, the Company's proved reserves were 6,353 MBbls of oil
and 28.2 Bcf of gas. The Company has increased its average net daily
3
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production from two Bbls of oil during 1987 to 1,000 Bbls of oil and 8,000 Mcf
of gas at July 31, 1996. See "Item 1. Business and Item 2. Properties -
Reserves."
The Company has agreed to sell approximately 400 non-strategic oil and
gas properties for total consideration of approximately $1,526,000, before
adjustments. The oil and gas reserve analysis, well count, acreage summaries
and other data included in this Item I. Business and Item 2. Properties for the
year ended July 31, 1996 do not include these properties.
Historical Background
The Company's predecessor was incorporated as a Texas corporation in
1981 under the name Video Science Technology, Inc. ("VSTI") and was initially
organized to research, develop and market specialized video systems and products
pertaining to medical, petroleum and low power television applications. By
1988, substantially all of VSTI's original businesses had been terminated and
VSTI had become substantially inactive.
In December 1991, Jeffrey T. Wilson ("Wilson"), James G. Borem
("Borem") and Dewitt C. Shreve ("Shreve"), agreed to exchange (the "LaTex
Exchange Transaction") all outstanding shares of common stock of LaTex Petroleum
Corporation, an Oklahoma corporation ("LaTex Petroleum"), for a total of
7,000,000 newly issued shares of VSTI's common stock representing approximately
61% of VSTI's resulting issued and outstanding common stock. As a result, LaTex
Petroleum became a wholly owned subsidiary of VSTI. VSTI moved its principal
offices from Dallas, Texas to its current offices located in Tulsa, Oklahoma and
Messrs. Borem, Wilson and Shreve were elected the Directors and executive
officers of VSTI. As a result of the LaTex Exchange Transaction, VSTI resumed
operation through its wholly-owned subsidiary, LaTex Petroleum, in the business
of acquisition of producing oil and gas properties and exploration for and
production of oil and gas.
In May 1992, VSTI was merged (the "Reincorporation Merger") with and
into the Company (which had been formed as a wholly-owned subsidiary of VSTI
solely for the purpose of effecting the Reincorporation Merger). As a result of
the Reincorporation Merger, the state of incorporation of the Company was
changed from Texas to Delaware and the name of the Company was changed from
"Video Science Technology, Inc." to "LaTex Resources, Inc.". Each outstanding
share of stock of VSTI was converted into one share of stock of the Company and
the existing shareholders of VSTI automatically became shareholders of the
Company. The Reincorporation Merger did not result in any change in the
physical location, business, management, or financial condition of the Company.
In November 1992 the Company completed a public offering of 1,125,000
units, each unit consisting of one share of common stock and two redeemable
Stock Purchase Warrants to purchase one share of common stock. The purchase
price for the units under the offering was $3.70 per unit. Net proceeds to the
Company from the offering, approximately $4,226,063, were used to pay off the
Company's then existing bank debt and for working capital.
Proposed Merger With Alliance Resources Plc
The Company has entered into an Agreement and Plan of Merger
("Alliance Merger Agreement") dated August 12, 1996 with Alliance Resources Plc,
a company organized under the laws of the United Kingdom ("Alliance"), pursuant
to which the Company will merge ("Alliance Merger") with a wholly-owned U.S.
subsidiary of Alliance.
Under the terms of the Alliance Merger Agreement and after giving
effect to a 1 for 40 reverse stock split to be completed by Alliance, the
holders of the Company's common stock will receive 0.8806 ordinary shares of
Alliance for each share of such common stock, the holders of the Company's
Series A Convertible Preferred Stock will receive 2.6445 ordinary shares of
Alliance for each share of such Series A Convertible Preferred Stock, and the
holders of the Company's Series B Senior Convertible Preferred Stock will
receive 5.8709 ordinary shares of Alliance for each share of such Series B
Senior Convertible Preferred Stock. Following the Alliance Merger, the holders
of the Company's common and preferred stock will own, as a group, approximately
72% of the issued and outstanding ordinary shares of Alliance and the Company
will become a wholly-owned subsidiary of Alliance. Holders of outstanding
warrants
4
<PAGE>
to purchase shares of the Company's common stock will receive from Alliance
replacement warrants to purchase shares of Alliance ordinary shares on
substantially the same terms.
Under the terms of the Alliance Merger Agreement, the Company is
required to dispose of its interests in its unconsolidated affiliates Wexford
Technology, Inc. ("Wexford") and Imperial Petroleum, Inc. ("Imperial"), and its
interests in its wholly-owned subsidiaries LaTex Resources International, Inc.
("LaTex Resources International") and Phoenix Metals, Inc. ("Phoenix Metals").
Effective July 31, 1996, the Company has written off its $2,372,452 investment
in Wexford, its $1,797,378 investment in Imperial, and its $3,446,795 investment
in LaTex Resources International (which includes $2,491,299 in dry hole costs
and $955,496 in abandonments relating to the Company's investments in Tunisia
and Kazakhstan, respectively). Effective July 31, 1994, the Company wrote off
its $222,918 investment in Phoenix Metals. The Company has entered into a
Purchase Agreement with Imperial pursuant to which the Company will sell its
interests in Wexford, Imperial, LaTex Resources International and Phoenix Metals
to Imperial for 100,000 shares of the Company's common stock. See "Exploration
and Development", "Other Business" and "Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations -- Proposed Merger
With Alliance Resources Plc."
Pursuant to the Alliance Merger, two of the current directors of the
Company will become directors of Alliance, but the management of the combined
companies will otherwise consist of the current management of Alliance.
Statements made in this Report concerning future drilling, acquisitions,
budgets, spending, capital needs, operating plans and other activities are made
on behalf of the current management of the Company and will not be indicative of
the plans of the new management or activities of the combined companies in the
event the Merger is completed.
Cautionary Statement and Risk Factors
Cautionary Statement Regarding Forward-Looking Statements. In the
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interest of providing the Company's shareholders and potential investors with
certain information regarding the Company, including management's assessment of
the Company's future plans and operations, certain statements set forth in this
Report contain or are based on the Company's projections or estimates of
revenue, income, earnings per share and other financial items or relate to
management's future plans and objectives or to the Company's future economic and
financial performance. Such statements are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and are made
pursuant to and in reliance on the safe harbor provisions of such sections.
Although any forward-looking statements contained in this report or
otherwise expressed by or on behalf of the Company are, to the knowledge and in
the judgment of the officers and directors of the Company, expected to prove
true and to come to pass, management is not able to predict the future with
absolute certainty. Forward-looking statements involve known and unknown risks
and uncertainties which may cause the Company's actual performance and financial
results in future periods to differ materially from any projection, estimate or
forecasted result. These risks and uncertainties include, among other things:
volatility of oil and gas prices; product supply and demand; market competition;
risks inherent in the Company's oil and gas operations both domestic and
foreign; imprecision of reserve estimates; the Company's ability to replace and
expand oil and gas reserves; the Company's ability to generate sufficient cash
flow from operations to meet its current and future obligations; the Company's
ability to access external sources of debt and equity capital; and such other
risks and uncertainties described from time to time in the Company's periodic
reports and filings with the Securities and Exchange Commission. These and
other risks are described elsewhere in this report and in the Company's other
filings with the Securities and Exchange Commission. Accordingly, shareholders
and potential investors are cautioned that certain events or circumstances could
cause actual results to differ materially from those projected, estimated or
predicted. In addition, forward-looking statements are based on management's
knowledge and judgment as of the date of this report, and the Company does not
intend to update any forward-looking statements to reflect events occurring or
circumstances existing hereafter.
History of Losses; Accumulated Deficit. For the fiscal years ended
--------------------------------------
July 31, 1996, 1995 and 1994, the Company incurred net losses of $10,230,783,
$2,491,342 and $423,341 respectively. At July 31, 1996, the Company had an
accumulated deficit of $11,747,860 and its working capital deficit was
$28,420,291.
5
<PAGE>
It is expected that the Company will continue to experience losses and that, in
order to achieve profitability and generate cash flow, it will be dependent upon
acquiring additional debt or equity capital and acquiring or developing
additional oil and gas properties. There can be no assurance that the Company
will be able to do so. See "Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Item 8. Financial
Statements and Supplementary Data."
Limited Available Capital; Need for Additional Financing. Without
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raising additional capital, the Company will be unable to acquire additional
producing oil and gas properties and its ability to develop its existing oil and
gas properties will be limited to the extent of available cash flow.
Accordingly, in order for the Company to achieve its business objective and
achieve profitable operations, it will be necessary to generate additional cash
flow from operations, raise additional capital or enter into joint oil and gas
development arrangements. Management intends to fund future acquisitions and
develop its oil and gas reserves using cash flow from operations as well as
borrowings, public and private sales of debt and equity securities and joint oil
and gas development arrangements, among other possible sources. The Company
estimates that it will need approximately $800,000 of capital to develop its
undeveloped oil and gas reserves during the year ended July 31, 1997 and an
additional $1,000,000 to develop such reserves during the following year. The
Company expects to obtain these funds from cash flow, the proceeds from the sale
of certain non-strategic oil and gas properties, and additional borrowings. The
Company has no present arrangements for future borrowings and its cash flow from
operations is not expected to be adequate to provide the funds needed for these
purposes. Although the Company has agreed to sell certain non-strategic oil and
gas properties for approximately $1.5 million, before adjustments, there can be
no assurance that this transaction or other sources will provide funds in
sufficient amounts to allow the Company to successfully implement its present
business strategy of additional oil and gas property acquisitions or the
development of its existing oil and gas reserves. The Company has no present
arrangements to raise additional capital from the sale of its securities or
joint development arrangements. No assurance can be given as to the
availability or terms of any such additional financing or joint development
arrangements or that such terms as are available may not be dilutive to the
interests of the Company's shareholders. See "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations" and "Item 8.
Financial Statements and Supplementary Data."
Credit Facility Covenants and Restrictions. The Company currently
------------------------------------------
owes approximately $22,206,707 under its credit facility with the Company's
principal bank. The interest rate on the indebtedness is, at the option of the
Company, either the lending bank's base interest rate plus 1% or up to 2% (based
on the principal balance outstanding) over the rate for borrowing dollars by the
lending bank in the London Interbank market. The principal must be amortized at
the rate of $365,000 per month with the entire outstanding balance due March 31,
2000. The credit facility is secured by first mortgages on all of the Company's
oil and gas properties. The loan agreement relating to the credit facility
contains various affirmative and negative covenants including, among others, the
requirements that the Company maintain certain ratios of current assets to
current liabilities, minimum tangible net worth, restrictions on selling,
general and administrative expenses and the payment of dividends. Material
breaches of these or other covenants which are not cured or waived could result
in a default under the loan agreement resulting in this indebtedness becoming
immediately due and payable and empowering the lender to foreclose against the
collateral for the loan. The Company has been in default under various
affirmative and negative covenants of the loan agreement with its principal bank
with respect which the bank agreed to not take any action before November 29,
1996. The Bank has indicated its willingness to extend its agreement to forbear
any action on the Company's default through February 28, 1997. If the Company
cannot cure its default, the bank could declare the balance due and foreclose on
the Company's oil and gas properties. Under such circumstances the Company's
shareholders could lose their entire investment. See "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Capital Resources and Liquidity".
Industry Conditions; Impact on Company's Profitability. The
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profitability and revenues of the Company are dependent, to a significant
extent, upon prevailing market prices for oil and gas. In the past, oil and gas
prices and markets have been volatile. Prices are subject to wide fluctuations
in response to changes in supply of and demand for oil and gas, market
uncertainty and a variety of additional factors that are beyond the control of
the Company. Such factors include supply and demand, political conditions,
weather conditions, government regulations, the price and availability of
alternative fuels and
6
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overall economic conditions. Crude oil and natural gas prices have increased
significantly over the past 12 months. Any decline from current oil or gas
prices would have a material adverse effect on the Company's revenues and
operating income and might, under certain conditions, require a write-down of
the book value of the Company's oil and gas properties. If such declines were
severe enough, they could result in a reduction in the Company's borrowing base
under its credit facility with its principal bank and could require the sale of
some of its properties under unfavorable market conditions or require the
Company to seek additional debt or equity capital. There can be no assurance
that the Company could, if the need arose, effect any sale of its debt or equity
securities on terms acceptable to the Company or on terms which would not be
dilutive to the Company's shareholders. See "Marketing".
Acquisition Strategy. The Company must acquire producing properties
--------------------
or locate and develop new oil and gas reserves to replace those being depleted
by production. Without acquisition of producing properties or successful
drilling and exploration activities, the Company's reserves and revenues will
decline. In particular, the Company's principal producing properties are
characterized by a high initial production rate, followed by a steep decline in
production. Subject to the availability of the required capital, the Company
intends to seek to acquire additional producing oil and gas properties. No
funds are currently available for this purpose. Although the Company engages in
discussions regarding the acquisition of additional properties on a regular
basis, as of the date of this report the Company has no agreements or
understandings to acquire any other properties and there can be no assurance
that the Company will be able to identify and acquire additional producing oil
and gas properties that will prove to be profitable to the Company. The process
of integrating acquired properties into the Company's operations may result in
unforeseen difficulties and may require a disproportionate amount of
management's attention and the Company's resources. In connection with
acquisitions, the Company could become subject to significant contingent
liabilities arising from the activities of the acquired properties to the extent
the Company assumes, or an acquired entity becomes liable for, unknown or
contingent liabilities or in the event that such liabilities are imposed on the
Company under theories of successor liability. See "Acquisition Activities,"
"Exploitation Activities" and "Production".
Reliance on Estimates of Proved Reserves; Depletion of Reserves.
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There are numerous uncertainties inherent in estimating quantities of proved oil
and gas reserves and in projecting future rates of production and timing of
development expenditures, including many factors beyond the control of the
producer. The reserve data set forth in this report represents estimates only.
Oil and gas reserve engineering is a subjective process of estimating
underground accumulations of oil and gas that cannot be measured in an exact
way, and estimates by other engineers might differ from those included in this
report. The accuracy of any reserve estimate is a function of the quality of
available data and of engineering and geological interpretation and judgment.
This report contains estimates of the Company's proved oil and gas reserves and
the projected future net revenue therefrom, which have been prepared by an
independent petroleum engineering firms. Actual future production, oil and gas
prices, revenue, capital expenditures, taxes and operating expenses may vary
substantially from those assumed in making estimates, and the Company's reserves
may be subject to material upward or downward revision and the rate of
production from oil and gas properties declines as reserves are depleted. In
addition, the Company's ability to develop its reserves will be dependent upon
the timely availability of financing for this purpose without which the
Company's ability to produce the projected amounts of oil and gas will be
adversely affected thereby adversely affecting the projected future net revenue.
See "Reserves".
Dependence on Other Operators. With respect to wells not to be
-----------------------------
operated by the Company in which it owns a working interest, the independent
operators are, in some cases, privately-held companies who may have limited
financial resources. If a third party operator experiences financial difficulty
and fails to pay for materials and services in a timely manner, the wells
operated by such third party operators could be subject to material and
workmen's liens. In such event, the Company would incur costs in discharging
such liens. However, the Company has no reason to believe that its current
operators are experiencing significant financial difficulties.
Reliance on Key Personnel. The Company is dependent upon the services
-------------------------
of its President, Jeffrey T. Wilson, its Vice President and Chief Financial
Officer, John L. Cox, its Vice President of Operations, Robert L. Hull, and its
Vice President of Exploration, John W. Heinsius. The loss of their services
could have a material adverse effect upon the Company. The Company does not
have employment agreements with Messrs. Wilson, Cox, Hull or Heinsius. The
Company does not maintain insurance on the lives of
7
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Messrs. Wilson, Cox, Hull or Heinsius. See "Item 10. Directors and Executive
Officers of the Registrant."
Competition. The oil and gas industry is highly competitive. The
-----------
Company competes with major integrated and independent oil and gas companies in
acquiring properties. Many competitors have resources substantially exceeding
the resources of the Company. See "Competition".
Operational Hazards, Environmental Concerns, Insurance and Government
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Regulation. The oil and gas industry involves a number of operating risks, such
- ----------
as the risks of fire, blowouts, explosions, cratering, pipe failure, casing
collapse and abnormally pressured formations, the occurrence of any of which
could materially and adversely affect the Company. The business is also subject
to environmental hazards including oil and saltwater spills, gas leaks, ruptures
and discharges of toxic gases. These risks could result in substantial losses
to the Company due to injury and loss of life, severe damage to and destruction
of property and equipment, pollution and other environmental damage, and
suspension of operations. As the owner of working interests in its oil and gas
properties, the Company bears its proportionate share of the obligations and
liabilities arising out of the exploration and development of those properties.
Generally, owners of working interests in oil and gas properties are jointly and
severally liable for all such obligations and liabilities. As a result, there
exists a risk that the Company could become liable for amounts in excess of its
proportionate share of such obligations and liabilities, although generally the
Company would have a right of contribution against the other working interest
owners. In accordance with customary industry practices, the Company maintains
insurance against some, but not all, of such risks and some, but not all of such
losses. The occurrence of such an event not fully covered by insurance could
have a material adverse effect on the financial position and operations of the
Company. The Company maintains insurance against some, but not all, potential
risks, and does not carry insurance covering environmental impairment
liabilities. The Company can provide no assurance that the insurance it carries
will be adequate to cover any loss or exposure to liability, or that such
insurance will continue to be available on terms acceptable to the Company. See
"Operational Hazards and Insurance".
Effect of Warrants and Convertible Preferred Stock Outstanding. The
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Company has outstanding (i) warrants which provide for the purchase of an
aggregate of 3,034,750 shares of common stock at prices ranging from $0.75 to
$4.44 per share, (ii) shares of Series A Convertible Preferred Stock ("Series A
Preferred Stock") convertible into an aggregate of 1,350,835 shares of common
stock, if calculated as of July 31, 1996, and (iii) shares of Series B Senior
Convertible Preferred Stock ("Series B Preferred Stock") convertible into an
aggregate of 3,200,167 shares of common stock, if calculated as of July 31,
1996. Issuances of shares of the Company's common stock upon exercise of
warrants or conversion of shares of preferred stock will have a dilutive effect
on the Company's shareholders by decreasing their percentage ownership in the
Company.
Registration Rights. The holders of the outstanding shares of the
-------------------
Company's Series A Preferred Stock and Senior B Preferred Stock and the holders
of warrants to purchase up to 305,000 shares of the Company's common stock have
the right to either require the Company to register shares of the Company's
common stock issuable upon conversion of such preferred stock or exercise of
such warrants under the Securities Act of 1933 ("Securities Act") or to have
such shares included in any registration statement filed by the Company, subject
to certain limitations, to enable a public sale of those shares. In the event
the holders of a material amount of such shares should seek to have their shares
registered for sale under the Securities Act, these obligations could result in
considerable expense to the Company and the effect of the offer and sale of such
shares may be to depress the market price for the Company's common stock.
Compliance with these obligations may also interfere with the Company's ability
to raise additional capital when required.
Authorization and Discretionary Issuance of Preferred Stock; Anti-
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takeover Provisions. The Company's Certificate of Incorporation authorizes the
- -------------------
issuance of preferred stock with such designations, rights and preferences as
may be determined from time to time by the Board of Directors. Accordingly, the
Board of Directors is empowered, without shareholder approval, to issue
preferred stock with dividend, liquidation, conversion, voting or other rights
which could adversely affect the voting power or other rights of holders of the
Company's common stock. In the event of issuance, the preferred stock could be
utilized, under certain circumstances, as a method of discouraging, delaying or
preventing a change in control of the Company, which could have the effect of
discouraging bids for the Company and
8
<PAGE>
thereby prevent shareholders from receiving a premium for their shares over the
then-current market prices. Although the Company has no present intention to
issue any additional shares of its preferred stock (other than in payment of
dividends on the Series A and Series B Preferred Stock), there can be no
assurance that the Company will not do so in the future.
The Delaware General Corporation Law includes provisions which are
intended to encourage persons considering unsolicited tender offers or other
unilateral takeover proposals to negotiate with the Company's Directors rather
than pursue non-negotiated takeover attempts. These existing takeover
provisions may have a significant effect on the ability of a shareholder to
benefit from certain kinds of transactions that may be opposed by the incumbent
Directors.
Qualification Requirements for Nasdaq Securities. The common stock of
------------------------------------------------
the Company is presently quoted on Nasdaq, which is administered by the National
Association of Securities Dealers, Inc. (the "NASD"). Until September 4, 1996,
the common stock of the Company was also listed on the Pacific Stock Exchange.
Effective September 4, 1996, the common stock was delisted by the Pacific Stock
Exchange as a result of the failure of the minimum share bid price for the
common stock to meet the minimum listing maintenance requirements of the
Exchange. For the Company's securities to continue to be eligible for inclusion
on Nasdaq, the Company must, among other things, maintain at least $2,000,000 in
total assets and have at least $1,000,000 of capital and surplus and the bid
price of the common stock must be at least $1.00 per share, provided, however,
that, if the Company's stock falls below such minimum bid price, it will remain
eligible for continued inclusion if the market value of the public float is at
least $1,000,000 and the Company has at least $2,000,000 in capital and surplus.
While the Company presently meets the NASDAQ required standards, there can be no
assurance that it will continue to be able to do so. If this should occur,
trading, if any, in the common stock would then continue to be conducted in the
over-the-counter market on the OTC Bulletin Board, an NASD-sponsored inter-
dealer quotation system, or in what are commonly referred to as "pink sheets."
As a result, a shareholder may find it more difficult to dispose of, or to
obtain accurate quotations as to the market value of, the Company's securities.
In addition, if the Company's securities cease to be quoted on Nasdaq and the
Company fails to meet certain other criteria, those securities would be subject
to a Commission rule that imposes additional sales practice requirements on
broker-dealers who sell such securities to persons other than established
customers and accredited investors. For transactions covered by this rule, the
broker-dealer must make a special suitability determination for the purchaser
and have received the purchaser's written consent to the transaction prior to
sale. Consequently, if the Company's securities were no longer quoted on
Nasdaq, the rule may affect the ability of broker-dealers to sell the Company's
securities and the ability of shareholders to sell their securities in the
secondary market. See "Item 5. Market for Registrant's Common Equity and
Related Shareholder Matters."
Dividends Unlikely. The Company has never declared or paid dividends
------------------
on its common stock and currently does not intend to pay dividends in the
foreseeable future. The payment of dividends in the future will be at the
discretion of the Board of Directors. In addition, the Company's credit
facility contains a provision which prohibits the payment of dividends except
for dividends on its shares of Series A and Series B Preferred Stock payable in
the form of additional shares of Series A and Series B Preferred Stock.
Government Regulation. The Company's business is subject to extensive
---------------------
federal, state and local laws and regulations relating to the exploration for,
development, production, marketing and transmission of oil and gas, as well as
environmental and safety matters. Such laws and regulations have generally
become more stringent in recent years, often imposing greater liability on a
larger number of potentially responsible parties. Because the requirements
imposed by such laws and regulations are frequently changed, the Company is
unable to predict the ultimate cost of compliance with such requirements. The
states of Oklahoma, Texas and Louisiana have recently adopted revisions to their
production allowable rules under which they regulate the quantities of natural
gas which producers may produce within their respective borders. The state of
Kansas is considering similar revisions to their allowable rules. Legislation
has recently been introduced in the United States Congress to restrict the
ability of states to regulate the production of natural gas. It is impossible
at this time to determine the effect, if any, these developments may have on the
natural gas industry as a whole. The Company does not believe these
developments will materially affect its operations. There is no assurance that
federal, state or local laws and regulations enacted in the future will not
adversely affect the Company's ability to explore for,
9
<PAGE>
produce and market oil and natural gas. See "Regulation" and "Recent and
Proposed Legislation."
Business Strategy
The Company's business strategy has been and will continue to be to
increase shareholder value through the acquisition of producing oil and gas
properties and exploitation of those properties to maximize production and
ultimate reserve recovery. The Company's growth strategy focuses on the
technical expertise of its management and employees to evaluate acquisitions and
to exploit the development potential of each oil and gas property through
recompletions, workovers, cost reduction measures or marketing efforts.
Acquisition Activities
Historically, the Company has allocated a substantial portion of its
capital expenditures to the acquisition of producing oil and gas properties.
From July 31, 1991 through July 31, 1996, the Company completed 12 acquisitions
of oil and gas properties, involving total acquisition costs of approximately
$30,840,000 and resulting in an average reserve replacement cost of
approximately $3.50 per BOE. During the year ended July 31, 1996, the Company
completed the acquisition of approximately 15 oil and gas properties from
Sackett Oil Company for a purchase price of approximately $2,900,000. A portion
of these properties were subsequently sold by the Company for approximately
$2,800,000.
To the extent that it has the capital resources to do so, the Company
intends to continue to pursue a business strategy that emphasizes reserve
additions through acquisitions. The Company may utilize any one or a
combination of lines of credit with banks, public and private sales of debt and
equity securities, joint oil and gas development arrangements and internally-
generated cash flow to finance its acquisition efforts. No assurance can be
given that sufficient external or internal funds will be available to fund the
Company's desired acquisitions. See Item 7, "Management's Discussion and
Analysis of Financial Condition and Results of Operations." The Company may
also use, where appropriate, its equity securities as all or part of the
consideration for such acquisitions.
Prospective acquisitions are evaluated by the Company's management.
After the acquisition of oil and gas properties, management generally develops a
reservoir depletion plan to maximize production rates, ultimate reserve recovery
and cash flow generation. Such plans consider field operating procedures,
workovers, recompletions, secondary recovery implementation, additional drilling
and such other procedures as the situation dictates.
The Company does not have a specific budget for the acquisition of oil
and gas properties since the timing and size of acquisitions are difficult to
forecast. However, the Company is constantly reviewing acquisition
possibilities.
Exploitation Activities
The Company concentrates its acquisition efforts on proved producing
properties which demonstrate a potential for significant additional development
through workovers, behind-pipe recompletions, secondary recovery operations, the
drilling of development or infill wells, and other exploitation activities which
the Company may find appropriate. The Company has pursued an active workover
and recompletion program on the properties it has acquired and intends to
continue its workover and recompletion program in the future as properties
acquired warrant. In connection with oil and gas property acquisitions,
properties are reviewed and evaluated by the Company with a view toward taking
the appropriate actions to maximize production. Such actions may include repair
or replacement of equipment or more extensive efforts such as recompletion in a
different producing zone or implementation of secondary recovery operations.
The expenditures required for the Company's workover and recompletion
program have historically been financed, and it is expected that they will
continue to be financed, by borrowings and internally generated funds.
10
<PAGE>
Production
The Company owns and operates producing properties located in 12
states, with its proved reserves located primarily in the states of Mississippi,
Louisiana, Oklahoma, Texas, and Alabama. The Company continuously evaluates the
profitability of its oil, gas and related activities and has a policy of
divesting itself of unprofitable oil and gas properties or areas of operation
that are not consistent with its operating philosophy.
The Company operates 156 producing wells in these areas and also owns
non-operated interests in 342 producing wells and units. Oil and gas sales from
the Company's producing oil and gas properties accounted for substantially all
of the Company's revenues for the years ended July 31, 1994, 1995, 1996,
respectively.
The following summarizes the Company's principal areas of oil and gas
production activity.
South Carlton Field, Alabama. The South Carlton Field is located in
----------------------------
Clarke and Baldwin Counties in southwest Alabama. The Company operates 56
active producing oil wells and three water injection wells. Production is from
the Massive and Pilot sands of the Tuscaloosa Formation with daily gross
production being approximately 380 Bbls of oil. Based on the production history
of certain infill wells previously drilled in this field and an extensive
geological and engineering review, the Company believes that additional infill
drilling potential exists for the Tuscaloosa reservoirs. Net proven reserves to
the Company as of July 31, 1996 are 4,217.3 MBbls of oil.
Black Warrior Basin, Mississippi and Alabama. The Company owns
--------------------------------------------
operated and non-operated working interests in 145 wells (55 operated and 90
non-operated) in Lamar, Fayette and Pickens Counties, Alabama and Lee and
Chickasaw Counties, Mississippi. Production from these wells are from multiple
sandstones of Mississippian age and range in depth from approximately 1,900 feet
to 4,600 feet. Net proven reserves to the Company as of July 31, 1996, are 30.8
MBbls of oil and 10,733.2 MMcf of gas.
War-Wink South/East Quito Fields, Texas. The Company owns non-
---------------------------------------
operated working interests in 45 active wells operated by Texaco, Chevron, Enron
and BC Operating in the War-Wink South and East Quito Fields in Ward County,
Texas. These fields produce from the Fusselman, Atoka, Wolfcamp and Cherry
Canyon Formations at depths ranging from 6,200 feet to 17,500 feet. Based upon
review of geological and engineering data, the Company believes that additional
behind pipe and infill drilling potential exists on these properties. Net
proven reserves to the Company as of July 31, 1996 are 100.2 MBbls of oil and
2,165.2 MMcf of gas.
Wolf Mountain Field, Colorado. The Company operates one well in the
-----------------------------
Wolf Mountain Field in Routt County, Colorado. The well produces oil at a daily
rate of 28 Bbls from the Niobrara reservoir at a depth of approximately 5,500
feet. Additional potential exists behind the pipe to recomplete the well to
other undrained sections of the reservoir. Net proven reserves to the Company
as of July 31, 1996 are 662.4 MBbls of oil.
Perkins Field, Louisiana. The Company operates seven active wells in
------------------------
the Perkins Field which produce crude oil on gas lift from various Miocene sands
at depths ranging from approximately 6,000 to 7,500 feet. The Perkins field is
a multiple reservoir structural feature which is nearing the later stages of
depletion. Net proven reserves to the Company as of July 31, 1996 are 236.3
MBbls of oil.
Tinsley Field, Mississippi. The Tinsley Field is located in Yazoo
--------------------------
County in north central Mississippi and produces from a series of Selma-Eutaw
sands of Upper Cretaceous age. The Company operates five active wells and two
water injection wells in the field having a daily gross production of
approximately 85 Bbls of oil. Through extensive mapping and engineering work,
the Company believes that significant additional oil reserves may remain in
various Eutaw sand and in the underlying Tuscaloosa sand which has not been
extensively tested in the field. Net proven reserves to the Company as of July
31, 1996 are 282.2 MBbls of oil.
Bolton Field, Mississippi. The Bolton Field is located in Hinds
-------------------------
County in west central Mississippi.
11
<PAGE>
The Company operates two wells in the field and has non-operated interests in
four additional wells. Production is from the Cotton Valley, Sligo, Rodessa and
Mooringsport Formations. Daily gross production from the operated wells is 425
Mcf of gas and 20 Bbls of oil. Based on a review of the field data, the Company
believes that significant behind pipe potential exists in several of the wells.
Net proven reserves to the Company as of July 31, 1996 are 36.6 MBbls of oil and
768.9 MMcf of gas.
Ozona Field, Texas. The Ozona Field is located in Crockett County in
------------------
west Texas. The Company owns non-operated working interests in 24 wells which
produce from the Cisco and Canyon sand reservoirs. Net proven reserves to the
Company as of July 31, 1996, are 1.0 MBbls of oil and 969 MMcf of gas.
Turtle Bayou/Deer Island Fields, Louisiana. These fields are located
------------------------------------------
in Terrebonne Parish, Louisiana. Production is from multiple sands,
predominantly in the normal pressured upper and middle Miocene. The Company
owns non-operated working interests in six producing wells. Based on geological
and engineering data, the Company believes that additional development potential
exists within the field. Net proven reserves to the Company as of July 31,
1996, are 7.0 MBbls of oil and 806 MMcf of gas.
Springhill Field, Arkansas. The Springhill Field is located in
--------------------------
Columbia County, Arkansas. The Company owns royalty interests in five wells
operated by Sonat which produce from the Haynesville formation at a combined
rate of 16.5 MMCf of gas and 335 Bbls of oil per day. Net proven reserves to
the Company as of July 31, 1996 are 10 MBbls of oil and 667.7 MMcf of gas.
GOM State Tract 904 Field, Texas. The GOM State Tract 904 Field is
--------------------------------
located in offshore waters of Nueces County, Texas. The Company owns interests
in two wells operated by National Energy Group which produce from the Frio sands
at a combined rate of 80 Bbls of oil and 1150 Mcf of gas per day. Net proven
reserves to the Company as of July 31, 1996 are 14.6 MBbls of oil and 560.1 MMcf
of gas.
Marketing
The availability of a market for oil and gas produced or marketed by
the Company is dependent upon a number of factors beyond its control which at
times cannot be accurately predicted. These factors include the proximity of
wells to, and the available capacity of, natural gas pipelines, the extent of
competitive domestic production and imports of oil and gas, the availability of
other sources of energy, fluctuations in seasonal supply and demand, and
governmental regulation. In addition, there is always the possibility that new
legislation may be enacted which would impose price controls or additional taxes
upon crude oil or natural gas, or both. In the event a productive gas well is
completed in an area that is distant from existing gas pipelines, the Company
may allow the well to remain shut-in until a pipeline is extended to the well or
until additional wells are drilled to establish the existence of sufficient
producing reserves to justify the cost of extending existing pipelines to the
area. It appears that the United States is emerging from a period of oversupply
of natural gas which has, and may still, cause delays, restrictions or
reductions of natural gas production and which has adversely affected gas
prices. In addition, increased imports of natural gas from Canada and Mexico
have occurred and are expected to continue. Oversupplies of natural gas can be
expected to recur from time to time and may result in depressed gas prices and
in the gas producing wells of the Company being shut-in.
Since the early 1970's the supply and market price for crude oil has
been significantly affected by policies adopted by the member nations of OPEC.
Members of OPEC establish among themselves prices and production quotas for
petroleum products from time to time with the intent of manipulating the global
supply and price levels for crude oil. In addition, Canada recently revised its
laws affecting the exportation of natural gas to the United States. Mexico also
continues to fine tune its import/export policies. The oil and gas policies of
the United States, Canada and Mexico are impacted by the Canadian/U.S. Free
Trade Agreement, the General Agreement on Tariffs and Trade, and the North
American Free Trade Agreement. These factors are expected to increase
competition and may adversely affect the price of natural gas in certain areas
of the United States. The Company is unable to predict the effect, if any,
which OPEC, Canadian and Mexican policies, and emerging international trade
doctrines will have on the amount of, or the prices received for, oil and
natural gas produced and sold by the Company.
12
<PAGE>
Changes in oil and natural gas prices significantly affect the
revenues and cash flow of the Company and the value of its oil and gas
properties. Significant declines in the prices of oil and natural gas could
have a material adverse effect on the business and financial condition of the
Company. The Company is unable to predict accurately whether the price of oil
and natural gas will rise, stabilize or decline in the future. In an effort to
protect the Company against fluctuations in oil and gas prices, the Company has
entered into certain commodity hedging arrangements. See "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Results of Operations."
Substantially all of the Company's crude oil and condensate production
is sold at posted prices under short term contracts, as is customary in the
industry. The most significant purchaser of the Company's oil and gas
production (including production sold by the Company's marketing subsidiary,
ENPRO) during the year ended July 31, 1996 was ENRON Reserve Acquisition Corp.
which accounted for 16% of the Company's oil and gas sales. No other purchaser
of crude oil or natural gas during this period exceeded 10% of the Company's oil
and gas sales. With respect to losses incurred by the Company as a result of
its crude and natural gas price hedging arrangements, see "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations--
Capital Resources and Liquidity."
The Company's wholly-owned subsidiary, ENPRO, purchases and resells
crude oil and natural gas in Alabama, Colorado, Louisiana, Mississippi, Montana,
New Mexico, Oklahoma and Texas. ENPRO currently markets approximately 704 BOE
per day to refiners and large resellers. For its services, ENPRO receives a
margin which averages approximately 9.75% of gross sales. ENPRO currently
markets approximately 969 barrels per day of oil from wells operated by the
Company. By aggregating barrels of crude oil purchased by ENPRO from third
parties with those purchased by ENPRO from the Company, additional revenues are
generated through what the Company believes are improved marketing practices.
ENPRO owns a crude oil trans-shipment facility in Poyner, Texas
approximately 30 miles south of Tyler, Texas. The facility consists of 2,410
barrels of storage capacity on four acres owned by ENPRO. The terminal was
originally constructed and operated as a crude oil blending facility. The
facility is presently inactive.
The Company's gas production and gathered gas is sold primarily on the
spot market or under market sensitive long term agreements with a variety of
purchasers, including intrastate and interstate pipelines, their marketing
affiliates, independent marketing companies and other purchasers who have the
ability to move the gas under firm transportation agreements.
Exploration and Development
General. Development drilling opportunities available to the Company
-------
are largely a result of the Company's acquisition of producing oil and gas
properties. Several infill and development locations exist on Company properties
currently producing oil and gas. As a result, the Company will continue to
evaluate additional opportunities for developmental drilling on its existing
properties.
Exploratory drilling has been minimal to date. In the United States,
the Company reviews exploration proposals from other companies and individuals
and may from time to time participate in certain ventures where the risk-reward
ratio is sufficiently high to warrant capital outlays. The Company does not
anticipate generating exploration projects utilizing its own staff at the
present time. Consequently, exploratory drilling within the United States will
likely only remain a small part of the Company's business.
Outside the United States, the Company has from time to time pursued
foreign exploration concessions which offer limited capital expenditure exposure
through the drilling commitment phase. However, the Company's focus in the
future will be on domestic oil and gas opportunities.
Tunisian Prospect. On June 30, 1993, the Company's wholly-owned
-----------------
subsidiary, LaTex Resources International, together with Enterprise Tunisienne
D'Activities Petroleries, the Tunisian State Oil Company ("ETAP"), ARCO Tunisia,
Inc. ("ARCO") and Premier Pict Petroleum Ltd. (formerly Pict Petroleum (Tunisia)
Ltd.) ("Premier"), acquired from the Republic of Tunisia a permit (the "Sbiba
Permit") for the exploration and production of oil and gas from a 4,936 square
kilometer (1,220,000 acres) area (the "Permit
13
<PAGE>
Area") located in north-central Tunisia. The respective participating interests
of the parties in the Permit Area are 50% ETAP, 32% ARCO, 10% Premier and 8%
LaTex Resources International.
The seismic acquisition and processing and the geological and
geophysical evaluations of the Permit Area began in September 1993. In July
1994, the initial well location was recommended and approved by the Sbiba
Operating Committee and wellsite preparation began. The Sbiba #1, scheduled to
be drilled to a total depth of 2,500 meters (8,200 feet), was spudded on
November 9, 1994. The well encountered unexpected and severe overpressure zones
in the Eocene Evaporites resulting in slower than expected drilling rates and
ultimately in having to drill a sidetrack hole at 1,343 meters (4,405 feet). A
total depth of 2,076 meters (6,810 feet) was reached before having to suspend
operations on March 5, 1995 due to overpressure concerns and the presence of
natural gas in the wellbore. The objective reservoir, the Albo-Aptian
carbonates, was never reached or evaluated and the well was temporarily
abandoned. Subsequently, the operator of the project, in response to a request
from the Tunisian government, permanently plugged the well and restored the
drill site.
ARCO and Premier have indicated their interest in terminating their
participation in the Permit. The Company is currently seeking to locate new
participants to acquire the interests of ARCO and Premier. No assurance can be
made that new participants willing to acquire the Arco and Premier interests
will be found.
Since inception of the Tunisian project, approximately $13,168,000 has
been expended by the participants to date, of which LaTex Resources
International's share has been approximately $2,106,880. The Company has
insufficient capital to continue its active participation in the project and,
effective July 31, 1996, the Company has written off its entire investment in
the Sbiba Permit in the amount of $2,491,299.
Kazakhstan Prospect. In April 1995, the Company's wholly-owned
-------------------
subsidiary, LaTex Resources International, agreed to participate, for a 25%
interest, in a production sharing service contract to rehabilitate divisions
three, four and eight of the Uzen oil and gas field located in the Republic of
Kazakhstan, C.I.S. Pursuant to that agreement, the Company agreed to fund the
initial $2.5 million of capital on behalf of itself and Edco Drilling Company
("Edco"). The terms of the project were to provide for immediate cash flow to
the Company's interest. Subsequently, Delcon Petroleum Development Kazakhstan
Limited, L.L.C. ("Delcon"), as operator, entered into a service contract with
Uzenmunaigas Production Association ("UMG") to carry out the work. The
participants in the project, pursuant to an operating agreement signed in August
1995, include Delcon (47.5%), LaTex International (25%), and Petronet (27.5%).
The objective of the Uzen project was to repair, rework and recomplete inactive
oil and gas wells in the field utilizing western technology, expertise and
capital in order to restore or enhance production from the field. In exchange
for providing these services and risk capital, UMG was to advance to the western
participants a total of 200,000 metric tons (1.5 million barrels) of crude oil
in two increments. The proceeds from the sale of this crude was to be utilized
in the rehabilitation project. In addition, the western participants were to
have received reimbursement of all capital costs and expenses. UMG and the
western participants were to each retain a 50% interest in crude oil production
above a base line of approximately 30 barrels of oil per day per well.
During the first quarter of fiscal 1996, the Company received written
notice from both Edco and Delcon that, in their view, the Company was in breach
of its agreement with Edco. The Company strongly disagreed with Edco's position
since the Company was in compliance with the operating agreement governing the
project. In addition, Delcon notified the Company that UMG would seek to
further alter the terms of the service contract in a manner which the Company
believed would be detrimental to the project's viability. There has been no
further progress on, or correspondence between the Company and Delcon or Edco
regarding, the Uzen project since the second quarter of fiscal 1996. There can
be no assurance that the uncertainties surrounding this project will be resolved
in a manner acceptable to the Company.
Effective July 31, 1996, the Company has written off its entire
investment in the Uzen project in the amount of $955,496.
14
<PAGE>
Reserves
Lee Keeling and Associates, Inc. ("LKA"), the Company's independent
petroleum engineering consulting firm, has made estimates of the Company's oil
and gas reserves at July 31, 1996. LKA's report covers the estimated present
value of future net cash flows before income taxes (discounted at 10%)
attributable to the Company's proved developed reserves, as well as its proved
undeveloped reserves and estimated future net cash flows therefrom. The oil and
gas reserve and economic data presented below does not include small interests
owned by the Company in approximately 400 operated and non-operated, non-
strategic oil and gas properties which the Company has agreed to sell for
approximately $1.5 million, before adjustments.
The quantities of the Company's proved reserves of oil and natural gas
presented below include only those amounts which the Company reasonably expects
to recover in the future from known oil and gas reservoirs under existing
economic and operating conditions. Proved developed reserves are limited to
those quantities which are recoverable commercially at current prices and costs,
under existing regulatory practices and with existing technology. Accordingly,
any changes in prices, operating and development costs, regulations, technology
or other factors could significantly increase or decrease estimates of the
Company's proved developed reserves. The Company's proved undeveloped reserves
include only those quantities which the Company reasonably expects to recover
from the drilling of new wells based on geological evidence from offsetting
wells. The risks of recovering these reserves are higher from both geological
and mechanical perspectives than the risks of recovering proved developed
reserves.
Set forth below are estimates of the Company's net proved reserves and
proved developed reserves and the estimated future net revenues from such
reserves and the present value thereof based upon the standardized measure of
discounted future net cash flows relating to proved oil and gas reserves in
accordance with the provisions of Statement of Financial Accounting Standards
No. 69. "Disclosures about Oil and Gas Producing Activities." Estimated future
net cash flows from proved reserves are determined by using estimated quantities
of proved reserves and the periods in which they are expected to be developed
and produced based on economic conditions at the date of the report. The
estimated future production is priced at current prices at the date of the
report. The resulting estimated future cash inflows are then reduced by
estimated future costs to develop and produce reserves based on cost levels at
the date of the report. No deduction has been made for depletion, depreciation
or income taxes or for indirect costs, such as general corporate overhead.
Present values were computed by discounting future net revenues at 10% per
annum.
The following table sets forth estimates of the proved oil and natural
gas reserves of the Company at July 31, 1996, as evaluated by LKA.
<TABLE>
<CAPTION>
Oil (MBbls) Gas (MMcf)
----------------------------- ------------------------------
Developed Undeveloped Total Developed Undeveloped Total
--------- ----------- ----- --------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Alabama 2,072 1,244 3,316 6,338 --- 6,338
Louisiana 571 --- 571 2,977 --- 2,977
Mississippi 314 141 455 4,160 --- 4,160
Oklahoma 218 --- 218 5,724 --- 5,724
Texas 756 15 771 6,437 415 6,852
Other 1,022 --- 1,022 2,121 --- 2,121
----- ----- ----- ------ --- ------
Total 4,953 1,400 6,353 27,757 415 28,172
===== ===== ===== ====== === ======
</TABLE>
The following table sets forth amounts as of July 31, 1996 determined
in accordance with the requirements of the applicable accounting standards, to
the estimated future net cash flows from production and sale of the proved
reserves attributable to the Company's oil and gas properties before income
taxes and the present value thereof. Benchmark prices used in determining the
future net cash flow estimates at July 31, 1996 were $19.74 per barrel for oil
and $2.66 per MMBtu for gas.
15
<PAGE>
<TABLE>
<CAPTION>
At July 31, 1996
--------------------------------
(in thousands)
Proved Proved Total
Developed Undeveloped Proved
Reserves Reserves Reserves
--------- ----------- --------
<S> <C> <C> <C>
Estimated future net cash
flows from proved reserves
before income taxes $93,958 $7,846 $101,804
Present value of estimated
future net cash flows from
proved reserves before
income taxes (discounted
at 10%) $51,540 $1,959 $ 53,499
</TABLE>
The estimation of oil and gas reserves is a complex and subjective
process which is subject to continued revisions as additional information
becomes available. Reserve estimates prepared by different engineers from the
same data can vary widely. Therefore, the reserve data presented herein should
not be construed as being exact. Any reserve estimate depends in part on the
quality of available data, engineering and geologic interpretation, and thus
represents only an informed professional judgment. Subsequent reservoir
performance may justify upward or downward revision of such estimate.
Estimates of the Company's proved reserves have never been filed or
included in reports to any federal authority or agency, other than the
Securities and Exchange Commission.
For further information on reserves, costs relating to oil and gas
activities, and results of operations from producing activities, see Note 14 to
the Company's Consolidated Financial Statements -Supplementary Financial
Information for Oil and Gas Producing Activities incorporated by reference
herein.
Productive Wells and Acreage
The following table sets forth the Company's producing wells and
developed acreage assignable thereto at July 31, 1996.
<TABLE>
<CAPTION>
Productive Wells
------------------------------------
Developed Acreage Oil Gas Total
------------------- ------------ ---------- ----------
Gross Net Gross Net Gross Net Gross Net
----- --- ----- --- ----- --- ----- ---
<S> <C> <C> <C> <C> <C> <C> <C>
235,820 43,960 268 65 230 30 498 95
</TABLE>
Productive wells consist of producing wells and wells capable of
production, including gas wells awaiting pipeline connections to commence
deliveries and oil wells awaiting connection to production facilities. Wells
which are completed in more than one producing horizon are counted as one well.
Of the gross wells reported above, 12 had multiple completions.
At July 31, 1996, the Company held by lease a total of 67,897 gross
(10,882 net) undeveloped acres consisting of (i) 4,080 gross (510 net)
undeveloped acres in the State of Colorado, (ii) 4,997 gross (2,166 net)
undeveloped acres in the State of Louisiana, (iii) 1,960 gross (245 net)
undeveloped acres in the State of Oklahoma, (iv) 56,668 gross (7,937 net)
undeveloped acres in the State of Texas, and (v) 192 gross (24 net) undeveloped
acres located in the State of Wyoming.
Production, Unit Prices and Costs
The following table sets forth information with respect to production
and average unit prices and costs for the periods indicated.
16
<PAGE>
<TABLE>
<CAPTION>
Year Ended July 31
-----------------------------
1994 1995 1996
---- ---- ----
<S> <C> <C> <C>
Production:
Gas (MMcf) 2,107 2,612 3,481
Oil (MBbls) 335 359 405
Average Sales Prices:
Gas (per Mcf) 1.81 1.48(1) 1.67(2)
Oil (per Bbl) 14.56 12.86(1) 15.24(2)
Average Production
costs per BOE(3) 7.06 6.63 6.71
- ------------------------
</TABLE>
(1) The Company's price hedging arrangements did not have a material effect on
average sales prices for the year ended July 31, 1995.
(2) After giving effect to the impact of the Company's price hedging
arrangements with the Company's principal bank. Without such hedging
arrangements, the average sales prices for the year ended July 31, 1996
would have been $15.73 for oil and $2.03 for gas.
(3) The components of production costs may vary substantially among wells
depending on the methods of recovery employed and other factors, but
generally include production taxes, lease overhead, maintenance and repair,
labor and utilities.
Drilling Activity
During the periods indicated, the Company drilled or participated in the
drilling of the following exploratory and development wells.
<TABLE>
<CAPTION>
Year Ended July 31
---------------------------------------------
1994 1995 1996
------------ ------------ -----------
Gross Net Gross Net Gross Net
----- ----- ----- ----- ----- ----
<S> <C> <C> <C> <C> <C> <C>
Exploratory:
Productive 0 ---- 0 ---- 0 0
Non-Productive 1 0.450 1 0.250 2 1.16
- ----- - ----- - ----
Total 1 0.450 1 0.250 2 1.16
= ===== = ===== = ====
Development:
Productive 6 1.457 6 1.189 6 .46
Non-Productive 0 ---- 0 ---- 1 .08
- ----- - ----- - ----
Total 6 1.457 6 1.189 7 .54
= ===== = ===== = ====
Total:
Productive 6 1.457 6 1.189 6 .46
Non-Productive 1 0.450 1 0.250 3 1.24
- ----- - ----- - ----
Total 7 1.907 7 1.439 9 1.70
= ===== = ===== = ====
</TABLE>
The well information above excludes wells in which the Company has only an
overriding royalty interest.
At July 31, 1996 the Company was not participating in the drilling or
completion of any oil and gas wells.
All of the Company's drilling activities are conducted with independent
contractors. The Company owns no drilling equipment.
17
<PAGE>
Competition
Competition in the acquisition of producing oil and gas properties and in
the exploration and production of oil and gas is intense. In seeking to obtain
desirable producing properties, new leases and exploration prospects, the
Company faces competition from both major and independent oil and gas companies
as well as from numerous individuals. Many of these competitors have financial
and other resources substantially in excess of those available to the Company.
Increases in worldwide energy production capability and decreases in energy
consumption as a result of conservation efforts have brought about substantial
surpluses in energy supplies in recent years. This, in turn, has resulted in
substantial competition for markets historically served by domestic natural gas
resources both with alternate sources of energy, such as residual fuel oil, and
among domestic gas suppliers. As a result, there have been reductions in oil
and gas prices, widespread curtailment of gas production and delays in producing
and marketing gas after it is discovered. Changes in government regulations
relating to the production, transportation and marketing of natural gas have
also resulted in significant changes in the historical marketing patterns of the
industry. Generally, these changes have resulted in the abandonment by many
pipelines of long-term contracts for the purchase of natural gas, the
development by gas producers of their own marketing programs to take advantage
of new regulations requiring pipelines to transport gas for regulated fees, and
the emergence of various types of gas marketing companies and other aggregators
of gas supplies. See "Item 1. Business and Item 2. Properties -Regulation." As
a consequence, gas prices, which were once effectively determined by government
regulation, are now largely established by market competition. Competitors of
the Company in this market include other producers, gas pipelines and their
affiliated marketing companies, independent marketers, and providers of
alternate energy supplies, such as residual fuel oil.
Regulation
The oil and gas industry is extensively regulated by federal, state and
local authorities. Legislation affecting the oil and gas industry is under
constant review for amendment or expansion. Numerous departments and agencies,
both federal and state, have issued rules and regulations binding on the oil and
gas industry and its individual members, some of which carry substantial
penalties for the failure to comply. The regulatory burden on the oil and gas
industry increases its cost of doing business and, consequently, affects its
profitability. Inasmuch as such laws and regulations are frequently amended or
reinterpreted, the Company is unable to predict the future cost or impact of
complying with such regulations.
Exploration and Production. Exploration and production operations of the
--------------------------
Company are subject to various types of regulation at the federal, state and
local levels. Such regulation includes requiring permits for the drilling of
wells, maintaining bonding requirements in order to drill or operate wells, and
regulating the location of wells, the method of drilling and casing wells, the
surface use and restoration of properties upon which wells are drilling and
producing, and the plugging and abandoning of wells. The Company's operations
are also subject to various conservation matters. These include the regulation
of the size of drilling and spacing units or proration units, the density of
wells which may be drilled, and the unitization or pooling of oil and gas
properties or interests. In this regard, some states allow the forced pooling
or integration of tracts to facilitate exploration while other states rely on
voluntary pooling of lands and leases. In addition, state conservation laws
establish maximum rates of production from oil and gas wells, generally prohibit
the venting or flaring of gas, and impose certain requirements regarding the
rate of production. The effect of these regulations is to limit the amounts of
oil and gas the Company can produce from its wells, and to limit the number of
wells or the locations at which the Company can drill.
The states of Oklahoma, Texas, Kansas, and Louisiana have adopted and are
considering revisions to their production allowable rules under which they
regulate the quantities of natural gas which may be produced within their
borders. The stated rationale behind such prorationing legislation and
rulemaking is the conservation of natural resources, prevention of waste and
protection of the correlative rights of oil and gas interest owners by limiting
production to the available market. It is impossible at this time to determine
the effect, if any, these developments may have on the natural gas industry as a
whole. The Company does not believe the developments will materially affect its
operations.
18
<PAGE>
Certain of the Company's oil and gas leases are granted by the federal
government and administered by various federal agencies. Such leases require
compliance with detailed federal regulations and orders which regulate, among
other matters, drilling and operations on these leases and calculation of
royalty payments to the federal government. The Mineral Lands Leasing Act of
1920 places limitations on the number of acres under federal leases that may be
owned in any one state. While the Company does not have a substantial federal
lease acreage position in any state or in the aggregate, the Company does own
interests in federal oil and gas leases which produce amounts of oil and gas
material to the Company The Mineral Lands Leasing Act of 1920 and related
regulations also may restrict a corporation from holding title to federal
onshore oil and gas leases if stock of such corporation is owned by citizens of
foreign countries which are not deemed reciprocal under such Act. Reciprocity
depends, in large part, on whether the laws of the foreign jurisdiction
discriminate against a United States person's ownership of rights to minerals in
such jurisdiction. The purchase of shares in the Company by citizens of foreign
countries who are not deemed to be reciprocal under such Act could have an
impact on the Company's ownership of federal leases.
The Company's operations are subject to extensive federal, state and local
laws and regulations relating to the generation, storage, handling, emission,
transportation and discharge of materials into the environment. Permits are
required for various of the Company's operations, and these permits are subject
to revocation, modification and renewal by issuing authorities. Governmental
authorities have the power to enforce compliance with their regulations, and
violations are subject to fines, injunctions or both. It is possible that
increasingly strict requirements will be imposed by environmental laws and
enforcement policies thereunder. The Company is also subject to laws and
regulations concerning occupational safety and health. It is not anticipated
that the Company will be required in the near future to expend amounts that are
material in the aggregate to the Company's overall operations by reason of
environmental or occupational safety and health laws and regulations, but
inasmuch as such laws and regulations are frequently changed, the Company is
unable to predict the ultimate cost of compliance.
Natural Gas Sales and Transportation. Federal legislation and regulatory
------------------------------------
controls have historically affected the price of the gas produced by the Company
and the manner in which such production is marketed. The transportation and
sale for resale of gas in interstate commerce are regulated pursuant to the
Natural Gas Act of 1938 (the "NGA") and the Natural Gas Policy Act of 1978 (the
"NGPA") and Federal Energy Regulatory Commission ("FERC") regulations
promulgated thereunder. Since 1978, maximum selling prices of certain
categories of gas, whether sold in interstate or intrastate commerce, have been
regulated pursuant to the NGPA. The NGPA established various categories of gas
and provided for graduated deregulation of price controls of several categories
of gas and the deregulation of sales of certain categories of gas. All price
deregulation contemplated under the NGPA has already taken place.
Title to Properties
As is customary in the oil and gas industry, the Company performs a minimal
title investigation before acquiring undeveloped properties, which generally
consists of obtaining a title report from legal counsel covering title to the
major properties (for example, properties comprising at least 80% by value of
the acquired properties) and due diligence reviews by independent landmen of the
remaining properties. The Company believes that it has satisfactory title to
such properties in accordance with standards generally accepted in the oil and
gas industry. A title opinion is obtained prior to the commencement of any
drilling operations on such properties. The Company's properties are subject to
customary royalty interests, liens incident to operating agreements, liens for
current taxes and other burdens which the Company believes do not materially
interfere with the use of or affect the value of such properties. Substantially
all of the Company's oil and gas properties are and will continue to be
mortgaged to secure borrowings under the Company's credit facilities. See Item
7, "Management's Discussion and Analysis of Financial Condition and Results of
Operations-Liquidity and Capital Resources."
Operational Hazards and Insurance
The operations of the Company are subject to all risks inherent in the
exploration for and production of oil and gas, including such natural hazards as
blowouts, cratering and fires, which could
19
<PAGE>
result in damage or injury to, or destruction of, drilling rigs and equipment,
formations, producing facilities or other property, or could result in personal
injury, loss of life or pollution of the environment. Any such event could
result in substantial expense to the Company which could have a material adverse
effect upon the financial condition of the Company to the extent it is not fully
insured against such risk. The Company carries insurance against certain of
these risks but, in accordance with standard industry practice, the Company is
not fully insured for all risks, either because such insurance is unavailable or
because the Company elects not to obtain insurance coverage because of cost.
Although such operational risks and hazards may to some extent be minimized, no
combination of experience, knowledge and scientific evaluation can eliminate the
risk of investment or assure a profit to any company engaged in oil and gas
operations.
Other Business
The Company has invested in the development of certain other business
interests. While the Company continues to believe these ventures have merit,
the Company has been unable, due to its own capital requirements, to provide
sufficient financial assistance and support to achieve its original objectives
in undertaking these investments. The continued viability of these business
ventures is in jeopardy without the infusion of substantial additional capital.
As a result of the Company's own declining financial condition and its inability
to provide any further financial assistance to these ventures, the Company has
abandoned its efforts and written off its investments and loans with respect to
these businesses. Under the terms of the proposed merger of the Company with
Alliance Resources Plc, the Company is required to dispose of its interests in
these ventures, provided that in making such disposition the Company is not
required to pay or mitigate any of the liabilities of these businesses. The
Company has agreed to sell these business interests to Imperial Petroleum, Inc.,
an affiliate of the Company, for 100,000 shares of the Company's common stock.
Completion of the sale is subject to, among other things, the receipt of an
opinion from an independent investment banking firm as to the fairness of the
sale to the Company's stockholders. Even in the event the proposed merger with
Alliance Resources Plc is not completed, the Company intends to proceed with the
sale of its interests in these ventures in order to refocus its efforts on its
core oil and gas business. See "Proposed Merger With Alliance Resources Plc."
Crude Oil Processing. The Company owns 5,000,000 shares of common stock of
--------------------
Wexford Technology, Incorporated ("Wexford") representing approximately 32% of
Wexford's issued and outstanding common stock. In addition, the Company has an
agreement with Wexford that provides for the issuance of additional Wexford
shares to the Company as an incentive for providing certain loans to Wexford.
Wexford's wholly-owned subsidiary, Waste Conversion Corp. ("Waste Conversion"),
holds the exclusive license to certain proprietary microwave technology utilized
to reclaim crude oil from oilfield waste, including tank bottoms, to reform or
blend crude oils with varying gravities, to reduce paraffin content of waxy
crude oil and to remove naturally occurring radio active material from oil field
produced fluids. Wexford is a development-stage company. Through December
1993, the Company had invested in Wexford $943,577 for the construction of a
commercial crude oil blending and processing facility in Troy, Alabama utilizing
the proprietary processing technology. The facility was substantially completed
in April 1992, at which time the Company concluded that the proprietary
technology for crude oil and tank bottoms processing required no further
research and development to meet all material functional and economic
requirements necessary for commercial exploitation. The Company has
subsequently made additional loans to Wexford and Waste Conversion for operating
capital.
The Alabama processing facility is not commercially active and Wexford and
Waste Conversion are seeking to raise additional debt or equity capital
necessary to begin full scale commercial operations. Wexford and Waste
Conversion are currently in default with respect to various debt and other
obligations and have received numerous demands for payment and threats of
litigation. Effective July 31, 1996 the Company has written off its entire
investment in and loans to Wexford and Waste Conversion in the total amount of
$2,372,752.
Mining. The Company owns 3,798,730 shares of the common stock of Imperial
------
Petroleum, Inc. ("Imperial") representing approximately 12% of Imperial's issued
and outstanding common stock. Imperial's wholly-owned subsidiary, Ridgepointe
Mining Company, owns gold and copper mining claims in Arizona and participates
in a joint venture to explore and develop certain gold mining claims in Mexico.
20
<PAGE>
The Company's investment in Imperial and Ridgepointe consisted primarily of
loans for operating capital. At present, Imperial is actively seeking to raise
additional debt or equity capital to fund its operations. Imperial is currently
in default under its bank debt. Effective July 31, 1996 the Company has written
off its entire investment in and loans to Imperial in the total amount of
$1,797,378.
Employees
The Company employs a total of 30 people, including 20 people in its Tulsa,
Oklahoma office and one person in its Evansville, Indiana office, whose
functions are associated with management, operations, accounting and oil and gas
marketing. The Company employs seven people in the Tensaw, Alabama office who
are lease operators in the Company's South Carlton field, and one field person
each in the states of Louisiana and Tennessee. The Company's other field
activities are accomplished through independent contractors. The Company
believes its relations with its employees and contractors are excellent.
Item 3. Legal Proceedings.
Torch/Nuevo/Panda Litigation. In connection with the Company's sale of its
----------------------------
subsidiaries Panda Resources, Inc. and Richfield Natural Gas, Inc. in 1993, the
Company became a party to three different lawsuits.
On October 10, 1994, Nuevo Liquids, Inc. ("Nuevo") filed a lawsuit against
the Company and its wholly-owned subsidiary, LaTex Petroleum Corporation ("LaTex
Petroleum") styled Nuevo Liquids, Inc. v. LaTex Resources, Inc. and LaTex
------------------------------------------------------
Petroleum Corp., Case No. 94-049944, District Court of Harris County, Texas,
- ---------------
234th Judicial District. Nuevo alleged that the Company and LaTex Petroleum had
refused to arbitrate certain disputes arising under the Stock Purchase Agreement
dated July 15, 1993 between Nuevo and Panda Resources, Inc. ("Panda"), pursuant
to which Panda sold to Nuevo its former wholly-owned subsidiary, Richfield
Natural Gas, Inc. ("Richfield"). Under the terms of the Stock Purchase
Agreement, the Company was the guarantor of Panda's obligations to Nuevo. The
disputed issues between Nuevo and the Company related to a post-closing final
accounting and settlement statement by which the final purchase price under the
Stock Purchase Agreement was to be adjusted to reflect certain post-closing
costs and events.
On October 12, 1994, Torch Energy Marketing, Inc. ("Torch") filed a lawsuit
against the Company and its wholly-owned subsidiary, LaTex Petroleum styled
Torch Energy Marketing, Inc. v. LaTex Resources, Inc. and LaTex Petroleum Corp.,
- -------------------------------------------------------------------------------
Case No. 94-050945, District Court of Harris County, Texas, 270th Judicial
District. Torch alleged that the Company and LaTex Petroleum had refused to
arbitrate certain disputes arising under the Stock Purchase Agreement dated
July 26, 1993, between Torch and LaTex Petroleum, pursuant to which the Company
sold to Torch its former wholly-owned subsidiary, Panda. The disputed issues
between Torch and the Company related to a post-closing final accounting and
settlement by which the final purchase price under the Stock Purchase Agreement
was to be adjusted to reflect certain post-closing costs and events. On
January 6, 1995, the Company removed both the Nuevo and Torch lawsuits to the
United States District Court for the Southern District of Texas, Houston
Division, Case No. H-95-0029.
On March 21, 1995, the Company filed a lawsuit against its former wholly-
owned subsidiary, Panda, styled LaTex Petroleum Corporation v. Panda Resources,
-----------------------------------------------
Inc., Case No. CJ-95-01302, in the District Court of Tulsa County, Oklahoma.
- ----
The Company sought recovery of $163,191.16 plus interest and attorneys' fees,
for the sale of natural gas to Panda for the period from June 1993, through
March 1994.
On December 7, 1995, the company entered into a Settlement Agreement (the
"Settlement") with Torch, Nuevo, Panda, Steve Wilson and Wilson, Tucker &
Associates to settle each of the referenced lawsuits. Pursuant to the
Settlement, the company agreed (a) to pay Nuevo $20,000 on December 7, 1995, and
an additional $30,000 over the course of 90 days following execution of the
Settlement, and (b) to pay Torch $50,000 within one year of the Settlement, an
additional $50,000 within two years of the Settlement, and an additional
$150,000 within three years of the Settlement, together with interest in the
amount of $36,000. To secure its obligation under the Settlement, the Company
stipulated to an agreed judgment in the amount of $1,000,000 (less any amounts
paid pursuant to the Settlement) upon the Company's
21
<PAGE>
default of its obligations under the Settlement. Torch, Nuevo and Panda agreed
to dismiss their respective claims against the Company arising from the
referenced litigation. In addition, the Company agreed to assume and indemnify
Panda and Torch against all obligations and amounts owed under a May 2, 1989,
agreement (the "Dewey County Contract") between Panda and Northern Natural Gas
Company relating to the transportation of natural gas through a facility located
in Dewey County, Oklahoma. The Company has subsequently been asked to indemnify
Torch with respect to claims brought against it by Northern in a lawsuit filed
March 7, 1996, as more fully discussed below.
Northern Natural Gas Company v. LaTex Resources, Inc., Case No. 94-049766,
-----------------------------------------------------
152nd District Court of Harris County, Texas. On October 7, 1994, Northern
Natural Gas Company ("Northern") filed a lawsuit against the Company alleging
that the Company had breached two Firm Transportation Service Agreements dated
December 1, 1990, between Northern and Panda, a former wholly-owned subsidiary
of the Company. Northern claimed damages, including damages for anticipatory
breach, in the amount of $1,600,000, plus other actual damages and interest.
On June 6, 1996, Northern and the Company entered into a Settlement Agreement
pursuant to which (a) the Company issued to Northern 50,000 shares of the
Company's Series B Senior Convertible Preferred Stock which are convertible
(subject to adjustment) into 333,333 shares of the Company's common stock, and
(b) the Company agreed to pay Northern $465,000 in installments of $50,000 by
June 21, 1996, $150,000 by May 1, 1997, $125,000 by May 1, 1998, and $140,000 by
May 1, 1999. An agreed judgment was entered in the case, but Northern has
agreed not to seek to enforce the judgment unless the Company defaults in its
payment obligations. Once the required payments have been made, Northern has
agreed to execute a release of the judgment.
Associated Storage Corp., formerly known as Centennial Storage Corp., a
-----------------------------------------------------------------------
subsidiary of Associated Natural Gas, Inc., a Colorado corporation v. LaTex
- ---------------------------------------------------------------------------
Resources, Inc., Case No. CJ-94-04711, District Court for Tulsa County,
- ---------------
Oklahoma. On November 17, 1994, Associated Storage Corporation ("Associated")
filed a lawsuit against the Company alleging that the Company had breached a
July 21, 1993 agreement between Associated and the Company pursuant to which the
Company allegedly agreed to pay Associated $150,000 in connection with the sale
of the Company's former wholly-owned subsidiary, Panda Resources, Inc., and
Panda's wholly-owned subsidiary, Richfield Natural Gas, Inc. Associated seeks
actual damages in the amount of $150,000, prejudgment interest, court costs and
attorneys' fees.
Jones, et al. v. Hughes Eastern, et al., Case No. CV-95-133, Circuit Court
---------------------------------------
for Lamar County, Alabama; Hubbert, et al. v. Hughes Eastern, et al., Case No.
-----------------------------------------
CV-95-134, Circuit Court for Lamar County, Alabama; Perkins, et al. v. Hughes
-------------------------
Eastern, et al., Case No. CV-95-137, Circuit Court for Lamar County, Alabama.
- ---------------
Each of these cases is a wrongful death or personal injury action arising out of
an accident which occurred at a heater-treatment unit on the Blowhorn Creek
Millerella Oil Unit lease in Lamar County, Alabama. Germany Oil Company, a
wholly-owned subsidiary of the Company, is a working interest owner in the oil
and gas lease relevant to the case and, together with all other working interest
owners, is a named defendant. Each plaintiff seeks damages in the amount of $25
million. All three cases have been referred to Germany Oil Company's insurance
carrier for defense. Each case is in the initial stages of discovery.
Northern Natural Gas Company v. Torch Energy Advisors, Inc., Case No.
-----------------------------------------------------------
96-12462, 269th Judicial District Court of Harris County, Texas. On March 7,
1996, Northern Natural Gas Company ("Northern") filed this lawsuit against Torch
Energy Advisors, Inc. ("Torch" for alleged breach of a May 2, 1989, agreement
(the "Dewey County Contract") between Torch, Panda Resources, Inc. ("Panda"),
and Northern relating to the transportation of natural gas through a facility
located in Dewey County, Oklahoma. The Company has assumed the defense of this
matter pursuant to the indemnification agreement entered into as part of the
December 7, 1995, settlement among Torch, Panda and the Company discussed above.
In addition to the foregoing litigation, the Company is a named defendant
in lawsuits, is a party in governmental proceedings and is subject to claims of
third parties from time to time arising in the ordinary course of business.
While the outcome of lawsuits or other proceedings and claims against the
Company cannot be predicted with certainty, management does not expect these
additional matters to have a material adverse effect on the financial position
of the Company.
22
<PAGE>
Item 4. Submission of Matters to a Vote of Security Holders.
On May 16, 1996 the Company held its 1995 annual meeting of shareholders to
(i) elect six directors, and (ii) ratify the selection of Briscoe Robinson Co.,
(now known as Briscoe & Burke) as the Company's independent auditors for 1996.
At the meeting the following individuals were elected directors of the Company.
Each individual elected was a director of the Company prior to the meeting.
<TABLE>
<CAPTION>
Votes Votes
Director For Withheld
-------- ----- --------
<S> <C> <C>
Jeffrey T. Wilson 14,425,882 226,165
Malcolm W. Henley 14,406,107 245,940
Philip J. Wade(1) 14,403,107 248,940
Dennis J. Strauch(2) 14,403,107 248,940
John R. Martinson 14,420,432 231,615
John L. Cox 14,412,432 239,615
</TABLE>
- --------------------
(1) Mr. Wade resigned as a Director of the Company on October 8, 1996.
(2) Mr. Strauch resigned as a Director of the Company on June 24, 1996.
The selection of Briscoe & Burke was ratified by shareholders by a vote of
14,464,929 shares for and 115,303 against with 71,815 shares abstaining.
PART II
Item 5. Market for Registrant's Common Equity and Related Shareholder Matters.
Market Information and Dividends
The common stock of the Company (i) is traded over-the-counter and quoted
on NASDAQ under the symbol "LATX" and (ii) until September 4, 1996, was listed
on the Pacific Stock Exchange under the symbol "LAT". Effective September 4,
1996, the Company's common stock was delisted by the Pacific Stock Exchange as a
result of the failure of the minimum bid price for the common stock to meet the
Exchange's listing maintenance requirements.
The following table sets forth, for the periods indicated, (i) the high and
low closing bid prices per share of common stock as quoted by NASDAQ, and (ii)
the high and low closing bid prices per share of common stock as reported on the
Pacific Stock Exchange. Bid quotations represent quotations between dealers
without adjustment for retail mark-ups, mark-downs or commissions and may not
necessarily represent actual transactions.
<TABLE>
<CAPTION>
Pacific
NASDAQ Stock Exchange(1)
--------------- --------------------
High Low High Low
---- --- ---- ---
<S> <C> <C> <C> <C>
Fiscal Year Ended July
31, 1996:
First Quarter 7/8 7/16 3/4 3/8
Second Quarter 11/16 13/32 3/8 3/8
Third Quarter 1/2 11/32 1/2 1/2
Fourth Quarter 17/32 5/16 N/A(2) N/A(2)
Fiscal Year Ended July
31, 1995:
First Quarter 1 7/8 1/2 1/2 1/2
Second Quarter 1 5/16 23/32 1 3/4
Third Quarter 15/16 1/2 7/8 1/2
Fourth Quarter 5/8 7/16 3/8 1/4
- ---------------------------
</TABLE>
23
<PAGE>
(1) Effective September 4, 1996, the Company's common stock was delisted by the
Pacific Stock Exchange as a result of the failure of the minimum bid price
for the common stock to meet the Exchange's listing maintenance
requirements.
(2) There was no trading activity in the Company's common stock on Pacific
Stock Exchange during the fourth quarter of fiscal 1996 and, therefore, no
price information for this period is available.
No cash dividends have been declared by the Company's Board of Directors
during the Company's two most recent fiscal years. The Company does not
presently intend to declare or pay dividends on the common stock. The terms of
the Company's existing bank credit facility do not permit the Company to pay
dividends on the common stock. Payment of dividends in the future, if any, will
depend on applicable legal and contractual restrictions, as well as the
financial condition and requirements of the Company and general business
conditions. The Company presently intends to use its available cash flow for
expansion of the Company's business, including acquisition, development and
enhancement of oil and gas properties.
Recent Sales of Unregistered Securities
During the year ended July 31, 1996, the Company issued (i) effective
March 12, 1996, 58,800 shares of its common stock to Princeton Otolaryngology
Retirement Trust, an entity controlled by Dr. Howard S. Farmer, in payment of
indebtedness of Wexford Technology, Incorporated in the amount of $23,520, and
(ii) effective June 27, 1996, 85,000 shares of its common stock to Thomas J.
Patrick in payment of indebtedness of Wexford Technology, Incorporated in the
amount of $37,000. Following the year ended July 31, 1996 the Company issued a
total of 1,690,000 shares of its common stock to various officers and employees
as described in more detail at "Item 11. Executive Compensation -- Restricted
Stock Grants". In each of the referenced transactions, an exemption from
registration was claimed under Section 4(2) of the Securities Act of 1933, as
amended, and regulations promulgated thereunder because no public offering was
involved and the securities were issued for investment and not with a view to
the distribution thereof. No underwriter was involved in any of the referenced
transactions nor were any underwriting discounts or commissions paid. Each
certificate representing shares issued in the referenced transactions bears a
restrictive legend and stop transfer instructions were entered on the Company's
stock transfer records with respect thereto.
Item 6. Selected Financial Data.
The selected historical financial information presented in the table below
for and at the end of each of the years ended July 31, 1992, 1993, 1994, 1995
and 1996 is derived from the audited consolidated financial statements of the
Company, of which the consolidated balance sheets as of July 31, 1995 (restated)
and 1996, and the consolidated statements of income, shareholders' equity and
cash flows for the years ended July 31, 1994, 1995 (restated) and 1996 are
included under "Item 8. Financial Statements and Supplementary Data."
The selected financial information presented below should be read in
conjunction with the Company's audited consolidated financial statements and the
notes thereto included under Item 8 and Management's Discussion and Analysis of
Financial Condition and Results of Operations at Item 7.
24
<PAGE>
Selected Consolidated Financial and Operating Data
(In thousands, except per share amounts and average sales data)
<TABLE>
<CAPTION>
Years Ended
July 31(1)
=========================================================================
1996 1995 1994 1993 1992
============== ============== ============ ============ =============
(Restated)
<S> <C> <C> <C> <C> <C>
Income Statement Data:
Revenues:
Oil and gas sales................... $ 11,980 $ 8,586 $ 8,703 $ 8,489 $ 6,778
Crude oil and gas marketing......... 540 1,223 2,781 2,128 210
Lease operating and management fees. 1,011 634 601 860 561
----------- ----------- ----------- ----------- -----------
Total operating income............ 13,531 10,443 12,085 11,477 7,549
----------- ----------- ----------- ----------- -----------
Operating expenses:
Lease operating expense............. 6,608 5,265 4,840 4,735 4,092
Crude oil and gas marketing......... 134 744 2,216 1,740 193
Dry hole costs and abandonments..... 3,586 104 113 --- ---
General and administrative.......... 2,893 2,735 2,497 2,566 1,564
Depreciation, depletion and
amoritization...................... 4,706 2,711 2,214 2,899 1,724
----------- ----------- ----------- ----------- -----------
Total operating expenses.......... 17,927 11,559 11,880 11,940 7,573
----------- ----------- ----------- ----------- -----------
Other Income (expense):
Equity in losses and write offs of
investments in affiliates.......... (4,185) (299) (440) (16) (2)
Gain on sale of assets.............. 2,366 128 393 863 276
Interest income..................... 205 122 17 9 12
Interest expense.................... (2,410) (1,291) (598) (728) (724)
Net loss from continuing operations ----------- ----------- ----------- ----------- -----------
before income taxes.................. (8,420) (2,456) (423) (335) (462)
Provision for income taxes:
Current............................. --- 35 --- (145) (159)(2)
----------- ----------- ----------- ----------- -----------
Net loss from continuing operations... (8,420) (2,491) (423) (190) (303)
Income (loss) from discontinued
operations (net of income taxes).... --- --- --- 974 (962)
Gain (loss) on disposal of subsidiary
(net of income taxes)................ (1,811) --- --- 123 ---
----------- ----------- ----------- ----------- -----------
Net income (loss)..................... $ (10,231) $ (2,491) $ (423) $ 907 $ (1,265)(2)
=========== =========== =========== =========== ===========
Preferred stock dividends............. 571 133 --- --- ---
Net income (loss) for common
shareholders......................... $ (10,801) $ (2,624) $ (423) $ 907 $ (1,265)(2)
Loss per share from continuing =========== =========== =========== =========== ===========
operations........................... $(0.50) $(0.15) $(0.02) $(0.01) $(0.02)
=========== =========== =========== =========== ===========
Income (loss) per common share........ $(0.60) $(0.15) $(0.02) $0.06 $(0.10)
=========== =========== =========== =========== ===========
Weighted average shares outstanding(3) 18,011,826 17,661,428 17,434,159 15,116,096 12,266,372
=========== =========== =========== =========== ===========
Balance Sheet Data (end of period):
Total assets........................ $ 38,966 $ 47,923 $ 21,259 $ 21,246 $ 35,399
Net property, plant and equipment... $ 31,945 $ 37,709 $ 13,077 $ 12,440 $ 12,304
Working capital (deficit)........... $ (28,420) $ (7,119) $ (1,111) $ (2,117) $ (10,353)
Long term debt...................... $ 0 $ 20,635 $ 4,467 $ 4,868 $ 2,544
Stockholders' equity................ $ 6,318 $ 16,001 $ 10,280 $ 8,216 $ 2,639
Reserve and Production Data:
Production:
Oil (MBbls)....................... 405 359 335 280 213
Gas (MMcf)........................ 3,481 2,612 2,107 1,941 1,798
Average sales prices:
Oil (per Bbl)..................... $ 15.24(4) $ 12.86(5) $ 14.56 $ 17.88 $ 17.64
Gas (per Mcf)..................... $ 1.67(4) $ 1.48(5) $ 1.81 $ 1.79 $ 1.57
Proved reserves (end of period):
Oil (MBbls)....................... 6,353.1 4,036.4 4,519.9 2,455.3 1,845.5
Gas (MMcf)........................ 28,172 27,730 10,933 9,391 8,214
Present value of estimated future
oil and gas net revenues before
income taxes (discounted 10%)...... $ 53,499 $ 29,685 $ 23,418 $ 15,658 $ 16,923
</TABLE>
(1) Included in the Company's historical consolidated financial information for
the years ended July 31, 1992, 1993, 1994, 1995 and 1996 are the assets,
liabilities and results of operations of LaTex Resources, Inc. The
financial information reflects (a) the 1991 pooling of Elite Enterprises,
Inc. and Sable Investments Corporation and the 1993 pooling of Panda
Resources, Inc. and its subsidiaries, Panada Exploration, Inc. and
Richfield Natural Gas, Inc., and (b) the discontinued operations from the
subsequent sale of Panda Resources, Inc. and Richfield Natural Gas, Inc.
effective July 1, 1993. The financial information of ENPRO, Inc. and
Phoenix Metals, Inc. has been included subsequent to their June 22, 1992
and December 8, 1992 respective dates of acquisition.
(2) LaTex Resources, Inc. and Sable Investment Corporation elected to be taxed
as C corporations under the Internal Revenue Code effective January 1,
1992. The net loss for fiscal 1992 is net of a proforma provision for
income taxes of $25 that would have been provided had these entities
elected to be taxed as C corporations effective August 1, 1991. Earnings
per share was not affected.
(3) The weighted average shares outstanding is as disclosed in the Notes to the
LaTex Resources, Inc. Consolidated Financial Statements included elsewhere
herein.
(4) After giving effect to the impact of the Company's price hedging
arrangements with the Company's principal bank. Without such hedging
arrangements, the average sales prices for the year ended July 31, 1996,
would have been $15.73 for oil and $2.03 for gas.
(5) The Company's price hedging arrangements did not have material effect on
average sales prices for the year ended July 31, 1995.
25
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
FASB Accounting Standards
The Financial Accounting Standards Board ("FASB") has issued Statements of
Financial Accounting Standards No. 114 ("SFAS 114"), Accounting by Creditors for
Impairment of a Loan and No. 118 ("SFAS 118"), Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures. In general, these
statements require that impaired loans be measured by creditors at the present
value of expected future cash flows discounted at the loan's effective interest
rate or at the loan's observable market price or the fair value of the
collateral if the loan is collateral dependent. The Company has adopted SFAS
114 and 118 for the fiscal year ended July 31, 1996.
FASB has issued Statement of Financial Accounting Standard No. 119 ("SFAS
119"), Disclosure about Derivative Financial Instruments and Fair Value of
Financial Instruments. This statement generally requires disclosures about
amounts, nature and terms of derivative financial instruments. The Company has
adopted SFAS 119 for the fiscal year ended July 31, 1996.
FASB has issued Statement of Financial Accounting Standard No. 121 ("SFAS
121"), Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of. This statement requires that long-lived assets and
certain identifiable intangibles to be held and used by an entity be reviewed
for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. If the sum of the
undiscounted future cash flows is less than the carrying amount of the asset, an
impairment loss is recognized. This statement is effective for financial
statements for fiscal years beginning after December 15, 1995. The Company
intends to adopt SFAS 121 for the fiscal year ending July 31, 1997. The Company
expects the adoption of SFAS 121 will not have a material effect on its
financial statements.
FASB has issued Statement of Financial Accounting Standard No. 123 ("SFAS
123"), Accounting for Stock-Based Compensation. This statement establishes
financial accounting and reporting standards for stock-based employee
compensation plans. This statement defines a fair value based method of
accounting for an employee stock option or similar equity instrument plan.
Under the fair value based method, compensation cost is measured at the grant
date based on the value of the award and is recognized over the service period,
which is usually the vesting period. This statement is effective for
transactions entered into in fiscal years that begin after December 15, 1995.
The Company intends to adopt the disclosure requirements of SFAS 123 for the
fiscal year ending July 31, 1997.
Results of Operations
The Company follows the "successful efforts" method of accounting for its
oil and gas properties whereby costs of productive wells and productive leases
are capitalized and depleted on a unit-of-production basis over the life of the
remaining proved reserves. Depletion of capitalized costs is provided on a
prospect-by-prospect basis. Exploratory expenses, including geological and
geophysical expenses and annual delay rentals, are charged to expense as
incurred. Exploratory drilling costs, including the cost of stratigraphic test
wells, are initially capitalized, but charged to expense if and when the well is
determined to be unsuccessful.
The factors which most significantly affect the Company's results of
operations are (i) the sale prices of crude oil and natural gas, (ii) the level
of oil and gas sales, (iii) the level of lease operating expenses, (iv) the
level of exploratory activities, and (v) the level of and interest rates on
borrowings. Total sales volumes and the level of borrowings are significantly
impacted by the degree of success the Company experiences in its efforts to
acquire oil and gas properties and its ability to maintain or increase
production from existing oil and gas properties through its development and
production enhancement activities. The following table reflects certain
historical operating data for the periods presented.
26
<PAGE>
<TABLE>
<CAPTION>
Year Ended July 31
--------------------------------
1994 1995 1996
---- ---- ----
<S> <C> <C> <C>
Net Sales Volumes:
Oil (MBbls) 335 359 405
Natural gas (MMcf) 2,107 2,612 3,481
Oil equivalent (MBOE) 686 794 985
Average Sales Prices:
Oil (per Bbl) $ 14.56 $ 12.86(1) $ 15.24(2)
Natural gas (per Mcf) $ 1.81 $ 1.48(1) $ 1.67(2)
Operating Expenses per BOE of Net Sales:
Lease operating $ 6.29 $ 5.91 $ 5.82
Severance tax $ 0.77 $ 0.72 $ 0.89
General and administrative $ 3.75 $ 3.56 $ 2.94
Depreciation, depletion and amortization $ 3.23 $ 3.34 $ 4.60
- --------------------------------------
</TABLE>
(1) The Company's price hedging arrangements did not have a material effect on
average prices for the year ending July 31, 1995.
(2) After giving effect to the impact of the Company's price hedging
arrangements with the Company's principal bank. Without such hedging
arrangements, the average sales prices for the year ended July 31, 1996
would have been $15.73 for oil and $2.03 for gas.
Relatively modest changes in either oil or gas prices significantly impact
the Company's results of operations and cash flow and could significantly impact
the Company's borrowing capacity. Prices received by the Company for sales of
oil and natural gas have fluctuated significantly from period to period. The
Company's ability to maintain current borrowing capacity and to obtain
additional capital on attractive terms is substantially dependent on oil and gas
prices. Domestic spot oil prices have ranged from a low of approximately $11 per
barrel in July 1986 to a high of approximately $40 per barrel in October 1991,
with a current price of approximately $24 per barrel. The fluctuations in oil
prices during these periods reflect market uncertainty regarding OPEC's ability
to control the production of its member countries, as well as concerns related
to the global supply and demand for crude oil. Since the end of the Gulf War in
early 1991, crude oil prices have experienced continued weakness, primarily as a
result of OPEC's inability to maintain disciplined production quotas by member
countries and the uncertainty associated with Iraq's return to the crude oil
export market. These factors continue to overhang the market and will create
significant price volatility for the foreseeable future.
Natural gas prices received by the Company fluctuate generally with changes
in the spot market price for gas. Spot market gas prices have generally
declined in recent years because of lower worldwide energy prices as well as
excess deliverability of natural gas in the United States. However, natural gas
prices have rebounded recently and appear to be poised for further
strengthening. Domestic spot natural gas prices have ranged from a low of
approximately $0.90 per Mcf in January 1992 to a high of approximately $2.70 per
Mcf in April 1996, with a current price of approximately $2.10 per Mcf.
Environmental concerns coupled with recent increases in the use of natural gas
to produce electricity have combined to improve prices. Under FERC Order 636,
U.S. pipelines have been made more accessible to both buyers and sellers of
natural gas and, as a result, natural gas will be able to more effectively
compete for market share with other end-use energy forms. All of this suggests
a continued improvement in the demand for natural gas over the long term.
Within the oil and gas business, it appears that the substantial
restructuring of the major and large independent companies is slowing. The
merger activity of the 1980's has waned, and despite the continued exodus by
U.S. companies to international ventures, it appears that the mid-1990's will be
a "settling in" time for most companies. Nevertheless, there remains a large
inventory of properties available for acquisition within the United States.
However, it is anticipated that as crude oil and natural gas prices stabilize
and strengthen, fewer companies will be inclined to sell their properties in the
future.
27
<PAGE>
The Company's principal source of cash flow is the production and sale of
its crude oil and natural gas reserves, which are depleting assets. Cash flow
from oil and gas sales depends upon the quantity of production and the price
obtained for such production. Except as affected by the Company's current
commodity hedging arrangement, an increase in prices permits the Company to
finance its operations to a greater extent with internally generated funds. A
decline in oil and gas prices reduces the cash flow generated by the Company's
operations, which in turn reduces the funds available for servicing debt,
acquiring additional oil and gas properties and exploring for an developing new
oil and gas reserves.
In addition to the foregoing, the results of the Company's operations vary
due to seasonal fluctuations in the sales prices and volumes of natural gas. In
recent years, natural gas prices have been generally higher in the fall and
winter. Due to these seasonal fluctuations, results of operations for
individual quarterly periods may not be indicative of results which may be
realized on an annual basis.
The following events have directly affected the comparability of the
results of operations and financial position of the Company during the periods
presented:
. During the period between July 31, 1992 and July 31, 1996, the Company
completed 12 oil and gas property acquisitions that added substantial
amounts of proved oil and gas reserves for a total expenditure of
approximately $30.8 million. As a result of these transactions, the
Company's equivalent proved reserves increased approximately 560% in
fiscal 1992, 125% in fiscal 1993, 58% in fiscal 1994, 3.5% in fiscal
1995 and 68% in fiscal 1996, and the Company's oil and gas production,
revenues, lease operating expenses, interest expense and net income
have increased significantly.
. The Company acquired Panda Resources in February 1993 and subsequently
sold Panda's gas marketing and storage operations in July 1993.
. In April 1995 the Company completed the acquisition of Germany Oil
Company which approximately doubled the Company's oil and gas
properties and added significantly to the Company's liabilities. The
acquisition was accounted for using the purchase method of accounting.
In connection with this acquisition, the Company refinanced its senior
debt, issued preferred stock and entered into hedging arrangements
with respect to sales prices for its oil and gas production.
. In December 1995 the Company completed the sale of certain oil and gas
properties it had acquired from Phillips Petroleum and Sackett Oil
Company for approximately $2,857,275 net cash to the Company.
. In March 1995 the Company acquired Germany Oil Company in a purchase
transaction. The assets of Germany Oil consisted primarily of oil and
gas properties. In recording the transaction, the Company failed to
allocate the purchase price to all assets acquired as required by
generally accepted accounting principles. During fiscal 1996 the
Company, based on the reports of independent petroleum engineers,
reallocated the adjusted purchase price as of the date of acquisition.
Accordingly, the Company's consolidated financial statements for the
year ended July 31, 1995 have been restated.
Year ended July 31, 1996 Compared to year ended July 31, 1995. Total
-------------------------------------------------------------
revenues from the Company's operations for the year ended July 31, 1996 were
$15,006,816 before reduction by $1,475,653 as a result of losses incurred from
the Company's oil and gas price hedging arrangements. This compares to total
revenues of $10,442,679 for the year ended July 31, 1995, which includes hedging
gains of $157,301. The increase is attributable to a 15% increase in oil and
gas prices and the inclusion of the oil and gas operations of the Company's
wholly-owned subsidiary, Germany Oil Company, for the full year ended July 31,
1996. The increased revenues were partially offset by lower revenues from the
Company's crude oil marketing activities.
Total operating expenses for the year ended July 31, 1996 were $17,926,639
compared to $11,559,488 for the same period a year earlier. Lease operating
expense increased 20% to $6,608,089
28
<PAGE>
compared to the prior year primarily as a result of including the full year of
operations of Germany Oil, while expenses associated with the Company's
marketing operations decreased $610,155 due to reduced oil and gas marketing
activity.
Depreciation, depletion and amortization expense increased from $2,710,574
in fiscal 1995 to $4,705,912 in fiscal 1996 primarily as a result of the
acquisition of Germany Oil.
General and administrative expenses for the year ended July 31, 1996 were
$2,893,146 compared to $2,736,261 for the prior year due to routine increases in
the Company's administrative expenses.
The Company incurred dry hole costs of $2,630,541 during the year ended
July 31, 1996 which was principally due to the write-off of the Company's
investment in the Tunisian Prospect. The Company also wrote off its investment
in the Kazakhstan Prospect in the amount of $955,496. See "Item 1. Business
and Item 2. Properties -- Exploration and Development".
The Company's equity in the net losses of its unconsolidated affiliates,
Wexford Technology, Incorporated and Imperial Petroleum, Inc. was $298,839
during the fiscal year July 31, 1995. The current year equity in the losses or
earnings from these unconsolidated affiliates was not subject to determination
by the Company and, therefore, is included in the write off of the investment in
and advances to these affiliates in the total amount of $4,184,881 for the
fiscal year ended July 31, 1996. See "Item 1. Business and Item 2. Properties -
- - Other Business".
The Company recognized gains on the sale of assets of $2,365,807 from the
disposition of non-strategic oil and gas properties during the fiscal year ended
July 31, 1996, an increase of $2,237,881 from the preceding year.
The Company had a net loss from continuing operations for the year ended
July 31, 1996 of $8,420,401 ($0.50 per common share), compared to a net loss
from continuing operations of $2,491,342 ($0.15 per common share) for the year
ended July 31, 1995. The increase in the net loss from continuing operations is
primarily a result of the write off of the cost of the Company's activities in
Tunisia and Kazakhstan (reflected as dry hole cost and abandonments), hedging
contract losses, and equity in losses and write-offs of investments in
affiliates. These increases were partially offset by a gain on the sale of
assets.
The Company also incurred additional losses of $1,810,382 from discontinued
operations in connection with litigation arising out of the sale of its Panda
subsidiary in July 1993. As a result, the Company incurred a net loss of
$10,801,404 ($0.60 per common share) for the year ended July 31, 1996 compared
to a net loss of $2,624,142 ($0.15 per common share) for the prior year.
Year ended July 31, 1995 compared to year ended July 31, 1994. Total
-------------------------------------------------------------
revenues from the Company's operations for the year ended July 31, 1995 were
$10,442,679 compared to $12,085,364 for the year ended July 31, 1994. The
decrease is primarily attributable to a 13% decrease in oil and gas prices which
also resulted in lower revenues from the Company's crude oil marketing
activities. The reduced revenues were partially offset by an increase in oil
and gas sales volume as a result of the acquisition of Germany Oil Company
effective in April 1995. However, oil and gas sales revenues for the fourth
quarter of fiscal 1995 increased 46% compared to revenues in the fourth quarter
of fiscal 1994 as a result of the acquisition of Germany Oil. The Company
anticipates that oil and gas sales revenues will further increase in subsequent
quarters due to this acquisition.
Total operating expenses for the year ended July 31, 1995 were $11,559,488
compared to $11,880,094 for the same period a year earlier. Lease operating
expense increased nine percent to $5,264,858 compared to the prior year
primarily as a result of the acquisition of Germany Oil, while expenses
associated with marketing operations decreased $1,472,684 due to lower product
prices.
Depreciation, depletion and amortization expense increased from $2,213,823
during fiscal 1994 to $2,710,574 during fiscal 1995 as a result of the
acquisition of Germany Oil and due to an increase in depletion rates as a result
of the year-end price impact on the Company's base of oil and gas reserves.
29
<PAGE>
General and administrative expenses for the year ended July 31, 1995 were
$2,736,267 compared to $2,496,567 for the prior period. The increase was due to
increases in the Company's legal and accounting fees associated with the closing
of the acquisition of Germany Oil in April 1995.
The Company incurred losses from unconsolidated affiliates of $298,839
during the current fiscal year, with $216,998 of the losses attributable to
Wexford Technology Incorporated, a development stage company engaged in the
crude oil tank bottoms business. See "Item 1. Business and Item 2. Properties -
Other Business."
The Company recognized gains on the sale of assets of $127,926 from the
disposition of non-strategic oil and gas properties during the fiscal year ended
July 31, 1995, a reduction from gains of $265,281 in the previous year.
The Company had an after-tax net loss from continuing operations for the
year ended July 31, 1995 of $2,491,342 ($0.15 per common share) compared to a
net loss of $423,341 ($0.02 per common share) for the year. The increase in the
net loss is a result of lower oil and gas prices and increased operating,
financing, professional, and amortization costs associated with the purchase of
Germany Oil.
Year ended July 31, 1994 compared to year ended July 31, 1993. Total
-------------------------------------------------------------
revenues from the Company's operations for the year ended July 31, 1994 were
$12,085,366 as compared to $11,477,045 for the year ended July 31, 1993. The
increase in revenues is primarily due to the Swift Energy acquisition and
increased marketing margins from the sale of the Company's production in the
South Carlton field in Alabama which were offset partially by a reduction in
crude oil prices from $17.88 per barrel to $14.56 per barrel.
Total operating expenses for the year ended July 31, 1994 were $11,880,094
compared to $11,934,000 for the same period a year earlier. Lease operating
expense increased two percent to $4,840,000 compared to the prior year primarily
as a result of the acquisition of oil and gas properties from Swift Energy,
while expenses from marketing operations were up $476,410 due to increased
marketing efforts on the South Carlton field.
Depreciation, depletion and amortization expense in fiscal 1994 decreased
to $2,213,823 from $2,899,459 for the comparable period a year ago due to
significant downward revisions of oil and gas reserves in July 1993 for the
Wheat field in Loving County, Texas and the Flora field wells in Madison County,
Mississippi. Both of these properties were sold during the fiscal year with the
Company recording significant gains on sale.
General and Administrative expenses for the year ended July 31, 1994 were
$2,496,567 compared to $2,560,000 for the prior period. These expenses are
within 1% of the previous year's results reflecting the Company's commitment to
control overhead.
The Company had an after-tax net loss from continuing operations for the
year ended July 31, 1994 of $423,341 ($0.02 per common share) compared to a net
loss of $190,147 ($0.01 per common share) for the same period a year ago. The
Company wrote off its $222,918 investment in its Phoenix Metals, Inc. subsidiary
during fiscal 1994. To date this subsidiary has been unable to obtain financing
to initiate operations. The Company's equity in the net losses of its
unconsolidated affiliates was $216,998 during the current fiscal year, with
$174,050 of the losses attributable to Wexford Technology, Incorporated, a
start-up company engaged in the crude oil tank bottoms business. See "Item 1.
Business and Item 2. Properties -- Other Business."
The Company recognized gains on the sale of assets of $392,592, primarily
from the sale of non-strategic oil and gas assets during the fiscal year ended
July 31, 1994, a reduction of $470,888 from the previous fiscal year which
included the settlement of a natural gas contract in that period.
The net loss of the Company for the year ended July 31, 1994 was $423,341
($0.02 per common share) compared to net income of $906,839 ($0.06 per common
share) for the previous year. The decrease in net income is a result of a
$1,882,685 net gain (after income taxes) resulting primarily from the sale of a
gas purchasing contract in the prior period in addition to the write off of
Phoenix Metals and the
30
<PAGE>
Company's share of the losses of the unconsolidated affiliates.
Capital Resources and Liquidity
The Company's capital requirements relate primarily to the acquisition of
developed oil and gas properties and undeveloped leasehold acreage and
exploration and development activities. In general, because the Company's oil
and gas reserves are depleted by production, the success of its business
strategy is dependent upon a continuous acquisition and exploration and
development program.
Historically, the Company's operating needs and capital expenditures have
been funded by borrowings under its bank credit facilities and cash flow from
operations. As a result of significant capital expenditures since 1991, the
Company has experienced a decrease in its short-term liquidity and a decline in
its working capital. In connection with the Company's acquisition of Germany
Oil in April 1995, the Company's new credit facility provided a source of long-
term financing. As a result of the Germany Oil acquisition, the Company assumed
approximately $4.3 million in liabilities and accounts payable which created a
significant working capital deficit. The Company immediately began a program
designed to reduce these liabilities through negotiated reductions in amounts
owed and term payments out of the Company's cash flow. At July 31, 1996, the
Company had current assets of $4.2 million and current liabilities of $32.6
million which resulted in negative working capital of $28.4 million. This
compares to the Company's current assets of $4.2 million and current liabilities
of $11.3 million, which resulted in negative working capital of $7.1 million, at
July 31, 1995. The increase in the Company's working capital deficit during
fiscal 1996 is primarily due to the current liability classification at July 31,
1996 of all indebtedness of the Company to its principal bank (see "Financing
Arrangements"), additional litigation costs principally resulting from
discontinued operations of $1.8 million, and increases in royalty and vendor
payables in the amount of $1.8 million resulting from the Company's inability to
fund its current obligations due primarily to product hedging losses of $1.5
million. These amounts were partially offset by an increase in oil and gas
receivables resulting from higher product prices of approximately $500,000. The
long-term portion of the Company's debt to its principal bank was $20.6 million
at July 31, 1995. At July 31, 1994, the long-term portion of the Company's debt
to its principal bank was $4.5 million and negative working capital was $1.11
million. The decline in the Company's working capital during the last two years
is primarily the result of the Company's assumption of approximately $4.3
million of indebtedness associated with the acquisition of Germany Oil and the
continued funding of its international operations and two unconsolidated
affiliates. Subject to the availability of capital, the Company intends to
continue to pursue its program to achieve an orderly liquidation of the Germany
Oil indebtedness. There can be no assurance that, without an infusion of
additional debt or equity capital, the Company will be able to timely liquidate
these liabilities. As part of the Company's effort to reduce its working
capital shortage, the Company has entered into the proposed merger transaction
with Alliance Resources Plc. See "Item 1. Business and Item 2. Properties -
Proposed Merger with Alliance Resources Plc."
For the year ended July 31, 1996, the Company's operating activities
resulted in positive cash flow of $3,359,885 compared to a positive cash flow of
$1,742,623 for the year ended July 31, 1995. The improvement in cash flow is
due to additional cash provided by operating activities through increased
accounts payable and additional depreciation depletion and amortization. For
the year ended July 31, 1994, the Company's operating activities resulted in a
positive cash flow of $951,001 compared to providing deficit cash flow of
$2,596,354 for the year ended July 31, 1993.
Investing activities of the Company used $206,426 in net cash flow for the
year ended July 31, 1996 to fund the Company's oil and gas activities.
Investing activities of the Company used $16,750,182 in net cash flow for the
year ended July 31, 1995 compared to using $3,551,072 in net cash flow for the
year ended July 31, 1994. The increase in investing activities in fiscal 1995
was primarily due to the drilling of the first exploration well on the Company's
Tunisian prospect. Investing activities of the Company used $3,588,429 in net
cash flow for the year ended July 31, 1993. The decrease in cash flow used in
investing activities during fiscal 1994 compared to fiscal 1993 was a result of
a reduced number of oil and gas property acquisitions by the Company.
Financing activities used $3,448,351 in net cash flow for the year ended
July 31, 1996 compared to $15,113,389 provided in net cash flow for the year
ended July 31, 1995 and $1,665,499 provided for the year ended July 31, 1994.
The increase during fiscal 1996 was a result of the monthly amortization of the
31
<PAGE>
Company's indebtedness to its principal bank and additional debt reduction upon
the sale of oil and gas properties. The increase in fiscal 1995 compared to
fiscal 1994 was a result of the Company's new credit facility with Bank of
America associated with the Company's acquisition of Germany Oil Company in
April 1995. As a result of the Company's default under certain provisions of
its credit facility with Bank of America, the Company does not currently
anticipate being able to increase its level of borrowing under such credit
facility.
The domestic spot price for crude oil has ranged from $11.00 to $40.00 per
barrel over the past ten years. To the extent that crude oil prices continue
fluctuating in this manner, the Company expects material fluctuations in
revenues from quarter to quarter which, in turn, could adversely affect the
Company's ability to timely service its debt to its principal bank and fund its
ongoing operations and could, under certain circumstances, require a write-down
of the book value of the Company's oil and gas reserves.
Since the Company is engaged in the business of acquiring producing oil and
gas properties, from time to time it acquires certain non-strategic and marginal
properties in some of its purchases. A portion of the Company's on-going
profitability is related to the disposition of these non-strategic properties on
a regular basis. The Company expects to continue to pursue sales of these
types of properties in the future. In most cases the revenue from these
properties is insignificant and in many cases does not exceed the lease
operating expense. As a result, a portion of the Company's capital resources
are generated by the sale of assets from continuing operations. Sales of non-
strategic and minor interests oil and gas properties accounted for $2,365,807 in
gains during fiscal 1996, $127,248 in gains during fiscal 1995, and $565,932 in
gains during fiscal 1994. The Company expects to pursue a more aggressive
policy of disposition of oil and gas properties in fiscal 1997. Additionally,
the Company incurred a loss in fiscal 1994 of $173,340 on the disposition of the
40,000 shares of Electric & Gas Technology, Inc. common stock acquired in 1991.
Capital Expenditures. The timing of most of the Company's capital
--------------------
expenditures is discretionary. Currently there are no material long-term
commitments associated with the Company's capital expenditure plans.
Consequently, the Company has a significant degree of flexibility to adjust the
level of such expenditures as circumstances warrant. The Company primarily uses
internally generated cash flow and proceeds from the sale of oil and gas
properties to fund capital expenditures, other than significant acquisitions,
and to fund its working capital deficit. If the Company's internally generated
cash flows should be insufficient to meet its debt service or other obligations,
the Company may reduce the level of discretionary capital expenditures or
increase the sale of non-strategic oil and gas properties in order to meet such
obligations. The level of the Company's capital expenditures will vary in
future periods depending on energy market conditions and other related economic
factors. The Company anticipates that its cash flow will not be sufficient to
fund its domestic operations and debt service at their current levels for the
next year. As a result, the Company anticipates that it will be necessary to
increase the level of sales of the Company's oil and gas properties or seek
additional equity capital, of which there can be no assurance. The Company's
proposed merger with Alliance Resources Plc, if completed, would be a source of
such equity capital. See "Item 1. Business and Item 2. Properties - Proposed
Merger with Alliance Resources Plc."
Substantially all of the Company's capital expenditures over its recent
history have been made to acquire oil and gas properties. During fiscal 1993,
1994, 1995 and 1996, the Company made a number of significant acquisitions of
oil and gas properties. During the year ended July 31, 1993, the Company
completed two acquisitions of oil and gas properties for a cost of approximately
$3,013,000. During the year ended July 31, 1994, the Company completed one
acquisition of oil and gas properties for a cost of approximately $1,740,000.
During the year ended July 31, 1995 the Company completed the acquisition of
Germany Oil for a cost of approximately $18.1 million. Subsequent to July 31,
1995, the Company participated with Oakland Petroleum Operating Company in the
acquisition of producing oil and gas properties from Sackett Oil Company and The
Prudential Insurance Company of America for a total purchase price of
$5,850,000, less adjustments. The properties are located in Texas, Louisiana
and California. Of the total purchase price, the Company paid $2,885,320 for
the properties located in Texas and Louisiana. The Company provided Oakland a
loan in the principal amount of $2,300,000 to finance Oakland's purchase of the
properties. This acquisition was funded through additional borrowings under the
Company's principal credit facility. The Company's strategy is to continue to
expand its reserve base
32
<PAGE>
principally through acquisitions of producing oil and gas properties. As a
result, it is likely that capital expenditures will exceed cash provided by
operating activities in years where significant growth occurs in the Company's
oil and gas reserve base. In such cases, additional external financing is likely
to be required.
The Company intends to continue its practice of reserve replacement and
growth through the acquisition of producing oil and gas properties, although at
this time it is unable to predict the number and size of such acquisitions, if
any, which will be completed. The Company's ability to finance its oil and gas
acquisitions is determined by its cash flow from operations and available
sources of debt and equity financing. Exclusive of potential acquisitions and
subject to the availability of capital, the Company presently anticipates
capital expenditures in fiscal 1997 of approximately $800,000 for oil and gas
property enhancement activities.
Financing Arrangements. Since July 31, 1991, the Company has made 12
----------------------
acquisitions of oil and gas properties. These acquisitions have been financed
primarily through borrowings under the Company's bank credit facilities and
through internal cash flow. The Company's acquisition of Germany Oil Company,
including the cash portion of the purchase price paid by the Company for the
volumetric production payments and overriding interests acquired from ENPRO
Reserve Acquisition Corp. and the cash portion of the consideration paid by the
Company pursuant to the exchange offer, were financed through borrowings by the
Company under a credit facility pursuant to a Credit Agreement dated as of March
31, 1995 (the "Credit Agreement") between Bank of America, NT and SA ("Bank")
and the Company's wholly-owned subsidiaries, LaTex Petroleum, Germany Oil and
LaTex/GOC Acquisition ("Borrowers"). In addition, under the credit facility the
Company and the Borrowers refinanced the Company's then existing indebtedness to
the Company's former principal lender. The Company and its wholly-owned
subsidiary, ENPRO, have guaranteed the obligations of the Borrowers under the
Credit Agreement.
Under the Credit Agreement, the Bank agreed to make loans to the Borrowers
(i) in the amount of $23,000,000 (the "Acquisition Loan") for the purposes of
refinancing the Borrower's then existing indebtedness, partially funding the
acquisition of Germany Oil Company and for working capital, and (ii) in the
amount of $2,000,000 (the "Development Loan") for additional approved
development drilling, workover or recompletion work on oil and gas properties
mortgaged by the Borrowers to the Bank as security for the loans under the
Credit Agreement. On July 31, 1996, the outstanding balance of the loans was
$22,206,707.
Advances under the Credit Agreement maintained from time to time as a "Base
Rate Loan" bear interest, payable monthly, at a fluctuating rate equal to the
higher of (i) the rate of interest announced from time to time by the Bank as
its "reference rate", plus 1%, or (ii) the "Federal Funds Rate" (as defined in
the Credit Agreement) plus 1 1/2%. Advances under the Credit Agreement
maintained from time to time as a "LIBO Rate Loan" bear interest, payable on the
last day of each applicable interest period (as defined in the Credit
Agreement), at a fluctuating rate equal to the LIBO Rate (Reserve Adjusted) (as
defined in the Credit Agreement) plus 2%. As of July 31, 1996, all advances to
the Company under the Credit Agreement are maintained as LIBO Rate Loans which
currently bear interest at the annual rate of 7.5%.
Principal on any loans under the Credit Agreement is currently repayable in
monthly installments of $322,500 (net of Oakland Petroleum's monthly principal
payment of $42,500) plus an additional payment equal to the positive difference,
if any, between the net proceeds from Borrower's oil and gas production (as
defined in the Credit Agreement) times a variable dedicated percentage (as
defined in the Credit Agreement) and the minimum monthly payment. All unpaid
principal and accrued interest under the Credit Agreement is due March 31, 2000.
The Company's indebtedness to the Bank under the Credit Agreement is
secured by mortgages on all of the Company's producing oil and gas properties
and pledges of the stock of the Company's subsidiaries, LaTex Petroleum, Germany
Oil Company, LaTex/GOC Acquisition and ENPRO. On a semi-annual basis, the value
of the oil and gas properties securing loans under the Credit Agreement is
redetermined by the Bank based upon its review of the Company's oil and gas
reserves. To the extent that the aggregate principal amount of all loans under
the Credit Agreement exceeds the collateral value
33
<PAGE>
as determined by the Bank, the Company must either pay the Bank an amount
sufficient to eliminate such excess, or provide additional oil and gas
properties as security for the loans having a value satisfactory to the Bank.
Under the Credit Agreement, the Company has also granted an affiliate of
the Bank an overriding royalty interest in all of the Company's existing
producing oil and gas properties, other than those situated in the State of
Oklahoma (the "Bank ORRI"). The Bank ORRI is 6.3% of Company's net revenue
interest in each property. The Bank is not entitled to the Bank ORRI on any
property acquired after closing of the financing. On the later to occur of (i)
March 31, 1998 or (ii) at such time as the Bank has received a 15% internal rate
of return on the $25,000,000 commitment amount under the Credit Agreement, the
Bank ORRI will be adjusted downward to 2.1%.
As a condition to the Bank making the loans under the Credit Agreement, the
Company's subsidiary, LaTex Petroleum, has entered into hedging agreements
designed to enable the Company to obtain agreed upon net realized prices for the
Company's oil and gas production and designed to protect the Company against
fluctuations in interest rates with respect to the principal amounts of all
loans under the Credit Agreement. Under the current hedging arrangements with
the Bank, the Company pre-sold certain volumes of its gas production for a three
year period beginning April 1, 1995 at a fixed price of $1.806 per MMBTU. The
dedicated annual volumes for gas average 2,605,384 MMcf in fiscal 1996,
1,948,592 MMcf in fiscal 1997 and 1,115,296 MMcf in fiscal 1998. In addition,
the Company placed a price "collar" on certain volumes of its oil production
between $16.50 per barrel and $19.82 per barrel. The dedicated annual volumes
for oil average 324,288 Bbls in fiscal 1996, 279,828 Bbls in fiscal 1997 and
170,344 Bbls in fiscal 1998. Interest rate protection was provided based on an
interest rate swap at 7.47%. The effect of these hedging arrangements has been
to reduce the Company's working capital in fiscal 1996 by $1,979,956 as a result
of additional payments to the Bank above scheduled principal and interest
payments. At July 31, 1996, the future impact of the hedging agreements are
anticipated to result in additional losses of $3,649,287 based upon the
prevailing commodity prices and interest rate at that time. See "Inflation and
Pricing" and Note 15 to the Company's consolidated financial statements at
Item 8.
The Credit Agreement contains affirmative and negative covenants which
impose certain restrictions and requirements on the Company, including:
limitations on the amount of additional indebtedness the Company may incur;
prohibition against payment by the Company of cash dividends; requirements that
the Company maintains a current ratio (current assets to current liabilities) of
at least 1.0 to 1.0, tangible net worth of at least $5.0 million, no less than
$500,000 in cash equivalent investments on hand at any given time, and no less
than $500,000 in working capital; limitations on the ability of the Company to
sell assets or to merge or consolidate with or into any other person; and
requirements that the Company maintain a consolidated current ratio of at least
1.0 to 1.0 and consolidated tangible net worth of at least $10 million.
During the year ended July 31, 1996, the Company was in violation of
various provisions of the Credit Agreement. The Company has acknowledged to the
Bank these events of default and, pursuant to a Forbearance Agreement between
the Company and the Bank dated July 23, 1996, as amended, the Bank agreed to
delay enforcement of its rights under the Credit Agreement and related loan
documents as a result of these events of default until the earlier of November
29, 1996, the occurrence of any default by the Company under the terms of
Forbearance Agreement, the occurrence of any additional default by the Company
under the Credit Agreement, or the Company's cure of the defaults. The Bank has
indicated its willingness to further amend the Forbearance Agreement to extend
its agreement to forbear any action on the Company's default through February
28, 1997. Under the terms of the Forbearance Agreement, the Company agreed to
(a) obtain promissory notes from Imperial Petroleum, Inc. ("Imperial"), Wexford
Technology, Inc. ("Wexford"), and LaTex Resources International evidencing their
indebtedness to the Company at August 16, 1996 in the amounts of $677,705,
$1,372,799 and $3,363,000, respectively, (b) obtain from Imperial a lien on and
security interest in certain of Imperial's assets (subject to existing perfected
liens and security interests) to secure Imperial's indebtedness to the Company,
and (c) pay all unpaid overriding royalties due LaSalle Street National
Resources Corporation in three monthly installments, beginning August 1, 1996,
with interest at the Bank's prime rate plus two percent.
In addition, in accordance with the requirements of the Forbearance
Agreement, the Company and Bank entered into Amendment No. 2 to Amended and
Restated Credit Agreement dated as of August 16,
34
<PAGE>
1996 ("Amendment No. 2") pursuant to which each of the Borrowers and Guarantors
under the Credit Agreement granted Bank a security interest in substantially all
of their assets which had not otherwise been previously pledged to the Bank
under the Credit Agreement. In addition, the Company granted to the Bank a
security interest in the indebtedness owed to the Company by Imperial, Wexford
and LaTex, together with a security interest in the collateral pledged to the
Company by Imperial to secure Imperial's indebtedness to the Company, which
consists primarily of unpatented mining claims in the states of Arizona and
Montana. In addition, the Company granted the Bank a security interest in the
shares of common stock Wexford and Imperial owned by the Company.
The Company has dedicated a significant portion of its available revenues
and cash flows to remaining current in its payment obligations to the Bank. In
addition, proceeds from sales of oil and gas properties by the Company have been
used to further reduce the Company's indebtedness to the Bank, with only limited
amounts of such proceeds being made available to fund the Company's working
capital needs. As a result, the Company continues to fall further behind in
making required payments to royalty owners and vendors. The effect of the
continuation of this policy, over the long term, will be to increase the
Company's accounts payable while reducing its debt to the Bank. Because the
level of required payments to the Bank remains constant over the term of the
Credit Agreement, the rate at which the Company's accounts payable deficit
increases will become greater with time and, ultimately may jeopardize certain
of the Company's oil and gas leases.
The Company believes that its cash flow from operations will be
insufficient to meet its anticipated capital requirements for the foreseeable
future. As a result, the Company will be required to increase the level of
sales of its oil and gas properties, seek additional equity capital, or
restructure its existing Credit Agreement with the Bank, none of which can be
assured. However, because future cash flows and the availability of debt or
equity financing are subject to a number of variables, such as the level of
production and the prices of oil and gas, there can be no assurance that the
Company's capital resources will be sufficient to maintain current operations or
planned levels of capital expenditures.
Proposed Merger With Alliance Resources Plc
As a result of the demands placed upon the Company by the Bank, the
Company's continuing working capital deficit, its deteriorating financial
condition and inability of the Company to raise additional debt or equity
capital, management of the Company, in the fourth quarter of fiscal 1996,
determined to seek an equity infusion through a strategic merger with a suitable
merger candidate. Management's primary objective in seeking a merger partner
was to solve the working capital deficit of the Company through an equity
infusion while minimizing dilution to the shareholders. Although the Company
considered several potential transactions, Alliance Resources Plc ("Alliance")
emerged as the candidate most likely to meet the objectives of the Company.
Subsequent to year end the Company agreed, subject to shareholder approval and
satisfaction of certain other conditions, to enter into an agreement pursuant to
which the Company will merge with Alliance. It is anticipated that the merger
will provide the Company with sufficient capital resources to eliminate its
existing working capital deficit, refinance the Company's senior debt and
eliminate the hedging agreements, and provide development capital for
exploration of the Company's oil and gas properties. In addition, the Company
believes that the combination of the two companies provides strategic benefits
to the Company important to its long term growth and the enhancement of
shareholder value. Although Alliance's domestic oil and gas operations are
significantly smaller than the Company's, the Company believes that the merger
will enhance the overall financial strength of the Company and provide a stable
platform from which future growth can be achieved. The strategic objectives of
the combined Company will be to continue a policy of structured and stable
growth in the domestic U.S. oil and gas sector while implementing projects in
Western Europe, the Middle East and the former Soviet Union.
As a result of the refocus of the Company on its core oil and gas
operations and under the terms of the merger agreement with Alliance, the
Company has agreed to dispose of its interests in Wexford Technology, Inc.,
Imperial Petroleum, Inc., LaTex Resources International, Inc. and Phoenix
Metals, Inc. Despite attempts by management to locate potential purchasers for
these business interests, the financial condition of these entities and
additional capital requirements to achieve stable operations and cash flow have
been significant impediments to their sale. As a result, Imperial Petroleum,
Inc., an affiliate of the Company, has agreed to acquire the Company's interest
in these companies for 100,000 shares of the
35
<PAGE>
Company's common stock. Imperial is controlled by the Company's President and
largest stockholder, Jeffrey T. Wilson. Mr. Wilson will contribute to Imperial
the 100,000 shares of the Company's common stock to be used by Imperial in
acquiring the Company's interest in these companies. Prior to the completion of
the sale, the Company will obtain an opinion from an independent investment
banking firm as to the fairness of the transaction to its stockholders. See
"Item 1. Business and Item 2. Properties --Proposed Merger with Alliance
Resources Plc."
Seasonality
The results of operations of the Company are somewhat seasonal due to
seasonal fluctuations in the price for crude oil and natural gas. Recently,
crude oil prices have been generally higher in the third calendar quarter and
natural gas prices have been generally higher in the first calendar quarter.
Due to these seasonal fluctuations, results of operations for individual
quarterly periods may not be indicative of results which may be realized on an
annual basis.
Inflation and Prices
In recent years, inflation has not had a significant impact on the
Company's operations or financial condition. The generally downward pressure on
oil and gas prices during most of such periods has been accompanied by a
corresponding downward pressure on costs incurred to acquire, develop and
operate oil and gas properties as well as the costs of drilling and completing
wells on properties.
In connection with the execution of the Credit Agreement with the Bank, the
company has entered into a crude oil and natural gas hedging arrangement
designed to enable the Company to receive a net realized price of not less than
$1.81 per MMBtu of natural gas and $16.50 per barrel of crude oil on sale of the
volumes of crude oil and natural gas set forth in the Credit Agreement.
Prices obtained for oil and gas production depend upon numerous factors
that are beyond the control of the Company, including the extent of domestic and
foreign production, imports of foreign oil, market demand, domestic and world-
wide economic and political conditions, and government regulations and tax laws.
Prices for both oil and gas have fluctuated significantly in 1996 and 1995. The
following table sets forth the average price received by the Company for each of
the last two years and the effects of the hedging arrangement described below.
<TABLE>
Oil Oil Gas Gas
(excluding the (including the (excluding the (including the
effects of effects of effects of effects of
Year Ended hedging hedging hedging hedging
July 31 transactions) transactions) transactions) transactions)
- ------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1996 $ 15.73 $ 15.24 $ 2.03 $ 1.67
1995 $ 12.86 $ 12.86 $ 1.48 $ 1.48
</TABLE>
The Company has entered into a master agreement to hedge the price of its
oil and natural gas. The purpose of the hedging arrangement is to provide
protection against price drops and to produce a measure of stability in the
volatile environment of oil and natural gas spot pricing. With respect to the
losses incurred by the Company as a result of this hedging arrangement, see
"Capital Resources and Liquidity -- Financing Arrangements". The following
table provides a summary of the Company's financial contracts.
36
<PAGE>
<TABLE>
<CAPTION>
Gas
- ------------------------------------------------------------
Contract
Percent of Direct Floor Price
Period Production Hedged (per mcf)
- ------------------- ------------------ ------------
<S> <C> <C>
08/01/96-07/31/97 79% $16.50
08/01/97-03/27/98 75% $16.50
<CAPTION>
Oil
- ------------------------------------------------------------
Contract
Percent of Direct Floor Price
Period Production Hedged (per mcf)
- ------------------- ----------------- ------------
<S> <C> <C>
08/01/96-07/31/97 71% $ 1.81
08/01/97-03/27/98 68% $ 1.81
</TABLE>
In addition, the Company has entered into interest rate hedging agreements
designed to protect the Company against fluctuations in interest rates with
respect to its indebtedness to the Bank under the Credit Agreement.
Item 8. Financial Statements and Supplementary Data.
Audited Financial Statements of LaTex Resources, Inc.
<TABLE>
Page
----
<S> <C>
Independent Auditor's Report............................................ F-1
Consolidated Balance Sheets as of July 31, 1996 and 1995................ F-3
Consolidated Statements of Operations for the years ended
July 31, 1996, 1995 and 1994;....................................... F-4
Consolidated Statements of Stockholders' Equity for the years
ended July 31, 1996, 1995 and 1994;................................. F-5
Consolidated Statements of Cash Flows for the years ended July 31,
1996, 1995
and 1994;........................................................... F-6
Notes to Consolidated Financial Statements.............................. F-8
</TABLE>
37
<PAGE>
INDEPENDENT AUDITORS' REPORT
----------------------------
Board of Directors
LaTex Resources, Inc.
Tulsa, Oklahoma
We have audited the accompanying consolidated balance sheets of LaTex Resources,
Inc. and subsidiaries (the "Company") as of July 31, 1996 and 1995 and the
related consolidated statements of operations, stockholders' equity, and cash
flows for the years ended July 31, 1996, 1995, and 1994. 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 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, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the Company at
July 31, 1996 and 1995 and the results of the Company's operations and its cash
flows for the years ended July 31, 1996, 1995, and 1994, in conformity with
generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 1 to
the consolidated financial statements, the Company has incurred a significant
net loss for the year ended July 31, 1996 and has working capital deficiencies
and consolidated tangible net worth deficiencies. As discussed in Notes 1 and 5
to the consolidated financial statements, the Company was not in compliance with
certain financial covenants of its credit agreement with its primary lender at
July 31, 1996. These factors raise substantial doubt about the Company's
ability to continue as a going concern. Management's plans in regard to these
matters are also described in Note 1. The consolidated financial statements do
not include any adjustments that might result from the outcome of this
uncertainty and do not include any adjustments to the classification of assets
and liabilities that might result should the Company be unable to continue as a
going concern.
F-1
<PAGE>
As discussed in Note 16, the consolidated financial statements as of and for the
year ended July 31, 1995 have been restated to correct the accounting for the
acquisition of Germany Oil Company.
/s/ Briscoe & Burke
BRISCOE & BURKE
Certified Public Accountants
November 6, 1996 except as to
information presented in Notes 1
and 5, for which the date is
November 30, 1996
Tulsa, Oklahoma
F-2
<PAGE>
LaTex RESOURCES, INC.
Consolidated Balance Sheets
July 31, 1996 and 1995
<TABLE>
<CAPTION>
ASSETS 1996 1995
------------ -------------
(Restated)
<S> <C> <C>
Current assets:
Cash $ 19,337 $ 314,229
Accounts receivable - net of
allowance for doubtful
accounts of $0 in 1996
and $135,000 in 1995 3,324,309 2,836,596
Accounts and notes receivable -
other (Note 3) 515,820 696,688
Inventories 175,493 90,976
Other current assets 27,587 84,791
Assets held for sale 164,792 144,990
------------ ------------
Total current assets 4,227,338 4,168,270
------------ ------------
Property and equipment, at cost
Oil and gas properties (using
successful efforts method) 41,264,573 39,638,656
Exploration prospects in progress - 3,363,000
Other depreciable assets 854,259 954,415
------------ ------------
42,118,832 43,956,071
Accumulated depreciation and
depletion 10,173,524 6,247,190
------------ ------------
Net property and equipment 31,945,308 37,708,881
------------ ------------
Other assets:
Notes receivable, net of
current portion (Note 3) 757,500 -
Deposits and other assets 130,734 137,559
Accounts and notes receivable -
related parties (Note 3) 392,297 590,605
Investments in and advances
to affiliates (Note 3) - 3,647,480
Intangible assets, net of
amortization 1,512,899 1,670,384
------------ ------------
Total other assets 2,793,430 6,046,028
------------ ------------
TOTAL ASSETS $ 38,966,076 $ 47,923,179
============ ============
<CAPTION>
LIABILITIES and STOCKHOLDERS' EQUITY 1996 1995
------------ ------------
(Restated)
<S> <C> <C>
Current liabilities:
Accounts payable $ 9,057,707 $ 4,544,406
Accounts payable - other 747,000 2,959,284
Accrued expenses payable 607,055 139,113
Current portion of long-term debt
(Note 5) 22,235,867 3,644,723
------------ ------------
Total current liabilities 32,647,629 11,287,526
------------ ------------
Long-term debt, net of current portion
(Note 5) - 20,634,809
------------ ------------
Stockholders' equity
Preferred stock - par value $10.00;
5,000,000 shares authorized:
Series A convertible preferred stock,
451,095 and 442,281 issued and
outstanding, respectively 4,503,351 4,415,180
Series B convertible preferred stock,
479,345 and 381,100 issued and
outstanding, respectively (Note 10) 4,793,450 3,811,000
Common stock - par value $.01,
50,000,000 authorized; issued and
outstanding 19,123,995
18,880,195, respectively 191,240 188,802
Additional paid-in capital 9,067,631 8,931,424
Treasury stock 1,008,500 and 958,000
shares, respectively (489,365) (399,106)
Accumulated deficit (11,747,860) (946,456)
------------ ------------
Total stockholders' equity 6,318,447 16,000,844
------------ ------------
Commitments and contingencies (Note 11)
TOTAL LIABILITIES and
STOCKHOLDERS' EQUITY $ 38,966,076 $ 47,923,179
============ ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
F-3
<PAGE>
LaTex RESOURCES, INC.
Consolidated Statements of Operations
Years Ended July 31, 1996, 1995, and 1994
<TABLE>
<CAPTION>
1996 1995 1994
------------ ----------- -----------
(Restated)
<S> <C> <C> <C>
Revenues:
Oil and gas revenue (Note 15) $ 11,979,982 $ 8,585,453 $ 8,703,100
Crude oil and gas marketing 540,156 1,223,188 2,780,543
Lease operations and management fees 1,011,025 634,038 601,723
------------ ----------- -----------
Total operating income 13,531,163 10,442,679 12,085,366
------------ ----------- -----------
Operating expenses:
Lease operating expense 6,608,089 5,264,858 4,840,638
Cost of crude oil and gas marketing 133,455 743,610 2,216,294
Dry hole costs and abandonments (Note 6) 3,586,037 104,179 112,772
General and administrative 2,893,146 2,736,267 2,496,567
Depreciation, depletion, and amortization 4,705,912 2,710,574 2,213,823
------------ ----------- -----------
Total operating expense 17,926,639 11,559,488 11,880,094
------------ ----------- -----------
Net operating income (loss) (4,395,476) (1,116,809) 205,272
Other income (expense):
Equity in losses and write-offs of investments in affiliates (4,184,881) (298,839) (439,916)
Gain on sale of assets 2,365,807 127,926 392,592
Interest expense (Note 15) (2,410,158) (1,291,064) (598,335)
Interest income 204,307 122,540 17,046
------------ ----------- -----------
Net loss from continuing operations before income taxes (8,420,401) (2,456,246) (423,341)
Income tax expense - 35,096 -
------------ ----------- -----------
Net loss from continuing operations (8,420,401) (2,491,342) (423,341)
Loss on disposal of subsidiary, net of income taxes (Note 1) (1,810,382) - -
------------ ----------- -----------
Net loss (10,230,783) (2,491,342) (423,341)
Preferred stock dividends 570,621 132,800 -
------------ ----------- -----------
Net loss for common shareholders $(10,801,404) $(2,624,142) $ (423,341)
============ =========== ===========
Loss per share from continuing operations $ (.50) $ (.15) $ (.02)
============ =========== ===========
Loss per share for common shareholders $ (.60) $ (.15) $ (.02)
============ =========== ===========
Weighted average number of shares outstanding 18,011,826 17,661,428 17,434,159
============ =========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
F-4
<PAGE>
LaTex RESOURCES, INC.
Consolidated Statements of Stockholders' Equity
Years Ended July 31, 1996, 1995, and 1994
<TABLE>
<CAPTION>
Common Stock Additional
Preferred -------------------------- Paid-in Retained
Stock Shares Par Value Capital Earnings
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Balance July 31, 1993 $ - 16,345,195 $ 163,452 $ 6,226,613 $ 2,101,027
Issued for acquisition of stock of
Wexford Technology, Inc. (Note 6) - 100,000 1,000 330,350 -
Issued pursuant to private placement (Note 1) - 2,000,000 20,000 1,995,843 -
Issued for consulting services - 35,000 350 139,650 -
Net loss - - - - (423,341)
------------ ------------ ------------ ------------ ------------
Balance July 31, 1994 - 18,480,195 184,802 8,692,456 1,677,686
Issued for debt - 150,000 1,500 96,938 -
Issued for acquisition of
Germany Oil Company (Note 1) 8,093,380 250,000 2,500 142,030 -
Purchase of Treasury Stock - - - - -
Issued for dividends 132,800 - - - (132,800)
Net loss (Restated) - - - - (2,491,342)
------------ ------------ ------------ ------------ ------------
Balance July 31, 1995 (Restated) 8,226,180 18,880,195 188,802 8,931,424 (946,456)
------------ ------------ ------------ ------------ ------------
Issued for services - 100,000 1,000 77,125 -
Issued for debt of affiliate - 143,800 1,438 59,082 -
Issued for legal settlement (Note 11) 500,000 - - - -
Purchase of Treasury Stock - - - - -
Issued for dividends 570,621 - - - (570,621)
Net loss - - - - (10,230,783)
------------ ------------ ------------ ------------ ------------
Balance July 31, 1996 $ 9,296,801 $ 19,123,995 $ 191,240 $ 9,067,631 $(11,747,860)
============ ============ ============ ============ ============
<CAPTION>
Total
Treasury Stockholders'
Stock Equity
------------- --------------
<S> <C> <C>
Balance July 31, 1993 $ (275,000) $ 8,216,092
Issued for acquisition of stock of
Wexford Technology, Inc. (Note 6) - 331,350
Issued pursuant to private placement (Note 1)
Issued for consulting services - 2,015,843
Net loss - 140,000
- (423,341)
------------ ------------
Balance July 31, 1994 (275,000) 10,279,944
Issued for debt - 98,438
Issued for acquisition of
Germany Oil Company (Note 1) - 8,237,910
Purchase of Treasury Stock (124,106) (124,106)
Issued for dividends - -
Net loss (Restated) - (2,491,342)
------------ ------------
Balance July 31, 1995 (Restated) (399,106) 16,000,844
------------ ------------
Issued for services - 78,125
Issued for debt of affiliate - 60,520
Issued for legal settlement (Note 11) - 500,000
Purchase of Treasury Stock (90,259) (90,259)
Issued for dividends - -
Net loss - (10,230,783)
------------ ------------
Balance July 31, 1996 $ (489,365) $ 6,318,447
============ ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
F-5
<PAGE>
LaTex RESOURCES, INC.
Consolidated Statements of Cash Flows
Years Ended July 31, 1996, 1995, and 1994
<TABLE>
<CAPTION>
1996 1995 1994
------------ ------------ ------------
(Restated)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(10,230,783) $ (2,491,342) $ (423,341)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation, amortization, and depletion 4,705,912 2,710,574 2,213,823
Gain on sale of assets (2,365,807) (127,926) (392,592)
Equity in losses and write-offs of investments in affilates 4,184,881 298,839 439,916
Dry hole costs and abandonments 3,586,037 104,179 112,772
Interest income (150,467) (64,231) -
Loss on disposal of subsidiary 1,810,382 - -
Changes in assets and liabilities, net of effects from acquisition:
Accounts receivable (17,248) 1,073,004 787,602
Accounts receivable - related party 198,288 (76,591) 82,208
Accrued expenses payable 467,942 (34,017) (363,271)
Accounts payable 1,211,038 390,146 (1,518,425)
Other assets 44,227 (170,979) (127,334)
Inventories (84,517) 130,967 139,643
------------ ------------ ------------
Net cash provided by operating activities 3,359,885 1,742,623 951,001
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments - - 136,218
Proceeds from sale of property and equipment 3,984,491 357,445 736,200
Purchases of property and equipment (3,774,264) (4,815,409) (4,257,229)
Reorganization cost - - (66,558)
Acquisition of Germany Oil Company, net of cash acquired - (10,592,292) -
Advances to unconsolidated affiliates and notes receivable (326,394) (1,575,820) (99,703)
Purchases of Treasury stock (90,259) (124,106) -
------------ ------------ ------------
Net cash used for investing activities $ (206,426) $(16,750,182) $ (3,551,072)
------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
F-6
<PAGE>
LaTex RESOURCES, INC.
Consolidated Statements of Cash Flows
Years Ended July 31, 1996, 1995, and 1994
<TABLE>
<CAPTION>
1996 1995 1994
----------- ----------- -----------
(Restated)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred loan costs $ (137,186) $(1,483,143) $ (15,344)
Proceeds from notes payable 9,933,192 26,837,059 2,585,000
Payments on notes payable (7,244,357) (10,100,527) (3,060,000)
Proceeds from notes payable - shareholder - - 490,000
Payments on notes payable - shareholder - (140,000) (350,000)
Proceeds from the issuance of common stock - - 2,015,843
----------- ----------- -----------
Net cash provided by (used for) by financing activities (3,448,351) 15,113,389 1,665,499
----------- ----------- -----------
Net increase (decrease) in cash and cash equivalents (294,892) 105,830 (934,572)
Cash and cash equivalents beginning of year 314,229 208,399 1,142,971
----------- ----------- -----------
Cash and cash equivalents end of year $ 19,337 $ 314,229 $ 208,399
=========== =========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 2,403,158 $ 1,307,264 $ 598,335
Income taxes 5,275 7,739 200,648
=========== =========== ===========
Supplemental schedules of noncash investing and financing activities:
Note receivable in exchange for property $ - $ - $ 1,342,506
Common stock issued to acquire stock of Wexford Technology, Inc. - - 331,350
Common stock issued for services 78,125 98,438 140,000
Common stock issued to acquire Germany Oil Company - 144,530 -
Preferred stock issued to acquire Germany Oil Company - 8,093,380 -
Preferred stock issued for legal settlement 500,000 - -
Common stock issued to pay off debt of unconsolidated affiliate 60,520 - -
Increase in bank borrowings and advances on notes receivable 2,300,000 - -
Reduction of bank borrowings and notes receivable 1,267,500 - -
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
F-7
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
1. ORGANIZATION, FINANCIAL CONDITION AND BUSINESS COMBINATIONS
Organization - LaTex Resources, Inc. (the Company) is an oil and gas
------------
company engaged in the acquisition of and enhancements to producing oil and
gas properties. The Company's principal oil and gas production operations
are conducted in Oklahoma, Texas, Louisiana, Mississippi and Alabama. The
Company, until the fourth quarter of fiscal 1996, was also involved in the
exploration and development of oil and gas prospects located in Tunisia and
Kazakhstan, C. I. S.
Financial Condition - The Company's aggressive policy of oil and gas
-------------------
property acquisitions, unsuccessful foreign oil and gas exploration and
unsuccessful investments in their unconsolidated affiliates, along with
substantial operating losses for the current and preceding two years, has
resulted in a working capital deficit and non-compliance with certain loan
covenants at July 31, 1996. (See Note 5)
The items of non-compliance have not been waived by the lender for the year
ended July 31, 1996 and the Company was operating under a "forbearance"
agreement. The "forbearance period" was from July 26, 1996 to November 29,
1996. The Company is currently seeking an extension of the forbearance
agreement until such time as the proposed Alliance Resources Plc merger
(See Note 17) can be consummated.
The Company's financial statements for the year ended July 31, 1996 have
been prepared on a going concern basis which contemplates the realization
of assets and the settlement of liabilities and commitments in the normal
course of business. The Company incurred a net loss of $10,230,783 for the
year ended July 31, 1996 and as of July 31, 1996 has an accumulated deficit
of $11,747,860 and a deficit working capital of $10,564,424.
The Company expects to incur substantial expenditures to develop its
undeveloped reserves and acquire additional producing oil and gas
properties, however, without raising additional capital the Company will be
unable to achieve its business objective or reduce its working capital
deficit. Management plans for raising additional capital include
consideration of alliances or other partnership arrangements or potential
merger opportunities.
The Company has retained investment banking counsel to advise it on the
possible sale of equity securities as well as to introduce and assist in
the evaluation of potential merger and partnering opportunities. Management
expects that these efforts will result in the introduction of other parties
with interests and resources which may be compatible with that of the
Company. See Note 17 regarding proposed transaction with Alliance Resources
Plc. No assurances can be given that the Company will be successful in
raising additional capital or consummating a business alliance. Further,
there can be no assurance assuming the Company successfully raises
additional funds or enters into a business alliance, that the Company will
achieve profitability or positive cash flow.
F-8
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
1. ORGANIZATION, FINANCIAL CONDITION AND BUSINESS COMBINATIONS (continued)
Disposition of Panda Resources, Inc. and Its Wholly Owned Subsidiary
--------------------------------------------------------------------
Richfield Natural Gas, Inc., July 1993
--------------------------------------
In July 1993 the Company sold its wholly owned subsidiary, Panda Resources,
Inc., and Panda's wholly owned subsidiary, Richfield Natural Gas, Inc.
Final post closing adjustments were in dispute until December 1995 when a
settlement agreement by the various parties resulted in a judgment against
LaTex Resources, Inc. in the amount of $1,810,382. This amount is reflected
in the 1996 consolidated financial statement as a loss on disposal of
discontinued subsidiaries.
Proceeds from Private Placement
-------------------------------
On January 26, 1994, pursuant to a private placement, the Company issued
2,000,000 newly issued shares of common stock.
Proceeds from this offering were as follows:
<TABLE>
<S> <C>
Gross proceeds $ 2,200,061
Less: Commissions 165,000
Legal fees 10,000
Other expenses 9,218
------------
Net proceeds $ 2,015,843
============
</TABLE>
Acquisition of Germany Oil Company
----------------------------------
Effective March 31, 1995 through a series of transactions, the Company
acquired all of the issued and outstanding stock of Germany Oil Company
("Germany") in exchange for 250,000 and 11,800 of the Company's common and
Series A Convertible Preferred Stock, respectively. The ratio of the number
of shares received by the stockholders of Germany was determined through
arms length negotiations between the Chairman of the Board and President of
the Company and the President of Germany. The Company also issued 370,000
shares of the Series B Convertible Preferred Stock and $8,900,000 in cash
to retire a volumetric production payment and acquire all of the related
contract rights mortgages, vendor liens and security interests. In
addition, the Company paid $1,742,294 in cash, issued 482,201 shares of its
Series A Convertible Preferred Stock and $87,998 in notes payable to
acquire and retire certain indebtedness of Germany. The transaction was
accounted for as a purchase. The fair value of assets and liabilities of
Germany at date of acquisition follows:
<TABLE>
<S> <C>
Current assets $ 773,088
Current liabilities (4,309,479)
Oil and gas properties 22,504,593
-------------
$ 18,968,202
=============
</TABLE>
F-9
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
2. SUMMARY OF ACCOUNTING POLICIES
A summary of the significant accounting policies consistently applied in
the preparation of the accompanying consolidated financial statements is as
follows.
Principles of Consolidation
---------------------------
The consolidated financial statements include the accounts of the Company
and its wholly owned subsidiaries. All significant intercompany accounts
have been eliminated in consolidation.
Inventories
-----------
Included in inventories at July 31, 1996 and 1995 are crude oil inventories
at market value of $175,493 and $90,976, respectively.
Accounting Estimates
--------------------
The presentation 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.
Financial Instruments
---------------------
The fair value of current assets and current liabilities are assumed to be
equal to their reported carrying amounts due to the short maturities of
these financial instruments. Due to the Company's financial position, it is
not practicable to estimate the fair value of the Company's long-term debt;
additional information pertinent to its value is provided in Note 5 to the
consolidated financial statements.
The Company is required, by agreement with its primary lender (Bank of
America), to participate in various hedging programs, executed by Bank of
America, to protect against fluctuations in oil gas prices and interest
rates. See Note 15 for discussion of the fair market value of these
contracts.
The carrying value of all other financial instruments approximates fair
value.
F-10
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
2. SUMMARY OF ACCOUNTING POLICIES (continued)
Concentrations of Credit Risk
-----------------------------
Financial instruments that potentially subject the Company to significant
concentrations of credit risk consist principally of cash investments and
accounts receivable. The Company places its cash investments with high
quality financial institutions and limits the amount of exposure to any one
institution. In the case of default of any one financial institution, no
cash investments exist that are not covered by the FDIC. The Company's
revenues are derived principally from uncollateralized sales to customers
in the oil and gas industry. The concentration of credit risk in a single
industry affects the Company's overall exposure to credit risk because
customers may be similarly affected by changes in economic and other
conditions. The Company has not experienced significant credit losses on
such receivables. The Company performs periodic evaluations of its
customers' financial condition and generally does not require collateral.
Revenue Recognition
-------------------
The Company recognizes oil and gas production and gas marketing revenue in
the month of sale. Uncollected revenue is accrued based on known facts and
trends of the relevant oil and gas properties on a monthly basis.
Property, Equipment, Depreciation and Depletion
-----------------------------------------------
The Company uses the successful efforts method to account for costs in the
acquisition and exploration of oil and natural gas reserves. Costs to
acquire mineral interests in proved reserves, and to drill and equip
development wells are capitalized. Geological and geophysical costs and
costs to drill exploratory wells which do not find proved reserves are
expensed. Undeveloped oil and gas properties which are individually
significant are periodically assessed for impairment of value and a loss is
recognized at the time of impairment by providing an impairment allowance.
The remaining unproved oil and gas properties are aggregated and an overall
impairment allowance is provided based on Company experience. Depletion and
depreciation are calculated on the units of production method based upon
current estimates of oil and gas reserves provided by management.
Non oil and gas property and equipment are stated at cost. Depreciation is
computed by the straight-line method over the estimated useful lives of non
oil and gas assets. Expenditures which significantly increase values or
extend useful lives are capitalized. Expenditures for maintenance and
repairs are charged to expenses as incurred. Upon sale or retirement of
property and equipment, the cost and related accumulated depreciation and
depletion are eliminated from the respective accounts and the resulting
gain or loss is included in current earnings.
Intangible Assets
-----------------
Intangible assets consist primarily of debt issuance costs. Debt issuance
costs are amortized over the term of the related debt.
F-11
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
2. SUMMARY OF ACCOUNTING POLICIES (continued)
Income Taxes
------------
Deferred tax assets and liabilities are recognized for the estimated future
tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates in effect for the year in which those temporary
differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date.
Gas Balancing
-------------
The Company follows the sales method of accounting for gas imbalances. A
liability is recorded only if the Company's excess takes of natural gas
volumes exceed its estimated remaining recoverable reserves. No receivables
are recorded for those wells when the Company has taken less than its
ownership share of gas production.
Earnings Per Common Share
-------------------------
Earnings per common share is computed based upon the weighted average
common shares outstanding. Outstanding stock options and warrants of LaTex
Resources are excluded from the weighted average shares outstanding since
their effect on the earnings per share calculation is immaterial or
antidilutive.
FASB Accounting Standards
-------------------------
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards No. 119 (SFAS 119), Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments. This
Statement generally requires disclosures about amounts, nature, and terms
of derivative financial instruments. The Company has adopted SFAS 119 for
the fiscal year ended July 31, 1996.
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards No. 121 (SFAS 121), Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed of. This
Statement requires that long-lived assets and certain identifiable
intangibles to be held and used by an entity be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. If the sum of the undiscounted
future cash flows is less than the carrying amount of the asset, an
impairment loss is recognized. This Statement is effective for financial
statements for fiscal years beginning after December 15, 1995. The Company
intends to adopt SFAS 121 for the fiscal year ending July 31, 1997. The
Company expects the adoption of SFAS 121 will not have a material effect on
its financial statements.
F-12
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
2. SUMMARY OF ACCOUNTING POLICIES (continued)
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards No. 123 (SFAS 123), Accounting for Stock-Based
Compensation. This Statement establishes financial accounting and reporting
standards for stock-based employee compensation plans. This Statement
defines a fair value based method of accounting for an employee stock
option or similar equity instrument plan. Under the fair value based
method, compensation cost is measured at the grant date based on the value
of the award and is recognized over the service period, which is usually
the vesting period. This Statement is effective for transactions entered
into in fiscal years that begin after December 15, 1995. The Company
intends to adopt the disclosure requirements of SFAS 123 for the fiscal
year ending July 31, 1997.
Reclassification
----------------
Certain amounts in the 1995 and 1994 consolidated financial statements have
been reclassified to conform with the 1996 presentation.
3. ACCOUNTS AND NOTES RECEIVABLE AND INVESTMENTS IN AND ADVANCES TO AFFILIATES
<TABLE>
<CAPTION>
Accounts and Notes Receivable - Related Parties
-----------------------------------------------
1996 1995
----------- ----------
(Restated)
<S> <C> <C>
Accounts receivable - officers,
directors and employees $ 100,481 $ 354,261
Note receivable - officers,
directors, shareholders
and employees (See Note 12) 291,816 236,344
---------- ----------
Total $ 392,297 $ 590,605
========== ==========
Accounts and Notes Receivable - Other
-------------------------------------
1996 1995
---------- ----------
(Restated)
Oakland Petroleum Operating Company, Inc. $1,267,500 $ -
Panda Resources, Inc. - 584,172
Other accounts receivable from
third parties 5,820 112,516
---------- ----------
Less current maturities 515,820 696,688
---------- ----------
Total $ 757,500 $ -
========== ==========
</TABLE>
F-13
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
3. ACCOUNTS AND NOTES RECEIVABLE AND INVESTMENTS IN AND ADVANCES TO AFFILIATES
The non-interest bearing note receivable from Oakland Petroleum Operating,
Inc. (Oakland) represents the balance due to the Company for a loan entered
into with the Company's primary lender for a joint purchase of property.
The original amount was approximately $2,300,000 of which $1,267,500 was
still outstanding at July 31, 1996. The note receivable is offset by a
comparable amount included in the Company's long-term debt. Oakland pays
all principal and interest payments directly to the Company's primary
lender.
Investments in and Advances to Affiliates
-----------------------------------------
Investments in and advances to affiliates includes the following:
<TABLE>
<CAPTION>
1996 1995
----------- -----------
(Restated)
<S> <C> <C>
Wexford Technology, Inc. $ - $ 1,987,898
Imperial Petroleum, Inc. - 1,640,609
Others - 18,973
----------- -----------
Total $ - $ 3,647,480
=========== ===========
</TABLE>
See Note 6 - WRITE OFFS.
4. INCOME TAXES
The provisions for income taxes are as follows:
<TABLE>
<CAPTION>
1996 1995 1994
-------- -------- --------
(Restated)
(in thousands)
<S> <C> <C> <C>
Current:
State $ - $ 35 $ -
======== ======== ========
</TABLE>
F-14
<PAGE>
LATEX RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
4. INCOME TAXES (continued)
Income taxes differed from the amounts computed by applying the U.S.
federal tax rate of 34% as a result of the following:
<TABLE>
<CAPTION>
1996 1995 1994
--------- ---------- ---------
(Restated)
(in thousands)
<S> <C> <C> <C>
Computed "expected" tax benefit $(3,478) $ (835) $ (144)
State income taxes net of federal
benefit (1) 12 -
Increase in valuation allowance
for deferred tax assets 3,844 294 93
Equity in net losses of affiliates - 102 72
Excess statutory depletion (152) 237 3
Other (213) 225 (24)
------- -------- ---------
Actual income tax expense $ - $ 35 $ -
======== ======== ========
</TABLE>
The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and liabilities are presented below:
<TABLE>
<CAPTION>
1996 1995 1994
-------- ---------- --------
(Restated)
(in thousands)
<S> <C> <C> <C>
Deferred tax liabilities:
Property, plant and equipment $ 1,574 $1,390 $ 401
------- ------ -------
Total deferred tax liabilities 1,574 1,390 401
------- ------ -------
Deferred tax assets:
Net operating losses 4,300 1,521 350
Investment write-downs 917 - -
Percentage depletion carryforward 392 240 133
Accrued expenses not deductible
until paid 180 - -
Other 5 5 -
------- ------ -------
Total deferred tax assets 5,794 1,766 483
------- ------ -------
Valuation allowance (4,220) (376) (82)
------- ------ -------
Net deferred tax assets 1,574 1,390 401
------- ------ -------
Net deferred tax
asset (liability) $ - $ - $ -
======= ======= =======
</TABLE>
F-15
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
4. INCOME TAXES (continued)
A valuation allowance is required when it is more likely than not that all
or a portion of the deferred tax assets will not be realized. The ultimate
realization of the deferred tax assets is dependent upon future
profitability. Accordingly, a valuation allowance has been established to
reduce the deferred tax assets to a level which, more likely than not, will
be realized.
The Company has net operating loss (NOL) carryforward to offset its
earnings of approximately $11,390,000. Additionally, approximately
$10,490,000 of NOL carryforwards are available to offset the future
separate company earnings of Germany. If not previously utilized, the net
operating losses will expire in varying amounts from 2006 to 2011.
5. NOTES PAYABLE
<TABLE>
<CAPTION>
1996 1995
------------ ------------
(Restated)
<S> <C> <C>
Bank note (A) $ 22,206,707 $ 24,210,000
Other 29,160 69,532
------------ ------------
Total 22,235,867 24,279,532
Less - current maturities 22,235,867 3,644,723
------------ ------------
Long-term debt, net $ - $ 20,634,809
============ ============
</TABLE>
(A) Note payable dated April 18, 1995, for $23,000,000 with option of an
additional $2,000,000 for six months for approved workovers,
recompletions and development drilling of specified reserves.
Principal due monthly of $365,000 including Oakland Petroleum Co.
payment of $42,500 monthly. Interest due monthly at the higher of a
Base Rate (the higher of the Bank of America Reference Rate and the
Federal Fund Rate plus .5% per annum) plus 1% per annum and the London
Interbank Offered Rate plus 2%. The current rate at July 31, 1996 was
7.469%. Matures March 30, 2000. Amounts outstanding are secured by
mortgages which cover certain of the Company's oil and gas properties.
The Company's existing debt agreements contain certain covenants, including
maintaining a positive current ratio of 1.0, excluding current portion of
long-term debt, maintaining a minimum tangible net worth of $10,000,000,
maintaining a minimum cash or cash equivalents balance of $500,000,
maintaining working capital of at least $500,000, the negative covenant
related to permitted investments, and the covenant relating to default on
other indebtedness in excess of $50,000.
F-16
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
5. NOTES PAYABLE (continued)
The Company was not in compliance with the current ratio, cash equivalent,
minimum tangible net worth, and working capital covenants at July 31, 1995.
The items of non-compliance were subsequently waived by the lender for the
year ended July 31, 1995 and through January 31, 1996. The Company was not
in compliance with the above noted covenants at July 31, 1996 and was
operating under a "forbearance" agreement discussed in Note 1 to the
financial statements. The "forbearance" agreement expired on November 29,
1996 and the bank has not extended the agreement. The debt agreement
contains various acceleration provisions of the due date in the event of
non-compliance. Accordingly, the entire unpaid balance has been classified
as a current liability at July 31, 1996.
6. WRITE OFFS
Investments
-----------
During the fourth quarter of fiscal 1996, the Company wrote off its
investments in Wexford Technology, Incorporated (Wexford) and Imperial
Petroleum, Inc. (Imperial). The Company has not been able to obtain
reliable current financial information, accordingly, summarized financial
information is not presented.
The Company acquired 32.3% of Wexford through a series of transactions
culminating in May 1994. During the fourth quarter fiscal 1996, the Company
recorded a charge to earnings of $2,372,752 to write off its investment.
Wexford is presently in default on its bridge debt and has received
numerous written demands for payment and correspondence threatening
litigation. Included in the write off was $1,462,765 in notes receivable.
The Company owns 12% of the common stock of Imperial and certain officers,
directors and employees of the Company own 28.8%. During the fourth quarter
of fiscal 1996, the Company recorded a charge to earnings of $1,797,378 to
write off this investment. Imperial is currently in default on its bank
debt. Included in the write off of the Company's investment was $722,603 in
notes receivable.
Wexford and Imperial are both development stage enterprises that are
seeking capital infusion to complete their facilities and achieve
commercial operations. Neither Wexford nor Imperial have been able to raise
additional debt or equity capital. Further, there can be no assurance,
assuming Wexford and Imperial successfully raise additional funds or enter
into a business alliance, that they will achieve commercial operations or
positive cash flow.
Exploration Prospects
---------------------
During the fourth quarter of fiscal year 1996, the Company recorded a
charge to earnings of $955,496 to write off costs incurred in connection
with a venture in Kazakhstan C.I.S. Subsequent to July 31, 1996, the
Company received written notice that the Company may be in breach of its
agreements related to the venture. The Company believes it is in
substantial compliance with the operating agreement governing the project.
In addition, the Company has been notified that Uzenmunaigaz, the regional
production association for the Middle Caspian Basin, may seek to further
alter the terms of a contract in a manner which the Company believes would
be detrimental to the project's viability.
F-17
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
6. WRITE OFFS (continued)
During fiscal 1993 the Company, through a subsidiary, acquired an interest
in a permit granted by the Republic of Tunisia for the exploration and
production of oil and gas from a 4,936 square kilometer (1,220,000 acres)
area located in north-central Tunisia. Initial seismic acquisition
activities began in 1994. The first exploratory well was spudded in fiscal
1995. This well was drilled and temporarily abandoned prior to reaching the
objective depth.
In fiscal 1996, the operator of the project, in response to a request from
the Tunisian government, permanently plugged the well and restored the well
site. The Company has insufficient capital to continue the project and, due
to the limited time remaining on the exploration permit, decided to abandon
the project and write off its investment.
7. SAVINGS AND PROFIT SHARING PLAN
The Company maintains an employee savings and profit sharing plan (the
Plan) which covers substantially all of its employees. The Plan is
comprised of a 401(k) savings portion and a noncontributory defined
contribution portion. Employees are qualified to participate after
approximately one year of service. Participation in the 401(k) plan is
voluntary, and the Company matches contributions up to four percent of the
employees' salary at a rate of 33 1/3 percent of the employee's
contribution. Employees are allowed to contribute the maximum amount
allowed by the Internal Revenue Code each year, subject to
nondiscrimination rules.
The noncontributory defined contribution portion of the Plan allows the
Company to share annual profits with employees. Annual payments to the Plan
are elective. Management elected to make no contributions to the Plan for
1996, 1995, or 1994. The Company is under no obligation to make
contributions to the Plan in the future.
8. STOCK OPTIONS
Stock Option Plan
-----------------
The 1993 Incentive Stock Plan (the "Plan") was effective December 8, 1993.
The Plan is administered by a Compensation Committee consisting of not less
than three members of the Board of Directors and a special committee
appointed by the Board of Directors, as necessary.
The aggregate number of shares of the Company's Common Stock issuable under
the Plan is 2,000,000. Such stock will be made available from the Company's
authorized but unissued Common Stock or from Stock held as Treasury Stock.
F-18
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
8. STOCK OPTIONS (continued)
Options and Appreciation Rights
-------------------------------
This Plan authorizes the Committee to grant to key employees options to
purchase the Company's Common Stock which may be in the form of incentive
stock options ("ISO's"), or in the form of non-statutory options ("Non-
Statutory Options"). The term of each option shall be for such period as
the Committee determines but no longer than ten years from the date of
grant or five years to an individual who is a 10% stockholder of the
Company.
The aggregate fair market value exercisable by an individual optionee
during any calendar year under all stock option plans of the Company may
not exceed $100,000. The exercise price per share for the Common Stock
covered by any Options shall be determined by the Committee and, provided
that in the case of an ISO and the per share exercise price shall be not
less than the fair market value (or in the case of an ISO granted to an
individual who at the time is a 10% Stockholder, 110% of the fair market
value) of one share of Common Stock. Options to purchase 1,690,000 shares
of common stock were granted under the Plan. (See Note 17)
Restricted Stock Awards
-----------------------
The Plan authorizes the Committee to grant restricted Common Stock
("Restricted Stock") to key employees. The Committee may designate a
restriction period with respect to such shares of not less than one year
but not more than five years (the "Restriction Period") during which an
employee will not be permitted to sell, transfer, pledge or assign shares
of Restricted Stock awarded to him, provided that within such limitations,
the Committee may provide for the lapse of such restrictions installments
where deemed appropriate. Upon termination of employment during the
Restriction Period for any reason, all shares of Restricted Stock with
respect to which restrictions have not yet expired will be forfeited by the
employee and returned to the Company.
The Plan also authorizes the Committee to award tax gross-up rights which
entitle the grantee to cash payments from the Company at such time as
income and/or excise tax liabilities arise with respect to grants under the
Plan. Tax gross-up rights may be granted coincident with or after the date
of grant of the related Option or Restricted Stock awards. No restricted
shares have been issued at July 31, 1996. (See Note 17)
9. WARRANTS
As of July 31, 1996, the Company, in connection with the sale of previously
unissued common stock, has 2,700,000 Warrants outstanding. The sale
included 2,587,500 of the Warrants which were detachable from the
Stock/Warrant Units upon issuance and trade separately from the Units and
Common Stock. Unless exercised, the 2,587,500 Warrants automatically expire
on November 19, 1997. Pursuant to the terms of the Warrants, the Board of
Directors of the Company may reduce the exercise price, $4.25, of the
Warrants and may also extend the period during which the Warrants may be
exercised. The Warrants may be redeemed by the Company at a price of $0.01
per Warrant with 30 days prior written notice by the Company.
F-19
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
9. WARRANTS (continued)
In addition, the Company issued Warrants to the underwriter of the offering
for $.01 per Warrant (underwriter Warrants) to purchase up to 112,500 units
for $4.44 per unit. These Warrants are exercisable, in part or whole, until
November 16, 1997. The Company also has agreed to register, at its sole
cost and expense, all or a portion of the underwriter Warrants and/or the
shares issuable, upon the exercise of the Warrants during the period
November 10, 1993 to November 16, 1997.
The Company has also issued 1,516,000 private Warrants, exercisable at a
price ranging from $.75 to $3.25 at a ratio of 1 to 1. These Warrants
expire at various dates from January 26, 1997 to October 31, 2001.
10. PREFERRED STOCK
The Board of Directors has the authority to issue 5,000,000 shares of
Preferred Stock, in one or more series, and to fix the rights, preferences,
qualifications, privileges, limitations or restrictions of each such series
without any further vote or action by the shareholders, including the
dividend rights, dividend rate, conversion rights, voting rights, terms of
redemption (including sinking fund provisions), redemption price or prices,
liquidation preferences and the number of shares constituting any series or
the designations of such series.
The Company's Series A Convertible Preferred Stock (i) pays annual
dividends at the rate of $0.20 per share payable quarterly in cash (or, if
payment of cash dividends is prohibited by the Company's senior lender,
payable in additional shares of Series A Convertible Preferred Stock), (ii)
has no voting rights except as otherwise required under Delaware law, (iii)
has a liquidation preference over shares of the Company's common stock of
$10.00 per share plus accrued and unpaid dividends, (iv) is redeemable at
the option of the Company at a redemption price of $10.00 per share plus
accrued and unpaid dividends, (v) is convertible by the holder into shares
of the Company's common stock at a conversion price of $3.33 per share, and
(vi) has piggyback registration rights in the event the Company seeks to
make a registered public offering of its common stock. There are 451,097
and 442,281 shares of Series A Convertible Preferred Stock outstanding at
July 31, 1996 and 1995, respectively.
The Series B Convertible Preferred Stock (i) pays annual dividends at the
rate of $1.20 per share payable quarterly in cash (or, if payment of cash
dividends is prohibited by the Company's senior lender, payable in
additional shares of Series B Convertible Preferred Stock), (ii) has no
voting rights except as otherwise required under Delaware law, (iii) has a
liquidation preference over shares of the Company's Series A Convertible
Preferred Stock and the Company's common stock of $10.00 per share plus
accrued and unpaid dividends, (iv) is redeemable at the option of the
Company at a redemption price of $10.00 per share plus accrued and unpaid
dividends, and (v) is convertible by the holder into shares of the
Company's common stock at an initial conversion price of $1.50 per share,
subject to adjustment from time to time to prevent dilution. By separate
agreement, the Company has granted certain demand registration rights and
piggyback registration rights in the event the Company seeks to make a
registered public offering of its common stock. There are 479,345 and
381,100 shares of Series B Convertible Preferred Stock outstanding at July
31, 1996 and 1995, respectively.
F-20
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
11. LITIGATION, COMMITMENTS AND CONTINGENCIES
Litigation - In connection with the Company's sale of its subsidiaries,
----------
Panda Resources, Inc. and Richfield Natural Gas, Inc. in 1993, the Company
became a party in three different lawsuits.
On December 7, 1995, the Company entered into a Settlement Agreement (the
"Settlement") to settle all matters related to the sale and the related
litigation. Pursuant to the Settlement, the Company agreed to pay to the
plaintiffs (a) $20,000 on December 7, 1995, and an additional $30,000 over
the course of 90 days following execution of the Settlement, and (b) to pay
$50,000 within one year of the Settlement, an additional $50,000 within two
years of the Settlement, and an additional $150,000 within three years of
the Settlement, together with interest in the amount of $36,000. To secure
its obligation under the Settlement, the Company stipulated in an agreed
judgment that it would be liable in the amount of $1,000,000 (less any
amounts paid pursuant to the Settlement) upon the Company's default of its
obligations under the Settlement. In addition, the Company agreed to assume
and indemnify the plaintiffs against all obligations and amounts owed under
a May 2, 1989 agreement between Panda and Northern Natural Gas Company
relating to the transportation of natural gas through a facility located in
Dewey County, Oklahoma. Pursuant to this indemnification, the Company has
been asked to indemnify one of the plaintiffs with respect to claims
brought against it by Northern in a lawsuit filed March 7, 1996, as more
fully discussed below.
March 7, 1996, Northern Natural Gas Company ("Northern") filed a lawsuit
against Torch Energy Advisors, Inc. ("Torch") for alleged breach of a May
2, 1989 agreement (the "Dewey County Contract") between Torch, Panda
Resources, Inc. ("Panda"), and Northern relating to the transportation of
natural gas through a facility located in Dewey County, Oklahoma. The
Company has assumed the defense of this matter pursuant to the
indemnification agreement entered into as part of the December 7, 1995,
settlement among Torch, Panda and the Company discussed above. Northern
contends that Panda failed to transport the required volumes and that the
deficiency resulted in a requirement that Panda pay a total of $973,000,
representing the percentage of the costs of constructing the facilities
calculated under the contract formula. Northern sued Torch under a written
guaranty agreement and has claimed, in addition, that Torch denuded the
assets of Panda and is therefore liable for the debts of Panda. The Company
maintains that, if litigation is unsuccessful to the Company, Northern
would only be entitled to the amount of the contractually required volumes.
On November 17, 1994, Associated Storage Corporation ("Associated") filed a
lawsuit against the Company alleging that the Company had breached a July
21, 1993 agreement between Associated and the Company, pursuant to which
Panda Resources, Inc., and Panda's wholly-owned subsidiary, Richfield
Natural Gas, Inc. Associated seeks actual damages in the amount of
$150,000, prejudgment interest, court costs, and attorneys' fees.
Associated has filed a motion for summary adjuration which was denied by
the court. The Company has asked Associated to submit to mediation.
F-21
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
11. LITIGATION, COMMITMENTS AND CONTINGENCIES (continued)
On October 7, 1994, Northern Natural Gas Company ("Northern") filed a
lawsuit against the Company alleging that the Company had breached two Firm
Transportation Service Agreements dated December 1, 1990, between Northern
and Panda, a former wholly-owned subsidiary of the Company. On June 6,
1996, Northern and the Company entered into a Settlement Agreement pursuant
to which (a) the Company issued to Northern 50,000 shares of the Company's
Series B Senior Convertible Preferred Stock which are convertible (subject
to adjustment) into 333,333 shares of the Company's common stock, and (b)
the Company agreed to pay Northern $465,000 in installments of $50,000 by
June 21, 1996, $150,000 by May 1, 1997, $125,000 by May 1, 1998, and
$140,000 by May 1, 1999. An agreed judgment was entered in the case, but
Northern has agreed not to seek to enforce the judgment unless the Company
defaults in its payment obligations. Once the required payments have been
made, Northern has agreed to execute a release of the judgment. These
amounts have been reflected in the Company's consolidated financial
statements at July 31, 1996.
Germany Oil Company is a named defendant in three wrongful death actions
involving an accident which occurred at a heater-treatment unit on the
Blowhorn Creek Millerella Oil Unit lease in Lamar County, Alabama. Each
plaintiff seeks damages in the amount of $25 million. The three matters are
in the initial stages of discovery and have been referred to Germany Oil
Company's insurance carrier. Germany has an approximate 10% ownership
interest of the property. Management believes that liability insurance
coverage is adequate to cover any potential loss.
Contingencies - In addition to the foregoing litigation, the Company is a
-------------
named defendant in lawsuits, is a party in governmental proceedings, and is
subject to claims of third parties from time to time arising in the
ordinary course of business. While the outcome of lawsuits or other
proceedings and claims against the Company cannot be predicted with
certainty, management does not expect these additional matters to have a
material adverse effect on the financial position of the Company.
Commitments
-----------
The Company leases office space and certain property and equipment under
various lease agreements. As of July 31, 1996, future lease commitments
were approximately as follows:
Year Ending
July 31,
-----------
1997 $ 168,000
1998 142,000
------------
Total minimum payments $ 310,000
============
F-22
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
12. RELATED PARTY TRANSACTIONS
In regard to the modification and cancellation of the non-compete
agreements with the two previous majority shareholders of Panda, Mr.
Jeffrey T. Wilson assumed the notes receivable due the Company by the two
former shareholders in the amount of $339,650 plus accrued interest. The
Board has voted to forgive $380,624, representing the total notes and
accrued interest, due from Mr. Wilson.
The Company from time to time, has made loans to certain officers,
directors and stockholders. The loans are evidenced by demand notes payable
due on or before December 31, 1996, bearing interest of various rates.
13. BUSINESS SEGMENTS
The Company's operations involve oil and gas exploration, production and
lease operations. Additionally, crude oil and crude oil by-products are
marketed through a wholly owned subsidiary. Intersegment sales are made at
prices prevailing in the industry at the time of sale. The following table
sets forth information with respect to the industry segments of the
Company.
<TABLE>
<CAPTION>
1996 1995 1994
---------- --------- ---------
(Restated)
(in thousands)
<S> <C> <C> <C>
Revenues:
Oil and gas
production and
lease operations $12,991 $ 9,220 $ 9,305
Marketing 540 1,223 2,780
------- ------- -------
13,531 10,443 12,085
Intersegment 3,658 3,023 2,884
------- ------- -------
Total revenues $17,189 $13,466 $14,969
======= ======= =======
Operating income (loss):
Oil and gas
production and
lease operations $(4,477) $(1,440) $ (187)
Marketing 78 231 317
Other 4 93 75
------- ------- -------
Net operating income
(loss) $(4,395) $(1,116) $ 205
======= ======= =======
</TABLE>
The Company sold 16% of its consolidated oil and gas revenue to Enron Reserve
Acquisition Corporation for the year ended July 31, 1996. The Company had no
other purchasers in excess of 10% of consolidated oil and gas revenue.
F-23
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
13. BUSINESS SEGMENTS (continued)
<TABLE>
<CAPTION>
1996 1995 1994
-------- -------- --------
(Restated)
(In thousands)
<S> <C> <C> <C>
Identifiable assets:
Oil and gas production $31,830 $37,371 $12,677
Marketing 429 606 620
Other 6,707 9,946 7,962
------- ------- -------
$38,966 $47,923 $21,259
======= ======= =======
Depreciation, depletion,
and amortization:
Oil and gas production $ 4,210 $ 2,403 $ 1,984
Marketing 3 5 7
Other 493 303 223
------- ------- -------
$ 4,706 $ 2,711 $ 2,214
======= ======= =======
Capital expenditures:
Oil and gas production $ 3,759 $ 4,759 $ 4,205
Marketing - - -
Other 15 56 52
------- ------- -------
$ 3,774 $ 4,815 $ 4,257
======= ======= =======
</TABLE>
14. SUPPLEMENTARY FINANCIAL INFORMATION FOR OIL AND GAS PRODUCING ACTIVITIES
Results of Operations from Oil and Gas Producing Activities
-----------------------------------------------------------
The following sets forth certain information with respect to the Company's
results of operations from oil and gas producing activities for the years
ended July 31, 1996, 1995 and 1994. All of the Company's oil and gas
producing activities are located within the United States. The dry hole
costs include $2,491,299 related to the Tunisia project.
F-24
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
14. SUPPLEMENTARY FINANCIAL INFORMATION FOR OIL AND GAS PRODUCING ACTIVITIES
(continued)
<TABLE>
<CAPTION>
1996 1995 1994
---------- ---------- ----------
(Restated)
(In thousands)
<S> <C> <C> <C>
Revenues $ 11,980 $ 8,585 $ 8,703
Production costs 5,737 4,693 4,312
Gross production taxes 871 572 529
Dry hole costs and
abandonments 3,586 104 113
Depreciation and depletion 4,210 2,403 1,984
---------- ---------- ----------
Results of operations
before income taxes (2,424) 813 1,765
Income tax expense - - 671
---------- ---------- ----------
Results of operations
(excluding corporate
overhead and interest
costs) $ (2,424) $ 813 $ 1,094
========== ========== ==========
</TABLE>
<TABLE>
Capitalized Costs and Costs Incurred Relating to Oil and Gas Producing Activities
---------------------------------------------------------------------------------
<CAPTION>
1996 1995 1994
---------- ---------- ----------
(Restated)
(In thousands)
<S> <C> <C> <C>
Proven properties $ 40,316 $ 38,690 $ 16,208
Unproven properties 949 4,312 -
---------- ---------- ----------
Total capitalized costs 41,265 43,002 16,208
Less - accumulated
depreciation and
depletion 9,435 5,631 3,555
---------- ---------- ----------
Net capitalized costs $ 31,830 $ 37,371 $ 12,653
========== ========== ==========
Costs incurred during
the year:
Property acquisition
costs $ - $ - $ -
Exploration costs 2,631 104 113
Development costs 1,480 763 787
Purchase of minerals
in place 2,800 22,613 1,740
</TABLE>
F-25
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
14. SUPPLEMENTARY FINANCIAL INFORMATION FOR OIL AND GAS PRODUCING ACTIVITIES
(continued)
Estimated Quantities of Proved Oil and Gas Reserves (Unaudited)
---------------------------------------------------------------
The estimates of proved oil and gas reserves utilized in the preparation of
the consolidated financial statements were prepared by independent
petroleum engineers at July 31, 1996. Such estimates are in accordance with
guidelines established by the Securities and Exchange Commission and the
Financial Accounting Standards Board, which require that reserve reports be
prepared under existing economic and operating conditions with no provision
for price and cost escalations except by contractual arrangements. The
Company's reserves are located onshore in the United States.
The Company emphasizes that reserve estimates are inherently imprecise.
Accordingly, the estimates are expected to change as more current
information becomes available. In addition, a portion of the Company's
proved reserves are undeveloped, which increases the imprecision inherent
in estimating reserves which may ultimately be produced.
Proved reserves are estimated quantities of crude oil, natural gas, and
natural gas liquids which geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known
reservoirs under existing economic and operating conditions. Proved
developed reserves are those which are expected to be recovered through
existing wells with existing equipment and operating methods. The following
is an analysis of the Company's proved oil and gas reserves.
<TABLE>
<CAPTION>
Oil (MBbls) Gas (MMcf)
----------- ----------
<S> <C> <C>
Proved reserves at July 31, 1993 2,455.3 9,391
Revisions of previous estimates 423.3 346
Extensions, discoveries and other additions 2,075.9 2,215
Production (335.3) (2,107)
Purchases of reserves-in-place 112.4 1,924
Sales of reserves-in-place (211.7) (836)
----------- ----------
Proved reserves at July 31, 1994 4,519.9 10,933
Revisions of previous estimates (1,686.8) (1,793)
Extensions, discoveries and other additions - -
Production (359.0) (2,612)
Purchases of reserves-in-place 1,562.3 21,202
Sales of reserves-in-place - -
----------- ----------
Proved reserves at July 31, 1995 (Restated) 4,036.4 27,730
</TABLE>
F-26
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
14. SUPPLEMENTARY FINANCIAL INFORMATION FOR OIL AND GAS PRODUCING ACTIVITIES
(continued)
<TABLE>
<CAPTION>
Oil (MBbls) Gas (MMcf)
----------- ----------
<S> <C> <C>
Revisions of previous estimates 2,566.8 3,888
Extensions, discoveries and other additions - -
Production (405.0) (3,481)
Purchases of reserves-in-place 248.7 2,190
Sales of reserves-in-place (93.9) (2,155)
----------- ----------
Proved reserves at July 31, 1996 6,353.0 28,172
=========== ==========
<CAPTION>
Oil (MBbls) Gas (MMcf)
----------- ----------
<S> <C> <C>
Proved developed reserves at
July 31, 1993 2,217.0 8,858
July 31, 1994 3,843.0 9,495
July 31, 1995 (Restated) 4,036.4 27,730
July 31, 1996 4,952.9 27,757
</TABLE>
Subsequent to year end, the Company has entered into letters of intent with
two parties to sell oil and gas properties for approximately $1,500,000.
The Company chose not to include those properties in its reserve appraisal
at July 31, 1996.
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved
---------------------------------------------------------------------------
Oil and Gas Reserves (Unaudited)
--------------------------------
The "Standardized Measure of Discounted Future Net Cash Flows Relating to
Proved Oil and Gas Reserves" (Standardized Measure) is a disclosure
requirement under SFAS No. 69. The Standardized Measure does not purport to
present the fair market value of proved oil and gas reserves. This would
require consideration of expected future economic and operating conditions,
which are not taken into account in calculating the Standardized Measure.
Under the Standardized Measure, future cash inflows were estimated by
applying year-end prices, adjusted for fixed and determinable escalations,
to the estimated future production of year-end proved reserves. Future cash
inflows were reduced by the estimated future production and development
costs based on year-end costs to determine pre-tax cash inflows. Future
income taxes were computed by applying the statutory tax rate to the excess
of pre-tax cash inflows over the Company's tax basis in the associated
proved oil and gas properties. Tax credits and permanent differences were
also considered in the future income tax calculation. Future net cash
inflows after income taxes were discounted using a 10% annual discount rate
to arrive at the Standardized Measure.
F-27
<PAGE>
LaTex RESOURCES, INC.
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
14. SUPPLEMENTARY FINANCIAL INFORMATION FOR OIL AND GAS PRODUCING ACTIVITIES
(continued)
<TABLE>
<CAPTION>
Year Ended
-------------------------------------------
July 31, 1994 July 31, 1995 July 31, 1996
------------- ------------- -------------
(Restated)
(In thousands)
<S> <C> <C> <C>
Future cash inflows $ 87,093 $ 99,585 $ 181,566
Future costs - future production
and development costs 49,490 43,794 79,763
------------- ------------- -------------
Future net cash inflows before
income tax expense 37,603 55,791 101,803
Future income tax expense 9,151 8,705 25,486
------------- ------------- -------------
Future net cash flows 28,452 47,086 76,317
10% annual discount for estimated
timing of cash flows 14,175 22,130 35,869
------------- ------------- -------------
Standardarized Measure of
discounted future net cash
flows $ 14,277 $ 24,956 $ 40,448
============= ============= =============
</TABLE>
Changes in Standardized Measure of Discounted Future Net Cash Flows
-------------------------------------------------------------------
Relating to Proved Oil and Gas Reserves (Unaudited)
---------------------------------------------------
The following is an analysis of the changes in the Standardized Measure
during the periods presented:
<TABLE>
<CAPTION>
Year Ended
-------------------------------------------
July 31, 1994 July 31, 1995 July 31, 1996
------------- ------------- -------------
(Restated)
(In thousands)
<S> <C> <C> <C>
Standardized Measure -
beginning of year $ 9,993 $ 14,277 $ 24,956
Increases (Decreases)
Sales, net of production costs (3,799) (3,800) (5,779)
Net change in sales prices,
net of production costs 2,600 (9,108) 20,712
Discoveries and extensions,
net of related future
development production costs 4,762 - -
Changes in estimated future
development costs (1,521) 1,182 (2,889)
Revisions of previous
quantity estimates 225 (4,260) 11,260
Accretion of discount - 1,428 2,181
Net change in income taxes - 236 (8,944)
Purchases of reserves-in-place 2,459 20,700 2,093
Sales of reserves-in-place (974) - (3,142)
Timing of production of
reserves and other 532 4,301 -
------------- ------------- -------------
Standardized Measure - end of year $ 14,277 $ 24,956 $ 40,448
============= ============= =============
</TABLE>
F-28
<PAGE>
Note to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
15. HEDGING
Oil and Gas - The Company is required, by agreement with its primary lender
-----------
(Bank of America), to participate in a price protection program, executed
by Bank of America, for a majority of its gas sales for a 36 month period
until March 31, 1998. Oil is hedged at a floor of $16.50/Bbl and a ceiling
of $19.82/Bbl based on projected monthly production. Gas is hedged at
$1.806/MMBtu based on projected monthly production. The production rates
were calculated by Bank of America from reserve report data and are fixed
by Bank of America. The monthly hedge amount is calculated by Bank of
America from published market rates. The current hedging agreement does not
allow for full benefit from prices above the ceiling amount.
The hedging gains or losses for the years ended July 31, 1996 and 1995 are
as follows:
<TABLE>
<CAPTION>
1996 1995
---------- ----------
(Restated)
<S> <C> <C>
Oil $ (200,447) $ (4,397)
Gas (1.275,206) 161,698
----------- ---------
Net hedging income (loss) $(1,475,653) $ 157,301
=========== =========
</TABLE>
The hedging gains and losses are included in oil and gas revenue for the
years indicated.
Interest - The Company is required, by agreement with its primary lender
--------
(Bank of America), to participate in an interest rate protection program,
executed by Bank of America, until February 29, 2000, for its debt to its
primary lender. Interest is hedged to achieve a fixed rate of 7.49% based
on a fixed amortization schedule determined at loan origination. The
hedging losses for the year ended July 31, 1996 and 1995 are $504,303 and
$80,151, respectively, and are included in interest expense for the years
indicated.
The off-balance sheet liability for all future hedging commitments based on
current year end prices and rates are as follows:
<TABLE>
<S> <C>
Oil $ 669,405
Gas 1,668,202
Interest 1,291,680
-----------
Net liability $ 3,649,287
===========
</TABLE>
F-29
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
16. RESTATEMENT OF PRIOR YEAR
Effective March 31, 1995 the Company acquired Germany Oil Company
("Germany") in a purchase transaction. The net assets acquired consisted
primarily of oil and gas properties. In connection with the transaction the
Company failed to allocate the purchase price to all assets acquired as
required by generally accepted accounting principles. During fiscal 1996
the Company, based on the reports of independent petroleum engineers,
reallocated the adjusted purchase price as of the date of acquisition.
Accordingly, the previously reported 1995 amounts have been restated as
follows:
<TABLE>
<CAPTION>
Statement of
Asset Liability Operations
Increase (Increase) (Increase)
(Decrease) Decrease Decrease
----------- ----------- -----------
<S> <C> <C> <C>
Oil and gas properties $ 7,859,993 $ - $ -
Goodwill (9,929,199) - -
Deferred loan cost 871,270 - -
Accounts payable 1,197,936
Goodwill amortization (220,650) - 220,650
Depletion expense (49,283) - 49,283
Amortization expense 58,085 - (58,085)
----------- ----------- -----------
Total $(1,409,784) $ 1,197,936 $ 211,848
=========== =========== ===========
</TABLE>
17. SUBSEQUENT EVENTS
Proposed Merger With Alliance Resources Plc - As a result of the demands
-------------------------------------------
placed upon the Company by its primary lender, the Company's continuing
working capital deficit, its deteriorating financial condition and the
inability of the Company to raise additional debt or equity capital,
management of the Company, in the forth quarter of fiscal 1996, determined
to seek an equity infusion through a strategic merger with a suitable
merger candidate. Management's primary objective in seeking a merger
partner was to solve the working capital deficit of the Company through an
equity infusion while minimizing dilution to the shareholders. Although the
Company considered several potential transactions. Alliance Resources Plc
("Alliance") emerged as the candidate most likely to meet the objectives of
the Company. The Company has entered into an Agreement and Plan of Merger
("Alliance Merger Agreement") dated August 12, 1996 with Alliance Resources
Plc, a company organized under the laws of the United Kingdom ("Alliance"),
Pursuant to which the Company will merge ("Alliance Merger") with a wholly-
owned U.S. subsidiary of Alliance.
F-30
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
17. SUBSEQUENT EVENTS (continued)
Under the terms of the Alliance Merger Agreement and after giving effect to
a 1 for 40 reverse stock split to be completed by Alliance, the holders of
the Company's common stock will receive 0.8806 ordinary shares of Alliance
for each share of such common stock, the holders of the Company's Series A
Convertible Preferred Stock will receive 2.6445 ordinary shares of Alliance
for each share of such Series A Convertible Preferred Stock, and the
holders of the Company's Series B Senior Convertible Preferred Stock will
receive 5.8709 ordinary shares of Alliance for each share of such Series B
Senior Convertible Preferred Stock. Following the Alliance Merger, the
holders of the Company's common and preferred stock will own, as a group,
approximately 72% of the issued and outstanding ordinary shares of Alliance
and the Company will become a wholly-owned subsidiary of Alliance. Holders
of outstanding warrants to purchase shares of the Company's common stock
will receive from Alliance replacement warrants to purchase shares of
Alliance ordinary shares on substantially the same terms.
It is anticipated that the merger will provide the Company with sufficient
capital resources to eliminate its existing working capital deficit,
refinance the Company's senior debt and eliminate the hedging agreements,
and provide development capital for exploration of the Company's oil and
gas properties. In addition, the Company believes that the combination of
the two companies provides strategic benefits to the Company important to
its long-term growth and the enhancement of shareholder value. Although
Alliance's domestic oil and gas operations are significantly smaller than
the Company's, the Company believes that the merger will enhance the
overall financial strength of the Company and provide a stable platform
from which future growth can be achieved. The strategic objectives of the
combined Company will be to continue a policy of structured and stable
growth in the domestic U.S. oil and gas sector while implementing projects
in Western Europe, the Middle East and the former Soviet Union.
Under the terms of the Alliance Merger Agreement, the Company is required
to dispose of its interests in its unconsolidated affiliates, Wexford
Technology, Inc. ("Wexford") and Imperial Petroleum, Inc. ("Imperial"), and
its interests in its wholly-owned subsidiaries LaTex Resources
International, Inc. ("LaTex Resources International") and Phoenix Metals,
Inc. ("Phoenix Metals"). Effective July 31, 1996, the Company has written
off its $1,811,694 investment in Wexford, its $2,372,452 investment in
Imperial, and its $955,496 Investment in LaTex Resources International. The
Company has entered into a Purchase Agreement with Imperial pursuant to
which the Company will sell its interests in Wexford, Imperial, LaTex
Resources International and Phoenix Metals to Imperial for 100,000 shares
of the Company's common stock. Imperial is controlled by the Company's
President and largest stockholder, Jeffrey T. Wilson. Prior to the
completion of the sale, the Company intends to obtain an opinion from an
independent investment banking firm as to the fairness of the transaction
to the Company's stockholders.
F-31
<PAGE>
Notes to Consolidated Financial Statements
July 31, 1996, 1995, and 1994
17. SUBSEQUENT EVENTS(continued)
Effective October 21, 1996, each holder of options granted under the
Company's 1993 Incentive Stock Plan agreed to terminate all options held
and receive grants of restricted common stock of the Company. 1,690,000
options were canceled and 1,690,000 shares of restricted common stock were
granted. The terms of the Restricted Shares provide that a holder may not
sell, transfer, or otherwise dispose of any Restricted Shares as long as
the Company has the right to a forfeiture of the Shares. The terms of the
Restricted Stock provide that in the event that a holder's employment with
the Company shall terminate for any reason other than death or total
disability prior to the earlier of (a) February 1, 1997, or (b) a change
in control occurs with respect to the Company, the holder shall
immediately forfeit any right to the shares of Restricted Stock for which
the restrictions have not otherwise lapsed.
Disposition of Oil and Gas Properties - Subsequent to year end, the
-------------------------------------
Company has entered into letters of intent with two parties to sell oil
and gas properties for approximately $1,500,000. The Company chose not to
include those properties in its reserve appraisal at July 31, 1996.
F-32
<PAGE>
PART III
Item 10. Directors and Executive Officers of the Registrant.
Directors and Executive Officers
The following table sets forth certain information regarding the directors,
executive officers and key employees of the Company.
Name Age Position
---- --- --------
Jeffrey T. Wilson 43 Director, Chairman of the Board, President,
and Chief Executive Officer
John L. Cox 46 Director, Vice President and Chief
Financial Officer
Malcolm W. Henley 45 Director and Vice President of Marketing
John R. Martinson 61 Director
Robert L. Hull 44 Vice President of Operations
John W. Heinsius 46 Vice President of Exploration
Stacey D. Smethers 28 Secretary
Jeffrey T. Wilson has been a Director, Chairman of the Board and Chief
-----------------
Executive Officer of the Company since December 1991. Mr. Wilson was a Director
and Executive Vice President of Vintage Petroleum, Inc. ("Vintage") from May
1990 to July 1991. He was Vice President--Production of Vintage from January
1984 to May 1990 and Manager--Acquisitions of Vintage from May 1983 to January
1984. From August 1980 to May 1983, Mr. Wilson was an engineer with Netherland,
Sewell & Associates, Inc, a petroleum engineering consulting firm, where his
assignments included annual reserve appraisals, reserve acquisition appraisals
and field studies. From May 1975 to August 1980, he gained experience in the
oil and gas industry with Exxon Company U.S.A. in various engineering and
supervisory capacities in the Louisiana and South Texas areas. Mr. Wilson holds
a Bachelor of Science Degree in Mechanical Engineering from the Rose-Hulman
Institute of Technology.
John L. Cox has served as a Director of the Company since November 1995.
-----------
Mr. Cox became Vice President of Finance and Chief Financial Officer of the
Company in January 1996. From February 1992 to December 1995, Mr. Cox held the
position of Controller for the Company. Mr. Cox held the positions of
Controller of Panada Exploration and Assistant Controller of Panda Resources
from November 1990 to January 1993. Prior to that time, he held various
managerial positions with Reading & Bates Petroleum Corporation. Mr. Cox holds
a Bachelor of Science Degree in Accounting from Oklahoma City University.
Malcolm W. Henley has been Vice President of Marketing of the Company since
-----------------
June 1992. Mr. Henley was elected to the Company's Board of Directors in
September 1993. Mr. Henley has been Chairman of the Board, President, Chief
Executive and Chief Operating officer of the Company's wholly-owned subsidiary
ENPRO, Inc. since August, 1984. From 1981 to 1984, Mr. Henley served as Manager
of Operations for a natural gas pipeline company subsidiary of Champlin
Petroleum (now Union Pacific Resources). From 1976 to 1979 he served as Vice
President and General Manager of Utilities Pipeline Company and between 1975 and
1976 held various positions with Continental Oil Company. Mr. Henley
38
<PAGE>
has a Bachelor of Arts Degree in Business Administration from Oklahoma State
University and an Associates Degree in Petroleum Land Technology from Tulsa
Junior College.
John R. Martinson has been a Director of the Company since May 4, 1995.
-----------------
Mr. Martinson has served as a consultant to the Company since August 1994.
Since January 1995, Mr. Martinson has been a principal in the merchant banking
firm Martinson, O'Dell & Ogden, L.L.C., specializing in corporate and project
finance. Mr. Martinson is also managing director of Wood Roberts, Inc. where he
has engaged in financial consulting since January 1989. Mr. Martinson earned
his Bachelor of Science Degree in Engineering at Princeton University and holds
a Masters in Business Administration Degree from Northwestern University.
Robert L. Hull has been Vice President of Operations of the Company since
--------------
January 1992. Prior to joining the Company, Mr. Hull had been employed for
seven years with Vintage Petroleum, Inc. in the position of Senior Operations
Engineer. Prior to that time, Mr. Hull had been employed by other oil related
companies, including Dowell-Schlumberger, Equitable Gas Co., Ladd Petroleum,
Unit Corp. and Mapco. Mr. Hull holds a Bachelor of Science Degree in Geology
from the University of Pittsburgh.
John W. Heinsius has been Vice President of Exploration since February
----------------
1993. From October 1989 to February 1993, Mr. Heinsius held the positions of
Vice President of Exploration and Manager of Gas supply for Panda Resources,
Inc. Mr. Heinsius held the positions of Director of Exploration and Manager of
Gas Marketing for Transok, Inc. from 1985 to October 1989. Prior to this time,
he held the titles of Exploration Manager and Vice President of Exploration for
Buttonwood Petroleum, Chief Geologist for Indian Wells Oil Co., Staff Geologist
for Ladd Petroleum Corp. and Exploration Geologist for Texaco, Inc. Mr.
Heinsius holds a Bachelor of Arts Degree in Geology from Hope College and a
Master of Science Degree in Geology from Western Michigan University.
Stacey D. Smethers has been Secretary of the Company since November 15,
------------------
1995. Ms. Smethers has been Executive Assistant to the President of ENPRO, Inc.
and Marketing Representative for the Company from August 1992 to present. Ms.
Smethers has more than seven years of varied experience in the oil and gas
industry. Her areas of concentration include marketing, administration, and
petroleum land management. Her prior titles include Executive Assistant,
Operations Analyst, Credit Analyst, and Secretary.
Each director is elected for a period of one year at the Company's annual
meeting of shareholders and serves until his successor is duly elected by the
shareholders. Directors who are not officers of the Company receive no cash
compensation for their services. Officers are elected by and serve at the will
of the Board of Directors. There are no family relationships between any
director, officer or person nominated or chosen to become a director or officer
and any other such person.
The Board of Directors has established a Compensation Committee whose
current members are Jeffrey T. Wilson and John R. Martinson. The Compensation
Committee reviews the Company's executive compensation policies and practices
and administers the Company's 1993 Incentive Stock Plan. See "Compensation
Committee Interlocks and Insider Participation." The Board of Directors of the
Company has not established an audit or any other committee. Directors of the
Company do not receive fees for their services as directors.
Section 16(a) Reporting Deficiencies
Section 16(a) of the Securities Exchange Act of 1934 ("Exchange Act")
requires the Company's directors and officers, and persons who own more than
10% of a registered class of the Company's equity securities, to file initial
reports of ownership on Form 3 and reports of changes in ownership on Forms 4
and 5 with the Securities and Exchange Commission (the "SEC") and the National
Association of Securities Dealers ("NASD"). Such persons are required by SEC
regulation to furnish the Company with copies of all Section 16(a) forms they
file.
Based upon a review of Form 3, 4 and 5 filings made by the Company's
officers and directors during the fiscal year ended July 31, 1996 under Section
16(a) of the Exchange Act, the Company believes that: (i) Jeffrey T. Wilson,
Chief Executive Officer, Chairman of the Board, President, and a Director of the
39
<PAGE>
Company, failed to timely file one statement of change in beneficial ownership
on Form 4, respecting one transaction involving his acquisition of options to
purchase common stock; (ii) John L. Cox, Chief Financial Officer, Vice
President, and a Director of the Company, failed to timely file one statement of
change in beneficial ownership on Form 4, respecting one transaction involving
his acquisition of options to purchase common stock; (iii) Malcolm W. Henley,
Vice President of Marketing, and a Director of the Company, failed to timely
file one statement of change in beneficial ownership on Form 4, respecting one
transaction involving his acquisition of options to purchase common stock; (iv)
Philip J. Wade, a Director of the Company until his resignation on October 8,
1996, failed to timely file two statements of change in beneficial ownership on
Form 4, respecting 12 transactions involving the disposition of common stock of
the Company; (v) Robert L. Hull, Vice President of Operations, failed to timely
file one statement of change in beneficial ownership on Form 4, respecting one
transaction involving his acquisition of options to purchase common stock; (vi)
John W. Heinsius, Vice President of Exploration, failed to timely file one
statement of change in beneficial ownership on Form 4, respecting one
transaction involving his acquisition of options to purchase common stock; (vii)
John R. Martinson, a Director of the Company, failed to timely file one
statement of change in beneficial ownership on Form 4, respecting one
transaction involving his acquisition of warrants to purchase common stock;
(viii) Stacey D. Smethers, Secretary of the Company, failed to timely file one
statement of change in beneficial ownership on Form 4, respecting one
transaction involving her acquisition of options to purchase common stock. All
of the referenced delinquent filings have now been made. Except as set forth
above, the Company believes that its current officers and directors have made
all requisite filings under Section 16(a) of the '34 Act on a timely basis.
Item 11. Executive Compensation.
The table below sets forth, in summary form, (1) the compensation paid, for
the years shown, to Jeffrey T. Wilson, the Company's Chairman of the Board,
President and Chief Executive Officer, and the four other highest-paid executive
officers of the Company serving as executive officers on July 31, 1996 (the
"Named Officers"); (2) the stock options and stock appreciation rights granted
to the Named Officers for the years shown; and (3) long-term payouts and other
compensation to the Named Officers for the years shown.
40
<PAGE>
Summary Compensation Table
<TABLE>
<CAPTION>
Long Term Compensation
----------------------------------------
Annual Compensation Awards Payouts
--------------------------------------------------------------------------------
Restricted Securities
Other Annual Stock Underlying LTIP All Other
Name and Principal Salary Bonus Compensation Awards Options/ Payouts Compensation
Position Year ($) ($) ($)(1) ($) SARs (#) ($) ($)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Jeffrey T. Wilson, 1996 100,800 --- --- --- 200,000(2) --- ---
Chairman, President 1995 97,200 200 --- --- 150,000(3) --- ---
and Chief Executive 1994 96,000 --- --- --- --- --- ---
Officer
John L. Cox, 1996 74,200 --- --- --- 150,000(2) --- ---
Vice President and 1995 55,500 200 --- --- 50,000(3) --- ---
Chief Financial Officer 1994 54,000 500 --- --- 25,000(4) --- ---
Malcolm W. Henley, 1996 91,000 --- --- --- 150,000(2) --- ---
Vice President of 1995 85,050 200 --- --- 50,000(3) --- ---
Marketing 1994 84,000 500 --- --- 100,000(5) --- ---
John W. Heinsius, 1996 90,400 --- --- --- 150,000(2) --- ---
Vice President of 1995 83,100 200 --- --- 50,000(3) --- ---
Exploration 1994 82,000 500 --- --- 50,000(4) --- ---
Robert L. Hull, 1996 90,400 --- --- --- 150,000(2) --- ---
Vice President of 1995 83,100 200 --- --- 50,000(3) --- ---
Operations 1994 82,000 500 --- --- 125,000(6) --- ---
Dewitt C. Shreve, 1996 9,300 --- --- --- --- --- ---
Executive Vice President 1995 72,900 --- --- --- 50,000(3)(7) --- ---
1994 72,000 --- --- --- 100,000(8)(7) --- ---
</TABLE>
- ------------------------------
(1) None of the executive officers listed received perquisites or other
personal benefits that exceeded the lesser of $50,000 or 10 percent of the
salary and bonus for such officers.
(2) Reflects options issued pursuant to the Company's 1993 Incentive Stock Plan
exercisable at any time until December 5, 2000, at an exercise price of
$0.4375 per share, the fair market value of the Company's common stock at
the time of grant. By agreement between the holder of the referenced
options and the Company, effective October 21, 1996, the referenced options
were terminated. See "Restricted Stock Grants".
(3) Reflects options issued pursuant to the Company's 1993 Incentive Stock Plan
exercisable at any time until August 1, 2000 at an exercise price of $0.47
per share, the fair market value of the Company's common stock on the date
of grant. By agreement between the holder of the referenced options and
the Company, effective October 21, 1996, the referenced options were
terminated. See "Restricted Stock Grants".
(4) Reflects options issued pursuant to the Company's 1993 Incentive Stock Plan
exercisable at any time until May 25, 1999 at an exercise price of $0.875
per share, the fair market value of the Company's common stock on the date
of grant. By agreement between the holder of the referenced options and
the Company, effective October 21, 1996, the referenced options were
terminated. See "Restricted Stock Grants".
(5) Reflects (a) options issued pursuant to the Company's 1993 Incentive Stock
Plan to purchase 50,000 shares of common stock exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant, and (b)
options issued pursuant to the Company's 1993 Incentive Stock Plan to
purchase 50,000 shares of common stock, issued in replacement of 50,000
non-qualified options issued to Mr. Henley in 1992, exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
41
<PAGE>
market value of the Company's common stock on the date of grant. By
agreement between Mr. Henley and the Company, effective October 21, 1996,
the referenced options were terminated. See "Restricted Stock Grants".
(6) Reflects (a) options issued pursuant to the Company's 1993 Incentive Stock
Plan to purchase 50,000 shares of common stock exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant, and (b)
options issued pursuant to the Company's 1993 Incentive Stock Plan to
purchase 75,000 shares of common stock, issued in replacement of 75,000
non-qualified options issued to Mr. Hull in 1992, exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant. By
agreement between Mr. Hull and the Company, effective October 21, 1996, the
referenced options were terminated. See "Restricted Stock Grants".
(7) Mr. Shreve resigned his positions as Executive Vice President and a
Director of the Company on January 31, 1996, and his options lapsed at that
time.
(8) Reflects (a) options issued pursuant to the Company's 1993 Incentive Stock
Plan to purchase 50,000 shares of common stock exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant, and (b)
options issued pursuant to the Company's 1993 Incentive Stock Plan to
purchase 50,000 shares of common stock, issued in replacement of 50,000
non-qualified options issued to Mr. Shreve in 1992, exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant.
Stock Options
The table below sets forth, in summary form, with respect to the Named
Officers, (i) the name of such officer receiving grants of stock options from
the Company during the fiscal year ended July 31, 1996; (ii) the number of
securities underlying the options; (iii) the percent such grant represents of
the total options granted to employees during the fiscal year ended July 31,
1996; (iv) the per-share exercise price of the options granted; (v) the
expiration date of the options; and(vi) the potential realizable value at
assumed annual rates of stock price appreciation.
Option Grants in Fiscal Year Ended July 31, 1996(1)
<TABLE>
<CAPTION>
Potential Realizable
Value at Assumed
Rates of Stock Price
Appreciation for
Individual Grants Option Term
- ----------------------------------------------------------------------------------- ----------------------
Percent of
Number of Total
Securities Options/SARS
Underlying Granted to Exercise or
Options/SARS Employees in Base Price Expiration
Name Granted (#) Fiscal Year ($/Share) Date 5% ($) 10% ($)
- ---------------------- ------------ ----------------- ----------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Jeffrey T. Wilson 200,000 20.77% $0.4375 12/05/2000 $111,676 $140,920
John L. Cox 150,000 15.58% $0.4375 12/05/2000 $ 83,756 $105,690
Malcolm W. Henley 150,000 15.58% $0.4375 12/05/2000 $ 83,756 $105,690
John W. Heinsius 150,000 15.58% $0.4375 12/05/2000 $ 83,756 $105,690
Robert L. Hull 150,000 15.58% $0.4375 12/05/2000 $ 83,756 $105,690
Dewitt C. Shreve(2) --- --- --- --- --- ---
- -----------------------------------
</TABLE>
(1) By agreement between each of the individuals, other than Dewitt C. Shreve,
set forth in the table and the Company, effective October 21, 1996 the
referenced options were terminated. See
42
<PAGE>
"Restricted Stock Grants."
(2) Mr. Shreve resigned his positions as Executive Vice President and Director
of the Company on January 31, 1996 and his options lapsed at that time.
During the year ended July 31, 1996 (i) no restricted stock awards were
granted, (ii) other than as set forth above, no stock options or stock
appreciation rights were granted, (iii) no options or stock appreciation rights
were exercised, and (iv) no awards under any long-term incentive plan were made
to any of the Named Officers.
The following table sets forth information relating to the exercises of
stock options by each of the Company's Named Officers during the year ended July
31, 1996 and the value of unexercised stock options as of July 31, 1996.
Aggregated Option Exercises in the Fiscal
Year Ended July 31, 1996 and
July 31, 1996 Option Values(1)
<TABLE>
<CAPTION>
Option Exercises
During Year
Ended July 31, 1996 Number of Securities
---------------------
Number of Underlying Unexercised Value of Unexercised
Shares Options at In-the-Money Options
Acquired Value July 31, 1996 at July 31, 1996
-------------------------- --------------------------
Name on Exercise Realized Unexercisable Exercisable Unexercisable Exercisable
---- ----------- -------- ------------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Jeffrey T. Wilson -- $ -- --- 350,000 $ --- $ ---
John L. Cox -- $ -- --- 225,000 --- ---
Malcolm W. Henley -- -- --- 300,000 --- ---
John W. Heinsius -- -- --- 250,000 --- --
Robert L. Hull -- -- --- 325,000 --- --
Dewitt C. Shreve (2) -- -- --- --- --- --
- ---------------------------------
</TABLE>
(1) By agreement between each of the individuals, other than Dewitt C. Shreve,
set forth in the table and the Company, effective October 21, 1996 the
referenced options were terminated. See "Restricted Stock Grants."
(2) Mr. Shreve resigned his positions as Executive Vice President and Director
of the Company on January 31, 1996 and his options to purchase 150,000
shares lapsed at that time.
The following table sets forth information relating to the repricing of
stock options held by any executive officer.
43
<PAGE>
Option Repricing Table
<TABLE>
<CAPTION>
Market
Number of Price
Securities of Exercise Length of Original
Underlying Stock Price at New Option Term
Date of Repriced at Time Time of Exercise Remaining at Date
Name and Position Repricing Options of Repricing Repricing Price of Repricing
- ----------------- --------- ---------- ------------ --------- -------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Malcolm W. Henley, May 24, 50,000 $0.91 $2.47 $.875 3 years, 7 months
Vice President of 1994
Marketing (1)
Robert L. Hull, May 24, 25,000 $0.91 $2.47 $.875 3 years, 7 months
Vice President 1994 50,000 $0.91 $ .85 $.875 1 year, 8 months
of Operations (2)
Dewitt C. Shreve, May 24, 50,000 $0.91 $2.47 $.875 3 years, 7 months
Executive Vice 1994
President (3)
- ---------------------------------
</TABLE>
(1) Reflects options issued pursuant to the Company's 1993 Incentive Stock Plan
to purchase 50,000 shares of common stock, issued in replacement of 50,000
non-qualified options issued to Mr. Henley in 1992, exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant. By
agreement between Mr. Henley and the Company, effective October 21, 1996
the referenced options were terminated. See "Restated Stock Grants".
(2) Reflects options issued pursuant to the Company's 1993 Incentive Stock Plan
to purchase 75,000 shares of common stock, issued in replacement of 75,000
non-qualified options issued to Mr. Hull in 1992, exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant. By
agreement between the Mr. Hull and the Company, effective October 21, 1996
the referenced options were terminated. See "Restated Stock Grants".
(3) Reflects options issued pursuant to the Company's 1993 Incentive Stock Plan
to purchase 50,000 shares of common stock, issued in replacement of 50,000
non-qualified options issued to Mr. Shreve in 1992, exercisable at any time
until May 25, 1999 at an exercise price of $0.875 per share, the fair
market value of the Company's common stock on the date of grant. Mr. Shreve
resigned his positions as Executive Vice President and Director of the
Company on January 31, 1996 and his options lapsed at that time.
Incentive Stock Plan
The Board of Directors adopted the LaTex Resources, Inc. 1993 Incentive
Stock Plan (the "Plan") effective December 8, 1993 and the Shareholders approved
the Plan at the Company's Annual Meeting on June 2, 1994. The Plan is
administered by a Compensation Committee consisting of not less than three
members of the Board of Directors and a special committee appointed by the Board
of Directors, as necessary, consisting of not less than three members of the
Board, who are a "disinterested persons" within the meaning of Securities and
Exchange Commission ("SEC") Rule 16b-3, as in effect prior to August 1996, to
address decisions regarding participation by directors and executive officers.
The aggregate number of shares of the Company's common stock issuable under
the Plan is 2,000,000. The Plan authorizes the Committee to grant to key
employees options ("Options") to purchase the Company's common stock which may
be in the form of incentive stock options ("ISOs"), or in the form of non-
statutory options ("Non-Statutory Options"). Additionally, the Committee may
grant stock
44
<PAGE>
appreciation rights ("SARs") in connection with such Options. The term of each
Option shall be for such period as the Committee shall determine but no longer
than ten years from the date of grant or five years to an individual who is a
10% shareholder of the Company. The aggregate fair market value exercisable by
an individual optionee during any calendar year under all stock option plans of
the Company may not exceed $100,000. The exercise price per share for the
common stock covered by any Options shall be determined by the Committee,
provided that in the case of an ISO, the per share exercise price shall be not
less than the fair market value (or in the case of an ISO granted to an
individual who at the time is a 10% shareholder, 110% of the fair market value)
of one share of common stock.
The Plan additionally authorizes the Committee to grant restricted common
stock ("Restricted Stock") to key employees. The Committee may designate a
restriction period with respect to such shares of not less than one year but not
more than five years during which an employee will not be permitted to sell,
transfer, pledge or assign shares of Restricted Stock awarded to him provided,
that within such limitations, the Committee may provide for the lapse of such
restrictions where deemed appropriate.
Through July 31, 1996, the Company has granted ISOs under the Plan to
Messrs. Wilson, Cox, Henley, Heinsius, and Hull as described in the Summary
Compensation Table and the Option Grants Table above, for a total of 1,450,000
shares (excluding options for 150,000 shares granted to Mr. Shreve which lapsed
upon his resignation as an officer and Director of the Company on January 31,
1996), as well ISOs under the Plan to non-executive officer employees for a
total of 240,000 shares. By agreement between the holders of all outstanding
ISOs and the Company, effective October 21, 1996 all outstanding ISOs were
terminated. See "Restricted Stock Grants."
Restricted Stock Grants
Effective October 21, 1996, each holder of options granted under the
Company's 1993 Incentive Stock Plan agreed to terminate all options held and
received grants of restricted common stock of the Company ("Restricted Stock").
The following table sets forth options cancelled and shares of Restricted Stock
issued with respect to each of the Company's Named Officers and other employees
of the Company as a group.
<TABLE>
<CAPTION>
Shares of
Restricted Stock
Name of Option Holder Options Cancelled Granted
--------------------- ----------------- ----------------
<S> <C> <C>
Jeffrey T. Wilson 350,000 300,000
John Cox 225,000 225,000
Malcolm Henley 300,000 300,000
John Heinsius 250,000 250,000
Robert Hull 325,000 325,000
Dewitt Shreve(1) --- ---
Other Employees as a Group 240,000 290,000
--------- ---------
Total 1,690,000 1,690,000
========= =========
- ----------------
</TABLE>
(1) Mr. Shreve resigned his positions as Executive Vice President and Director
of the Company on January 31, 1996, and his options lapsed at that time.
The terms of the Restricted Stock provide that a holder may not sell,
transfer, or otherwise dispose of any shares of Restricted Stock as long as the
Company has the right to a forfeiture of the Restricted Stock. In the event
that a holder's employment with the Company shall terminate for any reason other
than death or total disability prior to the earlier of (a) February 1, 1997, or
(b) a Change in Control occurs with respect to the Company, the holder shall
immediately forfeit any right to the shares of Restricted Stock for which the
restrictions have not otherwise lapsed. For the purpose of the Restricted
Stock, a "Change in Control" will be deemed to have occurred with respect to the
Company if: (a) any person becomes the beneficial owner, directly or
indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company's then outstanding securities; (b)
individuals who constitute the Company's Board of Directors on the date of grant
of the Restricted Stock cease for any
45
<PAGE>
reason to constitute at least a majority thereof; (c) there is a merger or
consolidation of the Company in which the Company does not survive as an
independent company; or (d) the business of the Company is disposed of by the
Company pursuant to a partial or complete liquidation of the Company, a sale of
assets (including stock of a subsidiary) of the Company, or otherwise.
Compensation Committee Interlocks and Insider Participation
During the fiscal year ended July 31, 1996, Jeffrey T. Wilson, John R.
Martinson and Dennis G. Strauch served as members of the Compensation Committee
of the Board of Directors of the Company. Mr. Strauch resigned his position as
Director of the Company and member of the Compensation Committee on June 24,
1996. Mr. Wilson was, during the fiscal year, Chairman of the Board, President
and Chief Executive Officer of the Company. With respect to certain
relationships between the Company and Messrs. Wilson and Martinson, see "Item
13. Certain Relationships and Related Transactions."
During the last completed fiscal year, (i) no executive officer of the
Company served as a member of the Compensation Committee (or other board
committee performing equivalent functions or, in the absence of any such
committee, the entire board of directors) of another entity, one of whose
executive officers served on the Compensation Committee of the Company; (ii) no
executive officer of the Company served as a director of another entity, one of
who executive officers served on the Compensation Committee of the Company; and
(iii) no executive officer of the Company served as a member of the compensation
committee (or other board committee performing equivalent functions or, in the
absence of any such committee, the entire board of directors) of another entity,
one of whose executive officers served as a director of the Company.
Employment Agreements
The Company has no employment agreements with any of its officers or
employees. All officers of the Company devote substantially all their entire
business time and energies to the Company.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
As of October 25, 1996, the Company had 19,805,495 issued and outstanding
shares of common stock. The following table sets forth, as of October 25, 1996,
the number and percentage of shares of common stock of the Company owned
beneficially by (i) each director of the Company, (ii) each Named Officer of the
Company named in the Summary Compensation Table in Item 11 above, (iii) all
directors and executive officers of the Company as a group, and (iv) each person
known to the Company to own of record or beneficially more than 5% of the
Company's common stock. Except as otherwise indicated, the persons named in the
table have sole voting and investment power with respect to the shares
indicated. As of October 25, 1996, the Company had 502 holders of common stock
of record.
46
<PAGE>
<TABLE>
<CAPTION>
Name of Number of Shares
Beneficial Owner (1) Beneficially Owned Percent of Class (1)
-------------------- ------------------ --------------------
<S> <C> <C>
Jeffrey T. Wilson (2)(3) 4,135,000 20.9%
A. Dean Fuller 1,058,000 5.3%
Dewitt C. Shreve (4) 41,862 *
Malcolm W. Henley (2)(5) 510,000 2.6%
John R. Martinson (6) 536,000 2.6%
John W. Heinsius (2)(5) 271,500 1.4%
Robert L. Hull (2)(5) 325,000 1.6%
John L. Cox (2)(5) 230,500 1.2%
All Executive Officers and 5,597,000 28.3%
Directors as a group
(7 persons) (1)(7)
</TABLE>
- ------------------------------
* less than one percent.
(1) Based upon 19,805,495 issued and outstanding shares of common stock at
October 25, 1996. Shares of common stock which an individual has the right
to acquire within 60 days pursuant to the exercise of options, warrants, or
other convertible securities are deemed to be outstanding for the purpose
of computing the percentage ownership of such individual, but are not
deemed to be outstanding for the purpose of computing the percentage
ownership of any other person or group shown in the table.
(2) The mailing address of Messrs. Wilson, Henley, Heinsius, Hull and Cox is
4200 East Skelly Drive, Suite 1000, Tulsa, Oklahoma 74135.
(3) Includes 300,000 shares of Restricted Stock (See "Item 11. Executive
Compensation -- Restricted Stock Grants".) and excludes 300,000 shares held
by the Old National Bank in Evansville, Indiana, Trustee of the Jeffrey T.
and Annalee Wilson Irrevocable Family Trust for the benefit of the Wilson
children.
(4) The mailing address of Mr. Shreve is 2909 Cole Avenue, Suite 100, Dallas,
Texas 75204. Mr. Shreve resigned his positions as Executive Vice President
and a Director of the Company on January 31, 1996.
(5) Includes: (a) with respect to Mr. Henley, 300,000 shares of Restricted
Stock; (b) with respect to Mr. Heinsius, 250,000 shares of Restricted
Stock; (c) with respect to Mr. Hull, 325,000 shares of Restricted Stock;
and (d) with respect to Mr. Cox 225,000 shares of Restricted Stock. See
"Item 11. Executive Compensation -- Restricted Stock Grants".
(6) Includes presently exercisable warrants to purchase 436,000 shares held by
Wood Roberts, Inc., a corporation under the control of Mr. Martinson. The
mailing address of Mr. Martinson is Suite 210, 952 Echo Lane, Houston,
Texas, 77024.
(7) Excludes shares owned by Dewitt C. Shreve who resigned his positions as an
officer and Director of the Company on January 31, 1996.
With respect to the change in control of the Company which would result
upon completion of the proposed merger of the Company with Alliance Resources
Plc, see "Item 1. Business and Item 2. Properties -- Proposed Merger with
Alliance Resources Plc."
47
<PAGE>
Item 13. Certain Relationships and Related Transactions.
In connection with the sale by the Company of Panda Resources, Inc. in July
1993, the Company entered into separate agreements dated September 22, 1993 with
Philip J. Wade and Dean Fuller pursuant to which the Company and Messrs. Wade
and Fuller agreed to terminate their Non-Competition Agreements in exchange for
payment by the Company, on or before November 21, 1993, of $25,000 each to
Messrs. Wade and Fuller. In connection with the termination of the Non-
Competition Agreements, Jeffrey T. Wilson, Chairman, President and Chief
Executive Officer of the Company, assumed the indebtedness of Messrs. Wade and
Fuller to the Company in the principal amounts of $162,788 and $176,863,
respectively. At July 31, 1995, Mr. Wilson owed the Company a total of $339,651
pursuant to his assumption of this indebtedness. The Company has forgiven this
and additional indebtedness of Mr. Wilson to the Company as discussed below.
As of July 31, 1996 and subsequent to July 31, 1996, the Company agreed to
forgive the indebtedness of various officers, directors and employees to the
Company at July 31, 1996 as follows:
<TABLE>
<CAPTION>
Amount of Amount of
Indebtedness Indebtedness
Forgiven as of Forgiven Subsequent
July 31, 1996 to July 31, 1996
-------------- -------------------
<S> <C> <C>
Malcolm W. Henley $ 58,138 $ 37,655
Director and Vice President
of Marketing
Robert L. Hull $ --- $ 25,032
Vice President of Operations
Jeffrey T. Wilson $ 180,000 $321,483
Chairman of the Board and
Chief Executive Officer
Other Employees $ --- $ 2,550
---------- --------
Total $ 238,138 $386,720
========== ========
</TABLE>
A portion of the Company's oil and gas production is sold to its wholly-
owned subsidiary, ENPRO, under short-term contracts. The Company believes that
the terms of such contracts are fair and reasonable. The Company receives no
less from the sale of production to ENPRO than it would receive from sales to
unrelated third parties.
Since January 1993 the Company has leased a condominium located in Tulsa,
Oklahoma owned by Jeffrey T. Wilson, Chairman and Chief Executive Officer of the
Company. Under the terms of the oral lease arrangement, the Company pays Mr.
Wilson approximately $1,100 per month. The condominium is used by the Company
to house its out of town employees and guests. At July 31, 1996, the Company
owed Mr. Wilson approximately $8,000 for unpaid rent.
With respect to transactions between the Company and its affiliates,
Wexford Technology, Inc., and Imperial Petroleum, Inc., see "Item 1. Business
and Item 2. Properties - Other Business."
In connection with the proposed merger of the Company and Alliance
Resources Plc, the Company has entered into a Purchase Agreement with Imperial
Petroleum, Inc. ("Imperial") dated September 30, 1996 pursuant to which the
Company has agreed to sell to Imperial its interests in Imperial, Wexford
Technology, Inc., LaTex Resources International, Inc. and Phoenix Metals, Inc.
for 100,000 shares of the Company's common stock. Effective July 31, 1996 the
Company has written off its investments in Imperial, Wexford and LaTex Resources
International in the total amount of $5,139,642. Effective July 31, 1994 the
Company wrote off its investment in Phoenix Metals in the total amount of
$222,918. Imperial is controlled by Jeffrey T. Wilson, Chairman, President and
Chief Executive Officer of the Company. Mr. Wilson will contribute to Imperial
the 100,000 shares of the Company's common stock to be used by
48
<PAGE>
Imperial in acquiring the Company's interest in these companies. See "Item 1.
Business and Item 2. Properties - Exploration and Development" and "Other
Business" and "Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations -- Proposed Merger with Alliance Resources."
The Company was previously a party to an agreement with Wood Roberts, Inc.
("WRI"), a company controlled by John R. Martinson, a Director of the Company,
pursuant to which WRI acted as a financial advisor to the Company. Under the
agreement, the Company paid WRI a monthly fee of $4,000 and agreed to pay WRI a
success fee in connection with any merger or acquisition involving a party
introduced to the Company by WRI, and any financing facility arranged by WRI.
WRI assisted the Company in obtaining its credit facility with Bank of America.
Through July 31, 1996, the Company paid WRI cash retainer and success fees of
$55,000. In addition, the Company has issued to WRI six year common stock
purchase warrants to purchase 536,000 shares at $0.75 per share, of which WRI
has exercised and purchased 100,000 shares. As of March 4, 1996, the financial
advisor agreement between the Company and WRI was terminated by agreement of the
parties. By separate agreement the Company agreed to pay Wood Roberts a fee of
$240,000 upon completion of the proposed merger with Alliance Resources Plc and
a fee equal to 0.5% of the amount of any credit facility obtained by the Company
from a bank or other financial institution introduced to the Company by Wood
Roberts in order to refinance its indebtedness to Bank of America.
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.
(a) Financial Statements (included at Item 8. Financial Statements and
Supplemental Data):
Audited Financial Statements of LaTex Resources, Inc.
Independent Auditor's Report;
Consolidated Balance Sheets as of July 31, 1996 and 1995;
Consolidated Statements of Operations for the years ended
July 31, 1996, 1995, and 1994;
Consolidated Statements of Stockholders' Equity for the years
ended July 31, 1996, 1995 and 1994;
Consolidated Statements of Cash Flows for the years ended
July 31, 1996,
1995 and 1994; and
Notes to Consolidated Financial Statements.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed by the Company with the Securities and
Exchange Commission during the fourth quarter of the Company's fiscal year ended
July 31, 1996.
(c) Exhibits.
Exhibit
Number Description Page
- ------- ----------- ----
2.1 Agreement and Plan of Merger dated February 10, 1993,
among Panda Resources, Inc., LRI Acquisition Corp., and
the Registrant. (10)
2.2 Agreement and Plan of Merger dated March 31, 1995, among
Germany Oil Company, LRI Acquisition, Inc., and the
Registrant. (16)
2.3 Purchase and Sale Agreement dated March 30, 1995, between
ENRON Reserve Acquisition Corp., ENRON Capital & Trade
Resources Corp., LaTex/GOC Acquisition, Inc., and
the Registrant. (17)
49
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
3.1 Certificate of Incorporation of the Registrant. (1)
3.2 Bylaws of the Registrant. (2)
4.1 Form of common stock certificate of the Registrant (filed as
Exhibit 4.1 to the Registrant's Registration Statement on Form
S-1, Registration No. 33-49452 (the "Registration Statement")).
4.2 Form of common stock Purchase Warren of the Registrant (filed as
Exhibit 4.2 to the Registration Statement").
4.3 Form of Warrant Agreement (filed as Exhibit 4.3 to the
Registration Statement).
4.4 Form of Underwriters' Warrant (filed as Exhibit 4.4 to the
Registration Statement).
4.5 Certificate of Designation, Voting Powers and Rights of Series A
Convertible Preferred Stock of the Registrant. (18)
4.6 Certificate of Designation, Voting Powers and Rights of Series B
Senior Convertible Preferred Stock of the Registrant. (9)
9. Voting Trust Agreement. Not applicable.
10.1 Limited Partnership Agreement by and between LaTex Petroleum
Corporation, Mid-Continent Energy, Inc., and Panada Exploration,
Inc., dated October 26, 1990 (filed as Exhibit 10.1 to the
Registration Statement).
10.2 Letter Agreement by and between Elite Enterprises, Inc.,
Mid-Continent Energy, Inc., and Panada Exploration dated
December 12, 1990 (filed as Exhibit 10.2 to the Registration
Statement).
10.3 Loan Agreement for the principal amount of $100,000 by and
between LaTex Petroleum Corporation and First Texas Bank dated
January 23, 1991 (filed as Exhibit 10.3 to the Registration
Statement).
10.4 Lease Agreement by and between Sable Investment Corporation and
2800 East Skelly Drive, an Oklahoma partnership, dated March 20,
1991 (filed as Exhibit 10.4 to the Registration Statement).
10.5 Lease Agreement by and between Elite Enterprises, Inc. and 2800
East Skelly Drive, an Oklahoma partnership, dated March 20, 1991
(filed as Exhibit 10.5 to the Registration Statement).
10.6 Asset Sale Agreement for sale of oil and gas properties by and
between Latex Petroleum Corporation, Vintage Petroleum, Inc. and
American Exploration Company dated March 11, 1991 (filed as
Exhibit 10.6 to the Registration Statement).
10.7 General Partnership Agreement by and between Elite Enterprises,
Inc. and Panada Exploration, Inc., dated June 7, 1991 (filed as
Exhibit 10.7 to the Registration Statement).
10.8 Purchase Agreement for sale of oil and gas properties by and
between Latex Petroleum Corporation and Presidio Exploration,
Inc., dated September 25, 1991 (filed as Exhibit 10.8 to the
Registration Statement).
10.9 Promissory Note in the principal sum of $50,150 by and between
ENPRO, Inc., and Elite Enterprises, Inc., dated September 27,
1991 (filed as Exhibit 10.9 to the Registration Statement).
50
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.10 Lease Agreement by and between LBR Associates, an Indiana
limited partnership, and LaTex Petroleum Corporation dated
October 3, 1991 (filed as Exhibit 10.10 to the Registration
Statement).
10.11 Purchase Agreement for sale of oil and gas properties by and
between Latex Petroleum Corporation and Chevron U.S.A., Inc.,
dated October 23, 1991 (filed as Exhibit 10.11 to the
Registration Statement).
10.12 Assignment and Substitution Agreement by and between LaTex
Petroleum Corporation, Chevron U.S.A. and Fig Equity Exchange,
Inc., dated November 13, 1991 (exhibits omitted) (filed as
Exhibit 10.12 to the Registration Statement).
10.13 Participation Agreement by and between Geodyne Tunisia, Ltd.,
Panada Exploration, Inc., Latex Petroleum Corporation and
Concord International, Corp. dated November 21, 1991 (filed as
Exhibit 10.13 to the Registration Statement).
10.14 Purchase and Sale Agreement for sale of oil and gas properties
by and between Latex Petroleum Corporation and Sun Operating
Limited Partnership dated November 25, 1991 (filed as Exhibit
10.14 to the Registration Statement).
10.15 Purchase Agreement for sale of oil and gas properties by and
between Latex Petroleum Corporation and Presidio Exploration,
Inc., dated November 27, 1991. (3)
10.16 Letter Agreement for the sale of oil and gas properties by and
between Latex Petroleum Corporation and Sands Reserve Company
dated December 1, 1991 (filed as Exhibit 10.16 to the
Registration Statement).
10.17 Letter Agreement for the sale of oil and gas properties by and
between Latex Petroleum Corporation and Sands Reserve Company
dated December 1, 1991 (filed as Exhibit 10.17 to the
Registration Statement).
10.18 Letter Agreement by and between Latex Petroleum Corporation and
Sands Reserve Company dated December 2, 1991 (filed as Exhibit
10.18 to the Registration Statement).
10.19 Amendment to General Partnership Agreement by and between Elite
Enterprises Limited Partnership and Panada Exploration, Inc.,
dated December 16, 1991 (filed as Exhibit 10.19 to the
Registration Statement).
10.20 Agreement and Plan of Merger by and between Latex Petroleum
Corporation, Sable Investment Corporation and Elite Enterprises,
Inc., dated December 16, 1991. (4)
10.21 Agreement to Exchange Stock and Plan of Reorganization by and
between Video Science Technology, Inc., Jeffrey T. Wilson, James
G. Borem and Dee C. Shreve dated December 18, 1991. (5)
10.22 Letter Agreement by and between Trans-Exchange Corporation and
Jeffrey T. Wilson dated January 22, 1992 (filed as Exhibit 10.22
to the Registration Statement).
10.23 Second Amended and Restated Credit Agreement by and between
Latex Petroleum Corporation and Bank of Oklahoma, National
Association, effective January 31, 1992 (filed as Exhibit 10.23
to the Registration Statement).
51
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.24 Stock Option Agreement by and between the Registrant and Cynthia
A. Helms dated January 31, 1992 (filed as Exhibit 10.24 to the
Registration Statement).
10.25 Stock Option Agreement by and between the Registrant and Robert
Hull dated January 31, 1992 (filed as Exhibit 10.25 to the
Registration Statement).
10.26 Letter from Director General of Energy, Republic of Tunisia
dated February 11, 1992 (filed as Exhibit 10.26 to the
Registration Statement).
10.27 Agreement to Terminate the General Partnership Agreement of
Elite/Panada General Partnership by and between Latex Petroleum
Corporation, successor by merger to Elite Enterprises, Inc., and
Panada Exploration, Inc., dated February 13, 1992 (filed as
Exhibit 10.27 to the Registration Statement).
10.28 Purchase Agreement for sale of oil and gas properties by and
between the Registrant and Amax Exploration, Inc., dated
February 14, 1992. (6)
10.29 Agreement by and between Latex Petroleum Corporation and Virgle
Land-roth and Eclipse Petroleum Corporation dated as of February
17, 1992 (filed as Exhibit 10.29 to the Registration Statement).
10.30 Promissory Note in the principal sum of $50,200 by and between
ENPRO, Inc., and LaTex Petroleum Corporation dated February 28,
1992 (filed as Exhibit 10.30 to the Registration Statement).
10.31 Promissory Note in the principal sum of $600,000 by and between
Latex Petroleum Corporation and Bank of Oklahoma, National
Association, dated February 28, 1992 (filed as Exhibit 10.31 to
the Registration Statement).
10.32 Promissory Note in the principal sum of $3,280,000 by and
between Latex Petroleum Corporation and Bank of Oklahoma,
National Association, dated February 28, 1992 (filed as Exhibit
10.32 to the Registration Statement).
10.33 Restated Guaranty Agreement by and between Jeffrey T. Wilson and
Annalee C. Wilson and Bank of Oklahoma, National Association,
dated February 28, 1992 (filed as Exhibit 10.33 to the
Registration Statement).
10.34 Guaranty Agreement by and between Latex Petroleum Corporation
and David L. Wright dated March 4, 1992 (filed as Exhibit 10.34
to the Registration Statement).
10.35 Guaranty Agreement by and between Latex Petroleum Corporation
and Ed J. Wright dated March 4, 1992 (filed as Exhibit 10.35 to
the Registration Statement).
10.36 Amendment to Second Amended and Restated Credit Agreement by and
between Latex Petroleum Corporation and Bank of Oklahoma,
National Association, dated March 19, 1992, effective as of
February 28, 1992 (exhibits omitted). (Filed as Exhibit 10.36
to the Registration Statement).
10.37 Purchase and Sale Agreement for sale of oil and gas properties
by and between Latex Petroleum Corporation and American
Exploration Company dated March 20, 1992 (filed as Exhibit 10.37
to the Registration Statement).
10.38 Security Agreement by and between Latex Petroleum Corporation
and Phoenix Metals, Inc., dated March 27, 1992 (filed as Exhibit
10.38 to the Registration Statement).
52
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.39 Promissory Note in the principal sum of $10,000 by and between
LaTex Petroleum Corporation and Phoenix Metals, Inc., dated
March 27, 1992 (filed as Exhibit 10.39 to the Registration
Statement).
10.40 Security Agreement by and between the Registrant and Bank of
Oklahoma, National Association, dated March 30, 1992 (filed as
Exhibit 10.40 to the Registration Statement).
10.41 Letter of Intent to License Certain Equipment and Proprietary
Processes by and between the Registrant, Carlton B. Foster, and
Waste Conversion Corporation dated March 31, 1992 (filed as
Exhibit 10.41 to the Registration Statement).
10.42 Agreement and Plan of Merger by and between the Registrant and
Video Science Technology, Inc., dated April 16, 1992. (7)
10.43 Letter from LaTex Petroleum Corporation dated April 20, 1992, to
Brumbaugh & Fulton amending lease agreement (filed as Exhibit
10.43 to the Registration Statement).
10.44 Agreement to Exchange Stock by and between the Registrant and
ENPRO, Inc., dated April 21, 1992 (filed as Exhibit 10.44 to the
Registration Statement).
10.45 Purchase and Sale Agreement for sale of oil and gas properties
by and between LaTex Petroleum Corporation and TOTAL Minatome
Corporation dated April 27, 1992 (filed as Exhibit 10.45 to the
Registration Statement).
10.46 Letter Agreement for sale of stock by and between the Registrant
and Agri-Quest Mining, Inc., dated May 28, 1992 (filed as
Exhibit 10.46 to the Registration Statement).
10.47 Letter Agreement by and between Latex Petroleum Corporation and
TOTAL Minatome Corporation dated June 1, 1992 (filed as Exhibit
10.47 to the Registration Statement).
10.48 Loan Agreement in the principal sum of $200,000 by and between
LaTex Petroleum Corporation and First Texas Bank dated June 1,
1992 (filed as Exhibit 10.48 to the Registration Statement).
10.49 Guaranty by and between S. Mort Zimmerman and First Texas Bank
dated June 1, 1992 (filed as Exhibit 10.49 to the Registration
Statement).
10.50 Security Agreement by and between Trans-Exchange Corporation and
First Texas Bank dated June 1, 1992 (filed as Exhibit 10.50 to
the Registration Statement).
10.51 Owner's Consent to pledge by S. Mort Zimmerman for
Trans-Exchange Corporation dated June 1, 1992 (filed as Exhibit
10.51 to the Registration Statement).
10.52 Security Agreement by and between Gary S. Williky and First
Texas Bank dated June 1, 1992 (filed as Exhibit 10.52 to the
Registration Statement).
10.53 Owner's Consent to pledge by Gary S. Williky dated June 1, 1992
(filed as Exhibit 10.53 to the Registration Statement).
10.54 Promissory Note in the principal sum of $85,145.55 by and
between LaTex Petroleum Corporation and ENPRO, Inc., dated
June 1, 1992 (filed as Exhibit 10.54 to the Registration
Statement).
53
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.55 Employment Contract by and between ENPRO, Inc., and Malcolm W.
Henley dated June 1, 1992 (filed as Exhibit 10.55 to the
Registration Statement).
10.56 Letter from LaTex Petroleum Corporation dated June 2, 1992, to
Brumbaugh & Fulton amending lease agreements (filed as Exhibit
10.56 to the Registration Statement).
10.57 Letter Agreement by and between the LaTex Petroleum Corporation
and Ed Wright dated July 6, 1992 (filed as Exhibit 10.57 to the
Registration Statement).
10.58 Loan Agreement in the principal sum of $200,000 by and between
LaTex Petroleum Corporation and First Texas Bank dated August
28, 1992 (filed as Exhibit 10.58 to the Registration Statement).
10.59 Promissory Note in the principal sum of $249,351 from I.B.
Energy, Inc., to LaTex Petroleum Corporation dated June 1, 1992
(filed as Exhibit 10.59 to the Registration Statement).
10.60 Letter Agreement between LaTex Petroleum Corporation and I.B.
Energy, Inc., dated September 30, 1992 (filed as Exhibit 10.60
to the Registration Statement).
10.61 Form of Share Escrow Agreement between Jeffrey T. Wilson, James
G. Borem, the Registrant, and Bank of Oklahoma, National
Association (filed as Exhibit 10.61 to the Registration
Statement).
10.62 Agreement to Exchange Stock by and between the Registrant,
Wright & Wright, Inc., Ed J. Wright, David L. Wright, and
Phoenix Metals, Inc., dated September 24, 1992 (filed as Exhibit
10.62 to the Registrant's Annual Report on Form 10-K for the
fiscal year ended July 31, 1993 (the "1993 Form 10-K")).
10.63 Stock Purchase Agreement by and between the Herokas Foundation,
James C. Hadsell and Zaskia Siefert-Hadsell, Howard Finley and
the Registrant dated January 29, 1993 (filed as Exhibit 10.63 to
the 1993 Form 10-K).
10.64 Stock Subscription Agreement by and between J.R. Bothe &
Associates, Inc., and the Registrant dated January 29, 1993
(filed as Exhibit 10.64 to the 1993 Form 10-K).
10.65 Non-Competition Agreement dated February 10, 1993, between the
Registrant and Philip J. Wade. (11)
10.66 Non-Competition Agreement dated February 10, 1993, between the
Registrant and A. Dean Fuller. (12)
10.67 Registration Rights Agreement by and among the Registrant,
Philip J. Wade, A. Dean Fuller, Robert R. Firth, Mark E.
Repasky, Charles M. Kelley, Donald B. Pettine, and Steven L.
Wilson dated February 10, 1993 (filed as Exhibit 10.67 to the
1993 Form 10-K).
10.68 Stock Subscription Agreement by and between Joseph Shoaf, an
individual, and the Registrant dated March 25, 1993 (filed as
Exhibit 10.68 to the 1993 Form 10-K).
10.69 Purchase and Sale Agreement between Mobil Exploration &
Producing U.S., Inc., and Panada Exploration, Inc., dated as of
January 15, 1993 (filed as Exhibit 10.69 to the 1993 Form 10-K).
54
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.70 Purchase and Sale Agreement by and between AMAX Oil & Gas, Inc.,
and LaTex Petroleum Corporation dated March 16, 1993 (filed as
Exhibit 10.70 to the 1993 Form 10-K).
10.71 Loan Agreement among LaTex Petroleum Corporation, Panada
Exploration, Inc., Panda Resources, Inc., and First Interstate
Bank of Texas, N.A., dated April 15, 1993, together with
exhibits (filed as Exhibit 10.71 to the 1993 Form 10-K).
10.72 Stock Subscription Agreement by and between the Registrant and
Howard Finley dated May 10, 1993 (filed as Exhibit 10.72 to the
1993 Form 10-K).
10.73 Letter Agreement by and between Geodyne Resources, Inc., and the
Registrant dated November 27, 1992 (filed as Exhibit 10.73 to
the 1993 Form 10-K).
10.74 Letter Agreement by and between ARCO Tunisia, Inc., and Geodyne
Tunisia Ltd. dated April 2, 1993 (filed as Exhibit 10.74 to the
1993 Form 10-K).
10.75 Agreement by and between Geodyne Tunisia Ltd. and Warren
American Oil Company dated May 4, 1993 (filed as Exhibit 10.75
to the 1993 Form 10-K).
10.76 Operating Agreement among ARCO Tunisia, Inc., PICT Petroleum
(Tunisia) Limited, and Geodyne Tunisia Ltd. dated July 9, 1993,
but effective June 30, 1993 (filed as Exhibit 10.76 to the 1993
Form 10-K).
10.77 Letter Agreement by and between AMAX Oil and Gas, Inc., and
LaTex Petroleum Corporation dated May 6, 1993 (filed as Exhibit
10.77 to the 1993 Form 10-K).
10.78 Promissory Note in the principal sum of $254,288.35 by and
between LaTex Petroleum Corporation and AMAX Oil and Gas, Inc.,
dated May 6, 1993 (filed as Exhibit 10.78 to the 1993 Form 10-K).
10.79 Stock Purchase Agreement by and between Panda Resources, Inc.,
and Nuevo Liquids, Inc., dated as of July 16, 1993. (13)
10.80 Stock Purchase Agreement by and between the Registrant and Torch
Energy Marketing, Inc., dated July 26, 1993. (14)
10.81 Letter Agreement between the Registrant and Waste Conversion
Corporation dated August 3, 1993, as agreed to August 11, 1993
(filed as Exhibit 10.81 to the 1993 Form 10-K).
10.82 Agreement by and between the Registrant and Philip J. Wade dated
September 22, 1993 (filed as Exhibit 10.82 to the 1993
Form 10-K).
10.83 Agreement by and between the Registrant and A. Dean Fuller dated
September 22, 1993 (filed as Exhibit 10.83 to the 1993
Form 10-K).
10.84 Letter of LaTex Petroleum Corporation requesting consent of
First Interstate Bank of Texas, N.A., dated September 23, 1993,
together with consent of First Interstate Bank and exhibits
(filed as Exhibit 10.84 to the 1993 Form 10-K).
10.85 Stock Subscription Agreement by and between the Registrant and
Salaheddine Caid Essebsi dated October 8, 1993 (filed as Exhibit
10.85 to the 1993 Form 10-K).
10.86 Promissory Note in the principal sum of $25,000 by and between
Malcolm W. Henley and LaTex Petroleum Corporation dated
December 28, 1992 (filed as Exhibit 10.86 to the 1993
Form 10-K).
55
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.87 Promissory Note in the principal sum of $25,000 by and between
Dewitt C. Shreve and LaTex Petroleum Corporation dated March 15,
1993 (filed as Exhibit 10.87 to the 1993 Form 10-K).
10.88 Promissory Note in the principal sum of $29,089 by and between
Malcolm W. Henley and ENPRO, Inc., dated July 30, 1993, marked
"Paid" (filed as Exhibit 10.88 to the 1993 Form 10-K).
10.89 Promissory Note in the principal sum of $5,000 by and between
Malcolm W. Henley and ENPRO, Inc., dated September 28, 1993
(filed as Exhibit 10.89 to the 1993 Form 10-K).
10.90 Promissory Note in the principal sum of $250,000 by and between
LaTex Resources International, Inc., and James G. Borem dated
October 5, 1993 (filed as Exhibit 10.90 to the 1993 Form 10-K).
10.91 Promissory Note in the principal sum of $130,000 by and between
LaTex Resources International, Inc., and Dewitt C. Shreve dated
October 5, 1993 (filed as Exhibit 10.91 to the 1993 Form 10-K).
10.92 Promissory Note in the principal sum of $100,000 by and between
the Registrant and James G. Borem dated October 21, 1993 (filed
as Exhibit 10.92 to the 1993 Form 10-K).
10.93 Promissory Note in the principal sum of $30,000 by and between
LaTex Resources International, Inc., and Dewitt C. Shreve dated
February 2, 1994 (filed as Exhibit 10.73 to the Registrant's
Annual Report on Form 10-K for the fiscal year ended July 31,
1994 (the "1994 Form 10-K")).
10.94 Promissory Note in the principal sum of $50,000 by and between
LaTex Resources International, Inc., and James G. Borem dated
February 2, 1994 (filed as Exhibit 10.94 to the 1994 Form 10-K).
10.95 Promissory Note in the principal sum of $50,000 by and between
the Registrant and James G. Borem dated February 15, 1994 (filed
as Exhibit 10.95 to the 1994 Form 10-K).
10.96 Letter Agreement by and between LaTex Petroleum Corporation and
Petroleum Discovery Systems, Inc., dated December 2, 1992, as
agreed to December 3, 1992 (filed as Exhibit 10.96 to the 1994
Form 10-K).
10.97 Letter Agreement by and between the Registrant and J.R. Bothe &
Associates, Inc., dated December 23, 1992 (filed as Exhibit 10.
97 to the 1994 Form 10-K).
10.98 Letter Agreement by and between LaTex Petroleum Corporation and
Gulf Russia Ltd. dated December 27, 1992 (filed as Exhibit 10.98
to the 1994 Form 10-K).
10.99 Letter Agreement by and between the Registrant and Premier
Capital Ltd. dated January 19, 1993, as agreed to January 29,
1993 (filed as Exhibit 10.99 to the 1994 Form 10-K).
10.100 Agreement and Plan of Merger by and among the Registrant, MOE
Acquisition, Inc., Waste Conversion Corp., and Joseph W. Conerly
dated November 17, 1993 (filed as Exhibit 10.100 to the 1994
Form 10-K).
10.101 1993 Incentive Stock Plan, effective December 8, 1993 (filed as
Exhibit 10.101 to the 1994 Form 10-K).
56
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
10.102 First Amendment to Loan Agreement among LaTex Petroleum
Corporation, Panada Exploration, Inc., and First Interstate Bank
of Texas, N.A., dated October 1, 1993 (exhibits omitted) (filed
as Exhibit 10.102 to the 1994 Form 10-K).
10.103 Second Amendment to Loan Agreement by and between LaTex
Petroleum Corporation and First Interstate Bank of Texas, N.A.,
dated January 18, 1994 (exhibits omitted) (filed as
Exhibit 10.103 to the 1994 Form 10-K).
10.104 Third Amendment to Loan Agreement by and between LaTex Petroleum
Corporation and First Interstate Bank of Texas, N.A., dated
July 26, 1994, (filed without exhibits) (filed as Exhibit 10.104
to the 1994 Form 10-K).
10.105 Purchase and Sale Agreement by and among LaTex Petroleum
Corporation, LoIn Energy, Inc., and Swift Energy Company dated
as of January 14, 1994. (15)
10.106 Offshore Securities Subscription Agreement by and between the
Registrant and Brentwood Financial Ltd. dated January 28, 1994
(filed as Exhibit 10.106 to the 1994 Form 10-K).
10.107 Offshore Securities Subscription Agreement by and between the
Registrant and Investment Development Corporation dated January
28, 1994 (filed as Exhibit 10.107 to the 1994 Form 10-K).
10.108 Offshore Securities Subscription Agreement by and between the
Registrant and Gilford Manor Ltd. dated January 28, 1994 (filed
as Exhibit 10.108 to the 1994 Form 10-K).
10.109 Offshore Securities Subscription Agreement by and between the
Registrant and Tesoma Overseas, Inc., dated January 28, 1994
(filed as Exhibit 10.109 to the 1994 Form 10-K).
10.110 Warrant Certificate for purchase of the Registrant's common
stock issued to Baytree Associates, Inc., dated January 26, 1994
(filed as Exhibit 10.110 to the 1994 Form 10-K).
10.111 Purchase and Sale Agreement by and between LaTex Petroleum
Corporation and Confed Oil Incorporated dated August 10, 1994
(filed as Exhibit 10.111 to the 1994 Form 10-K).
10.112 Credit Agreement dated as of March 31, 1995, among Bank of
America National Trust and Savings Association, LaTex Petroleum
Corporation, LaTex/GOC Acquisition, Inc., and LRI Acquisition,
Inc. (20)
10.113 Amended and Restated Credit Agreement dated as of October 20,
1995, among Bank of America National Trust and Savings
Association, LaTex Petroleum Corporation, LaTex/GOC Acquisition,
Inc., and Germany Oil Company (formerly known as LRI
Acquisition, Inc.) (filed as Exhibit 10.113 to the Registrant's
Annual Report on Form 10-K for the fiscal year ended July 31,
1995 (the "1995 Form 10-K")).
*10.114 Amendment No. 1 to Amended and Restated Credit Agreement dated
December 29, 1995, among Bank of America National Trust and
Savings Association, LaTex Petroleum Corporation, LaTex/GOC
Acquisition, Inc., and Germany Oil Company (formerly known as
LRI Acquisition, Inc.).
57
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
*10.115 Amendment No. 2 to Amended and Restated Credit Agreement dated
August 16, 1996, among Bank of America National Trust and
Savings Association, LaTex Petroleum Corporation, LaTex/GOC
Acquisition, Inc., and Germany Oil Company (formerly known as
LRI Acquisition, Inc.).
*10.116 Forbearance Agreement dated July 25, 1996, among Bank of America
National Trust and Savings Association, LaTex Petroleum
Corporation, LaTex/GOC Acquisition, Inc., Germany Oil Company
(formerly known as LRI Acquisition, Inc.), Enpro, Inc., and the
Registrant.
*10.117 Agreement and Plan of Merger dated August 12, 1996, among
Alliance Resources Plc, Alliance Resources (Delaware), Inc., and
the Registrant.
*10.118 Purchase Agreement dated September 30, 1996, between the
Registrant and Imperial Petroleum, Inc.
*10.119 Letter Agreement dated November 27, 1995, among Rauscher Pierce
& Clark, Inc., Rauscher Pierce & Clark Limited, and the
Registrant.
*10.120 Letter Agreement dated April 23, 1996, between Wood Roberts,
LLC, and the Registrant.
*10.121 Letter Agreement dated July 22, 1996, between Wood Roberts, LLC,
and the Registrant.
*10.122 Letter Agreement dated July 22, 1996, between Wood Roberts, LLC,
and the Registrant.
*10.123 Settlement Agreement dated as of December 7, 1995, among Torch
Energy Marketing, Inc., Nuevo Liquids, Inc., Panda Resources,
Inc., Wilson Tucker & Associates, Steve Wilson, an individual,
and the Registrant.
*10.124 Settlement Agreement dated as of June 6, 1996, between Northern
Natural Gas Company and the Registrant.
*10.125 Letter Agreement dated November 8, 1996 between Rauscher, Pierce
& Clark and the Registrant.
*10.126 First Amendment to Forbearance Agreement dated October 15, 1996
among Bank of America National Trust and Savings Association,
LaTex Petroleum Corporation, LaTex/GOC Acquisition, Inc.,
Germany Oil Company (formerly known as LRI Acquisition, Inc.),
ENPRO, Inc. and the Registrant.
11 Statement re: computation of per share earnings. Not applicable.
12 Statement re: computation of ratios. Not applicable.
13 Annual Report to security holders, Form 10-Q, or quarterly
report to security holders. Not applicable.
16.1 Letter of Registrant dated November 1, 1991 informing Lane,
Gorman, Trubitt and Company of change in certifying accountants
to Jackson, Brophy and Company. (8)
16.2 Letter of Registrant's counsel dated April 10, 1992 informing
Jackson, Brophy and Company of change in certifying accountants
to Briscoe and Robinson Co. (9)
18 Letter re: change in accounting principles. Not applicable.
58
<PAGE>
Exhibit
Number Description Page
- ------ ----------- ----
21 Subsidiaries of the Registrant (filed as Exhibit 21 to the 1995
Form 10-K).
22 Published report regarding matters submitted to vote of security
holders. Not applicable.
*23.1 Consent of Briscoe & Burke
*23.2 Consent of Lee Keeling and Associates, Inc.
24 Power of Attorney. Not applicable.
27 Financial Data Schedule. Not applicable.
28 Information from reports furnished to state insurance
authorities. Not applicable.
99.1 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated January 1, 1991, regarding oil and gas reserves of the
Registrant (filed as Exhibit 28.1 to the Registration Statement).
99.2 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated July 31, 1991, regarding oil and gas reserves of the
Registrant (filed as Exhibit 28.2 to the Registration Statement).
99.3 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated January 1, 1992, regarding oil and gas reserves of the
Registrant (filed as Exhibit 28.3 to the Registration Statement).
99.4 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated July 31, 1992, regarding oil and gas reserves of the
Registrant (filed as Exhibit 28.4 to the Registration Statement).
99.5 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated September 7, 1993; regarding oil and gas reserves of the
Registrant (filed as Exhibit 99.5 to the 1993 Form 10-K).
99.6 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated October 21, 1994, regarding oil and gas reserves of the
Registrant (filed as Exhibit 99.6 to the 1994 Form 10-K).
99.7 Estimates of Reserves by Netherland, Sewell & Associates, Inc.,
dated November 3, 1995, regarding oil and gas reserves of the
Registrant as of July 31, 1995 (filed as Exhibit 99.7 to the
1995 Form 10-K).
*99.8 Estimates of reserves by Lee Keeling and Associates, Inc. dated
October 30, 1996 regarding oil and gas reserves of the
Registrant as of July 31, 1996.
- ------------------------------
* Filed herewith
(1) Incorporated herein by reference to Exhibit 4.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
June 16, 1992.
(2) Incorporated herein by reference to Exhibit 4.2 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
June 16, 1992.
(3) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
February 18, 1992.
(4) Incorporated herein by reference to Exhibit 2.2 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
January 10, 1992.
59
<PAGE>
(5) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
January 10, 1992.
(6) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
May 1, 1992.
(7) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
June 16, 1992.
(8) Incorporated herein by reference to Exhibit 16.1 to the Registrant's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on December 11, 1991, and subsequently amended under cover of
Form 8 Amendment No. 2 filed with the Commission on May 1, 1992, and Form 8
Amendment No. 3 filed with the Commission on May 26, 1992.
(9) Incorporated herein by reference to Exhibit 16.1 to the Registrant's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on April 23, 1992, and subsequently amended under cover of Form
8 filed with the Commission on May 26, 1992.
(10) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
February 24, 1993, and subsequently amended under cover of Form 8 Amendment
No. 1 filed with the Commission on April 26, 1993, and Form 8 Amendment No.
2 filed with the Commission on May 20, 1993.
(11) Incorporated herein by reference to Exhibit 28.1 to the Registrant's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on February 24, 1993, and subsequently amended under cover of
Form 8 Amendment No. 1 filed with the Commission on April 26, 1993, and
Form 8 Amendment No. 2 filed with the Commission on May 20, 1993.
(12) Incorporated herein by reference to Exhibit 28.2 to the Registrant's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on February 24, 1993, and subsequently amended under cover of
Form 8 Amendment No. 1 filed with the Commission on April 26, 1993, and
Form 8 Amendment No. 2 filed with the Commission on May 20, 1993.
(13) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
August 9, 1993, and subsequently amended under cover of Form 8 Amendment
No. 1 filed with the Commission on October 12, 1993.
(14) Incorporated herein by reference to Exhibit 2.2 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
August 9, 1993, and subsequently amended under cover of Form 8 Amendment
No. 1 filed with the Commission on October 12, 1993.
(15) Incorporated herein by reference to Exhibit 2.1 to the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
February 10, 1994.
(16) Incorporated herein by reference to Exhibit 2.1 of the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
April 12, 1995.
(17) Incorporated herein by reference to Exhibit 2.2 of the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
April 12, 1995.
(18) Incorporated herein by reference to Exhibit 4.1 of the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
April 12, 1995.
(19) Incorporated herein by reference to Exhibit 4.2 of the Registrant's Current
Report on Form 8-K filed with the Securities and Exchange Commission on
April 12, 1995.
(20) Incorporated herein by reference to Exhibit 28.1 of the Registrant's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on April 12, 1995.
60
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
LaTex Resources, Inc.
Date: November 29, 1996 /s/ Jeffrey T. Wilson
-----------------------------------------
Jeffrey T. Wilson, President
and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1934, this Report has
been signed below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated:
Signature Title Date
- --------- ----- ----
/s/ Jeffrey T. Wilson Director, Chairman of the November 29, 1996
- ------------------------ Board, President and Chief
Jeffrey T. Wilson Executive Officer
(Principal Executive Officer)
/s/ John L. Cox Director, Vice President and November 29, 1996
- ------------------------ Chief Financial Officer
John L. Cox
/s/ Malcolm W. Henley Director and Vice November 29, 1996
- ------------------------ President of Marketing
Malcolm W. Henley
- -------------------- Director November ___, 1996
John R. Martinson
61
<PAGE>
EXHIBIT 10.114
AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDMENT NO. 1 TO THE AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment No. 1"), dated as of December 29, 1995, among LATEX PETROLEUM
- ----------------
CORPORATION, an Oklahoma corporation ("LPC"), LATEX/GOC ACQUISITION, INC., a
---
Delaware corporation ("GOCA"), GERMANY OIL COMPANY, a Delaware corporation,
----
formerly known as LRI Acquisition, Inc. ("New GOC") (collectively, the
-------
"Borrowers" and individually, a "Borrower"), and BANK OF AMERICA NATIONAL TRUST
--------- --------
AND SAVINGS ASSOCIATION, a national savings association (the "Lender").
------
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, the Borrowers and the Lender are parties to the Amended and
Restated Credit Agreement, dated as of October 20, 1995 (hereinafter referred to
as the "Existing Credit Agreement"); and
-------------------------
WHEREAS, the Borrowers have requested that certain amendments be made to
the Existing Credit Agreement; and
WHEREAS, the Lender is willing to make certain amendments to the Existing
Credit Agreement on the terms and conditions hereinafter provided;
NOW, therefore, in consideration of the agreements herein contained, the
parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
-----------
SECTION 1.1. Certain Definitions. The following terms
-------------------
(whether or not underscored) when used in this Amendment No. 1 shall have the
following meanings:
"Amended Credit Agreement" means the Existing Credit Agreement as amended
------------------------
by this Amendment No. 1.
"Amendment No, 1 Effective Date" has the meaning provided in Section 6.1.
------------------------------
SECTION 1.2. Other Definitions. Unless otherwise defined or the context
-----------------
otherwise requires, terms used herein (including in the
<PAGE>
preamble and recitals hereto) have the meanings provided for in the Existing
Credit Agreement.
ARTICLE II
AMENDMENTS TO
-------------
EXISTING CREDIT AGREEMENT
-------------------------
Effective on the Amendment No. 1 Effective Date, the Existing Credit
Agreement is amended in accordance with the terms of this Article II; except as
----------
so amended, the Existing Credit Agreement shall continue to remain in all
respects in full force and effect.
SECTION 2.1. Amendment to Section 1.1.
------------------------
2.1.1. The definition of "Tranche C Commitment Amount" is hereby amended
in its entirety as follows:
"'Tranche C Commitment Amount' means $5,400,000, as reduced from time
---------------------------
to time pursuant to the provisions of Section 2.2. $300,000 of the Tranche
-----------
C Commitment Amount shall be made available by the Lender to the Borrowers
as a Tranche C Revolving Loan pursuant to Section 2.1.7."
-------------
2.1.2. There shall be added to Section 1.1 of the Existing Credit
-----------
Agreement new definitions, in appropriate alphabetical sequence, reading in
their entirety as follows:
"'Tranche C Revolving Loan' means each Tranche C Loan made by the
------------------------
Lender to the Borrowers from time to time pursuant to its Tranche C
Commitment in accordance with Section 2.1.7."
-------------
"'Tranche C Revolving Loan Maturity Date' means, with respect to any
--------------------------------------
Tranche C Revolving Loan, the 60th day after the borrowing of such Tranche
C Revolving Loan."
"'Revolving Note' means the revolving promissory note of the Borrowers
--------------
payable to the order of the Lender, in the form of Exhibit A-2 hereto (as
-----------
such promissory note may be amended, endorsed or otherwise modified from
time to time). The Revolving Note is one of the Notes."
SECTION 2.2. Amendments to Section 2.1.
-------------------------
2.2.1. The reference to Article V in Section 2.1 of the Existing Credit
--------- -----------
Agreement shall be changed to Article VI.
----------
-2-
<PAGE>
2.2.2. There shall be added to the Existing Credit Agreement, immediately
after Section 2.1.6., a new Section reading in its entirely as follows:
-------------
"SECTION 2.1.7. Tranche C Revolving Loans. On the terms and subject to
----------------------------------------
the conditions of this Agreement (including Article VI), the Lender agrees
----------
to make loans ("Tranche C Revolving Loans") to the Borrowers equal to the
-------------------------
aggregate amount of the Tranche C Revolving Loan requested by the Borrowers
to be made pursuant to the Tranche C Commitment on such day described in
this Section 2.1.7. On the terms and subject to the conditions hereof, the
-------------
Borrowers may, from time to time borrow, prepay and reborrow Tranche C
Revolving Loans. Any reborrowing of the Tranche C Revolving Loan must be at
least seven (7) days from and after the date of payment in full of all
principal and interest attributable to all outstanding Tranche C Revolving
Loans. From time to time on any Business Day during the period from and
after the Effective Date to but not including the earlier to occur of (x)
the Tranche C Availability Termination Date, and (y) any Commitment
Termination Date, the Lender will make Tranche C Revolving Loans to the
Borrowers equal to the amount of the Tranche C Revolving Loans requested by
the Borrowers to be made on such day in the applicable Borrowing Request
therefor."
SECTION 2.3. Amendments to Section 3.1.1.
---------------------------
2.3.1. Section 3.1.1. of the Existing Credit Agreement is amended to add
-------------
immediately before the first sentence of Section 3.1.1. the following sentence:
-------------
"The Borrower shall repay in full the unpaid principal amount of each
Tranche C Revolving Loan, and each Tranche C Revolving Loan shall mature,
on the Tranche C Revolving Loan Maturity Date applicable thereto."
SECTION 2.4. Amendment to Section 6.2.
------------------------
2.4.1. Section 6.2. of the Existing Credit Agreement is amended by
-----------
inserting the words "(other than a Tranche C Revolving Loan)" after the words
"Tranche C Loan."
SECTION 2.5. Amendment to Section 6.3.
------------------------
2.5.1. Section 6.3. of the Existing Credit Agreement shall be renumbered
-----------
as Section 6.4. (and the reference therein to such Section shall be changed to
-----------
Section 6.4.) and the following shall be inserted immediately prior thereto as a
- -----------
new Section 6.3.:
-----------
-3-
<PAGE>
"SECTION 6.3. Tranche C Revolving Loans. The obligation of the Lender to
-------------------------
make any Tranche C Revolving Loan shall be subject to the satisfaction of
each of the conditions precedent set forth in this Section 6.3.
-----------
Section 6.3.1. Delivery of Notes. The Lender shall have received the
-----------------
Revolving Note duly executed by the Borrowers.
Section 6.3.2. Approval of the Lender. The Lender shall be satisfied, in
----------------------
its sole discretion, with the proposed use of the proceeds of such loan and
with the assets, business, properties, condition (financial or otherwise),
prospects and results of operations of the Borrowers and the Obligors."
2.5.2. Section 6.3.1. of the Existing Credit Agreement shall be renumbered
-------------
as Section 6.4.1.
-------------
2.5.3. Section 6.3.2. of the Existing Credit Agreement shall be renumbered
-------------
as Section 6.4.2. and the reference therein to Section 6.3.1. shall be changed
------------- -------------
to Section 6.4.1.
-------------
2.5.4. Section 6.3.3. of the Existing Credit Agreement shall be renumbered
-------------
as Section 6.4.3.
-------------
SECTION 2.6. Amendments to Section 8.2.
-------------------------
2.6.1. Clause (b) of Section 8.2.4. of the Existing Credit Agreement is
---------- -------------
amended to read in its entirety as follows:
"(b) [intentionally omitted];
SECTION 2.7. Amendments to Certain Exhibits.
------------------------------
2.7.1. Exhibit A of the Existing Credit Agreement is renumbered as
---------
Exhibit A-1 and the form of Revolving Note shown in Exhibit A-2 hereto is
- ----------- -----------
inserted behind Exhibit A-1 as Exhibit A-2.
----------- -----------
2.7.2. Exhibit C-1 of the Existing Credit Agreement is deleted and a new
-----------
Exhibit C-1 in the form of Borrowing Request shown in Exhibit C-1 hereto is
- ----------- -----------
inserted in its place.
ARTICLE III
OTHER AGREEMENTS CONCERNING
---------------------------
EXISTING CREDIT AGREEMENT
-------------------------
SECTION 3.1. Temporary Waiver of Compliance with Certain Financial
-----------------------------------------------------
Covenants. The Lender hereby waives until January 31, 1996
- ---------
-4-
<PAGE>
1996 the Borrowers' compliance with Sections 8.2.4. (c) and 8.2.4. (d) of the
------------------- ----------
Existing Credit Agreement insofar as such sections require the Borrowers to
maintain a Current Ratio of not less than 1.0:1.0 and Working Capital of not
less than $500,000.
SECTION 3.2. Temporary Waiver of Judgments Default. The Lender hereby
-------------------------------------
waives until January 31, 1996, its right to declare all or any portion of the
outstanding principal amount of the Loans and other Obligations due and payable
and/or the Commitments to be terminated pursuant to Section 9.3 of the Existing
-----------
Credit Agreement as the result of an Event of Default under Section 9.1.6. of
--------------
the Existing Credit Agreement pertaining solely to the judgments entered against
New GOC as described on Schedule 1 hereto.
----------
The waivers set forth above are subject to the conditions and limitations
set forth herein and shall be applicable only for the purposes, and the periods,
set forth herein, and not for any other purposes or with respect to any
subsequent period. Except as provided herein, the waivers contained herein shall
not apply to any Default or Event of Default, regardless of whether such Default
or Event of Default is prior or subsequent to any of the matters referred to
herein or is of the same or a different type as any of the matters referred to
herein.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
------------------------------
In order to induce the Lender to make the amendments provided for in
Article II and to make the waivers as provided for in Article III, the Borrowers
- ---------- -----------
hereby (a) represent and warrant, that each of the representations and
warranties contained in the Existing Credit Agreement and in the other Loan
Documents is true and correct as of the date hereof as if made on the date
hereof (except, if any such representation and warranty relates to an earlier
date, such representation and warranty shall be true and correct in all material
respects as of such earlier date) and, immediately after giving effect to the
provisions of this Amendment No. 1, no Default has occurred and is continuing
and (b) agree that the incorrectness in any material respect of any
representation and warranty contained in the preceding clause (a) shall
----------
constitute an immediate Event of Default.
ARTICLE V
ACKNOWLEDGEMENT OF GUARANTORS
-----------------------------
By executing the acknowledgement to this Amendment No. 1, each Guarantor of
the Borrowers hereby confirms and agrees that the Guaranty and each Security
Agreement to which it is a party is, and shall continue to be, in full force and
effect and is hereby
-5-
<PAGE>
ratified and confirmed in all respects, except that, on and after the Amendment
No. 1 Effective Date, each reference therein to the "Credit Agreement",
"thereunder", "thereof" or words of like import referring to the Existing Credit
Agreement, shall mean and refer to the Existing Credit Agreement after giving
effect to this Amendment No 1.
ARTICLE VI
CONDITIONS TO EFFECTIVENESS
---------------------------
SECTION 6.1. Effective Date. This Amendment No. 1 shall become effective
--------------
on December 29, 1995, or, if later, the date (herein called the "Amendment No. 1
---------------
Effective Date") when the conditions set forth in this Section 6.1 have been
- -------------- -----------
satisfied.
SECTION 6.1.1. Execution of Counterparts. The Lender shall have received
-------------------------
counterparts of this Amendment No. 1 duly executed and delivered on behalf of
the Borrowers, the Guarantors, and the Lender.
SECTION 6.1.2. Resolutions and Legal Opinion. The Lender shall have
-----------------------------
received (a) resolutions of the Board of Directors of each Borrower authorizing
the execution, delivery and performance of Amendment No. 1 and (b) a
satisfactory legal opinion from Pray, Walker, Jackman and Marlar (or other
counsel satisfactory to the Lender) as to the due authorization, execution, and
delivery of this Amendment No. 1 by, and good standing of, each Borrower and
each Guarantor and the enforceability of this Amendment No. 1 against the
Borrowers and the Guarantors.
SECTION 6.1.3. Legal Details, etc. All documents executed or submitted
------------------
pursuant hereto, and all legal matters incident thereto, shall be satisfactory
in form and substance to the Lender and their counsel.
SECTION 6.2. Expiration. If all of the conditions set forth in
----------
Section 6.1 hereof shall not have been satisfied on or prior to December 31,
- -----------
1995, the agreements of the parties contained in this Amendment No. 1 shall,
unless otherwise agreed by the Lenders, terminate effective immediately on such
date and without further action.
-6-
<PAGE>
ARTICLE VII
MISCELLANEOUS
-------------
SECTION 7.1. Loan Document Pursuant to Existing Credit Agreement. This
---------------------------------------------------
Amendment No. 1 is a Loan Document executed pursuant to the Existing Credit
Agreement. Except as expressly amended or waived hereby, all of the
representations, warranties, terms, covenants and conditions contained in the
Existing Credit Agreement and each other Loan Document shall remain unamended
and in full force and effect. The amendments set forth herein shall be limited
precisely as provided for herein and shall not be deemed to be a waiver of,
amendment of, consent to or modification of any other term or provision of the
Existing Credit Agreement or of any term or provision of any other Loan Document
or of any transaction or further or future action on the part of the Borrowers
or any of its Subsidiaries or which would require the consent of the Lender
under the Existing Credit Agreement or any other Loan Document.
SECTION 7.2. Counterparts, etc. This Amendment No. 1 may be executed by
-----------------
the parties hereto in several counterparts, each of which shall be deemed to be
an original and all of which shall constitute together but one and the same
agreement.
SECTION 7.3. GOVERNING LAW; ENTIRE AGREEMENT. THIS AMENDMENT NO. 1 SHALL BE
-------------------------------
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF ILLINOIS.
-7-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to
be executed by their respective officers hereunto duly authorized as of the day
and year first above written.
BORROWERS
---------
LATEX PETROLEUM CORPORATION
By: /s/ Jeffrey T. Wilson
-------------------------
Title: President
--------------------
LATEX/GOC ACQUISITION, INC.
By: /s/ Jeffrey T. Wilson
------------------------
Title: President
--------------------
GERMANY OIL COMPANY
By: /s/ Jeffrey T. Wilson
------------------------
Title: President
--------------------
LENDER
------
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION
By: /s/ Robert W. Bots
------------------
Title: Vice President
--------------------
<PAGE>
Acknowledged and Accepted:
LATEX RESOURCES, INC.
By: /s/ Jeffrey T. Wilson
---------------------------
Name: Jeffrey T. Wilson
Title: President
ENPRO, INC.
By: /s/ Jeffrey T. Wilson
---------------------------
Name: Jeffrey T. Wilson
Title: President
<PAGE>
SCHEDULE 1
Judgments Against New GOC
-------------------------
-10-
<PAGE>
Exhibit A-2
Form of Revolving Note
----------------------
-11-
<PAGE>
SECURED PROMISSORY NOTE
-----------------------
(Tranche C Revolving Loans)
$300,000 December 29, 1995
FOR VALUE RECEIVED, the undersigned, LATEX PETROLEUM CORPORATION, an
Oklahoma corporation, LATEX/GOC ACQUISITION, INC., a Delaware corporation
and GERMANY OIL COMPANY, a Delaware corporation, formerly known as LRI
ACQUISITION, INC. (the "Borrowers"), jointly and severally promise to pay to
---------
the order of Bank of America National Trust and Savings Association, a national
banking association (the "Lender"), if not sooner paid as provided in the Credit
------
Agreement (defined below), on March 31, 2000, the principal sum of THREE HUNDRED
THOUSAND DOLLARS ($300,000) or, if less, the aggregate unpaid principal amount
of all Tranche C Revolving Loans shown on the schedule attached hereto (and any
continuation thereof) made by the Lender pursuant to that certain Amendment No.
1 to Amended and Restated Credit Agreement, dated as of December 29, 1995 (the
Amended and Restated Credit Agreement described therein, together with such
Amendment No. 1 and all amendments and other modifications, if any, from time to
time thereafter made thereto, the "Credit Agreement"), among the Borrowers
----------------
and the Lender.
The Tranche C Revolving Loan is evidenced by this Note. The Borrowers may
borrow, repay and reborrow the Tranche C Revolving Loan as provided in Section
2.1.7 of the Credit Agreement.
The Borrowers also promise to pay interest on the unpaid principal amount
hereof from time to time outstanding from the date hereof until maturity
(whether by acceleration or otherwise) and, after maturity, until paid, at the
rates per annum and on the dates specified in the Credit Agreement.
Payments of both principal and interest are to be made in lawful money of
the United States of America in same day or immediately available funds to the
account designated by the Lender pursuant to the Credit Agreement.
This Note is one of the Notes referred to in, and evidences Indebtedness
incurred under, the Credit Agreement, to which reference is made for a
description of the security for this Note and for a statement of the terms and
conditions on which the Borrowers are permitted and required to make prepayments
and repayments of principal of the Indebtedness evidenced by this Note and on
which such Indebtedness may be declared to be immediately due and payable.
Unless otherwise defined, terms used herein have the meanings provided in the
Credit Agreement.
-12-
<PAGE>
All parties hereto, whether as makers, endorsers, or otherwise,
severally waive presentment for payment, demand, protest and notice of dishonor.
THIS NOTE HAS BEEN DELIVERED IN CHICAGO, ILLINOIS AND SHALL BE DEEMED TO BE
A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
ILLINOIS.
LATEX PETROLEUM CORPORATION, an
Oklahoma corporation
By:
------------------------------
Name:
----------------------------
Title:
---------------------------
LATEX/GOC ACQUISITION, INC.,
a Delaware corporation
By:
------------------------------
Name:
-----------------------------
Title:
-----------------------------
GERMANY OIL COMPANY, a Delaware
corporation, formerly known as LRI
ACQUISITION, INC.
By:
------------------------------
Name:
----------------------------
Title:
---------------------------
-13-
<PAGE>
<TABLE>
<CAPTION>
LOANS AND PRINCIPAL PAYMENTS
================================================================================
Amount Amount of Unpaid
of Loan Principal Principal
Made Rate Repaid Balance
------- -------- ----------- -----------
----------------------------------------------------
Interest Base Base Notation
Date Period Rate Rate Total Made By
- ---- ------ ---- ---- ----- -------
================================================================================
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
</TABLE>
-1-
<PAGE>
Exhibit C-1
Form of Borrowing Request
-------------------------
-2-
<PAGE>
BORROWING REQUEST
-----------------
Bank of America
National Trust and Savings Association
231 South Lasalle Street
Chicago, Illinois 60697
Telecopy:
------------------
Attention: [Name]
[Title]
Re: LATEX PETROLEUM CORPORATION, LATEX/GOC ACQUISITION, INC. and GERMANY
OIL COMPANY, F/K/A LRI ACQUISITION, INC.
Ladies and Gentlemen:
This Borrowing Request is delivered to you pursuant to Section 2.3 of the
-----------
Amended and Restated Credit Agreement, dated as of October 20, 1995, as amended
by Amendment No. 1 to Amended and Restated Credit Agreement dated as of December
29, 1995 (together with all other amendments, if any, from time to time made
thereto, the "Credit Agreement"), among LATEX PETROLEUM CORPORATION, an Oklahoma
------------------
corporation, LATEX/GOC ACQUISITION, INC., a Delaware corporation and GERMANY OIL
COMPANY, a Delaware corporation, formerly known as LRI Acquisition, Inc. (the
"Borrowers") and Bank of America National Trust and Savings Association (the
"Lender") . Unless otherwise defined herein or the context otherwise requires,
terms used herein have the meanings provided in the Credit Agreement.
The Borrowers hereby request that a Loan be made in the aggregate principal
amount of $_______ on __________ , 19__ as a [Base Rate Loan] [LIBO Rate Loan
having an Interest Period of [one] [two] [three] [six] months.]
[If the Loan is a Tranche B Loan, here include certification as to use of
------------------------------------------------------------------------
proceeds for Approved Development Activities. If the Loan is a Tranche C Loan,
- -------------------------------------------------------------------------------
here include certification as to the use of proceeds for the Prudential
- -----------------------------------------------------------------------
Acquisition or the Sackett Acquisition or certification as to the Approved
- --------------------------------------------------------------------------
Development Activities and a statement as to whether it is a Term Loan or a
- ---------------------------------------------------------------------------
Revolving Loan. If a revolving Loan, also state the maturity date, which is no
- -------------------------------------------------------------------------------
more than 60 days after the borrowing date.]
- -------------------------------------------
The Borrowers hereby acknowledge that, pursuant to Section 6.2.2 of the
-------------
Credit Agreement, each of the delivery of this Borrowing Request and the
acceptance by the Borrowers of the proceeds of the Loans requested hereby
constitute a representation and warranty by the Borrowers that, on the date of
such Loans, and before and after giving effect thereto and to the application of
the proceeds therefrom, all statements set forth in Section 6.2.1 are true and
-------------
correct in all material respects (unless stated to relate solely to an earlier
date, in which case such statements shall be true and correct as of such earlier
date).
The Borrowers agree that if prior to the time of the Borrowing requested
hereby any matter certified to herein by it will not be true and correct at such
time as if then made, they will immediately so notify the Lender. Except to the
extent, if any, that prior to the time of the Borrowing requested hereby the
Lender shall receive written notice to the contrary from the Borrowers, each
-3-
<PAGE>
matter certified to herein shall be deemed once again to be certified as true
and correct at the date of such Borrowing as if then made.
Please wire transfer the proceeds of the Borrowing to the accounts of the
following persons at the financial institutions indicated respectively:
Amount to be Person to be Paid Name, Address, etc.
-----------------
Transferred Name Account No. of Transferee Lender
- ----------- ---- ----------- --------------------
$---------- ----------------- -------------- --------------------
--------------------
Attention:
$---------- ----------------- -------------- --------------------
--------------------
Attention:
Balance of The Borrowers --------------------
such proceeds --------------------
Attention:
IN WITNESS WHEREOF, the Borrowers have caused this request to be executed
and delivered by its duly Authorized Officer as of ______ __, 19__.
LATEX PETROLEUM CORPORATION, an Oklahoma
corporation
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
LATEX/GOC ACQUISITION, INC., a Delaware
corporation
By:
-----------------------------
Name:
--------------------------
Title:
--------------------------
GERMANY OIL COMPANY, a Delaware
corporation, formerly known as LRI
Acquisition, Inc.
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
-4-
<PAGE>
Exhibit 10.115
AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDMENT NO. 2 TO THE AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment No. 2"), dated as of August 16, 1996, among LATEX PETROLEUM
---------------
CORPORATION, an Oklahoma corporation ("LPC"), LATEX/GOC ACQUISITION, INC., a
---
Delaware corporation ("GOCA"), GERMANY OIL COMPANY, a Delaware corporation,
----
formerly known as LRI Acquisition, Inc. ("New GOC") (collectively, the
-------
"Borrowers" and individually, a "Borrower"), and BANK OF AMERICA NATIONAL TRUST
--------- --------
AND SAVINGS ASSOCIATION, a national banking association (the "Lender"),
------
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, the Borrowers and the Lender are parties to the Amended and
Restated Credit Agreement, dated as of October 20, 1995 as amended by Amendment
No. 1 to Amended and Restated Credit Agreement dated as of December 29, 1995
(hereinafter referred to as the "Existing Credit Agreement"); and
-------------------------
WHEREAS, the Borrowers have requested that certain amendments be made to
the Existing Credit Agreement; and
WHEREAS, the Lender is willing to make certain amendments to the Existing
Credit Agreement on the terms and conditions hereinafter provided;
NOW, THEREFORE, in consideration of the agreements herein contained, the
parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
-----------
SECTION 1.1. Certain Definitions. The following terms
-------------------
(whether or not underscored) when used in this Amendment No. 2 shall have the
following meanings:
"Amended Credit Agreement" means the Existing Credit Agreement as amended
------------------------
by this Amendment No. 2.
"Amendment No. 2 Effective Date" has the meaning provided in Section 6.1.
------------------------------
"Forbearance Agreement" means that certain Forbearance Agreement dated
----------------------
as of July 23, 1996, among the Borrowers, the Lender and the Guarantors.
SECTION 1.2. Other Definitions. Unless otherwise defined or the context
-----------------
otherwise requires, terms used herein (including in the
<PAGE>
preamble and recitals hereto) have the respective meanings provided for in the
Existing Credit Agreement.
ARTICLE II
AMENDMENTS TO
-------------
EXISTING CREDIT AGREEMENT
-------------------------
Effective on the Amendment No. 2 Effective Date, the Existing Credit
Agreement is amended in accordance with the terms of this Article II; except as
----------
so amended, the Existing Credit Agreement shall continue to remain in all
respects in full force and effect.
SECTION 2.1. Amendments to Certain Exhibits.
------------------------------
2.1.1. Exhibit F of the Existing Credit Agreement is renumbered as
---------
Exhibit F-1 and the form of Amended and Restated Pledge Agreement shown in
- -----------
Exhibit F-2 hereto is inserted behind Exhibit F-1 as Exhibit F-2.
- ----------- ----------- -----------
2.1.2. The following Exhibits hereto are added as Exhibits to the Existing
Credit Agreement:
a. Exhibit R - Form of Borrower Security Agreement;
---------
b. Exhibit S - Form of Guarantor Security Agreement;
---------
c. Exhibit T - Form of Collateral Assignment of Notes and Liens; and
---------
d. Exhibit U - Form of Gold Mortgage.
---------
SECTION 2.2. Amendment to Section 9.1.
------------------------
2.2.1. Section 9.1 of the Existing Credit Agreement is amended by
-----------
inserting into Section 9.1.5 immediately after the word "Lender" the following
-------------
words:
"and the Assignment in favor of the Designee"
ARTICLE III
COVENANTS IN FORBEARANCE AGREEMENT
----------------------------------
The Borrowers and the Guarantors shall comply with and perform those
covenants set forth in Section 8 of the Forbearance Agreement.
----------
-2-
<PAGE>
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
------------------------------
In order to induce the Lender to make the amendments provided for in
Article II and to make the waivers as provided for in Article III, the Borrowers
- ---------- -----------
hereby (a) represent and warrant, that each of the representations and
warranties contained in the Existing Credit Agreement and in the other Loan
Documents is true and correct as of the date hereof as if made on the date
hereof (except, if any such representation and warranty relates to an earlier
date, such representation and warranty shall be true and correct in all material
respects as of such earlier date) and, immediately after giving effect to the
provisions of this Amendment No. 2, no Default has occurred and is continuing
and (b) agree that the incorrectness in any material respect of any
representation and warranty contained in the preceding clause (a) shall
----------
constitute an immediate Event of Default; provided, however, that during the
-------- -------
Forbearance Period of the Forbearance Agreement the Acknowledged Defaults (as
defined therein) shall not be deemed to violate the foregoing.
ARTICLE V
ACKNOWLEDGEMENT OF GUARANTORS
-----------------------------
By executing the acknowledgement to this Amendment No. 2, each Guarantor of
the Borrowers hereby confirms and agrees that the Guaranty and each Security
Agreement to which it is a party is, and shall continue to be, in full force
and effect and is hereby ratified and confirmed in all respects, except that, on
and after the Amendment No. 2 Effective Date, each reference therein to the
"Credit Agreement", "thereunder", "thereof" or words of like import referring to
the Existing Credit Agreement, shall mean and refer to the Existing Credit
Agreement after giving effect to this Amendment No. 2.
ARTICLE VI
CONDITIONS TO EFFECTIVENESS
---------------------------
SECTION 6.1. Effective Date. This Amendment No. 2 shall become
--------------
effective on August 16, 1996 (herein called the "Amendment No. 2 Effective
-------------------------
Date"), upon satisfaction of the following conditions.
- ----
SECTION 6.1.1. Execution of Counterparts. The Lender shall have received
-------------------------
counterparts of this Amendment No. 2 duly executed and delivered on behalf of
the Borrowers, the Guarantors, and the Lender.
-3-
<PAGE>
SECTION 6.1.2. Additional Collateral. The Lender shall have received the
---------------------
following duly executed and delivered documents as additional collateral for the
Loans:
a. Security Agreement and Financing Statements executed by Enpro in favor
of the Lender in the form of Exhibit S;
---------
b. Security Agreement and Financing Statements executed by LRI in favor
of the Lender in the form of Exhibit S;
---------
c. Security Agreement and Financing Statements executed by each of the
Borrowers in favor of the Lender in the form of Exhibit R;
---------
d. Collateral Assignment from LRI to the Lender of following duly
executed and delivered documents (i) the Promissory Note dated as of
the date hereof and executed by Wexford Technology, Incorporated
("Wexford") in favor of LRI (the "Wexford Note"), (ii) the Secured
------- ------------
Promissory Note dated as of the date hereof and executed by Imperial
Petroleum, Inc. ("Imperial") and Ridgepointe Mining Company
--------
("Ridgepointe") in favor of LRI (the "Imperial Note"), (iii) the
----------- -------------
Deed of Trust with Power of Sale, Mortgage, Assignment of Production,
Security Agreement, Financing Statement and Fixture Filing from
Ridgepointe to Jeffrey T. Wilson, Trustee and LRI as Beneficiary dated
as of the date hereof (the "Imperial Mortgage"), (iv) the Security
-----------------
Agreement and Financing Statement executed by Imperial and Ridgepointe
in favor of LRI in the form of Exhibit T (the "Imperial Security
--------- -----------------
Agreement") and (v) the Promissory Note executed by Latex Resources
---------
International, Inc. in favor of Borrowers dated as of the date hereof;
e. Amended and Restated Pledge Agreement executed by LRI pledging its
ownership interest in the Borrowers, Enpro, Imperial and Wexford to
the Lender in the form of Exhibit F-2 (the "Amended and Restated
----------- --------------------
Pledge Agreement").
----------------
SECTION 6.1.3. Letters-in-Lieu of Transfer Order. The Designee shall
---------------------------------
have received duly executed and delivered Letters-in-Lieu of Transfer Order from
the Borrowers for the Properties as required by the Designee in its sole
discretion.
SECTION 6.1.4. Acknowledgment of Amounts Due. The Designee shall have
-----------------------------
received an acknowledgment from the Borrowers of the amounts due and payable
under the Assignment as required by the Forbearance Agreement.
SECTION 6.1.5. Resolutions and Legal Opinion. The Lender shall have
-----------------------------
received (a) resolutions of the Board of Directors of each Borrower and each
Guarantor authorizing the execution,
-4-
<PAGE>
delivery and performance of Amendment No. 2 and (b) a satisfactory legal Opinion
from Pray, Walker, Jackman and Marlar (or other counsel satisfactory to the
Lender) as to the due authorization, execution, and delivery of this Amendment
No. 2 by, and good standing of, each Borrower and each Guarantor and the
enforceability of this Amendment No. 2 against the Borrowers and the Guarantors.
The Lender shall have received resolutions of the Board of Directors of
Wexford, Imperial, Latex Resources International, Inc., LRI and Enpro
authorizing the execution, delivery and performance of the documents which they
are required to deliver under the Amendment No. 2.
SECTION 6.1.6. Legal Details, etc. All documents executed or submitted
------------------
pursuant hereto, and all legal matters incident thereto, shall be satisfactory
in form and substance to the Lender and their counsel.
ARTICLE VII
MISCELLANEOUS
-------------
SECTION 7.1. Loan Document Pursuant to Existing Credit Accruement. This
----------------------------------------------------
Amendment No. 2 is a Loan Document executed pursuant to the Existing Credit
Agreement. Except as expressly amended or waived hereby and as set forth in the
Forbearance Agreement, all of the representations, warranties, terms, covenants
and conditions contained in the Existing Credit Agreement and each other Loan
Document shall remain unamended and in full force and effect. The amendments set
forth herein shall be limited precisely as provided for herein and shall not be
deemed to be a waiver of, amendment of, consent to or modification of any other
term or provision of the Existing Credit Agreement or of any term or provision
of any other Loan Document or of any transaction or further or future action on
the part of the Borrowers or any of its Subsidiaries or which would require the
consent of the Lender under the Existing Credit Agreement or any other Loan
Document. The parties hereto acknowledge that, as of the Amendment No. 2
Effective Date, the Forbearance Period (as defined in the Forbearance
Agreement) has become effective.
SECTION 7.2. Acknowledgment by Lender. The Lender hereby acknowledges
------------------------
that, pursuant to the terms of the Forbearance Agreement, upon payment of the
amounts set forth in Section 8.e. of the Forbearance Agreement and if no Default
or Event of Default has then occurred, the Lender shall release, at the sole
cost and expense of the Borrowers, its Liens against the Wexford Note, the
Imperial Note, the Imperial Mortgage, the Imperial Security Agreement and the
pledge of the capital stock of Imperial and Wexford pursuant to the Amended and
Restated Pledge Agreement; provided, that if, in connection with such
transactions, LRI determines to sell Imperial, Wexford or any other Affiliate of
LRI the capital stock of Imperial and/or Wexford, then the Board of
-5-
<PAGE>
Directors of LRI shall have determined that such sale transaction is fair to
LRI.
SECTION 7.3. Counterparts, etc. This Amendment No. 2 may be executed by
-----------------
the parties hereto in several counterparts, each of which shall be deemed to be
an original and all of which shall constitute together but one and the same
agreement.
SECTION 7.4. GOVERNING LAW; ENTIRE AGREEMENT. THIS AMENDMENT NO. 2 SHALL BE
-------------------------------
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF ILLINOIS.
-6-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to
be executed by their respective officers hereunto duly authorized as of the day
and year first above written.
BORROWERS
---------
LATEX PETROLEUM CORPORATION
By:
-----------------------------
Title:
-----------------------
LATEX/GOC ACQUISITION, INC.
By:
-----------------------------
Title:
-----------------------
GERMANY OIL COMPANY
By:
-----------------------------
Title:
-----------------------
LENDER
------
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION
By:
-----------------------------
Title:
-----------------------
[Signatures continued on next page)
<PAGE>
Acknowledged and Accepted:
LATEX RESOURCES, INC.
By:
---------------------------
Name:
Title:
ENPRO, INC.
By:
---------------------------
Name:
Title:
<PAGE>
EXHIBIT 10.116
Bank of America
Special Assets Group
United States Division 4346
FORBEARANCE AGREEMENT
July 23, 1996
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
4200 East Skelly Drive
Suite 1000
Tulsa, OK 74135
Attention: President
Re: Amended and Restated Credit Agreement dated as of October 20, 1995, as
amended by Amendment No. 1 to Amended and Restated Credit Agreement
dated as of December 29, 1995 (such agreement, as the same has been
from time to time amended, the "Credit Agreement") , by and among
----------------
LaTex Petroleum Corporation, LaTex/GOC Acquisition, Inc. and Germany
Oil Company (collectively, "Borrowers") and Bank of America National
---------
Trust and Savings Association ("Lender")
------
Gentlemen:
Reference is made to the Credit Agreement. Capitalized terms used, and not
otherwise defined herein, shall have the meanings set forth in the Credit
Agreement. LaTex Resources, Inc. ("LRI") and Enpro, Inc. ("Enpro"; together
--- -----
with LRI, "Guarantors") are guarantors of the Obligations. After each of us
----------
has signed this letter, this letter agreement (the "Agreement") shall constitute
---------
a binding agreement between Borrowers, the Guarantors and the Lender.
1. Each of the Borrowers and Guarantors acknowledges that each of the
Borrowers is in default in performance of certain of its undertakings under the
Credit Agreement, and that no waiver, consent or forbearance of any kind is now
in effect with respect to any such Events of Default. Specifically, Borrowers
and Guarantors acknowledge the defaults set forth in those certain letter
Bank of America National Trust and Savings Association
333 S Beaudry Avenue Los Angeles, CA 90017
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 2
agreements dated as of May 10, 1996, among the Lender and Borrowers.
2. Except as specifically set forth in paragraph 4 hereof, (a) neither the
-----------
execution of this Agreement nor any negotiations or other actions undertaken
hereunder or pursuant hereto shall constitute a waiver or forbearance of the
rights of the Lender under the Credit Agreement or any other Loan Document, and
(b) the Lender shall retain all rights and remedies whatsoever to which it may
be entitled under the Credit Agreement or any other Loan Document.
3. Borrowers have advised the Lender that Events of Default occurred as a
result of the breach of the following covenants:
a. Non-Payment of Obligations under Section 9.1.1. of the Credit
-------------------------------------------------------------
Agreement. Borrowers failed to pay the Annual Engineering Fee due on
---------
March 31, 1996 under Section 3.3.3. of the Credit Agreement (such
--------------
amounts having been paid subsequently on May 24, 1996);
b. Non-Performance of Certain Covenants and Obligations under Section
------------------------------------------------------------------
9.1.3. of the Credit Agreement:
------------------------------
(1) Borrowers have violated the Current Ratio (Section 8.2.4. (c) of
------------------
the Credit Agreement) and the working Capital (Section 8.2.4. (d)
------------------
of the Credit Agreement) negative covenants by permitting their
Current Ratio to be less than 1.0:1.0 and their Working Capital
to be less than $500,000; and
(2) Borrowers have violated the permitted Investments negative
covenant (Section 8.2.5. of the Credit Agreement);
--------------
c. Non-Performance of Other Covenants and Obligations under Section 9.1.4
----------------------------------------------------------------------
of the Credit Agreement. Borrowers have used the proceeds of the Loan
-----------------------
in violation of Section 2.7 of the Credit Agreement;
-----------
d. Default on Other Indebtedness under Section 9.1.5. of the Credit
----------------------------------------------------------------
Agreement. Borrowers have defaulted in the payment of other
---------
Indebtedness in excess of $50,000;
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 3
e. Judgments Default under Section 9.1.6. of the Credit Agreement. A
--------------------------------------------------------------
judgment in excess of $50,000 has been entered against one or all of
Borrowers constituting a default under Section 9.1.6. of the Credit
Agreement; --------------
f. Failure to Maintain Minimum Tangible Net Worth. LRI Resources, Inc.
----------------------------------------------
("LRI") has failed to maintain the minimum Tangible Net Worth required
---
pursuant to the Undertaking and Indemnity; and
g. Failure to Maintain Current Ratio. LRI has failed to maintain the
---------------------------------
Consolidated Current Ratio required pursuant to the Undertaking and
Indemnity.
(such Events of Defaults herein collectively called the "Acknowledged
------------
Defaults"). Borrowers and Guarantors have requested that the Lender forbear from
- --------
the exercise of its rights and remedies under the Credit Agreement and the other
Loan Documents, which rights and remedies would otherwise be available to the
Lender in respect of the Acknowledged Defaults.
4. Upon timely satisfaction of the conditions precedent listed below, the
Lender hereby agrees during the Forbearance Period (as defined below) to delay
enforcement of the rights granted to Lender under the Credit Agreement and the
other Loan Documents and applicable law arising as a result of the Acknowledged
Defaults. For purposes hereof, the enforcement delay granted by the Lender
hereby is referred to as the "Forbearance" and the "Forbearance Period" shall
----------- ------------------
mean the period beginning with the effectiveness hereof and ending on the
earliest of:
a. October 15, 1996,
b. the occurrence of a default by any of the Borrowers or the Guarantors
in respect of any of its covenants or agreements, or the breach of any
of its representations and warranties, contained in this Agreement,
c. the occurrence of any Default or Event of Default under the Credit
Agreement or any other Loan Document (other than the Acknowledged
Defaults) with respect to any of the Borrowers or the Guarantors, and
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 4
d. the date on which each of the Acknowledged Defaults is cured to the
satisfaction of the Lender.
5. The Forbearance and the Forbearance Period shall become effective upon
the satisfaction of each of the following conditions precedent on or before
August 16, 1996, in each case to the satisfaction of the Lender:
a. Inter-Affiliate Transactions. Borrowers, LRI, and the applicable
----------------------------
subsidiaries and affiliates of LRI shall have taken the following
actions and delivered appropriate evidence thereof to the Lender:
(1) The existing inter-company indebtedness of Wexford
Technology, Incorporated ("Wexford") to LRI shall be documented
in the form of promissory notes payable by Wexford to the order
of LRI (such promissory notes to be in a form acceptable to the
Lender);
(2) The existing inter-company indebtedness of Imperial Petroleum
Inc. ("Imperial") to LRI shall be documented in the form of
--------
promissory notes payable by Imperial to the order of LRI (such
promissory notes to be in a form acceptable to the Lender) and
Imperial shall have granted, subject only to any perfected liens
on the assets of Imperial existing as of July 9, 1996, to LRI
first priority, perfected liens and security interests in all
of its assets to secure all outstanding loans or intercompany
advances (regardless of how such transactions were documented or
evidenced) previously made by LRI to Imperial;
(3) LaTex Resources International shall have delivered to
Borrowers a note payable by LaTex Resources International to
Borrowers evidencing the amounts shown as "A/P-Interco-Geodyne
Tunisia" on the unconsolidated balance sheets of LaTex Petroleum
Corporation and Germany Oil Company as of February 29, 1996;
(4) Each of the Borrowers shall have, with respect to all amounts
due and owing to LaSalle Street
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 5
Natural Resources Corporation ("LSNRC") as of the date hereof,
relating to overriding royalties interests or other interests
burdening the Oil and Gas Properties of such Borrower (the
"Override"): (i) provided a written acknowledgment of all
amounts due and owing and (ii) agreed to pay such amounts plus
interest at the rate at the Prime Rate plus 2.00%, in three (3)
equal monthly installments beginning on August 1, 1996; and
(5) With respect to all future Override amounts due and payable
to LSNRC, each of the Borrowers agrees that: (i) the failure to
pay such amounts will be an Event of Default under the Credit
Agreement, and (ii) Borrowers will execute letters-in-lieu of
transfer orders for any and all of the Mortgaged Properties to be
used as determined by the Lender in its sole discretion.
b. Additional Security.
-------------------
(1) Enpro shall have executed and delivered to the Lender
security agreements, financing statements and other Loan
Documents, in form and substance satisfactory to the Lender,
granting to the Lender as security for the obligations of Enpro
pursuant to its Guaranty, a first priority, perfected lien and
security interest in and to all of its existing and hereafter
acquired personal property assets, including without limitation,
all its right, title and interest in and to the Crude Oil
Purchase Agreement dated as of January 2, 1994, between LaTex
Petroleum Corporation and Enpro. The security agreement to be
executed by Enpro shall be in a form acceptable to the Lender.
(2) LRI shall have executed and delivered to the Lender security
agreements, financing statements and other Loan Documents, in
form and substance satisfactory to the Lender, granting to the
Lender as security for the obligations of LRI pursuant to its
Guaranty, a first priority, perfected lien and security interest
in and to all of its existing and hereafter acquired personal
property assets,
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 6
including without limitation, all its right, title and interest
in and to (i) the unsecured promissory notes from Wexford
described in Section 5.a.(1) above, (ii) the secured promissory
---------------
notes from Imperial and related security described in Section
-------
5.a.(2) above and (iii) all of the capital stock of Wexford and
-------
Imperial now held by LRI. The security agreements to be executed
by LRI shall be in a form acceptable to the Lender.
(3) Borrowers shall have executed and delivered to the Lender
security agreements, financing statements and other Loan
Documents, in form and substance satisfactory to the Lender,
granting to the Lender as security for the Obligations, a first
priority, perfected lien and security interest in and to all of
its and their existing and hereafter acquired personal property
assets, including without limitation, all accounts receivable and
general intangibles. The security agreements to be executed by
Borrowers shall be in a form acceptable to the Lender.
C. Certain Financial Information.
------------------------------
(1) Borrowers shall have delivered to the Lender monthly
financial statement projections (including balance sheets, income
statements and statements of cash flow) for each of the Borrowers
(individually) and for all Borrowers (on a combined basis) for
the period beginning June 1, 1996 through January 31, 1997. Such
financial projections shall assume that the intercompany
transactions describe in Section 5.a. above have occurred.
-----------
(2) Borrowers shall have caused Wexford to deliver to the Lender
copies of Wexford's most recent internal financial statements
(including balance sheet, income statement and statement of
changes in cash flow).
d. Payment of Transaction Costs. Borrowers shall have reimbursed the
----------------------------
Lender for its out-of-pocket expenses (including but not limited to
the costs and expenses of
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 7
in-house and outside legal counsel, costs associated with the granting
and perfection of security interests and travel costs) incurred by
the Lender in connection with the negotiation, documentation and
implementation of this Agreement.
e. General Releases. Borrowers, LRI and Enpro shall each have executed
----------------
and delivered to the Lender a General Release, such releases to be in
a form acceptable to the Lender.
f. Internal Authorizations, etc. Borrowers, LRI and Enpro shall each have
-----------------------------
received all required management, board of directors or shareholder
approvals to the effectiveness of the terms and conditions of this
Agreement, and the Lender shall have received satisfactory
certificates and opinions as to such matters.
6. The Forbearance shall be limited precisely as written herein and
relates solely to the Acknowledged Defaults. The Forbearance shall not be deemed
to (a) constitute a waiver of compliance by Borrowers or Guarantors or a
forbearance of the rights of the Lender with respect to any other term,
provision or condition of the Credit Agreement or any other instrument or
agreement referred to therein, or (b) except to the extent of the Forbearance,
prejudice or impair in any manner the exercise of any right or remedy that the
Lender may now have or may in the future under applicable law or under in
connection with the Credit Agreement or any other instrument or agreement
referred to therein. Subject only to the Forbearance, the Lender expressly
reserves the right to exercise any right or remedy which the Lender may have
under applicable law, the Credit Agreement or the other Loan Documents.
7. The Lender acknowledges and agrees that the Default Rate shall not
accrue during the Forbearance Period, but shall accrue at the Default Rate upon
the termination of the Forbearance Period unless all Acknowledged Defaults have
been cured to the satisfaction of the Lender and there shall not have occurred
any other Default or Event of Default under the Credit Agreement or the Loan
Documents or any breach or default under this Agreement.
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 8
8. In addition to the covenants and agreements set forth in the Credit
Agreement and the other Loan Documents, Borrowers and Guarantors agree that:
a. Additional Reporting. Borrowers shall deliver to the Lender not later
--------------------
than the 25th day of each calendar month, internally-prepared monthly
consolidated financial statements of LRI and internally-prepared
monthly individual and combined financial statements of each of the
Borrowers for the preceding calendar month.
b. Sale, Merger or Refinancing; Repayment of All
-------------------------------------------------------
Obligations. LRI shall use its best efforts to expeditiously
-----------
negotiate the sale or merger of LRI, or the refinancing with another
lender of the Obligations, which transaction would result in the
payment and performance in full of the Obligations by not later than
October 15, 1996. LRI and Borrower shall deliver to the Lender copies
of all correspondence, drafts, projections and other information
generated by or at the request of LRI or any Borrower, or any such
material received by LRI or any Borrower in respect of any such
transaction.
c. Compliance with Projections. Borrowers shall take the necessary
---------------------------
actions to comply with and achieve the business and financial
projections set forth in the projections delivered to the Lender
pursuant to Section 5.c. (1) above.
----------------
d. Limitations on Certain Investments. During the
-------------------------------------
Forbearance Period:
(1) each of LRI, Enpro and the Borrowers shall not make any
Investment, distribution or inter-company loan to LaTex Resources
International, Phoenix Metals, Inc., Imperial or Wexford; and
(2) Capital Expenditures by the Borrowers shall not exceed, in
the aggregate, $120,000.
e. Imperial Payment Proceeds. In the event that Imperial receives the
-------------------------
amounts previously described by LRI to the Lender and further
described in letters from you dated June 17, 1996 and July 19, 1996,
and a letter from Lorsan
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 9
Investments Ltd. USA, dated June 18, 1996, relating to certain gold
reserves owned by Imperial or its affiliates (the "Imperial Settlement
-------------------
Proceeds"), then, within three (3) days after Imperial's receipt of
--------
the Imperial Settlement Proceeds:
(1) LRI shall (i) repay to Borrowers all outstanding loans or
intercompany advances (regardless of how such transactions were
documented or evidenced) previously made by each Borrower to LRI,
(ii) make additional Investments in Borrowers or any of them
and/or (iii) make additional loans (subordinated to the
Obligations on terms and conditions satisfactory to the Lender)
to Borrowers or any of them, such that the total of such payments
under this subsection 8.e. (1) equals at least $3.5 million;
-------------------
(2) Borrowers shall repay to the Lender, in partial repayment of
the Loans, an amount not less than $1 million, in addition to
scheduled repayments required pursuant to the Credit Agreement
(such prepayment to be applied to the Tranche A Loans in the
inverse order of maturity and shall result in a permanent
reduction of the Tranche A Commitment Amount);
(3) Wexford and Imperial shall repay to LRI all outstanding loans
or intercompany advances (regardless of how such transactions
were documented or evidenced) previously made by LRI to Wexford
or Imperial; and
(4) Each of the Borrowers shall, with respect to all amounts
relating to the Override due and owing to LSNRC as of the date
hereof, repay any amounts of the Override then outstanding.
Upon payment of the amounts described in this Section 8.e. and if no
------------
Default or Event of Default has then occurred, the Lender shall
release, at the sole cost and expense of the Borrowers, its Liens
against the promissory notes given by Wexford and Imperial pursuant to
Section 5.b. hereof, the collateral given by Imperial
------------
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 10
to LRI as security for such notes and the capital stock of Wexford
and Imperial then held by LRI; provided, that if, in connection with
--------
such transactions, LRI determines to sell to Imperial, Wexford or
any other Affiliate of LRI the capital stock of Imperial and/or
Wexford, then the Board of Directors of LRI shall have determined
that such sale transaction is fair to LRI.
9. Except as expressly set forth herein, the terms and provisions of
the Credit Agreement and the other Loan Documents shall remain in full force
and effect and in all other respects are hereby ratified and confirmed.
10. In order to induce the Lender to enter into this Agreement and to
grant the Forbearance, each of the Borrowers hereby represents and warrants
that (i) no Default or Event of Default exists under the Credit Agreement
other than as described in paragraph 3 above, (ii) all representations and
-----------
warranties contained in the Credit Agreement are true, correct and complete in
all material respects on and as of the date hereof except to the extent such
representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete on and as of such earlier
date, and (iii) except as described in clause (i), each of the Borrowers has
----------
performed all agreements and covenants to be performed on its part as set
forth herein or in the Credit Agreement.
11. In order to induce the Lender to enter into this Agreement and to
grant the Forbearance, each of the Guarantors hereby joins in this Agreement
for the purposes of consenting and agreeing to the terms and conditions of
this Agreement and hereby represents and warrants that (i) no Default or Event
of Default exists under the Credit Agreement other than as described in
paragraph 3 above, (ii) all representations and warranties contained in the
-----------
Credit Agreement are true, correct and complete in all material respects on
and as of the date hereof except to the extent such representations and
warranties specifically relate to an earlier date, in which case they were
true, correct and complete on and as of such earlier date, and (iii) except
as described in clause (i), each of the Borrowers has performed all
----------
agreements and covenants to be performed on its part as set forth herein or in
the Credit Agreement.
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 11
12. This Agreement constitutes the only agreement among Borrowers,
Guarantors and the Lender concerning the subject matter hereof and supersedes
any prior or contemporaneous representations or agreements not contained herein
concerning the subject matter of this Agreement. This Agreement shall be binding
upon the parties hereto, their respective successors and assigns.
13. The validity of this Agreement and the construction interpretation and
enforcement hereof and the rights of the parties hereunder shall be determined
under, governed by and construed in accordance with the laws of the State of
Illinois. The parties agree that all actions or proceedings arising under or in
connection with this Agreement shall be tried and litigated in the state and
federal courts located in the County of Cook, State of Illinois. THE BORROWERS,
GUARANTORS AND THE LENDER WAIVE ANY RIGHT TO A TRIAL BY JURY AND ANY RIGHT EACH
MAY HAVE TO ASSERT THE DOCTRINE FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO
----- --- ----------
THE EXTENT ANY PROCEEDING IS BROUGHT IN CONNECTION WITH THIS AGREEMENT.
14. Each of the parties further agrees with and acknowledges to the other
that it (i) has read and understands the provisions of this Agreement; (ii) has
consulted with legal counsel who has read and reviewed this Agreement; (iii)
understands the rights and remedies that each party is receiving, waiving and/or
forbearing from hereto; and (iv) has made the agreement set forth herein
knowingly, voluntarily and intentionally.
15. Unless each of Borrowers and Guarantors executes and returns to Lender
a counterpart of this letter on or before July 25, 1996 1/2 the offer of
forbearance contained in this letter shall lapse and become void.
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 12
If the foregoing summarizes the terms of our binding agreement, please sign
this letter in the space provided below and return one copy to the undersigned
at your earliest convenience.
Very truly yours,
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
By /s/ SIGNATURE APPEARS HERE
----------------------------
Its Vice President
CONSENTED AND AGREED TO
on July 25, 1996
BORROWERS:
LATEX PETROLEUM CORPORATION,
an Oklahoma corporation
By Jeffrey T. Wilson
--------------------------
Its
--------------------------
LATEX/GOC ACQUISITION, INC.,
a Delaware corporation,
By Jeffrey T. Wilson
--------------------------
Its
-------------------------
GERMANY OIL COMPANY,
a Delaware corporation
(f/k/a LRI Acquisition, Inc.)
By Jeffrey T. Wilson
--------------------------
Its
-------------------------
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
July 23, 1996
Page 13
GUARANTORS:
LATEX RESOURCES, INC.,
a Delaware corporation
By Jeffrey T. Wilson
--------------------------
Its
--------------------------
ENPRO , INC.,
a Texas corporation
By Jeffrey T. Wilson
--------------------------
Its
-------------------------
<PAGE>
Ehhibit 10.117
AGREEMENT AND PLAN OF MERGER
BY AND AMONG
ALLIANCE RESOURCES PLC,
ALLIANCE RESOURCES (DELAWARE), INC.
AND
LATEX RESOURCES, INC.
* * * * *
DATED: AUGUST 12, 1996
<PAGE>
TABLE OF CONTENTS
Page
----
Recitals .................................................................... 1
Agreement ................................................................... 1
1. Definitions .......................................................... 1
2. The Merger ........................................................... 9
2.1 The Merger .................................................. 9
2.2 Effective Time .............................................. 9
2.3 The Certificate of Incorporation ............................ 9
2.4 The Bylaws .................................................. 9
2.5 Officers and Directors ...................................... 9
2.6 Conversion or Cancellation of LaTex Shares and Newco Shares.. 9
2.7 Payment for LaTex Shares; New Warrants ...................... 11
2.8 Dissenters' Rights .......................................... 12
2.9 Transfer of LaTex Shares After the Effective Time ........... 12
2.10 Approval of the Stockholders and Registration .............. 12
2.11 Restructuring Option ....................................... 14
3. The Closing .......................................................... 14
3.1 Time and Place of Closing ................................... 14
3.2 Obligations of LaTex at or Prior to the Closing ............. 14
3.3 Obligations of Alliance and Newco at or Prior to the Closing. 15
4. Representations, Warranties and Covenants of LaTex ................... 16
4.1 Corporate Organization ...................................... 16
4.2 Capitalization .............................................. 16
4.3 Authority; No Violation ..................................... 17
4.4 Consents and Approvals ...................................... 17
4.5 Violations of Laws, Permits, etc. ........................... 18
4.6 LaTex Financial Statements .................................. 18
4.7 No Undisclosed Liabilities, etc. ............................ 18
4.8 Absence of Certain Changes .................................. 18
4.9 Title to Property; Encumbrances ............................. 19
4.10 Proceedings Affecting LaTex Interests ....................... 21
4.11 LaTex Oil and Gas Contracts ................................. 21
4.12 Operations .................................................. 22
4.13 No Reversionary Interests ................................... 22
4.14 Sales and Transportation Agreements ......................... 22
4.15 Tax Partnerships ............................................ 23
4.16 Prepayments ................................................. 23
i
<PAGE>
4.17 Production Sales Contracts ................................ 23
4.18 Calls ..................................................... 23
4.19 Reserve Reports ........................................... 23
4.20 Wells ..................................................... 24
4.21 No Funds in Suspense ...................................... 24
4.22 Regulatory Compliance ..................................... 24
4.23 Physical Condition of Facilities .......................... 24
4.24 Data Regarding the LaTex Interests ........................ 24
4.25 Litigation ................................................ 25
4.26 Tax Returns and Payments .................................. 25
4.27 Insurance ................................................. 26
4.28 Bank Accounts ............................................. 26
4.29 Contracts ................................................. 26
4.30 Transactions with Interested Persons ...................... 28
4.31 Compensation and Employee Plans ........................... 28
4.32 Accounts Receivable; Inventories .......................... 28
4.33 Brokers, Finders and Advisors ............................. 28
4.34 Labor Force ............................................... 29
4.35 Books and Records ......................................... 29
4.36 Payments .................................................. 29
4.37 Public Utility Holding Company ............................ 29
4.38 SEC Filings ............................................... 29
4.39 Disclosure ................................................ 30
5. Representations, Warranties and Covenants of Alliance ............... 30
5.1 Organization, etc. ........................................ 30
5.2 Capitalization ............................................ 30
5.3 Authority; No Violation ................................... 31
5.4 Consents and Approvals .................................... 31
5.5 Violations of Laws, Permits, etc. ......................... 32
5.6 Alliance Financial Statements ............................. 32
5.7 No Undisclosed Liabilities, etc. .......................... 32
5.8 Absence of Certain Changes ................................ 32
5.9 Title to Property; Encumbrances ........................... 33
5.10 Proceedings Affecting the Alliance Interests .............. 35
5.11 Alliance Oil and Gas Contracts ............................ 35
5.12 Operations ................................................ 36
5.13 No Reversionary Interests ................................. 36
5.14 Sales and Transportation Agreements ....................... 36
5.15 Tax Partnerships .......................................... 37
5.16 Prepayments ............................................... 37
5.17 Production Sales Contracts ................................ 37
5.18 Calls ..................................................... 37
5.19 Reserve Reports ........................................... 37
5.20 Wells ..................................................... 38
ii
<PAGE>
5.21 No Funds in Suspense ...................................... 38
5.22 Regulatory Compliance ..................................... 38
5.23 Physical Condition of Facilities .......................... 38
5.24 Data Regarding the Alliance Interests ..................... 38
5.25 Litigation ................................................ 39
5.26 Tax Returns and Payments .................................. 39
5.27 Insurance ................................................. 40
5.28 Contracts ................................................. 40
5.29 Transactions with Interested Persons ...................... 41
5.30 Compensation and Employee Plans ........................... 42
5.31 Accounts Receivable; Inventories .......................... 42
5.32 Brokers, Finders and Advisors ............................. 42
5.33 Labor Force ............................................... 42
5.34 Books and Records ......................................... 43
5.35 Payments .................................................. 43
5.36 Public Utility Holding Company ............................ 43
5.37 Exchange Filings .......................................... 43
5.38 Disclosure ................................................ 43
5:39 Status of Newco ........................................... 44
6. Actions of LaTex Prior to the Closing Date .......................... 44
6.1 Affirmative Covenants ...................................... 44
6.2 Negative Covenants ......................................... 44
6.3 Consents ................................................... 44
6.4 Advice of Changes .......................................... 44
6.5 Best Efforts ............................................... 44
6.6 Access to Properties and Records ........................... 45
6.7 Supply Documents, Reports, etc. ............................ 45
6.8 Employees .................................................. 45
6.9 No Solicitation, etc. ...................................... 45
7. Actions of Alliance and Newco Prior to the Closing Date ............. 46
7.1 Affirmative Covenants ...................................... 46
7.2 Negative Covenants ......................................... 46
7.3 Consents ................................................... 46
7.4 Advice of Changes .......................................... 46
7.5 Best Efforts ............................................... 47
7.6 Access to Properties and Records ........................... 47
7.7 Supply Documents, Reports, etc. ............................ 47
7.8 No Solicitation, etc. ...................................... 47
8. Conditions to Alliance's or Newco's Obligations ..................... 48
9. Conditions to LaTex's Obligations ................................... 50
iii
<PAGE>
10. Additional Agreements ............................................. 52
10.1 Confidentiality .......................................... 52
10.2 Further Assurances ....................................... 52
10.3 Resignations ............................................. 52
10.4 Alliance Directors ....................................... 52
10.5 Offices .................................................. 52
10.6 LaTex Personnel .......................................... 52
10.7 Consulting Agreement ..................................... 52
11. Termination, Waiver and Amendment ................................. 53
11.1 Termination .............................................. 53
11.2 Manner of Exercise ....................................... 55
11.3 Effect of Termination .................................... 55
12. Miscellaneous ..................................................... 56
12.1 Survival ................................................. 56
12.2 Expenses ................................................. 56
12.3 Press Releases ........................................... 56
12.4 Binding Effect ........................................... 56
12.5 Severability ............................................. 56
12.6 Notices .................................................. 56
12.7 Entire Agreement ......................................... 57
12.8 Amendments; Waivers ...................................... 57
12.9 Headings ................................................. 57
12.10 Counterparts ............................................. 58
12.11 Specific Performance ..................................... 58
12.12 GOVERNING LAW ............................................ 58
12.13 Schedules ................................................ 58
12.14 Time of Essence .......................................... 58
12.15 Best efforts ............................................. 58
iv
<PAGE>
AGREEMENT AND PLAN OF MERGER
----------------------------
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is entered into as of
August 12, 1996, by and among ALLIANCE RESOURCES PLC, a public limited company
incorporated in England and Wales ("Alliance"), ALLIANCE RESOURCES (DELAWARE),
INC., a newly formed Delaware corporation ("Newco") and LATEX RESOURCES, INC., a
Delaware corporation ("LaTex").
Recitals
--------
The parties desire to effect a merger on the terms, and subject to the
provisions and conditions, of this Agreement.
Agreement
---------
NOW, THEREFORE, for and in consideration of the premises and the mutual
agreements hereinafter set forth, in accordance with the provisions of
applicable law, the parties hereby agree as follows:
1. Definitions. As used in this Agreement and the Exhibits, Schedules and
-----------
documents delivered pursuant to this Agreement, the following terms shall have
the following meanings:
ADEA. "ADEA" means the Age Discrimination in Employment Act, as
----
amended, or any successor statute.
Affiliate. "Affiliate" means an "affiliate" or associate" as those
---------
terms are defined in Rule 12b-2 promulgated by the Commission under the Exchange
Act.
Certificate of Merger. "Certificate of Merger" is as defined in
---------------------
Section 2.2.
- -----------
Closing. "Closing" means the closing referred to in Section 3.1.
------- -----------
Closing Date. The "Closing Date" is the second business day (other
------------
than a Saturday, Sunday or legal holiday) following the day on which the
conditions to the obligations of the parties set forth in Articles 8 and 9 shall
---------- -
have been satisfied or waived, or such other time as shall be set by the parties
in writing.
Code. "Code" means the Internal Revenue Code of 1986, as amended, or
----
any successor statute.
Commission. "Commission" means the Securities and Exchange Commission
----------
and/or any other Governmental Entity that administers either the Securities Act
or the Exchange Act.
1
<PAGE>
DGCL. "DGCL" means the Delaware General Corporation Law, as amended,
----
or any successor statute.
Dissenting Shares. "Dissenting Shares" are as defined in Section 2.8.
----------------- -----------
Effective Time. "Effective Time" is as defined in Section 2.2.
-------------- -----------
Encumbrance. An "Encumbrance" is any option, pledge, security
-----------
interest, lien, charge, encumbrance, or restriction (whether on voting, sale,
transfer, disposition or otherwise), whether imposed by agreement,
understanding, law or otherwise, except those arising under applicable federal
or state securities laws.
ERISA. "ERISA" means the Employee Retirement Income Security Act of
-----
1974, as amended, or any successor statute.
Exchange Act. "Exchange Act" means the Securities Exchange Act of
------------
1934, as amended, or any successor statute.
Excluded Entities. "Excluded Entities" means LaTex Resources
-----------------
International Inc.; Wexford Technology, Inc.; Imperial Petroleum, Inc. and
Phoenix Metals, Inc.
GAAP. "GAAP," with respect to the LaTex Entities, means generally
----
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants, in statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession, which are
applicable to the circumstances as of the date of determination, and with
respect to the Alliance Entities, means Financial Reporting Standards and
Statements of Standard Accounting Practice issued by the Accounting Standards
Board and its predecessor which are current as of the date of determination.
Good and Defensible Title. "Good and defensible title" means such
-------------------------
title that (i) is deducible of record (or otherwise acceptable to a reasonably
prudent title examiner) and free from reasonable doubt to the end that a prudent
person engaged in the business of the ownership, development and operation of
oil and gas properties with knowledge of all of the facts and appreciation of
their legal significance would be willing to accept the same, (il) is free and
clear of all Encumbrances, except for Permitted Encumbrances, and (iii) with
respect to each Major Oil and Gas Interest of the Alliance Entities or the LaTex
Entities, as the case may be, entitles the relevant party or Subsidiary to
receive not less than the Net Revenue Interest set forth in Exhibit A-I or A-2
------------------
(with respect to the Alliance Entities), and Exhibit B-1 or B-2 (with respect
------------------
to the LaTex Entities) with respect to all Hydrocarbons produced and
attributable to such Major Oil and Gas Interest, and obligates the party or the
relevant Subsidiary to pay costs and expenses relating to such Major Oil and Gas
Interest in an amount not greater than the Working Interest set forth in Exhibit
-------
A-I or A-2 (with respect to the Alliance Entities), and Exhibit B-l or B-2 (with
- ---------- ------------------
respect to the LaTex Entities) with respect to such Major Oil and Gas Interest.
2
<PAGE>
Governmental Entity. A "Governmental Entity" is any federal, state,
-------------------
municipal, domestic or foreign court, tribunal, administrative agency,
department, commission, board, bureau or other governmental authority or
instrumentality.
Hydrocarbons. "Hydrocarbons" mean oil, gas and/or other liquid and
------------
gaseous hydrocarbons or any combination thereof.
LaTex. "LaTex" means LaTex Resources, Inc., a Delaware Corporation.
-----
LaTex Common Shares. "LaTex Common Shares" means all of the issued
-------------------
and outstanding common stock of LaTex, par value $.O1 per share.
LaTex Disclosure Schedule. The "LaTex Disclosure Schedule" is the
-------------------------
Disclosure Schedule delivered by LaTex to Alliance contemporaneously with the
execution of this Agreement. Each heading in the LaTex Disclosure Schedule shall
refer to the applicable section of this Agreement.
LaTex Entitles. "LaTex Entities" means LaTex and its Subsidiaries
--------------
other than the Excluded Entities.
LaTex Financial Statements. The "LaTex Financial Statements" are,
--------------------------
collectively, the respective audited consolidated financial statements of the
LaTex Entities as of and for the years ended July 31, 1994 and 1995; and the
respective unaudited interim consolidated financial statements of the LaTex
Entities as of and for the quarter and nine months ended April 30, 1996.
LaTex Interests. "LaTex Interests" means:
---------------
(a) the Major Oil and Gas Interests of the LaTex Entities;
(b) the Miscellaneous Interests of the LaTex Entities; and
(c) all of the rights, titles and interests, whether direct or
indirect, of the LaTex Entities in and to all of the property, rights and
interests incident to such Major Oil and Gas Interests or such Miscellaneous
Interests, including without limitation all of the rights, titles and interests
of the LaTex Entities in and to all LaTex Oil and Gas Contracts, leases, rights-
of-way, easements , options, orders and rulings of applicable regulatory
agencies, wells, lease and well equipment, machinery, production facilities,
processing facilities, gathering systems, transportation systems, disposal
systems, fixtures and other items of personal property and improvements now or
as of the Closing Date appurtenant to such Major Oil and Gas Interests or such
Miscellaneous Interests or used, obtained or held for use in connection with the
operation of such Major Oil and Gas Interests or such Miscellaneous Interests or
with the production, treatment, sale or disposal of Hydrocarbons or water
produced therefrom or attributable thereto.
LaTex's Reimbursable Expenses. "LaTex's Reimbursable Expenses" shall
-----------------------------
mean all costs and expenses, evidenced by reasonable and customary documentary
support, that have been incurred (prior to and following the execution of this
Agreement) by, or for which liability
3
<PAGE>
has (prior to and following the execution of this Agreement) arisen on the part
of the LaTex Entities in connection with (i) the investigation of the Alliance
Entities and due diligence conducted by or on behalf of LaTex and (ii) the
negotiation, execution and performance of this Agreement and the consummation of
the transactions contemplated hereby (including, without limitation, the
financing of the Merger), including, without limitation, (A) any financial
advisory fees payable by LaTex, (B) amounts payable in respect of legal,
financial and accounting services provided by outside advisors to LaTex and
(C) other reasonable expenses incurred by LaTex in connection with the Merger.
LaTex Reserve Report. "LaTex Reserve Report" means that reserve report
--------------------
with respect to Latex's Major Oil and Gas Interests effective April 1, 1996
prepared by Lee Keeling and Associates.
LaTex Series A Shares. "LaTex Series A Shares" means all of the issued
---------------------
and outstanding Series A Convertible Preferred Stock of LaTex, par value $.01
per share.
LaTex Series B Shares. "LaTex Series B Shares" means all of the issued
---------------------
and outstanding Series B Senior Convertible Preferred Stock of LaTex, par value
$.01 per share.
LaTex Shares. "LaTex Shares" means the LaTex Common Shares, LaTex
------------
Series A Shares and LaTex Series B Shares.
LaTex Stockholders. "LaTex Stockholders" means the holders of LaTex
------------------
Shares and holders of Options and Warrants of LaTex from time to time.
Leases. "Leases" means oil, gas and mineral leases, oil and gas
------
leases, oil leases, gas leases, other mineral leases, subleases, assignments of
operating rights and similar agreements, and any extensions or renewals thereof.
Major Non-Producing Leases. "Major Non-Producing Leases" of the
--------------------------
Alliance Entities or the LaTex Entities, as the case may be, means all of such
group's rights, titles and interests, including leasehold interests, whether
direct or indirect, in and to the lands and Leases described in Exhibit A-2
(with respect to the Alliance Entities) or Exhibit B-2 (with respect to the
LaTex Entities), as appropriate.
Major Oil and Gas Interests. "Major Oil and Gas Interests" of Alliance
---------------------------
Entities or the LaTex Entities, as the case may be, means (i) the Major
Producing Leases of the Alliance Entities or the LaTex Entities, as the case may
be, and (ii) the Major Non-Producing Leases of the Alliance Entities or the
LaTex Entities, as the case may be.
Major Producing Leases. "Major Producing Leases" of the Alliance
----------------------
Entities or the LaTex Entities, as the case may be, means all of such group's
rights, titles and interests, whether direct or indirect, in and to the Wells
described in Exhibit A-l (with respect to the Alliance Entities) or Exhibit B-1
----------- -----------
(with respect to the LaTex Entities) and in and to any Leases (whether or not
described in Exhibit A-1 (with respect to the Alliance Entities) or Exhibit B-2
----------- -----------
(with respect
4
<PAGE>
to the LaTex Entities) upon which such Wells have been drilled or which have
been pooled or unitized with Leases upon which such Wells have been drilled.
Material Effect. "Material Effect" means a material adverse effect on
---------------
the business or financial condition of a party and its Subsidiaries taken as a
whole.
Merger. "Merger" means the merger of Newco with and into LaTex as
------
described in Section 2.1.
-----------
Miscellaneous Interests. "Miscellaneous Interests" of the Alliance
-----------------------
Entities or the LaTex Entities, as the case may be, means all of such group's
claims, rights, titles and interests, whether direct or indirect, in and to all
Leases, royalty interests, overriding royalty interests and other oil, gas and
mineral properties of every kind and character, whether producing, non-
producing, developed or undeveloped, wherever situated (other than its Major Oil
and Gas Interests), including without limitation those oil, gas and mineral
properties described in Exhibit A-3 (with respect to the Alliance Entities) or
-----------
Exhibit B-3 (with respect to the LaTex Entities).
- -----------
Alliance. "Alliance" means Alliance Resources Plc, a public limited
--------
company incorporated in England and Wales.
Alliance Disclosure Schedule. The "Alliance Disclosure Schedule" is
----------------------------
the Disclosure Schedule delivered by Alliance to LaTex contemporaneously with
the execution of this Agreement. Each heading in the Alliance Disclosure
Schedule shall refer to the applicable section of this Agreement.
Alliance Entities. "Alliance Entities" means Alliance and its
-----------------
Subsidiaries.
Alliance Financial Statements. The "Alliance Financial Statements"
-----------------------------
are, collectively, the audited consolidated financial statements of the Alliance
Entities as of and for the year ended April 30, 1995 and the five month period
ended September 30, 1995; and the unaudited interim financial statements of the
Alliance Entities as of and for the six months ended October 31, 1995.
Alliance Interests. "Alliance Interests" means:
------------------
(a) the Major Oil and Gas Interests of the Alliance Entities;
(b) the Miscellaneous Interests of the Alliance Entities; and
(c) all of the rights, titles and interests, whether direct or
indirect, of the Alliance Entities in and to all of the property, rights and
interests incident to such Major Oil and Gas Interests or such Miscellaneous
Interests, including without limitation all of the rights, titles and interests
of the Alliance Entities in and to all Alliance Oil and Gas Contracts, leases,
rights-of-way, easements, options, orders and rulings of applicable regulatory
agencies, wells, lease and well equipment, machinery, production facilities,
processing facilities, gathering systems, transportation systems, disposal
systems, fixtures and other items of personal property and
5
<PAGE>
improvements now or as of the Closing Date appurtenant to such Major Oil and Gas
Interests or such Miscellaneous Interests or used, obtained or held for use in
connection with the operation of such Major Oil and Gas Interests or such
Miscellaneous Interests or with the production, treatment, sale or disposal of
Hydrocarbons or water produced therefrom or attributable thereto.
Alliance's Reimbursable Expenses. "Alliance's Reimbursable Expenses"
--------------------------------
shall mean all costs and expenses, evidenced by reasonable and customary
documentary support, that have been incurred (prior to and following the
execution of this Agreement) by, or for which liability has (prior to and
following the execution of this Agreement) arisen on the part of the Alliance
Entities in connection with (i) the investigation of the LaTex Entities and due
diligence conducted by or on behalf of Alliance and (ii) the negotiation,
execution and performance of this Agreement and the consummation of the
transactions contemplated hereby (including, without limitation, the financing
of the Merger), including, without limitation, (A) any financial advisory fees
payable by Alliance, (B) amounts payable in respect of legal, fmancial and
accounting services provided by outside advisors to Alliance and (C) other
reasonable expenses incurred by Alliance in connection with the Merger.
Alliance Reserve Report. "Alliance Reserve Report" means that reserve
-----------------------
report with respect to Alliance's Major Oil and Gas Interests effective April 1,
1996, prepared by Ryder Scott Company.
Alliance Shares. "Alliance Shares" means all of the issued and
---------------
outstanding ordinary shares of (Pounds)0.01 each in the capital of Alliance.
Alliance Stockholders. "Alliance Stockholders" means the holders of
---------------------
Alliance Shares from time to time.
Net Revenue Interest. "Net Revenue Interest" (or "NRI") means the
--------------------
decimal interest in and to all production of the Hydrocarbons produced and saved
or sold from the Alliance Interests or the LaTex Interests, as the case may be,
after giving effect to all valid lessors' royalties, overriding royalties and/or
other non-expense bearing burdens against production.
Net Revenue Interest After Payout. "Net Revenue Interest After
---------------------------------
Payout" ("NRIAPO") means the NRI after any payout occurs in connection with any
NRI described in Exhibits A-l and A-2 (with respect to the Alliance Entities) or
--------------------
Exhibits B-l and B-2 (with respect to the LaTex Entities) to this Agreement.
- --------------------
Such payouts are defined and shall occur pursuant to the agreements relating
thereto.
Net Revenue Interest Before Payout. "Net Revenue Interest Before
----------------------------------
Payout" ("NRIBPO") means the NRI before any payout occurs in connection with any
NRI described in Exhibits A-l and A-2 (with respect to the Alliance Entities) or
--------------------
Exhibits B-l and B-2 (with respect to the LaTex Entities) to this Agreement.
- --------------------
Such payouts are defined and shall occur pursuant to the agreements relating
thereto.
Oil and Gas Contracts. "Oil and Gas Contracts" means all Leases,
---------------------
permits, licenses, farmout or farmin agreements, bottom hole or acreage
contribution agreements,
6
<PAGE>
operating agreements, unit agreements, declarations or orders, joint venture,
exploration, participation or acquisition agreements, division orders,
production sales, purchase, exchange, processing or transportation agreements
and all other contracts and agreements in effect or in existence on the date
hereof and affecting or relating to the ownership or operation of the Alliance
Interests or the LaTex Interests, as the case may be, or the disposition of the
Hydrocarbons produced therefrom. The Oil and Gas Contracts affecting or relating
to the Alliance Interests are referred to herein as the "Alliance Oil and Gas
Contracts" and the Oil and Gas Contracts affecting or relating to the LaTex
Interests are referred to herein as the LaTex Oil and Gas Contracts.
Paying Agent. "Paying Agent" means the transfer agent for the Alliance
------------
Shares.
Permitted Encumbrances. "Permitted Encumbrances" means (i) lessor's
royalties, overriding royalties, division orders and sales contracts covering
Hydrocarbons, reversionary interests and similar burdens and all existing
operating agreements and unit agreements, if the net cumulative effect of the
same does not operate to reduce the Net Revenue Interests of the Alliance
Interests or the LaTex Interests, as the case may be, to less than the Net
Revenue Interests set forth in Exhibits A-1 and A-2 (with respect to the
--------------------
Alliance Entities) or Exhibits B-1 and B-2 (with respect to the LaTex Entities)
--------------------
or increase the Working Interests of the Alliance Interests or the LaTex
Interests, as the case may be, to more than the Working Interests set forth in
Exhibits A-l and A-2 (with respect to the Alliance Entities) or Exhibits B-1 and
- -------------------- ----------------
B-2 (with respect to the LaTex Entities) (unless there is a corresponding
- ---
increase in the Net Revenue Interests); (ii) any and all federal and state
regulatory orders and rules to which the Alliance Interests or the LaTex
Interests, as the case may be, are presently subject; (iii) preferential rights
to purchase and required third-party consents to assignments and similar
agreements; (iv) liens for Taxes not due or not delinquent at the time of
Closing or the validity of which are being contested in good faith by
appropriate actions; (v) statutory Encumbrances not yet delinquent; (vi) all
rights to consent by, required notices to, filings with, or other actions by
governmental entities in connection with the sale or conveyance of leases or
interests therein if the same are customarily obtained after such sale or
conveyance; (vii) easements, rights-of-way, servitudes, permits, surface leases
and other rights in respect of surface operations, pipelines, grazing, logging,
canals, ditches, reservoirs or the like; and easements for streets, alleys,
highways, pipelines, telephone lines, power lines, railways and other easements
and rights-of-way, on, over or in respect of any of the Alliance Interests or
the LaTex Interests, as the case may be; (viii) liens of operators relating to
obligations not yet due or not delinquent; (ix) title problems commonly
encountered in the oil and gas business which would not be considered material
by a reasonable and prudent person engaged in the business of the ownership,
development and operating of oil and gas properties with knowledge of all the
facts and appreciation of their legal significance; and (x) Encumbrances
described in Exhibit A-1, A-2 and A-3 (with respect to the Alliance Entities) or
-----------------------
Exhibit B-1, B-2 and B-3 (with respect to the LaTex Entities).
- ------------------------
Plan. "Plan" means (i) any employee benefit plan as defined in
----
Section 3(3) of ERISA, which is (a) maintained by a party or any of its
Subsidiaries, or (b) to which a party or any of its Subsidiaries is making or
accruing an obligation to make contributions, or (ii) any other formal or
informal obligation to, arrangement with, or plan or program for the benefit of,
employees of a party or any of its Subsidiaries, including, but not limited to,
stock options, stock bonuses, stock purchase agreements, bonuses, incentive
compensation, deferred compensation,
7
<PAGE>
supplemental pensions, vacations, severance pay, insurance or any other benefit,
program or practice.
Securities Act. "Securities Act" means the Securities Act of 1933, as
--------------
amended, or any successor statute.
Subsidiary and Subsidiaries. "Subsidiary" or "Subsidiaries" means any
---------------------------
corporation more than fifty percent (50%) of the voting power of which is owned
directly or indirectly by a party or other relevant person, as the context
requires, other than the Excluded Entities with respect to LaTex.
Surviving Corporation. "Surviving Corporation" is as defined in
---------------------
Section 2.1.
- -----------
Taxes. "Taxes" means all taxes, charges, fees, levies, duties or other
-----
assessments, including, without limitation, income, gross receipts, excise, ad
valorem, property, production, severance, sales, use, license, payroll and
franchise taxes, imposed by any Govermnental Entity and includes any estimated
tax, interest and penalties or additions to tax.
Tax Return. "Tax Return" means a report, return or other information
----------
required to be supplied by a party comprising a part of the Alliance Entities or
the LaTex Entities, as the case may be, to a Governmental Entity in connection
with Taxes including, where permitted or required, combined or consolidated
returns for any group of entities that includes that entity.
Warrants. "Warrants" means those warrants to purchase up to 3,034,750
--------
LaTex Common Shares pursuant to publicly and privately issued warrants.
Wells. "Wells" means the wells described in Exhibit A-1 (with respect
----- -----------
to the Alliance Entities) or Exhibit B-1 (with respect to the LaTex Entities),
-----------
as appropriate. The Wells of the Alliance Entities are referred to herein as
"Alliance' s Wells" and the Wells of the LaTex Entities are referred to herein
as "LaTex's Wells."
Working Interest. "Working Interest" ("WI") means the decimal interest
----------------
in the full and entire leasehold estate in any of the Alliance Interests or the
LaTex Interests, as the case may be, and all rights and obligations of every
kind and character pertinent thereto or arising therefrom, without regard to any
valid lessor royalties, overriding royalties and/or other burdens against
production insofar as interest in said leasehold is burdened with the obligation
to bear and pay the cost of exploration, development and operation.
Working Interest After Payout. "Working Interest After Payout"
-----------------------------
("WIAPO") means the WI after any payout occurs in connection with any WI
described in Exhibits A-1 and A-2 (with respect to the Alliance Entities) or
--------------------
Exhibits B-1 and B-2 (with respect to the LaTex Entities) to this Agreement.
- --------------------
Such payouts are defined and shall occur pursuant to the agreements relating
thereto.
Working Interest Before Payout. "Working Interest Before Payout
------------------------------
("WIAPO") means the WI before any payout occurs in connection with any WI
described in Exhibits A-1 and
------------
8
<PAGE>
A-2 (with respect to the Alliance Entities) or Exhibits B-1 and B-2 (with
- --- --------------------
respect to the LaTex Entities) to this Agreement. Such payouts are defined and
shall occur pursuant to the agreements relating thereto.
2. The Merger
----------
2.1 The Merger. Subject to the terms and conditions of this
----------
Agreement, at the Effective Time, Newco shall be merged with and into LaTex and
the separate corporate existence of Newco shall cease (the "Merger"). LaTex
shall be the surviving corporation in the Merger (sometimes referred to as the
"Surviving Corporation") and shall continue to be governed by the laws of the
State of Delaware, and the separate corporate existence of LaTex with all its
rights, privileges, immunities, powers and franchises shall continue unaffected
by the Merger, except as set forth below in this Article 2. The Merger shall
---------
have the effects specified in the DGCL.
2.2 Effective Time. On the Closing Date, LaTex and Alliance will
--------------
cause a Certificate of Merger (the "Certificate of Merger") to be executed and
filed with the Secretary of State of Delaware as provided in Section 251 of the
DGCL to reflect the Merger. The Merger shall become effective at the date and
time at which the Certificate of Merger is duly filed with the Secretary of
State of Delaware, and such time is referred to in this Agreement as the
"Effective Time."
2.3 The Certificate of Incorporation. The Certificate of
--------------------------------
Incorporation of LaTex in effect at the Effective Time shall be the Certificate
of Incorporation of the Surviving Corporation, until duly amended in accordance
with the terms thereof and the DGCL.
2.4 The Bylaws. The Bylaws of LaTex in effect at the Effective Time
----------
shall be the Bylaws of the Surviving Corporation, until duly amended in
accordance with the terms thereof and the DGCL.
2.5 Officers and Directors. The officers and directors of Newco at
----------------------
the Effective Time shall be the officers and directors of the Surviving
Corporation until their successors have been duly elected or appointed and
qualified or until their earlier death, resignation or removal in accordance
with the Surviving Corporation's Certificate of Incorporation and Bylaws.
2.6 Conversion or Cancellation of LaTex Shares and Newco Shares. The
-----------------------------------------------------------
LaTex Shares shall be cancelled and the Newco Shares shall be converted in the
Merger as follows:
(a) At the Effective Time,
(i) each LaTex Common Share issued and outstanding immediately
prior to the Effective Time, other than Dissenting Shares, shall by
virtue of the Merger and without any action on the part of the holder
thereof, be cancelled and the holder shall, in consideration of such
cancellation, become entitled to the allotment of 0.8806 Alliance
Shares;
9
<PAGE>
(ii) each LaTex Series A Share issued and outstanding
immediately prior to the Effective Time, other than Dissenting Shares,
shall by virtue of the Merger and without any action on the part of
the holder thereof, be cancelled and the holder shall, in
consideration of such cancellation, become entitled to the allotment
of 2.6445 Alliance Shares;
(iii) each LaTex Series B Share issued and outstanding
immediately prior to the Effective Time, other than Dissenting Shares,
shall by virtue of the Merger and without any action on the part of
the holder thereof, be cancelled and the holder shall, in
consideration of such cancellation, become entitled to the allotment
of 5.8709 Alliance Shares;
(iv) each Warrant outstanding at the signing of this Agreement,
and remaining outstanding at the Effective Time, whether or not then
exercisable or vested, shall be cancelled and the holders shall, in
consideration of such cancellation, become entitled to receive a new
warrant issued by Alliance pursuant to which the holder will have the
right to subscribe for, in accordance with the terms and subject to
the conditions of the existing Warrant, that number of Alliance Shares
as the holder would have been entitled to receive had the holder
exercised the existing Warrant immediately prior to the Closing Date,
but only in accordance with the terms and conditions of the existing
Warrant,
with the result that, immediately after the Effective Time, the persons who held
LaTex Shares (including those who receive LaTex Shares in consideration for the
cancellation of outstanding options to purchase LaTex Shares) shall hold
21,448,520 Alliance Shares, constituting 72% of the Alliance Shares then
outstanding (including the 237,500 post-reverse split Alliance Shares issuable
upon exercise of the options approved for management of Alliance) and the
holders of Warrants shall have the right to subscribe an additional 0.8806
Alliance Shares for each LaTex Common Share subject to the Warrants, pursuant to
replacement warrants to be issued by Alliance under the provisions of Section
-------
2.6(a)(iv), subject, in each case, to appropriate adjustments to reflect the
- ----------
reverse stock split referred to in Section 2.10(c).
---------------
(b) By virtue of the Merger and without any action on the part of the
holders thereof, all LaTex Shares and all Warrants shall no longer be
outstanding and shall be canceled and shall cease to exist and each holder of a
certificate representing LaTex Shares or an agreement representing Warrants
shall thereafter cease to have any rights with respect to such LaTex Shares or
such Warrants, and in consideration therefor shall be entitled to receive the
Alliance Shares specified in this Section upon the surrender of the certificate
representing the LaTex Shares as provided in Section 2.7, or the new warrant
-----------
issued by Alliance upon the surrender of the agreement with respect to the
Warrant as provided in Section 2.7 or the right, if any, to receive payment from
-----------
the Surviving Corporation of the "fair value" of such LaTex Shares as determined
in accordance with Section 262 of the DGCL. This Agreement shall effect an
amendment to the Certificate of Incorporation of LaTex with the effects
described in this Article 2, and approval of this Agreement by holders of LaTex
---------
Shares shall constitute approval of such amendments. Until such surrender, no
dividend or other distribution, if any, payable to holders of record of Alliance
Shares as of any date on or after the Closing Date shall be paid to the holder
of certificates
10
<PAGE>
representing LaTex Shares but upon surrender of certificates representing the
LaTex Shares as provided in Section 2.7, such holder shall be entitled to
-----------
receive all dividends and other distributions, if any, without interest, that
have become payable subsequent to the Effective Time with respect to the number
of Alliance Shares such holder is to receive.
(c) At the Effective Time, each Newco Share issued and outstanding
immediately prior to the Effective Time shall, by virtue of the Merger and
without any action on the part of Newco or the holder of such Shares, be
converted into one share of common stock of the Surviving Corporation.
2.7 Payment for LaTex Shares; New Warrants.
--------------------------------------
(a) Alliance shall, with effect from the Effective Time, allot the new
Alliance Shares to the holders of LaTex Shares which allotment shall be
conditioned on the relevant holders of LaTex Shares complying with Section
-------
2.7(b) and shall make available or cause to be made available to the Paying
- ------
Agent at the Effective Time certificates in respect of the Alliance Shares
sufficient to enable the Paying Agent to deliver the necessary certificates in
respect of the Alliance Shares to the holders of LaTex Shares as required by
Section 2.6.
- -----------
(b) On or after the Closing Date, each person who is at the Effective
Time a holder of record of issued and outstanding LaTex Shares may deliver to
the Paying Agent a letter of transmittal in a form suitable to the Paying Agent
duly executed and completed in accordance with the instructions thereto,
together with such holders' certificates representing such LaTex Shares, and
Alliance shall cause the Paying Agent to deliver to such holders certificates in
respect of the Alliance Shares and any dividends or distributions thereon to
which such holders are then entitled. Upon surrender to the Paying Agent of such
certificates, together with such letter of transmittal, duly executed and
completed in accordance with the instructions thereto, Alliance shall promptly
cause to be delivered to the persons entitled thereto certificates in respect of
the Alliance Shares and any dividends or distributions thereon to which such
persons are then entitled.
(c) Fractional Alliance Shares will not be issued to any person. In
lieu of issuing a fractional Alliance Share to any person, Alliance will round
the number of Alliance Shares to be issued to each person to the nearest whole
number of Alliance Shares.
(d) If Alliance Shares are to be issued to a person other than the
registered holder of the certificates surrendered, it shall be a condition of
such issue that the certificates so surrendered shall be properly endorsed or
otherwise in proper form for transfer and that the person requesting such
delivery shall pay any transfer or other taxes required by reason of the
delivery to a person other than the registered holder of the certificates
surrendered or establish to the satisfaction of Alliance or the Paying Agent
that such tax has been paid or is not applicable.
(e) Sixty (60) days following the Effective Time, Alliance shall be
entitled to cancel the allotment of Alliance Shares and to cause the Paying
Agent to deliver to Alliance the share certificates in respect of any Alliance
Shares made available to the Paying Agent that have not been delivered to
holders of certificates formerly representing LaTex Shares outstanding at the
Effective Time, and thereafter, such holders shall be entitled to look to
Alliance only as general
11
<PAGE>
creditors thereof with respect to the issue of Alliance Shares and any dividends
or distributions thereon upon due surrender of their certificates or agreements.
Notwithstanding the foregoing, neither the Paying Agent nor any party hereto
shall be liable to any holder of certificates formerly representing LaTex Shares
for any Alliance Shares or any dividends or distributions thereon delivered to a
public official pursuant to any applicable abandoned property, escheat or
similar law. Alliance shall pay all charges and expenses, including those of the
Paying Agent, in connection with the exchange of Alliance Shares for LaTex
Shares.
(f) On or after the Closing Date, each person who is at the
Effective Time a holder of record of issued and outstanding Warrants may deliver
to Alliance the agreements representing such Warrants and Alliance shall deliver
to such holders an agreement representing the new warrants to purchase Alliance
Shares on the terms of, and as provided by, Section 2. 6(a)(iv).
2.8 Dissenters' Rights.
------------------
(a) Notwithstanding anything in this Agreement to the contrary,
LaTex Shares that are issued and outstanding immediately prior to the Effective
Time and that are held by LaTex Stockholders who have delivered a written demand
for appraisal of such LaTex Shares in the manner provided in Section 262 of the
DGCL (the "Dissenting Shares") shall not be cancelled and the holders thereof
shall not receive the right to receive the consideration provided in Section
-------
2.6(a), unless and until such holder shall have failed to perfect or shall have
- ------
effectively withdrawn or lost the right to appraisal and payment under the DGCL,
as the case may be. If such holder shall have failed to perfect or shall have
effectively withdrawn or lost such right, the LaTex Shares shall thereupon be
deemed to have been cancelled and the holders thereof to have become entitled,
with effect from the Effective Time, to receive the consideration specified in
Section 2.6.
- -----------
(b) LaTex promptly shall give Alliance notice of any demand made by
or on behalf of any dissenting LaTex Stockholder to be paid the "fair value" of
the LaTex Stockholder's LaTex Shares, as provided in Section 262 of the DGCL,
and the Surviving Corporation shall thereupon have sole and exclusive rights to
conduct and resolve, in its sole discretion, all negotiations proceedings and
ultimate disposition with respect to any such demands in any manner that the
Surviving Corporation may elect. All such payments shall be made solely by the
Surviving Corporation and shall not be made by, nor shall Alliance reimburse the
Surviving Corporation for, such payments.
2.9 Transfer of LaTex Shares After the Effective Time. No transfers
-------------------------------------------------
of LaTex Shares shall be made on the stock transfer books of the Surviving
Corporation at or after the Effective Time. If, after the Effective Time,
certificates formerly representing LaTex Shares are presented to the Surviving
Corporation, they shall be canceled and the holders thereof shall instead be
entitled to be issued Alliance Shares as provided in this Article 2.
---------
2.10 Approval of the Stockholders and Registration.
---------------------------------------------
(a) As soon as reasonably practicable after the date of this
Agreement, LaTex will, in compliance with all applicable state and federal laws,
and in form and substance
12
<PAGE>
satisfactory to Alliance, file with the Commission solicitation material
necessary, and use its best efforts, after effectiveness of the registration
statement referred to in Section 2.10(b), to obtain the approval of the LaTex
Stockholders to the Merger. The materials sent by LaTex in connection with the
approval of the LaTex Stockholders will not include any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. Alliance agrees to furnish to LaTex all
information (which shall meet the standard of the preceding sentence) reasonably
requested by LaTex in connection with preparing such materials. The materials
shall in form and substance be satisfactory to Alliance and shall include all
information regarding the Alliance Entities required by applicable law to inform
holders of the LaTex Shares of all necessary information concerning the Merger
and of their appraisal rights under the DGCL. LaTex agrees to use its best
efforts to cooperate with Alliance in soliciting the approval of the LaTex
Stockholders to the Merger as soon as is reasonably practicable. Subject to
compliance with their fiduciary duties in connection with an Alternative
Transaction as described in Section 6.9 as advised in writing by outside
counsel, the board of directors of LaTex shall recommend approval by the LaTex
Stockholders of the Merger, without reservation or qualification.
(b) As soon as reasonably practicable after the date of this
Agreement, Alliance will, in compliance with all applicable state and federal
laws, and in form and substance satisfactory to LaTex, file with the Commission
and applicable state authorities, and use its best efforts to obtain the
effectiveness of, a registration statement relating to the issuance of the
Alliance Shares in the Merger. The filing may be made in conjunction with the
filing by LaTex of solicitation material for the LaTex Stockholders. The
materials filed by Alliance will not include any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading. LaTex agrees to furnish to Alliance all information
(which shall meet the standard of the preceding sentence) reasonably requested
by Alliance in connection with preparing such materials. The materials shall in
form and substance be satisfactory to LaTex and shall include all information
regarding the Alliance Entities required by applicable law to inform holders of
the LaTex Shares of all necessary information concerning the Merger and of their
appraisal rights under the DGCL.
(c) As soon as reasonably practicable after the date of this
Agreement, Alliance will, in compliance with all applicable laws, and in form
and substance satisfactory to LaTex, file with London Stock Exchange Limited
solicitation materials reasonably necessary, and use its best efforts, to obtain
the approval of the Alliance Stockholders to the Merger, to the issue of the new
Alliance Shares and to a 40 to one reverse stock split of the Alliance Shares.
The materials sent by Alliance in connection with the approval of Alliance
Stockholders will not include any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. LaTex agrees to furnish to Alliance all information (which shall
meet the standard of the preceding sentence) reasonably requested by Alliance in
connection with preparing such materials. The materials shall in form and
substance be satisfactory to LaTex and shall include all information regarding
the LaTex Entities required by applicable law or regulation to inform holders of
the Alliance Shares of all necessary information concerning the Merger and the
reverse stock split. Alliance agrees to use its best efforts in soliciting the
approval of the Alliance
13
<PAGE>
Stockholders to the Merger and the reverse stock split as soon as is reasonably
practicable. Subject to compliance with their fiduciary duties in connection
with an Alternative Transaction as described in Section 7.8 as advised in
-----------
writing by outside counsel, the board of directors of Alliance shall recommend
approval by the Alliance Stockholders of the Merger and the reverse stock split,
without reservation or qualification.
2.11 Restructuring Option. At any time on or before September 15,
--------------------
1996, Alliance shall have the right (but not the obligation) to elect to
restructure the Merger and the transaction contemplated thereby in a manner
determined by Alliance with the consent of LaTex, which consent will not be
unreasonably withheld, and which restructured transaction will include the
following: (a) the LaTex Stockholders (excluding holders of LaTex Warrants)
will, immediately prior to the completion of the transaction, hold 72% of the
equity, and the Alliance Stockholders and the holders of Alliance options will,
immediately prior to the completion of the transaction, hold 28% of the equity,
and (b) the matters to be addressed in the opinion described in Section 9(k)
------------
will be true and correct as of the closing of such restructured transaction.
Furthermore, such restructured transaction will, to the extent reasonably
practical, otherwise contain the terms reflected in this Agreement. Upon
Alliance's timely exercise of its rights under this Section, the parties shall
promptly execute such documents and agreements and shall take such other action
as may be necessary or appropriate to effect such restructuring.
3. The Closing.
-----------
3.1 Time and Place of Closing. The closing of the Merger (the
-------------------------
"Closing"), shall, unless otherwise agreed to in writing by the parties, take
place at the offices of Jenkens & Gilchrist, P.C., 1445 Ross Avenue, Suite 3200,
Dallas, Texas at 10:00 a.m., local time, on the Closing Date.
3.2 Obligations of LaTex at or Prior to the Closing. At or prior to
-----------------------------------------------
the Closing, LaTex shall deliver to Alliance the following:
(a) A copy of the charters of each of the LaTex Entities certified
as of a date within ten days of the Closing Date by the Secretary of State of
the state of incorporation of each of the respective entities and certified by
the respective corporate secretary as to the absence of any amendments between
the date of certification by the respective Secretary of State and the Closing
Date;
(b) A certificate from the appropriate governmental officials of the
state of incorporation as to the existence and good standing of each of the
LaTex Entities and the payment of Taxes by each of the LaTex Entities as of a
date within ten days of the Closing Date, and, if available, a telecopy from
such officials as to the same matters dated the business day before the Closing
Date;
(c) A certificate of the corporate secretary of each of the LaTex
Entities attaching thereto a true and correct copy of the bylaws of the
respective entity;
14
<PAGE>
(d) A certificate of the corporate secretary of LaTex attaching
copies of the resolutions of the board of directors and the LaTex Stockholders
approving the Merger;
(e) The Certificate of Merger duly executed on behalf of LaTex;
(f) The certificate of an officer of LaTex referred to in Section
-------
8(b);
- ----
(g) The agreement from each of the Affiliates of LaTex relating to
his, her or its investment in the Alliance Shares referred to in Section 8(d);
------------
(h) The opinion of LaTex's counsel referred to in Section 8(e);
------------
(i) All contracts, contract amendments, LaTex Oil and Gas Contracts,
commitments, leases, books, records, files and other data relating to any of the
LaTex Entities and their assets then in the possession of the LaTex
Stockholders;
(j) All consents or approvals of any third party that are required
to be identified pursuant to Section 4.4; and
-----------
(k) Such other documents as are required pursuant to this Agreement
or as may reasonably be requested from LaTex by Alliance or its counsel.
3.3 Obligations of Alliance and Newco at or Prior to the Closing. At
------------------------------------------------------------
or prior to the Closing, Alliance shall deliver to LaTex the following:
(a) a copy of the Memorandum and Articles of Association (and all
amendments thereto, if any) of Alliance and each of Alliance's U.K. Subsidiaries
certified by the corporate secretary as to the absence of any amendments as of
the Closing Date;
(b) a copy of the charters of Newco and each of Alliance's
Subsidiaries not included in Section 3.3(a) certified as of a date within ten
--------------
days of the Closing Date by the appropriate governmental officials of the
jurisdiction of organization of each of the respective entities and certified by
the respective corporate secretary as to the absence of any amendments between
the date of certification by the governmental official and the Closing Date;
(c) A certificate from the appropriate governmental officials of the
jurisdiction of organization of Newco and each of Alliance's Subsidiaries not
included in Section 3.3(a) as to the existence and good standing of such
--------------
Subsidiary as of the date within ten days of the Closing Date, and, if
available, a telecopy from such officials as to the same matters dated the
business day before the Closing Date;
(d) A certificate of the corporate secretary of each of Alliance and
Newco attaching copies of corporate resolutions duly adopted by the board of
directors and stockholders of each of them approving the Merger, the issue of
new Alliance Shares, the reverse stock split and authorizing the consummation of
the transactions contemplated hereby;
15
<PAGE>
(e) The Certificate of Merger duly executed on behalf of New co;
(f) The certificate of an officer of Alliance and New co referred to
in Section 9(b);
------------
(g) The opinions of Alliance's and Newco's counsel referred to in
Section 9(d);
- ------------
(h) All consents or approvals of any third party that are required
to be identified pursuant to Section 5.4;
-----------
(i) Such other documents as are required pursuant to this Agreement
or as may reasonably be requested from Alliance by LaTex or its counsel.
4. Representations, Warranties and Covenants of LaTex. Except as
--------------------------------------------------
expressly set forth and specifically identified by section number of this
Agreement in the LaTex Disclosure Schedule, LaTex represents, warrants and
covenants to Alliance and Newco, on the date hereof and as of the Closing Date,
as follows:
4.1 Corporate Organization.
----------------------
(a) Each of the LaTex Entities is a corporation duly organized and
validly existing as a corporation and in good standing under the laws of its
jurisdiction of incorporation. Each of the LaTex Entities has the requisite
corporate power and authority to carry on its business as now being conducted
and to own, lease and operate its property and assets, and each of the LaTex
Entities is duly qualified or licensed to do business and is in good standing in
every jurisdiction in which the failure to be so qualified and licensed could
have a Material Effect. Section 4.1 of the LaTex Disclosure Schedule sets forth
--------------------------------------------
the name and state of incorporation of each of the LaTex Entities and each state
in which each of them is qualified or licensed to do business. LaTex has
heretofore delivered to Alliance true, correct and complete copies of each of
the LaTex Entities' respective Certificate of Incorporation and Bylaws as
presently in effect.
(b) Section 4.1 of the LaTex Disclosure Schedule sets forth a
--------------------------------------------
complete list of the present officers and directors of each of the LaTex
Entities.
4.2 Capitalization.
--------------
(a) The authorized, issued and outstanding capital stock of each of
the LaTex Entities is as set forth in Section 4.2 of the LaTex Disclosure
-----------------------------------
Schedule. All of the issued shares of each of the LaTex Entities are validly
- --------
issued, fully paid and nonassessable and none of such shares have been issued in
violation of the preemptive rights of any person.
(b) There are no (i) shares of capital stock or other securities
bearing voting or other equity rights, whether contingent or not, of any of the
LaTex Entities outstanding; (ii) outstanding subscriptions, puts, options,
warrants or other rights, contractual or otherwise, to purchase or acquire any
capital stock of any of the LaTex Entities; or (iii) contracts, commitments,
understandings, arrangements or restrictions by which any of the LaTex Entities
16
<PAGE>
is or may become bound to issue any additional equity interests or any options
or rights with respect thereto, or any securities convertible into any equity
interests.
(c) The issued and outstanding stock of LaTex owned by the
directors, executive officers and 5 % or greater stockholders of LaTex is owned
of record, and to the knowledge of LaTex, beneficially, as described in Section
-------
4.2 of the LaTex Disclosure Schedule. LaTex owns all of the issued and
- ------------------------------------
outstanding stock of each of its Subsidiaries, directly or indirectly, free and
clear of all Encumbrances. Except for its Subsidiaries, neither LaTex nor any of
its Subsidiaries owns or holds any equity, debt or other interest in any entity
or business or any option to acquire any such interest, except for accounts
receivable that have arisen in the ordinary course of business.
4.3 Authority; No Violation.
-----------------------
(a) The execution and performance of this Agreement by LaTex have
been duly and validly authorized by the board of directors of LaTex and, except
for the approval of the LaTex Stockholders, no other corporate action is
necessary to authorize the execution, delivery and performance of this Agreement
by LaTex. LaTex has full, absolute and unrestricted right, power and authority
to execute and perform this Agreement and, subject to the approval by the LaTex
Stockholders, to carry out the transactions contemplated hereby. This Agreement
has been duly and validly executed by LaTex and, subject to approval by the
LaTex Stockholders, is a valid and binding obligation of LaTex, enforceable in
accordance with its terms, except as enforceability may be limited by
bankruptcy, moratorium, reorganization, receivership or similar laws affecting
the rights of creditors generally.
(b) None of the execution, delivery or performance of this Agreement
does or will, after the giving of notice, lapse of time or otherwise, (j) result
in any violation of or be in conflict with or constitute a default under any
term or provision of the Certificate of Incorporation or Bylaws of any of the
LaTex Entities of or any term or provision of any judgment, decree, order,
statute, injunction, rule or regulation applicable to any of the LaTex Entities,
or of any material note, bond, mortgage, indenture, lease, license, franchise,
agreement or other instrument or obligation to which any of the LaTex Entities
is bound; (ii) result in the creation of any material Encumbrance upon LaTex
Shares, the securities of the Surviving Corporation or any of the properties or
assets of the LaTex Entities pursuant to any such term or provision; or (iii)
constitute a material default under or give any party the right to accelerate,
amend or modify, terminate, abandon or refuse to perform or comply with, any
material contract, agreement, arrangement, commitment or plan to which any LaTex
Entities is a party, or by which any of the LaTex Entities or any of their
rights, properties or assets may be subject or bound.
4.4 Consents and Approvals. No consent, waiver, approval or
----------------------
authorization of, or declaration, designation, filing, registration or
qualification with, any Governmental Entity or any third party, is required to
be made or obtained by the LaTex Entities in connection with the execution,
delivery and performance of this Agreement or to preserve any material rights
and benefits enjoyed by any of the LaTex Entities on the date hereof following
the consummation of the transactions contemplated by this Agreement except (a)
those that have already been obtained or (b) those specifically contemplated by
this Agreement.
17
<PAGE>
4.5 Violations of Laws, Permits, etc.
--------------------------------
(a) None of the LaTex Entities is in violation of any term or
provision of its Certificate of Incorporation or Bylaws. None of the LaTex
Entities is in violation of any term or provision of any judgment, decree,
order, statute, injunction, rule, ordinance or regulation applicable to it, or
of any agreement or instrument applicable to such entity where the violation
thereof would result in a Material Effect.
(b) Each of the LaTex Entities holds and has maintained in full
force and effect all certificates, licenses and permits material to the conduct
of its business, and has not received any notification that any revocation or
limitation thereof is threatened or pending where such revocation or limitation
would result in a Material Effect.
4.6 LaTex Financial Statements.
--------------------------
(a) In all material respects the consolidated LaTex Financial
Statements fairly present the consolidated assets, liabilities and financial
position of the respective entities purported to be covered thereby as of the
dates thereof and the results of their operations and cash flow for the
respective periods ended on such dates, all in conformity with GAAP consistently
applied, except that the April 30, 1996 unaudited interim financial statements
do not contain footnotes (that, if presented, would not differ materially from
those in the audited LaTex Financial Statements) and are subject to normal,
recurring year-end adjustments (which will not, individually or in the
aggregate, have a Material Effect).
(b) The LaTex Financial Statements were prepared from the books and
records of each of the respective entities purported to be covered thereby. Such
LaTex Financial Statements do not contain any items of a material special or
nonrecurring nature, except as expressly noted in such statements.
4.7 No Undisclosed Liabilities, etc. None of the LaTex Entities has
-------------------------------
any material liabilities or obligations, whether direct, indirect, absolute or
contingent (including, without limitation, liabilities as guarantor or otherwise
with respect to obligations of others), except (a) liabilities that are fully
reflected on or reserved against on the latest balance sheet of such entity
included in the LaTex Financial Statements or (b) liabilities incurred in the
ordinary course of business since the date of the latest balance sheet included
in the LaTex Financial Statements that are consistent with past practice.
4.8 Absence of Certain Changes. Since the date of the latest audited
--------------------------
LaTex Financial Statement, except as specifically disclosed in the April 30,1996
unaudited interim consolidated LaTex Financial Statements, none of the LaTex
Entities has:
(a) Suffered any change that would result in a Material Effect;
(b) Adopted or made any change in any pension, retirement, profit
sharing or other employee benefit plan or arrangement;
18
<PAGE>
(c) Borrowed or agreed to borrow any money or incurred, assumed or
become subject to, whether directly or by way of guarantee or otherwise, any
other material obligation or liability for borrowed money, whether absolute or
contingent;
(d) (i) Issued, purchased or redeemed any of its capital securities
or any option, warrant or right to purchase any of the same; or (ii) authorized,
declared or made any dividends, distributions of earnings or capital on, or
splits or any other reclassification of its equity securities;
(e) Mortgaged, pledged or subjected to any Encumbrance any of its
assets, tangible or intangible, having a value in excess of $25,000 in the
aggregate;
(f) Acquired or disposed of, or entered into any agreement to
acquire or dispose of, any material assets or properties, other than oil and gas
production in the ordinary course of business, or other assets having a value in
excess of $25,000 in the aggregate;
(g) Increased the salaries, compensation, pension or other benefits
payable, or paid any bonuses, to its officers and directors or their Affiliates;
(h) Forgiven or canceled any debts or claims or waived any rights
against the LaTex Stockholders or any officer or director of the LaTex Entities
or their Affiliates or forgiven or canceled any debts or claims or waived any
rights against any other person in excess of $25,000 in the aggregate;
(i) Entered into, terminated or received notice of the termination
of any commitment, contract, agreement or transaction that is material to any of
the LaTex Entities; or
(j) Agreed, either in writing or otherwise, to take any action
described in this Section 4.8.
-----------
4.9 Title to Property; Encumbrances.
-------------------------------
(a) The LaTex Entities, either directly or indirectly, have (and as
of the Closing will have) good and defensible title to the LaTex Interests.
(b) The LaTex Entities own no real property other than the LaTex
Interests. Section 4.29 of the LaTex Disclosure Schedule sets forth a complete
---------------------------------------------
list of all real property other than the LaTex Interests that the LaTex Entities
lease or sublease, and which lease or sublease provides for payments at an
annual rate in excess of $25,000. LaTex has delivered to Alliance correct and
complete copies of all such leases and subleases (the "LaTex Real Property
Leases"). With respect to each such Real Property Lease:
(i) each LaTex Real Property Lease is legal, valid, binding,
enforceable and in full force and effect;
19
<PAGE>
(ii) each LaTex Real Property Lease will continue to be legal, valid,
binding, enforceable and in full force and effect on identical terms
following the consummation of the transactions contemplated hereby;
(iii) to the knowledge of the LaTex Entities, no party to any LaTex
Real Property Lease is in breach or default and no event has occurred
which, with notice or lapse of time, would constitute a breach or default
or permit termination, modification or acceleration thereunder;
(iv) to the knowledge of the LaTex Entities, no party to any LaTex
Real Property Lease has repudiated any provision thereof;
(v) to the knowledge of the LaTex Entities, there are no disputes,
oral agreements or forbearance programs in effect as to any LaTex Real
Property Lease;
(vi) with respect to each sublease included as a LaTex Real Property
Lease, the representations and warranties set forth in subsections (i) and
(v) above are true and correct with respect to the underlying lease;
(vii) none of the LaTex Entities has assigned, transferred, conveyed,
mortgaged, deeded in trust or encumbered any interest in the leasehold or
subleasehold;
(viii) to the knowledge of the LaTex Entities, all facilities leased
or subleased thereunder have received all approvals of all Governmental
Entities (including licenses and permits) required in connection with the
operation thereof and have been operated and maintained in accordance with
applicable laws and regulations;
(ix) all facilities leased or subleased thereunder are supplied with
utilities and other services necessary for the operation of said
facilities; and
(x) to the knowledge of the LaTex Entities, the owner of the
facility leased or subleased has good and marketable title to the parcel of
real property, free and clear of any security interest, easement, covenant
or other restriction, except for installments of special easements not yet
delinquent and recorded easements, covenants, and other restrictions which
do not impair the current use, occupancy or value or the marketability of
title, of the property subject thereto.
(c) The LaTex Entities, either directly or indirectly, have (and as
of the Closing will have) good and defensible title to and other legal right to
use all properties and assets, real, personal and mixed, tangible and intangible
(other than the LaTex Interests), reflected as owned on the latest balance sheet
included in the LaTex Financial Statements of the relevant entity or acquired
alter the date of such balance sheet, except for properties and assets disposed
of in accordance with customary practice in the business or disposed of for full
and fair value since the date of such balance sheet in the ordinary course of
business consistent with past practice and except for matters that would not
have a Material Effect.
20
<PAGE>
(d) There are no properties (real, personal or mixed, tangible or
intangible) owned by any LaTex Stockholders or any Affiliate of the LaTex
Stockholders that are used in the normal day-to-day operations of the LaTex
Entities as conducted prior to the Closing Date.
(e) The properties and assets described in (a), (b) and (c) above
are free and clear of any and all Encumbrances, except the Permitted
Encumbrances.
4.10 Proceedings Affecting LaTex Interests. There is no action,
-------------------------------------
proceeding, investigation, inquiry, claim or demand pending or, to the knowledge
of the LaTex Entities, threatened that is likely to result in the material
impairment or loss of any of the LaTex Entities' title to any part of the LaTex
Interests or that might hinder or impede in any material respect the use,
operation or value of the LaTex Interests and LaTex shall promptly notify
Alliance of any such suit, action, investigation, inquiry, claim or demand
arising or threatened prior to the Closing with respect to which LaTex receives
notice. To the knowledge of the LaTex Entities, there are no facts, events or
conditions existing with respect to operations or conditions of the LaTex
Interests which are reasonably likely to hinder or impede the use, operation or
value of the LaTex Interests in any material respect or which are reasonably
likely to form the basis of a claim of any party against any of the LaTex
Entities or any of their assets that would result in a Material Effect.
4.11 LaTex Oil and Gas Contracts.
---------------------------
(a) To the knowledge of the LaTex Entities, all of the Leases
included in the LaTex Interests are in full force and effect and are the valid
and legally binding obligations of the parties to those agreements and are
enforceable in all material respects in accordance with their respective terms.
(b) To the knowledge of the LaTex Entities, none of the LaTex
Entities is in material breach or default with respect to any of its
representations, warranties or obligations pursuant to any of the LaTex Oil and
Gas Contracts or with respect to any regulations incorporated in or governing
the LaTex Oil and Gas Contracts.
(c) To the knowledge of the LaTex Entities, all payments (including
royalties, delay rentals, shut-in royalties, payments due under unit or
operating agreements but excluding royalties held in suspense and good faith by
the LaTex Entities for a justifiable purpose) due under the Leases included in
the LaTex Interests have been properly and timely made; all conditions necessary
to keep such Leases in force have been fully performed; and no notices have been
received by the LaTex Entities of any claim to the contrary.
(d) To the knowledge of the LaTex Entities, there are no obligations
to engage in continuous development operations in order to maintain any Lease
included in the LaTex Interests in force and effect.
(e) To the knowledge of the LaTex Entities, the execution and
delivery of this Agreement and the consummation of the transaction as
contemplated by this Agreement will not result in a material breach of,
constitute a material default under, result in a material violation of
21
<PAGE>
or entitle any party to a right of first refusal or preferential right to
purchase under any of the LaTex Oil and Gas Contracts.
(f) To the knowledge of the LaTex Entities, the LaTex Entities have
fulfilled all material requirements for filings, certificates, disclosures of
parties in interest and other similar matters contained in (or otherwise, by
law, rule or regulation, applicable to) the Leases included in the LaTex
Interests and are fully qualified to own and hold ail such Leases.
4.12 Operations.
----------
(a) To the knowledge of the LaTex Entities, the LaTex Interests are
being developed, operated and maintained in material compliance with the LaTex
Oil and Gas Contracts. In operating the LaTex Interests, the LaTex Entities are
not dependent on the right to use the property of others, except under valid and
enforceable agreements, rights or other arrangements included in the LaTex Oil
and Gas Contracts.
(b) Since April 30, 1996, none of the LaTex Entities, directly or
indirectly, has operated or in any manner dealt with, incurred obligations with
respect to, or undertaken any transactions relating to, the LaTex Interests
other than in the ordinary course of business consistent with past practice or
other than sales of property in any single transaction having a value of less
than $25,000, and, to the knowledge of the LaTex Entities, the LaTex Interests
have not suffered any destruction, damage, or loss (except depreciation of
equipment through ordinary wear and tear) that would result in a Material
Effect.
(c) To the knowledge of the LaTex Entities, there are no outstanding
authorities for expenditures ("AFEs") covering work in progress or work not yet
started covering the LaTex Interests. Prior to Closing, LaTex will provide
Alliance with an updated listing of similar information concerning AEEs
outstanding as of a date not more than three (3) business days prior to Closing.
(d) To the knowledge of the LaTex Entities, no condition, obligation
or other circumstance, including any prior overproduction under a gas balancing
agreement, exists that would adversely affect the right of the LaTex Entities to
receive their full share of production and full payment of proceeds from the
sale of Hydrocarbons produced from any of the LaTex Interests.
4.13 No Reversionary Interests. To the knowledge of the LaTex
-------------------------
Entities, the LaTex Interests are not subject to any reversionary, back-in or
similar rights, the exercise of which would reduce the LaTex's Entities' Net
Revenue Interests to less than the Net Revenue Interests set forth in Exhibits
--------
B-1 and B-2.
- -----------
4.14 Sales and Transportation Agreements. There are no material crude
-----------------------------------
oil and condensate sales, arrangements or gas purchase and sales agreements or
division orders relating to the LaTex Interests (collectively "LaTex Sales
Agreements") and no material transportation agreements relating to the LaTex
Interests that cannot be terminated by the LaTex Entities upon 60 days' or less
notice without penalty or detriment to the LaTex Entities. There are no LaTex
22
<PAGE>
Sales Agreements pursuant to which Hydrocarbons are being sold at less than the
prevailing market price therefor.
4.15 Tax Partnerships. None of the LaTex Entities have filed any
----------------
federal or state income tax returns identifying the LaTex Interests as held by
any tax partnership.
4.16 Prepayments. To the knowledge of the LaTex Entities, there
-----------
exists no material imbalance regarding production taken or marketed from any
Lease included in the LaTex Interests or otherwise affecting any of the LaTex
Entities which could result in (i) a portion of its interest in production
therefrom to be taken or delivered after the Closing Date without the applicable
entity receiving full payment therefor and at the price it would have received
absent such imbalance; or (ii) the applicable entity being obligated to make
payment to any person or entity as a result of such imbalance; or (iii)
production being shut-in or curtailed after the Closing Date due to non-
compliance with allowables, production quotas, proration rules or similar orders
or regulations of a Governmental Entity; and none of the LaTex Entities is
obligated, by virtue of any prepayment arrangement take-or-pay agreement or
similar arrangements to deliver Hydrocarbons produced from the LaTex Interests
at some future time without then receiving full payment therefor in all material
respects.
4.17 Production Sales Contracts. To the knowledge of the LaTex
--------------------------
Entities, the buyers under all production sales contracts pursuant to which any
of the LaTex Entities is selling crude oil or natural gas or constituents
thereof produced from the Leases included in the LaTex Interests are in
compliance in all material respects with all the material terms of such
contracts and none of the LaTex Entities has received a notice from any such
buyer of such party's intention or desire to modify, renegotiate or repudiate
any such contract or any of the material terms thereof.
4.18 Calls. To the knowledge of the LaTex Entities, no person has any
-----
call upon, option to purchase, or similar right to purchase any portion of the
Hydrocarbons from the LaTex Interests at a price less than the prevailing market
price therefor.
4.19 Reserve Reports. With respect to such LaTex Reserve Report, (a)
---------------
the information furnished by the LaTex Entities to the reserve engineers in
connection with the preparation of the LaTex Reserve Report was true and correct
in all material respects; (b) to the knowledge of the LaTex Entities, the
assumptions utilized in the preparation of the LaTex Reserve Report are
reasonable in light of the properties involved; (c) to the knowledge of the
LaTex Entities, the calculations and other methodology utilized in the
preparation of the LaTex Reserve Report are consistent with generally accepted
standards of petroleum reservoir engineering at the dates of their preparation;
(d) none of the LaTex Entities have any knowledge that the oil, condensate,
natural gas liquids and gas reserves attributable to the LaTex Interests as of
the date of the LaTex Reserve Report are materially less than the estimates of
quantities of those reserves shown in the LaTex Reserve Report; (e) none of the
LaTex Entities have any knowledge of any change (other than normal depletion by
production in the ordinary course, price changes, and sales of property in any
single transaction having a value of less than $25,000) occurring since the date
of the LaTex Reserve Report that would result in a material change in the
information contained in the LaTex Reserve Report, and (f) to the knowledge of
the LaTex Entities, none of the LaTex Entities or the LaTex Interests are
subject to any agreements, consents, orders or regulations that
23
<PAGE>
would materially reduce the rate of production of Hydrocarbons or other
substances from the LaTex Interests below that reflected in the LaTex Reserve
Report.
4.20 Wells.
-----
(a) To the knowledge of the LaTex Entities, all of LaTex's Wells
have been drilled and completed within the boundaries of the Major Producing
Leases of the LaTex Entities or within the limits otherwise permitted by the
LaTex Oil and Gas Contracts, and by law.
(b) To the knowledge of the LaTex Entities, the drilling and
completion of all LaTex's Wells and all development and operations of the LaTex
Interests have been conducted in material compliance with all applicable laws,
ordinances, rules, regulations and permits, and judgments, orders and decrees of
any Governmental Entity.
(c) To the knowledge of the LaTex Entities, none of LaTex's Wells is
subject to material penalties on allowable production after the date of this
Agreement because of any overproduction or any other violation of applicable
laws, rules, regulations or permits or judgments, orders or decrees of any
Governmental Entity that would prevent any of LaTex's Wells from being entitled
to its full legal and regular allowable production from and after the date of
this Agreement as prescribed by any Governmental Entity.
4.21 No Funds in Suspense. To the knowledge of the LaTex Entities,
--------------------
all material proceeds from the sale of Hydrocarbons produced from the LaTex
Interests are currently being paid to the LaTex Entitles and no portion of such
proceeds is currently being held in suspense by any purchaser thereof or any
other party by whom proceeds are paid except for immaterial amounts.
4.22 Regulatory Compliance. To the knowledge of the LaTex Entities,
---------------------
all material filings and approvals under the Natural Gas Policy Act of 1978, as
amended for with the Federal Energy Regulatory Commission ("FERC"), or required
under any rules or regulations adopted by FERC which are necessary for the
operation of the LaTex Interests in the manner in which they are presently
operated, have been made or granted.
4.23 Physical Condition of Facilities. To the knowledge of the LaTex
--------------------------------
Entities, in all material respects, the physical facilities on the LaTex
Interests (including facilities held under lease) have been maintained in
accordance with good industry maintenance practices and are in a state of repair
(normal wear and tear excepted) that is adequate for the intended use of such
facilities in the ordinary conduct of the business.
4.24 Data Regarding the LaTex Interests. All of the information
----------------------------------
described in Sections 6.6 and 6.7 made or to be made available to Alliance and
------------ ---
its representatives is accurate and complete in all material respects, when
considered in context and together with all relevant information made available.
24
<PAGE>
4.25 Litigation.
----------
(a) There is no action, proceeding, investigation or inquiry pending
or, to the knowledge of the LaTex Entities, threatened (i) against or affecting
any of the LaTex Entities or their assets or ordinary conduct of the business
that, if determined adversely to the LaTex Entities, would result in a Material
Effect or (ii) that questions this Agreement or any action contemplated by this
Agreement or in connection with the Merger.
(b) There are no citations, fines or penalties heretofore asserted
against any of the LaTex Entities or their assets under any federal, state or
local law relating to air, noise or water pollution or other environmental
protection matters, or relating to occupational health or safety, of which such
entity has received notice and that remain unpaid or that could otherwise bind
the assets of any of the LaTex Entities and that would result in a Material
Effect.
(c) LaTex has no knowledge of any state of facts or of the
occurrence or nonoccurrence of any event or group of related events, that
should reasonably cause LaTex to determine that there exists any basis for any
material claim against the LaTex Entities for any of the matters described in
paragraphs (a) or (b).
4.26 Tax Returns and Payments.
------------------------
(a) The LaTex Entities (or the common parent of any affiliated group
of which any of such entities is or has been a member) have duly filed in
correct form in all material respects all Tax Returns required to be filed by
such entities and have duly paid or provided for payment of (or there have been
paid on their behalf) all Taxes due or claimed to be due from them by federal,
state, local or foreign taxing authorities, excluding Taxes that are being
contested in good faith by appropriate proceedings and as to which adequate
reserves have been provided and that are specifically identified in Section 4.26
------------
of the LaTex Disclosure Schedule.
- --------------------------------
(b) There are no tax liens upon any property or assets owned by any
of the LaTex Entities that would have a Material Effect.
(c) All Tax Returns of the LaTex Entities filed, including any
amendments to date, have been prepared in good faith without willful
misrepresentation and are complete and accurate in all material respects. The
federal income tax returns of the LaTex Entities have been examined by the
Internal Revenue Service for all periods through December 31, 1990, and all
deficiencies assessed as a result of such examination have been paid in full or
finally settled and no issue has been raised by the Internal Revenue Service in
any such examination that has been resolved adversely to any of the LaTex
Entities or is still pending and, by application of similar principles,
reasonably could be expected to result in an assertion by the Internal Revenue
Service of a material deficiency in any other taxable year or with respect to
any other of the LaTex Entities. There are no outstanding agreements, waivers or
other arrangements providing for an extension of time with respect to the filing
of any Tax Returns or the payment by, or assessment against, any of the LaTex
Entities for any Taxes. Each of the LaTex Entities is taxed as a C corporation
under the Code.
25
<PAGE>
(d) The reserves made for Taxes on the respective balance sheets in
the LaTex Financial Statements are sufficient for the payment of all unpaid
Taxes due and payable by the LaTex Entities attributable to all periods ended on
or before the date of the respective balance sheets in accordance with GAAP.
4.27 Insurance. Section 4.27 of the LaTex Disclosure Schedule
--------- ---------------------------------------------
contains a true, correct, and complete description of all policies of fire,
casualty and extended coverage, public liability, products liability, worker's
compensation and other forms of insurance owned or held by or for the benefit of
the LaTex Entities (other than insurance owned or held by operators for those
LaTex Interests where one of the LaTex Entities is not the operator). All such
policies are sufficient for material compliance with all requirements of law and
all agreements for which those entities are parties, are, to the knowledge of
the LaTex Entities, valid and enforceable policies, will remain in full force
and effect through the respective dates set forth in Section 4.27 of the LaTex
-------------------------
Disclosure Schedule, subject to the timely payment of the premiums set forth
- -------------------
therein, and will not in any way be affected by, or terminate or lapse by
reason of, the transactions contemplated by this Agreement. All premiums due
under such policies have been paid and the insureds have complied in all
material respects with such policies.
4.28 Bank Accounts. Section 4.28 of the LaTex Disclosure Schedule
------------- ---------------------------------------------
sets forth the names and locations of all bank institutions at which the LaTex
Entities maintain accounts or lock boxes of any nature, the account or box
number and the names of all persons authorized to draw thereon or make
withdrawals therefrom.
4.29 Contracts.
---------
(a) Section 4.29 of the LaTex Disclosure Schedule contains a
---------------------------------------------
complete and correct list as of the date hereof of all agreements, contracts and
commitments of the following types (and all amendments thereto), written or
oral, to which any of the LaTex Entities is a party or by which any of their
properties is bound:
(i) notes, agreements, mortgages, indentures, security agreements
and other instruments relating to the borrowing of money or evidence of
credit or the deferred purchase price of property, or the direct or
indirect guarantee by such entities of any such indebtedness or deferred
purchase price, in excess of $20,000;
(ii) leases of real property and material personal property
providing for payments under any such lease or group of related leases at
an annual rate in excess of $25,000 (other than Leases);
(iii) partnership or joint venture agreements;
(iv) management, employment and consulting agreements or other
contracts for personal services that are not terminable by any of such
entities on not more than one month's notice without penalty;
26
<PAGE>
(v) agreements providing for liability for severance pay, collective
bargaining agreements, labor contracts, or labor or personnel policies;
(vi) surety, performance and maintenance bonds in excess of $5,000;
(vii) agreements or commitments for capital expenditures in excess of
$25,000;
(viii) any plan, contract or arrangement providing for bonuses,
pensions, deferred compensation, retirement plan payments, profit sharing,
incentive pay, or for any other employee benefit plan;
(ix) brokerage or finder's agreements;
(x) any agreement that (a) restricts the right of such entities to
engage in any place in any line of business or (b) would restrict the right
of the Surviving Corporation or any Subsidiary of the Surviving Corporation
to engage in any line of business after the Closing Date;
(xi) any contract, commitment or agreement that involves the
disposition after April 30, 1996 of any assets of any of such entities not
in the ordinary course of business consistent with past practice;
(xii) any contract, commitment or agreement between any of such
entities or between any of such entities and any director or officer of any
of the LaTex Entities in excess of $10,000;
(xiii) any LaTex Oil and Gas Contract that commits any of the LaTex
Entities to make any capital expenditures in any calendar year; and
(xiv) other agreements, contracts and commitments that in any way
involve payments or receipts during the remaining term of such agreement,
contract or commitment in excess of $25,000.
(b) LaTex has made available to Alliance complete and correct copies
of all written agreements, contracts and commitments, together with all
amendments thereto, and accurate (in all material respects) descriptions of all
oral agreements, in all cases, described in subparagraph (a). Such agreements,
contracts and commitments are in full force and effect, and all of such entities
and, to the knowledge of the LaTex Entities, all other parties to such
agreements, contracts and commitments have performed all obligations required to
be performed by them to date thereunder in all material respects and are not in
default thereunder in any material respect.
(c) None of the LaTex Entities has outstanding any powers of
attorney, including powers of attorney with respect to representation before any
Governmental Entity, customs agents and brokers, or given in connection with
qualification to conduct business in any other jurisdiction.
27
<PAGE>
4.30 Transactions with Interested Persons. No officer or director of
------------------------------------
any of the LaTex Entities (or spouse or any child thereof) owns, directly or
indirectly, on an individual or joint basis, any material interest in, or serves
as an officer, director or employee of, any customer, competitor or supplier of
or any person or entity that has a material contract or arrangement with any of
the LaTex Entities, except for holdings of capital stock not exceeding one
percent (1%) of the total number of shares of capital stock of such customer,
competitor or supplier outstanding.
4.31 Compensation and Employee Plans.
--------------------------------
(a) LaTex has provided Alliance (i) the names and current annual
compensation rates of all present directors, officers, employees, independent
contractors or agents of each of the LaTex Entities and (ii) the number, job
category and range of compensation by job category of all employees of such
entities.
(b) Section 4.31 of the LaTex Disclosure Schedule sets forth the
---------------------------------------------
name of each Plan applicable to any of the LaTex Entities and lists all
documents evidencing any Plan applicable to any of the LaTex Entities.
(c) Each Plan applicable to any of the LaTex Entities is now, and
has been from its inception, administered in compliance in all material respects
with the provisions of all applicable laws and regulations, including ERISA, the
Code and the ADEA, insofar as such statutes are applicable to such Plan.
4.32 Accounts Receivable; Inventories.
--------------------------------
(a) The accounts receivable of the LaTex Entities as reflected on
the respective balance sheets of the LaTex Financial Statements (except to the
extent collected after the date thereof) (i) have arisen in the ordinary course
of business for goods delivered or services rendered, and (ii) are good and
collectible, except as otherwise reserved for on the respective balance sheets.
(b) To the knowledge of the LaTex Entities, all of the LaTex
Entities accounts receivable existing at Closing will be collectible in all
material respects at their aggregate recorded amounts (net of any allowances for
doubtful accounts reflected on the LaTex Financial Statements) in the ordinary
course of business within ninety (90) days of the Closing, without resort to
litigation, and will not be subject to counterclaim or set off.
(c) The inventories of the LaTex Entities as reflected on the
respective balance sheets included in the LaTex Financial Statements have been
valued in accordance with GAAP and customary industry practice using COPAS
guidelines.
4.33 Brokers, Finders and Advisors. LaTex has not employed any
-----------------------------
broker, finder, or investment advisor on its behalf, or incurred any liability
for any brokerage or finder's fees or commissions in connection with the
transaction contemplated hereby.
28
<PAGE>
4.34 Labor Force.
-----------
(a) Each of the LaTex Entities is in compliance in all material
respects with all applicable laws (including without limitation federal income
tax laws), ordinances, regulations, statutes, rules and restrictions of any
Governmental Entity respecting employment and employment practices and terms and
conditions of employment.
(b) No union representation question exists respecting the employees
of any of the LaTex Entities and, to the knowledge of the LaTex Entities, no
union organizing activities are taking place.
4.35 Books and Records. The books and records of each of the LaTex
-----------------
Entities (including, without limitation, the books of account, minute books and
stock record books) are complete and correct in all material respects and have
been maintained in accordance with sound business practices. The minute books of
each of the LaTex Entities contain accurate and complete records in all material
respects of all meetings held of, and corporate action taken by, the
shareholders and the Boards of Directors of the respective entities and no
meetings of or actions by such shareholders or any such Boards of Directors have
been held or taken for which minutes have not been prepared and are not
contained in such minute books. None of the records and written documents
furnished or made available to Alliance's representatives or agents by the
LaTex Entities concerning the LaTex Interests, when considered in context and
together with any relevant or related documents also so furnished or made
available, contain any untrue statement of material fact or omit a material fact
necessary to make any statement therein not misleading.
4.36 Payments. None of the LaTex Entities has, directly or
--------
indirectly, paid or delivered any fee, commission or other sum of money or item
of property however characterized to any finder, agent, government official or
other party, in the United States or any other country, in any manner related to
its business or operations, which such entity knows or has reason to believe to
have been illegal under any federal, state or local laws of the United States or
any other country or territory having jurisdiction over such entity, and has not
participated, directly or indirectly, in any boycotts or similar practices.
4.37 Public Utility Holding Company. None of the LaTex Entities owns
------------------------------
or operates any facilities used for the retail distribution of natural or
manufactured gas for heat, light or power, nor does any of the LaTex Entities,
directly or indirectly, own, control or hold with power to vote ten percent
(10%) or more of the outstanding stock of, or exercise direct or indirect
controlling influence over the management or policies of such a company or a
company so controlling such a company.
4.38 SEC Filings. LaTex has filed all forms, reports and documents
-----------
required to be filed with the Commission since January 1, 1993. All of such
filings were prepared in accordance with the requirements of all applicable
laws and did not at the time they were filed contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
29
<PAGE>
4.39 Disclosure. No representation or warranty made by LaTex in this
----------
Agreement (including, without limitation, in the LaTex Disclosure Schedule)
contains any untrue statement of material fact or omits or will omit to state
any material fact necessary to make the statements herein or therein not
misleading in light of the circumstances under which made.
5. Representations, Warranties and Covenants of Alliance.
-----------------------------------------------------
Except as expressly set forth and specifically identified by section number
of this Agreement in the Alliance Disclosure Schedule, Alliance represents,
warrants and covenants to LaTex, on the date hereof and as of the Closing Date,
as follows:
5.1 Organization, etc.
-----------------
(a) Alliance is a public limited company duly incorporated and validly
existing under the laws of England and Wales. Each of Alliance's U.K.
Subsidiaries is a limited company duly incorporated and validly existing under
the laws of England and Wales. Each of Alliance's other Subsidiaries is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation. Each of the Alliance Entities has the
requisite corporate power and authority to carry on its business as now being
conducted and to own, lease and operate its property and assets, and each of the
United States Alliance Entities is duly qualified or licensed to do business and
is in good standing in every jurisdiction in which the failure to be so
qualified and licensed could have a Material Effect. Section 5.1 of the Alliance
---------------------------
Disclosure Schedule sets forth the name and jurisdiction of incorporation of
- -------------------
each of Alliance's Subsidiaries and each jurisdiction in which each of the
Alliance Entities is qualified or licensed to do business. Alliance has
heretofore delivered to LaTex true, correct and complete copies of the
organizational documents of each of the Alliance Entities as presently in
effect.
(b) Section 5.1 of the Alliance Disclosure Schedule sets forth a
-----------------------------------------------
complete list of the present officers and directors of each of the Alliance
Entities.
5.2 Capitalization.
--------------
(a) The authorized, issued and outstanding capital stock of each of
the Alliance Entities is as set forth in Section 5.2 of the Alliance Disclosure
--------------------------------------
Schedule. All of the issued shares of each of the Alliance Entities are, and all
- --------
of the Alliance Shares to be issued in consideration of the cancellation of
LaTex Shares upon consummation of the Merger, when issued in accordance with the
terms of this Agreement, will be validly issued, fully paid and nonassessable
and none of such shares have been or will be issued in violation of the
preemptive rights of any person.
(b) There are no (i) shares of capital stock or other securities
bearing voting or other equity rights, whether contingent or not, of any of the
Alliance Entities outstanding; (ii) outstanding subscriptions, puts, options,
warrants or other rights, contractual or otherwise, to purchase or acquire any
capital stock of any of the Alliance Entities; or (iii) contracts, commitments,
understandings, arrangements or restrictions by which any of the Alliance
Entities is or may become bound to issue any additional equity interests or any
options or rights with respect thereto, or any securities convertible into any
equity interests.
30
<PAGE>
(c) The issued and outstanding stock of Alliance owned by the
directors and 5% or greater stockholders of Alliance is owned of record, and to
the knowledge of Alliance, beneficially, as described in Section 5.2 of the
------------------
Alliance Disclosure Schedule. Alliance beneficially owns all of the issued and
- ----------------------------
outstanding stock of each of its Subsidiaries, directly or indirectly, free and
clear of all Encumbrances. Except for its Subsidiaries, neither Alliance nor any
of its Subsidiaries owns or holds any equity, debt or other interest in any
entity or business or any option to acquire any such interest, except for
accounts receivable that have arisen in the ordinary course of business.
5.3 Authority; No Violation.
-----------------------
(a) The execution and performance of this Agreement by Alliance and
Newco have been duly and validly authorized by the respective boards of
directors of Alliance and Newco and, except for the approval of the Alliance
Stockholders, no other corporate action is necessary to authorize the execution,
delivery and performance of this Agreement by Alliance or Newco. Alliance has
full, absolute and unrestricted right, power and authority to execute and
perform this Agreement and, subject to the approval by the Alliance
Stockholders, to carry out the transactions contemplated hereby. This Agreement
has been duly and validly executed by Alliance and Newco and, subject to
approval by the Alliance Stockholders, is a valid and binding obligation of
Alliance and Newco, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, moratorium, reorganization,
receivership or similar laws affecting the rights of creditors generally.
(b) None of the execution, delivery or performance of this Agreement
does or will, after the giving of notice, lapse of time or otherwise, (i) result
in any violation of or be in conflict with or constitute a default under any
term or provision of the organizational documents of any of the Alliance
Entities, or any term or provision of any judgment, decree, order, statute,
injunction, rule or regulation applicable to any of the Alliance Entities or of
any material note, bond, mortgage, indenture, lease, license, franchise,
agreement or other instrument or obligation to which any of the Alliance
Entities is bound; (ii) result in the creation of any material Encumbrance upon
Alliance Shares, the securities of the Surviving Corporation or any of the
properties or assets of any of the Alliance Entities pursuant to any such term
or provision; or (iii) constitute a material default under or give any party the
right to accelerate, amend or modify, terminate, abandon or refuse to perform or
comply with, any material contract, agreement, arrangement, commitment or plan
to which any of the Alliance Entities is a party, or by which any of the
Alliance Entities or any of their rights, properties or assets may be subject or
bound.
5.4 Consents and Approvals. No consent, waiver, approval or
----------------------
authorization of, or declaration, designation, filing, registration or
qualification with, any Governmental Entity or any third party, is required to
be made or obtained by any of the Alliance Entities in connection with the
execution, delivery and performance of this Agreement or to preserve any
material rights and benefits enjoyed by any of the Alliance Entities on the date
hereof following the consummation of the transactions contemplated by this
Agreement except (a) those that have already been obtained or (b) those
specifically contemplated by this Agreement.
31
<PAGE>
5.5 Violations of Laws, Permits, etc.
--------------------------------
(a) None of the Alliance Entities is in violation of any term or
provision of its organizational documents. None of the Alliance Entities is in
violation of any term or provision of any judgment, decree, order, statute,
injunction, rule, ordinance or regulation applicable to it, or of any agreement
or instrument applicable to such entity where the violation thereof would result
in a Material Effect.
(b) Each of the Alliance Entities holds and has maintained in full
force and effect all certificates, licenses and permits material to the conduct
of its business, and has not received any notification that any revocation or
limitation thereof is threatened or pending where such revocation or limitation
would result in a Material Effect.
5.6 Alliance Financial Statements.
-----------------------------
(a) In all material respects the consolidated Alliance Financial
Statements fairly present the consolidated assets, liabilities and financial
position of the respective entities purported to be covered thereby as of the
dates thereof and the results of their operations and cash flow for the
respective periods ended on such dates, all in conformity with GAAP consistently
applied, except that the October 31, 1995 unaudited interim financial statements
do not contain footnotes (that, if presented, would not differ materially from
those in the audited Alliance Financial Statements) and are subject to normal,
recurring year-end adjustments (which will not, individually or in the
aggregate, have a Material Effect).
(b) The Affiance Financial Statements were prepared from the books and
records of each of the respective entities purported to be covered thereby. Such
Alliance Financial Statements do not contain any items of a material special or
nonrecurring nature, except as expressly noted in such statements
5.7 No Undisclosed Liabilities, etc. None of the Alliance Entities
-------------------------------
has any material liabilities or obligations, whether direct, indirect, absolute
or contingent (including, without limitation, liabilities as guarantor or
otherwise with respect to obligations of others), except (a) liabilities that
are fully reflected on or reserved against on the latest balance sheet of such
entity included in the Alliance Financial Statements or (b) liability incurred
in the ordinary course of business since the date of the latest balance sheet
included in the Alliance Financial Statements that are consistent with past
practice.
5.8 Absence of Certain Changes. Since the date of the latest audited
--------------------------
Alliance Financial Statement, except as specifically disclosed in the October
31, 1995 unaudited interim consolidated Alliance Financial Statements, none of
the Alliance Entities has:
(a) Suffered any change that would result in a Material Effect.,
(b) Adopted or made any change in any pension, retirement, profit
sharing or other employee benefit plan or arrangement;
32
<PAGE>
(c) Borrowed or agreed to borrow any money or incurred, assumed or
become subject to, whether directly or by way of guarantee or otherwise, any
other material obligation or liability for borrowed money, whether absolute or
contingent;
(d) (i) Issued, purchased or redeemed any of its capital securities or
any option, warrant or right to purchase any of the same; or (ii) authorized,
declared or made any dividends, distributions of earnings or capital on, or
splits or any other reclassification of its equity securities;
(e) Mortgaged, pledged or subjected to any Encumbrance any material
portion of its assets, tangible or intangible, having a value in excess of
$25,000 in the aggregate;
(f) Acquired or disposed of, or entered into any agreement to acquire
or dispose of, any material assets or properties, other than oil and gas
production in the ordinary course of business, or other assets having a value in
excess of $25,000 in the aggregate;
(g) Increased the salaries, compensation, pension or other benefits
payable, or paid any bonuses, to its officers and directors or their Affiliates;
(h) Forgiven or canceled any debts or claims or waived any rights
against any officer or director of the Alliance Entities or their Affiliates or
forgiven or canceled any material debts or claims or waived any rights against
any other person in excess of $25,000 in the aggregate;
(i) Entered into, terminated or received notice of the termination of
any commitment, contract, agreement or transaction that is material to any of
the Alliance Entities; or
(j) Agreed, either in writing or otherwise, to take any action
described in this Section 5.8.
-----------
5.9 Title to Property; Encumbrances.
-------------------------------
(a) The Alliance Entities, either directly or indirectly, have (and as
of the Closing will have) good and defensible title to the Alliance Interests.
(b) The Alliance Entities own no real property other than the Alliance
Interests. Schedule 5.28 of the Alliance Disclosure Schedule sets forth a
-------------------------------------------------
complete list of all real property other than the Alliance Interests that the
Alliance Entities lease or sublease and which lease or sublease provides for
payments at an annual rate in excess of $25,000. Alliance has delivered to LaTex
correct and complete copies of all such leases and subleases (the "Alliance Real
Property leases"). With respect to each such Real Property Lease:
(i) each Alliance Real Property Lease is legal, valid, binding,
enforceable and in full force and effect;
33
<PAGE>
(ii) each Aliance Real Property Lease will continue to be legal,
valid, binding, enforceable and in full force and effect on identical terms
following the consummation of the transactions contemplated hereby;
(iii) to the knowledge of the Alliance Entities, no party to any
Alliance Real Property lease is in breach or default and no event has
occurred which, with notice or lapse of time, would constitute a breach or
default or permit termination, modification or acceleration thereunder;
(iv) to the knowledge of the Alliance Entities, no party to any
Alliance Real Property lease has repudiated any provision thereof;
(v) to the knowledge of the Alliance Entities, there are no
disputes, oral agreements or forbearance programs in effect as to any
Alliance Real Property lease;
(vi) with respect to each sublease included as a Alliance Real
Property Lease, the representations and warranties set forth in subsections
(i) and (v) above are true and correct with respect to the underlying
lease;
(vii) none of the Alliance Entities has assigned, transferred,
conveyed, mortgaged, deeded in trust or encumbered any interest in the
leasehold or subleasehold;
(viii) to the knowledge of the Alliance Entities, all facilities
leased or subleased thereunder have received all approvals of all
Governmental Entities (including licenses and permits) required in
connection with the operation thereof and have been operated and maintained
in accordance with applicable laws and regulations;
(ix) all facilities leased or subleased thereunder are supplied with
utilities and other services necessary for the operation of said
facilities; and
(x) to the knowledge of the Alliance Entities, the owner of the
facility leased or subleased has good and marketable title to the parcel of
real property, free and clear of any security interest, easement, covenant
or other restriction, except for installments of special easements not yet
delinquent and recorded easements; covenants, and other restrictions which
do not impair the current use, occupancy or value or the marketability of
title, of the property subject thereto.
(c) The Alliance Entities, either directly or indirectly, have (and
as of the Closing will have) good and defensible title to and other legal right
to use all properties and assets, real, personal and mixed, tangible and
intangible (other than the Alliance Interests), reflected as owned on the latest
balance sheet included in the Alliance Financial Statements of the relevant
entity or acquired after the date of such balance sheet, except for properties
and assets disposed of in accordance with customary practice in the business or
disposed of for full and fair value since the date of such balance sheet in the
ordinary course of business consistent with past practice and except for matters
that would not have a Material Effect.
34
<PAGE>
(d) There are no properties (real, personal or mixed, tangible or
intangible) owned by any Alliance Stockholders or any Affiliate of the Alliance
Stockholders that are used in the normal day-to-day operations of the Alliance
Entities as conducted prior to the Closing Date.
(e) The properties and assets described in (a), (b) and (c) above are
free and clear of any and all Encumbrances, except the Permitted Encumbrances.
5.10 Proceedings Affecting the Alliance Interests. There is no
--------------------------------------------
action, proceeding, investigation inquiry, claim or demand pending or, to the
knowledge of the Alliance Entities, threatened that is likely to result in
the material impairment or loss of any of the Alliance Entities' title to any
part of the Alliance Interests or that might hinder or impede in any material
respect the use operation or value of the Alliance Interests and Alliance
shall promptly notify LaTex of any such suit, action, investigation, inquiry,
claim or demand arising or threatened prior to the Closing with respect to which
Alliance receives notice. To the knowledge of the Alliance Entities, there are
no facts, events or conditions existing with respect to operations or conditions
of the Alliance Interests which are reasonably likely to hinder or impede the
use, operation or value of the Alliance Interests in any material respect or
which are reasonably likely to form the basis of a claim of any party against
any of the Alliance Entities or any of their assets that would result in a
Material Effect.
5.11 Alliance Oil and Gas Contracts.
------------------------------
(a) To the knowledge of the Alliance Entities, all of the leases
included in the Alliance Interests are in full force and effect and are the
valid and legally binding obligations of the parties to those agreements and
are enforceable in all material respects in accordance with their respective
terms.
(b) To the knowledge of the Alliance Entities, none of the Alliance
Entities is in material breach or default with respect to any of its
representations, warranties or obligations pursuant to any of the Alliance Oil
and Gas Contracts or with respect to any regulations incorporated in or
governing the Alliance Oil and Gas Contracts.
(c) To the knowledge of the Alliance Entities, all payments (including
royalties, delay rentals, shut-in royalties, payments due under unit or
operating agreements but excluding royalties held in suspense and good faith by
the Alliance Entities for a justifiable purpose) due under the Leases included
in the Alliance Interests have been properly and timely made; all conditions
necessary to keep such leases in force have been fully performed; and no notices
have been received by the Alliance Entities of any claim to the contrary.
(d) To the knowledge of the Alliance Entities, there are no
obligations to engage in continuous development operations in order to maintain
any Lease included in the Alliance Interests in force and effect.
(e) To the knowledge of the Alliance Entities, the execution and
delivery of this Agreement and the consummation of the transaction as
contemplated by this Agreement will not
35
<PAGE>
result in a material breach of, constitute a material default under, result in a
material violation of or entitle any party to a right of first refusal or
preferential right to purchase under any of the Alliance Oil and Gas Contracts.
(f) To the knowledge of the Alliance Entities, the Alliance Entities
have fulfilled all material requirements for filings, certificates, disclosures
of parties in interest and other similar matters contained in (or otherwise, by
law, rule or regulation, applicable to) the leases included in the Alliance
Interests and are fully qualified to own and hold all such Leases.
5.12 Operations.
----------
(a) To the knowledge of the Alliance Entities, the Alliance Interests
are being developed, operated and maintained in material compliance with the
Alliance Oil and Gas Contracts. In operating the Alliance Interests, the
Alliance Entities are not dependent on the right to use the property of others,
except under valid and enforceable agreements, rights or other arrangements
included in the Alliance Oil and Gas Contracts.
(b) Since October 31, 1995, none of the Alliance Entities, directly or
indirectly, has operated or in any manner dealt with, incurred obligations with
respect to, or undertaken any transactions relating to, the Alliance Interests
other than in the ordinary course of business consistent with past practice or
other than sales of property in any single transaction having a value of less
than $25,000, and, to the knowledge of the Alliance Entities, the Alliance
Interests have not suffered any destruction, damage, or loss (except
depreciation of equipment through ordinary wear and tear) that would result in a
Material Effect.
(c) To the knowledge of the Alliance Entities, there are no
outstanding AFEs covering work in progress or work not yet started covering the
Alliance Interests. Prior to Closing, Alliance will provide LaTex with an
updated listing of similar information concerning AFEs outstanding as of a date
not more than three (3) business days prior to Closing.
(d) To the knowledge of the Alliance Entities, no condition,
obligation or other circumstance, including any prior overproduction under a gas
balancing agreement exists, that would adversely affect the right of the
Alliance Entities to receive their full share of production and full payment of
proceeds from the sale of Hydrocarbons produced from any of the Alliance
Interests.
5.13 No Reversionary Interests. To the knowledge of the Alliance
-------------------------
Entities, the Alliance Interests are not subject to any reversionary, back-in or
similar rights, the exercise of which would reduce the Alliance Entities' Net
Revenue Interests to less than the Net Revenue Interests set forth in Exhibits
--------
A-l and A-2.
- -----------
5.14 Sales and Transportation Agreements. There are no material crude
-----------------------------------
oil and condensate sales, arrangements or gas purchase and sales agreements or
division orders relating to the Alliance Interests (collectively "Alliance Sales
Agreements") and no material transportation agreements relating to the Alliance
Interests that cannot be terminated by the Alliance Entities upon 60 days' or
less notice without penalty or detriment to the Alliance Entities. There are no
36
<PAGE>
Alliance Sales Agreements pursuant to which Hydrocarbons are being sold at less
than the prevailing market price therefor.
5.15 Tax Partnerships. None of the Alliance Entities have filed any
----------------
federal or state income tax returns identifying the Alliance Interests as held
by any tax partnership.
5.16 Prepayments. To the knowledge of the Alliance Entities, there
-----------
exists no material imbalance regarding production taken or marketed from any
Lease included in the Alliance Interests or otherwise affecting any of the
Alliance Entities which could result in (i) a portion of its interest in
production therefrom to be taken or delivered after the Closing Date without
the applicable entity receiving full payment therefor and at the price it would
have received absent such imbalance; or (ii) the applicable entity being
obligated to make payment to any person or entity as a result of such imbalance;
or (iii) production being shut-in or curtailed after the Closing Date due to
non-compliance with allowables, production quotas, proration rules or similar
orders or regulations of a Governmental Entity; and none of the Alliance
Entities is obligated, by virtue of any prepayment arrangement take-or-pay
agreement or similar arrangements to deliver Hydrocarbons produced from the
Alliance Interests at some future time without then receiving full payment
therefor in all material respects.
5.17 Production Sales Contracts. To the knowledge of the Alliance
--------------------------
Entities, the buyers under all production sales contracts pursuant to which any
of the Alliance Entities is selling crude oil or natural gas or constituents
thereof produced from the Leases included in the Alliance Interests are in
compliance in all material respects with all the material terms of such
contracts and none of the Alliance Entities has received a notice from any such
buyer of such party's intention or desire to modify, renegotiate or repudiate
any such contract or any of the material terms thereof.
5.18 Calls. To the knowledge of the Alliance Entities, no person has
-----
any call upon, option to purchase, or similar right to purchase any portion of
the Hydrocarbons from the Alliance Interests at a price less than the prevailing
market price therefor.
5.19 Reserve Reports. With respect to the Alliance Reserve Report,
---------------
(a) the information furnished by the Alliance Entities to the reserve engineers
in connection with the preparation of the Alliance Reserve Report was true and
correct in all material respects; (b) to the knowledge of the Alliance Entities,
the assumptions utilized in the preparation of the Alliance Reserve Report are
true and correct in all material respects in light of the properties involved;
(c) to the knowledge of the Alliance Entities, the calculations and other
methodology utilized in the preparation of the Alliance Reserve Report are
consistent with generally accepted standards of petroleum reservoir engineering
at the dates of their preparation; (d) none of the Alliance Entities have any
knowledge that the oil, condensate, natural gas liquids and gas reserves
attributable to the Alliance Interests as of the date of the Alliance Reserve
Report are materially less than the estimates of quantities of those reserves
shown in the Alliance Reserve Report; (e) none of the Alliance Entities have any
knowledge of any change (other than normal depletion by production in the
ordinary course, price changes, and sales of property in any single transaction
having a value of less than $25,000) occurring since the date of the Alliance
Reserve Report that would result in a material change in the information
contained in the Alliance Reserve Report, and (f)
37
<PAGE>
to the knowledge of the Alliance Entities, none of the Alliance Entities or the
Alliance Interests are subject to any agreements, consents, orders or
regulations that would materially reduce the rate of production of Hydrocarbons
or other substances from the Alliance Interests below that reflected in the
Alliance Reserve Report.
5.20 Wells.
-----
(a) To the knowledge of the Alliance Entitles, all of Alliance's Wells
have been drilled and completed within the boundaries of the Major Producing
Leases of the Alliance Entities or within the limits otherwise permitted by the
Alliance Oil and Gas Contracts, and by law.
(b) To the knowledge of the Alliance Entities, the drilling and
completion of all Alliance's Wells and all development and operations of the
Alliance Interests have been conducted in material compliance with all
applicable laws, ordinances, rules, regulations and permits, and judgments,
orders and decrees of any Governmental Entity.
(c) To the knowledge of the Alliance Entities, none of Alliance's
Wells is subject to material penalties on allowable production after the date of
this Agreement because of any overproduction or any other violation of
applicable laws, rules, regulations or permits or judgments, orders or decrees
of any Governmental Entity that would prevent any of Alliance's Wells from being
entitled to its full legal and regular allowable production from and after the
date of this Agreement as prescribed by any Governmental Entity.
5.21 No Funds in Suspense. To the knowledge of the Alliance Entities,
--------------------
all material proceeds from the sale of Hydrocarbons produced from the Alliance
Interests are currently being paid to the Alliance Entities and no portion of
such proceeds is currently being held in suspense by any purchaser thereof or
any other party by whom proceeds are paid except for immaterial amounts.
5.22 Regulatory Compliance. To the knowledge of the Alliance
---------------------
Entities, all material filings and approvals under the Natural Gas Policy Act of
1978, as amended for with FERC, or required under any rules or regulations
adopted by FERC which are necessary for the operation of the Alliance Interests
in the manner in which they are presently operated, have been made or granted.
5.23 Physical Condition of Facilities. To the knowledge of the
--------------------------------
Alliance Entities, in all material respects, the physical facilities on the
Alliance Interests (including facilities held under lease) have been maintained
in accordance with good industry maintenance practices and are in a state of
repair (normal wear and tear excepted) that is adequate for the intended use of
such facilities in the ordinary conduct of the business.
5.24 Data Regarding the Alliance Interests. All of the information
-------------------------------------
described in Sections 7.6 and 7.7 made or to be made available to LaTex and its
------------ ---
representatives is accurate and complete in all material respects, when
considered in context and together with all relevant information made available.
38
<PAGE>
5.25 Litigation.
----------
(a) There is no action, proceeding, investigation or inquiry pending
or, to the knowledge of the Alliance Entities, threatened (i) against or
affecting any of the Alliance Entities or their assets or ordinary conduct of
the business that, if determined adversely to the Alliance Entities, would
result in a Material Effect or (ii) that questions this Agreement or any action
contemplated by this Agreement or in connection with the Merger.
(b) There are no citations, fines or penalties heretofore asserted
against any of the Alliance Entities or their assets under any federal, state or
local law relating to air, noise or water pollution or other environmental
protection matters, or relating to occupational health or safety, of which such
entity has received notice and that remain unpaid or that could otherwise bind
the assets of any of the Alliance Entities and that would result in a Material
Effect.
(c) Alliance has no knowledge of any state of facts or of the
occurrence or nonoccurrence of any event or group of related events, that should
reasonably cause Alliance to determine that there exists any basis for any
material claim against the Alliance Entities for any of the matters described in
paragraphs (a) or (b).
5.26 Tax Returns and Payments.
------------------------
(a) The Alliance Entities (or the common parent of any affiliated
group of which any of such entities is or has been a member) have duly filed in
correct form in all material respects all Tax Returns required to be filed by
such entities and have duly paid or provided for payment of (or there have been
paid on their behalf) all Taxes due or claimed to be due from them by federal,
state, local or foreign taxing authorities, excluding Taxes that are being
contested in good faith by appropriate proceedings and as to which adequate
reserves have been provided and that are specifically identified in Section 5.26
------------
of the Alliance Disclosure Schedule.
- -----------------------------------
(b) There are no tax liens upon any property or assets owned by any of
the Alliance Entities that would have a Material Effect.
(c) All Tax Returns of the Alliance Entities filed, including any
amendments to date, have been prepared in good faith without willful
misrepresentation and are complete and accurate in all material respects. The
United Kingdom income tax returns of the Alliance Entities have been examined by
the Inland Revenue Service or other relevant tax authority for all periods
through April 30, 1994, and all deficiencies assessed as a result of such
examination have been paid in full or finally settled and no issue has been
raised by the Inland Revenue Service or other relevant tax authority in any such
examination that has been resolved adversely to any of the Alliance Entities or
is still pending and, by application of similar principles, reasonably could be
expected to result in an assertion by the Inland Revenue Service or other
relevant tax authority of a material deficiency in any other taxable year or
with respect to any other of the Alliance Entities. There are no outstanding
agreements, waivers or other arrangements providing for an extension of time
with respect to the filing of any Tax Returns or the payment by, or assessment
against, any of the Alliance Entities for any Taxes.
39
<PAGE>
(d) The reserves made for Taxes on the respective balance
sheets in the Alliance Financial Statements are sufficient for the payment of
all unpaid Taxes due and payable by the Alliance Entities attributable to all
periods ended on or before the date of the respective balance sheets in
accordance with GAAP.
5.27 Insurance. Section 5.27 of the Alliance Disclosure
--------- ---------------------------------------
Schedule contains a true, correct, and complete description of all policies of
- --------
fire, casualty and extended coverage, public liability, products liability,
worker's compensation and other forms of insurance owned or held by or for the
benefit of the Alliance Entities (other than insurance owned or held by
operators for those Alliance Interests where one of the Alliance Entities is not
the operator). All such policies are sufficient for material compliance with all
requirements of law and all agreements for which those entities are parties,
are, to the knowledge of the Alliance Entities, valid and enforceable policies,
will remain in full force and effect through the respective dates set forth in
Section 5.27 of the Alliance Disclosure Schedule subject to the timely payment
- ------------------------------------------------
of the premiums set forth therein, and will not in any way be affected by, or
terminate or lapse by reason of, the transactions contemplated by this
Agreement. All premiums due under such policies have been paid and the insureds
have complied in all material respects with such policies.
5.28 Contracts.
---------
(a) Section 5.28 of the Alliance Disclosure Schedule
------------------------------------------------
contains a complete and correct list as of the date hereof of all agreements,
contracts and commitments of the following types (and all amendments thereto),
written or oral, to which any of the Alliance Entities is a party or by which
any of their properties is bound:
(i) notes, agreements, mortgages, indentures, security
agreements and other instruments relating to the borrowing of money or
evidence of credit or the deferred purchase price of property, or the
direct or indirect guarantee by such entities of any such indebtedness
or deferred purchase price, in excess of $20,000;
(ii) leases of real property and material personal property
providing for payments under any such lease or group of related leases
at an annual rate in excess of $25,000 (other than Leases);
(iii) partnership or joint venture agreements;
(iv) management, employment and consulting agreements or
other contracts for personal services that are not terminable by any of
such entities on not more than one month's notice without penalty;
(v) agreements providing for liability for severance pay,
collective bargaining agreements, labor contracts, or labor or
personnel policies;
(vi) surety, performance and maintenance bonds in excess of
$5,000;
(vii) agreements or commitments for capital expenditures in
excess of $25,000;
40
<PAGE>
(viii) any plan, contract or arrangement providing for
bonuses, pensions, deferred compensation, retirement plan payments,
profit sharing, incentive pay, or for any other employee benefit plan;
(ix) brokerage or finder's agreements;
(x) any agreement that (a) restricts the right of such
entities to engage in any place in any line of business or (b) would
restrict the right of the Surviving Corporation or any Subsidiary of
the Surviving Corporation to engage in any line of business after the
Closing Date;
(xi) any contract, commitment or agreement that involves the
disposition after October 31, 1995, of any assets of any or such
entities not in the ordinary course of business consistent with past
practice;
(xii) any contract, commitment or agreement between any of
such entities or between any of such entities and any director, or
officer of any of the Alliance Entities (other than those that will be
terminated on or prior to Closing);
(xiii) any Alliance Oil and Gas Contract that commits any of
the Alliance Entities to make any capital expenditures in any calendar
year; and
(xiv) other agreements, contracts and commitments' that in
any way involve payments or receipts during the remaining term of such
agreement, contract or commitment in excess of $25,000.
(b) Alliance has made available to LaTex complete and
correct copies of all written agreements, contracts and commitments, together
with all amendments thereto, and accurate (in all material respects)
descriptions of all oral agreements, in all cases, described in subparagraph
(a). Such agreements, contracts and commitment are in full force and effect, and
all of such entities and, to the knowledge of the Alliance Entities, all other
parties to such agreements, contracts and commitments have performed all
obligations required to be performed by them to date thereunder in all material
respects and are not in default thereunder in any material respect.
(c) None of the Alliance Entities has outstanding any
powers of attorney, including powers of attorney with respect to representation
before any Governmental Entity, customs agents and brokers, or given in
connection with qualification to conduct business in any other jurisdiction.
5.29 Transactions with Interested Persons. No officer or
------------------------------------
director of any of the Alliance Entities (or spouse or any child thereof) owns,
directly or indirectly, on an individual or joint basis, any material interest
in, or serves as an officer, director or employee of, any customer, competitor
or supplier of or any person or entity that has a material contract or
arrangement with
41
<PAGE>
any of the Alliance Entities, except for holdings of capital stock not exceeding
one percent (1%) of the total number of shares of capital stock of such
customer, competitor or supplier outstanding.
5.30 Compensation and Employee Plans.
-------------------------------
(a) Alliance has provided LaTex (i) the names and current
annual compensation rates of all present directors, officers, employees,
independent contractors or agents of each of the Alliance Entities and (ii) the
number, job category and range of compensation by job category of all employees
of such entities.
(b) Section 5.30 of the Alliance Disclosure Schedule sets
------------------------------------------------
forth the name of each Plan applicable to any of the Alliance Entities and lists
all documents evidencing any Plan applicable to any of the Alliance Entities.
(c) Each Plan applicable to any of the Alliance Entities is
now, and has been from its inception, administered in compliance in all material
respects with the provisions of all applicable laws and regulations, including
ERISA, the Code and the ADEA, insofar as such statutes are applicable to such
Plan.
5.31 Accounts Receivable; Inventories.
--------------------------------
(a) The accounts receivable of the Alliance Entities as
reflected on the respective balance sheets of the Alliance Financial Statements
(except to the extent collected after the date thereof) (i) have arisen in the
ordinary course of business for goods delivered or services rendered, and (ii)
are good and collectible, except as otherwise reserved for on the respective
balance sheets.
(b) To the knowledge of the Alliance Entities, all of the
Alliance Entities' accounts receivable existing at Closing will be collectible
in all material respects at their aggregate recorded amounts (net of any
allowances for doubtful accounts reflected on the Alliance Financial Statements)
in the ordinary course of business within ninety (90) days of the Closing,
without resort to litigation, and will not be subject to counterclaim or set
off.
(c) The inventories of the Alliance Entities as reflected
on the respective balance sheets included in the Alliance Financial Statements
have been valued in accordance with GAAP and customary industry practice using
COPAS guidelines.
5.32 Brokers, Finders and Advisors. Alliance has not
-----------------------------
employed any broker, finder, or investment advisor on its behalf, or incurred
any liability for any brokerage or finder's fees or commissions in connection
with the transaction contemplated hereby.
5.33 Labor Force.
-----------
(a) Each of the Alliance Entities is in compliance in all
material respects with all applicable laws (including without limitation federal
income tax laws), ordinances, regulations,
42
<PAGE>
statutes, rules and restrictions of any Governmental Entity respecting
employment and employment practices and terms and conditions of employment.
(b) No union representation question exists respecting the
employees of any of the Alliance Entities and, to the knowledge of the Alliance
Entities, no union organizing activities are taking place.
5.34 Books and Records. The books and records of each of the
-----------------
Alliance Entities (including, without limitation, the books of account, minute
books and stock record books) are complete and correct in all material respects
and have been maintained in accordance with sound business practices. The minute
books of each of the Alliance Entities contain accurate and complete records in
all material respects of all meetings held of, and corporate action taken by,
the shareholders and the Boards of Directors of the respective entities and no
meetings of or actions by such shareholders or any such Boards of Directors have
been held or taken for which minutes have not been prepared and are not
contained in such minute books. None of the records and written documents
furnished or made available to LaTex's representatives or agents by the Alliance
Entities concerning the Alliance Interests, when considered in context and
together with any relevant or related documents also so furnished or made
available, contain any untrue statement of material fact or omit a material fact
necessary to make any statement therein not misleading.
5.35 Payments. None of the Alliance Entities has, directly
--------
or indirectly, paid or delivered any fee, commission or other sum of money or
item of property however characterized to any finder, agent, government official
or other party, in the United States or any other country, in any manner related
to its business or operations, which such entity knows or has reason to believe
to have been illegal under any federal, state or local laws of the United States
or any other country or territory having jurisdiction over such entity, and has
not participated, directly or indirectly, in any boycotts or similar practices.
5.36 Public Utility Holding Company. None of the Alliance
------------------------------
Entities owns or operates any facilities used for the retail distribution of
natural or manufactured gas for heat, light or power, nor does any of the
Alliance Entities, directly or indirectly, own, control or hold with power to
vote ten percent (10%) or more of the outstanding stock of, or exercise direct
or indirect controlling influence over the management or policies of such a
company or a company so controlling such a company.
5.37 Exchange Filings. Alliance has filed all forms, reports
----------------
and documents required to be filed with the London Stock Exchange Limited since
January 1, 1993. All of such filings were prepared in accordance with the
requirements of all applicable laws and did not at the time they were filed
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
5.38 Disclosure. No representation or warranty made by
----------
Alliance in this Agreement (including, without limitation, in the Alliance
Disclosure Schedule) contains any untrue
43
<PAGE>
statement of material fact or omits or will omit to state any material fact
necessary to make the statements herein or therein not misleading in light of
the circumstances under which made.
5.39 Status of Newco. Except in connection with the Merger,
---------------
Newco has never had any assets or conducted any business. As of the Effective
Time, all of the issued and outstanding stock of Newco will be owned by
Alliance.
6. Actions of LaTex Prior to the Closing Date.
------------------------------------------
6.1 Affirmative Covenants. Prior to the Closing Date,
---------------------
LaTex, except as otherwise set forth in Section 6.1 of the LaTex Disclosure
-----------------------------------
Schedule, covenants that, unless the prior written consent of Alliance is first
- --------
obtained, which consent shall not be unreasonably withheld, the LaTex Entities
will:
(a) Carry on their respective businesses in the usual,
regular and ordinary course in substantially the same manner as heretofore
conducted and use all reasonable efforts to (i) preserve intact their respective
present business organizations, (ii) keep available the services of their
respective present officers and key employees and (ii) preserve their respective
relationships with customers, suppliers and any others having business dealings
with them; and
(b) Duly comply with all laws applicable to them and their
respective properties, operations, business and employees which if not complied
with would result in a Material Effect.
6.2 Negative Covenants. Prior to the Closing Date, except
------------------
with the prior written consent of Alliance, and except as otherwise set forth in
Section 6.2 of the LaTex Disclosure Schedule, which consent shall not be
- --------------------------------------------
unreasonably withheld, the LaTex Entities will not:
(a) Do any of the restricted acts set forth in Section 4.8
-----------
hereof, or enter into any agreement of a nature set forth in Section 4.29
------------
hereof;
(b) Enter into or permit any of the LaTex Entities to enter
into any transaction other than in the ordinary course of business; or
(c) Amend the respective organizational or governing
documents of any of the LaTex Entities.
6.3 Consents. The LaTex Entities will use their best
--------
efforts to obtain all consents from third parties necessary or appropriate to
effectuate the transactions contemplated by this Agreement.
6.4 Advice of Changes. LaTex will promptly advise Alliance
-----------------
in writing from time to time prior to the Closing Date with respect to any
matter hereafter arising and known to it that, if existing or occurring at the
date of this Agreement, would have been required to be set
44
<PAGE>
forth or described in the LaTex Disclosure Schedule or would have resulted in
any representation of LaTex in this Agreement being untrue.
6.5 Best Efforts. The LaTex Entities will use their best
------------
efforts to cause to be fulfilled those of the conditions to Alliance's and
Newco's obligations to consummate the transactions contemplated by this
Agreement that are dependent upon their actions and to execute and deliver such
instruments and take such other actions as necessary or appropriate in order to
carry out the intent of this Agreement.
6.6 Access to Properties and Records. From and after the
--------------------------------
date of this Agreement through the earlier of the Closing or the termination of
this Agreement, the LaTex Entities shall (a) provide Alliance an identification
of and access to all books, records and documents, including contracts,
agreements, consents, settlements, maps, revenue and expense information,
production data and geological and geophysical data relating to the LaTex
Interests, (b) afford to Alliance and their officers, attorneys, accountants and
other authorized representatives free and full access during normal business
hours to the offices, properties, books and records of the LaTex Entities, and
(c) cause counsel and accountants to the LaTex Entities to furnish such
additional financial and operating data and other information as Alliance shall
from time to time request in order that Alliance may have full opportunity to
make such investigation as they shall desire to make of the affairs of the LaTex
Entities and their assets.
6.7 Supply Documents, Reports, etc.
------------------------------
(a) LaTex shall furnish or make available to Alliance all
documents, reports and other information and data (including financial
statements) concerning the LaTex Entities as Alliance may reasonably require in
connection with any statement, application, or document required to be filed
with applicable Governmental Entities in connection with the transaction
contemplated by this Agreement or furnished to any other person, firm,
corporation or Governmental Entity in connection with this Agreement, including,
but not limited to the Commission, the Federal Trade Commission and the
Department of Justice.
(b) LaTex represents and warrants that all such information
shall be true, correct, and complete in all material respects and shall not omit
any material fact required to be stated to make such information not misleading
in light of the circumstances under which made.
6.8 Employees. LaTex agrees to use all reasonable efforts
---------
to persuade such of the employees, agents, and independent contractors of the
LaTex Entities as Alliance may designate to continue as employees, agents, and
independent contractors of the LaTex Entities after the Closing Date.
6.9 No Solicitation, etc. LaTex shall not (and will cause
--------------------
each of the executive officers and members of its executive management, as
identified in LaTex's Annual Report to Stockholders for the fiscal year ended
July 31, 1995 (collectively, "LaTex's Executives"), and its directors, legal and
financial advisors and Affiliates not to) directly or indirectly make, solicit,
encourage, initiate or enter into any agreement or agreement in principle, or
announce any intention to do any of the foregoing, with respect to any offer or
proposal to acquire all or a
45
<PAGE>
substantial part of its or its Subsidiaries' business and properties or any of
its or its Subsidiaries' capital stock whether by merger, purchase of assets,
tender offer or otherwise (an "Alternative Transaction"). LaTex shall not (and
will cause each of LaTex's Executives, directors, legal and financial advisors
and Affiliates not to), directly or indirectly, participate in any negotiations
or discussions regarding, or furnish any information with respect to, or
otherwise cooperate in any way in connection with, or assist or participate in,
facilitate or encourage, any effort or attempt to effect or seek to effect, any
Alternative Transaction with or involving any person other than Alliance unless
LaTex shall have received an unsolicited written offer to effect an Alternative
Transaction which, in the exercise of its fiduciary duty after consideration of
advice from its legal and financial advisors, LaTex's Board of Directors
determines is likely to be more beneficial to the LaTex Stockholders than the
Merger. LaTex will promptly communicate to Alliance the terms of any proposal
which it may receive in respect of any such transaction and will keep Alliance
informed as to the status of any actions, including negotiations or discussions,
taken pursuant to the preceding sentence.
7. Actions of Alliance and Newco Prior to the Closing Date.
-------------------------------------------------------
7.1 Affirmative Covenants. Prior to the Closing Date,
---------------------
Alliance, except as otherwise set forth in Section 7.1 of the Alliance
---------------------------
Disclosure Schedule, covenants that, unless the prior written consent of LaTex
- -------------------
is first obtained, which consent shall not be unreasonably withheld, the
Alliance Entities will:
(a) Carry on their respective businesses in the usual,
regular and ordinary course in substantially the same manner as heretofore
conducted and use all reasonable efforts to (i) preserve intact their respective
present business organizations, (ii) keep available the services of their
respective present officers and key employees and (iii) preserve their
respective relationships with customers, suppliers and any others having
business dealings with them; and
(b) Duly comply with all laws applicable to them and their
respective properties, operations, business and employees which if not complied
with would result in a Material Effect.
7.2 Negative Covenants. Prior to the Closing Date, except
------------------
with the prior written consent of LaTex, and except as otherwise set forth in
Section 7.2 of the Alliance Disclosure Schedule, which consent shall not be
- -----------------------------------------------
unreasonably withheld, the Alliance Entities will not:
(a) Do any of the restricted acts set forth in Section 5.8
-----------
hereof, or enter into any agreement of a nature set forth in Section 5.28
------------
hereof;
(b) Enter into or permit any of the Alliance Entities to
enter into any transaction other than in the ordinary course of business; or
(c) Amend the respective organizational or governing
documents of any of the Alliance Entities.
46
<PAGE>
7.3 Consents. The Alliance Entities will use their best
--------
efforts to obtain all consents from third parties necessary or appropriate to
effectuate the transactions contemplated by this Agreement.
7.4 Advice of Changes. Alliance will promptly advise LaTex
-----------------
in writing from time to time prior to the Closing Date with respect to any
matter hereafter arising and known to it that, if existing or occurring at the
date of this Agreement, would have been required to be set forth or described in
the Alliance Disclosure Schedule or would have resulted in any representation of
Alliance in this Agreement being untrue.
7.5 Best Efforts. The Alliance Entities will use their best
------------
efforts to cause to be fulfilled those of the conditions to LaTex's obligations
to consummate the transactions contemplated by this Agreement that are dependent
upon their actions and to execute and deliver such instruments and take such
other actions as necessary or appropriate in order to carry out the intent of
this Agreement.
7.6 Access to Properties and Records. From and after the
--------------------------------
date of this Agreement through the earlier of the Closing or the termination of
this Agreement, the Alliance Entities shall (a) provide LaTex an identification
of and access to all books, records and documents, including contracts,
agreements, consents, settlements, maps, revenue and expense information,
production data and geological and geophysical data relating to the Alliance
Interests, (b)afford to LaTex and their officers, attorneys, accountants and
other authorized representatives free and full access during normal business
hours to the offices, properties, books and records of the Alliance Entities,
and (c) cause counsel and accountants to the Alliance Entities to furnish such
additional financial and operating data and other information as LaTex shall
from time to time request in order that LaTex may have full opportunity to make
such investigation as they shall desire to make of the affairs of the Alliance
Entities and their assets.
7.7 Supply Documents, Reports, etc.
------------------------------
(a) Alliance shall furnish or make available to LaTex all
documents, reports and other information and data (including financial
statements) concerning the Alliance Entities as LaTex may reasonably require in
connection with any statement, application, or document required to be filed
with applicable Governmental Entities in connection with the transaction
contemplated by this Agreement or furnished to any other person, firm,
corporation or Governmental Entity in connection with this Agreement, including,
but not limited to the Commission, the Federal Trade Commission and the
Department of Justice.
(b) Alliance represents and warrants that all such
information shall be true, correct, and complete in all material respects and
shall not omit any material fact required to be stated to make such information
not misleading in light of the circumstances under which made.
7.8 No Solicitation, etc. Alliance shall not (and will
--------------------
cause each of the executive officers and members of its executive management, as
identified in Alliance's Annual Report to Stockholders for the fiscal year ended
April 30, 1996 (collectively, "Alliance's Executives"), and its directors, legal
and financial advisors and Affiliates not to) directly or indirectly make,
solicit,
47
<PAGE>
encourage, initiate or enter into any agreement or agreement in principle, or
announce any intention to do any of the foregoing, with respect to any offer or
proposal to acquire all or a substantial part of its or its Subsidiaries'
business and properties or any of its or its Subsidiaries' capital stock whether
by merger, purchase of assets, tender offer or otherwise (an "Alternative
Transaction"). Alliance shall not (and will cause each of Alliance's Executives,
directors, legal and financial advisors and Affiliates not to), directly or
indirectly, participate in any negotiations or discussions regarding, or furnish
any information with respect to, or otherwise cooperate in any way in connection
with, or assist or participate in, facilitate or encourage, any effort or
attempt to effect or seek to effect, any Alternative Transaction with or
involving any person other than LaTex unless Alliance shall have received an
unsolicited written offer to effect an Alternative Transaction which, in the
exercise of its fiduciary duty after consideration of advice from its legal and
financial advisors, Alliance's Board of Directors determines is likely to be
more beneficial to the Alliance Stockholders than the Merger. Alliance will
promptly communicate to LaTex the terms of any proposal which it may receive in
respect of any such transaction and will keep LaTex informed as to the status of
any actions, including negotiations or discussions, taken pursuant to the
preceding sentence. Nothing contained herein shall preclude Alliance from
continuing negotiations to acquire certain assets and companies which have been
previously disclosed to LaTex ("Potential Additional Transactions"); provided,
--------
however, that the terms of any Potential Additional Transaction shall have been
- -------
disclosed in writing and are acceptable to LaTex prior to the execution of a
definitive agreement with respect to such assets or companies and further
provided that any agreement by Alliance to acquire such assets or companies
pursuant to any Potential Additional Transaction shall require the issuance of a
fairness opinion by Rothschild Natural Resources LLC; and further provided
that if LaTex fails or refuses to accept the terms of any Potential Additional
Transaction disclosed to it in writing by Alliance, such Potential Additional
Transaction shall not constitute an Alternative Transaction, but if Alliance
determines to proceed with a Potential Alternative Transaction, the terms of
which have not been accepted by LaTex, LaTex shall have the absolute right to
terminate this Agreement pursuant to Section 11.1(1), in which event neither
---------------
party shall have any further obligation or liability to the other as more
particularly described in Section 11.3(a).
---------------
8. Conditions to Alliance's or Newco's Obligations. Each and
-----------------------------------------------
every obligation of Alliance and Newco under this Agreement to be performed on
or before the Closing Date is, at the option of Alliance, subject to the
satisfaction on or before the Closing Date of each of the following conditions:
(a) Each class of the LaTex Stockholders shall have
approved the Merger.
(b) (i) All of the terms, covenants and conditions of this
Agreement to be complied with or performed by LaTex at or before the Closing
Date shall have been duly complied with and performed in all material respects,
(ii) the representations and warranties of LaTex set forth in Article 4, as
---------
modified by the statements contained in the LaTex Disclosure Schedule, shall be
true in all material respects on and as of the Closing Date with the same force
and effect as if such representations and warranties had been made on and as of
the Closing Date (but this provision shall not mean that representations and
warranties relating to a specific date, such as Section 4.6(a), shall relate to
--------------
any other date) and (iii) Alliance shall have received a certificate to such
effect from an officer of LaTex. Whether the conditions in subparagraphs (i)
48
<PAGE>
and (ii) above have been satisfied shall be determined without regard to any
materiality qualifications or provisions contained in any such covenants,
representations or warranties.
(c) All consents, waivers, approvals, licenses,
authorizations of, or filings or declarations with third parties or Governmental
Entities required to be obtained by the LaTex Entities in order to permit the
transactions contemplated by this Agreement to be consummated in accordance with
governmental laws, rules, regulations and agreements shall have been obtained,
and the registration statement required by Section 2.10(b) shall be effective
---------------
under the Securities Act, no stop orders suspending the effectiveness of the
registration statement shall have been issued, no action, suit, proceeding or
investigation by the Commission to suspend the effectiveness thereof shall have
been initiated and be continuing, and all necessary approvals under state
securities laws or the Securities Act or the Securities Exchange Act of 1934
relating to the issuance or trading of the Alliance Shares issuable pursuant to
the Merger shall have been received.
(d) LaTex shall have delivered to Alliance an agreement in
the form attached to this Agreement as Exhibit C, executed by each of LaTex's
---------
Affiliates regarding his or its investment in the Alliance Shares.
(e) Alliance and Newco shall have received the opinion of
counsel for LaTex, dated the Closing Date, opining to certain of the matters
referenced in Sections 4.1 , 4.2, 4.3, 4.4, 4.10 and 4.25 and in the form
-------------------------------------------
acceptable to Alliance and Newco and their counsel.
(f) The aggregate number of each class of LaTex Shares held
by the LaTex Stockholders who have delivered and not withdrawn a written demand
for appraisal of their shares shall not exceed five percent (5 %) of that class
of LaTex Shares outstanding and entitled to vote at the meeting of LaTex
Stockholders.
(g) All outstanding options or other rights to purchase or
acquire LaTex Shares (other than the Warrants) shall have been canceled without
further liability to LaTex or Alliance.
(h) All actions, proceedings, instruments and documents in
connection with the consummation of the transactions contemplated by this
Agreement, including the forms of all documents, legal matters, opinions and
procedures in connection therewith, shall have been approved in form and
substance by counsel for Alliance, Jenkens & Gilchrist, P.C. , which approval
shall not be unreasonably withheld.
(i) The LaTex Entities shall have furnished such
certificates to evidence compliance with the conditions set forth in this
Article, as may be reasonably requested by Alliance or its counsel.
(j) There shall not have been any material loss resulting
from destruction of the LaTex Interests due to acts of God, fire, explosion or
other casualty which is not reimbursable in all material respects under policies
of insurance maintained by or for the benefit of the LaTex Entities.
49
<PAGE>
(k) No material information or data provided or made
available to Alliance by or on behalf of LaTex shall be incorrect in any
material respect.
(l) LaTex shall have sold or otherwise disposed of its
interests in the Excluded Entities. The conditions of the sale or disposition
shall result in no less favorable terms to LaTex than if the existing equity and
debt reflected on LaTex's books for these interests were written down to zero.
At the time of the Merger, LaTex shall have no rights or obligations with
respect to any of these entities.
(m) The Alliance Shares to be issued to the LaTex
Stockholders pursuant to the Merger shall have been approved for listing on the
London Stock Exchange and such listing shall have become effective.
(n) Each LaTex Stockholder who will directly own five
percent (5%) or more of both the voting power and total value of Alliance as a
consequence of the Merger and the transactions contemplated thereby will enter
into a gain recognition agreement with the Internal Revenue Service.
9. Conditions to LaTex's Obligations. Each and every obligation
---------------------------------
of LaTex under this Agreement to be performed on the Closing Date is, at the
option of LaTex, subject to the satisfaction on or before the Closing Date, of
each of the following conditions:
(a) The Alliance Stockholders shall have approved the
Merger, the issue of the new Alliance Shares and the reverse stock split of the
Alliance Shares;
(b) (i) All of the terms, covenants and conditions of this
Agreement to be complied with or performed by Alliance and Newco at or before
the Closing Date shall have been duly complied with and performed in all
material respects, (ii) the representations and warranties of Alliance and Newco
set forth in Article 5, as modified by the statements contained in the Alliance
---------
Disclosure Schedule, shall be true in all material respects on and as of the
Closing Date with the same force and effect as if such representations and
warranties had been made on and as of the Closing Date (but this provision shall
not mean that representations and warranties relating to a specific date, such
as Section 5.6(a), shall relate to any other date), and (iii) LaTex shall have
--------------
received a certificate to such effect from an officer of each of Alliance and
Newco at Closing. Whether the conditions in subparagraphs (i) and (ii) above
have been satisfied shall be determined without regard to any materiality
qualifications or provisions contained in any such covenants, representations or
warranties.
(c) All consents, waivers, approvals, licenses,
authorizations of, or filings or declarations with third parties or Governmental
Entities required to be obtained by Alliance and Newco in order to permit the
transactions contemplated by this Agreement to be consummated in accordance with
governmental laws, rules, regulations and agreements shall have been obtained,
and the registration statement required by Section 2.10(b) shall be effective
---------------
under the Securities Act, no stop orders suspending the effectiveness of the
registration statement shall have been issued, no action, suit, proceeding or
investigation by the Commission to suspend the effectiveness thereof shall have
been initiated and be continuing, and all necessary approvals under state
50
<PAGE>
securities laws or the Securities Act or the Securities Exchange Act of 1934
relating to the issuance or trading of the Alliance Shares issuable pursuant to
the Merger shall have been received.
(d) LaTex shall have received opinions from counsel for
Alliance and Newco, dated the Closing Date, opining to certain of the matters
referenced in Sections 5.1 , 5.2, 5.3, 5.4, 5.6, 5.10 and 5.24 and in the forms
------------------------------------------------
acceptable to LaTex and its counsel.
(e) All actions, proceedings, instruments and documents in
connection with the consummation of the transactions contemplated by this
Agreement, including the forms of all documents, legal matters, opinions and
procedures in connection therewith, shall have been approved in form and
substance by counsel for LaTex, Pray, Walker, Jackman, Williamson & Marlar,
which approval shall not be unreasonably withheld.
(f) Alliance and Newco shall have furnished such
certificates of its officers and others to evidence compliance with the
conditions set forth in this Article, as may be reasonably requested by LaTex or
its counsel.
(g) There shall not have been any material loss resulting
from destruction of the Alliance Interests due to acts of God, fire, explosion
or other casualty which is not reimbursable in all material respects under
policies of insurance maintained by or for the benefit of the Alliance Entities.
(h) No material information or data provided or made
available to LaTex by or on behalf of Alliance shall be incorrect in any
material respect.
(i) The Alliance Shares to be issued to the LaTex
Stockholders pursuant to the Merger shall have been approved for listing on the
London Stock Exchange and such listing shall have become effective.
(j) Alliance shall have entered into a definitive agreement
with John O'Brien, the former Chief Executive Officer of Alliance ("O'Brien"),
to settle all claims, disputes, actions and disagreements between Alliance and
O'Brien on terms either previously disclosed in writing to LaTex or otherwise
reasonably satisfactory to LaTex.
(k) LaTex shall have received an opinion from counsel for
Alliance and Newco, dated the Closing Date, in a form reasonably satisfactory to
LaTex, to the effect that
(i) the Merger will qualify as a reorganization
within the meaning of Section 368(a) of the Code;
(ii) the exchange in the Merger of LaTex Common
Stock, LaTex Series A Shares, LaTex Series B Shares and LaTex
Warrants for Alliance Shares will not give rise to gain or
loss to the LaTex Stockholders with respect to such exchange;
and
51
<PAGE>
(iii) LaTex will not recognize gain or loss as a
consequence of the Merger and the transactions contemplated
thereby.
(l) Alliance shall have consummated all Potential
Additional Transactions, if any, for which definitive agreements were executed
by Alliance on or before September 15, 1996, in accordance with the provisions
of Section 7.8, and which are required so that the matters to be addressed in
-----------
the opinion described in Section 9(k) will be true and correct as of Closing.
------------
10. Additional Agreements.
---------------------
10.1 Confidentiality. The parties hereto will, and will
---------------
cause their officers, directors, employees and authorized representatives to,
hold in confidence all, and not to use or to disclose to others any, nonpublic
information received by them from another party hereto in connection with the
transactions contemplated by this Agreement; provided, however, the foregoing
shall not restrict necessary disclosures in compliance with requirements of any
law, governmental order or regulation.
10.2 Further Assurances. After Closing, the parties shall
------------------
execute, acknowledge and deliver or cause to be executed, acknowledged and
delivered such instruments and take such other action including payment of
monies as may be necessary or advisable to carry out their obligations under
this Agreement and under any document, certificate or other instrument delivered
pursuant hereto or required by law. If at any time subsequent to the Closing,
any party comes into possession of money or property belonging to another party,
such money or property shall be promptly turned over to the party entitled
thereto.
10.3 Resignations. Messrs. Jeffrey T. Wilson and Malcom W.
------------
Henley shall resign as officers, directors and employees of the LaTex Entities
as of Closing, and LaTex shall cause all other officers and directors of the
LaTex Entities to resign as officers and directors as of Closing.
10.4 Alliance Directors. At the Closing Date, the Board of
------------------
Directors of Alliance will be expanded to nine members and Messrs. Jeffrey T.
Wilson and John R. Martinson will be appointed to the Board of Alliance.
10.5 Offices. The executive offices of the Surviving
-------
Corporation shall be located in London, England, with LaTex's present offices
becoming the operational headquarters for the assets located in the United
States.
10.6 LaTex Personnel. Alliance agrees that any LaTex
---------------
personnel terminated as a result of the Merger will be compensated on a no less
favorable basis than LaTex's existing policies governing these matters currently
provides; provided, however, that Alliance shall have the right to terminate any
employee at any time for any reason or for no reason. The following key
personnel shall be retained as full-time employees of the Surviving Corporation
for a minimum of six months following the completion of the Merger: Messrs.
Hull, Heinsius, Cox,
52
<PAGE>
Ensminger, Smethers and Burns; provided, however, that Alliance shall have the
right to terminate any of the foregoing individuals for good cause
10.7 Consulting Agreement. As of the Closing Date, Alliance
--------------------
shall enter into a consulting arrangement with Mr. Jeffrey T. Wilson
satisfactory to both parties pursuant to which Mr. Wilson will provide certain
consulting services relating to acquisitions in the energy industry for Alliance
subsequent to the Merger.
11. Termination, Waiver and Amendment.
---------------------------------
11.1 Termination. This Agreement and the transactions
-----------
contemplated herein may be terminated and abandoned at any time on or prior to
the Closing Date:
(a) By mutual consent of LaTex and Alliance; or
(b) By Alliance if:
(i) Any representation, warranty or covenant made
herein for the benefit of Alliance or Newco or any
certificate, schedule or document furnished to Alliance
pursuant to this Agreement is untrue in any material respect
(without regard to any materiality or knowledge qualifications
or provisions contained in such representation, warranty or
covenant) and such breach is not cured within ten (10) days of
LaTex's receipt of a notice from Alliance that such breach
exists or has occurred;
(ii) LaTex shall have defaulted in any material
respect (without regard to any materiality qualifications or
provisions contained in such representation , warranty or
covenant) in performance of any material obligation under this
Agreement and such breach is not cured within ten (10) days of
LaTex's receipt of a notice from Alliance that such breach
exists or has occurred; or
(iii) Consummation of the transactions contemplated
by this Agreement would violate any nonappealable final order,
decree or judgment of any court or governmental body having
competent jurisdiction; or
(c) By LaTex if:
(i) Any representation, warranty or covenant made
herein for the benefit of LaTex or any certificate, schedule
or document furnished to LaTex pursuant to this Agreement is
untrue in any material respect (without regard to any
materiality or knowledge qualifications or provisions
contained in such representation, warranty or covenant) and
such breach is not cured within ten (10) days of Alliance's
receipt of a notice from LaTex that such breach exists or has
occurred;
53
<PAGE>
(ii) Alliance or Newco shall have defaulted in any
material respect (without regard to any materiality
qualifications or provisions contained in such representation,
warranty or covenant) in performance of any material
obligation under this Agreement and such breach is not cured
within ten (10) days of Alliance's receipt of a notice from
LaTex and the Controlling Stockholders that such breach exists
or has occurred; or
(iii) Consummation of the transactions contemplated
by this Agreement would violate any nonappealable final order,
decree or judgment of any court or governmental body having
competent jurisdiction; or
(d) By either party if the Closing Date does not occur on
or before January 31, 1997 (or such later date as may be mutually agreed upon
by the parties hereto), and such party has complied with the provisions of
Section 6.5 or Section 7.5, as the case may be.
- ----------- -----------
(e) By either Alliance or LaTex, if this Agreement, the
Merger and the Alliance reverse stock split shall fail to be approved and
adopted by the affirmative vote of the LaTex Stockholders required under the law
applicable to LaTex and LaTex's charter;
(f) By either LaTex or Alliance, if this Agreement, the
Merger and the Alliance reverse stock split shall fail to be approved and
adopted by the affirmative vote of the Alliance Stockholders required under the
law applicable to Alliance and Alliance's charter;
(g) By LaTex, upon the prior payment of a termination fee
to Alliance in the amount of $1,000,000, plus an amount equal to Alliance's
Reimbursable Expenses if LaTex shall have received an unsolicited written offer
from a person to effect an Alternative Transaction which, in the exercise of its
fiduciary duty after consideration of advice from its legal and financial
advisors, LaTex's Board of Directors determines will be more beneficial to the
LaTex Stockholders than the Merger and which LaTex's Board of Directors has
determined to accept; provided that LaTex shall not be entitled to terminate
--------
this Agreement pursuant to this paragraph (g) if LaTex shall have breached
Section 6.9 with respect to the offer in question;
- -----------
(h) By Alliance, upon the prior payment of a termination
fee to LaTex in the amount of $1,000,000, plus an amount equal to LaTex's
Reimbursable Expenses if Alliance shall have received an unsolicited written
offer from a person to effect an Alternative Transaction which, in the exercise
of its fiduciary duty after consideration of advice from its legal and financial
advisors, Alliance's Board of Directors determines will be more beneficial to
the Alliance Stockholders than the Merger and which Alliance's Board of
Directors has determined to accept; provided that Alliance shall not be entitled
--------
to terminate this Agreement pursuant to this paragraph (h) if Alliance shall
have breached Section 7.8 with respect to the offer in question;
-----------
(i) By LaTex if Alliance's Board of Directors shall have
approved, recommended or endorsed an Alternative Transaction; or
(j) By Alliance if LaTex's Board of Directors shall have
approved, recommended or endorsed an Alternative Transaction.
54
<PAGE>
(k) By LaTex if, on September 15, 1996, the matters to be
addressed in the opinion described in Section 9(k) will not be true and correct
------------
as of that date because Alliance has neither (i) entered into any definitive
agreement(s) with respect to any Potential Additional Transactions in accordance
with the provisions of Section 7.8, after giving effect to such Potential
-----------
Additional Transaction as if it had occurred on September 15, 1996 nor (ii)
elected to restructure the Merger and the transactions contemplated thereby in
accordance with Section 2.11.
------------
(l) By LaTex, pursuant to its rights under Section 7.8
-----------
hereof.
11.2 Manner of Exercise. In the event of termination and
------------------
abandonment by Alliance or LaTex, or both, authorized by Section 11.1 , written
------------
notice thereof shall forthwith be given to the other parties and this Agreement
shall terminate and the transactions contemplated hereunder shall be abandoned
without further action by the parties.
11.3 Effect of Termination.
---------------------
(a) In the event of the termination and abandonment
authorized by Section 11.1 (a), (b), (c), (d), (e), (f), (k) or (l), then,
-----------------------------------------------------
subject to, and except as otherwise provided in, the provisions of Section
-------
11.3(d) and Section 11.3(e), this Agreement shall become void and have no
- ---------------------------
effect, without any liability on the part of any of the parties or their
directors or officers or stockholders in respect of this Agreement and the
transactions contemplated hereby, except for the confidentiality obligation of
Section 10.1 and this Section 11.3.
- ------------ ------------
(b) LaTex shall pay to Alliance a termination fee in cash
of $1,000,000 plus an amount equal to Alliance's Reimbursable Expenses within
five business days of termination of this Agreement by LaTex pursuant to Section
-------
11.1(g) or by Alliance pursuant to Section 11.1 (j).
- ------- ----------------
(c) Alliance shall pay to LaTex a termination fee in cash
of $1,000,000 plus an amount equal to LaTex's Reimbursable Expenses within five
business days of termination of this Agreement by Alliance pursuant to Section
-------
11.1(h) or by LaTex pursuant to Section 11.1(i).
- ------- -----------------
(d) At the election of Alliance, LaTex shall pay to
Alliance a termination fee in cash of $1,000,000, plus the amount of Alliance's
Reimbursable Expenses within five business days following written notice of such
election by Alliance delivered following termination of this Agreement by
Alliance pursuant to Section 11.1 (b)(i) or (b)(ii) provided that any breach, in
------------------- ------- --------
addition to giving rise to Alliance's right to terminate this Agreement pursuant
to Section 11.1 (b)(i) or (b) (ii), constituted a knowing misrepresentation or
------------------- --------
intentional breach of warranty by LaTex as of the date hereof or an intentional
breach of an obligation of LaTex, or a knowing or intentional breach of
Article 6 hereof, provided, further, that if Alliance delivers such written
- --------- -------- -------
notice, payment in full of the fees and expense reimbursement pursuant to this
Section shall be in complete satisfaction of any and all liabilities or
obligations that LaTex or its officers, directors and stockholders may have to
Alliance as a result of any of the provisions of this Agreement or the
termination thereof.
(e) At the election of LaTex, Alliance shall pay to LaTex a
termination fee in cash of $1,000,000, plus the amount of LaTex's Reimbursable
Expenses within five business days
55
<PAGE>
following written notice of such election by LaTex delivered following
termination of this Agreement by LaTex pursuant to Section 11.1(c)(i) or
------------------
(c)(ii), provided that any breach, in addition to giving rise to LaTex's right
- ------- --------
to terminate this Agreement pursuant to Section 11.1(c)(j) or (c)(ii),
--------------------- -------
constituted a knowing misrepresentation or intentional breach of warranty by
Alliance as of the date hereof or an intentional breach of an obligation of
Alliance, or a knowing or intentional breach of Article 6 hereof, provided,
--------- --------
further, that if LaTex delivers such written notice, payment in full of the fees
and expense reimbursement pursuant to this Section shall be in complete
satisfaction of any and all liabilities or obligations that Alliance or its
officers, directors and stockholders may have to LaTex as a result of any of
the provisions of this Agreement or the termination thereof.
12. Miscellaneous.
-------------
12.1 Survival. Except for Sections 2.1 through 2.9 and this
-------- ------------ ---
Article 12, the representations, warranties, covenants and agreements of the
- ----------
parties to this Agreement shall not survive the Closing and shall thereafter be
of no further force and effect for any purpose.
12.2 Expenses. Except as otherwise provided herein, the
--------
parties shall each pay their own expenses and costs in connection with this
Agreement and the transactions contemplated hereby.
12.3 Press Releases. No party shall make any public
--------------
announcement or press release with respect to this transaction without first
consulting with the other parties and giving such parties the opportunity to
review and comment thereon.
12.4 Binding Effect. This Agreement and all of the
--------------
provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any party without the prior written consent of the others. Nothing
contained herein, express or implied, is intended to confer on any person other
than the parties hereto or their respective successors and permitted assigns,
any rights, remedies, obligations or liabilities under or by reason of this
Agreement.
12.5 Severability. Any provision of this Agreement that is
------------
prohibited or unenforceable in any jurisdiction shall, in such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
12.6 Notices. Any notice, request, instructions or other
-------
document to be given hereunder to any party shall be in writing, sent by
facsimile transmission or delivered personally or by courier or sent by
certified mail, postage prepaid, as follows:
56
<PAGE>
If to LaTex (prior to the Closing):
LaTex Resources, Inc.
4200 East Skelly Drive, Suite 1000
Tulsa, Oklahoma 74135
Attn: Jeffrey T. Wilson, President
FAX: (918) 747-7010
If to Alliance or Newco:
Alliance Resources Plc
Kingsbury House
15-17 King Street
London SWIY 6QU
Attn: John A. Keenan, Managing Director
FAX: 011 44 171 930 6579
With copy to:
Jenkens & Gilchrist, P.C.
1445 Ross Avenue, Suite 3200
Dallas, Texas 75202-2711
Attn: Francis M. Munchinski
FAX: (214) 855-4300
Any party may change its address for purposes of this Section by giving written
notice of such change of address to the other parties in the manner herein
provided for giving notice. Any notice or communication hereunder shall be
deemed to have been given when (i) deposited in the United States mail, if by
certified mail, and (ii) received, if delivered personally or by courier or
facsimile transmission.
12.7 Entire Agreement. This Agreement (including the
----------------
instruments between the parties referred to herein and any waivers delivered
pursuant hereto) constitutes the entire agreement among the parties and
supersedes all other prior agreements and understandings, both written and oral,
among the parties, or any of them, with respect to the subject matter hereof,
including, without limitation, that certain letter agreement, dated June 28,
1996 between Alliance and LaTex. The Exhibits and Schedules are a part of this
Agreement as if fully set forth herein. All references to articles, sections,
subsections, paragraphs, clauses, exhibits and schedules shall be deemed
references to such part of this Agreement, unless the context shall otherwise
require.
12.8 Amendments; Waivers. No supplement, modification, or
-------------------
amendment of this Agreement or waiver of any provision of this Agreement will be
binding unless executed in writing by, or on behalf of, all parties to this
Agreement. No waiver of any of the provisions of this Agreement will be deemed
or will constitute a waiver of any other provision of this
57
<PAGE>
Agreement (regardless of whether similar), nor will any such waiver constitute a
continuing waiver unless otherwise expressly provided.
12.9 Headings. Descriptive headings contained herein are for
--------
convenience of reference only and shall not affect the meaning or interpretation
hereof.
12.10 Counterparts. This Agreement may be executed in any
------------
number of counterparts, each of which shall be deemed to be an original but all
of which together shall constitute but one agreement.
12.11 Specific Performance. The parties hereto agree that
--------------------
irreparable damage would occur if any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provision hereof in any court of the United States or
any state having jurisdiction, in addition to any other remedy to which they are
entitled at law or in equity.
12.12 GOVERNING LAW. THIS AGREEMENT AND THE LEGAL RELATIONS
-------------
AMONG THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS MADE AND TO
BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.
12.13 Schedules. Any item disclosed by any party in the its
---------
Disclosure Schedule for one purpose and in response to a specific section of
this Agreement shall not be deemed disclosed for any other purpose and in
response to any other section of the Agreement unless specifically so stated.
12.14 Time of Essence. Time is of the essence of the parties'
---------------
obligations to consummate the transactions contemplated by this Agreement on the
Closing Date.
12.15 Best Efforts. No provision of this Agreement calling
------------
for a party to use its best efforts or reasonable efforts shall be construed so
as to require such party to incur out-of-pocket expenditures other than
expenditures normally incurred in transactions similar to the Merger or to take
any step that would not be commercially reasonable, in light of all of the
circumstances.
58
<PAGE>
EXECUTED as of the day and year first above written.
Alliance:
ALLIANCE RESOURCES PLC
By: /s/ John A.Keenan
------------------------------
Name: John A. Keenan
Title: President
NEWCO:
ALLIANCE RESOURCES (DELAWARE),
INC.
By: /s/ John A Keenan
------------------------------
Name: John A. Keenan
Title: President
LATEX:
LATEX RESOURCES, INC.
By: /s/ Jeffery T. Wilson
------------------------------
Name: Jeffrey T. Wilson
Title: President
59
<PAGE>
EXHIBIT A-1
Major Producing Leases
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Working Net Revenue Status Permitted
Interest Interest Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Source Petroleum, South Elton Celia T. Buller #2 0.15000000 0.14406750 Producing
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Joseph Tupper #2 0.98595000 0.73197506 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Joseph Tupper#7 0.99595000 0.73931600 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Joseph Tupper #l0 0.65250000 0.50161478 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Smith-Gooch #3 ORRI 0.02071314 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Jennings Houssiere-Latrielle #2 1.00000000 0.73752713 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #15 1.00000000 0.73752713 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #27 1.00000000 0.73752713 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #28 1.00000000 0.73752713 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #30 1.00000000 0.73752713 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #32 1.00000000 0.73752713 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #1 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #2 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #3 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #4 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #8 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #10 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #14 1.00000000 0.67000000 Producing Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Levy-Arnaudet #1 1.00000000 0.71000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Levy-Arnaudet #2 1.00000000 0.71000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-I - PAGE 1
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Working Net Revenue Status Permitted Encumbrances
Interest Interest
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Martin-Arnaudet #4 1.00000000 0.70000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Martin-Arnaudet #5 1.00000000 0.70000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Martin-Arnaudet #6 1.00000000 0.70000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Martin-Arnaudet #7 1.00000000 0.70000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Carter Clement #2 1.00000000 0.68000000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Jennings Oil #3 1.00000000 0.69687500 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Jennings Oil #4 1.00000000 0.69687500 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Alliance Resources Valentine Valentine Sugars #2 1.00000000 0.69875000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Valentine Sugars #3 1.00000000 0.69875000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Valentine Sugars #4 0.65500000 0.45725000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Arrowhead Valentine 0.11224754 0.07949729 Producing
Sugars #1
- ------------------------------------------------------------------------------------------------------------------------------------
ARNO, Inc. Gilmer South Gene McCollum #1 0.27935880 0.21840000 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Gene McCollum #2 0.28338140 0.22282912 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-1 -- PAGE 2
<PAGE>
EXHIBIT A-2
Major Non-Producing Leases
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Working Net Revenue Status Permitted Encumbrances
Interest Interest
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Source Petroleum, South Elton Celia T. Buller #6 0.99595000 0.73197506 Shut-in
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Lucretia Tupper #3 0.55000000 0.39995474 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jennings Houssiere-Latrielle #1 1.00000000 0.73752713 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #6 1.00000000 0.73752713 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Houssiere-Latrielle #29 1.00000000 0.73752713 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #5 1.00000000 0.67000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Arnaudet #7 1.00000000 0.67000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Gulf-Arnaudet #3 1.00000000 0.78000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Gulf-Arnaudet #4 1.00000000 0.78000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
GuIf-Arnaudet #6 1.00000000 0.78000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
GuIf-Arnaudet #7 1.00000000 0.78000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Gulf-Arnaudet #8 1 .00000000 0.78000000 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Martin-Arnaudet #1 1.00000000 0.70000000 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Carter-Clement #1 1.00000000 0.68000000 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Carter-Clement #5 1.00000000 0.68000000 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Carter-Clement #6 1.00000000 0.68000000 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Branch Donald Gueno #1 0.84000000 0.63000000 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Alliance Resources Jefferson Jefferson Island 1.00000000 0.72000000* Shut-in * Estimated NRI
Island Salt #14
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island 1.00000000 0.72000000* Prospect * Estimated NRI
Salt Co. #2
(Proposed well location)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-2--PAGE 1
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Working Net Revenue Status Permitted Encumbrances
Interest Interest
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Jefferson Salt Co. #8 1.00000000 0.72000000* Prospect *Estimated NRI
(Proposed well location)
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island 1.00000000 0.72000000* Prospect *Estimated NRI
Salt Co. #7
(Proposed well location)
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island 1.00000000 0.72000000* Prospect *Estimated NRI
Salt Co. #4
(Proposed well location)
- ------------------------------------------------------------------------------------------------------------------------------------
Leases
- ------------------------------------------------------------------------------------------------------------------------------------
Company County/State Lessor Lease Date Acres Permitted Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
Source Petroleum, Jeff Davis/LA Joseph Tupper, Jr. June 12, 1996 38.863 Lease subject to agreement creating Area of
Inc. Mutual Interest and, therefore, undivided
interest may be conveyed to other AMI
participants; see Item 2 of Section 5.25(a)
of the Mixer Disclosure Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-2-PAGE 2
<PAGE>
EXHIBIT A-3
Miscellaneous Interests
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Status Permitted Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Source Petroleum, Inc. South Elton Celia T. Buller #1 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Lucretia Tupper #2 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jennings Radke Clement #1 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Radke Clement #2 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Radke Clement #3 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Radke Clement #5 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Chevron-Arnaudet #1 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Chevron-Arnaudet #2 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Chevron-Arnaudet #7 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Chevron-Arnaudet #8 Shut-in Term lease expires April 9, 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
N. Tepetate Etta Sweeney #3 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Tepetate Doguet #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Doguet #2 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
South Crowley Guillot #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Iberia Bolivar #3 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Sabatier #2 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Alliance Resources Valentine Valentine Sugars #5 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Valentine Sugars #6 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Valentine Sugars #7 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Valentine Sugars #9 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-3-PAGE 1
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Status Permitted Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Valentine Sugars #10 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island Jefferson Island Salt Co. #1 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island Salt Co. #2 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island Salt Co. #3 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island Salt Co. Shut-in
#6st
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island Salt Co. #7 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
Jefferson Island Salt Co. #8 Shut-in
- ------------------------------------------------------------------------------------------------------------------------------------
ARNO, Inc. Mocane Alley #1 Producing
Laverne
- ------------------------------------------------------------------------------------------------------------------------------------
Barby #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Bedell #1-20 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Boates #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Bockelman #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Burns #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Charlie #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Duerson #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Grove #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Halliburton #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Harvey #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Hodges #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneck #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Leonard #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Muir #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-3-PAGE 2
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company Field Name Well Name Status Permitted Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shadden #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Sizelove #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
State #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Stinson #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Winn #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Frost West Labrisa #2 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Slick 535 #1 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Slick 535 #2 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Slick 535 #3 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Slick 535 #4 Producing
- ------------------------------------------------------------------------------------------------------------------------------------
Provident City Neuhaus #3 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #5 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #6 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #7 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #8 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #1 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #4 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Neuhaus #9 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Traylor Alma #2 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Traylor Alma #3 Shut-in Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
Traylor Alma #4 Producing Subject to contract for sale; see
Section 5.8(f) of the Mixer Disclosure
Schedule.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-3-PAGE 3
<PAGE>
Leases
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company County/State Lessor Lease Date Acres Permitted Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Source Petroleum, Acadia/LA Archie Andrus, et al. July 1, 1995 25.000
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Greeley, CO Robert Pittenger, et ux December 8, 1994 337.000
- ------------------------------------------------------------------------------------------------------------------------------------
Ethel M. Martin December 5, 1994 160.000
- ------------------------------------------------------------------------------------------------------------------------------------
General Board of Church November 23, 320.000
of Nazarene 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth Johnson, et ux November 21, 160.000
1994
- ------------------------------------------------------------------------------------------------------------------------------------
R&M Farms, Inc. November 17, 160.000
1994
- ------------------------------------------------------------------------------------------------------------------------------------
Esther Allen November 8, 1994 320.000
- ------------------------------------------------------------------------------------------------------------------------------------
David N. Tarman November 3, 1994 160.000
- ------------------------------------------------------------------------------------------------------------------------------------
David N. Tarman, Trustee November 3, 1994 80.000
- ------------------------------------------------------------------------------------------------------------------------------------
Smith Cattle, Inc. November 16, 320.000
1994
- ------------------------------------------------------------------------------------------------------------------------------------
H. Gerald Price, Jr., November 1, 1994 1120.000
et ux
- ------------------------------------------------------------------------------------------------------------------------------------
Frank P. Kipple, et ux October 27, 1994 160.000
- ------------------------------------------------------------------------------------------------------------------------------------
Charles Sessler Trust #1 October 27, 1994 160.000
and LaVon Sessler Trust
#1
- ------------------------------------------------------------------------------------------------------------------------------------
Estate of Mary R. October 25, 1994 160.000
Quaintance
- ------------------------------------------------------------------------------------------------------------------------------------
Mary A. Pfeifer, et vir October 25, 1994 320.000
- ------------------------------------------------------------------------------------------------------------------------------------
Max W. Warshaw, et ux October 25, 1994 320.000
- ------------------------------------------------------------------------------------------------------------------------------------
Joyce N. Lewis Trust October21, 1994 320.000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-3-PAGE 4
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Company County/State Lessor Lease Date Acres Permitted Encumbrances
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Vera E. Miller October 21, 1994 320.000
- ------------------------------------------------------------------------------------------------------------------------------------
Arla M. Peter October 21, 1994 160.000
- ------------------------------------------------------------------------------------------------------------------------------------
Marjorie M. Peter October 21, 1994 1280.000
- ------------------------------------------------------------------------------------------------------------------------------------
Bradley K. Schneider October 21, 1994 320.000
- ------------------------------------------------------------------------------------------------------------------------------------
Young Cattle Co. October 21, 1994 800.000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXHIBIT A-3-PAGE 5
<PAGE>
EXHIBIT B-1 *+
LATEX RESOURCES, INC. MAJOR PRODUCING LEASES
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BP0) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WILLIAMS, EMMA #1 L BALDWIN AL 1.00000000 0.79424852 SOUTH CARLTON
WILLIAMS, EMMA #2 L BALDWIN AL 1.00000000 0.79765295 SOUTH CARLTON
DAVIES, M.W. #15-12 L CLARKE AL 1.00000000 0.71251045 SOUTH CARLTON
ROBINSON, ED L #1 L CLARKE AL 1.00000000 0.81987500 SOUTH CARLTON
SCOTT #11-6 L CLARKE AL 1.00000000 0.77946338 SOUTH CARLTON
SCOTT #15-14 L CLARKE AL 1.00000000 0.74960000 SOUTH CARLTON
SCOTT #22-2 L CLARKE AL 1.00000000 0.76792208 SOUTH CARLTON
SCOTT #9-16 L CLARKE AL 1.00000000 0.77712322 SOUTH CARLTON
SCOTTIE A #1 L CLARKE AL 1.00000000 0.71252725 SOUTH CARLTON
SLAUGHTER 2-5 #1 L CLARKE AL 1.00000000 0.73503349 SOUTH CARLTON
BARBOUR, B.W. #16-15 L CLARKE/BALDWIN AL 1.00000000 0.71983263 SOUTH CARLTON
BARBOUR, B.W. #16-16 L CLARKE/BALDWIN AL 1.00000000 0.74668040 SOUTH CARLTON
BARBOUR, B.W. #16-3 L CLARKE/BALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
BARBOUR, B.W. ET AL #10-1 L CLARKE/BALDWIN AL 1.00000000 0.76041670 SOUTH CARLTON
BARBOUR, B.W. ET AL #10-2 L CLARKE/BALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
BARBOUR, B.W. ET AL #10-3 L CLARKE/BALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
BARBOUR, B.W. ET AL #16-10 L CLARKE/BALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
BARBOUR, B.W. ET AL #16-2 L CLARKE/BALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
BARBOUR, B.W. ET AL #16-6 L CLARKE/BALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
BARBOUR, B.W. ET AL #3-16 L CLARKE/BALDWIN AL 1.00000000 0.71495054 SOUTH CARLTON
OSWELL, C.O. #1 L CLARKE/BALDWlN AL 1.00000000 0.83358194 SOUTH CARLTON
OSWELL, C.O. #5 L CLARKE/BALDWIN AL 1.00000000 0.79900457 SOUTH CARLTON
OSWELL, C.O. #6 L CLARKE/BALDWIN AL 1.00000000 0.84915625 SOUTH CARLTON
OSWELL, C.O. #7 L CLARKE/BALDWIN AL 1.00000000 0.84915625 SOUTH CARLTON
OSWELL, E.T. #1 L CLARKE/BALDWIN AL 1.00000000 0.87933702 SOUTH CARLTON
OSWELL, E.T. #2 L CLARKE/BALDWIN AL 1.00000000 0.83920531 SOUTH CARLTON
OSWELL, E.T. #3 L CLARKE/BALDWIN AL 1.00000000 0.84915625 SOUTH CARLTON
OSWELL, W.H. & C.O. C L CLARKE/BALDWIN AL 1.00000000 0.83581993 SOUTH CARLTON
OSWELL, W.H. & C.O. #1&2 L CLARKE/BALDWIN AL 1.00000000 0.84885441 SOUTH CARLTON
OSWELL, W.H. & C.O. #3 L CLARKE/BALDWIN AL 1.00000000 0.90625110 SOUTH CARLTON
STATE OF ALABAMA L CLARKE/BALDWIN AL 1.00000000 0.82919950 SOUTH CARLTON
WALL 11-4 & 11-3 L CLARKE/BALDWIN AL 1.00000000 0.71251024 SOUTH CARLTON
WALL ET AL #2-11 L CLARKE/BALDWIN AL 1.00000000 0.76302080 SOUTH CARLTON
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WALL ET AL #2-13 L CLARKE/BALDWlN AL 1.00000000 0.71495054 SOUTH CARLTON
WALL ET AL #2-6 L CLARKE/BALDWIN AL 1.00000000 0.71287616 SOUTH CARLTON
WALL ET AL #3-14 L CLARKE/BALDWIN AL 1.00000000 0.71495054 SOUTH CARLTON
WALL ET AL #3-6 L CLARKE/BALDWIN AL 1.00000000 0.71495054 SOUTH CARLTON
WALL ET AL #3-7 L CLARKE/BALDWlN AL 1.00000000 0.71495054 SOUTH CARLTON
WALL ET AL #3-9 L CLARKE/BALDWIN AL 1.00000000 0.71495054 SOUTH CARLTON
WALL ET AL UNIT 3-8 #1 L CLARKE/BALDWIN AL 1.00000000 0.72327161 SOUTH CARLTON
WALL ET AL #3-1 L CLARKE/BALDWIN AL 1.00000000 0.71495054 SOUTH CARLTON
WALL J H 3-2 L CLARKE/BALDWIN AL 1.00000000 0.76302080 SOUTH CARLTON
WALL J.H. #D1 L CLARKE/BALDWIN AL 1.00000000 0.81987500 SOUTH CARLTON
WALL, J.H. #1-2-12 L CLARKE/BALDWIN AL 1.00000000 0.81987500 SOUTH CARLTON
WALL, J.H. #4 L CLARKE/BALDWIN AL 1.00000000 0.81987500 SOUTH CARLTON
WALL, J.H. #C1 L CLARKE/BALDWIN AL 1.00000000 0.81987500 SOUTH CARLTON
WALL, J.H. #E1 L CLARKE/BALDWIN AL 1.00000000 0.87249740 SOUTH CARLTON
WALL, J.H. EST. ET AL #3-10 L CLARKE/BALDWIN AL 1.00000000 0.80495054 SOUTH CARLTON
MCDONALD 36-13 C G LAMAR AL 0.65450000 0.47564090 CORINTH
MURPHY-RANDOLPH 1 G LAMAR AL 0.51406000 0.39400000 BLOOMING GROVE
GRACE 35-2 1C G PICKENS AL 0.70000000 0.55597770 CHICKEN SWAMP BRCH
GRACE 35-2 1L G PICKENS AL 0.70000000 0.55541600 CHICKEN SWAMP BRCH
SMITH 5-8 1 G PICKENS AL 0.89687320 0.64430640 0.89889000 0.68763000 LINEBARGER CREEK
FOWLER 7-1 G FAYETTE AL 0.35000000 0.28696000 BLUFF FIELD
BUSH 14-15 1 G PICKENS AL 0.28309000 0.24770000 COAL FIRE CREEK
CUNNINGHAM 16-7 1 G PICKENS AL 0.20132000 0.16215560 COAL FIRE CREEK
KELLY 15-16 1 G PICKENS AL 0.23847600 0.17701730 COAL FIRE CREEK
ROSEWOOD RESOURCES #10-1 L COLUMBIA AR 0.01973030 SPRINGHILL
ROSEWOOD RESOURCES #10-2 L COLUMBIA AR 0.01973030 SPRINGHILL
ROSEWOOD RESOURCES #10-3 L COLUMBIA AR 0.01973030 SPRINGHILL
ROSEWOOD RESOURCES #9-1 L COLUMBIA AR 0.02171880 SPRINGHILL
SMITH, A LAMAR #3 L COLUMBIA AR 0.02317887 SPRINGHILL
CROCKETT #1 L LAFAYETTE AR 0.08581460 0.06236564 ST. MARY
NW ARAPAHOE UNIT G CHEYENNE CO 0.03002000 0.02254000 ARAPAHOE
PEOC-NVG 41-23H G ROUTT CO 0.80719000 0.59413970 0.67352880 0.50192907 WOLF MOUNTAIN
</TABLE>
Page 2
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
KANSAS UNIVERSITY #1-14 L STANTON KS 0.50781130 0.37412260 SPARKS NE
YEGUA SUD HILL U 1 G ALLEN LA 0.12429000 0.09530000 OBERLIN
MANY 1 (BDRX) HET 1 RC SUE G ASCENSION LA 0.68199000 0.48610000 0.68126500 0.48537500 DARROW
MCCRANIE 1 DAV SUA G BOSSIER LA 0.27963000 0.22927000 IVAN
LONGENBAUGH #2 L CAL/JEFDAVIS LA 0.96881976 0.74896000 BON AIR
7100' RA SUA EL&L L CALCASIEU LA 1.00000000 0.81250000 PERKINS
EDGEWOOD L&L (WELLS) L CALCASIEU LA 1.00000000 0.83333333 PERKINS
EDGEWOOD L&L 30 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
EDGEWOOD L&L 9 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
EDGEWOOD L&L B L CALCASIEU LA 1.00000000 0.83333333 PERKINS
EDGEWOOD LAND & LOG 7 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
MATILDA GRAY STREAM J LSE L CALCASIEU LA 0.20000000 0.13680000 VINTON
MATILDA GRAY STREAM M LSE L CALCASIEU LA 0.20000000 0.13680000 VINTON
PE 550 RA SU EDGEWOOD 14 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 5800 RA SU; EDGEWOOD 24 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 5800 RA SU; EDGEWOOD 27 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 5800 RA SU; EDGEWOOD 29 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 5800 RA SU; EDGEWOOD 2A L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 6000 RA SU EDGEWOOD 26 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 6000 RA SU; EDGEWOOD 28 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 6700 RA SU EDGEWOOD 13 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 6700 RA SU; EDGEWOOD 10 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
PE 6700 RA SU; EDGEWOOD 8 L CALCASIEU LA 1.00000000 0.83333333 PERKINS
BYRD #2D/SLAY (TRAVIS PEAK) L CLAIBORNE LA 0.19752751 0.16828500 SUGAR CREEK
SHRINERS HOSPITAL #A1 L CLAIBORNE LA 0.04449880 0.03744275 LISBON
SLAY #1 L CLAIBORNE LA 0.19752600 0.17697828 SUGAR CREEK
SLAY #1D L CLAIBORNE LA 0.18019000 0.16828500 SUGAR CREEK
SIMONTON #1 L DESOTO LA 0.30750000 0.18484610 BETHANY
LONGSTREET
SPENCER-WALKER 1 G LINCOLN LA 0.22963000 0.18826000 HICO-KNOWLES
</TABLE>
Page 3
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NR1(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
CL&F 4 (TB)-PDP G TERREBONNE LA 0.03150000 0.02213660 TURTLE BAYOU
CL&F 6 (TB)-PDP G TERREBONNE LA 0.04796320 0.03145910 TURTLE BAYOU
CL&F 8 (TB)-PDP G TERREBONNE LA 0.04500000 0.02950000 TURTLE BAYOU
STANSBURY #2 L UNION LA 0.63262300 0.52924598 D' ARBONE
ALLEN B L 23-15 1 G CHICKASAW MS 0.68329000 0.49124990 BACON
CORLEY 6-1 1 G CHICKASAW MS 0.83964000 0.62069700 BALLS BRANCH
DALLAS 5-41 G CHICKASAW MS 0.91667000 0.75155620 BALLS BRANCH
FARNED L P 1L G CHICKASAW MS 0.62108120 0.46700640 BACON
FARNED L P 1U G CHICKASAW MS 0.62108120 0.46700640 BACON
RUDDER 294 G CLARKE MS 0.08000000 0.05314760 PEACHTREE CREEK
TEMPLE 29-3 #1/HEARN 293 G CLARKE MS 0.08000000 0.06750000 PEACHTREE FIELD
ERNEST ROBERTS GAS UNIT #1 L HINDS MS 0.96860250 0.73565830 BOLTON
SMACKOVER UNIT G JASPER MS 0.01584000 0.01299000 LAKE COMO
BRYAN COTTON VALLEY #5 L JONES MS 0.17767000 0.14566836 BRYAN
WALKER G.W. 6-7 G JONES MS 0.33333000 0.23112710 0.25000000 0.18500000 CAMP CREEK
ANDERSON 14-12 G LEE MS 1.00000000 0.76951400 NETTLETON N.
SCRUGGS 15-10 1 G LEE MS 1.00000000 0.75658480 SHANNON, E.
TALLY 31-16 G LEE MS 0.88697890 0.59343630 0.52780890 0.43487700 BALLS BRANCH
SMACKOVER "A" L WAYNE MS 0.00449631 CYPRESS CREEK
BRUMFIELD B #1,2,3,5,6,10,11,13,14. L YAZOO MS 1.00000000 0.76518750 TINSLEY
HENSLER 1-21 G SHERIDAN MT 0.41724000 0.34208650 COMERTOWN, S.
TIOGA-MADlSON UNIT G WILLIAMS ND 0.00000000 0.00841230 TIOGA
MUSKEGON 20 ST COM G EDDY NM 0.24688000 0.18506000 EMPIRE, S.
FEDERAL 6 COM 1 G LEA NM 0.07960000 0.06153000 QUAIL RIDGE
GILLIAM G LEA NM 0.50000000 0.37765860 CAUDILL, NE
JACKSON UNIT AI6O G LEA NM 0.08333000 0.06800000 JOHNSON RANCH
SHIPP 34-A1 & A2 L LEA NM 0.04147500 0.03033372 CASEY
STATE 17 1 G LEA NM 0.12500000 0.10250000 AUSTIN
STATE QE 13 1 G LEA NM 0.50000000 0.37480000 RANGER LAKE
</TABLE>
Page 4
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HOWLING WOMAN 1-23 G BLAINE OK 0.40000000 0.31599340 ELM GROVE
KOPF 1-11 G BLAINE OK 0.35000000 0.26250000 WATONGA CHICKASAW
NEUFELD 1-33 G BLAINE OK 0.65062000 .5296987(G) FAY, E.
TWIN WOMAN 1-32 G BLAINE OK 0.52724000 0.41888000 THOMAS, E.
FLANIGAN 2-30 G CADDO OK 0.32462000 0.24928000 0.27462000 0.22132000 UNION CITY
RICHARDS LEASE L CREEK OK 0.75000000 0.58437500 CUSHING
MULLINS 1-34 G CUSTER OK 0.06250000 0.05469000 BUTLER, W.
BOUCHER #1-05 L DEWEY OK 0.20695700 0.16297900 OAKWOOD N.
MORTON 2-35 G LOGAN OK 0.26904000 0.24158000 ICONIUM, NW
SMITH 1-34 G LOGAN OK 1.00000000 0.76260000 ICONIUM, NW
TROUTT-MARSH 2-2 G LOGAN OK 1.00000000 0.75225560 ICONIUM, NW
RIPPLE 1-12 G PITTSBURG OK 0.46289990 0.38675530 REAMS, NW
SARKEY FOUNDATION UN 1&2 G PITTSBURG OK 0.25000000 0.21875000 FEATHERSTON, NW
BOGGES 2-29 G ROGER MILLS OK 0.18750000 0.15820000 STRONG CITY, S.
BURNS ESTES 1-1 G ROGER MILLS OK 0.06250000 0.05078000 REYDON, W.
EUNICE 1-18 L ROGER MILLS OK 0.02710000 0.02100810 REYDON
HARP #1-36 L STEPHENS OK 0.20000000 0.16469620 COUNTY LINE
CHANCE-BLAHA UN 1 G BURLESON TX 0.30000000 0.20370000 GIDDINGS
MIKESKA UNIT I
RE-ENTRY/KRENE G BURLESON TX 0.30796610 0.24310000 GIDDINGS
PADGITT, JAMES T 3 L CROCKETT TX 0.08203125 0.06245140 PADGITT
ARCO 22 1 G ECTOR TX 0.99772000 0.68943620 ARBOL DE NADA
JOHNSON GRAYBURG SUA L ECTOR TX 0.03010000 0.02347700 JOHNSON
PHILLIPS-EDWARDS 1 G ECTOR TX 1.00000000 0.70275000 0.95000000 0.66761250 EDWARDS, W.
HURT 1 G FRIO TX 0.75000000 0.52706250 PEARSALL
COVINGTON 1-U G GRAYSON TX 0.85150000 0.69812380 PERRIN AFB N.
JONES JOHN 1L G HOWARD TX 0.94000000 0.67359020 KNOTT, SW
WYNN #1 L LIPSCOMB TX 0.41453100 0.30888063 STUART RANCH
BREEDLOVE E4 G MARTIN TX 0.25000000 0.17570000 0.18750000 0.13176563 BREEDLOVE, S.
GAULT, SARAH #1-5 L MIDLAND TX 0.33333300 0.24752400 PARSLEY
ST TRACT 904-L 3 G NUECES TX 0.24780400 0.18579500 0.20000000 0.19828706 G 0 M ST-904
ST TRACT 904-L I G NUECES TX 0.25000000 0.20000000 0.22466228 0.16712900 G 0 M ST-904
</TABLE>
Page 5
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
KING #2 L OCHILTREE TX 0.95020400 0.66776000 HANSFORD
WELLS GAS UNIT 1-T G HARRISON TX 0.20622000 0.16907000 WASKOM
SNYDER ST GAS UN 1 G REEVES TX 0.09375000 0.07183000 WORSHAM-BAYER
UNIVERSITY 10-18-1U L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 18-29 02 L WARD TX 0.12577820 0.10014784 WARWINK SOUTH
UNIVERSITY 18-29 03 L WARD TX 0.15624510 0.10031409 WARWINK SOUTH
UNIVERSITY 18-29 O5 L WARD TX 0.12577820 0.06408442 WARWINK SOUTH
UNIVERSITY 18-29 07 L WARD TX 0.17126040 0.10137038 WARWINK SOUTH
UNIVERSITY 18-30 02 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
ALLEN J H 2 G WOOD TX 0.19166660 0.61414377 CROW
MEALS, NANCY SANDERSON ET AL L YOAKUM TX 0.3958335 0.30425000 SAN ANDRES
BLUE FOREST UNIT G SWEETWATER WY 0.00205000 0.00162410 BLUE FOREST
</TABLE>
* NET REVENUE INTERESTS SHOWN ARE NET OF THE OVERRIDING ROYALTY INTEREST PAYABLE
TO LaSALLE STREET NATURAL RESOURCES CORPORATION PURSUANT TO THE ASSIGNMENT AND
CONVEYANCE OF OVERRIDING ROYALTY INTEREST DATED MARCH 31, 1995.
+ALL OIL AND GAS INTERESTS SET FORTH ON THIS EXHIBIT ARE SUBJECT TO THE MORTGAGE
AND SECURITY INTEREST GRANTED BANK OF A AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION PURSUANT TO THAT CERTAIN CREDIT AGREEMENT DATED MARCH 31, 1995.
ALL OIL AND GAS INTERESTS SET FORTH ON THIS EXHIBIT ARE SUBJECT TO THE PURCHASE
AND SALE AGREEMENT DATED MARCH 30, 1996 BETWEEN ENRON RESERVE ACQUISITION CORP.
(SELLER), ENRON CAPITAL & TRADE RESOURCES CORP. (ADDITIONAL PARTY), LATEXIGOC
ACQUISITION INC. (BUYER) AND LATEX RESOURCES, INC. (ADDITIONAL PARTY).
Page 6
<PAGE>
EXHIBIT B-2'+
LATEX RESOURCES, INC. MAJOR NON-PRODUCING LEASES
<TABLE>
<CAPTION>
WELL NAME Co. COUNTY ST WI(BPO) NRI(BPO) WI(APO) NRI(APO) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WILLIAMS, EMMA #1 L BALDWIN AL 1.00000000 0.79424852 SOUTH CARLTON
SCOTT #11-6 L CLARKE AL 1.000OO000 0.77946338 SOUTH CARLTON
SCOTT #9-9 L CLARKE AL 1.00000000 0.77643384 SOUTH CARLTON
OSWELL, C.O. #6 L CLARKE/BALDWIN AL 1.00000000 0.84915625 SOUTH CARLTON
S.CARLTON-LOC 1 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 10 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 11 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 12 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 13 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 14 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 15 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 16 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 17 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 18 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 19 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 2 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 20 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 21 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 22 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 24 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 25 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 26 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 27 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 28 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 29 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 3 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 4 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 5 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 6 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 7 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 8 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
S.CARLTON-LOC 9 L CLARKE/BALDWIN AL 1.00000000 0.77660000 SOUTH CARLTON
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO) NRI(APO) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
STATE OF ALABAMA L CLARKE/BALDWIN AL 1.00000000 0.82919950 SOUTH CARLTON
WALL ET AL UNIT 3-8 #1 L CLARKE/BALDWIN AL 1.00000000 0.72327161 SOUTH CARLTON
PEOC-NVG 41-23H G ROUTT CO 0.80719000 0.59413970 0.67352880 0.50192907 WOLF MOUNTAIN
L HA RA SUA, PLACID #1 G BOSSIER LA 0.17736000 0.11632950 CARTERVILLE N.
CLARK RA SU A G CAMERON LA 0.03031000 0.02363280 CREOLE N.
GAY UNION CORP #37BP1 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #37BP2 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #37BP3 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #37BP4 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #37BP5 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #51 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
BRUMFIELD B-22 (PUD) L YAZOO MS 1.00000000 0.76518750 TINSLEY
BRUMFIELD B-23 (POSS-POU) L YAZOO MS 1.00000000 0.76518750 TINSLEY
GILLIAM 1 G LEA NM 0.50000000 0.37765860 CAUDILL, NE
HOWLING WOMAN 1-23 G BLAINE OK 0.40000000 0.31599340 ELM GROVE
FLANIGAN 2-30 G CADDO OK 0.32462000 0.24928000 0.27462000 0.22132000 UNION CITY
MILLIE 2-20 (RECOMPLETE) G DEWEY OK 0.75000000 0.65625000 PUTNAM
BLACK 1-3 G LOGAN OK 1.00000000 0.86133000 ICONIUM, NW
SMITH 1-34 G LOGAN OK 1.00000000 0.76260000 ICONIUM, NW
COVINGTON 1 G GRAYSON TX 0.85150000 0.69812380 PERRIN AFB N.
GAULT, SARAH #1-5 L MIDLAND TX 0.33333300 0.24752400 PARSLEY
GAULT, SARAH #34 L MIDLAND TX 0.50000000 0.36666000 PARSLEY
UNIVERSITY 10-18 A-6 L WARD TX 0.10000000 0.07800000 WAR-WINK SOUTH
UNIVERSITY 10-18 A-7 L WARD TX 0.10000000 0.07800000 WAR-WINK SOUTH
UNIVERSITY 10-18 B-8 L WARD TX 0.10000000 0.07800000 WAR-WINK SOUTH
UNIVERSITY 10-18 B-9 L WARD TX 0.10000000 0.07800000 WAR-WINK SOUTH
UNIVERSITY 11-18 #A-4 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 11-18 #B-3 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 11-18 #B-4 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 11-18 #B-5 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 18-29 2 L WARD TX 0.12577820 0.10014784 WAR-WINK SOUTH
UNIVERSITY 18-29 5 L WARD TX 0.12577820 0.06408442 WAR-WINK SOUTH
UNIVERSITY 18-29 7 L WARD TX 0.17126040 0.10137038 WAR-WINK SOUTH
UNIVERSITY 22-18 #A-3 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 23-18 #A-3 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 23-48 #A-4 WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
</TABLE>
Page 2
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO) NRI(APO) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C><C> <C> <C> <C> <C>
UNIVERSITY 24-18 #2 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 9-18 A-3 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
UNIVERSITY 9-18 A-4 L WARD TX 0.08333330 0.06500000 WAR-WINK SOUTH
</TABLE>
*NET REVENUE INTERESTS SHOWN ARE NET OF THE OVERRIDING ROYALTY INTEREST PAYABLE
TO LaSALLE STREET NATURAL RESOURCES CORPORATION PUR TO THE ASSIGNMENT AND
CONVEYANCE OF OVERRIDING ROYALTY INTEREST DATED MARCH 31, 1995.
+ALL OIL AND GAS INTERESTS SET FORTH ON THIS EXHIBIT ARE SUBJECT TO THE MORTGAGE
AND SECURITY INTEREST GRANTED BANK AMERICA NATIONAL THUST AND SAVINGS
ASSOCIATION PURSUANT TO THAT CERTAIN CREDIT AGREEMENT DATED MARCH 31, 1995.
ALL OIL AND GAS INTERESTS SET FORTH ON THIS EXHIBIT ARE SUBJECT TO THE PURCHASE
AND SALE AGREEMENT DATED MARCH 30, 1996 BETWEEN ENRON
RESERVE ACQUISITION CORP. (SELLER), ENRON CAPITAL & TRADE RESOURCES CORP.
(ADDITIONAL PARTY), LATEX/GOC
ACQUISITION INC. (BUYER) AND LATEX RESOURCES, INC. (ADDITIONAL PARTY).
Page 3
<PAGE>
EXHIBIT B-3 *+
-----------
LATEX RESOURCES, INC. MISCELLANEOUS INTERESTS
---------------------------------------------
MINERAL/ROYALTY INTERESTS OWNED
-------------------------------
STATE OF ALABAMA
COUNTIES OF CLARKE and BALDWIN
ALL IN TOWNSHIP 3 NORTH, RANGE 2 EAST
Section 11: SW/4 lying south and west of Alabama River
Section 14: W/2 lying south and west of Alabama River
Section 15: SE/4 NE/4 and SE/4 lying east of Alabama River
Section 11: NW/4 SW/4 lying south and west of Alabama River
Section 14: NW/4 NW/4
Section 15: NE/4 NE/4
Section 14: NE/4 NW/4
Section 15: SW/4 NE/4
Section 10: 5E/4 5W/4 lying south and east of Alabama river limited to 7,500'
Section 10: SE/4 SE/4 limited to 7,500'
Section 15: SE/4 NW/4, limited to 7,500'
Section 10: SW/4 SE/4, limited to 7,500'
Section 10: NW/4 SE/4, limited to 7,500'
Section 10: NE/4 SE/4, limited to 7,500'
Section 15: NW/4 NE/4, limited to 7,500'
Section 15: NE/4 NW/4, limited to 7,500'
Section 11: SW/4 SW/4
Section l0: SW/4 SW/4
STATE OF LOUISIANA
PARISH OF ST. CHARLES
(Surface and mineral ownership)
Lots No. 112 and 114 of the Subdivision of the Ranson Tract, situated on the
"Coteau de France", between Bayou Saut d'Ours and Bayou Des Allemands, in St
Charles Parish, Louisiana in township 14 South, Range 20 East, Southeastern Land
District of Louisiana and West of the Mississippi river
STATE OF OKLAHOMA
COUNTY OF CUSTER
S/2 and SE/4 NE/4 of Section 5, Township 14 North, Range 19 West
l
<PAGE>
S/2 SE/4 and SE/4 SW/4 Section 4, Township 14 North, Range 19 West
S/2 NW/4 Section 4, Township 14 North, Range 19 West
Lots l and 2 and N/2 SW/4 of Section 4, Township 14 North, Range 19 West
Lots 3 and 4 Section 4, Township 14 North, Range 19 West
S/2 Section 33, Township 15 North, Range 19 West
SW/4 NE/4 Section 5, Township 14 North, Range 19 West
STATE OF ARKANSAS
COUNTY OF MILLER
Section 30, Township 19 South, Range 17 West
Section 8, Township 20 South, Range 28 West
STATE OF ARKANSAS
COUNTY OF COLUMBIA
SW/4 of Section 3, Township 18 South Range 23 West, from the surface to a depth
of 5,080 feet
East 3/4, only insofar as same is included within the designated spacing unit
established pursuant to Arkansas Oil and Gas Commission Order No.11-89, section
9, Township 20 South, Range 22 West
All of interest in and to that certain spacing unit established for the Rosewood
Resources Inc. #1-10, said unit formed in compliance with Arkansas Oil and Gas
Commission Reference No. 204-87, as amended by Commission Reference No.11-89,
and encompassing the West 3/4 of fractional Section 10, Township 20 South Range
22 West, limited to include only that strata and/or zones from the surface of
the earth down to and including a sub-surface depth of 11,076 feet, being 100
feet below total depth drilled in said well.
STATE OF TEXAS
COUNTY OF HANSFORD
Section 234, Township 2, GH&H survey, Hansford County, Texas containing 640.0
acres more or less. (160 acre net)
STATE OF COLORADO
COUNTY OF MORGAN
5W/4 and S/2 NW/4 Section 23, and N/2 NW/4 Section 26 all in Township l North,
Range 58 West, 6th P.M.
STATE OF MISSISSIPPI
COUNTY OF ADAMS
Beginning at a point on the common boundary line between Sandy Creek Plantation,
formerly owned by National Gasoline Company of Louisiana, and Magnolia Hills
Plantation, formerly owned by Ella G. Lees, said point being N 31 degrees 36'
00" W 1298.81 ft from the intersection of Cannonsburg Road with the
2
<PAGE>
north right-of-way line of U.S. Highway No. 84; run thence N 71 degrees 30'50"
200.00 ft; thence East 363.91 ft; thence North 1070.00 ft; thence East 305.81
ft; thence North 1088.20 ft; thence East 1771.0 ft to the northwest corner of
Possum Farm, now or formerly owned by Mrs. Alice M. Ratcliffe; thence easterly
with the common boundary line between said Possum Farm and said Magnolia Hills
Plantation 1181.28 ft; thence South 804.53 ft; thence East 280.00 ft; thence
South 440.00 ft; thence West 480.00 ft; thence South 1010.00 ft; thence West
280.00 ft; thence South 660.00 ft; thence East 270.00 ft; thence South 888.09 ft
to a point on the north right-of-way line of said U.S. Highway No 84; thence
westerly with said north right-of-way line and the north boundary line of
Mississippi Central Railroad property 2966.27 ft to the intersection of the
common boundary line between said Sandy Creek Plantation and said Magnolia Hills
Plantations with said north right-of-way line of U.S. Highway No. 84; thence
northwesterly with the common boundary line between said Sandy Creek Plantation
and said Magnolia Hills Plantation 1367.89 ft to point of beginning, containing
241 acres of land, lying in Township 7 North, Range l West.
STATE OF LOUISIANA
PARISH OF CONCORDIA
DESCRIPTION OF PORTION OF BLACKHAWK PLANTATION, 100 ACRE PEABODY LEASE,
SITUATED IN SECTIONS 39,40,41,42 AND 43 T2N,R8E as further described:
From the most westerly corner of Section 43, T2N,R8E, Concordia Parish,
Louisiana go northeasterly along the line between Sections 43 and 64 for 852.0
degrees; thence east for 3758.41' to the point of beginning being the northwest
comer of the within described tract and the northeast corner of the T.J. Guido
Lease.
Thence from said point of beginning go south along said Guido Lease for
1675.38'; thence east for 2600.00'; thence north for 1675.38'; thence west for
2600.00' to the point of beginning. Said with described tract containing 100
acres.
From the most northerly corner of Section 42, T2N, R8E, Concordia Parish,
Louisiana go southeasterly along the line between Sections 41 and 42 for 33.504'
to the point of beginning, being a point on the west boundary of within
described tract. Thence from said point of beginning, go north for 290.20';
thence north 28 deg. 39 minutes east for l629.89'; thence north 46 deg. 30
minutes east for 2156.46'; to the northwest corner of within described tract;
thence east for 4220.58'; thence south for 3793.19'; thence west for 1995.53';
thence south for 796.83'; thence west for 2115.76'; thence south for 850.00';
thence west for 1830.00'; thence north for 850.00'; thence west for 625.00'
thence north for 1385.18' to the point of beginning. The within described tract
containing 625.0 acres and being situated in Sections
34,35,36,37,38,39,40,41,42,43 and accretions thereto.
DESCRIPTION OF A 160 ACRE PEABODY LEASE- BLACKHAWK PLANTATION SITUATED IN
SECTIONS 44,45,46,47,48 AND 49, T2N-R8E, CONCORDIA PARISH, LOUISIANA
From the most southerly corner of Section 49, T2N-R8E, go Northeasterly along
the line between Sections 49 and 50 for 5781.15 feet to the point of beginning
being a point on the south boundary of with described tract
JEN RA SU H in accretions to Township North, Range 9 East, as more particularly
described and shown on the map or plat attached as Exhibit "A" to Louisiana
Office of Conservation Order No. 674-A, effective on
3
<PAGE>
and after September 19, 1979, a certified copy of which is filed of record under
Register No. 144911 and recorded in C.O.B. 135 at page 732 containing 40.0
acres, more or less, and being the drilling and production unit for the Jenkins
Sand Reservoir "A", Roseland Field for the ADCO PRODUCING COMPANY, INC. SHARP
EYE WIPER NO 2 WELL, in accretions to Township 4 North, Range 9 East.
STATE OF MISSISSIPPI
COUNTY OF FRANKLIN
SW/4 NW/4 of Section 29, Township 6 North, Range 2 East, containing 40 acres,
more or less.
STATE OF MISSISSIPPI
COUNTY OF JEFFERSON DAVIS
W/4 of Section 30, Township 8 North, Range 19 West and E 3/4 Section 25,
Township 8 North, Range 20 West.
Section 31, Township 8 North, Range 19 West.
STATE OF MISSISSIPPI
COUNTY OF LAWRENCE
Section 31, Township 6 North, Range 1l East containing 640 acres.
STATE OF MISSISSIPPI
COUNTY OF LINCOLN
Begin at the southeast corner of Section 2, Township 5 North, Range 6 East,
thence west along the south line of Section 2 for 2112; to the point of
beginning, thence north and parallel to the east line of Section 2 for 2640'
east and parallel with south line of Sections 2 and l for 3520', thence south
and parallel to west line of Sections l and 12 for 3960', thence west and
parallel with the north line of Sections 12 and 1l for 3520', thence north and
parallel with the east line of Section 1l for l320' to the point of beginning,
containing 320 acres.
STATE OF LOUISIANA
PARISH OF LIVINGSTON
160 acres located Section 29, Township 6 South, Range 5 East
STATE OF MISSISSIPPI
COUNTY OF MADISON
SE/4 NW/4 Section 1, Township 8 North, Range l West
SE/4 NE/4 Section 2, Township 8 North, Range l West
NW/4 NW/4 Section 1, Township 8 North, Range l West
NE/4 SW/4 Section 1, Township 8 North, Range l West
4
<PAGE>
SW/4 NE/4 Section 2, Township 8 North, Range 1 West
SW/4 NW/4 Section 1, Township 8 North, Range 1 West
NW/4 NE/4 Section 1, Township 8 North, Range 1 West
SW/4 NE/44 Section 1, Township 8 North, Range 1 West
NW/4 SE/4 Section 2, Township 8 North, Range 1 West
E/2 NE/4 Section 35, Township 9 North, Range 1 West
SW/4 SE/4 Section 1, Township 8 North, Range 1 West
NE/4 SE/4 Section 26, Township 9 North, Range 1 West
NE/4 SE/4 Section 35, Township 9 North, Range 1 West
NW/4 SE/4 Section 26, Township 9 North, Range 1 West
E/2 NE/4 Section 35, Township 9 North, Range 1 West
SW/4 NE/4 Section 26, Township 9 North, Range 1 West
SE/4 SE/4 Section 26, Township 9 North, Range 1 West
Section 1, Township 8 North, Range 1 West
STATE OF MISSISSIPPI
COUNTIES OF SMITH, JONES and JASPER
Unit is described in that certain Unitization Agreement- dated June 2, l956,
Oil and Gas Book 129, Page 1 in the office of the Chancery Clerk of the Second
Judicial District of Jones County, Mississippi; and recorded Oil and Gas Book
90, Page 1 in the office of the Chancery Clerk of Smith County, Mississippi; and
recorded in Oil and Gas Book 25, Page 103 in the office of the Chancery Clerk
of the Second Judicial District of Jasper County, Mississippi
STATE OF MISSISSIPPI
COUNTY OF WALTHALL
Section 34, Township 4 North, Range 11 East, containing 640 acres.
NW/4 SW/4 Section 3, Township 3 North, Range 11 East
NW/4 NW/4 of Section 3, Township 3 North, Range 11 East
STATE OF MISSISSIPPI
COUNTY OF WILKINSON
From the corner common to Sections 41, 44 and 47, Township 2 North, Range 4
West, Wilkinson County, Mississippi, go easterly along the south boundary of
Section 47 for 380 feet; thence southerly at right angles for 852 feet to a
point, thence North 40 degrees 00' west for 330 feet to the point of beginning.
Thence from said point of beginning, go north 50 degrees 00' east for 330' to
the most northerly corner of within described tract; thence south 40 degrees
east for 1112.17'; thence north 50 degrees 00', west for 1445.'; thence north 40
degrees 00', west for 1810.0' thence north 50 degrees 00', east for 330.0 feet
to the point of beginning. Said within described tract contain 40.0 acres.
40 acres in Section 41, Township2 North, Range 4 West
5
<PAGE>
40 acres located in Sections 38 and 39, Township 2 North, Range 4 West
Section 39, Township 2 North, Range 4 West
From the southwest corner of Section 35, Township 4 North, Range 3 West,
Wilkinson County, Mississippi, go northeasterly along the line between Sections
35 and 36 for 2,003'; thence northwesterly at right angles for 1,425' to the
point of beginning, being the northwest corner of within described tract. Thence
from said point of beginning, go east for 1,810.00'; thence south for 1,445.00';
thence west for 697.83'; thence north for 785.00'; thence west for 1,112.17';
thence north for 660.00' to point of beginning. The above described tract is
situated in Sections 35 and 36, T4N, R3W and contains 40 acres.
STATE OF NORTH DAKOTA
COUNTY OF MCKENZIE
All of the right, title and interest owned by Calto Oil Co. in and to the oil,
gas and other minerals in and under and that might be produced from that certain
tract of 160 acres more or less, being the NW/4 of Section 13, 152N, 96W,
McKenzie Co., N>D>, more particularly set our in Mineral Deed dated April 24,
1951 from Walter Sorenson et ux to Calto oil Co. rec in Bk. 57 Page 77, of the
deed Records of said County and State; conveying and undivided 1/4 interest in
said tract; and
Mineral Deed from Ole m> Jorgenson et ux to Calto Oil Company dated April
16, 1951, rec in Book 57 Page 19, Deed Records of McKenzie County, N.D.,
conveying and undivided 1/4 mineral interest under 160 acres described as the
NE/4 of Section 23-152N-96W, subject to Mineral Deed executed by Calto Oil Co.
in favor of G.W. Gulmon, dated Dec. 13, 1965 effective Jan. 1, 1966, conveying
and undivided 1/16th of 1/4th interest in said lands, rec. in Bk 112, Page 197
of the records of said County and State; and
Assignment of Overriding Royalty conveying to Calto oil Co. a 1/8th of 7/8th
ORRI in the following oil, gas and mineral leases:
Oil Gas & Mineral Lease dated Jan. 24, 1962, executed by Louisiana Land and
Exploration Cok. as Lessor to Skelly Oil Cok. as Lessee, covering NE/4 of
Section 23-152N-96W, rec. Book 104, Page 123, Misc Rec.
Oil Gas & Mineral Lease dated September 5, 1951 from Ole N. Jorgenson et ux
to Skelly Oil Co., covering NE/4 Section 23-152N-96W, rec Book 101, Page
217, Misc Rec.
said assignment executed August 21, 1962, rec Book 106, Page 311, Misc Rec.
Section 13, Township 152 North, Range 96 West, McKenzie County, North Dakota
STATE OF NORTH DAKOTA
COUNTY OF WILLIAMS
S/2 S/2 Section 32-156N-95W, 160 acres
SE/4 SW/4 Section 34-156N-96W
W/2 NE/4 Section 34-156N-96W
6
<PAGE>
E/2 NE/4 and SE/4 Section 34-156N-96W, 240 acres
SE/4 SW/4 Section 34-156N-96W
W/2 NE/4 Section 34-156N-96W
E/2 SE/4 Section 27 and E/2 NE/4 and SE/4 Section 34-156N-96W, 320 acres
SW/4 SW/4 Section 32-156N-95W, 40 acres
SW/4 NE/4 and S/2 NW/4 and W/2 SW/4 Section 13-157N-95W
NW/4 NW/4 Section 34-157N-95W
E/2 SW/4 and W/4 SE/4 Section 13-157N-95W
STATE OF TEXAS
COUNTIES OF CHEROKEE and RUSK
685 acres, more or less, out of the Wade H. Walters Survey, A-888 Cherokee
County, A-809 Rusk County, being more particularly described in the Pooling
Designation recorded in Rusk County in Vol 1608, Page 167-191 of the Land
Records and in Cherokee County in Vol 1072, Page 559-583 of the Records of said
County, State of Texas
STATE OF TEXAS
COUNTY OF FREESTONE
Basin Operating Co- Carpenter Gas Unit NO.5 consisting of 690.5 acres of land
situated in Freestone County, Texas, described in that certain pooling
Declaration, dated May 17, 1963, of record in Vol 330, Page 189, of the Deed
Records of Freestone County, Texas which Declaration pooled and combined the
leases and mineral interest described therein and the lands covered by said
leases and the lands in and under which said mineral interest exist
STATE OF TEXAS
COUNTY OF GREGG
79.09 acres out of the John Ruddle Survey, less 27.75 acres off the West side,
Gregg County, Texas
615.56 acres situated in the William Robinson Survey, Gregg County, Texas being
more particularly described in that certain Unit Designation dated September
4,1953, executed by S.L. Florsheim, Jr., R.W, Ketelson, H.S, Moss, L.W. Powell,
Roy Powell, Austin E. Stewart, Stanolind Oil & Gas Company, Continental Oil
Company, tide Water Associated Oil Co. and Arkansas Fuel Oil Corporation and
recorded in Vol 421, at Pages 444-456 of the Deed Records of Gregg County,
Texas, to which instrument and the record thereof reference is here made for a
more particular description.
South 2.89 acre of the North 3.89 acres of 11.36 acres of land, situated in
Gregg County, Texas, being a part of the Mary Van Winkle Survey, said 3.89 acre
tract described as follows: Beginning at a stake, the Northwestern corner of the
11.36 acre tract described in J.M. Johnson lease, said stake being at the
intersection of the East or Southeast boundary line of the I&GN Railway right-
of-way with the East boundary line of said 11.36 acre tract describe in said
lease from J.M. Johnson; THENCE south along the east boundary line of said 11.36
acres tract 421 feet to stake for southeast corner of this triangular shaped
tract; THENCE west parallel with the south boundary line of said 11.36 acre
tract to a point, a stake in
7
<PAGE>
I&GN Railway right-of-way; THENCE North 40 deg east with said I&GN Railway
right-of-way which line is also the west line of said ii .36 acre tract to the
place of beginning containing 3.89 acres of land.
688.07 acres out of William Robinson Survey, A-177, D Sanchez Survey, A-186
Gregg County, Texas. East 18.3 acres of a certain 25 acre tract, more or less,
situated in the William Robinson Survey.
96 acres in a tract being part of the William Robinson survey.
East 60 acres out of 126 acres being a part of the William Robinson Survey.
92.5 acres being a part of the William Robinson Survey.
150.00 acres in the Wm. Robinson Survey A-177 being a part of the 35.07 acres
tract described as Tract No. 2 in that certain quit-claim deed dated 1-24-86
from Velma Lee Craig et al to Stanolin Oil & Gas Co. et al recorded Vol 527 Page
194, Gregg County, Texas
50 acres in the William Robinson Survey, Gregg County, Texas
6.18 acres more or less, in the Wm. Robinson Survey, being Lot 2 of the
partition between Young-Lee, et al, Gregg County, Texas
1.45 acres out of the W.H. Castleberry Survey, Gregg County, Texas
North 22.5 acres of a certain 45 acre tract, more or less, situated in the
Delores Sanchez Survey.
STATE OF TEXAS
COUNTY OF HOPKINS
The Hinton Production Company Bert Davis Gas Unit as described in Corrected
Declaration of Pooled Unit of Record in Volume 162, Page 95, Oil and Gas Lease
Records of Hopkins, County, Texas, composed of 320 acres.
STATE OF TEXAS
COUNTY OF LEON
The E.B. Andrews, Jr. 80 acres Oil Unit #1, William Johnson Survey, Abstract
No. 11, Leon County, Texas more fully described in Oil Unit Pooling Agreement
and Designation executed by Texas Petroleum Expl. Co., et al , a counterpart of
which dated February 23, 1967, was filed fro record January 25, 1968 and
recorded in Vol. 348 Page 401 deed records of Leon County, Texas.
644.74 acre unit as described in Exhibit "A" of that certain Declaration of
Pooling dated effective as of the 25th day of April, 1975, recorded in Volume
404, Page 698, of the Deed Records of Leon County, Texas.
8
<PAGE>
STATE OF TEXAS
COUNTY OF HENDERSON
100 acres, more or less, a part of the South Adrian Anglin Survey, Patent No.
155, described as follows: BEGINNING at the NE corner of 320 acre survey deeded
to Martha Bond by M.E. O'Quinn, to which deed reference is here made for a more
full description to-wit a Red Oak 18 in NW 19 vrs do 8 in. S 20 W 16 Vrs; THENCE
south 130 varas, branch bottom at 751 1/2 vrs; Black Oak stake a R 0 l2 in N 37
W 3 vrs; P O vrs 9 in 75 E l vrs; THENCE west 335 vrs. branch, at 430 vrs. fork
of same branch at 751 1/2 vrs., stake on bank of same branch a H 14 in. N 88 E.
12 vrs; R.O. 9 in N 11 1/2 vrs; THENCE North 13 vrs. branch, at 75 vrs fine
spring branch at 751 1/2 vrs; a B.J 6 in S 47 W 71/10 vrs, do 5 in N47 E 7/10
vrs; THENCE East 751 1/2 vrs to the BEGINNING.
46.83 acres of land out of the Jose M. Y'Barto Survey, Abstract No. 845, said
tract designated as Tract 58 in Travis Peak Gas Unit #7, recorded in Vol 473 Pg
310 Deed Records.
60 acres in the Santo Sylvester Survey, Abstract No. 694 in Henderson County,
Texas, said tract is designated as Tract No. 56, in Declaration of Travis Peak
Gas Unit No. 8 recorded in Vol 186 Page 306
40.05 acres of land, being the west 40.05 acres of the J.N. Leopard 86.88 acre
tract, out of the Jose M. Y'Barbo Survey, Abstract No. 864, described, and
designated as Tract No. 18 in Exhibit B of that certain instrument dated
November 1, 1954, designated as Unit Agreement for Rodessa Lime Pool of Tri-
Cities Field, Henderson County, Texas, executed by and between Lone Star
Producing Company, a Texas corporation, as "Operator" and W.B. Hinton, et al,
"Subscribers", a counterpart of which said agreement is recorded in Volume 434,
at Page 1.
STATE OF TEXAS
COUNTY OF GUADALUPE
85.5 acres of land, more or less, being a part of the Joel W. Robinson 3/4
League Grand and described by metes and bounds.
53 acres being a part of the Robinson Survey and beginning at the most southerly
corner of a survey of 320 acres granted to James M. Bell; thence north 50
degrees east with said Bell's southeast line E 446 varas to stake; thence south
40 degrees east 671 varas to Alexander's NE line; thence south 50 degrees west
446 varas to Carroll Picken's east corner; thence north 40 degrees west 676
varas to place of beginning, Guadalupe County, Texas.
STATE OF TEXAS
COUNTY OF LEON
The E. B. Andrews, Jr. 80 Acres oil Unit #2, William Johnson Survey, Abstract
No. 11, Leon County, Texas more fully described in Oil Unit Pooling Agreement
and Designation executed by Texas Petroleum Expl. Co., et al, a counterpart of
which dated February 23, 1967, was filed for record January 25, 1968 and
recorded in Vol 348, Page 401 deed records of Leon County, Texas.
9
<PAGE>
644.74 acre unit as described in Exhibit "A" of that certain Declaration of
Pooling dated effective as of the 25th date of April, l975, recorded in Volume
404, page 698, of the Deed Records of Leon County, Texas.
STATE OF TEXAS
COUNTY OF PECOS
The Northwest Quarter (NW/4) of Section 106, Block 10, H&GN Ry. Co., Survey,
limited to production below a depth of 2,000 feet below the surface, Pecos
County, Texas.
STATE OF TEXAS
COUNTY OF RAINS
652.977 acres of land, being part of the Isaac Kneeland Survey, Abstract
no. 131, and the E. N. Stringer Survey, Abstract No. 224, all in Rains County,
Texas, being more fully described in the Unit Declaration for the McMoRan
Exploration Co., et al, Feeney-Hill Gas Unit No. 1, a counterpart of which is
recorded in Volume 232, Page 131 of the Deed Records of Rains County, Texas,
which such Unit Declaration has been amended by First Amendment, a counterpart
of which is recorded in Volume 236 Page 710 of said Deed Records, and Second
Amendment, a counterpart of which is recorded in Volume 248, Page 746 of said
Deed Recorded, and including 1l tracts (there being 6 tracts within Unit Tract
11).
Prairie Producing Company, et al C. L. Huddleston, et al Gas Unit No.1
comprising 416.91 acres being more particularly described in Unit Designation
under File Number 3037 in Volume 228, Page 269 of the Rains County Records to
which further reference is made for all purposes.
STATE OF TEXAS
COUNTY OF SCURRY
E/2 of Sec. 394, Blk. 97, H&TC RR Co. Survey, Scurry County, Texas
STATE OF TEXAS
COUNTY OF SMITH
Declaration of Pooled Unit dated June 18, 1982, recorded in Vol. 1997, Page 296
and Vol. 2012, Page 90, Deed Records of Smith County, Texas and the Amendment to
the Declaration of Pooled Unit dated February 3, 1983, recorded Vol. 2078, page
81, Survey A-13, Jose A. Caro Survey, A4; James Jordan Survey, A-12 and M.G.
Henriquez Survey A-11.
10
<PAGE>
STATE OF TEXAS
COUNTY OF WARD
Southwest half (except the Northwest quarter of Southwest half) of Section 28,
Block B-29, PSL, said land also being described as the Southeast 240 acres of
the Southwest half of said Section 28; and Southeast 120 acres of the Southwest
half of Section 28, Block B-29, PSL, Ward County, Texas.
STATE OF TEXAS
COUNTY OF WOOD
Tract No.1 - A 26.5 acre tract of land out of the W. W. Grice tract of land
situated in the Hazard Anderson Survey No.10, Wood County, Texas, and described
as follows: Beginning at the Southeast corner of said 26.5 acre tract; then S
89 deg 48' W. 474.02 varas to the Southwest corner of said 26.5 .acre tract;
thence N 0 deg. 37' W. 315.48 varas to the Northeast corner of said 26.5 acre
tract, being also the Southwest corner of the W. W. Grice 29.19 acre tract;
thence N 89 deg. 48' E 474.39 varas along the common boundary line between said
26.5 acre tract and the W. W. Grice 39.19 acre tract to the Northeast corner of
said 26.5 acre tract; being also the Southeast corner of said 26.5 acre tract;
being also the Southeast corner of W. W. Grice 39.19 acre tract; thence S 0 deg.
33' E 13.19 varas to a point on the east line of the 26.5 acre tract; being also
the Northwest corner of the W. W. Grice 34.82 acre tract; thence continuing
along the east line of the 26.5 acre tract S - deg. 33' E 302.29 varas to the
point of beginning.
Tract No.2 - The West 13.5 acres of a 34.82 acre tract out of the W. W. Grice
tract of land situated in the Hazard Anderson Survey, Abstract No.10, Wood
County, Texas, said 34.82 acre tract being described as follows: beginning at
the Southeast corner of the W. W. Grice 26.5 acre tract; thence S 0 deg. 33' E
99.42 varas to the Southwest corner of said 34.82 acre tract; thence N 89 deg.
45' E 475 varas to the Southeast corner of said 34.82 acre tract; thence N 0
deg. 33' W 412.83 varas to the Northeast corner of said 34.82 acre tract; thence
W. 475 varas to a point in the East line of the W. W. Grice 26.5 acre tract
being 13.19 varas S 0 deg. 33' from the northeast corner of said W. W. Grice
26.5 acre tract; thence S 0 deg. 33' E along the east line of the W. W. Grice
26.5 acre tract to the point of beginning.
Second Subclarksville Formation Unit as described in that certain instrument
recorded in Vol 561 at Page 471 of the records of Wood County, Texas.
Woodbine A Formation Unit as described in that certain instrument recorded in
Book 461, Page 457 of the records of Wood County, Texas.
A 34.82 acre tract out of the W. W. Grice Tract of land, situated in the Hazard
Anderson Survey, Wood County, Texas, said 34.82 acre tract being described as
follows: Beginning at the Southeast corner of the W. W. Grice 26.5 acre tract;
thence S 0 deg. 33' E 99.42 varas to the Southwest corner of said 34.82 acre
tract; thence N 89-45' E 475 vrs. to the Southeast corner of said 34.82 acre
tract; thence N 0 deg. 33' W 412.83 vrs. to the Northeast corner of said 34.82
acre tract; thence W 475 vrs. to a point in the East line of
11
<PAGE>
W. W. Grice 26.5 acre tract being 13.19 vrs. S 0 deg. 33' E from the Northeast
corner of said W. W. Grice 26.5 acre tract; thence S 0 deg. 33' E along the East
line of the W. w. Grice 26.5 acre tract to the point of beginning.
The South 20 acres of the 26.5 acre tract out of the W. W. Grice Tract of land
situated in the Hazard Anderson Survey, Wood County, Texas; said W. W. Grice
tract of land being fully described in Oil, Gas and Mineral Lease from Ruby
Grice, et al, to Amerada Petroleum Corporation and filed for record November 1,
l944, in Volume 268, Page 110, Deed Records of Wood County, Texas; said 26.5
acre tract being more particularly described as follows:
Beginning at the Southeast corner of said 26.5 acre tract; thence South 89 deg.
48' West 474.03 varas to the Southwest corner of said 26.5 acre tract thence
North 0 deg. 37' West 315.48 varas to the Northwest corner of said 26.5 acre
tract; being also the Southwest corner of the W. W. Grice 39.19 acre tract;
thence North 89 deg. 48' East 474.39 varas along the common boundary line
between said 26.5 acre tract to the W. W. Grice 39.19 acre tract; thence South 0
deg. 33' East 13.19 varas to a point on the East line of the 26.5 acre tract
being also the Northwest corner of the W. W. Grice 34.82 acre tract; thence
continuing along the East line of the 26.5 acre tract South 0 deg. 33' East
302.29 varas to the point of beginning; said 26.5 acre tract having been
conveyed by deed from Anderson Gunter to W. W. Grice, recorded in Volume 31,
Page 6 of the Deed Records of Wood County, Texas.
Goldston Oil Corp. - W. W. Grice 76.5 acre lease described as follows: a part
of the Hazard Anderson Survey, Abst No.10, Wood Co., TX, and beginning at the NW
corner of the 640 acre tract conveyed by Rueben Herndon to G N. Price; Thence E
950 vrs. Cor. on the NBL of said 640 ac Tr from which a red elm brs. N 3 vrs;
thence S 445 Vrs. cor. from which a B.O. brs. S42 E Vrs., A B.O. brs. N 3 Vrs.;
thence West 950 Vrs. for corner of the WBL of said 640 acre tract from which a
P.O. brs. South 16 East 4 Vrs.; a P.O. brs. South 60 West 3 Vrs; thence North
455 Vrs. to the place of beginning, containing 6\67.5 acres of land, more or
less.
Also, 100 acres of land out of the R. E. Neill Survey about five miles North of
the town of Quitman, and described by metes and bounds as follows: Beginning at
a point 790 vrs East and 744 vrs North of the SW corner of said survey; thence
North 744 varas; thence East 679 varas; thence South 744 varas; thence West 769
varas to the beginning; and being the same land conveyed to W. W. Grice by A.L.
McGee, et ux, by deed dated the 22nd day of November 1913, and shown of record
in Volume 33, Page 263, Deed Records of Wood County, Texas.
STATE OF TEXAS
COUNTY OF GREGG
5 acres, more or less, a part of the Isaac Skillern Survey, described in that
certain Assignment of Oil, Gas & Mineral lease dated December 14,1955, by and
between C. B. Roberts, as Assignor, and J. K. Maxwell, as Assignee, filed for
record on December 26, 1955, under clerks File #11632 in Volume 470, page
580-582, of the Deed Records.
212.49 acres in the Dolorez Sanchez Survey A-186, being the same land
described in Exhibit 'A2' to the Unit Designation dated November 19, 1993,
Recorded Volume 2592 Page 227, Gregg County, Texas.
12
<PAGE>
Beginning at the Southwest corner of the F. K. Lathrop 92.5 acre tract in the
William Robinson Survey; Thence North 68 deg. 321 East 392.58 feet along the
South boundary line of said F. K. Lathrop's 92.5 acre tract to a stake; Thence
South 509 feet to a stake; Thence West 365.34 feet to a stake in the East
boundary line of the said Thad Snoddy 120 acre tract 365.34 feet to the place of
beginning and containing 3.675 acres, and being a part of the Henry and Fannie
Smith .73-1/2 acre tract
Reference:
13
<PAGE>
EXHIBIT B-3 *+
LATEX RESOURCES, INC. MISCELLANEOUS INTERESTS
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
DAVIES, M.W. #1 L CLARKE AL 1.00000000 0.81050491 SOUTH CARLTON
DAVIES, M.W. #4 L CLARKE AL 1.00000000 0.81055531 SOUTH CARLTON
DAVIES, M.W. #5 L CLARKE AL 1.00000000 0.86499990 SOUTH CARLTON
SCOTT #11-11 L CLARKE AL 1.00000000 0.82208623 SOUTH CARLTON
BARBOUR, B.W. #16-11 L CLARKEJBALDWIN AL 1.00000000 0.71251045 SOUTH CARLTON
WALL ET AL #3-3 L CLARKE/BALDWIN AL 1.00000000 SOUTH CARLTON
WALL ET AL #3-3A L CLARKEIBALDWIN AL 1.00000000 SOUTH CARLTON
WALL ET AL 3-15 L CLARKE/BALDWIN AL 1.00000000 SOUTH CARLTON
BARBOUR, B.W. ET AL #16-7 L CLARK/BALDWIN AL 1.00000000 0.76041670 SOUTH CARLTON
DAVIES, M.W. #15-13 #1 L CLARKE/BALDWIN AL 1.00000000 0.76041670 SOUTH CARLTON
WALL ET AL #3-11 L CLARKEIBAIDWIN AL 1.00000000 0.71495054 SOUTH CARITON
WALL ET AL #3-13 L CLARKE/BALDWIN AL 1.00000000 0.71495054 SOUTH CARLTON
ATIC 17-5 2 G ESCAMBIA AL 0.20000000 0.12743200 ROBINSON CREEK
ATIC 18-13 1 G ESCAMBIA AL 0.10000000 0.06324750 HUXFORD E
A M C 14-15 1 G FAYETTE AL 0.35813000 0.30461000 MCCRACKEN MOUNTAIN
AIRHART-WATKINS 6-16 G FAYETTE AL 0.03500000 0.02459625 FAYETTE, SW
ATKINSON 17-1 G FAYETTE AL 0.00820000 0.00672539 BLUFF FIELD
BACCUS 13-16 G FAYETTE AL 0.02187000 0.01914000 HEARTLINE
BAGWELL 24-4 G FAYETTE AL 0.00000000 0.00497797 0.02187500 0.01826560 CAINS RIDGE
BAINES M E 1 G FAYETTE AL 0.46218000 0.40053000 MCCRACKEN MOUNTAIN
BARNES EST./CUTTER SOUTH
MISS UNIT G FAYETTE AL 0.00387798 CUTTER WATERFLOOD
BARNES ESTATE 1 G FAYETTE AL 0.35010000 0.29198000 BLOOMING GROVE
BERRY 8-10 1 G FAYETTE AL 0.09922000 0.08072000 BLOOMING GROVE
BOZEMAN 27-15 G FAYETTE AL 0.22608000 0.19214000 0.15825620 0.13425030 MCCRACKEN MOUNTAIN
BROWN NELL 7-3 1 G FAYETTE AL 0.04375000 0.03716000 BLOOMING GROVE
BUTTS J T 1 G FAYETTE AL 0.18750000 0.16092000 BLOOMING GROVE
CHADLEY 27-9 G FAYETTE AL 0.73403000 0.48184000 DAVIS CHAPEL NE
DUDLEY 22-16 G FAYETTE AL 0.00137000 0.00108115 BLUFF FIELD
FOWLER 11-4 1 G FAYETTE AL 0.05195000 0.04546000 DAVIS CHAPEL
FOWLER 14-1 G FAYETTE AL 0.08203000 0.06725589 DAVIS CHAPEL
FOWLER 2-12-1 G FAYETTE AL 0.02584000 0.02261000 DAVIS CHAPEL
FOWLER 22-14 1 G FAYETTE AL 0.09712000 0.07494000 MUSGROVE CREEK
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOWLER 23-15 1 G FAYETTE AL 0.13125000 0.09100581 MUSGROVE CREEK
FOWLER 26-3 G FAYETTE AL 0.15313000 0.11581677 DAVIS CHAPEL NE
FOWLER 26-4 1 G FAYETTE AL 0.15313000 0.11581677 DAVIS CHAPEL NE
FOWLER 6-16 BP G FAYETTE AL 0.03500000 0.03063000 BLUFF FIELD
FOWLER 9-6 1 G FAYETTE AL 0.02297000 0.01400000 DAVIS CHAPEL
FOWLER J S 6-16 1 G FAYETTE AL 0.03500000 0.02869531 BLUFF FIELD
FOWLER-MORGAN 8-4 1 G FAYETTE AL 0.04375000 0.03621427 BLUFF FIELD
FULLERTON 25-13 1 G FAYETTE AL 0.02447000 0.02139000 MUSGROVE CREEK
GRACE ANDERS 13-15C G FAYETTE AL 0.05345000 0.04283000 MCCRACKEN MOUNTAIN
GRACE ANDERS 13-15L G FAYETTE AL 0.12817190 0.10023350 MCCRACKEN MOUNTAIN
GRAVLEE 13-12 G FAYETTE AL 0.62962000 0.46108134 MCCRACKEN MOUNTAIN
GRIMSLEY A M 1 G FAYETTE AL 0.35010000 0.28512000 BLOOMING GROVE
GRIMSLEY A M 2 G FAYETTE AL 0.25000000 0.20669000 BLOOMING GROVE
HARKINS-STANLEY 1 G FAYETTE AL 0.10245000 0.07581000 FAYETTE, W
HIGGINS JIMMY 1 G FAYETTE AL 0.25125000 0.17207760 BLOOMING GROVE
HODO HG 30-12 1 G FAYETTE AL 0.04594000 0.03185238 FAYETTE, N.
HUBBERT 18-13 1 G FAYETTE AL 0.02461000 0.01614130 HUBBERTVILLE
JOHNSON 30-11 G FAYETTE AL 0.10599000 0.08576751 MCCRACKEN MOUNTAIN
JONES JIMMY RAY 7-7 1 G FAYETTE AL 0.05469000 0.03791914 BLUFF FIELD
KILLINGSWORTH 7-9 G FAYETTE AL 0.16406000 0.12141000 MUSGROVE CREEK
KILLINGSWORTH 8-13 G FAYETTE AL 0.13737000 0.10248000 MUSGROVE CREEK
LOFTIS EST 23-8 1C G FAYETTE AL 0.13875000 0.11353819 MCCRACKEN MOUNTAIN
LOFTIS EST 23-8 1L G FAYETTE AL 0.13875000 0.11353819 MCCRACKEN MOUNTAIN
McCALEB 26-9 G FAYETTE AL 0.31594000 0.26679000 BETHEL CHURCH
MCEVERS 19-9 G FAYETTE AL 0.13521000 0.10672330 MCCRACKEN MOUNTAIN
MORRIS FRED 18-5 1 G FAYETTE AL 0.06152000 0.05030096 HUBBERTVILLE
NOLAN 6-2 1 G FAYETTE AL 0.12500000 0.10248406 DAVIS CHAPEL NE
NOLEN,CHARLES 35-2 G FAYETTE AL 0.05250000 0.04058397 MCCRACKEN MNTN W.
NORRIS ELVIE 29-8 1 G FAYETTE AL 0.17500000 0.14613000 FAYETTE, W
NORRIS N G 21-13 1 G FAYETTE AL 0.67977000 0.50480000 FAYETTE, W
RANDOLPH 25-13 1 G FAYETTE AL 0.01669060 0.01368423 BETHEL CHURCH
SIZEMORE FOWLER(JS) 6-16 2 G FAYETTE AL 0.03500000 0.03063000 BLUFF FIELD
SMITH L R 1 G FAYETTE AL 0.16844000 0.12909300 BLOOMING GROVE
SPARKS 14-3 1 G FAYETTE AL 0.03125000 0.02452657 MCCRACKEN MOUNTAIN
STEINER SCHWAB 17-13 G FAYETTE AL 0.10042970 0.08179079 BOXES CREEK
STEINER SCHWAB 17-5 G FAYETTE AL 0.26017220 0.22519803 BOXES CREEK
</TABLE>
Page 2
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
STEINER-SCHWAB 26-5 G FAYETTE AL 0.29531000 0.22296000 MUSGROVE CREEK
WAYSIDE OIL UNIT G FAYETTE AL 0.00159000 0.00101551 WAYSIDE
WEYERHAUSER 17-2 G FAYETTE AL 0.00820000 0.00672539 BLUFF FIELD
WHITAKER 25-15 G FAYETTE AL 0.28438000 0.23710000 BETHEL CHURCH
WHITE CECIL 8-4 1 G FAYETTE AL 0.68149750 0.53592274 BLOOMING GROVE
WHITELY 1 G FAYETTE AL 0.23603000 0.19975000 BLOOMING GROVE
COBB-VICK 2-10 1 G LAMAR AL 0.10277330 0.08804250 0.09843750 0.08405470 BLOOMING GROVE
DUNCAN 22-3 G LAMAR AL 0.00000000 0.03904149 0.23330000 0.18958000 DETROIT, SE
GILMER 25-15 1 G LAMAR AL 0.46152500 0.38526778 BLOWHORN CREEK
HERRON 20-15-1 G LAMAR AL 0.16563000 0.12323673 FERNBANK
HODO 31-15 1 G LAMAR AL 0.10390000 0.07955349 MOUNT CARMEL
HOLLEY J F 32-8 1 G LAMAR AL 0.23672000 0.18021690 BEAVERTON
JUDE GILMER 35-7 G LAMAR AL 0.00686443 E WATSON CREEK
MARX-THOMAS 6-6 1 G LAMAR AL 0.05469000 0.04073736 MUD CREEK
MAYERS F 29-5 1 G LAMAR AL 0.03125000 0.02539000 MCGEE LAKE
MCDONALD 36-13 M G LAMAR AL 0.65450000 0.47564090 CORINTH
MORRISON 2-8 11M GSI LAMAR AL 0.10555000 0.08351724 CORINTH
MORRISON 35-1M G LAMAR AL 0.08695000 0.07261000 BLOWHORN CREEK
MORRISON 36-4 1C G LAMAR AL 0.65450000 0.47564094 BLOWHORN CREEK
MORRISON 36-4 1M G LAMAR AL 0.65450000 0.47564094 BLOWHORN CREEK
N BLOWHORN CREEK UNIT G LAMAR AL 0.01913000 0.01452435 BLOWHORN CREEK
NEWMAN LUMBER 16-3 G LAMAR AL 0.04314000 0.03410992 MILITARY GROVE N.
NOLEN 35-2 #1 G LAMAR AL 0.00723813 E WATSON CREEK
ROBERTSON 20-12 1 G LAMAR AL 0.11093750 0.08820000 FERNBANK
ROGERS ELLEN 25-1 1 G LAMAR AL 0.01943000 0.01387389 MCGEE LAKE
SIMPSON 16-11 #1 G LAMAR AL W. MLPORT
SISSON OLIVER 29-13 G LAMAR AL 0.04688000 0.03809000 MCGEE LAKE
SMITH 28-9 G LAMAR AL 0.35000000 0.26645906 ARMSTRONG BRANCH
STRAWBRIDGE DW 33-14 G LAMAR AL 0.23327000 0.17758871 BEAVERTON
STRAWBRIDGE RH 9-2 1 G LAMAR AL 0.03063000 0.02393000 LITTLE HELLS CREEK
SUGGS 16-10 G LAMAR AL 0.02801000 0.02086320 FERNBANK
WEYERHAEUSER 26-11 1 G LAMAR AL 0.11276040 0.08804506 BLOWHORN CREEK
HILL ANNIE ET AL 39 #3 G MOBILE AL 0.00000000 0.00635793 0.10000000 0.07836200 MOVICO
AMERICAN CAN 11-5 G PICKENS AL 1.00000000 0.71626820 0.89843740 0.70631070 WOOLBANK CREEK
BUSH DAVID 14-14 1 G PICKENS AL 0.17698000 0.15486000 COAL FIRE CREEK
CARPENTER SHIRLEY 1TC &1C G PICKENS AL 0.00000000 0.00000000 0.19754790 0.16050760 COAL FlRE CREEK
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COBB 12-9 G PICKENS AL 0.2548438O 0.19292199 0.34192870 0.27773590 COAL FIRE CREEK
HAMMOND 13-13 1 G PICKENS AL 0.00000000 0.03504658 0.22197660 0.18306220 COAL FIRE CREEK
IRWIN 7-15 1 G PICKENS AL 0.06169000 0.04673317 COAL FIRE CREEK
IRWIN 7-15 2 G PICKENS AL 0.06169000 0.04673317 COAL FIRE CREEK
NEWMAN-CROWLEY 24-5 1C G PICKENS AL 0.47640000 0.39831000 COAL FIRE CREEK
NEWMAN-CROWLEY 24-5 1L G PICKENS AL 0.48891020 0.40885480 COAL FIRE CREEK
PECO FOODS 35-11 1 G PICKENS AL 0.01291000 0.01037681 COAL FIRE CREEK
DENMON 1 G COLUMBIA AR 0.00000000 0.00470000 0.00938060 0.00821670 PLAINFIELD
TALLEY B 1 G COLUMBIA AR 0.07105000 0.05825469 PLAINFIELD
BURROUGH #1-26 L CRAWFORD AR 0.13705499 0.09910085 CECIL
BURROUGH #2-26 L CRAWFORD AR 0.13705499 0.09910085 CECIL
FINNEY 1 G LOGAN AR 0.03415000 0.02399784 FLETCHER CREEK
FOUR QUARRIES 27-2C &
2T(W/B) L LOGAN AR 0.14583333 0.11144253 DELAWARE
RAZORBACK 1 G LOGAN AR 0.00000000 0.00794000 FLETCHER CREEK
MORRIS 1-23 CMG G POPE AR 0.20313000 0.15464158 MORELAND FIELD
CAMPBELL 21-13 3 G CHEYENNE CO 0.12000000 0.09600000 HARKER RANCH
DOYLE 34-1 4 G CHEYENNE CO 0.12000000 0.09600000 HARKER RANCH
DURR D D 1 21-12 G CHEYENNE CO 0.22500000 0.17531000 HARKER RANCH
DURR D D 2 32-12 G CHEYENNE CO 0.12000000 0.08760950 ARAPAHOE, N.
DURR D D 3 12-12 G CHEYENNE CO 0.18000000 0.13387388 HARKER RANCH
MITCHELL 34-35 2 GSI CHEYENNE CO 0.20000000 0.14992000 ARAPAHOE
STEELE 44-3C 1 G CHEYENNE CO 0.05625000 0.04387500 HARKER RANCH
ELITS BRADLEY #1-14 L ROUTT CO 0.12500000 0.10606250 BEAR RIVER
WALKER 1-33 L CLARK KS 0.25000000 0.19153627 MCKINNEY
BRASS #1-36 L COMANCHE KS 1.00000000 0.74256935 CALVERY
LARRABEE #1-23 L MEADE KS 0.28711000 0.22866824 HORACE SOUTH
BREEDING UNIT #1-34 L MORTON KS KINSLER
DOTTER GAS UNIT L STANTON KS 0.14110500 0.11068777 PANOMA
GLENN #1-33 L STANTON KS 0.19140600 0.14497217 BEAUCHAMP
LUCAS #1-21 L STANTON KS 0.19140600 0.14123635 BEACHUMANT
LYNCH 1-20 L STANTON KS 0.19140625
MARTIN 16-1 L STANTON KS 0.58437600 0.45385500 MARTIN
NELLIE #1-16 L STANTON KS 0.38281200 0.28247256 BEAUCHAMP
SULLIVAN UNIT #1-24 L STANTON KS 0.00000760
BARNES ESTATE #26-1 L STEVENS KS 0.09000000 0.06746400 CUTTER SOUTH
COWSKIN CREEK C UNIT L SUMNER KS X BELLMAN
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COWSKIN CREEK D UNIT L SUMNER KS X 0.00071859 BELLMAN N
WYATT UNIT #1-4 L SUMNER KS 0.00081250 MCKINNEY
COMEAUX, D NOD A RF SUA G ACADIA LA 0.09000000 0.06750000 RAYNE
DAIGLE #1 E. C. L ACADIA LA 0.02211840 0.03164400 ELLIS
WILBERT #1 L ACADIA LA 0.00499130 0.10248438 N. TEPETATE
COMEAUX, DELMAE G ACADIA LA 0.02016550 0.01284871 RAYNE
CHEVRON FEE HET 3 RA SUO G ASCENSION LA 0.31432000 0.25146000 DARROW
LM. MANY 2 G ASCENSION LA 0.00595386 DARROW
LEOLA M. MANY HET 3 RA SUB G ASCENSION LA 0.68126000 0.45547340 DARROW
SORRENTO DOME #1 L ASCENSION LA 1.00000000 0.82376149 SORRENTO DOME
IRENE F/W UNIT G BATON ROUGE E. LA 0.14956970 0.11152500 IRENE
SINCLAIR #1-1800 TUSC RB
SUB G BATON ROUGE E. LA 0.01078000 0.00823623 COMITE
U TUSC RA SU (IRENE FWU) G BATON ROUGE E. LA 0.00708570 0.00518470 IRENE
WILBERT C-1 L BATON ROUGE W LA 0.03552500 0.02773928 GROSS-ISLE
DOORNBOS #1 L BEAUREGARD LA 0.22500000 0.15601050 SINGER N
EDWARDS UNIT #1 L BOSSIER LA 0.00716320 0.00611842 SLIGO
HARDMANN WELL #1 L BOSSIER LA 0.00746000 0.00611842 SLIGO
STINSON L BOSSIER LA 0.00716320 0.00611842 SLIGO
EDGAR A-1 L CADDO LA 0.00118750
BOISE SOUTHERN #1 L CAL/BEAUREGARD LA 0.76923080 0.17307700 0.18750000 0.14062500 COWARD'S GULLY
BOISE SOUTHERN #3 L CAL/BEAUREGARD LA 0.79310340 0.13013700 COWARDS GULLY
LONGENBAUGH #3 & 3D L CAL/JEFDAVIS LA 0.95651200 BON AIR
WEST CAMERON BLK 252 L CAMERON LA 0.10000000 0.07417896 WEST CAMERON BLOCK
WEST CAMERON BLK 253 L CAMERON LA 0.10000000 0.07417896 WEST CAMERON BLOCK
BYMF L SMK A RA SU G CLAIBORNE LA 0.15375000 0.12337000 BAYOU MIDDLE IRRIK
CLARK, THATCHER #3 L CLAIBORNE LA 0.04667574 0.18565500 LISBON
FULLER #1 L CLAIBORNE LA 0.03967065 0.02308706 LISBON
FULMER #1 L CLAIBORNE LA 0.20143600 0.17987409 SUGAR CREEK FIELD
GLEASON Al PET RA SUL G CLAIBORNE LA 0.02947500 0.02362230 0.03006000 0.02411160 PANTHER
HUNT ESTATE 2 SMK RC SUC G CLAIBORNE LA 0.00168000 0.00126000 HAYNESVILLE
LEDBETTER #1 L CLAIBORNE LA 0.10641900 0.12003993 SUGAR CREEK
LINDSEY 1 G CLAIBORNE LA 0.09375000 0.07007399 LISBON
LINDSEY 1-D G CLAIBORNE LA 0.09375000 0.07007399 LISBON
MCADAMS B 1-HAY RA SUW G CLAIBORNE LA 0.18046000 0.14795827 LISBON
MEADOWS l MSK A RB SUC G CLAIBORNE LA 0.25000000 0.20496875 LISBON
PATTERSON, WF #1 L CLAIBORNE LA 0.01481982 0.00993513 LISBON
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RAINWATER #1 L CLAIBORNE LA 0.37607200 0.25958028 OAKS
SALE (BUC) #l, #2, & #3 G CLAIBORNE LA 0.30000000 0.24596250 HAYNESVILLE E
SALE-CROCKER #1, #2, #4 G CLAIBORNE LA 0.30000000 0.24596250 HAYNESVILLE E
T.S. SALE #1 L CLAIBORNE LA 0.12500000 0.08784375 EAST HAYNESVILLE
TEAGUE #1 L CLAIBORNE LA 0.47648790 0.32940840 OAKS
THATCHER #1 L CLAIBORNE LA 0.25649700 0.21635300 LISBON
PEABODY #10 G CONCORDIA LA 0.13046600 0.09168264 BLACK HAWK
PEABODY #4 G CONCORDIA LA 0.13046600 0.09168264
PEABODY #4 (S1 4/92) G CONCORDIA LA 0.13046600 0.09168264
PEABODY #5 G CONCORDIA LA 0.13046600 0.09168264
PEABODY #6 G CONCORDIA LA 0.13046600 0.09168264
PEABODY #6 G CONCORDIA LA 0.13046600 0.09168264
PEABODY #7 G CONCORDIA LA 0.13046600 0.09168264
PEABODY #7 (S1-4/91) G CONCORDIA LA 0.13046600 0.09168264
PEABODY LBM G CONCORDIA LA 0.00000000 0.03306400
GAMBLE A-2D L DESOTO LA 0.30750000 0.25210945 BETHANY LONGSTREET
LOWER WILCOX RA SAND UNIT L EVANGELINE LA 0.00006432
MIDDLE WILCOX RA SAND UNIT L EVANGELINE LA X 0.00004683
UPPER WILCOX RA SAND UNIT L EVANGELINE LA 0.00008902
GAY UNION CORP #11 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #11-D L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #13 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #16 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #17 L IBERVILLE LA 1.OOOOOOOO 0.80035010 BAYOU CHOCTAW
GAY UNlON CORP #18 L IBERVILLE LA BAYOU CHOCTAW
GAY UNION CORP #20 L IBERVILLE LA 1.00000000 BAYOU CHOCTAW
GAY UNION CORP #23 L IBERVILLE LA 1.00000000 BAYOU CHOCTAW
GAY UNION CORP #25 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #26 L IBERVILLE LA 0.50000000 0.41059421 BAYOU CHOCTAW
GAY UNION CORP #29 L IBERVILLE LA 0.50000000 0.41059421 BAYOU CHOCTAW
GAY UNION CORP #31 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #34 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #35 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #36 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #38 L IBERVILLE LA 0.50000000 0.41059421 BAYOU CHOCTAW
GAY UNION CORP #40 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
</TABLE>
Page 6
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
GAY UNION CORP #42 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #46 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #46 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #52 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #53 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
GAY UNION CORP #6 L IBERVILLE LA 1.00000000 0.80035010 BAYOU CHOCTAW
SCHWING #1 L IBERVILLE LA 0.15384615 0.08315875 BAYOSORREL
WILBERTS MYRTLE GROVE #1-4 L IBERVILLE LA 0.10248438 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #21 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #28 L IBERVILLE LA 0.99739200 0.32709471 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #30 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #31 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #33 L lBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #35 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #37 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #39 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #44 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE 945 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
WILBERTS MYRTLE GROVE #46 L IBERVILLE LA 0.99739200 0.65418904 BAYOU CHOCTAW
MILLER, RD #3 L JEFFERSON LA 0.02385536 LAKE ARTHUR
DAVIS
THOMAS MILLER #1 L JEFFERSON LA 0.95800000 0.74892428 WOODLAWN
DAVIS
BENOIT BEGNAUD #1 L LAFAYETTE LA 0.00015440 0.00054540 OSSUN NORTH
CLOVELLY #1 L LAFOURCHE LA 0.04748630 0.03077330 CLOVELLY
LAFONT, WALLACE #1 L LAFOURCHE LA 0.15000000 0.10681440 BULLY CAMP
LAFONT, WALLACE #1-D L LAFOURCHE LA 0.15000000 0.10008538 BULLY CAMP
SL 14248 G LIVINGSTON LA 0.00000000 0.02008333
BLD D 18 (El RA SUB) L OFFSHORE LA 0.04544980 0.03564710 SOUTHPASS
GERTRUDE ROBERTS L OUACHITA LA 0.09117580 0.06860954 CADEVILLE
J Y HEAD #1 L OUACHITA LA 0.01759465 0.01227172 CADEVILLE
S O HENRY #1 L OUACHITA LA 0.21324220 0.16228000 CADEVILLE
WARNER SAWMILL L OUACHITA LA 0.00367900 0.00280469 CADEVILLE
11 RC SU L PLAQUEMINES LA 0.00889635 0.00651768 SOUTHPASS
18100 SUE MIX L PLAQUEMINES LA 0.02087870 0.01652128 SOUTHPASS
13100 SUG BIZETTE L PLAQUEMINES LA 0.01339040 0.01081551 SOUTHPASS
18100 SUH BERGERON L PLAQUEMINES LA 0.01193680 0.00868899 SOUTHPASS
18100 TUSCRA SUA HURST L PLAQUEMINES LA 0.02476940 0.00684060 SOUTHPASS
</TABLE>
Page 7
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
18100 TUSCRA SUD BUTLER L PLAQUEMINES LA 0.02025340 0.01443851 SOUTHPASS
4 RB SU L PLAQUEMINES LA 0.02550230 0.01987760 SOUTHPASS
5 M RA SU L PLAQUEMINES LA SOUTHPASS
8 RB SU L PLAQUEMINES LA SOUTHPASS
BLD D 17 (El RA SUE) L PLAQUEMINES LA 0.05000000 0.03545118 SOUTHPASS
ST TIM UNIT 2-2 (X-1 RA
SU) L PLAQUEMINES LA 0.03306746 0.02545937
STATE LEASE 3942 #2 L PLAQUEMINES LA
VU 16 L PLAQUEMINES LA 0.01648700
VU 5 L PLAQUEMINES LA 0.02000000 0.01500000
VU 93 A L PLAQUEMINES LA 0.05000000
VU 95 L PLAQUEMINES LA 0.02500000
VU 96 L PLAQUEMINES LA 0.02500000 0.01756875
VU B L PLAQUEMINES LA 0.04000000 0.01553460
X 11 RA SU L PLAQUEMINES LA 0.00379115 0.00103680 SOUTHPASS
X 11 RB SU L PLAQUEMINES LA 0.00261375 0.00193750 SOUTHPASS
X 9A RA SU L PLAQUEMINES LA 0.00379195 SOUTHPASS
BERGERON #5 L POINTE COUPEE LA 0.01193700 0.00868919 MOORE SAMS
BIZETTE #1 L POINTE COUPEE LA 0.01796900 0.01236644 MOORE-SAMS
BIZETTE #2 L POINTE COUPEE LA 0.01339040 0.01113480 MOORE SAMS
BUTLER #1 L POINTE COUPEE LA 0.02025300 0.01443849 MOORE SAMS
CURET #1 L POINTE COUPEE LA 0.00219300 0.00153668 MOORE SAMS
DEVILLE #1 L POINTE COUPEE LA 0.00214900 0.00159000 MOORE SAMS
HURST #1 L POINTE COUPEE LA 0.02476900 0.01706033 MOORESAMS
MIX #1 L POINTE COUPEE LA 0.02087500 0.01503035 MOORE SAMS
CHRISTIAN #1 L RICHLAND LA 0.20000000 0.20000000 BIG CREEK
CLIFTON GARCIA #1 L SABINE LA 0.50000000 0.40000000 ZWOLLE
10,000 RW SUB L ST CHARLES LA 0.00019050 PARADISE
E 0 DANIEL #1 L ST CHARLES LA 0.03335940 PARADISE
JOSEPH DAMICO UNIT L ST CHARLES LA 0.00191830 PARADISE
KOCH IND. #1 ROB g RB SUB G ST CHARLES LA 0.01474700 0.00918891 LUCY
L 9000' RE SUA L ST CHARLES LA 0.01102700 PARADISE
L 9000' RF SUA DANNELL #1 L ST CHARLES LA 0.03978070 PARADISE
PARADISE GAS UNIT #1 L ST CHARLES LA 0.00325660 PARADISE
PARADISE NA GAS UNIT L ST CHARLES LA 0.00024200 PARADISE
STEWART BUSH 10000RASUA L ST CHARLES LA 0.00608060 PARADISE
JOC OIL FEE #2 L ST JAMES LA 0.17818800 0.12993126 HESTER
</TABLE>
Page 8
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C><C> <C> <C> <C> <C>
LOUQUE #1 L ST JAMES LA 0.27488460 0.17316994 HESTER
CL&F l (TB)-PDP G TERREBONNE LA 0.03150000 0.02213663 TURTLE BAYOU
CL&F 10 ST G TERREBONNE LA 0.04500000 0.03001163 0.03150000 0.02362500 TURTLE BAYOU
CL&F 5 (TB)-PDP G TERREBONNE LA 0.04500000 0.02951550 TURTLE BAYOU
CL&F 7 (TB)-PDP G TERREBONNE LA 0.02520000 0.02243430 TURTLE BAYOU
CL&F D17-PDP G TERREBONNE LA 0.02500000 0.01639750 TURTLE BAYOU
W.Z. (OSCAR) COCKE L TERREBONNE LA 0.00307450 0.00157699
l STANSBURY #2 MITCH RF
SUA G VERMILION LA 0.02842000 0.02329232 GROOSE ISLE
BROWN, E.W. UNIT #1 L VERMILION LA 0.01339260 0.00969130
BROWN GODCHAUX #2 L VERMILLION LA 0.000326l0 0.00023290 LIVEOAK
WILBERT C-1 L W BATON ROUGE LA 0.03562500 0.0277392 GROOSE TETE
FULLER l HOSS A SUY G WEBSTER LA 0.04296870 0.02216042 SIBLEY
SMK A RB SUA CH STATEN l G WEBSTER LA 0.00000000 0.00209930 SHONGALOO N
BEDROCK
E l RA SUB L LA 0.04549800 0.03220600 LITTLE LAKE
E l RA SUC L LA 0.03965090 0.02803321 LITTLE LAKE
E l RA SUD L LA 0.03585659 LITTLE LAKE
E l RA SUE L LA 0.05000000 0.03543031 LITTLE LAKE
LIVE OAK L LA 0.01399152 X LITTLE LAKE
SUL AMOCO #156870 L LA 0.00153668 LITTLE LAKE
TAMBOUR CORP. ET AL C #2-D L LA 0.01500000 LITTLE LAKE
STATE WEXFORD #1-17A L WEXFORD MI WEXFORD
STATE WEXFORD 6 #1 L WEXFORD MI 0.13186800 0.10811560 WEXFORD
STATE WEXFORD l6 #2 L WEXFORD MI 0.14790120 0.10839781 WEXFORD
STATE WEXFORD A18 #1 L WEXFORD MI 0.14790120 0.10811660 WEXFORD
WELLS, H 18 #1 L WEXFORD MI 0.02472500 0.02163400 WEXFORD
LEES-RATCLIFF UNIT WILCOX
5800 G ADAMS MS 0.00000000 0.00196071 CRANFIELD
LEES-RATCLIFFE UNIT WILCOX
4400 G ADAMS MS 0.00000000 0.00226300 CRANFIELD
ANDERSON 7-2 G CHICKASAW MS 0.OOOOOOO 0.01464031 0.04375000 BALLS BRANCH
ASHBY 22-1 GSI CHICKASAW MS 0.03227000 0.02796000 BACON
STEVENS-BIGLER 32-13 G CHICKASAW MS 0.19084000 0.16300000 BALLS BRANCH
E. SMACKOVER L CLARKE MS 0.01686103 0.01291416 LAKE COMO
KIRKLAND #1 PUD G CLARKE MS 0.00000000 0.00019680 PEACHTREE CREEK
MASON, BOBBYE L CLARKE MS 0.05500520 0.37885930 NANCY
MATT-EDDINS #29-16 L CLARKE MS 0.02500000 0.01903283
PARKER, OTHO #1 L CLARKE MS 0.12500000 0.08557250 NANCY
RUDDER 29-4 PDNP G CLARKE MS 0.00000000 0.00019680 PEACHTREE CREEK
</TABLE>
Page 9
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI(BPO) NRI(BPO) WI(APO 1) NRI(APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
STATE LEASE #1-PUD G CLARKE MS 0.00000000 0.00019680 PEACHTREE CREEK
TEMPLE 29-3 #1 PDNP/HEARN G CLARKE MS 0.00000000 0.00019680 PEACHTREE CREEK
TEMPLE 29-3 #1 PDNP/HEARN G CLARKE MS 0.00000000 0.00019680 PEACHTREE CREEK
BOYTE G FRANKLIN MS 0.00000000 0.03818650 ROXIE
BOLTON UNIT #3 L HINDS MS 0.00662817 BOLTON
GADDIS FARMS #13-1 L HINDS MS 0.21002630 0.15625555 BOLTON
GADDIS MCLAURIN VII L HINDS MS 0.20000000 0.14992000 BAKERS CREEK
GADDIS MCLAURIN VIII L HINDS MS 0.20000000 0.14992000 BAKERS CREEK
MASHBURN, C.J. GU #1 L HINDS MS 0.99085350 0.81315225 BOLTON
MOORINGSPORT UNIT L HINDS MS 0.21000000 0.16675000
BUCKLEY HEIRS, LL G JASPER MS 0.09750000 0.06851813 BAY SPRINGS
BUFKIN #15-6 (REDRILL) L JASPER MS 0.00005500 x MCNEIL
HALL INDUSTRIES G JASPER MS 0.10500000 0.07027500 BAY SPRINGS
HELMS J R 2 GSI JASPER MS 0.00195000 0.00156000 SHARON
MCNEAL FIELD UNIT L JASPER MS 0.00417869 0.00578250 MCNEAL
A F STEELE 31-6 G JEFFERSON DAVIS MS 0.00282890 0.00265068 GRANGE
DONALDSON 25-16 G JEFFERSON DAVIS MS 0.00548370 0.00479820 GRANGE
REESE 1-A L JEFFERSDN DAVIS MS 0.08127140 0.04775661 BASS FIELD
ROBERTSON ESTATE G JEFFERSON DAVIS MS 0.00310259 0.00310259 GRANGE
BRYAN COTTON VALLEY #1 L JONES MS 0.10500900 0.11684062 BRYAN
BRYAN COTTON VALLEY #10 L JONES MS 0.14578000 0.12469700 BRYAN
BRYAN COTTON VALLEY #3 L JONES MS 0.23437000 0.18722500 BRYAN
BRYAN COTTON VALLEY #4 L JONES MS 0.23437000 0.17669700 BRYAN
BRYAN COTTON VALLEY #6 L JONES MS 0.13004000 0.10449143 BRYAN
BRYAN COTTON VALLEY #7 L JONES MS 0.13004000 0.10449143 BRYAN
BRYAN COTTON VALLEY #8 L JONES MS 0.05859000 0.04117675 BRYAN
GATLIN #l L JONES MS 0.08789100 0.11718800
GATLIN B-1 L JONES MS 0.08789100 0.11718800
PARAMOUNT-COCHRAN 14-5 G JONES MS 0.37273330 0.33749421 BLACKBURN
WALKER 6-7 3 G JONES MS 0.33333000 0.24666000 CAMP CREEK
DABBS 24-6 G LEE MS 0.00000000 0.06143949 NETTLETON N.
HINTON 8-16 1E G LEE MS 0.31802660 0.26062018 PALMETTO S.
TUCKER 16-41 4. G LEE MS 0.00000000 0.03001337 0.08960000 0.07840000 PALMETTO S.
TUCKER 9-13 G LEE MS 0.00000000 0.00762121 PALMETTO S.
BROOKHAVEN FIELD UNIT G LINCOLN MS 0.00069732 BROOKHAVEN
HARTMAN-LONDON ET AL G LINCOLN MS 0.02173600 0.02674373 ARLINGTON
</TABLE>
Page 10
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
JACOB GLOSTER #1 L MARION MS 0.04572100 0.03302951 COLUMBIA
SARTOR #1 L MONROE MS 0.09375000 0.07549049 BUTTAHATCHIE RIVER
SLATON UNIT #4-16 L PIKE MS 0.00833330 0.00677080
SLATON UNIT #4-16 L PIKE MS 0.00666670 0.00507541
OLIVE FIELDWIDE UN G PIKE & AMITE MS 0.01354000 0.00949181 OLIVE
D'LO ROYALTIES #1 L RANKIN MS 0.00046820 0.00037710 THOMASVILLE
D'LO ROYALTIES #2 L RANKIN MS 0.00083700 0.00078438 THOMASVILLE
KENNEDY #1 APO L RANKIN MS 0.01538340 0.01081048 THOMASVILLE
HOUSTON G.L. #1 L SCOTT MS 0.01800000 0.01431503 OTHO
D WOMACK L SIMPSON MS 0.02354850 0.01143487 MAGEE
VYRON WOMACK #1-3 L SIMPSON MS 0.00898668 0.00596636 MAGEE
WELLS B L SIMPSON MS 0.02614820 0.02114650 MAGEE (WOMACK SAND)
WELLS UNIT L SIMPSON MS 0.00007960 MAGEE
HOUGH #5-13 L SMITH MS 0.01108800 0.00797836 MAGEE SOUTH
MARY JAMES #1 L SMITH MS 0.06203050 0.03224151 TALLAHALA
BOYD 34-10 G WALTHALL MS 0.00000000 0.00403077 N. DARBUN
GARTMAN VL #1 L WALIHALL MS 0.01959790 0.01361558 KOKOMODARBUM
STRITE G WALThALL MS 0.00000000 0.01697178 N. DARBUN
STRITE 3-4 G WALTHALL MS 0.00000000 0.04075400 N. DARBUN
STRITE 3-6 G WALTHALL MS 0.09000000 0.06750000 N. DARBUN
MORRISON, JU #1 L WAYNE MS 0.63259250 0.28009800 N. WAUSAU
SHOEMAKE 17-16 #2 L WAYNE MS 0.17611600
SHOEMAKE 17-7 #1 L WAYNE MS 0.17611600
ROSENBLATT BARNSDALE G WILKINSON MS 0.00548370 0.00479820 FORT ADAMS NORTH
ROSENBLATT MINTER G WILKINSON MS 0.00548370 0.00479820 FORT ADAMS NORTH
ROSENBLATT MINTER B G WILKINSON MS 0.00548370 0.00479820 BELMONT LAKE
ROSENBLATT MINTER B G WILKINSON MS 0.00548370 0.00479820 FORT ADAMS NORTH
ROSENBLATT PARKER G WILKINSON MS 0.00548370 0.00479820 BELMONT LAKE
ROSENBLATT WALKER G WILKINSON MS 0.00548370 0.00479820 BELMONT LAKE
ROSENBLATT WALKER G WILKINSON MS 0.00548370 0.00479820 BELMONT LAKE
ROSENBLATT WALKER G WILKINSON MS 0.00548370 0.00479820 BELMONT LAKE
BRUMFIELD A#1,4,5 & 6 L YAZOO MS 1.00000000 0.76518750 TINSLEY
PERRY SAND WATERFLOOD UNIT L YAZOO MS 0.08044845 0.06227833 TINSLEY
SC CB SU TWEEDY SO CTBK SND GSI GLACIER MT 0.00218000 0.00168880 CUT BANK
ANDERSON 1-30 G RICHLAND MT 0.06429000 0.05180443 SIOUX PASS
ANDERSON 1-32 G RICHLAND MT 0.01743000 0.01404683 FOUR MILE CREEK WEST
</TABLE>
Page 11
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GLATTER 1-25 G RICHLAND MT 0.09229000 0.07436482 SIOUX PASS
STATE 16-3 G RICHLAND MT 1.00000000 0.76131250 0.50000000 0.40625000 TWO WATERS
LARSEN FARMS UN #1-2 L ROOSEVELT MT 0.00080284 0.00050449 BAINVILLE II
FEDERAL UNIT #36-44 L SHERIDAN MT 0.00009570 0.00006800
ST OF MONTANA 1-16 G SHERIDAN MT 0.55632000 0.41701988 COMERTOWN S.
HAMILL UNIT 1,2,3,4 L BILLINGS ND 0.00000781 0.00000643 T R RANCH
HOLTE-BK ND 1-3 B,D,W G BURKE ND 0.18933000 0.15245385 STONEVIEW
SONFLOT HEIRS 1-30 BAKKEN
FRM. G BURKE ND 0.02892682 0.02489600 STONEVIEW
SONFLOT HEIRS 1-30 RED
RIVER FRM. G BURKE ND 0.03856107 0.03318776 STONEVIEW
HANSEN UNIT #1-11A L DUNN ND 0.04322500 0.02913506 WOLF BAY
CLEAR CREEK-MADISON NE SW G MCKENZIE ND 0.00191270 0.00112937 CLEAR CREEK
JOHNSON UNIT #1-31 L MCKENZIE ND 0.00013750 0.00009948 INDIAN HILL
WANG UNIT #1-30 L MCKENZIE ND 0.00008250 0.00005542 INDIAN HILL
SORENSON #11-13 G MCKENZIE ND 0.00000000 0.02976373 UNION CENTER
BEAVER LODGE DEVONIAN UNIT G WILLIAMS ND 0.00000000 0.01273742 BEAVER LODGE
BEAVER LODGE-MADISON UNIT G WILLIAMS NO 0.00000000 0.00434483 BEAVER LODGE
BEAVER LODGE-ORDOVICIAN
UNIT G WILLIAMS ND 0.00000000 0.01356496 BEAVER LODGE
SOUTH DALLAS l G CHAVES NM 0.50000000 0.40993750 PECOS SLOPE, S.
EXXON FEDERAL COM l L EDDY NM 0.07250000 0.05485000 WHITE CITY
INDIAN HILLS COM l G EDDY NM 0.00000000 0.16666667 0.06250000 0.04835417 CEMETARY
SHELL FEDERAL NO.1 G EDDY NM 0.00000000 0.00625000 0.00625000 0.05885420 CEMETARY
SYLVITE FEDERAL l GSI EDDY NM 0.00000000 0.00000000 0.08125000 0.06713280 BURTON FLAT, E.
GRACE FEDERAL ll G LEA NM 0.18611000 0.13732840 QUAIL RIDGE
JACKSON UNIT 2 G LEA NM 0.00000000 0.00975996 0.02500000 0.02194000 JOHNSON RANCH
JACKSON UNIT 3 G LEA NM 0.08333000 0.68000000 JOHNSON RANCH
STATE 32-3V L LEA NM 0.35000000 0.26645906 BAUM
STATE FEDERAL 6-2 L LEA NM 0.50000000 0.38443737 BAUM
STATE FEDERAL 6-3 L LEA NM 0.48750000 0.37481023 BAUM
STATE UTP #2 L LEA NM 0.15094400 0.11491488 ANDERSON RANCH
WALLEN #1 L LEA NM 0.50000000 0.33966250 DRUNKARD
CHARLOTTE 9A l L ALFALFA OK 0.00403640 0.00308649
FORSYTHE 2 L ALFALFA OK 0.37670734 0.30874700 RINGWOOD
BELL UNIT #1-26 L BEAVER OK 0.00628542 0.00235200 IVANHOE
BERGEN TRUST UNIT #1-4 L BEAVER OK GRAND VALLEY E.
CARLISLE #1-32 L BEAVER OK 0.00000346 0.00502460 0.00350340 MOCANE-LAVERNE
HEGLIN #1-5 L BEAVER OK 0.00001870 MOCANE-LAVERNE
</TABLE>
Page 12
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HODGES #1-4 L BEAVER OK 0.02500000 0.01984430 MOCANE-LAVERNE
POTTER 3-26 L BEAVER OK 0.48333500 0.36492100 MOCANE-LAVERNE
ROBINSON UNIT #l-26 L BEAVER OK 0.00883912 0.00754584 0.0l226240 0.OO897055 IVANHOE
SIMMONS #2-31 L BECKHAM OK 0.02789820 CARPENTER W
TAYLOR 1-25 L BECKHAM OK 0.00380858 ERICK GAS AREA
SOUTH
TAYLOR JOY U Ol L BECKHAM OK 0.00190400 CARPENTER
EBERHARDT#l L BLAINE OK 0.16666700 0.13541700 ALTONA
LAUBHAN-FRIESEN #1-32 L BLAINE OK 0.18186200 0.10877100 ELM GROVE
MEYER 18-A G BLAINE OK 0.12500000 0.10938000 CANTON, SW
MEYER 18-B G BLAINE OK 0.12500000 0.10938000 CANTON, SW
NICOLAI 1-32 G BLAINE OK 0.61594800 0.48951960 0.52905020 0.42045820 FAY, E.
OPAL #1 L BLAINE OK 0.13481100 0.08914290 ELM GROVE
OSMUS #1 L BLAINE OK 0.16666667 0.13794270 COOPER
STATE LEWIS l L BLAINE OK 0.12760400 0.10041992 ALTONA
WEBER #3 L BLAINE OK 0.16666700 0.13333300 OMEGA WEST
ACKER 1-33 G CADDO OK 0.06263000 0.04418414 BINGER, S.
COMPTON 1-33 G CADDO OK 0.04520000 0.03660000 . BINGER
JETT-STATE l G CADDO OK 0.06263000 0.04745000 BINGER,W.
MERIWEATHER UNIT #2-12 L CADDO OK 0.00239130 0.01116010 BRIDGEPORT
STOVER 1-33 G CADDO OK 0.06094000 0.05332000 BINGER, S.
BOSLER #1-2 L CANADIAN OK 0.08000000 MINCO EAST
BOSLER #2-2 L CANADIAN OK 0.05000000 MINCO
BOSLER #3-2 L CANADIAN OK 0.05000000 0.03850000 MINCO
BROWN #1-16 L CANADIAN OK 0.08330000 0.06666000 WATONGA-
CHICKASAW
BROWN #2-16 L CANADIAN OK 0.08330000 0.06666600 WATONGA
CYPERT #1-2 L CANADIAN OK 0.12500000 0.09814450 EDMOND W
HECKES 2 G CANADIAN OK 0.00000000 0.00000000 0.02082800 0.01822500 UNION CITY
HUFNAGEL#l-16 L CANADIAN OK 0.25000000 0.19164800 WATONGA
CHICKASHA
W. CALUMET
HUFNAGER,L, C. #8-1 L CANADIAN OK 0.04000000 PROSPECT
INLOW I G CANADIAN OK 0.00000000 0.00000000 0.02082800 0.01822500 UNION CITY
KROEKER #1-11 L CANADIAN OK 0.07358908 0.02250000 MINCO
KROEKER #2-11 L CANADIAN OK 0.06858910 0.02250000 MINCO
KROER,KER #3-11 L CANADIAN OK 0.07358910 MINCO
LAGALY 1-11 L CANADIAN OK 0.07358900 0.05519170 MINCO
NOVAK A 1-2 G CANADIAN OK 0.25000000 0.20313000 YUKON, NW
WEIR 1-3 G CANADIAN OK 0.02083000 0.01822000 UNION CITY
</TABLE>
Page 13
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CURTIS LEASE L CREEK OK 0.37500000 0.32812500 CUSHING
JACKSON BARNETT LEASE L CREEK OK 1.00000000 0.87500000 CUSHING
LINCOLN SCHOOL LEASE L CREEK OK 0.93750000 0.82031250 CUSHING
MASCHO LEASE L CREEK OK 0.93750000 0.82031250 CUSHING
BELLE, MATTIE 1-4 L CUSTER OK 0.29038500 0.22732680 CUSTER CITY NORTH
CLIFT #1-4 L CUSTER OK 0.02335900 MOOREWOOD NE
CLIFT #2-4 L CUSTER OK 0.02335900 MOOREWOOD NE
CLIFF #3-4 L CUSTER OK 0.02335900 MOOREWOOD NE
CLIFT #4-4 L CUSTER OK MOOREWOOD NE
CLIFT #4-5 L CUSTER OK MOOREWOOD NE
CLIFT #4-6 L CUSTER OK MOOREWOOD NE
DAVIS 7 FARMS #l-24 L CUSTER OK 0.00088880 CARPENTER
FANCHER #2-24 L CUSTER OK 0.00088880 0.00076999 HAMMON EAST
HOOPER #19-1 L CUSTER OK 0.04000000 KNOX
KILLHOFER #1-33 L CUSTER OK 0.01757800 MOOREWOOD NE
KILLHOFER #2-33 L CUSTER OK MOOREWOOD NE
KILLHOFER #3-33 L CUSTER OK MOOREWOOD NE
MAINON #1-23 L CUSTER OK 0.00078130 0.00075220 CLINTON EAST
MILLER 1-18 G CUSTER OK 0.18574000 0.14637000 STAFFORD
MURPHY 2-18 G CUSTER OK 0.00564000 0.00742000 0.00800510 0.00698200 CLINTON, E.
RAY #5-1 L CUSTER OK 0.01932900 MOOREWOOD NE
RAY #5-2 L CUSTER OK 0.01932900 MOOREWOOD NE
RAY #5-3 L CUSTER OK 0.01932900 MOOREWOOD NE
RAY #5-4 L CUSTER OK 0.01932900 MOOREWOOD NE
RAY #6-6 L CUSTER OK 0.01932900 MOOREWOOD NE
BOUCHER #1-32 L DEWEY OK 0.01282200 OAKWOOD NW
MILLIE 2-20 G DEWEY OK 0.25000000 0.21875000 PUTNAM
RED CLOUD 26-1 L DEWEY OK 0.25000000 0.19316406 CANTON NW
WION B1-2 L DEWEY OK 0.26973760 0.20788800 STUART RANCH
BARNES #1-22 L ELLIS OK 0.15000000 0.11494700 TOUZALIN
GIBBS 0 G UNIT l G ELLIS OK 0.15656000 0.13699000 SHATTUCK, W.
HAINES 1-7 G ELLIS OK 0.08000000 0.06000000 MOCANE-LAVERNE
WAUHOB #1-32 L ELLIS OK 0.75000000 0.59370200 GAGE
HENDRIE 3-21 L GARFIELD OK 0.40448140 0.14941400 HUNTER SOUTH
MILLER 1-30 L GARFIELD OK 0.20000000 0.20000000 SOONER TREND
GIBSON 1-30 G GARVIN OK 0.27104000 0.19244000 GOLDEN TREND
</TABLE>
Page 14
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
KENNEDY 1-5 G GARVIN OK 0.02087000 0.01669000 GOLDEN TREND
WELLS 1-28 L GARVIN OK 6.00277507 GOLDEN TREND
DUKE #1-A L GRADY OK HARNESS
DUKE B#l-22 L GRADY OK CHITWOOD
FITZGERALD 11-1 L GRADY OK UNION CITY
HOLLAND UNIT #1-5 L GRADY OK 0.00016360 0.00011000 KNOX
HOLLAND UNIT #2-5 L GRADY OK 0.00016360 0.00011000 KNOX
HOLLAND UNIT#4-5 L GRADY OK 0.00016360 0.00011000 KNOX
JERRY 1-5 L GRADY OK 0.00016360 X
MISER UNIT #2-5 L GRADY OK 0.00116010 X MIDDLEBERG SE
GEBHARDT-ZOLLINGER #1 G HARPER OK 0.03125000 0.02734000 MOCANE-LAVERNE
GEBHARDT-ZOLLINGER #2 G HARPER OK 0.03125000 0.02734000 MOCANE-LAVERNE
GENEVIEVE UNIT #1-33 L HARPER OK 0.00001706 MOCANE-LAVERNE
STATE UNIT #1-24 L HARPER OK 0.00002500 MOCANE-LAVERNE
HUNT UNIT #1-35 L HASKELL OK 0.00800000 0.00700000 KINTA-SPIRO
SAPPINGTON UNIT #1-22 L HASKELL OK 0.00125290 0.00178555 KINTA
SNOW UNIT #1-13 L HAS KELL OK 0.00038430 0.00031790 KINTA
SNOW UNIT #2-13 L HASKELL OK 0.00038430 0.00031790 0.00008250 0.00006020 KINTA
LAMBETH #1 L JEFFERSON OK 0.20000000 0.20000000 GILMER SOUTH
MURPHY #12-24 L JEFFERSON OK 0.20000000 0.14195240 ALLEE NW
HENLEY/JULE 13-1 G KINGFISHER OK 0.00625000 0.00469000 SOONER TREND
STOUT 1-17 G LEFLORE OK 0.07910000 0.06920000 RED OAK-NORRIS
DARLING UNIT #1-11 L LOVE OK 0.00119050 0.00086260 PIKE W
LEHENBAUER #1-6 L MAJOR OK 0.62302500 0.46726877 RINGWOOD
COLPITT #1 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
COLPITT #2 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #1 L NOWATA OK 1.00000000 0.78260000 W. WATOVA
GLASS #2 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #3 L NOWATA OK 1.00000000 0.78250000 w. WATOVA
GLASS #4 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #5 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #6 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #7 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #8 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
GLASS #9 L NOWATA OK 1.00000000 0.78250000 W. WATOVA
HENDRICKS #1 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
</TABLE>
Page 15
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HENDRICKS #10 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #11 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #12 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #2 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #3 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #4 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #5 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #6 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #7 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #8 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
HENDRICKS #9 L NOWATA OK 1.00000000 0.78250000 W WATOVA WF
JORDAN #1 L NOWATA OK 1.00000000 0.78250000 WEST WATOVA
JORDAN #2 L NOWATA OK 1.00000000 0.78250000 WEST WATOVA
JORDAN #3 L NOWATA OK 1.00000000 0.78250000 WEST WATOVA
JORDAN #4 L NOWATA OK 1.00000000 0.78250000 WEST WATOVA
JORDAN #5 L NOWATA OK 1.00000000 0.78250000 WEST WATOVA
LESLIE JANE #1 L OKLAHOMA OK 0.23123500 0.18787800 ORCHARD CITY NE
POLLOCK L OKLAHOMA OK 0.36018200 0.28836740 ORCHARD CITY NE
BOYCE #34-2 L PAYNE OK 0.04921630 0.02191220 PARADISE
GRAHAM #33-1 L PAYNE OK 0.02088200 0.01917770 PARADISE
GRAHAM #33-5 L PAYNE OK 0.15274870 0.07880320 PARADISE
GRAHAM #33-6 L PAYNE OK 0.15475810 0.12909600 PARADISE
GRAHAM #33-7 L PAYNE OK 0.09717500 PARADISE
PARADISE BARTS. SU L PAYNE OK 0.05416790 0.04166420 PARADISE
PRICE 1-32 G PITTSBURG OK 0.07813000 0.06836000 FEATHERSTON
SARKEY FDN UN 3 G PITTSBURG OK 0.25000000 0.21875000 FEATHERSTON, NW
USA l G PITTSBURG OK 0.09375000 0.07523000 BLOCKER, S.
USA 4 G PITTSBURG OK 0.09375000 0.07523000 BLOCKER, S.
WHITE FUEL UNIT #3-34 L PITTSBURG OK KINTA
JUDITH L./GARLAND L POTOWATOMIE OK 0.00017467 SHAWNEE SW
AUSTIN/PERRY L POTTAWATOMIE OK 0.00146200 0.00102340 SHAWNEE SW
BELL #l,2,3,4-18 L POTTAWATOMIE OK 0.00426158 0.00480620 SHAWNEE SW
BURNS #1-18 L POTTAWATOMIE OK 0.01405395 0.01141880 SHAWNEE NW
CASEY #1 L POTTAWATOMIE OK 0.01221300 0.00980100 SHAWNEE SW
DALEY#1 L POTTAWATOMIE OK 0.01711600 0.01395100 SHAWNEE
DEXTER #18-1 L POTTAWATOMIE OK 0.00946941 0.00709850 SHAWNEE SW
</TABLE>
Page 16
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FERGUSON L POTTAWATOMIE OK 0.02028400 0.01658700 SHAWNEE SW
HOFFMANDI #1 L POTTAWATOMIE OK 0.01557300 0.01249700 SHAWNEE
HOFFMAN #1-A L POTTAWATOMIE OK 0.01420170 0.01141080 KNOX
JACKIE SUE/SCOTT L POTTAWATOMIE OK 0.00140750 0.00092313 SHAWNEE
KELLEY #1 L POTTAWATOMIE OK 0.00878900 0.00705300 SHAWNEE
KIT #1 & #2 L POTTAWATOMIE OK 0.00450000 0.00365600 SHAWNEE
LANE #1 L POTTAWATOMIE OK 0.00018500 0.00015000 SHAWNEE
MARCIA SUE/TAYLOR L POTTAWATOMIE OK 0.00150130 0.00105090 SHAWNEE
MILLER #1-7 L POTTAWATOMIE OK 0.20000000 0.20000000 CENTERPOINT
NIX L POTTAWATOMIE OK 0.00191454 0.00157500 SHAWNEE
PARKER #1 & #3 L POTTAWATOMIE OK 0.01112120 0.00868450 SHAWNEE
PATSY/WHITNEY L POTTAWATOMIE OK 0.00071620 0.00056070 SHAWNEE
RICKI/FERN L POTTAWATOMIE OK 0.00146200 0.00102340 SHAWNEE
ROCK ISLAND #1 L POTTAWATOMIE OK 0.01341080 0.01193230 SHAWNEE
ROUNDHOUSE #3 & #4 L POTTAWATOMIE OK 0.01027600 0.00894500 SHAWNEE
SHAWNEE TOWNSITE SKINNER UNIT L POTTAWATOMIE OK 0.00529741 SHAWNEE
TARON #1 L POTTAWATOMIE OK 0.01893800 0.01528600 SHAWNEE
TEDRA/DUD/TEDRA2/DUDE2 L POTTAWATOMIE OK 0.00120990 0.00084690 SHAWNEE
WILD WILLY #1,2 & CHASE L POTTAWATOMIE OK 0.02330078 0.01352024 SHAWNEE
WILD WILLY #3 L POTTAWATOMIE OK 0.00150130 0.00105090 SHAWNEE
WD/SERITA/JUDY/J.CASH L POTTAWATOMIE OK 0.01524500 0.01146660 0.01372050 0.01070640 SHAWNEE
BOGGES 1-29 G ROGER MILLS OK 0.19720000 0.16563000 0.18750000 0.15820000 STRONG CITY, S.
JUNE 1-7 G ROGER MILLS OK 0.21000000 0.16230000 BERLIN, NW
LOVETT A-1 G ROGER MILLS OK 0.03846000 0.03365000 STRONG CITY
MICHELLE #1-35 L ROGER MILLS OK CHEYENNE WEST
SOUTH HIGGINS ATOKA UNIT L ROGER MILLS OK 0.00430040 0.00140120 BISHOP
THORNTON #2-17 L ROGER MILLS OK 0.04875000 0.03797800 CARPENTER
TRENT UNIT 1-24 L ROGER MILLS OK 0.01160670 0.00839180 CARPENTER NE
WEEKS UNIT #1-31 L SEQUOYAH OK 0.00507920 0.00384200 PENO
BOYCE #1-2 L STEPHENS OK STAGE SAND NE
RICHARDSON UNIT#1-26 L STEPHENS OK 0.00617244 0.00486887 0.01134490 0.00820670 HOPE SW
RUSSELL #l-7 L STEPHENS OK 0.06250000 0.04687500 MARLOW W
SMITH UNIT #1-12 L STEPHENS OK 0.01442665 0.01000000 MARLOW W
ZUMWALT UNIT #1-30 L STEPHENS OK 0.00078120 0.00063335 BRAY SE
ALEXANDER 1-11 G WASHITA OK 0.02969000 0.02269038 SENTINEL, W.
GREEN#2-1 L WASHITA OK 0.02515990 CANUTE NORTH
</TABLE>
Page 17
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MEDDERS 4-1 L WASHITA OK 0.02425070 0.01794546 CANUTE NORTH
TOELLE #2-1 L WASHITA OK 0.06250000 0.04597270 CANUTE NORTh
BETTY JO #36-1 L WOODS OK E. FRITZLEN
GERLOFF 2 G WOODS OK 0.30479000 0.24734000 FREEDOM, N.
STEWART, WISE UNIT L WOODS OK 0.32051450 0.24979790 AVARD NW
ALUM CREEK UNIT L FALL RIVER SO 0.07515760 X
FEDERAL #10-3 L FALL RIVER SD 0.07515800 0.06567220
FEDERAL #2-5 L FALL RIVER SD 0.07515800 0.06567220 ALUM CREEK
FEDERAL #3-10 L FALL RIVER SD 0.04725000 0.04136000 ALUM CREEK
FEDERAL #3-14 L FALL RIVER SD 0.07515800 0.06567220
FEDERAL #3-15 L FALL RIVER SO 0.07515800 0.06567220 ALUM CREEK
FEDERAL #3-16 L FALL RIVER SD 0.07515800 0.06567220 INDIAN CREEK
FEDERAL #3-3 L FALL RIVER SD 0.07515800 0.06567220
FEDERAL #3-4 L FALL RIVER SD 0.07516800 0.06657220
FEDERAL #3-7 L FALL RIVER SD 0.07515800 0.06567220 ALUM CREEK
FEDERAL #31-6 L FALL RIVER SD 0.07515800 0.06567220 ALUM CREEK
FEDERAL #3-9 L FALL RIVER SD 0.07515800 0.06567220 ALUM CREEK
HINZIE, C.M. L ANDERSON TX 0.34392500 0.25552390 6018 D'ARC
HUNT-CLAYTON 2 G BORDEN TX 0.12500000 0.09083028 GOOD, SE
BELL HENRY l G BURLESON TX O.4OOOOOOO 0.28177700 CALDWELL
CHANCE ESTATE UN l G BURLESON TX 0.30000000 0.21131697 GIDDINGS
ELSIK-GEISENSCHLAG UNIT l G BURLESON TX 0.45000000 0.31994489 GIDDINGS
ELSIK-WEICHERT UNIT G BURLESON TX 0.45000000 0.32981107 GIDDINGS
GIESENSCHLAG-WUENSCHER (GW G BURLESON TX 0.45000000 0.31834260 GIDDINGS
UNIT 1)
KOVAR-PORTER UNIT G BURLESON TX 0.000984225 GIDDINGS
L PORTER GAS UNIT G BURLESON TX 0.00096605 GIDDINGS
MOUND PRAIRIE UN l G BURLESON TX 0.45000000 0.31834575 GIDDINGS
ORSAG, J.M. UNIT G BURLESON TX 0.01959780 0.01232614 GIDDINGS
THARP UNIT l G BURLESON TX 0.40000000 0.28249580 GIDDINGS
STATE TRACT 562-L 1X L CALHOUN TX 0.03748000 MATAGORDA BLOCK
FROST ESTATE #1 L CHAMBERS TX 0.58007505 0.42297139 WILLOW SLOUGH N
LAND GAS UNIT G CHEROKEE TX 0.00548370 0.00449591 SW BULLARD
FOGG VAIL TRACT3 L CLAY TX 0.05000000 0.03696776 ANT HILL
LITTLEFIELD l & 2 G COKE TX 0.12500000 0.09354752 BRONTE
PADGITT #1 L CROCKETT TX 0.25000000 0.07150000 PADGITT
PADGITT #2-UL L CROCKETT TX 1.00000000 COUCH WOLF CAMP
</TABLE>
Page 18
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PADGITT, JAMES T 2 L L CROCKETT TX 0.08203130 0.06245145 COUCH WOLF CAMP
PADGITT, JAMES T 4 L CROCKETT TX 0.09375000 0.07148440 PADGITT
PIERCE VI 10 1 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 10 2 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 10 3 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 10 5 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 10 6 G CROCKETT TX 0.00000000 0.02284032 0.22500000 0.18281000 OZONA
PIERCE VI 2 1 G CROCKETT TX 0.75000000 0.55098406 OZONA
PIERCE VI 2 2 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 2 5 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 2 6 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 2-4 G CROCKETT TX 0.00000000 0.00000000 0.25000000 0.19032781 OZONA
PIERCE VI 3-2 G CROCKETT TX 0.25000000 0.19032781 OZONA
PIERCE VI 9 l G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE VI 9 3 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE HENDERSON 7 1 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE-HENDERSON 7 2 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE-HENDERSON 7 3(307) G CROCKETT TX 0.00000000 0.04392156 OZONA
PIERCE-HENDERSON 7 4 G CROCKETT TX 0.00000000 0.04392156 0.18750000 0.15234380 OZONA
PIERCE-HENDERSON 7 5 G CROCKETT TX 0.18750000 0.15234000 OZONA
PIERCE-HENDERSON 7A l G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE-HENDERSON 8 1 G CROCKETT TX 0.75000000 0.57098406 OZONA
PIERCE-HENDERSON 8 2 G CROCKETT TX 0.00000000 0.04392156 0.18750000 0.15234380 OZONA
PIERCE-HENDERSON 8 3 G CROCKETT TX 0.00000000 0.02283969 OZONA
BRENNAND, M.L. #7 G DAWSON TX 0.25000000 0.21875000 MUNGERVILLE
WASSON, I.E. #1 L DAWSON TX 0.20000000 0.20000000 ACKERLY
CARPENTER G FREESTONE TX 0.00032270 NAN-SU-GAIL
CARPENTER #5 GAS UNIT G FREESTONE TX 0.00000000 0.00006676 NAN-SU-GAIL
DUNN 2-A G FRIO TX 0.30000000 0.21644700 0.27000000 0.20790000 PEARSALL
DUNN A M l G FRIO TX 0.27000000 0.19480230 PEARSALL
FRANKS 8900 SU UNIT G GALVESTON TX 0.00076000 0.00059501 FRANKS
LITTLE WHIT l G GLASSCOCK TX 0.25000000 0.17568750 BIG WHIT/COBRA
LITTLE WHIT 4 G GLASSCOCK TX 0.25000000 0.17568750 BIG WHIT/COBRA
WRIGHT MINERALS #1 G GOLIAD TX 0.46250000 0.32987495 SLICK S.
LOGSTON, KLAS #1 L GRAYSON TX 0.07291400 0.04884862 SOUTHMAYD N
MARTIN #1 L GRAYSON TX 0.10937500 0.07686341 SOUTHMAYD N
</TABLE>
Page 19
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ROBERTSON BLUESTEM #1 L GRAYSON TX 0.10812500 0.07598503 SEPTEMBER
WALSH 3-3 L GRAYSON TX 0.10937500 0.06968938 SOUTHMAYD
WALSH 4-4 L GRAYSON TX 0.10937500 0.06968938 SOUTHMAYD
COLDWELL DALLAS G GREGG TX 0.00000000 0.00885184 EAST TEXAS
HARRISON -C- G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
HARRISON C-1 G GREGG TX 0.00006420 WILLOW SPRINGS
HARRISON, P.D. E G.U. G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
HARRISON, P.D. G GREGG TX 0.00004300 WILLOW SPRINGS
E1-3,E5-9,E10U/L
JOHNSON G GREGG TX 0.00064053 EAST TEXAS
KILLINGSWORTH B G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
KILLINGSWORTH B2-4 G GREGG TX 0.00001490 WILLOW SPRINGS
LATHROP G GREGG TX 0.00000000 0.00018450 EAST TEXAS
LATHROP -B- G GREGG TX 0.00000000 0.00018450 EAST TEXAS
LATHROP A,B,C G GREGG TX 0.00000000 0.00018450 EAST TEXAS
LATHROP F.K. G GREGG TX 0.00000000 0.00018450 EAST TEXAS
LATHROP F.K.2,3,4,5,6 G GREGG TX 0.00013080 WILLOW SPRINGS
LATHROP GAS UNIT G GREGG TX 0.00000000 0.00011880 WILLOW SPRINGS
LATHROP, F.K. GAS UNIT G GREGG TX 0.00000000 0.00011880 WILLOW SPRINGS
LATHROP, F.K. GAS UNIT G GREGG TX 0.00000000 0.00011880 WILLOW SPRINGS
LATHROP, F.K. GAS UNIT G GREGG TX 0.00000000 0.00011880 WILLOW SPRINGS
LATHROP, F.K. GAS UNIT G GREGG TX 0.00000000 0.00011880 WILLOW SPRINGS
LATHROP, F.K. GAS UNIT G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
LEE -B- GAS UNIT 1C G GREGG TX 0.00000000 0.00208033 WILLOW SPRINGS
LEE -G- G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
LEE C G GREGG TX 0.00091744 WILLOW SPRINGS
LEE GAS UNIT B #3 G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
LEE GAS UNIT B #4 G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
LEE GAS UNIT B #5 G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
LEE GAS UNIT B #6 G GREGG TX 0.00000000 0.00030110 WILLOW SPRINGS
LEE UNIT G GREGG TX 0.001554015 WILLOW SPRINGS
LEE, T.W. G GREGG TX 0.00000000 0.00629790 EAST TEXAS
LEE, T.W. G GREGG TX 0.00000000 0.00028213 EAST TEXAS
LEE, TAYLOR W G GREGG TX 0.00000000 0.00479820 EAST TEXAS
SMITH, A G GREGG TX 0.00000000 0.00237732 EAST TEXAS
SNODDY, THAD -C- G GREGG TX 0.00000000 0.03098187 EAST TEXAS
SORRELL G GREGG TX 0.00000000 0.00275243 EAST TEXAS
</TABLE>
Page 20
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BLACK #3-234 L HANSFORD TX 0.09500000 0.11224089 STAMPER
LILLIE 2-200 L HANSFORD TX 0.11428570 0.07425725 SHAPLEY
THORMODSGAARD #1 L HANSFORD TX 0.10000000 0.07425725 STAMPER
THORMODSGAARD #2 L HANSFORD TX 0.10000000 0.07425725 STAMPER
THORMODSGAARD #3 L HANSFORD TX 0.10000000 0.07125725 STAMPER
THORODSGAARD #4-199 L HANSFORD TX 0.10000000 0.07125725 STAMPER
BERGSON 1 ELLA G HARRISON TX 0.50000000 0.40993750 HALLSVILLE N.E.
FUTRELL 1 (3?) G HARRISON TX 0.00000000 0.11712500 HALLSVILLE N.E.
LEE 2-5 G HEMPHILL TX 0.03125000 0.02196057 ALLISON PARKS UP
MEEK JP 1 G HEMPHILL TX 0.62500000 0.44490705 0.22944430 0.40222390 BUFFALO WALLOW
HINTON #1 G HENDERSON TX 0.00005958 TRI CITIES
OPELIKA GAS UNIT (MULTI
WELLS) G HENDERSON TX 0.00000000 0.00006462 OPELIKA
TCGU7 (LEOPARD C.W.-1) G HENDERSON TX 0.00000000 0.00146963 TRAVIS PEAK
TCGU7 (LEOPARD C.W.-2) G HENDERSON TX 0.00000000 0.00146963 TRAVIS PEAK
TCGU7 (LEOPARD L.L.-2) G HENDERSON TX 0.00000000 0.00146963 TRAVIS PEAK
TCGU7 (BAKER MAUDE-10) (SI) G HENDERSON TX 0.00000000 0.00161030 TRAVIS PEAK
TCGU7 (BAKER MAUDE-11) G HENDERSON TX 0.00000000 0.00146963 TRAVIS PEAK
TCGU7 (BAKER MAUDE-7) UNEC G HENDERSON TX 0.00000000 0.00455500 TRAVIS PEAK
TCGU7 (BAKER MAUDE-8) G HENDERSON TX 0.00000000 0.00146963 TRAVIS PEAK
TCGU7 (BAKER MAUDE-9) G HENDERSON TX 0.00000000 0.00146963 TRAVIS PEAK
TCGU8 (BAKER J.D.-1) G HENDERSON TX 0.00000000 0.00150890 TRAVIS PEAK
TCGU8 (WALLACE T.H.-1) G HENDERSON TX 0.00000000 0.00150890 TRAVIS PEAK
TCGU8 (WALLACE T.H.-2) G HENDERSON TX 0.00000000 0.00150890 TRAVIS PEAK
TCGU8 (WALLACE T.H.-3) G HENDERSON TX 0.00000000 0.00150890 TRAVIS PEAK
TCGU8 (WALLACE T.H.-4) G HENDERSON TX 0.00000000 0.00150890 TRAVIS PEAK
TCGU8 (WALLACE T.H.-5) G HENDERSON TX 0.00000000 0.00150890 TRAVIS PEAK
HINTON #2 G HENDERSON TX 0.00075443 TRI CITIES
DAVIS, BERT G HOPKINS TX 0.00331120 0.00331120 NELTA
ALABAMA FERRY UNIT (BETTS) G HOUSTON TX 0.00040000 0.00032000 ALABAMA FERRY
WEST MOORE UNIT G HOWARD TX 0.06864000 0.05622427 MOORE
AFNU G LEON TX 0.00115400 0.00111322 ALABAMA FERRY
ANDREWS, E.B. JR. UNIT A-1 G LEON TX 0.01562500 0.01188810 HALLIDAY
GUINN GAS UNIT NO. 1 G LEON TX 0.07245100 0.04582391 JEWETT
MCCORMICK, CHARLES G LEON TX 0.09000000 0.06750000 JEWETT
MONTGOMERY, J.R. GU (SI
8/94) G LEON TX 0.07245100 0.05593605 JEWETT
BUSSARD, JESS #l L UPSCOMB TX 0.01250000 0.01024828 HIGGINS NW
</TABLE>
Page 21
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CROCKER GU #1-1 L LIVE OAK TX 0.09375000 0.06588298 OAKVILLE
LINEBERRY GU l 2 G LOVING TX 0.02955OOO 0.02216000 LINEBERY
SMITH-SCARBOROUGH . B2 G LOVING TX 0.08760000 0.06559000 WHEAT
OSR-HALLIDAY UNIT G MADISON TX 0.00000000 0.00016427 HALLIDAY
WARD #l (ZADECK) L MARION TX 0.04193250 0.03128343 RODESSA-RUBY
PATTON #1-55 L MARTIN TX 0.25000000 0.17861563 ROSE PETAL
ST. LSE. 485-L SE/4 L MATAGORDA TX 0.00955200 MATAGORDA ISLAND
ST. LSE. 485-L SW/4 #l L MATAGORDA TX 0.00468500 MATAGORDA ISLAND
STATE TRACT 485-L #6L L MATAGORDA TX 0.00937835 MATAGORDA ISLAND
STATE TRACT 485-L #8 L MATAGORDA TX 0.00955200 MATAGORDA ISLAND
STATE TRACT 485-L 3 &3L L MATAGORDA TX O.OO935126 MATAGORDA ISLAND
TALBERT #2 L NUECES TX 0.03438649 0.02250266 CORPUS CHRISTI WEST
TALBERT #3 L NUECES TX 0.03602670 CORPUS CHRISTI WEST
ALBERT UNIT #2-31 L OCHILTREE TX 0.00131250 0.00094290 0.00009380 0.00007690 BOOKER N.
HERRINGION A l L OCHILTREE TX 0.25000000 0.20176608 ELLIS RANCH
WELLS GAS UNIT 2-T G PANOLA TX 0.20622000 0.16907000 WASKOM
FROM ME SECTION 106 G PECOS TX 0.00331120 0.00103119 APCO-WARNER
FROM ME, ED El AL -2- G PECOS TX 0.00331120 0.00331120 APCO-WARNER
DAVIS WIRT #1 L POLK TX 0.20000000
FEENEY HILL GAS UNIT #l-Y G RAINS TX 0.00000000 0.00519828 LEATHERMAN CREEK
HOOPER, C #IA L RAINS TX 0.01264650 0.01007210 BRIGHT STAR
HUDDLESTON C.L. #1 G RAINS TX 0.00000000 0.00426794 GINGER SE
HUDDLESTON C.L #2 G RAINS TX 0.00000000 0.00426794 GINGER SE
B1111S, W.H. #l L REEVES TX 0.12462277 0.09487662 ARNO
MANILER 2-108 L ROBERTS TX 0.25000000 0.23740000 MENDOTA NW
HOLMES G RUSK TX 0.00331120 0.00331120 WALKERS CHAPPEL
MASON, R- G "A" G RUSK TX 0.00063238 EAST TEXAS
LLOYD #18-1 L SCHLEICHER TX 0.94000000 0.65177720 BUTLER
LON DIAMOND M UN G SCURRY TX 0.00076000 0.00066000 DIAMOND M
SACROC UNIT G SCURRY TX 0.00000000 0.00009170 KELLY-SNYDER
CORLEY #l L SMITH TX 0.00059350 KELLY-SNYDER
DICKERSON, W J #1 L SMITH TX 0.00018310 OVERTON
HILLIARD,WARREN ESTATE l G SMITH TX 0.05366000 0.03756940 CHAPEL HILL
PERRY GAS UNIT #l L SMITH TX 0.00886450 0.00727140 CHAPEL HILL
BARBEE GU#1 L UPSHUR TX 0.00619615 0.00580618 ROSEWOOD
BARBEE GU #2 L UPSHUR TX 0.00819500 0.00580618 ROSEWOOD
</TABLE>
Page 22
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BOGEL G.U. 2 #1 L UPSHUR TX 0.00040200 0.00037670 ROSEWOOD
BOGEL G.U. 2 #2 L UPSHUR TX 0.00052551 0.00044715 ROSEWOOD
COYLE, NL GU #l L UPSHUR TX 0.02476000 0.02040786 GILMER
CRAIG, WD #1 L UPSHUR TX -0- 0.00002000 GILMER S
CRAIG, WD #2 L UPSHUR TX -0- 0.00002000 GILMER S
GLADEWATER GU #15-l L UPSHUR TX 0.00048286 GLADEWATER
LANDERS UNIT #1 L UPSHUR TX 0.00324605 0.00266073 GILMER SOUTH
LANDERS UNIT #2 L UPSHUR TX 0.00542860 0.00427123 GILMER SOUTH
LANDERS UNIT #3 L UPSHUR TX 0.00324605 0.00266075 GILMER SOUTH
N.L. COYLE L UPSHUR TX 0.02476010 0.02040786 GILMER (COTTON VALLEY)
ON WHEELER #3 L UPSHUR TX 0.01338648 0.01045900 GILMER (COTTON VALLEY)
ON WHEELER #4 L UPSHUR TX 0.01338648 0.01045900 GILMER (COTTON VALLEY)
ON WHEELER UNIT #l L UPSHUR TX 0.01338648 0.01068030 0.01221500 0.01045900 GILMER (COTTON VALLEY)
ON WHEELER UNIT #2 L UPSHUR TX 0.01338648 0.01068030 0.01221500 0.01045900 GILMER (COTTON VALLEY)
SNOW J E UNIT #2 L UPSHUR TX 0.00653275 0.00189315 GILMER (COTTON VALLEY)
SNOW, JE #3 & #4 L UPSHUR TX 0.03479000 0.02820644 GILMER S
SNOW, JE GU #1 L UPSHUR TX 0.03479000 0.02642945 GILMER S
AMACKER VT 106 L UPTON TX 0.00505980 AMACKER-TIPPETT
BENEDUM SPRABERRY UN G UPTON TX 0.00084000 0.00073000 BENEDUM
MILLS #1 L VAL VERDE TX 0.10428900 0.07339270 WILL-0
CHANDLER G VAN ZANDT TX 0.00331120 0.00331120 MARTINS MILL
S.R. RAY OIL UNIT l & 2 G VAN ZANDT TX 0.00142570 VAN
CHEVRON FEE l G WARD TX 0.25000000 0.19811000 BEALL
MCDANIEL, LOIS #1 L WARD TX 0.15623380 0.12978072 E QUITO
SEALY GEO 66 2 & 3 G WARD TX 0.25000000 0.19520841 MAGNOLIA SEALY, NW
UNIVERSITY 10-18 "A"-1 L WARD TX 0.11764710 0.09186282 0.08330000 0.06940000 WARWINK SOUTH
UNIVERSITY 10-18 "A"-2 L WARD TX 0.10000000 0.09298287 0.08330000 0.68940000 WARWINK SOUTH
UNIVERSITY 10.18 "A"-3 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 10-18 "A"-4 L WARD TX 0.08330000 0.06038403 WARWINK SOUTH
UNIVERSITY 10-18 "A"-5 L WARD TX 0.10000000 0.07808330 0.08330000 0.06038403 WARWINK SOUTH
UNIVERSITY 10-18B-2 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 10-18B-3 L WARD TX 0.10520000 0.08334440 0.08330000 0.06940000 WARWINK SOUTH
UNIVERSITY l0-18B-4 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY l0-18B-5 L WARD TX 0.10520000 0.08334440 0.08330000 0.06940000 WARWINK SOUTH
UNIVERSITY l0-18B-6 L WARD TX 0.10520000 0.08334440 0.08330000 0.06940000 WARWINK SOUTH
UNIVERSITY l0-18B-7 L WARD TX 0.10520000 0.08334440 0.08330000 0.06940000 WARWINK SOUTH
</TABLE>
page 23
<PAGE>
<TABLE>
<CAPTION>
WELL NAME Co. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
UNIVERSITY 11-183 L WARD TX 0.10000000 0.06298287 0.08333000 0.06940000 WARWINK SOUTH
UNIVERSITY 11-184 L WARD TX 0.10000000 0.06298287 0.08333000 0.06940000 WARWINK SOUTH
UNIVERSITY 11-185 L WARD TX 0.10000000 0.06298287 0.08333000 0.06940000 WARWINK SOUTH
UNIVERSITY 11-18 A 3 L WARD TX 0.10000000 0.06298287 WARWINK SOUTH
UNIVERSITY ll-18A-1 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY ll-18A-2 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 1l-18B-1 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 11-18B-2 L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 11-18B-2A L WARD TX 0.12120000 0.10090000 0.08330000 0.06506947 WARWINK SOUTH
UNIVERSITY 18-18 L WARD TX WARWINK SOUTH
UNIVERSITY 13-29 01 GU L WARD TX 0.15846106 0.12672663 WARWINK SOUTH
UNIVERSITY 13-29 94 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-29 08 L WARD TX 0.15846100 0.12672653 WARWINK SOUTH
UNIVERSITY 18-29 07 L WARD TX 0.17126040 0.10137038 WARWINK SOUTH
UNIVERSITY 18-29 08 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-26 10 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-30 03 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-30 GU L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-31 #1 L WARD TX 0.12577820 0.06403073 WARWINK SOUTH
UNIVERSITY 13-31 03 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-31-04 L WARD TX 0.12577820 0.08408073 WARWINK SOUTH
UNIVERSITY 18-31 06 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-31 07 L WARD TX 0.12577820 0.06408073 WARWINK SOUTH
UNIVERSITY 18-5 #3 L WARD TX 0.36141536 0.23775375 WARWINK SOUTH
UNIVERSITY 18-6 #1-U L WARD TX 0.29000000 0.23776375 WARWINK SOUTH
UNIVERSITY 18-6 #2-L L WARD TX 0.29000000 0.23776375 WARWINK SOUTH
UNIVERSITY 18-6 #2-U L WARD TX 0.29000000 0.23776375 WARWINK SOUTH
UNIVERSITY 18-9 #1-A L WARD TX 0.10000000 0.06298287 WARWINK SOUTH
UNIVERSITY 22-18A-1 L WARD TX 0.11764700 0.09186273 0.08330000 0.06940000 WARWINK SOUTH
UNIVERSITY 22-18A-2 L WARD TX 0.11764700 0.09186273 WARWINK SOUTH
UNIVERSITY 22-18B-I L WARD TX 0.11764700 0.09186273 0.08330000 0.0694 WARWINK SOUTH
UNIVERSITY 23-18A l L WARD TX 0.08330000 0.08606947 WARWINK SOUTH
UNIVERSITY 23-18A-2 L WARD TX 0.08333330 0.08606947 WARWINK SOUTH
UNIVERSITY 24-18-1A L WARD TX 0.08330000 0.08606947 WARWINK SOUTH
UNIVERSITY 9-18A-1 L WARD TX 0.10000000 0.06298287 0.08333300 0.06940000 WARWINK SOUTH
UNIVERSITY 9-18B-I L WARD TX 0.08330000 0.06506947 WARWINK SOUTH
</TABLE>
Page - 24
<PAGE>
<TABLE>
<CAPTION>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
UNIVERSITY 9-18B-2 L WARD TX 0.03333330 0.06506947 WARWINK SOUTH
WALKER,P. ET AL L WARD TX 0.15624510 0.12810157 QUITO EAST
DAVIS, E T l L WHEELER TX 0.02437500 0.01800878 STILES RANCH
DAVIS, G C 161 L WHEELER TX 0.02912200 0.02217888 STILES RANCH
PORTER 1-35 G WHEELER TX 0.33333000 0.27329139 TWITTY
TREADWELL 1&2 L WHEELER TX 0.00869400 0.00710178 BUFFALO WALLOW
ADAMS-MATTHEWS OIL UNIT G WOOD TX 0.12500000 0.09662844 CROW
ALLEN J H l G WOOD TX 0.79166660 0.61414377 CROW
FLETCHER, MAX J. #1 G WOOD TX 0.00000000 0.00847030 BIRCH
FLETCHER, MAX J. #2 G WOOD TX 0.00000000 0.00847030 BIRCH
FLETCHER, MAX J. #3 G WOOD TX 0.00000000 0.00847030 BIRCH
GRICE W.W. UNIT 2 G WOOD TX 0.00331120 0.00318639 QUITMAN
GRICE. W.W. UNIT 1B G WOOD TX 0.00331120 0.00318639 QUITMAN
HOLMES BARNEY l G WOOD TX 0.72837000 0.60038000 CROW
PRUITT VIVIAN l G WOOD TX 0.83333320 0.58957357 CROW
WOODBINE -A- FORMATION UNIT G WOOD TX 0.00331120 0.00331120 BRAHANEY
RAMIREZ, J IU & 2U L ZAPATA TX 0.01562500 0.01120924
AG FARM MINNELUSA G CAMPBELL WY 0.00161000 0.00124174 AG FARM
AMETHYST STATE #1 L CAMPBELL WY 0.00009660 0.00001060 ALPHA
AMKIRK UNIT G CAMPBELL WY 0.05407000 0.04330000 AM-KIRK
EISELE 2 G CAMPBELL WY 0.12501550 0.10308274 0.12501150 0.10313780 KITTY
FISH (MINNELUSA A) UNIT L CAMPBELL WY 0.02432860 0.02007112 FISH
FISH FED UNIT #1-13 L CAMPBELL WY 0.00500000 FISH
FISH FED UNIT #3-13 L CAMPBELL WY 0.00075000 0.00057090 FISH
FISH MINNELUSA A G CAMPBELL WY 0.00060000 0.00049000 FISH
HOUSE CREEK UNIT G CAMPBELL WY 0.00099625 0.00085000 HOUSE CREEK
SIMPSON 11-15 G CAMPBELL WY 0.18470000 0.12312717 SIMPSON RANCH
SOUTH TIMBER CREEK #21-31 L CAMPBELL WY 0.00000539 TIMBER CREEK SOUTH
WHISLER 42-35 G CAMPBELL WY 0.28688000 0.21504150 WHISLER
LILY UNIT G CROOK WY 0.04931000 0.03920484 LILY
SPIRIT FEDERAL 1-35 G CROOK WY SPIRIT
SPIRIT FEDERAL MINNELUSA A G CROOK WY 0.00206000 0.00154226 EDSEL
</TABLE>
Page 25
<PAGE>
WELL NAME CO. COUNTY ST WI (BPO) NRI (BPO) WI (APO 1) NRI (APO 1) FIELD NAME
================================================================================
* NET REVENUE INTERESTS SHOWN ARE NET OF THE OVERRIDING ROYALTY INTEREST PAYABLE
TO LaSALLE STREET NATURAL RESOURCES CORPORATION PURSUANT TO THE ASSIGNMENT AND
CONVEYANCE OF OVERRIDING ROYALTY INTEREST DATED MARCH 31, 1996.
+ ALL OIL AND GAS INTERESTS SET FORTH ON THIS EXHIBIT ARE SUBJECT TO THE
MORTGAGE AND SECURITY INTEREST GRANTED B AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION PURSUANT TO THAT CERTAIN CREDIT AGREEMENT DATED MARCH 31, 1995.
ALL OIL AND GAS INTERESTS SET FORTH ON THIS EXHIBIT ARE SUBJECT TO THE PURCHASE
AND SALE AGREEMENT DATED MARCH 30, 1996 BETWEEN ENRON RESERVE ACQUISITION CORP.
(SELLER), ENRON CAPITAL & TRADE RESOURCES CORP. (ADDITIONAL PARTY), LATEX/GOC
ACQUISITION INC. (BUYER) AND LATEX RESOURCES, INC. (ADDITIONAL PARTY).
REFERENCE:
Page 26
<PAGE>
Exhibit C
AGREEMENT OF AFFILIATE
[DATE]
---------------------
Name of Affiliate
Alliance Resources Plc
- -------------------------
- -------------------------
Gentlemen:
In connection with the pending merger (the "Merger") of LaTex Resources,
Inc., a Delaware corporation (the "Company"), with and into Alliance Resources
(Delaware), Inc., a Delaware corporation ("Acquisition"), a wholly-owned
subsidiary of Alliance Resources Plc, a public limited company incorporated in
England and Wales ("Acquiror"), pursuant to an Agreement and Plan of Merger (the
"Agreement"), I have been advised that I may be deemed to be an "affiliate" of
the Company within the meaning of Rule 145 under the Securities Act of 1933 (the
"1933 Act") for the purposes of any resales of shares of the common stock of
Acquiror to be issued to me (the "Stock"). Based on such advice and in order to
induce Acquiror and the Company to cause the Merger to be consummated, I hereby
represent and warrant to, and agree with, Acquiror, Acquisition, and the Company
as follows:
A. I will not sell or otherwise transfer any of the Stock in violation
of the 1933 Act or the rules or regulations thereunder. I will not, in any
event, enter into any contract or otherwise agree to, sell or otherwise
transfer any of the Stock until such time as financial results covering at
least thirty (30) days of post-Merger combination operations of Acquiror
and the Company have been published.
B. I hereby consent to the placing of a legend on the certificate or
certificates evidencing the Stock referring to the issuance thereof in a
transaction to which Rule 145 under the 1933 Act is applicable and to the
giving of stop transfer instructions to the transfer agent for the Stock
with respect to such certificate or certificates. The legend will state in
substance:
"The shares represented by this certificate were issued in a
transaction to which Rule 145 under the Securities Act of 1933
60
<PAGE>
applies and may be sold or otherwise transferred only in compliance
with the terms of an agreement of affiliate dated ____________, 199__
between the registered holder hereof and the issuer hereof, a copy of
which is available at the principal office of the issuer."
C. In the event of any sale or transfer of any of the Stock in a
transaction not involving a sale pursuant to Rule 145 or in a registered public
offering, I will obtain from each transferee of the Stock in such transaction a
letter agreement substantially similar hereto, or a letter containing such other
information reasonable required by Acquiror to evidence an exception from the
applicable registration requirements of federal or State securities laws, which
is binding and enforceable by Acquiror and the transferee.
Very truly yours,
---------------------------------
[NAME OF AFFILIATE]
61
<PAGE>
[ARTWORK APPEARS HERE]
Alliance Resources Plc
1 HOUSTON CENTER, SUITE l8l4
1221 McKINNEY STREET
HOUSTON. TX 77010
(7l3) 650-0069
FAX: (713) 650-35l3
JAK KEEMAN
MANAGING DIRECTOR
September l6, l996
LaTex Resources, Inc.
4200 East Skelly Drive, Suite 1000
Tulsa, OK 74135
Attention: Mr. Jeffrey T. Wilson, President
Re Amendment to Agreement and Plan of Merger by and among Alliance
Resources Plc, Alliance Resources (Delaware), Inc. and LaTex Resources,
Inc. dated August l2, l996 ("Merger Agreement")
Dear Mr. Wilson:
This letter, when accepted by LaTex Resources, Inc. ("LaTex"), will
evidence the agreement among Alliance Resources Plc ("Alliance"), Alliance
Resources Delaware), Inc. ("Newco") and LaTex to amend the captioned Merger
Agreement.
Alliance, Newco and LaTex hereby agree that Sections 2.1l, 9(1) and
ll.l(k) of the Merger Agreement are amended by deleting all references to the
date "September 15, l996" in such sections and substituting therefor the date
"September 27, 1996".
As hereby amended, the Merger Agreement is hereby ratified and affirmed
and shall continue in full force and effect in accordance with all of its terms
and provisions.
If the foregoing is acceptable, please indicate your approval by executing
both counterpart originals hereof, and return one counterpart to Alliance.
Very truly yours,
ALLIANCE RESOURCES PLC
By: /s/ John A. Keenan
---------------------------------------
John A. Keenan, Managing Director
<PAGE>
LaTex Resources, Inc.
September 16, 1996
Page 2
ALLIANCE RESOURCES (DELAWARE) INC.
By: /s/ John A. Keenan
------------------------------
John A. Keenan, President
ACCEPTED AND AGREED TO as
of the date of this letter.
LATEX RESOURCES, INC.
By: /s/ Jeffery T. Wilson
---------------------------
Jeffery T. Wilson, President
<PAGE>
[ARTWORK APPEARS HERE]
Alliance Resources Plc
HOUSTON CENTER, SUITE 18l4
1221 McKINNEY STREET
HOUSTON, TX 77010
(713) 650-0069
FAX: (713) 650-35l3 Jak Keenan
Managing Director
September 27,1996
VIA FAX (918) 747-7010
- ----------------------
LaTex Resources, Inc.
4200 East Skelly Drive
Suite 1000
Tulsa, OK 74135
Attention: Jeffrey T. Wilson, President
Dear Jeff:
Pursuant to our recent discussions, we propose that the merger of Alliance
Resources Plc ("Alliance") and LaTex Resources, Inc. ("LaTex") take place under
the structure provided in the Agreement and Plan of Merger (the "Merger
Agreement") by and among Alliance Resources Plc, Alliance Resources (Delaware),
Inc. and LaTex Resources, Inc. dated August 12, 1996, except that the Merger
Agreement will be amended to eliminate the condition contained in Section 9(k)
of the Merger Agreement relating to the delivery of an opinion from counsel
regarding the federal income tax aspects of the Merger.
Therefore, this letter, when signed by all of the parties to the Merger
Agreement, will constitute an amendment to the Merger Agreement deleting Section
9(k) thereof. If you agree to this amendment, please indicate your agreement by
executing this letter in the space provided below.
Sincerely,
ALLIANCE RESOURCES PLC
By:/s/ John A. Keenan
----------------------------
John A. Keenan, President
<PAGE>
LaTex Resources, Inc
September 27, 1996
Page 2
ALLIANCE RESOURCES (DELAWARE). INC.
By: /s/ John A. Keenan
------------------------------
John A. Keenan, President
Accepted and Agreed to:
LATEX RESOURCES, INC.
By: /s/ Jeffrey T. Wilson
----------------------------
Jeffrey T. Wilson, President
<PAGE>
EXHIBIT 10.118
================================================================================
PURCHASE AGREEMENT
BETWEEN
LATEX RESOURCES, INC.,
AND
IMPERIAL PETROLEUM, INC.
SEPTEMBER 30, 1996
================================================================================
<PAGE>
PURCHASE AGREEMENT
This Purchase Agreement is entered into this 30th day of September,
1996, by and among LATEX RESOURCES, INC., a Delaware corporation ("LRI") and
IMPERIAL PETROLEUM, INC., a Nevada Corporation ("Imperial").
WITNESSETH:
WHEREAS,, LRI has entered into an Agreement and Plan of Merger dated
August 9, 1996 with Alliance Resources Plc ("ARP"), pursuant to which LRI
will merge with a United States subsidiary of ARP, the terms of which require,
among others, that LRI divest itself of certain assets consisting of the capital
stock of certain corporations; and
WHEREAS, Imperial is willing to acquire the capital stock of certain
corporations held by LRI, including shares of common stock of Imperial, in order
to further Imperial's business operations and LRI desires to sell such capital
stock to Imperial on the terms set forth in this Agreement.
NOW, THEREFORE, In consideration of the premises and in consideration
of the agreements and benefits set forth herein and other good and valuable
consideration, the receipt of which is hereby acknowledged, Imperial and LRI
agree as follows.
1. Definitions
1.01 "Affiliate" means any person which, directly or indirectly,
controls, is controlled by or is under common control of the referenced party. A
person shall be deemed to be "controlled by" any other person if such other
person possesses, directly or indirectly, power (a) to vote 10% or more of the
securities (on a fully diluted basis) having ordinary voting power for the
election of directors or managing general partners; or (b) to direct or cause
the direction of the management and policies of such person whether by contract
or otherwise.
1.02 "Business Day" means any day other than a day on which national
banks domiciled in Tulsa, Oklahoma are authorized to close.
1.03 "Closing" shall have the meaning given in Section 2.03.
1.04 "Closing Date" shall have the meaning given in Section 2.03.
1.05 "Imperial" means Imperial Petroleum, Inc., a Nevada corporation,
and its Subsidiaries.
1.06 "LRI" means LaTex Resources, Inc., a Delaware corporation.
1.07 "1933 Act" shall mean the Securities Act of 1933, as amended.
<PAGE>
1.08 "Imperial Disclosures Reports" shall have the meaning set forth in
the opening paragraph of Article 3.
------- -
1.09 "Imperial Financial Statements" shall have the meaning set forth
in Section 3.06.
------------
1.10 "Imperial Public Reports" shall have the meaning set forth in
Section 3.05.
- ------- ----
1.11 "GAAP" refers to generally accepted accounting principles as in
effect from time to time in the United States.
1.12 "Indemnitee" means any person which may be entitled to seek
indemnification pursuant to the provisions of Section 8 of this Agreement.
------- -
1.13 "Indemnitor" means any person which may be obligated to provide
indemnification pursuant to Section 8 of this Agreement.
------- -
1.14 "Knowledge" means either (a) the actual knowledge, or (b) an
objective standard of knowledge which imputes knowledge because a reasonable
investigation of files and records would have disclosed the matter to which the
statement relates.
1.15 "LRI Disclosure Reports" has the meaning set forth in the opening
paragraph of Article 4 of this Agreement.
------- -
1.16 "LRI Financial Statements" shall have the meaning set forth in
Section 4.06.
- ------- ----
1.17 "LRI Public Reports" shall have the meaning set forth in Section
-------
4.05.
- ----
1.18 "LRI Shares" shall have the meaning set forth in Section 2.02.
------- ----
1.19 "Liability" means and includes any direct or indirect
indebtedness, liability, claim, loss, damage, deficiency, obligation or
responsibility, whether known or unknown, fixed or unfixed, conditional or
unconditional, choate or inchoate, liquidated or unliquidated, secured or
unsecured, accrued, absolute, contingent or otherwise (including, without
limitation, reasonable fees and expenses of counsel).
1.20 "Losses" means any and all direct or indirect demands, claims,
payments, obligations, actions or causes of action, assessments, losses,
Liabilities, costs and expenses paid or incurred or diminutions in value of any
kind or character (whether or not known or asserted prior to the date hereof,
fixed or unfixed, conditional or unconditional, choate or inchoate, liquidated
or unliquidated, secured or unsecured, accrued, absolute, contingent or
otherwise), including without limitation, penalties, interest on any amount
payable to a third party (which will include claims by governmental entities and
agencies) as a result of the foregoing and any legal or other expenses
reasonably incurred in connection with investigating or defending any claims or
actions, whether or not resulting in any Liability, and all amounts
2
<PAGE>
paid in settlement of claims or actions arising under Section 7 of this
------- -
Agreement; provided, however, that Losses shall be net of any insurance proceeds
received by an Indemnitee on account of such Losses (after taking into account
any costs incurred in obtaining such proceeds and any increase in insurance
premiums as a result of a claim with respect to such proceeds); provided,
however, nothing in Section 7 of this Agreement shall require an Indemnitee to
------- -
proceed against its insurance carrier or to maintain insurance of any kind.
1.21 "SEC" means the Securities and Exchange Commission.
1.22 "Securities Exchange Act" means the Securities Exchange Act of
1934, as amended.
1.23 "Sold Shares" has the meaning set forth in Section 2.01.
------- ----
1.24 "Sold Companies" has the meaning set forth in Section 2.01.
------- ----
1.25 "Subsidiary" means any corporation with respect to which a
specified person (or a Subsidiary thereof) owns a majority of the common stock
or has the power to vote or direct the voting of sufficient securities to elect
a majority of the directors.
1.26 "Third Party Claims" means any and all Losses (other than loss of
expected or anticipated profit) which arise out of or result from (i) any claims
or actions asserted against an Indemnitee by a third party, (ii) any rights of a
third party asserted against an Indemnitee, or (iii) any Liabilities of, or
amounts payable by an Indemnitee to a third party arising out of clauses (i) or
(ii).
2. Purchase and Sale
-----------------
2.01 Purchase and Sale of Sold Shares. On and subject to the terms and
--------------------------------
conditions of this Agreement, Imperial agrees to purchase from LRI and LRI
agrees to sell, assign, transfer, convey and deliver to Imperial at Closing all
of LRI's right, title and interest in and to the shares of capital stock
(collectively the "Sold Shares") of each company (collectively, the "Sold
Companies") as follows:
(a) 5,000,000 shares of common stock of Wexford Technology,
Inc., a Utah corporation ("Wexford"), representing approximately 32.3% of the
issued and outstanding common stock of Wexford;
(b) 3,798,730 shares of common stock of Imperial, representing
approximately 13% of the issued and outstanding common stock of Imperial;
3
<PAGE>
(c) 5,000 shares of common stock of LaTex Resources International,
Inc., a Delaware corporation ("LaTex International"), representing 100% of the
issued and outstanding common stock of LaTex International; and
(d) 30,000 shares of common stock of Phoenix Metals, Inc., a
Texas corporation ("Phoenix Metals"), representing 100% of the issued and
outstanding common stock of Phoenix Metals.
2.02 Sold Shares Purchase Price. In full consideration for the purchase
--------------------------
by Imperial from LRI of the Sold Shares, Imperial shall sell, assign, transfer,
convey and deliver to LRI at Closing all of Imperial's right, title and interest
in and to 100,000 shares of LRI common stock (the "LRI Shares").
2.03 Closing. The purchase and sale referenced in Sections 2.01 of this
------- -------- ----
Agreement shall take place at 10:00 a.m. at the offices of Pray, Walker,
Jackman, Williamson & Marlar, 900 ONEOK Plaza, Tulsa, Oklahoma, 74103, on _____,
1996, or at such other time or place as the parties hereto shall by written
instrument designate. Such purchase and sale is referred to in this Agreement as
the "Closing" and the time and date of the closing are referred to in this
Agreement as the "Closing Date".
2.04 Closing Deliveries by LRI. At Closing, LRI will deliver to
-------------------------
Imperial:
(a) the stock certificates for the Sold Shares for each Sold
Company as provided in Section 2.01 of this Agreement, duly endorsed to Imperial
----
or accompanied by duly executed stock powers;
(b) certified copies of corporate resolutions and other corporate
proceedings taken by LRI to authorize the execution, delivery and performance of
this Agreement;
(c) all files and records, including without limitation, bank
records, stock records, corporate records, financial records, contracts,
agreements, assignments, receipts, deeds, leases (including all lease,
production, reserve and other files and records relating to the oil, gas or
other mineral properties) and correspondence and any other documents or files in
the possession of LRI which in any way relate to the current or former
operations of the Sold Companies and/or any of their predecessors; provided,
that such delivery may be made to a location other than the location of Closing
upon mutual agreement of LRI and Imperial;
(d) a certificate of corporate good standing for LRI from the
Secretary of State of the state of Delaware; and
(e) all other documents, instruments and writings required to
be delivered by LRI pursuant to Section 2.08 and any other provision of this
------- ----
Agreement.
2.05 Closing Deliveries by Imperial. At Closing, Imperial will deliver
------------------------------
to LRI:
4
<PAGE>
(a) the stock certificates for the LRI Shares as provided in
Section 2.02 of this Agreement duly endorsed to LRI or accompanied by a duly
- ------- ----
executed stock power;
(b) certified copies of corporate resolutions and other corporate
proceedings taken by Imperial to authorize the execution, delivery and
performance of this Agreement;
(c) a certificate of corporate good standing for Imperial from the
Secretary of State of the state of Nevada; and
(d) all other documents, instruments and writings required to
be delivered by Imperial pursuant to Section 2.07 and any other provision of
------- ----
this Agreement.
2.06 General Conditions to Closing. The obligations of the parties to
-----------------------------
effect the Closing shall be subject to the following conditions:
(a) Board of Directors of LRI and the Board of Directors of
Imperial shall have each approved this Agreement in accordance to the provisions
of applicable state law;
(b) no action, suit or proceeding shall be pending or threatened
before any court or quasi-judicial or administrative agency of any federal,
state, local or foreign jurisdiction or before any arbitrator wherein an
unfavorable injunction, judgment, order, decree, filing or charge would (i)
prevent consummation of any of the transactions contemplated by this Agreement,
(ii) cause any of the transactions contemplated by this Agreement to be
rescinded following consummation, or (iii) affect adversely the right of
Imperial to own or operate the Sold Companies (and no such injunction, judgment,
order, decree, ruling or charge shall be in effect); and
(c) all governmental approvals, the absence of which would have a
materially adverse effect on LRI on a consolidated basis or Imperial, on a
consolidated basis, after the Closing, shall have been received.
2.07 Conditions to LRI's Obligation to Close. The obligations of LRI
---------------------------------------
under this Agreement to proceed with the Closing on the Closing Date shall at
all times be subject to the following conditions precedent, any of which may be
waived by LRI in writing:
(a) Imperial shall have executed and delivered to LRI a written
assumption and guaranty of the obligations of Wexford and its subsidiaries,
LaTex International and Phoenix Metals to LRI as set forth on Exhibit A attached
-------
hereto, in form and substance satisfactory to LRI;
(b) LRI shall have received the written consent of ARP to the
execution, delivery and performance of this Agreement by LRI;
5
<PAGE>
(c) LRI shall have received the written consent of its principal
lender, Bank of America N.A. or any bank which provides refinancing to LRI of
the indebtedness of LRI to Bank of America, to the execution, delivery and
performance of this Agreement by LRI;
(d) LRI shall have received the written opinion of its investment
banker that the sale of the Sold Shares on the terms set forth in this Agreement
is fair to the shareholders of LRI from a financial point of view;
(e) the representations and warranties of Imperial contained in
Article 3 shall be true and correct in all material respects as of the date of
- ---------
this Agreement and as of the Closing Date;
(f) Imperial shall have, in all material respects, performed all
obligations and agreements and complied with all covenants and conditions
contained in this Agreement to be performed or complied with at or prior to the
Closing Date;
(g) Imperial shall have furnished LRI with a certificate, dated
the Closing Date, stating that the representations and warranties of Imperial
contained in Article 3 are true and correct on the Closing Date in all material
respects as if then made;
(h) there shall be no claims, actions, suits or governmental
proceedings (excluding any such matter initiated by LRI) pending, or threatened
to be instituted before any court or governmental agency seeking to restrain,
prohibit or obtain damages or other relief in connection with this Agreement or
the consummation of the transactions contemplated hereby;
(i) all statutory requirements for the valid consummation by
Imperial and LRI of the transactions contemplated by this Agreement shall have
been fulfilled and all authorizations, consents and approvals of all federal,
state or local governmental agencies and authorities and any other person
required to be obtained in order to permit consummation by Imperial and LRI of
the transactions contemplated by this Agreement shall have been obtained and
Imperial shall have obtained and delivered to LRI consents to the transactions
contemplated by this Agreement from the parties to all material contracts which
require such consent;
(j) Between the date of this Agreement and the Closing Date, no
governmental agency, whether federal, state or local, shall have instituted (or
threatened to institute in a writing directed to Imperial or LRI or any of their
respective Subsidiaries or Affiliates) an investigation which is pending at the
Closing Date relating to Imperial or the transactions contemplated by this
Agreement and between the date of this Agreement and the Closing Date no action
or proceeding shall have been instituted or, to the knowledge of Imperial, shall
have been threatened by any party (public or private) before a court or other
governmental body to restrain or prohibit the transactions contemplated by this
Agreement or to obtain damages in respect thereof; and
6
<PAGE>
(k) all papers, documents, agreements and other items required
by Imperial to be delivered by Imperial at Closing pursuant to Section 2.05
------------
shall have been delivered by Imperial at Closing.
Nothing contained in this Section 2.07 shall affect LRI's rights under this
------------
Agreement with respect to the representations, warranties or covenants of
Imperial which survive Closing.
2.08 Conditions to Imperial's Obligation to Close. The obligations of
--------------------------------------------
Imperial under this Agreement to proceed with the Closing on the Closing Date
shall at all times be subject to the following conditions precedent, any of
which may be waived by Imperial in writing:
(a) the representations and warranties of LRI contained in
Article 4 shall be true and correct in all material respects as of the date of
- ---------
this Agreement and as of the Closing Date;
(b) LRI shall have, in all material respects, performed all
obligations and agreements and complied with all covenants and conditions
contained in this Agreement to be performed or complied with at or prior to the
Closing Date;
(c) LRI shall have furnished Imperial with a certificate, dated
the Closing Date, stating that the representations and warranties of LRI
contained in Article 4 are true and correct on the Closing Date in all material
---------
respects as if then made;
(d) there shall not have occurred (i) any material adverse change
in the business properties, results of operations or in the condition of the
Sold Companies or (ii) any loss or damage to any of the properties or assets
(whether or not covered by insurance), financial condition, business or
properties of the Sold Companies which will eventually affect or impair the
ability of Imperial to conduct the business now being conducted by the Sold
Companies after the Closing;
(e) there shall be no actions, written claims, suits or
governmental proceedings (excluding any such matter initiated by Imperial)
pending, or threatened to be instituted before any court or governmental agency
seeking to restrain, prohibit or obtain damages or other relief in connection
with this agreement or the consummation of the transaction contemplated hereby;
(f) all statutory requirements for the valid consummation by
Imperial and LRI of the transactions contemplated by this Agreement shall have
been fulfilled and all authorizations, consents and approvals of all federal,
state or local governmental agencies and authorities and any other person
required to be obtained in order to permit consummation by Imperial and LRI of
the transactions contemplated by this Agreement shall have been obtained and LRI
shall have obtained and delivered to Imperial consents to the transaction
contemplated by this Agreement from the parties to all material contracts which
require such consents;
7
<PAGE>
(g) Between the date of this Agreement and the Closing Date, no
governmental agency, whether federal, state or local, shall have instituted (or
threatened to institute in a writing directed to Imperial or LRI or any of their
respective Subsidiaries or Affiliates) an investigation which is pending at the
Closing Date relating to LRI or the transactions contemplated by this Agreement
and between the date of this Agreement and the Closing Date no action or
proceeding shall have been instituted or, to the knowledge of LRI, shall have
been threatened by any party (public or private) before a court or other
governmental body to restrain or prohibit the transactions contemplated by this
Agreement or to obtain damages in respect thereof; and
(h) all papers, documents, agreements and other items required to
be delivered by LRI at Closing pursuant to Section 2.04 shall have been
------------
delivered by LRI at Closing.
Nothing contained in this Section 2.08 shall affect Imperial's rights under this
------------
Agreement with respect to the representations, warranties or covenants of LRI
which survive closing.
3. Representations and Warranties Respecting Imperial
--------------------------------------------------
Imperial represents and warrants to LRI that the statements contained
in this Article 3 are correct and complete as of the date of this Agreement and
---------
will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Article 3), except as set forth in the Imperial Annual Report on
---------
Form 10-K for the year ended July 31, 1995 and Quarterly Report on Form 10-Q for
the nine months ended April 30, 1996, each as filed with the SEC and which
accompany this Agreement (the "Imperial Disclosure Reports").
3.01 Organization and Good Standing. Each of Imperial and its
------------------------------
Subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of the states of their respective incorporation. Each of
Imperial and its Subsidiaries is duly qualified to conduct business and is in
good standing as a foreign corporation under the laws of each jurisdiction in
which the nature of the business conducted by it or the properties owned,
leased, or operated by it makes such qualification necessary, and in which the
failure to be so qualified or licensed would have a material adverse effect upon
the business, operations, assets or financial condition of Imperial.
3.02 Corporate Power. Each of Imperial and its Subsidiaries has full
---------------
corporate power and authority to carry on the business in which it is engaged
and to own and use the properties owned and used by it. Imperial has full right,
power, authority and legal capacity to execute, deliver and perform this
Agreement and all other agreements contemplated hereby to be executed and
delivered by Imperial. This Agreement and the consummation of the transactions
contemplated hereby have been duly and unanimously approved by the board of
directors of Imperial, and this Agreement has been duly executed and delivered
by Imperial.
8
<PAGE>
This Agreement constitutes the legal, valid and binding obligation of, and is
enforceable in accordance with its terms against, Imperial except as may be
limited by bankruptcy, liquidation, receivership, conservatorship, insolvency,
reorganization, moratorium or other similar laws affecting creditors rights
generally or by general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity). Neither
Imperial nor any of its Subsidiaries is in default under or in violation of any
provision of its Certificate of Incorporation or Bylaws.
3.03 Capitalization. The entire authorized capital stock of Imperial
--------------
consists of (a) 50,000,000 shares of common stock, par value $0.001 per share,
of which shares are issued and outstanding and shares are held in
------ ------
treasury. All of the issued and outstanding shares have been duly authorized,
are validly issued, fully paid, and nonassessable. Except as set forth in the
Imperial Disclosure Reports, there are no outstanding or authorized options,
warrants, rights, contracts, calls, puts, rights to subscribe, conversion rights
or other agreements or commitments to which Imperial is a party or which are
binding upon Imperial providing for the issuance, disposition or acquisition of
any of its capital stock. There are no outstanding or authorized stock
appreciation, phantom stock or similar rights with respect to Imperial. There
are no voting trusts, proxies or any other agreements or understandings with
respect to the voting of the capital stock of Imperial.
3.04 Noncontravention. Neither the execution and the delivery of this
----------------
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any statute, regulation, rule, judgment, order, decree, stipulation,
injunction, charge or other restriction of any government, governmental agency
or court to which Imperial or any of its assets is subject or any provision of
the Certificate of Incorporation or Bylaws of Imperial or (ii) conflict with,
result in a breach of, constitute a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify, or cancel or
require any notice under any contract, lease, sublease, license, sublicense,
franchise, permit, indenture, agreement or mortgage for borrowed money,
instrument of indebtedness, security interest or other arrangement to which
Imperial is a party or by which it is bound or to which any of its assets is
subject or result in the imposition of any security interest upon any of its
assets. Imperial is not required to give any notice to, make any filing with, or
obtain any authorization, consent or approval of any government, governmental
agency or other person in order for Imperial to consummate the transactions
contemplated by this Agreement.
3.05 Filings with the SEC. Since August 1993, Imperial has made all
--------------------
filings with the SEC that it has been required to make under the Securities Act
and the Securities Exchange Act (collectively the "Imperial Public Reports"). To
the knowledge of Imperial, each of the Imperial Public Reports has complied with
the Securities Act and the Securities Exchange Act in all material respects. To
the knowledge of Imperial, none of the Imperial Public Reports, as of their
respective dates, contained any untrue statement of a material fact or omitted
to state a material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading.
Imperial has delivered to LRI a
9
<PAGE>
correct and complete copy of each Imperial Public Report filed by Imperial with
the SEC since July 31, 1994 (together with all exhibits and schedules thereto
and as amended to date).
3.06 Financial Statements. Imperial has filed with the SEC (a) an
--------------------
Annual Report on Form 10-K containing audited consolidated balance sheets as of
July 31, 1994 and 1995 and audited statements of income, change in stockholders'
equity and cash flow as of and for the year ended July 31, 1995 and (b) a
Quarterly Report on Form 10-Q containing unaudited balance sheets as of April
30, 1995 and 1996 and unaudited statements of income, change in stockholders
equity and cash flows as of and for the nine months ended April 30, 1996. The
financial statements (collectively, the "Imperial Financial Statements")
included in or incorporated by reference into the referenced Imperial Public
Report (including the related notes and schedules) have been prepared in
accordance with GAAP applied on a consistent basis throughout the periods
covered thereby, present fairly the financial condition of Imperial and its
Subsidiaries as of the indicated dates and the results of operations of Imperial
and its Subsidiaries for the indicated periods, are correct and complete in all
respects, and are consistent with the books and records of Imperial and its
Subsidiaries.
3.07 Ownership of LRI Shares. LRI is the legal and beneficial owner of,
-----------------------
and has good title to (and has full right and authority to sell and assign) the
LRI Shares and, at Closing, the LRI Shares will be free and clear of all liens,
security interests, options, or other charges or encumbrances.
3.08 Brokers. No agent, broker, investment banker, person or firm
-------
acting on behalf of the Imperial or Imperial or under its authority is or will
be entitled to any broker's or finder's fee or any other commission or similar
fee directly or indirectly from Imperial or any Affiliate of Imperial in
connection with the transactions contemplated hereby.
3.09 Investment Intent.
(a) Imperial understands and acknowledges the speculative
nature of and substantial risk of loss associated with an investment in the Sold
Shares which may be subject to substantial dilution. Imperial represents and
warrants that the Sold Shares constitute an investment which is suitable and
consistent with its financial condition and that it is able to bear the risks of
such investment for an indefinite period of time, which may include the total
loss of its investment in the Sold Shares. Imperial further represents that
Imperial has adequate means of providing for its current financial needs and
contingencies and no need for liquidity in its investment in the Sold Shares and
that Imperial has sufficient financial and business experience to evaluate the
merits and risks of an investment in the Sold Shares.
(b) Imperial understands and acknowledges that the Sold Shares
have not been, and will not be, registered under the Securities Act or
applicable securities laws of any state and Imperial is aware that no federal or
state agency has made any review, finding or determination regarding the terms
of the acquisition of the Sold Shares nor any
10
<PAGE>
recommendation or endorsement of the Sold Shares as an investment, and Imperial
must forego the security, if any, that such a review would provide.
(c) Imperial understands and acknowledges that the Sold Shares
are being offered and sold to Imperial under exemptions from registration
provided by the Securities Act and exemptions provided by applicable state
securities laws and Imperial warrants and represents that the Sold Shares are
being acquired by it solely for its own account, for investment purposes only,
and not with a view to or for the resale, distribution, subdivision or
fractionalization thereof. Imperial represents and warrants that it has no
agreement or other arrangement, formal or informal, with any person to sell,
transfer or pledge any part of the Sold Shares or which would guarantee it any
profit or protect it against any loss with respect to the Sold Shares. Further,
Imperial has no plans to enter into any such agreement or arrangement, and,
consequently, it must bear the economic risk of an investment in the Sold Shares
for an indefinite period of time.
3.10 Limitations on Resale or Transfer. Imperial understands and
---------------------------------
acknowledges that the Sold Shares will be "restricted' as defined in Rule 144
under the Securities Act and that it cannot offer to sell, sell or otherwise
transfer or distribute the Sold Shares without registration thereof under both
the Securities Act and any applicable state securities laws, or unless an
exemption is, in the opinion of counsel, available to it under the Securities
Act. Imperial further understands and acknowledges that the restrictions on the
transfer of the Sold Shares will be noted on the books of each Sold Company,
respectively, and that the stock certificates representing the Sold Shares will
bear a written legend setting forth the restriction on the transferability of
the Sold Shares in substantially the following form:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION OF THEM UNDER THE SECURITIES ACT OF 1933, OR AN
OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS
NOT REQUIRED UNDER THE ACT.
3.11 Independent Investigation and Advisors. Imperial confirms that it
--------------------------------------
has received, reviewed, understands and has fully considered (including, without
limitation, the financial statements contained therein) for purposes of its
acquisition of the Sold Shares, the LRI Disclosure Reports. Imperial represents
and warrants that in making the decision to acquire the Sold Shares, it has
relied upon its own independent investigation of the Sold Companies and the
independent investigation by its representatives, including its own professional
legal, tax, and business advisors, and that it and its representatives have been
given the opportunity to examine all relevant documents and to ask questions of
and to receive answers from LRI, or person(s) acting on its behalf, concerning
the terms and conditions of acquisition by Imperial of the Sold Shares and any
other matters concerning an investment in the Sold
11
<PAGE>
Companies, and to obtain any additional information Imperial deems necessary to
verify the accuracy of the information provided.
3.12 Disclosure. The representations and warranties contained in this
----------
Article 3 do not contain any untrue statement of a fact or omit to state any
- ---------
fact necessary in order to make the statements and information contained in this
Article 3 not misleading.
- ---------
4. Representations and Warranties of LRI.
-------------------------------------
LRI represents and warrants to Imperial that the statements contained
in this Article 4 are correct and complete as of the date of this Agreement and
---------
will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Article 4), except as set forth in the LRI Annual Report on Form
---------
10-K for the year ended July 31,1995, and Quarterly Report on Form 10-Q for the
nine months ended April 30, 1996, each as filed with the SEC and which accompany
this Agreement (the "LRI Disclosure Reports").
4.01 Organization and Good Standing. LRI is a corporation duly
------------------------------
organized, validly existing and in good standing under the laws of Delaware, and
is duly qualified to conduct business as a foreign corporation and is in good
standing as a foreign corporation under the laws of each jurisdiction in which
the nature of the business conducted by it or the properties owned, leased, or
operated by it makes such qualification necessary, and in which the failure to
be so qualified or licensed would have a material adverse effect upon the
business, operations, assets or financial condition of LRI.
4.02 Corporate Power. LRI has all requisite power and authority to own,
---------------
lease and operate its properties and to carry on its business as now being
conducted. LRI has full right, power, authority and legal capacity to execute,
deliver and perform this Agreement and all other agreements contemplated hereby
to be executed and delivered by LRI. This Agreement and the consummation of the
transaction contemplated hereby have been duly and unanimously approved by the
board of directors of LRI and this Agreement has been duly executed and
delivered by LRI. This Agreement constitutes the legal, valid and binding
obligation of, and is enforceable in accordance with its terms against, LRI
except as may be limited by bankruptcy, liquidation, receivership,
conservatorship, insolvency, reorganization, moratorium or other similar laws
affecting creditors rights generally or by general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity). LRI is not in default under or in violation of any provision of
its Certificate of Incorporation or Bylaws.
4.03 Capitalization. The entire authorized capital stock of LRI
--------------
consists of 50,000,000 shares of common stock, par value $0.01 per share, of
which shares are issued and outstanding, and 5,000,000 shares of preferred stock
par value $0.01 per share, of which shares of Series A Convertible Preferred
Stock and Shares of Series B
12
<PAGE>
Senior Convertible Preferred Stock are issued and outstanding. All of the issued
and outstanding shares of LRI common and preferred stock have been duly
authorized, are validly issued, fully paid, and non-assessable.
4.04 Noncontravention. Neither the execution and the delivery of this
----------------
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any statute, regulation, rule, judgment, order, decree, stipulation,
injunction, charge or other restriction of any government, governmental agency
or court to which LRI or any of its assets is subject or any provision of its
Certificate of Incorporation or Bylaws or (ii) except for the necessary consents
of Bank of America and ARP; conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel or require any notice under any
contract, lease, sublease, license, sublicense, franchise, permit, indenture,
agreement or mortgage for borrowed money, instrument of indebtedness, security
interest or other arrangement to which LRI is a party or by which it is bound or
to which any of its assets are subject or result in the imposition of any
security interest upon any of its assets. Except for the necessary consents of
Bank of America and ARP, LRI is not required to give any notice to, make any
filing with, or obtain any authorization, consent or approval of any government,
governmental agency or other person in order for LRI to consummate the
transactions contemplated by this Agreement.
4.05 Filings with the SEC. Since December 1991 LRI has made all filings
--------------------
with the SEC that it has been required to make under the Securities Act and the
Securities Exchange Act (collectively the "LRI Public Reports"). To the
knowledge of LRI, each of the LRI Public Reports has complied with the
Securities Act and the Securities Exchange Act in all material respects. To the
knowledge of LRI, none of the LRI Public Reports, as of their respective dates,
contained any untrue statement of a material fact or omitted to state a material
fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. LRI has delivered to
Imperial a correct and complete copy of each LRI Public Report filed by LRI with
the SEC since July 31, 1994 (together with all exhibits and schedules thereto
and as amended to date).
4.06 Financial Statements. LRI has filed with the SEC (a) an Annual
--------------------
Report on Form 10-K containing audited consolidated balance sheets as of July
31, 1994 and 1995 and audited statements of income, change in stockholders'
equity and cash flow as of and for the year ended July 31, 1995 and (b) a
Quarterly Report on Form 10-Q containing unaudited balance sheets as of April
30, 1995 and 1996 and unaudited statements of income, change in stockholders
equity and cash flows as of and for the three months ended April 30, 1996. The
financial statements (collectively, the "LRI Financial Statements") included in
or incorporated by reference into the referenced LRI Public Reports (including
the related notes and schedules) have been prepared in accordance with GAAP
applied on a consistent basis throughout the periods covered thereby, present
fairly the financial condition of LRI and its Subsidiaries as of the indicated
dates and the results of operations of LRI and its Subsidiaries for the
indicated periods, are correct and complete in all respects, and are consistent
with the books and records of LRI and its Subsidiaries.
13
<PAGE>
4.07 Ownership of Sold Shares. LRI is the legal and beneficial owner
------------------------
of, and has good title to (and has full right and authority to sell and assign)
the Sold Shares and, at closing, the Sold Shares will be free and clear of all
liens, security interests, options, or other charges or encumbrances.
5. Covenants Pending Closing
-------------------------
5.01 Access: Information. LRI and Imperial shall each give to the other
-------------------
and to the other's counsel, accountants and other advisors, agents, consultants
and representatives (collectively, "Representatives"), full access, during
normal business hours throughout the period prior to the Closing Date, to all of
the properties, books and records of the other, and will furnish the other
during such period all such information concerning it as the other reasonably
may request including all land, legal, accounting, engineering, financial and
operating and other information with respect to their respective businesses,
assets and obligations. Provided, that any furnishing of such access or
information to LRI and Imperial or their respective Representatives or any
investigation by LRI and Imperial or their respective Representatives shall not
affect the right of LRI and Imperial to rely on the representations and
warranties of the others made in this Agreement and, provided further, that LRI
and Imperial and their respective Representatives shall hold in strict
confidence all documents and information concerning each other so furnished
which is of a trade secret or confidential nature ("Confidential Information")
unless the same shall have become public knowledge other than through disclosure
by LRI and Imperial to which such information relates or its Representatives
and, if the transactions contemplated by this Agreement are not consummated,
such confidence shall be maintained and all such Confidential Information (in
written form) shall be immediately returned to LRI and Imperial from which it
was acquired.
5.02 Notice of Claims. Imperial will promptly advise LRI and LRI will
----------------
promptly advise Imperial, in writing, of the commencement or receipt of any
written claim, litigation, or proceeding against it, or any written threat
thereof, whether covered by insurance or not, (a) when the amount claimed (taken
alone or when added to other claims of which such advice has not therefore been
given) exceeds $5,000, (b) when such claim, litigation, proceeding, or written
threat thereof relates in any way to this Agreement or any of the transactions
contemplated hereby, or (c) when such claim, litigation, proceeding, or written
threat thereof relates in any way to any violation of federal or state
securities laws. No disclosure by any party pursuant to this Section 5.02,
however, shall be deemed to prevent or cure any misrepresentation, breach of
warranty or breach of covenant.
5.03 Consents. LRI and Imperial shall each use their best efforts to
--------
obtain the consent or approval of each person whose consent or approval is
required in connection with the execution, delivery or performance of this
Agreement.
5.04 Regulatory Approvals. LRI and Imperial shall each take all actions
--------------------
necessary and make all filings required to be made with any governmental agency
or authority as a
14
<PAGE>
condition to consummation of the transactions contemplated by this Agreement so
that any waiting periods shall have expired and any approvals or permits
required of such agencies or authorities shall have been obtained on or prior to
the Closing Date.
5.05 Cause Conditions to be Satisfied. LRI and Imperial will each use
--------------------------------
their respective best efforts to take all action and to do all things necessary
or appropriate in order to consummate and make effective the transactions
contemplated by this Agreement, including the satisfaction (but not waiver) of
all conditions to the obligations of LRI and Imperial, respectively, set forth
in Sections 2.07 and 2.08 to be satisfied on or prior to the Closing Date.
-------- -------------
6. Termination of Agreement
------------------------
6.01 Termination of Agreement. Notwithstanding approval of this
------------------------
Agreement by the Boards of Directors of both LRI and Imperial, this Agreement
may be terminated and the transactions contemplated hereby abandoned at any time
on or prior to the Closing Date:
(a) by mutual written consent of LRI and Imperial;
(b) by either Imperial or LRI giving written notice to the
other on or before the Closing Date if such party is not satisfied with the
results of its continuing business, legal and accounting due diligence regarding
the other party;
(c) by either LRI or Imperial giving written notice to the
other on or before the Closing Date, if there has been a material breach by the
other of any of its respective representations, warranties or covenants set
forth herein, or a failure of any condition to which the obligations of such
party is subject;
(d) by either LRI or Imperial giving written notice to the
other on or before the Closing Date, if there has occurred an event giving such
parties or party a right to terminate this Agreement pursuant to Section 2.06;
------- ----
or
(e) by either LRI or Imperial if the Closing has not occurred on
or before ___________, 1996 which date may be extended by mutual agreement of
the Boards of Directors of LRI and Imperial unless the failure of such
occurrence shall be due to the failure of the party seeking to terminate this
Agreement to perform or observe the covenants, agreements and conditions hereof
to be performed or observed by such party at or before the closing.
6.02 Effect of Termination. In the event that this Agreement shall be
---------------------
terminated pursuant to Section 6.01 or because of the failure to satisfy any of
------- ----
the conditions specified in Sections 2.07 or 2.08, all further obligations of
---------------------
the parties under this Agreement shall terminate without further liability of
any party to another, and each party will pay all costs and expense incident to
its negotiation and preparation of this Agreement and to its performance of and
15
<PAGE>
compliance with all agreements and conditions contained herein or therein on its
part to be performed or complied with, including the fees, expenses and
disbursements of its counsel , provided that (a) the obligations of the parties
contained in Section 5.01 hereof shall survive any such termination and (b)
------- ----
nothing herein shall relieve a breaching or defaulting party from liability for
any such breach or default.
7. Survival and Indemnity.
----------------------
7.01 Survival. All of the representations and warranties of the parties
--------
contained in this Agreement shall survive the Closing Date, even if the damaged
party knew or had reason to know of any misrepresentation or breach of warranty
at the time of the Closing Date, and shall continue in full force and effect for
a period of two years thereafter.
7.02 Indemnity by Imperial. Imperial and its successors and permitted
---------------------
assigns shall, to the fullest extent permitted by law, indemnify, defend and
hold harmless LRI, its officers , directors and employees and their respective
successors and permitted assigns from and against: (a) Losses resulting from
Third Party Claims arising from the breach by Imperial of any representations,
warranties or covenants contained herein and provided that such Third Party
Claims arise and are communicated in writing to Imperial prior to the expiration
of two years following the Closing Date; and (b) Losses resulting from the
breach by Imperial of any representations, warranties or covenants contained
herein and provided that LRI's claim based thereupon is communicated in writing
to Imperial within two years following the Closing Date.
7.03 Indemnity by LRI. LRI and its respective successors and permitted
----------------
assigns shall, to the fullest extent permitted by law, indemnify, defend and
hold harmless Imperial, its officers, directors and employees and their
successors and permitted assigns from and against: (a) Losses resulting from
Third Party Claims arising from the breach by LRI of any representations,
warranties or covenants contained herein and provided that such Third Party
Claims arise and are communicated in writing to LRI prior to the expiration of
two years following the Closing Date; and (b) Losses resulting from the breach
by LRI of any representations, warranties or covenants contained herein and
provided that Imperial's claim based thereupon is communicated in writing to LRI
within two years following the Closing Date.
7.04 Demands. Any Indemnitee hereunder agrees that promptly upon its
-------
discovery of facts giving rise to a claim for indemnity under the provisions of
this Agreement, including receipt by it of notice of any Third Party Claim, with
respect to any matter as to which it claims to be entitled to indemnity under
the provisions of this Agreement, it will give prompt notice thereof in writing
to the Indemnitor, together with a statement of such information respecting any
of the foregoing as it shall have. Such notice shall include a formal demand for
indemnification under this Agreement and shall include an estimate of the amount
of the claim and the appropriate date(s) upon which the breach, act, omission or
event occurred if such amount or date(s) can be reasonably estimated. The
Indemnitor shall not be obligated to
16
<PAGE>
indemnify the Indemnitee with respect to any Third Party Claim if the Indemnitee
knowingly failed to notify the Indemnitor thereof in accordance with the
provisions of this Agreement in sufficient time to permit the Indemnitor or its
counsel to defend against such matter and to make a timely response thereto
including, without limitation, any responsive motion or answer to a complaint,
petition, notice or other legal, equitable or administrative process relating to
the Third Party Claim, only insofar as such knowing failure to notify the
Indemnitor actually resulted in prejudice or damage to the Indemnitor.
7.05 Right to Contest and Defend. The Indemnitor is entitled at its
---------------------------
cost and expense to contest and defend by all appropriate legal proceedings any
Third Party Claim with respect to which it is called upon to indemnify an
Indemnitee under the provisions of this Agreement; provided, that notice of the
intention to so contest shall be delivered by the Indemnitor to the Indemnitee
within 20 calendar days from the date of receipt by the Indemnitor of notice by
the Indemnitee of the assertion of the Third Party Claim. Any such contest may
be conducted in the name and on behalf of the Indemnitor or the Indemnitee as
may be appropriate. Such contest shall be conducted by reputable counsel
employed by the Indemnitor, but the Indemnitee shall have the right to
participate in such proceedings and to be represented by counsel of its own
choosing at its sole cost and expense. If the Indemnitee joins in any such
contest, the Indemnitor shall have full authority to determine all action to be
taken with respect thereto; provided, however, that the Indemnitor will not have
the authority to subject the Indemnitee to any obligation whatsoever, other than
the performance of purely ministerial tasks (e.g., the execution of settlement
agreements and other documentation) or obligations not involving material
expense. If the Indemnitor does not elect to contest any such claim, any
Indemnitor shall be bound by the result obtained with respect thereto by the
Indemnitee. At any time after the commencement of the defense of any Third Party
Claim, the Indemnitor may request the Indemnitee to agree in writing to the
abandonment of such contest or to the payment or compromise by the Indemnitor of
the asserted Third Party Claim, whereupon such action shall be taken unless the
Indemnitee determines that the contest should be continued, and so notifies the
Indemnitor in writing within 15 days of such request from the Indemnitor. If the
Indemnitee determines that the contest should be continued, the Indemnitor shall
be liable hereunder only to the extent of the amount that the other party to the
contested Third Party Claim had agreed unconditionally to accept in payment or
compromise as of the time the Indemnitor made its request therefor to the
Indemnitee.
7.06 Cooperation. If requested by the Indemnitor, the Indemnitee agrees
-----------
to cooperate with the Indemnitor and its counsel in contesting any Third Party
Claim that the Indemnitor elects to contest or, if appropriate, in making any
counterclaim against the person asserting the Third Party Claim, or any
cross-complaint against any person, but the Indemnitor will reimburse the
Indemnitee for any expenses incurred by it in so cooperating.
7.07 Right to Participate. The Indemnitor agrees to afford the
--------------------
Indemnitee and its counsel the opportunity to be present at, and to participate
in, conferences with all persons, including governmental authorities, asserting
any Third Party Claim against the Indemnitee or conferences with representatives
of or counsel for such persons.
17
<PAGE>
7.08 Payment of Damages. The Indemnitor shall pay to the Indemnitee in
------------------
immediately available funds the amount of any damages to which the Indemnitee
may become entitled by reason of the provisions of this Article 7, such payment
---------
to be made within 10 calendar days after any such amount of damages is finally
determined either by mutual agreement of the parties hereto or the final
unappealable judgment of a court of competent jurisdiction.
7.09 No Insurance: Subrogation. The indemnifications provided in this
-------------------------
Article 7 shall not be construed as a form of insurance and shall be binding
- ---------
upon and inure to the benefit of Imperial, LRI and its respective Affiliates,
heirs, successors and permitted assigns. To the extent permitted under existing
insurance contracts and applicable laws, Imperial and LRI hereby waive for
themselves, its Affiliates, heirs, successors and permitted assigns, including
without limitation any insurers, any rights to subrogation for Losses arising
from Third Party Claims for which each of them is respectively liable or against
which each respectively indemnifies the other, and, if necessary, said parties
shall obtain waiver of such subrogation from its respective insurers.
8. Miscellaneous
-------------
8.01 Press Releases and Public Announcements. No party shall issue
---------------------------------------
any press release or make any public announcement relating to the subject matter
of this Agreement without the prior written approval of the other parties.
Provided however, that any party may make any public disclosure it believes in
good faith is required by applicable law or any listing or trading agreement
concerning its publicly-traded securities (in which case the disclosing party
will use its reasonable efforts to advise the other party prior to making the
disclosure)
8.02 Brokers and Finders. Each party hereto represents that no
-------------------
broker, agent, finder or other party has been retained by either party, and no
brokerage or finder's fees or agent's commissions or other like payment has been
agreed to be paid by him or it in connection with this Agreement or on account
of the transactions contemplated by this Agreement. Each party agrees to
indemnify and hold harmless the other parties from and against any and every
claim arising by breach of the aforesaid representation and warranty and all
costs and expenses, legal or otherwise, which any such party may incur as the
result of any such claim.
8.03 Survival of Representations. All representations, warranties and
---------------------------
agreements contained herein or made in writing by the parties in connection with
the transaction contemplated hereby, except any representation, warranty or
agreement as to which compliance may have been appropriately waived, shall
survive the execution, delivery and Closing of this Agreement.
18
<PAGE>
8.04 No Third-Party Beneficiaries. This Agreement shall not confer
----------------------------
any rights or remedies upon any person other than the parties and their
respective successors and permitted assigns.
8.05 Expenses and Attorney Fees. Each party will pay its own expenses
--------------------------
in connection with the transaction contemplated herein, including, without
limiting the generality of the foregoing, legal and accounting fees.
8.06 Partial Invalidity. If any term, covenant or condition of this
------------------
Agreement or the application thereof to any person or circumstance shall, to any
extent, be invalid or unenforceable, the remainder of this Agreement, or the
application of such term, covenant or condition to persons or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term, covenant or condition of this Agreement shall be
valid and enforced to the fullest extent permitted by law.
8.07 Notices. Any notice relating to this Agreement shall be deemed
-------
sufficiently given and served for all purposes if given by a telegram filed,
charges prepaid, or a writing deposited in the United States Mail, postage
prepaid and registered or certified within the Continental United States,
addressed as follows:
(a) Notices to LRI shall be addressed as follows:
LaTex Resources, Inc.
Suite 1000
4200 East Skelly Drive
Tulsa, Oklahoma 74135
Attention: John L. Cox, Vice President and Chief
Financial Officer
with copy to:
S. Erickson Grimshaw, Esq.
Pray, Walker, Jackman,
Williamson & Marlar
900 ONEOK Plaza
Tulsa, Oklahoma 74103
(b) Notices to Imperial shall be addressed as follows:
19
<PAGE>
Imperial Petroleum, Inc.
Suite 312
100 NW Second Street
Evansville, Indiana 47708
Attention: Jeffrey T. Wilson, Chairman and Chief
Executive Officer
8.08 Successors and Assigns. This Agreement shall inure to the benefit
----------------------
of and be binding upon the successors and assigns of the parties hereto and no
right or liability or obligation arising hereunder may be assigned by any party
hereto without the prior written consent of the other parties.
8.09 Time of Essence. Time is of the essence as to all of the
---------------
terms, conditions and provisions hereof.
8.10 Law Governing/Fees. This Agreement shall be construed and
------------------
interpreted in accordance with and governed and enforced in all respects by the
laws of the State of Oklahoma. In the event any legal proceeding is instituted
to interpret or enforce the provisions of this Agreement, the prevailing
party(s) shall be entitled to recover its reasonable attorney fees from the
non-prevailing party(s) hereto.
8.11 Headings. The section, subsection and paragraph headings
--------
throughout this Agreement are for convenience and reference only, and the words
contained therein shall not be held to expand, modify, amplify or aid in the
interpretation, construction or meaning of this Agreement.
8.12 Counterparts. This Agreement may be executed in any number of
------------
counterparts, each signed by different persons and all of said counterparts
together shall constitute one and the same instrument, and such instrument shall
be deemed to have been made, executed and delivered on the date first
hereinabove written, irrespective of the time or times when the same or any
counterparts thereof actually may have been executed and delivered.
8.13 Entire Agreement. This writing contains the entire agreement of
----------------
the parties hereto and may not be modified, altered or changed in any manner
whatsoever, except by a written agreement signed by the parties hereto.
20
<PAGE>
LaTex Resources, INC.
By: /s/ John L Cox
-----------------------------
John L. Cox,
Vice President and Chief
Financial Officer
IMPERIAL PETROLEUM, INC.
By: /s/ Jeffrey T. Wilson
-----------------------------
Jeffrey T. Wilson,
Chairman and Chief
Executive Officer
21
<PAGE>
EXHIBIT 10.119
RP&C
Rauscher Pierce & Clark
4441 West Airport Freeway
Irving, Texas 75062
(214) 252-0193 Fax (214) 252-0962
Peter A. Gerard
Managing Director-North America
PRIVATE AND CONFIDENTIAL
- ------------------------
November 27, 1995
LaTex Resources, Inc.
4200 Skelly Drive
Suite 1000
Tulsa, Oklahoma 74135
Attention: Mr. Jeffrey T. Wilson, Chairman and CEO
- ---------
Gentlemen:
Rauscher Pierce & Clark, Inc. and Rauscher Pierce & Clark Limited (hereinafter
collectively "RP&C") are pleased and honoured to have been selected to represent
LaTex Resources, Inc. (the "Company") as the Company's financial advisor on the
terms set forth below:
l. The Company hereby appoints RP&C and RP&C agrees to serve as the
Company's financial advisor from 1 December 1995 until 1 June 1997.
The scope of RP&C's services will include advising the Company on
manners relating to:
a. The development of a corporate financing strategy;
b. Identifying potential sources of capital and discussing
the Company and its activities and prospects with
European-based institutional and private investors with a
view to recommending to the Company a private placement
("Placement") of either debt or equity securities
(hereinafter "Securities"). In the event such placement of
Securities is agreed by the Company, and the parties
execute a formal engagement agreement, RP&C's duties shall
include advising on the structuring of the offering and
terms of the Securities, assisting to prepare
documentation and marketing the proposed offering to
investors in Europe.
c. The identification of potential merger and/or acquisition
candidates ("Candidate ) and representing the Company in
discussions and negotiations with candidates
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 7 of 10
<PAGE>
2. Other than through RP&C, during the term of this Agreement the
Company will not, directly or indirectly sell or offer, or attempt to
offer to dispose of; or solicit any offer to buy, or otherwise
approach or negotiate in respect of the sale of the Company's
Securities. In addition the Company will not enter into negotiations
or execute any letters of intent or commitment letters relating to
potential business combination transactions, other than through RP&C.
3. The Company shall be responsible for the contents of any disclosure
documents used by RP&C in connection with its services hereunder, and
you represent that such documents will contain any untrue statements
of a material fact or omit to state a material fact necessary in
order to make the statements made, in light of the circumstances in
which they were made, not misleading. In rendering our services, we
will use only such information and documents as are provided by you
or prepared by us with your approval, and we will not make any
unauthorized or untrue statements of a material fact or omit to state
a material fact that is necessary in order to make the statements
made by us, in light of the circumstances in which they were made,
not misleading.
4. The Company will reimburse RP&C monthly for all reasonable
out-of-pocket expenses (including travel, entertainment, legal fees
and expenses) incurred in connection with RP&C's services hereunder.
5. During the term of this Agreement, the Company shall pay RP&C a non-
refundable monthly retainer of $5,000 commencing December 1, 1995.
6. In the event that the Company agrees to go forward with a Placement,
the Company and RP&C shall enter into an engagement letter with
respect to such Placement, which letter will provide, inter alia,
that the Company shall:
(a) Pay RP&C a Placement Agent fee ("Placement Fee") equal to
between 8% and 10% (depending on the size of the offering)
of the aggregate gross proceeds from the Placement.
(b) Sell for a price of $100 to RP&C, concurrently with the
successful completion and closing of the Placement,
warrants to purchase the number of shares of Company's
common stock equal to 10% of the amount closed in the
Placement and exercisable at the same price per share as
paid by investors in the Placement.
7. In the event that the Company commences discussions with a potential
Candidate, RP&C's services would include assisting the Company in the
negotiation of the financial aspects of the proposed transaction. For
RP&C's services, it is agreed that the Company shall pay RP&C a fee
equal to 2% of the aggregate consideration received by the Candidate
and/or Company. Such fee shall be contingent upon the consummation of
a transaction and, except as otherwise provided below, be payable to
us in cash.
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 8 of 10
<PAGE>
In the case of an acquisition, the aggregate consideration shall be
deemed to be the total amount received or paid upon consummation of
the acquisition (including any debt or capital lease obligations
assumed, extinguished or discharged), plus, in the case of an
acquisition of assets, the net value of any current assets not sold.
If the consideration per share to be received by the holders of the
common stock exceeds the conversion price of any of the outstanding
convertible securities (excluding stock options), such securities
shall be considered to have been converted for purposes of
calculating the amount of aggregate consideration. If such aggregate
consideration may be increased by contingent payments related to
future earnings or operations, the portion of our fee relating
thereto shall be calculated and paid when and as such contingent
payments are made.
In the event that the consideration is paid in whole or in part in
the form of securities of the Company or the Candidate, the value of
such securities, for purposes of calculating our fee, shall be the
fair market value thereof, as the parties hereto shall mutually
agree, on the day prior to the closing of the sale; provided,
however, that if such securities consist of stock with an existing
public trading market, the value thereof shall be determined by the
last sales price for such stock on the last trading day thereof prior
to such closing.
The Company also agrees to reimburse RP&C for all out-of-pocket
expenses incurred on this project. Such expense reimbursement is not
contingent upon the successful completion of the transaction
contemplated hereunder, and shall be payable as billed by RP&C from
time to time.
8. In the event that any action, proceeding or investigation is brought
or asserted against RP&C in connection with any matter referred to in
this Agreement, the Company will reimburse RP&C periodically for its
reasonable legal and other expenses (including the cost of any
investigation and preparation) incurred in connection therewith,
except to the extent that such action, proceeding or investigation
results from RP&C's own gross negligence, bad faith, or RP&C's breach
of this Agreement in performing the services which are the subject of
this letter. The Company also will indemnify RP&C against any losses,
claims, damages or liabilities incurred by RP&C arriving out of a
claim brought in connection with any matter referred to in this
letter, except to the extent that any such loss, claim, damage or
liability results from RP&C's gross negligence.
The Company's reimbursement, indemnity and contribution obligations
under this paragraph shall extend upon the same terms and conditions
to RP&C's directors, shareholders, officers and employees, and shall
be binding upon and inure to the benefit of any of the Company's
successors and assigns; The foregoing provisions shall survive the
period of RP&C's services under this letter.
9. The Company understands that RP&C's engagement may involve work in
the UK which will or may be described as "investment business" for
the purposes of the UK Financial Services Act 1986 ("FSA"). This work
will be undertaken by Rauscher Pierce & Clark Limited ("RPCL"), which
is a member of The Securities and Futures Authority ("SFA"). On the
basis of the information the Company has supplied and on the basis of
the
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 9 of 10
<PAGE>
Company's experience and understanding in relation to investments, we
have categorized the Company as a non-private customer. As a
consequence of this categorization, the Company will lose the
protections afforded to private customers under the SFA Rules. Please
note that the Company's rights to sue RPCL for damages under Section
62 of the FSA will be restricted as you will only be able to sue for
breaches of specific obligations owed to the Company. You will also
lose the right of access to the Consumer Arbitration Scheme of the
SFA.
10. The Company understands that RP&C will be acting as the Company's
financial advisor and that no understanding, expressed or implied,
has been made by RP&C that a Placement can be made.
11. RP&C shall be entitled to full compensation from the Company for any
party with which discussions looking to a sale of the Company's
Securities have been held during the period, including any agreed
extensions, in the event that at any time prior to the expiration of
one year after termination of this Agreement a sale of the Company's
Securities is consummated with such party.
Kindly confirm the Company's acceptance and agreement to the foregoing terms by
signing and returning one of the enclosed duplicates of this letter which will
thereupon constitute an agreement between us. Thank you again for the
opportunity to represent you.
Very truly yours,
RAUSCHER PIERCE & CLARK, INC.
/s/ Peter A. Gerard
- -------------------------------------
Peter A. Gerard, Managing Director -
North America
Accepted and agreed to as of 30 November 1995
--
LATEX RESOURCES, INC.
By: /s/ Jeffrey T. Wilson
------------------------------------
Jeffrey T. Wilson Chairman and CEO
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 10 of 10
<PAGE>
EXHIBIT 10.120
[LOGO OF WOOD ROBERTS, LLC. APPEARS HERE]
WOOD ROBERTS, LLC.
Investment Banking
Louisiana Place, Suite 3150
1201 Louisiana
Houston, Texas, U.S.A. 77002
Tel: (713) 751 9300 - Fax: (713) 751 9400
April 23, 1996
Mr. Jeffrey T. Wilson
President
Latex Resources, Inc.
4200 East Skelly Drive, Suite 1000
P.O. Box 702373
Tulsa, Oklahoma 74170
Re: Potential Mergers with Alliance Resources and Great Western Resources
Dear Jeff,
Wood Roberts, LLC. has introduced Latex Resources, Inc. ("Latex") to Alliance
Resources plc ("Alliance") and Great Western Resources, Inc. ("Great Western")
as potential merger partners and is prepared to advise Latex in any subsequent
negotiations with them on the following terms and conditions:
1. A Success Fee, payable by Latex upon the closing of any transaction, or
upon the consummation of a business relationship, between Latex and
Alliance, calculated according to the following formula: Five Percent (5%)
of the first One million Dollars ($1,000,000), Four Percent (4%) of the
next One million Dollars($1,000,000), Three Percent (3%) of the next One
million Dollars ($1,000,000), Two Percent (2%) of the next One million
Dollars ($1,000,000) and One percent (1%) of the value of the transaction
or transactions in excess of Four million Dollars ($4,000,000), such value
to be based on the value of oil and gas reserves and working capital (net
of debt) of Alliance used in the transaction to determine the share of the
combined enterprise that is obtained by Alliance shareholders; in addition
to the cash Success Fee, Warrants, valid for six (6) years, to purchase
common stock of the combined companies at a price per Latex share
equivalent to the price per share used in the transaction, the number of
Warrants to be determined by dividing that price per share into the cash
Success Fee paid for the transaction involving Alliance;
2. For our services relative to the possible merger between Great Western and
Latex (or Latex/Alliance), including advice and assistance to Latex (or
Latex/Alliance) up to the signing of a Letter of Intent, or the equivalent
thereof, to combine the businesses of the two parties, a Fee in the amount
of Twenty thousand (20,OOO) Shares of Latex Resources, Inc. Common Stock,
if the combination is between Latex and Great Western, or a Fee in the
amount of ten thousand Dollars ($10,000), if the combination is between
Latex/Alliance and Great Western, either fee payable by Latex on signing of
a Letter of Intent;
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements
<PAGE>
April 23, 1996
Mr. Jeffrey T. Wilson
Page 2
3. A Success Fee, payable by Latex (or Latex/Alliance, as the case may be)
upon the closing of any transaction, or upon the consummation of a business
relationship, between Latex (or Latex/Alliance) and Great Western,
calculated according to the following formula: Five Percent (5%) of the
first One million Dollars ($1,000,000), Four Percent (4%) of the next One
million Dollars ($1,O00,000), Three Percent (3%) of the next One million
Dollars ($1,000,000), Two Percent (2%) of the next One million Dollars
($1,000,000) and One percent (1%) of the value of the transaction or
transactions in excess of Four million Dollars ($4,000,000), such value to
be based on the value of oil and gas reserves and working capital (net of
debt) of Great Western used in the transaction to determine the share of
the combined enterprise that is obtained by Great Western shareholders; in
addition to the cash Success Fee, Warrants, valid for six (6) years, to
purchase common stock of the combined companies at a price per Latex share,
or Latex/Alliance share, as the case may be, equivalent to the price per
share used in the transaction, the number of Warrants to be determined by
dividing that price per share into the cash Success Fee paid for the
transaction involving Great Western;
4. Reimbursement of Wood Roberts' travel and lodging and other expenses, as
pre-approved by Latex (or Latex/Alliance), as related directly to the
aforementioned transactions;
5. Wood Roberts undertakes to keep any documents, data or other information
received by us from Latex (and Latex/Alliance) confidential; and
6. Latex undertakes to honor the provisions of this agreement with respect to
any future transaction with Alliance and/or Great Western for a period of
two years from the date of acceptance as noted below.
If the above is in accordance with your understanding please signify your
acceptance by signing and dating one copy of this document in the spaces
provided below and returning it to Wood Roberts, LLC. at the letterhead address.
Very truly yours,
/s/ John R. Martinson
John R. Martinson
Managing Director
ACCEPTED:
Latex Resources, Inc.
By: /s/ Jeffrey T. Wilson 4/29/96
------------------------------------ -----------------------
Jeffrey T. Wilson, President Date
Reference 4.29 (ix) Contacts: brokerage or Finder's Agreements
<PAGE>
EXHIBIT 10.121
[LOGO OF WOOD ROBERTS, LLC. APPEARS HERE]
WOOD ROBERTS, LLC.
Investment Banking
Louisiana Place, Suite 3150
1201 Louisiana Street
Houston, Texas, U.S.A. 77002
Tel: + 1-713-751-9300 E-mail: [email protected] Fax: + 1-713-751-9400
July 22, 1996
Mr. Jeffrey T. Wilson
President
Latex Resources, Inc.
4200 East Skelly Drive, Suite 1000
P.O. Box 702373
Tulsa, Oklahoma 74170
Re: Potential Merger with Alliance Resources. Inc.
---------------------------------------------------
Dear Jeff,
Wood Roberts, LLC. ("Wood Roberts") has introduced Latex Resources, Inc.
("Latex") to Alliance Resources, Inc. ("Alliance") as a potential merger partner
and has advised and continues to advise Latex upon the terms and structure of
the merger.
Wood Roberts and Latex have entered into a letter agreement referenced "Re:
Potential Mergers with Alliance Resources and Great Western Resources" and dated
April 23, 1996 (the "Initial Agreement"), which contains the terms of
compensation payable by Latex in relation to any such merger.
This letter agreement (the "Agreement") supersedes and replaces the Initial
Agreement and is a binding and non-negotiable document with regard to the
subject matters contained herein.
The Agreement shall be disclosed by Latex to Alliance and shall be made part of
the closing documentation of the Merger (as hereinafter defined) and Latex shall
cause the Agreement to be ratified by Alliance and all fees specified herein to
be paid by the surviving entity of the Merger at closing.
Upon the closing of an agreement of merger or any other similar relationship or
combination by and between Latex and Alliance or any subsidiary or associated
companies or entities thereof (a "Merger"), Latex shall pay to Wood Roberts a
fee of US$240,000 (two hundred and forty thousand dollars). Such fee shall be
paid at the closing of the Merger and shall be paid by check or by wire transfer
for value immediately upon presentation or receipt.
Reference 4.29 (ix) Contacts: Brokerge or Finder's Agreements
<PAGE>
[LOGO OF WOOD ROBERTS, LLC. APPEARS HERE]
July 22, 1996
Mr. Jeffrey T. Wilson
Page 2
Latex shall reimburse Wood Roberts' travel and lodging and other expenses, as
pre-approved by Latex and as related directly to the aforementioned transaction.
Wood Roberts undertakes to keep confidential any documents, data and other
information received by it from Latex.
If the above is in accordance with your understanding please signfy your
acceptance by signing and dating one copy of this document in the spaces
provided below and returning it to Wood Roberts at the letterhead address.
Very truly yours,
/s/ John L. Ogden
John L. Ogden
Managing Director
ACCEPTED:
Latex Resources, Inc.
By: /s/ Jeffrey T. Wilson 7/25/96
------------------------------------- --------------------
Jeffrey T. Wilson, President Date
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 2 of 10
<PAGE>
EXHIBIT 10.122
[LOGO OF WOOD ROBERTS, LLC. APPEARS HERE]
WOOD ROBERTS, LLC.
Investment Banking
Louisiana Place, Suite 3150
1201 Louisiana Street
Houston, Texas, U.S.A. 77002
Tel: +1-713-751-9300 E-mail: [email protected] Fax: +1-713-751-9400
July 22, 1996
Mr. Jeffrey T. Wilson
President
Latex Resources, Inc.
4200 East Skelly Drive, Suite 1000
PO. Box 702373
Tulsa, Oklahoma 74170
Re: Refinancing
---------------
Dear Jeff,
Wood Roberts, LLC. and Wood Roberts, Inc. (jointly "Wood Roberts") have
introduced Latex Resources, Inc. ("Latex") to various banks and financial
institutions with a view to such banks and financial institutions refinancing
the current debt to Bank of America and other debt of Latex (the "Latex Debt")
including but not limited to: Midland Bank (also known as HSBC); Union Bank of
California; and Rothschild - Denver. Wood Roberts has advised and continues to
advise Latex upon the terms and structure of such refinancing. All such banks
and financial institutions introduced to Latex by Wood Roberts other than those
specified above are or will be noted and acknowledged in addenda to this letter
agreement (the "Agreement").
The Agreement supersedes and replaces any and all previous agreements relating
to the subject matter hereof. It contains the terms of that certain agreement
titled "Engagement Agreement (Corporate Financial Advisory Agreement)" entered
into on August 5, 1994, by and between Latex and Wood Roberts, Inc. relating to
fees payable by Latex upon the provision of debt and is a ratification and
acceptance of such terms.
Upon the closing of an agreement to refinance the Latex Debt, Latex shall pay to
Wood Roberts, LLC. a fee equal to 0.5% (one half of one percent) of the amount
of the refinancing facility so agreed. Such fee shall be paid at the closing of
the agreement to refinance and shall be paid by check or by wire transfer for
value immediately upon presentation or receipt.
Latex shall reimburse Wood Roberts' expenses, as pre-approved by Latex and as
related directly to the aforementioned transaction.
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 3 of 10
<PAGE>
[LOGO OF WOOD ROBERTS, LLC. APPEARS HERE]
July 22, 1996
Mr. Jeffrey T. Wilson
Page 2
Wood Roberts undertakes to keep confidential any documents, data or other
information received by it from Latex.
The Agreement is a binding and non-negotiable document and shall be disclosed by
Latex to Alliance Resources, Inc. ("Alliance"). In the event that an agreement
to refinance the Latex Debt is not entered into prior to the closing of the
merger of Latex and Alliance, the Agreement shall be made part of the closing
documentation of the merger and Latex shall cause the Agreement to be ratified
by Alliance and all fees specified herein to be paid by the surviving entity of
the merger at the closing of any subsequent agreement to refinance the Latex
Debt.
If the above is in accordance with your understanding please signify your
acceptance by signing and dating one copy of this document in the spaces
provided below and returning it to Wood Roberts, LLC. at the letterhead address.
Very truly yours,
/s/ John L. Ogden
John L. Ogden
Managing Director
ACCEPTED:
Latex Resources, Inc.
By: /s/ Jeffrey T. Wilson 7/25/96
------------------------------------------ --------------------
Jeffrey T. Wilson, President Date
Reference 4.29 (ix) Contacts: Brokerage or Finder's Agreements Page 4 of 10
<PAGE>
EXHIBIT 10.123
SETTLEMENT AGREEMENT
--------------------
This Settlement Agreement ("Agreement") is executed and effective on the
date indicated below, and it is by and between Torch Energy Marketing, Inc.
("TEMI"), Nuevo Liquids, Inc. ("Nuevo"), LaTex Resources, Inc. ("LaTex
Resources"), LaTex Petroleum Corporation ("LaTex Petroleum"), Panda Resources,
Inc. ("Panda"), Steven Wilson ("Wilson"), and Wilson Tucker & Associates
("Wilson Tucker").
WITNESSETH:
WHEREAS, on July 16, 1993, Nuevo and Panda executed a Stock Purchase
Agreement, under which Nuevo purchased the stock of Richfield Natural Gas, Inc.
from Panda, and LaTex Resources guaranteed Panda's obligations to Nuevo; and
WHEREAS, on July 26, 1993, TEMI and LaTex Resources executed a Stock
Purchase Agreement, under which TEMI purchased the stock of Panda from LaTex
Resources; and
WHEREAS, on October 10, 1994, Nuevo sued LaTex Resources and LaTex
Petroleum for a breach of contract and fraud in connection with the Stock
Purchase Agreement, originally in the 234th Judicial District Court of Harris
County, Texas under Cause No. 94-049944, which was subsequently removed to the
United States District Court for the Southern District of Texas, Houston
Division, under civil action number H-95-0028 ("Nuevo case"); and
WHEREAS, on October 13, 1994, TEMI sued LaTex Resources and LaTex
Petroleum for breach of contract and fraud in connection with the Stock Purchase
Agreement, in the 270th Judicial District Court of Harris County, Texas, under
Cause No. 94-050945, which was subsequently removed to the United States
District Court for the Southern District of Texas, Houston Division, under civil
action number H-95-0029 ("TEMI case"); and
WHEREAS, on October 6, 1995, TEMI amended its complaint in the TEMI case,
dropping LaTex Petroleum as a Defendant and adding as Defendants Wilson and
Wilson Tucker for alleged accountants malpractice, and A. Dean Fuller for
alleged breaches of fiduciary duty; and
WHEREAS, on March 21, 1995, LaTex Petroleum sued Panda in the District
Court in and for Tulsa County, State of Oklahoma, under case number CJ-95-01302,
alleging breach of contract and non-payment for the purchase and delivery of
natural gas ("Oklahoma case"); and
WHEREAS, on October 7, 1994, Northern Natural Gas Company sued LaTex
Resources in the 152nd Judicial District Court of Harris County, Texas under
Cause No. 94-049766, alleging breach of contract in connection with failure to
pay demand or reservation charges under two natural gas transportation
agreements ("Northern case"); and
<PAGE>
WHEREAS, on October 20, 1995, LaTex Resources filed a Motion for Leave to
File Third Party Action of LaTex Resources, Inc. and proposed Third Party Action
against Panda in the Northern case, alleging breach of contract and negligence
in connection with a July 25, 1993 Management Agreement between LaTex Resources
and Panda; and
WHEREAS, TEMI, Nuevo, LaTex Resources, LaTex Petroleum, Panda, Wilson, and
Wilson Tucker, while disputing and denying the allegations asserted in the
Nuevo, TEMI, Oklahoma, and Northern cases, desire to avoid the expense and
uncertainty of such litigation by settling and compromising all of their
disputes.
NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, including the recitals set forth above, TEMI, Nuevo, LaTex
Resources, LaTex Petroleum, Panda, Wilson, and Wilson Tucker agree as follows:
1. Consideration
----------------
1.1 LaTex Resources agrees to pay Nuevo a total of $50,000.00, payable as
follows: $20,000.00 no later than December 7, 1995, and an additional
$30,000.00 within ninety days of execution of this Agreement.
1.2 The payments referenced in paragraph 1.1 will be delivered to Mike Watford,
1221 Lamar, Suite 1600, Houston, Texas 77010, and they will be evidenced by
cashier's check or wire transfer.
1.3 LaTex Petroleum hereby assigns and conveys all of its claims against Panda
in the Oklahoma case, including without limitation the alleged accounts
receivable of approximately $163,000.00 for the purchase and delivery of
natural gas, to Nuevo; provided, however, LaTex Petroleum will also cause
its attorneys to dismiss the Oklahoma case with prejudice, by execution and
entry of the instruments attached hereto as Exhibit "A".
1.4 LaTex Resources agrees to pay TEMI a total principal amount of $250,000.00,
payable as follows: $50,000.00 within one year of execution of this
Agreement, another $50,000.00 within two years of execution of this
Agreement, and another $150,000.00 within three years of execution of this
Agreement.
1.5 The $250,000.00 in principal payments referenced in paragraph 1.4 shall
additionally bear interest at 6% per annum from the date of execution of
this Agreement. The interest payment totals $36,000.00, and it is payable
along with the final principal payment referenced in paragraph 1.4 of
$150,000.00 due within three years of execution of this Agreement.
<PAGE>
1.6 The payments referenced in paragraphs 1.4 and 1.5 will be delivered to
Scott Potter, 1221 Lamar, Suite 1600, Houston, Texas 77010, and they will
be evidenced by cashier's checks or wire transfer.
1.7 LaTex Resources agrees to accept assignment from Panda of any and all
obligations owing under the May 2, 1989 agreement between Panda and
Northern Natural Gas Company, as amended, relating to the obligation to
flow or pay for the transportation of natural gas through a transportation
facility located in Dewey County, Oklahoma (sometimes referred to as "Dewey
County Obligation"); to indemnify Panda and TEMI against claims from
Northern Natural Gas relating to the Dewey County Obligation; and to use
its best efforts to secure a release of Panda's and TEMI's obligations to
Northern Natural Gas Company under the Dewey County Obligation.
2. Disposition of Litigation
-----------------------------
2.1 Nuevo agrees to dismiss with prejudice all of its claims against LaTex
Resources and LaTex Petroleum in the Nuevo case, with each side bearing its
attorneys' fees, expenses, and court costs. The attorneys for Nuevo, LaTex
Resources, and LaTex Petroleum will direct their attorneys to secure the
dismissal with prejudice by the execution and entry of the instruments
attached hereto as Exhibit "B".
2.2 TEMI will dismiss with prejudice all of its claims against Wilson and
Wilson Tucker in the TEMI case, with each side bearing its attorneys' fees,
expenses, and court costs. The attorneys for TMI, Wilson, and Wilson Tucker
will direct their attorneys to secure the dismissal with prejudice by the
execution and entry of the instruments attached hereto as Exhibit "C".
2.3 LaTex Petroleum will dismiss with prejudice all of its claims against Panda
in the Oklahoma case, with each side bearing its own attorneys' fees,
expenses and court costs. The attorneys for LaTex Petroleum and Panda will
direct their attorneys to secure the dismissal with prejudice by the
execution and entry of the instruments attached hereto as Exhibit "A".
2.4 LaTex Resources will withdraw its Motion for leave to File Third Party
Action of LaTex Resources, Inc. and proposed Third Party Action against
Panda in the Northern case. LaTex Resources and Panda will direct their
attorneys to secure this withdrawal by the execution and entry of the
instruments attached hereto as Exhibit "D". Despite the withdrawal of the
Third Party Action, Panda and TEMI will produce documents regarding the two
transportation agreements at issue upon request by LaTex Resources and will
use best efforts to provide witnesses for deposition and trial (at the
expense of LaTex Resources, if travel is necessary) who are under their
control.
<PAGE>
2.5 The obligations of LaTex Resources referenced in paragraphs 1.4, 1.5, 1.6,
and 1.7 shall be memorialized in an agreed judgment, which shall be in
favor of TEMI and against LaTex Resources in the amount of $1 million, less
any payments that LaTex Resources has previously made to TEMI pursuant to
said paragraphs. The agreed judgment will be signed by the attorneys for
TEMI and LaTex Resources, and it will be submitted to the Judge presiding
in the TEMI case for signature. However, the agreed judgment will not be
abstracted, executed upon, or otherwise enforced, unless and until LaTex
Resources defaults in any of its obligations referenced in paragraphs 1.4,
1.5, 1.6, and 1.7. In the event LaTex Resources timely and properly
satisfies its obligations under said paragraphs, a release of the agreed
judgment will be executed by the parties and filed with the Court. In order
to accomplish the foregoing, TEMI and LaTex Resources will direct their
attorneys to execute and enter with the Court the form of agreed judgment
attached hereto as Exhibit "E", seeking enforcement of said agreed judgment
only in the judgement of the described defaults, and to execute the form of
release of judgment attached hereto as Exhibit "F", which will be filed
upon timely and proper satisfaction of the described obligations.
3. Mutual Releases
-------------------
3.1 Temi, Nuevo, LaTex Resources, LaTex Petroleum, Panda, Wilson, and Wilson
Tucker, for themselves and all who claim by, through, or under them, hereby
mutually, finally, and fully release, acquit, and forever discharge one
another and their respective attorneys, agents, employees, employers,
representatives, insurers, insureds, heirs, executors, administrators,
predecessors, successors, assigns, affiliates, subsidiaries, and parent
companies, from any and all claims, demands, causes of action, and
liability, they may have against one another, whether matured or
contingent, past or present, known or unknown, including without limitation
those in any way arising out of the allegations that were asserted, or
could have been asserted, in the Nuevo, TEMI, Oklahoma, or Northern cases.
3.2 The mutual releases referenced in paragraph 3.1 do not include the
obligations arising under this Agreement, which survive the execution of
this Agreement and remain in full force and effect.
4. Successors
-------------
4.1 This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their agents, representatives, executors, successors,
and assigns.
<PAGE>
5. Miscellaneous
-----------------
5.1 The captions, headings and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit, amplify or modify the
terms and provisions hereof.
5.2 This Agreement may be executed in two or more counterparts, and it shall
not be necessary that any one of the counterparts be executed by all of the
parties hereto. Each fully or partially executed counterpart shall be
deemed an original, but all such counterparts taken together shall
constitute but one and the same instrument.
5.3 Each party shall bear all attorneys' fees, costs and expenses arising from
the actions of their own counsel in connection with the above described
lawsuits and any and all matters related thereto.
5.4 This Agreement shall be construed and interpreted in accordance with the
laws of the State of Texas, and the venue for the adjudication of any
disputes arising under the Agreement shall be Harris County, Texas.
5.5 The parties declare and represent that no promise, inducement or other
agreement not expressly contained herein has been made conferring any
benefit upon any party. The parties further declare and represent that the
Agreement contains the entire Agreement and that the terms of the Agreement
are contractual and not recitals only.
5.6 In the event of any proceeding arising out of any disagreement between the
parties resulting from any provision of this Agreement, the prevailing
party in any such proceeding shall recover all of such party's reasonable
attorneys' fees and costs incurred in each and every such proceeding,
including any and all appeals or petitions therefrom.
EXECUTED and effective 7th day of December 1995.
TORCH ENERGY MARKETING, INC.
By:/s/ Scott Potter
-------------------------------------
Scott Potter, President
NUEVO LIQUIDS, INC.
By:/s/ Mike Watford
-------------------------------------
Mike Watford, President
<PAGE>
LaTEX PETROLEUM CORPORATION
By: /s/ Jeffrey T. Wilson
-------------------------------------
Name: Jeffrey T. Wilson
--------------------------------
Title: President
-------------------------------
LaTEX RESOURCES, INC.
By: /s/ Jeffrey T. Wilson
-------------------------------------
Name: Jeffrey T. Wilson
--------------------------------
Title: President
-------------------------------
PANDA RESOURCES, Inc.
By: /s/ Roland Sledge
-------------------------------------
Roland Sledge, Vice President
STEVEN WILSON
By: /s/ Steven Wilson
-------------------------------------
WILSON TUCKER & ASSOCIATES
By: /s/ Steven L. Wilson
-------------------------------------
Name: Steven L. Wilson
--------------------------------
Title: Partner
-------------------------------
<PAGE>
IN THE DISTRICT COURT IN AND FOR TULSA COUNTY
STATE OF OKLAHOMA
LATEX PETROLEUM CORPORATION (S)
Plaintiff (S)
(S)
VS. (S) Case No. CJ-95-01302
(S)
PANDA RESOURCES, INC. (S)
Defendant (S)
AGREED MOTION TO DISMISS WITH PREJUDICE
---------------------------------------
TO THE HONORABLE JUDGE OF SAID COURT:
COMES NOW, LaTex Petroleum Corporation, Plaintiff (referred to as LaTex"),
and Panda Resources, Inc., Defendant (referred to as "Panda"), and file their
Agreed Motion to Dismiss with Prejudice, and show the Court as follows:
I.
LaTex and Panda have settled this case. Part of the settlement requires
this action by LaTex against Panda to be dismissed with prejudice. As such, the
parties jointly request the Court to honor their agreement and dismiss LaTex's
claims with prejudice.
WHEREFORE, PREMISES CONSIDERED, Latex Petroleum Corporation, Plaintiff, and
Panda Resources, Inc., Defendant, request the Court to dismiss LaTex's claims
against Panda with prejudice, with attorney's fees, expenses, and court costs to
be borne by the party incurring same, and for such other and further relief to
which they may be justly entitled.
Respectfully submitted,
----------------------------------------
H. Gregory Maddux, OBA #10582
MADDUX & MADDUX
Attorney for the Plaintiff
4137 South Harvard, Suite D
Tulsa, Oklahoma 74135
918/748-8987
FAX 918/743-8207
Attorney for Plaintiff LaTex Petroleum Corporation
<PAGE>
----------------------------------------
Frederic Dorwart, OBA #2436
J. Michael Medina, OBA #6113
124 E. Fourth Street
Tulsa, Oklahoma 74103-5010
(918) 583-9922
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
----------------------------------------
Richard L. Rothfelder
Michael C. Falick
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorneys for Defendant Panda Resources, Inc.
<PAGE>
CERTIFICATE OF SERVICE
----------------------
I hereby certify that a true and correct copy of the above and foregoing
instrument has been forwarded by certified mail, return receipt requested,
addressed to the following:
H. Gregory Maddux
MADDUX & MADDUX
Attorney for the Plainfiff
4137 South Harvard, Suite D
Tulsa, Oklahoma 74135
on this the ____ day of _______________, 199___.
------------------------------
Richard L. Rothfelder
<PAGE>
IN THE DISTRICT COURT IN AND FOR TULSA COUNTY
STATE OF OKLAHOMA
LATEX PETROLEUM CORPORATION (S)
Plaintiff (S)
(S)
VS. (S) Case No. CJ-95-01302
(S)
PANDA RESOURCES, INC. (S)
Defendant (S)
AGREED ORDER OF DISMISSAL With PREJUDICE
----------------------------------------
On this day LaTex Petroleum Corporation, Plaintiff, and Panda Resources,
Inc., Defendant, jointly requested the Court to dismiss with prejudice this
litigation. The Court, having considered the parties' agreement and the
pleadings, finds that the agreement is acceptable and should be made an order of
the Court. It is therefore,
ORDERED that LaTex Petroleum Corporation's claim against Panda Resources
be, and hereby is, dismissed with prejudice, with attorney's fees, expenses, and
court costs to be paid by the party incurring same.
SIGNED this ___ day of __________________ 199___.
-----------------------------------
JUDGE PRESIDING
<PAGE>
APPROVED AND AGREED TO:
------------------------------------------
H. Gregory Maddux, OBA #10582
MADDUX & MADDUX
Attorney for the Plaintiff
4137 South Harvard, Suite D
Tulsa, Oklahoma 74135
918/748-8987
FAX 918/743-8207
Attorneys for Plaintiff LaTex Petroleum Corporation
------------------------------------------
Frederic Dorwart, OBA #2436
J. Michael Medina, OBA #6113
124 E. Fourth Street
Tulsa, Oklahoma 74103-5010
(918) 583-9922
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
------------------------------------------
Richard L. Rothfelder
Michael C. Falick
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorneys for Defendant Panda Resources, Inc.
<PAGE>
UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
NUEVO LIQUIDS, INC. (S)
(S)
Plaintiff, (S)
(S)
VS. (S) CIVIL ACTION NO. H-95-OO28
(S)
LATEX RESOURCES, INC. AND (S)
LATEX PETROLEUM CORPORATION, (S) UNOPPOSED
(S) ---------
Defendants. (S)
(S)
AGREED MOTION TO DISMISS WITH PREJUDICE
---------------------------------------
TO THE HONORABLE JUDGE OF SAID COURT:
COME NOW, Nuevo Liquids, Inc., Plaintiff (referred to as "Nuevo"), and
LaTex Resources, Inc. and LaTex Petroleum Corporation, Defendants (respectively
referred to as "LaTex Resources" and "LaTex Petroleum"), and file their Agreed
Motion to Dismiss with Prejudice, and show the Court as follows:
I.
Nuevo, LaTex Resources, and LaTex Petroleum have settled this case. Part
of the settlement requires this action by Nuevo against LaTex Resources and
LaTex Petroleum to be dismissed with prejudice. As such, the parties jointly
request the Court to honor their agreement and dismiss Nuevo's claims with
prejudice.
WHEREFORE, PREMISES CONSIDERED, Nuevo Liquids, Inc., LaTex Resources,
Inc. and LaTex Petroleum Corporation request the Court to dismiss Nuevo's claims
against
<PAGE>
LaTex Resources and LaTex Petroleum with prejudice, with attorney fees,
expenses, and court costs to be borne by the party incurring same, and for such
other and further relief to which they may be justly entitled.
Respectfully submitted,
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
---------------------------------------
Richard L. Rothfelder
TSB #17318100
Michael C. Falick
TSB #06794600
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney-in-Charge for Plaintiff
Nuevo Liquids, Inc.
McDADE & FOGLER, L.L.P.
By
-------------------------------------
Murray Fogler
State Bar No.07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendants, LaTex Resources,
Inc. And LaTex petroleum Corporation
2
<PAGE>
CERTIFICATE OF SERVICE
----------------------
I hereby certify that a true and correct copy of the above and foregoing
instrument has been forwarded by certified mail, return receipt requested,
addressed to the following:
Murray Fogler
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
on this the ____ day of ______________, 199___.
------------------------------------
Richard L. Rothfelder
3
<PAGE>
UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
NUEVO LIQUIDS, INC. (S)
(S)
Plaintiff, (S)
(S)
VS. (S) CIVIL ACTION NO. H-95-0028
(S)
LATEX RESOURCES, INC. AND (S)
LATEX PETROLEUM CORPORATION, (S)
(S)
Defendants. (S)
AGREED ORDER OF DISMISSAL WITH PREJUDICE
----------------------------------------
On this day Nuevo Liquids, Inc., Plaintiff, and LaTex Resources, Inc. and
LaTex Petroleum Corporation, Defendants, jointly requested the Court to dismiss
with prejudice this litigation, consisting of Nuevo Liquids, Inc.'s claims
against LaTex Resources Inc. and LaTex Petroleum Corporation. The Court, having
considered the parties' agreement and the pleadings, finds that the agreement is
acceptable and should be made an order of the Court. It is therefore,
ORDERED that Nuevo Liquids, Inc.'s claims against LaTex Resources, Inc. and
LaTex Petroleum Corporation be, and hereby are, dismissed with prejudice, with
attorney's fees, expenses, and court costs to be paid by the party incurring
same.
SIGNED this ____ day of __________________, 1995.
-----------------------------------
JUDGE PRESIDING
<PAGE>
APPROVED AND AGREED TO:
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
--------------------------------------
Richard Rothfelder
TSB #17318100
Michael C. Falick
TSB #06794600
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney-in-Charge for Plaintiff Nuevo
Liquids, Inc.
McDADE & FOGLER, L.L.P.
By
------------------------------------
Murray Fogler
State Bar No.07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendants, LaTex
Resources, Inc. and LaTex Petroleum Corporation
2
<PAGE>
UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
TORCH ENERGY MARKETING, INC. (S)
(S)
Plaintiff, (S)
(S)
VS. (S) CIVIL ACTION NO. H-95-0029
(S)
LATEX RESOURCES, INC., (S)
STEVEN WILSON, WILSON TUCKER & (S) UNOPPOSED
ASSOCIATES, AND A. DEAN FULLER (S) ---------
(S)
Defendants. (S)
AGREED MOTION TO DISMISS WITH PREDJUDICE
----------------------------------------
TO THE HONORABLE JUDGE OF SAID COURT:
COME NOW, Torch Energy Marketing, Inc., Plaintiff (referred to as "Torch"),
and Steven Wilson and Wilson Tucker & Associates, two of the Defendants
(respectively referred to as Wilson and "Wilson Tucker"), and file their Agreed
Motion to Dismiss with Prejudice, and show the Court as follows:
I.
Torch, Wilson and Wilson Tucker have settled this case as between
themselves. Part of their settlement requires this action by Torch against
Wilson and Wilson Tucker to be dismissed with prejudice. As such, the parties
jointly request the Court to honor their agreement and dismiss Torch's claims
against Wilson and Wilson Tucker with prejudice.
WHEREFORE, PREMISES CONSIDERED, Torch Energy Marketing, Inc., Steven
Wilson, and Wilson Tucker & Associates request the Court to dismiss Torch's
claims against
<PAGE>
Tucker and Wilson Tucker with prejudice, with attorney fees, expenses, and court
costs to be borne by the party incurring same, and for such other and further
relief to which they may be justly entitled.
Respectfully submitted,
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
---------------------------------------
Richard L. Rothfelder
TSB #17318100
Michael C. Falick
TSB #06794600
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney-In-Charge for Plaintiff
Torch Energy Marketing, Inc.
McDADE & FOGLER, L.L.P.
By
-------------------------------------
Murray Fogler
State Bar No. 07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendants,
Steven Wilson and Wilson Tucker & Associates
2
<PAGE>
CERTIFICATE OF SERVICE
----------------------
I hereby certify that a true and correct copy of the above and foregoing
instrument has been forwarded by certified mail, return receipt requested,
addressed to the following:
Murray Fogler
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Attorney-in-Charge for Defendants,
LaTex Resources, Inc., Steven Wilson
and Wilson Tucker & Associates
on this the _____ day of _________________, 199___.
---------------------------------
Richard L. Rothfelder
3
<PAGE>
UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
TORCH ENERGY MARKETING, INC. (S)
(S)
Plaintiff, (S)
(S)
VS. (S) CIVIL ACTION NO. H-95-0029
(S)
LATEX RESOURCES, INC., (S)
STEVEN WILSON, WILSON TUCKER & (S)
ASSOCIATES, AND A. DEAN FULLER (S)
(S)
Defendants. (S)
AGREED ORDER OF DISMISSAL WITH PREJUDICE
----------------------------------------
On this day Torch Energy Marketing, Inc., Plaintiff, and Steven Wilson and
Wilson Tucker & Associates, Defendants, jointly requested the Court to dismiss
with prejudice this litigation as between themselves, consisting of Torch Energy
Marketing, Inc.'s claims against Steven Wilson and Wilson Tucker & Associates.
The Court, having considered the parties' agreement and the pleadings, finds
that the agreement is acceptable and should be made an order of the Court. It is
therefore,
ORDERED that Torch Energy Marketing, Inc.'s claims against Steven Wilson
and Wilson Tucker & Associates be, and hereby are, dismissed with prejudice,
with attorney's fees, expenses, and court costs to be paid by the party
incurring same.
SIGNED this ___ day of ___________________, 1995.
------------------------------------
JUDGE PRESIDING
<PAGE>
APPROVED AND AGGREED TO:
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
--------------------------------
Richard L. Rothfelder
TSB #17318100
Michael C. Falick
TSB #06794600
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney-in-Charge for Plaintiff
Torch Energy Marketing, Inc.
McDADE & FOGLER, L.L.P.
By
-----------------------------
Murray Fogler
State Bar No.07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendants,
Steven Wilson and Wilson Tucker & Associates
2
<PAGE>
Cause No. 94-049766
NORTHERN NATURAL GAS COMPANY (S) IN THE DISTRICT COURT
(S)
VS. (S) 152ND JUDICIAL DISTRICT
(S)
LaTex RESOURCES, INC. (S) HARRIS COUNTY, TEXAS
WITHDRAWAL OF MOTION
FOR LEAVE TO FILE THIRD PARTY ACTION
------------------------------------
TO THE HONORABLE JUDGE OF SAID COURT:
COMES NOW, LaTex Resources, Inc., Defendant ("LaTex"), and files
its Withdrawal of Motion for Leave to File Third Party Action, and in
support thereof would show the Court as follows:
1. LaTex and Panda Resources, Inc. ("Panda") have settled the issues
between them that related to this lawsuit. Part of the settlement
requires that LaTex withdraw its previously filed Motion for Leave to
File Third Party Action. That Motion sought to make Panda, as proposed
third-party defendant, liable to LaTex or to Northern Natural Gas
Company, Plaintiff ("Northern"), for all or part of Northern's claims
against LaTex.
2. LaTex intends that this withdrawal shall operate as a prohibition
against all future attempts by LaTex to make Panda a party to this
lawsuit.
WHEREFORE, PREMISES CONSIDERED, LaTex Resources, Inc., Defendant,
requests the Court to order:
1. the withdrawal of LaTex's Motion for Leave to File Third Party
Action;
2. that this withdrawal be made with prejudice, prohibiting LaTex
from ever again seeking to make Panda a party to this lawsuit;
and
3. that attorney's fees, expenses, and court costs are to be
borne by the party incurring same.
<PAGE>
Respectfully Submitted,
McDAD & FOGLER, L.L.P.
By
--------------------------------
Murray Fogler
State Bar No. 07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendant,
LaTex Resources, Inc.
2
<PAGE>
CERTIFICATE OF SERVICE
----------------------
I hereby certify that a true and correct copy of the above and foregoing
instrument has been forwarded by certified mail, return receipt requested,
addressed to the following:
Cary V. Sorensen
Kriste K. Sullivan
1400 Smith Street, Suite 4806
Houston, Texas 77002
Patrick J. Joyce
Northern Natural Gas Company
1111 S. 103rd Street
Omaha, Nebraska 68124
Richard L. Rothfelder
Kirkendall, Isgur & Rothfelder, L.L.P.
700 Louisiana, 48th Floor
Houston, Texas 77002
on this the __ day of _______________, 1995.
---------------------------
Murray Fogler
3
<PAGE>
UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
TORCH ENERGY MARKETING, INC. (S)
(S)
Plaintiff, (S)
(S)
VS. (S) CIVIL ACTION NO. H-95-0029
(S)
LATEX RESOURCES, INC., (S)
STEVEN WILSON, WILSON TUCKER & (S) UNOPPOSED
ASSOCIATES, AND A. DEAN FULLER (S) ---------
(S)
Defendants. (S)
AGREED MOTION FOR FINAL JUDGMENT
--------------------------------
TO THE HONORABLE JUDGE OF SAID COURT:
COME NOW, Torch Energy Marketing, Inc., Plaintiff (referred to as "Torch")
and LaTex Resources, Inc., the sole remaining Defendant (referred to as
"LaTex"), and file their Agreed Motion for Final judgment, and show the Court as
follows:
1. Torch and LaTex have settled this case as between themselves. All other
parties to the case have been dismissed. As such, Torch and LaTex jointly
request the Court to honor their agreement and to grant their Agreed Final
judgment as follows.
2. Contemporaneous to the filing of this motion, Torch Energy Marketing, Inc.
("Torch"), Nuevo Liquids, Inc. ("Nuevo"), LaTex Resources, LaTex Petroleum
Corporation ("LaTex Petroleum"), Panda Resources, Inc. ("Panda"), Steven Wilson
("Wilson"), and Wilson Tucker & Associates ("Wilson Tucker") have entered into a
Settlement Agreement, some of the terms of which are memorialized below.
3. LaTex Resources, shall promise to pay Torch Two Hundred and Fifty Thousand
Dollars ($250,000.00) principal, plus 6% per annum, payable at the offices of
Scott Potter, 1221 Lamar, Suite 1600, Houston, Texas 77010, with all payments in
the form of cashiers checks or wire transfer, due as follows:
<PAGE>
a. $50,000.00 no later than one year after the date of the execution of
the Settlement Agreement;
b. an additional $50,000.00 no later than two years after the date of
the execution of the Settlement Agreement; and
C. an additional $150,000.00, plus unpaid accrued interest on the entire
$250,000.00 principal, within three years after the date of the
execution of the Settlement Agreement.
4. Defendant, LaTex Resources, agrees
a. to accept assignment from Panda of any and all obligations owing
under the May 2, 1989 agreement between Panda and Northern Natural
Gas Company ("NNG"), as amended, relating to the obligation to flow
or pay for the transportation of natural gas through a transportation
facility located in Dewey County, Oklahoma ("Dewey County
Obligation");
b. to indemnify Panda and Torch against claims from NNG relating to the
Dewey County Obligation; and
C. to use its best efforts to secure the release of Panda's and Torch's
obligations, if any, to NNG under the Dewey County Obligation.
5. Defendant, Latex Resources, as security for its promised performance of the
above obligations, shall stipulate that it is liable to plaintiff, Torch, in the
amount of One Million Dollars ($1,000,000.00), less any payments made by LaTex
Resources to Torch as described in paragraph 3 above.
6. Defendant, LaTex Resources, further agrees and stipulates that, in
consideration of Torch's promise to permit LaTex Resources to retire this
judgment through its making the payments described in paragraph 3 above and to
forbear the filing of an abstract of this judgment and any attempt to execute
this judgment until LaTex Resources defaults in its obligations
2
<PAGE>
hereunder, the requested judgment shall not become stale and shall remain fully
enforceable the same as if Torch had sought execution from the day of its
execution.
7. Defendant, LaTex Resources, desires the Agreed Final Judgment to be binding
on it contractually and judicially. LaTex further agrees that said judgment
shall be and become final on the day it is signed by the Court, and LaTex waives
all rights to review that Agreed Final Judgment, appellate or otherwise.
WHEREFORE, PREMISES CONSIDERED, Torch Energy Marketing, Inc., Plaintiff,
and LaTex Resources, Inc., Defendant, request the Court to grant this agreed
motion for final judgment, and for such other and further relief to which they
may be justly entitled.
Respectfully submitted,
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
-----------------------------------
Richard L. Rothfelder
TSB #17318100
Michael C. Falick
TSB #06794600
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney-in-Charge for Plaintiff
Torch Energy Marketing, Inc.
McDADE & FOGLER, L.L.P.
By
-----------------------------
Murray Fogler
State Bar No.07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendant,
LaTex Resources, Inc.
3
<PAGE>
CERTIFICATE OF SERVICE
----------------------
I hereby certify that a true and correct copy of the above and
foregoing instrument has been forwarded by certified mail, return receipt
requested, addressed to the following:
Murray Fogler
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77O10-1007
Attorney-in-Charge for Defendant,
LaTex Resources, Inc.
on this the _____ day of______________, 199__.
___________________________
Richard L. Rothfelder
4
<PAGE>
UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
TORCH ENERGY MARKETING, INC. (S)
(S)
Plaintiff, (S)
(S)
VS. (S) CIVIAL ACTION NO. H-95-0029
(S)
LaTex RESOURCES, INC., (S)
STEVEN WILSON, WILSON TUCKER & (S) UNOPPOSED
ASSOCIATES, AND A. DEAN FULLER (S) ---------
(S)
Defendants. (S)
AGREED FINAL JUDGMENT
---------------------
BE IT REMEMBERED that on this day, came on to be considered the Joint
Motion to Enter Agreed Judgment concerning the causes of action against LaTex
Resources, Inc., defendant in the above entitled and numbered cause ("LaTex
Resources"). The parties appearing herein by consent, announce their intention
to enter into an Agreed Judgment.
1. Contemporaneous to the execution of this Agreed Final Judgment, Torch
Energy Marketing, Inc. ("Torch"), Nuevo Liquids, Inc. ("Nuevo"), LaTex
Resources, LaTex Petroleum Corporation ("LaTex Petroleum"), Panda Resources,
Inc. ("Panda"), Steven Wilson ("Wilson"), and Wilson Tucker & Associates
("Wilson Tucker") have entered into a Settlement Agreement, some of the terms of
which are memorialized below .
2. Defendant, LaTex Resources, promises to pay Torch Two Hundred and Fifty
Thousand Dollars ($250,000.00) principal, plus 6% per annum, payable at the
offices of Scott Potter, 1221 Lamar, Suite 1600, Houston, Texas 77010, with all
payments in the form of cashiers checks or wire transfer, due as follows:
<PAGE>
a. $50,000.00 no later than one year after the date of the
execution of the Settlement Agreement;
b. an additional $50,000.00 no later than two years after the
date of the execution of the Settlement Agreement; and
C. an additional $150,000.00, plus unpaid accrued interest on the
entire $250,000.00 principal, within three years after the
date of the execution of the Settlement Agreement.
3. Defendant, LaTex Resources, agrees
a. to accept assignment from Panda of any and all obligations
owing under the May 2, 1989 agreement between Panda and
Northern Natural Gas Company ("NNG"), as amended, relating to
the obligation to flow or pay for the transportation of
natural gas through a transportation facility located in Dewey
County, Oklahoma ("Dewey County Obligation");
b. to indemnify Panda and Torch against claims from NNG relating
to the Dewey County Obligation; and
C. to use its best efforts to secure the release of Panda's and
Torch's obligations, if any, to NNG under the Dewey County
Obligation.
4. Defendant, LaTex Resources, as security for its promised performance
of the above obligations, stipulates that it is liable to plaintiff,
Torch, in the amount of One Million Dollars ($1,000,000.00), less any
payments made by Latex Resources to Torch as described in paragraph 2
above.
5. Defendant, LaTex Resources, further agrees and stipulates that, in
consideration of Torch's promise to permit LaTex Resources to retire this
judgment through its making the payments described in paragraph 2 above
and to forbear the filing of an abstract of this judgment
2
<PAGE>
and any attempt to execute this judgment until LaTex Resources defaults
in its obligations hereunder, this judgment shall not become stale and
shall remain fully enforceable the same as if Torch had sought execution
from this day.
6. Defendant, LaTex Resources, desires the Judgment to be binding on it
contractually and judicially. LaTex further agrees that this judgment
shall be and become final on the day it is signed by the Court, and LaTex
waives all rights to review this Judgment, appellate or otherwise.
It is, therefore, ORDERED that Plaintiff, Torch Energy Marketing,
Inc. have and recover of and from LaTex Resources, Inc. the sum of One
Million Dollars ($1,000,000.00), together with post-judgment interest at
the maximum rate allowed by law, from the date of judgment until paid,
plus all costs of court. Plaintiff is allowed such writs and processes
as may be necessary in the collection or enforcement of this Judgment.
A11 relief not specifically granted herein is denied. This is a
final judgment. Signed this __ day of __________, 1995.
--------------------------------------
HONORABLE KENNETH M. HOYT
UNITED STATES DISTRICT JUDGE
3
<PAGE>
APPROVED AND AGREED TO:
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
--------------------------------
Richard L. Rothfelder
TSB #17318100
Michael C. Falick
TSB #06794600
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney-in-Charge for Plaintiff
Torch Energy Marketing, Inc.
McDADE & FOGLER, L.L.P.
By
------------------------------
Murray Fogler
State Bar No.07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Telephone: 713/654-4300
Telecopier: 713/654-4343
Attorney-in-Charge for Defendant,
LaTex Resources, Inc.
4
<PAGE>
CERTIFICATE OF SERVICE
----------------------
I hereby certify that a true and correct copy of the above and foregoing
instrument has been forwarded by certified mail, return receipt requested,
addressed to the following:
Murray Fogler
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 770l0-l007
on this the ____ day of ___________________, 199__.
-------------------------
Richard L. Rothfelder
5
<PAGE>
RELEASE OF JUDGMENT LIEN
------------------------
On _______________, 1995, in Civil Action No. H-95-0029, in the United
States District Court for the Southern District of Texas, Houston Division,
Torch Energy Marketing Inc. recovered judgment for $1 million, plus interest and
court costs from LaTex Resources, Inc.
The judgment has been satisfied.
Therefore, as authorized attorney of record for Torch Energy Marketing
Inc., who is the party entitled to receive payment of the judgment, I hereby
release LaTex Resources, Inc. from any lien existing because of the judgment.
SIGNED on ________________________, 199____.
KIRKENDALL, ISGUR & ROTHFELDER, L.L.P.
--------------------------------
Richard L. Rothfelder
TSB #17318100
700 Louisiana, 48th Floor
Houston, Texas 77002
(713) 225-4646 - Telephone
(713) 225-1284 - Telecopier
Attorney for Torch Energy Marketing, Inc.
STATE OF TEXAS (S)
(S)
COUNTY OF HARRIS (S)
BEFORE ME, the undersigned notary public, on this day personally appeared
Richard L. Rothfelder, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that he executed the same for
the purposes and consideration therein expressed and in the capacity therein
stated.
<PAGE>
SUBSCRIBED AND SWORN TO BEFORE ME on this ___ day of
______________________, 199____.
-------------------------------------------
Notary Public in and for the State of Texas
<PAGE>
EXHIBIT 10.124
SETTLEMENT AGREEMENT
This Settlement Agreement, is hereby made this 7th day of June
1996 by and between NORTHERN NATURAL GAS COMPANY ("Northern") and
LATEX RESOURCES, INC. ("LaTex").
WITNESSETH:
Recitals. Northern and LaTex are parties to the following firm
--------
natural gas transportation agreements which have been terminated by
the parties and are no longer in effect: Northern Contract Nos. 77152
and 77153/20139 ("Transportation Agreements"). Disputes have arisen
between Northern and LaTex regarding the performance of the
transportation agreements. As a result of the disputes, Northern
instituted the following litigation against LaTex: Northern Natural
----------------
Gas Company v. LaTex Resources Inc., in the 152nd Judicial District
-----------------------------------
Court of Harris County, Texas, Case No. 94-49766 ("Litigation").
Northern and LaTex have now agreed to compromise and settle their
disputes with respect to the Transportation Agreements and the
Litigation.
NOW, THEREFORE, for and in consideration of the mutual promises,
covenants, and agreements contained herein, and intending to be bound,
Northern and LaTex agree as follows:
A. Stock Issuance.
---------------
(1) On June 7, 1996, LaTex will issue to Northern Fifty Thousand
(50,000) shares of LaTex's Series B Senior Convertible Preferred Stock
(the "Series B Preferred Stock") which are convertible into Three
Hundred Thirty Three Thousand Three Hundred
<PAGE>
Thirty Three (333,333) shares of LaTex's Common Stock (the "Common Shares"). The
timing of the conversion is at Northern's sole discretion.
(2) On or before June 7, 1996, LaTex and Northern will execute a
Registration Rights Agreement in substantially the form of Exhibit A attached
hereto (the "Registration Rights Agreement").
B. Representations of LaTex.
-------------------------
LaTex hereby represents and warrants to Northern as follows:
(1) LaTex is a corporation duly organized and validly existing under the
laws of the state of Delaware. LaTex has the corporate right, power and
authority, and qualifications to conduct its business and own its properties,
and LaTex has the legal right, power and authority to (i) execute and deliver
the Registration Rights Agreement, (ii) issue the Series B Preferred Stock and
perform its obligations in relation thereto, and (iii) execute and deliver this
Settlement Agreement and perform all of its obligations under the same.
(2) This Settlement Agreement has been, and when executed, the
Registration Rights Agreement will have been duly executed and delivered on
behalf of LaTex, and this Settlement Agreement constitutes, and when executed,
the Registration Rights Agreement will constitute, the legal, valid and binding
obligations of LaTex enforceable against it in accordance with their terms,
subject, however, to bankruptcy, insolvency, fraudulent transfer, reorganization
and other laws affecting creditors' rights generally and with regard to any
equitable remedies, to the discretion of the court before which proceedings to
obtain such remedies may be pending.
<PAGE>
(3) The making and performance by LaTex of this Settlement Agreement and
the Registration Rights Agreement are within its corporate powers, have been
duly authorized by all necessary corporate action on the part of LaTex and do
not and will not (i) violate in any material respect any provision of law or any
rule, regulation, order, writ, judgment, decree, or determination currently in
effect having applicability to LaTex or LaTex's certificate of incorporation,
bylaws, or other governing documents, (ii) result in a material breach of or
constitute a material default under any indenture, bank loan, or credit
agreement, or any other material agreement or instrument to which LaTex is a
party or by which LaTex or its properties may be currently bound or affected, or
(iii) result in or require the creation or imposition of any mortgage, lien,
pledge, security interest, charge, or other encumbrance upon or of any of the
properties or assets of LaTex under any such existing indenture, bank loan,
credit agreement, or other material agreement or instrument. LaTex is not in
default under any such order, writ, judgment, decree, determination, indenture,
agreement, or instrument in any way that now or in the future will materially
adversely affect the ability of LaTex to perform its obligations under this
Settlement Agreement or the Registration Rights Agreement; and all consents or
approvals under such indentures, agreements, and instruments necessary to permit
valid execution, delivery, and performance by LaTex of this Settlement Agreement
and the Registration Rights Agreement and the transactions to be consummated
hereby and thereby have been obtained.
<PAGE>
(4) The authorized capital stock of LaTex consists of 50,000,000 shares
of common stock, par value $0.01 per share, of which 18,165,195 shares are
issued and outstanding, and 5,000,000 shares of preferred stock, par value $0.01
per share, of which there are two classes, namely Series A Convertible Preferred
Stock, consisting of 700,000 authorized shares, of which 448,885 shares are
issued and outstanding, and the Series B Preferred Stock, consisting of 675,000
authorized shares, of which 417,117 shares are issued and outstanding. All of
the issues and outstanding shares of LaTex common stock have been duly
authorized, are validly issued, fully paid, and non-assessable. The Series B
Preferred Stock has been duly authorized, and at the Closing will be validly
issued, fully paid and non-assessable and will be free of any liens or
encumbrances, except for the restrictions on transfer under state and/or federal
securities laws as set forth herein. Upon issuance and payment therefor in
accordance with the terms of the Series B Preferred Stock, the shares of LaTex
Common Stock issuable upon conversion of the Series B Preferred Stock shall be
validly issued, fully paid and non-assessable and will be free of any liens or
encumbrances except for the restrictions on transfer under state and/or federal
securities laws as set forth herein. The rights, restrictions, privileges and
preferences of the Series B Preferred Stock are as stated in the Certificate of
Designations attached hereto as Exhibit B.
(5) The financial statements contained in LaTex's Annual Report on Form
10-K for the fiscal year ended July 31, 1995, as filed with the Securities and
Exchange Commission and quarterly report on Form 10-Q for the three months
ending January 31, 1996, as filed with the Securities and Exchange Commission
have been prepared in
4
<PAGE>
accordance with generally accepted accounting principles applied on a consistent
basis and present fairly the financial condition and changes in financial
position of LaTex as at the date or dates and for the period or periods stated.
Since January 31, 1996, to the knowledge of LaTex no change either in any case
or in the aggregate has occurred in the condition, financial or otherwise, of
LaTex which has had or is reasonably likely to have a material and adverse
effect on the assets, liabilities, financial condition, business, operations,
affairs or circumstances of LaTex or on the ability of LaTex to carry out its
business as of the date of this Settlement Agreement or as proposed at the date
of this Sefflement Agreement to be conducted or to meet its obligations under
this Settlement Agreement.
C. Representations and Warranties of Northern. Northern hereby represents
------------------------------------------
and warrants to LaTex as follows:
(1) Northern is a corporation duly organized, validly existing and in good
standing under the laws of the state of Delaware. Northern has the corporate
right, power and authority: (i) to conduct its business and own its properties
and (ii) to execute and deliver this Settlement Agreement and perform all of its
obligations under the same.
(2) This Settlement Agreement has been duly executed and delivered on
behalf of Northern and this Settlement Agreement constitutes the legal, valid
and binding obligation of Northern enforceable against it in accordance with its
terms, subject, however, to bankruptcy, insolvency, fraudulent transfer,
reorganization and other laws affecting creditors' rights generally and with
regard to any equitable remedies, to the discretion of the court before which
proceedings to obtain such remedies may be pending.
5
<PAGE>
(3) The making and performance by Northern of this Settlement Agreement is
within its corporate powers, has been duly authorized by all necessary corporate
action on the part of Northern and does not and will not (i) violate in any
material respect any provision of law or any rule, regulation, order, writ,
judgment, decree, or determination currently in effect having applicability to
Northern or Northern's certificate of incorporation, by laws, or other governing
documents, (ii) result in a material breach of or constitute a material default
under any indenture, bank loan, or credit agreement or any other material
agreement or instrument to which Northern is a party; and Northern is not in
default under any such order, writ, judgment, decree, determination indenture,
agreement, or instrument in any way that now or in the future will materially
adversely affect the ability of Northern to perform its obligations under this
Settlement Agreement.
(4) With respect to Northern's acquisition of the Series B Preferred
Stock, Northern represents and warrants to LaTex as follows:
(i) Northern is an accredited Investor as defined in Section 2(15) of the
Securities Act of 1933 ("1933 Act") and Rule 501(a)(3) promulgated by
the Securities and Exchange Commission ("SEC") in that Northern is a
corporation not formed for the specific purpose of acquiring the
Series B Preferred Stock and Northern has total assets in excess of
$5,000,000.
(ii) Northern acknowledges that neither the Series B Preferred Stock nor
the Common Shares issuable to Northern upon conversion of the Series B
Preferred Stock have been registered under the 1993 Act, the Oklahoma
Securities Act, as amended, or the securities laws of any other state
and are
6
<PAGE>
being offered, and will be sold, pursuant to applicable exemptions
from such registration and will be issued as "restricted securities"
as defined by Rule 144 promulgated pursuant to the 1933 Act. The
Series B Preferred Stock and the Common Shares may not be resold in
the absence of an effective registration thereof under the 1933 Act
and applicable state securities laws unless applicable exemptions from
registration are available.
(iii) Northern is acquiring the Series B Preferred Stock in connection with
the settlement of the Litigation, and may assign the Series B
Preferred Stock to an affiliate. Neither Northern nor its affiliate is
acquiring the Series B Preferred Stock with a view to or for sale in
connection with any distribution (within the meaning of the 1933 Act)
or in a manner which would require registration under the 1933 Act or
any state securities laws, and neither Northern nor its affiliate has
any present intention or plan to effect any such distribution of the
Series B Preferred Stock, except pursuant to effective registration in
compliance with applicable securities laws or pursuant to applicable
exemptions from such registration.
(iv) Northern understands and acknowledges that the certificates evidencing
the Series B Preferred Stock and the Common Shares issued upon
conversion of the Series B Preferred Stock shall bear the following
restrictive legend:
7
<PAGE>
THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
THE SECURITIES LAWS OF ANY STATE. THE SECURITIES HAVE BEEN
ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED FOR
VALUE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION THEREOF
UNDER THE SECURITIES ACT OF 1933 AND/OR THE SECURITIES ACT OF
ANY STATE HAVING JURISDICTION UNLESS APPLICABLE EXEMPTIONS
FROM REGISTRATION ARE AVAILABLE.
or such other restrictive legend as counsel to LaTex may reasonably
deem appropriate at the time of such issuance.
(v) Northern understands and acknowledges the speculative nature of and
substantial risk of loss associated with an investment in the Series B
Preferred Stock. Northern represents and warrants that the Series B
Preferred Stock constitute an investment which is suitable and
consistent with Northern's financial condition and that Northern is
able to bear the risks of such an investment for an indefinite period
of time, which may include the total loss of Northern's investment.
Northern further represents that it has adequate means of providing for
Northern's current financial needs and contingencies and that there is
no need for liquidity in Northern's investment in the Series B
Preferred Stock and that Northern has sufficient
8
<PAGE>
financial and business experience to evaluate the merits and risks of
an investment in the Series B Preferred Stock.
(vi) Northern confirms that (a) Northern has received, reviewed, and has
fully considered (including, without limitation, the financial
statements contained therein) for purposes of Northern's acquisition of
the Series B Preferred Stock, LaTex's Annual Report on Form 10-K for
the fiscal year ended July 31, 1995, as filed with the SEC, and
Quarterly Report on Form 10-Q for the three months ended January 31,
1996, as filed with the SEC, and that (b) Northern has been expressly
offered the opportunity to be provided a copy of and to review all
reports, documents, and exhibits referenced therein. Northern
acknowledges that (a) LaTex has limited financial resources and will
need additional sources of capital to implement its current business
plan, the availability of which is uncertain and cannot be assured, and
(b) the Series B Preferred Stock are a highly speculative investment
with a high degree of risk of loss by Northern of its investment
therein. Northern represents and warrants that in making the decision
to acquire the Series B Preferred Stock, it has relied upon its own
independent investigation of LaTex and the independent investigations
of LaTex by Northern's representatives, including its own
9
<PAGE>
professional legal, tax, and business advisors, and that Northern and
its representatives have been given the opportunity to examine all
relevant documents and to ask questions and to receive answers from
LaTex, or person(s) acting on its behalf, concerning LaTex and its
operations and financial condition, the terms and conditions of
acquisition by Northern of the Series B Preferred Stock, and any other
matters concerning an investment in LaTex, and to obtain any additional
information Northern deems necessary or appropriate to verify the
accuracy of the information provided.
D. Payment.
-------
In further consideration of the compromise and settlement of the
parties' disputes with respect to the Transportation Agreements and the
Litigation, LaTex agrees to pay Northern the sum of Four Hundred Sixty-Five
Thousand Dollars ($465,000) ("Settlement Amount"). The Settlement Amount shall
be paid in installments as follows:
(1) On June 21, 1996, LaTex shall pay Northern, by wire transfer, the sum
of Fifty Thousand Dollars ($50,000.00).
(2) On May 1, 1997, LaTex shall pay Northern, by wire transfer, the sum of
One Hundred Fifty Thousand Dollars ($150,000.00).
(3) On May 1, 1998, LaTex shall pay Northern, by wire transfer, the sum of
One Hundred Twenty Five Thousand Dollars ($125,000.00).
10
<PAGE>
(4) On May 1, 1999, LaTex shall pay Northern, by wire transfer, the sum of
One Hundred Forty Thousand Dollars ($140,000.00).
E. Litigation.
----------
Within ten (10) business days after execution of this Settlement
Agreement, an Agreed Judgment, in the form attached hereto as Exhibit C, shall
be executed by counsel for the parties and filed by Northern in Northern Natural
----------------
Gas Company v. LaTex Resources, Inc., Case No. 94-49766, in the 152nd Judicial
- ------------------------------------
District Court of Harris County, Texas. Northern agrees to withhold enforcement
of and execution upon the judgment to the extent that the installment payments
referenced in paragraph D are received by Northern in the manner prescribed on
or before the dates required. If any installment payment is not timely and
properly made, Northern may proceed at any time thereafter to enforce and
execute upon the judgment and may pursue whatever other rights and remedies
Northern finds available to it. If all installment payments are received and
the Settlement Amount is fully paid, Northern agrees to file, upon LaTex's
request, a Satisfaction and Release of Judgment in the form attached hereto as
Exhibit D.
F. Successors and Assigns. This Settlement Agreement shall be binding on
----------------------
all parties hereto and their respective agents, successors and/or assigns.
G. Joint Preparation. This Settlement Agreement was prepared jointly by
-----------------
the parties hereto. The person who executes this Settlement Agreement on behalf
of each party hereto represents and warrants that he or she has full and
complete authority to do so and that such party shall be bound thereby.
11
<PAGE>
party hereto represents and warrants that he or she has full and complete
authority to do so and that such party shall be bound thereby.
H. Applicable Law and Jurisdiction. This Settlement Agreement is subject
-------------------------------
to all applicable laws of the State of Texas. Further, the parties agree to
submit to the jurisdiction of Harris County, State of Texas, relative to any
claim or cause of action arising out of or related to this Settlement Agreement.
I. Entire Agreement. This Settlement Agreement contains the final
----------------
expression of the agreement among the parties hereto with respect to the subject
matter hereof and it is the complete and exclusive statement of the terms of the
agreement of the parties. No oral understandings, statements, promises, or
inducements contrary to the terms of this Settlement Agreement have been made or
exist. The Settlement Agreement cannot be modified or rescinded except by a
signed writing.
J. Confidentiality. This Settlement Agreement and all its terms and
---------------
provisions are confidential and shall not be disclosed by any party hereto, nor
shall any party permit the disclosure thereof by any officer, employee, agent,
attorney, consultant, or any other person; provided, however, the parties may
disclose only such portions of the Settlement Agreement as may be required or
necessary before a state or federal agency or regulatory authority, as may be
necessary for outside auditors, or as may be necessary in litigation seeking
enforcement of this Settlement Agreement. The parties, when making any necessary
or required filing or disclosure shall notify the other party in writing prior
to such disclosure, and shall obtain confidential treatment to the maximum
extent practicable.
12
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Settlement
Agreement to be executed in multiple originals as of the day and year first
written above.
"LaTex"
LaTex Resources,Inc.
By:/s/ Malcolm W. Henley
----------------------------------
Name: Malcolm W. Henley
--------------------------------
Title: Vice President of Marketing
-------------------------------
Date: June 6, 1996
--------------------------------
"NORTHERN"
Natural Gas Com
By: /s/ Michael W. McGowan
----------------------------------
Name: Michael W. McGowan
--------------------------------
Title: Vice President - Marketing
-------------------------------
Date: June 5, 1996
--------------------------------
13
<PAGE>
State of Oklahoma )
) ss.
County Tulsa )
The foregoing instrument was acknowledged before me on this 6th day of June
1996, by Malcolm W. Henley, Vice President of Mktg., of LaTex behalf of said
corporation for the uses and purposes set forth.
WITNESS my hand and official seal on the day and year first written above.
[NOTARY PUBLIC SEAL OF /s/ Marie B. Marshall
MARIE B. MARSHALL ---------------------------------
APPEARS HERE] Notary Public
My Commission expires: May 13, 2000
--------------------------
*****
State of NEBRASKA )
) SS.
County of Douglas )
The foregoing instrument was acknowledged before me on this 5 day of 1996,
by Michael W. McCowan, VP Marketing, of Northern Natural Gas Company, on behalf
of said corporation for the uses and purposes set forth.
WITNESS my hand and official seal on the day and year first written above.
[NOTARY PUBLIC SEAL OF /s/ Deborah B. Cappillo
DEBORAH B. CAPPIELLO --------------------------------
APPEARS HERE] Notary Public
My Commission expires: Aug. 23, 1997
-------------------------
14
<PAGE>
EXHIBIT A
REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement is entered into this 7th day of June, 1996
by and between LaTex Resources, Inc., a Delaware corporation and Northern
Natural Gas Company, a Delaware corporation.
For good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows.
1. Certain Definitions. The following terms shall have the respective meanings
-------------------
indicated.
"Company" means LaTex Resources, Inc., a Delaware corporation.
---------
"Commission" means the Securities and Exchange Commission and its
-----------
successors.
"ERAC" means Enron Reserve Acquisition Corp., a Delaware corporation,
------
and its successors and assigns.
"Northern" means Northern Natural Gas Company, a Delaware corporation,
----------
and its successors and assigns.
"Registrable Securities" means (a) the shares of Common Stock issued or
------------------------
issuable to the holders of Preferred Stock upon conversion of such holders'
shares of Preferred Stock pursuant to Section 7 of the Certificate of
Designation, Voting Power and Rights of Series B Senior Convertible Preferred
Stock of the Company dated March 30, 1995 and (b) any securities issued in
exchange for, as a dividend on, or in replacement of, or otherwise issued in
respect of (including securities issued in a stock dividend, split or
recombination or pursuant to the exercise of preemptive rights, if any), any
shares of Common Stock in clause (a) above, until such time as such securities
described in clauses (a) and (b) above have been (i) distributed to the public
pursuant to a registration statement covering such securities that has been
declared effective under the Securities Act, (ii) distributed to the public in
accordance with the provisions of Rule 144 (or any similar provision then in
force) under the Securities Act or (iii) repurchased by the Company.
"Securities Act" shall mean the Securities Act of 1933, as amended.
----------------
2. Demand Registration Rights
--------------------------
(a) Subject to the conditions stated hereinafter in this Section 2 at
---------
any time and from time to time (but no more often than once in any 12-month
period, except as provided in Section 2(e) from and after March 31, 1996, any
-----------
holder of Registrable Securities may make a written request to the Company for
registration with the Commission of the offer and
<PAGE>
sale of all or part of the Registrable Securities held thereby under and in
accordance with the provisions of the Securities Act and all other applicable
securities laws (a "Demand Registration"); provided that the Company may if
--------
necessary delay the filing of any registration statement relating to any such
Demand Registration for such reasonable period of time, not to exceed 90 days,
as is necessary to prepare the financial statements of the Company for the
fiscal period most recently ended prior to such written request. Within 10
business days after receipt of such request the Company will serve written
notice (the "Demand Notice") of such registration request to all holders of
Registrable Securities and, subject to Section 2(c) and Section 2(e), the
------------ ------------
Company will include in such registration all Registrable Securities of such
other holders with respect to which the Company has received written requests
for inclusion therein within 15 business days after the receipt by the
applicable holder of the Demand Notice.
(b) Registration expenses of each such Demand Registration, whether or not
it becomes effective, shall be paid as set forth in Section 4.
---------
(c) If the managing underwriter or underwriters of a Demand Registration
advise the Company in writing that in its or their opinion the number of
Registrable Securities proposed to be sold in such Demand Registration exceeds
the number that can be sold in such offering at the desired price, the Company
will include in such registration only the number of Registrable Securities that
in the opinion of such underwriter or underwriters can be sold.
(d) The Company shall have the right to select a managing underwriter or
underwriters reasonably acceptable to Northern (and ERAC if Registrable
Securities held by ERAC are included in such Demand Registration) to administer
the offering.
(e) Northern acknowledges that the Company has granted to ERAC pursuant to
that certain Registration Rights Agreement dated March 30, 1995, a senior right
to include Registrable Securities in any Demand Registration made by a holder of
Registrable Securities. If Northern requests a Demand Registration and is
unable to register all or any portion of the Registrable Securities it sought to
include therein as a result of ERAC's exercise of its senior right to include
Registrable Securities in such offering, then Northern shall not be required to
wait 12 months prior to requesting another Demand Registration. Any such
subsequent Demand Registration, however, may be postponed for up to six months
following effectiveness of the registration statement filed pursuant to the
previous Demand Registration if the Board of Directors of the Company determines
in its good faith judgment that postponement would be in the best interests of
the Company.
-2-
<PAGE>
3. Right to Piggyback. In the event that at any time or from time to time
------------------
the Company proposes to register any class of equity securities under the
Securities Act (other than a registration statement on Forms S-4 or S-8 (or
their successor forms), the Company will give prompt written notice (the
"Registration Notice") to the holder or holders of Registrable Securities of its
- ----------------------
intention to effect such a registration and will, subject to the remaining
provisions of this Agreement, include in such registration all Registrable
Securities with respect to which the Company has received the written request
from the holder thereof for inclusion therein within 15 days after the receipt
of the Registration Notice (a "Piggyback Registration"). From and after receipt
----------------------------
of such notice from the holder, the Company shall cause the specified
Registrable Securities to be registered under the Securities Act and to effect
and to comply with all such qualifications, compliances and requirements as may
be necessary to permit the sale of such Registrable Securities in the manner
described in the Registration Notice including, without limitation,
qualification under applicable state securities laws (provided that the Company
shall not be required in connection therewith to qualify as a foreign
corporation or to execute general consent to service of process in any state).
4. Registration Expenses. The Company will pay all expenses necessary to
---------------------
effect registration of Registrable Securities (other than underwriters'
discounts and commissions and brokerage commissions and fees, if any, payable
with respect to Registrable Securities sold by the holders thereof), including,
without limitation, printing expenses, fees of the Securities and Exchange
Commission and the National Association of Securities Dealers, Inc., expenses of
compliance with state securities laws, and accounting and legal fees and
expenses.
5. Priority on Primary Registration. If the registration described in
--------------------------------
Section 3 is for the account of the Company, and the managing underwriters
- ---------
advise the Company in writing that in their opinion the number of shares of
Registrable Securities requested to be included in such registration exceeds the
number which can be sold in such offering, the Company will include in such
registration (a) first, all of the securities the Company proposes to sell for
its own account (but not for the account of any other Person) and (b) second,
such number of Registrable Securities (other than Registrable Securities with
piggy-back registration rights that are subordinate to those granted herein)
requested to be included therein which the managing underwriters advise the
Company can be sold in such offering; provided that the reduction imposed upon
--------
holders of Registrable Securities shall not be greater, on a percentage basis
with respect to the Registrable Securities requested to be included, than the
reduction imposed upon other Persons with piggy-back registration rig
requesting to be included in such registration whose rights are not expressly
subordinate to those granted herein.
6. Priority on Secondary Registrations. If the registration described in
-----------------------------------
Section 3 is an underwritten secondary registration on behalf of the holders of
- ---------
the Company's securities, and the managing underwriters advise the Company in
writing that in their opinion the number of shares of Common Stock requested to
be included in such registration exceeds the number which can be sold in such
offering, the Company will include in such registration such number of
Registrable Securities (other than Registrable Securities with piggy-back
registration rights that
-3-
<PAGE>
are subordinate to those granted herein) requested to be included therein which
the managing underwriters advise the Company can be sold in such offering;
provided, that the reduction imposed upon holders of Registrable Securities
- ---------
shall not be greater, on a percentage basis with respect to the Registrable
Securities requested to be included, than the reduction imposed upon other
Persons with piggy-back registration rights requesting to be included in such
registration whose rights are not expressly subordinate to those granted herein.
7. Other Registrations. If the Company has previously filed a registration
-------------------
statement with respect to Registrable Securities pursuant to this Agreement and
if such previous registration has not been withdrawn or abandoned, the Company
will not file or cause to effected any other registration of any of its equity
securities or securities convertible or exchangeable into or exercisable for its
equity securities under the Securities Act (except on Form S-8 or any successor
form), whether on its own behalf or at the request of any bolder of holders of
its securities, until a period of at least six months has elapsed from the
effective date of such previous registration.
8. Indemnification. In the event of any registration pursuant to this
---------------
Agreement covering Registrable Securities, the Company will indemnify and hold
harmless the holders and each person, if any, who controls the holders within
the meaning of the Securities Act against any losses, claims, damages, costs,
expenses (including reasonable attorneys' fees), or liabilities (or actions in
respect thereof under the Securities Act or otherwise, which arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact
contained in any such registration statement, any preliminary prospectus or
final prospectus contained therein, or any amendment or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that the Company will not
be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in said registration statement,
said preliminary prospectus, said prospectus, or any said amendment or
supplement, in reliance upon and in conformity with written information
furnished by the holder specifically for use in the preparation thereof. The
- ------------
Company also agrees to reimburse the holders and each such controlling person
for any legal or other expenses reasonably incurred by the holders or such
controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action to the extent that the same are not incurred
in connection with the provisions of the preceding sentence.
9. Assignability. The registration rights provided herein may be assigned to
-------------
any Person holding shares of Registrable Securities as reflected on the stock
records of the Company.
10. Governing Law. This Agreement shall be governed by and construed in
-------------
accordance wit the laws of the State of Delaware except to the extent the laws
of any other state are mandatorily applicable.
Witness the execution hereof as the date set forth above.
-4-
<PAGE>
LATEX RESOURCES, INC.
[SIGNATURE OF JEFFERY T. WILSON APPEARS HERE]
-----------------------------------
Jeffrey T. Wilson, President
NORTHERN NATURAL GAS COMPANY
By:/s/ M.W. McGowan
--------------------------------
Name: M.W. McGowan
------------------------------
Title: Vice President
-----------------------------
-5-
<PAGE>
EXHIBIT B PAGE 1
State of Delaware
Office of the Secretary of State
------------------------------
I, EDWARD J. FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY
CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF
DESIGNATION OF "LATEX RESOURCES, INC.", FILED IN THIS OFFICE ON THE FOURTH DAY
OF APRIL, A.D. 1995, AT 10:01 O'CLOCK A.M.
A CERTIFIED COPY OF THIS CERTIFICATE HAS BEEN FORWARDED TO THE NEW CASTLE
COUNTY RECORDER OF DEEDS FOR RECORDING.
[SEAL OF SECRETARY'S OFFICE APPEARS HERE]
/s/ Edward J. Freel
--------------------------------------
Edward J. Freel, Secretary of State
AUTHENTICATION: 7461259
DATE: 04-04-95
<PAGE>
CERTIFICATE OF DESIGNATION, VOTING POWERS AND
RIGHTS OF SERIES B SENIOR CONVERTIBLE
PREFERRED STOCK OF LATEX RESOURCES, INC.
LaTex Resources, Inc., a corporation organized and existing under the
General Corporation Law of the State of Delaware (the "Company" or "Issuer"),
DOES HEREBY CERTIFY.
That, pursuant to authority conferred upon the Board of Directors by the
Company's Certificate of Incorporation, as amended, and pursuant to the
provisions of Section 151 of the General Corporation Law of the state of
Delaware, as amended, said Board of Directors, pursuant to a Unanimous Consent
to Action Without a Meeting, dated March 27, 1995, unanimously adopted the
following resolutions providing for the creation and issuance of a new series of
shares of the Company's authorized preferred stock designated as "Series B
Senior Convertible Preferred Stock":
RESOLVED, that the Board of Directors hereby establishes and designates a
new class of the Company's authorized but unissued preferred stock and that the
designation and amount thereof and the relative rights, preferences,
qualifications, limitations and restrictions thereof are as follows:
1. Designation and Amount. The shares of this series of preferred stock
----------------------
shall be designated as "Series B Senior Convertible Preferred Stock," par value
$0.01 per share, and the number of shares constituting this series shall be
675,000 plus the number of shares which are necessary to be issued from time to
time to comply with the provisions of Section 7.6.
2. Certain Definitions. The following terms shall have the respective
-------------------
meanings indicated.
Additional Shares means all shares of Common Stock issued (or,
-----------------
pursuant to Section 7.3(b). deemed to be issued) by Issuer after the
--------------
Original Issue Date other than shares of Common Stock issued in connection
with a stock dividend, subdivision or combination referred to in Section
-------
7.3(b)(i) and other than shares of Common Stock issued or issuable at any
---------
time:
(i) in an aggregate amount of up to 2,000,000 shares (which
number shall be proportionately adjusted in the case of
recapitalizations, stock splits, stock dividends or combinations of
shares) of Common Stock and Options therefor (including shares of
Common Stock issuable upon exercise of Options which were issued on or
before the Original Issue Date) to directors and employees of Issuer
pursuant to Issuer's 1993 Incentive Stock Plan or similar plan adopted
by Issuer;
<PAGE>
(ii) upon exercise of Issuer's Underwriter's Warrant issued to the
underwriter of Issuer's 1991 public offering to purchase up to 225,000
shares of Common Stock;
(iii) upon exercise of Issuer's common stock purchase warrant issued
to Baytree Associates, Inc. to purchase up 80,000 shares of Common Stock;
(iv) upon exercise of the warrants described in that certain Warrant
Agreement dated as November 6, 1992 between the Issuer and Society
National Bank, as in effect on the Original Issue Date;
(v) upon the exercise of Issuer's Common Stock purchase warrants to
purchase up to 1,000,000 shares of Common Stock issued to various holders
pursuant to Issuer's 1994 Private Placement; provided, shares of Common
Stock issued upon such exercise shall, notwithstanding this clause (v), be
included as Additional Shares if the consideration received upon issuance
or exercise of such warrant or convertible security is less than $1.50 per
share of Common Stock; or
(vi) up to 250,000 shares of Common Stock in the aggregate issued
to shareholders of Germany Oil Company as consideration for the sale,
cancellation or other relinquishment of shares of Germany Oil Company
owned by such shareholders in connection with the sale of Germanv Oil
Company to, or merger of Germany Oil Company with, Issuer or any of its
Affiliates; provided, the shares covered by this clause (vi) shall not
include shares issued directly or indirectly in respect of any notes or
other agreements between any such shareholder and Germanv Oil Company or
its Affiliates.
Affiliate means, with respect to any Person, any other Person controlling,
---------
controlled by, or under common control with that first Person. As used in this
definition, the term "control" means the possession, directly or indirectly, of
the power to direct, or cause the direction of, the management and policy of the
controlled Person.
Common Stock means Issuer's common stock, par value $0.01 per share, and
------------
any capital stock of Issuer which has the right to participate in the
distribution of earnings and assets of Issuer without limit as to amount or
percentage, into which common stock may hereafter be reclassified by appropriate
amendment to Issuer's Certificate of Incorporation.
Convertible Securities means any securities of Issuer convertible into or
----------------------
exchangeable for (through one or more conversions or exchanges) Common Stock.
Convertible Securities shall include any evidences of indebtedness, any capital
stock of Issuer (other than the Preferred Stock authorized herein) or other
securities convertible into or exchangeable for Common Stock.
-2-
<PAGE>
Delaware Act means the General Corporation Law of the State of Delaware,
------------
as amended from time to time.
Dividend Payment Date means the last day of December, March, June and
---------------------
September of each year; commencing June 30, 1995.
Dividend Period means the period beginning on any Dividend Payment Date
---------------
and ending on the day before the succeeding Dividend Payment Date; provided,
--------
however, that the first Dividend Period for each share of Preferred Stock shall
- -------
commence on the Dividend Payment first occurring after the date of issuance of
such shares of Preferred Stock, and the last Dividend Period for each share of
Preferred Stock shall end on the date such share is redeemed by the Company or
converted to Common Stock by the holder.
Germany Shares means any Additional Shares issued or deemed issued
--------------
pursuant to Section 7.3(b) to any shareholder or noteholder of Germany Oil
Company or any Affiliate thereof.
Junior Stock means the Common Stock and any other capital stock of the
------------
Company other than the Preferred Stock.
Liquidation Value means, as to each share of Preferred Stock, the sum of
-----------
$10.00.
Market Price of any security means the average of the closing prices of
------------
such security's sales on all securities exchanges on which such security may at
the time be listed, or, if there have been no sales on any such exchange on any
day, the average of the highest bid and lowest asked prices on all such
exchanges at the end of such day, or, if on any day such security is not so
listed, the average of the representative bid and asked prices quoted in the
NASDAQ System as of 4:00 p.m., New York time, or, if on any day such security is
not quoted in the NASDAQ System, the average of the highest bid and lowest asked
prices on such day in the domestic over-the-counter market as reported by the
National Quotation Bureau, Incorporated, or any similar successor organization,
in each such case averaged over a period of 21 days consisting of the day as of
which "Market Price" is being determined and the 20 consecutive business days
prior to such day. If at any time such security is not listed on any securities
exchange or quoted in the NASDAQ System or the over-the-counter market, the
"Market Price" will be the fair value thereof determined jointly by Issuer and
the holders of a majority of the shares of Preferred Stock. If such parties are
unable to reach agreement within a reasonable period of time, such fair value
will be determined by an independent appraiser jointly selected by Issuer and
the holders of a majority of the shares of Preferred Stock.
Options means rights, options or warrants to subscribe for, purchase other
-------
otherwise acquire either Common Stock or Convertible Securities.
-3-
<PAGE>
Original Issue Date means April 1, 1995.
-------------------
Person shall mean any individual, corporation, partnership, joint
------
venture, association, joint-stock company, trust, unincorporated
organization or government or a political subdivision, agency or
instrumentality thereof or other entity or organization of any kind.
Preferred Stock means the Company's Series B Senior Convertible
---------------
Preferred Stock having a par value of $0.01 per share.
Redemption Price means, as to each share of Preferred Stock to be
----------------
redeemed, an amount equal to $10.00 plus all dividends (and interest
accrued thereon and other charges related thereto) accumulated and unpaid
on such share through the date of redemption.
Subsidiary means any corporation of which the shares of stock having a
----------
majority of the general voting power in the electing the board of directors
are, at the time as of which any determination is being made, owned by the
Company either directly or indirectly through a Subsidiary.
3. Dividends.
---------
3.1 Right and Payment The holders of the Preferred Stock shall be
-----------------
paid cumulative cash dividends at the annual rate of $1.20 per share. Dividends
shall accrue daily and accrued dividends for any period of less than one year
shall be computed on the basis of the number of days elapsed out of a 360-day
year. Dividends shall be payable in cash in quarterly installments on each
Dividend Payment Date in the amount accrued to such Dividend Payment Date;
provided, however, that cash dividends shall be required to be paid only to the
extent the Company may lawfully do so under the Delaware Act; and, provided
further, that notwithstanding any other provision of this Certificate of
Designation, if the Company may not lawfully under the Delaware Act pay all the
dividends it is required to pay under this Section 3 on any Dividend Payment
---------
Date, it shall pay on such date all the dividends it may lawfully pay pro rata
among the holders of the Preferred Stock and, at the earliest time or times
thereafter when it may lawfully pay any or all of the balance of such dividends,
it shall do so; and, provided further, notwithstanding any other provision of
this Certificate of Designation, until such time as the Company's indebtedness
to Bank of America National Trust and Savings Association has been paid in full
or refinanced by a third party, the Company shall be permitted, in lieu of the
cash dividend payments required above, to satisfy its obligation to make
dividend payments by issuing a number of additional shares of Preferred Stock
equal to the amount of the dividend payment otherwise payable on such Dividend
Payment Date divided by $10.00. For the purposes of (i) computing the number of
shares of Preferred Stock issuable to a particular holder pursuant to the last
proviso of the preceding sentence and (ii) minimizing fractional shares, all
dividends payable to a particular holder in respect of all of its shares of
Preferred Stock shall be aggregated prior to dividing by $10.00. Any remaining
fractional share after the foregoing computation shall be rounded up if the
fraction is one-half or more, and rounded down if the fraction
-4-
<PAGE>
is less than one-half. For example, if by reason of the application of the
proviso above referring to Bank of America indebtedness the Company is only
permitted to pay dividends in additional shares of Preferred Stock, the
following stock dividends would be payable; (x) a holder of 10,000 shares of
Preferred Stock would be entitled to $.30 (the quarterly dividend amount) x
10,000 = $3000/$10 = 300 shares of Preferred Stock and (y) a holder of 10,550
shares of Preferred Stock would be entitled to $.30 (the quarterly dividend
amount) x 10,550 = $3165/$10 = 316.5 shares or 317 shares of Preferred Stock
after rounding up. Dividends on each share of the Preferred Stock shall commence
to accrue and shall be cumulative from (i) April 1, 1995, in the case of the
initial 370,000 shares of Preferred Stock issued; and (ii) in the case of all
shares of Preferred Stock issued as dividends pursuant to Section 3.1, the
Dividend Payment Date with respect to which such shares were issued. Dividends
shall accrue and be cumulative as provided in the preceding sentence whether or
nor they are earned, declared, or lawfully payable under the Delaware Act If any
dividend which is required to be paid on any Dividend Payment Date is not paid
for any reason, such unpaid dividend shall thereafter bear interest at the
higher of (i) eighteen percent (18%) per annum, or (ii) the prime rate charged
by First Interstate Bank of Texas, N.A. to its commercial customers, plus three
percentage points per annum; provided, in no event shall the foregoing interest
rate exceed the maximum nonusurious rate of interest permitted by applicable
law. In the event the Company fails to make any dividend required to be made
pursuant to the preceding provisions for two consecutive Dividend Payment Dates,
the holders of Preferred Stock. voting as a class, shall immediately be entitled
at its option to appoint a person or persons comprising not more than 22% of the
Company's Board of Directors to serve thereon until all unpaid dividends have
been made current; provided, under the circumstances described, the holders of
Preferred Stock shall be entitled to appoint at least one director to the
Company's Board of Directors.
3.2 Priority. The Company shall make no distribution to the holders of
--------
Junior Stock in any fiscal year except as permitted in this Section 3.2 and
-----------
Section 8.4. "Distribution" in this Section 3.2 means the transfer of cash or
- ----------- -----------
property, whether by Way of dividend or otherwise (except a dividend in shares
(common or preferred) of the Company), or the purchase or redemption of shares
of the Company for cash or property, but does not include repurchase of shares
from a terminated employee or consultant of the Company within the terms of an
agreement applicable to such an employee providing for such repurchase. The
Company shall make no distributions to the holders of Junior Stock at any time
that any share of Preferred Stock remains outstanding except in accordance with
Section 9 below.
3.3 Conversion. Upon conversion of a share of Preferred Stock into
----------
Common Stock, all accumulated dividends on each share of Preferred Stock so
converted shall be payable by the Company to the holder of such share in cash;
provided, that to the extent such dividend cannot be legally declared and paid
or to the extent the holder elects at the time of such conversion, the holder
shall be entitled to receive additional shares of Common Stock on conversion
equal to the number of shares that the unpaid dividends on converted shares of
Preferred Stock would purchase at the Market Price on the date of conversion.
-5-
<PAGE>
4. Redemption.
----------
4.1 Optional Redemption. The Company, at its option and subject to
-------------------
the conditions hereinafter stated, may, at any time and from time to time,
redeem all or any part of the outstanding Preferred Stock at the Redemption
Price payable in cash.
4.2 Optional Redemption Procedure. The right of the Company to make
-----------------------------
any optional redemption pursuant to Section 4.1 shall be subject to
-----------
satisfaction, at or prior to such redemption, of all the following conditions.
(a) Any redemption effected pursuant to Section 4.1 shall be made on a
-----------
pro rata basis among the holders of the Preferred Stock in proportion to
the shares of Preferred Stock then held by them.
(b) No such optional redemption may be made unless all accumulated
dividends (including any interest thereon or other charges related thereto)
on all outstanding shares of Preferred Stock have been paid to the date of
such optional redemption and adequate provision has been made for the
payment of all dividends on the Preferred Stock due for the then current
Dividend Period.
(c) The optional redemption shall be effected by call and written or
printed notice by certified mail, postage prepaid, return receipt
requested, to the holders of record of the Preferred Stock being redeemed,
such notice to be addressed to each holder at the address shown in the
Company's records which notice shall (i) specify the date of redemption,
(ii) the number of shares of the holder to be redeemed (iii) the Redemption
Price, (iv) the place at which holders of the Preferred Stock may obtain
payment of the Redemption Price, (v) the date on which conversion rights
with respect to the Preferred Stock terminate and (vi) such other
information, if any, as the Company's Board of Directors may deem
appropriate. Such notice shall be given no more than 60 but no less than 30
days prior to the date fixed for redemption. On or after the date of
redemption as specified in such notice, each holder shall surrender to the
Company, at the place specified in such notice, his certificate or
certificates (or comply with applicable lost certificate provisions) for
the Preferred Stock to be redeemed as stated in the notice (except that
such number of shares shall be reduced by the number of shares which have
been converted pursuant to Section 7 hereof between the date of notice and
---------
the date on which conversion rights terminate). Provided such notice is
duly given and provided that on the redemption date specified there shall
be a source of funds legally available for such redemption and the
Redemption Price necessary for the redemption shall have been paid, then
all rights with respect to such shares shall, after the specified
redemption date, terminate, whether or not said certificates have been
surrendered, excepting only in the latter instance the rights of the holder
to receive the Redemption Price thereof, without interest, upon such
surrender (or compliance with lost certificate provisions).
-6-
<PAGE>
4.3 No Reissue of Shares. Any shares of the Preferred Stock redeemed,
--------------------
purchased, or otherwise acquired by the Company shall be deemed retired and
shall be canceled and may not under any circumstances thereafter be issued or
otherwise disposed of by the company.
4.4 Conversion. In the event the Company shall give notice of an
----------
optional redemption of Preferred Stock as provided in Section 4.2 above, then
-----------
each holder of Preferred Stock may thereafter elect, in accordance with
Section 7 below, to convert all or any portion of such holder's Preferred Stock
- ---------
to Common Stock at any time on or before the last business day preceding the
date fixed for redemption.
5. Voting Rights. Except as otherwise required by law or as provided in
-------------
this Certificate of Designation, the holders of the Preferred Stock shall not be
entitled to notice of any meeting of the holders of the Company's voting
securities and the shares of Preferred Stock shall not have any voting rights.
6. Liquidation Preference.
----------------------
6.1 General.
-------
(a) Subject to the remaining provisions of this Section 6, in the
---------
event of any liquidation, dissolution, or winding up of the affairs of the
Company, whether voluntary or involuntary, after payment or provision for
payment of the debts and liabilities of the Company, the holders of the
Preferred Stock shall be entitled to receive, out of the remaining assets
of the Company, the Liquidation Value in cash for each of the shares of
Preferred Stock they then hold, plus an amount equal to all dividends
accumulated and unpaid on each such share (including any interest thereon
or other charges related thereto) through the date fixed for distribution,
before any distribution shall be made to the holders of any shares of
Junior Stock. If upon any liquidation, dissolution or winding up of the
affairs of the Company, whether voluntary or involuntary, the assets of the
Company available for distribution to shareholders shall be insufficient to
permit the payment to the holders of the Preferred Stock of the aforesaid
preferential amounts, then the entire assets of the Company shall be
distributed ratably among the holders of the Preferred Stock then
outstanding according to the number of shares held by each.
(b) After payment to the holders of the Preferred Stock of the
amounts set forth in Section 6.1(a) above, the entire remaining assets and
--------------
funds of the Company legally available for distribution, if any, shall be
distributed among the holders of the Common Stock and the Preferred Stock
in proportion to the shares of Common Stock then held by them and the
shares of Common Stock which they then have the right to acquire upon
conversion of the shares of Preferred Stock then held by them.
6.2 Merger or Consolidation. For purposes of this Section 6, a
----------------------- ---------
liquidation, dissolution, or winding up of the Company shall be deemed to be
occasioned by, and
-7-
<PAGE>
include, the Company's sale of all or substantially all of its assets or the
merger or consolidation for the Company into or with any other Person if the
holders of the outstanding voting shares of the Company prior to such merger or
consolidation do not retain a majority of the voting power of the surviving
Person. For such purposes, the exchange of securities of the surviving Person
for securities of the Company shall be deemed to constitute a merger or
consolidation of the Company.
6.3 Fair Value. The fair value of the assets or property to be
----------
distributed or exchanged to or with the holders of the Preferred Stock in the
event of a liquidation, dissolution or winding up of the Company pursuant to
Section 6.1 shall be determined by the Board of Directors of the Company in good
- -----------
faith, provided that any securities to be delivered to the holders of Preferred
Stock or Common Stock under this Section 6 shall be valued at Market Price.
---------
6.4 No Restriction on Surplus. No provision of this Section 6 shall
------------------------- ---------
in any manner, prior to any liquidation, dissolution, or winding up of the
affairs of the Company, whether voluntary or otherwise, create or be deemed to
create any restrictions upon the surplus of the Company or prohibit the payment
of dividends on the capital stock of the Company out of the funds of the Company
legally available therefor, nor shall any such restrictions or prohibition be in
any manner inferred from the provisions of this Section 6.
---------
7. Conversion.
----------
7.1 Voluntary Conversion. Any holder of Preferred Stock may at any
--------------------
time and from time to time convert all or any portion of the Preferred Stock
held thereby (and any fractional share thereof) into a number of fully paid and
nonassessable shares of Common Stock of Issuer determined by multiplying the
number of shares of Preferred Stock to be converted by $10.00 and dividing the
result by the Conversion Price (as defined in Section 7.3) then in effect.
-----------
7.2 Conversion Procedure.
--------------------
(a) Each conversion of Preferred Stock will be deemed to have
been effected as of the close of business on the date on which the
certificate or certificates representing the Preferred Stock to be
converted have been surrendered at the principal office of Issuer. At such
time as such conversion has been effected, the rights of the holder of such
Preferred Stock as such holder will cease and the Person or Persons in
whose name or names any certificate or certificates for shares of Common
Stock are to be issued upon such conversion will be deemed to have been the
holder or holders of record of the shares of Common Stock represented
thereby.
(b) As soon as possible after a conversion has been effected (but
in any event within seven business days), Issuer (in the case of clause (i)
below) will deliver to the converting holder:
-8-
<PAGE>
(i) A certificate or certificates representing the number of
shares of Common Stock issuable by reason of such conversion in such
name or names and such denomination or denominations as the converting
holder has specified;
(ii) Subject to the provisions of Section 3.3, payment of an
-----------
amount equal to all accrued dividends with respect to each share of
Preferred Stock converted, which have not been paid prior thereto;
(iii) A certificate representing any Preferred Stock which was
represented by the certificate or certificates delivered to the
Company in connection with such conversion but which was not covered.
(c) Subject to the provisions of Section 3.3, if for any reason the
-----------
Company is unable to pay any accrued dividends on the Preferred Stock being
converted, the Company will pay such dividends to the converting holder as soon
thereafter funds of the Company are legally available for such payment. At the
request of any such converting holder, the Company will provide such holder with
written evidence of its obligation to such holder.
(d) The issuance of certificates for shares of Common Stock upon
conversion of Preferred Stock will be made without charge to the holder for any
issuance tax in respect thereof or other cost incurred by Issuer in connection
with such conversion and the related issuance of shares of Common Stock. Upon
conversion, Issuer will take all such actions as are necessary in order to
insure that the Common Stock issuable with respect to such conversion will be
validly issued, fully paid and nonassessable.
(e) The Company will not close its books against the transfer of
Preferred Stock or of Common Stock issued or issuable upon conversion of
Preferred Stock in any manner which interferes with the timely conversion of
Preferred Stock.
7.3 Conversion Price and Adjustments.
---------------------------------
(a) The initial Conversion Price at which shares of Common Stock shall
be deliverable upon conversion of Preferred Stock will be $1.50 per share. The
initial Conversion Price is subject to adjustment as hereinafter provided.
Except as provided in this Certificate of Designation, no adjustment in the
Conversion Price shall be made in respect of the issuance of Additional Shares
unless the consideration per share for an Additional Share issued or deemed to
be issued by Issuer is less than the Conversion Price in effect on the date of,
and immediately prior to, such issue.
(b) In the event Issuer at any time or from time to time after the
Original Issue Date shall issue any Options or Convertible Securities or shall
fix a
-9-
<PAGE>
record date for the determination of holders of any class of securities entitled
to receive any such Options or Convertible Securities, then the following shall
apply:
(i) The maximum number of shares of Common Stock issuable upon the
exercise of such Options or, in the case of Convertible Securities and
Options therefor, the conversion or exchange of such Convertible
Securities, shall be deemed to be Additional Shares issued as of the
earlier of (x) the time of such Options or Convertible Securities are
issued or (y) in case such a record date shall have been fixed, as of
the close of business on such record date; provided, that if such
Options or Convertible Securities by their terms provide, with the
passage of time or otherwise, for any change in the minimum amount of
consideration payable to Issuer, or any change in the maximum number
of shares of Common Stock issuable upon the exercise, conversion or
exchange thereof other than changes which may occur as a result of
anti-dilution provisions (for which each Conversion Price shall be
readjusted based on the provisions of this Section 7.3 when each such
-----------
change is effective), the consideration per share (determined pursuant
to Section 7.3(e) hereof) for Common Stock issuable pursuant to such
--------------
Options or Convertible Securities shall be the minimum consideration
per share that could at any time result, taking into consideration all
subsequent changes in the minimum amount of consideration payable to
Issuer and/or in the maximum number of shares of Common Stock issuable
upon the exercise, conversion or exchange.
(ii) No further adjustment in the Conversion Price shall be made
upon the subsequent issue of Convertible Securities or shares of
Common Stock upon the exercise of such Options or conversion or
exchange of such Convertible Securities.
(iii) Upon the expiration of any such Options or any rights of
conversion or exchange of such Convertible Securities which shall not
have been exercised, the Conversion Price computed upon the original
issue thereof (or upon the occurrence of a record date with respect
thereto), and any subsequent adjustments based thereon, shall, upon
such expiration, be recomputed (provided that recomputation shall not
affect any Preferred Stock converted or tendered for conversion prior
to such exercise or expiration) as if:
(A) in the case of Convertible Securities or Options for
Common Stock, the only Additional Shares issued were shares of
Common Stock, if any, actually issued upon the exercise of such
Options or the conversion or exchange of such Convertible
Securities and the consideration received therefor was the
consideration actually received by Issuer for the issue
-10-
<PAGE>
of all such Options that were exercised plus the consideration
actually received by Issuer upon such exercise, or for the issue of
all such Convertible Securities which were actually converted or
exchanged, plus the additional consideration, if any, actually
received by Issuer upon such conversion or exchange; and
(B) in the case of Options for Convertible Securities, only the
Convertible Securities, if any, actually issued upon the exercise
thereof were issued at the time of issue of such Options, and the
consideration received by Issuer for the Additional Shares deemed to
have been then issued was the consideration actually received by
Issuer for the issue of all such Options that were exercised, plus
the consideration deemed to have been received by Issuer upon the
issue of the Convertible Securities with respect to which such Options
that were actually exercised.
(iv) No readjustment pursuant to clause (iii) above shall have the
effect of increasing the Conversion Price to an amount which exceeds the
Conversion Price in effect immediately prior to the original adjustment If
Additional Shares were issued between the original adjustment date and the
readjustment date (other than Common Stock issued upon exercise of the
Options or conversion of the Convertible Securities that are the subject to
the readjustment), then the Conversion Price on the readjustment date shall
be recomputed (but only if a lower Conversion Price results therefrom) by
treating the readjusted Conversion Price as the Conversion Price in effect
on the original adjustment date and adjusting such Conversion Price for all
issuances of Additional Shares (other than Common Stock issued upon
exercise of the Options or conversion of the Convertible Securities that
are the subject of the readjustment).
(c) The Conversion Price shall be adjusted in accordance with the following
provisions:
(i) In the event Issuer at any time or from time to time after the
Original Issue Date shall declare or pay any dividend on the Common Stock
payable in Common Stock or effect a subdivision or combination of the
outstanding shares of Common Stock (by reclassification or otherwise), then
and in any such event, the Conversion Price shall be proportionately
decreased in the case of a stock dividend or subdivision and
proportionately increased in the case of a combination of shares effective,
in the case of such dividend, immediately after the close of business on
the record date for the determination of holders of Common Stock entitled
to receive such dividend or, in the case of a subdivision or combination,
at the close
-11-
<PAGE>
of business immediately prior to the date upon which such corporate action
becomes effective.
(ii) In the event Issuer shall at any time after the Original Issue
Date issue Additional Shares (including Additional Shares deemed to be
issued pursuant to Section 7.3(b)) other than Germany Shares, without
---------------
consideration or for a consideration per share less than the Conversion
Price in effect on the date of and immediately prior to such issuance,
then and in each such event, the Conversion Price shall be reduced
concurrently with such issue of shares, to a price (calculated to the
nearest cent) determined by multiplying such Conversion Price by a
fraction, the numerator of which shall be the number of shares of Common
Stock outstanding immediately prior to such issuance plus the number of
shares of Common Stock which the aggregate consideration received by
Issuer for the total number of Additional Shares so issued would purchase
at the Conversion Price in effect immediately prior to such issuance, and
the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issuance plus the number of such
Additional Shares so issued. For the purpose of the above calculation,
the number of shares of Common Stock outstanding immediately prior to such
issuance shall be calculated on a fully diluted basis, as if all shares of
Preferred Stock and all Options and Convertible Securities had been fully
exercised or converted into shares of Common Stock immediately prior to
such issuance (and the resulting securities fully convened into shares of
Common Stock, if so convertible) as of such date, but not including in
such calculation any additional shares of Common Stock issuable with
respect to shares of Preferred Stock, Options or Convertible Securities
solely as a result of the adjustment of the Conversion Price (or other
conversion ratios) resulting from the issuance of the Additional Shares
causing the adjustment in question.
(iii) In the event Issuer shall at any time after the Original Issue
Date issue Germany Shares (including Germany Shares deemed issued pursuant
to Section 7.3(b)), without consideration or for a consideration per share
---------------
less than the Conversion Price in effect on the date of and immediately
prior to such issuance, then and in each such event, the Conversion Price
shall be reduced concurrently with such issue of shares to the price at
which such Germany Shares are issued.
(d) For purposes of this Section 7.3, the consideration received by Issuer
-----------
for the issue of any Additional Shares shall be computed as follows:
(i) Insofar as it consists of cash, such consideration shall consist
of the aggregate amount of cash received by Issuer excluding amounts paid
or payable for accrued interest or accrued dividends.
-12-
<PAGE>
Insofar as it consists of property other than cash, such
consideration shall be computed at the fair value thereof at the
time of such issue, as determined in good faith by the Board of
Directors of Issuer. In the event Additional Shares are issued
together with other securities or other assets of Issuer for
consideration which covers both, such consideration shall be the
proportion of such consideration so received, computed as
determined in good faith by the Board of Directors of Issuer.
(ii) For the purpose of computing the initial adjustment of
each Conversion Price pursuant to Section 7.3(b)(i) the
-----------------
consideration per share received by Issuer for additional Shares
of Common Stock deemed to have been issued pursuant to Section
-------
7.3(b)(i) shall be determined by dividing the total amount, if
---------
any, received or receivable by Issuer as consideration for the
issue of such Options or Convertible Securities, plus the minimum
aggregate amount of additional consideration payable to Issuer
upon the exercise of such Options or the conversion or exchange
of such Convertible Securities, or in the case of the Options for
Convertible Securities, the exercise of such Options for
Convertible Securities and the conversion or exchange of such
Convertible Securities, by the maximum number of shares of Common
Stock issuable upon the exercise of such Options or the
conversion or exchange of such Convertible Securities.
(e) In the event Issuer at any time or from time to time makes,
or fixes a record date for the determination of holders of Common
Stock entitled to receive a dividend or other distribution payable in
securities of Issuer other than shares of Common Stock or any other
property (including cash), then and in each such event provision shall
be made so that each holder of Preferred Stock shall receive upon
conversion thereof, in addition to the number of shares of Common
Stock receivable thereupon, the amount of securities of Issuer or
other property which he would have received had such holder's
Preferred Stock been converted into Common Stock on the record date of
such event and had the holder thereafter, during the period from the
record date of such event to and including the date of conversion,
retained such securities or other property (including cash) receivable
by the holder as aforesaid during such period, subject to all other
adjustments called for during such period under this Section 7.3 with
-----------
respect to the rights of the holders of the Preferred Stock.
7.4 No Impairment. Issuer will not, by amendment of its Certificate
-------------
of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by Issuer, but will at all times
in good faith assist in the carrying out of all the provisions of this
Certificate of Designation and in the taking of all such action as may be
necessary
-13-
<PAGE>
or appropriate in order to protect the conversion rights of the holders of
Preferred Stock against impairment.
7.5 Certificate as to Adjustments. Upon the occurrence of each
-----------------------------
adjustment or readjustment of the Conversion Price pursuant to this Certificate
of Designation, Issuer at its expense, shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to the holders of
Preferred Stock a certificate setting forth such adjustment or readjustment and
show in detail the facts upon which such adjustment or readjustment is based.
Issuer shall, upon the written request at any time of any holder of Preferred
Stock, furnish or cause to be furnished to such holder a like certificate
setting forth (i) such adjustments and readjustments, (ii) each Conversion Price
at the time in effect, and (iii) the number of shares of Common Stock and the
amount, if any, of other property which at the time Would be received upon the
conversion of Preferred Stock.
7.6 Reservation of Preferred Stock and Stock Issuable Upon
------------------------------------------------------
Conversation. Issuer shall at all times (any such time being referred to in this
- ------------
Section 7.6 as a "determination date") reserve and keep available out of its
- -----------
authorized but unissued shares of Preferred Stock solely for the purpose of
effecting the payments of dividends pursuant to Section 3.1, 675,000 shares of
Preferred Stock plus such number of additional shares of Preferred Stock, if
any, as shall be needed to pay by the issuance of additional Preferred Stock all
dividends which may accrue under Section 3.1 during the two-year period from any
determination date. If at any time the number of authorized but unissued shares
of Preferred Stock shall not be sufficient to comply with the preceding
provisions of this Section 7.6, Issuer shall promptly take such corporate action
-----------
as may, in the opinion of its counsel, be necessary to increase its authorized
but unissued shares of Preferred Stock to such number of shares as shall be
required by the terms hereof. Issuer shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock solely for
the purpose of effecting the conversion of the Preferred Stock, such number of
its shares of Common Stock as shall from time to time be sufficient to effect a
conversion of all and, if at any time the number of authorized but unissued
shares of Common Stock shall not be sufficient to effect the conversion of all
shares of Preferred Stock, Issuer shall promptly take such corporate action as
may, in the opinion of its counsel, be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient
for such purpose.
7.7 Payment of Taxes. Issuer shall pay all issue taxes and other
----------------
governmental charges (other than income or other taxes imposed upon profits
realized by the recipient) that may be imposed in respect of the issue or
delivery of shares of Common Stock or other securities or property upon
conversion of the Preferred Stock; provided, however that Issuer shall not be
obligated to pay any tax or other charge imposed in connection with any
transfer involved in the issue and delivery of shares of Common Stock or other
securities in any name other than that in which the shares of Preferred Stock
were registered.
7.8 Reclassification: Recapitalization. In the event of any
----------------------------------
reclassification of the Common Stock or recapitalization involving Common Stock
(other than a change in
-14-
<PAGE>
par value or as a result of a stock dividend, subdivision, or combination of
shares), each holder of Preferred Stock shall thereafter be entitled to receive
and provisions shall be made therefor in an agreement relating to the
reclassification or recapitalization, upon conversion of Preferred Stock, the
kind and number of shares of Common Stock or other securities or property
(including cash) of Issuer, to which such holder of Preferred Stock would have
been entitled if such holder had held the number of shares of Common Stock of
Issuer into which the shares of Preferred Stock held by such holder was
convertible immediately prior to such reclassification or recapitalization; and
in any such case appropriate adjustment shall be made in the application of the
provisions herein set forth with respect to the rights and interests thereafter
of the holders of the Preferred Stock; to the end that the provisions set forth
herein shall thereafter be applicable, as nearly as reasonably may be, in
relation to any shares, other securities, or property thereafter receivable upon
conversion of the Preferred Stock.
7.9 Notices. In the event that the Issuer intends:
-------
(a) to declare any dividend or distribution upon its Common
Stock, whether in cash, property, stock or other securities, whether
or not a regular cash dividend and whether or not out of earnings or
earned surplus;
(b) to offer for subscription pro rata to the holders of any
class or series of its stock any additional shares of stock of any
class or series or other rights;
(c) to effect any reclassification or recapitalization of its
Common Stock outstanding involving a change in the Common Stock; or
(d) to merge or consolidate With or into any other corporation,
or sell, lease or convey all or substantially all its property or
business, or to liquidate, dissolve or wind up.
THEN, in connection with each event and for the purpose of providing the holders
of Preferred Stock with an opportunity to elect to convert all or a portion of
the Preferred Stock held thereby in accordance with the other provisions of this
Certificate of Designation prior to the occurrence of any of the events or dates
described in clauses (a)-(d) above, Issuer shall send to each holder of
Preferred Stock:
(A) at least 20 days prior written notice of the date on which a
record shall be taken for such dividend, distribution or subscription
rights (and specifying the date on which the holders of Common Stock
shall be entitled thereto) or for determining rights to vote in
respect of the matters referred to in (a) and (b) above; and
(B) in the case of the matters referred to in (c) and (d) above, at
least 20 days prior written notice of the date when the same shall
take place (and specifying the date on which the holders of Common
Stock shall be entitled
-15-
<PAGE>
to exchange their Common Stock for securities or other property
deliverable upon the occurrence of such event or such earlier date, if
any, on which a record shall be taken of the holders of Common Stock
who shall be entitled to exchange their Common Stock).
7.10 Manner of Notice. Any notice required by this Certificate of
----------------
Designation shall be deemed given if given by certified mail, postage prepaid,
return receipt requested, addressed to the holder of Preferred Stock at the
address for each such holder as shown on the books of Issuer.
7.11 Fractional Shares. No fractional share shall be issued upon the
-----------------
conversion of any portion of the Preferred Stock. All shares of Common Stock
(including fractions thereof) issuable upon conversion of Preferred Stock shall
be aggregated for purposes of determining whether the conversion would result in
the issuance of any fractional share. If, after such aggregation, the conversion
would result in the issuance of a fraction of a share of Common Stock, Issuer
shall, in lieu of issuing any fractional share, pay the holder otherwise
entitled to such fraction a sum in cash equal to the Market Price of such
fraction on the date of conversion.
8. Covenants. In addition to any other rights provided by law or
---------
agreement, so long as any share of Preferred Stock shall be outstanding, the
Company shall not, without first obtaining the affirmative vote or written
consent of the holders of not less than 60% of the outstanding shares of
Preferred Stock:
8.1 amend or repeal any provision of, or add any provision to, the
Company's Certificate of Incorporation or bylaws if such action would alter or
change the preferences, rights, privileges or powers of, or the restrictions
provided for the benefit of the Preferred Stock, or increase or decrease the
number of shares of the Preferred Stock authorized hereby;
8.2 authorize or issue shares of any class of stock having any
preference or priority as to dividends or assets superior to or on a parity
with any such preference or priority of the Preferred Stock, or authorize or
issue shares of stock of any class or any bonds, debentures, notes or other
obligations convertible into or exchangeable for, or having option rights to
purchase, any shares of any other class or series of stock of the Company having
any preference or priority as to dividends or assets superior to or on a parity
with any such preference or priority of the Preferred Stock;
8.3 reclassify any Junior Stock into shares having any preference or
priority' as to dividends or assets superior to or on a parity with any such
preference or priority of the Preferred Stock:
8.4 make any dividend payment (other than dividend payments in shares
of Common Stock or Preferred Stock) in respect of any shares of any class of
stock of the Company so long as any Preferred Stock remaining outstanding; or
-16-
<PAGE>
8.5 amend or repeal any provision of this Section 8.
---------
IN WITNESS WHEREOF, the Company has caused this Certificate to be signed by
James G. Borem, its President, and attested by Jeffrey T. Wilson, its Assistant
Secretary, this 30th day of March, 1995.
LATEX RESOURCES, INC.
By:/s/ James G. Borem
----------------------------
James G. Borem, President
ATTEST:
/s/ Jeffrey T. Wilson
- -------------------------------
Jeffrey T. Wilson, Assistant Secretary
[SEAL]
-17-
<PAGE>
EXHIBIT C
NO. 94-049766
NORTHERN NATURAL GAS (S) IN THE DISTRICT COURT OF
COMPANY (S)
(S)
V. (S) HARRIS COUNTY, TEXAS
(S)
LATEX RESOURCES, INC. (S) 152ND JUDICIAL DISTRICT
JOINT MOTION FOR ENTRY OF AGREED JUDGMENT
-----------------------------------------
COMES NOW Northern Natural Gas Company and LaTex Resources, Inc. and
present their Joint Motion for Entry of Agreed Judgment and in support thereof
would should the Court as follows:
I.
Both Northern Natural Gas Company, Plaintiff, and LaTex Resources, Inc.,
Defendant, have executed an Agreed Judgment which is enclosed herewith.
WHEREFORE PREMISES CONSIDERED Northern Natural Gas Company and LaTex
Resources, Inc. pray that upon consideration hereof the Court grant the Agreed
Judgment filed herewith.
Respectfully submitted,
ENRON LITIGATION UNIT
By:
----------------------------------------
Charles E. Cheek
State Bar No.04171800
1400 Smith Street, Suite 4821
Houston, Texas 77002-7369
P.O. Box 4335
Houston, Texas 77210-4335
Tel: (713) 853-6307
Fax: (713) 646-2547
COUNSEL FOR PLAINTIFF
MCDADE & FOGLER, L.L.P.
By:
-------------------------------------
Murray Fogler
State Bar No.07207300
Two Houston Center
909 Fannin, Suite 1800
Houston, Texas 77010-1007
Tel: (713) 654-4300
Fax: (713) 654-4343
COUNSEL FOR DEFENDANT
<PAGE>
EXHIBIT C
NO.94-049766
NORTHERN NATURAL GAS (S) IN THE DISTRICT COURT OF
COMPANY (S)
(S)
V. (S) HARRIS COUNTY, TEXAS
(S)
LATEX RESOURCES, INC. (S) 152ND JUDICIAL DISTRICT
AGREED JUDGMENT
---------------
This Agreed Judgment is by and between Plaintiff, Northern Natural Gas
Company, and Defendant, LaTex Resources, Inc.
Plaintiff and Defendant have agreed to settle the above styled and numbered
cause of action.
The Court, after considering the agreement of the parties, is of the
opinion that such Agreed Judgment should be entered and that Plaintiff, Northern
Natural Gas Company, is entitled to recover of and from Defendant, LaTex
Resources, Inc., the sum of $465,000.00.
IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREED that Plaintiff, Northern
Natural Gas Company, have and recover from Defendant, LaTex Resources, Inc., the
sum of $465,000.00.
IT IS FURTHER ORDERED that the judgment hereby rendered shall bear interest
at a rate of 6% per annum from the date of issuance of a writ of execution until
the judgment is satisfied thereunder.
IT IS FURTHER ORDERED that all costs of Court expended or incurred in this
case are to be borne by the party incurring same.
All writs and processes for the enforcement and collection of this judgment
may issue as necessary. All other relief not expressly granted herein is denied.
Signed this ______ day of _______________, 1996.
-----------------------------------
Judge Presiding
APPROVED AS TO FORM:
ENRON LITIGATION UNIT MCDADE & FOGLER, L.L.P.
By: By:
----------------------------- -------------------------------
Charles E. Cheek Murray Fogler
State Bar No.04171500 State Bar No.07207300
1400 Smith Street, Suite 4521 Two Houston Center
Houston, Texas 77002-7369 909 Fannin, Suite 1800
P.O. Box 4335 Houston, Texas 77010-1007
Houston, Texas 77210-4335
Tel: (713) 553-6307 Tel: (713) 654-4300
Fax: (713) 646-2547 Fax: (713) 654-4343
COUNSEL FOR PLAINTIFF COUNSEL FOR DEFENDANT
<PAGE>
EXHIBIT D
NO.94-049766
NORTHERN NATURAL GAS (S) IN THE DISTRICT COURT OF
COMPANY (S)
(S)
V. (S) HARRIS COUNTY, TEXAS
(S)
LATEX RESOURCES, INC. (S) 152ND JUDICIAL DISTRICT
SATISFACTION AND RELEASE OF JUDGMENT
------------------------------------
Plaintiff, Northern Natural Gas Company, was awarded, on June __ 1996, in
the above captioned and numbered cause, a monetary judgment against Defendant,
LaTex Resources, Inc.
LaTex Resources, Inc. has now satisfied the monetary judgment. Accordingly,
Northern Natural Gas Company hereby acknowledges payment of this monetary
judgment and releases any and all liens and claims of whatsoever type and
nature, whether in rem or in personam, which it may own or hold, in whole or in
part, against LaTex Resources, Inc. as regards the monetary judgment entered in
the above captioned and numbered cause.
NORTHERN NATURAL GAS COMPANY
By:
----------------------------------------
(signature)
----------------------------------------
(printed name)
Date:
----------------------------------------
<PAGE>
EXHIBIT 10.125
[LETTERHEAD OF RAUSCHER PIERCE & CLARK APPEARS HERE]
PRIVATE AND CONFIDENTIAL
- ------------------------
November 8, 1996
LaTex Resources, Inc.
4200 Skelly Drive
Suite 1000
Tulsa, Oklahoma 74135
Attention: Mr. Jeffrey T. Wilson, Chairman and CEO
- ---------
Gentlemen:
Pursuant to that certain engagement letter dated November 27, 1995 (the
("Agreement"), between Rauscher Pierce & Clark, Inc., Rauscher Pierce & Clark
Limited (collectively, "RPC") and LaTex Resources, Inc. (the "Company"), the
undersigned hereby agree to amend the terms of such Agreement as follows:
1. Section 7 of the Agreement is hereby amended by inserting the following
paragraphs at the end of such paragraph:
"The Company shall be entitled to deduct from the fee to be paid under this
Section 7 any amounts paid to Rauscher Pierce Clark Limited ("RPC Ltd.") in
connection with the rendering by RPC Ltd. of a fairness opinion on the sale
of three subsidiaries of the Company pursuant to that certain engagement
letter dated November 3, 1996, between RPC Ltd. and the Company.
In the event that the proposed Merger with Alliance Resources, Inc. is not
consummated, the Company shall pay RPC a fee equal to forty thousand
dollars ($40,000) and shall reimburse RPC for all out-of-pocket expenses
incurred by RPC, including reasonable legal fees and expenses."
Except as expressly amended hereby, the Agreement and the terms thereof shall
remain in full force and effect. Kindly confirm the Company's acceptance and
agreement to the foregoing amendments by signing and returning one of the
enclosed copies of this Agreement, which will thereupon constitute an agreement
between RPC and the Company.
<PAGE>
Page 2
Very truly yours,
RAUSCHER PIERCE & CLARK, INC. and
RAUSCHER PIERCE & CLARK LIMITED
By: /s/ Peter Gerard
---------------------------
Name: Peter Gerard
Title: Managing Director
Accepted and Agreed to this
18th day of November, 1996
By: /s/ [ILLEGIBLE]
---------------------------
Name:
Title:
<PAGE>
SCHEDULE I
----------
1. The Company agrees to defend, indemnify, and hold RPC and its officers,
directors, agents, affiliates, employees, and controlling officers (each an
"Indemnified Party") harmless from and against any losses, claims, damages
or liabilities (including, without limitation, court costs and reasonable
attorneys' fees) to which any such Indemnified Party may become subject
insofar as the same arises from an action (a)(I) relating to the Option,
(ii) to the Sale of the Subsidiaries or (iii) to the Merger with Alliance
Resources, Inc., (b) which alleges or is based upon any alleged untrue
statement of a material fact, or omission of a material fact by the
Company, or (c) any other violation of applicable securities or other laws,
rules or regulations and to reimburse any such Indemnified Party for any
legal or other expenses reasonably incurred by them in connection with
investigating, settling or defending any action or claim in connection
therewith (including, without limitation, court costs and reasonable
attorneys' fees); provided, however, that the Company shall not be liable
-------- -------
in any such case to the extent that any such loss, claim, damages or
liability is found in a final judgement of a court of competent
jurisdiction to have resulted from any such Indemnified Party's gross
negligence, willful misconduct or bad faith in performing their services
hereunder. If for any reason the foregoing indemnification is unavailable
to an Indemnified Party, then the Company shall contribute to the amount
paid or payable by that Indemnified Party as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect not
only the relative benefits received by the Company on the one hand and the
Indemnified Party on the other hand but also the relative fault of the
Company and that Indemnified Party, as well as any relevant equitable
considerations. The Company agrees to reimburse an Indemnified Party within
ten days after presentation of any statement by that Indemnified Party for
all reasonable expenses (including without limitation of the generality of
the foregoing, fees and expenses of attorneys selected by each Indemnified
Party) incurred in connection with any testimony the Indemnified Party or
its employees are required to give (in court, before a regulatory agency,
by deposition or otherwise) in any regulatory or court proceeding
(including depositions), whether or not the Indemnified Party is a party,
and which related directly or indirectly to the Opinion, the Sale of the
Subsidiaries or the Merger with Alliance Resources, Inc.
2. With respect to the foregoing Paragraph 1 of the indemnification, the
-----------
Company agrees that no Indemnified Party shall be deemed to have been
grossly negligent for reasonably relying upon any written untrue statement
or alleged omission of a material fact necessary to make the statements, in
light of the circumstances in which made, not misleading, contained in or
omitted from any information provided to any Indemnified Party by or on
behalf of the Company or the Subsidiaries (including, without limitation of
the generality of the foregoing, any accountant or attorney employed or
retained by the Company or the Subsidiaries). The indemnification provided
in the foregoing Paragraph 1 hereof shall extend upon the same terms and
-----------
conditions to each person, if any, who may be deemed to control any
Indemnified Party and shall be applicable, to the extent set forth herein,
whether or not negligence of the person entitled to indemnification is
alleged or proven.
<PAGE>
3. In the event any action (with respect to which indemnity or reimbursement
from the Company may be sought by any Indemnified Party on account of
agreements contained herein) shall be brought or threatened against an
Indemnified Party, prompt notice will be given to the Company in writing of
such action, together with a copy of all papers served on, or received by,
such Indemnified Party in connection with such action provided that failure
to give such notice shall not affect such Indemnified Party's rights under
these indemnification provisions, unless, and only to the extent that, such
failure results in the Company's forfeiture of substantive rights or
defenses. If such an event occurs the Company shall assume the defense of
such action, including the employment of counsel and the payment of all
expenses. Each Indemnified Party shall have the right to employ separate
counsel in any such action and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (a) the employment thereof has been specifically
authorized by the Company in writing; (b) the Company has failed to assume
the defense and employ counsel; or (c) named parties, or parties threatened
to be named, to any such action (including any impleaded parties or parties
threatened to be impleaded) include both such Indemnified Party and the
Company, and the Indemnified Party has been advised by such counsel that
there may be one or more legal defenses available to them which are
different from or additional to those available to the Company (in which
cases each Indemnified Party shall have the right to employ its own counsel
and in such cases any reasonable fees and expenses of such counsel shall be
paid by the Company). The Company shall not be liable for any settlement of
any such action or proceeding effected without its written consent. If
there shall be a final judgement for the plaintiff in such action or
proceeding, the Company agrees to indemnify and hold harmless the
Indemnified Party from and against any loss or liability by reason of such
settlement or judgement.
<PAGE>
EXHIBIT 10.126
[LETTERHEAD OF BANK OF AMERICA APPEARS HERE]
FIRST AMENDMENT TO FORBEARANCE AGREEMENT
October 15, 1996
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
4200 East Skelly Drive
Suite 1000
Tulsa, OK 74135
Attention: President
Re: Amended and Restated Credit Agreement dated as of October 20, 1995, as
amended by Amendment No. 1 to Amended and Restated Credit Agreement
dated as of December 29, 1995 (such agreement, as the same has been
from time to time amended, the "Credit Agreement"), by and among
----------------
Latex Petroleum Corporation, LaTex/GOC Acquisition, Inc. and Germany
Oil Company (collectively, "Borrowers") and Bank of America National
---------
Trust and Savings Association ("Lender")
------
Gentlemen:
Reference is made to the Credit Agreement. Capitalized terms used, and not
otherwise defined herein, shall have the meanings set forth in the Credit
Agreement. LaTex Resources, Inc. ("LRI") and Enpro, Inc. ("Enpro"; together with
--- -----
LRI, "Guarantors") are guarantors of the Obligations. After each of us has
----------
signed this letter, this letter agreement (the "First Amendment") shall
---------------
constitute a binding agreement between Borrowers, the Guarantors and the Lender.
1. The Lender and each of the Borrowers and Guarantors is party to that
certain Forbearance Agreement dated as of July 23, 1996 (the "Forbearance
-----------
Agreement"). Pursuant to the Forbearance Agreement, each of the Borrowers and
- ---------
Guarantors acknowledged and agreed that Borrowers and Guarantors were in default
in various
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
October 15, 1996
Page 2
respects in their respective obligations under the Credit Agreement and the
other Loan Documents. Such Events of Default were defined in the Forbearance
Agreement as the "Acknowledged Defaults". Pursuant to the Forbearance
---------------------
Agreement, Borrowers and Guarantors requested, and the Lender agreed on the
terms and conditions set forth therein, that the Lender would forbear from the
exercise of its rights and remedies under the Credit Agreement and the other
Loan Documents, which rights and remedies would otherwise be available to the
Lender in respect of the Acknowledged Defaults.
2. The Lender, Borrowers and Guarantors hereby agree that the conditions
precedent to the effectiveness of the Forbearance Agreement set forth in
Section 5 of the Forbearance Agreement have been satisfied (except as to those
- ---------
items listed in Section 5 of this First Amendment that are, as of the date
---------
hereof, no longer conditions precedent) and that the Forbearance and the
Forbearance Period have become effective.
3. Except as specifically set forth in Section 4 hereof, (a) neither the
---------
execution of this First Amendment nor any negotiations or other actions
undertaken hereunder or pursuant hereto shall constitute a waiver or forbearance
of the rights of the Lender under the Credit Agreement or any other Loan
Document, and (b) the Lender shall retain all rights and remedies whatsoever to
which it may be entitled under the Credit Agreement or any other Loan Document.
4. The Lender, Borrowers and Guarantors hereby agree to amend the
Forbearance Agreement by deleting from the Forbearance Agreement Section 4
---------
thereof and substituting the following in its place:
"4. The Lender hereby agrees during the Forbearance Period (as defined
below) to delay enforcement of the rights granted to Lender under the
Credit Agreement and the other Loan Documents and applicable law arising as
a result of the Acknowledged Defaults. For purposes hereof, the
enforcement delay granted by the Lender hereby is referred to as the
"Forbearance" and the "Forbearance Period" shall mean the period beginning
----------- ------------------
with October 15, 1996 and ending on the earliest of:
a. November 29, 1996,
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
October 15, 1996
Page 3
b. the occurrence of a default by any of the Borrowers or the Guarantors
in respect of any of its covenants or agreements, or the breach of
any of its representations and warranties, contained in this First
Amendment,
c. the occurrence of any Default or Event of Default under the Credit
Agreement or any other Loan Document (other than the Acknowledged
Defaults) with respect to any of the Borrowers or the Guarantors, and
d. the date on which each of the Acknowledged Defaults is cured to the
satisfaction of the Lender."
5. The Lender, Borrowers and Guarantors hereby agree to amend the
Forbearance Agreement by adding a new Section 16 following the existing
----------
Section 15 thereof as follows:
- ----------
"16. Borrowers and Guarantors shall deliver or cause to be delivered the
following items by not later than November 29, 1996:
a. Certain Financial Information.
-----------------------------
(1) Borrowers shall deliver to the Lender monthly financial
statement projections (including balance sheets, income
statements and statements of cash flow) for each of the Borrowers
(individually) and for all Borrowers (on a combined basis) for
the period beginning August 1, 1996 through July 31, 1997. Such
financial projections shall assume that the intercompany
transactions describe in Section 5.a. of the Forbearance
------------
Agreement have occurred.
(2) Borrowers shall cause Wexford to deliver to the Lender copies
of Wexford's most recent internal financial statements
(including balance sheet, income statement and statement of
changes in cash flow).
b. Engineering Report. Borrowers shall deliver to the Lender an
------------------
Engineering Report, prepared by Lee Keeling and Associates, Inc. or
such other independent engineering firm as may be acceptable to the
Lender, pertaining to the Mortgaged Properties, and estimating the
amount of
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
October 15, 1996
Page 4
the Proven Reserves attributable thereto as of July 31, 1996.
c. Payment of Transaction Costs. Borrowers shall reimburse the Lender
----------------------------
for its out-of-pocket expenses (including but not limited to the
costs and expenses of in-house and outside legal counsel, costs
associated with the granting and perfection of security interests and
travel costs) incurred by the Lender in connection with the
negotiation, documentation and implementation of this First
Amendment and of the Forbearance Agreement, including without
limitation the October 7, 1996, statement of Mayer, Brown & Platt
in the amount of $52,998.75.
d. Internal Authorizations, etc. Ridgepointe Mining Company, a
-----------------------------
Delaware corporation, and LaTex Resources International, Inc., a
_________ corporation, shall each receive all required management,
board of directors or shareholder approvals to the effectiveness of
the terms and conditions of the documents contemplated by the
Forbearance Agreement, and the Lender shall receive satisfactory
Secretary's Certificates and certificates of good standing for
each such corporation from the Secretary of State of the
respective state of its incorporation and for each state where real
Property owned by such corporation is located."
6. Except as expressly set forth herein, the terms and provisions of the
Credit Agreement and the other Loan Documents, including the Forbearance
Agreement, shall remain in full force and effect and in all other respects are
hereby ratified and confirmed.
7. In order to induce the Lender to enter into this First Amendment and to
amend the Forbearance Agreement extending the Forbearance Period, each of the
Borrowers hereby represents and warrants that (i) no Default or Event of Default
exists under the Credit Agreement other than as described in the Forbearance
Agreement, (ii) all representations and warranties contained in the Credit
Agreement are true, correct and complete in all material respects on and as of
the date hereof except to the extent such representations and warranties
specifically relate to an earlier date, in which case they were true, correct
and complete on and as of such earlier date, and (iii) except as described in
clause (i),
- -----------
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
October 15, 1996
Page 5
each of the Borrowers has performed all agreements and covenants to be performed
on its part as set forth herein or in the Credit Agreement.
8. In order to induce the Lender to enter into this First Amendment and to
grant the Forbearance, each of the Guarantors hereby joins in this First
Amendment for the purposes of consenting and agreeing to the terms and
conditions of this First Amendment and hereby represents and warrants that (i)
no Default or Event of Default exists under the Credit Agreement other than as
described in the Forbearance Agreement, (ii) all representations and
warranties contained in the Credit Agreement are true, correct and complete in
all material respects on and as of the date hereof except to the extent such
representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete on and as of such earlier date,
and (iii) except as described in clause (i), each of the Borrowers has
----------
performed all agreements and covenants to be performed on its part as set forth
herein or in the Credit Agreement.
9. This First Amendment constitutes the only agreement among Borrowers,
Guarantors and the Lender concerning the subject matter hereof and supersedes
any prior or contemporaneous representations or agreements not contained herein
concerning the subject matter of this First Amendment. This First Amendment
shall be binding upon the parties hereto, their respective successors and
assigns.
10. The validity of this First Amendment and the construction,
interpretation and enforcement hereof and the rights of the parties hereunder
shall be determined under, governed by and construed in accordance with the laws
of the State of Illinois. The parties agree that all actions or proceedings
arising under or in connection with this First Amendment shall be tried and
litigated in the state and federal courts located in the County of Cook, State
of Illinois. THE BORROWERS, GUARANTORS AND THE LENDER WAIVE ANY RIGHT TO A
TRIAL BY JURY AND ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE FORUM NON
----- ---
CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
- ----------
CONNECTION WITH THIS FIRST AMENDMENT.
11. Each of the parties further agrees with and acknowledges to the other
that it (i) has read and understands the provisions of this First Amendment;
(ii) has consulted with legal counsel who has read and reviewed this First
Amendment; (iii) understands the
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
October 15, 1996
Page 6
rights and remedies that each party is receiving, waiving and/or forbearing from
hereto; and (iv) has made the agreement set forth herein knowingly, voluntarily
and intentionally.
12. UNLESS EACH OF BORROWERS AND GUARANTORS EXECUTES AND RETURNS TO LENDER
A COUNTERPART OF THIS LETTER ON OR BEFORE NOVEMBER 13, 1996, THE OFFER TO AMEND
THE FORBEARANCE AGREEMENT CONTAINED IN THIS LETTER SHALL LAPSE AND BECOME VOID.
If the foregoing summarizes the terms of our binding agreement,
please sign this letter in the space provided below and return one copy to the
undersigned at your earliest convenience.
Very truly yours,
BANK OF AMERICA NATIONAL
TRUST AND SAVINGS ASSOCIATION
By /s/ [ILLEGIBLE SIGNATURE]
-----------------------------------
Its Vice President
----------------------------------
CONSENTED AND AGREED TO
on _____, 1996
BORROWERS:
LATEX PETROLEUM CORPORATION,
an Oklahoma corporation
By /s/ [ILLEGIBLE SIGNATURE]
--------------------------
Its
--------------------------
LATEX/GOC ACQUISITION, INC.,
a Delaware corporation
By /s/ [ILLEGIBLE SIGNATURE]
--------------------------
Its
--------------------------
<PAGE>
LaTex Petroleum Corporation
LaTex/GOC Acquisition, Inc.
Germany Oil Company
October 15, 1996
Page 7
GERMANY OIL COMPANY,
a Delaware corporation
(f/k/a LRI Acquisition, Inc.)
GUARANTORS:
LATEX RESOURCES, INC.,
a Delaware corporation
By /s/ [ILLEGIBLE SIGNATURE]
--------------------------
Its
--------------------------
ENPRO, INC.,
a Texas corporation
By /s/ [ILLEGIBLE SIGNATURE]
--------------------------
Its
--------------------------
<PAGE>
EXHIBIT 23.1
[LETTERHEAD OF BRISCOE & BURKE
CERTIFIED PUBLIC ACCOUNTANTS APPEARS HERE]
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
We consent to the incorporation by reference in the registration statement of
LaTex Resources, Inc. (the "Company") on Form S-8 of our report dated November
6,1996, on our audits of the consolidated financial statements of the Company
for the years ending July 31, 1996, 1995, and 1994, respectively, which report
is included in the Company's Annual Report on Form 10-K for the fiscal year
ended July 31, 1996.
/s/ Briscoe & Burke
----------------------------
BRISCOE & BURKE
Certified Public Accountants
November 6, 1996
Tulsa, Oklahoma
<PAGE>
EXHIBIT 23.2
[LETTERHEAD OF LEE KEELING AND ASSOCIATES, INC.
PETROLEUM CONSULTANTS APPEARS HERE]
CONSENT OF INDEPENDENT PETROLEUM ENGINEERS AND GEOLOGISTS
---------------------------------------------------------
We hereby consent to the inclusion of our oil and gas reserve report for
the oil and gas reserves of LaTex Resources, Inc. (the "Company") as of July 31,
1996, and to all references to our firm included or made as part of the
Company's Annual Report on Form 10-K for the fiscal year ended July 31,1996.
LEE KEELING AND ASSOCIATES, INC.
By:/s/ Kenneth Renberg
-------------------------------------
Kenneth Renberg Vice President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-START> AUG-01-1995
<PERIOD-END> JUL-31-1996
<CASH> 19,337
<SECURITIES> 0
<RECEIVABLES> 3,840,129
<ALLOWANCES> 0
<INVENTORY> 175,493
<CURRENT-ASSETS> 4,227,338
<PP&E> 41,264,573
<DEPRECIATION> 10,173,524
<TOTAL-ASSETS> 38,966,076
<CURRENT-LIABILITIES> 32,647,629
<BONDS> 0
0
9,296,801
<COMMON> 191,240
<OTHER-SE> (3,169,594)
<TOTAL-LIABILITY-AND-EQUITY> 38,966,076
<SALES> 0
<TOTAL-REVENUES> 13,531,163
<CGS> 0
<TOTAL-COSTS> 17,926,639
<OTHER-EXPENSES> 1,614,767
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,410,158
<INCOME-PRETAX> (8,420,401)
<INCOME-TAX> 0
<INCOME-CONTINUING> (8,420,401)
<DISCONTINUED> (1,810,382)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,801,401)
<EPS-PRIMARY> (.60)
<EPS-DILUTED> 0
</TABLE>
<PAGE>
EXHIBIT 99.8
APPRAISAL
---------
LATEX RESOURCES, INC.
---------------------
CONSTANT PRICES AND EXPENSES
----------------------------
INDEX
-----
VOLUME I Number
- -------- ------
LETTER
SCHEDULES
Summary Forecast of Production, Income and Net Revenue
Discounted at 10 Per Cent 1
Maximum to Minimum by Discounted Future Net Revenue
All Reserve Classifications 2
Alphabetical One-Line Summary of Valuation and Reserves 3
Field Summary - Alphabetical One-Line by State, Field and Lease 4
VOLUME II
- ---------
Individual Lease Forecasts and Production Decline Curves
(Alabama through Louisiana)
VOLUME III
- ----------
Individual Lease Forecasts and Production Decline Curves
(Mississippi through Wyoming)
<PAGE>
EXHIBIT 99.8
[LETTERHEAD OF LEE KEELING AND ASSOCIATES, INC.
OCTOBER 30, 1996
LaTex Resources, Inc.
4200 East Skelly Drive, Suite 1000
Tulsa, Oklahoma 74135
Attention: Mr. John Heinsius
Re: Appraisal
LaTex Resources, Inc.
Constant Prices and Expenses
Gentlemen:
In accordance with your request, we have prepared an appraisal of interests
owned by LaTex Resources, Inc. in leases located in the states of Alabama,
Arkansas, Colorado, Kansas, Louisiana, Mississippi, Montana, New Mexico, North
Dakota, Oklahoma, South Dakota, Texas and Wyoming. The effective date of the
appraisal is July 31, 1996, and the results are summarized as follows:
<TABLE>
<CAPTION>
ESTIMATED REMAINING
NET RESERVES FUTURE NET REVENUE
-------------------------------------------- ---------------------------------------------------------
RESERVE Oil Gas Present Worth
CLASSIFICATION (Barrels) (MCF) Total Discounted@10%
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Proved Developed
- ----------------
Producing 4,044,500 21,298,173 $ 69,045,697 $ 40,342,926
Non-Producing 135,845 678,608 2,142,554 1,555,936
Behind-Pipe 772,602 5,780,221 22,769,430 9,641,913
Proved Undeveloped
- ------------------
Primary 1,400,141 415,101 7,846,341 1,958,650
--------- ---------- -------------- -------------
Total Proved Reserves 6,353,088 28,172,103 $ 101,804,022 $ 53,499,425
Probable Undeveloped
- --------------------
Primary 0 576,125 $ 965,587 $ 332,589
Probable Developed
- ------------------
Primary 954,746 594,956 5,340,714 1,256,712
--------- ---------- -------------- -------------
Total Probable Reserves 954,746 1,117,082 $ 6,306,301 $ 1,589,281
Possible Undeveloped
- --------------------
Primary 0 2,017,736 $ 3,957,841 $ 1,084,345
Possible Undeveloped
- --------------------
Primary 246,864 0 3,219,947 1,484,127
--------- ---------- -------------- -------------
Total Possible Reserves 246,864 2,017,736 $ 7,177,788 $ 2,568,472
TOTAL ALL RESERVES 7,554,698 31,360,921 $ 115,288,111 $ 57,657,178
</TABLE>
Note: Totals may not agree due to computer round off.
<PAGE>
EXHIBIT 99.8
Future net revenue is the amount, exclusive of state and federal income taxes,
which will accrue to the appraised interests from continued operation of the
properties to depletion. It should not be construed as a fair market or trading
value. No provision has been made for the cost of plugging and abandoning the
properties nor for the value of salvable equipment.
No attempt has been made to quantify or otherwise account for any accumulative
gas production imbalances that may exist. Neither has an attempt been made to
determine whether the wells and facilities are in compliance with various
governmental regulations, nor have costs been included in the event they are
not.
This report consists of three volumes. Volume 1 includes various summaries.
These include summary forecasts of annual gross and net production, severance
and ad valorem taxes, operating income and net revenue by reserve type on
Schedule No. 1. Schedule No, 2 is a sequential listing of the individual
properties based on discounted future net revenue. An alphabetical one-line
summary by property is reflected on Schedule No. 3. A geographical one-line
summary by state and field is shown on Schedule No. 4. Volumes II and III
include individual lease forecasts and production decline curves.
CLASSIFICATION OF RESERVES
- --------------------------
Reserves attributed to the appraised leases have been classified "proved
developed producing," "proved developed non-producing," "proved developed
behind-pipe," "proved undeveloped primary," "probable developed primary,"
"probable undeveloped primary," "possible developed primary," and "possible
undeveloped primary."
Proved Developed Producing Reserves are those reserves expected to be recovered
- -----------------------------------
from currently producing zones under continuation of present operating methods.
This category may also include recently completed shut-in gas wells schedule for
connection to a pipeline in the near future.
Proved Developed Non-Producing Reserves are those reserves expected to be
- ---------------------------------------
recovered from zones capable of producing but which are shut-in because no
market outlet exists at the present time or whose date of connection to a
pipeline is uncertain.
Proved Developed Behind-Pipe Reserves are those reserves currently behind the
- -------------------------------------
pipe in existing wells which are considered proved by virtue of successful
testing or production in offsetting wells.
Proved Undeveloped Primary Reserves are those reserves attributable to wells to
- -----------------------------------
be drilled at locations which can be considered proved by virtue of favorable
structural position and which can be anticipated with a high degree of
certainty.
Probable Developed Primary Reserves are those reserves anticipated from zones
- -----------------------------------
behind the pipe in existing wells which exhibit favorable reservoir
characteristics based on core and/or log analyses but which have not been
physically tested or are not producing in offsetting wells. These reserves are
somewhat speculative.
Probable Undeveloped Primary Reserves are those reserves anticipated from wells
- -------------------------------------
to be drilled at locations that must be considered somewhat speculative because
of limited geologic control.
Possible Developed Primary Reserves are those reserves based on criteria similar
- -----------------------------------
to those discussed under "probable developed primary" reserves but which must be
considered more speculative.
Possible Undeveloped Primary Reserves are those reserves anticipated from wells
- -------------------------------------
to be drilled on structures with limited development whose productive limits
have not be delineated. These reserves must be considered quite speculative.
2
<PAGE>
EXHIBIT 99.8
ESTIMATION OF RESERVES
- ----------------------
The majority of the appraised wells have been producing for a considerable
length of time. Reserves attributable to wells with a well-defined production
and/or pressure decline trend were based upon extrapolation of that trend to an
economic limit and/or abandonment pressure.
Reserves anticipated from new wells or undeveloped locations were based upon
volumetric calculations or analogy with similar properties which are producing
from the same horizons in the respective areas. Structural position, net pay
thickness, well productivity, gas-oil ratios, water production, pressures, and
other pertinent factors were considered in the estimations of these reserves.
Reserves assigned to behind-pipe zones have been estimated based on volumetric
calculations and/or analogy with other wells in the area producing from the same
horizon.
FUTURE NET REVENUE
- ------------------
Oil Income
- ----------
In accordance with your request, income from the sale of oil was estimated using
a base price of $19.74 per barrel for each lease. Historical differences between
the price received at each property and the West Texas Intermediate posted price
were calculated. This differential was applied to the base price for each lease.
This price was held constant throughout the life of each lease. Adjustments were
made for state severance and ad valorem taxes where applicable.
Gas Income
- ----------
As requested, income from the sale of gas was based upon an initial Henry Hub
price of $2.66 per MMBTU. Historical differences between the price received at
each property and the Henry Hub prices were calculated. This differential, which
includes any BTU adjustment applicable, was applied to the initial Henry Hub
price for each lease. These prices were held constant throughout the life of
each lease. Adjustments were made for state severance and ad valorem taxes where
applicable.
Operating Expenses
- ------------------
Operating expenses were based upon actual operating costs charged by the
respective operators as supplied by the staff of LaTex Resources, Inc. or were
based upon the actual experience of the operators in the respective areas. These
expenses have been held constant throughout the life of each lease.
GENERAL
- -------
Information upon which this appraisal has been based was furnished by the staff
of LaTex Resources, Inc. or was obtained by us from outside sources we consider
to be reliable. This information is assumed to be correct. No attempt has been
made to verify title or ownership of the appraised properties.
Leases were not inspected by a representative of this firm, nor were the wells
tested under our supervision; however, the performance of the majority of the
wells was discussed with employees of LaTex Resources, Inc.
This report has been prepared utilizing methods and procedures regularly used by
petroleum engineers to estimate oil and gas reserves for properties of this type
and character. The recovery of oil and gas reserves and projection of producing
rates are dependent upon many variable factors including prudent operation,
compression of gas when needed, market demand, installation of lifting
equipment, and remedial work when required.
3
<PAGE>
EXHIBIT 99.8
------------
The reserves included in this report have been based upon the assumption that
the wells will continue to be operated in a prudent manner under the same
conditions existing at the present time. Actual production results and future
well data may yield additional facts, not presently available to us, which will
require an adjustment to our estimates.
The reserves included in this report are estimates only and should not be
construed as being exact quantities. They may or may not be actually recovered,
and, if recovered, the revenues therefrom and the actual costs related thereto
could be more or less than the estimated amounts. As in all aspects of oil and
gas evaluation, there are uncertainties inherent in the interpretation of
engineering data and, therefore, our conclusions necessarily represent only
informed professional judgments.
State regulatory authorities could, in the future, change the allocation of
reserves allowed to be produced from a particular well any reservoir, thereby
altering the material premise upon which our reserve estimate may be based.
Graphs showing past production and estimated future performance of the
individual properties precede the respective cash flow projections. Estimates of
future performance shown on the graphs were made prior to the economic
determinations. These forecasts may extend beyond the calculated economic limits
reflected by the cash flow projections.
The projection of cash flow has been made assuming constant prices. There is no
assurance that prices will not vary. For this reason and those listed in the
previous paragraph, the future net cash from the sale of production from the
appraised properties may vary from the estimates contained in this report.
The information developed during the course of this investigation, basic data,
maps and worksheets showing recovery determinations are available for inspection
in our office.
This report is to be used only in its entirety. Individual cash flow projections
are not to be distributed unless accompanied by this letter.
We appreciate this opportunity to be of service to you.
Very truly yours,
/s/ Lee Keeling and Associates, Inc.
LEE KEELING AND ASSOCIATES, INC.
4
<PAGE>
G R A N D T O T A L
S U M M A R Y F O R RESERVE: *ALL*
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 97.417 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 57657.188
GROSS WELLS 322.000 305.000 15.00 46302.668
GROSS CUM. MB & MMF 296900.506 1587329.880 20.00 38750.383
GROSS RES. MB & MMF 87356.607 584245.442 25.00 33384.419
GROSS ULT. MB & MMF 384257.114 2171575.322 30.00 29387.683
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING
OIL GAS OIL GAS REVENUE TAX EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 3551.106 26760.200 152.074 1246.563 6043.163 582.336 1226.920
1997 8009.717 61141.062 457.885 3315.343 16814.461 1681.188 3271.108
1998 7230.764 55036.903 552.912 3182.072 17831.017 1853.791 3501.443
1999 6151.462 45746.890 559.957 2678.562 16413.860 1768.569 3644.171
2000 5458.129 40072.777 504.802 2378.750 14707.504 1597.690 3601.006
2001 4878.192 34658.773 453.817 1968.570 12699.736 1400.126 3322.096
2002 4387.344 29398.392 426.496 1611.082 11261.133 1263.006 3198.291
2003 3964.538 25768.029 395.591 1400.770 10145.428 1152.879 3075.506
2004 3607.117 23094.831 378.437 1334.443 9676.507 1114.129 2982.389
2005 3267.367 21450.407 352.300 1395.714 9398.610 1104.071 2865.149
SUB 50505.736 363128.264 4234.272 20511.870 124991.419 13517.785 30688.079
REM 36850.899 221117.210 3320.426 10849.051 83908.341 9700.045 28529.666
TOT 87356.635 584245.474 7554.698 31360.921 208899.760 23217.830 59217.745
<CAPTION>
FUTURE FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- --(M$)-- --($/BBL)-- --($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 235.565 3998.352 3998.352 3919.699 17.951 2.658
1997 3957.103 7905.082 11903.434 7246.199 17.478 2.658
1998 4284.807 8190.980 20094.414 6808.231 17.007 2.649
1999 2100.000 8901.141 28995.555 6716.852 16.656 2.646
2000 120.834 9387.968 38383.523 6470.531 16.657 2.648
2001 6.859 7970.654 46354.177 4998.113 16.506 2.646
2002 35.000 6764.857 53119.034 3854.275 16.411 2.645
2003 35.120 5881.930 59000.964 3045.814 16.270 2.648
2004 50.249 5529.757 64530.721 2601.294 16.222 2.651
2005 58.728 5370.670 69901.391 2298.307 16.096 2.671
SUB 10884.265 69901.391 69901.391 47959.315 16.675 2.651
REM 291.897 45386.720 115288.111 9697.863 16.544 2.671
TOT 11176.162 115288.111 115288.111 57657.178 16.617 2.658
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
G R A N D T O T A L
SUMMARY FOR ALL PROVED*
LLE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL (ALL PROVED RESERVES)
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 97.417 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ ---------
--------- -------------
<S> <C> <C> <C> <C>
10.00 53499.435
GROSS WELLS 309.000 275.000 15.00 43796.962
GROSS CUM. MB & MMF 296900.506 1587329.880 20.00 37211.804
GROSS RES. MB & MMF 85502.785 567113.192 25.00 32444.073
GROSS ULT. MB & MMF 382403.291 2154443.072 30.00 28838.616
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING FUTURE FUTURE NET CUM. NET PRESENT WT
OIL GAS OIL GAS REVENUE TAX EXPENSE EXPENSE REVENUE REVENUE @10%
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3551.106 26760.200 152.074 1246.563 6043.163 582.336 1226.920 235.565 3998.352 3998.352 3919.699
1997 7936.059 60306.802 452.922 3257.747 16562.303 1654.642 3258.181 3672.950 7976.549 11974.901 7315.031
1998 7053.647 52976.447 515.270 3043.423 16785.428 1748.500 3426.571 2295.308 9315.052 21289.953 7726.082
1999 5952.113 44094.895 450.961 2567.507 14401.998 1521.837 3424.639 0.000 9455.539 30745.492 7174.673
2000 5318.907 38601.155 417.437 2214.145 12887.074 1370.388 3347.583 91.300 8077.794 38823.286 5567.456
2001 4767.589 33486.448 377.402 1836.418 11140.391 1205.656 3067.883 6.859 6859.988 45683.274 4301.928
2002 4288.919 28471.258 354.453 1507.675 9854.743 1086.280 2944.078 35.000 5789.403 51472.677 3298.523
2003 3873.746 24990.894 327.179 1296.442 8799.454 980.668 2814.938 19.514 4984.340 56457.017 2581.550
2004 3521.904 22238.838 313.312 1177.786 8246.771 924.944 2707.634 38.369 4575.838 61032.855 2153.063
2005 3186.666 20571.093 290.199 1222.426 7974.956 912.315 2582.842 53.477 4426.324 65459.179 1894.441
SUB 49450.656 352498.030 3651.207 19370.131 112696.281 11987.566 28801.269 6448.342 65459.179 65459.179 45932.446
REM 36052.153 214615.191 2701.881 8801.972 68869.457 7599.575 24754.642 170.385 36344.843 36344.843 7566.979
TOT 85502.809 567113.221 6353.088 28172.103 181565.738 19587.141 53555.911 6618.727 101804.022 101804.022 53499.425
<CAPTION>
AVG. OIL AVG. GAS
PRICE PRICE
-($/BBL)-- -($/MCF)--
<S> <C> <C>
1996 17.951 2.658
1997 17.453 2.658
1998 16.940 2.647
1999 16.880 2.644
2000 16.838 2.646
2001 16.654 2.644
2002 16.560 2.643
2003 16.413 2.645
2004 16.371 2.647
2005 16.237 2.669
SUB 16.808 2.650
REM 16.861 2.649
TOT 16.831 2.649
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: A-PROVED DEVE PRODUCING
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 97.417 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- -----------
<S> <C> <C> <C> <C>
10.00 40342.927
GROSS WELLS 268.000 230.000 15.00 34185.546
GROSS CUM. MB & MMF 296449.548 1559840.583 20.00 29885.031
GROSS RES. MB & MMF 81637.283 536751.954 25.00 26691.592
GROSS ULT. MB & MMF 378086.831 2096592.537 30.00 24217.745
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING
OIL GAS OIL GAS REVENUE TAX EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 3545.386 26664.602 147.598 1208.493 5850.784 560.015 1194.551
1997 7670.945 56839.740 352.393 2604.516 13077.036 1282.891 2825.133
1998 6676.158 49184.863 324.724 2268.744 11611.508 1158.182 2793.659
1999 5652.574 40763.852 298.074 1903.540 10141.527 1030.906 2752.974
2000 5058.791 35840.416 273.323 1652.114 9018.723 926.685 2670.486
2001 4543.739 31230.624 249.320 1400.663 7911.184 822.345 2527.883
2002 4079.628 26638.102 229.856 1155.227 6905.585 731.766 2418.382
2003 3683.752 23447.205 212.319 991.673 6154.397 661.591 2290.014
2004 3336.662 20833.742 197.919 865.275 5559.513 605.629 2177.816
2005 3018.195 18343.009 184.724 751.736 5024.172 552.319 2054.317
SUB 47265.830 329786.155 2470.251 14801.983 81254.429 8332.329 23705.215
REM 34371.483 206965.831 1574.249 6496.190 44193.527 4753.225 19596.531
TOT 81637.313 536751.986 4044.500 21298.173 125447.956 13085.554 43301.746
<CAPTION>
FUTURE FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 15.000 4081.225 4081.225 4002.116 17.899 2.655
1997 0.000 8969.027 13050.252 8232.288 17.597 2.640
1998 0.000 7659.668 20709.920 6391.463 17.427 2.624
1999 0.000 6357.663 27067.583 4822.733 17.302 2.618
2000 0.000 5421.548 32489.131 3738.523 17.167 2.619
2001 0.000 4560.948 37050.079 2860.375 17.013 2.620
2002 0.000 3755.451 40805.530 2140.464 16.878 2.620
2003 0.000 3202.793 44008.323 1659.193 16.737 2.623
2004 0.000 2776.081 46784.404 1307.318 16.623 2.623
2005 0.000 2417.535 49201.939 1034.909 16.519 2.624
SUB 15.000 49201.939 49201.939 36189.382 17.151 2.627
REM 0.000 19843.758 69045.697 4153.544 17.202 2.634
TOT 15.000 69045.697 69045.697 40342.926 17.171 2.629
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: B1-PROVED NON-PRODUCING
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 17.667 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 1555.938
GROSS WELLS 3.000 14.000 15.00 1372.004
GROSS CUM. MB & MMF 450.958 27489.297 20.00 1229.112
GROSS RES. MB & MMF 590.925 8493.528 25.00 1114.898
GROSS ULT. MB & MMF 1041.883 35982.825 30.00 1021.456
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV
OIL GAS OIL GAS REVENUE TAX
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C>
1996 3.078 34.766 2.361 17.424 95.173 9.218
1997 91.498 1661.515 20.579 178.157 905.330 76.264
1998 80.426 1381.037 17.895 135.880 735.208 64.490
1999 70.563 1150.811 15.551 104.822 602.739 54.888
2000 61.996 956.329 13.579 80.381 496.001 46.491
2001 50.222 766.060 8.457 38.295 280.014 28.964
2002 44.238 634.633 7.454 30.223 237.599 25.047
2003 39.327 520.180 6.857 23.916 208.018 21.860
2004 34.978 432.866 6.312 19.758 185.201 19.534
2005 31.124 362.135 5.812 16.309 165.277 17.502
SUB 507.450 7900.332 104.857 645.165 3910.560 364.258
REM 83.473 593.196 30.987 33.443 730.227 81.939
TOT 590.923 8493.528 135.845 678.608 4640.787 446.197
<CAPTION>
OPERATING FUTURE FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
EXPENSE EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C> <C>
1996 25.699 27.697 32.562 32.562 31.222 20.077 2.742
1997 254.587 34.939 539.543 572.105 494.554 19.917 2.781
1998 255.009 0.000 415.712 987.817 347.350 19.966 2.781
1999 255.009 0.000 292.842 1280.659 222.494 20.011 2.781
2000 251.599 0.000 197.911 1478.570 136.758 20.055 2.783
2001 110.523 0.000 140.529 1619.099 88.118 20.465 2.792
2002 96.219 0.000 116.336 1735.435 66.317 20.523 2.800
2003 90.404 0.000 95.754 1831.189 49.624 20.526 2.812
2004 87.769 0.000 77.896 1909.085 36.705 20.529 2.816
2005 85.689 0.000 62.084 1971.169 26.601 20.532 2.817
SUB 1512.507 62.636 1971.169 1971.169 1499.743 20.159 2.785
REM 476.902 0.000 171.385 2142.554 56.193 20.569 2.776
TOT 1989.409 62.636 2142.554 2142.554 1555.936 20.252 2.785
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: B2-PROVED BEHIND-PIPE
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 60.833 DISC% 10.000
P.W. % P.W., M$
OIL GAS ------ --------
------------ -------------
<S> <C> <C> <C> <C>
10.00 9641.922
GROSS WELLS 19.000 27.000 15.00 7478.104
GROSS CUM. MB & MMF 0.000 0.000 20.00 6074.575
GROSS RES. MB & MMF 1308.809 17011.566 25.00 5091.398
GROSS ULT. MB & MMF 1308.809 17011.566 30.00 4366.460
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING FUTURE FUTURE NET
OIL GAS OIL GAS REVENUE TAX EXPENSE EXPENSE REVENUE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.642 60.832 2.114 20.646 97.206 13.103 6.670 159.868 -82.435
1997 69.180 1299.078 31.662 436.075 1715.775 189.333 93.827 450.011 982.609
1998 84.514 1587.482 49.666 568.965 2385.029 252.656 116.870 64.826 1950.675
1999 66.051 1353.442 38.471 487.420 1961.263 212.890 125.677 0.000 1622.697
2000 69.824 1144.787 43.426 424.427 1901.519 201.884 134.519 91.300 1473.808
2001 59.931 963.509 37.037 351.807 1585.683 170.747 138.498 6.859 1269.580
2002 59.966 778.670 38.172 285.803 1432.608 155.266 138.498 35.000 1103.845
2003 51.522 688.546 32.257 251.794 1230.156 131.211 143.541 19.514 935.892
2004 55.747 704.992 36.303 269.570 1358.454 141.109 151.070 38.369 1027.903
2005 46.775 1652.744 29.659 435.885 1698.522 190.495 151.857 53.477 1302.696
SUB 566.152 10234.082 338.769 3532.392 15366.215 1658.694 1201.027 919.224 11587.270
REM 742.650 6777.485 433.833 2247.829 14174.614 1348.236 1473.821 170.385 11182.160
TOT 1308.802 17011.567 772.602 5780.221 29540.829 3006.930 2674.848 1089.609 22769.430
<CAPTION>
CUM. NET PRESENT WT AVG. OIL AVG. GAS
REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C>
1996 -82.435 -81.671 19.200 2.742
1997 900.174 889.027 16.851 2.711
1998 2850.849 1625.450 17.006 2.707
1999 4473.546 1231.811 16.584 2.715
2000 5947.354 1013.478 17.172 2.723
2001 7216.934 796.462 16.969 2.721
2002 8320.779 628.242 17.163 2.720
2003 9256.671 484.458 16.924 2.717
2004 10284.574 482.403 17.285 2.712
2005 11587.270 557.369 16.975 2.742
SUB 11587.270 7627.029 17.011 2.719
REM 22769.430 2014.884 18.747 2.688
TOT 22769.430 9641.913 17.986 2.707
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBLECT TO QUALIFICATIONS OF REPORTS.
<PAGE>
S U M M A R Y F O R RESERVE: C-PROVED UNDEVE PRIMARY
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 21.917 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 1958.648
GROSS WELLS 19.000 4.000 15.00 761.308
GROSS CUM. MB & MMF 0.000 0.000 20.00 24.086
GROSS RES. MB & MMF 1965.768 4856.144 25.00 -450.815
GROSS ULT. MB & MMF 1965.768 4856.144 30.00 -767.045
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING FUTURE
OIL GAS OIL GAS REVENUE TAX EXPENSE EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 33.000
1997 104.436 506.469 48.287 38.998 864.162 106.154 84.634 3188.000
1998 212.549 823.065 122.985 69.834 2053.683 273.172 261.033 2230.482
1999 162.925 826.790 98.864 71.725 1696.469 223.153 290.979 0.000
2000 128.296 659.623 87.109 57.223 1470.831 195.328 290.979 0.000
2001 113.697 526.255 82.587 45.653 1363.510 183.600 290.979 0.000
2002 105.087 419.853 78.970 36.422 1278.951 174.201 290.979 0.000
2003 99.145 334.963 75.745 29.058 1206.883 166.006 290.979 0.000
2004 94.517 267.238 72.778 23.183 1143.603 158.672 290.979 0.000
2005 90.572 213.205 70.004 18.496 1086.985 151.999 290.979 0.000
SUB 1111.224 4577.461 737.330 390.592 12165.077 1632.285 2382.520 5451.482
REM 854.547 278.679 662.811 24.509 9771.089 1416.175 3207.388 0.000
TOT 1965.771 4856.140 1400.141 415.101 21936.166 3048.460 5589.908 5451.482
<CAPTION>
FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C>
1996 -33.000 -33.000 -31.968 0.000 0.000
1997 -2514.630 -2547.630 -2300.838 15.748 2.660
1998 -711.003 -3258.633 -638.181 15.188 2.660
1999 1182.337 -2076.296 897.635 15.230 2.660
2000 984.527 -1091.769 678.697 15.138 2.660
2001 888.931 -202.838 556.973 15.040 2.660
2002 813.771 610.933 463.500 14.969 2.660
2003 749.901 1360.834 388.275 14.913 2.660
2004 693.958 2054.792 326.637 14.866 2.660
2005 644.009 2698.801 275.562 14.825 2.660
SUB 2698.801 2698.801 616.292 15.090 2.660
REM 5147.540 7846.341 1342.358 14.644 2.660
TOT 7846.341 7846.341 1958.650 14.878 2.660
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
G R A N D T O T A L
S U M M A R Y F O R ALL PROBABLE*
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL (ALL PROBABLE RESERVES)
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 57.500 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------- --------
---------- ----------
<S> <C> <C> <C>
10.00 1589.283
GROSS WELLS 0.000 4.000 15.00 762.047
GROSS CUM. MB & MMF 0.000 0.000 20.00 285.738
GROSS RES. MB & MMF 0.000 1747.268 25.00 0.297
GROSS ULT. MB & MMF 0.000 1747.268 30.00 -174.848
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING
OIL GAS OIL GAS REVENUE TAX EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 73.658 721.363 4.964 48.718 227.575 22.760 11.700
1998 156.466 1849.069 21.841 122.193 687.084 79.430 51.350
1999 166.771 1488.903 84.069 98.377 1483.567 211.676 181.200
2000 109.902 1301.768 64.931 123.365 1264.873 183.417 215.091
2001 84.215 1038.329 56.224 98.328 1068.322 156.355 215.881
2002 74.676 821.239 53.872 75.630 971.738 143.543 215.881
2003 69.418 693.300 52.057 81.490 960.682 143.255 222.236
2004 65.976 625.233 50.406 97.446 979.673 147.215 233.249
2005 63.388 510.846 48.853 80.375 911.749 137.529 234.760
SUB 864.470 9050.050 437.216 825.923 8555.263 1225.180 1581.348
REM 666.728 1686.949 517.530 345.158 8327.047 1278.132 2538.898
TOT 1531.198 10736.999 954.746 1171.082 16882.310 2503.312 4120.246
<CAPTION>
FUTURE FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 280.491 -87.375 -87.375 -82.991 19.740 2.660
1998 1527.499 -971.195 -1058.570 -783.135 16.577 2.660
1999 2100.000 -1009.306 -2067.876 -802.793 14.534 2.660
2000 19.534 846.834 -1221.042 583.956 14.420 2.664
2001 0.000 696.088 -524.954 436.343 14.343 2.664
2002 0.000 612.316 87.362 348.842 14.299 2.663
2003 15.606 579.586 1262.768 299.543 14.278 2.668
2004 3.391 595.820 1262.768 280.459 14.268 2.673
2005 0.000 539.466 1802.234 230.898 14.264 2.674
SUB 3946.521 1802.234 1802.234 511.122 14.533 2.665
REM 5.960 4504.067 6306.301 1078.159 14.260 2.774
TOT 3952.481 6306.301 6306.301 1589.281 14.385 2.688
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: E-PROBABLE DEVE PRIMARY
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 57.500 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------- --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 332.569
GROSS WELLS 0.000 4.000 15.00 236.791
GROSS CUM. MB & MMF 0.000 0.000 20.00 174.429
GROSS RES. MB & MMF 0.000 1747.268 25.00 131.727
GROSS ULT. MB & MMF 0.000 1747.268 30.00 101.571
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING
OIL GAS OIL GAS REVENUE TAX EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 113.905 0.000 44.878 119.825 18.454 8.691
2001 0.000 90.636 0.000 35.710 95.347 14.684 9.481
2002 0.000 65.160 0.000 25.673 68.547 10.557 9.481
2003 0.000 90.092 0.000 41.634 111.395 17.154 15.836
2004 0.000 143.984 0.000 65.648 175.879 27.085 26.849
2005 0.000 126.901 0.000 55.007 147.429 22.702 28.360
SUB 0.000 630.678 0.000 268.551 718.422 110.636 98.698
REM 0.000 1116.591 0.000 307.575 846.972 130.431 215.548
TOT 0.000 1747.269 0.000 576.125 1565.394 241.067 314.246
<CAPTION>
FUTURE FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000
2000 19.534 73.147 73.147 49.733 0.000 2.670
2001 0.000 71.182 144.329 44.699 0.000 2.670
2002 0.000 48.509 192.838 27.697 0.000 2.670
2003 15.606 62.798 255.636 31.961 0.000 2.676
2004 3.391 118.553 374.189 55.813 0.000 2.679
2005 0.000 96.366 470.555 41.302 0.000 2.680
SUB 38.531 470.555 470.555 251.205 0.000 2.675
REM 5.960 495.032 965.587 81.364 0.000 2.754
TOT 44.491 965.587 965.587 332.569 0.000 2.717
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: G-PROBABLE UNDEVE PRIMARY
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 22.917 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 1256.714
GROSS WELLS 12.000 11.000 15.00 525.256
GROSS CUM. MB & MMF 0.000 0.000 20.00 111.309
GROSS RES. MB & MMF 1531.195 8989.728 25.00 -131.430
GROSS ULT. MB & MMF 1531.195 8989.728 30.00 -276.419
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING
OIL GAS OIL GAS REVENUE TAX EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 73.658 721.363 4.964 48.718 227.575 22.760 11.700
1998 156.466 1849.069 21.841 122.193 687.084 79.430 51.350
1999 166.771 1488.903 84.069 98.377 1483.567 211.676 181.200
2000 109.902 1187.863 64.931 78.487 1145.048 164.963 206.400
2001 84.215 947.693 56.224 62.618 972.975 141.671 206.400
2002 74.676 756.079 53.872 49.957 903.191 132.986 206.400
2003 69.418 603.208 52.057 39.856 849.287 126.101 206.400
2004 65.976 481.249 50.406 31.798 803.794 120.130 206.400
2005 63.388 383.945 48.853 25.369 764.320 114.827 206.400
SUB 864.470 8419.372 437.216 557.373 7836.841 1114.544 1482.650
REM 666.728 570.358 517.530 37.583 7480.075 1147.701 2323.350
TOT 1531.198 8989.730 954.746 594.956 15316.916 2262.245 3806.000
<CAPTION>
FUTURE FUTURE NET CUM.NET PRESENT W T AVG. OIL AVG. GAS
EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 280.491 -87.375 -87.375 -82.991 19.740 2.660
1998 1527.499 -971.195 -1058.570 -783.135 16.577 2.660
1999 2100.000 -1009.306 -2067.876 -802.793 14.534 2.660
2000 0.000 773.687 -1294.189 534.223 14.420 2.660
2001 0.000 624.906 -669.283 391.644 14.343 2.660
2002 0.000 563.807 -105.476 321.145 14.299 2.660
2003 0.000 516.788 411.312 267.582 14.278 2.660
2004 0.000 477.267 888.579 224.646 14.268 2.660
2005 0.000 443.100 1331.679 189.596 14.264 2.660
SUB 3907.990 1331.679 1331.679 259.917 14.533 2.660
REM 0.000 4009.035 5340.714 996.795 14.260 2.660
TOT 3907.990 5340.714 5340.714 1256.712 14.385 2.660
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
G R A N D T O T A L
S U M M A R Y F O R ALL POSSIBLE*
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL (ALL POSSIBLE RESERVES)
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
LIFE YR 31.833 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
-------- -------- 10.00 2568.470
GROSS WELLS 1.000 15.000 15.00 1743.659
GROSS CUM. MB & MMF 0.000 0.000 20.00 1251.841
GROSS RES. MB & MMF 322.628 6395.254 25.00 937.049
GROSS ULT. MB & MMF 332.628 6395.254 30.00 723.915
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING FUTURE FUTURE NET CUM. NET PRESENT WT
OIL GAS OIL GAS REVENUE TAX EXPENSE EXPENSE REVENUE REVENUE @10%
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 112.897 0.000 8.879 24.583 3.786 1.227 3.662 15.908 15.908 14.159
1998 20.651 211.387 15.801 16.456 358.505 25.861 23.522 462.000 -152.877 -136.969 -134.716
1999 32.578 163.092 24.928 12.679 528.295 35.056 38.332 0.000 454.908 317.939 344.972
2000 29.320 169.854 22.435 41.240 555.557 43.885 38.332 10.000 463.340 781.279 319.119
2001 26.388 133.996 20.191 33.824 491.023 38.115 38.332 0.000 414.578 1195.857 259.842
2002 23.749 105.895 18.172 27.777 434.652 33.183 38.332 0.000 363.138 1558.995 206.910
2003 21.374 83.835 16.355 22.837 385.292 28.956 38.332 0.000 318.004 1876.999 164.721
2004 19.237 230.760 14.719 59.211 450.063 41.970 41.506 8.489 358.009 2235.098 167.772
2005 17.313 368.468 13.248 92.913 511.905 54.227 47.547 5.251 404.880 2639.978 172.968
SUB 190.610 1580.184 145.849 315.815 3739.875 305.039 305.462 489.402 2639.978 2639.978 1515.747
REM 132.018 4815.070 101.015 1701.921 6711.837 822.338 1236.126 115.552 4537.810 7177.788 1052.725
TOT 322.628 6395.254 246.864 2017.736 10451.712 1127.377 1541.588 604.954 7177.788 7177.788 2568.472
<CAPTION>
AVG. OIL AVG.GAS
PRICE PRICE
-($/BBL)-- -($/MCF)--
<S> <C> <C>
1996 0.000 0.000
1997 0.000 2.769
1998 19.760 2.812
1999 19.760 2.818
2000 19.760 2.722
2001 19.760 2.721
2002 19.760 2.721
2003 19.760 2.720
2004 19.760 2.689
2005 19.760 2.692
SUB 19.760 2.716
REM 19.760 2.771
TOT 19.760 2.762
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: J-POSSIBLE DEVE PRIMARY
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
LIFE YR 31.833 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 1084.344
GROSS WELLS 0.000 15.000 15.00 657.715
GROSS CUM. MB & MMF 0.000 0.000 20.00 430.785
GROSS RES. MB & MMF 0.000 6395.254 25.00 300.700
GROSS ULT. MB & MMF 0.000 6395.254 30.00 221.195
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING
OIL GAS OIL GAS REVENUE TAX EXPENSE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 112.897 0.000 8.879 24.583 3.786 1.227
1998 0.000 211.387 0.000 16.456 46.274 7.127 2.788
1999 0.000 163.092 0.000 12.679 35.727 5.502 2.788
2000 0.000 169.854 0.000 41.240 112.245 17.286 2.788
2001 0.000 133.996 0.000 33.824 92.043 14.176 2.788
2002 0.000 105.895 0.000 27.777 75.570 11.638 2.788
2003 0.000 83.835 0.000 22.837 62.118 9.566 2.788
2004 0.000 230.760 0.000 59.211 159.206 24.519 5.962
2005 0.000 368.468 0.000 92.913 250.134 38.521 12.003
SUB 0.000 1580.184 0.000 315.815 857.900 132.121 35.920
REM 0.000 4815.070 0.000 1701.921 4715.774 702.575 602.258
TOT 0.000 6395.254 0.000 2017.736 5573.674 834.696 638.178
<CAPTION>
FUTURE FUTURE NET CUM. NET PRESENT WT AVG. OIL AVG. GAS
EXPENSE REVENUE REVENUE @10% PRICE PRICE
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 3.662 15.908 15.908 14.159 0.000 2.769
1998 0.000 36.360 52.268 30.367 0.000 2.812
1999 0.000 27.438 79.706 20.833 0.000 2.818
2000 10.000 82.171 161.877 56.362 0.000 2.722
2001 0.000 75.080 236.957 47.085 0.000 2.721
2002 0.000 61.145 298.102 34.859 0.000 2.721
2003 0.000 49.764 347.866 25.791 0.000 2.720
2004 8.489 120.238 468.104 55.774 0.000 2.689
2005 5.251 194.359 662.463 82.853 0.000 2.692
SUB 27.402 662.463 662.463 368.083 0.000 2.716
REM 115.552 3295.378 3957.841 716.262 0.000 2.771
TOT 142.954 3957.841 3957.841 1084.345 0.000 2.762
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
S U M M A R Y F O R RESERVE: L-POSSIBLE UNDEVE PRIMARY
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF INCOME, PRODUCTION AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
LIFE YR 27.250 DISC % 10.000
P.W. % P.W., M$
OIL GAS ------ --------
---------- ----------
<S> <C> <C> <C> <C>
10.00 1484.126
GROSS WELLS I.000 0.000 15.00 1085.944
GROSS CUM. MB & MMF 0.000 0.000 20.00 821.056
GROSS RES. MB & MMF 322.628 0.000 25.00 636.349
GROSS ULT. MB & MMF 322.628 0.000 30.00 502.720
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET TOTAL NET SEV & ADV OPERATING FUTURE FUTURE NET CUM. NET
OIL GAS OIL GAS REVENUE TAX EXPENSE EXPENSE REVENUE REVENUE
--(MBBL)-- --(MMCF)-- --(MBBL)-- --(MMCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 20.651 0.000 15.801 0.000 312.231 18.734 20.734 462.000 -189.237 -189.237
1999 32.578 0.000 24.928 0.000 492.568 29.554 35.544 0.000 427.470 238.233
2000 29.320 0.000 22.435 0.000 443.312 26.599 35.544 0.000 381.169 619.402
2001 26.388 0.000 20.191 0.000 398.980 23.939 35.544 0.000 339.498 958.900
2002 23.749 0.000 18.172 0.000 359.082 21.545 35.544 0.000 301.993 1260.893
2003 21.374 0.000 16.355 0.000 323.174 19.390 35.544 0.000 268.240 1529.133
2004 19.237 0.000 14.719 0.000 290.857 17.451 35.544 0.000 237.861 1766.994
2005 17.313 0.000 13.248 0.000 261.771 15.706 35.544 0.000 210.521 1977.515
SUB 190.610 0.000 145.849 0.000 2881.975 172.918 269.542 462.000 1977.515 1977.515
REM 132.018 0.000 101.015 0.000 1996.063 119.763 633.868 0.000 1242.432 3219.947
TOT 322.628 0.000 246.864 0.000 4878.038 292.681 903.410 462.000 3219.947 3219.947
<CAPTION>
PRESENT WT AVG. OIL AVG. GAS
@10% PRICE PRICE
---(M$)--- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C>
1996 0.000 0.000 0.000
1997 0.000 0.000 0.000
1998 -165.083 19.760 0.000
1999 324.139 19.760 0.000
2000 262.757 19.760 0.000
2001 212.757 19.760 0.000
2002 172.051 19.760 0.000
2003 138.930 19.760 0.000
2004 111.998 19.760 0.000
2005 90.115 19.760 0.000
SUB 1147.664 19.760 0.000
REM 336.463 19.760 0.000
TOT 1484.127 19.760 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:28
PAGE: 1
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- -------------------------- --------------------------- --- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
S. CARLTON FIELD TOTAL SOUTH CARLTON PDP 1.0000000 0.7766000 2343.071 0.000 1819.629
PERKINS FIELD TOTAL PERKINS PDP 1.0000000 0.8125000 290.847 0.000 236.313
UNIVERSITY 10-18 1-U WAR-WINK SOUTH (FUSSELMAN) PDP 0.0834000 0.0651000 0.000 14498.209 0.000
ROBERTS, ERNEST BOLTON PDP 0.9686025 0.7356582 31.582 1010.883 23.234
GRACE 35-2C CHICKEN SWAMP BRANCH PDP 0.7000000 0.5559777 0.000 2038.835 0.000
PEOC-NVG 41-23H WOLF MOUNTAIN PDP 0.8071900 0.5941397 457.087 0.000 271.573
CL&F 8 (TB) TURTLE BAYOU PDP 0.0450000 0.0295000 62.528 15372.077 1.845
MEALS, NANCY 1 BLOCK D PDP 0.3958335 0.3042500 578.157 0.000 175.904
TWIN WOMAN NW/4 FAY EAST (CNGM-PRMR) PDP 0.5272400 0.4189000 5.595 1398.831 2.344
STATE 904 L-3 GAS UNIT G O M ST-904 (FRIO 8200) PDP 0.2478040 0.1857950 17.762 1953.826 3.300
ALLEN, J.H. #2 CROW PDP 0.7916660 0.6141438 136.189 278.568 83.640
STEELE 44C-3 HARKER RANCH (MORROW) PDP 0.2250000 0.1642700 98.451 1640.842 16.172
ARAPAHOE, NORTHWEST UNIT ARAPAHOE PDP 0.0300200 0.0225400 4053.964 0.000 91.376
RIPPLE 1-12 REAMS NW PDP 0.4628999 0.3867553 0.000 1453.204 0.000
BRUMFIELD B-5 TINSLEY NORTH PDP 1.0000000 0.7650000 90.238 0.000 69.032
JOHNSON GBSA UNIT JOHNSON PDP 0.0300960 0.0318720 2552.873 1302.239 81.365
GAULT, SARAH 1-5 PARSLEY PDP 0.5000000 0.3666600 92.398 1293.573 33.879
SMITH, LAMAR A. 3 SPRINGHILL PDP 0.0000000 0.0231789 174.017 11204.506 4.034
HOWLING WOMAN #1-23 ELM GROVE PDP 0.4000000 0.3159934 0.000 1486.778 0.000
KOPF 1-11 WATONGA-CHICKASHA TREND (MORRO PDP 0.3500000 0.2625000 0.000 1085.049 0.000
HENSLER 1-21 COMERTOWN SOUTH PDP 0.4172425 0.3420865 241.079 43.050 82.470
SNYDER - STATE OF TEXAS GAS UN WORSHAM-BAYER (DEVONIAN) PDP 0.0937500 0.0718300 27.744 10727.873 1.993
STATE 904 l-1 GAS UNIT G O M ST-904 (FRIO 1-A) PDP 0.2246620 0.1671290 67.549 1179.508 11.289
RICHARDS, E. CUSHING (BARTLESVILLE) PDP 0.7500000 0.5843800 198.648 0.000 116.086
BOGGES 2-29 STRONG CITY DISTRICT (RED FORK PDP 0.1875000 0.1582000 7.386 2484.266 1.168
MIKESKA/KRENEK GIDDINGS (AUSTIN CHALK-3) PDP 0.3083900 0.3079660 132.324 91.609 40.751
ROSEWOOD RESOURCES 10-3 SPRINGHILL PDP 0.0000000 0.0236760 119.159 9348.184 2.821
<CAPTION>
NET NET DISC NET
LEASE GAS REVENUE REVENUE
- -------------------------- ---(MMCF)--- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
S. CARLTON FIELD TOTAL 0.000 5080.534 3163.538
PERKINS FIELD TOTAL 0.000 2671.077 1767.888
UNIVERSITY 10-18 1-U 943.833 2246.024 1743.860
ROBERTS, ERNEST 743.664 1470.673 1087.015
GRACE 35-2C 1133.547 2586.709 1067.624
PEOC-NVG 41-23H 0.000 4396.871 948.432
CL&F 8 (TB) 453.476 1219.454 787.231
MEALS, NANCY 1 0.000 1926.829 775.284
TWIN WOMAN NW/4 585.970 1112.065 756.047
STATE 904 L-3 GAS UNIT 363.011 847.837 735.666
ALLEN, J.H. #2 171.081 1505.052 685.532
STEELE 44C-3 269.541 863.768 670.716
ARAPAHOE, NORTHWEST UNIT 0.000 1035.338 642.407
RIPPLE 1-12 562.034 1009.452 627.252
BRUMFIELD B-5 0.000 752.523 524.319
JOHNSON GBSA UNIT 41.505 713.853 501.718
GAULT, SARAH 1-5 474.301 963.600 498.597
SMITH, LAMAR A. 3 259.708 748.272 495.614
HOWLING WOMAN #1-23 469.812 861.643 492.405
KOPF 1-11 284.825 616.169 488.789
HENSLER 1-21 14.727 948.786 486.238
SNYDER - STATE OF TEXAS GAS UN 770.583 1725.929 472.010
STATE 904 l-1 GAS UNIT 197.130 580.201 469.449
RICHARDS, E. 0.000 913.878 436.279
BOGGES 2-29 393.011 823.191 428.386
MIKESKA/KRENEK 28.212 669.655 408.522
ROSEWOOD RESOURCES 10-3 221.328 613.847 399.351
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:29
PAGE: 2
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ----------------------------- ----------------------------- --- ---------- --------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
WALKER, GW 6-7 CAMP CREEK PDP 0.3333000 0.2342100 170.188 0.000 39.860
CL&F 4 (TB) TURTLE BAYOU PDP 0.0315000 0.0221366 40.223 6400.000 0.890
SMITH 5-8 1C LINEBARGER CREEK PDP 0.8968732 0.6443064 0.000 456.270 0.000
SCRUGGS 15-10 SHANNON EAST PDP 1.0000000 0.7565848 0.000 238.918 0.000
COVINGTON #1 PERRIN NORTH AFB PDP 0.8514999 0.6981236 33.848 138.039 23.630
MCCRANIE IVAN PDP 0.2796300 0.2292700 31.726 1057.544 7.274
DALLAS 5-4 BALLS BRANCH PDP 0.9166719 0.7515562 0.000 275.847 0.000
TAYLOR, JOY 1 CARPENTER (MORROW UPPER) PDP 0.0000000 0.0254000 0.000 7018.556 0.000
BURNS ESTATE REYDON (MORROW UPPER) PDP 0.0625000 0.0507813 0.000 4969.743 0.000
TALLY 31-16 1T BALLS BRANCH PDP 0.8869787 0.5934363 0.000 372.074 0.000
HURT PEARSALL PDP 0.7499999 0.5270625 49.980 86.222 26.343
SMACKOVER UNIT LAKE COMO (SMACKOVER) PDP 0.0158400 0.0129900 3392.723 2470.112 44.071
ARCO -22- ARBOL DE NADA PDP 0.9977214 0.6894362 62.256 112.895 42.922
SMITH NO 1-34 ICONIUM NW PDP 1.0000000 0.7625995 32.591 7.943 24.854
NEUFELD 1-33 FAYE EAST PDP 0.6506300 0.5296364 0.342 351.174 0.178
SPENCER WALKER 1 HICO-KNOWLES PDP 0.2296300 0.1882600 23.653 1742.845 4.453
TROUTT-MARSH ICONIUM NW PDP 1.0000000 0.7522556 15.123 105.860 11.376
UNIVERSITY 18-30 #2 QUITO EAST (CHERRY CANYON) PDP 0.1258000 0.1031000 55.244 1972.985 5.696
MUSKEGON 20 ST. COM. EMPIRE SOUTH (MORROW) PM PDP 0.2468800 0.1850600 1.790 668.992 0.331
SARKEYS UNIT BROOKEN (HARTSHORNE) PDP 0.2500000 0.2187500 0.000 998.670 0.000
ANDERSON 14-12 1L NETTLETON NORTH PDP 1.0000000 0.7695140 0.000 344.689 0.000
UNIVERSITY -1829- WAR-WINK SOUTH (WOLFCAMP) PDP 0.1318000 0.0941000 361.967 773.294 34.061
JACKSON UNIT JOHNSON RANCH (WOLFCAMP) WC PDP 0.0833000 0.0680000 172.413 1724.131 11.724
BOUCHER 1-5 OAKWOOD NORTH PDP 0.2069570 0.1629800 3.487 1162.416 0.568
TIOGA-MADISON UNIT TIOGA (MADISON) PDP 0.0000000 0.0084123 2112.812 7294.384 17.774
CL&F 6 (TB) TURTLE BAYOU PDP 0.0479633 0.0314591 44.417 2961.127 1.397
ROSEWOOD RESOURCES 10-2 SPRINGHILL PDP 0.0000000 0.0236760 57.459 4093.092 1.360
<CAPTION>
NET NET DISC NET
LEASE GAS REVENUE REVENUE
- ----------------------------- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
WALKER, GW 6-7 0.000 551.500 372.324
CL&F 4 (TB) 141.674 401.471 361.078
SMITH 5-8 1C 293.978 551.495 359.401
SCRUGGS 15-10 180.761 385.928 308.515
COVINGTON #1 96.368 461.952 301.570
MCCRANIE 242.463 480.587 301.300
DALLAS 5-4 207.315 431.044 296.033
TAYLOR, JOY 1 178.271 440.557 289.667
BURNS ESTATE 252.370 582.371 288.524
TALLY 31-16 1T 220.802 490.251 283.849
HURT 45.444 332.862 278.399
SMACKOVER UNIT 32.087 497.890 277.101
ARCO -22- 77.834 576.014 272.207
SMITH NO 1-34 6.057 331.098 266.227
NEUFELD 1-33 186.016 381.557 263.829
SPENCER WALKER 1 328.108 632.998 260.476
TROUTT-MARSH 79.634 330.932 253.577
UNIVERSITY 18-30 #2 203.415 451.540 252.727
MUSKEGON 20 ST. COM. 123.804 301.132 249.744
SARKEYS UNIT 218.459 401.958 246.167
ANDERSON 14-12 1L 265.243 501.863 244.162
UNIVERSITY -1829- 72.767 406.063 229.246
JACKSON UNIT 117.241 468.580 221.322
BOUCHER 1-5 189.451 425.802 213.639
TIOGA-MADISON UNIT 61.363 452.826 212.178
CL&F 6 (TB) 93.154 256.437 199.806
ROSEWOOD RESOURCES 10-2 96.908 276.607 195.847
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:30
PAGE: 3
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL GAS
- ----------------------------- ----------------------------- --- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIMONTON, J.S. 1 BETHANY LONGSTREET PDP 0.3075000 0.2521100 6.970 696.990 1.757 175.718
BUTLER MOORE SAMS PDP 0.0202530 0.0144385 193.539 7945.277 2.794 114.718
WYNN 1 STUART RANCH PDP 0.4145310 0.3088800 5.070 582.778 1.566 180.009
MATILDA GRAY STREAM M VINTON PDP 0.2000000 0.1368000 208.445 0.000 28.515 0.000
GLOSTER JACOB COLUMBIA (HOSSTON 1ST) PDP 0.0457210 0.0330295 38.330 4401.933 1.266 145.394
STANSBURY 2 D'ARBONE PDP 0.6326230 0.5292460 1.494 249.001 0.791 131.783
FOWLER 7 1 NE NE BLUFF PDP 0.3500000 0.2869600 55.882 0.000 16.036 0.000
STATE QE 13 RANGER LAKE (PENN) PN PDP 0.5000000 0.3748000 36.970 96.123 13.856 36.027
MCDONALD 36-13 1C CORINTH PDP 0.6544999 0.4756409 0.000 605.428 0.000 287.966
CL&F 10 (TB) TURTLE BAYOU PDP 0.0250000 0.0163975 130.811 5687.454 2.145 93.260
MURPHY-RANDOLPH 1 BLOOMING GROVE PDP 0.5140625 0.3940000 0.000 474.068 0.000 186.783
SHIPP 34-A CASEY (STRAWN) PS PDP 0.0415000 0.0303000 811.855 1522.227 24.599 46.123
MANY, SUE L. DARROW PDP 0.6812600 0.4548000 53.947 8.092 24.535 3.680
PHILLIPS EDWARDS EDWARDS WEST PDP 1.0000000 0.7027500 31.912 45.569 22.426 32.023
CORLEY 6-1 BALLS BRANCH PDP 0.8396389 0.6206970 0.000 150.584 0.000 93.467
HINTON 8-16 PALMETTO SOUTH (MISSISSIPPIAN PDP 0.3180266 0.2606202 0.000 713.075 0.000 185.842
CUNNINGHAM 16-7 COAL FIRE CREEK PDP 0.2013218 0.1621556 0.000 906.175 0.000 146.941
KELLY 15-16C COAL FIRE CREEK PDP 0.2384760 0.1770173 0.000 752.732 0.000 133.247
MIX MOORE SAMS PDP 0.0208750 0.0150303 234.378 8370.649 3.523 125.814
BREEDLOVE 4 BREEDLOVE SOUTH (SPRABERRY) PDP 0.2500000 0.1757000 122.088 293.010 21.451 51.482
MULLINS 1-34 BUTLER-CUSTER WEST PDP 0.0625000 0.0547000 75.847 1551.425 4.149 84.863
PIERCE-HENDERSON 7-1 OZONA PDP 0.7500000 0.5709841 0.000 331.718 0.000 189.406
KING HANSFORD PDP 0.9502000 0.6677600 1.139 237.579 0.761 158.646
HARP 1-36 SHO-VEL-TUM (SPRINGER) PDP 0.2000000 0.1647000 160.056 0.000 26.361 0.000
ALUM CREEK FIELD TOTAL ALUM CREEK PDP 0.0751576 0.0656722 253.340 111.083 16.637 7.295
STATE 17 AUSTIN (MISSISSIPPIAN) MI PDP 0.1250000 0.1025000 4.760 1410.253 0.488 144.551
PIERCE, V. I. 2-6 OZONA (CANYON) PDP 0.7500000 0.5709841 0.000 308.789 0.000 176.314
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- ------------------------------ ---(M$)--- @10.00% M$
<S> <C> <C>
SIMONTON, J.S. 1 277.313 193.145
BUTLER 301.895 191.274
WYNN 1 354.614 182.869
MATILDA GRAY STREAM M 246.407 179.308
GLOSTER JACOB 295.188 176.578
STANSBURY 2 280.310 175.340
FOWLER 7 1 NE NE 266.578 168.248
STATE QE 13 223.593 161.491
MCDONALD 36-13 1C 306.964 160.011
CL&F 10 (TB) 238.319 159.499
MURPHY-RANDOLPH 1 245.713 158.363
SHIPP 34-A 394.991 158.302
MANY, SUE L. 187.592 157.747
PHILLIPS EDWARDS 200.740 156.545
CORLEY 6-1 193.956 150.796
HINTON 8-16 295.017 150.173
CUNNINGHAM 16-7 247.192 148.725
KELLY 15-16C 285.168 145.728
MIX 207.673 135.406
BREEDLOVE 4 320.598 134.223
MULLINS 1-34 257.235 134.113
PIERCE-HENDERSON 7-1 270.431 132.998
KING 263.496 132.876
HARP 1-36 245.104 132.325
ALUM CREEK FIELD TOTAL 156.794 124.106
STATE 17 252.989 118.980
PIERCE, V. I. 2-6 219.046 117.381
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:31
PAGE: 4
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL GAS
- ----------------------------- ----------------------------- --- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CHANCE - BLAHA UNIT GIDDINGS (AUSTIN CHALK-3) PDP 0.3000000 0.2037000 24.923 218.074 5.077 44.422
PORTER TWITTY (GRANITE WASH) PDP 0.3333300 0.2732914 16.837 715.585 4.601 195.563
BRUMFIELD B-13 TINSLEY NORTH PDP 1.0000000 0.7650000 21.087 0.000 16.131 0.000
SHRINERS HOSPITAL A-1 LISBON PDP 0.0445000 0.0374400 83.869 2306.401 3.140 86.352
EUNICE REYDON (MORROW UPPER) PDP 0.0271000 0.0210000 0.000 6146.100 0.000 129.068
FLANAGAN 2-30 SICKLES NORTH PDP 0.3246250 0.2492804 0.000 377.023 0.000 93.985
ROSEWOOD RESOURCES 10-1 SPRINGHILL (HAYNESVILLE) PDP 0.0000000 0.0221850 41.648 2366.478 0.924 52.500
AMKIRK UNIT AM-KIRK PDP 0.0540700 0.0433000 321.555 0.000 13.923 0.000
ROBERTSON-BLUESTEM SEPTEMBER (9300) PDP 0.1081250 0.0759850 38.320 1751.759 2.912 133.108
MATILDA GRAY STREAM J VINTON PDP 0.2000000 0.1368000 180.201 0.000 24.652 0.000
GERLOFF FREEDOM NORTH (CCKB-MRMC-TNKW) PDP 0.3047900 0.2473400 0.000 471.966 0.000 116.736
FEDERAL 6 COM QUAIL RIDGE (MORROW) PM PDP 0.0796000 0.0615300 6.560 1030.782 0.404 63.424
UNIVERSITY 10-18 A-3, A-4 & A- BLOCK 18 (CHERRY CANYON) PDP 0.0833000 0.0603840 33.733 710.934 2.037 42.929
CROCKETT 1 ST MARY WEST (COTTON VALLEY) PDP 0.0858000 0.0624000 346.144 179.347 21.599 11.191
TRAVIS PEAK SUC SUGAR CREEK PDP 0.1975260 0.1769783 5.092 360.662 0.901 63.829
BRUMFIELD B-6 TINSLEY NORTH PDP 1.0000000 0.7650000 35.490 0.000 27.150 0.000
SMACKOVER 'A' POOL TOTAL CYPRESS CREEK SOUTH(SMACKOVER PDP 0.0000000 0.0044963 2592.198 773.791 11.655 3.479
GILMER 25-15 BLOWHORN CREEK PDP 0.4615250 0.3852678 0.000 357.082 0.000 137.572
BRUMFIELD B-20 TINSLEY PDP 1.0000000 0.7650000 16.312 0.000 12.478 0.000
DAVIS, G.C. 1-61 STILES RANCH PDP 0.0291220 0.0221789 9.757 4510.748 0.216 100.043
BLUE FOREST UNIT BLUE FOREST PDP 0.0020511 0.0016241 799.304 41521.016 1.298 67.434
PARAMOUNT/COCHRAN 14-5 BLACKBURN (HOSSTON) PDP 0.3727333 0.3374942 47.160 38.199 15.916 12.892
WALKER, P., ET AL 5 & 6 QUITO EAST (CHERRY CANYON) PDP 0.1562451 0.1281016 14.876 956.452 1.906 122.523
GLENN 1-33 BEAUCHAMP SW (MORROWAN) PDP 0.1914060 0.1449722 0.000 1064.100 0.000 154.265
HILL UN 1 1 OBERLIN PDP 0.1242900 0.0953000 22.022 917.596 2.099 87.447
BRUMFIELD B-2 TINSLEY NORTH PDP 1.0000000 0.7651187 21.610 0.000 16.534 0.000
ANDERSON 14-12 1-E NETTLETON NORTH PDP 1.0000000 0.7695140 0.000 67.566 0.000 51.993
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- ------------------------------ ---(M$)--- @10.00% M$
<S> <C> <C>
CHANCE - BLAHA UNIT 136.531 117.070
PORTER 232.760 117.005
BRUMFIELD B-13 131.062 114.898
SHRINERS HOSPITAL A-1 173.067 112.950
EUNICE 256.230 111.870
FLANAGAN 2-30 187.555 111.291
ROSEWOOD RESOURCES 10-1 152.211 108.664
AMKIRK UNIT 116.477 101.200
ROBERTSON-BLUESTEM 241.740 100.375
MATILDA GRAY STREAM J 125.928 99.789
GERLOFF 146.945 99.286
FEDERAL 6 COM 126.585 96.936
UNIVERSITY 10-18 A-3, A-4 & A- 108.285 96.659
CROCKETT 1 297.953 96.437
TRAVIS PEAK SUC 117.725 95.509
BRUMFIELD B-6 125.929 93.523
SMACKOVER 'A' POOL TOTAL 195.061 93.317
GILMER 25-15 162.766 92.095
BRUMFIELD B-20 101.658 91.710
DAVIS, G.C. 1-61 230.170 90.257
BLUE FOREST UNIT 142.165 88.664
PARAMOUNT/COCHRAN 14-5 107.606 88.209
WALKER, P., ET AL 5 & 6 123.631 83.437
GLENN 1-33 152.030 81.750
HILL UN 1 1 155.882 81.159
BRUMFIELD B-2 99.926 81.136
ANDERSON 14-12 1-E 97.381 80.714
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:32
PAGE: 5
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ------------------------- -------------------------- --- -------- --------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
GADDIS-MCLAURIN 7 BAKERS CREEK (RODESSA) PDP 0.2000000 0.1499200 73.568 0.000 11.029
ROSEWOOD RESOURCES 9-1 SPRINGHILL (HAYNESVILLE) PDP 0.0000000 0.0221719 37.958 1681.819 0.842
WELLS, M. W. 1-T WASKOM (TRAVIS PEAK 1) PDP 0.2062200 0.1690700 0.716 295.470 0.121
UNIVERSITY 1829-6, 8 & 10 QUITO EAST (CHERRY CANYON) PDP 0.1584610 0.1267265 62.215 221.344 7.884
SIMPSON NW NW SIMPSON RANCH (MINNELUSA) PDP 0.1847000 0.1231272 126.069 0.000 15.523
NORRIS N G 21-13 FAYETTE WEST PDP 0.6797699 0.5048000 0.000 208.069 0.000
KANSAS UNIVERSITY SPARKS NE PDP 0.5078125 0.3741226 0.000 356.160 0.000
MCDANIEL, LOIS 1 QUITO EAST (CHERRY CANYON) PDP 0.1562338 0.1297807 1.577 420.330 0.205
DAVIS, E.T. 1-60 STILES RANCH PDP 0.0243750 0.0180088 11.356 2271.221 0.205
JONES, JOHN KNOTT SW PDP 0.9400000 0.6735902 16.078 1.791 10.830
LUCAS BEAUCHAMP (MORROWAN) PDP 0.1914060 0.1412363 0.000 594.140 0.000
ALLEN, BOBBIE LEE 23-15C BACON PDP 0.6832935 0.4912499 0.000 84.575 0.000
UNIVERSITY 9-18 A-1 BLOCK 18 (CHERRY CANYON) PDP 0.0833333 0.0694000 45.803 412.226 3.179
CHANCE ESTATE UNIT GIDDINGS (AUSTIN CHALK-3) PDP 0.3000000 0.2113170 23.705 279.719 5.009
BUSH DAVID 14-4 1T COAL FIRE CREEK PDP 0.1769800 0.1548600 0.000 311.188 0.000
BAINES M E 1B MCCRACKEN MOUNTAIN PDP 0.4621800 0.4005300 0.000 245.638 0.000
HEARN 29-3 PEACHTREE CREEK (COTTON VALLEY PDP 0.0800000 0.0675000 72.380 0.000 4.886
PIERCE, V. I. 2-4 OZONA (CANYON) PDP 0.2500000 0.1903278 2.899 446.017 0.552
BOZEMAN 27-15 MCCRACKEN MOUNTAIN PDP 0.2260800 0.1921400 0.000 444.987 0.000
GRACE 35-2L CHICKEN SWAMP BRANCH PDP 0.7000000 0.5554160 0.000 100.604 0.000
GADDIS FARMS 13-1 BOLTON (COTTON VALLEY) PDP 0.0000000 0.0147600 160.612 1708.637 2.371
SIMMONS 2-31 CARPENTER (MORROW UPPER) PDP 0.0000000 0.0278982 0.000 2302.919 0.000
PIERCE, V. I. 2-1 OZONA PDP 0.7500000 0.5709841 0.000 185.346 0.000
AMERICAN CAN 11-5 1C WOOLBANK CREEK PDP 1.0000000 0.7162682 0.000 118.014 0.000
BRYAN CV UNIT 5 BRYAN PDP 0.1777000 0.1457000 58.920 0.000 8.585
PIERCE-HENDERSON 8-1 OZONA (CANYON) PDP 0.7500000 0.5709841 0.000 200.723 0.000
PADGITT, JAMES T. 3 PADGITT PDP 0.0820312 0.0624515 0.000 702.042 0.000
<CAPTION>
NET NET NET
LEASE GAS REVENUE OIL
- ------------------------- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
GADDIS-MCLAURIN 7 0.000 101.615 78.812
ROSEWOOD RESOURCES 9-1 37.289 111.446 77.429
WELLS, M. W. 1-T 49.955 84.896 76.074
UNIVERSITY 1829-6, 8 & 10 28.050 92.154 75.750
SIMPSON NW NW 0.000 159.872 75.073
NORRIS N G 21-13 105.033 105.000 74.915
KANSAS UNIVERSITY 133.248 142.947 72.874
MCDANIEL, LOIS 1 54.551 84.129 72.452
DAVIS, E.T. 1-60 40.902 104.228 71.186
JONES, JOHN 1.206 79.642 70.947
LUCAS 83.914 106.941 70.086
ALLEN, BOBBIE LEE 23-15C 41.547 83.391 69.688
UNIVERSITY 9-18 A-1 28.608 87.211 68.894
CHANCE ESTATE UNIT 59.109 80.680 68.163
BUSH DAVID 14-4 1T 48.191 86.257 66.788
BAINES M E 1B 98.385 102.653 64.660
HEARN 29-3 0.000 74.266 64.305
PIERCE, V. I. 2-4 84.889 125.123 63.773
BOZEMAN 27-15 85.500 109.454 63.508
GRACE 35-2L 55.877 111.416 60.718
GADDIS FARMS 13-1 25.219 106.290 59.217
SIMMONS 2-31 64.247 116.393 57.567
PIERCE, V. I. 2-1 105.830 102.415 57.514
AMERICAN CAN 11-5 1C 84.529 71.983 57.344
BRYAN CV UNIT 5 0.000 76.440 55.370
PIERCE-HENDERSON 8-1 114.610 88.296 55.365
PADGITT, JAMES T. 3 43.844 70.117 55.263
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:33
PAGE: 6
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ------------------------- -------------------------- --- -------- --------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
UNIVERSITY 11-18 B-1 & B-2 WAR-WINK SOUTH (WOLFCAMP) PDP 0.0833000 0.0650695 109.613 70.038 7.132
NEWMAN CROWLEY 24-5 1T COAL FIRE CREEK PDP 0.4889102 0.4088548 0.000 181.887 0.000
STATE 32 BAUM (UPPER PENN) UP PDP 0.3500000 0.2664590 8.369 108.794 2.230
DABBS 24-6 NETTLETON NORTH (MISSISSIPPIAN PDP 0.0000000 0.0614395 0.000 748.900 0.000
SALE, T.S. JR. 1 OAKS PDP 0.1250000 0.0878438 119.480 0.000 10.496
UNIVERSITY 22-18 A-1 & A-2 WAR-WINK SOUTH (WOLFCAMP) PDP 0.1176470 0.0918627 72.354 32.348 6.647
FLETCHER, MAX J. 3 BIRCH (SMACKOVER) PDP 0.0000000 0.0084703 0.000 4803.362 0.000
BUSH 14-15C COAL FIRE CREEK PDP 0.2830855 0.2476998 0.000 182.977 0.000
WHITE 8-4 BLOOMING GROVE PDP 0.6814975 0.5359227 0.000 149.276 0.000
AMC 14-15 1L MCCRACKEN MOUNTAIN PDP 0.3581300 0.3046100 0.000 200.551 0.000
KILHOFFER 3-33 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0175780 31.560 2104.000 0.555
SMITH 5-8 1L LINEBARGER CREEK PDP 0.8985957 0.6876268 0.000 55.519 0.000
UNIVERSITY 18-29 GAS UNIT 1 QUITO EAST (ATOKA) PDP 0.1584610 0.1267265 0.000 323.204 0.000
COLDWELL, DALLAS EAST TEXAS PDP 0.0000000 0.0088518 402.649 120.795 3.564
BUSH 14-15L COAL FIRE CREEK PDP 0.2830855 0.2476998 0.000 166.411 0.000
HOLLY JF 32-8 BEAVERTON PDP 0.2367200 0.1802169 0.000 295.327 0.000
UNIVERSITY 18-5 #3 BLOCK 17 (CHERRY CANYON) PDP 0.3614154 0.2377637 9.251 172.685 2.200
UNIVERSITY 10-18 B-6 BLOCK 18 (CHERRY CANYON) PDP 0.1052000 0.0833444 0.849 460.197 0.071
AMC 14-15 1M MCCRACKEN MOUNTAIN PDP 0.3581300 0.3046100 0.000 181.431 0.000
PIERCE, V. I. 10-5 OZONA PDP 0.7500000 0.5709841 0.000 117.060 0.000
KILHOFFER 2-33 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0175780 6.216 1655.546 0.109
CL&F 2 DEER ISLAND PDP 0.0250000 0.0163975 44.318 984.855 0.727
FLETCHER, MAX J. 1 BIRCH (SMACKOVER) PDP 0.0000000 0.0084703 0.000 3547.743 0.000
FLETCHER, MAX J. 2 BIRCH (SMACKOVER) PDP 0.0000000 0.0084703 0.000 2957.294 0.000
GRAVLEE 13-12 1 MCCRACKEN MOUNTAIN PDP 0.6296200 0.4610814 0.402 120.854 0.185
MARX-THOMAS 6-6 1 MUD CREEK PDP 0.0546900 0.0407374 0.514 1027.945 0.021
STEINER-SCHWAB 26-5 MUSGROVE CREEK PDP 0.2935100 0.2229600 0.000 203.431 0.000
<CAPTION>
NET NET NET
LEASE GAS REVENUE OIL
- --------------------------- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
UNIVERSITY 11-18 B-1 & B-2 4.557 69.645 54.903
NEWMAN CROWLEY 24-5 1T 74.366 85.738 54.713
STATE 32 28.989 99.440 53.305
DABBS 24-6 46.012 115.048 51.942
SALE, T.S. JR. 1 0.000 116.679 50.213
UNIVERSITY 22-18 A-1 & A-2 2.972 65.614 48.705
FLETCHER, MAX J. 3 40.686 59.974 47.241
BUSH 14-15C 45.323 81.393 44.358
WHITE 8-4 80.001 55.555 44.079
AMC 14-15 1L 61.090 68.365 42.821
KILHOFFER 3-33 36.984 99.167 41.498
SMITH 5-8 1L 38.177 46.621 41.224
UNIVERSITY 18-29 GAS UNIT 1 40.959 54.593 40.607
COLDWELL, DALLAS 1.069 67.608 40.414
BUSH 14-15L 41.220 72.392 39.972
HOLLY JF 32-8 53.223 52.079 39.959
UNIVERSITY 18-5 #3 41.058 59.062 38.971
UNIVERSITY 10-18 B-6 38.355 47.360 38.869
AMC 14-15 1M 55.266 58.962 37.693
PIERCE, V. I. 10-5 66.839 54.780 35.532
KILHOFFER 2-33 29.101 68.784 35.224
CL&F 2 16.149 44.485 34.687
FLETCHER, MAX J. 1 30.050 44.297 34.468
FLETCHER, MAX J. 2 25.049 50.048 34.377
GRAVLEE 13-12 1 55.723 42.835 34.345
MARX-THOMAS 6-6 1 41.876 61.225 34.202
STEINER-SCHWAB 26-5 45.357 47.340 33.424
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:33
PAGE: 7
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ------------------------------ ------------------------------ ---- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)--
<S> <C> <C> <C> <C> <C> <C> <C>
HUDDLESTON, C. L. GINGER SE (SMACKOVER) PDP 0.0000000 0.0042679 0.000 6342.729 0.000
BRYAN CV UNIT 7 BRYAN PDP 0.1300400 0.1044914 69.116 0.000 7.222
CLIFT 2-4 MOOREWOOD NE (ATOK-SKNR) PDP 0.0000000 0.0233590 10.258 1025.798 0.240
LEE 2-5 ALLISON PARKS (MORROWAN UPPER) PDP 0.0312500 0.0219606 0.000 1283.966 0.000
PIERCE, V. I. 2-5 OZONA (CANYON) PDP 0.7499999 0.5709841 0.000 115.008 0.000
MORTON 2-35 COYLE SOUTH (WILCOX) PDP 0.2690400 0.2415800 3.429 57.149 0.828
BEAVER LODGE-ORDOVICIAN UNIT N BEAVER LODGE (ORDOVICIAN) PDP 0.0000000 0.0002900 2807.857 165663.568 0.814
AMACKER, V.T. 106-1 AMACKER-TIPPETT (DEVONIAN) PDP 0.0000000 0.0050598 67.808 4676.392 0.343
BRADFORD E L 19-15 1 MCGEE LAKE PDP 0.0296800 0.0226000 0.000 1244.442 0.000
GAULT, SARAH 3-5 PARSLEY (ATOKA) PDP 0.5000000 0.3666600 10.375 0.000 3.804
SUGGS 16-10 1 FERNBANK PDP 0.0280100 0.0208632 0.000 1247.820 0.000
BAINES M E 1C MCCRACKEN MOUNTAIN PDP 0.4621800 0.4005300 0.000 106.469 0.000
AMERICAN CAN 11-5 1D, E WOOLBANK CREEK PDP 1.0000000 0.7162682 0.000 73.319 0.000
GRIMSLEY A M 2 BLOOMING GROVE PDP 0.2500000 0.2066900 0.000 175.647 0.000
RAY 5-4 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0193290 17.951 1025.798 0.347
LEE, TAYLOR W. EAST TEXAS PDP 0.0000000 0.0047982 516.960 142.164 2.480
FOWLER 26-4 1 NW NW DAVIS CHAPEL NE PDP 0.1531300 0.1158168 0.000 344.492 0.000
LITTLE WHIT #4 COBRA (WOLFCAMP) PDP 0.2500000 0.1756875 23.151 35.884 4.067
CLIFT 4-5 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0233590 0.000 911.903 0.000
ALLEN, BOBBIE LEE 23-15T BACON PDP 0.6832935 0.4912499 0.000 63.932 0.000
BLOWHORN CREEK MILLERELLA UNIT BLOWHORN CREEK PDP 0.0948500 0.0734000 102.658 0.000 7.535
UNIVERSITY 10-18 A-1 & A-2 WAR-WINK SOUTH (WOLFCAMP) PDP 0.1088300 0.0770000 46.734 46.734 3.599
FOWLER MORGAN 8 4 BLUFF PDP 0.0437500 0.0362143 128.681 0.000 4.660
CLIFT 4-4 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0233590 4.991 665.514 0.117
CLIFT 3-4 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0233590 5.324 665.514 0.124
FARNED, LILLIAN P. 1-U BACON PDP 1.2421623 0.9654124 0.000 31.924 0.000
UNIVERSITY 23-18 A-1 & A-2 WAR-WINK SOUTH (WOLFCAMP) PDP 0.0833333 0.0650695 35.107 72.311 2.284
<CAPTION>
NET NET DISC NET
LEASE GAS REVENUE REVENUE
- ------------------------------ --(MMCF)-- ---(M$)--- @10.00% M$
<S> <S> <C> <C>
HUDDLESTON, C. L. 27.070 52.885 33.034
BRYAN CV UNIT 7 0.000 54.482 32.750
CLIFT 2-4 23.962 56.709 32.652
LEE 2-5 28.197 40.120 32.530
PIERCE, V. I. 2-5 65.668 50.694 31.749
MORTON 2-35 13.806 33.349 31.524
BEAVER LODGE-ORDOVICIAN UNIT N 48.042 86.275 31.435
AMACKER, V.T. 106-1 23.662 58.325 30.790
BRADFORD E L 19-15 1 28.124 49.537 30.526
GAULT, SARAH 3-5 0.000 37.287 29.423
SUGGS 16-10 1 26.034 42.185 28.900
BAINES M E 1C 42.644 44.687 28.099
AMERICAN CAN 11-5 1D, E 52.516 33.177 28.018
GRIMSLEY A M 2 36.305 36.170 27.755
RAY 5-4 19.828 47.626 27.422
LEE, TAYLOR W. 0.682 46.313 27.332
FOWLER 26-4 1 NW NW 39.898 40.688 27.278
LITTLE WHIT #4 6.304 34.515 27.008
CLIFT 4-5 21.301 46.308 26.919
ALLEN, BOBBIE LEE 23-15T 31.407 34.996 26.699
BLOWHORN CREEK MILLERELLA UNIT 0.000 30.310 26.614
UNIVERSITY 10-18 A-1 & A-2 3.599 31.453 26.529
FOWLER MORGAN 8 4 0.000 51.820 24.869
CLIFT 4-4 15.546 36.368 24.788
CLIFT 3-4 15.546 36.077 24.590
FARNED, LILLIAN P. 1-U 30.820 26.525 24.503
UNIVERSITY 23-18 A-1 & A-2 4.705 27.659 24.492
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:34
PAGE: 8
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ------------------------------ ------------------------------ ---- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)--
<S> <C> <C> <C> <C> <C> <C> <C>
PIERCE, V. I. 3-2 OZONA (CANYON) PDP 0.2500000 0.1903278 1.733 192.610 0.330
WHITAKER 25-15 1 BETHEL CHURCH PDP 0.2843800 0.2371000 0.000 99.602 0.000
BIZETTE 1 MOORE SAMS PDP 0.0179690 0.0123664 36.502 1095.066 0.451
RUDDER 29-4 PEACHTREE CREEK (COTTON VALLEY PDP 0.0800000 0.0531476 37.995 0.000 2.019
STRAWBRIDGE DW 33-14 1 BEAVERTON PDP 0.2332700 0.1775887 0.000 193.820 0.000
UNIVERSITY 9-18 -B- WAR-WINK SOUTH (WOLFCAMP) PDP 0.0833000 0.0650695 30.269 82.000 1.970
UNIVERSITY 11-18 A-3 BLOCK 18 (CHERRY CANYON) PDP 0.1000000 0.0629829 5.528 251.292 0.348
KELLY 15-16T COAL FIRE CREEK PDP 0.2384076 0.1770173 0.000 112.666 0.000
SACROC UNIT KELLY-SNYDER PDP 0.0000000 0.0000917 18463.676 0.000 1.693
CLIFT 1-4 MOOREWOOD NE (RED FORK) PDP 0.0000000 0.0233590 6.781 828.766 0.158
UNIVERSITY 18-31 4 QUITO EAST (CHERRY CANYON) PDP 0.1257782 0.0640807 4.683 425.769 0.300
MCEVERS 19-9 MCCRACKEN MOUNTAIN PDP 0.1352100 0.1067233 0.000 306.554 0.000
STEINER-SCHWAB 17-5 BOXES CREEK PDP 0.2601722 0.2251980 0.000 146.312 0.000
LOFTIS ESTATE 23-8L MCCRACKEN MTN PDP 0.1387500 0.1135382 0.000 163.175 0.000
PIERCE-HENDERSON 7-5 OZONA (CANYON) PDP 0.1875000 0.1523400 0.000 213.110 0.000
TALLY 31-16 1C BALLS BRANCH PDP 0.8869788 0.5934365 0.000 31.471 0.000
NOLEN CHARLES W 35-2 MCCRACKEN MTN WEST PDP 0.0525000 0.0500000 0.000 475.145 0.000
KILHOFFER 1-33 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0175780 8.075 554.758 0.142
NELLIE 1-16 BEAUCHAMP (MORROWAN) PDP 0.3828120 0.2824726 0.000 111.280 0.000
UNIVERSITY 18-6 3 WAR-WINK SOUTH (WOLFCAMP) PDP 0.2900000 0.2377638 10.620 10.620 2.525
CAMPBELL 21-13 #3 HARKER RANCH (MORROW) PDP 0.1200000 0.0960000 36.683 20.176 3.522
CLIFT 4-6 MOOREWOOD NE (ATOK-RDFK) PDP 0.0000000 0.0233590 0.000 443.343 0.000
STATE TRACT 562-L MATAGORDA BLOCK 562-L (6470) PDP 0.0000000 0.0374800 26.923 12.115 1.009
DOYLE 34-1 4 HARKER RANCH (MORROW) PDP 0.1200000 0.0960000 18.332 18.332 1.760
BEAVER LODGE-DEVONIAN UNIT BEAVER LODGE (DEVONIAN) PDP 0.0000000 50.0001200 24229.652 21322.100 2.908
BUTTS J T 1 BLOOMING GROVE PDP 0.1875000 0.1609200 0.000 135.984 0.000
MILLER 8 LAKE ARTHUR PDP 0.0000000 0.0238554 30.332 78.864 0.724
<CAPTION>
NET NET DISC NET
LEASE GAS REVENUE REVENUE
- ------------------------------ --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
PIERCE, V. I. 3-2 36.659 41.703 24.336
WHITAKER 25-15 1 23.616 26.714 23.683
BIZETTE 1 13.542 25.236 23.131
RUDDER 29-4 0.000 23.795 22.040
STRAWBRIDGE DW 33-14 1 34.420 26.398 21.907
UNIVERSITY 9-18 -B- 5.336 27.120 21.846
UNIVERSITY 11-18 A-3 15.827 23.315 21.580
KELLY 15-16T 19.944 32.214 21.288
SACROC UNIT 0.000 31.803 20.726
CLIFT 1-4 19.359 42.473 20.724
UNIVERSITY 18-31 4 27.284 24.567 19.711
MCEVERS 19-9 32.716 32.841 19.695
STEINER-SCHWAB 17-5 32.949 25.650 19.676
LOFTIS ESTATE 23-8L 18.527 23.872 18.419
PIERCE-HENDERSON 7-5 32.465 34.174 18.341
TALLY 31-16 1C 18.676 21.984 18.224
NOLEN CHARLES W 35-2 23.757 33.115 18.208
KILHOFFER 1-33 9.752 25.977 18.028
NELLIE 1-16 31.434 18.677 16.690
UNIVERSITY 18-6 3 2.525 18.504 16.665
CAMPBELL 21-13 #3 1.937 18.783 15.981
CLIFT 4-6 10.356 22.610 15.862
STATE TRACT 562-L 0.454 19.021 15.841
DOYLE 34-1 4 1.760 17.911 15.827
BEAVER LODGE-DEVONIAN UNIT 2.559 50.925 15.563
BUTTS J T 1 21.883 19.469 15.350
MILLER 8 1.881 18.362 15.221
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:35
PAGE: 9
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS
LEASE FIELD RES INTEREST INTEREST OIL
- ----------------------------- ----------------------------- ---- --------- --------- ---(MB)---
<S> <C> <C> <C> <C> <C>
BOYD 34-10 DARBUN NORTH (MOORINGSPORT) PDP 0.0000000 0.0040308 2.577
NEWMAN LUMBER 16-3 1 MILITARY GROVE NORTH PDP 0.0431400 0.0341099 0.000
NORTHEAST EDGEWOOD UNIT EDGEWOOD NE (SMACKOVER) PDP 0.0000000 0.0006600 0.000
UNIVERSITY 11-18 A-1 & A-2 WAR-WINK SOUTH (WOLFCAMP) PDP 0.0833000 0.0650695 25.932
FOWLER 14-1 DAVIS CHAPEL PDP 0.0820300 0.0672559 0.000
WALKER, P., ET AL 4 EAST QUITO (CHERRY CANYON) PDP 0.1562451 0.1281016 0.000
CL&F 1 TURTLE BAYOU PDP 0.0315000 0.0221366 0.374
MCCALEB 26-9 BETHEL CHURCH PDP 0.3159400 0.2667900 0.000
HUDDLESTON, C.L. GINGER SE (SMACKOVER) PDP 0.0000000 0.0042679 0.000
WATKINS AIRHART 6-16 FAYETTE SW PDP 0.0350000 0.0245963 0.000
SORENSON 11-13 NNW NW UNION CENTER (MADISON) PDP 0.0000000 0.0297637 35.986
RAY 5-1 MOOREWOOD NE (RED FORK) PDP 0.0000000 0.0193290 21.099
NEWMAN CROWLEY 24-5 1C COAL FIRE CREEK PDP 0.4764000 0.3983100 0.000
HURST MOORE SAMS PDP 0.0247690 0.0170503 21.414
FUTRELL HALLSVILLE NE (PETTIT) PDP 0.1465000 0.1171250 1.096
LOFTIS ESTATE 23-8C MCCRACKEN MTN PDP 0.1387500 0.1135382 0.000
SMITH 28-9* ARMSTRONG BRANCH PDP 0.3500000 0.2664590 0.746
BENTON, ALLEN BEAVERTON PDP 0.0874600 0.0665900 0.000
PIERCE-HENDERSON 8-3 OZONA (CANYON) PDP 0.0000000 0.0228397 0.000
MAYERS F 29-5 MCGEE LAKE PDP 0.0312500 0.0253900 1.068
IRWIN 7-15 1C COAL FIRE CREEK PDP 0.0616900 0.0467332 0.277
UNIVERSITY 18-31 6 QUITO EAST (CHERRY PDP 0.1257782 0.0640807 10.275
SMITH L R 1 BLOOMING GROVE PDP 0.1684400 0.1290930 0.000
BOYTE ROXIE (WILCOX) PDP 0.0000000 0.0381865 19.267
NORRIS ELVIE 29-8 1 FAYETTE WEST PDP 0.1750000 0.1461300 0.000
IRWIN 7-15 2 SW SE COAL FIRE CREEK PDP 0.0616900 0.0467332 0.000
SPARKS 14-3 1T MCCRACKEN MTN PDP 0.0312500 0.0245266 0.000
<CAPTION>
GROSS NET NET NET DISC NET
LEASE GAS OIL GAS REVENUE REVENUE
- ---------------------------- --(MMCF)-- ---(MB)--- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C>
BOYD 34-10 2147.246 0.010 8.655 20.451 14.633
NEWMAN LUMBER 16-3 1 401.287 0.000 13.688 17.879 14.557
NORTHEAST EDGEWOOD UNIT 21096.668 0.000 13.924 22.256 14.469
UNIVERSITY 11-18 A-1 & A-2 86.441 1.687 5.625 16.316 14.015
FOWLER 14-1 336.985 0.000 22.664 20.100 13.892
WALKER, P., ET AL 4 322.128 0.000 41.265 17.985 13.626
CL&F 1 374.406 0.008 8.288 15.355 13.443
MCCALEB 26-9 42.691 0.000 11.389 15.081 13.428
HUDDLESTON, C.L. 2073.870 0.000 8.851 17.292 13.380
WATKINS AIRHART 6-16 865.545 0.000 21.289 26.435 13.108
SORENSON 11-13 NNW NW 71.972 1.071 2.142 23.602 12.930
RAY 5-1 296.235 0.408 5.726 19.502 12.829
NEWMAN CROWLEY 24-5 1C 44.565 0.000 17.751 19.153 12.569
HURST 691.848 0.365 11.796 14.031 12.447
FUTRELL 78.319 0.128 9.173 14.320 11.422
LOFTIS ESTATE 23-8C 111.567 0.000 12.667 14.264 11.399
SMITH 28-9* 41.451 0.199 11.045 12.564 10.764
BENTON, ALLEN 153.263 0.000 10.206 16.987 10.729
PIERCE-HENDERSON 8-3 643.274 0.000 14.692 27.007 10.301
MAYERS F 29-5 533.855 0.027 13.555 14.570 9.178
IRWIN 7-15 1C 276.518 0.013 12.923 11.293 9.087
UNIVERSITY 18-31 6 205.500 0.658 13.169 11.315 9.086
SMITH L R 1 103.559 0.000 13.369 11.144 8.918
BOYTE 0.000 0.736 0.000 13.929 8.888
NORRIS ELVIE 29-8 1 119.771 0.000 17.502 10.611 8.652
IRWIN 7-15 2 SW SE 325.902 0.000 15.230 13.012 8.596
SPARKS 14-3 1T 405.975 0.000 9.957 10.316 8.378
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:50
PAGE: 10
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS
LEASE FIELD RES INTEREST INTEREST OIL
- ----------------------------- ----------------------------- ---- --------- --------- ---(MB)---
<S> <C> <C> <C> <C> <C>
BROWN 1-9 BLOOMING GROVE PDP 0.0935200 0.0740424 0.000
CHADLEY 27-9 DAVIS CHAPEL NE PDP 0.7340300 0.4818400 0.000
KILLINGSWORTH 7-9 NE SE MUSGROVE CREEK PDP 0.1640600 0.1214100 0.000
ANDERS, GRACE 13-15 1T MCCRACKEN MTN PDP 0.1281719 0.1002335 0.000
LEE, T. W. EAST TEXAS PDP 0.0000000 0.0062979 94.053
SISSON OLIVER 29-13 MCGEE LAKE PDP 0.0468800 0.0380900 0.000
PIERCE-HENDERSON 7-3 OZONA (CANYON) PDP 0.0000000 0.0439216 0.000
RAY 5-3 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0193290 0.000
PIERCE, V. I. 9-1 OZONA (CANYON) PDP 0.7500000 0.5709841 0.000
FEENEY HILL GAS UNIT LEATHERMAN CREEK (SMACKOVER) PDP 0.0000000 0.0051983 0.000
AFNU ALABAMA FERRY (GLEN ROSE D) PDP 0.0011540 0.0011132 279.396
PIERCE, V. I. 10-7 OZONA (CANYON) PDP 0.7500000 0.5709841 0.000
PIERCE, V. I. 10-2 OZONA PDP 0.7500000 0.5709841 0.000
ROBERTSON 20-12 1 FERNBANK PDP 0.1109375 0.0882000 0.000
DURR 32-12 #2 ARAPAHOE (MORROW) PDP 0.1200000 0.0876095 11.734
STRITE DARBUN NORTH (TUSCALOOSA LWR) PDP 0.0000000 0.0169718 16.702
RAY 5-2 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0193290 0.000
JOHNSON 30-11 1 MCCRACKEN MTN PDP 0.1059900 0.0857675 0.000
LATHROP -C- ORRI EAST TEXAS PDP 0.0000000 0.0001845 2037.784
ANDERSON 7-2 BALLS BRANCH (MISSISSIPPIAN LE PDP 0.0000000 0.0146403 0.000
MORRISON 36-4M BLOWHORN CREEK PDP 0.6544999 0.4756409 1.125
PIERCE, V. I. 10-6 OZONA PDP 0.0000000 0.0228403 0.000
BUSH DAVID 14-4 1C* COAL FIRE CREEK PDP 0.1769800 0.1548600 0.000
WALKER, P., ET AL 2-L QUITO EAST (ELLENBURGER) PDP 0.1562451 0.1281016 0.000
CLARK RA SU CREOLE NORTH PDP 0.0303100 0.0236300 5.100
TCGU7 (LEOPARD, C.W. 1) TRI-CITIES (TRAVIS PEAK LOWER) PDP 0.0000000 0.0014696 0.000
SMITH, A. EAST TEXAS PDP 0.0000000 0.0023773 99.732
<CAPTION>
GROSS NET NET NET DISC NET
LEASE GAS OIL GAS REVENUE REVENUE
- ---------------------------- --(MMCF)-- ---(MB)--- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C>
BROWN 1-9 165.626 0.000 12.263 11.517 8.328
CHADLEY 27-9 56.696 0.000 27.318 9.274 8.269
KILLINGSWORTH 7-9 NE SE 168.488 0.000 20.456 10.066 8.079
ANDERS, GRACE 13-15 1T 162.442 0.000 16.282 11.108 8.073
LEE, T. W. 23.513 0.592 0.148 11.033 7.051
SISSON OLIVER 29-13 218.360 0.000 8.317 8.436 6.824
PIERCE-HENDERSON 7-3 191.188 0.000 8.397 16.256 6.652
RAY 5-3 264.884 0.000 5.120 11.654 6.505
PIERCE, V. I. 9-1 33.343 0.000 19.038 7.492 6.092
FEENEY HILL GAS UNIT 846.584 0.000 4.401 7.777 5.777
AFNU 502.913 0.311 0.560 6.750 5.774
PIERCE, V. I. 10-7 14.888 0.000 8.501 6.181 5.753
PIERCE, V. I. 10-2 44.066 0.000 25.161 7.085 5.301
ROBERTSON 20-12 1 89.227 0.000 7.870 5.289 4.844
DURR 32-12 #2 0.000 1.028 0.000 5.364 4.601
STRITE 0.000 0.283 0.000 5.620 4.492
RAY 5-2 148.199 0.000 2.865 5.935 4.383
JOHNSON 30-11 1 117.414 0.000 10.070 5.301 4.220
LATHROP -C- ORRI 611.335 0.376 0.113 7.063 4.110
ANDERSON 7-2 160.708 0.000 2.353 5.286 3.914
MORRISON 36-4M 24.949 0.535 11.867 4.364 3.890
PIERCE, V. I. 10-6 166.725 0.000 3.808 7.304 3.602
BUSH DAVID 14-4 1C* 41.991 0.000 6.503 3.796 3.370
WALKER, P., ET AL 2-L 99.207 0.000 12.709 4.038 3.167
CLARK RA SU 145.720 0.121 3.443 3.059 3.023
TCGU7 (LEOPARD, C.W. 1) 1408.811 0.000 2.070 4.891 2.964
SMITH, A. 37.400 0.237 0.089 4.556 2.762
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:36
PAGE: 11
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL GAS
- ----------------------------- ----------------------------- ----- ------- -------- ---(MB)--- ---(MMCF)- ---(MB)- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AFGRD UNIT ALABAMA FERRY (GLEN ROSE D) PDP 0.0004000 0.0003200 1141.446 1312.663 0.365 0.420
TUCKER 9-13 PALMETTO SOUTH (MISSISSIPPIAN PDP 0.0000000 0.0076212 0.000 228.157 0.000 1.739
PIERCE-HENDERSON 7-2 OZONA PDP 0.7500000 0.5709841 0.000 13.298 0.000 7.593
OSR-HALLIDAY UNIT HALLIDAY (WOODBINE) PDP 0.0000000 0.0001643 1395.285 1079.864 0.229 0.177
COBB VICK 2-10 1 NW SE BLOOMING GROVE PDP 0.1027733 0.0880425 0.000 61.648 0.000 5.428
FOWLER 22-14 MUSGROVE CREEK PDP 0.0971200 0.0749400 0.000 97.840 0.000 7.332
SORRELL EAST TEXAS PDP 0.0000000 0.0027524 72.989 21.897 0.201 0.060
GILMER, JUDE 35-7 1 WATSON CREEK EAST PDP 0.0000000 0.0068644 0.000 340.308 0.000 2.336
NOLLAN 6-2 1 NW NE DAVIS CHAPEL NE PDP 0.1250000 0.1024841 0.000 80.256 0.000 8.225
RAY 5-5 MOOREWOOD NE (SKINNER) PDP 0.0000000 0.0193290 0.000 57.764 0.000 1.117
UNIVERSITY 18-29 4 QUITO EAST (CHERRY CANYON) PDP 0.1257782 0.0640807 1.305 87.004 0.084 5.575
DURR 21-12 #1 HARKER RANCH (MORROW) PDP 0.2250000 0.1753100 3.491 0.000 0.612 0.000
LEE, T. W. EAST TEXAS PDP 0.0000000 0.0062979 18.831 0.000 0.119 0.000
PIERCE-HENDERSON 7-4 OZONA (CANYON) PDP 0.0000000 0.0439216 0.000 24.456 0.000 1.074
ANDERS, GRACE 13-15 1C MCCRACKEN MTN PDP 0.0534500 0.0428300 0.000 71.802 0.000 3.075
RANDOLPH 25-13 1C BETHEL CHURCH PDP 0.0166906 0.0136842 0.000 158.909 0.000 2.175
LEE -B- GAS UNIT 1-C WILLOW SPRINGS (HENDERSON) PDP 0.0000000 0.0020803 0.000 585.788 0.000 1.219
UNIVERSITY 1018 'B' BLOCK 18 (CHERRY CANYON) PDP 0.1052000 0.0833444 4.486 6.630 0.374 0.553
BLOWHORN CREEK, NORTH UNIT BLOWHORN CREEK NORTH PDP 0.0191300 0.0145243 81.106 0.000 1.178 0.000
BERGERON 5 MOORE SAMS PDP 0.0119370 0.0086892 4.063 162.510 0.035 1.412
FOWLER 2-12 DAVIS CHAPEL PDP 0.0258400 0.0226100 0.000 120.745 0.000 2.730
JOHNSON 36-6 1 SE NW DAVIS CHAPEL NE PDP 0.0213900 0.0158937 0.000 117.776 0.000 1.872
HAMMOND 13-13 1 COAL FIRE CREEK PDP 0.0000000 0.0350466 0.000 15.185 0.000 0.532
FOWLER, JULIA SIZEMORE 6-16 #1 BLUFF PDP 0.0350000 0.0306300 5.485 0.000 0.168 0.000
STRAWBRIDGE R H 9-2 2 LITTLE HELLS CREEK PDP 0.0306300 0.0239300 0.000 81.961 0.000 1.961
LEE GAS UNIT B-6 WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0003011 0.000 1374.976 0.000 0.414
WELLS GAS UNIT 2-T WASKOM PDP 0.2062200 0.1690700 0.167 16.661 0.028 2.817
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- ------------------------------- ---(M$)--- @10.00% M$
<S> <C> <C>
AFGRD UNIT 2.912 2.712
TUCKER 9-13 4.593 2.683
PIERCE-HENDERSON 7-2 3.194 2.560
OSR-HALLIDAY UNIT 4.493 2.507
COBB VICK 2-10 1 NW SE 2.914 2.453
FOWLER 22-14 2.739 2.372
SORRELL 3.757 2.316
GILMER, JUDE 35-7 1 4.308 2.022
NOLLAN 6-2 1 NW NE 2.315 2.013
RAY 5-5 2.282 1.929
UNIVERSITY 18-29 4 2.006 1.876
DURR 21-12 #1 1.947 1.866
LEE, T. W. 2.155 1.637
PIERCE-HENDERSON 7-4 2.060 1.538
ANDERS, GRACE 13-15 1C 2.032 1.490
RANDOLPH 25-13 1C 1.652 1.378
LEE -B- GAS UNIT 1-C 2.879 1.369
UNIVERSITY 1018 'B' 1.293 1.264
BLOWHORN CREEK, NORTH UNIT 1.151 1.117
BERGERON 5 1.083 1.059
FOWLER 2-12 1.304 1.021
JOHNSON 36-6 1 SE NW 1.196 0.992
HAMMOND 13-13 1 1.036 0.971
FOWLER, JULIA SIZEMORE 6-16 # 1.013 0.946
STRAWBRIDGE R H 9-2 2 0.807 0.656
LEE GAS UNIT B-6 0.882 0.589
WELLS GAS UNIT 2-T 0.580 0.547
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:37
PAGE: 12
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL GAS
- ----------------------------- ----------------------------- ---- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOWLER 11-4 NW NW DAVIS CHAPEL PDP 0.0519500 0.0454600 0.000 51.479 0.000 2.340
PIERCE, V. I. 10-3 OZONA PDP 0.7500000 0.5709841 0.000 8.210 0.000 4.687
LEE GAS UNIT B-5 WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0003011 0.000 1022.655 0.000 0.308
STEINER-SCHWAB 17-13 BOXES CREEK PDP 0.1004297 0.0817908 0.000 22.167 0.000 1.813
LATHROP, F. K. 1 EAST TEXAS PDP 0.0000000 0.0001845 220.220 66.066 0.041 0.012
FULLERTON 25-13 MUSGROVE CREEK PDP 0.0244700 0.0213900 0.000 62.516 0.000 1.337
BEAVER LODGE-MADISON UNIT BEAVER LODGE (MADISON) PDP 0.0000000 0.0000300 1969.999 6303.996 0.059 0.189
WELLS 1-28 NW GOLDEN TREND (HNTN-SCMR-WDFD) PDP 0.0000000 0.0027751 1.733 57.773 0.005 0.160
LEE GAS UNIT B-4 WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0003011 0.000 645.389 0.000 0.194
LEE GAS UNIT B-3 WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0003011 0.000 665.514 0.000 0.200
WAYSIDE OIL UNIT SE NW WAYSIDE PDP 0.0015900 0.0010155 73.414 8.956 0.075 0.009
LATHROP, F.K. GAS UNIT 5 WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0003011 0.000 376.302 0.000 0.113
CHANDLER MARTINS MILL (RODESSA 8250) PDP 0.0000000 0.0033120 1.253 24.384 0.004 0.081
PLACID 1 CARTERVILLE NORTH PDP 0.1773600 0.1163300 0.447 5.588 0.052 0.650
KILLINGSWORTH B-3 WILLOW SPRINGS WEST (TRAVIS PE PDP 0.0000000 0.0003011 3.775 377.510 0.001 0.114
HARRISON, P.D. E G.U. WILLOW SPRINGS WEST (TRAVIS PE PDP 0.0000000 0.0003011 3.665 305.393 0.001 0.092
LATHROP -B- EAST TEXAS PDP 0.0000000 0.0001845 76.695 0.080 0.014 0.000
LATHROP, F.K. GU #2-ORRI WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0001308 6.039 805.200 0.001 0.105
DURR 12-12 #3 HARKER RANCH (MORROW) PDP 0.1800000 0.1338739 0.859 1.203 0.115 0.161
PECOS FOODS 35-11 1 NE SW COAL FIRE CREEK PDP 0.0129100 0.0103768 0.000 35.126 0.000 0.364
LEE -G- WILLOW SPRINGS-MACKEY (TRAVIS PDP 0.0000000 0.0003011 15.217 115.646 0.005 0.035
OPELIKA GAS UNIT* OPELIKA PDP 0.0000000 0.0000646 0.000 1115.021 0.000 0.072
GILLIAM CAUDILL NE PDP 0.5000000 0.3776586 0.397 0.634 0.150 0.240
LATHROP, F.K. GAS UNIT 4 WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0001308 0.000 307.188 0.000 0.040
RODGERS, E. 25-1 1 MCGEE LAKE PDP 0.0194300 0.0138739 0.336 22.375 0.005 0.310
PIERCE, V. I. 2-2 OZONA (CANYON) PDP 0.7500001 0.5709841 0.000 2.200 0.000 1.256
PIERCE, V. I. 9-3 OZONA (CANYON) PDP 0.7500001 0.5709841 0.000 2.200 0.000 1.256
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- --------------------------- ---(M$)--- @10.00% M$
<S> <C> <C>
FOWLER 11-4 NW NW 0.589 0.541
PIERCE, V. I. 10-3 0.553 0.519
LEE GAS UNIT B-5 0.656 0.477
STEINER-SCHWAB 17-13 0.472 0.454
LATHROP, F. K. 1 0.724 0.426
FULLERTON 25-13 0.469 0.422
BEAVER LODGE-MADISON UNIT 1.295 0.417
WELLS 1-28 NW 0.453 0.406
LEE GAS UNIT B-4 0.414 0.306
LEE GAS UNIT B-3 0.427 0.291
WAYSIDE OIL UNIT SE NW 0.232 0.215
LATHROP, F.K. GAS UNIT 5 0.247 0.213
CHANDLER 0.246 0.211
PLACID 1 0.205 0.202
KILLINGSWORTH B-3 0.256 0.200
HARRISON, P.D. E G.U. 0.216 0.188
LATHROP -B- 0.256 0.175
LATHROP, F.K. GU #2-ORRI 0.243 0.171
DURR 12-12 #3 0.129 0.128
PECOS FOODS 35-11 1 NE SW 0.132 0.119
LEE -G- 0.166 0.082
OPELIKA GAS UNIT* 0.159 0.079
GILLIAM 0.076 0.076
LATHROP, F.K. GAS UNIT 4 0.087 0.074
RODGERS, E. 25-1 1 0.055 0.053
PIERCE, V. I. 2-2 0.047 0.046
PIERCE, V. I. 9-3 0.047 0.046
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:38
PAGE: 13
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ----------------------------- ----------------------------- --- -------- -------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
PIERCE-HENDERSON 7A-1 OZONA PDP 0.7500000 0.5709841 0.000 1.455 0.000
LATHROP, F.K. GAS UNIT WILLOW SPRINGS (COTTON VALLEY PDP 0.0000000 0.0001188 0.000 137.525 0.000
HARRISON -C- 1-T WILLOW SPRINGS (HENDERSON) PDP 0.0000000 0.0000642 0.000 234.786 0.000
ATIC 18-13 1 SW SW HUXFORD EAST PDP 0.1000000 0.0632475 1.789 1.133 0.113
MORRISON 35-1C BLOWHORN CREEK PDP 0.0869500 0.0726100 0.000 3.121 0.000
MORRISON 35-1M BLOWHORN CREEK PDP 0.0869500 0.0726100 0.000 1.358 0.000
HARRISON -C- 1-C WILLOW SPRINGS (RODESSA) PDP 0.0000000 0.0000642 0.000 140.412 0.000
KILLINGSWORTH B-4 WILLOW SPRINGS WEST (TRAVIS PE PDP 0.0000000 0.0000149 3.018 215.556 0.000
ALLEN, J.H. #1 CROW PDP 0.7916666 0.6141437 0.000 0.000 0.000
ATKINSON CHAS-FED LD BK 1-17 BLUFF PDP 0.0082000 0.0067254 0.000 0.000 0.000
BERRY 8-10 BLOOMING GROVE PDP 0.0992200 0.0807200 0.000 0.000 0.000
BIZETTE 2 MOORE SAMS PDP 0.0133904 0.0111348 0.000 0.000 0.000
BLACK 1-3 ICONIUM NW PDP 1.0000000 0.8613300 0.000 0.000 0.000
BOMAN 34-8 WATSON CREEK PDP 0.3585938 0.2746611 0.000 0.000 0.000
BRASS WILDCAT PDP 0.0100000 0.7425693 0.000 0.000 0.000
BROOKHAVEN FIELD UNIT BROOKHAVEN (TUSCALOOSA LWR) PDP O.OOOOOOO 0.0006973 0.000 0.000 0.000
BROWN NELL 7-3 NE NW BLOOMING GROVE PDP 0.0437540 0.0371600 0.000 0.000 0.000
BRYAN CV UNIT 10 BRYAN PDP 0.1457800 0.1246970 0.000 0.000 0.000
BRYAN CV UNIT 8 BRYAN PDP 0.1300400 0.1044914 0.000 0.000 0.000
COBB 12-9 COAL FIRE CREEK PDP 0.2548438 0.1929220 0.000 0.000 0.000
CURET MOORE-SAMS PDP 0.0021930 0.0015367 0.000 0.000 0.000
DEVILLE 1 MOORE-SAMS PDP 0.0021490 0.0015900 0.000 0.000 0.000
FOWLER 26-13 1 SW SW DAVIS CHAPEL NE PDP 0.1531300 0.1158168 0.000 0.000 0.000
FOWLER 9-6 DAVIS CHAPEL PDP 0.0229700 0.0140000 0.000 0.000 0.000
HARKINS-STANLEY UNIT 1 FAYETTE WEST PDP 0.1024500 0.0758100 0.000 0.000 0.000
JACKSON BARNETT SE CUSHING (BARTLESVILLE) PDP 1.0000000 0.8750000 0.000 0.000 0.000
JONES JIMMY RAY 7-7 BLUFF PDP 0.0546900 0.0379191 0.000 0.000 0.000
<CAPTION>
NET NET DISC NET
LEASE FIELD GAS REVENUE REVENUE
- ----------------------------- --------------------------- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
PIERCE-HENDERSON 7A-1 OZONA 0.831 0.041 0.040
LATHROP, F.K. GAS UNIT WILLOW SPRINGS (COTTON VALLEY 0.016 0.035 0.032
HARRISON -C- 1-T WILLOW SPRINGS (HENDERSON) 0.015 0.027 0.017
ATIC 18-13 1 SW SW HUXFORD EAST 0.072 0.015 0.015
MORRISON 35-1C BLOWHORN CREEK 0.227 0.014 0.014
MORRISON 35-1M BLOWHORN CREEK 0.099 0.012 0.011
HARRISON -C- 1-C WILLOW SPRINGS (RODESSA) 0.009 0.016 0.011
KILLINGSWORTH B-4 WILLOW SPRINGS WEST (TRAVIS PE 0.003 0.007 0.006
ALLEN, J.H. #1 CROW 0.000 0.000 0.000
ATKINSON CHAS-FED LD BK 1-17 BLUFF 0.000 0.000 0.000
BERRY 8-10 BLOOMING GROVE 0.000 0.000 0.000
BIZETTE 2 MOORE SAMS 0.000 0.000 0.000
BLACK 1-3 ICONIUM NW 0.000 0.000 0.000
BOMAN 34-8 WATSON CREEK 0.000 0.000 0.000
BRASS WILDCAT 0.000 0.000 0.000
BROOKHAVEN FIELD UNIT BROOKHAVEN (TUSCALOOSA LWR) 0.000 0.000 0.000
BROWN NELL 7-3 NE NW BLOOMING GROVE 0.000 0.000 0.000
BRYAN CV UNIT 10 BRYAN 0.000 0.000 0.000
BRYAN CV UNIT 8 BRYAN 0.000 0.000 0.000
COBB 12-9 COAL FIRE CREEK 0.000 0.000 0.000
CURET MOORE-SAMS 0.000 0.000 0.000
DEVILLE 1 MOORE-SAMS 0.000 0.000 0.000
FOWLER 26-13 1 SW SW DAVIS CHAPEL NE 0.000 0.000 0.000
FOWLER 9-6 DAVIS CHAPEL 0.000 0.000 0.000
HARKINS-STANLEY UNIT 1 FAYETTE WEST 0.000 0.000 0.000
JACKSON BARNETT SE CUSHING (BARTLESVILLE) 0.000 0.000 0.000
JONES JIMMY RAY 7-7 BLUFF 0.000 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:39
PAGE: 14
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTERST OIL GAS OIL GAS
- ------------------------ ------------------------------ --- -------- -------- --(MB)-- --(MMCF)-- --(MB)-- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
KILLINGSWORTH 8-13 SW SW MUSGROVE CREEK PDP 0.1373700 0.1024800 0.000 0.000 0.000 0.000
LITTLE WHIT #1 BIG WHIT (WOLFCAMP) PDP 0.2500000 0.1756875 0.000 0.000 0.000 0.000
MARTIN KANSAS HUGOTON PDP 0.5843750 0.4538550 0.000 0.000 0.000 0.000
MASCHO NENESW CUSHING (BARTLESVILLE) PDP 0.9375000 0.8203125 0.000 0.000 0.000 0.000
MCDONALD 36-13 M CORINTH PDP 0.6544999 0.4756409 0.000 0.000 0.000 0.000
MORRISON 36-4C BLOWHORN CREEK PDP 0.6545000 0.4756409 0.000 0.000 0.000 0.000
PIERCE, V. I. 10-1 OZONA PDP 0.7500000 0.5709841 0.000 0.000 0.000 0.000
PIERCE, V. I. 10-4 OZONA (CANYON) PDP 0.7500001 0.5709841 0.000 0.000 0.000 0.000
PIERCE-HENDERSON 8-2 OZONA (CANYON) PDP 0.0000000 0.0439216 0.000 0.000 0.000 0.000
ROSENBLATT BELMONT LAKE (WALKER) PDP 0.0054800 0.0045000 0.000 0.000 0.000 0.000
SARKEY FDN UN 3 KINTA PDP 0.2500000 0.2187500 0.000 0.000 0.000 0.000
SOSO FIELD UNIT 28-5 SOSO (RODESSA 11151) PDP 0.0000000 0.0002650 0.000 0.000 0.000 0.000
UNIVERSITY 10-18 B-2 & B-4 WAR-WINK S-WOLFCAMP PDP 0.0833000 0.0650695 0.000 0.000 0.000 0.000
UNIVERSITY 18-31 1 QUITO EAST (CHERRY CANYON) PDP 0.1257782 0.0640807 0.000 0.000 0.000 0.000
UNIVERSITY 18-31 3 EAST QUITO (CHERRY CANYON) PDP 0.1257782 0.0640807 0.000 0.000 0.000 0.000
UNIVERSITY 18-6 2-U WAR-WINK SOUTH (FUSSELMAN) PDP 0.2900000 0.2377637 0.000 0.000 0.000 0.000
UNIVERSITY 22-18 B-1 WAR-WINK SOUTH (WOLFCAMP) PDP 0.1176470 0.0918627 0.000 0.000 0.000 0.000
UNIVERSITY 24-18 A-1 WAR-WINK SOUTH (WOLFCAMP) PDP 0.0833333 0.0650695 0.000 0.000 0.000 0.000
WEYERHAEUSER 17-2 NW NE BLUFF PDP 0.0082000 0.0067254 0.000 0.000 0.000 0.000
TOTAL RES: A 81637.283 536751.954 4044.497 21298.170
LONGENBAUGH BON AIR PDNP 0.9688200 0.7489600 118.637 95.716 88.854 71.688
GAY UNION FIELD TOTAL - PDNP BAYOU CHOCTAW PDNP 1.0000000 0.8003501 35.810 364.453 28.660 291.690
CLARK RA SU -PDNP CREOLE NORTH PDNP 0.0303100 0.0236300 413.835 7375.459 9.779 174.282
GILLIAM #1 - PDNP CAUDILL NE PDNP 0.5000000 0.3776599 22.643 0.000 8.551 0.000
<CAPTION>
NET DISC NET
LEASE FIELD REVENUE REVENUE
- ------------------------ ------------------------------ --(M$)-- @10.00% M$
<S> <C> <C> <C>
KILLINGSWORTH 8-13 SW SW MUSGROVE CREEK 0.000 0.000
LITTLE WHIT #1 BIG WHIT (WOLFCAMP) 0.000 0.000
MARTIN KANSAS HUGOTON 0.000 0.000
MASCHO NENESW CUSHING (BARTLESVILLE) 0.000 0.000
MCDONALD 36-13 M CORINTH 0.000 0.000
MORRISON 36-4C BLOWHORN CREEK 0.000 0.000
PIERCE, V. I. 10-1 OZONA 0.000 0.000
PIERCE, V. I. 10-4 OZONA (CANYON) 0.000 0.000
PIERCE-HENDERSON 8-2 OZONA (CANYON) 0.000 0.000
ROSENBLATT BELMONT LAKE (WALKER) 0.000 0.000
SARKEY FDN UN 3 KINTA 0.000 0.000
SOSO FIELD UNIT 28-5 SOSO (RODESSA 11151) 0.000 0.000
UNIVERSITY 10-18 B-2 & B-4 WAR-WINK S-WOLFCAMP 0.000 0.000
UNIVERSITY 18-31 1 QUITO EAST (CHERRY CANYON) 0.000 0.000
UNIVERSITY 18-31 3 EAST QUITO (CHERRY CANYON) 0.000 0.000
UNIVERSITY 18-6 2-U WAR-WINK SOUTH (FUSSELMAN) 0.000 0.000
UNIVERSITY 22-18 B-1 WAR-WINK SOUTH (WOLFCAMP) 0.000 0.000
UNIVERSITY 24-18 A-1 WAR-WINK SOUTH (WOLFCAMP) 0.000 0.000
WEYERHAEUSER 17-2 NW NE BLUFF 0.000 0.000
TOTAL RES: A 69045.692 40342.926
LONGENBAUGH BON AIR 904.318 571.802
GAY UNION FIELD TOTAL - PDNP BAYOU CHOCTAW 627.752 542.145
CLARK RA SU -PDNP CREOLE NORTH 428.655 313.897
GILLIAM #1 - PDNP CAUDILL NE 64.491 36.319
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:39
PAGE: 15
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ----------------------------- ------------------------ ---- ------- ------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
GRIMSLEY A M 1 BLOOMING GROVE PDNP 0.3501000 0.2851200 0.000 145.525 0.000
BARNES EST 1 BLOOMING GROVE PDNP 0.3501000 0.2919800 0.000 138.761 0.000
WHITLEY S L 1 BLOOMING GROVE PDNP 0.2360300 0.1997500 0.000 78.775 0.000
HODO 31-15 1 SW SE MOUNT CARMEL PDNP 0.1039000 0.0795535 0.000 151.352 0.000
BROWN N P 1 BLOOMING GROVE PDNP 0.4313000 0.3022900 0.000 49.722 0.000
HIGGINS JIMMY 7-15 BLOOMING GROVE PDNP 0.2512500 0.1720776 0.000 93.765 0.000
BACCUS 13-16 HEARTLINE PDNP 0.0218700 0.0191400 0.000 0.000 0.000
TOTAL RES: B1 590.925 8493.528 135.844
PEOC-NVG 41-23H PDBP WOLF MOUNTAIN PDBP 0.8071900 0.5941400 657.840 0.000 390.849
HOWLING WOMAN #1-23 PDBP ELM GROVE PDBP 0.4000000 0.3159934 0.000 2569.087 0.000
DALLAS 5-4 BP BALLS BRANCH PDBP 0.9166719 0.7515562 0.000 600.000 0.000
MILLIE 2-20 BP PUTNAM PDBP 0.7499999 0.6562500 0.000 572.697 0.000
COVINGTON #1 - PDBP PERRIN NORTH AFB PDBP 0.8514999 0.6981237 40.000 110.000 27.925
MORRISON 36-4M BP BLOWHORN CREEK PDBP 0.6544999 0.4756409 0.000 650.000 0.000
PLACID 1 - BP CARTERVILLE N PDBP 0.1773600 0.1163300 149.925 1499.252 17.441
CUNNINGHAM 16-7 BP COAL FIRE CREEK PDBP 0.2013218 0.1621556 0.000 2000.000 0.000
SCRUGGS 15-10 BP SHANNON EAST PDBP 1.0000000 0.7565848 0.000 800.000 0.000
ANDERSON 14-12 1-E BP NETTLETON NORTH PDBP 1.0000000 0.7695140 0.000 425.000 0.000
BOMAN 34-8 BP WATSON CREEK PDBP 0.3585938 0.2746611 0.000 650.000 0.000
FARNED, LILLIAN P. 1-U BP BACON PDBP 0.6210812 0.4670064 0.000 349.503 0.000
GAY UNION #37 - BP2 BAYOU CHOCTAW PDBP 1.0000000 0.8003500 24.907 24.907 19.935
SMITH NO 1-34 PDBP ICONIUM NW PDBP 1.0000000 0.7625996 19.505 97.525 14.874
BUSH 14-15C BP COAL FIRE CREEK PDBP 0.2830855 0.2476998 0.000 500.000 0.000
AMC 14-15 BP MCCRACKEN MOUNTAIN PDBP 0.3581299 0.3046100 0.000 450.000 0.000
<CAPTION>
NET NET DISC NET
LEASE GAS REVENUE REVENUE
- ----------------------------- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
GRIMSLEY A M 1 41.492 40.421 30.354
BARNES EST 1 40.515 36.496 28.092
WHITLEY S L 1 15.735 12.679 10.402
HODO 31-15 1 SW SE 12.041 9.807 7.984
BROWN N P 1 15.031 8.803 7.664
HIGGINS JIMMY 7-15 16.135 9.134 7.278
BACCUS 13-16 0.000 0.000 0.000
TOTAL RES: B1 678.609 2142.556 1555.937
PEOC-NVG 41-23H PDBP 0.000 6503.396 1231.589
HOWLING WOMAN #1-23 PDBP 811.815 1837.097 1002.746
DALLAS 5-4 BP 450.934 1064.947 631.734
MILLIE 2-20 BP 375.832 756.285 592.812
COVINGTON #1 - PDBP 76.794 585.490 383.360
MORRISON 36-4M BP 309.167 615.068 376.581
PLACID 1 - BP 174.408 572.814 350.340
CUNNINGHAM 16-7 BP 324.311 754.592 304.179
SCRUGGS 15-10 BP 605.268 1312.677 299.861
ANDERSON 14-12 1-E BP 327.043 756.938 268.637
BOMAN 34-8 BP 178.530 343.939 258.517
FARNED, LILLIAN P. 1-U BP 163.220 316.360 222.281
GAY UNION #37 - BP2 19.935 272.127 221.577
SMITH NO 1-34 PDBP 74.372 374.620 217.657
BUSH 14-15C BP 123.850 287.983 215.563
AMC 14-15 BP 137.075 290.782 199.215
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:40
PAGE: 16
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL
- ----------------------------- ----------------------------- ---- ------- ------- ---(MB)--- --(MMCF)-- ---(MB)---
<S> <C> <C> <C> <C> <C> <C> <C>
S. CARLTON (DAVIES 5) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
S. CARLTON (SCOTT 15-14) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
S. CARLTON (SCOTT 9-9) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
S. CARLTON (BARBOUR 16-7) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
S. CARLTON (OSWELL 11-12) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
S. CARLTON (SCOTT 11-11) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
S. CARLTON (SCOTT 11-6) SOUTH CARLTON PDBP 1.0000000 0.7766000 40.622 0.000 31.547
GRAVLEE 13-12 1 BP MCCRACKEN MOUNTAIN PDBP 0.6296200 0.4610814 0.000 188.166 0.000
MCCALEB 26-9 BP BETHEL CHURCH PDBP 0.3159400 0.2667900 0.000 324.737 0.000
BARNES EST 1 BP BLOOMING GROVE PDBP 0.3501000 0.2919800 0.000 250.000 0.000
TALLY 31-16 1C BP BALLS BRANCH PDBP 0.8869788 0.5934365 0.000 250.000 0.000
BLACK 1-3 PDBP ICONIUM NW PDBP 1.0000000 0.8613300 14.555 101.882 12.536
MURPHY-RANDOLPH 1 BP BLOOMING GROVE PDBP 0.5140625 0.3940000 0.000 125.000 0.000
GRIMSLEY A M 2 BP BLOOMING GROVE PDBP 0.2500000 0.2066900 0.000 300.000 0.000
GAY UNION #37 - BP3 BAYOU CHOCTAW PDBP 1.0000000 0.8003500 14.950 14.950 11.965
BROWN N P 1 BP BLOOMING GROVE PDBP 0.4313000 0.3022900 0.000 299.602 0.000
CUNNINGHAM 16-7 BP2 COAL FIRE CREEK PDBP 0.2013218 0.1621556 0.000 849.301 0.000
BOZEMAN 27-15 BP MCCRACKEN MOUNTAIN PDBP 0.2260800 0.1921400 0.000 250.000 0.000
GAY UNION #37 - BP5 BAYOU CHOCTAW PDBP 1.0000000 0.8003500 17.962 17.962 14.376
GAY UNION #37 - BP4 BAYOU CHOCTAW PDBP 1.0000000 0.8003500 14.950 14.950 11.965
GAY UNION #37 - BP1 BAYOU CHOCTAW PDBP 1.0000000 0.8003500 9.897 9.897 7.921
WHITAKER 25-15 1 BP BETHEL CHURCH PDBP 0.2843800 0.2371000 0.000 249.501 0.000
FARNED, LILLIAN P. 1-U BP2 BACON PDBP 0.6210812 0.4670064 0.000 249.409 0.000
HIGGINS JIMMY 7-15 BP BLOOMING GROVE PDBP 0.2512500 0.1720776 0.000 499.673 0.000
FLANAGAN 2-30 PDBP SICKLES NORTH PDBP 0.3246250 0.2492804 0.000 1000.000 0.000
CUNNINGHAM 16-7 BP3 COAL FIRE CREEK PDBP 0.2013218 0.1621556 0.000 299.492 0.000
GAULT, SARAH 3-5 PDBP PARSLEY PDBP 0.5000000 0.3666600 29.982 59.963 10.993
<CAPTION>
NET NET DISC NET
LEASE GAS REVENUE REVENUE
- ------------------------------- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
S. CARLTON (DAVIES 5) 0.000 370.582 181.705
S. CARLTON (SCOTT 15-14) 0.000 370.582 180.268
S. CARLTON (SCOTT 9-9) 0.000 370.582 178.842
S. CARLTON (BARBOUR 16-7) 0.000 370.582 177.427
S. CARLTON (OSWELL 11-12) 0.000 370.582 176.023
S. CARLTON (SCOTT 11-11) 0.000 370.582 176.023
S. CARLTON (SCOTT 11-6) 0.000 370.582 174.631
GRAVLEE 13-12 1 BP 86.760 207.147 139.673
MCCALEB 26-9 BP 86.637 173.173 135.618
BARNES EST 1 BP 72.995 161.904 127.754
TALLY 31-16 1C BP 148.359 303.931 123.988
BLACK 1-3 PDBP 87.754 170.346 123.816
MURPHY-RANDOLPH 1 BP 49.250 107.648 94.557
GRIMSLEY A M 2 BP 62.007 130.286 93.265
GAY UNION #37 - BP3 11.965 128.958 84.598
BROWN N P 1 BP 90.567 148.959 84.344
CUNNINGHAM 16-7 BP2 137.719 284.353 82.138
BOZEMAN 27-15 BP 48.035 104.748 79.005
GAY UNION #37 - BP5 14.376 169.897 77.319
GAY UNION #37 - BP4 11.965 128.958 70.473
GAY UNION #37 - BP1 7.921 74.221 68.950
WHITAKER 25-15 1 BP 59.157 90.268 62.898
FARNED, LILLIAN P. 1-U BP2 116.475 169.860 57.973
HIGGINS JIMMY 7-15 BP 85.982 142.234 53.256
FLANAGAN 2-30 PDBP 249.280 558.249 28.669
CUNNINGHAM 16-7 BP3 48.564 69.598 8.389
GAULT, SARAH 3-5 PDBP 21.986 25.330 8.168
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:41
PAGE: 17
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE
LEASE FIELD RES INTEREST INTEREST
- ----------------------------------- ------------------------ ---- ------- -------
<S> <C> <C> <C> <C>
MCDONALD 36-13 BP CORINTH PDBP 0.6544999 0.4756409
SMITH L R 1 BP BLOOMING GROVE PDBP 0.1684400 0.1290930
GAULT, SARAH 1-5 PDBP PARSLEY PDBP 0.5000000 0.3666600
TOTAL RES: B2
BRUMFIELD #B-22 PUD TINSLEY PUD 1.0000000 0.7651675
UNIVERSITY 18-29 #2 PUD WAR-WINK SOUTH PUD 0.1318000 0.0941000
UNIVERSITY 18-29 #5 PUD WAR-WINK SOUTH PUD 0.1318000 0.0941000
UNIVERSITY 18-29 #7 PUD WAR-WINK SOUTH PUD 0.1318000 0.0941000
UNIVERSITY 10-18 #A-6 -PUD WAR-WINK SOUTH PUD 0.1000000 0.0780000
UNIVERSITY 10-18 #A-7-PUD WAR-WINK SOUTH PUD 0.1000000 0.0780000
UNIVERSITY 10-18 #B-8-PUD WAR-WINK SOUTH PUD 0.1000000 0.0750000
S. CARLTON - LOC 01 PUD 1.0000000 0.7766000
S. CARLTON - LOC 02 PUD 1.0000000 0.7766000
S. CARLTON - LOC 03 PUD 1.0000000 0.7766000
S. CARLTON - LOC 04 PUD 1.0000000 0.7766000
S. CARLTON - LOC 05 PUD 1.0000000 0.7766000
S. CARLTON - LOC 06 PUD 1.0000000 0.7766000
S. CARLTON - LOC 07 PUD 1.0000000 0.7766000
S. CARLTON - LOC 08 PUD 1.0000000 0.7766000
S. CARLTON - LOC 09 PUD 1.0000000 0.7766000
S. CARLTON - LOC 10 PUD 1.0000000 0.7766000
S. CARLTON - LOC 11 PUD 1.0000000 0.7766000
S. CARLTON - LOC 12 PUD 1.0000000 0.7766000
S. CARLTON - LOC 13 PUD 1.0000000 0.7766000
<CAPTION>
GROSS GROSS NET NET NET DISC NET
LEASE OIL GAS OIL GAS REVENUE REVENUE
- ----------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C> <C>
MCDONALD 36-13 BP 0.000 200.000 0.000 95.128 137.928 7.941
SMITH L R 1 BP 0.000 99.147 0.000 12.799 16.916 7.094
GAULT, SARAH 1-5 PDBP 29.982 59.963 10.993 21.986 25.330 0.468
TOTAL RES: B2 1308.809 17011.566 772.602 5780.221 22769.431 9641.922
BRUMFIELD #B-22 PUD 184.094 0.000 140.862 0.000 1462.820 723.798
UNIVERSITY 18-29 #2 PUD 30.000 808.773 2.823 76.105 141.956 93.334
UNIVERSITY 18-29 #5 PUD 30.000 799.461 2.823 75.229 141.863 91.832
UNIVERSITY 18-29 #7 PUD 30.000 799.461 2.823 75.229 141.863 90.385
UNIVERSITY 10-18 #A-6 -PUD 29.993 817.248 2.339 63.745 122.365 90.004
UNIVERSITY 10-18 #A-7-PUD 29.993 817.248 2.339 63.745 122.365 88.586
UNIVERSITY 10-18 #B-8-PUD 29.992 813.953 2.249 61.046 114.963 83.771
S. CARLTON - LOC 01 100.106 0.000 77.743 0.000 349.884 46.201
S. CARLTON - LOC 02 100.106 0.000 77.743 0.000 349.884 45.836
S. CARLTON - LOC 03 100.106 0.000 77.743 0.000 349.884 45.473
S. CARLTON - LOC 04 100.106 0.000 77.743 0.000 349.884 45.113
S. CARLTON - LOC 05 100.106 0.000 77.743 0.000 349.884 44.757
S. CARLTON - LOC 06 100.106 0.000 77.743 0.000 349.884 44.402
S. CARLTON - LOC 07 100.106 0.000 77.743 0.000 349.884 44.051
S. CARLTON - LOC 08 100.106 0.000 77.743 0.000 349.884 43.703
S. CARLTON - LOC 09 100.106 0.000 77.743 0.000 349.884 43.357
S. CARLTON - LOC 10 100.106 0.000 77.743 0.000 349.884 43.014
S. CARLTON - LOC 11 100.106 0.000 77.743 0.000 349.884 42.674
S. CARLTON - LOC 12 100.106 0.000 77.743 0.000 349.884 42.336
S. CARLTON - LOC 13 100.106 0.000 77.743 0.000 349.884 42.001
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:41
PAGE: 18
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE
LEASE FIELD RES INTEREST INTEREST
- ----------------------------------- ------------------------ ---- ------- -------
<S> <C> <C> <C> <C>
S. CARLTON - LOC 14 SOUTH CARLTON PUD 1.0000000 0.7766000
S. CARLTON - LOC 15 SOUTH CARLTON PUD 1.0000000 0.7766000
S. CARLTON - LOC 16 SOUTH CARLTON PUD 1.0000000 0.7766000
TOTAL RES: C
WHITE 8-4 PROB BLOOMING GROVE PRDP 0.6814975 0.5359227
MURPHY-RANDOLPH 1 BP2 BLOOMING GROVE PRDP 0.5140625 0.3940000
BOZEMAN 27-15 PROB MCCRACKEN MOUNTAIN PRDP 0.2260800 0.1921400
KELLY 15-16C (PROB) COAL FIRE CREEK PRDP 0.2384076 0.1770173
TOTAL RES: E
UNIVERSITY 10-18 #B-9 PROBABLE WAR-WINK SOUTH PRU 0.1000000 0.0780000
UNIVERSITY 11-18 #A-4 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 11-18 #B-3 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 11-18 #B-4 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 11-18 #B-5 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 22-18 #A-3 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 23-18 #A-3 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 23-18 #A-4 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 24-18 #2 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 9-18 #A-3 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
UNIVERSITY 9-18 #A-4 PROBABLE WAR-WINK SOUTH PRU 0.0833300 0.0650000
S. CARLTON - LOC 17 PRU 1.0000000 0.7766000
<CAPTION>
GROSS GROSS NET NET NET DISC NET
LEASE OIL GAS OIL GAS REVENUE REVENUE
- ----------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C> <C>
S. CARLTON - LOC 14 100.106 0.000 77.743 0.000 349.884 41.669
S. CARLTON - LOC 15 100.106 0.000 77.743 0.000 349.884 41.339
S. CARLTON - LOC 16 100.106 0.000 77.743 0.000 349.884 41.012
TOTAL RES: C 1965.768 4856.144 1400.146 415.099 7846.339 1958.648
WHITE 8-4 PROB 0.000 497.630 0.000 266.691 417.473 163.110
MURPHY-RANDOLPH 1 BP2 0.000 399.638 0.000 157.457 265.023 156.573
BOZEMAN 27-15 PROB 0.000 100.000 0.000 19.214 23.873 9.530
KELLY 15-16C (PROB) 0.000 750.000 0.000 132.763 259.216 3.356
TOTAL RES: E 0.000 1747.268 0.000 576.125 965.585 332.569
UNIVERSITY 10-18 #B-9 29.993 817.248 2.339 63.745 122.366 87.885
UNIVERSITY 11-18 #A-4 29.993 817.248 1.950 53.121 101.974 72.660
UNIVERSITY 11-18 #B-3 29.993 817.248 1.950 53.121 101.974 72.085
UNIVERSITY 11-18 #B-4 29.993 817.248 1.950 53.121 101.974 71.515
UNIVERSITY 11-18 #B-5 29.993 817.248 1.950 53.121 101.974 70.949
UNIVERSITY 22-18 #A-3 29.993 817.248 1.950 53.121 101.974 70.388
UNIVERSITY 23-18 #A-3 29.993 817.248 1.950 53.121 101.974 69.831
UNIVERSITY 23-18 #A-4 29.993 817.248 1.950 53.121 101.974 69.278
UNIVERSITY 24-18 #2 29.993 817.248 1.950 53.121 101.974 68.730
UNIVERSITY 9-18 #A-3 29.993 817.248 1.950 53.121 101.974 68.186
UNIVERSITY 9-18 #A-4 29.993 817.248 1.950 53.121 101.974 67.647
S. CARLTON - LOC 17 100.106 0.0000 77.743 0.000 349.884 40.688
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:42
PAGE: 19
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL GAS
- ----------------------------- ----------------------------- ---- ------- ------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
S. CARLTON - LOC 18 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 19 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 20 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 21 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 22 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 27 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 24 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 25 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 26 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 29 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
S. CARLTON - LOC 28 SOUTH CARLTON PRU 1.0000000 0.7766000 100.106 0.000 77.743 0.000
TOTAL RES: G 1531.195 8989.728 954.755 594.955
MORRISON 36-4M POSS BLOWHORN CREEK POD 0.6544999 0.4756409 0.000 999.716 0.000 475.506
AMERICAN CAN 11-5 1C BP WOOLBANK CREEK POD 1.0000000 0.7162682 0.000 200.000 0.000 143.254
MCCALEB 26-9 POSS BETHEL CHURCH POD 0.3159400 0.2667900 0.000 500.000 0.000 133.395
MURPHY-RANDOLPH 1 BP3 BLOOMING GROVE POD 0.5140625 0.3940000 0.000 499.277 0.000 196.715
BARNES EST 1 POSS BLOOMING GROVE POD 0.3501000 0.2919800 0.000 499.277 0.000 145.779
GRIMSLEY A M 2 POSS BLOOMING GROVE POD 0.2500000 0.2066900 0.000 499.277 0.000 103.195
BERRY 8-10 POSS BLOOMING GROVE POD 0.0992200 0.0807200 0.000 599.941 0.000 48.427
AMC 14-15 BP MCCRACKEN MOUNTAIN POD 0.3581300 0.3046100 0.000 674.515 0.000 205.464
SMITH 5-8 BP LINEBARGER CREEK POD 0.8968732 0.6443064 0.000 249.565 0.000 160.796
BUSH 14-15C POSS COAL FIRE CREEK POD 0.2830855 0.2476998 0.000 250.000 0.000 61.925
MORRISON 35-1M BP BLOWHORN CREEK POD 0.0869500 0.0726100 0.000 350.000 0.000 25.414
NEWMAN CROWLEY 24-5 1T BP COAL FIRE CREEK POD 0.4889102 0.4088548 0.000 200.000 0.000 81.771
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- ----------------------------- ---(M$)--- @10.00% M$
<S> <C> <C>
S. CARLTON - LOC 18 349.884 40.366
S. CARLTON - LOC 19 349.884 40.047
S. CARLTON - LOC 20 349.884 39.730
S. CARLTON - LOC 21 349.884 39.415
S. CARLTON - LOC 22 349.884 39.104
S. CARLTON - LOC 27 349.884 38.794
S. CARLTON - LOC 24 349.884 38.487
S. CARLTON - LOC 25 349.884 38.183
S. CARLTON - LOC 26 349.884 37.881
S. CARLTON - LOC 29 349.884 37.581
S. CARLTON - LOC 28 349.884 37.284
TOTAL RES: G 5340.714 1256.714
MORRISON 36-4M POSS 1036.359 216.219
AMERICAN CAN 11-5 1C BP 316.008 173.361
MCCALEB 26-9 POSS 276.141 107.305
MURPHY-RANDOLPH 1 BP3 362.608 105.190
BARNES EST 1 POSS 277.826 96.487
GRIMSLEY A M 2 POSS 194.874 74.591
BERRY 8-10 POSS 90.226 66.008
AMC 14-15 BP 367.211 44.099
SMITH 5-8 BP 257.991 43.551
BUSH 14-15C POSS 134.305 42.953
MORRISON 35-1M BP 55.807 38.689
NEWMAN CROWLEY 24-5 1T BP 166.526 24.704
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:51:43
PAGE: 20
LEE KEELING AND ASSOCIATES, INC.
MAXIMUM TO MINIMUM DISCOUNTED NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
WORKING REVENUE GROSS GROSS NET NET
LEASE FIELD RES INTEREST INTEREST OIL GAS OIL GAS
- ----------------------------- ----------------------------- ---- ------- ------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HIGGINS JIMMY 7-15 POSS BLOOMING GROVE POD 0.2512500 0.1720776 0.000 499.277 0.000 85.914
STEINER-SCHWAB 26-5 BP MUSGROVE CREEK POD 0.2935100 0.2229600 0.000 249.409 0.000 55.608
SCRUGGS 15-10 BP2 SHANNON EAST POD 1.0000000 0.7565848 0.000 125.000 0.000 94.573
TOTAL RES: J 0.000 6395.254 0.000 2017.736
BRUMFIELD #B-23 POSS TINSLEY POU 1.0000000 0.7651675 322.628 0.000 246.864 0.000
TOTAL RES: L 322.628 0.000 246.864 0.000
GRAND TOTAL 87356.608 584245.442 7554.708 31360.915
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- ---------------------------- ---(M$)--- @10.00% M$
<S> <C> <C>
HIGGINS JIMMY 7-15 POSS 157.948 22.393
STEINER-SCHWAB 26-5 BP 79.558 17.560
SCRUGGS 15-10 BP2 184.456 11.234
TOTAL RES: J 3957.844 1084.344
BRUMFIELD #B-23 POSS 3219.945 1484.126
TOTAL RES: L 3219.945 1484.126
GRAND TOTAL 115288.106 57657.186
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:39
PAGE: 1
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- -------------------------------- -------- ---------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
AFGRD UNIT PDP ALABAMA FERRY (GLEN ROSE D) 1141.446 1312.663 0.365 0.420
AFNU PDP ALABAMA FERRY (GLEN ROSE D) 279.396 502.913 0.311 0.560
ALLEN, BOBBIE LEE 23-15C PDP BACON 0.000 84.575 0.000 41.547
ALLEN, BOBBIE LEE 23-15T PDP BACON 0.000 63.932 0.000 31.407
ALLEN, J.H. #1 PDP CROW 0.000 0.000 0.000 0.000
ALLEN, J.H. #2 PDP CROW 136.189 278.568 83.640 171.081
ALUM CREEK FIELD TOTAL PDP ALUM CREEK 253.340 111.083 16.637 7.295
AMACKER, V.T. 106-1 PDP AMACKER-TIPPETT 67.808 4676.392 0.343 23.662
AMC 14-15 1L PDP MCCRACKEN MOUNTAIN 0.000 200.551 0.000 61.090
AMC 14-15 1M PDP MCCRACKEN MOUNTAIN 0.000 181.431 0.000 55.266
AMC 14-15 BP PDBP MCCRACKEN MOUNTAIN 0.000 450.000 0.000 137.075
AMC 14-15 BP POD MCCRACKEN MOUNTAIN 0.000 674.515 0.000 205.464
AMERICAN CAN 11-5 1C PDP WOOLBANK CREEK 0.000 118.014 0.000 84.529
AMERICAN CAN 11-5 1C BP POD WOOLBANK CREEK 0.000 200.000 0.000 143.254
AMERICAN CAN 11-5 1D, E PDP WOOLBANK CREEK 0.000 73.319 0.000 52.516
AMKIRK UNIT PDP AM-KIRK 321.555 0.000 13.923 0.000
ANDERS, GRACE 13-15 1C PDP MCCRACKEN MTN 0.000 71.802 0.000 3.075
ANDERS, GRACE 13-15 1T PDP MCCRACKEN MTN 0.000 162.442 0.000 16.282
ANDERSON 14-12 1-E PDP NETTLETON NORTH 0.000 67.566 0.000 51.993
ANDERSON 14-12 1-E BP PDBP NETTLETON NORTH 0.000 425.000 0.000 327.043
ANDERSON 14-12 1L PDP NETTLETON NORTH 0.000 344.689 0.000 265.243
ANDERSON 7-2 PDP BALLS BRANCH (MISSISSIPPIAN LE 0.000 160.708 0.000 2.353
ARAPAHOE, NORTHWEST UNIT PDP ARAPAHOE 4053.964 0.000 91.376 0.000
ARCO -22- PDP ARBOL DE NADA 62.256 112.895 42.922 77.834
ATIC 18-13 1 SW SW PDP HUXFORD EAST 1.789 1.133 0.113 0.072
ATKINSON CHAS-FED LD BK 1-17 PDP BLUFF 0.000 0.000 0.000 0.000
BACCUS 13-16 PDNP HEARTLINE 0.000 0.000 0.000 0.000
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- -------------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
AFGRD UNIT 0.0004000 0.0003200 2.912 2.712
AFNU 0.0011540 0.0011132 6.750 5.774
ALLEN, BOBBIE LEE 23-15C 0.6832935 0.4912499 83.391 69.688
ALLEN, BOBBIE LEE 23-15T 0.6832935 0.4912499 34.996 26.699
ALLEN, J.H. #1 0.7916666 0.6141437 0.000 0.000
ALLEN, J.H. #2 0.7916660 0.6141438 1505.052 685.532
ALUM CREEK FIELD TOTAL 0.0751576 0.0656722 156.794 124.106
AMACKER, V.T. 106-1 0.0000000 0.0050598 58.325 30.790
AMC 14-15 1L 0.3581300 0.3046100 68.365 42.821
AMC 14-15 1M 0.3581300 0.3046100 58.962 37.693
AMC 14-15 BP 0.3581299 0.3046100 290.782 199.215
AMC 14-15 BP 0.3581300 0.3046100 367.211 44.099
AMERICAN CAN 11-5 1C 1.0000000 0.7162682 71.983 57.344
AMERICAN CAN 11-5 1C BP 1.0000000 0.7162682 316.008 173.361
AMERICAN CAN 11-5 1D, E 1.0000000 0.7162682 33.177 28.018
AMKIRK UNIT 0.0540700 0.0433000 116.477 101.200
ANDERS, GRACE 13-15 1C 0.0534500 0.0428300 2.032 1.490
ANDERS, GRACE 13-15 1T 0.1281719 0.1002335 11.108 8.073
ANDERSON 14-12 1-E 1.0000000 0.7695140 97.381 80.714
ANDERSON 14-12 1-E BP 1.0000000 0.7695140 756.938 268.637
ANDERSON 14-12 1L 1.0000000 0.7695140 501.863 244.162
ANDERSON 7-2 0.0000000 0.0146403 5.286 3.914
ARAPAHOE, NORTHWEST UNIT 0.0300200 0.0225400 1035.338 642.407
ARCO -22- 0.9977214 0.6894362 576.014 272.207
ATIC 18-13 1 SW SW 0.1000000 0.0632475 0.015 0.015
ATKINSON CHAS-FED LD BK 1-17 0.0082000 0.0067254 0.000 0.000
BACCUS 13-16 0.0218700 0.0191400 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 11/18/96
TIME: 11:06:38
PAGE: 2
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- -------------------------------- -------- ---------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
BAINES M E 1B PDP MCCRACKEN MOUNTAIN 0.000 245.638 0.000 98.385
BAINES M E 1C PDP MCCRACKEN MOUNTAIN 0.000 106.469 0.000 42.644
BARNES EST 1 PDNP BLOOMING GROVE 0.000 138.761 0.000 40.515
BARNES EST 1 BP PDBP BLOOMING GROVE 0.000 250.000 0.000 72.995
BARNES EST 1 POSS POD BLOOMING GROVE 0.000 499.277 0.000 145.779
BEAVER LODGE-DEVONIAN UNIT PDP BEAVER LODGE (DEVONIAN) 24229.652 21332.100 2.908 2.559
BEAVER LODGE-MADISON UNIT PDP BEAVER LODGE (MADISON) 1969.999 6303.996 0.059 0.189
BEAVER LODGE-ORDOVICIAN UNIT N PDP BEAVERLODGE (ORDOVICIAN) 2807.857 165663.568 0.814 48.042
BENTON, ALLEN PDP BEAVERTON 0.000 153.263 0.000 10.206
BERGERON 5 PDP MOORE SAMS 4.063 162.510 0.035 1.412
BERRY 8-10 PDP BLOOMING GROVE 0.000 0.000 0.000 0.000
BERRY 8-10 POSS POD BLOOMING GROVE 0.000 599.941 0.000 48.427
BIZETTE 1 PDP MOORE SAMS 36.502 1095.066 0.451 13.542
BIZETTE 2 PDP MOORE SAMS 0.000 0.000 0.000 0.000
BLACK 1-3 PDP ICONIUM NW 0.000 0.000 0.000 0.000
BLACK 1-3 PDBP PDBP ICONIUM NW 14.555 101.882 12.536 87.754
BLOWHORN CREEK MILLERELLA UNIT PDP BLOWHORN CREEK 102.658 0.000 7.535 0.000
BLOWHORN CREEK, NORTH UNIT NORTH PDP BLOWHORN CREEK 81.106 0.000 1.178 0.000
BLUE FOREST UNIT PDP BLUE FOREST 799.304 41521.016 1.298 67.434
BOGGES 2-29 DISTRICT PDP STRONG CITY (RED FORK 7.386 2484.266 1.168 393.011
BOMAN 34-8 PDP WATSON CREEK 0.000 0.000 0.000 0.000
BOMAN 34-8 BP PDBP WATSON CREEK 0.000 650.000 0.000 178.530
BOUCHER 1-5 PDP OAKWOOD NORTH 3.487 1162.416 0.568 189.451
BOYD 34-10 PDP DARBUN NORTH (MOORINGSPORT) 2.577 2147.246 0.010 8.655
BOYTE PDP ROXIE (WILCOX) 19.267 0.000 0.736 0.000
BOZEMAN 27-15 PDP MCCRACKEN MOUNTAIN 0.000 444.987 0.000 85.500
BOZEMAN 27-15 BP PDBP MCCRACKEN MOUNTAIN 0.000 250.000 0.000 48.035
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE BAINES M E 1B
- -------------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
BAINES M E 1B 0.4621800 0.4005300 102.653 64.660
BAINES M E 1C 0.4621800 0.4005300 44.687 28.099
BARNES EST 1 0.3501000 0.2919800 36.496 28.092
BARNES EST 1 BP 0.3501000 0.2919800 161.904 127.754
BARNES EST 1 POSS 0.3501000 0.2919800 277.826 96.487
BEAVER LODGE-DEVONIAN UNIT 0.0000000 0.0001200 50.925 15.563
BEAVER LODGE-MADISON UNIT 0.0000000 0.0000300 1.295 0.417
BEAVER LODGE-ORDOVICIAN UNIT N 0.0000000 0.0002900 86.275 31.435
BENTON, ALLEN 0.0874600 0.0665900 16.987 10.729
BERGERON 5 0.0119370 0.0086892 1.083 1.059
BERRY 8-10 0.0992200 0.0807200 0.000 0.000
BERRY 8-10 POSS 0.0992200 0.0807200 90.226 66.008
BIZETTE 1 0.0179690 0.0123664 25.236 23.131
BIZETTE 2 0.0133904 0.0111348 0.000 0.000
BLACK 1-3 1.0000000 0.8613300 0.000 0.000
BLACK 1-3 PDBP 1.0000000 0.8613300 170.346 123.816
BLOWHORN CREEK MILLERELLA UNIT 0.0948500 0.0734000 30.310 26.614
BLOWHORN CREEK, NORTH UNIT 0.0191300 0.0145243 1.151 1.117
BLUE FOREST UNIT 0.0020511 0.0016241 142.165 88.664
BOGGES 2-29 0.1875000 0.1582000 823.191 428.386
BOMAN 34-8 0.3585938 0.2746611 0.000 0.000
BOMAN 34-8 BP 0.3585938 0.2746611 343.939 258.517
BOUCHER 1-5 0.2069570 0.1629800 425.802 213.639
BOYD 34-10 0.0000000 0.0040308 20.451 14.633
BOYTE 0.0000000 0.0381865 13.929 8.888
BOZEMAN 27-15 0.2260800 0.1921400 109.454 63.508
BOZEMAN 27-15 BP 0.2260800 0.1921400 104.748 79.005
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:42
PAGE: 3
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
BOZEMAN 27-15 PROB PRDP MCCRACKEN MOUNTAIN 0.000 100.000 0.000 19.214
BRADFORD E L 19-15 1 PDP MCGEE LAKE 0.000 1244.442 0.000 28.124
BRASS PDP WILDCAT 0.000 0.000 0.000 0.000
BREEDLOVE 4 PDP BREEDLOVE SOUTH (SPRABERRY) 122.088 293.010 21.451 51.482
BROOKHAVEN FIELD UNIT PDP BROOKHAVEN (TUSCALOOSA LWR) 0.000 0.000 0.000 0.000
BROWN 1-9 PDP BLOOMING GROVE 0.000 165.626 0.000 12.263
BROWN N P 1 PDNP BLOOMING GROVE 0.000 49.722 0.000 15.031
BROWN N P 1 BP PDBP BLOOMING GROVE 0.000 299.602 0.000 90.567
BROWN NELL 7-3 NE NW PDP BLOOMING GROVE 0.000 0.000 0.000 0.000
BRUMFIELD #B-22 PUD PUD TINSLEY 184.094 0.000 140.862 0.000
BRUMFIELD #B-23 POSS POU TINSLEY 322.628 0.000 246.864 0.000
BRUMFIELD B-13 PDP TINSLEY NORTH 21.087 0.000 16.131 0.000
BRUMFIELD B-2 PDP TINSLEY NORTH 21.610 0.000 16.534 0.000
BRUMFIELD B-20 PDP TINSLEY 16.312 0.000 12.478 0.000
BRUMFIELD B-5 PDP TINSLEY NORTH 90.238 0.000 69.032 0.000
BRUMFIELD B-6 PDP TINSLEY NORTH 35.490 0.000 27.150 0.000
BRYAN CV UNIT 7 PDP BRYAN 69.116 0.000 7.222 0.000
BRYAN CV UNIT 10 PDP BRYAN 0.000 0.000 0.000 0.000
BRYAN CV UNIT 5 PDP BRYAN 58.920 0.000 8.585 0.000
BRYAN CV UNIT 8 PDP BRYAN 0.000 0.000 0.000 0.000
BURNS ESTATE PDP REYDON (MORROW UPPER) 0.000 4969.743 0.000 252.370
BUSH 14-15C PDP COAL FIRE CREEK 0.000 182.977 0.000 45.323
BUSH 14-15C BP PDBP COAL FIRE CREEK 0.000 500.000 0.000 123.850
BUSH 14-15C POSS POD COAL FIRE CREEK 0.000 250.000 0.000 61.925
BUSH 14-15L PDP COAL FIRE CREEK 0.000 166.411 0.000 41.220
BUSH DAVID 14-4 1C* PDP COAL FIRE CREEK 0.000 41.991 0.000 6.503
BUSH DAVID 14-4 1T PDP COAL FIRE CREEK 0.000 311.188 0.000 48.191
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- --------- --------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
BOZEMAN 27-15 PROB 0.2260800 0.1921400 23.873 9.530
BRADFORD E L 19-15 1 0.0296800 0.0226000 49.537 30.526
BRASS 0.0100000 0.7425693 0.000 0.000
BREEDLOVE 4 0.2500000 0.1757000 320.598 134.223
BROOKHAVEN FIELD UNIT 0.0000000 0.0006973 0.000 0.000
BROWN 1-9 0.0935200 0.0740424 11.517 8.328
BROWN N P 1 0.4313000 0.3022900 8.803 7.664
BROWN N P 1 BP 0.4313000 0.3022900 148.959 84.344
BROWN NELL 7-3 NE NW 0.0437540 0.0371600 0.000 0.000
BRUMFIELD #B-22 PUD 1.0000000 0.7651675 1462.820 723.798
BRUMFIELD #B-23 POSS 1.0000000 0.7651675 3219.945 1484.126
BRUMFIELD B-13 1.0000000 0.7650000 131.062 114.898
BRUMFIELD B-2 1.0000000 0.7651187 99.926 81.136
BRUMFIELD B-20 1.0000000 0.7650000 101.658 91.710
BRUMFIELD B-5 1.0000000 0.7650000 752.523 524.319
BRUMFIELD B-6 1.0000000 0.7650000 125.929 93.523
BRYAN CV UNIT 7 0.1300400 0.1044914 54.482 32.750
BRYAN CV UNIT 10 0.1457800 0.1246970 0.000 0.000
BRYAN CV UNIT 5 0.1777000 0.1457000 76.440 55.370
BRYAN CV UNIT 8 0.1300400 0.1044914 0.000 0.000
BURNS ESTATE 0.0625000 0.0507813 582.371 288.524
BUSH 14-15C 0.2830855 0.2476998 81.393 44.358
BUSH 14-15C BP 0.2830855 0.2476998 287.983 215.563
BUSH 14-15C POSS 0.2830855 0.2476998 134.305 42.953
BUSH 14-15L 0.2830855 0.2476998 72.392 39.972
BUSH DAVID 14-4 1C* 0.1769800 0.1548600 3.796 3.370
BUSH DAVID 14-4 1T 0.1769800 0.1548600 86.257 66.788
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:42
PAGE: 4
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
BUTLER PDP MOORE SAMS 193.539 7945.277 2.794 114.718
BUTTS J T 1 PDP BLOOMING GROVE 0.000 135.984 0.000 21.883
CAMPBELL 21-13 #3 PDP HARKER RANCH (MORROW) 36.683 20.176 3.522 1.937
CHADLEY 27-9 PDP DAVIS CHAPEL NE 0.000 56.696 0.000 27.318
CHANCE - BLAHA UNIT PDP GIDDINGS (AUSTIN CHALK-3) 24.923 218.074 5.077 44.422
CHANCE ESTATE UNIT PDP GIDDINGS (AUSTIN CHALK-3) 23.705 279.719 5.009 59.109
CHANDLER PDP MARTINS MILL (RODESSA 8250) 1.253 24.384 0.004 0.081
CL&F 1 PDP TURTLE BAYOU 0.374 374.406 0.008 8.288
CL&F 10 (TB) PDP TURTLE BAYOU 130.811 5687.454 2.145 93.260
CL&F 2 PDP DEER ISLAND 44.318 984.855 0.727 16.149
CL&F 4 (TB) PDP TURTLE BAYOU 40.223 6400.000 0.890 141.674
CL&F 6 (TB) PDP TURTLE BAYOU 44.417 2961.127 1.397 93.154
CL&F 8 (TB) PDP TURTLE BAYOU 62.528 15372.077 1.845 453.476
CLARK RA SU PDP CREOLE NORTH 5.100 145.720 0.121 3.443
CLARK RA SU -PDNP PDNP CREOLE NORTH 413.835 7375.459 9.779 174.282
CLIFT 1-4 PDP MOOREWOOD NE (RED FORK) 6.781 828.766 0.158 19.359
CLIFT 2-4 PDP MOOREWOOD NE (ATOK-SKNR) 10.258 1025.798 0.240 23.962
CLIFT 3-4 PDP MOOREWOOD NE (SKINNER) 5.324 665.514 0.124 15.546
CLIFT 4-4 PDP MOOREWOOD NE (SKINNER) 4.991 665.514 0.117 15.546
CLIFT 4-5 PDP MOOREWOOD NE (SKINNER) 0.000 911.903 0.000 21.301
CLIFT 4-6 PDP MOOREWOOD NE (ATOK-RDFK) 0.000 443.343 0.000 10.356
COBB 12-9 PDP COAL FIRE CREEK 0.000 0.000 0.000 0.000
COBB VICK 2-10 1 NW SE PDP BLOOMING GROVE 0.000 61.648 0.000 5.428
COLDWELL, DALLAS PDP EAST TEXAS 402.649 120.795 3.564 1.069
CORLEY 6-1 PDP BALLS BRANCH 0.000 150.584 0.000 93.467
COVINGTON #1 PDP PERRIN NORTH AFB 33.848 138.039 23.630 96.368
COVINGTON #1 - PDBP PDBP PERRIN NORTH AFB 40.000 110.000 27.925 76.794
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- --------- --------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
BUTLER 0.0202530 0.0144385 301.895 191.274
BUTTS J T 1 0.1875000 0.1609200 19.469 15.350
CAMPBELL 21-13 #3 0.1200000 0.0960000 18.783 15.981
CHADLEY 27-9 0.7340300 0.4818400 9.274 8.269
CHANCE - BLAHA UNIT 0.3000000 0.2037000 136.531 117.070
CHANCE ESTATE UNIT 0.3000000 0.2113170 80.680 68.163
CHANDLER 0.0000000 0.0033120 0.246 0.211
CL&F 1 0.0315000 0.0221366 15.355 13.443
CL&F 10 (TB) 0.0250000 0.0163975 238.319 159.499
CL&F 2 0.0250000 0.0163975 44.485 34.687
CL&F 4 (TB) 0.0315000 0.0221366 401.471 361.078
CL&F 6 (TB) 0.0479633 0.0314591 256.437 199.806
CL&F 8 (TB) 0.0450000 0.0295000 1219.454 787.231
CLARK RA SU 0.0303100 0.0236300 3.059 3.023
CLARK RA SU -PDNP 0.0303100 0.0236300 428.655 313.897
CLIFT 1-4 0.0000000 0.0233590 42.473 20.724
CLIFT 2-4 0.0000000 0.0233590 56.709 32.652
CLIFT 3-4 0.0000000 0.0233590 36.077 24.590
CLIFT 4-4 0.0000000 0.0233590 36.368 24.788
CLIFT 4-5 0.0000000 0.0233590 46.308 26.919
CLIFT 4-6 0.0000000 0.0233590 22.610 15.862
COBB 12-9 0.2548438 0.1929220 0.000 0.000
COBB VICK 2-10 1 NW SE 0.1027733 0.0880425 2.914 2.453
COLDWELL, DALLAS 0.0000000 0.0088518 67.608 40.414
CORLEY 6-1 0.8396389 0.6206970 193.956 150.796
COVINGTON #1 0.8514999 0.6981236 461.952 301.570
COVINGTON #1 - PDBP 0.8514999 0.6981237 585.490 383.360
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:43
PAGE: 5
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS
LEASE TYPE FIELD OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- ---(MMCF)---
<S> <C> <C> <C> <C>
CROCKETT 1 PDP ST MARY WEST (COTTON VALLEY) 346.144 179.347
CUNNINGHAM 16-7 PDP COAL FIRE CREEK 0.000 906.175
CUNNINGHAM 16-7 BP PDBP COAL FIRE CREEK 0.000 2000.000
CUNNINGHAM 16-7 BP2 PDBP COAL FIRE CREEK 0.000 849.301
CUNNINGHAM 16-7 BP3 PDBP COAL FIRE CREEK 0.000 299.492
CURET PDP MOORE-SAMS 0.000 0.000
DABBS 24-6 PDP NETTLETON NORTH (MISSISSIPPIAN 0.000 748.900
DALLAS 5-4 PDP BALLS BRANCH 0.000 275.847
DALLAS 5-4 BP PDBP BALLS BRANCH 0.000 600.000
DAVIS, E.T. 1-60 PDP STILES RANCH 11.356 2271.221
DAVIS, G.C. 1-61 PDP STILES RANCH 9.757 4510.748
DEVILLE 1 PDP MOORE-SAMS 0.000 0.000
DOYLE 34-1 4 PDP HARKER RANCH (MORROW) 18.332 18.332
DURR 12-12 #3 PDP HARKER RANCH (MORROW) 0.859 1.203
DURR 21-12 #1 PDP HARKER RANCH (MORROW) 3.491 0.000
DURR 32-12 #2 PDP ARAPAHOE (MORROW) 11.734 0.000
EUNICE PDP REYDON (MORROW UPPER) 0.000 6146.100
FARNED, LILLIAN P. 1-U PDP BACON 0.000 31.924
FARNED, LILLIAN P. 1-U BP PDBP BACON 0.000 349.503
FARNED, LILLIAN P. 1-U BP2 PDBP BACON 0.000 249.409
FEDERAL 6 COM PDP QUAIL RIDGE (MORROW) PM 6.560 1030.782
FEENEY HILL GAS UNIT PDP LEATHERMAN CREEK (SMACKOVER) 0.000 846.584
FLANAGAN 2-30 PDP SICKLES NORTH 0.000 377.023
FLANAGAN 2-30 PDBP PDBP SICKLES NORTH 0.000 1000.000
FLETCHER, MAX J. 1 PDP BIRCH (SMACKOVER) 0.000 3547.743
FLETCHER, MAX J. 2 PDP BIRCH (SMACKOVER) 0.000 2957.294
FLETCHER, MAX J. 3 PDP BIRCH (SMACKOVER) 0.000 4803.362
<CAPTION>
NET NET WORKING REVENUE NET DISC NET
LEASE OIL GAS INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ---(MB)--- --(MMCF)-- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C> <C>
CROCKETT 1 21.599 11.191 0.0858000 0.0624000 297.953 96.437
CUNNINGHAM 16-7 0.000 146.941 0.2013218 0.1621556 247.192 148.725
CUNNINGHAM 16-7 BP 0.000 324.311 0.2013218 0.1621556 754.592 304.179
CUNNINGHAM 16-7 BP2 0.000 137.719 0.2013218 0.1621556 284.353 82.138
CUNNINGHAM 16-7 BP3 0.000 48.564 0.2013218 0.1621556 69.598 8.389
CURET 0.000 0.000 0.0021930 0.0015367 0.000 0.000
DABBS 24-6 0.000 46.012 0.0000000 0.0614395 115.048 51.942
DALLAS 5-4 0.000 207.315 0.9166719 0.7515562 431.044 296.033
DALLAS 5-4 BP 0.000 450.934 0.9166719 0.7515562 1064.947 631.734
DAVIS, E.T. 1-60 0.205 40.902 0.0243750 0.0180088 104.228 71.186
DAVIS, G.C. 1-61 0.216 100.043 0.0291220 0.0221789 230.170 90.257
DEVILLE 1 0.000 0.000 0.0021490 0.0015900 0.000 0.000
DOYLE 34-1 4 1.760 1.760 0.1200000 0.0960000 17.911 15.827
DURR 12-12 #3 0.115 0.161 0.1800000 0.1338739 0.129 0.128
DURR 21-12 #1 0.612 0.000 0.2250000 0.1753100 1.947 1.866
DURR 32-12 #2 1.028 0.000 0.1200000 0.0876095 5.364 4.601
EUNICE 0.000 129.068 0.0271000 0.0210000 256.230 111.870
FARNED, LILLIAN P. 1-U 0.000 30.820 1.2421623 0.9654124 26.525 24.503
FARNED, LILLIAN P. 1-U BP 0.000 163.220 0.6210812 0.4670064 316.360 222.281
FARNED, LILLIAN P. 1-U BP2 0.000 116.475 0.6210812 0.4670064 169.860 57.973
FEDERAL 6 COM 0.404 63.424 0.0796000 0.0615300 126.585 96.936
FEENEY HILL GAS UNIT 0.000 4.401 0.0000000 0.0051983 7.777 5.777
FLANAGAN 2-30 0.000 93.985 0.3246250 0.2492804 187.555 111.291
FLANAGAN 2-30 PDBP 0.000 249.280 0.3246250 0.2492804 558.249 28.669
FLETCHER, MAX J. 1 0.000 30.050 0.0000000 0.0084703 44.297 34.468
FLETCHER, MAX J. 2 0.000 25.049 0.0000000 0.0084703 50.048 34.377
FLETCHER, MAX J. 3 0.000 40.686 0.0000000 0.0084703 59.974 47.241
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:44
PAGE: 6
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS
LEASE TYPE FIELD OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- ---(MMCF)---
<S> <C> <C> <C> <C>
FOWLER 11-4 NW NW PDP DAVIS CHAPEL 0.000 51.479
FOWLER 14-1 PDP DAVIS CHAPEL 0.000 336.985
FOWLER 2-12 PDP DAVIS CHAPEL 0.000 120.745
FOWLER 22-14 PDP MUSGROVE CREEK 0.000 97.840
FOWLER 26-13 1 SW SW PDP DAVIS CHAPEL NE 0.000 0.000
FOWLER 26-4 1 NW NW PDP DAVIS CHAPEL NE 0.000 344.492
FOWLER 7 1 NE NE PDP BLUFF 55.882 0.000
FOWLER 9-6 PDP DAVIS CHAPEL 0.000 0.000
FOWLER MORGAN 8 4 PDP BLUFF 128.681 0.000
FOWLER, JULIA SIZEMORE 6-16 #1 PDP BLUFF 5.485 0.000
FULLERTON 25-13 PDP MUSGROVE CREEK 0.000 62.516
FUTRELL PDP HALLSVILLE NE (PETTIT) 1.096 78.319
GADDIS FARMS 13-1 PDP BOLTON (COTTON VALLEY) 160.612 1708.637
GADDIS-MCLAURIN 7 PDP BAKERS CREEK (RODESSA) 73.568 0.000
GAULT, SARAH 1-5 PDP PARSLEY 92.398 1293.573
GAULT, SARAH 1-5 PDBP PDBP PARSLEY 29.982 59.963
GAULT, SARAH 3-5 PDP PARSLEY (ATOKA) 10.375 0.000
GAULT, SARAH 3-5 PDBP PDBP PARSLEY 29.982 59.963
GAY UNION #37 - BP1 PDBP BAYOU CHOCTAW 9.897 9.897
GAY UNION #37 - BP2 PDBP BAYOU CHOCTAW 24.907 24.907
GAY UNION #37 - BP3 PDBP BAYOU CHOCTAW 14.950 14.950
GAY UNION #37 - BP4 PDBP BAYOU CHOCTAW 14.950 14.950
GAY UNION #37 - BP5 PDBP BAYOU CHOCTAW 17.962 17.962
GAY UNION FIELD TOTAL - PDNP PDNP BAYOU CHOCTAW 35.810 364.453
GERLOFF PDP FREEDOM NORTH (CCKB-MRMC-TNKW) 0.000 471.966
GILLIAM PDP CAUDILL NE 0.397 0.634
GILLIAM #1 - PDNP PDNP CAUDILL NE 22.643 0.000
<CAPTION>
NET NET WORKING REVENUE NET DISC NET
LEASE OIL GAS INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ---(MB)--- --(MMCF)-- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C> <C>
FOWLER 11-4 NW NW 0.000 2.340 0.0519500 0.0454600 0.589 0.541
FOWLER 14-1 0.000 22.664 0.0820300 0.0672559 20.100 13.892
FOWLER 2-12 0.000 2.730 0.0258400 0.0226100 1.304 1.021
FOWLER 22-14 0.000 7.332 0.0971200 0.0749400 2.739 2.372
FOWLER 26-13 1 SW SW 0.000 0.000 0.1531300 0.1158168 0.000 0.000
FOWLER 26-4 1 NW NW 0.000 39.898 0.1531300 0.1158168 40.688 27.278
FOWLER 7 1 NE NE 16.036 0.000 0.3500000 0.2869600 266.578 168.248
FOWLER 9-6 0.000 0.000 0.0229700 0.0140000 0.000 0.000
FOWLER MORGAN 8 4 4.660 0.000 0.0437500 0.0362143 51.820 24.869
FOWLER, JULIA SIZEMORE 6-16 #1 0.000 0.168 0.0350000 0.0306300 1.013 0.946
FULLERTON 25-13 0.000 1.337 0.0244700 0.0213900 0.469 0.422
FUTRELL 0.128 9.173 0.1465000 0.1171250 14.320 11.422
GADDIS FARMS 13-1 2.371 25.219 0.0000000 0.0147600 106.290 59.217
GADDIS-MCLAURIN 7 11.029 0.000 0.2000000 0.1499200 101.615 78.812
GAULT, SARAH 1-5 33.879 474.301 0.5000000 0.3666600 963.600 498.597
GAULT, SARAH 1-5 PDBP 10.993 21.986 0.5000000 0.3666600 25.330 0.468
GAULT, SARAH 3-5 3.804 0.000 0.5000000 0.3666600 37.287 29.423
GAULT, SARAH 3-5 PDBP 10.993 21.986 0.5000000 0.3666600 25.330 8.168
GAY UNION #37 - BP1 7.921 7.921 1.0000000 0.8003500 74.221 68.950
GAY UNION #37 - BP2 19.935 19.935 1.0000000 0.8003500 272.127 221.577
GAY UNION #37 - BP3 11.965 11.965 1.0000000 0.8003500 128.958 84.598
GAY UNION #37 - BP4 11.965 11.965 1.0000000 0.8003500 128.958 70.473
GAY UNION #37 - BP5 14.376 14.376 1.0000000 0.8003500 169.897 77.319
GAY UNION FIELD TOTAL - PDNP 28.660 291.690 1.0000000 0.8003501 627.752 542.145
GERLOFF 0.000 116.736 0.3047900 0.2473400 146.954 99.286
GILLIAM 0.150 0.240 0.5000000 0.3776586 0.076 0.076
GILLIAM #1 - PDNP 8.551 0.000 0.5000000 0.3776599 64.491 36.319
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:45
PAGE: 7
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ------------------------ -------- ------------------------------ --(MB)-- --(MMCF)-- --(MB)-- --(MMCF)-- --------
<S> <C> <C> <C> <C> <C> <C> <C>
GILMER 25-15 PDP BLOWHORN CREEK 0.000 357.082 0.000 137.572 0.4615250
GILMER, JUDE 35-7 1 PDP WATSON CREEK EAST 0.000 340.308 0.000 2.336 0.0000000
GLENN 1-33 PDP BEAUCHAMP SW (MORROWAN) 0.000 1064.100 0.000 154.265 0.1914060
GLOSTER JACOB PDP COLUMBIA (HOSSTON 1ST) 38.330 4401.933 1.266 145.394 0.0457210
GRACE 35-2C PDP CHICKEN SWAMP BRANCH 0.000 2038.835 0.000 1133.547 0.7000000
GRACE 35-2L PDP CHICKEN SWAMP BRANCH 0.000 100.604 0.000 55.877 0.7000000
GRAVLEE 13-12 1 PDP MCCRACKEN MOUNTAIN 0.402 120.854 0.185 55.723 0.6296200
GRAVLEE 13-12 1 BP PDBP MCCRACKEN MOUNTAIN 0.000 188.166 0.000 86.760 0.6296200
GRIMSLEY A M 1 PDNP BLOOMING GROVE 0.000 145.525 0.000 41.492 0.3501000
GRIMSLEY A M 2 PDP BLOOMING GROVE 0.000 175.647 0.000 36.305 0.2500000
GRIMSLEY A M 2 BP PDBP BLOOMING GROVE 0.000 300.000 0.000 62.007 0.2500000
GRIMSLEY A M 2 POSS POD BLOOMING GROVE 0.000 499.277 0.000 103.195 0.2500000
HAMMOND 13-13 1 PDP COAL FIRE CREEK 0.000 15.185 0.000 0.532 0.0000000
HARKINS-STANLEY UNIT 1 PDP FAYETTE WEST 0.000 0.000 0.000 0.000 0.1024500
HARP 1-36 PDP SHO-VEL-TUM (SPRINGER) 160.056 0.000 26.361 0.000 0.2000000
HARRISON -C- 1-C PDP WILLOW SPRINGS (RODESSA) 0.000 140.412 0.000 0.009 0.0000000
HARRISON -C- 1-T PDP WILLOW SPRINGS (HENDERSON) 0.000 234.786 0.000 0.015 0.0000000
HARRISON, P.D. E G.U. PDP WILLOW SPRINGS WEST (TRAVIS PE 3.665 305.393 0.001 0.092 0.0000000
HEARN 29-3 PDP PEACHTREE CREEK (COTTON VALLEY 72.380 0.000 4.886 0.000 0.0800000
HENSLER 1-21 PDP COMERTOWN SOUTH 241.079 43.050 82.470 14.727 0.4172425
HIGGINS JIMMY 7-15 PDNP BLOOMING GROVE 0.000 93.765 0.000 16.135 0.2512500
HIGGINS JIMMY 7-15 BP PDBP BLOOMING GROVE 0.000 499.673 0.000 85.982 0.2512500
HIGGINS JIMMY 7-15 POSS POD BLOOMING GROVE 0.000 499.277 0.000 85.914 0.2512500
HILL UN 1 1 PDP OBERLIN 22.022 917.596 2.099 87.447 0.1242900
HINTON 8-16 PDP PALMETTO SOUTH (MISSISSIPPIAN 0.000 713.075 0.000 185.842 0.3180266
HODO 31-15 1 SW SE PDNP MOUNT CARMEL 0.000 151.352 0.000 12.041 0.1039000
HOLLY JF 32-8 PDP BEAVERTON 0.000 295.327 0.000 53.223 0.2367200
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ------------------------ -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
GILMER 25-15 0.3852678 162.766 92.095
GILMER, JUDE 35-7 1 0.0068644 4.308 2.022
GLENN 1-33 0.1449722 152.030 81.750
GLOSTER JACOB 0.0330295 295.188 176.578
GRACE 35-2C 0.5559777 2586.709 1067.624
GRACE 35-2L 0.5554160 111.416 60.718
GRAVLEE 13-12 1 0.4610814 42.835 34.345
GRAVLEE 13-12 1 BP 0.4610814 207.147 139.673
GRIMSLEY A M 1 0.2851200 40.421 30.354
GRIMSLEY A M 2 0.2066900 36.170 27.755
GRIMSLEY A M 2 BP 0.2066900 130.286 93.265
GRIMSLEY A M 2 POSS 0.2066900 194.874 74.591
HAMMOND 13-13 1 0.0350466 1.036 0.971
HARKINS-STANLEY UNIT 1 0.0758100 0.000 0.000
HARP 1-36 0.1647000 245.104 132.325
HARRISON -C- 1-C 0.0000642 0.016 0.011
HARRISON -C- 1-T 0.0000642 0.027 0.017
HARRISON, P.D. E G.U. 0.0003011 0.216 0.188
HEARN 29-3 0.0675000 74.266 64.305
HENSLER 1-21 0.3420865 948.786 486.238
HIGGINS JIMMY 7-15 0.1720776 9.134 7.278
HIGGINS JIMMY 7-15 BP 0.1720776 142.234 53.256
HIGGINS JIMMY 7-15 POSS 0.1720776 157.948 22.393
HILL UN 1 1 0.0953000 155.882 81.159
HINTON 8-16 0.2606202 295.017 150.173
HODO 31-15 1 SW SE 0.0795535 9.807 7.984
HOLLY JF 32-8 0.1802169 52.079 39.959
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:46
PAGE: 8
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ------------------------ -------- ------------------------------ --(MB)-- --(MMCF)-- --(MB)-- --(MMCF)-- --------
<S> <C> <C> <C> <C> <C> <C> <C>
HOWLING WOMAN #1-23 PDP ELM GROVE 0.000 1486.778 0.000 469.812 0.4000000
HOWLING WOMAN #1-23 PDBP PDBP ELM GROVE 0.000 2569.087 0.000 811.815 0.4000000
HUDDLESTON, C. L. PDP GINGER SE (SMACKOVER) 0.000 6342.729 0.000 27.070 0.0000000
HUDDLESTON, C.L. PDP GINGER SE (SMACKOVER) 0.000 2073.870 0.000 8.851 0.0000000
HURST PDP MOORE SAMS 21.414 691.848 0.365 11.796 0.0247690
HURT PDP PEARSALL 49.980 86.222 26.343 45.444 0.7499999
IRWIN 7-15 1C PDP COAL FIRE CREEK 0.277 276.518 0.013 12.923 0.0616900
IRWIN 7-15 2 SW SE PDP COAL FIRE CREEK 0.000 325.902 0.000 15.230 0.0616900
JACKSON BARNETT SE PDP CUSHING (BARTLESVILLE) 0.000 0.000 0.000 0.000 1.0000000
JACKSON UNIT PDP JOHNSON RANCH (WOLFCAMP) WC 172.413 1724.131 11.724 117.241 0.0833000
JOHNSON 30-11 1 PDP MCCRACKEN MTN 0.000 117.414 0.000 10.070 0.1059900
JOHNSON 36-6 1 SE NW PDP DAVIS CHAPEL NE 0.000 117.776 0.000 1.872 0.0213900
JOHNSON GBSA UNIT PDP JOHNSON 2552.873 1302.239 81.365 41.505 0.0300960
JONES JIMMY RAY 7-7 PDP BLUFF 0.000 0.000 0.000 0.000 0.0546900
JONES, JOHN PDP KNOTT SW 16.078 1.791 10.830 1.206 0.9400000
KANSAS UNIVERSITY PDP SPARKS NE 0.000 356.160 0.000 133.248 0.5078125
KELLY 15-16C PDP COAL FIRE CREEK 0.000 752.732 0.000 133.247 0.2384760
KELLY 15-16C (PROB) PRDP COAL FIRE CREEK 0.000 750.000 0.000 132.763 0.2384076
KELLY 15-16T PDP COAL FIRE CREEK 0.000 112.666 0.000 19.944 0.2384076
KILHOFFER 1-33 PDP MOOREWOOD NE (SKINNER) 8.075 554.758 0.142 9.752 0.0000000
KILHOFFER 2-33 PDP MOOREWOOD NE (SKINNER) 6.216 1655.546 0.109 29.101 0.0000000
KILHOFFER 3-33 PDP MOOREWOOD NE (SKINNER) 31.560 2104.000 0.555 36.984 0.0000000
KILLINGSWORTH 7-9 NE SE PDP MUSGROVE CREEK 0.000 168.488 0.000 20.456 0.1640600
KILLINGSWORTH 8-13 SW SW PDP MUSGROVE CREEK 0.000 0.000 0.000 0.000 0.1373700
KILLINGSWORTH B-3 PDP WILLOW SPRINGS WEST (TRAVIS PE 3.775 377.510 0.001 0.114 0.0000000
KILLINGSWORTH B-4 PDP WILLOW SPRINGS WEST (TRAVIS PE 3.018 215.556 0.000 0.003 0.0000000
KING PDP HANSFORD 1.139 237.579 0.761 158.646 0.9502000
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ------------------------ -------- ---(M$)--- @10.00% M$
<S> <S> <C> <C>
HOWLING WOMAN #1-23 0.3159934 861.643 492.405
HOWLING WOMAN #1-23 PDBP 0.3159934 1837.097 1002.746
HUDDLESTON, C. L. 0.0042679 52.885 33.034
HUDDLESTON, C.L. 0.0042679 17.292 13.380
HURST 0.0170503 14.031 12.447
HURT 0.5270625 332.862 278.399
IRWIN 7-15 1C 0.0467332 11.293 9.087
IRWIN 7-15 2 SW SE 0.0467332 13.012 8.596
JACKSON BARNETT SE 0.8750000 0.000 0.000
JACKSON UNIT 0.0680000 468.580 221.322
JOHNSON 30-11 1 0.0857675 5.301 4.220
JOHNSON 36-6 1 SE NW 0.0158937 1.196 0.992
JOHNSON GBSA UNIT 0.0318720 713.853 501.718
JONES JIMMY RAY 7-7 0.0379191 0.000 0.000
JONES, JOHN 0.6735902 79.642 70.947
KANSAS UNIVERSITY 0.3741226 142.947 72.874
KELLY 15-16C 0.1770173 285.168 145.728
KELLY 15-16C (PROB) 0.1770173 259.216 3.356
KELLY 15-16T 0.1770173 32.214 21.288
KILHOFFER 1-33 0.0175780 25.977 18.028
KILHOFFER 2-33 0.0175780 68.784 35.224
KILHOFFER 3-33 0.0175780 99.167 41.498
KILLINGSWORTH 7-9 NE SE 0.1214100 10.066 8.079
KILLINGSWORTH 8-13 SW SW 0.1024800 0.000 0.000
KILLINGSWORTH B-3 0.0003011 0.256 0.200
KILLINGSWORTH B-4 0.0000149 0.007 0.006
KING 0.6677600 263.496 132.876
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:47
PAGE: 9
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ------------------------ ------- ------------------------------ ---(MB)--- ---(MMCF)-- ---(MB)--- ---(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
KOPF 1-11 PDP WATONGA-CHICKASHA TREND (MORRO 0.000 1085.049 0.000 284.825
LATHROP -B- PDP EAST TEXAS 76.695 0.080 0.014 0.000
LATHROP -C- ORRI PDP EAST TEXAS 2037.784 611.335 0.376 0.113
LATHROP, F. K. 1 PDP EAST TEXAS 220.220 66.066 0.041 0.012
LATHROP, F.K. GAS UNIT PDP WILLOW SPRINGS (COTTON VALLEY 0.000 137.525 0.000 0.016
LATHROP, F.K. GAS UNIT 4 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 307.188 0.000 0.040
LATHROP, F.K. GAS UNIT 5 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 376.302 0.000 0.113
LATHROP, F.K. GU #2-ORRI PDP WILLOW SPRINGS (COTTON VALLEY 6.039 805.200 0.001 0.105
LEE -B- GAS UNIT 1-C PDP WILLOW SPRINGS (HENDERSON) 0.000 585.788 0.000 1.219
LEE -G- PDP WILLOW SPRINGS-MACKEY (TRAVIS 15.217 115.646 0.005 0.035
LEE 2-5 PDP ALLISON PARKS (MORROWAN UPPER) 0.000 1283.966 0.000 28.197
LEE GAS UNIT B-3 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 665.514 0.000 0.200
LEE GAS UNIT B-4 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 645.389 0.000 0.194
LEE GAS UNIT B-5 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 1022.655 0.000 0.308
LEE GAS UNIT B-6 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 1374.976 0.000 0.414
LEE, T. W. PDP EAST TEXAS 94.053 23.513 0.592 0.148
LEE, T. W. PDP EAST TEXAS 18.831 0.000 0.119 0.000
LEE, TAYLOR W. PDP EAST TEXAS 516.960 142.164 2.480 0.682
LITTLE WHIT #1 PDP BIG WHIT (WOLFCAMP) 0.000 0.000 0.000 0.000
LITTLE WHIT #4 PDP COBRA (WOLFCAMP) 23.151 35.884 4.067 6.304
LOFTIS ESTATE 23-8C PDP MCCRACKEN MTN 0.000 111.567 0.000 12.667
LOFTIS ESTATE 23-8L PDP MCCRACKEN MTN 0.000 163.175 0.000 18.527
LONGENBAUGH PDNP BON AIR 118.637 95.716 88.854 71.688
LUCAS PDP BEAUCHAMP (MORROWAN) 0.000 594.140 0.000 83.914
MANY, SUE L. PDP DARROW 53.947 8.092 24.535 3.680
MARTIN PDP KANSAS HUGOTON 0.000 0.000 0.000 0.000
MARX-THOMAS 6-6 1 PDP MUD CREEK 0.514 1027.945 0.021 41.876
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ------------------------ -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
KOPF 1-11 0.3500000 0.2625000 616.169 488.789
LATHROP -B- 0.0000000 0.0001845 0.256 0.175
LATHROP -C- ORRI 0.0000000 0.0001845 7.063 4.110
LATHROP, F. K. 1 0.0000000 0.0001845 0.724 0.426
LATHROP, F.K. GAS UNIT 0.0000000 0.0001188 0.035 0.032
LATHROP, F.K. GAS UNIT 4 0.0000000 0.0001308 0.087 0.074
LATHROP, F.K. GAS UNIT 5 0.0000000 0.0003011 0.247 0.213
LATHROP, F.K. GU #2-ORRI 0.0000000 0.0001308 0.243 0.171
LEE -B- GAS UNIT 1-C 0.0000000 0.0020803 2.879 1.369
LEE -G- 0.0000000 0.0003011 0.166 0.082
LEE 2-5 0.0312500 0.0219606 40.120 32.530
LEE GAS UNIT B-3 0.0000000 0.0003011 0.427 0.291
LEE GAS UNIT B-4 0.0000000 0.0003011 0.414 0.306
LEE GAS UNIT B-5 0.0000000 0.0003011 0.656 0.477
LEE GAS UNIT B-6 0.0000000 0.0003011 0.882 0.589
LEE, T. W. 0.0000000 0.0062979 11.033 7.051
LEE, T. W. 0.0000000 0.0062979 2.155 1.637
LEE, TAYLOR W. 0.0000000 0.0047982 46.313 27.332
LITTLE WHIT #1 0.2500000 0.1756875 0.000 0.000
LITTLE WHIT #4 0.2500000 0.1756875 34.515 27.008
LOFTIS ESTATE 23-8C 0.1387500 0.1135382 14.264 11.399
LOFTIS ESTATE 23-8L 0.1387500 0.1135382 23.872 18.419
LONGENBAUGH 0.9688200 0.7489600 904.318 571.802
LUCAS 0.1914060 0.1412363 106.941 70.086
MANY, SUE L. 0.6812600 0.4548000 187.592 157.747
MARTIN 0.5843750 0.4538550 0.000 0.000
MARX-THOMAS 6-6 1 0.0546900 0.0407374 61.225 34.202
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:47
PAGE: 10
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ------------------------ ------- ------------------------------ ---(MB)--- ---(MMCF)-- ---(MB)--- ---(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
MASCHO NENESW PDP CUSHING (BARTLESVILLE) 0.000 0.000 0.000 0.000
MATILDA GRAY STREAM J PDP VINTON 180.201 0.000 24.652 0.000
MATILDA GRAY STREAM M PDP VINTON 208.445 0.000 28.515 0.000
MAYERS F 29-5 PDP MCGEE LAKE 1.068 533.855 0.027 13.555
MCCALEB 26-9 PDP BETHEL CHURCH 0.000 42.691 0.000 11.389
MCCALEB 26-9 BP PDBP BETHEL CHURCH 0.000 324.737 0.000 86.637
MCCALEB 26-9 POSS POD BETHEL CHURCH 0.000 500.000 0.000 133.395
MCCRANIE PDP IVAN 31.726 1057.544 7.274 242.463
MCDANIEL, LOIS 1 PDP QUITO EAST (CHERRY CANYON) 1.577 420.330 0.205 54.551
MCDONALD 36-13 1C PDP CORINTH 0.000 605.428 0.000 287.966
MCDONALD 36-13 BP PDBP CORINTH 0.000 200.000 0.000 95.128
MCDONALD 36-13 M PDP CORINTH 0.000 0.000 0.000 0.000
MCEVERS 19-9 PDP MCCRACKEN MOUNTAIN 0.000 306.554 0.000 32.716
MEALS, NANCY 1 PDP BLOCK D 578.157 0.000 175.904 0.000
MIKESKA/KRENEK PDP GIDDINGS (AUSTIN CHALK-3) 132.324 91.609 40.751 28.212
MILLER 8 PDP LAKE ARTHUR 30.332 78.864 0.724 1.881
MILLIE 2-20 BP PDBP PUTNAM 0.000 572.697 0.000 375.832
MIX PDP MOORE SAMS 234.378 8370.649 3.523 125.814
MORRISON 35-1C PDP BLOWHORN CREEK 0.000 3.121 0.000 0.227
MORRISON 35-1M PDP BLOWHORN CREEK 0.000 1.358 0.000 0.099
MORRISON 35-1M BP POD BLOWHORN CREEK 0.000 350.000 0.000 25.414
MORRISON 36-4C PDP BLOWHORN CREEK 0.000 0.000 0.000 0.000
MORRISON 36-4M PDP BLOWHORN CREEK 1.125 24.949 0.535 11.867
MORRISON 36-4M BP PDBP BLOWHORN CREEK 0.000 650.000 0.000 309.167
MORRISON 36-4M POSS POD BLOWHORN CREEK 0.000 999.716 0.000 475.506
MORTON 2-35 PDP COYLE SOUTH (WILCOX) 3.429 57.149 0.828 13.806
MULLINS 1-34 PDP BUTLER-CUSTER WEST 75.847 1551.425 4.149 84.863
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ------------------------ -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
MASCHO NENESW 0.9375000 0.8203125 0.000 0.000
MATILDA GRAY STREAM J 0.2000000 0.1368000 125.928 99.789
MATILDA GRAY STREAM M 0.2000000 0.1368000 246.407 179.308
MAYERS F 29-5 0.0312500 0.0253900 14.570 9.178
MCCALEB 26-9 0.3159400 0.2667900 15.081 13.428
MCCALEB 26-9 BP 0.3159400 0.2667900 173.173 135.618
MCCALEB 26-9 POSS 0.3159400 0.2667900 276.141 107.305
MCCRANIE 0.2796300 0.2292700 480.587 301.300
MCDANIEL, LOIS 1 0.1562338 0.1297807 84.129 72.452
MCDONALD 36-13 1C 0.6544999 0.4756409 306.964 160.011
MCDONALD 36-13 BP 0.6544999 0.4756409 137.928 7.941
MCDONALD 36-13 M 0.6544999 0.4756409 0.000 0.000
MCEVERS 19-9 0.1352100 0.1067233 32.841 19.695
MEALS, NANCY 1 0.3958335 0.3042500 1926.829 775.284
MIKESKA/KRENEK 0.3083900 0.3079660 669.655 408.522
MILLER 8 0.0000000 0.0238554 18.362 15.221
MILLIE 2-20 BP 0.7499999 0.6562500 756.285 592.812
MIX 0.0208750 0.0150303 207.673 135.406
MORRISON 35-1C 0.0869500 0.0726100 0.014 0.014
MORRISON 35-1M 0.0869500 0.0726100 0.012 0.011
MORRISON 35-1M BP 0.0869500 0.0726100 55.807 38.689
MORRISON 36-4C 0.6545000 0.4756409 0.000 0.000
MORRISON 36-4M 0.6544999 0.4756409 4.364 3.890
MORRISON 36-4M BP 0.6544999 0.4756409 615.068 376.581
MORRISON 36-4M POSS 0.6544999 0.4756409 1036.359 216.219
MORTON 2-35 0.2690400 0.2415800 33.349 31.524
MULLINS 1-34 0.0625000 0.0547000 257.235 134.113
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:48
PAGE: 11
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING REVENUE
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST INTEREST
- --------------------- ---------- ------------------------ ---(MB)--- --(MMCF)--- ---(MB)--- --MMCF)-- -------- --------
<S> <C> <C> <C> <C> <C> <C>
MURPHY-RANDOLPH 1 PDP BLOOMING GROVE 0.000 474.068 0.000 186.783 0.5140625 0.3940000
MURPHY-RANDOLPH 1 BP PDBP BLOOMING GROVE 0.000 125.000 0.000 49.250 0.5140625 0.3940000
MURPHY-RANDOLPH 1 BP2 PRDP BLOOMING GROVE 0.000 399.638 0.000 157.457 0.5140625 0.3940000
MURPHY-RANDOLPH 1 BP3 POD BLOOMING GROVE 0.000 499.277 0.000 196.715 0.5140625 0.3940000
MUSKEGON 20 ST. COM. PDP EMPIRE SOUTH (MORROW) PM 1.790 668.992 0.331 123.804 0.2468800 0.1850600
NELLIE 1-16 PDP BEAUCHAMP(MORROWAN) 0.000 111.280 0.000 31.434 0.3828120 0.2824726
NEUFELD 1-33 PDP FAYE EAST 0.342 351.174 0.178 186.016 0.6506300 0.5296364
NEWMAN CROWLEY 24-5 1C PDP COAL FIRE CREEK 0.000 44.565 0.000 17.751 0.4764000 0.3983100
NEWMAN CROWLEY 24-5 1T PDP COAL FIRE CREEK 0.000 181.887 0.000 74.366 0.4889102 0.4088548
NEWMAN CROWLEY 24-5 1T BP POD COAL FIRE CREEK 0.000 200.000 0.000 81.771 0.4889102 0.4088548
NEWMAN LUMBER 16-3 1 PDP MILITARY GROVE NORTH 0.000 401.287 0.000 13.688 0.0431400 0.0341099
NOLAN 6-2 1 NW NE PDP DAVIS CHAPEL NE 0.000 80.256 0.000 8.225 0.1250000 0.1024841
NOLEN CHARLES W 35-2 PDP MCCRACKEN MTN WEST 0.000 475.145 0.000 23.757 0.0525000 0.0500000
NORRIS ELVIE 29-8 1 PDP FAYETTE WEST 0.000 119.771 0.000 17.502 0.1750000 0.1461300
NORRIS N G 21-13 PDP FAYETTE WEST 0.000 208.069 0.000 105.033 0.6797699 0.5048000
NORTHEAST EDGEWOOD UNIT PDP EDGEWOOD NE(SMACKOVER) 0.000 21096.668 0.000 13.924 0.0000000 0.0006600
OPELIKA GAS UNIT* PDP OPELIKA 0.000 1115.021 0.000 0.072 0.0000000 0.0000646
OSR-HALLIDAY UNIT PDP HALLIDAY(WOODBINE) 1395.285 1079.864 0.229 0.177 0.0000000 0.0001643
PADGITT, JAMES T. 3 PDP PADGITT 0.000 702.042 0.000 43.844 0.0820312 0.0624515
PARAMOUNT/COCHRAN 14-5 PDP BLACKBURN (HOSSTON) 47.160 38.199 15.916 12.892 0.3727333 0.3374942
PECOS FOODS 35-11 1 NE SW PDP COAL FIRE CREEK 0.000 35.126 0.000 0.364 0.0129100 0.0103768
PEOC-NVG 41-23H PDP WOLF MOUNTAIN 457.087 0.000 271.573 0.000 0.8071900 0.5941397
PEOC-NVG 41-23H PDBP PDBP WOLF MOUNTAIN 657.840 0.000 390.849 0.000 0.8071900 0.5941400
PERKINS FIELD TOTAL PDP PERKINS 290.847 0.000 236.313 0.000 1.0000000 0.8125000
PHILLIPS EDWARDS PDP EDWARDS WEST 31.912 45.569 22.426 32.023 1.0000000 0.7027500
PIERCE, V. I. 10-1 PDP OZONA 0.000 0.000 0.000 0.000 0.7500000 0.5709841
PIERCE, V. I. 10-2 PDP OZONA 0.000 44.066 0.000 25.161 0.7500000 0.5709841
<CAPTION>
NET DISC NET
LEASE REVENUE REVENUE
- --------------------- ---(M$)--- @10.00% M$
<S> <C> <C>
MURPHY-RANDOLPH 1 245.713 158.363
MURPHY-RANDOLPH 1 BP 107.648 94.557
MURPHY-RANDOLPH 1 BP2 265.023 156.573
MURPHY-RANDOLPH 1 BP3 362.608 105.190
MUSKEGON 20 ST. COM. 301.132 249.744
NELLIE 1-16 18.677 16.690
NEUFELD 1-33 381.557 263.829
NEWMAN CROWLEY 24-5 1C 19.153 12.569
NEWMAN CROWLEY 24-5 1T 85.738 54.713
NEWMAN CROWLEY 24-5 1T BP 166.526 24.704
NEWMAN LUMBER 16-3 1 17.879 14.557
NOLAN 6-2 1 NW NE 2.315 2.013
NOLEN CHARLES W 35-2 33.115 18.208
NORRIS ELVIE 29-8 1 10.611 8.652
NORRIS N G 21-13 105.000 74.915
NORTHEAST EDGEWOOD UNIT 22.256 14.469
OPELIKA GAS UNIT* 0.159 0.079
OSR-HALLIDAY UNIT 4.493 2.507
PADGITT, JAMES T. 3 70.117 55.263
PARAMOUNT/COCHRAN 14-5 107.606 88.209
PECOS FOODS 35-11 1 NE SW 0.132 0.119
PEOC-NVG 41-23H 4396.871 948.432
PEOC-NVG 41-23H PDBP 6503.396 1231.589
PERKINS FIELD TOTAL 2671.077 1767.888
PHILLIPS EDWARDS 200.740 156.545
PIERCE, V. I. 10-1 0.000 0.000
PIERCE, V. I. 10-2 7.085 5.301
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:49
PAGE: 12
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING REVENUE NET
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST INTEREST REVENUE
- --------------------- ------- --------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------- -------- ---M$)--
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PIERCE, V. I. 10-3 PDP OZONA 0.000 8.210 0.000 4.687 0.7500000 0.5709841 0.553
PIERCE, V. I. 10-4 PDP OZONA (CANYON) 0.000 0.000 0.000 0.000 0.7500001 0.5709841 0.000
PIERCE, V. I. 10-5 PDP OZONA 0.000 117.060 0.000 66.839 0.7500000 0.5709841 54.780
PIERCE, V. I. 10-6 PDP OZONA 0.000 166.725 0.000 3.808 0.0000000 0.0228403 7.304
PIERCE, V. I. 10-7 PDP OZONA (CANYON) 0.000 14.888 0.000 8.501 0.7500000 0.5709841 6.181
PIERCE, V. I. 2-1 PDP OZONA 0.000 185.346 0.000 105.830 0.7500000 0.5709841 102.415
PIERCE, V. I. 2-2 PDP OZONA (CANYON) 0.000 2.200 0.000 1.256 0.7500001 0.5709841 0.047
PIERCE, V. I. 2-4 PDP OZONA (CANYON) 2.899 446.017 0.552 84.889 0.2500000 0.1903278 125.123
PIERCE, V. I. 2-5 PDP OZONA (CANYON) 0.000 115.008 0.000 65.668 0.7499999 0.5709841 50.694
PIERCE, V. I. 2-6 PDP OZONA (CANYON) 0.000 308.789 0.000 176.314 0.7500000 0.5709841 219.046
PIERCE, V. I. 3-2 PDP OZONA (CANYON) 1.733 192.610 0.330 36.659 0.2500000 0.1903278 41.703
PIERCE, V. I. 9-1 PDP OZONA (CANYON) 0.000 33.343 0.000 19.038 0.7500000 0.5709841 7.492
PIERCE, V. I. 9-3 PDP OZONA (CANYON) 0.000 2.200 0.000 1.256 0.7500001 0.5709841 0.047
PIERCE-HENDERSON 7-1 PDP OZONA 0.000 331.718 0.000 189.406 0.7500000 0.5709841 270.431
PIERCE-HENDERSON 7-2 PDP OZONA 0.000 13.298 0.000 7.593 0.7500000 0.5709841 3.194
PIERCE-HENDERSON 7-3 PDP OZONA (CANYON) 0.000 191.188 0.000 8.397 0.0000000 0.0439216 16.256
PIERCE-HENDERSON 7-4 PDP OZONA (CANYON) 0.000 24.456 0.000 1.074 0.0000000 0.0439216 2.060
PIERCE-HENDERSON 7-5 PDP OZONA (CANYON) 0.000 213.110 0.000 32.465 0.1875000 0.1523400 34.174
PIERCE-HENDERSON 7A-1 PDP OZONA 0.000 1.455 0.000 0.831 0.7500000 0.5709841 0.041
PIERCE-HENDERSON 8-1 PDP OZONA (CANYON) 0.000 200.723 0.000 114.610 0.7500000 0.5709841 88.296
PIERCE-HENDERSON 8-2 PDP OZONA (CANYON) 0.000 0.000 0.000 0.000 0.0000000 0.0439216 0.000
PIERCE-HENDERSON 8-3 PDP OZONA (CANYON) 0.000 643.274 0.000 14.692 0.0000000 0.0228397 27.007
PLACID 1 PDP CARTERVILLE NORTH 0.447 5.588 0.052 0.650 0.1773600 0.1163300 0.205
PLACID 1 - BP PDBP CARTERVILLE N 149.925 1499.252 17.441 174.408 0.1773600 0.1163300 572.814
PORTER PDP TWITTY (GRANITE WASH) 16.837 715.585 4.601 195.563 0.3333300 0.2732914 232.760
RANDOLPH 25-13 1C PDP BETHEL CHURCH 0.000 158.909 0.000 2.175 0.0166906 0.0136842 1.652
RAY 5-1 PDP MOOREWOOD NE (RED FORK) 21.099 296.235 0.408 5.726 0.0000000 0.0193290 19.502
<CAPTION>
DISC NET
LEASE REVENUE
- ------------------------ ---------
<S> <C>
PIERCE, V. I. 10-3 0.519
PIERCE, V. I. 10-4 0.000
PIERCE, V. I. 10-5 35.532
PIERCE, V. I. 10-6 3.602
PIERCE, V. I. 10-7 5.753
PIERCE, V. I. 2-1 57.514
PIERCE, V. I. 2-2 0.046
PIERCE, V. I. 2-4 63.773
PIERCE, V. I. 2-5 31.749
PIERCE, V. I. 2-6 117.381
PIERCE, V. I. 3-2 24.336
PIERCE, V. I. 9-1 6.092
PIERCE, V. I. 9-3 0.046
PIERCE-HENDERSON 7-1 132.998
PIERCE-HENDERSON 7-2 2.560
PIERCE-HENDERSON 7-3 6.652
PIERCE-HENDERSON 7-4 1.538
PIERCE-HENDERSON 7-5 18.341
PIERCE-HENDERSON 7A-1 0.040
PIERCE-HENDERSON 8-1 55.365
PIERCE-HENDERSON 8-2 0.000
PIERCE-HENDERSON 8-3 10.301
PLACID 1 0.202
PLACID 1 - BP 350.340
PORTER 117.005
RANDOLPH 25-13 1C 1.378
RAY 5-1 12.829
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:50
PAGE: 13
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS
LEASE TYPE FIELD OIL GAS
- -------------------------- ------- ------------------------ ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C>
RAY 5-2 PDP MOOREWOOD NE (SKINNER) 0.000 148.199
RAY 5-3 PDP MOOREWOOD NE (SKINNER) 0.000 264.884
RAY 5-4 PDP MOOREWOOD NE (SKINNER) 17.951 1025.798
RAY 5-5 PDP MOOREWOOD NE (SKINNER) 0.000 57.764
RICHARDS, E. PDP CUSHING (BARTLESVILLE) 198.648 0.000
RIPPLE 1-12 PDP REAMS NW 0.000 1453.204
ROBERTS, ERNEST PDP BOLTON 31.582 1010.883
ROBERTSON 20-12 1 PDP FERNBANK 0.000 89.227
ROBERTSON-BLUESTEM PDP SEPTEMBER (9300) 38.320 1751.759
RODGERS, E. 25-1 1 PDP MCGEE LAKE 0.336 22.375
ROSENBLATT PDP BELMONT LAKE (WALKER) 0.000 0.000
ROSEWOOD RESOURCES 10-1 PDP SPRINGHILL (HAYNESVILLE) 41.648 2366.478
ROSEWOOD RESOURCES 10-2 PDP SPRINGHILL 57.459 4093.092
ROSEWOOD RESOURCES 10-3 PDP SPRINGHILL 119.159 9348.184
ROSEWOOD RESOURCES 9-1 PDP SPRINGHILL (HAYNESVILLE) 37.958 1681.819
RUDDER 29-4 PDP PEACHTREE CREEK (COTTON VALLEY 37.995 0.000
S. CARLTON FIELD TOTAL PDP SOUTH CARLTON 2343.071 0.000
S. CARLTON (BARBOUR 16-7) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON (DAVIES 5) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON (OSWELL 11-12) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON (SCOTT 11-11) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON (SCOTT 11-6) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON (SCOTT 15-14) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON (SCOTT 9-9) PDBP SOUTH CARLTON 40.622 0.000
S. CARLTON - LOC 01 PUD 100.106 0.000
S. CARLTON - LOC 02 PUD 100.106 0.000
S. CARLTON - LOC 03 PUD 100.106 0.000
<CAPTION>
NET NET WORKING REVENUE NET DISC NET
LEASE OIL GAS INTEREST INTEREST REVENUE REVENUE
- -------------------------- ---(MB)--- --(MMCF)-- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C> <C>
RAY 5-2 0.000 2.865 0.0000000 0.0193290 5.935 4.383
RAY 5-3 0.000 5.120 0.0000000 0.0193290 11.654 6.505
RAY 5-4 0.347 19.828 0.0000000 0.0193290 47.626 27.422
RAY 5-5 0.000 1.117 0.0000000 0.0193290 2.282 1.929
RICHARDS, E. 116.086 0.000 0.7500000 0.5843800 913.878 436.279
RIPPLE 1-12 0.000 562.034 0.4628999 0.3867553 1009.452 627.252
ROBERTS, ERNEST 23.234 743.664 0.9686025 0.7356582 1470.673 1087.015
ROBERTSON 20-12 1 0.000 7.870 0.1109375 0.0882000 5.289 4.844
ROBERTSON-BLUESTEM 2.912 133.108 0.1081250 0.0759850 241.740 100.375
RODGERS, E. 25-1 1 0.005 0.310 0.0194300 0.0138739 0.055 0.053
ROSENBLATT 0.000 0.000 0.0054800 0.0045000 0.000 0.000
ROSEWOOD RESOURCES 10-1 0.924 52.500 0.0000000 0.0221850 152.211 108.664
ROSEWOOD RESOURCES 10-2 1.360 96.908 0.0000000 0.0236760 276.607 195.847
ROSEWOOD RESOURCES 10-3 2.821 221.328 0.0000000 0.0236760 613.847 399.351
ROSEWOOD RESOURCES 9-1 0.842 37.289 0.0000000 0.0221719 111.446 77.429
RUDDER 29-4 2.019 0.000 0.0800000 0.0531476 23.795 22.040
S. CARLTON FIELD TOTAL 1819.629 0.000 1.0000000 0.7766000 5080.534 3163.538
S. CARLTON (BARBOUR 16-7) 31.547 0.000 1.0000000 0.7766000 370.582 177.427
S. CARLTON (DAVIES 5) 31.547 0.000 1.0000000 0.7766000 370.582 181.705
S. CARLTON (OSWELL 11-12) 31.547 0.000 1.0000000 0.7766000 370.582 176.023
S. CARLTON (SCOTT 11-11) 31.547 0.000 1.0000000 0.7766000 370.582 176.023
S. CARLTON (SCOTT 11-6) 31.547 0.000 1.0000000 0.7766000 370.582 174.631
S. CARLTON (SCOTT 15-14) 31.547 0.000 1.0000000 0.7766000 370.582 180.268
S. CARLTON (SCOTT 9-9) 31.547 0.000 1.0000000 0.7766000 370.582 178.842
S. CARLTON - LOC 01 77.743 0.000 1.0000000 0.7766000 349.884 46.201
S. CARLTON - LOC 02 77.743 0.000 1.0000000 0.7766000 349.884 45.836
S. CARLTON - LOC 03 77.743 0.000 1.0000000 0.7766000 349.884 45.473
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:50
PAGE: 14
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS
LEASE TYPE FIELD OIL GAS
- ------------------------ ------- ------------------------------- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C>
S. CARLTON - LOC 04 PUD 100.106 0.000
S. CARLTON - LOC 05 PUD 100.106 0.000
S. CARLTON - LOC 06 PUD 100.106 0.000
S. CARLTON - LOC 07 PUD 100.106 0.000
S. CARLTON - LOC 08 PUD 100.106 0.000
S. CARLTON - LOC 09 PUD 100.106 0.000
S. CARLTON - LOC 10 PUD 100.106 0.000
S. CARLTON - LOC 11 PUD 100.106 0.000
S. CARLTON - LOC 12 PUD 100.106 0.000
S. CARLTON - LOC 13 PUD 100.106 0.000
S. CARLTON - LOC 14 PUD 100.106 0.000
S. CARLTON - LOC 15 PUD 100.106 0.000
S. CARLTON - LOC 16 PUD 100.106 0.000
S. CARLTON - LOC 17 PRU 100.106 0.000
S. CARLTON - LOC 18 PRU 100.106 0.000
S. CARLTON - LOC 19 PRU 100.106 0.000
S. CARLTON - LOC 20 PRU 100.106 0.000
S. CARLTON - LOC 21 PRU 100.106 0.000
S. CARLTON - LOC 22 PRU 100.106 0.000
S. CARLTON - LOC 24 PRU 100.106 0.000
S. CARLTON - LOC 25 PRU 100.106 0.000
S. CARLTON - LOC 26 PRU 100.106 0.000
S. CARLTON - LOC 27 PRU 100.106 0.000
S. CARLTON - LOC 28 PRU 100.106 0.000
S. CARLTON - LOC 29 PRU 100.106 0.000
SACROC UNIT PDP KELLY-SNYDER 8463.676 0.000
SALE, T.S. JR. 1 PDP OAKS 119.480 0.000
<CAPTION>
NET NET WORKING REVENUE NET DISC NET
LEASE OIL GAS INTEREST INTEREST REVENUE REVENUE
- ------------------------ ---(MB)--- --(MMCF)-- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C> <C> <C>
S. CARLTON - LOC 04 77.743 0.000 1.0000000 0.7766000 349.884 45.113
S. CARLTON - LOC 05 77.743 0.000 1.0000000 0.7766000 349.884 44.757
S. CARLTON - LOC 06 77.743 0.000 1.0000000 0.7766000 349.884 44.402
S. CARLTON - LOC 07 77.743 0.000 1.0000000 0.7766000 349.884 44.051
S. CARLTON - LOC 08 77.743 0.000 1.0000000 0.7766000 349.884 43.703
S. CARLTON - LOC 09 77.743 0.000 1.0000000 0.7766000 349.884 43.357
S. CARLTON - LOC 10 77.743 0.000 1.0000000 0.7766000 349.884 43.014
S. CARLTON - LOC 11 77.743 0.000 1.0000000 0.7766000 349.884 42.674
S. CARLTON - LOC 12 77.743 0.000 1.0000000 0.7766000 349.884 42.336
S. CARLTON - LOC 13 77.743 0.000 1.0000000 0.7766000 349.884 42.001
S. CARLTON - LOC 14 77.743 0.000 1.0000000 0.7766000 349.884 41.669
S. CARLTON - LOC 15 77.743 0.000 1.0000000 0.7766000 349.884 41.339
S. CARLTON - LOC 16 77.743 0.000 1.0000000 0.7766000 349.884 41.012
S. CARLTON - LOC 17 77.743 0.000 1.0000000 0.7766000 349.884 40.688
S. CARLTON - LOC 18 77.743 0.000 1.0000000 0.7766000 349.884 40.366
S. CARLTON - LOC 19 77.743 0.000 1.0000000 0.7766000 349.884 40.047
S. CARLTON - LOC 20 77.743 0.000 1.0000000 0.7766000 349.884 39.730
S. CARLTON - LOC 21 77.743 0.000 1.0000000 0.7766000 349.884 39.415
S. CARLTON - LOC 22 77.743 0.000 1.0000000 0.7766000 349.884 39.104
S. CARLTON - LOC 24 77.743 0.000 1.0000000 0.7766000 349.884 38.487
S. CARLTON - LOC 25 77.743 0.000 1.0000000 0.7766000 349.884 38.183
S. CARLTON - LOC 26 77.743 0.000 1.0000000 0.7766000 349.884 37.881
S. CARLTON - LOC 27 77.743 0.000 1.0000000 0.7766000 349.884 38.794
S. CARLTON - LOC 28 77.743 0.000 1.0000000 0.7766000 349.884 37.284
S. CARLTON - LOC 29 77.743 0.000 1.0000000 0.7766000 349.884 37.581
SACROC UNIT 1.693 0.000 0.0000000 0.0000917 31.803 20.726
SALE, T.S. JR. 1 10.496 0.000 0.1250000 0.0878438 116.679 50.213
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:51
PAGE: 15
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
SARKEY FDN UN 3 PDP KINTA 0.000 0.000 0.000 0.000
SARKEYS UNIT PDP BROOKEN (HARTSHORNE) 0.000 998.670 0.000 218.459
SCRUGGS 15-10 PDP SHANNON EAST 0.000 238.918 0.000 180.761
SCRUGGS 15-10 BP PDBP SHANNON EAST 0.000 800.000 0.000 605.268
SCRUGGS 15-10 BP2 POD SHANNON EAST 0.000 125.000 0.000 94.573
SHIPP 34-A PDP CASEY (STRAWN) 811.855 1522.227 24.599 46.123
SHRINERS HOSPITAL A-1 PDP LISBON 83.869 2306.401 3.140 86.352
SIMMONS 2-31 PDP CARPENTER (MORROW UPPER) 0.000 2302.919 0.000 64.247
SIMONTON, J.S. 1 PDP BETHANY LONGSTREET 6.970 696.990 1.757 175.718
SIMPSON NW NW PDP SIMPSON RANCH (MINNELUSA) 126.069 0.000 15.523 0.000
SISSON OLIVER 29-13 PDP MCGEE LAKE 0.000 218.360 0.000 8.317
SMACKOVER 'A' POOL TOTAL PDP CYPRESS CREEK SOUTH (SMACKOVER 2592.198 773.791 11.655 3.479
SMACKOVER UNIT PDP LAKE COMO (SMACKOVER) 3392.723 2470.112 44.071 32.087
SMITH 28-9* PDP ARMSTRONG BRANCH 0.746 41.451 0.199 11.045
SMITH 5-8 1C PDP LINEBARGER CREEK 0.000 456.270 0.000 293.978
SMITH 5-8 1L PDP LINEBARGER CREEK 0.000 55.519 0.000 38.177
SMITH 5-8 BP POD LINEBARGER CREEK 0.000 249.565 0.000 160.796
SMITH L R 1 PDP BLOOMING GROVE 0.000 103.559 0.000 13.369
SMITH L R 1 BP PDBP BLOOMING GROVE 0.000 99.147 0.000 12.799
SMITH NO 1-34 PDP ICONIUM NW 32.591 7.943 24.854 6.057
SMITH NO 1-34 PDBP PDBP ICONIUM NW 19.505 97.525 14.874 74.372
SMITH, A. PDP EAST TEXAS 99.732 37.400 0.237 0.089
SMITH, LAMAR A. 3 PDP SPRINGHILL 174.017 11204.506 4.034 259.708
SNYDER - STATE OF TEXAS GAS UN PDP WORSHAM-BAYER (DEVONIAN) 27.744 10727.873 1.993 770.583
SORENSON 11-13 NNW NW PDP UNION CENTER (MADISON) 35.986 71.972 1.071 2.142
SORRELL PDP EAST TEXAS 72.989 21.897 0.201 0.060
SOSO FIELD UNIT 28-5 PDP SOSO (RODESSA 0.000 0.000 0.000 0.000
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENU REVENUE
- ----------------------------- ------- -------- ---(M$--- @10.00% M$
<S> <C> <C> <C> <C>
SARKEY FDN UN 3 0.2500000 0.2187500 0.000 0.000
SARKEYS UNIT 0.2500000 0.2187500 401.958 246.167
SCRUGGS 15-10 1.0000000 0.7565848 385.928 308.515
SCRUGGS 15-10 BP 1.0000000 0.7565848 1312.677 299.861
SCRUGGS 15-10 BP2 1.0000000 0.7565848 184.456 11.234
SHIPP 34-A 0.0415000 0.0303000 394.991 158.302
SHRINERS HOSPITAL A-1 0.0445000 0.0374400 173.067 112.950
SIMMONS 2-31 0.0000000 0.0278982 116.393 57.567
SIMONTON, J.S. 1 0.3075000 0.2521100 277.313 193.145
SIMPSON NW NW 0.1847000 0.1231272 159.872 75.073
SISSON OLIVER 29-13 0.0468800 0.0380900 8.436 6.824
SMACKOVER 'A' POOL TOTAL 0.0000000 0.0044963 195.061 93.317
SMACKOVER UNIT 0.0158400 0.0129900 497.890 277.101
SMITH 28-9* 0.3500000 0.2664590 12.564 10.764
SMITH 5-8 1C 0.8968732 0.6443064 551.495 359.401
SMITH 5-8 1L 0.8985957 0.6876268 46.621 41.224
SMITH 5-8 BP 0.8968732 0.6443064 257.991 43.551
SMITH L R 1 0.1684400 0.1290930 11.144 8.918
SMITH L R 1 BP 0.1684400 0.1290930 16.916 7.094
SMITH NO 1-34 1.0000000 0.7625995 331.098 266.227
SMITH NO 1-34 PDBP 1.0000000 0.7625996 374.620 217.657
SMITH, A. 0.0000000 0.0023773 4.556 2.762
SMITH, LAMAR A. 3 0.0000000 0.0231789 748.272 495.614
SNYDER - STATE OF TEXAS
GAS UN 0.0937500 0.0718300 1725.929 472.010
SORENSON 11-13 NNW NW 0.0000000 0.0297637 23.602 12.930
SORRELL 0.0000000 0.0027524 3.757 2.316
SOSO FIELD UNIT 28-5 0.0000000 0.0002650 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:52
PAGE: 16
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
SPARKS 14-3 1T PDP MCCRACKEN MTN 0.000 405.975 0.000 9.957
SPENCER WALKER 1 PDP HICO-KNOWLES 23.653 1742.845 4.453 328.108
STANSBURY 2 PDP D'ARBONE 1.494 249.001 0.791 131.783
STATE 17 PDP AUSTIN (MISSISSIPPIAN) MI 4.760 1410.253 0.488 144.551
STATE 32 PDP BAUM (UPPER PENN) UP 8.369 108.794 2.230 28.989
STATE 904 L-3 GAS UNIT PDP G O M ST-904 (FRIO 8200) 17.762 1953.826 3.300 363.011
STATE 904 l-1 GAS UNIT PDP G O M ST-904 (FRIO 1-A) 67.549 1179.508 11.289 197.130
STATE QE 13 PDP RANGER LAKE (PENN) PN 36.970 96.123 13.856 36.027
STATE TRACT 562-L PDP MATAGORDA BLOCK 562-L (6470 26.923 12.115 1.009 0.454
STEELE 44C-3 PDP HARKER RANCH (MORROW) 98.451 1640.842 16.172 269.541
STEINER-SCHWAB 17-13 PDP BOXES CREEK 0.000 22.167 0.000 1.813
STEINER-SCHWAB 17-5 PDP BOXES CREEK 0.000 146.312 0.000 32.949
STEINER-SCHWAB 26-5 PDP MUSGROVE CREEK 0.000 203.431 0.000 45.357
STEINER-SCHWAB 26-5 BP POD MUSGROVE CREEK 0.000 249.409 0.000 55.608
STRAWBRIDGE DW 33-14 1 PDP BEAVERTON 0.000 193.820 0.000 34.420
STRAWBRIDGE R H 9-2 2 PDP LITTLE HELLS CREEK 0.000 81.961 0.000 1.961
STRITE PDP DARBUN NORTH (TUSCALOOSA LWR) 16.702 0.000 0.283 0.000
SUGGS 16-10 1 PDP FERNBANK 0.000 1247.820 0.000 26.034
TALLY 31-16 1C PDP BALLS BRANCH 0.000 31.471 0.000 18.676
TALLY 31-16 1C BP PDBP BALLS BRANCH 0.000 250.000 0.000 148.359
TALLY 31-16 1T PDP BALLS BRANCH 0.000 372.074 0.000 220.802
TAYLOR, JOY 1 PDP CARPENTER (MORROW UPPER) 0.000 7018.556 0.000 178.271
TCGU7 (LEOPARD, C.W. 1) PDP TRI-CITIES (TRAVIS PEAK LOWER) 0.000 1408.811 0.000 2.070
TIOGA-MADISON UNIT PDP TIOGA (MADISON) 2112.812 7294.384 17.774 61.363
TRAVIS PEAK SUC PDP SUGAR CREEK 5.092 360.662 0.901 63.829
TROUTT-MARSH PDP ICONIUM NW 15.123 105.860 11.376 79.634
TUCKER 9-13 PDP PALMETTO SOUTH (MISSISSIPPIAN 0.000 228.157 0.000 1.739
<CAPTION>
WORKING REVENUE NET DISC NET
INTEREST INTEREST REVENU REVENUE
- ----------------------------- ------- -------- ---(M$--- @10.00% M$
<S> <C> <C> <C> <C>
SPARKS 14-3 1T 0.0312500 0.0245266 10.316 8.378
SPENCER WALKER 1 0.2296300 0.1882600 632.998 260.476
STANSBURY 2 0.6326230 0.5292460 280.310 175.340
STATE 17 0.1250000 0.1025000 252.989 118.980
STATE 32 0.3500000 0.2664590 99.440 53.305
STATE 904 L-3 GAS UNIT 0.2478040 0.1857950 847.837 735.666
STATE 904 l-1 GAS UNIT 0.2246620 0.1671290 580.201 469.449
STATE QE 13 0.5000000 0.3748000 223.593 161.491
STATE TRACT 562-L 0.0000000 0.0374800 19.021 15.841
STEELE 44C-3 0.2250000 0.1642700 863.768 670.716
STEINER-SCHWAB 17-13 0.1004297 0.0817908 0.472 0.454
STEINER-SCHWAB 17-5 0.2601722 0.2251980 25.650 19.676
STEINER-SCHWAB 26-5 0.2935100 0.2229600 47.340 33.424
STEINER-SCHWAB 26-5 BP 0.2935100 0.2229600 79.558 17.560
STRAWBRIDGE DW 33-14 1 0.2332700 0.1775887 26.398 21.907
STRAWBRIDGE R H 9-2 2 0.0306300 0.0239300 0.807 0.656
STRITE 0.0000000 0.0169718 5.620 4.492
SUGGS 16-10 1 0.0280100 0.0208632 42.185 28.900
TALLY 31-16 1C 0.8869788 0.5934365 21.984 18.224
TALLY 31-16 1C BP 0.8869788 0.5934365 303.931 123.988
TALLY 31-16 1T 0.8869787 0.5934363 490.251 283.849
TAYLOR, JOY 1 0.0000000 0.0254000 440.557 289.667
TCGU7 (LEOPARD, C.W. 1) 0.0000000 0.0014696 4.891 2.964
TIOGA-MADISON UNIT 0.0000000 0.0084123 452.826 212.178
TRAVIS PEAK SUC 0.1975260 0.1769783 117.725 95.509
TROUTT-MARSH 1.0000000 0.7522556 330.932 253.577
TUCKER 9-13 0.0000000 0.0076212 4.593 2.683
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:53
PAGE: 17
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- --------------------------- ------- -------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TWIN WOMAN NW/4 PDP FAY EAST (CNGM-PRMR) 5.595 1398.831 2.344 585.970
UNIVERSITY -1829- PDP WAR-WINK SOUTH (WOLFCAMP) 361.967 773.294 34.061 72.767
UNIVERSITY 10-18 #A-6 -PUD PUD WAR-WINK SOUTH 29.993 817.248 2.339 63.745
UNIVERSITY 10-18 #A-7-PUD PUD WAR-WINK SOUTH 29.993 817.248 2.339 63.745
UNIVERSITY 10-18 #B-8-PUD PUD WAR-WINK SOUTH 29.992 813.953 2.249 61.046
UNIVERSITY 10-18 #B-9 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 2.339 63.745
UNIVERSITY 10-18 1-U PDP WAR-WINK SOUTH (FUSSELMAN) 0.000 14498.209 0.000 943.833
UNIVERSITY 10-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 46.734 46.734 3.599 3.599
UNIVERSITY 10-18 A-3, A-4 & A- PDP BLOCK 18 (CHERRY CANYON) 33.733 710.934 2.037 42.929
UNIVERSITY 10-18 B-2 & B-4 PDP WAR-WINK S-WOLFCAMP 0.000 0.000 0.000 0.000
UNIVERSITY 10-18 B-6 PDP BLOCK 18 (CHERRY CANYON) 0.849 460.197 0.071 38.355
UNIVERSITY 1018 'B' PDP BLOCK 18 (CHERRY CANYON) 4.486 6.630 0.374 0.553
UNIVERSITY 11-18 #A-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 #B-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 #B-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 #B-5 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 25.932 86.441 1.687 5.625
UNIVERSITY 11-18 A-3 PDP BLOCK 18 (CHERRY CANYON) 5.528 251.292 0.348 15.827
UNIVERSITY 11-18 B-1 & B-2 PDP WAR-WINK SOUTH (WOLFCAMP) 109.613 70.038 7.132 4.557
UNIVERSITY 18-29 #2 PUD PUD WAR-WINK SOUTH 30.000 808.773 2.823 76.105
UNIVERSITY 18-29 #5 PUD PUD WAR-WINK SOUTH 30.000 799.461 2.823 75.229
UNIVERSITY 18-29 #7 PUD PUD WAR-WINK SOUTH 30.000 799.461 2.823 75.229
UNIVERSITY 18-29 4 PDP QUITO EAST (CHERRY CANYON) 1.305 87.004 0.084 5.575
UNIVERSITY 18-29 GAS UNIT 1 PDP QUITO EAST (ATOKA) 0.000 323.204 0.000 40.959
UNIVERSITY 18-30 #2 PDP QUITO EAST (CHERRY CANYON) 55.244 1972.985 5.696 203.415
UNIVERSITY 18-31 1 PDP QUITO EAST (CHERRY CANYON) 0.000 0.000 0.000 0.000
UNIVERSITY 18-31 3 PDP EAST QUITO (CHERRY CANYON) 0.000 0.000 0.000 0.000
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- --------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TWIN WOMAN NW/4 0.5272400 0.4189000 1112.065 756.047
UNIVERSITY -1829- 0.1318000 0.0941000 406.063 229.246
UNIVERSITY 10-18 #A-6 -PUD 0.1000000 0.0780000 122.365 90.004
UNIVERSITY 10-18 #A-7-PUD 0.1000000 0.0780000 122.365 88.586
UNIVERSITY 10-18 #B-8-PUD 0.1000000 0.0750000 114.963 83.771
UNIVERSITY 10-18 #B-9 PROBABLE 0.1000000 0.0780000 122.366 87.885
UNIVERSITY 10-18 1-U 0.0834000 0.0651000 2246.024 1743.860
UNIVERSITY 10-18 A-1 & A-2 0.1088300 0.0770000 31.453 26.529
UNIVERSITY 10-18 A-3, A-4 & A- 0.0833000 0.0603840 108.285 96.659
UNIVERSITY 10-18 B-2 & B-4 0.0833000 0.0650695 0.000 0.000
UNIVERSITY 10-18 B-6 0.1052000 0.0833444 47.360 38.869
UNIVERSITY 1018 'B' 0.1052000 0.0833444 1.293 1.264
UNIVERSITY 11-18 #A-4 PROBABLE 0.0833300 0.0650000 101.974 72.660
UNIVERSITY 11-18 #B-3 PROBABLE 0.0833300 0.0650000 101.974 72.085
UNIVERSITY 11-18 #B-4 PROBABLE 0.0833300 0.0650000 101.974 71.515
UNIVERSITY 11-18 #B-5 PROBABLE 0.0833300 0.0650000 101.974 70.949
UNIVERSITY 11-18 A-1 & A-2 0.0833000 0.0650695 16.316 14.015
UNIVERSITY 11-18 A-3 0.1000000 0.0629829 23.315 21.580
UNIVERSITY 11-18 B-1 & B-2 0.0833000 0.0650695 69.645 54.903
UNIVERSITY 18-29 #2 PUD 0.1318000 0.0941000 141.956 93.334
UNIVERSITY 18-29 #5 PUD 0.1318000 0.0941000 141.863 91.832
UNIVERSITY 18-29 #7 PUD 0.1318000 0.0941000 141.863 90.385
UNIVERSITY 18-29 4 0.1257782 0.0640807 2.006 1.876
UNIVERSITY 18-29 GAS UNIT 1 0.1584610 0.1267265 54.593 40.607
UNIVERSITY 18-30 #2 0.1258000 0.1031000 451.540 252.727
UNIVERSITY 18-31 1 0.1257782 0.0640807 0.000 0.000
UNIVERSITY 18-31 3 0.1257782 0.0640807 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:53
PAGE: 18
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- --------------------------- ------- -------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
UNIVERSITY 18-31 4 PDP QUITO EAST (CHERRY CANYON) 4.683 425.769 0.300 27.284
UNIVERSITY 18-31 6 PDP QUITO EAST (CHERRY CANYON) 10.275 205.500 0.658 13.169
UNIVERSITY 18-5 #3 PDP BLOCK 17 (CHERRY CANYON) 9.251 172.685 2.200 41.058
UNIVERSITY 18-6 2-U PDP WAR-WINK SOUTH (FUSSELMAN) 0.000 0.000 0.000 0.000
UNIVERSITY 18-6 3 PDP WAR-WINK SOUTH (WOLFCAMP) 10.620 10.620 2.525 2.525
UNIVERSITY 1829-6, 8 & 10 PDP QUITO EAST (CHERRY CANYON) 62.215 221.344 7.884 28.050
UNIVERSITY 22-18 #A-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 22-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 72.354 32.348 6.647 2.972
UNIVERSITY 22-18 B-1 PDP WAR-WINK SOUTH (WOLFCAMP) 0.000 0.000 0.000 0.000
UNIVERSITY 23-18 #A-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 23-18 #A-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 23-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 35.107 72.311 2.284 4.705
UNIVERSITY 24-18 #2 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 24-18 A-1 PDP WAR-WINK SOUTH (WOLFCAMP) 0.000 0.000 0.000 0.000
UNIVERSITY 9-18 #A-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 9-18 #A-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 9-18 -B- PDP WAR-WINK SOUTH (WOLFCAMP) 30.269 82.000 1.970 5.336
UNIVERSITY 9-18 A-1 PDP BLOCK 18 (CHERRY CANYON) 45.803 412.226 3.179 28.608
WALKER, GW 6-7 PDP CAMP CREEK 170.188 0.000 39.860 0.000
WALKER, P., ET AL 2-L PDP QUITO EAST (ELLENBURGER) 0.000 99.207 0.000 12.709
WALKER, P., ET AL 4 PDP EAST QUITO (CHERRY CANYON) 0.000 322.128 0.000 41.265
WALKER, P., ET AL 5 & 6 PDP QUITO EAST (CHERRY CANYON) 14.876 956.452 1.906 122.523
WATKINS AIRHART 6-16 PDP FAYETTE SW 0.000 865.545 0.000 21.289
WAYSIDE OIL UNIT SE NW PDP WAYSIDE 73.414 8.956 0.075 0.009
WELLS 1-28 NW PDP GOLDEN TREND (HNTN-SCMR-WDFD) 1.733 57.773 0.005 0.160
WELLS GAS UNIT 2-T PDP WASKOM 0.167 16.661 0.028 2.817
WELLS, M. W. 1-T PDP WASKOM (TRAVIS PEAK 1) 0.716 295.470 0.121 49.955
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- --------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
UNIVERSITY 18-31 4 0.1257782 0.0640807 24.567 19.711
UNIVERSITY 18-31 6 0.1257782 0.0640807 11.315 9.086
UNIVERSITY 18-5 #3 0.3614154 0.2377637 59.062 38.971
UNIVERSITY 18-6 2-U 0.2900000 0.2377637 0.000 0.000
UNIVERSITY 18-6 3 0.2900000 0.2377638 18.504 16.665
UNIVERSITY 1829-6, 8 & 10 0.1584610 0.1267265 92.154 75.750
UNIVERSITY 22-18 #A-3 PROBABLE 0.0833300 0.0650000 101.974 70.388
UNIVERSITY 22-18 A-1 & A-2 0.1176470 0.0918627 65.614 48.705
UNIVERSITY 22-18 B-1 0.1176470 0.0918627 0.000 0.000
UNIVERSITY 23-18 #A-3 PROBABLE 0.0833300 0.0650000 101.974 69.831
UNIVERSITY 23-18 #A-4 PROBABLE 0.0833300 0.0650000 101.974 69.278
UNIVERSITY 23-18 A-1 & A-2 0.0833333 0.0650695 27.659 24.492
UNIVERSITY 24-18 #2 PROBABLE 0.0833300 0.0650000 101.974 68.730
UNIVERSITY 24-18 A-1 0.0833333 0.0650695 0.000 0.000
UNIVERSITY 9-18 #A-3 PROBABLE 0.0833300 0.0650000 101.974 68.186
UNIVERSITY 9-18 #A-4 PROBABLE 0.0833300 0.0650000 101.974 67.647
UNIVERSITY 9-18 -B- 0.0833000 0.0650695 27.120 21.846
UNIVERSITY 9-18 A-1 0.0694000 0.0694000 87.211 68.894
WALKER, GW 6-7 0.3333000 0.2342100 551.500 372.324
WALKER, P., ET AL 2-L 0.1562451 0.1281016 4.038 3.167
WALKER, P., ET AL 4 0.1562451 0.1281016 17.985 13.626
WALKER, P., ET AL 5 & 6 0.1562451 0.1281016 123.631 83.437
WATKINS AIRHART 6-16 0.0350000 0.0245963 26.435 13.108
WAYSIDE OIL UNIT SE NW 0.0015900 0.0010155 0.232 0.215
WELLS 1-28 NW 0.0000000 0.0027751 0.453 0.406
WELLS GAS UNIT 2-T 0.2062200 0.1690700 0.580 0.547
WELLS, M. W. 1-T 0.2062200 0.1690700 84.896 76.074
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/23/96
TIME: 12:55:54
PAGE: 19
LEE KEELING AND ASSOCIATES, INC.
LEASE SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- --------------------------- ------- -------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
WEYERHAEUSER 17-2 NW NE PDP BLUFF 0.000 0.000 0.000 0.000
WHITAKER 25-15 1 PDP BETHEL CHURCH 0.000 99.602 0.000 23.616
WHITAKER 25-15 1 BP PDBP BETHEL CHURCH 0.000 249.501 0.000 59.157
WHITE 8-4 PDP BLOOMING GROVE 0.000 149.276 0.000 80.001
WHITE 8-4 PROB PRDP BLOOMING GROVE 0.000 497.630 0.000 266.691
WHITLEY S L 1 PDNP BLOOMING GROVE 0.000 78.775 0.000 15.735
WYNN 1 PDP STUART RANCH 5.070 582.778 1.566 180.009
GRAND TOTAL 87356.608 584245.442 7554.708 31360.915
57657.186
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- --------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
WEYERHAEUSER 17-2 NW NE 0.0082000 0.0067254 0.000 0.000
WHITAKER 25-15 1 0.2843800 0.2371000 26.714 23.683
WHITAKER 25-15 1 BP 0.2843800 0.2371000 90.268 62.898
WHITE 8-4 0.6814975 0.5359227 55.555 44.079
WHITE 8-4 PROB 0.6814975 0.5359227 417.473 163.110
WHITLEY S L 1 0.2360300 0.1997500 12.679 10.402
WYNN 1 0.4145310 0.3088800 354.614 182.869
GRAND TOTAL 115288.106 57657.186
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:17:59
PAGE: 1
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
SMITH 28-9* PDP ARMSTRONG BRANCH 0.746 41.451 0.199 11.045 0.3500000
TOTAL FIELD: ARMSTRONG BR 0.746 41.451 0.199 11.045
BENTON, ALLEN PDP BEAVERTON 0.000 153.263 0.000 10.206 0.0874600
HOLLY JF 32-8 PDP BEAVERTON 0.000 295.327 0.000 53.223 0.2367200
STRAWBRIDGE DW 33-14 1 PDP BEAVERTON 0.000 193.820 0.000 34.420 0.2332700
TOTAL FIELD: BEAVERTON 0.000 642.410 0.000 97.849
MCCALEB 26-9 PDP BETHEL CHURCH 0.000 42.691 0.000 11.389 0.3159400
MCCALEB 26-9 BP PDBP BETHEL CHURCH 0.000 324.737 0.000 86.637 0.3159400
MCCALEB 26-9 POSS POD BETHEL CHURCH 0.000 500.000 0.000 133.395 0.3159400
RANDOLPH 25-13 1C PDP BETHEL CHURCH 0.000 158.909 0.000 2.175 0.0166906
WHITAKER 25-15 1 PDP BETHEL CHURCH 0.000 99.602 0.000 23.616 0.2843800
WHITAKER 25-15 1 BP PDBP BETHEL CHURCH 0.000 249.501 0.000 59.157 0.2843800
TOTAL FIELD: BETHEL CHURC 0.000 1375.440 0.000 316.369
BARNES EST 1 PDNP BLOOMING GROVE 0.000 138.761 0.000 40.515 0.3501000
BARNES EST 1 BP PDBP BLOOMING GROVE 0.000 250.000 0.000 72.995 0.3501000
BARNES EST 1 POSS POD BLOOMING GROVE 0.000 499.277 0.000 145.779 0.3501000
BERRY 8-10 PDP BLOOMING GROVE 0.000 0.000 0.000 0.000 0.0992200
BERRY 8-10 POSS POD BLOOMING GROVE 0.000 599.941 0.000 48.427 0.0992200
BROWN 1-9 PDP BLOOMING GROVE 0.000 165.626 0.000 12.263 0.0935200
BROWN N P 1 PDNP BLOOMING GROVE 0.000 49.722 0.000 15.031 0.4313000
BROWN N P 1 BP PDBP BLOOMING GROVE 0.000 299.602 0.000 90.567 0.4313000
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
SMITH 28-9* 0.2664590 12.564 10.764
TOTAL FIELD: ARMSTRONG BR 12.564 10.764
BENTON, ALLEN 0.0665900 16.987 10.729
HOLLY JF 32-8 0.1802169 52.079 39.959
STRAWBRIDGE DW 33-14 1 0.1775887 26.398 21.907
TOTAL FIELD: BEAVERTON 95.464 72.595
MCCALEB 26-9 0.2667900 15.081 13.428
MCCALEB 26-9 BP 0.2667900 173.173 135.618
MCCALEB 26-9 POSS 0.2667900 276.141 107.305
RANDOLPH 25-13 1C 0.0136842 1.652 1.378
WHITAKER 25-15 1 0.2371000 26.714 23.683
WHITAKER 25-15 1 BP 0.2371000 90.268 62.898
TOTAL FIELD: BETHEL CHURC 583.029 344.310
BARNES EST 1 0.2919800 36.496 28.092
BARNES EST 1 BP 0.2919800 161.904 127.754
BARNES EST 1 POSS 0.2919800 277.826 96.487
BERRY 8-10 0.0807200 0.000 0.000
BERRY 8-10 POSS 0.0807200 90.226 66.008
BROWN 1-9 0.0740424 11.517 8.328
BROWN N P 1 0.3022900 8.803 7.664
BROWN N P 1 BP 0.3022900 148.959 84.344
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:00
PAGE: 2
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
BROWN NELL 7-3 NE NW PDP BLOOMING GROVE 0.000 0.000 0.000 0.000 0.0437540
BUTTS J T 1 PDP BLOOMING GROVE 0.000 135.984 0.000 21.883 0.1875000
COBB VICK 2-10 1 NW SE PDP BLOOMING GROVE 0.000 61.648 0.000 5.428 0.1027733
GRIMSLEY A M 1 PDNP BLOOMING GROVE 0.000 145.525 0.000 41.492 0.3501000
GRIMSLEY A M 2 PDP BLOOMING GROVE 0.000 175.647 0.000 36.305 0.2500000
GRIMSLEY A M 2 BP PDBP BLOOMING GROVE 0.000 300.000 0.000 62.007 0.2500000
GRIMSLEY A M 2 POSS POD BLOOMING GROVE 0.000 499.277 0.000 103.195 0.2500000
HIGGINS JIMMY 7-15 PDNP BLOOMING GROVE 0.000 93.765 0.000 16.135 0.2512500
HIGGINS JIMMY 7-15 BP PDBP BLOOMING GROVE 0.000 499.673 0.000 85.982 0.2512500
HIGGINS JIMMY 7-15 POSS POD BLOOMING GROVE 0.000 499.277 0.000 85.914 0.2512500
MURPHY-RANDOLPH 1 PDP BLOOMING GROVE 0.000 474.068 0.000 186.783 0.5140625
MURPHY-RANDOLPH 1 BP PDBP BLOOMING GROVE 0.000 125.000 0.000 49.250 0.5140625
MURPHY-RANDOLPH 1 BP2 PRDP BLOOMING GROVE 0.000 399.638 0.000 157.457 0.5140625
MURPHY-RANDOLPH 1 BP3 POD BLOOMING GROVE 0.000 499.277 0.000 196.715 0.5140625
SMITH L R 1 PDP BLOOMING GROVE 0.000 103.559 0.000 13.369 0.1684400
SMITH L R 1 BP PDBP BLOOMING GROVE 0.000 99.147 0.000 12.799 0.1684400
WHITE 8-4 PDP BLOOMING GROVE 0.000 149.276 0.000 80.001 0.6814975
WHITE 8-4 PROB PRDP BLOOMING GROVE 0.000 497.630 0.000 266.691 0.6814975
WHITLEY S L 1 PDNP BLOOMING GROVE 0.000 78.775 0.000 15.735 0.2360300
TOTAL FIELD: BLOOMING GRO 0.000 6840.095 0.000 1862.718
BLOWHORN CREEK MILLERELLA UNIT PDP BLOWHORN CREEK 102.658 0.000 7.535 0.000 0.0948500
GILMER 25-15 PDP BLOWHORN CREEK 0.000 357.082 0.000 137.572 0.4615250
MORRISON 35-1C PDP BLOWHORN CREEK 0.000 3.121 0.000 0.227 0.0869500
MORRISON 35-1M PDP BLOWHORN CREEK 0.000 1.358 0.000 0.099 0.0869500
MORRISON 35-1M BP POD BLOWHORN CREEK 0.000 350.000 0.000 25.414 0.0869500
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
BROWN NELL 7-3 NE NW 0.0371600 0.000 0.000
BUTTS J T 1 0.1609200 19.469 15.350
COBB VICK 2-10 1 NW SE 0.0880425 2.914 2.453
GRIMSLEY A M 1 0.2851200 40.421 30.354
GRIMSLEY A M 2 0.2066900 36.170 27.755
GRIMSLEY A M 2 BP 0.2066900 130.286 93.265
GRIMSLEY A M 2 POSS 0.2066900 194.874 74.591
HIGGINS JIMMY 7-15 0.1720776 9.134 7.278
HIGGINS JIMMY 7-15 BP 0.1720776 142.234 53.256
HIGGINS JIMMY 7-15 POSS 0.1720776 157.948 22.393
MURPHY-RANDOLPH 1 0.3940000 245.713 158.363
MURPHY-RANDOLPH 1 BP 0.3940000 107.648 94.557
MURPHY-RANDOLPH 1 BP2 0.3940000 265.023 156.573
MURPHY-RANDOLPH 1 BP3 0.3940000 362.608 105.190
SMITH L R 1 0.1290930 11.144 8.918
SMITH L R 1 BP 0.1290930 16.916 7.094
WHITE 8-4 0.5359227 55.555 44.079
WHITE 8-4 PROB 0.5359227 417.473 163.110
WHITLEY S L 1 0.1997500 12.679 10.402
TOTAL FIELD: BLOOMING GRO 2963.940 1493.658
BLOWHORN CREEK MILLERELLA UNIT 0.0734000 30.310 26.614
GILMER 25-15 0.3852678 162.766 92.095
MORRISON 35-1C 0.0726100 0.014 0.014
MORRISON 35-1M 0.0726100 0.012 0.011
MORRISON 35-1M BP 0.0726100 55.807 38.689
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:01
PAGE: 3
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
MORRISON 36-4C PDP BLOWHORN CREEK 0.000 0.000 0.000 0.000
MORRISON 36-4M PDP BLOWHORN CREEK 1.125 24.949 0.535 11.867
MORRISON 36-4M BP PDBP BLOWHORN CREEK 0.000 650.000 0.000 309.167
MORRISON 36-4M POSS POD BLOWHORN CREEK 0.000 999.716 0.000 475.506
TOTAL FIELD: BLOWHORN CRE 103.783 2386.226 8.070 959.852
BLOWHORN CREEK, NORTH UNIT PDP BLOWHORN CREEK NORTH 81.106 0.000 1.178 0.000
TOTAL FIELD: BLOWHORN CRE 81.106 0.000 1.178 0.000
ATKINSON CHAS-FED LD BK 1-17 PDP BLUFF 0.000 0.000 0.000 0.000
FOWLER 7 1 NE NE PDP BLUFF 55.882 0.000 16.036 0.000
FOWLER MORGAN 8 4 PDP BLUFF 128.681 0.000 4.660 0.000
FOWLER, JULIA SIZEMORE 6-16 #1 PDP BLUFF 5.485 0.000 0.168 0.000
JONES JIMMY RAY 7-7 PDP BLUFF 0.000 0.000 0.000 0.000
WEYERHAEUSER 17-2 NW NE PDP BLUFF 0.000 0.000 0.000 0.000
TOTAL FIELD: BLUFF 190.048 0.000 20.864 0.000
STEINER-SCHWAB 17-13 PDP BOXES CREEK 0.000 22.167 0.000 1.813
STEINER-SCHWAB 17-5 PDP BOXES CREEK 0.000 146.312 0.000 32.949
TOTAL FIELD: BOXES CREEK 0.000 168.479 0.000 34.762
GRACE 35-2C PDP CHICKEN SWAMP BRANCH 0.000 2038.835 0.000 1133.547
GRACE 35-2L PDP CHICKEN SWAMP BRANCH 0.000 100.604 0.000 55.877
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
MORRISON 36-4C 0.6545000 0.4756409 0.000 0.000
MORRISON 36-4M 0.6544999 0.4756409 4.364 3.890
MORRISON 36-4M BP 0.6544999 0.4756409 615.068 376.581
MORRISON 36-4M POSS 0.6544999 0.4756409 1036.359 216.219
TOTAL FIELD: BLOWHORN CRE 1904.700 754.113
BLOWHORN CREEK, NORTH UNIT 0.0191300 0.0145243 1.151 1.117
TOTAL FIELD: BLOWHORN CRE 1.151 1.117
ATKINSON CHAS-FED LD BK 1-17 0.0082000 0.0067254 0.000 0.000
FOWLER 7 1 NE NE 0.3500000 0.2869600 266.578 168.248
FOWLER MORGAN 8 4 0.0437500 0.0362143 51.820 24.869
FOWLER, JULIA SIZEMORE 6-16 #1 0.0350000 0.0306300 1.013 0.946
JONES JIMMY RAY 7-7 0.0546900 0.0379191 0.000 0.000
WEYERHAEUSER 17-2 NW NE 0.0082000 0.0067254 0.000 0.000
TOTAL FIELD: BLUFF 319.411 194.063
STEINER-SCHWAB 17-13 0.1004297 0.0817908 0.472 0.454
STEINER-SCHWAB 17-5 0.2601722 0.2251980 25.650 19.676
TOTAL FIELD: BOXES CREEK 26.122 20.130
GRACE 35-2C 0.7000000 0.5559777 2586.709 1067.624
GRACE 35-2L 0.7000000 0.5554160 111.416 60.718
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:01
PAGE: 4
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: CHICKEN SWAM 0.000 2139.439 0.000 1189.424
BUSH 14-15C PDP COAL FIRE CREEK 0.000 182.977 0.000 45.323
BUSH 14-15C BP PDBP COAL FIRE CREEK 0.000 500.000 0.000 123.850
BUSH 14-15C POSS POD COAL FIRE CREEK 0.000 250.000 0.000 61.925
BUSH 14-15L PDP COAL FIRE CREEK 0.000 166.411 0.000 41.220
BUSH DAVID 14-4 1C* PDP COAL FIRE CREEK 0.000 41.991 0.000 6.503
BUSH DAVID 14-4 1T PDP COAL FIRE CREEK 0.000 311.188 0.000 48.191
COBB 12-9 PDP COAL FIRE CREEK 0.000 0.000 0.000 0.000
CUNNINGHAM 16-7 PDP COAL FIRE CREEK 0.000 906.175 0.000 146.941
CUNNINGHAM 16-7 BP PDBP COAL FIRE CREEK 0.000 2000.000 0.000 324.311
CUNNINGHAM 16-7 BP2 PDBP COAL FIRE CREEK 0.000 849.301 0.000 137.719
CUNNINGHAM 16-7 BP3 PDBP COAL FIRE CREEK 0.000 299.492 0.000 48.564
HAMMOND 13-13 1 PDP COAL FIRE CREEK 0.000 15.185 0.000 0.532
IRWIN 7-15 1C PDP COAL FIRE CREEK 0.277 276.518 0.013 12.923
IRWIN 7-15 2 SW SE PDP COAL FIRE CREEK 0.000 325.902 0.000 15.230
KELLY 15-16C PDP COAL FIRE CREEK 0.000 752.732 0.000 133.247
KELLY 15-16C (PROB) PRDP COAL FIRE CREEK 0.000 750.000 0.000 132.763
KELLY 15-16T PDP COAL FIRE CREEK 0.000 112.666 0.000 19.944
NEWMAN CROWLEY 24-5 1C PDP COAL FIRE CREEK 0.000 44.565 0.000 17.751
NEWMAN CROWLEY 24-5 1T PDP COAL FIRE CREEK 0.000 181.887 0.000 74.366
NEWMAN CROWLEY 24-5 1T BP POD COAL FIRE CREEK 0.000 200.000 0.000 81.771
PECOS FOODS 35-11 1 NE SW PDP COAL FIRE CREEK 0.000 35.126 0.000 0.364
TOTAL FIELD: COAL FIRE CR 0.277 8202.116 0.013 1473.438
MCDONALD 36-13 1C PDP CORINTH 0.000 605.428 0.000 287.966
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: CHICKEN SWAM 2698.125 1128.342
BUSH 14-15C 0.2830855 0.2476998 81.393 44.358
BUSH 14-15C BP 0.2830855 0.2476998 287.983 215.563
BUSH 14-15C POSS 0.2830855 0.2476998 134.305 42.953
BUSH 14-15L 0.2830855 0.2476998 72.392 39.972
BUSH DAVID 14-4 1C* 0.1769800 0.1548600 3.796 3.370
BUSH DAVID 14-4 1T 0.1769800 0.1548600 86.257 66.788
COBB 12-9 0.2548438 0.1929220 0.000 0.000
CUNNINGHAM 16-7 0.2013218 0.1621556 247.192 148.725
CUNNINGHAM 16-7 BP 0.2013218 0.1621556 754.592 304.179
CUNNINGHAM 16-7 BP2 0.2013218 0.1621556 284.353 82.138
CUNNINGHAM 16-7 BP3 0.2013218 0.1621556 69.598 8.389
HAMMOND 13-13 1 0.0000000 0.0350466 1.036 0.971
IRWIN 7-15 1C 0.0616900 0.0467332 11.293 9.087
IRWIN 7-15 2 SW SE 0.0616900 0.0467332 13.012 8.596
KELLY 15-16C 0.2384760 0.1770173 285.168 145.728
KELLY 15-16C (PROB) 0.2384076 0.1770173 259.216 3.356
KELLY 15-16T 0.2384076 0.1770173 32.214 21.288
NEWMAN CROWLEY 24-5 1C 0.4764000 0.3983100 19.153 12.569
NEWMAN CROWLEY 24-5 1T 0.4889102 0.4088548 85.738 54.713
NEWMAN CROWLEY 24-5 1T BP 0.4889102 0.4088548 166.526 24.704
PECOS FOODS 35-11 1 NE SW 0.0129100 0.0103768 0.132 0.119
TOTAL FIELD: COAL FIRE CR 2895.349 1237.566
MCDONALD 36-13 1C 0.6544999 0.4756409 306.964 160.011
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:02
PAGE: 5
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
MCDONALD 36-13 BP PDBP CORINTH 0.000 200.000 0.000 95.128
MCDONALD 36-13 M PDP CORINTH 0.000 0.000 0.000 0.000
TOTAL FIELD: CORINTH 0.000 805.428 0.000 383.094
FOWLER 11-4 NW NW PDP DAVIS CHAPEL 0.000 51.479 0.000 2.340
FOWLER 14-1 PDP DAVIS CHAPEL 0.000 336.985 0.000 22.664
FOWLER 2-12 PDP DAVIS CHAPEL 0.000 120.745 0.000 2.730
FOWLER 9-6 PDP DAVIS CHAPEL 0.000 0.000 0.000 0.000
TOTAL FIELD: DAVIS CHAPEL 0.000 509.209 0.000 27.734
CHADLEY 27-9 PDP DAVIS CHAPEL NE 0.000 56.696 0.000 27.318
FOWLER 26-13 1 SW SW PDP DAVIS CHAPEL NE 0.000 0.000 0.000 0.000
FOWLER 26-4 1 NW NW PDP DAVIS CHAPEL NE 0.000 344.492 0.000 39.898
JOHNSON 36-6 1 SE NW PDP DAVIS CHAPEL NE 0.000 117.776 0.000 1.872
NOLAN 6-2 1 NW NE PDP DAVIS CHAPEL NE 0.000 80.256 0.000 8.225
TOTAL FIELD: DAVIS CHAPEL 0.000 599.220 0.000 77.313
WATKINS AIRHART 6-16 PDP FAYETTE SW 0.000 865.545 0.000 21.289
TOTAL FIELD: FAYETTE SW 0.000 865.545 0.000 21.289
HARKINS-STANLEY UNIT 1 PDP FAYETTE WEST 0.000 0.000 0.000 0.000
NORRIS ELVIE 29-8 1 PDP FAYETTE WEST 0.000 119.771 0.000 17.502
NORRIS N G 21-13 PDP FAYETTE WEST 0.000 208.069 0.000 105.033
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
MCDONALD 36-13 BP 0.6544999 0.4756409 137.928 7.941
MCDONALD 36-13 M 0.6544999 0.4756409 0.000 0.000
TOTAL FIELD: CORINTH 444.892 167.952
FOWLER 11-4 NW NW 0.0519500 0.0454600 0.589 0.541
FOWLER 14-1 0.0820300 0.0672559 20.100 13.892
FOWLER 2-12 0.0258400 0.0226100 1.304 1.021
FOWLER 9-6 0.0229700 0.0140000 0.000 0.000
TOTAL FIELD: DAVIS CHAPEL 21.993 15.454
CHADLEY 27-9 0.7340300 0.4818400 9.274 8.269
FOWLER 26-13 1 SW SW 0.1531300 0.1158168 0.000 0.000
FOWLER 26-4 1 NW NW 0.1531300 0.1158168 40.688 27.278
JOHNSON 36-6 1 SE NW 0.0213900 0.0158937 1.196 0.992
NOLAN 6-2 1 NW NE 0.1250000 0.1024841 2.315 2.013
TOTAL FIELD: DAVIS CHAPEL 53.473 38.552
WATKINS AIRHART 6-16 0.0350000 0.0245963 26.435 13.108
TOTAL FIELD: FAYETTE SW 26.435 13.108
HARKINS-STANLEY UNIT 1 0.1024500 0.0758100 0.000 0.000
NORRIS ELVIE 29-8 1 0.1750000 0.1461300 10.611 8.652
NORRIS N G 21-13 0.6797699 0.5048000 105.000 74.915
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:02
PAGE: 6
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: FAYETTE WEST 0.000 327.840 0.000 122.535
ROBERTSON 20-12 1 PDP FERNBANK 0.000 89.227 0.000 7.870
SUGGS 16-10 1 PDP FERNBANK 0.000 1247.820 0.000 26.034
TOTAL FIELD: FERNBANK 0.000 1337.047 0.000 33.904
BACCUS 13-16 PDNP HEARTLINE 0.000 0.000 0.000 0.000
TOTAL FIELD: HEARTLINE 0.000 0.000 0.000 0.000
ATIC 18-13 1 SW SW PDP HUXFORD EAST 1.789 1.133 0.113 0.072
TOTAL FIELD: HUXFORD EAST 1.789 1.133 0.113 0.072
SMITH 5-8 1C PDP LINEBARGER CREEK 0.000 456.270 0.000 293.978
SMITH 5-8 1L PDP LINEBARGER CREEK 0.000 55.519 0.000 38.177
SMITH 5-8 BP POD LINEBARGER CREEK 0.000 249.565 0.000 160.796
TOTAL FIELD: LINEBARGER C 0.000 761.354 0.000 492.951
STRAWBRIDGE R H 9-2 2 PDP LITTLE HELLS CREEK 0.000 81.961 0.000 1.961
TOTAL FIELD: LITTLE HELLS 0.000 81.961 0.000 1.961
AMC 14-15 1L PDP MCCRACKEN MOUNTAIN 0.000 200.551 0.000 61.090
AMC 14-15 1M PDP MCCRACKEN MOUNTAIN 0.000 181.431 0.000 55.266
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: FAYETTE WEST 115.611 83.567
ROBERTSON 20-12 1 0.1109375 0.0882000 5.289 4.844
SUGGS 16-10 1 0.0280100 0.0208632 42.185 28.900
TOTAL FIELD: FERNBANK 47.474 33.744
BACCUS 13-16 0.0218700 0.0191400 0.000 0.000
TOTAL FIELD: HEARTLINE 0.000 0.000
ATIC 18-13 1 SW SW 0.1000000 0.0632475 0.015 0.015
TOTAL FIELD: HUXFORD EAST 0.015 0.015
SMITH 5-8 1C 0.8968732 0.6443064 551.495 359.401
SMITH 5-8 1L 0.8985957 0.6876268 46.621 41.224
SMITH 5-8 BP 0.8968732 0.6443064 257.991 43.551
TOTAL FIELD: LINEBARGER C 856.107 444.176
STRAWBRIDGE R H 9-2 2 0.0306300 0.0239300 0.807 0.656
TOTAL FIELD: LITTLE HELLS 0.807 0.656
AMC 14-15 1L 0.3581300 0.3046100 68.365 42.821
AMC 14-15 1M 0.3581300 0.3046100 58.962 37.693
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:03
PAGE: 7
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
AMC 14-15 BP POD MCCRACKEN MOUNTAIN 0.000 674.515 0.000 205.464
AMC 14-15 BP PDBP MCCRACKEN MOUNTAIN 0.000 450.000 0.000 137.075
BAINES M E 1B PDP MCCRACKEN MOUNTAIN 0.000 245.638 0.000 98.385
BAINES M E 1C PDP MCCRACKEN MOUNTAIN 0.000 106.469 0.000 42.644
BOZEMAN 27-15 PDP MCCRACKEN MOUNTAIN 0.000 444.987 0.000 85.500
BOZEMAN 27-15 BP PDBP MCCRACKEN MOUNTAIN 0.000 250.000 0.000 48.035
BOZEMAN 27-15 PROB PRDP MCCRACKEN MOUNTAIN 0.000 100.000 0.000 19.214
GRAVLEE 13-12 1 PDP MCCRACKEN MOUNTAIN 0.402 120.854 0.185 55.723
GRAVLEE 13-12 1 BP PDBP MCCRACKEN MOUNTAIN 0.000 188.166 0.000 86.760
MCEVERS 19-9 PDP MCCRACKEN MOUNTAIN 0.000 306.554 0.000 32.716
TOTAL FIELD: MCCRACKEN MO 0.402 3269.165 0.185 927.872
ANDERS, GRACE 13-15 1C PDP MCCRACKEN MTN 0.000 71.802 0.000 3.075
ANDERS, GRACE 13-15 1T PDP MCCRACKEN MTN 0.000 162.442 0.000 16.282
JOHNSON 30-11 1 PDP MCCRACKEN MTN 0.000 117.414 0.000 10.070
LOFTIS ESTATE 23-8C PDP MCCRACKEN MTN 0.000 111.567 0.000 12.667
LOFTIS ESTATE 23-8L PDP MCCRACKEN MTN 0.000 163.175 0.000 18.527
SPARKS 14-3 1T PDP MCCRACKEN MTN 0.000 405.975 0.000 9.957
TOTAL FIELD: MCCRACKEN MT 0.000 1032.375 0.000 70.578
NOLEN CHARLES W 35-2 PDP MCCRACKEN MTN WEST 0.000 475.145 0.000 23.757
TOTAL FIELD: MCCRACKEN MT 0.000 475.145 0.000 23.757
BRADFORD E L 19-15 1 PDP MCGEE LAKE 0.000 1244.442 0.000 28.124
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
AMC 14-15 BP 0.3581300 0.3046100 367.211 44.099
AMC 14-15 BP 0.3581299 0.3046100 290.782 199.215
BAINES M E 1B 0.4621800 0.4005300 102.653 64.660
BAINES M E 1C 0.4621800 0.4005300 44.687 28.099
BOZEMAN 27-15 0.2260800 0.1921400 109.454 63.508
BOZEMAN 27-15 BP 0.2260800 0.1921400 104.748 79.005
BOZEMAN 27-15 PROB 0.2260800 0.1921400 23.873 9.530
GRAVLEE 13-12 1 0.6296200 0.4610814 42.835 34.345
GRAVLEE 13-12 1 BP 0.6296200 0.4610814 207.147 139.673
MCEVERS 19-9 0.1352100 0.1067233 32.841 19.695
TOTAL FIELD: MCCRACKEN MO 1453.558 762.343
ANDERS, GRACE 13-15 1C 0.0534500 0.0428300 2.032 1.490
ANDERS, GRACE 13-15 1T 0.1281719 0.1002335 11.108 8.073
JOHNSON 30-11 1 0.1059900 0.0857675 5.301 4.220
LOFTIS ESTATE 23-8C 0.1387500 0.1135382 14.264 11.399
LOFTIS ESTATE 23-8L 0.1387500 0.1135382 23.872 18.419
SPARKS 14-3 1T 0.0312500 0.0245266 10.316 8.378
TOTAL FIELD: MCCRACKEN MT 66.893 51.979
NOLEN CHARLES W 35-2 0.0525000 0.0500000 33.115 18.208
TOTAL FIELD: MCCRACKEN MT 33.115 18.208
BRADFORD E L 19-15 1 0.0296800 0.0226000 49.537 30.526
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:03
PAGE: 8
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
MAYERS F 29-5 PDP MCGEE LAKE 1.068 533.855 0.027 13.555
RODGERS, E. 25-1 1 PDP MCGEE LAKE 0.336 22.375 0.005 0.310
SISSON OLIVER 29-13 PDP MCGEE LAKE 0.000 218.360 0.000 8.317
TOTAL FIELD: MCGEE LAKE 1.404 2019.032 0.032 50.306
NEWMAN LUMBER 16-3 1 PDP MILITARY GROVE NORTH 0.000 401.287 0.000 13.688
TOTAL FIELD: MILITARY GRO 0.000 401.287 0.000 13.688
HODO 31-15 1 SW SE PDNP MOUNT CARMEL 0.000 151.352 0.000 12.041
TOTAL FIELD: MOUNT CARMEL 0.000 151.352 0.000 12.041
MARX-THOMAS 6-6 1 PDP MUD CREEK 0.514 1027.945 0.021 41.876
TOTAL FIELD: MUD CREEK 0.514 1027.945 0.021 41.876
FOWLER 22-14 PDP MUSGROVE CREEK 0.000 97.840 0.000 7.332
FULLERTON 25-13 PDP MUSGROVE CREEK 0.000 62.516 0.000 1.337
KILLINGSWORTH 7-9 NE SE PDP MUSGROVE CREEK 0.000 168.488 0.000 20.456
KILLINGSWORTH 8-13 SW SW PDP MUSGROVE CREEK 0.000 0.000 0.000 0.000
STEINER-SCHWAB 26-5 PDP MUSGROVE CREEK 0.000 203.431 0.000 45.357
STEINER-SCHWAB 26-5 BP POD MUSGROVE CREEK 0.000 249.409 0.000 55.608
TOTAL FIELD: MUSGROVE CRE 0.000 781.684 0.000 130.090
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
MAYERS F 29-5 0.0312500 0.0253900 14.570 9.178
RODGERS, E. 25-1 1 0.0194300 0.0138739 0.055 0.053
SISSON OLIVER 29-13 0.0468800 0.0380900 8.436 6.824
TOTAL FIELD: MCGEE LAKE 72.598 46.581
NEWMAN LUMBER 16-3 1 0.0431400 0.0341099 17.879 14.557
TOTAL FIELD: MILITARY GRO 17.879 14.557
HODO 31-15 1 SW SE 0.1039000 0.0795535 9.807 7.984
TOTAL FIELD: MOUNT CARMEL 9.807 7.984
MARX-THOMAS 6-6 1 0.0546900 0.0407374 61.225 34.202
TOTAL FIELD: MUD CREEK 61.225 34.202
FOWLER 22-14 0.0971200 0.0749400 2.739 2.372
FULLERTON 25-13 0.0244700 0.0213900 0.469 0.422
KILLINGSWORTH 7-9 NE SE 0.1640600 0.1214100 10.066 8.079
KILLINGSWORTH 8-13 SW SW 0.1373700 0.1024800 0.000 0.000
STEINER-SCHWAB 26-5 0.2935100 0.2229600 47.340 33.424
STEINER-SCHWAB 26-5 BP 0.2935100 0.2229600 79.558 17.560
TOTAL FIELD: MUSGROVE CRE 140.172 61.857
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:04
PAGE: 9
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
S. CARLTON FIELD TOTAL PDP SOUTH CARLTON 2343.071 0.000 1819.629 0.000
S. CARLTON (BARBOUR 16-7) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON (DAVIES 5) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON (OSWELL 11-12) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON (SCOTT 11-11) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON (SCOTT 11-6) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON (SCOTT 15-14) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON (SCOTT 9-9) PDBP SOUTH CARLTON 40.622 0.000 31.547 0.000
S. CARLTON - LOC 01 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 02 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 03 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 04 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 05 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 06 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 07 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 08 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 09 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 10 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 11 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 12 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 13 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 14 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 15 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 16 PUD SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 17 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 18 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 19 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
S. CARLTON FIELD TOTAL 1.0000000 0.7766000 5080.534 3163.538
S. CARLTON (BARBOUR 16-7) 1.0000000 0.7766000 370.582 177.427
S. CARLTON (DAVIES 5) 1.0000000 0.7766000 370.582 181.705
S. CARLTON (OSWELL 11-12) 1.0000000 0.7766000 370.582 176.023
S. CARLTON (SCOTT 11-11) 1.0000000 0.7766000 370.582 176.023
S. CARLTON (SCOTT 11-6) 1.0000000 0.7766000 370.582 174.631
S. CARLTON (SCOTT 15-14) 1.0000000 0.7766000 370.582 180.268
S. CARLTON (SCOTT 9-9) 1.0000000 0.7766000 370.582 178.842
S. CARLTON - LOC 01 1.0000000 0.7766000 349.884 46.201
S. CARLTON - LOC 02 1.0000000 0.7766000 349.884 45.836
S. CARLTON - LOC 03 1.0000000 0.7766000 349.884 45.473
S. CARLTON - LOC 04 1.0000000 0.7766000 349.884 45.113
S. CARLTON - LOC 05 1.0000000 0.7766000 349.884 44.757
S. CARLTON - LOC 06 1.0000000 0.7766000 349.884 44.402
S. CARLTON - LOC 07 1.0000000 0.7766000 349.884 44.051
S. CARLTON - LOC 08 1.0000000 0.7766000 349.884 43.703
S. CARLTON - LOC 09 1.0000000 0.7766000 349.884 43.357
S. CARLTON - LOC 10 1.0000000 0.7766000 349.884 43.014
S. CARLTON - LOC 11 1.0000000 0.7766000 349.884 42.674
S. CARLTON - LOC 12 1.0000000 0.7766000 349.884 42.336
S. CARLTON - LOC 13 1.0000000 0.7766000 349.884 42.001
S. CARLTON - LOC 14 1.0000000 0.7766000 349.884 41.669
S. CARLTON - LOC 15 1.0000000 0.7766000 349.884 41.339
S. CARLTON - LOC 16 1.0000000 0.7766000 349.884 41.012
S. CARLTON - LOC 17 1.0000000 0.7766000 349.884 40.688
S. CARLTON - LOC 18 1.0000000 0.7766000 349.884 40.366
S. CARLTON - LOC 19 1.0000000 0.7766000 349.884 40.047
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:04
PAGE: 10
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
S. CARLTON - LOC 20 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 21 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 22 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 24 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 25 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 26 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 27 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 28 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
S. CARLTON - LOC 29 PRU SOUTH CARLTON 100.106 0.000 77.743 0.000
TOTAL FIELD: SOUTH CARLTO 5430.393 0.000 4217.262 0.000
BOMAN 34-8 PDP WATSON CREEK 0.000 0.000 0.000 0.000
BOMAN 34-8 BP PDBP WATSON CREEK 0.000 650.000 0.000 178.530
TOTAL FIELD: WATSON CREEK 0.000 650.000 0.000 178.530
GILMER, JUDE 35-7 1 PDP WATSON CREEK EAST 0.000 340.308 0.000 2.336
TOTAL FIELD: WATSON CREEK 0.000 340.308 0.000 2.336
WAYSIDE OIL UNIT SE NW PDP WAYSIDE 73.414 8.956 0.075 0.009
TOTAL FIELD: WAYSIDE 73.414 8.956 0.075 0.009
AMERICAN CAN 11-5 1C PDP WOOLBANK CREEK 0.000 118.014 0.000 84.529
AMERICAN CAN 11-5 1C BP POD WOOLBANK CREEK 0.000 200.000 0.000 143.254
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
S. CARLTON - LOC 20 1.0000000 0.7766000 349.884 39.730
S. CARLTON - LOC 21 1.0000000 0.7766000 349.884 39.415
S. CARLTON - LOC 22 1.0000000 0.7766000 349.884 39.104
S. CARLTON - LOC 24 1.0000000 0.7766000 349.884 38.487
S. CARLTON - LOC 25 1.0000000 0.7766000 349.884 38.183
S. CARLTON - LOC 26 1.0000000 0.7766000 349.884 37.881
S. CARLTON - LOC 27 1.0000000 0.7766000 349.884 38.794
S. CARLTON - LOC 28 1.0000000 0.7766000 349.884 37.284
S. CARLTON - LOC 29 1.0000000 0.7766000 349.884 37.581
TOTAL FIELD: SOUTH CARLTO 17471.360 5572.955
BOMAN 34-8 0.3585938 0.2746611 0.000 0.000
BOMAN 34-8 BP 0.3585938 0.2746611 343.939 258.517
TOTAL FIELD: WATSON CREEK 343.939 258.517
GILMER, JUDE 35-7 1 0.0000000 0.0068644 4.308 2.022
TOTAL FIELD: WATSON CREEK 4.308 2.022
WAYSIDE OIL UNIT SE NW 0.0015900 0.0010155 0.232 0.215
TOTAL FIELD: WAYSIDE 0.232 0.215
AMERICAN CAN 11-5 1C 1.0000000 0.7162682 71.983 57.344
AMERICAN CAN 11-5 1C BP 1.0000000 0.7162682 316.008 173.361
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:05
PAGE: 11
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
AMERICAN CAN 11-5 1D, E PDP WOOLBANK CREEK 0.000 73.319 0.000 52.516
TOTAL FIELD: WOOLBANK CRE 0.000 391.333 0.000 280.299
TOTAL STATE: AL 5883.876 37632.975 4248.012 8837.692
ROSEWOOD RESOURCES 10-2 PDP SPRINGHILL 57.459 4093.092 1.360 96.908
ROSEWOOD RESOURCES 10-3 PDP SPRINGHILL 119.159 9348.184 2.821 221.328
SMITH, LAMAR A. 3 PDP SPRINGHILL 174.017 11204.506 4.034 259.708
TOTAL FIELD: SPRINGHILL 350.635 24645.782 8.215 577.944
ROSEWOOD RESOURCES 10-1 PDP SPRINGHILL (HAYNESVILLE) 41.648 2366.478 0.924 52.500
ROSEWOOD RESOURCES 9-1 PDP SPRINGHILL (HAYNESVILLE) 37.958 1681.819 0.842 37.289
TOTAL FIELD: SPRINGHILL ( 79.606 4048.297 1.766 89.789
CROCKETT 1 PDP ST MARY WEST (COTTON VALLEY) 346.144 179.347 21.599 11.191
TOTAL FIELD: ST MARY WEST 346.144 179.347 21.599 11.191
TOTAL STATE: AR 776.385 28873.426 31.580 678.924
ARAPAHOE, NORTHWEST UNIT PDP ARAPAHOE 4053.964 0.000 91.376 0.000
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
AMERICAN CAN 11-5 1D, E 1.0000000 0.7162682 33.177 28.018
TOTAL FIELD: WOOLBANK CRE 421.168 258.723
TOTAL STATE: AL 33162.916 13144.025
ROSEWOOD RESOURCES 10-2 0.0000000 0.0236760 276.607 195.847
ROSEWOOD RESOURCES 10-3 0.0000000 0.0236760 613.847 399.351
SMITH, LAMAR A. 3 0.0000000 0.0231789 748.272 495.614
TOTAL FIELD: SPRINGHILL 1638.726 1090.812
ROSEWOOD RESOURCES 10-1 0.0000000 0.0221850 152.211 108.664
ROSEWOOD RESOURCES 9-1 0.0000000 0.0221719 111.446 77.429
TOTAL FIELD: SPRINGHILL ( 263.657 186.093
CROCKETT 1 0.0858000 0.0624000 297.953 96.437
TOTAL FIELD: ST MARY WEST 297.953 96.437
TOTAL STATE: AR 2200.336 1373.342
ARAPAHOE, NORTHWEST UNIT 0.0300200 0.0225400 1035.338 642.407
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:05
PAGE: 12
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: ARAPAHOE 4053.964 0.000 91.376 0.000
DURR 32-12 #2 PDP ARAPAHOE (MORROW) 11.734 0.000 1.028 0.000
TOTAL FIELD: ARAPAHOE (MO 11.734 0.000 1.028 0.000
CAMPBELL 21-13 #3 PDP HARKER RANCH (MORROW) 36.683 20.176 3.522 1.937
DOYLE 34-1 4 PDP HARKER RANCH (MORROW) 18.332 18.332 1.760 1.760
DURR 12-12 #3 PDP HARKER RANCH (MORROW) 0.859 1.203 0.115 0.161
DURR 21-12 #1 PDP HARKER RANCH (MORROW) 3.491 0.000 0.612 0.000
STEELE 44C-3 PDP HARKER RANCH (MORROW) 98.451 1640.842 16.172 269.541
TOTAL FIELD: HARKER RANCH 157.816 1680.553 22.181 273.399
PEOC-NVG 41-23H PDP WOLF MOUNTAIN 457.087 0.000 271.573 0.000
PEOC-NVG 41-23H PDBP PDBP WOLF MOUNTAIN 657.840 0.000 390.849 0.000
TOTAL FIELD: WOLF MOUNTAI 1114.927 0.000 662.422 0.000
TOTAL STATE: CO 5338.441 1680.553 777.007 273.399
LUCAS PDP BEAUCHAMP (MORROWAN) 0.000 594.140 0.000 83.914
NELLIE 1-16 PDP BEAUCHAMP (MORROWAN) 0.000 111.280 0.000 31.434
TOTAL FIELD: BEAUCHAMP (M 0.000 705.420 0.000 115.348
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: ARAPAHOE 1035.338 642.407
DURR 32-12 #2 0.1200000 0.0876095 5.364 4.601
TOTAL FIELD: ARAPAHOE (MO 5.364 4.601
CAMPBELL 21-13 #3 0.1200000 0.0960000 18.783 15.981
DOYLE 34-1 4 0.1200000 0.0960000 17.911 15.827
DURR 12-12 #3 0.1800000 0.1338739 0.129 0.128
DURR 21-12 #1 0.2250000 0.1753100 1.947 1.866
STEELE 44C-3 0.2250000 0.1642700 863.768 670.716
TOTAL FIELD: HARKER RANCH 902.538 704.518
PEOC-NVG 41-23H 0.8071900 0.5941397 4396.871 948.432
PEOC-NVG 41-23H PDBP 0.8071900 0.5941400 6503.396 1231.589
TOTAL FIELD: WOLF MOUNTAI 10900.267 2180.021
TOTAL STATE: CO 12843.507 3531.547
LUCAS 0.1914060 0.1412363 106.941 70.086
NELLIE 1-16 0.3828120 0.2824726 18.677 16.690
TOTAL FIELD: BEAUCHAMP (M 125.618 86.776
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:05
PAGE: 13
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
GLENN 1-33 PDP BEAUCHAMP SW (MORROWAN) 0.000 1064.100 0.000 154.265
TOTAL FIELD: BEAUCHAMP SW 0.000 1064.100 0.000 154.265
MARTIN PDP KANSAS HUGOTON 0.000 0.000 0.000 0.000
TOTAL FIELD: KANSAS HUGOT 0.000 0.000 0.000 0.000
KANSAS UNIVERSITY PDP SPARKS NE 0.000 356.160 0.000 133.248
TOTAL FIELD: SPARKS NE 0.000 356.160 0.000 133.248
BRASS PDP WILDCAT 0.000 0.000 0.000 0.000
TOTAL FIELD: WILDCAT 0.000 0.000 0.000 0.000
TOTAL STATE: KS 0.000 2125.680 0.000 402.861
GAY UNION #37 - BP1 PDBP BAYOU CHOCTAW 9.897 9.897 7.921 7.921
GAY UNION #37 - BP2 PDBP BAYOU CHOCTAW 24.907 24.907 19.935 19.935
GAY UNION #37 - BP3 PDBP BAYOU CHOCTAW 14.950 14.950 11.965 11.965
GAY UNION #37 - BP4 PDBP BAYOU CHOCTAW 14.950 14.950 11.965 11.965
GAY UNION #37 - BP5 PDBP BAYOU CHOCTAW 17.962 17.962 14.376 14.376
GAY UNION FIELD TOTAL - PDNP PDNP BAYOU CHOCTAW 35.810 364.453 28.660 291.690
TOTAL FIELD: BAYOU CHOCTA 118.476 447.119 94.822 357.852
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
GLENN 1-33 0.1914060 0.1449722 152.030 81.750
TOTAL FIELD: BEAUCHAMP SW 152.030 81.750
MARTIN 0.5843750 0.4538550 0.000 0.000
TOTAL FIELD: KANSAS HUGOT 0.000 0.000
KANSAS UNIVERSITY 0.5078125 0.3741226 142.947 72.874
TOTAL FIELD: SPARKS NE 142.947 72.874
BRASS 0.0100000 0.7425693 0.000 0.000
TOTAL FIELD: WILDCAT 0.000 0.000
TOTAL STATE: KS 420.595 241.400
GAY UNION #37 - BP1 1.0000000 0.8003500 74.221 68.950
GAY UNION #37 - BP2 1.0000000 0.8003500 272.127 221.577
GAY UNION #37 - BP3 1.0000000 0.8003500 128.958 84.598
GAY UNION #37 - BP4 1.0000000 0.8003500 128.958 70.473
GAY UNION #37 - BP5 1.0000000 0.8003500 169.897 77.319
GAY UNION FIELD TOTAL - PDNP 1.0000000 0.8003501 627.752 542.145
TOTAL FIELD: BAYOU CHOCTA 1401.913 1065.062
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:05
PAGE: 14
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
SIMONTON, J.S. 1 PDP BETHANY LONGSTREET 6.970 696.990 1.757 175.718
TOTAL FIELD: BETHANY LONG 6.970 696.990 1.757 175.718
LONGENBAUGH PDNP BON AIR 118.637 95.716 88.854 71.688
TOTAL FIELD: BON AIR 118.637 95.716 88.854 71.688
PLACID 1 - BP PDBP CARTERVILLE N 149.925 1499.252 17.441 174.408
TOTAL FIELD: CARTERVILLE 149.925 1499.252 17.441 174.408
PLACID 1 PDP CARTERVILLE NORTH 0.447 5.588 0.052 0.650
TOTAL FIELD: CARTERVILLE 0.447 5.588 0.052 0.650
CLARK RA SU PDP CREOLE NORTH 5.100 145.720 0.121 3.443
CLARK RA SU -PDNP PDNP CREOLE NORTH 413.835 7375.459 9.779 174.282
TOTAL FIELD: CREOLE NORTH 418.935 7521.179 9.900 177.725
STANSBURY 2 PDP D'ARBONE 1.494 249.001 0.791 131.783
TOTAL FIELD: D'ARBONE 1.494 249.001 0.791 131.783
MANY, SUE L. PDP DARROW 53.947 8.092 24.535 3.680
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
SIMONTON, J.S. 1 0.3075000 0.2521100 277.313 193.145
TOTAL FIELD: BETHANY LONG 277.313 193.145
LONGENBAUGH 0.9688200 0.7489600 904.318 571.802
TOTAL FIELD: BON AIR 904.318 571.802
PLACID 1 - BP 0.1773600 0.1163300 572.814 350.340
TOTAL FIELD: CARTERVILLE 572.814 350.340
PLACID 1 0.1773600 0.1163300 0.205 0.202
TOTAL FIELD: CARTERVILLE 0.205 0.202
CLARK RA SU 0.0303100 0.0236300 3.059 3.023
CLARK RA SU -PDNP 0.0303100 0.0236300 428.655 313.897
TOTAL FIELD: CREOLE NORTH 431.714 316.920
STANSBURY 2 0.6326230 0.5292460 280.310 175.340
TOTAL FIELD: D'ARBONE 280.310 175.340
MANY, SUE L. 0.6812600 0.4548000 187.592 157.747
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:06
PAGE: 15
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: DARROW 53.947 8.092 24.535 3.680
CL&F 2 PDP DEER ISLAND 44.318 984.855 0.727 16.149
TOTAL FIELD: DEER ISLAND 44.318 984.855 0.727 16.149
SPENCER WALKER 1 PDP HICO-KNOWLES 23.653 1742.845 4.453 328.108
TOTAL FIELD: HICO-KNOWLES 23.653 1742.845 4.453 328.108
MCCRANIE PDP IVAN 31.726 1057.544 7.274 242.463
TOTAL FIELD: IVAN 31.726 1057.544 7.274 242.463
MILLER 8 PDP LAKE ARTHUR 30.332 78.864 0.724 1.881
TOTAL FIELD: LAKE ARTHUR 30.332 78.864 0.724 1.881
SHRINERS HOSPITAL A-1 PDP LISBON 83.869 2306.401 3.140 86.352
TOTAL FIELD: LISBON 83.869 2306.401 3.140 86.352
BERGERON 5 PDP MOORE SAMS 4.063 162.510 0.035 1.412
BIZETTE 1 PDP MOORE SAMS 36.502 1095.066 0.451 13.542
BIZETTE 2 PDP MOORE SAMS 0.000 0.000 0.000 0.000
BUTLER PDP MOORE SAMS 193.539 7945.277 2.794 114.718
HURST PDP MOORE SAMS 21.414 691.848 0.365 11.796
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: DARROW 187.592 157.747
CL&F 2 0.0250000 0.0163975 44.485 34.687
TOTAL FIELD: DEER ISLAND 44.485 34.687
SPENCER WALKER 1 0.2296300 0.1882600 632.998 260.476
TOTAL FIELD: HICO-KNOWLES 632.998 260.476
MCCRANIE 0.2796300 0.2292700 480.587 301.300
TOTAL FIELD: IVAN 480.587 301.300
MILLER 8 0.0000000 0.0238554 18.362 15.221
TOTAL FIELD: LAKE ARTHUR 18.362 15.221
SHRINERS HOSPITAL A-1 0.0445000 0.0374400 173.067 112.950
TOTAL FIELD: LISBON 173.067 112.950
BERGERON 5 0.0119370 0.0086892 1.083 1.059
BIZETTE 1 0.0179690 0.0123664 25.236 23.131
BIZETTE 2 0.0133904 0.0111348 0.000 0.000
BUTLER 0.0202530 0.0144385 301.895 191.274
HURST 0.0247690 0.0170503 14.031 12.447
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:07
PAGE: 16
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
MIX PDP MOORE SAMS 234.378 8370.649 3.523 125.814
TOTAL FIELD: MOORE SAMS 489.896 18265.350 7.168 267.282
CURET PDP MOORE-SAMS 0.000 0.000 0.000 0.000
DEVILLE 1 PDP MOORE-SAMS 0.000 0.000 0.000 0.000
TOTAL FIELD: MOORE-SAMS 0.000 0.000 0.000 0.000
SALE, T.S. JR. 1 PDP OAKS 119.480 0.000 10.496 0.000
TOTAL FIELD: OAKS 119.480 0.000 10.496 0.000
HILL UN 1 1 PDP OBERLIN 22.022 917.596 2.099 87.447
TOTAL FIELD: OBERLIN 22.022 917.596 2.099 87.447
PERKINS FIELD TOTAL PDP PERKINS 290.847 0.000 236.313 0.000
TOTAL FIELD: PERKINS 290.847 0.000 236.313 0.000
TRAVIS PEAK SUC PDP SUGAR CREEK 5.092 360.662 0.901 63.829
TOTAL FIELD: SUGAR CREEK 5.092 360.662 0.901 63.829
CL&F 1 PDP TURTLE BAYOU 0.374 374.406 0.008 8.288
CL&F 10 (TB) PDP TURTLE BAYOU 130.811 5687.454 2.145 93.260
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
MIX 0.0208750 0.0150303 207.673 135.406
TOTAL FIELD: MOORE SAMS 549.918 363.317
CURET 0.0021930 0.0015367 0.000 0.000
DEVILLE 1 0.0021490 0.0015900 0.000 0.000
TOTAL FIELD: MOORE-SAMS 0.000 0.000
SALE, T.S. JR. 1 0.1250000 0.0878438 116.679 50.213
TOTAL FIELD: OAKS 116.679 50.213
HILL UN 1 1 0.1242900 0.0953000 155.882 81.159
TOTAL FIELD: OBERLIN 155.882 81.159
PERKINS FIELD TOTAL 1.0000000 0.8125000 2671.077 1767.888
TOTAL FIELD: PERKINS 2671.077 1767.888
TRAVIS PEAK SUC 0.1975260 0.1769783 117.725 95.509
TOTAL FIELD: SUGAR CREEK 117.725 95.509
CL&F 1 0.0315000 0.0221366 15.355 13.443
CL&F 10 (TB) 0.0250000 0.0163975 238.319 159.499
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:07
PAGE: 17
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
CL&F 4 (TB) PDP TURTLE BAYOU 40.223 6400.000 0.890 141.674
CL&F 6 (TB) PDP TURTLE BAYOU 44.417 2961.127 1.397 93.154
CL&F 8 (TB) PDP TURTLE BAYOU 62.528 15372.077 1.845 453.476
TOTAL FIELD: TURTLE BAYOU 278.353 30795.064 6.285 789.852
MATILDA GRAY STREAM J PDP VINTON 180.201 0.000 24.652 0.000
MATILDA GRAY STREAM M PDP VINTON 208.445 0.000 28.515 0.000
TOTAL FIELD: VINTON 388.646 0.000 53.167 0.000
TOTAL STATE: LA 2677.065 67032.118 570.899 2976.867
ALLEN, BOBBIE LEE 23-15C PDP BACON 0.000 84.575 0.000 41.547
ALLEN, BOBBIE LEE 23-15T PDP BACON 0.000 63.932 0.000 31.407
FARNED, LILLIAN P. 1-U PDP BACON 0.000 31.924 0.000 30.820
FARNED, LILLIAN P. 1-U BP PDBP BACON 0.000 349.503 0.000 163.220
FARNED, LILLIAN P. 1-U BP2 PDBP BACON 0.000 249.409 0.000 116.475
TOTAL FIELD: BACON 0.000 779.343 0.000 383.469
GADDIS-MCLAURIN 7 PDP BAKERS CREEK (RODESSA) 73.568 0.000 11.029 0.000
TOTAL FIELD: BAKERS CREEK 73.568 0.000 11.029 0.000
CORLEY 6-1 PDP BALLS BRANCH 0.000 150.584 0.000 93.467
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
CL&F 4 (TB) 0.0315000 0.0221366 401.471 361.078
CL&F 6 (TB) 0.0479633 0.0314591 256.437 199.806
CL&F 8 (TB) 0.0450000 0.0295000 1219.454 787.231
TOTAL FIELD: TURTLE BAYOU 2131.036 1521.057
MATILDA GRAY STREAM J 0.2000000 0.1368000 125.928 99.789
MATILDA GRAY STREAM M 0.2000000 0.1368000 246.407 179.308
TOTAL FIELD: VINTON 372.335 279.097
TOTAL STATE: LA 11520.330 7713.432
ALLEN, BOBBIE LEE 23-15C 0.6832935 0.4912499 83.391 69.688
ALLEN, BOBBIE LEE 23-15T 0.6832935 0.4912499 34.996 26.699
FARNED, LILLIAN P. 1-U 1.2421623 0.9654124 26.525 24.503
FARNED, LILLIAN P. 1-U BP 0.6210812 0.4670064 316.360 222.281
FARNED, LILLIAN P. 1-U BP2 0.6210812 0.4670064 169.860 57.973
TOTAL FIELD: BACON 631.132 401.144
GADDIS-MCLAURIN 7 0.2000000 0.1499200 101.615 78.812
TOTAL FIELD: BAKERS CREEK 101.615 78.812
CORLEY 6-1 0.8396389 0.6206970 193.956 150.796
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:07
PAGE: 18
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
DALLAS 5-4 PDP BALLS BRANCH 0.000 275.847 0.000 207.315
DALLAS 5-4 BP PDBP BALLS BRANCH 0.000 600.000 0.000 450.934
TALLY 31-16 1C PDP BALLS BRANCH 0.000 31.471 0.000 18.676
TALLY 31-16 1C BP PDBP BALLS BRANCH 0.000 250.000 0.000 148.359
TALLY 31-16 1T PDP BALLS BRANCH 0.000 372.074 0.000 220.802
TOTAL FIELD: BALLS BRANCH 0.000 1679.976 0.000 1139.553
ANDERSON 7-2 PDP BALLS BRANCH (MISSISSIPPIAN LE 0.000 160.708 0.000 2.353
TOTAL FIELD: BALLS BRANCH 0.000 160.708 0.000 2.353
ROSENBLATT PDP BELMONT LAKE (WALKER) 0.000 0.000 0.000 0.000
TOTAL FIELD: BELMONT LAKE 0.000 0.000 0.000 0.000
PARAMOUNT/COCHRAN 14-5 PDP BLACKBURN (HOSSTON) 47.160 38.199 15.916 12.892
TOTAL FIELD: BLACKBURN (H 47.160 38.199 15.916 12.892
ROBERTS, ERNEST PDP BOLTON 31.582 1010.883 23.234 743.664
TOTAL FIELD: BOLTON 31.582 1010.883 23.234 743.664
GADDIS FARMS 13-1 PDP BOLTON (COTTON VALLEY) 160.612 1708.637 2.371 25.219
TOTAL FIELD: BOLTON (COTT 160.612 1708.637 2.371 25.219
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
DALLAS 5-4 0.9166719 0.7515562 431.044 296.033
DALLAS 5-4 BP 0.9166719 0.7515562 1064.947 631.734
TALLY 31-16 1C 0.8869788 0.5934365 21.984 18.224
TALLY 31-16 1C BP 0.8869788 0.5934365 303.931 123.988
TALLY 31-16 1T 0.8869787 0.5934363 490.251 283.849
TOTAL FIELD: BALLS BRANCH 2506.113 1504.624
ANDERSON 7-2 0.0000000 0.0146403 5.286 3.914
TOTAL FIELD: BALLS BRANCH 5.286 3.914
ROSENBLATT 0.0054800 0.0045000 0.000 0.000
TOTAL FIELD: BELMONT LAKE 0.000 0.000
PARAMOUNT/COCHRAN 14-5 0.3727333 0.3374942 107.606 88.209
TOTAL FIELD: BLACKBURN (H 107.606 88.209
ROBERTS, ERNEST 0.9686025 0.7356582 1470.673 1087.015
TOTAL FIELD: BOLTON 1470.673 1087.015
GADDIS FARMS 13-1 0.0000000 0.0147600 106.290 59.217
TOTAL FIELD: BOLTON (COTT 106.290 59.217
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:08
PAGE: 19
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
BROOKHAVEN FIELD UNIT PDP BROOKHAVEN (TUSCALOOSA LWR) 0.000 0.000 0.000 0.000
TOTAL FIELD: BROOKHAVEN ( 0.000 0.000 0.000 0.000
BRYAN CV UNIT 7 PDP BRYAN 69.116 0.000 7.222 0.000
BRYAN CV UNIT 10 PDP BRYAN 0.000 0.000 0.000 0.000
BRYAN CV UNIT 5 PDP BRYAN 58.920 0.000 8.585 0.000
BRYAN CV UNIT 8 PDP BRYAN 0.000 0.000 0.000 0.000
TOTAL FIELD: BRYAN 128.036 0.000 15.807 0.000
WALKER, GW 6-7 PDP CAMP CREEK 170.188 0.000 39.860 0.000
TOTAL FIELD: CAMP CREEK 170.188 0.000 39.860 0.000
GLOSTER JACOB PDP COLUMBIA (HOSSTON 1ST) 38.330 4401.933 1.266 145.394
TOTAL FIELD: COLUMBIA (HO 38.330 4401.933 1.266 145.394
SMACKOVER 'A' POOL TOTAL PDP CYPRESS CREEK SOUTH (SMACKOVER 2592.198 773.791 11.655 3.479
TOTAL FIELD: CYPRESS CREE 2592.198 773.791 11.655 3.479
BOYD 34-10 PDP DARBUN NORTH (MOORINGSPORT) 2.577 2147.246 0.010 8.655
TOTAL FIELD: DARBUN NORTH 2.577 2147.246 0.010 8.655
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
BROOKHAVEN FIELD UNIT 0.0000000 0.0006973 0.000 0.000
TOTAL FIELD: BROOKHAVEN ( 0.000 0.000
BRYAN CV UNIT 7 0.1300400 0.1044914 54.482 32.750
BRYAN CV UNIT 10 0.1457800 0.1246970 0.000 0.000
BRYAN CV UNIT 5 0.1777000 0.1457000 76.440 55.370
BRYAN CV UNIT 8 0.1300400 0.1044914 0.000 0.000
TOTAL FIELD: BRYAN 130.922 88.120
WALKER, GW 6-7 0.3333000 0.2342100 551.500 372.324
TOTAL FIELD: CAMP CREEK 551.500 372.324
GLOSTER JACOB 0.0457210 0.0330295 295.188 176.578
TOTAL FIELD: COLUMBIA (HO 295.188 176.578
SMACKOVER 'A' POOL TOTAL 0.0000000 0.0044963 195.061 93.317
TOTAL FIELD: CYPRESS CREE 195.061 93.317
BOYD 34-10 0.0000000 0.0040308
20.451 14.633
TOTAL FIELD: DARBUN NORTH
20.451 14.633
</TABLE>
<PAGE>
DATE: 10/29/96
TIME: 10:18:08
PAGE: 20
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
STRITE PDP DARBUN NORTH (TUSCALOOSA LWR) 16.702 0.000 0.283 0.000
TOTAL FIELD: DARBUN NORTH 16.702 0.000 0.283 0.000
SMACKOVER UNIT PDP LAKE COMO (SMACKOVER) 3392.723 2470.112 44.071 32.087
TOTAL FIELD: LAKE COMO (S 3392.723 2470.112 44.071 32.087
ANDERSON 14-12 1-E PDP NETTLETON NORTH 0.000 67.566 0.000 51.993
ANDERSON 14-12 1-E BP PDBP NETTLETON NORTH 0.000 425.000 0.000 327.043
ANDERSON 14-12 1L PDP NETTLETON NORTH 0.000 344.689 0.000 265.243
TOTAL FIELD: NETTLETON NO 0.000 837.255 0.000 644.279
DABBS 24-6 PDP NETTLETON NORTH (MISSISSIPPIAN 0.000 748.900 0.000 46.012
TOTAL FIELD: NETTLETON NO 0.000 748.900 0.000 46.012
HINTON 8-16 PDP PALMETTO SOUTH (MISSISSIPPIAN 0.000 713.075 0.000 185.842
TUCKER 9-13 PDP PALMETTO SOUTH (MISSISSIPPIAN 0.000 228.157 0.000 1.739
TOTAL FIELD: PALMETTO SOU 0.000 941.232 0.000 187.581
HEARN 29-3 PDP PEACHTREE CREEK (COTTON VALLEY 72.380 0.000 4.886 0.000
RUDDER 29-4 PDP PEACHTREE CREEK (COTTON VALLEY 37.995 0.000 2.019 0.000
TOTAL FIELD: PEACHTREE CR 110.375 0.000 6.905 0.000
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE NTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
STRITE 0.0000000 0.0169718 5.620 4.492
TOTAL FIELD: DARBUN NORTH 5.620 4.492
SMACKOVER UNIT 0.0158400 0.0129900 497.890 277.101
TOTAL FIELD: LAKE COMO (S 497.890 277.101
ANDERSON 14-12 1-E 1.0000000 0.7695140 97.381 80.714
ANDERSON 14-12 1-E BP 1.0000000 0.7695140 756.938 268.637
ANDERSON 14-12 1L 1.0000000 0.7695140 501.863 244.162
TOTAL FIELD: NETTLETON NO 1356.182 593.513
DABBS 24-6 0.0000000 0.0614395 115.048 51.942
TOTAL FIELD: NETTLETON NO 115.048 51.942
HINTON 8-16 0.3180266 0.2606202 295.017 150.173
TUCKER 9-13 0.0000000 0.0076212 4.593 2.683
TOTAL FIELD: PALMETTO SOU 299.610 152.856
HEARN 29-3 0.0800000 0.0675000 74.266 64.305
RUDDER 29-4 0.0800000 0.0531476 23.795 22.040
TOTAL FIELD: PEACHTREE CR 98.061 86.345
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
Date: 10/29/96
TIME: 10:18:08
PAGE: 21
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
BOYTE PDP ROXIE (WILCOX) 19.267 0.000 0.736 0.000 0.0000000
TOTAL FIELD: ROXIE (WILCO 19.267 0.000 0.736 0.000
SCRUGGS 15-10 PDP SHANNON EAST 0.000 238.918 0.000 180.761 1.0000000
SCRUGGS 15-10 BP PDBP SHANNON EAST 0.000 800.000 0.000 605.268 1.0000000
SCRUGGS 15-10 BP2 POD SHANNON EAST 0.000 125.000 0.000 94.573 1.0000000
TOTAL FIELD: SHANNON EAST 0.000 1163.918 0.000 880.602
SOSO FIELD UNIT 28-5 PDP SOSO (RODESSA 11151) 0.000 0.000 0.000 0.000 0.0000000
TOTAL FIELD: SOSO (RODESS 0.000 0.000 0.000 0.000
BRUMFIELD #B-22 PUD PUD TINSLEY 184.094 0.000 140.862 0.000 1.0000000
BRUMFIELD #B-23 POSS POU TINSLEY 322.628 0.000 246.864 0.000 1.0000000
BRUMFIELD B-20 PDP TINSLEY 16.312 0.000 12.478 0.000 1.0000000
TOTAL FIELD: TINSLEY 523.034 0.000 400.204 0.000
BRUMFIELD B-13 PDP TINSLEY NORTH 21.087 0.000 16.131 0.000 1.0000000
BRUMFIELD B-2 PDP TINSLEY NORTH 21.610 0.000 16.534 0.000 1.0000000
BRUMFIELD B-5 PDP TINSLEY NORTH 90.238 0.000 69.032 0.000 1.0000000
BRUMFIELD B-6 PDP TINSLEY NORTH 35.490 0.000 27.150 0.000 1.0000000
TOTAL FIELD: TINSLEY NORT 168.425 0.000 128.847 0.000
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ---------------------------- -------- -----(M$)----- @10.00% M$
<S> <C> <C> <C>
BOYTE 0.0381865 13.929 8.888
TOTAL FIELD: ROXIE (WILCO 13.929 8.888
SCRUGGS 15-10 0.7565848 385.928 308.515
SCRUGGS 15-10 BP 0.7565848 1312.677 299.861
SCRUGGS 15-10 BP2 0.7565848 184.456 11.234
TOTAL FIELD: SHANNON EAST 1883.061 619.610
SOSO FIELD UNIT 28-5 0.0002650 0.000 0.000
TOTAL FIELD: SOSO (RODESS 0.000 0.000
BRUMFIELD #B-22 PUD 0.7651675 1462.820 723.798
BRUMFIELD #B-23 POSS 0.7651675 3219.945 1484.126
BRUMFIELD B-20 0.7650000 101.658 91.710
TOTAL FIELD: TINSLEY 4784.423 2299.634
BRUMFIELD B-13 0.7650000 131.062 114.898
BRUMFIELD B-2 0.7651187 99.926 81.136
BRUMFIELD B-5 0.7650000 752.523 524.319
BRUMFIELD B-6 0.7650000 125.929 95.523
TOTAL FIELD: TINSLEY NORTH 1109.440 813.876
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:09
PAGE: 22
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ------------------------------ ------- --------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL STATE: MS 7474.777 18862.133 702.194 4255.239
HENSLER 1-21 PDP COMERTOWN SOUTH 241.079 43.050 82.470 14.727
TOTAL FIELD: COMERTOWN SO 241.079 43.050 82.470 14.727
TOTAL STATE: MT 241.079 43.050 82.470 14.727
BEAVER LODGE-DEVONIAN UNIT PDP BEAVER LODGE (DEVONIAN) 24229.652 21322.100 2.908 2.559
TOTAL FIELD: BEAVER LODGE 24229.652 21322.100 2.908 2.559
BEAVER LODGE-MADISON UNIT PDP BEAVER LODGE (MADISON) 1969.999 6303.996 0.059 0.189
TOTAL FIELD: BEAVER LODGE 1969.999 6303.996 0.059 0.189
BEAVER LODGE-ORDOVICIAN UNIT N PDP BEAVER LODGE (ORDOVICIAN) 2807.857 165663.568 0.814 48.042
TOTAL FIELD: BEAVER LODGE 2807.857 165663.568 0.814 48.042
TIOGA-MADISON UNIT PDP TIOGA (MADISON) 2112.812 7294.384 17.774 61.363
TOTAL FIELD: TIOGA (MADIS 2112.812 7294.384 17.774 61.363
SORENSON 11-13 NNW NW PDP UNION CENTER (MADISON) 35.986 71.972 1.071 2.142
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- -------------------------------- -------- --------- --(M$)-- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL STATE: MS 16285.101 8876.164
HENSLER 1-21 0.4172425 0.3420865 948.786 486.238
TOTAL FIELD: COMERTOWN SO 948.786 486.238
TOTAL STATE: MT 948.786 486.238
BEAVER LODGE-DEVONIAN UNIT 0.0000000 0.0001200 50.925 15.563
TOTAL FIELD: BEAVER LODGE 50.925 15.563
BEAVER LODGE-MADISON UNIT 0.0000000 0.0000300 1.295 0.417
TOTAL FIELD: BEAVER LODGE 1.295 0.417
BEAVER LODGE-ORDOVICIAN UNIT N 0.0000000 0.0002900 86.275 31.435
TOTAL FIELD: BEAVER LODGE 86.275 31.435
TIOGA-MADISON UNIT 0.0000000 0.0084123 452.826 212.178
TOTAL FIELD: TIOGA (MADIS 452.826 212.178
SORENSON 11-13 NNW NW 0.0000000 0.0297637 23.602 12.930
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:09
PAGE: 23
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: UNION CENTER 35.986 71.972 1.071 2.142
TOTAL STATE: ND 31156.306 200656.020 22.626 114.295
STATE 17 PDP AUSTIN (MISSISSIPPIAN) MI 4.760 1410.253 0.488 144.551 0.1250000
TOTAL FIELD: AUSTIN (MISS 4.760 1410.253 0.488 144.551
STATE 32 PDP BAUM (UPPER PENN) UP 8.369 108.794 2.230 28.989 0.3500000
TOTAL FIELD: BAUM (UPPER 8.369 108.794 2.230 28.989
SHIPP 34-A PDP CASEY (STRAWN) PS 811.855 1522.227 24.599 46.123 0.0415000
TOTAL FIELD: CASEY (STRAW 811.855 1522.227 24.599 46.123
GILLIAM PDP CAUDILL NE 0.397 0.634 0.150 0.240 0.5000000
GILLIAM #1 - PDNP PDNP CAUDILL NE 22.643 0.000 8.551 0.000 0.5000000
TOTAL FIELD: CAUDILL NE 23.040 0.634 8.701 0.240
MUSKEGON 20 ST. COM. PDP EMPIRE SOUTH (MORROW) PM 1.790 668.992 0.331 123.804 0.2468800
TOTAL FIELD: EMPIRE SOUTH 1.790 668.992 0.331 123.804
JACKSON UNIT PDP JOHNSON RANCH (WOLFCAMP) WC 172.413 1724.131 11.724 117.241 0.0833000
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
TOTAL FIELD: UNION CENTER 23.602 12.930
TOTAL STATE: ND 614.923 272.523
STATE 17 0.1025000 252.989 118.980
TOTAL FIELD: AUSTIN (MISS 252.989 118.980
STATE 32 0.2664590 99.440 53.305
TOTAL FIELD: BAUM (UPPER 99.440 53.305
SHIPP 34-A 0.0303000 394.991 158.302
TOTAL FIELD: CASEY (STRAW 394.991 158.302
GILLIAM 0.3776586 0.076 0.076
GILLIAM #1 - PDNP 0.3776599 64.491 36.319
TOTAL FIELD: CAUDILL NE 64.567 36.395
MUSKEGON 20 ST. COM. 0.1850600 301.132 249.744
TOTAL FIELD: EMPIRE SOUTH 301.132 249.744
JACKSON UNIT 0.0680000 468.580 221.322
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:09
PAGE: 24
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: JOHNSON RANC 172.413 1724.131 11.724 117.241
FEDERAL 6 COM PDP QUAIL RIDGE (MORROW) PM 6.560 1030.782 0.404 63.424 0.0796000
TOTAL FIELD: QUAIL RIDGE 6.560 1030.782 0.404 63.424
STATE QE 13 PDP RANGER LAKE (PENN) PN 36.970 96.123 13.856 36.027 0.5000000
TOTAL FIELD: RANGER LAKE 36.970 96.123 13.856 36.027
TOTAL STATE: NM 1065.757 6561.936 62.333 560.399
SARKEYS UNIT PDP BROOKEN (HARTSHORNE) 0.000 998.670 0.000 218.459 0.2500000
TOTAL FIELD: BROOKEN (HAR 0.000 998.670 0.000 218.459
MULLINS 1-34 PDP BUTLER-CUSTER WEST 75.847 1551.425 4.149 84.863 0.0625000
TOTAL FIELD: BUTLER-CUSTE 75.847 1551.425 4.149 84.863
SIMMONS 2-31 PDP CARPENTER (MORROW UPPER) 0.000 2302.919 0.000 64.247 0.0000000
TAYLOR, JOY 1 PDP CARPENTER (MORROW UPPER) 0.000 7018.556 0.000 178.271 0.0000000
TOTAL FIELD: CARPENTER (M 0.000 9321.475 0.000 242.518
MORTON 2-35 PDP COYLE SOUTH (WILCOX) 3.429 57.149 0.828 13.806 0.2690400
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
TOTAL FIELD: JOHNSON RANC 468.580 221.322
FEDERAL 6 COM 0.0615300 126.585 96.936
TOTAL FIELD: QUAIL RIDGE 126.585 96.936
STATE QE 13 0.3748000 223.593 161.491
TOTAL FIELD: RANGER LAKE 223.593 161.491
TOTAL STATE: NM 1931.877 1096.475
SARKEYS UNIT 0.2187500 401.958 246.167
TOTAL FIELD: BROOKEN (HAR 401.958 246.167
MULLINS 1-34 0.0547000 257.235 134.113
TOTAL FIELD: BUTLER-CUSTE 257.235 134.113
SIMMONS 2-31 0.0278982 116.393 57.567
TAYLOR, JOY 1 0.0254000 440.557 289.667
TOTAL FIELD: CARPENTER (M 556.950 347.234
MORTON 2-35 0.2415800 33.349 31.524
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:10
PAGE: 25
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: COYLE SOUTH 3.429 57.149 0.828 13.806
JACKSON BARNETT SE PDP CUSHING (BARTLESVILLE) 0.000 0.000 0.000 0.000 1.0000000
MASCHO NENESW PDP CUSHING (BARTLESVILLE) 0.000 0.000 0.000 0.000 0.9375000
RICHARDS, E. PDP CUSHING (BARTLESVILLE) 198.648 0.000 116.086 0.000 0.7500000
TOTAL FIELD: CUSHING (BAR 198.648 0.000 116.086 0.000
HOWLING WOMAN #1-23 PDP ELM GROVE 0.000 1486.778 0.000 469.812 0.4000000
HOWLING WOMAN #1-23 PDBP PDBP ELM GROVE 0.000 2569.087 0.000 811.815 0.4000000
TOTAL FIELD: ELM GROVE 0.000 4055.865 0.000 1281.627
TWIN WOMAN NW/4 PDP FAY EAST (CNGM-PRMR) 5.595 1398.831 2.344 585.970 0.5272400
TOTAL FIELD: FAY EAST (CN 5.595 1398.831 2.344 585.970
NEUFELD 1-33 PDP FAYE EAST 0.342 351.174 0.178 186.016 0.6506300
TOTAL FIELD: FAYE EAST 0.342 351.174 0.178 186.016
GERLOFF PDP FREEDOM NORTH (CCKB-MRMC-TNKW) 0.000 471.966 0.000 116.736 0.3047900
TOTAL FIELD: FREEDOM NORT 0.000 471.966 0.000 116.736
WELLS 1-28 NW PDP GOLDEN TREND (HNTN-SCMR-WDFD) 1.733 57.773 0.005 0.160 0.0000000
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
TOTAL FIELD: COYLE SOUTH 33.349 31.524
JACKSON BARNETT SE 0.8750000 0.000 0.000
MASCHO NENESW 0.8203125 0.000 0.000
RICHARDS, E. 0.5843800 913.878 436.279
TOTAL FIELD: CUSHING (BAR 913.878 436.279
HOWLING WOMAN #1-23 0.3159934 861.643 492.405
HOWLING WOMAN #1-23 PDBP 0.3159934 1837.097 1002.746
TOTAL FIELD: ELM GROVE 2698.740 1495.151
TWIN WOMAN NW/4 0.4189000 1112.065 756.047
TOTAL FIELD: FAY EAST (CN 1112.065 756.047
NEUFELD 1-33 0.5296364 381.557 263.829
TOTAL FIELD: FAYE EAST 381.557 263.829
GERLOFF 0.2473400 146.954 99.286
TOTAL FIELD: FREEDOM NORT 146.954 99.286
WELLS 1-28 NW 0.0027751 0.453 0.406
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:10
PAGE: 26
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: GOLDEN TREND 1.733 57.773 0.005 0.160
BLACK 1-3 PDP ICONIUM NW 0.000 0.000 0.000 0.000 1.0000000
BLACK 1-3 PDBP PDBP ICONIUM NW 14.555 101.882 12.536 87.754 1.0000000
SMITH NO 1-34 PDP ICONIUM NW 32.591 7.943 24.854 6.057 1.0000000
SMITH NO 1-34 PDBP PDBP ICONIUM NW 19.505 97.525 14.874 74.372 1.0000000
TROUTT-MARSH PDP ICONIUM NW 15.123 105.860 11.376 79.634 1.0000000
TOTAL FIELD: ICONIUM NW 81.774 313.210 63.640 247.817
SARKEY FDN UN 3 PDP KINTA 0.000 0.000 0.000 0.000 0.2500000
TOTAL FIELD: KINTA 0.000 0.000 0.000 0.000
CLIFT 4-6 PDP MOOREWOOD NE (ATOK-RDFK) 0.000 443.343 0.000 10.356 0.0000000
TOTAL FIELD: MOOREWOOD NE 0.000 443.343 0.000 10.356
CLIFT 2-4 PDP MOOREWOOD NE (ATOK-SKNR) 10.258 1025.798 0.240 23.962 0.0000000
TOTAL FIELD: MOOREWOOD NE 10.258 1025.798 0.240 23.962
CLIFT 1-4 PDP MOOREWOOD NE (RED FORK) 6.781 828.766 0.158 19.359 0.0000000
RAY 5-1 PDP MOOREWOOD NE (RED FORK) 21.099 296.235 0.408 5.726 0.0000000
TOTAL FIELD: MOOREWOOD NE 27.880 1125.001 0.566 25.085
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
TOTAL FIELD: GOLDEN TREND 0.453 0.406
BLACK 1-3 0.8613300 0.000 0.000
BLACK 1-3 PDBP 0.8613300 170.346 123.816
SMITH NO 1-34 0.7625995 331.098 266.227
SMITH NO 1-34 PDBP 0.7625996 374.620 217.657
TROUTT-MARSH 0.7522556 330.932 253.577
TOTAL FIELD: ICONIUM NW 1206.996 861.277
SARKEY FDN UN 3 0.2187500 0.000 0.000
TOTAL FIELD: KINTA 0.000 0.000
CLIFT 4-6 0.0233590 22.610 15.862
TOTAL FIELD: MOOREWOOD NE 22.610 15.862
CLIFT 2-4 0.0233590 56.709 32.652
TOTAL FIELD: MOOREWOOD NE 56.709 32.652
CLIFT 1-4 0.0233590 42.473 20.724
RAY 5-1 0.0193290 19.502 12.829
TOTAL FIELD: MOOREWOOD NE 61.975 33.553
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 11/18/96
TIME: 11:09:16
PAGE: 27
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
CLIFT 3-4 PDP MOOREWOOD NE (SKINNER) 5.324 665.514 0.124 15.546
CLIFT 4-4 PDP MOOREWOOD NE (SKINNER) 4.991 665.514 0.117 15.546
CLIFT 4-5 PDP MOOREWOOD NE (SKINNER) 0.000 911.903 0.000 21.301
KILHOFFER 1-33 PDP MOOREWOOD NE (SKINNER) 8.075 554.758 0.142 9.752
KILHOFFER 2-33 PDP MOOREWOOD NE (SKINNER) 6.216 1655.546 0.109 29.101
KILHOFFER 3-33 PDP MOOREWOOD NE (SKINNER) 31.560 2104.000 0.555 36.984
RAY 5-2 PDP MOOREWOOD NE (SKINNER) 0.000 148.199 0.000 2.865
RAY 5-3 PDP MOOREWOOD NE (SKINNER) 0.000 264.884 0.000 5.120
RAY 5-4 PDP MOOREWOOD NE (SKINNER) 17.951 1025.798 0.347 19.828
RAY 5-5 PDP MOOREWOOD NE (SKINNER) 0.000 57.764 0.000 1.117
TOTAL FIELD: MOOREWOOD NE 74.117 8053.880 1.394 157.160
BOUCHER 1-5 PDP OAKWOOD NORTH 3.487 1162.416 0.568 189.451
TOTAL FIELD: OAKWOOD NORT 3.487 1162.416 0.568 189.451
MILLIE 2-20 BP PDBP PUTNAM 0.000 572.697 0.000 375.832
TOTAL FIELD: PUTNAM 0.000 572.697 0.000 375.832
RIPPLE 1-12 PDP REAMS NW 0.000 1453.204 0.000 562.034
TOTAL FIELD: REAMS NW 0.000 1453.204 0.000 562.034
BURNS ESTATE PDP REYDON (MORROW UPPER) 0.000 4969.743 0.000 252.370
EUNICE PDP REYDON (MORROW UPPER) 0.000 6146.100 0.000 129.068
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
CLIFT 3-4 0.0000000 0.0233590 36.077 24.590
CLIFT 4-4 0.0000000 0.0233590 36.368 24.788
CLIFT 4-5 0.0000000 0.0233590 46.308 26.919
KILHOFFER 1-33 0.0000000 0.0175780 25.977 18.028
KILHOFFER 2-33 0.0000000 0.0175780 68.784 35.224
KILHOFFER 3-33 0.0000000 0.0175780 99.167 41.498
RAY 5-2 0.0000000 0.0193290 5.935 4.383
RAY 5-3 0.0000000 0.0193290 11.654 6.505
RAY 5-4 0.0000000 0.0193290 47.626 27.422
RAY 5-5 0.0000000 0.0193290 2.282 1.929
TOTAL FIELD: MOOREWOOD NE 380.178 211.286
BOUCHER 1-5 0.2069570 0.1629800 425.802 213.639
TOTAL FIELD: OAKWOOD NORT 425.802 213.639
MILLIE 2-20 BP 0.7499999 0.6562500 756.285 592.812
TOTAL FIELD: PUTNAM 756.285 592.812
RIPPLE 1-12 0.4628999 0.3867553 1009.452 627.252
TOTAL FIELD: REAMS NW 1009.452 627.252
BURNS ESTATE 0.0625000 0.0507813 582.371 288.524
EUNICE 0.0271000 0.0210000 256.230 111.870
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 11/18/96
TIME: 11:09:16
PAGE: 28
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: REYDON (MORR 0.000 11115.843 0.000 381.438
HARP 1-36 PDP SHO-VEL-TUM (SPRINGER) 160.056 0.000 26.361 0.000
TOTAL FIELD: SHO-VEL-TUM 160.056 0.000 26.361 0.000
FLANAGAN 2-30 PDP SICKLES NORTH 0.000 377.023 0.000 93.985
FLANAGAN 2-30 PDBP PDBP SICKLES NORTH 0.000 1000.000 0.000 249.280
TOTAL FIELD: SICKLES NORT 0.000 1377.023 0.000 343.265
BOGGES 2-29 PDP STRONG CITY DISTRICT (RED FORK 7.386 2484.266 1.168 393.011
TOTAL FIELD: STRONG CITY 7.386 2484.266 1.168 393.011
KOPF 1-11 PDP WATONGA-CHICKASHA TREND (MORRO 0.000 1085.049 0.000 284.825
TOTAL FIELD: WATONGA-CHIC 0.000 1085.049 0.000 284.825
TOTAL STATE: OK 650.552 48476.058 217.527 5724.391
ALUM CREEK FIELD TOTAL PDP ALUM CREEK 253.340 111.083 16.637 7.295
TOTAL FIELD: ALUM CREEK 253.340 111.083 16.637 7.295
TOTAL STATE: SD 253.340 111.083 16.637 7.295
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: REYDON (MORR 838.601 400.394
HARP 1-36 0.2000000 0.1647000 245.104 132.325
TOTAL FIELD: SHO-VEL-TUM 245.104 132.325
FLANAGAN 2-30 0.3246250 0.2492804 187.555 111.291
FLANAGAN 2-30 PDBP 0.3246250 0.2492804 558.249 28.669
TOTAL FIELD: SICKLES NORT 745.804 139.960
BOGGES 2-29 0.1875000 0.1582000 823.191 428.386
TOTAL FIELD: STRONG CITY 823.191 428.386
KOPF 1-11 0.3500000 0.2625000 616.169 488.789
TOTAL FIELD: WATONGA-CHIC 616.169 488.789
TOTAL STATE: OK 13692.015 7988.223
ALUM CREEK FIELD TOTAL 0.0751576 0.0656722 156.794 124.106
TOTAL FIELD: ALUM CREEK 156.794 124.106
TOTAL STATE: SD 156.794 124.106
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:11
PAGE: 29
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
AFGRD UNIT PDP ALABAMA FERRY (GLEN ROSE D) 1141.446 1312.663 0.365 0.420 0.0004000
AFNU PDP ALABAMA FERRY (GLEN ROSE D) 279.396 502.913 0.311 0.560 0.0011540
TOTAL FIELD: ALABAMA FERR 1420.842 1815.576 0.676 0.980
LEE 2-5 PDP ALLISON PARKS (MORROWAN UPPER) 0.000 1283.966 0.000 28.197 0.0312500
TOTAL FIELD: ALLISON PARK 0.000 1283.966 0.000 28.197
AMACKER, V.T. 106-1 PDP AMACKER-TIPPETT (DEVONIAN) 67.808 4676.392 0.343 23.662 0.0000000
TOTAL FIELD: AMACKER-TIPP 67.808 4676.392 0.343 23.662
ARCO -22- PDP ARBOL DE NADA 62.256 112.895 42.922 77.834 0.9977214
TOTAL FIELD: ARBOL DE NAD 62.256 112.895 42.922 77.834
LITTLE WHIT #1 PDP BIG WHIT (WOLFCAMP) 0.000 0.000 0.000 0.000 0.2500000
TOTAL FIELD: BIG WHIT (WO 0.000 0.000 0.000 0.000
FLETCHER, MAX J. 1 PDP BIRCH (SMACKOVER) 0.000 3547.743 0.000 30.050 0.0000000
FLETCHER, MAX J. 2 PDP BIRCH (SMACKOVER) 0.000 2957.294 0.000 25.049 0.0000000
FLETCHER, MAX J. 3 PDP BIRCH (SMACKOVER) 0.000 4803.362 0.000 40.686 0.0000000
TOTAL FIELD: BIRCH (SMACK 0.000 11308.399 0.000 95.785
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
AFGRD UNIT 0.0003200 2.912 2.712
AFNU 0.0011132 6.750 5.774
TOTAL FIELD: ALABAMA FERR 9.662 8.486
LEE 2-5 0.0219606 40.120 32.530
TOTAL FIELD: ALLISON PARK 40.120 32.530
AMACKER, V.T. 106-1 0.0050598 58.325 30.790
TOTAL FIELD: AMACKER-TIPP 58.325 30.790
ARCO -22- 0.6894362 576.014 272.207
TOTAL FIELD: ARBOL DE NAD 576.014 272.207
LITTLE WHIT #1 0.1756875 0.000 0.000
TOTAL FIELD: BIG WHIT (WO 0.000 0.000
FLETCHER, MAX J. 1 0.0084703 44.297 34.468
FLETCHER, MAX J. 2 0.0084703 50.048 34.377
FLETCHER, MAX J. 3 0.0084703 59.974 47.241
TOTAL FIELD: BIRCH (SMACK 154.319 116.086
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:11
PAGE: 30
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
UNIVERSITY 18-5 #3 PDP BLOCK 17 (CHERRY CANYON) 9.251 172.685 2.200 41.058 0.3614154
TOTAL FIELD: BLOCK 17 (CH 9.251 172.685 2.200 41.058
UNIVERSITY 10-18 A-3, A-4 & A- PDP BLOCK 18 (CHERRY CANYON) 33.733 710.934 2.037 42.929 0.0833000
UNIVERSITY 10-18 B-6 PDP BLOCK 18 (CHERRY CANYON) 0.849 460.197 0.071 38.355 0.1052000
UNIVERSITY 1018 'B' PDP BLOCK 18 (CHERRY CANYON) 4.486 6.630 0.374 0.553 0.1052000
UNIVERSITY 11-18 A-3 PDP BLOCK 18 (CHERRY CANYON) 5.528 251.292 0.348 15.827 0.1000000
UNIVERSITY 9-18 A-1 PDP BLOCK 18 (CHERRY CANYON) 45.803 412.226 3.179 28.608 0.0833333
TOTAL FIELD: BLOCK 18 (CH 90.399 1841.279 6.009 126.272
MEALS, NANCY 1 PDP BLOCK D 578.157 0.000 175.904 0.000 0.3958335
TOTAL FIELD: BLOCK D 578.157 0.000 175.904 0.000
BREEDLOVE 4 PDP BREEDLOVE SOUTH (SPRABERRY) 122.088 293.010 21.451 51.482 0.2500000
TOTAL FIELD: BREEDLOVE SO 122.088 293.010 21.451 51.482
LITTLE WHIT #4 PDP COBRA (WOLFCAMP) 23.151 35.884 4.067 6.304 0.2500000
TOTAL FIELD: COBRA (WOLFC 23.151 35.884 4.067 6.304
ALLEN, J.H. #1 PDP CROW 0.000 0.000 0.000 0.000 0.7916666
ALLEN, J.H. #2 PDP CROW 136.189 278.568 83.640 171.081 0.7916660
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
UNIVERSITY 18-5 #3 0.2377637 59.062 38.971
TOTAL FIELD: BLOCK 17 (CH 59.062 38.971
UNIVERSITY 10-18 A-3, A-4 & A- 0.0603840 108.285 96.659
UNIVERSITY 10-18 B-6 0.0833444 47.360 38.869
UNIVERSITY 1018 'B' 0.0833444 1.293 1.264
UNIVERSITY 11-18 A-3 0.0629829 23.315 21.580
UNIVERSITY 9-18 A-1 0.0694000 87.211 68.894
TOTAL FIELD: BLOCK 18 (CH 267.464 227.266
MEALS, NANCY 1 0.3042500 1926.829 775.284
TOTAL FIELD: BLOCK D 1926.829 775.284
BREEDLOVE 4 0.1757000 320.598 134.223
TOTAL FIELD: BREEDLOVE SO 320.598 134.223
LITTLE WHIT #4 0.1756875 34.515 27.008
TOTAL FIELD: COBRA (WOLFC 34.515 27.008
ALLEN, J.H. #1 0.6141437 0.000 0.000
ALLEN, J.H. #2 0.6141438 1505.052 685.532
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:12
PAGE: 31
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: CROW 136.189 278.568 83.640 171.081
UNIVERSITY 18-31 3 PDP EAST QUITO (CHERRY CANYON) 0.000 0.000 0.000 0.000
WALKER, P., ET AL 4 PDP EAST QUITO (CHERRY CANYON) 0.000 322.128 0.000 41.265
TOTAL FIELD: EAST QUITO ( 0.000 322.128 0.000 41.265
COLDWELL, DALLAS PDP EAST TEXAS 402.649 120.795 3.564 1.069
LATHROP -B- PDP EAST TEXAS 76.695 0.080 0.014 0.000
LATHROP -C- ORRI PDP EAST TEXAS 2037.784 611.335 0.376 0.113
LATHROP, F. K. 1 PDP EAST TEXAS 220.220 66.066 0.041 0.012
LEE, T. W. PDP EAST TEXAS 18.831 0.000 0.119 0.000
LEE, T. W. PDP EAST TEXAS 94.053 23.513 0.592 0.148
LEE, TAYLOR W. PDP EAST TEXAS 516.960 142.164 2.480 0.682
SMITH, A. PDP EAST TEXAS 99.732 37.400 0.237 0.089
SORRELL PDP EAST TEXAS 72.989 21.897 0.201 0.060
TOTAL FIELD: EAST TEXAS 3539.913 1023.250 7.624 2.173
NORTHEAST EDGEWOOD UNIT PDP EDGEWOOD NE (SMACKOVER) 0.000 21096.668 0.000 13.924
TOTAL FIELD: EDGEWOOD NE 0.000 21096.668 0.000 13.924
PHILLIPS EDWARDS PDP EDWARDS WEST 31.912 45.569 22.426 32.023
TOTAL FIELD: EDWARDS WEST 31.912 45.569 22.426 32.023
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: CROW 1505.052 685.532
UNIVERSITY 18-31 3 0.1257782 0.0640807 0.000 0.000
WALKER, P., ET AL 4 0.1562451 0.1281016 17.985 13.626
TOTAL FIELD: EAST QUITO ( 17.985 13.626
COLDWELL, DALLAS 0.0000000 0.0088518 67.608 40.414
LATHROP -B- 0.0000000 0.0001845 0.256 0.175
LATHROP -C- ORRI 0.0000000 0.0001845 7.063 4.110
LATHROP, F. K. 1 0.0000000 0.0001845 0.724 0.426
LEE, T. W. 0.0000000 0.0062979 2.155 1.637
LEE, T. W. 0.0000000 0.0062979 11.033 7.051
LEE, TAYLOR W. 0.0000000 0.0047982 46.313 27.332
SMITH, A. 0.0000000 0.0023773 4.556 2.762
SORRELL 0.0000000 0.0027524 3.757 2.316
TOTAL FIELD: EAST TEXAS 143.465 86.223
NORTHEAST EDGEWOOD UNIT 0.0000000 0.0006600 22.256 14.469
TOTAL FIELD: EDGEWOOD NE 22.256 14.469
PHILLIPS EDWARDS 1.0000000 0.7027500 200.740 156.545
TOTAL FIELD: EDWARDS WEST 200.740 156.545
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:12
PAGE: 32
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
STATE 904 l-1 GAS UNIT PDP G O M ST-904 (FRIO 1-A) 67.549 1179.508 11.289 197.130
TOTAL FIELD: G O M ST-904 67.549 1179.508 11.289 197.130
STATE 904 L-3 GAS UNIT PDP G O M ST-904 (FRIO 8200) 17.762 1953.826 3.300 363.011
TOTAL FIELD: G O M ST-904 17.762 1953.826 3.300 363.011
CHANCE - BLAHA UNIT PDP GIDDINGS (AUSTIN CHALK-3) 24.923 218.074 5.077 44.422
CHANCE ESTATE UNIT PDP GIDDINGS (AUSTIN CHALK-3) 23.705 279.719 5.009 59.109
MIKESKA/KRENEK PDP GIDDINGS (AUSTIN CHALK-3) 132.324 91.609 40.751 28.212
TOTAL FIELD: GIDDINGS (AU 180.952 589.402 50.837 131.743
HUDDLESTON, C. L. PDP GINGER SE (SMACKOVER) 0.000 6342.729 0.000 27.070
HUDDLESTON, C.L. PDP GINGER SE (SMACKOVER) 0.000 2073.870 0.000 8.851
TOTAL FIELD: GINGER SE (S 0.000 8416.599 0.000 35.921
OSR-HALLIDAY UNIT PDP HALLIDAY (WOODBINE) 1395.285 1079.864 0.229 0.177
TOTAL FIELD: HALLIDAY (WO 1395.285 1079.864 0.229 0.177
FUTRELL PDP HALLSVILLE NE (PETTIT) 1.096 78.319 0.128 9.173
TOTAL FIELD: HALLSVILLE N 1.096 78.319 0.128 9.173
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
STATE 904 l-1 GAS UNIT 0.2246620 0.1671290 580.201 469.449
TOTAL FIELD: G O M ST-904 580.201 469.449
STATE 904 L-3 GAS UNIT 0.2478040 0.1857950 847.837 735.666
TOTAL FIELD: G O M ST-904 847.837 735.666
CHANCE - BLAHA UNIT 0.3000000 0.2037000 136.531 117.070
CHANCE ESTATE UNIT 0.3000000 0.2113170 80.680 68.163
MIKESKA/KRENEK 0.3083900 0.3079660 669.655 408.522
TOTAL FIELD: GIDDINGS (AU 886.866 593.755
HUDDLESTON, C. L. 0.0000000 0.0042679 52.885 33.034
HUDDLESTON, C.L. 0.0000000 0.0042679 17.292 13.380
TOTAL FIELD: GINGER SE (S 70.177 46.414
OSR-HALLIDAY UNIT 0.0000000 0.0001643 4.493 2.507
TOTAL FIELD: HALLIDAY (WO 4.493 2.507
FUTRELL 0.1465000 0.1171250 14.320 11.422
TOTAL FIELD: HALLSVILLE N 14.320 11.422
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:12
PAGE: 33
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
KING PDP HANSFORD 1.139 237.579 0.761 158.646
TOTAL FIELD: HANSFORD 1.139 237.579 0.761 158.646
JOHNSON GBSA UNIT PDP JOHNSON 2552.873 1302.239 81.365 41.505
TOTAL FIELD: JOHNSON 2552.873 1302.239 81.365 41.505
SACROC UNIT PDP KELLY-SNYDER 18463.676 0.000 1.693 0.000
TOTAL FIELD: KELLY-SNYDER 18463.676 0.000 1.693 0.000
JONES, JOHN PDP KNOTT SW 16.078 1.791 10.830 1.206
TOTAL FIELD: KNOTT SW 16.078 1.791 10.830 1.206
FEENEY HILL GAS UNIT PDP LEATHERMAN CREEK (SMACKOVER) 0.000 846.584 0.000 4.401
TOTAL FIELD: LEATHERMAN C 0.000 846.584 0.000 4.401
CHANDLER PDP MARTINS MILL (RODESSA 8250) 1.253 24.384 0.004 0.081
TOTAL FIELD: MARTINS MILL 1.253 24.384 0.004 0.081
STATE TRACT 562-L PDP MATAGORDA BLOCK 562-L (6470) 26.923 12.115 1.009 0.454
TOTAL FIELD: MATAGORDA BL 26.923 12.115 1.009 0.454
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
KING 0.9502000 0.6677600 263.496 132.876
TOTAL FIELD: HANSFORD 263.496 132.876
JOHNSON GBSA UNIT 0.0300960 0.0318720 713.853 501.718
TOTAL FIELD: JOHNSON 713.853 501.718
SACROC UNIT 0.0000000 0.0000917 31.803 20.726
TOTAL FIELD: KELLY-SNYDER 31.803 20.726
JONES, JOHN 0.9400000 0.6735902 79.642 70.947
TOTAL FIELD: KNOTT SW 79.642 70.947
FEENEY HILL GAS UNIT 0.0000000 0.0051983 7.777 5.777
TOTAL FIELD: LEATHERMAN C 7.777 5.777
CHANDLER 0.0000000 0.0033120 0.246 0.211
TOTAL FIELD: MARTINS MILL 0.246 0.211
STATE TRACT 562-L 0.0000000 0.0374800 19.021 15.841
TOTAL FIELD: MATAGORDA BL 19.021 15.841
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:13
PAGE: 34
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET WORKING
LEASE TYPE FIELD OIL GAS OIL GAS INTEREST
- ----------------------------- ------- -------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -------
<S> <C> <C> <C> <C> <C> <C> <C>
OPELIKA GAS UNIT* PDP OPELIKA 0.000 1115.021 0.000 0.072 0.0000000
TOTAL FIELD: OPELIKA 0.000 1115.021 0.000 0.072
PIERCE, V. I. 10-1 PDP OZONA 0.000 0.000 0.000 0.000 0.7500000
PIERCE, V. I. 10-2 PDP OZONA 0.000 44.066 0.000 25.161 0.7500000
PIERCE, V. I. 10-3 PDP OZONA 0.000 8.210 0.000 4.687 0.7500000
PIERCE, V. I. 10-5 PDP OZONA 0.000 117.060 0.000 66.839 0.7500000
PIERCE, V. I. 10-6 PDP OZONA 0.000 166.725 0.000 3.808 0.0000000
PIERCE, V. I. 2-1 PDP OZONA 0.000 185.346 0.000 105.830 0.7500000
PIERCE-HENDERSON 7-1 PDP OZONA 0.000 331.718 0.000 189.406 0.7500000
PIERCE-HENDERSON 7-2 PDP OZONA 0.000 13.298 0.000 7.593 0.7500000
PIERCE-HENDERSON 7A-1 PDP OZONA 0.000 1.455 0.000 0.831 0.7500000
TOTAL FIELD: OZONA 0.000 867.878 0.000 404.155
PIERCE, V. I. 10-4 PDP OZONA (CANYON) 0.000 0.000 0.000 0.000 0.7500001
PIERCE, V. I. 10-7 PDP OZONA (CANYON) 0.000 14.888 0.000 8.501 0.7500000
PIERCE, V. I. 2-2 PDP OZONA (CANYON) 0.000 2.200 0.000 1.256 0.7500001
PIERCE, V. I. 2-4 PDP OZONA (CANYON) 2.899 446.017 0.552 84.889 0.2500000
PIERCE, V. I. 2-5 PDP OZONA (CANYON) 0.000 115.008 0.000 65.668 0.7499999
PIERCE, V. I. 2-6 PDP OZONA (CANYON) 0.000 308.789 0.000 176.314 0.7500000
PIERCE, V. I. 3-2 PDP OZONA (CANYON) 1.733 192.610 0.330 36.659 0.2500000
PIERCE, V. I. 9-1 PDP OZONA (CANYON) 0.000 33.343 0.000 19.038 0.7500000
PIERCE, V. I. 9-3 PDP OZONA (CANYON) 0.000 2.200 0.000 1.256 0.7500001
PIERCE-HENDERSON 7-3 PDP OZONA (CANYON) 0.000 191.188 0.000 8.397 0.0000000
PIERCE-HENDERSON 7-4 PDP OZONA (CANYON) 0.000 24.456 0.000 1.074 0.0000000
<CAPTION>
REVENUE NET DISC NET
LEASE INTEREST REVENUE REVENUE
- ----------------------------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C>
OPELIKA GAS UNIT* 0.0000646 0.159 0.079
TOTAL FIELD: OPELIKA 0.159 0.079
PIERCE, V. I. 10-1 0.5709841 0.000 0.000
PIERCE, V. I. 10-2 0.5709841 7.085 5.301
PIERCE, V. I. 10-3 0.5709841 0.553 0.519
PIERCE, V. I. 10-5 0.5709841 54.780 35.532
PIERCE, V. I. 10-6 0.0228403 7.304 3.602
PIERCE, V. I. 2-1 0.5709841 102.415 57.514
PIERCE-HENDERSON 7-1 0.5709841 270.431 132.998
PIERCE-HENDERSON 7-2 0.5709841 3.194 2.560
PIERCE-HENDERSON 7A-1 0.5709841 0.041 0.040
TOTAL FIELD: OZONA 445.803 238.066
PIERCE, V. I. 10-4 0.5709841 0.000 0.000
PIERCE, V. I. 10-7 0.5709841 6.181 5.753
PIERCE, V. I. 2-2 0.5709841 0.047 0.046
PIERCE, V. I. 2-4 0.1903278 125.123 63.773
PIERCE, V. I. 2-5 0.5709841 50.694 31.749
PIERCE, V. I. 2-6 0.5709841 219.046 117.381
PIERCE, V. I. 3-2 0.1903278 41.703 24.336
PIERCE, V. I. 9-1 0.5709841 7.492 6.092
PIERCE, V. I. 9-3 0.5709841 0.047 0.046
PIERCE-HENDERSON 7-3 0.0439216 16.256 6.652
PIERCE-HENDERSON 7-4 0.0439216 2.060 1.538
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:13
PAGE: 35
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
PIERCE-HENDERSON 7-5 PDP OZONA (CANYON) 0.000 213.110 0.000 32.465
PIERCE-HENDERSON 8-1 PDP OZONA (CANYON) 0.000 200.723 0.000 114.610
PIERCE-HENDERSON 8-2 PDP OZONA (CANYON) 0.000 0.000 0.000 0.000
PIERCE-HENDERSON 8-3 PDP OZONA (CANYON) 0.000 643.274 0.000 14.692
TOTAL FIELD: OZONA (CANYO 4.632 2387.806 0.882 564.819
PADGITT, JAMES T. 3 PDP PADGITT 0.000 702.042 0.000 43.844
TOTAL FIELD: PADGITT 0.000 702.042 0.000 43.844
GAULT, SARAH 1-5 PDP PARSLEY 92.398 1293.573 33.879 474.301
GAULT, SARAH 1-5 PDBP PDBP PARSLEY 29.982 59.963 10.993 21.986
GAULT, SARAH 3-5 PDBP PDBP PARSLEY 29.982 59.963 10.993 21.986
TOTAL FIELD: PARSLEY 152.362 1413.499 55.865 518.273
GAULT, SARAH 3-5 PDP PARSLEY (ATOKA) 10.375 0.000 3.804 0.000
TOTAL FIELD: PARSLEY (ATO 10.375 0.000 3.804 0.000
HURT PDP PEARSALL 49.980 86.222 26.343 45.444
TOTAL FIELD: PEARSALL 49.980 86.222 26.343 45.444
COVINGTON #1 PDP PERRIN NORTH AFB 33.848 138.039 23.630 96.368
COVINGTON #1 - PDBP PDBP PERRIN NORTH AFB 40.000 110.000 27.925 76.794
<CAPTION>
WORKING RREVENUE NET DISC NET
LEASE INTEREST IINTEREST REVENUE REVENUE
- ----------------------------- ------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
PIERCE-HENDERSON 7-5 0.1875000 0.1523400 34.174 18.341
PIERCE-HENDERSON 8-1 0.7500000 0.5709841 88.296 55.365
PIERCE-HENDERSON 8-2 0.0000000 0.0439216 0.000 0.000
PIERCE-HENDERSON 8-3 0.0000000 0.0228397 27.007 10.301
TOTAL FIELD: OZONA (CANYO 618.126 341.373
PADGITT, JAMES T. 3 0.0820312 0.0624515 70.117 55.263
TOTAL FIELD: PADGITT 70.117 55.263
GAULT, SARAH 1-5 0.5000000 0.3666600 963.600 498.597
GAULT, SARAH 1-5 PDBP 0.5000000 0.3666600 25.330 0.468
GAULT, SARAH 3-5 PDBP 0.5000000 0.3666600 25.330 8.168
TOTAL FIELD: PARSLEY 1014.260 507.233
GAULT, SARAH 3-5 0.5000000 0.3666600 37.287 29.423
TOTAL FIELD: PARSLEY (ATO 37.287 29.423
HURT 0.7499999 0.5270625 332.862 278.399
TOTAL FIELD: PEARSALL 332.862 278.399
COVINGTON #1 0.8514999 0.6981236 461.952 301.570
COVINGTON #1 - PDBP 0.8514999 0.6981237 585.490 383.360
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:14
PAGE: 36
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: PERRIN NORTH 73.848 248.039 51.555 173.162
UNIVERSITY 18-29 GAS UNIT 1 PDP QUITO EAST (ATOKA) 0.000 323.204 0.000 40.959
TOTAL FIELD: QUITO EAST ( 0.000 323.204 0.000 40.959
MCDANIEL, LOIS 1 PDP QUITO EAST (CHERRY CANYON) 1.577 420.330 0.205 54.551
UNIVERSITY 18-29 4 PDP QUITO EAST (CHERRY CANYON) 1.305 87.004 0.084 5.575
UNIVERSITY 18-30 #2 PDP QUITO EAST (CHERRY CANYON) 55.244 1972.985 5.696 203.415
UNIVERSITY 18-31 1 PDP QUITO EAST (CHERRY CANYON) 0.000 0.000 0.000 0.000
UNIVERSITY 18-31 4 PDP QUITO EAST (CHERRY CANYON) 4.683 425.769 0.300 27.284
UNIVERSITY 18-31 6 PDP QUITO EAST (CHERRY CANYON) 10.275 205.500 0.658 13.169
UNIVERSITY 1829-6, 8 & 10 PDP QUITO EAST (CHERRY CANYON) 62.215 221.344 7.884 28.050
WALKER, P., ET AL 5 & 6 PDP QUITO EAST (CHERRY CANYON) 14.876 956.452 1.906 122.523
TOTAL FIELD: QUITO EAST ( 150.175 4289.384 16.733 454.567
WALKER, P., ET AL 2-L PDP QUITO EAST (ELLENBURGER) 0.000 99.207 0.000 12.709
TOTAL FIELD: QUITO EAST ( 0.000 99.207 0.000 12.709
ROBERTSON-BLUESTEM PDP SEPTEMBER (9300) 38.320 1751.759 2.912 133.108
TOTAL FIELD: SEPTEMBER (9 38.320 1751.759 2.912 133.108
DAVIS, E.T. 1-60 PDP STILES RANCH 11.356 2271.221 0.205 40.902
DAVIS, G.C. 1-61 PDP STILES RANCH 9.757 4510.748 0.216 100.043
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: PERRIN NORTH 1047.442 684.930
UNIVERSITY 18-29 GAS UNIT 1 0.1584610 0.1267265 54.593 40.607
TOTAL FIELD: QUITO EAST ( 54.593 40.607
MCDANIEL, LOIS 1 0.1562338 0.1297807 84.129 72.452
UNIVERSITY 18-29 4 0.1257782 0.0640807 2.006 1.876
UNIVERSITY 18-30 #2 0.1258000 0.1031000 451.540 252.727
UNIVERSITY 18-31 1 0.1257782 0.0640807 0.000 0.000
UNIVERSITY 18-31 4 0.1257782 0.0640807 24.567 19.711
UNIVERSITY 18-31 6 0.1257782 0.0640807 11.315 9.086
UNIVERSITY 1829-6, 8 & 10 0.1584610 0.1267265 92.154 75.750
WALKER, P., ET AL 5 & 6 0.1562451 0.1281016 123.631 83.437
TOTAL FIELD: QUITO EAST ( 789.342 515.039
WALKER, P., ET AL 2-L 0.1562451 0.1281016 4.038 3.167
TOTAL FIELD: QUITO EAST ( 4.038 3.167
ROBERTSON-BLUESTEM 0.1081250 0.0759850 241.740 100.375
TOTAL FIELD: SEPTEMBER (9 241.740 100.375
DAVIS, E.T. 1-60 0.0243750 0.0180088 104.228 71.186
DAVIS, G.C. 1-61 0.0291220 0.0221789 230.170 90.257
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:14
PAGE: 37
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: STILES RANCH 21.113 6781.969 0.421 140.945
WYNN 1 PDP STUART RANCH 5.070 582.778 1.566 180.009
TOTAL FIELD: STUART RANCH 5.070 582.778 1.566 180.009
TCGU7 (LEOPARD, C.W. 1) PDP TRI-CITIES (TRAVIS PEAK LOWER) 0.000 1408.811 0.000 2.070
TOTAL FIELD: TRI-CITIES ( 0.000 1408.811 0.000 2.070
PORTER PDP TWITTY (GRANITE WASH) 16.837 715.585 4.601 195.563
TOTAL FIELD: TWITTY (GRAN 16.837 715.585 4.601 195.563
UNIVERSITY 10-18 B-2 & B-4 PDP WAR-WINK S-WOLFCAMP 0.000 0.000 0.000 0.000
TOTAL FIELD: WAR-WINK S-W 0.000 0.000 0.000 0.000
UNIVERSITY 10-18 #A-6 -PUD PUD WAR-WINK SOUTH 29.993 817.248 2.339 63.745
UNIVERSITY 10-18 #A-7-PUD PUD WAR-WINK SOUTH 29.993 817.248 2.339 63.745
UNIVERSITY 10-18 #B-8-PUD PUD WAR-WINK SOUTH 29.992 813.953 2.249 61.046
UNIVERSITY 10-18 #B-9 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 2.339 63.745
UNIVERSITY 11-18 #A-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 #B-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 #B-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 11-18 #B-5 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 18-29 #2 PUD PUD WAR-WINK SOUTH 30.000 808.773 2.823 76.105
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: STILES RANCH 334.398 161.443
WYNN 1 0.4145310 0.3088800 354.614 182.869
TOTAL FIELD: STUART RANCH 354.614 182.869
TCGU7 (LEOPARD, C.W. 1) 0.0000000 0.0014696 4.891 2.964
TOTAL FIELD: TRI-CITIES ( 4.891 2.964
PORTER 0.3333300 0.2732914 232.760 117.005
TOTAL FIELD: TWITTY (GRAN 232.760 117.005
UNIVERSITY 10-18 B-2 & B-4 0.0833000 0.0650695 0.000 0.000
TOTAL FIELD: WAR-WINK S-W 0.000 0.000
UNIVERSITY 10-18 #A-6 -PUD 0.1000000 0.0780000 122.365 90.004
UNIVERSITY 10-18 #A-7-PUD 0.1000000 0.0780000 122.365 88.586
UNIVERSITY 10-18 #B-8-PUD 0.1000000 0.0750000 114.963 83.771
UNIVERSITY 10-18 #B-9 PROBABLE 0.1000000 0.0780000 122.366 87.885
UNIVERSITY 11-18 #A-4 PROBABLE 0.0833300 0.0650000 101.974 72.660
UNIVERSITY 11-18 #B-3 PROBABLE 0.0833300 0.0650000 101.974 72.085
UNIVERSITY 11-18 #B-4 PROBABLE 0.0833300 0.0650000 101.974 71.515
UNIVERSITY 11-18 #B-5 PROBABLE 0.0833300 0.0650000 101.974 70.949
UNIVERSITY 18-29 #2 PUD 0.1318000 0.0941000 141.956 93.334
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:15
PAGE: 38
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
UNIVERSITY 18-29 #5 PUD PUD WAR-WINK SOUTH 30.000 799.461 2.823 75.229
UNIVERSITY 18-29 #7 PUD PUD WAR-WINK SOUTH 30.000 799.461 2.823 75.229
UNIVERSITY 22-18 #A-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 23-18 #A-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 23-18 #A-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 24-18 #2 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 9-18 #A-3 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
UNIVERSITY 9-18 #A-4 PROBABLE PRU WAR-WINK SOUTH 29.993 817.248 1.950 53.121
TOTAL FIELD: WAR-WINK SOU 509.901 13845.872 37.235 1010.054
UNIVERSITY 10-18 1-U PDP WAR-WINK SOUTH (FUSSELMAN) 0.000 14498.209 0.000 943.833
UNIVERSITY 18-6 2-U PDP WAR-WINK SOUTH (FUSSELMAN) 0.000 0.000 0.000 0.000
TOTAL FIELD: WAR-WINK SOU 0.000 14498.209 0.000 943.833
UNIVERSITY -1829- PDP WAR-WINK SOUTH (WOLFCAMP) 361.967 773.294 34.061 72.767
UNIVERSITY 10-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 46.734 46.734 3.599 3.599
UNIVERSITY 11-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 25.932 86.441 1.687 5.625
UNIVERSITY 11-18 B-1 & B-2 PDP WAR-WINK SOUTH (WOLFCAMP) 109.613 70.038 7.132 4.557
UNIVERSITY 18-6 3 PDP WAR-WINK SOUTH (WOLFCAMP) 10.620 10.620 2.525 2.525
UNIVERSITY 22-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 72.354 32.348 6.647 2.972
UNIVERSITY 22-18 B-1 PDP WAR-WINK SOUTH (WOLFCAMP) 0.000 0.000 0.000 0.000
UNIVERSITY 23-18 A-1 & A-2 PDP WAR-WINK SOUTH (WOLFCAMP) 35.107 72.311 2.284 4.705
UNIVERSITY 24-18 A-1 PDP WAR-WINK SOUTH (WOLFCAMP) 0.000 0.000 0.000 0.000
UNIVERSITY 9-18 -B- PDP WAR-WINK SOUTH (WOLFCAMP) 30.269 82.000 1.970 5.336
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
UNIVERSITY 18-29 #5 PUD 0.1318000 0.0941000 141.863 91.832
UNIVERSITY 18-29 #7 PUD 0.1318000 0.0941000 141.863 90.385
UNIVERSITY 22-18 #A-3 PROBABLE 0.0833300 0.0650000 101.974 70.388
UNIVERSITY 23-18 #A-3 PROBABLE 0.0833300 0.0650000 101.974 69.831
UNIVERSITY 23-18 #A-4 PROBABLE 0.0833300 0.0650000 101.974 69.278
UNIVERSITY 24-18 #2 PROBABLE 0.0833300 0.0650000 101.974 68.730
UNIVERSITY 9-18 #A-3 PROBABLE 0.0833300 0.0650000 101.974 68.186
UNIVERSITY 9-18 #A-4 PROBABLE 0.0833300 0.0650000 101.974 67.647
TOTAL FIELD: WAR-WINK SOU 1927.481 1327.066
UNIVERSITY 10-18 1-U 0.0834000 0.0651000 2246.024 1743.860
UNIVERSITY 18-6 2-U 0.2900000 0.2377637 0.000 0.000
TOTAL FIELD: WAR-WINK SOU 2246.024 1743.860
UNIVERSITY -1829- 0.1318000 0.0941000 406.063 229.246
UNIVERSITY 10-18 A-1 & A-2 0.1088300 0.0770000 31.453 26.529
UNIVERSITY 11-18 A-1 & A-2 0.0833000 0.0650695 16.316 14.015
UNIVERSITY 11-18 B-1 & B-2 0.0833000 0.0650695 69.645 54.903
UNIVERSITY 18-6 3 0.2900000 0.2377638 18.504 16.665
UNIVERSITY 22-18 A-1 & A-2 0.1176470 0.0918627 65.614 48.705
UNIVERSITY 22-18 B-1 0.1176470 0.0918627 0.000 0.000
UNIVERSITY 23-18 A-1 & A-2 0.0833333 0.0650695 27.659 24.492
UNIVERSITY 24-18 A-1 0.0833333 0.0650695 0.000 0.000
UNIVERSITY 9-18 -B- 0.0833000 0.0650695 27.120 21.846
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
Date: 10/29/96
Time: 10:18:15
Page: 39
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: WAR-WINK SOU 692.596 1173.786 59.905 102.086
WELLS GAS UNIT 2-T PDP WASKOM 0.167 16.661 0.028 2.817
TOTAL FIELD: WASKOM 0.167 16.661 0.028 2.817
WELLS, M. W. 1-T PDP WASKOM (TRAVIS PEAK 1) 0.716 295.470 0.121 49.955
TOTAL FIELD: WASKOM (TRAV 0.716 295.470 0.121 49.955
LATHROP, F.K. GAS UNIT PDP WILLOW SPRINGS (COTTON VALLEY 0.000 137.525 0.000 0.016
LATHROP, F.K. GAS UNIT 4 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 307.188 0.000 0.040
LATHROP, F.K. GAS UNIT 5 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 376.302 0.000 0.113
LATHROP, F.K. GU #2-ORRI PDP WILLOW SPRINGS (COTTON VALLEY 6.039 805.200 0.001 0.105
LEE GAS UNIT B-3 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 665.514 0.000 0.200
LEE GAS UNIT B-4 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 645.389 0.000 0.194
LEE GAS UNIT B-5 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 1022.655 0.000 0.308
LEE GAS UNIT B-6 PDP WILLOW SPRINGS (COTTON VALLEY 0.000 1374.976 0.000 0.414
TOTAL FIELD: WILLOW SPRIN 6.039 5334.749 0.001 1.390
HARRISON -C- 1-T PDP WILLOW SPRINGS (HENDERSON) 0.000 234.786 0.000 0.015
LEE -B- GAS UNIT 1-C PDP WILLOW SPRINGS (HENDERSON) 0.000 585.788 0.000 1.219
TOTAL FIELD: WILLOW SPRIN 0.000 820.574 0.000 1.234
HARRISON -C- 1-C PDP WILLOW SPRINGS (RODESSA) 0.000 140.412 0.000 0.009
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- -------- -------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: WAR-WINK SOU 662.374 436.401
WELLS GAS UNIT 2-T 0.2062200 0.1690700 0.580 0.547
TOTAL FIELD: WASKOM 0.580 0.547
WELLS, M. W. 1-T 0.2062200 0.1690700 84.896 76.074
TOTAL FIELD: WASKOM (TRAV 84.896 76.074
LATHROP, F.K. GAS UNIT 0.0000000 0.0001188 0.035 0.032
LATHROP, F.K. GAS UNIT 4 0.0000000 0.0001308 0.087 0.074
LATHROP, F.K. GAS UNIT 5 0.0000000 0.0003011 0.247 0.213
LATHROP, F.K. GU #2-ORRI 0.0000000 0.0001308 0.243 0.171
LEE GAS UNIT B-3 0.0000000 0.0003011 0.427 0.291
LEE GAS UNIT B-4 0.0000000 0.0003011 0.414 0.306
LEE GAS UNIT B-5 0.0000000 0.0003011 0.656 0.477
LEE GAS UNIT B-6 0.0000000 0.0003011 0.882 0.589
TOTAL FIELD: WILLOW SPRIN 2.991 2.153
HARRISON -C- 1-T 0.0000000 0.0000642 0.027 0.017
LEE -B- GAS UNIT 1-C 0.0000000 0.0020803 2.879 1.369
TOTAL FIELD: WILLOW SPRIN 2.906 1.386
HARRISON -C- 1-C 0.0000000 0.0000642 0.016 0.011
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:16
PAGE: 40
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
TOTAL FIELD: WILLOW SPRIN 0.000 140.412 0.000 0.009
HARRISON, P.D. E G.U. PDP WILLOW SPRINGS WEST (TRAVIS PE 3.665 305.393 0.001 0.092
KILLINGSWORTH B-3 PDP WILLOW SPRINGS WEST (TRAVIS PE 3.775 377.510 0.001 0.114
KILLINGSWORTH B-4 PDP WILLOW SPRINGS WEST (TRAVIS PE 3.018 215.556 0.000 0.003
TOTAL FIELD: WILLOW SPRIN 10.458 898.459 0.002 0.209
LEE -G- PDP WILLOW SPRINGS-MACKEY (TRAVIS 15.217 115.646 0.005 0.035
TOTAL FIELD: WILLOW SPRIN 15.217 115.646 0.005 0.035
SNYDER - STATE OF TEXAS GAS UN PDP WORSHAM-BAYER (DEVONIAN) 27.744 10727.873 1.993 770.583
TOTAL FIELD: WORSHAM-BAYE 27.744 10727.873 1.993 770.583
TOTAL STATE: TX 30592.102 130669.394 792.679 7447.392
AMKIRK UNIT PDP AM-KIRK 321.555 0.000 13.923 0.000
TOTAL FIELD: AM-KIRK 321.555 0.000 13.923 0.000
BLUE FOREST UNIT PDP BLUE FOREST 799.304 41521.016 1.298 67.434
TOTAL FIELD: BLUE FOREST 799.304 41521.016 1.298 67.434
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
TOTAL FIELD: WILLOW SPRIN 0.016 0.011
HARRISON, P.D. E G.U. 0.0000000 0.0003011 0.216 0.188
KILLINGSWORTH B-3 0.0000000 0.0003011 0.256 0.200
KILLINGSWORTH B-4 0.0000000 0.0000149 0.007 0.006
TOTAL FIELD: WILLOW SPRIN 0.479 0.394
LEE -G- 0.0000000 0.0003011 0.166 0.082
TOTAL FIELD: WILLOW SPRIN 0.166 0.082
SNYDER - STATE OF TEXAS GAS UN 0.0937500 0.0718300 1725.929 472.010
TOTAL FIELD: WORSHAM-BAYE 1725.929 472.010
TOTAL STATE: TX 21092.412 12544.774
AMKIRK UNIT 0.0540700 0.0433000 116.477 101.200
TOTAL FIELD: AM-KIRK 116.477 101.200
BLUE FOREST UNIT 0.0020511 0.0016241 142.165 88.664
TOTAL FIELD: BLUE FOREST 142.165 88.664
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
DATE: 10/29/96
TIME: 10:18:16
PAGE: 41
LEE KEELING AND ASSOCIATES, INC.
FIELD SUMMARIES AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY
LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
RESERVE GROSS GROSS NET NET
LEASE TYPE FIELD OIL GAS OIL GAS
- ----------------------------- ------- ------------------------------- ---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)--
<S> <C> <C> <C> <C> <C> <C>
SIMPSON NW NW PDP SIMPSON RANCH (MINNELUSA) 126.069 0.000 15.523 0.000
TOTAL FIELD: SIMPSON RANC 126.069 0.000 15.523 0.000
TOTAL STATE: WY 1246.928 41521.016 30.744 67.434
GRAND TOTAL 87356.608 584245.442 7554.708 31360.915
<CAPTION>
WORKING REVENUE NET DISC NET
LEASE INTEREST INTEREST REVENUE REVENUE
- ----------------------------- ------- ------- ---(M$)--- @10.00% M$
<S> <C> <C> <C> <C>
SIMPSON NW NW 0.1847000 0.1231272 159.872 75.073
TOTAL FIELD: SIMPSON RANC 159.872 75.073
TOTAL STATE: WY 418.514 264.937
GRAND TOTAL 115288.106 57657.186
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTRY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
345 3 AFGRD UNIT 521 TX HOUSTON ALABAMA FERRY (GLEN ROSE D)
346 3 AFNU 522 TX LEON ALABAMA FERRY (GLEN ROSE D)
237 3 ALLEN, BOBBIE LEE 23-15C 342 MS CHICKASAW BACON
238 3 ALLEN, BOBBIE LEE 23-15T 341 MS CHICKASAW BACON
347 3 ALLEN, J.H. #1 343 TX WOOD CROW
348 3 ALLEN, J.H. #2 210 TX WOOD CROW
344 3 ALUM CREEK FIELD TOTAL 637 SD FALL RIVER ALUM CREEK
349 3 AMAKER, V.T. 106-1 638 TX UPTON AMAKER-TIPPETT (DEVONIAN)
1 2 AMC 14-15 1L 344 AL FAYETTE MCCRACKEN MOUNTAIN
2 2 AMC 14-15 1M 345 AL FAYETTE MCCRACKEN MOUNTAIN
3 2 AMC 14-15 BP 605 AL FAYETTE MCCRACKEN MOUNTAIN
4 2 AMC 14-15 BP 607 AL FAYETTE MCCRACKEN MOUNTAIN
5 2 AMERICAN CAN 11-5 1C 346 AL PICKENS WOOLBANK CREEK
6 2 AMERICAN CAN 11-5 1C BP 602 AL PICKENS WOOLBANK CREEK
7 2 AMERICAN CAN 11-5 1D, E 347 AL PICKENS WOOLBANK CREEK
491 3 AMKIRK UNIT 551 WY CAMPBELL AM-KIRK
8 2 ANDERS, GRACE 13-15 1C 414 AL FAYETTE MCCRACKEN MTN
9 2 ANDERS, GRACE 13-15 1T 415 AL FAYETTE MCCRACKEN MTN
239 3 ANDERSON 14-12 1-E 337 MS LEE NETTLETON NORTH
240 3 ANDERSON 14-12 1-E BP 596 MS LEE NETTLETON NORTH
241 3 ANDERSON 14-12 1L 338 MS LEE NETTLETON NORTH
242 3 ANDERSON 7-2 487 MS CHICKASAW BALLS BRANCH (MISSISSIPPIAN LE
184 2 ARAPAHOE, NORTHWEST UNIT 62 CO CHEYENNE ARAPAHOE
350 3 ARCO -22- 211 TX ECTOR ARBOL DE NADA
10 2 ATIC 18-13 1 SW SW 416 AL ESCAMBIA HUXFORD EAST
11 2 ATKINSON CHAS-FED LD BK 1-17 639 AL FAYETTE BLUFF
12 2 BACCUS 13-16 640 AL FAYETTE HEARTLINE
13 2 BAINES M E 1B 350 AL FAYETTE MCCRACKEN MOUNTAIN
14 2 BAINES M E 1C 351 AL FAYETTE MCCRACKEN MOUNTAIN
15 2 BARNES EST 1 352 AL FAYETTE BLOOMING GROVE
16 2 BARNES EST 1 BP 582 AL FAYETTE BLOOMING GROVE
17 2 BARNES EST 1 POSS 583 AL FAYETTE BLOOMING GROVE
286 3 BEAVER LODGE-DEVONIAN UNIT 499 ND WILLIAMS BEAVER LODGE (DEVONIAN)
</TABLE>
Page 1 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTRY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
287 3 BEAVER LODGE-MADISON UNIT 500 ND WILLIAMS BEAVER LODGE (MADISON)
288 3 BEAVER LODGE-ORDOVICIAN UNIT NE SE 501 ND WILLIAMS BEAVER LODGE (ORDOVICIAN)
18 2 BENTON, ALLEN 577 AL LAMAR BEAVERTON
199 2 BERGERON 5 474 LA POINTE COUPEE MOORE SAMS
19 2 BERRY 8-10 353 AL FAYETTE BLOOMING GROVE
20 2 BERRY 8-10 POSS 584 AL FAYETTE BLOOMING GROVE
200 2 BIZETTE 1 476 LA POINTE COUPEE MOORE SAMS
201 2 BIZETTE 2 475 LA POINTE COUPEE MOORE SAMS
300 3 BLACK 1-3 413 OK LOGAN ICONIUM NW
301 3 BLACK 1-3 PDBP 709 OK LOGAN ICONIUM NW
21 2 BLOWHORN CREEK MILLERELLA UNIT 417 AL LAMAR BLOWHORN CREEK
22 2 BLOWHORN CREEK, NORTH UNIT 452 AL LAMAR BLOWHORN CREEK NORTH
492 3 BLUE FOREST UNIT 60 WY SWEETWATER BLUE FOREST
302 3 BOGGES 2-29 41 OK ROGER MILLS STRONG CITY DISTRICT (RED FORK
23 2 BOMAN 34-8 354 AL LAMAR WATSON CREEK
24 2 BOMAN 34-8 BP 612 AL LAMAR WATSON CREEK
303 3 BOUCHER 1-5 220 OK DEWEY OAKWOOD NORTH
243 3 BOYD 34-10 641 MS WALTHALL DARBUN NORTH (MOORINGSPORT)
244 3 BOYTE 488 MS FRANKLIN ROXIE (WILCOX)
25 2 BOZEMAN 27-15 355 AL FAYETTE MCCRACKEN MOUNTAIN
26 2 BOZEMAN 27-15 BP 608 AL FAYETTE MCCRACKEN MOUNTAIN
27 2 BOZEMAN 27-15 PROB 609 AL FAYETTE MCCRACKEN MOUNTAIN
28 2 BRADFORD E L 19-15 1 418 AL LAMAR MCGEE LAKE
193 2 BRASS 356 KS COMANCHE WILDCAT
351 3 BREEDLOVE 4 46 TX MARTIN BREEDLOVE SOUTH (SPRABERRY)
245 3 BROOKHAVEN FIELD UNIT 642 MS LINCOLN BROOKHAVEN (TUSCALOOSA LWR)
29 2 BROWN 1-9 419 AL LAMAR BLOOMING GROVE
30 2 BROWN N P 1 357 AL LAMAR BLOOMING GROVE
31 2 BROWN N P 1 BP 625 AL LAMAR BLOOMING GROVE
32 2 BROWN NELL 7-3 NE NW 420 AL FAYETTE BLOOMING GROVE
246 3 BRUMFIELD #B-22 PUD 273 MS YAZOO TINSLEY
247 3 BRUMFIELD #B-23 POSS 274 MS YAZOO TINSLEY
248 3 BRUMFIELD B-13 358 MS YAZOO TINSLEY NORTH
</TABLE>
Page 2 of 15
<PAGE>
APPRAISAL
INTEREST OWNED BY LATEX RESOURCES, INC
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
249 3 BRUMFIELD B-2 359 MS YAZOO TINSLEY NORTH
250 3 BRUMFIELD B-20 362 MS YAZOO TINSLEY
251 3 BRUMFIELD B-5 361 MS YAZOO TINSLEY NORTH
252 3 BRUMFIELD B-6 360 MS YAZOO TINSLEY NORTH
253 3 BRYAN CV UNIT 7 489 MS JONES BRYAN
254 3 BRYAN CV UNIT 10 491 MS JONES BRYAN
255 3 BRYAN CV UNIT 5 230 MS JONES BRYAN
256 3 BRYAN CV UNIT 8 490 MS JONES BRYAN
304 3 BURNS ESTATE 39 OK ROGER MILLS REYDON (MORROW UPPER)
33 2 BUSH 14-15C 333 AL PICKENS COAL FIRE CREEK
34 2 BUSH 14-15C BP 610 AL PICKENS COAL FIRE CREEK
35 2 BUSH 14-15C POSS 611 AL PICKENS COAL FIRE CREEK
36 2 BUSH 14-15L 334 AL PICKENS COAL FIRE CREEK
37 2 BUSH DAVID 14-4 IC* 421 AL PICKENS COAL FIRE CREEK
38 2 BUSH DAVID 14-4 1T 706 AL PICKENS COAL FIRE CREEK
202 2 BUTLER 477 LA POINT COUPEE MOORE SAMS
39 2 BUTTS J T 1 363 AL FAYETTE BLOOMING GROVE
185 2 CAMPBELL 21-13 #3 467 CO CHEYENNE HARKER RANCH (MORROW)
40 2 CHADLEY 27-9 364 AL FAYETTE DAVIS CHAPEL NE
352 3 CHANCE - BLAHA UNIT 44 TX BURLESON GIDDINGS (AUSTIN CHALK-3)
353 3 CHANCE ESTATE UNIT 523 TX BURLESON GIDDINGS (AUSTIN CHALK-3)
354 3 CHANDLER 524 TX VAN ZANDT MARTINS MILL (RODESSA 8250)
203 2 CL&F 1 707 LA TERREBONNE TURTLE BAYOU
204 2 CL&F 10 (TB) 636 LA TERREBONNE TURTLE BAYOU
205 2 CL&F 2 708 LA TERREBONNE DEER ISLAND
206 2 CL&F 4 (TB) 55 LA TERREBONNE TURTLE BAYOU
207 2 CL&F 6 (TB) 56 LA TERREBONNE TURTLE BAYOU
208 2 CL&F 8 (TB) 57 LA TERREBONNE TURTLE BAYOU
209 2 CLARK RA SU 15 LA CAMERON CREOLE NORTH
210 2 CLARK RA SU-PDNP 479 LA CAMERON CREOLE NORTH
305 3 CLIFT 1-4 504 OK CUSTER MOOREWOOD NE (RED FORK)
306 3 CLIFT 2-4 505 OK CUSTER MOOREWOOD NE (ATOK-SKNR)
307 3 CLIFT 3-4 506 OK CUSTER MOOREWOOD NE (SKINNER)
</TABLE>
Page 3 of 15
<PAGE>
APPRAISAL
INTEREST OWNED BY LATEX RESOURCES, INC
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
308 3 CLIFT 4-4 507 OK CUSTER MOOREWOOD NE (SKINNER)
309 3 CLIFT 4-5 508 OK CUSTER MOOREWOOD NE (SKINNER)
310 3 CLIFT 4-6 509 OK CUSTER MOOREWOOD NE (ATOK-RDFK)
41 2 COBB 12-9 643 AL PICKENS COAL FIRE CREEK
42 2 COBB VICK 2-10 1 NW SE 422 AL LAMAR BLOOMING GROOVE
355 3 COLDWELL, DALLAS 644 TX GREGG EAST TEXAS
257 3 CORLEY 6-1 323 MS CHICKASAW BALLS BRANCH
356 3 COVINGTON #1 212 TX GRAYSON PERRIN NORTH AFB
357 3 COVINGTON #1 - PDBP 217 TX GRAYSON PERRIN NORTH AFB
178 2 CROCKETT 1 10 AR LAFAYETTE ST MARY WEST (COTTON VALLEY)
43 2 CUNNINGHAM 16-7 331 AL PICKENS COAL FIRE CREEK
44 2 CUNNINGHAM 16-7 BP 613 AL PICKENS COAL FIRE CREEK
45 2 CUNNINGHAM 16-7 BP2 614 AL PICKENS COAL FIRE CREEK
46 2 CUNNINGHAM 16-7 BP3 615 AL PICKENS COAL FIRE CREEK
211 2 CURET 480 LA POINTE COUPEE MOORE-SAMS
258 3 DABBS 24-6 492 MS LEE NETTLETON NORTH (MISSISSIPPIAN)
259 3 DALLAS 5-4 324 MS CHICKASAW BALLS BRANCH
260 3 DALLAS 5-4 BP 620 MS CHICKASAW BALLS BRANCH
358 3 DAVIS, E.T. 1-60 525 TX WHEELER STILES RANCH
359 3 DAVIS, G.C. 1-61 526 TX WHEELER STILES RANCH
212 2 DEVILLE 1 486 LA POINTE COUPEE MOORE-SAMS
186 2 DOYLE 34-1 4 645 CO CHEYENNE HARKER RANCH (MORROW)
187 2 DURR 12-12 #3 646 CO CHEYENNE HARKER RANCH (MORROW)
188 2 DURR 12-12 #1 468 CO CHEYENNE HARKER RANCH (MORROW)
189 2 DURR 12-12 #2 469 CO CHEYENNE ARAPAHOE (MORROW)
311 3 EUNICE 40 OK ROGER MILLS REYDON (MORROW UPPER)
261 3 FARNED, LILLIAN P. 1-U 322 MS CHICKASAW BACON
262 3 FARNED, LILLIAN P. 1-U BP 597 MS CHICKASAW BACON
263 3 FARNED, LILLIAN P. 1-U BP2 598 MS CHICKASAW BACON
291 3 FEDERAL 6 COM 31 NM LEA QUAIL RIDGE (MORROW) PM
360 3 FEENEY HILL GAS UNIT 527 TX RAINS LEATHERMAN CREEK (SMACKOVER)
312 3 FLANAGAN 2-30 203 OK CADDO SICKLES NORTH
313 3 FLANAGAN 2-30 PDBP 270 OK CADDO SICKLES NORTH
</TABLE>
Page 4 of 15
<PAGE>
APPRAISAL
INTEREST OWNED BY LATEX RESOURCES, INC
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
361 3 FLETCHER, MAX J. 1 528 TX WOOD BIRCH (SMACKOVER)
362 3 FLETCHER, MAX J. 2 529 TX WOOD BIRCH (SMACKOVER)
363 3 FLETCHER, MAX J. 1 530 TX WOOD BIRCH (SMACKOVER)
47 2 FOWLER 11-4 NW NW 423 AL FAYETTE DAVIS CHAPEL
48 2 FOWLER 14-1 424 AL FAYETTE DAVIS CHAPEL
49 2 FOWLER 2-12 425 AL FAYETTE DAVIS CHAPEL
50 2 FOWLER 22-14 426 AL FAYETTE MUSGROVE CREEK
51 2 FOWLER 26-13 1 SW SW 427 AL FAYETTE DAVIS CHAPEL NE
52 2 FOWLER 26-4 1 NW NW 428 AL FAYETTE DAVIS CHAPEL NE
53 2 FOWLER 7 1 NE NE 285 AL FAYETTE BLUFF
54 2 FOWLER 9-6 429 AL FAYETTE DAVIS CHAPEL
55 2 FOWLER MORGAN 8 4 430 AL FAYETTE BLUFF
56 2 FOWLER, JULIA SIZEMORE 6-16 #1 442 AL FAYETTE BLUFF
57 2 FULLERTON 25-13 431 AL FAYETTE MUSGROVE CREEK
364 3 FUTRELL 531 TX HARRISON HALLSVILLE NE (PETTIT)
264 3 GADDIS FARMS 13-1 493 MS HINDS BOLTON (COTTON VALLEY)
265 3 GADDIS-MCLAURIN 7 494 MS HINDS BAKERS CREEK (RODESSA)
365 3 GAULT, SARAH 1-5 224 TX MIDLAND PARSLEY
366 3 GAULT, SARAH 1-5 PDBP 315 TX MIDLAND PARSLEY
367 3 GAULT, SARAH 3-5 404 TX MIDLAND PARSLEY (ATOKA)
368 3 GAULT, SARAH 3-5 PDBP 316 TX MIDLAND PARSLEY
213 2 GAY UNION #37 - BP1 268 LA IBERVILLE BAYOU CHOCTAW
214 2 GAY UNION #37 - BP2 317 LA IBERVILLE BAYOU CHOCTAW
215 2 GAY UNION #37 - BP3 318 LA IBERVILLE BAYOU CHOCTAW
216 2 GAY UNION #37 - BP4 319 LA IBERVILLE BAYOU CHOCTAW
217 2 GAY UNION #37 - BP5 320 LA IBERVILLE BAYOU CHOCTAW
218 2 GAY UNION FIELD TOTAL - PDNP 227 LA IBERVILLE BAYOU CHOCTAW
314 3 GERLOFF 510 OK WOODS FREEDOM NORTH (CCKB-MRMC-TNKW)
292 3 GILLIAM 202 NM LEA CAUDILL NE
293 3 GILLIAM #1 - PDNP 248 NM LEA CAUDILL NE
58 2 GILMER 25-15 376 AL LAMAR BLOWHORN CREEK
59 2 GILMER, JUDE 35-7 1 634 AL LAMAR WATSON CREEK EAST
194 2 GLENN 1-33 471 KS STANTON BEAUCHAMP SW (MORROWAN)
</TABLE>
Page 5 0f 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
266 3 GLOSTER JACOB 495 MS MARION COLUMBIA (HOSSTON 1ST)
60 2 GRACE 35-2C 329 AL PICKENS CHICKEN SWAMP BRANCH
61 2 GRACE 35-2L 330 AL PICKENS CHICKEN SWAMP BRANCH
62 2 GRAVLEE 13-12 1 377 AL FAYETTE MCCRACKEN MOUNTAIN
63 2 GRAVLEE 13-12 1 BP 621 AL FAYETTE MCCRACKEN MOUNTAIN
64 2 GRIMSLEY A M 1 378 AL FAYETTE BLOOMING GROVE
65 2 GRIMSLEY A M 2 379 AL FAYETTE BLOOMING GROVE
66 2 GRIMSLEY A M 2 BP 585 AL FAYETTE BLOOMING GROVE
67 2 GRIMSLEY A M 2 POSS 586 AL FAYETTE BLOOMING GROVE
68 2 HAMMOND 13-13 1 432 AL PICKENS COAL FIRE CREEK
69 2 HARKINS-STANLEY UNIT 1 433 AL FAYETTE FAYETTE WEST
315 3 HARP 1-36 42 OK STEPHENS SHO-VEL-TUM (SPRINGER)
369 3 HARRISON -C- 1-C 648 TX GREGG WILLOW SPRINGS (RODESSA)
370 3 HARRISON -C- 1-T 647 TX GREGG WILLOW SPRINGS (HENDERSON)
371 3 HARRISON, P.D. E G.U. 579 TX GREGG WILLOW SPRINGS WEST (TRAVIS PE
267 3 HEARN 29-3 23 MS CLARKE PEACHTREE CREEK (COTTON VALLEY)
285 3 HENSLER 1-21 201 MT SHERIDAN COMERTON SOUTH
70 2 HIGGINS JIMMY 7-15 380 AL FAYETTE BLOOMING GROVE
71 2 HIGGINS JIMMY 7-15 BP 626 AL FAYETTE BLOOMING GROVE
72 2 HIGGINS JIMMY 7-15 POSS 588 AL FAYETTE BLOOMING GROVE
219 2 HILL UN 1 1 239 LA ALLEN OBERLIN
268 3 HINTON 8-16 496 MS LEE PALMETTO SOUTH (MISSISSIPPIAN)
73 2 HODO 31-15 1 SW SE 435 AL LAMAR MOUNT CARMEL
74 2 HOLLY JF 32-8 436 AL LAMAR BEAVERTON
316 3 HOWLING WOMAN #1-23 204 OK BLAINE ELM GROVE
317 3 HOWLING WOMAN #1-23 PDBP 269 OK BLAINE ELM GROVE
372 3 HUDDLESTON, C. L. 578 TX RAINS GINGER SE (SMACKOVER)
373 3 HUDDLESTON, C. L. 580 TX RAINS GINGER SE (SMACKOVER)
220 2 HURST 482 LA POINTE COUPEE MOORE SAMS
374 3 HURT 213 TX FRIO PEARSALL
75 2 IRWIN 7-15 1C 437 AL PICKENS COAL FIRE CREEK
76 2 IRWIN 7-15 2 SW SE 438 AL PICKENS COAL FIRE CREEK
318 3 JACKSON BARNETT SE 381 OK CREEK CUSHING (BARTLESVILLE)
</TABLE>
Page 6 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
294 3 JACKSON UNIT 30 NM LEA JOHNSON RANCH (WOLFCAMP) WC
77 2 JOHNSON 30-11 1 439 AL FAYETTE MCCRACKEN MTN
78 2 JOHNSON 36-6 1 SE NW 440 AL FAYETTE DAVIS CHAPEL NE
375 3 JOHNSON GBSA UNIT 72 TX ECTOR JOHNSON
79 2 JONES JIMMY RAY 7-7 441 AL FAYETTE BLUFF
376 3 JONES, JOHN 214 TX HOWARD KNOTT SW
195 2 KANSAS UNIVERSITY 235 KS STANTON SPARKS NE
80 2 KELLY 15-16C 332 AL PICKENS COAL FIRE CREEK
81 2 KELLY 15-16C (PROB) 622 AL PICKENS COAL FIRE CREEK
82 2 KELLY 15-16T 335 AL PICKENS COAL FIRE CREEK
319 3 KILHOFFER 1-33 513 OK CUSTER MOOREWOOD NE (SKINNER)
320 3 KILHOFFER 2-33 511 OK CUSTER MOOREWOOD NE (SKINNER)
321 3 KILHOFFER 3-33 512 OK CUSTER MOOREWOOD NE (SKINNER)
83 2 KILLINGSWORTH 7-9 NE SE 443 AL FAYETTE MUSGROVE CREEK
84 2 KILLINGSWORTH 8-13 SW SW 444 AL FAYETTE MUSGROVE CREEK
377 3 KILLINGSWORTH B-3 649 TX GREGG WILLOW SPRINGS WEST (TRAVIS PE
378 3 KILLINGSWORTH B-4 650 TX GREGG WILLOW SPRINGS WEST (TRAVIS PE
379 3 KING 242 TX OCHILTREE HANSFORD
322 3 KOPF 1-11 36 OK BLAINE WATONGA-CHICKASHA TREND (MORRO
380 3 LATHROP -B- 532 TX GREGG EAST TEXAS
381 3 LATHROP -C- ORRI 533 TX GREGG EAST TEXAS
382 3 LATHROP, F. K. 1 534 TX GREGG EAST TEXAS
383 3 LATHROP, F.K. GAS UNIT 535 TX GREGG WILLOW SPRINGS (COTTON VALLEY
384 3 LATHROP, F.K. GAS UNIT 4 536 TX GREGG WILLOW SPRINGS (COTTON VALLEY
385 3 LATHROP, F.K. GAS UNIT 5 537 TX GREGG WILLOW SPRINGS (COTTON VALLEY
386 3 LATHROP, F.K. GU #2-ORRI 538 TX GREGG WILLOW SPRINGS (COTTON VALLEY
387 3 LEE -B- GAS UNIT 1-C 539 TX GREGG WILLOW SPRINGS (HENDERSON)
388 3 LEE -G- 540 TX GREGG WILLOW SPRINGS-MACKEY (TRAVIS
389 3 LEE 2-5 651 TX HEMPHILL ALLISON PARKS (MORROWAN UPPER)
390 3 LEE GAS UNIT B-3 652 TX GREGG WILLOW SPRINGS (COTTON VALLEY
391 3 LEE GAS UNIT B-4 653 TX GREGG WILLOW SPRINGS (COTTON VALLEY
392 3 LEE GAS UNIT B-5 654 TX GREGG WILLOW SPRINGS (COTTON VALLEY
393 3 LEE GAS UNIT B-6 655 TX GREGG WILLOW SPRINGS (COTTON VALLEY
</TABLE>
Page 7 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
394 3 LEE, T.W. 656 TX GREGG EAST TEXAS
395 3 LEE, T.W. 657 TX GREGG EAST TEXAS
396 3 LEE, TAYLOR W. 541 TX GREGG EAST TEXAS
397 3 LITTLE WHIT #1 542 TX GLASSCOCK BIG WHIT (WOLFCAMP)
398 3 LITTLE WHIT #4 543 TX GLASSCOCK COBRA (WOLFCAMP)
85 2 LOFTIS ESTATE 23-8C 445 AL FAYETTE MCCRACKEN MTN
86 2 LOFTIS ESTATE 23-8L 446 AL FAYETTE MCCRACKEN MTN
221 2 LONGENBAUGH 217 LA CALCASIEU BON AIR
196 2 LUCAS 472 KS STANTON BEAUCHAMP (MORROWAN)
222 2 MANY, SUE L. 11 LA ASCENSION DARROW
197 2 MARTIN 388 KS STANTON KANSAS HUGOTON
87 2 MARX-THOMAS 6-6 1 447 AL LAMAR MUD CREEK
323 3 MASCHO NENESW 389 OK CREEK CUSHING (BARTLESVILLE)
223 2 MATILDA GRAY STREAM J 13 LA CALCASIEU VINTON
224 2 MATILDA GRAY STREAM M 14 LA CALCASIEU VINTON
88 2 MAYERS F 29-5 448 AL LAMAR MCGEE LAKE
89 2 MCCALEB 26-9 390 AL FAYETTE BETHEL CHURCH
90 2 MCCALEB 26-9 BP 589 AL FAYETTE BETHEL CHURCH
91 2 MCCALEB 26-9 POSS 590 AL FAYETTE BETHEL CHURCH
225 2 MCCRANIE 12 LA BOSSIER IVAN
399 3 MCDANIEL, LOIS 1 544 TX WARD QUITO EAST (CHERRY CANYON)
92 2 MCDONALD 36-13 1C 328 AL LAMAR CORINTH
93 2 MCDONALD 36-13 BP 623 AL LAMAR CORINTH
94 2 MCDONALD 36-13 M 391 AL LAMAR CORINTH
95 2 MCEVERS 19-9 392 AL FAYETTE MCCRACKEN MOUNTAIN
400 3 MEALS, NANCY 1 223 TX YOAKUM BLOCK D
401 3 MIKESKA/KRENEK 43 TX BURLESON GIDDINGS (AUSTIN CHALK-3)
226 2 MILLER 8 478 LA JEFFERSON DAVIS LAKE ARTHUR
324 3 MILLIE 2-20 BP 276 OK TONKAWA PUTNAM
227 2 MIX 483 LA POINTE COUPEE MOORE SAMS
96 2 MORRISON 35-1C 395 AL LAMAR BLOWHORN CREEK
97 2 MORRISON 35-1M 396 AL LAMAR BLOWHORN CREEK
98 2 MORRISON 35-1M BP 616 AL LAMAR BLOWHORN CREEK
</TABLE>
Page 8 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 2 MORRISON 36-4C 397 AL LAMAR BLOWHORN CREEK
100 2 MORRISON 36-4M 398 AL LAMAR BLOWHORN CREEK
101 2 MORRISON 36-4M BP 617 AL LAMAR BLOWHORN CREEK
102 2 MORRISON 36-4M POSS 618 AL LAMAR BLOWHORN CREEK
325 3 MORTON 2-35 37 OK LOGAN COYLE SOUTH (WILCOX)
326 3 MULLINS 1-34 61 OK CUSTER BUTLER-CUSTER WEST
103 2 MURPHY-RANDOLPH 1 325 AL LAMAR BLOOMING GROVE
104 2 MURPHY-RANDOLPH 1 BP 591 AL LAMAR BLOOMING GROVE
105 2 MURPHY-RANDOLPH 1 BP2 592 AL LAMAR BLOOMING GROVE
106 2 MURPHY-RANDOLPH 1 BP3 593 AL LAMAR BLOOMING GROVE
295 3 MUSKEGON 20 ST. COM. 29 NM EDDY EMPIRE SOUTH (MORROW) PM
198 2 NELLIE 1-16 473 KS STANTON BEAUCHAMP (MORROWAN)
327 3 NEUFELD 1-33 205 OK BLAINE FAYE EAST
107 2 NEWMAN CROWLEY 24-5 1C 399 AL PICKENS COAL FIRE CREEK
108 2 NEWMAN CROWLEY 24-5 1T 400 AL PICKENS COAL FIRE CREEK
109 2 NEWMAN CROWLEY 24-5 1T BP 604 AL PICKENS COAL FIRE CREEK
110 2 NEWMAN LUMBER 16-3 1 449 AL LAMAR MILITARY GROVE NORTH
111 2 NOLAN 6-2 1 NW NE 450 AL FAYETTE DAVIS CHAPEL NE
112 2 NOLEN CHARLES W 35-2 451 AL FAYETTE MCCRACKEN MTN WEST
113 2 NORRIS ELVIE 29-81 658 AL FAYETTE FAYETTE WEST
114 2 NORRIS N G 21-13 401 AL FAYETTE FAYETTE WEST
402 3 NORTHEAST EDGEWOOD UNIT 705 TX VAN ZANDT EDGEWOOD NE (SMACKOVER)
403 3 OPELIKA GAS UNIT* 635 TX HENDERSON OPELIKA
404 3 OSR-HALLIDAY UNIT 545 TX MADISON HALLIDAY (WOODBINE)
405 3 PADGITT, JAMES T.3 243 TX CROCKET PADGITT
269 3 PARAMOUNT/COCHRAN 14-5 497 MS JONES BLACKBURN (HOSSTON)
115 2 PECOS FOODS 35-11 1 NE SW 453 AL PICKENS COAL FIRE CREEK
190 2 PEOC-NVG 41-23H 200 CO ROUTT WOLF MOUNTAIN
191 2 PEOC-NVG 41-23H PDBP 247 CO ROUTT WOLF MOUNTAIN
228 2 PERKINS FIELD TOTAL 229 LA CALCASIEU PERKINS
406 3 PHILLIPS EDWARDS 215 TX ECTOR EDWARDS WEST
407 3 PIERCE, V.I. 10-1 556 TX CROCKETT OZONA
408 3 PIERCE, V.I. 10-2 557 TX CROCKETT OZONA
</TABLE>
Page 9 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
409 3 PIERCE, V.I. 10-3 558 TX CROCKETT OZONA
410 3 PIERCE, V.I. 10-4 555 TX CROCKETT OZONA (CANYON)
411 3 PIERCE, V.I. 10-5 559 TX CROCKETT OZONA
412 3 PIERCE, V.I. 10-6 560 TX CROCKETT OZONA
413 3 PIERCE, V.I. 10-7 561 TX CROCKETT OZONA (CANYON)
414 3 PIERCE, V.I. 2-1 565 TX CROCKETT OZONA
415 3 PIERCE, V.I. 2-2 562 TX CROCKETT OZONA (CANYON)
416 3 PIERCE, V.I. 2-4 554 TX CROCKETT OZONA (CANYON)
417 3 PIERCE, V.I. 2-5 564 TX CROCKETT OZONA (CANYON)
418 3 PIERCE, V.I. 2-6 563 TX CROCKETT OZONA (CANYON)
419 3 PIERCE, V.I. 3-2 553 TX CROCKETT OZONA (CANYON)
420 3 PIERCE, V.I. 9-1 566 TX CROCKETT OZONA (CANYON)
421 3 PIERCE, V.I. 9-3 567 TX CROCKETT OZONA (CANYON)
422 3 PIERCE-HENDERSON 7-1 569 LA CROCKETT OZONA
423 3 PIERCE-HENDERSON 7-2 570 TX CROCKETT OZONA
424 3 PIERCE-HENDERSON 7-3 568 TX CROCKETT OZONA (CANYON)
425 3 PIERCE-HENDERSON 7-4 574 TX CROCKETT OZONA (CANYON)
426 3 PIERCE-HENDERSON 7-5 575 TX CROCKETT OZONA (CANYON)
427 3 PIERCE-HENDERSON 7A-1 571 TX CROCKETT OZONA
428 3 PIERCE-HENDERSON 8-1 572 TX CROCKETT OZONA (CANYON)
429 3 PIERCE-HENDERSON 8-2 576 TX CROCKETT OZONA (CANYON)
430 3 PIERCE-HENDERSON 8-3 573 TX CROCKETT OZONA (CANYON)
229 2 PLACID 1 481 LA BOSSIER CARTERVILLE NORTH
230 2 PLACID 1 - BP 267 LA BOSSIER CARTERVILLE N
431 3 PORTER 546 TX WHEELER TWITTY (GRANITE WASH)
116 2 RANDOLPH 25-13 1C 454 AL FAYETTE BETHEL CHURCH
328 3 RAY 5-1 514 OK CUSTER MOOREWOOD NE (RED FORK)
329 3 RAY 5-2 515 OK CUSTER MOOREWOOD NE (SKINNER)
330 3 RAY 5-3 516 OK CUSTER MOOREWOOD NE (SKINNER)
331 3 RAY 5-4 517 OK CUSTER MOOREWOOD NE (SKINNER)
332 3 RAY 5-5 518 OK CUSTER MOOREWOOD NE (SKINNER)
333 3 RICHARDS, E. 221 OK CREEK CUSHING (BARTLESVILLE)
334 3 RIPPLE 1-12 206 OK PITTSBURG REAMS NW
</TABLE>
Page 10 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
270 3 ROBERTS, ERNEST 219 MS HINDS BOLTON
117 2 ROBERTSON 20-1 1 455 AL LAMAR FERNBANK
432 3 ROBERTSON-BLUESTEM 547 TX GRAYSON SEPTEMBER (9300)
118 2 ROGERS, E. 25-1 1 456 AL LAMAR MCGEE LAKE
271 3 ROSENBLATT 669 MS WILKINSON BELMONT LAKE (WALKER)
179 2 ROSEWOOD RESOURCES 10-1 9 AR COLUMBIA SPRINGHILL (HAYNESVILLE)
180 2 ROSEWOOD RESOURCES 10-2 233 AR COLUMBIA SPRINGHILL
181 2 ROSEWOOD RESOURCES 10-3 321 AR COLUMBIA SPRINGHILL
182 2 ROSEWOOD RESOURCES 9-1 8 AR COLUMBIA SPRINGHILL (HAYNESVILLE)
272 3 RUDDER 29-4 54 MS CLARKE PEACHTREE CREEK (COTTON VALLEY
119 2 S. CARLTON FIELD TOTAL 234 AL CLARKE & BALDWIN SOUTH CARLTON
120 2 S. CARLTON (BARBOUR 16-7) 631 AL CLARKE & BALDWIN SOUTH CARLTON
121 2 S. CARLTON (DAVIES 5) 627 AL CLARKE & BALDWIN SOUTH CARLTON
122 2 S. CARLTON (OSWELL 11-12) 632 AL CLARKE & BALDWIN SOUTH CARLTON
123 2 S. CARLTON (SCOTT 11-11) 630 AL CLARKE & BALDWIN SOUTH CARLTON
124 2 S. CARLTON (SCOTT 11-6) 633 AL CLARKE & BALDWIN SOUTH CARLTON
125 2 S. CARLTON (SCOTT 15-14) 628 AL CLARKE & BALDWIN SOUTH CARLTON
126 2 S. CARLTON (SCOTT 9-9) 629 AL CLARKE & BALDWIN SOUTH CARLTON
127 2 S. CARLTON - LOC 01 288 AL CLARKE & BALDWIN
128 2 S. CARLTON - LOC 02 289 AL CLARKE & BALDWIN
129 2 S. CARLTON - LOC 03 290 AL CLARKE & BALDWIN
130 2 S. CARLTON - LOC 04 291 AL CLARKE & BALDWIN
131 2 S. CARLTON - LOC 05 292 AL CLARKE & BALDWIN
132 2 S. CARLTON - LOC 06 293 AL CLARKE & BALDWIN
133 2 S. CARLTON - LOC 07 294 AL CLARKE & BALDWIN
134 2 S. CARLTON - LOC 08 295 AL CLARKE & BALDWIN
135 2 S. CARLTON - LOC 09 296 AL CLARKE & BALDWIN
136 2 S. CARLTON - LOC 10 297 AL CLARKE & BALDWIN
137 2 S. CARLTON - LOC 11 298 AL CLARKE & BALDWIN
138 2 S. CARLTON - LOC 12 299 AL CLARKE & BALDWIN
139 2 S. CARLTON - LOC 13 300 AL CLARKE & BALDWIN
140 2 S. CARLTON - LOC 14 301 AL CLARKE & BALDWIN
141 2 S. CARLTON - LOC 15 302 AL CLARKE & BALDWIN
</TABLE>
Page 11 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
142 2 S. CARLTON - LOC 16 303 AL CLARKE & BALDWIN
143 2 S. CARLTON - LOC 17 280 AL CLARKE & BALDWIN
144 2 S. CARLTON - LOC 18 304 AL CLARKE & BALDWIN
145 2 S. CARLTON - LOC 19 305 AL CLARKE & BALDWIN
146 2 S. CARLTON - LOC 20 306 AL CLARKE & BALDWIN
147 2 S. CARLTON - LOC 21 307 AL CLARKE & BALDWIN
148 2 S. CARLTON - LOC 22 308 AL CLARKE & BALDWIN
149 2 S. CARLTON - LOC 24 310 AL CLARKE & BALDWIN
150 2 S. CARLTON - LOC 25 311 AL CLARKE & BALDWIN
151 2 S. CARLTON - LOC 26 312 AL CLARKE & BALDWIN
152 2 S. CARLTON - LOC 27 309 AL CLARKE & BALDWIN
153 2 S. CARLTON - LOC 28 314 AL CLARKE & BALDWIN
154 2 S. CARLTON - LOC 29 313 AL CLARKE & BALDWIN
433 3 SACROC UNIT 670 TX SCURRY KELLY-SNYDER
231 2 SALE, T.S JR. 1 484 LA CLAIBORNE OAKS
335 3 SARKEY FDN UN 3 519 OK PITTSBURG KINTA
336 3 SARKEYS UNIT 38 OK PITTSBURG BROOKEN (HARTSHORNE)
273 3 SCRUGGS 15-10 339 MS LEE SHANNON EAST
274 3 SCRUGGS 15-10 BP 599 MS LEE SHANNON EAST
275 3 SCRUGGS 15-10 BP2 600 MS LEE SHANNON EAST
296 3 SHIPP 34-A 32 NM LEA CASEY (STRAWN) PS
232 2 SHRINERS HOSPITAL A-1 17 LA CLAIBORNE LISBON
337 3 SIMMONS 2-31 671 OK BECKHAM CARPENTER (MORROW UPPER)
233 2 SIMONTON, J.S. 1 18 LA DE SOTO BETHANY LONGSTREET
493 3 SIMPSON NW NW 552 WY CAMPBELL SIMPSON RANCH (MINNELUSA)
155 2 SISSON OLIVER 29-13 457 AL LAMAR MCGEE LAKE
276 3 SMACKOVER "A" POOL TOTAL 241 MS WAYNE CYPRESS CREEK SOUTH (SMACKOVER
277 3 SMACKOVER UNIT 286 MS JASPER LAKE COMO (SMACKOVER)
156 2 SMITH 28-9* 458 AL LAMAR ARMSTRONG BRANCH
157 2 SMITH 5-8 1C 336 AL PICKENS LINEBARGER CREEK
158 2 SMITH 5-8 IL 340 AL PICKENS LINEBARGER CREEK
159 2 SMITH 5-8 BP 624 AL PICKENS LINEBARGER CREEK
160 2 SMITH L R 1 405 AL FAYETTE BLOOMING GROVE
</TABLE>
Page 12 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
161 2 SMITH LR 1 BP 594 AL FAYETTE BLOOMING GROVE
338 3 SMITH NO 1-34 208 OK LOGAN ICONIUM NW
339 3 SMITH NO 1-34 PDBP 272 OK LOGAN ICONIUM NW
434 3 SMITH, A. 548 TX GREGG EAST TEXAS
183 2 SMITH, LAMAR A.3 238 AR COLUMBIA SPRINGHILL
435 3 SNYDER-STATE OF TEXAS GAS UNIT 49 TX REEVES WORSHAM-BAYER (DEVONIAN)
289 3 SORENSON 11-13 NNW NW 502 ND MCKENZIE UNION CENTER (MADISON)
436 3 SORRELL 549 TX GREGG EAST TEXAS
278 3 SOSO FIELD UNIT 28-5 672 MS JONES SOSO (RODESSA 11151)
162 2 SPARKS 14-3 1T 459 AL FAYETTE MCCRACKEN MTN
234 2 SPENCER WALKER 1 19 LA LINCOLN HICO-KNOWLES
235 2 STANSBURY 2 218 LA UNION D'ARBONE
297 3 STATE 17 33 NM LEA AUSTIN (MISSISSIPPIAN) MI
298 3 STATE 32 503 NM LEA BAUM (UPPER PENN) UP
438 3 STATE 904 I-1 GAS UNIT 47 TX NUECES G O M ST-904 (FRIO 1-A)
437 3 STATE 904 L-3 GAS UNIT 48 TX NUECES G O M ST-904 (FRIO 8200)
299 3 STATE QE 13 34 NM LEA RANGER LAKE (PENN) PN
439 3 STATE TRACT 562-L 550 TX CALHOUN MATAGORDA BLOCK 562-L (6470)
192 2 STEELE 44C-3 470 CO CHEYENNE HARKER RANCH (MORROW)
163 2 STEINER-SCHWAB 17-13 460 AL FAYETTE BOXES CREEK
164 2 STEINER-SCHWAB 17-5 408 AL FAYETTE BOXES CREEK
165 2 STEINER-SCHWAB 26-5 409 AL FAYETTE MUSGROVE CREEK
166 2 STEINER-SCHWAB 26-5 BP 603 AL FAYETTE MUSGROVE CREEK
167 2 STRAWBRIDGE DW 33-14 1 461 AL LAMAR BEAVERTON
168 2 STRAWBRIDGE R H 9-2 2 462 AL LAMAR LITTLE HILL CREEK
279 3 STRITE 673 MS WALTHALL DARBUN NORTH (TUSCALOOSA LWR)
169 2 SUGGS 16-10 1 463 AL LAMAR FERNBANK
280 3 TALLY 31-16 1C 326 MS LEE BALLS BRANCH
281 3 TALLY 31-16 1C BP 601 MS LEE BALLS BRANCH
282 3 TALLY 31-16 1T 327 MS LEE BALLS BRANCH
340 3 TAYLOR, JOY 1 520 OK ROGER MILLS CARPENTER (MORROW UPPER)
440 3 TCGU7 (LEOPARD, C.W. 1) 674 TX HENDERSON TRI-CITIES (TRAVIS PEAK LOWER)
290 3 TIOGA-MADISON UNIT 27 ND WILLIAMS TIOGA (MADISON)
</TABLE>
Page 13 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
236 2 TRAVIS PEAK SUC 63 LA CLAIBORNE SUGAR CREEK
341 3 TROUTT-MARSH 209 OK LOGAN ICONIUM NW
283 3 TUCKER 9-13 498 MS LEE PALMETTO SOUTH (MISSISSIPPIAN
342 3 TWIN WOMAN NW/4 35 OK BLAINE FAY EAST (CNGM-PRMR)
441 3 UNIVERSITY -1829- 51 TX WARD WAR-WINK SOUTH (WOLFCAMP)
442 3 UNIVERSITY 10-18 #A-6-PUD 250 TX WARD WAR-WINK SOUTH
443 3 UNIVERSITY 10-18 #A-7-PUD 251 TX WARD WAR-WINK SOUTH
444 3 UNIVERSITY 10-18 #B-8-PUD 252 TX WARD WAR-WINK SOUTH
445 3 UNIVERSITY 10-18 #B-9 PROBABLE 253 TX WARD WAR-WINK SOUTH
446 3 UNIVERSITY 10-18 1-U 52 TX WARD WAR-WINK SOUTH (FUSSELMAN)
447 3 UNIVERSITY 10-18 A-1 & A-2 676 TX WARD WAR-WINK SOUTH (WOLFCAMP)
448 3 UNIVERSITY 10-18 A-3,A-4 & A-5 677 TX WARD BLOCK 18 (CHERRY CANYON)
449 3 UNIVERSITY 10-18 B-2 & B-4 678 TX WARD WAR-WINK S-WOLFCAMP
450 3 UNIVERSITY 10-18 B-6 679 TX WARD BLOCK 18 (CHERRY CANYON)
451 3 UNIVERSITY 1018'B' 680 TX WARD BLOCK 18 (CHERRY CANYON)
452 3 UNIVERSITY 11-18 #A-4 PROBABLE 263 TX WARD WAR-WINK SOUTH
453 3 UNIVERSITY 11-18 #B-3 PROBABLE 260 TX WARD WAR-WINK SOUTH
454 3 UNIVERSITY 11-18 #B-4 PROBABLE 261 TX WARD WAR-WINK SOUTH
455 3 UNIVERSITY 11-18 #B-5 PROBABLE 262 TX WARD WAR-WINK SOUTH
456 3 UNIVERSITY 11-18 A-1 & A-2 681 TX WARD WAR-WINK SOUTH (WOLFCAMP)
457 3 UNIVERSITY 11-18 A-3 699 TX WARD BLOCK 18 (CHERRY CANYON)
458 3 UNIVERSITY 11-18 B-1 & B-2 682 TX WARD WAR-WINK SOUTH (WOLFCAMP)
459 3 UNIVERSITY 18-29 #2 PUD 264 TX WARD WAR-WINK SOUTH
460 3 UNIVERSITY 18-29 #5 PUD 265 TX WARD WAR-WINK SOUTH
461 3 UNIVERSITY 18-29 #7 PUD 266 TX WARD WAR-WINK SOUTH
462 3 UNIVERSITY 18-29 4 700 TX WARD QUITO EAST (CHERRY CANYON)
463 3 UNIVERSITY 18-29 GAS UNIT 1 683 TX WARD QUITO EAST (ATOKA)
464 3 UNIVERSITY 18-30 #2 53 TX WARD QUITO EAST (CHERRY CANYON)
465 3 UNIVERSITY 18-31 1 701 TX WARD QUITO EAST (CHERRY CANYON)
466 3 UNIVERSITY 18-31 3 684 TX WARD EAST QUITO (CHERRY CANYON)
467 3 UNIVERSITY 18-31 4 685 TX WARD QUITO EAST (CHERRY CANYON)
468 3 UNIVERSITY 18-31 6 686 TX WARD QUITO EAST (CHERRY CANYON)
469 3 UNIVERSITY 18-5 #3 687 TX WARD BLOCK 17 (CHERRY CANYON)
</TABLE>
Page 14 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
470 3 UNIVERSITY 18-6-2-U 688 TX WARD WAR-WINK SOUTH (FUSSELMAN)
471 3 UNIVERSITY 18-6 3 702 TX WARD WAR-WINK SOUTH (WOLFCAMP)
472 3 UNIVERSITY 1829-6, 8 & 10 689 TX WARD QUITO EAST (CHERRY CANYON)
473 3 UNIVERSITY 22-18 #A-3 PROBABLE 259 TX WARD WAR-WINK SOUTH
474 2 UNIVERSITY 22-18 A-1 & A-2 690 TX WARD WAR-WINK SOUTH (WOLFCAMP)
475 3 UNIVERSITY 22-18 B-1 691 TX WARD WAR-WINK SOUTH (WOLFCAMP)
476 3 UNIVERSITY 23-18 #A-3 PROBABLE 257 TX WARD WAR-WINK SOUTH
477 3 UNIVERSITY 23-18 #A-4 PROBABLE 258 TX WARD WAR-WINK SOUTH
478 3 UNIVERSITY 23-18 A-1 & A-2 692 TX WARD WAR-WINK SOUTH (WOLFCAMP)
479 3 UNIVERSITY 24-18 #2 PROBABLE 256 TX WARD WAR-WINK SOUTH
480 3 UNIVERSITY 24-18 A-1 693 TX WARD WAR-WINK SOUTH (WOLFCAMP)
481 3 UNIVERSITY 9-18 #A-3 PROBABLE 254 TX WARD WAR-WINK SOUTH
482 3 UNIVERSITY 9-18 #A-4 PROBABLE 255 TX WARD WAR-WINK SOUTH
483 3 UNIVERSITY 9-18 B- 694 TX WARD WAR-WINK SOUTH (WOLFCAMP)
484 3 UNIVERSITY 9-18 A-1 703 TX WARD BLOCK 18 (CHERRY CANYON)
284 3 WALKER, GW 6-7 244 MS JONES CAMP CREEK
485 3 WALKER, P., ET AL 2-L 704 TX WARD QUITO EAST (ELLENBURGER)
486 3 WALKER, P., ET AL 4 697 TX WARD EAST QUITO (CHERRY CANYON)
487 3 WALKER, P., ET AL 5 & 6 698 TX WARD QUITO EAST (CHERRY CANYON)
170 2 WATKINS AIRHART 6-16 464 AL FAYETTE FAYETTE SW
171 2 WAYSIDE OIL UNIT SE NW 465 AL FAYETTE WAYSIDE
343 3 WELLS 1-28 NW 675 OK GARVIN GOLDEN TREND (HNTN-SCMR-WDFD)
488 3 WELLS GAS UNIT 2-T 710 TX PANOLA WASKOM
489 3 WELLS, M. W. 1-T 287 TX HARRISON WASKOM (TRAVIS PEAK 1)
172 2 WEYERHAEUSER 17-2 NW NE 466 AL FAYETTE BLUFF
173 2 WHITAKER 25-15 1 410 AL FAYETTE BETHEL CHURCH
174 2 WHITAKER 25-15 1 BP 595 AL FAYETTE BETHEL CHURCH
175 2 WHITE 8-4 411 AL FAYETTE BLOOMIMG GROVE
176 2 WHITE 8-4 PROB 619 AL FAYETTE BLOOMIMG GROVE
177 2 WHITLEY S L 1 412 AL FAYETTE BLOOMIMG GROVE
490 3 WYNN 1 225 TX LIPSCOMB STUART RANCH
</TABLE>
Page 15 of 15
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
AMC 14-15 1L P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 42.821
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 35.947
LEWIS GROSS CUM. MB & MMF 0.044 1151.184 20.00 31.016
14 16S 13W GROSS RES. MB & MMF 0.000 200.551 25.00 27.338
SEQ: 344 GROSS ULT. MB & MMF 0.044 1351.735 30.00 24.503
INIT W.I 35.813 LIFE/YR 19.083 RATE-OF-RETURN, % 100.00
INIT N.I 30.461 OPC/W 912 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.366 0.000 2.244 0.000 2.770 6.215 1.633 0.000 0.958 3.625
1997 0.000 16.923 0.000 5.155 0.000 2.770 14.279 3.919 0.000 2.199 8.161
1998 0.000 15.907 0.000 4.846 0.000 2.770 13.422 3.919 0.000 2.067 7.436
1999 0.000 14.953 0.000 4.555 0.000 2.770 12.617 3.919 0.000 1.943 6.754
2000 0.000 14.056 0.000 4.282 0.000 2.770 11.860 3.919 0.000 1.826 6.114
2001 0.000 13.212 0.000 4.025 0.000 2.770 11.148 3.919 0.000 1.717 5.512
2002 0.000 12.420 0.000 3.783 0.000 2.770 10.479 3.919 0.000 1.614 4.946
2003 0.000 11.674 0.000 3.556 0.000 2.770 9.851 3.919 0.000 1.517 4.414
2004 0.000 10.974 0.000 3.343 0.000 2.770 9.260 3.919 0.000 1.426 3.914
2005 0.000 10.316 0.000 3.142 0.000 2.770 8.704 3.919 0.000 1.340 3.444
SUB 0.000 127.801 0.000 38.929 0.000 2.770 107.835 36.904 0.000 16.607 54.320
REM 0.000 72.751 0.000 22.161 0.000 2.770 61.386 37.884 0.000 9.454 14.045
TOT 0.000 200.552 0.000 61.090 0.000 2.770 169.221 74.788 0.000 26.061 68.365
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.625 3.554
1997 11.786 7.486
1998 19.222 6.201
1999 25.976 5.121
2000 32.090 4.214
2001 37.602 3.454
2002 42.548 2.818
2003 46.962 2.286
2004 50.876 1.843
2005 54.320 1.474
SUB 54.320 38.451
REM 68.365 4.369
TOT 68.365 42.820
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
AMC 14-15 1M P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 37.693
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 31.821
LEWIS GROSS CUM. MB & MMF 7.494 2135.807 20.00 27.564
14 16S 13W GROSS RES. MB & MMF 0.000 181.431 25.00 24.363
SEQ: 345 GROSS ULT. MB & MMF 7.494 2317.238 30.00 21.882
INIT W.I 35.813 LIFE/YR 19.083 RATE-OF-RETURN, % 100.00
INIT N.I 30.461 OPC/W 912 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 6.875 0.000 2.094 0.000 2.770 5.801 1.633 0.000 0.893 3.274
1997 0.000 15.795 0.000 4.811 0.000 2.770 13.327 3.919 0.000 2.053 7.355
1998 0.000 14.847 0.000 4.522 0.000 2.770 12.527 3.919 0.000 1.929 6.679
1999 0.000 13.956 0.000 4.251 0.000 2.770 11.776 3.919 0.000 1.814 6.043
2000 0.000 13.119 0.000 3.996 0.000 2.770 11.069 3.919 0.000 1.705 5.445
2001 0.000 12.332 0.000 3.756 0.000 2.770 10.405 3.919 0.000 1.602 4.883
2002 0.000 11.592 0.000 3.531 0.000 2.770 9.781 3.919 0.000 1.506 4.355
2003 0.000 10.896 0.000 3.319 0.000 2.770 9.194 3.919 0.000 1.415 3.859
2004 0.000 10.242 0.000 3.120 0.000 2.770 8.642 3.919 0.000 1.331 3.392
2005 0.000 9.628 0.000 2.933 0.000 2.770 8.124 3.919 0.000 1.251 2.953
SUB 0.000 119.282 0.000 36.334 0.000 2.770 100.646 36.904 0.000 15.499 48.238
REM 0.000 62.150 0.000 18.932 0.000 2.770 52.440 33.638 0.000 8.075 10.722
TOT 0.000 181.432 0.000 55.266 0.000 2.770 153.086 70.542 0.000 23.574 58.960
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.274 3.211
1997 10.629 6.747
1998 17.308 5.570
1999 23.351 4.582
2000 28.796 3.753
2001 33.679 3.060
2002 38.034 2.481
2003 41.893 1.999
2004 45.285 1.597
2005 48.238 1.264
SUB 48.238 34.264
REM 58.960 3.428
TOT 58.960 37.692
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
AMC 14-15 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 44.099
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 16.711
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 6.659
14 16S 13W GROSS RES. MB & MMF 0.000 674.515 25.00 2.775
SEQ: 605 GROSS ULT. MB & MMF 0.000 674.515 30.00 1.204
INIT W.I 35.813 LIFE/YR 31.750 RATE-OF-RETURN, % 100.00
INIT N.I 30.461 OPC/W 1823 UNDISC NET/INVEST 25.41
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 674.516 0.000 205.464 0.000 2.770 569.136
TOT 0.000 674.516 0.000 205.464 0.000 2.770 569.136
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C>
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
99.230 15.041 87.647 367.210 367.210 44.101
99.230 15.041 87.647 367.210 367.210 44.101
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
AMC 14-15 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 199.215
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 169.846
LEWIS GROSS CUM. MB & MMF 0.000 0.000 20.00 147.056
14 16S 13W GROSS RES. MB & MMF 0.000 450.000 25.00 128.983
SEQ: 607 GROSS ULT. MB & MMF 0.000 450.000 30.00 114.375
COMMINGLE. INIT W.I 35.813 LIFE/YR 10.833 RATE-OF-RETURN, % 100.00
INIT N.I 30.461 OPC/W 0 UNDISC NET/INVEST 10.55
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 89.921 0.000 27.391 0.000 2.770 75.873
1998 0.000 79.982 0.000 24.363 0.000 2.770 67.487
1999 0.000 64.617 0.000 19.683 0.000 2.770 54.522
2000 0.000 52.203 0.000 15.902 0.000 2.770 44.047
2001 0.000 42.174 0.000 12.847 0.000 2.770 35.585
2002 0.000 34.072 0.000 10.379 0.000 2.770 28.749
2003 0.000 27.526 0.000 8.385 0.000 2.770 23.226
2004 0.000 22.238 0.000 6.774 0.000 2.770 18.764
2005 0.000 17.966 0.000 5.473 0.000 2.770 15.159
SUB 0.000 430.699 0.000 131.195 0.000 2.770 363.412
REM 0.000 19.301 0.000 5.879 0.000 2.770 16.286
TOT 0.000 450.000 0.000 137.075 0.000 2.770 379.698
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 30.441 11.684 33.747 33.747 29.662
1998 0.000 0.000 10.393 57.094 90.841 47.659
1999 0.000 0.000 8.396 46.125 136.966 35.003
2000 0.000 0.000 6.784 37.264 174.230 25.708
2001 0.000 0.000 5.481 30.105 204.335 18.881
2002 0.000 0.000 4.427 24.321 228.656 13.867
2003 0.000 0.000 3.577 19.649 248.305 10.184
2004 0.000 0.000 2.889 15.874 264.179 7.480
2005 0.000 0.000 2.335 12.825 277.004 5.494
SUB 0.000 30.441 55.966 277.004 277.004 193.938
REM 0.000 0.000 2.508 13.778 290.782 5.278
TOT 0.000 30.441 58.474 290.782 290.782 199.216
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubit
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
<S> <C>
A-PROVED DEVE PRODUCING
AMERICAN CAN 11-5 1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
WOOLBANK CREEK ---------- ---------- 10.00 57.344
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 52.088
POTTSVILLE C GROSS CUM. MB & MMF 0.000 598.439 20.00 47.764
11 20S 16W GROSS RES. MB & MMF 0.000 118.014 25.00 44.156
SEQ: 346 GROSS ULT. MB & MMF 0.000 716.453 30.00 41.108
INIT W.I 100.000 LIFE/YR 8.250 RATE-OF-RETURN, % 100.00
INIT N.I 71.627 OPC/W 1216 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 8.728 0.000 6.252 0.000 2.690 16.817 6.080 0.000
1997 0.000 19.449 0.000 13.931 0.000 2.690 37.474 14.592 0.000
1998 0.000 17.504 0.000 12.538 0.000 2.690 33.726 14.592 0.000
1999 0.000 15.754 0.000 11.284 0.000 2.690 30.354 14.592 0.000
2000 0.000 14.178 0.000 10.155 0.000 2.690 27.318 14.592 0.000
2001 0.000 12.760 0.000 9.140 0.000 2.690 24.586 14.592 0.000
2002 0.000 11.484 0.000 8.226 0.000 2.690 22.128 14.592 0.000
2003 0.000 10.336 0.000 7.403 0.000 2.690 19.915 14.592 0.000
2004 0.000 7.819 0.000 5.601 0.000 2.690 15.066 12.160 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 118.012 0.000 84.529 0.000 2.690 227.384 120.384 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 118.012 0.000 84.529 0.000 2.690 227.384 120.384 0.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 2.590 8.148 8.148 7.990
1997 5.771 17.111 25.259 15.709
1998 5.194 13.940 39.199 11.637
1999 4.674 11.087 50.286 8.416
2000 4.207 8.519 58.805 5.881
2001 3.787 6.208 65.013 3.898
2002 3.408 4.128 69.141 2.359
2003 3.066 2.256 71.397 1.175
2004 2.321 0.586 71.983 0.281
2005 0.000 0.000 71.983 0.000
SUB 35.018 71.983 71.983 57.346
REM 0.000 0.000 71.983 0.000
TOT 35.018 71.983 71.983 57.346
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORTS.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
AMERICAN CAN 11-5 1C BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
WOOLBANK CREEK ---------- ---------- 10.00 173.361
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 132.646
POTTSVILLE A GROSS CUM. MB & MMF 0.000 0.000 20.00 103.349
11 20S 16W GROSS RES. MB & MMF 0.000 200.000 25.00 81.818
SEQ: 602 GROSS ULT. MB & MMF 0.000 200.000 30.00 65.694
COMMINGLE. INIT W.I 100.000 LIFE/YR 11.167 RATE-OF-RETURN, % 100.00
INIT N.I 71.627 OPC/W 0 UNDISC NET/INVEST 32.60
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 43.928 0.000 31.464 0.000 2.690 84.639 0.000 10.000
2001 0.000 36.692 0.000 26.281 0.000 2.690 70.696 0.000 0.000
2002 0.000 30.647 0.000 21.952 0.000 2.690 59.050 0.000 0.000
2003 0.000 25.599 0.000 18.336 0.000 2.690 49.323 0.000 0.000
2004 0.000 21.382 0.000 15.315 0.000 2.690 41.198 0.000 0.000
2005 0.000 17.860 0.000 12.792 0.000 2.690 34.412 0.000 0.000
SUB 0.000 176.108 0.000 126.140 0.000 2.690 339.318 0.000 10.000
REM 0.000 23.892 0.000 17.113 0.000 2.690 46.034 0.000 0.000
TOT 0.000 200.000 0.000 143.254 0.000 2.690 385.352 0.000 10.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000
2000 13.034 61.604 61.604 42.165
2001 10.888 59.809 121.413 37.500
2002 9.094 49.957 171.370 28.475
2003 7.595 41.727 213.097 21.622
2004 6.345 34.854 247.951 16.419
2005 5.299 29.112 277.063 12.467
SUB 52.255 277.063 277.063 158.648
REM 7.089 38.946 316.009 14.713
TOT 59.344 316.009 316.009 173.361
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORTS.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
AMERICAN CAN 11-5 1D, E OIL GAS P.W. % P.W., M$
GERMANY OPERATING COMPAN ---------- ---------- ------ --------
WOOLBANK CREEK 10.00 28.018
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 26.032
POTTSVILLE D GROSS CUM. MB & MMF 0.000 392.832 20.00 24.336
11 20S 16W GROSS RES. MB & MMF 0.000 73.319 25.00 22.872
SEQ: 347 GROSS ULT. MB & MMF 0.000 466.151 30.00 21.597
INIT W.I 100.000 LIFE/YR 5.917 RATE-OF-RETURN, % 100.00
INIT N.I 71.627 OPC/W 1216 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 6.789 0.000 4.863 0.000 2.690 13.080 6.080 0.000 2.014 4.986
1997 0.000 15.127 0.000 10.835 0.000 2.690 29.146 14.592 0.000 4.489 10.066
1998 0.000 13.614 0.000 9.751 0.000 2.690 26.232 14.592 0.000 4.040 7.600
1999 0.000 12.253 0.000 8.776 0.000 2.690 23.608 14.592 0.000 3.636 5.381
2000 0.000 11.028 0.000 7.899 0.000 2.690 21.248 14.592 0.000 3.272 3.383
2001 0.000 9.925 0.000 7.109 0.000 2.690 19.123 14.592 0.000 2.945 1.586
2002 0.000 4.584 0.000 3.283 0.000 2.690 8.832 7.296 0.000 1.360 0.176
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 73.320 0.000 52.516 0.000 2.690 141.269 86.336 0.000 21.756 33.178
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 73.320 0.000 52.516 0.000 2.690 141.269 86.336 0.000 21.756 33.178
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.986 4.890
1997 15.052 9.246
1998 22.652 6.349
1999 28.033 4.089
2000 31.416 2.340
2001 33.002 1.001
2002 33.178 0.103
2003 33.178 0.000
2004 33.178 0.000
2005 33.178 0.000
SUB 33.178 28.018
REM 33.178 0.000
TOT 33.178 28.018
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ANDERS, GRACE 13-15 1C P.W. % P.W., M$
BROWNING & WELCH INC OIL GAS ------ --------
MCCRACKEN MTN ---------- ---------- 10.00 1.490
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 1.313
CARTER GROSS CUM. MB & MMF 0.028 144.338 20.00 1.174
13 16S 13W GROSS RES. MB & MMF 0.000 71.802 25.00 1.063
SEQ: 414 GROSS ULT. MB & MMF 0.028 216.140 30.00 0.972
INIT W.I 5.345 LIFE/YR 11.250 RATE-OF-RETURN, % 100.00
INIT N.I 4.283 OPC/W 800 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.463 0.000 0.148 0.000 3.000 0.445 0.214 0.000 0.068 0.163
1997 0.000 8.015 0.000 0.343 0.000 3.000 1.030 0.513 0.000 0.159 0.358
1998 0.000 7.614 0.000 0.326 0.000 3.000 0.978 0.513 0.000 0.151 0.315
1999 0.000 7.234 0.000 0.310 0.000 3.000 0.929 0.513 0.000 0.143 0.273
2000 0.000 6.872 0.000 0.294 0.000 3.000 0.883 0.513 0.000 0.136 0.234
2001 0.000 6.528 0.000 0.280 0.000 3.000 0.839 0.513 0.000 0.129 0.197
2002 0.000 6.202 0.000 0.266 0.000 3.000 0.797 0.513 0.000 0.123 0.161
2003 0.000 5.892 0.000 0.252 0.000 3.000 0.757 0.513 0.000 0.117 0.127
2004 0.000 5.597 0.000 0.240 0.000 3.000 0.719 0.513 0.000 0.111 0.095
2005 0.000 5.317 0.000 0.228 0.000 3.000 0.683 0.513 0.000 0.105 0.065
SUB 0.000 62.734 0.000 2.687 0.000 3.000 8.060 4.831 0.000 1.242 1.988
REM 0.000 9.067 0.000 0.388 0.000 3.000 1.165 0.941 0.000 0.180 0.045
TOT 0.000 71.801 0.000 3.075 0.000 3.000 9.225 5.772 0.000 1.422 2.033
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.163 0.159
1997 0.521 0.329
1998 0.836 0.262
1999 1.109 0.207
2000 1.343 0.161
2001 1.540 0.123
2002 1.701 0.092
2003 1.828 0.066
2004 1.923 0.045
2005 1.988 0.028
SUB 1.988 1.472
REM 2.033 0.017
TOT 2.033 1.489
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting acting actual and estimated production, as applicable, calculated as
of October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the year 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ANDERS, GRACE 13-15 1T P.W. % P.W., M$
BROWNING & WELCH INC OIL GAS ------ --------
MCCRACKEN MTN ---------- ---------- 10.00 8.073
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 7.091
LEWIS GROSS CUM. MB & MMF 0.255 754.685 20.00 6.325
13 16S 13W GROSS RES. MB & MMF 0.000 162.442 25.00 5.715
SEQ: 415 GROSS ULT. MB & MMF 0.255 917.127 30.00 5.220
INIT W.I 12.817 LIFE/YR 11.583 RATE-OF-RETURN, % 100.00
INIT N.I 10.023 OPC/W 1696 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.668 0.000 0.769 0.000 3.000 2.306
1997 0.000 17.748 0.000 1.779 0.000 3.000 5.337
1998 0.000 16.860 0.000 1.690 0.000 3.000 5.070
1999 0.000 16.017 0.000 1.605 0.000 3.000 4.816
2000 0.000 15.216 0.000 1.525 0.000 3.000 4.576
2001 0.000 14.456 0.000 1.449 0.000 3.000 4.347
2002 0.000 13.733 0.000 1.376 0.000 3.000 4.129
2003 0.000 13.046 0.000 1.308 0.000 3.000 3.923
2004 0.000 12.394 0.000 1.242 0.000 3.000 3.727
2005 0.000 11.774 0.000 1.180 0.000 3.000 3.540
SUB 0.000 138.912 0.000 13.924 0.000 3.000 41.771
REM 0.000 23.530 0.000 2.359 0.000 3.000 7.075
TOT 0.000 162.442 0.000 16.282 0.000 3.000 48.846
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 1.087 0.000 0.356 0.864 0.864 0.847
1997 2.609 0.000 0.822 1.906 2.770 1.749
1998 2.609 0.000 0.781 1.681 4.451 1.402
1999 2.609 0.000 0.742 1.466 5.917 1.112
2000 2.609 0.000 0.705 1.262 7.179 0.871
2001 2.609 0.000 0.670 1.069 8.248 0.670
2002 2.609 0.000 0.636 0.885 9.133 0.505
2003 2.609 0.000 0.604 0.710 9.843 0.368
2004 2.609 0.000 0.574 0.544 10.387 0.257
2005 2.609 0.000 0.545 0.387 10.774 0.166
SUB 24.568 0.000 6.435 10.774 10.774 7.947
REM 5.653 0.000 1.091 0.334 11.108 0.128
TOT 30.221 0.000 7.526 11.108 11.108 8.075
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting acting actual and estimated production, as applicable, calculated as
of October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the year 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ATIC 18-13 1 SW SW P.W. % P.W., M$
PRUET PRODUCTION CO OIL GAS ------ --------
HUXFORD EAST ---------- ---------- 10.00 0.015
AL, ESCAMBIA GROSS WELLS 1.000 0.000 15.00 0.015
SMACKOVER GROSS CUM. MB & MMF 188.903 154.086 20.00 0.015
18 3N 7E GROSS RES. MB & MMF 1.789 1.133 25.00 0.015
SEQ: 416 GROSS ULT. MB & MMF 190.692 155.219 30.00 0.015
INIT W.I 10.000 LIFE/YR 0.250 RATE-OF-RETURN, % 100.00
INIT N.I 6.325 OPC/W 6700 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 1.789 1.133 0.113 0.072 19.480 2.660 2.394
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.789 1.133 0.113 0.072 19.480 2.660 2.394
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.789 1.133 0.113 0.072 19.480 2.660 2.394
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 2.010 0.000 0.368 0.015 0.015 0.015
1997 0.000 0.000 0.000 0.000 0.015 0.000
1998 0.000 0.000 0.000 0.000 0.015 0.000
1999 0.000 0.000 0.000 0.000 0.015 0.000
2000 0.000 0.000 0.000 0.000 0.015 0.000
2001 0.000 0.000 0.000 0.000 0.015 0.000
2002 0.000 0.000 0.000 0.000 0.015 0.000
2003 0.000 0.000 0.000 0.000 0.015 0.000
2004 0.000 0.000 0.000 0.000 0.015 0.000
2005 0.000 0.000 0.000 0.000 0.015 0.000
SUB 2.010 0.000 0.368 0.015 0.015 0.015
REM 0.000 0.000 0.000 0.000 0.015 0.000
TOT 2.010 0.000 0.368 0.015 0.015 0.015
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ATKINSON CHAS-FED LD BK 1-17 P.W. % P.W., M$
SAMSON RESOURCES CO OIL GAS ------ --------
BLUFF ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 99.447 655.516 20.00 0.000
17 14S 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 639 GROSS ULT. MB & MMF 99.447 655.516 30.00 0.000
INIT W.I 0.820 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 0.673 OPC/W 1648 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the year 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
BACCUS 13-16 P.W. % P.W., M$
SANFORD RESOURCES CORPOR OIL GAS ------ --------
HEARTLINE ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
13 15S 12W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEC: 640 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES, SHUT-IN SINCE 7/94. INIT W.I 2.187 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 1.914 OPC/W 343 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BAINES M E 1B P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ------- ------- 10.00 64.660
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 54.364
BENTON GROSS CUM. MB & MMF 0.000 3801.395 20.00 46.955
20 16S 12W GROSS RES. MB & MMF 0.000 245.638 25.00 41.418
SEQ: 350 GROSS ULT. MB & MMF 0.000 4047.033 30.00 37.144
INIT W.I 46.218 LIFE/YR 18.833 RATE-OF-RETURN, % 100.00
INIT N.I 40.053 OPC/W 1105 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.085 0.000 3.639 0.000 2.620 9.534 2.554 0.000 1.468 5.512
1997 0.000 20.871 0.000 8.360 0.000 2.620 21.902 6.129 0.000 3.373 12.401
1998 0.000 19.619 0.000 7.858 0.000 2.620 20.588 6.129 0.000 3.171 11.289
1999 0.000 18.442 0.000 7.387 0.000 2.620 19.353 6.129 0.000 2.980 10.244
2000 0.000 17.335 0.000 6.943 0.000 2.620 18.192 6.129 0.000 2.801 9.262
2001 0.000 16.295 0.000 6.527 0.000 2.620 17.100 6.129 0.000 2.633 8.338
2002 0.000 15.318 0.000 6.135 0.000 2.620 16.074 6.129 0.000 2.475 7.470
2003 0.000 14.398 0.000 5.767 0.000 2.620 15.110 6.129 0.000 2.327 6.654
2004 0.000 13.535 0.000 5.421 0.000 2.620 14.203 6.129 0.000 2.187 5.887
2005 0.000 12.723 0.000 5.096 0.000 2.620 13.351 6.129 0.000 2.056 5.166
SUB 0.000 157.621 0.000 63.132 0.000 2.620 165.407 57.715 0.000 25.471 82.223
REM 0.000 88.017 0.000 35.254 0.000 2.620 92.364 57.715 0.000 14.225 20.430
TOT 0.000 245.638 0.000 98.385 0.000 2.620 257.771 115.430 0.000 39.696 102.653
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 5.512 5.404
1997 17.913 11.376
1998 29.202 9.415
1999 39.446 7.767
2000 48.708 6.384
2001 57.046 5.225
2002 64.516 4.256
2003 71.170 3.446
2004 77.057 2.772
2005 82.223 2.212
SUB 82.223 58.257
REM 102.653 6.404
TOT 102.653 64.661
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BAINES M E 1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ------- ------- 10.00 28.099
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 23.613
BENTON GROSS CUM. MB & MMF 0.000 1550.174 20.00 20.389
20 16S 12W GROSS RES. MB & MMF 0.000 106.469 25.00 17.980
SEQ: 351 GROSS ULT. MB & MMF 0.000 1656.643 30.00 16.122
INIT W.I 46.218 LIFE/YR 18.917 RATE-OF-RETURN, % 100.00
INIT N.I 40.053 OPC/W 475 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.929 0.000 1.574 0.000 2.620 4.123 1.098 0.000 0.635 2.390
1997 0.000 9.025 0.000 3.615 0.000 2.620 9.471 2.634 0.000 1.458 5.378
1998 0.000 8.484 0.000 3.398 0.000 2.620 8.903 2.634 0.000 1.371 4.897
1999 0.000 7.975 0.000 3.194 0.000 2.620 8.369 2.634 0.000 1.289 4.446
2000 0.000 7.496 0.000 3.003 0.000 2.620 7.867 2.634 0.000 1.212 4.021
2001 0.000 7.047 0.000 2.822 0.000 2.620 7.395 2.634 0.000 1.138 3.621
2002 0.000 6.624 0.000 2.653 0.000 2.620 6.951 2.634 0.000 1.070 3.246
2003 0.000 6.226 0.000 2.494 0.000 2.620 6.534 2.634 0.000 1.006 2.893
2004 0.000 5.853 0.000 2.344 0.000 2.620 6.142 2.634 0.000 0.946 2.562
2005 0.000 5.502 0.000 2.204 0.000 2.620 5.773 2.634 0.000 0.889 2.250
SUB 0.000 68.161 0.000 27.300 0.000 2.620 71.528 24.804 0.000 11.014 35.704
REM 0.000 38.310 0.000 15.344 0.000 2.620 40.201 25.023 0.000 6.191 8.982
TOT 0.000 106.471 0.000 42.644 0.000 2.620 111.729 49.827 0.000 17.205 44.686
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 2.390 2.343
1997 7.768 4.934
1998 12.665 4.084
1999 17.111 3.371
2000 21.132 2.771
2001 24.753 2.269
2002 27.999 1.849
2003 30.892 1.498
2004 33.454 1.206
2005 35.704 0.963
SUB 35.704 25.288
REM 44.686 2.810
TOT 44.686 28.098
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
BARNES EST 1 P.W. % P.W., M$
GERMANY OPERATING CO OIL GAS ------ --------
BLOOMING GROVE ------- ------- 10.00 28.092
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 25.146
CARTER GROSS CUM. MB & MMF 0.000 2217.905 20.00 22.753
31 14S 13W GROSS RES. MB & MMF 0.000 138.761 25.00 20.778
SEQ: 352 GROSS ULT. MB & MMF 0.000 2456.666 30.00 19.126
INIT W.I 35.010 LIFE/YR 9.083 RATE-OF-RETURN, % 100.00
INIT N.I 29.198 OPC/W 1485 UNDISC NET/INVEST 87.87
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.922 0.000 1.729 0.000 2.700 4.668 1.560 0.420 0.719 1.970
1997 0.000 22.187 0.000 6.478 0.000 2.700 17.491 6.239 0.000 2.694 8.558
1998 0.000 19.968 0.000 5.830 0.000 2.700 15.742 6.239 0.000 2.424 7.079
1999 0.000 17.971 0.000 5.247 0.000 2.700 14.168 6.239 0.000 2.182 5.747
2000 0.000 16.174 0.000 4.723 0.000 2.700 12.751 6.239 0.000 1.964 4.548
2001 0.000 14.557 0.000 4.250 0.000 2.700 11.476 6.239 0.000 1.768 3.470
2002 0.000 13.101 0.000 3.825 0.000 2.700 10.328 6.239 0.000 1.591 2.499
2003 0.000 11.791 0.000 3.443 0.000 2.700 9.295 6.239 0.000 1.432 1.625
2004 0.000 10.612 0.000 3.098 0.000 2.700 8.366 6.239 0.000 1.289 0.839
2005 0.000 6.478 0.000 1.892 0.000 2.700 5.107 4.159 0.000 0.787 0.161
SUB 0.000 138.761 0.000 40.515 0.000 2.700 109.392 55.631 0.420 16.850 36.496
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 138.761 0.000 40.515 0.000 2.700 109.392 55.631 0.420 16.850 36.496
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 1.970 1.911
1997 10.528 7.857
1998 17.607 5.908
1999 23.354 4.361
2000 27.902 3.139
2001 31.372 2.177
2002 33.871 1.426
2003 35.496 0.844
2004 36.335 0.397
2005 36.496 0.071
SUB 36.496 28.091
REM 36.496 0.000
TOT 36.496 28.091
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QAULIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
BARNES EST 1 BP P.W. % P.W., M$
GERMANY OPERATING CO OIL GAS ------ --------
BLOOMING GROVE ------- ------- 10.00 127.754
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 115.293
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 104.954
31 14S 13W GROSS RES. MB & MMF 0.000 250.000 25.00 96.264
SEQ: 582 GROSS ULT. MB & MMF 0.000 250.000 30.00 88.878
INIT W.I 35.010 LIFE/YR 6.833 RATE-OF-RETURN, % 100.00
INIT N.I 29.198 OPC/W 0 UNDISC NET/INVEST 34.51
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.403 0.000 2.162 0.000 2.700 5.836 0.000 4.831 0.899 0.106
1997 0.000 75.329 0.000 21.995 0.000 2.700 59.385 0.000 0.000 9.146 50.240
1998 0.000 55.139 0.000 16.100 0.000 2.700 43.469 0.000 0.000 6.694 36.775
1999 0.000 40.361 0.000 11.785 0.000 2.700 31.818 0.000 0.000 4.900 26.918
2000 0.000 29.543 0.000 8.626 0.000 2.700 23.290 0.000 0.000 3.587 19.704
2001 0.000 21.625 0.000 6.314 0.000 2.700 17.048 0.000 0.000 2.626 14.423
2002 0.000 15.829 0.000 4.622 0.000 2.700 12.479 0.000 0.000 1.922 10.557
2003 0.000 4.770 0.000 1.393 0.000 2.700 3.760 0.000 0.000 0.579 3.181
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 249.999 0.000 72.995 0.000 2.700 197.085 0.000 4.831 30.353 161.904
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 249.999 0.000 72.995 0.000 2.700 197.085 0.000 4.831 30.353 161.904
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.106 0.047
1997 50.346 46.167
1998 87.121 30.721
1999 114.039 20.443
2000 133.743 13.604
2001 148.166 9.052
2002 158.723 6.024
2003 161.904 1.695
2004 161.904 0.000
2005 161.904 0.000
SUB 161.904 127.753
REM 161.904 0.000
TOT 161.904 127.753
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QAULIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
BARNES EST 1 POSS P.W. % P.W., M$
GERMANY OPERATING CO OIL GAS ------ --------
BLOOMING GROVE ------- ------- 10.00 96.487
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 59.401
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 37.495
31 14S 13W GROSS RES. MB & MMF 0.000 499.277 25.00 24.204
SEQ: 583 GROSS ULT. MB & MMF 0.000 499.277 30.00 15.945
INIT W.I 35.010 LIFE/YR 17.083 RATE-OF-RETURN, % 100.00
INIT N.I 29.198 OPC/W 1485 UNDISC NET/INVEST 53.90
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 56.762 0.000 16.573 0.000 2.700 44.748 2.080 5.251 6.891 30.526
SUB 0.000 56.762 0.000 16.573 0.000 2.700 44.748 2.080 5.251 6.891 30.526
REM 0.000 442.515 0.000 129.205 0.000 2.700 348.855 47.832 0.000 53.723 247.299
TOT 0.000 499.277 0.000 145.779 0.000 2.700 393.603 49.912 5.251 60.614 277.825
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 30.526 12.611
SUB 30.526 12.611
REM 277.825 83.876
TOT 277.825 96.487
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BENTON, ALLEN P.W. % P.W., M$
SAMSON PETROLEUM CO OIL GAS ------ --------
BEAVERTON ------- ------- 10.00 10.729
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 9.063
CARTER SW GROSS CUM. MB & MMF 0.000 1108.347 20.00 7.867
30 12S 15W GROSS RES. MB & MMF 0.000 153.263 25.00 6.972
SEQ: 577 GROSS ULT. MB & MMF 0.000 1261.610 30.00 6.280
INIT W.I 8.746 LIFE/YR 21.583 RATE-OF-RETURN, % 100.00
INIT N.I 6.659 OPC/W 2264 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.338 0.000 0.489 0.000 2.660 1.300 0.115 0.000 0.200 0.984
1997 0.000 16.350 0.000 1.089 0.000 2.660 2.896 0.277 0.000 0.446 2.173
1998 0.000 14.715 0.000 0.980 0.000 2.660 2.607 0.277 0.000 0.402 1.928
1999 0.000 13.244 0.000 0.882 0.000 2.660 2.346 0.277 0.000 0.362 1.708
2000 0.000 11.919 0.000 0.794 0.000 2.660 2.111 0.277 0.000 0.325 1.509
2001 0.000 10.728 0.000 0.714 0.000 2.660 1.900 0.277 0.000 0.293 1.330
2002 0.000 9.655 0.000 0.643 0.000 2.660 1.710 0.277 0.000 0.263 1.170
2003 0.000 8.689 0.000 0.579 0.000 2.660 1.539 0.277 0.000 0.237 1.025
2004 0.000 7.820 0.000 0.521 0.000 2.660 1.385 0.277 0.000 0.214 0.895
2005 0.000 7.038 0.000 0.469 0.000 2.660 1.247 0.277 0.000 0.192 0.778
SUB 0.000 107.496 0.000 7.158 0.000 2.660 19.041 2.608 0.000 2.934 13.500
REM 0.000 45.765 0.000 3.048 0.000 2.660 8.107 3.370 0.000 1.249 3.487
TOT 0.000 153.261 0.000 10.206 0.000 2.660 27.148 5.978 0.000 4.183 16.987
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.984 0.965
1997 3.157 1.994
1998 5.085 1.608
1999 6.793 1.295
2000 8.302 1.040
2001 9.632 0.834
2002 10.802 0.666
2003 11.827 0.531
2004 12.722 0.421
2005 13.500 0.333
SUB 13.500 9.687
REM 16.987 1.041
TOT 16.987 10.728
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BERRY 8-10 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.000 1487.291 20.00 0.000
8 15S 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 353 GROSS ULT. MB & MMF 0.000 1487.291 30.00 0.000
NO RESERVES, SHUT-IN. INIT W.I 9.922 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 8.072 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
J-POSSIBLE DEVE PRIMARY
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
BERRY 8-10 POSS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 66.008
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 57.701
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 51.026
8 15S 13W GROSS RES. MB & MMF 0.000 599.941 25.00 45.571
SEQ: 584 GROSS ULT. MB & MMF 0.000 599.941 30.00 41.047
INIT W.I 9.922 LIFE/YR 10.583 RATE-OF-RETURN, % 100.00
INIT N.I 8.072 OPC/W 1500 UNDISC NET/INVEST 61.62
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 83.984 0.000 6.779 0.000 2.660 18.033 0.893 1.488 2.777 12.874
1998 0.000 136.486 0.000 11.017 0.000 2.660 29.306 1.786 0.000 4.514 23.007
1999 0.000 103.154 0.000 8.327 0.000 2.660 22.149 1.786 0.000 3.411 16.952
2000 0.000 77.962 0.000 6.293 0.000 2.660 16.740 1.786 0.000 2.578 12.376
2001 0.000 58.922 0.000 4.756 0.000 2.660 12.652 1.786 0.000 1.948 8.917
2002 0.000 44.533 0.000 3.595 0.000 2.660 9.562 1.786 0.000 1.472 6.303
2003 0.000 33.657 0.000 2.717 0.000 2.660 7.227 1.786 0.000 1.113 4.328
2004 0.000 25.437 0.000 2.053 0.000 2.660 5.462 1.786 0.000 0.841 2.835
2005 0.000 19.225 0.000 1.552 0.000 2.660 4.128 1.786 0.000 0.636 1.706
SUB 0.000 583.360 0.000 47.089 0.000 2.660 125.259 15.181 1.488 19.290 89.298
REM 0.000 16.580 0.000 1.338 0.000 2.660 3.560 2.084 0.000 0.548 0.928
TOT 0.000 599.940 0.000 48.427 0.000 2.660 128.819 17.265 1.488 19.838 90.226
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 12.874 11.496
1998 35.881 19.218
1999 52.833 12.874
2000 65.209 8.545
2001 74.126 5.598
2002 80.429 3.598
2003 84.757 2.246
2004 87.592 1.338
2005 89.298 0.733
SUB 89.298 65.646
REM 90.226 0.361
TOT 90.226 66.007
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BLOWHORN CREEK MILLERELLA UNIT P.W. % P.W., M$
HUGHES EASTERN CORP OIL GAS ------ --------
BLOWHORN CREEK ----------- ----------- 10.00 26.614
AL, LAMAR GROSS WELLS 1.000 0.000 15.00 25.126
MILLERELLA GROSS CUM. MB & MMF 254.555 131.747 20.00 23.822
14S 14W GROSS RES. MB & MMF 102.658 0.000 25.00 22.670
SEQ: 417 GROSS ULT. MB & MMF 357.213 131.747 30.00 21.646
INIT W.I 9.485 LIFE/YR 4.500 RATE-OF-RETURN, % 100.00
INIT N.I 7.340 OPC/W 17157 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 12.173 0.000 0.893 0.000 18.540 0.000 16.565 8.137 0.000 2.552 5.878
1997 26.701 0.000 1.960 0.000 18.540 0.000 36.336 19.528 0.000 5.596 11.212
1998 23.497 0.000 1.725 0.000 18.540 0.000 31.975 19.528 0.000 4.925 7.523
1999 20.677 0.000 1.518 0.000 18.540 0.000 28.138 19.528 0.000 4.333 4.277
2000 18.196 0.000 1.336 0.000 18.540 0.000 24.762 19.528 0.000 3.813 1.420
2001 1.414 0.000 0.104 0.000 18.540 0.000 1.924 1.627 0.000 0.296 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 102.658 0.000 7.535 0.000 18.540 0.000 139.700 87.876 0.000 21.515 30.310
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 102.658 0.000 7.535 0.000 18.540 0.000 139.700 87.876 0.000 21.515 30.310
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.878 5.765
1997 17.090 10.306
1998 24.613 6.292
1999 28.890 3.258
2000 30.310 0.993
2001 30.310 0.000
2002 30.310 0.000
2003 30.310 0.000
2004 30.310 0.000
2005 30.310 0.000
SUB 30.310 26.614
REM 30.310 0.000
TOT 30.310 26.614
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BLOWHORN CREEK, NORTH UNIT P.W. % P.W., M$
HUGHES EASTERN CORP OIL GAS ------ --------
BLOWHORN CREEK NORTH ---------- ----------
AL, LAMAR 10.00 1.117
CARTER GROSS WELLS 51.000 0.000 15.00 1.102
13S 14W GROSS CUM. MB & MMF 4993.018 2208.454 20.00 1.087
SEQ: 452 GROSS RES. MB & MMF 81.106 0.000 25.00 1.074
GROSS ULT. MB & MMF 5074.124 2208.454 30.00 1.061
INIT W.I 1.913 LIFE/YR 1.000 RATE-OF-RETURN, % 100.00
INIT N.I 1.452 OPC/W 1582 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 35.058 0.000 0.509 0.000 19.740 0.000 10.052 7.717 0.000 1.548 0.786
1997 46.048 0.000 0.669 0.000 19.740 0.000 13.202 10.804 0.000 2.033 0.365
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 81.106 0.000 1.178 0.000 19.740 0.000 23.254 18.521 0.000 3.581 1.151
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 81.106 0.000 1.178 0.000 19.740 0.000 23.254 18.521 0.000 3.581 1.151
</TABLE>
<TABLE>
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.786 0.772
1997 1.151 0.345
1998 1.151 0.000
1999 1.151 0.000
2000 1.151 0.000
2001 1.151 0.000
2002 1.151 0.000
2003 1.151 0.000
2004 1.151 0.000
2005 1.151 0.000
SUB 1.151 1.117
REM 1.151 0.000
TOT 1.151 1.117
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BOMAN 34-8 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
WATSON CREEK ---------- ----------
AL, LAMAR 10.00 0.000
MILLERELLA GROSS WELLS 0.000 1.000 15.00 0.000
34 14S 15W GROSS CUM. MB & MMF 42.476 658.754 20.00 0.000
SEQ: 354 GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
GROSS ULT. MB & MMF 42.476 658.754 30.00 0.000
INIT W.I 35.859 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 27.466 OPC/W 1314 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
B2-PROVED BEHIND-PIPE
BOMAN 34-8 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
WATSON CREEK ---------- ---------- <C> <C>
AL, LAMAR <S> <C> <C> 10.00 258.517
CARTER GROSS WELLS 0.000 1.000 15.00 229.312
34 14S 15W GROSS CUM. MB & MMF 0.000 0.000 20.00 205.839
SEQ: 612 GROSS RES. MB & MMF 0.000 650.000 25.00 186.626
GROSS ULT. MB & MMF 0.000 650.000 30.00 170.648
INIT W.I 35.859 LIFE/YR 10.833 RATE-OF-RETURN, % 100.00
INIT N.I 27.466 OPC/W 1314 UNDISC NET/INVEST 23.84
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.840 0.000 4.076 0.000 2.770 11.290 0.471 15.061 1.739 -5.981
1997 0.000 155.240 0.000 42.638 0.000 2.770 118.108 5.654 0.000 18.189 94.265
1998 0.000 119.882 0.000 32.927 0.000 2.770 91.208 5.654 0.000 14.046 71.507
1999 0.000 92.578 0.000 25.427 0.000 2.770 70.434 5.654 0.000 10.846 53.933
2000 0.000 71.492 0.000 19.636 0.000 2.770 54.392 5.654 0.000 8.376 40.361
2001 0.000 55.209 0.000 15.164 0.000 2.770 42.004 5.654 0.000 6.468 29.881
2002 0.000 42.634 0.000 11.710 0.000 2.770 32.437 5.654 0.000 4.996 21.787
2003 0.000 32.924 0.000 9.043 0.000 2.770 25.049 5.654 0.000 3.858 15.537
2004 0.000 25.425 0.000 6.983 0.000 2.770 19.344 5.654 0.000 2.979 10.710
2005 0.000 19.634 0.000 5.393 0.000 2.770 14.938 5.654 0.000 2.301 6.983
SUB 0.000 629.858 0.000 172.997 0.000 2.770 479.204 51.357 15.061 73.798 338.983
REM 0.000 20.142 0.000 5.532 0.000 2.770 15.325 8.010 0.000 2.361 4.955
TOT 0.000 650.000 0.000 178.530 0.000 2.770 494.529 59.367 15.061 76.159 343.938
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 -5.981 -5.829
1997 88.284 86.598
1998 159.791 59.722
1999 213.724 40.951
2000 254.085 27.862
2001 283.966 18.754
2002 305.753 12.433
2003 321.290 8.062
2004 332.000 5.054
2005 338.983 2.997
SUB 338.983 256.604
REM 343.938 1.914
TOT 343.938 258.518
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BOZEMAN 27-15 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 63.508
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 52.292
LEWIS GROSS CUM. MB & MMF 0.779 1592.424 20.00 44.540
27 16S 12W GROSS RES. MB & MMF 0.000 444.987 25.00 38.911
SEQ: 355 GROSS ULT. MB & MMF 0.779 2037.411 30.00 34.657
INIT W.I 22.608 LIFE/YR 23.667 RATE-OF-RETURN, % 100.00
INIT N.I 19.214 OPC/W 1337 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.732 0.000 2.831 0.000 2.700 7.643 1.511 0.000 1.177 4.954
1997 0.000 33.845 0.000 6.503 0.000 2.700 17.558 3.627 0.000 2.704 11.227
1998 0.000 31.815 0.000 6.113 0.000 2.700 16.505 3.627 0.000 2.541 10.336
1999 0.000 29.906 0.000 5.746 0.000 2.700 15.514 3.627 0.000 2.389 9.498
2000 0.000 28.111 0.000 5.401 0.000 2.700 14.584 3.627 0.000 2.246 8.710
2001 0.000 26.425 0.000 5.077 0.000 2.700 13.709 3.627 0.000 2.111 7.970
2002 0.000 24.839 0.000 4.773 0.000 2.700 12.886 3.627 0.000 1.985 7.274
2003 0.000 23.349 0.000 4.486 0.000 2.700 12.113 3.627 0.000 1.865 6.620
2004 0.000 21.948 0.000 4.217 0.000 2.700 11.386 3.627 0.000 1.754 6.005
2005 0.000 20.631 0.000 3.964 0.000 2.700 10.703 3.627 0.000 1.648 5.427
SUB 0.000 255.601 0.000 49.111 0.000 2.700 132.601 34.154 0.000 20.420 78.021
REM 0.000 189.386 0.000 36.388 0.000 2.700 98.250 51.685 0.000 15.128 31.430
TOT 0.000 444.987 0.000 85.500 0.000 2.700 230.851 85.839 0.000 35.548 109.451
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 4.954 4.858
1997 16.181 10.298
1998 26.517 8.619
1999 36.015 7.200
2000 44.725 6.003
2001 52.695 4.994
2002 59.969 4.144
2003 66.589 3.428
2004 72.594 2.827
2005 78.021 2.323
SUB 78.021 54.694
REM 109.451 8.813
TOT 109.451 63.507
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
BOZEMAN 27-15 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 79.005
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 70.010
LEWIS GROSS CUM. MB & MMF 0.000 0.000 20.00 62.721
27 16S 12W GROSS RES. MB & MMF 0.000 250.000 25.00 56.723
SEQ: 608 GROSS ULT. MB & MMF 0.000 250.000 30.00 51.719
COMMINGLE. INIT W.I 22.608 LIFE/YR 7.833 RATE-OF-RETURN, % 100.00
INIT N.I 19.214 OPC/W 0 UNDISC NET/INVEST 22.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.940 0.000 1.141 0.000 2.700 3.082 0.000 4.974 0.474 -2.367
1997 0.000 62.744 0.000 12.056 0.000 2.700 32.550 0.000 0.000 5.013 27.538
1998 0.000 49.356 0.000 9.483 0.000 2.700 25.605 0.000 0.000 3.943 21.662
1999 0.000 38.825 0.000 7.460 0.000 2.700 20.142 0.000 0.000 3.102 17.040
2000 0.000 30.541 0.000 5.868 0.000 2.700 15.844 0.000 0.000 2.440 13.404
2001 0.000 24.024 0.000 4.616 0.000 2.700 12.463 0.000 0.000 1.919 10.544
2002 0.000 18.898 0.000 3.631 0.000 2.700 9.804 0.000 0.000 1.509 8.294
2003 0.000 14.866 0.000 2.856 0.000 2.700 7.712 0.000 0.000 1.187 6.524
2004 0.000 4.805 0.000 0.923 0.000 2.700 2.493 0.000 0.000 0.384 2.109
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 249.999 0.000 48.035 0.000 2.700 129.695 0.000 4.974 19.971 104.748
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 249.999 0.000 48.035 0.000 2.700 129.695 0.000 4.974 19.971 104.748
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 -2.367 -2.303
1997 27.171 25.291
1998 46.833 18.086
1999 63.873 12.934
2000 77.277 9.249
2001 87.821 6.614
2002 96.115 4.730
2003 102.639 3.382
2004 104.748 1.021
2005 104.748 0.000
SUB 104.748 79.004
REM 104.748 0.000
TOT 104.748 79.004
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
E-PROBABLE DEVE PRIMARY
BOZEMAN 27-15 PROB P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 9.530
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 6.231
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 4.157
27 16S 12W GROSS RES. MB & MMF 0.000 100.000 25.00 2.824
SEQ: 609 GROSS ULT. MB & MMF 0.000 100.000 30.00 1.951
INIT W.I 22.608 LIFE/YR 12.417 RATE-OF-RETURN, % 100.00
INIT N.I 19.214 OPC/W 1337 UNDISC NET/INVEST 8.04
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 19.596 0.000 3.765 0.000 2.700 10.166
2005 0.000 27.825 0.000 5.346 0.000 2.700 14.435
SUB 0.000 47.421 0.000 9.111 0.000 2.700 24.601
REM 0.000 52.579 0.000 10.103 0.000 2.700 27.277
TOT 0.000 100.000 0.000 19.214 0.000 2.700 51.878
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000
2004 2.116 3.391 1.566 3.093 3.093 1.385
2005 3.627 0.000 2.222 8.585 11.678 3.681
SUB 5.743 3.391 3.788 11.678 11.678 5.066
REM 10.881 0.000 4.199 12.194 23.872 4.464
TOT 16.624 3.391 7.987 23.872 23.872 9.530
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRADFORD E L 19-15 1 P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
MCGEE LAKE ---------- ---------- 10.00 30.526
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 25.656
CARTER GROSS CUM. MB & MMF 1.863 9963.936 20.00 22.208
19 16S 15W GROSS RES. MB & MMF 0.000 1244.442 25.00 19.652
SEQ: 418 GROSS ULT. MB & MMF 1.863 11208.378 30.00 17.687
INIT W.I 2.968 LIFE/YR 24.000 RATE-OF-RETURN, % 100.00
INIT N.I 2.260 OPC/W 1609 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 60.611 0.000 1.370 0.000 2.660 3.644 0.239 0.000 0.561 2.844
1997 0.000 131.862 0.000 2.980 0.000 2.660 7.927 0.573 0.000 1.221 6.133
1998 0.000 116.144 0.000 2.625 0.000 2.660 6.982 0.573 0.000 1.075 5.334
1999 0.000 103.773 0.000 2.345 0.000 2.660 6.238 0.573 0.000 0.961 4.705
2000 0.000 93.946 0.000 2.123 0.000 2.660 5.648 0.573 0.000 0.870 4.205
2001 0.000 84.551 0.000 1.911 0.000 2.660 5.083 0.573 0.000 0.782 3.727
2002 0.000 76.096 0.000 1.720 0.000 2.660 4.575 0.573 0.000 0.704 3.297
2003 0.000 68.487 0.000 1.548 0.000 2.660 4.117 0.573 0.000 0.634 2.910
2004 0.000 61.638 0.000 1.393 0.000 2.660 3.705 0.573 0.000 0.571 2.562
2005 0.000 55.474 0.000 1.254 0.000 2.660 3.335 0.573 0.000 0.513 2.248
SUB 0.000 852.582 0.000 19.268 0.000 2.660 51.254 5.396 0.000 7.892 37.965
REM 0.000 391.861 0.000 8.856 0.000 2.660 23.557 8.356 0.000 3.629 11.571
TOT 0.000 1244.443 0.000 28.124 0.000 2.660 74.811 13.752 0.000 11.521 49.536
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C>
1996 2.844 2.789
1997 8.977 5.629
1998 14.311 4.450
1999 19.016 3.567
2000 23.221 2.899
2001 26.948 2.336
2002 30.245 1.878
2003 33.155 1.507
2004 35.717 1.206
2005 37.965 0.962
SUB 37.965 27.223
REM 49.536 3.303
TOT 49.536 30.526
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BROWN 1-9 P.W. % P.W., M$
HUGHES EASTERN CORP OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 8.328
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 7.330
CARTER GROSS CUM. MB & MMF 0.000 2444.956 20.00 6.561
1 15S 14W GROSS RES. MB & MMF 0.000 165.626 25.00 5.954
SEQ: 419 GROSS ULT. MB & MMF 0.000 2610.582 30.00 5.464
INIT W.I 9.352 LIFE/YR 14.000 RATE-OF-RETURN, % 100.00
INIT N.I 7.404 OPC/W 964 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.192 0.000 0.681 0.000 2.570 1.749 0.451 0.000 0.269 1.029
1997 0.000 19.873 0.000 1.471 0.000 2.570 3.782 1.082 0.000 0.582 2.117
1998 0.000 17.395 0.000 1.288 0.000 2.570 3.310 1.082 0.000 0.510 1.719
1999 0.000 15.463 0.000 1.145 0.000 2.570 2.942 1.082 0.000 0.453 1.407
2000 0.000 13.914 0.000 1.030 0.000 2.570 2.648 1.082 0.000 0.408 1.158
2001 0.000 12.646 0.000 0.936 0.000 2.570 2.406 1.082 0.000 0.371 0.954
2002 0.000 11.587 0.000 0.858 0.000 2.570 2.205 1.082 0.000 0.339 0.784
2003 0.000 10.691 0.000 0.792 0.000 2.570 2.034 1.082 0.000 0.313 0.639
2004 0.000 9.922 0.000 0.735 0.000 2.570 1.888 1.082 0.000 0.291 0.515
2005 0.000 9.256 0.000 0.685 0.000 2.570 1.761 1.082 0.000 0.271 0.408
SUB 0.000 129.939 0.000 9.621 0.000 2.570 24.725 10.189 0.000 3.807 10.730
REM 0.000 35.686 0.000 2.642 0.000 2.570 6.790 4.959 0.000 1.046 0.787
TOT 0.000 165.625 0.000 12.263 0.000 2.570 31.515 15.148 0.000 4.853 11.517
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.029 1.009
1997 3.146 1.944
1998 4.865 1.434
1999 6.272 1.068
2000 7.430 0.799
2001 8.384 0.598
2002 9.168 0.447
2003 9.807 0.331
2004 10.322 0.243
2005 10.730 0.175
SUB 10.730 8.048
REM 11.517 0.280
TOT 11.517 8.328
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
BROWN N P 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 7.664
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 7.199
CARTER GROSS CUM. MB & MMF 0.000 4937.090 20.00 6.789
12 15S 14W GROSS RES. MB & MMF 0.000 49.722 25.00 6.423
SEQ: 357 GROSS ULT. MB & MMF 0.000 4986.812 30.00 6.096
COMPRESSOR INSTALLATION. INIT W.I 43.130 LIFE/YR 3.917 RATE-OF-RETURN, % 100.00
INIT N.I 30.229 OPC/W 1318 UNDISC NET/INVEST 18.01
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 2.960 0.000 0.895 0.000 2.700 2.416 1.137 0.518 0.372 0.389
1997 0.000 16.169 0.000 4.888 0.000 2.700 13.197 6.821 0.000 2.033 4.343
1998 0.000 13.744 0.000 4.155 0.000 2.700 11.218 6.821 0.000 1.728 2.669
1999 0.000 11.682 0.000 3.531 0.000 2.700 9.535 6.821 0.000 1.469 1.245
2000 0.000 5.167 0.000 1.562 0.000 2.700 4.217 3.411 0.000 0.650 0.157
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 49.722 0.000 15.031 0.000 2.700 40.583 25.011 0.518 6.252 8.803
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 49.722 0.000 15.031 0.000 2.700 40.583 25.011 0.518 6.252 8.803
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.389 0.373
1997 4.732 3.995
1998 7.401 2.234
1999 8.646 0.951
2000 8.803 0.111
2001 8.803 0.000
2002 8.803 0.000
2003 8.803 0.000
2004 8.803 0.000
2005 8.803 0.000
SUB 8.803 7.664
REM 8.803 0.000
TOT 8.803 7.664
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubit
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
BROWN N P 1 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 84.344
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 65.099
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 50.976
12 15S 14W GROSS RES. MB & MMF 0.000 299.602 25.00 40.436
SEQ: 625 GROSS ULT. MB & MMF 0.000 299.602 30.00 32.449
INIT W.I 43.130 LIFE/YR 10.833 RATE-OF-RETURN, % 100.00
INIT N.I 30.229 OPC/W 1318 UNDISC NET/INVEST 14.18
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 42.129 0.000 12.735 0.000 2.700 34.385 2.842 11.300 5.295 14.947
2001 0.000 80.888 0.000 24.452 0.000 2.700 66.019 6.821 0.000 10.167 49.031
2002 0.000 58.736 0.000 17.755 0.000 2.700 47.940 6.821 0.000 7.383 33.736
2003 0.000 42.651 0.000 12.893 0.000 2.700 34.811 6.821 0.000 5.361 22.629
2004 0.000 30.971 0.000 9.362 0.000 2.700 25.278 6.821 0.000 3.893 14.564
2005 0.000 22.490 0.000 6.798 0.000 2.700 18.356 6.821 0.000 2.827 8.708
SUB 0.000 277.865 0.000 83.996 0.000 2.700 226.789 36.947 11.300 34.926 143.615
REM 0.000 21.736 0.000 6.571 0.000 2.700 17.741 9.663 0.000 2.732 5.345
TOT 0.000 299.601 0.000 90.567 0.000 2.700 244.530 46.610 11.300 37.658 148.960
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 14.947 9.866
2001 63.978 30.787
2002 97.714 19.260
2003 120.343 11.748
2004 134.907 6.876
2005 143.615 3.740
SUB 143.615 82.277
REM 148.960 2.067
TOT 148.960 84.344
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubit
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BROWN NELL 7-3 NE NW P.W. % P.W., M$
NATURAL GAS & OIL INC OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.000 2122.394 20.00 0.000
7 15S 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 420 GROSS ULT. MB & MMF 0.000 2122.394 30.00 0.000
INIT W.I 4.375 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 3.716 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BUSH 14-15C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 44.358
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 36.103
CARTER GROSS CUM. MB & MMF 0.000 1964.041 20.00 30.554
14 18S 14W GROSS RES. MB & MMF 0.000 182.977 25.00 26.593
SEQ: 333 GROSS ULT. MB & MMF 0.000 2147.018 30.00 23.632
INIT W.I 28.309 LIFE/YR 29.833 RATE-OF-RETURN, % 100.00
INIT N.I 24.770 OPC/W 313 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 6.156 0.000 1.525 0.000 2.950 4.499 0.443 0.000 0.693 3.363
1997 0.000 14.038 0.000 3.477 0.000 2.950 10.258 1.063 0.000 1.580 7.615
1998 0.000 13.055 0.000 3.234 0.000 2.950 9.540 1.063 0.000 1.469 7.007
1999 0.000 12.141 0.000 3.007 0.000 2.950 8.872 1.063 0.000 1.366 6.442
2000 0.000 11.291 0.000 2.797 0.000 2.950 8.251 1.063 0.000 1.271 5.917
2001 0.000 10.501 0.000 2.601 0.000 2.950 7.673 1.063 0.000 1.181 5.428
2002 0.000 9.766 0.000 2.419 0.000 2.950 7.136 1.063 0.000 1.099 4.974
2003 0.000 9.082 0.000 2.250 0.000 2.950 6.637 1.063 0.000 1.022 4.551
2004 0.000 8.446 0.000 2.092 0.000 2.950 6.172 1.063 0.000 0.950 4.158
2005 0.000 7.855 0.000 1.946 0.000 2.950 5.740 1.063 0.000 0.884 3.793
SUB 0.000 102.331 0.000 25.348 0.000 2.950 74.778 10.010 0.000 11.515 53.248
REM 0.000 80.645 0.000 19.976 0.000 2.950 58.931 21.703 0.000 9.073 28.146
TOT 0.000 182.976 0.000 45.323 0.000 2.950 133.709 31.713 0.000 20.588 81.394
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.363 3.297
1997 10.978 6.985
1998 17.985 5.843
1999 24.427 4.884
2000 30.344 4.078
2001 35.772 3.401
2002 40.746 2.833
2003 45.297 2.357
2004 49.455 1.957
2005 53.248 1.623
SUB 53.248 37.258
REM 81.394 7.098
TOT 81.394 44.356
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
BUSH 14-15C BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 215.563
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 190.919
MILLERELLA GROSS CUM. MB & MMF 0.000 0.000 20.00 171.172
14 18S 14W GROSS RES. MB & MMF 0.000 500.000 25.00 155.058
SEQ: 610 GROSS ULT. MB & MMF 0.000 500.000 30.00 141.696
INIT W.I 28.309 LIFE/YR 9.833 RATE-OF-RETURN, % 100.00
INIT N.I 24.770 OPC/W 559 UNDISC NET/INVEST 90.24
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 126.560 0.000 31.349 0.000 2.950 92.479 1.899 3.227 14.242 73.111
1998 0.000 97.195 0.000 24.075 0.000 2.950 71.022 1.899 0.000 10.937 58.185
1999 0.000 74.643 0.000 18.489 0.000 2.950 54.543 1.899 0.000 8.399 44.244
2000 0.000 57.324 0.000 14.199 0.000 2.950 41.887 1.899 0.000 6.451 33.538
2001 0.000 44.023 0.000 10.905 0.000 2.950 32.168 1.899 0.000 4.954 25.315
2002 0.000 33.809 0.000 8.374 0.000 2.950 24.704 1.899 0.000 3.804 19.001
2003 0.000 25.964 0.000 6.431 0.000 2.950 18.972 1.899 0.000 2.922 14.152
2004 0.000 19.940 0.000 4.939 0.000 2.950 14.570 1.899 0.000 2.244 10.428
2005 0.000 15.313 0.000 3.793 0.000 2.950 11.190 1.899 0.000 1.723 7.567
SUB 0.000 494.771 0.000 122.554 0.000 2.950 361.535 17.091 3.227 55.676 285.541
REM 0.000 5.230 0.000 1.295 0.000 2.950 3.822 0.791 0.000 0.588 2.442
TOT 0.000 500.001 0.000 123.850 0.000 2.950 365.357 17.882 3.227 56.264 287.983
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 73.111 67.026
1998 131.296 48.593
1999 175.540 33.592
2000 209.078 23.149
2001 234.393 15.886
2002 253.394 10.840
2003 267.546 7.340
2004 277.974 4.917
2005 285.541 3.245
SUB 285.541 214.588
REM 287.983 0.976
TOT 287.983 215.564
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
<S> <C>
J-POSSIBLE DEVE PRIMARY
BUSH 14-15C POSS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 42.953
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 25.424
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 15.449
14 18S 14W GROSS RES. MB & MMF 0.000 250.000 25.00 9.614
SEQ: 611 GROSS ULT. MB & MMF 0.000 250.000 30.00 6.113
INIT W.I 28.309 LIFE/YR 16.333 RATE-OF-RETURN, % 100.00
INIT N.I 24.770 OPC/W 559 UNDISC NET/INVEST 18.01
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 250.000 0.000 61.925 0.000 2.950 182.677 12.344 7.898 28.131 134.306
TOT 0.000 250.000 0.000 61.925 0.000 2.950 182.677 12.344 7.898 28.131 134.306
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 134.306 42.952
TOT 134.306 42.952
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
A-PROVED DEVE PRODUCING
<TABLE>
<CAPTION>
<S> <C>
BUSH 14-15L P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 39.972
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 32.616
LEWIS GROSS CUM. MB & MMF 0.850 1750.263 20.00 27.645
14 18S 14W GROSS RES. MB & MMF 0.000 166.411 25.00 24.085
SEQ: 334 GROSS ULT. MB & MMF 0.850 1916.674 30.00 21.418
INIT W.I 28.309 LIFE/YR 28.667 RATE-OF-RETURN, % 100.00
INIT N.I 24.770 OPC/W 313 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.664 0.000 1.403 0.000 2.950 4.139 0.443 0.000 0.637 3.058
1997 0.000 12.915 0.000 3.199 0.000 2.950 9.437 1.063 0.000 1.454 6.920
1998 0.000 12.011 0.000 2.975 0.000 2.950 8.776 1.063 0.000 1.352 6.362
1999 0.000 11.170 0.000 2.767 0.000 2.950 8.162 1.063 0.000 1.257 5.842
2000 0.000 10.388 0.000 2.573 0.000 2.950 7.591 1.063 0.000 1.169 5.358
2001 0.000 9.661 0.000 2.393 0.000 2.950 7.059 1.063 0.000 1.087 4.909
2002 0.000 8.985 0.000 2.225 0.000 2.950 6.565 1.063 0.000 1.012 4.491
2003 0.000 8.356 0.000 2.070 0.000 2.950 6.106 1.063 0.000 0.941 4.102
2004 0.000 7.771 0.000 1.925 0.000 2.950 5.678 1.063 0.000 0.875 3.741
2005 0.000 7.227 0.000 1.790 0.000 2.950 5.281 1.063 0.000 0.813 3.404
SUB 0.000 94.148 0.000 23.320 0.000 2.950 68.794 10.010 0.000 10.597 48.187
REM 0.000 72.265 0.000 17.900 0.000 2.950 52.806 20.463 0.000 8.132 24.209
TOT 0.000 166.413 0.000 41.220 0.000 2.950 121.600 30.473 0.000 18.729 72.396
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.058 2.999
1997 9.978 6.348
1998 16.340 5.305
1999 22.182 4.429
2000 27.540 3.693
2001 32.449 3.076
2002 36.940 2.558
2003 41.042 2.124
2004 44.783 1.761
2005 48.187 1.457
SUB 48.187 33.750
REM 72.396 6.222
TOT 72.396 39.972
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BUSH DAVID 14-4 1C* P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 3.370
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 3.196
CARTER GROSS CUM. MB & MMF 0.951 2033.020 20.00 3.042
14 18S 14W GROSS RES. MB & MMF 0.000 41.991 25.00 2.906
SEQ: 421 GROSS ULT. MB & MMF 0.951 2075.011 30.00 2.784
INIT W.I 17.698 LIFE/YR 4.083 RATE-OF-RETURN, % 100.00
INIT N.I 15.486 OPC/W 1421 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.356 0.000 0.829 0.000 2.930 2.430 1.257 0.000 0.374 0.799
1997 0.000 11.748 0.000 1.819 0.000 2.930 5.331 3.018 0.000 0.821 1.492
1998 0.000 10.339 0.000 1.601 0.000 2.930 4.691 3.018 0.000 0.722 0.951
1999 0.000 9.098 0.000 1.409 0.000 2.930 4.128 3.018 0.000 0.636 0.475
2000 0.000 5.450 0.000 0.844 0.000 2.930 2.473 2.012 0.000 0.381 0.080
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 41.991 0.000 6.503 0.000 2.930 19.053 12.323 0.000 2.934 3.797
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 41.991 0.000 6.503 0.000 2.930 19.053 12.323 0.000 2.934 3.797
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.799 0.783
1997 2.291 1.372
1998 3.242 0.796
1999 3.717 0.362
2000 3.797 0.057
2001 3.797 0.000
2002 3.797 0.000
2003 3.797 0.000
2004 3.797 0.000
2005 3.797 0.000
SUB 3.797 3.370
REM 3.797 0.000
TOT 3.797 3.370
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
A-PROVED DEVE PRODUCING
<TABLE>
<S> <C>
BUSH DAVID 14-4 1T P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 66.788
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 60.128
CARTER GROSS CUM. MB & MMF 0.000 0.000 20.00 54.774
14 18S 14W GROSS RES. MB & MMF 0.000 311.188 25.00 50.393
SEQ: 706 GROSS ULT. MB & MMF 0.000 311.188 30.00 46.750
INIT W.I 17.698 LIFE/YR 11.000 RATE-OF-RETURN, % 100.00
INIT N.I 15.486 OPC/W 1421 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 27.833 0.000 4.310 0.000 2.930 12.629 1.257 0.000 1.945 9.427
1997 0.000 58.119 0.000 9.000 0.000 2.930 26.371 3.018 0.000 4.061 19.292
1998 0.000 47.658 0.000 7.380 0.000 2.930 21.624 3.018 0.000 3.330 15.276
1999 0.000 39.079 0.000 6.052 0.000 2.930 17.732 3.018 0.000 2.731 11.983
2000 0.000 32.045 0.000 4.962 0.000 2.930 14.540 3.018 0.000 2.239 9.283
2001 0.000 26.277 0.000 4.069 0.000 2.930 11.923 3.018 0.000 1.836 7.069
2002 0.000 21.547 0.000 3.337 0.000 2.930 9.777 3.018 0.000 1.506 5.253
2003 0.000 17.669 0.000 2.736 0.000 2.930 8.017 3.018 0.000 1.235 3.764
2004 0.000 14.488 0.000 2.244 0.000 2.930 6.574 3.018 0.000 1.012 2.544
2005 0.000 11.880 0.000 1.840 0.000 2.930 5.391 3.018 0.000 0.830 1.543
SUB 0.000 296.595 0.000 45.931 0.000 2.930 134.578 28.419 0.000 20.725 85.434
REM 0.000 14.593 0.000 2.260 0.000 2.930 6.621 4.778 0.000 1.020 0.824
TOT 0.000 311.188 0.000 48.191 0.000 2.930 141.199 33.197 0.000 21.745 86.258
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.427 9.245
1997 28.719 17.717
1998 43.995 12.754
1999 55.978 9.096
2000 65.261 6.407
2001 72.330 4.436
2002 77.583 2.997
2003 81.347 1.953
2004 83.891 1.201
2005 85.434 0.663
SUB 85.434 66.469
REM 86.258 0.320
TOT 86.258 66.789
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BUTTS J T 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 15.350
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 13.889
CARTER GROSS CUM. MB & MMF 0.000 6899.686 20.00 12.696
6 15S 13W GROSS RES. MB & MMF 0.000 135.984 25.00 11.706
SEQ: 363 GROSS ULT. MB & MMF 0.000 7035.670 30.00 10.873
INIT W.I 18.750 LIFE/YR 8.750 RATE-OF-RETURN, % 100.00
INIT N.I 16.092 OPC/W 1550 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.698 0.000 1.561 0.000 2.700 4.214 1.453 0.000 0.649 2.112
1997 0.000 21.610 0.000 3.477 0.000 2.700 9.389 3.488 0.000 1.446 4.456
1998 0.000 19.449 0.000 3.130 0.000 2.700 8.450 3.488 0.000 1.301 3.661
1999 0.000 17.504 0.000 2.817 0.000 2.700 7.605 3.488 0.000 1.172 2.947
2000 0.000 15.754 0.000 2.535 0.000 2.700 6.845 3.488 0.000 1.054 2.303
2001 0.000 14.178 0.000 2.282 0.000 2.700 6.160 3.488 0.000 0.949 1.724
2002 0.000 12.760 0.000 2.053 0.000 2.700 5.544 3.488 0.000 0.853 1.203
2003 0.000 11.484 0.000 1.848 0.000 2.700 4.990 3.488 0.000 0.768 0.734
2004 0.000 10.336 0.000 1.663 0.000 2.700 4.491 3.488 0.000 0.692 0.312
2005 0.000 3.210 0.000 0.517 0.000 2.700 1.395 1.163 0.000 0.214 0.018
SUB 0.000 135.983 0.000 21.883 0.000 2.700 59.083 30.520 0.000 9.098 19.470
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 135.983 0.000 21.883 0.000 2.700 59.083 30.520 0.000 9.098 19.470
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.112 2.071
1997 6.568 4.091
1998 10.229 3.056
1999 13.176 2.236
2000 15.479 1.590
2001 17.203 1.082
2002 18.406 0.687
2003 19.140 0.382
2004 19.452 0.148
2005 19.470 0.008
SUB 19.470 15.351
REM 19.470 0.000
TOT 19.470 15.351
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CHADLEY 27-9 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
DAVIS CHAPEL NE ---------- ---------- 10.00 8.269
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 7.856
CARTER GROSS CUM. MB & MMF 0.000 2426.511 20.00 7.491
27 14S 11W GROSS RES. MB & MMF 0.000 56.696 25.00 7.165
SEQ: 364 GROSS ULT. MB & MMF 0.000 2483.207 30.00 6.873
INIT W.I 73.403 LIFE/YR 3.833 RATE-OF-RETURN, % 100.00
INIT N.I 48.184 OPC/W 1546 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.076 0.000 3.410 0.000 2.660 9.069 5.674 0.000 1.397 1.999
1997 0.000 16.013 0.000 7.716 0.000 2.660 20.523 13.618 0.000 3.160 3.745
1998 0.000 14.732 0.000 7.098 0.000 2.660 18.881 13.618 0.000 2.908 2.356
1999 0.000 13.553 0.000 6.530 0.000 2.660 17.371 13.618 0.000 2.675 1.078
2000 0.000 5.322 0.000 2.564 0.000 2.660 6.821 5.674 0.000 1.050 0.097
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 56.696 0.000 27.318 0.000 2.660 72.665 52.202 0.000 11.190 9.275
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 56.696 0.000 27.318 0.000 2.660 72.665 52.202 0.000 11.190 9.275
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.999 1.960
1997 5.744 3.443
1998 8.100 1.972
1999 9.178 0.824
2000 9.275 0.069
2001 9.275 0.000
2002 9.275 0.000
2003 9.275 0.000
2004 9.275 0.000
2005 9.275 0.000
SUB 9.275 8.268
REM 9.275 0.000
TOT 9.275 8.268
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
COBB 12-9 OIL GAS P.W. % P.W., M$
HOWELL PETROLEUM CORP ---------- ---------- ------ --------
COAL FIRE CREEK 10.00 0.000
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
12 18S 15W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 643 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES, LAST PRODUCTION 11/93. INIT W.I 25.484 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 19.292 OPC/W 1391 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
<S> <C>
A-PROVED DEVE PRODUCING
COBB VICK 2-10 1 NW SE P.W. % P.W., M$
ROUNDTREE & ASSOC INC OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 2.453
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 2.275
CARTER GROSS CUM. MB & MMF 0.038 357.712 20.00 2.124
2 15S 14W GROSS RES. MB & MMF 0.000 61.648 25.00 1.994
SEQ: 422 GROSS ULT. MB & MMF 0.038 419.360 30.00 1.881
INIT W.I 10.277 LIFE/YR 5.917 RATE-OF-RETURN, % 100.00
INIT N.I 8.804 OPC/W 1350 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.406 0.000 0.476 0.000 2.780 1.323 0.694 0.000 0.203 0.426
1997 0.000 12.232 0.000 1.077 0.000 2.780 2.994 1.665 0.000 0.461 0.868
1998 0.000 11.254 0.000 0.991 0.000 2.780 2.754 1.665 0.000 0.424 0.665
1999 0.000 10.353 0.000 0.912 0.000 2.780 2.534 1.665 0.000 0.390 0.479
2000 0.000 9.525 0.000 0.839 0.000 2.780 2.331 1.665 0.000 0.359 0.307
2001 0.000 8.763 0.000 0.772 0.000 2.780 2.145 1.665 0.000 0.330 0.150
2002 0.000 4.115 0.000 0.362 0.000 2.780 1.007 0.832 0.000 0.155 0.020
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 61.648 0.000 5.428 0.000 2.780 15.088 9.851 0.000 2.322 2.915
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 61.648 0.000 5.428 0.000 2.780 15.088 9.851 0.000 2.322 2.915
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.426 0.417
1997 1.294 0.797
1998 1.959 0.556
1999 2.438 0.364
2000 2.745 0.213
2001 2.895 0.094
2002 2.915 0.012
2003 2.915 0.000
2004 2.915 0.000
2005 2.915 0.000
SUB 2.915 2.453
REM 2.915 0.000
TOT 2.915 2.453
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CUNNINGHAM 16-7 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 148.725
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 124.327
CARTER GROSS CUM. MB & MMF 3.912 10223.869 20.00 107.281
16 18S 14W GROSS RES. MB & MMF 0.000 906.175 25.00 94.766
SEQ: 331 GROSS ULT. MB & MMF 3.912 11130.044 30.00 85.211
INIT W.I 20.132 LIFE/YR 24.750 RATE-OF-RETURN, % 100.00
INIT N.I 16.216 OPC/W 1708 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 40.439 0.000 6.557 0.000 2.810 18.426 1.719 0.000
1997 0.000 87.758 0.000 14.230 0.000 2.810 39.988 4.126 0.000
1998 0.000 77.071 0.000 12.498 0.000 2.810 35.118 4.126 0.000
1999 0.000 68.614 0.000 11.126 0.000 2.810 31.265 4.126 0.000
2000 0.000 61.763 0.000 10.015 0.000 2.810 28.143 4.126 0.000
2001 0.000 56.105 0.000 9.098 0.000 2.810 25.565 4.126 0.000
2002 0.000 51.375 0.000 8.331 0.000 2.810 23.410 4.126 0.000
2003 0.000 47.300 0.000 7.670 0.000 2.810 21.553 4.126 0.000
2004 0.000 43.516 0.000 7.056 0.000 2.810 19.828 4.126 0.000
2005 0.000 40.035 0.000 6.492 0.000 2.810 18.242 4.126 0.000
SUB 0.000 573.976 0.000 93.073 0.000 2.810 261.538 38.853 0.000
REM 0.000 332.198 0.000 53.868 0.000 2.810 151.368 63.265 0.000
TOT 0.000 906.174 0.000 146.941 0.000 2.810 412.906 102.118 0.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 2.838 13.869 13.869 13.600
1997 6.158 29.703 43.572 27.262
1998 5.408 25.584 69.156 21.344
1999 4.814 22.324 91.480 16.930
2000 4.334 19.682 111.162 13.569
2001 3.936 17.501 128.663 10.968
2002 3.605 15.678 144.341 8.931
2003 3.319 14.107 158.448 7.306
2004 3.054 12.648 171.096 5.955
2005 2.809 11.306 182.402 4.839
SUB 40.275 182.402 182.402 130.704
REM 23.311 64.788 247.190 18.021
TOT 63.586 247.190 247.190 148.725
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATION OF THE REPORT
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
CUNNINGHAM 16-7 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 304.179
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 199.463
LEWIS GROSS CUM. MB & MMF 0.000 0.000 20.00 133.304
16 18s 14W GROSS RES. MB & MMF 0.000 2000.000 25.00 90.652
SEQ: 613 GROSS ULT. MB & MMF 0.000 2000.000 30.00 62.639
INIT W.I 20.132 LIFE/YR 11.167 RATE-OF-RETURN, % 100.00
INIT N.I 16.216 OPC/W 1708 UNDISC NET/INVEST 150.93
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 966.854 0.000 156.781 0.000 2.810 440.554 4.126 5.033
SUB 0.000 966.854 0.000 156.781 0.000 2.810 440.554 4.126 5.033
REM 0.000 1033.145 0.000 167.530 0.000 2.810 470.760 7.221 0.000
TOT 0.000 1999.999 0.000 324.311 0.000 2.810 911.314 11.347 5.033
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000
2005 67.845 363.550 363.550 155.892
SUB 67.845 363.550 363.550 155.892
REM 72.497 391.042 754.592 148.287
TOT 140.342 754.592 754.592 304.179
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996.
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
CUNNINGHAM 16-7 BP2 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 82.138
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 46.359
BENTON GROSS CUM. MB & MMF 0.000 0.000 20.00 26.912
16 18S 14W GROSS RES. MB & MMF 0.000 849.301 25.00 16.025
SEQ: 614 GROSS ULT. MB & MMF 0.000 849.301 30.00 9.765
INIT W.I 20.132 LIFE/YR 19.417 RATE-OF-RETURN, % 100.00
INIT N.I 16.216 OPC/W 1708 UNDISC NET/INVEST 32.60
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 849.301 0.000 137.719 0.000 2.810 386.990 34.040 8.999 59.598 284.353
TOT 0.000 849.301 0.000 137.719 0.000 2.810 386.990 34.040 8.999 59.598 284.353
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 284.353 82.137
TOT 284.353 82.137
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
CUNNINGHAM 16-7 BP3 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 8.389
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 3.159
FAYETTE GROSS CUM. MB & MMF 0.000 0.000 20.00 1.246
16 18S 14W GROSS RES. MB & MMF 0.000 299.492 25.00 0.513
SEQ: 615 GROSS ULT. MB & MMF 0.000 299.492 30.00 0.219
INIT W.I 20.132 LIFE/YR 28.333 RATE-OF-RETURN, % 100.00
INIT N.I 16.216 OPC/W 1708 UNDISC NET/INVEST 8.68
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 299.493 0.000 48.564 0.000 2.810 136.468 36.790 9.059 21.016 69.597
TOT 0.000 299.493 0.000 48.564 0.000 2.810 136.468 36.790 9.059 21.016 69.597
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 69.597 8.390
TOT 69.597 8.390
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 11-4 NW NW P.W. % P.W., M$
BROWNING & WELCH INC OIL GAS ------ --------
DAVIS CHAPEL ---------- ---------- 10.00 0.541
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.521
CARTER GROSS CUM. MB & MMF 0.000 1844.124 20.00 0.503
11 15S 11W GROSS RES. MB & MMF 0.000 51.479 25.00 0.486
SEQ: 423 GROSS ULT. MB & MMF 0.000 1895.603 30.00 0.471
INIT W.I 5.195 LIFE/YR 2.833 RATE-OF-RETURN, % 100.00
INIT N.I 4.546 OPC/W 2256 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 8.545 0.000 0.388 0.000 2.310 0.897 0.586 0.000 0.138 0.173
1997 0.000 19.001 0.000 0.864 0.000 2.310 1.995 1.406 0.000 0.308 0.282
1998 0.000 17.211 0.000 0.782 0.000 2.310 1.807 1.406 0.000 0.279 0.123
1999 0.000 6.723 0.000 0.306 0.000 2.310 0.706 0.586 0.000 0.109 0.011
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 51.480 0.000 2.340 0.000 2.310 5.405 3.984 0.000 0.834 0.589
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 51.480 0.000 2.340 0.000 2.310 5.405 3.984 0.000 0.834 0.589
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.173 0.170
1997 0.455 0.259
1998 0.578 0.103
1999 0.589 0.009
2000 0.589 0.000
2001 0.589 0.000
2002 0.589 0.000
2003 0.589 0.000
2004 0.589 0.000
2005 0.589 0.000
SUB 0.589 0.541
REM 0.589 0.000
TOT 0.589 0.541
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 14-1 P.W. % P.W., M$
HOWELL PETROLEUM CORP OIL GAS ------ --------
DAVIS CHAPEL ---------- ---------- 10.00 13.892
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 12.029
CARTER GROSS CUM. MB & MMF 0.000 1081.740 20.00 10.626
14 15S 14W GROSS RES. MB & MMF 0.000 336.985 25.00 9.539
SEQ: 424 GROSS ULT. MB & MMF 0.000 1418.725 30.00 8.674
INIT W.I 8.203 LIFE/YR 14.917 RATE-OF-RETURN, % 100.00
INIT N.I 6.726 OPC/W 1974 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 15.658 0.000 1.053 0.000 2.560 2.696 0.810 0.000 0.416 1.471
1997 0.000 35.029 0.000 2.356 0.000 2.560 6.031 1.943 0.000 0.929 3.159
1998 0.000 31.917 0.000 2.147 0.000 2.560 5.495 1.943 0.000 0.847 2.706
1999 0.000 29.291 0.000 1.970 0.000 2.560 5.043 1.943 0.000 0.776 2.323
2000 0.000 27.048 0.000 1.819 0.000 2.560 4.657 1.943 0.000 0.717 1.997
2001 0.000 25.110 0.000 1.689 0.000 2.560 4.323 1.943 0.000 0.665 1.714
2002 0.000 23.420 0.000 1.575 0.000 2.560 4.032 1.943 0.000 0.621 1.468
2003 0.000 21.933 0.000 1.475 0.000 2.560 3.776 1.943 0.000 0.582 1.252
2004 0.000 20.617 0.000 1.387 0.000 2.560 3.550 1.943 0.000 0.547 1.060
2005 0.000 19.380 0.000 1.303 0.000 2.560 3.337 1.943 0.000 0.514 0.880
SUB 0.000 249.403 0.000 16.774 0.000 2.560 42.940 18.297 0.000 6.614 18.030
REM 0.000 87.580 0.000 5.890 0.000 2.560 15.079 10.687 0.000 2.323 2.070
TOT 0.000 336.983 0.000 22.664 0.000 2.560 58.019 28.984 0.000 8.937 20.100
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.471 1.443
1997 4.630 2.900
1998 7.336 2.258
1999 9.659 1.762
2000 11.656 1.377
2001 13.370 1.075
2002 14.838 0.837
2003 16.090 0.649
2004 17.150 0.499
2005 18.030 0.377
SUB 18.030 13.177
REM 20.100 0.716
TOT 20.100 13.893
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 2-12L P.W. % P.W., M$
BROWNING & WELCH INC OIL GAS ------ --------
DAVIS CHAPEL ---------- ---------- 10.00 1.021
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.920
CARTER GROSS CUM. MB & MMF 0.000 2149.081 20.00 0.839
2 15S 11W GROSS RES. MB & MMF 0.000 120.745 25.00 0.771
SEQ: 425 GROSS ULT. MB & MMF 0.000 2269.826 30.00 0.715
INIT W.I 2.584 LIFE/YR 8.667 RATE-OF-RETURN, % 100.00
INIT N.I 2.261 OPC/W 1500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.404 0.000 0.167 0.000 2.310 0.387 0.194 0.000 0.060 0.133
1997 0.000 17.010 0.000 0.385 0.000 2.310 0.888 0.465 0.000 0.137 0.286
1998 0.000 15.990 0.000 0.362 0.000 2.310 0.835 0.465 0.000 0.129 0.241
1999 0.000 15.030 0.000 0.340 0.000 2.310 0.785 0.465 0.000 0.121 0.199
2000 0.000 14.128 0.000 0.319 0.000 2.310 0.738 0.465 0.000 0.114 0.159
2001 0.000 13.281 0.000 0.300 0.000 2.310 0.694 0.465 0.000 0.106 0.122
2002 0.000 12.484 0.000 0.282 0.000 2.310 0.652 0.465 0.000 0.100 0.086
2003 0.000 11.735 0.000 0.265 0.000 2.310 0.613 0.465 0.000 0.094 0.053
2004 0.000 11.031 0.000 0.249 0.000 2.310 0.576 0.465 0.000 0.089 0.022
2005 0.000 2.653 0.000 0.060 0.000 2.310 0.139 0.116 0.000 0.021 0.001
SUB 0.000 120.746 0.000 2.730 0.000 2.310 6.307 4.030 0.000 0.971 1.302
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 120.746 0.000 2.730 0.000 2.310 6.307 4.030 0.000 0.971 1.302
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.133 0.131
1997 0.419 0.263
1998 0.660 0.201
1999 0.859 0.151
2000 1.018 0.110
2001 1.140 0.076
2002 1.226 0.049
2003 1.279 0.028
2004 1.301 0.011
2005 1.302 0.000
SUB 1.302 1.020
REM 1.302 0.000
TOT 1.302 1.020
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 2-14 P.W. % P.W., M$
SAMSON RESOURCES CO OIL GAS ------ --------
MUSGROVE CREEK ---------- ---------- 10.00 2.372
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 2.226
CARTER GROSS CUM. MB & MMF 0.000 5784.002 20.00 2.100
2 15S 12W GROSS RES. MB & MMF 0.000 97.840 25.00 1.989
SEQ: 426 GROSS ULT. MB & MMF 0.000 5881.862 30.00 1.891
INIT W.I 9.712 LIFE/YR 4.883 RATE-OF-RETURN, % 100.00
INIT N.I 7.494 OPC/W 2443 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.850 0.000 0.738 0.000 2.660 1.964 1.186 0.000 0.302 0.475
1997 0.000 22.460 0.000 1.683 0.000 2.660 4.477 2.847 0.000 0.690 0.941
1998 0.000 20.888 0.000 1.565 0.000 2.660 4.164 2.847 0.000 0.641 0.675
1999 0.000 19.426 0.000 1.456 0.000 2.660 3.872 2.847 0.000 0.596 0.429
2000 0.000 18.066 0.000 1.354 0.000 2.660 3.601 2.847 0.000 0.554 0.200
2001 0.000 7.149 0.000 0.536 0.000 2.660 1.425 1.186 0.000 0.220 0.019
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 97.839 0.000 7.332 0.000 2.660 19.503 13.760 0.000 3.003 2.739
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 97.839 0.000 7.332 0.000 2.660 19.503 13.760 0.000 3.003 2.739
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.475 0.466
1997 1.416 0.864
1998 2.091 0.565
1999 2.520 0.326
2000 2.720 0.139
2001 2.739 0.013
2002 2.739 0.000
2003 2.739 0.000
2004 2.739 0.000
2005 2.739 0.000
SUB 2.739 2.373
REM 2.739 0.000
TOT 2.739 2.373
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 26-13 SW SW P.W. % P.W., M$
SOUTHWEST ROYALTIES INC OIL GAS ------ --------
DAVIS CHAPEL NE ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.008 1308.530 20.00 0.000
26 14S IIW GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 427 GROSS ULT. MB & MMF 0.008 1308.530 30.00 0.000
INIT W.I 15.313 LIFE/YR 0.000 RATE-OF-RETURN, % 100.00
INIT N.I 11.582 OPC/W 1582 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimatedd production, as applicable. calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 26-4 1 NW NW P.W. % P.W., M$
SOUTHWEST ROYALTIES INC OIL GAS ------ --------
DAVIS CHAPEL NE ---------- ---------- 10.00 27.278
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 23.472
CARTER GROSS CUM. MB & MMF 0.000 1249.882 20.00 20.667
26 14S 11W GROSS RES. MB & MMF 0.000 344.492 25.00 18.526
SEQ: 428 GROSS ULT. MB & MMF 0.000 1594.374 30.00 16.844
INIT W.I 15.313 LIFE/YR 17.750 RATE-OF-RETURN, % 100.00
INIT N.I 11.582 OPC/W 1319 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 16.450 0.000 1.905 0.000 2.480 4.725
1997 0.000 35.603 0.000 4.123 0.000 2.480 10.226
1998 0.000 31.253 0.000 3.620 0.000 2.480 8.977
1999 0.000 27.888 0.000 3.230 0.000 2.480 8.010
2000 0.000 25.204 0.000 2.919 0.000 2.480 7.239
2001 0.000 23.011 0.000 2.665 0.000 2.480 6.609
2002 0.000 21.183 0.000 2.453 0.000 2.480 6.084
2003 0.000 19.637 0.000 2.274 0.000 2.480 5.640
2004 0.000 18.310 0.000 2.121 0.000 2.480 5.259
2005 0.000 17.177 0.000 1.989 0.000 2.480 4.934
SUB 0.000 235.716 0.000 27.300 0.000 2.480 67.703
REM 0.000 108.776 0.000 12.598 0.000 2.480 31.243
TOT 0.000 344.492 0.000 39.898 0.000 2.480 98.946
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 1.010 0.000 0.727 2.987 2.987 2.930
1997 2.424 0.000 1.575 6.228 9.215 5.717
1998 2.424 0.000 1.383 5.170 14.385 4.315
1999 2.424 0.000 1.234 4.353 18.738 3.302
2000 2.424 0.000 1.115 3.701 22.439 2.552
2001 2.424 0.000 1.018 3.168 25.607 1.986
2002 2.424 0.000 0.937 2.724 28.331 1.552
2003 2.424 0.000 0.869 2.348 30.679 1.216
2004 2.424 0.000 0.810 2.025 32.704 0.954
2005 2.424 0.000 0.759 1.750 34.454 0.749
SUB 22.826 0.000 10.427 34.454 34.454 25.273
REM 20.200 0.000 4.809 6.235 40.689 2.006
TOT 43.026 0.000 15.236 40.689 40.689 27.279
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 7 1 NE NE P.W. % P.W., M$
LOMAK OPERATING CO OIL GAS ------ --------
BLUFF ---------- ---------- 10.00 168.248
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 143.509
GILMER GROSS CUM. MB & MMF 86.105 12.234 20.00 125.796
7 14S 13W GROSS RES. MB & MMF 55.882 0.000 25.00 112.480
SEQ: 285 GROSS ULT. MB & MMF 141.987 12.234 30.00 102.096
INIT W.I 35.000 LIFE/YR 40.833 RATE-OF-RETURN, % 100.00
INIT N.I 28.696 OPC/W 1587 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.664 0.000 1.051 0.000 19.650 0.000 20.658 0.000 0.000
1997 7.844 0.000 2.251 0.000 19.650 0.000 44.229 0.000 0.000
1998 6.667 0.000 1.913 0.000 19.650 0.000 37.595 0.000 0.000
1999 5.667 0.000 1.626 0.000 19.650 0.000 31.955 0.000 0.000
2000 4.817 0.000 1.382 0.000 19.650 0.000 27.162 0.000 0.000
2001 4.094 0.000 1.175 0.000 19.650 0.000 23.088 0.000 0.000
2002 3.480 0.000 0.999 0.000 19.650 0.000 19.625 0.000 0.000
2003 2.958 0.000 0.849 0.000 19.650 0.000 16.681 0.000 0.000
2004 2.515 0.000 0.722 0.000 19.650 0.000 14.179 0.000 0.000
2005 2.137 0.000 0.613 0.000 19.650 0.000 12.052 0.000 0.000
SUB 43.843 0.000 12.581 0.000 19.650 0.000 247.224 0.000 0.000
REM 12.040 0.000 3.454 0.000 19.650 0.000 67.882 0.000 0.000
TOT 55.883 0.000 16.036 0.000 19.650 0.000 315.106 0.000 0.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 3.182 17.477 17.477 17.138
1997 6.811 37.418 54.895 34.344
1998 5.789 31.805 86.700 26.539
1999 4.922 27.034 113.734 20.507
2000 4.183 22.979 136.713 15.846
2001 3.556 19.532 156.245 12.245
2002 3.022 16.602 172.847 9.462
2003 2.569 14.112 186.959 7.312
2004 2.184 11.995 198.954 5.650
2005 1.856 10.196 209.150 4.366
SUB 38.074 209.150 209.150 153.409
REM 10.455 57.429 266.579 14.839
TOT 48.529 266.579 266.579 168.248
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER 9-6 P.W. % P.W., M$
ROUNDTREE & ASSOC INC OIL GAS ------ --------
DAVIS CHAPEL ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.000 1312.151 20.00 0.000
9 15S 11W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 429 GROSS ULT. MB & MMF 0.000 1312.151 30.00 0.000
INIT W.I 2.297 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 1.400 OPC/W 1471 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER MORGAN 8 4 P.W. % P.W., M$
ANDERMAN/SMITH OPERG CO OIL GAS ------ --------
BLUFF ---------- ---------- 10.00 24.869
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 19.683
GILMER GROSS CUM. MB & MMF 51.244 7.697 20.00 16.359
8 14S 13W GROSS RES. MB & MMF 128.681 0.000 25.00 14.062
SEQ: 430 GROSS ULT. MB & MMF 179.925 7.697 30.00 12.383
INIT W.I 4.375 LIFE/YR 36.500 RATE-OF-RETURN, % 100.00
INIT N.I 3.621 OPC/W 1392 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.216 0.000 0.116 0.000 19.910 0.000 2.318 0.305 0.000 0.357 1.657
1997 7.443 0.000 0.270 0.000 19.910 0.000 5.366 0.731 0.000 0.827 3.809
1998 7.070 0.000 0.256 0.000 19.910 0.000 5.098 0.731 0.000 0.785 3.582
1999 6.717 0.000 0.243 0.000 19.910 0.000 4.843 0.731 0.000 0.746 3.366
2000 6.381 0.000 0.231 0.000 19.910 0.000 4.601 0.731 0.000 0.708 3.162
2001 6.062 0.000 0.220 0.000 19.910 0.000 4.371 0.731 0.000 0.673 2.967
2002 5.759 0.000 0.209 0.000 19.910 0.000 4.152 0.731 0.000 0.639 2.782
2003 5.471 0.000 0.198 0.000 19.910 0.000 3.945 0.731 0.000 0.607 2.606
2004 5.197 0.000 0.188 0.000 19.910 0.000 3.747 0.731 0.000 0.577 2.440
2005 4.938 0.000 0.179 0.000 19.910 0.000 3.560 0.731 0.000 0.548 2.281
SUB 58.254 0.000 2.110 0.000 19.910 0.000 42.001 6.884 0.000 6.467 28.652
REM 70.429 0.000 2.550 0.000 19.910 0.000 50.781 19.798 0.000 7.819 23.168
TOT 128.683 0.000 4.660 0.000 19.910 0.000 92.782 26.682 0.000 14.286 51.820
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---M$)--- ---(M$)----
<S> <C> <C>
1996 1.657 1.625
1997 5.466 3.493
1998 9.048 2.987
1999 12.414 2.552
2000 15.576 2.179
2001 18.543 1.859
2002 21.325 1.584
2003 23.931 1.349
2004 26.371 1.148
2005 28.652 0.976
SUB 28.652 19.752
REM 51.820 5.115
TOT 51.820 24.867
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FOWLER, JULIA SIZEMORE 6-16 #1 P.W. % P.W., M$
BROWNING & WELCH INC OIL GAS ------ --------
BLUFF ---------- ---------- 10.00 0.946
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 0.918
GILMER GROSS CUM. MB & MMF 25.431 0.000 20.00 0.892
6 14S 13W GROSS RES. MB & MMF 5.485 0.000 25.00 0.868
SEQ: 442 GROSS ULT. MB & MMF 30.916 0.000 30.00 0.846
INIT W.I 3.500 LIFE/YR 2.583 RATE-OF-RETURN, % 100.00
INIT N.I 3.063 OPC/W 1548 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS
OIL GAS OIL GAS PRICE PRICE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)--
<S> <C> <C> <C> <C> <C> <C>
1996 1.337 0.000 0.041 0.000 18.940 0.000
1997 2.315 0.000 0.071 0.000 18.940 0.000
1998 1.608 0.000 0.049 0.000 18.940 0.000
1999 0.225 0.000 0.007 0.000 18.940 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000
SUB 5.485 0.000 0.168 0.000 18.940 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000
TOT 5.485 0.000 0.168 0.000 18.940 0.000
<CAPTION>
OPERATING OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
INCOME EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.776 0.271 0.000 0.120 0.385 0.385 0.378
1997 1.343 0.650 0.000 0.207 0.486 0.871 0.449
1998 0.933 0.650 0.000 0.143 0.139 1.010 0.118
1999 0.130 0.108 0.000 0.020 0.002 1.012 0.001
2000 0.000 0.000 0.000 0.000 0.000 1.012 0.000
2001 0.000 0.000 0.000 0.000 0.000 1.012 0.000
2002 0.000 0.000 0.000 0.000 0.000 1.012 0.000
2003 0.000 0.000 0.000 0.000 0.000 1.012 0.000
2004 0.000 0.000 0.000 0.000 0.000 1.012 0.000
2005 0.000 0.000 0.000 0.000 0.000 1.012 0.000
SUB 3.182 1.679 0.000 0.490 1.012 1.012 0.946
REM 0.000 0.000 0.000 0.000 0.000 1.012 0.000
TOT 3.182 1.679 0.000 0.490 1.012 1.012 0.946
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FULLERTON 25-13 P.W. % P.W., M$
HOWELL PETROLEUM CORP OIL GAS ------ --------
MUSGROVE CREEK ---------- ---------- 10.00 0.422
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.402
CARTER GROSS CUM. MB & MMF 0.000 1427.048 20.00 0.385
25 15S 12W GROSS RES. MB & MMF 0.000 62.516 25.00 0.369
SEQ: 431 GROSS ULT. MB & MMF 0.000 1489.564 30.00 0.355
INIT W.I 2.447 LIFE/YR 3.667 RATE-OF-RETURN, % 100.00
INIT N.I 2.139 OPC/W 2412 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 8.301 0.000 0.178 0.000 2.710 0.481 0.295 0.000 0.074 0.112
1997 0.000 18.467 0.000 0.395 0.000 2.710 1.070 0.708 0.000 0.165 0.197
1998 0.000 16.750 0.000 0.358 0.000 2.710 0.971 0.708 0.000 0.149 0.113
1999 0.000 15.350 0.000 0.328 0.000 2.710 0.890 0.708 0.000 0.137 0.044
2000 0.000 3.647 0.000 0.078 0.000 2.710 0.211 0.177 0.000 0.032 0.002
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 62.515 0.000 1.337 0.000 2.710 3.623 2.596 0.000 0.557 0.468
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 62.515 0.000 1.337 0.000 2.710 3.623 2.596 0.000 0.557 0.468
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.112 0.110
1997 0.309 0.182
1998 0.422 0.095
1999 0.466 0.034
2000 0.468 0.001
2001 0.468 0.000
2002 0.468 0.000
2003 0.468 0.000
2004 0.468 0.000
2005 0.468 0.000
SUB 0.468 0.422
REM 0.468 0.000
TOT 0.468 0.422
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GILMER 25-15 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 92.095
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 75.279
CARTER GROSS CUM. MB & MMF 0.304 4337.685 20.00 63.783
25 14S 14W GROSS RES. MB & MMF 0.000 357.082 25.00 55.504
SEQ: 376 GROSS ULT. MB & MMF 0.304 4694.767 30.00 49.288
INIT W.I 46.153 LIFE/YR 24.333 RATE-OF-RETURN, % 100.00
INIT N.I 38.527 OPC/W 1219 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 10.591 0.000 4.080 0.000 2.810 11.465 2.813 0.000 1.766 6.887
1997 0.000 24.513 0.000 9.444 0.000 2.810 26.538 6.751 0.000 4.087 15.700
1998 0.000 23.287 0.000 8.972 0.000 2.810 25.211 6.751 0.000 3.882 14.577
1999 0.000 22.123 0.000 8.523 0.000 2.810 23.950 6.751 0.000 3.688 13.511
2000 0.000 21.017 0.000 8.097 0.000 2.810 22.753 6.751 0.000 3.504 12.498
2001 0.000 19.966 0.000 7.692 0.000 2.810 21.615 6.751 0.000 3.328 11.535
2002 0.000 18.967 0.000 7.308 0.000 2.810 20.534 6.751 0.000 3.162 10.621
2003 0.000 18.019 0.000 6.942 0.000 2.810 19.508 6.751 0.000 3.004 9.752
2004 0.000 17.118 0.000 6.595 0.000 2.810 18.532 6.751 0.000 2.854 8.927
2005 0.000 16.262 0.000 6.265 0.000 2.810 17.606 6.751 0.000 2.712 8.143
SUB 0.000 191.863 0.000 73.918 0.000 2.810 207.712 63.572 0.000 31.987 112.151
REM 0.000 165.221 0.000 63.654 0.000 2.810 178.870 100.703 0.000 27.546 50.617
TOT 0.000 357.084 0.000 137.572 0.000 2.810 386.582 164.275 0.000 59.533 162.768
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 6.887 6.752
1997 22.587 14.400
1998 37.164 12.155
1999 50.675 10.242
2000 63.173 8.613
2001 74.708 7.227
2002 85.329 6.049
2003 95.081 5.050
2004 104.008 4.202
2005 112.151 3.485
SUB 112.151 78.175
REM 162.768 13.920
TOT 162.768 92.095
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GILMER, JUDE 35-7 1 P.W. % P.W., M$
ROUNDTREE & ASSOC INC OIL GAS ------ --------
WATSON CREEK EAST ---------- ---------- 10.00 2.022
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 1.578
CARTER GROSS CUM. MB & MMF 0.000 225.266 20.00 1.297
35 14S 15W GROSS RES. MB & MMF 0.000 340.308 25.00 1.106
SEQ: 634 GROSS ULT. MB & MMF 0.000 565.574 30.00 0.968
ORRI. INIT W.I 0.000 LIFE/YR 25.333 RATE-OF-RETURN, % 100.00
INIT N.I 0.686 OPC/W 1000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.894 0.000 0.068 0.000 2.180 0.148 0.000 0.000 0.023 0.125
1997 0.000 22.900 0.000 0.157 0.000 2.180 0.343 0.000 0.000 0.053 0.290
1998 0.000 21.755 0.000 0.149 0.000 2.180 0.326 0.000 0.000 0.051 0.275
1999 0.000 20.667 0.000 0.142 0.000 2.180 0.309 0.000 0.000 0.048 0.262
2000 0.000 19.634 0.000 0.135 0.000 2.180 0.294 0.000 0.000 0.045 0.249
2001 0.000 18.652 0.000 0.128 0.000 2.180 0.279 0.000 0.000 0.043 0.236
2002 0.000 17.720 0.000 0.122 0.000 2.180 0.265 0.000 0.000 0.041 0.224
2003 0.000 16.834 0.000 0.116 0.000 2.180 0.252 0.000 0.000 0.039 0.213
2004 0.000 15.992 0.000 0.110 0.000 2.180 0.239 0.000 0.000 0.037 0.202
2005 0.000 15.192 0.000 0.104 0.000 2.180 0.227 0.000 0.000 0.035 0.192
SUB 0.000 179.240 0.000 1.230 0.000 2.180 2.682 0.000 0.000 0.415 2.268
REM 0.000 161.066 0.000 1.106 0.000 2.180 2.410 0.000 0.000 0.374 2.040
TOT 0.000 340.306 0.000 2.336 0.000 2.180 5.092 0.000 0.000 0.789 4.308
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.125 0.123
1997 0.415 0.266
1998 0.690 0.230
1999 0.952 0.198
2000 1.201 0.171
2001 1.437 0.148
2002 1.661 0.128
2003 1.874 0.110
2004 2.076 0.095
2005 2.268 0.082
SUB 2.268 1.551
REM 4.308 0.469
TOT 4.308 2.020
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GRACE 35-2C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CHICKEN SWAMP BRANCH ---------- ---------- 10.00 1067.624
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 825.419
CARTER GROSS CUM. MB & MMF 5.197 1747.504 20.00 677.263
35 18S 15W GROSS RES. MB & MMF 0.000 2038.835 25.00 577.592
SEQ: 329 GROSS ULT. MB & MMF 5.197 3786.339 30.00 505.981
INIT W.I 70.000 LIFE/YR 40.000 RATE-OF-RETURN, % 100.00
INIT N.I 55.598 OPC/W 664 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 49.469 0.000 27.504 0.000 2.930 80.587 2.324 0.000 12.411 65.852
1997 0.000 114.501 0.000 63.660 0.000 2.930 186.524 5.578 0.000 28.724 152.221
1998 0.000 108.776 0.000 60.477 0.000 2.930 177.197 5.578 0.000 27.289 144.331
1999 0.000 103.337 0.000 57.453 0.000 2.930 168.338 5.578 0.000 25.924 136.836
2000 0.000 98.170 0.000 54.580 0.000 2.930 159.921 5.578 0.000 24.628 129.715
2001 0.000 93.262 0.000 51.851 0.000 2.930 151.925 5.578 0.000 23.396 122.951
2002 0.000 88.599 0.000 49.259 0.000 2.930 144.328 5.578 0.000 22.227 116.524
2003 0.000 84.169 0.000 46.796 0.000 2.930 137.112 5.578 0.000 21.115 110.419
2004 0.000 79.960 0.000 44.456 0.000 2.930 130.256 5.578 0.000 20.060 104.619
2005 0.000 75.962 0.000 42.233 0.000 2.930 123.744 5.578 0.000 19.056 99.109
SUB 0.000 896.205 0.000 498.270 0.000 2.930 1459.932 52.526 0.000 224.830 1182.577
REM 0.000 1142.630 0.000 635.277 0.000 2.930 1861.360 170.593 0.000 286.651 1404.129
TOT 0.000 2038.835 0.000 1133.547 0.000 2.930 3321.292 223.119 0.000 511.481 2586.706
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 65.852 64.566
1997 218.073 139.598
1998 362.404 120.329
1999 499.240 103.709
2000 628.955 89.375
2001 751.906 77.013
2002 868.430 66.352
2003 978.849 57.160
2004 1083.468 49.234
2005 1182.577 42.401
SUB 1182.577 809.737
REM 2586.706 257.886
TOT 2586.706 1067.623
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GRACE 35-2L P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CHICKEN SWAMP BRANCH ---------- ---------- 10.00 60.718
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 49.542
LEWIS GROSS CUM. MB & MMF 73.854 353.948 20.00 42.030
35 18S 15W GROSS RES. MB & MMF 0.000 100.604 25.00 36.659
SEQ: 330 GROSS ULT. MB & MMF 73.854 454.552 30.00 32.635
INIT W.I 70.000 LIFE/YR 32.250 RATE-OF-RETURN, % 100.00
INIT N.I 55.542 OPC/W 100 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.686 0.000 2.047 0.000 2.930 5.998 0.350 0.000 0.924 4.724
1997 0.000 8.340 0.000 4.632 0.000 2.930 13.572 0.840 0.000 2.090 10.642
1998 0.000 7.673 0.000 4.262 0.000 2.930 12.487 0.840 0.000 1.923 9.724
1999 0.000 7.059 0.000 3.921 0.000 2.930 11.488 0.840 0.000 1.769 8.879
2000 0.000 6.494 0.000 3.607 0.000 2.930 10.569 0.840 0.000 1.628 8.101
2001 0.000 5.975 0.000 3.319 0.000 2.930 9.723 0.840 0.000 1.497 7.386
2002 0.000 5.497 0.000 3.053 0.000 2.930 8.945 0.840 0.000 1.378 6.728
2003 0.000 5.057 0.000 2.809 0.000 2.930 8.230 0.840 0.000 1.267 6.122
2004 0.000 4.653 0.000 2.584 0.000 2.930 7.571 0.840 0.000 1.166 5.565
2005 0.000 4.280 0.000 2.377 0.000 2.930 6.966 0.840 0.000 1.073 5.053
SUB 0.000 58.714 0.000 32.611 0.000 2.930 95.549 7.910 0.000 14.715 72.924
REM 0.000 41.890 0.000 23.266 0.000 2.930 68.171 19.180 0.000 10.495 38.493
TOT 0.000 100.604 0.000 55.877 0.000 2.930 163.720 27.090 0.000 25.210 111.417
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.724 4.632
1997 15.366 9.763
1998 25.090 8.109
1999 33.969 6.731
2000 42.070 5.583
2001 49.456 4.628
2002 56.184 3.832
2003 62.306 3.170
2004 67.871 2.620
2005 72.924 2.163
SUB 72.924 51.231
REM 111.417 9.487
TOT 111.417 60.718
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GRAVLEE 13-12 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 34.345
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 31.271
MILLERELLA GROSS CUM. MB & MMF 23.319 811.245 20.00 28.730
13 16S 13W GROSS RES. MB & MMF 0.402 120.854 25.00 26.602
SEQ: 377 GROSS ULT. MB & MMF 23.721 932.099 30.00 24.799
INIT W.I 62.962 LIFE/YR 7.917 RATE-OF-RETURN, % 100.00
INIT N.I 46.108 OPC/W 1637 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.051 8.540 0.023 3.938 19.740 2.920 11.959 5.153 0.000 1.842 4.964
1997 0.099 19.326 0.046 8.911 19.740 2.920 26.923 12.368 0.000 4.146 10.409
1998 0.075 17.780 0.034 8.198 19.740 2.920 24.616 12.368 0.000 3.791 8.457
1999 0.056 16.357 0.026 7.542 19.740 2.920 22.531 12.368 0.000 3.470 6.693
2000 0.042 15.049 0.019 6.939 19.740 2.920 20.642 12.368 0.000 3.179 5.095
2001 0.031 13.845 0.014 6.384 19.740 2.920 18.926 12.368 0.000 2.915 3.643
2002 0.024 12.737 0.011 5.873 19.739 2.920 17.363 12.368 0.000 2.674 2.321
2003 0.018 11.718 0.008 5.403 19.741 2.920 15.938 12.368 0.000 2.455 1.115
2004 0.007 5.503 0.003 2.537 19.738 2.920 7.473 6.184 0.000 1.151 0.138
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.403 120.855 0.185 55.723 19.740 2.920 166.371 97.913 0.000 25.623 42.835
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.403 120.855 0.185 55.723 19.740 2.920 166.371 97.913 0.000 25.623 42.835
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.964 4.868
1997 15.373 9.557
1998 23.830 7.060
1999 30.523 5.081
2000 35.618 3.517
2001 39.261 2.288
2002 41.582 1.327
2003 42.697 0.582
2004 42.835 0.067
2005 42.835 0.000
SUB 42.835 34.347
REM 42.835 0.000
TOT 42.835 34.347
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GRAVLEE 13-12 1 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 139.673
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 120.361
LEWIS GROSS CUM. MB & MMF 0.000 0.000 20.00 105.866
13 16S 13W GROSS RES. MB & MMF 0.000 188.166 25.00 94.584
SEQ: 621 GROSS ULT. MB & MMF 0.000 188.166 30.00 85.551
COMMINGLE. INIT W.I 62.962 LIFE/YR 36.833 RATE-OF-RETURN, % 100.00
INIT N.I 46.108 OPC/W 0 UNDISC NET/INVEST 29.86
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
1996 0.000 6.871 0.000 3.168 0.000 2.920 9.251 0.000 7.178 1.425 0.649
1997 0.000 36.270 0.000 16.723 0.000 2.920 48.832 0.000 0.000 7.520 41.312
1998 0.000 29.016 0.000 13.379 0.000 2.920 39.066 0.000 0.000 6.017 33.049
1999 0.000 23.213 0.000 10.703 0.000 2.920 31.252 0.000 0.000 4.813 26.440
2000 0.000 18.570 0.000 8.562 0.000 2.920 25.002 0.000 0.000 3.850 21.152
2001 0.000 14.856 0.000 6.850 0.000 2.920 20.002 0.000 0.000 3.080 16.921
2002 0.000 11.885 0.000 5.480 0.000 2.920 16.001 0.000 0.000 2.464 13.537
2003 0.000 9.508 0.000 4.384 0.000 2.920 12.801 0.000 0.000 1.971 10.830
2004 0.000 7.606 0.000 3.507 0.000 2.920 10.241 0.000 0.000 1.577 8.664
2005 0.000 6.085 0.000 2.806 0.000 2.920 8.193 0.000 0.000 1.261 6.931
SUB 0.000 163.880 0.000 75.562 0.000 2.920 220.641 0.000 7.178 33.978 179.485
REM 0.000 24.287 0.000 11.198 0.000 2.920 32.699 0.000 0.000 5.032 27.664
TOT 0.000 188.167 0.000 86.760 0.000 2.920 253.340 0.000 7.178 39.010 207.149
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.649 0.574
1997 41.961 37.936
1998 75.010 27.590
1999 101.450 20.066
2000 122.602 14.593
2001 139.523 10.613
2002 153.060 7.719
2003 163.890 5.614
2004 172.554 4.083
2005 179.485 2.969
SUB 179.485 131.757
REM 207.149 7.915
TOT 207.149 139.672
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
GRIMSLEY A M 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 30.354
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 26.907
CARTER GROSS CUM. MB & MMF 0.000 6943.740 20.00 24.139
31 14S 13W GROSS RES. MB & MMF 0.000 145.525 25.00 21.880
SEQ: 378 GROSS ULT. MB & MMF 0.000 7089.265 30.00 20.007
INSTALL COMPRESSOR. INIT W.I 35.010 LIFE/YR 9.917 RATE-OF-RETURN, % 100.00
INIT N.I 28.512 OPC/W 1354 UNDISC NET/INVEST 97.21
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.965 0.000 1.131 0.000 2.730 3.086 0.948 0.420 0.476 1.243
1997 0.000 22.382 0.000 6.382 0.000 2.730 17.422 5.688 0.000 2.683 9.051
1998 0.000 20.144 0.000 5.744 0.000 2.730 15.680 5.688 0.000 2.415 7.577
1999 0.000 18.130 0.000 5.169 0.000 2.730 14.112 5.688 0.000 2.173 6.250
2000 0.000 16.317 0.000 4.652 0.000 2.730 12.701 5.688 0.000 1.956 5.056
2001 0.000 14.685 0.000 4.187 0.000 2.730 11.431 5.688 0.000 1.760 3.982
2002 0.000 13.217 0.000 3.768 0.000 2.730 10.288 5.688 0.000 1.585 3.015
2003 0.000 11.895 0.000 3.391 0.000 2.730 9.259 5.688 0.000 1.426 2.144
2004 0.000 10.705 0.000 3.052 0.000 2.730 8.333 5.688 0.000 1.283 1.361
2005 0.000 9.635 0.000 2.747 0.000 2.730 7.500 5.688 0.000 1.155 0.656
SUB 0.000 141.075 0.000 40.223 0.000 2.730 109.812 52.140 0.420 16.912 40.335
REM 0.000 4.450 0.000 1.269 0.000 2.730 3.464 2.844 0.000 0.533 0.086
TOT 0.000 145.525 0.000 41.492 0.000 2.730 113.276 54.984 0.420 17.445 40.421
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.243 1.201
1997 10.294 8.308
1998 17.871 6.323
1999 24.121 4.743
2000 29.177 3.489
2001 33.159 2.498
2002 36.174 1.720
2003 38.318 1.113
2004 39.679 0.643
2005 40.335 0.283
SUB 40.335 30.321
REM 40.421 0.034
TOT 40.421 30.355
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GRIMSLEY A M 2 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 27.755
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 24.868
CARTER GROSS CUM. MB & MMF 0.000 7575.694 20.00 22.549
6 15S 13W GROSS RES. MB & MMF 0.000 175.647 25.00 20.653
SEQ: 379 GROSS ULT. MB & MMF 0.000 7751.341 30.00 19.080
INIT W.I 25.000 LIFE/YR 9.917 RATE-OF-RETURN, % 100.00
INIT N.I 20.669 OPC/W 1582 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 11.638 0.000 2.405 0.000 2.710 6.519 1.978 0.000 1.004 3.537
1997 0.000 25.932 0.000 5.360 0.000 2.710 14.525 4.746 0.000 2.237 7.542
1998 0.000 23.339 0.000 4.824 0.000 2.710 13.073 4.746 0.000 2.013 6.314
1999 0.000 21.005 0.000 4.342 0.000 2.710 11.765 4.746 0.000 1.812 5.208
2000 0.000 18.904 0.000 3.907 0.000 2.710 10.589 4.746 0.000 1.631 4.212
2001 0.000 17.014 0.000 3.517 0.000 2.710 9.530 4.746 0.000 1.468 3.316
2002 0.000 15.313 0.000 3.165 0.000 2.710 8.577 4.746 0.000 1.321 2.510
2003 0.000 13.781 0.000 2.848 0.000 2.710 7.719 4.746 0.000 1.189 1.785
2004 0.000 12.403 0.000 2.564 0.000 2.710 6.947 4.746 0.000 1.070 1.131
2005 0.000 11.163 0.000 2.307 0.000 2.710 6.253 4.746 0.000 0.963 0.544
SUB 0.000 170.492 0.000 35.239 0.000 2.710 95.497 44.692 0.000 14.708 36.099
REM 0.000 5.156 0.000 1.066 0.000 2.710 2.888 2.373 0.000 0.445 0.070
TOT 0.000 175.648 0.000 36.305 0.000 2.710 98.385 47.065 0.000 15.153 36.169
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.537 3.469
1997 11.079 6.923
1998 17.393 5.269
1999 22.601 3.951
2000 26.813 2.906
2001 30.129 2.081
2002 32.639 1.432
2003 34.424 0.926
2004 35.555 0.535
2005 36.099 0.234
SUB 36.099 27.726
REM 36.169 0.028
TOT 36.169 27.754
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GRIMSLEY A M 2 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 93.265
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 80.450
LEWIS (3240-52') GROSS CUM. MB & MMF 0.000 0.000 20.00 70.141
6 15S 13W GROSS RES. MB & MMF 0.000 300.000 25.00 61.728
SEQ: 585 GROSS ULT. MB & MMF 0.000 300.000 30.00 54.772
COMMINGLE INIT W.I 25.000 LIFE/YR 8.083 RATE-OF-RETURN, % 100.00
INIT N.I 20.669 OPC/W 0 UNDISC NET/INVEST 11.97
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 25.948 0.000 5.363 0.000 2.710 14.534 0.000 11.875 2.238 0.421
1998 0.000 85.319 0.000 17.635 0.000 2.710 47.790 0.000 0.000 7.360 40.430
1999 0.000 61.954 0.000 12.805 0.000 2.710 34.702 0.000 0.000 5.344 29.358
2000 0.000 44.988 0.000 9.299 0.000 2.710 25.199 0.000 0.000 3.881 21.318
2001 0.000 32.668 0.000 6.752 0.000 2.710 18.298 0.000 0.000 2.818 15.480
2002 0.000 23.722 0.000 4.903 0.000 2.710 13.287 0.000 0.000 2.047 11.241
2003 0.000 17.226 0.000 3.560 0.000 2.710 9.649 0.000 0.000 1.486 8.163
2004 0.000 8.176 0.000 1.690 0.000 2.710 4.579 0.000 0.000 0.705 3.874
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 300.001 0.000 62.007 0.000 2.710 168.038 0.000 11.875 25.879 130.285
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 300.001 0.000 62.007 0.000 2.710 168.038 0.000 11.875 25.879 130.285
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.421 0.248
1998 40.851 33.777
1999 70.209 22.298
2000 91.527 14.719
2001 107.007 9.717
2002 118.248 6.414
2003 126.411 4.234
2004 130.285 1.857
2005 130.285 0.000
SUB 130.285 93.264
REM 130.285 0.000
TOT 130.285 93.264
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
<S> <C>
J-POSSIBLE DEVE PRIMARY
GRIMSLEY A M 2 POSS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 74.591
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 48.043
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 31.662
6 15S 13W GROSS RES. MB & MMF 0.000 499.277 25.00 21.301
SEQ: 586 GROSS ULT. MB & MMF 0.000 499.277 30.00 14.600
INIT W.I 25.000 LIFE/YR 16.083 RATE-OF-RETURN, % 100.00
INIT N.I 20.669 OPC/W 1582 UNDISC NET/INVEST 52.97
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 56.762 0.000 11.732 0.000 2.710 31.794 1.582 3.750 4.896 21.566
2005 0.000 136.682 0.000 28.251 0.000 2.710 76.560 4.746 0.000 11.790 60.023
SUB 0.000 193.444 0.000 39.983 0.000 2.710 108.354 6.328 3.750 16.686 81.589
REM 0.000 305.833 0.000 63.213 0.000 2.710 171.306 31.640 0.000 26.382 113.284
TOT 0.000 499.277 0.000 103.195 0.000 2.710 279.660 37.968 3.750 43.068 194.873
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 21.566 9.800
2005 81.589 25.742
SUB 81.589 35.542
REM 194.873 39.050
TOT 194.873 74.592
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HAMMOND 13-13 1 P.W. % P.W., M$
MORROW OIL & GAS CO OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 0.971
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 0.943
LEWIS GROSS CUM. MB & MMF 4.631 466.654 20.00 0.917
13 18S 14W GROSS RES. MB & MMF 0.000 15.185 25.00 0.893
SEQ: 432 GROSS ULT. MB & MMF 4.631 481.839 30.00 0.871
ORRI INIT W.I 0.000 LIFE/YR 1.417 RATE-OF-RETURN, % 100.00
INIT N.I 3.505 OPC/W 1500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 4.834 0.000 0.169 0.000 2.300 0.390
1997 0.000 10.350 0.000 0.363 0.000 2.300 0.834
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 15.184 0.000 0.532 0.000 2.300 1.224
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 15.184 0.000 0.532 0.000 2.300 1.224
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.060 0.330 0.330 0.323
1997 0.000 0.000 0.128 0.706 1.036 0.648
1998 0.000 0.000 0.000 0.000 1.036 0.000
1999 0.000 0.000 0.000 0.000 1.036 0.000
2000 0.000 0.000 0.000 0.000 1.036 0.000
2001 0.000 0.000 0.000 0.000 1.036 0.000
2002 0.000 0.000 0.000 0.000 1.036 0.000
2003 0.000 0.000 0.000 0.000 1.036 0.000
2004 0.000 0.000 0.000 0.000 1.036 0.000
2005 0.000 0.000 0.000 0.000 1.036 0.000
SUB 0.000 0.000 0.188 1.036 1.036 0.971
REM 0.000 0.000 0.000 0.000 1.036 0.000
TOT 0.000 0.000 0.188 1.036 1.036 0.971
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HARKINS-STANLEY UNIT 1 P.W. % P.W., M$
E P OPERATING INC OIL GAS ------ --------
FAYETTE WEST ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.008 2652.078 20.00 0.000
33 15S 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 433 GROSS ULT. MB & MMF 0.008 2652.078 30.00 0.000
INIT W.I 10.245 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 7.581 OPC/W 1272 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B-1 PROVED NON-PRODUCING
HIGGINS JIMMY 7-15 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 7.278
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 6.591
CARTER GROSS CUM. MB & MMF 0.004 3872.441 20.00 6.017
7 15S 13W GROSS RES. MB & MMF 0.000 93.765 25.00 5.532
SEQ: 380 GROSS ULT. MB & MMF 0.004 3966.206 30.00 5.117
INSTALL COMPRESSOR. INIT W.I 25.125 LIFE/YR 7.083 RATE-OF-RETURN, % 100.00
INIT N.I 17.208 OPC/W 1311 UNDISC NET/INVEST 31.30
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 2.979 0.000 0.513 0.000 2.670 1.369 0.659 0.302 0.211 0.198
1997 0.000 17.032 0.000 2.931 0.000 2.670 7.825 3.953 0.000 1.206 2.667
1998 0.000 15.669 0.000 2.696 0.000 2.670 7.199 3.953 0.000 1.109 2.138
1999 0.000 14.416 0.000 2.481 0.000 2.670 6.623 3.953 0.000 1.020 1.651
2000 0.000 13.262 0.000 2.282 0.000 2.670 6.093 3.953 0.000 0.938 1.202
2001 0.000 12.201 0.000 2.100 0.000 2.670 5.606 3.953 0.000 0.864 0.790
2002 0.000 11.225 0.000 1.932 0.000 2.670 5.157 3.953 0.000 0.795 0.411
2003 0.000 6.980 0.000 1.201 0.000 2.670 3.207 2.635 0.000 0.494 0.078
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 93.764 0.000 16.135 0.000 2.670 43.079 27.012 0.302 6.637 9.135
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 93.764 0.000 16.135 0.000 2.670 43.079 27.012 0.302 6.637 9.135
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.198 0.187
1997 2.865 2.449
1998 5.003 1.785
1999 6.654 1.253
2000 7.856 0.830
2001 8.646 0.497
2002 9.057 0.235
2003 9.135 0.041
2004 9.135 0.000
2005 9.135 0.000
SUB 9.135 7.277
REM 9.135 0.000
TOT 9.135 7.277
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
HIGGINS JIMMY 7-15 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 53.256
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 34.083
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 22.338
7 15S 13W GROSS RES. MB & MMF 0.000 499.673 25.00 14.939
SEQ: 626 GROSS ULT. MB & MMF 0.000 499.673 30.00 10.163
INIT W.I 25.125 LIFE/YR 18.500 RATE-OF-RETURN, % 100.00
INIT N.I 17.208 OPC/W 1311 UNDISC NET/INVEST 21.74
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 6.859
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 34.872 0.000 6.001 0.000 2.670 16.022 1.318 0.000
2004 0.000 92.173 0.000 15.861 0.000 2.670 42.349 3.953 0.000
2005 0.000 76.071 0.000 13.090 0.000 2.670 34.951 3.953 0.000
SUB 0.000 203.116 0.000 34.952 0.000 2.670 93.322 9.224 6.859
REM 0.000 296.556 0.000 51.031 0.000 2.670 136.253 35.906 0.000
TOT 0.000 499.672 0.000 85.982 0.000 2.670 229.575 45.130 6.859
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000
2001 0.000 -6.859 -6.859 -4.327
2002 0.000 0.000 -6.859 0.000
2003 2.467 12.237 5.378 6.133
2004 6.522 31.874 37.252 15.019
2005 5.382 25.616 62.868 10.973
SUB 14.371 62.868 62.868 27.798
REM 20.983 79.366 142.234 25.457
TOT 35.354 142.234 142.234 53.255
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
HIGGINS JIMMY 7-15 POSS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 22.393
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 9.075
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 3.838
7 15S 13W GROSS RES. MB & MMF 0.000 499.277 25.00 1.687
SEQ: 588 GROSS ULT. MB & MMF 0.000 499.277 30.00 0.768
INIT W.I 25.125 LIFE/YR 26.500 RATE-OF-RETURN, % 100.00
INIT N.I 17.208 OPC/W 1311 UNDISC NET/INVEST 42.91
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 499.277 0.000 85.914 0.000 2.660 228.531 31.623 3.769 35.193 157.947
TOT 0.000 499.277 0.000 85.914 0.000 2.660 228.531 31.623 3.769 35.193 157.947
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 157.947 22.394
TOT 157.947 22.394
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
HODO 31-15 1 SW SE P.W. % P.W., M$
BRISTOL RESOURCES, INC. OIL GAS ------ --------
MOUNT CARMEL ---------- ---------- 10.00 7.984
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 7.281
CARTER GROSS CUM. MB & MMF 0.000 1297.764 20.00 6.681
31 17S 14W GROSS RES. MB & MMF 0.000 151.352 25.00 6.164
SEQ: 435 GROSS ULT. MB & MMF 0.000 1449.116 30.00 5.714
ASSUMES PUMPING UNIT INSTALLATION. INIT W.I 10.390 LIFE/YR 5.833 RATE-OF-RETURN, % 100.00
INIT N.I 7.955 OPC/W 2029 UNDISC NET/INVEST 10.44
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 41.360 0.000 3.290 0.000 2.410 7.930 2.530 1.039 1.221 3.140
1998 0.000 33.915 0.000 2.698 0.000 2.410 6.502 2.530 0.000 1.001 2.971
1999 0.000 27.811 0.000 2.212 0.000 2.410 5.332 2.530 0.000 0.821 1.981
2000 0.000 22.805 0.000 1.814 0.000 2.410 4.372 2.530 0.000 0.673 1.169
2001 0.000 18.700 0.000 1.488 0.000 2.410 3.585 2.530 0.000 0.553 0.503
2002 0.000 6.761 0.000 0.538 0.000 2.410 1.296 1.054 0.000 0.200 0.043
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 151.352 0.000 12.041 0.000 2.410 29.017 13.704 1.039 4.469 9.807
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 151.352 0.000 12.041 0.000 2.410 29.017 13.704 1.039 4.469 9.807
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 3.140 2.842
1998 6.111 2.483
1999 8.092 1.506
2000 9.261 0.809
2001 9.764 0.318
2002 9.807 0.025
2003 9.807 0.000
2004 9.807 0.000
2005 9.807 0.000
SUB 9.807 7.983
REM 9.807 0.000
TOT 9.807 7.983
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HOLLY JF 32-8 P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
BEAVERTON ---------- ---------- 10.00 39.959
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 35.802
CARTER SW GROSS CUM. MB & MMF 0.000 1865.819 20.00 32.462
32 12S 15W GROSS RES. MB & MMF 0.000 295.327 25.00 29.733
SEQ: 436 GROSS ULT. MB & MMF 0.000 2161.146 30.00 27.467
INIT W.I 23.672 LIFE/YR 9.917 RATE-OF-RETURN, % 100.00
INIT N.I 18.022 OPC/W 2403 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 19.567 0.000 3.526 0.000 2.660 9.380 2.844 0.000 1.445 5.091
1997 0.000 43.601 0.000 7.858 0.000 2.660 20.901 6.826 0.000 3.219 10.857
1998 0.000 39.241 0.000 7.072 0.000 2.660 18.811 6.826 0.000 2.897 9.088
1999 0.000 35.317 0.000 6.365 0.000 2.660 16.930 6.826 0.000 2.607 7.497
2000 0.000 31.785 0.000 5.728 0.000 2.660 15.237 6.826 0.000 2.347 6.065
2001 0.000 28.607 0.000 5.155 0.000 2.660 13.713 6.826 0.000 2.112 4.775
2002 0.000 25.746 0.000 4.640 0.000 2.660 12.342 6.826 0.000 1.900 3.615
2003 0.000 23.171 0.000 4.176 0.000 2.660 11.108 6.826 0.000 1.711 2.571
2004 0.000 20.854 0.000 3.758 0.000 2.660 9.997 6.826 0.000 1.540 1.631
2005 0.000 18.769 0.000 3.382 0.000 2.660 8.997 6.826 0.000 1.386 0.786
SUB 0.000 286.658 0.000 51.661 0.000 2.660 137.416 64.278 0.000 21.164 51.976
REM 0.000 8.668 0.000 1.562 0.000 2.660 4.155 3.413 0.000 0.640 0.102
TOT 0.000 295.326 0.000 53.223 0.000 2.660 141.571 67.691 0.000 21.804 52.078
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
1996 5.091 4.993
1997 15.948 9.965
1998 25.036 7.585
1999 32.533 5.689
2000 38.598 4.184
2001 43.373 2.996
2002 46.988 2.063
2003 49.559 1.334
2004 51.190 0.771
2005 51.976 0.339
SUB 51.976 39.919
REM 52.078 0.041
TOT 52.078 39.960
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
IRWIN 7-15 1C P.W. % P.W., M$
HOWELL PETROLEUM CORP OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 9.087
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 8.287
CARTER GROSS CUM. MB & MMF 7.098 2078.853 20.00 7.625
7 18S 14W GROSS RES. MB & MMF 0.277 276.518 25.00 7.070
SEQ: 437 GROSS ULT. MB & MMF 7.375 2355.371 30.00 6.599
INIT W.I 6.169 LIFE/YR 8.000 RATE-OF-RETURN, % 100.00
INIT N.I 4.673 OPC/W 2560 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.022 22.398 0.001 1.047 19.735 2.400 2.533 0.790 0.000 0.390 1.353
1997 0.049 49.130 0.002 2.296 19.740 2.400 5.556 1.895 0.000 0.856 2.805
1998 0.043 43.234 0.002 2.020 19.745 2.400 4.889 1.895 0.000 0.753 2.241
1999 0.038 38.046 0.002 1.778 19.740 2.400 4.302 1.895 0.000 0.662 1.745
2000 0.033 33.481 0.002 1.565 19.735 2.400 3.786 1.895 0.000 0.583 1.308
2001 0.029 29.463 0.001 1.377 19.739 2.400 3.332 1.895 0.000 0.513 0.924
2002 0.026 25.927 0.001 1.212 19.734 2.400 2.932 1.895 0.000 0.451 0.585
2003 0.023 22.816 0.001 1.066 19.745 2.400 2.580 1.895 0.000 0.397 0.288
2004 0.012 12.023 0.001 0.562 19.735 2.400 1.360 1.105 0.000 0.209 0.045
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.275 276.518 0.013 12.923 19.739 2.400 31.270 15.160 0.000 4.814 11.294
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.275 276.518 0.013 12.923 19.739 2.400 31.270 15.160 0.000 4.814 11.294
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.353 1.327
1997 4.158 2.576
1998 6.399 1.871
1999 8.144 1.325
2000 9.452 0.903
2001 10.376 0.580
2002 10.961 0.335
2003 11.249 0.150
2004 11.294 0.022
2005 11.294 0.000
SUB 11.294 9.089
REM 11.294 0.000
TOT 11.294 9.089
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
IRWIN 7-15 2 SW SE P.W. % P.W., M$
HOWELL PETROLEIM CORP OIL GAS ------ --------
COAL FIRE CREEK ------- ------- 10.00 8.596
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 7.326
FAYETTE, BENTON GROSS CUM. MB & MMF 1.260 739.680 20.00 6.389
7 18S 14W GROSS RES. MB & MMF 0.000 325.902 25.00 5.675
SEQ: 438 GROSS ULT. MB & MMF 1.260 1065.582 30.00 5.116
INIT W.I 6.169 LIFE/YR 16.250 RATE-OF-RETURN, % 100.00
INIT N.I 4.673 OPC/W 1489 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 13.081 0.000 0.611 0.000 2.400 1.467 0.459 0.000 0.226 0.782
1997 0.000 30.051 0.000 1.404 0.000 2.400 3.371 1.102 0.000 0.519 1.749
1998 0.000 28.248 0.000 1.320 0.000 2.400 3.168 1.102 0.000 0.488 1.578
1999 0.000 26.553 0.000 1.241 0.000 2.400 2.978 1.102 0.000 0.459 1.417
2000 0.000 24.960 0.000 1.166 0.000 2.400 2.800 1.102 0.000 0.431 1.266
2001 0.000 23.463 0.000 1.096 0.000 2.400 2.632 1.102 0.000 0.405 1.124
2002 0.000 22.055 0.000 1.031 0.000 2.400 2.474 1.102 0.000 0.381 0.990
2003 0.000 20.732 0.000 0.969 0.000 2.400 2.325 1.102 0.000 0.359 0.865
2004 0.000 19.488 0.000 0.911 0.000 2.400 2.186 1.102 0.000 0.337 0.747
2005 0.000 18.318 0.000 0.856 0.000 2.400 2.055 1.102 0.000 0.316 0.636
SUB 0.000 226.949 0.000 10.606 0.000 2.400 25.456 10.377 0.000 3.921 11.154
REM 0.000 98.953 0.000 4.624 0.000 2.400 11.098 7.531 0.000 1.710 1.858
TOT 0.000 325.902 0.000 15.230 0.000 2.400 36.554 17.908 0.000 5.631 13.012
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.782 0.767
1997 2.531 1.605
1998 4.109 1.316
1999 5.526 1.075
2000 6.792 0.873
2001 7.916 0.704
2002 8.906 0.564
2003 9.771 0.448
2004 10.518 0.352
2005 11.154 0.272
SUB 11.154 7.976
REM 13.012 0.621
TOT 13.012 8.597
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
JOHNSON 30-11 1 SE P.W. % P.W., M$
MORROW OIL & GAS CO OIL GAS ------ --------
MCCRACKER MIN ------- ------- 10.00 4.220
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 3.831
CARTER GROSS CUM. MB & MMF 0.000 1157.985 20.00 3.511
30 16S 12W GROSS RES. MB & MMF 0.000 117.414 25.00 3.244
SEQ: 439 GROSS ULT. MB & MMF 0.000 1275.399 30.00 3.018
INIT W.I 10.599 LIFE/YR 8.083 RATE-OF-RETURN, % 100.00
INIT N.I 8.577 OPC/W 1440 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.880 0.000 0.676 0.000 2.360 1.595 0.763 0.000 0.246 0.586
1997 0.000 17.968 0.000 1.541 0.000 2.360 3.637 1.832 0.000 0.560 1.245
1998 0.000 16.710 0.000 1.433 0.000 2.360 3.382 1.832 0.000 0.521 1.030
1999 0.000 15.541 0.000 1.333 0.000 2.360 3.146 1.832 0.000 0.485 0.830
2000 0.000 14.453 0.000 1.240 0.000 2.360 2.925 1.832 0.000 0.451 0.643
2001 0.000 13.441 0.000 1.153 0.000 2.360 2.721 1.832 0.000 0.419 0.470
2002 0.000 12.500 0.000 1.072 0.000 2.360 2.530 1.832 0.000 0.390 0.309
2003 0.000 11.625 0.000 0.997 0.000 2.360 2.353 1.832 0.000 0.362 0.159
2004 0.000 7.294 0.000 0.626 0.000 2.360 1.476 1.221 0.000 0.228 0.028
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 117.412 0.000 10.070 0.000 2.360 23.765 14.808 0.000 3.662 5.300
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 117.412 0.000 10.070 0.000 2.360 23.765 14.808 0.000 3.662 5.300
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.586 0.575
1997 1.831 1.143
1998 2.861 0.860
1999 3.691 0.630
2000 4.334 0.444
2001 4.804 0.295
2002 5.113 0.177
2003 5.272 0.083
2004 5.300 0.014
2005 5.300 0.000
SUB 5.300 4.221
REM 5.300 0.000
TOT 5.300 4.221
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCTING
JOHNSON 36-6 1 SE NW P.W. % P.W., M$
ANDERMAN/SMITH OPERG CO OIL GAS ------ --------
DAVIS CHAPEL NE ------- ------- 10.00 0.992
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.917
CARTERE, BENTON GROSS CUM. MB & MMF 0.000 565.835 20.00 0.854
36 14S 11W GROSS RES. MB & MMF 0.000 117.776 25.00 0.800
SEQ: 440 GROSS ULT. MB & MMF 0.000 683.611 30.00 0.754
INIT W.I 2.139 LIFE/YR 7.833 RATE-OF-RETURN, % 100.00
INIT N.I 1.589 OPC/W 1500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.669 0.000 0.154 0.000 2.660 0.409 0.160 0.000 0.063 0.185
1997 0.000 20.701 0.000 0.329 0.000 2.660 0.875 0.385 0.000 0.135 0.355
1998 0.000 17.596 0.000 0.280 0.000 2.660 0.744 0.385 0.000 0.114 0.244
1999 0.000 15.014 0.000 0.239 0.000 2.660 0.635 0.385 0.000 0.097 0.152
2000 0.000 13.749 0.000 0.219 0.000 2.660 0.581 0.385 0.000 0.089 0.107
2001 0.000 12.924 0.000 0.205 0.000 2.660 0.546 0.385 0.000 0.085 0.077
2002 0.000 12.149 0.000 0.193 0.000 2.660 0.514 0.385 0.000 0.079 0.050
2003 0.000 11.420 0.000 0.182 0.000 2.660 0.483 0.385 0.000 0.074 0.023
2004 0.000 4.554 0.000 0.072 0.000 2.660 0.193 0.160 0.000 0.029 0.002
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 117.776 0.000 1.872 0.000 2.660 4.980 3.015 0.000 0.765 1.195
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 117.776 0.000 1.872 0.000 2.660 4.980 3.015 0.000 0.765 1.195
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.185 0.182
1997 0.540 0.327
1998 0.784 0.204
1999 0.936 0.116
2000 1.043 0.074
2001 1.120 0.048
2002 1.170 0.028
2003 1.193 0.012
2004 1.195 0.001
2005 1.195 0.000
SUB 1.195 0.992
REM 1.195 0.000
TOT 1.195 0.992
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
JONES JIMMY RAY 7-7 P.W. % P.W., M$
ANDERMAN/SMITH OPERG CO OIL GAS ------ --------
BLUFF ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 0.000
GILMER GROSS CUM. MB & MMF 10.683 9.956 20.00 0.000
7 14S 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 441 GROSS ULT. MB & MMF 10.683 9.956 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 5.469 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 3.792 OPC/W 594 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KELLY 15-16C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 145.728
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 117.724
CARTER GROSS CUM. MB & MMF 0.341 2952.778 20.00 99.317
15 18S 14W GROSS RES. MB & MMF 0.000 752.732 25.00 86.327
SEQ: 332 GROSS ULT. MB & MMF 0.341 3705.510 30.00 76.674
INIT W.I 23.848 LIFE/YR 41.500 RATE-OF-RETURN, % 100.00
INIT N.I 17.702 OPC/W 304 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 26.536 0.000 4.697 0.000 2.850 13.388
1997 0.000 60.049 0.000 10.630 0.000 2.850 30.295
1998 0.000 55.245 0.000 9.779 0.000 2.850 27.871
1999 0.000 50.826 0.000 8.997 0.000 2.850 25.641
2000 0.000 46.759 0.000 8.277 0.000 2.850 23.590
2001 0.000 43.019 0.000 7.615 0.000 2.850 21.703
2002 0.000 39.577 0.000 7.006 0.000 2.850 19.967
2003 0.000 36.411 0.000 6.445 0.000 2.850 18.369
2004 0.000 33.498 0.000 5.930 0.000 2.850 16.900
2005 0.000 30.818 0.000 5.455 0.000 2.850 15.548
SUB 0.000 422.738 0.000 74.832 0.000 2.850 213.272
REM 0.000 329.993 0.000 58.414 0.000 2.850 166.480
TOT 0.000 752.731 0.000 133.247 0.000 2.850 379.752
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.362 0.000 2.062 10.963 10.963 10.750
1997 0.870 0.000 4.665 24.759 35.722 22.712
1998 0.870 0.000 4.292 22.709 58.431 18.937
1999 0.870 0.000 3.949 20.823 79.254 15.786
2000 0.870 0.000 3.633 19.087 98.341 13.155
2001 0.870 0.000 3.342 17.491 115.832 10.959
2002 0.870 0.000 3.075 16.022 131.854 9.126
2003 0.870 0.000 2.829 14.671 146.525 7.596
2004 0.870 0.000 2.603 13.427 159.952 6.321
2005 0.870 0.000 2.395 12.283 172.235 5.257
SUB 8.192 0.000 32.845 172.235 172.235 120.599
REM 27.912 0.000 25.635 112.933 285.168 25.130
TOT 36.104 0.000 58.480 285.168 285.168 145.729
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
E-PROBABLE DEVE PRIMARY
KELLY 15-16C (PROB) P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 3.356
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 0.456
DEVONIAN GROSS CUM. MB & MMF 0.000 0.000 20.00 0.068
15 18S 14W GROSS RES. MB & MMF 0.000 750.000 25.00 0.011
SEQ: 622 GROSS ULT. MB & MMF 0.000 750.000 30.00 0.002
INIT W.I 23.841 LIFE/YR 57.500 RATE-OF-RETURN, % 100.00
INIT N.I 17.702 OPC/W 1200 UNDISC NET/INVEST 44.49
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 750.000 0.000 132.763 0.000 2.850 378.375
TOT 0.000 750.000 0.000 132.763 0.000 2.850 378.375
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000
54.929 5.960 58.269 259.216 259.216 3.356
54.929 5.960 58.269 259.216 259.216 3.356
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KELLY 15-16T P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 21.288
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 18.194
LEWIS GROSS CUM. MB & MMF 2.373 1594.947 20.00 15.919
15 18S 14W GROSS RES. MB & MMF 0.000 112.666 25.00 14.187
SEQ: 335 GROSS ULT. MB & MMF 2.373 1707.613 30.00 12.829
INIT W.I 23.841 LIFE/YR 18.250 RATE-OF-RETURN, % 100.00
INIT N.I 17.702 OPC/W 304 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.668 0.000 1.003 0.000 2.850 2.859 0.362 0.000 0.440 2.057
1997 0.000 12.629 0.000 2.236 0.000 2.850 6.371 0.870 0.000 0.981 4.520
1998 0.000 11.366 0.000 2.012 0.000 2.850 5.734 0.870 0.000 0.883 3.981
1999 0.000 10.229 0.000 1.811 0.000 2.850 5.161 0.870 0.000 0.795 3.496
2000 0.000 9.206 0.000 1.630 0.000 2.850 4.645 0.870 0.000 0.715 3.060
2001 0.000 8.286 0.000 1.467 0.000 2.850 4.180 0.870 0.000 0.644 2.667
2002 0.000 7.457 0.000 1.320 0.000 2.850 3.762 0.870 0.000 0.579 2.313
2003 0.000 6.712 0.000 1.188 0.000 2.850 3.386 0.870 0.000 0.522 1.995
2004 0.000 6.040 0.000 1.069 0.000 2.850 3.047 0.870 0.000 0.470 1.708
2005 0.000 5.436 0.000 0.962 0.000 2.850 2.743 0.870 0.000 0.422 1.451
SUB 0.000 83.029 0.000 14.698 0.000 2.850 41.888 8.192 0.000 6.451 27.248
REM 0.000 29.635 0.000 5.246 0.000 2.850 14.951 7.685 0.000 2.302 4.967
TOT 0.000 112.664 0.000 19.944 0.000 2.850 56.839 15.877 0.000 8.753 32.215
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.057 2.017
1997 6.577 4.148
1998 10.558 3.321
1999 14.054 2.651
2000 17.114 2.110
2001 19.781 1.672
2002 22.094 1.318
2003 24.089 1.033
2004 25.797 0.805
2005 27.248 0.621
SUB 27.248 19.696
REM 32.215 1.592
TOT 32.215 21.288
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KILLINGSWORTH 7-9 NE SE P.W. % P.W., M$
BOWMAN FRED INC OIL GAS ------ --------
MUSGROVE CREEK ---------- ---------- 10.00 8.079
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 7.356
CARTER GROSS CUM. MB & MMF 0.000 1916.320 20.00 6.758
7 15S 12W GROSS RES. MB & MMF 0.000 168.488 25.00 6.257
SEQ: 443 GROSS ULT. MB & MMF 0.000 2084.808 30.00 5.831
INIT W.I 16.406 LIFE/YR 7.667 RATE-OF-RETURN, % 100.00
INIT N.I 12.141 OPC/W 2383 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 11.353 0.000 1.378 0.000 2.660 3.666 1.955 0.000 0.565 1.147
1997 0.000 26.082 0.000 3.167 0.000 2.660 8.423 4.691 0.000 1.297 2.435
1998 0.000 24.517 0.000 2.977 0.000 2.660 7.918 4.691 0.000 1.220 2.007
1999 0.000 23.046 0.000 2.798 0.000 2.660 7.443 4.691 0.000 1.146 1.605
2000 0.000 21.664 0.000 2.630 0.000 2.660 6.996 4.691 0.000 1.078 1.227
2001 0.000 20.364 0.000 2.472 0.000 2.660 6.576 4.691 0.000 1.013 0.872
2002 0.000 19.142 0.000 2.324 0.000 2.660 6.182 4.691 0.000 0.952 0.538
2003 0.000 17.993 0.000 2.185 0.000 2.660 5.811 4.691 0.000 0.895 0.225
2004 0.000 4.327 0.000 0.525 0.000 2.660 1.397 1.173 0.000 0.215 0.009
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 168.488 0.000 20.456 0.000 2.660 54.412 35.965 0.000 8.381 10.065
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 168.488 0.000 20.456 0.000 2.660 54.412 35.965 0.000 8.381 10.065
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.147 1.125
1997 3.582 2.235
1998 5.589 1.675
1999 7.194 1.218
2000 8.421 0.847
2001 9.293 0.548
2002 9.831 0.308
2003 10.056 0.117
2004 10.065 0.005
2005 10.065 0.000
SUB 10.065 8.078
REM 10.065 0.000
TOT 10.065 8.078
</TABLE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KILLINGSWORTH 8-13 SW SW P.W. % P.W., M$
GIBRALTAR ENERGY & MASON OIL GAS ------ --------
MUSGROVE CREEK ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 0.000 976.193 20.00 0.000
8 15S 12W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 444 GROSS ULT. MB & MMF 0.000 976.193 30.00 0.000
NO RESERVES, NO PRODUCTION SINCE 4/95. INIT W.I 13.737 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 10.248 OPC/W 517 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LOFTIS ESTATE 23-8C P.W. % P.W., M$
MORROW OIL & GAS CO OIL GAS ------ --------
MCCRACKEN MTN ---------- ---------- 10.00 11.399
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 10.372
CARTER GROSS CUM. MB & MMF 0.000 1307.737 20.00 9.527
23 16S 13W GROSS RES. MB & MMF 0.000 111.567 25.00 8.823
SEQ: 445 GROSS ULT. MB & MMF 0.000 1419.304 30.00 8.227
INIT W.I 13.875 LIFE/YR 8.667 RATE-OF-RETURN, % 100.00
INIT N.I 11.354 OPC/W 831 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.669 0.000 1.098 0.000 2.450 2.690 0.577 0.000 0.414 1.699
1997 0.000 20.701 0.000 2.350 0.000 2.450 5.758 1.384 0.000 0.887 3.488
1998 0.000 17.596 0.000 1.998 0.000 2.450 4.895 1.384 0.000 0.753 2.757
1999 0.000 14.956 0.000 1.698 0.000 2.450 4.160 1.384 0.000 0.641 2.136
2000 0.000 12.713 0.000 1.443 0.000 2.450 3.536 1.384 0.000 0.545 1.608
2001 0.000 10.806 0.000 1.227 0.000 2.450 3.006 1.384 0.000 0.463 1.159
2002 0.000 9.185 0.000 1.043 0.000 2.450 2.555 1.384 0.000 0.394 0.778
2003 0.000 7.807 0.000 0.886 0.000 2.450 2.172 1.384 0.000 0.334 0.454
2004 0.000 6.636 0.000 0.753 0.000 2.450 1.846 1.384 0.000 0.285 0.178
2005 0.000 1.497 0.000 0.170 0.000 2.450 0.416 0.346 0.000 0.064 0.006
SUB 0.000 111.566 0.000 12.667 0.000 2.450 31.034 11.995 0.000 4.780 14.263
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 111.566 0.000 12.667 0.000 2.450 31.034 11.995 0.000 4.780 14.263
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.699 1.666
1997 5.187 3.203
1998 7.944 2.302
1999 10.080 1.622
2000 11.688 1.110
2001 12.847 0.728
2002 13.625 0.444
2003 14.079 0.236
2004 14.257 0.085
2005 14.263 0.003
SUB 14.263 11.399
REM 14.263 0.000
TOT 14.263 11.399
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LOFTIS ESTATE 23-8L P.W. % P.W., M$
MORROW OIL & GAS CO OIL GAS ------ --------
MCCRACKEN MTN ---------- ---------- 10.00 18.419
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 16.550
LEWIS GROSS CUM. MB & MMF 0.000 306.334 20.00 15.049
23 16S 13W GROSS RES. MB & MMF 0.000 163.175 25.00 13.820
SEQ: 446 GROSS ULT. MB & MMF 0.000 469.509 30.00 12.799
INIT W.I 13.875 LIFE/YR 10.500 RATE-OF-RETURN, % 100.00
INIT N.I 11.354 OPC/W 831 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 13.053 0.000 1.482 0.000 2.450 3.631 0.577 0.000 0.559 2.495
1997 0.000 27.946 0.000 3.173 0.000 2.450 7.774 1.384 0.000 1.197 5.193
1998 0.000 23.754 0.000 2.697 0.000 2.450 6.608 1.384 0.000 1.018 4.207
1999 0.000 20.191 0.000 2.292 0.000 2.450 5.617 1.384 0.000 0.865 3.368
2000 0.000 17.162 0.000 1.949 0.000 2.450 4.774 1.384 0.000 0.735 2.655
2001 0.000 14.588 0.000 1.656 0.000 2.450 4.058 1.384 0.000 0.625 2.049
2002 0.000 12.400 0.000 1.408 0.000 2.450 3.449 1.384 0.000 0.531 1.534
2003 0.000 10.540 0.000 1.197 0.000 2.450 2.932 1.384 0.000 0.451 1.097
2004 0.000 8.959 0.000 1.017 0.000 2.450 2.492 1.384 0.000 0.384 0.725
2005 0.000 7.615 0.000 0.865 0.000 2.450 2.118 1.384 0.000 0.326 0.408
SUB 0.000 156.208 0.000 17.736 0.000 2.450 43.453 13.033 0.000 6.691 23.731
REM 0.000 6.966 0.000 0.791 0.000 2.450 1.938 1.499 0.000 0.298 0.141
TOT 0.000 163.174 0.000 18.527 0.000 2.450 45.391 14.532 0.000 6.989 23.872
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.495 2.447
1997 7.688 4.768
1998 11.895 3.511
1999 15.263 2.556
2000 17.918 1.832
2001 19.967 1.286
2002 21.501 0.876
2003 22.598 0.569
2004 23.323 0.342
2005 23.731 0.176
SUB 23.731 18.363
REM 23.872 0.055
TOT 23.872 18.418
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MARX-THOMAS 6-6 1 P.W. % P.W., M$
MORROW OIL & GAS CO OIL GAS ------ --------
MUD CREEK ---------- ---------- 10.00 34.202
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 28.034
CARTER GROSS CUM. MB & MMF 19.981 3336.468 20.00 23.847
6 17S 15W GROSS RES. MB & MMF 0.514 1027.945 25.00 20.834
SEQ: 447 GROSS ULT. MB & MMF 20.495 4364.413 30.00 18.569
INIT W.I 5.469 LIFE/YR 29.667 RATE-OF-RETURN, % 100.00
INIT N.I 4.074 OPC/W 931 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.019 38.330 0.001 1.561 19.734 2.230 3.498
1997 0.043 86.738 0.002 3.533 19.737 2.230 7.914
1998 0.040 79.799 0.002 3.251 19.745 2.230 7.281
1999 0.037 73.415 0.001 2.991 19.744 2.230 6.699
2000 0.034 67.542 0.001 2.751 19.736 2.230 6.163
2001 0.031 62.138 0.001 2.531 19.735 2.230 5.670
2002 0.029 57.167 0.001 2.329 19.747 2.230 5.216
2003 0.026 52.594 0.001 2.143 19.745 2.230 4.799
2004 0.024 48.386 0.001 1.971 19.731 2.230 4.415
2005 0.022 44.515 0.001 1.813 19.734 2.230 4.062
SUB 0.305 610.624 0.012 24.875 19.739 2.230 55.717
REM 0.208 417.322 0.009 17.001 19.738 2.230 38.079
TOT 0.513 1027.946 0.021 41.876 19.739 2.230 93.796
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.255 0.000 0.539 2.704 2.704 2.652
1997 0.611 0.000 1.218 6.085 8.789 5.582
1998 0.611 0.000 1.121 5.549 14.338 4.628
1999 0.611 0.000 1.032 5.056 19.394 3.833
2000 0.611 0.000 0.949 4.603 23.997 3.172
2001 0.611 0.000 0.873 4.186 28.183 2.623
2002 0.611 0.000 0.804 3.802 31.985 2.166
2003 0.611 0.000 0.739 3.449 35.434 1.786
2004 0.611 0.000 0.680 3.124 38.558 1.471
2005 0.611 0.000 0.625 2.825 41.383 1.209
SUB 5.754 0.000 8.580 41.383 41.383 29.122
REM 12.373 0.000 5.864 19.843 61.226 5.081
TOT 18.127 0.000 14.444 61.226 61.226 34.203
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MAYERS F 29-5 P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
MCGEE LAKE ---------- ---------- 10.00 9.178
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 7.716
CARTER GROSS CUM. MB & MMF 0.901 3814.009 20.00 6.665
29 16S 15W GROSS RES. MB & MMF 1.068 533.855 25.00 5.879
SEQ: 448 GROSS ULT. MB & MMF 1.969 4347.864 30.00 5.272
INIT W.I 3.125 LIFE/YR 18.833 RATE-OF-RETURN, % 100.00
INIT N.I 2.539 OPC/W 2320 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.039 19.744 0.001 0.501 19.733 2.660 1.353
1997 0.091 45.360 0.002 1.152 19.743 2.660 3.109
1998 0.085 42.639 0.002 1.083 19.742 2.660 2.922
1999 0.080 40.081 0.002 1.018 19.743 2.660 2.747
2000 0.075 37.676 0.002 0.957 19.742 2.660 2.582
2001 0.071 35.415 0.002 0.899 19.744 2.660 2.427
2002 0.067 33.290 0.002 0.845 19.746 2.660 2.282
2003 0.063 31.293 0.002 0.795 19.741 2.660 2.145
2004 0.059 29.415 0.001 0.747 19.736 2.660 2.016
2005 0.055 27.650 0.001 0.702 19.741 2.660 1.895
SUB 0.685 342.563 0.017 8.698 19.742 2.660 23.478
REM 0.384 191.292 0.010 4.857 19.738 2.660 13.111
TOT 1.069 533.855 0.027 13.555 19.740 2.660 36.589
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.363 0.000 0.208 0.782 0.782 0.767
1997 0.870 0.000 0.479 1.760 2.542 1.615
1998 0.870 0.000 0.450 1.602 4.144 1.336
1999 0.870 0.000 0.423 1.454 5.598 1.102
2000 0.870 0.000 0.397 1.315 6.913 0.906
2001 0.870 0.000 0.374 1.184 8.097 0.742
2002 0.870 0.000 0.351 1.060 9.157 0.604
2003 0.870 0.000 0.330 0.945 10.102 0.489
2004 0.870 0.000 0.311 0.836 10.938 0.393
2005 0.870 0.000 0.292 0.733 11.671 0.314
SUB 8.193 0.000 3.615 11.671 11.671 8.268
REM 8.193 0.000 2.018 2.901 14.572 0.910
TOT 16.386 0.000 5.633 14.572 14.572 9.178
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MCCALEB 26-9 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BETHEL CHURCH ---------- ---------- 10.00 13.428
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 12.756
MILLERELLA GROSS CUM. MB & MMF 0.000 5405.263 20.00 12.162
26 14S 13W GROSS RES. MB & MMF 0.000 42.691 25.00 11.635
SEQ: 390 GROSS ULT. MB & MMF 0.000 5447.954 30.00 11.164
INIT W.I 31.594 LIFE/YR 4.417 RATE-OF-RETURN, % 100.00
INIT N.I 26.679 OPC/W 630 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.434 0.000 1.983 0.000 2.660 5.276 0.995 0.000 0.813 3.468
1997 0.000 13.919 0.000 3.713 0.000 2.660 9.878 2.389 0.000 1.521 5.968
1998 0.000 9.743 0.000 2.599 0.000 2.660 6.914 2.389 0.000 1.064 3.461
1999 0.000 6.820 0.000 1.820 0.000 2.660 4.840 2.389 0.000 0.745 1.706
2000 0.000 4.774 0.000 1.274 0.000 2.660 3.388 2.389 0.000 0.522 0.478
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 42.690 0.000 11.389 0.000 2.660 30.296 10.551 0.000 4.665 15.081
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 42.690 0.000 11.389 0.000 2.660 30.296 10.551 0.000 4.665 15.081
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.468 3.402
1997 9.436 5.492
1998 12.897 2.898
1999 14.603 1.301
2000 15.081 0.335
2001 15.081 0.000
2002 15.081 0.000
2003 15.081 0.000
2004 15.081 0.000
2005 15.081 0.000
SUB 15.081 13.428
REM 15.081 0.000
TOT 15.081 13.428
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the year 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
MCCALEB 26-9 POSS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BETHEL CHURCH ---------- ---------- 10.00 107.305
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 69.710
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 46.358
26 14S 13W GROSS RES. MB & MMF 0.000 500.000 25.00 31.479
SEQ: 590 GROSS ULT. MB & MMF 0.000 500.000 30.00 21.780
INIT W.I 31.594 LIFE/YR 15.833 RATE-OF-RETURN, % 100.00
INIT N.I 26.679 OPC/W 630 UNDISC NET/INVEST 59.27
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 107.510 0.000 28.683 0.000 2.660 76.296 1.592 4.739 11.750 58.215
2005 0.000 122.200 0.000 32.602 0.000 2.660 86.720 2.389 0.000 13.355 70.977
SUB 0.000 229.710 0.000 61.284 0.000 2.660 163.016 3.981 4.739 25.105 129.192
REM 0.000 270.292 0.000 72.111 0.000 2.660 191.814 15.329 0.000 29.540 146.949
TOT 0.000 500.002 0.000 133.395 0.000 2.660 354.830 19.310 4.739 54.645 276.141
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 58.215 26.912
2005 129.192 30.436
SUB 129.192 57.348
REM 276.141 49.957
TOT 276.141 107.305
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MCDONALD 36-13 1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CORINTH ---------- ---------- 10.00 160.011
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 128.252
CARTER GROSS CUM. MB & MMF 0.000 4408.583 20.00 107.278
36 14S 14W GROSS RES. MB & MMF 0.000 605.428 25.00 92.533
SEQ: 328 GROSS ULT. MB & MMF 0.000 5014.011 30.00 81.651
INIT W.I 65.450 LIFE/YR 28.417 RATE-OF-RETURN, % 100.00
INIT N.I 47.564 OPC/W 1550 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.873 0.000 7.074 0.000 2.680 18.959 5.072 0.000 2.920
1997 0.000 34.680 0.000 16.495 0.000 2.680 44.207 12.174 0.000 6.808
1998 0.000 33.293 0.000 15.835 0.000 2.680 42.439 12.174 0.000 6.536
1999 0.000 31.961 0.000 15.202 0.000 2.680 40.742 12.174 0.000 6.274
2000 0.000 30.683 0.000 14.594 0.000 2.680 39.112 12.174 0.000 6.023
2001 0.000 29.455 0.000 14.010 0.000 2.680 37.547 12.174 0.000 5.783
2002 0.000 28.277 0.000 13.450 0.000 2.680 36.046 12.174 0.000 5.551
2003 0.000 27.146 0.000 12.912 0.000 2.680 34.604 12.174 0.000 5.329
2004 0.000 26.060 0.000 12.395 0.000 2.680 33.220 12.174 0.000 5.116
2005 0.000 25.018 0.000 11.900 0.000 2.680 31.891 12.174 0.000 4.911
SUB 0.000 281.446 0.000 133.868 0.000 2.680 358.767 114.638 0.000 55.251
REM 0.000 323.983 0.000 154.098 0.000 2.680 412.984 231.306 0.000 63.599
TOT 0.000 605.429 0.000 287.966 0.000 2.680 771.751 345.944 0.000 118.850
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 10.967 10.967 10.753
1997 25.226 36.193 23.135
1998 23.730 59.923 19.785
1999 22.294 82.217 16.898
2000 20.915 103.132 14.412
2001 19.591 122.723 12.273
2002 18.321 141.044 10.434
2003 17.101 158.145 8.854
2004 15.930 174.075 7.498
2005 14.806 188.881 6.335
SUB 188.881 188.881 130.377
REM 118.086 306.967 29.634
TOT 306.967 306.967 160.011
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
MCDONALD 36-13 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CORINTH ---------- ---------- 10.00 7.941
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 2.105
BENTON GROSS CUM. MB & MMF 0.000 0.000 20.00 0.591
36 14S 14W GROSS RES. MB & MMF 0.000 200.000 25.00 0.175
SEQ: 623 GROSS ULT. MB & MMF 0.000 200.000 30.00 0.055
INIT W.I 65.450 LIFE/YR 33.583 RATE-OF-RETURN, % 100.00
INIT N.I 47.564 OPC/W 1550 UNDISC NET/INVEST 10.28
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 199.999 0.000 95.128 0.000 2.680 254.944
TOT 0.000 199.999 0.000 95.128 0.000 2.680 254.944
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000
REM 62.899 14.857 39.261 137.928 137.928 7.942
TOT 62.899 14.857 39.261 137.928 137.928 7.942
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MCDONALD 36-13 M P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CORINTH --------- --------- 10.00 0.000
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 0.000
MILLERELLA GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
36 - 14S- 14W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 391 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES, SHUT-IN. INIT W.I 65.450 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 47.564 OPC/W 1550 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MCEVERS 19-9 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MCCRACKEN MOUNTAIN ---------- ---------- 10.00 19.695
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 16.330
CARTER GROSS CUM. MB & MMF 0.000 1507.957 20.00 13.965
19 16S 12W GROSS RES. MB & MMF 0.000 306.554 25.00 12.229
SEQ: 392 GROSS ULT. MB & MMF 0.000 1814.511 30.00 10.908
INIT W.I 13.521 LIFE/YR 20.917 RATE-OF-RETURN, % 100.00
INIT N.I 10.672 OPC/W 1218 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.852 0.000 1.051 0.000 2.680 2.818 0.823 0.000 0.434 1.560
1997 0.000 22.803 0.000 2.434 0.000 2.680 6.522 1.976 0.000 1.004 3.541
1998 0.000 21.662 0.000 2.312 0.000 2.680 6.196 1.976 0.000 0.955 3.265
1999 0.000 20.579 0.000 2.196 0.000 2.680 5.886 1.976 0.000 0.907 3.003
2000 0.000 19.550 0.000 2.086 0.000 2.680 5.592 1.976 0.000 0.861 2.754
2001 0.000 18.573 0.000 1.982 0.000 2.680 5.312 1.976 0.000 0.818 2.518
2002 0.000 17.644 0.000 1.883 0.000 2.680 5.047 1.976 0.000 0.778 2.293
2003 0.000 16.762 0.000 1.789 0.000 2.680 4.794 1.976 0.000 0.738 2.080
2004 0.000 15.924 0.000 1.699 0.000 2.680 4.555 1.976 0.000 0.701 1.877
2005 0.000 15.128 0.000 1.614 0.000 2.680 4.327 1.976 0.000 0.667 1.684
SUB 0.000 178.477 0.000 19.048 0.000 2.680 51.049 18.607 0.000 7.863 24.575
REM 0.000 128.077 0.000 13.669 0.000 2.680 36.633 22.724 0.000 5.640 8.264
TOT 0.000 306.554 0.000 32.716 0.000 2.680 87.682 41.331 0.000 13.503 32.839
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.560 1.530
1997 5.101 3.248
1998 8.366 2.723
1999 11.369 2.277
2000 14.123 1.898
2001 16.641 1.578
2002 18.934 1.306
2003 21.014 1.077
2004 22.891 0.884
2005 24.575 0.721
SUB 24.575 17.242
REM 32.839 2.455
TOT 32.839 19.697
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the year 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MORRISON 35-1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 0.014
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 0.014
CARTER GROSS CUM. MB & MMF 70.866 1633.772 20.00 0.013
35 14S 14W GROSS RES. MB & MMF 0.000 3.121 25.00 0.013
SEQ: 395 GROSS ULT. MB & MMF 70.866 1636.893 30.00 0.013
INIT W.I 8.695 LIFE/YR 0.583 RATE-OF-RETURN, % 100.00
INIT N.I 7.261 OPC/W 960 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 2.245 0.000 0.163 0.000 3.120 0.509 0.417 0.000 0.078 0.013
1997 0.000 0.876 0.000 0.064 0.000 3.120 0.199 0.167 0.000 0.031 0.001
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 3.121 0.000 0.227 0.000 3.120 0.708 0.584 0.000 0.109 0.014
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 3.121 0.000 0.227 0.000 3.120 0.708 0.584 0.000 0.109 0.014
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.013 0.013
1997 0.014 0.001
1998 0.014 0.000
1999 0.014 0.000
2000 0.014 0.000
2001 0.014 0.000
2002 0.014 0.000
2003 0.014 0.000
2004 0.014 0.000
2005 0.014 0.000
SUB 0.014 0.014
REM 0.014 0.000
TOT 0.014 0.014
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the year 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MORRISON 35-1M P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 0.011
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 0.011
MILLERELLA GROSS CUM. MB & MMF 36.563 329.348 20.00 0.011
35 14S 14W GROSS RES. MB & MMF 0.000 1.358 25.00 0.011
SEQ: 396 GROSS ULT. MB & MMF 36.563 330.706 30.00 0.011
INIT W.I 8.695 LIFE/YR 1.083 RATE-OF-RETURN, % 100.00
INIT N.I 7.261 OPC/W 220 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.537 0.000 0.039 0.000 3.120 0.122 0.096 0.000 0.019 0.007
1997 0.000 0.821 0.000 0.060 0.000 3.120 0.186 0.153 0.000 0.029 0.004
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 1.358 0.000 0.099 0.000 3.120 0.308 0.249 0.000 0.048 0.011
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 1.358 0.000 0.099 0.000 3.120 0.308 0.249 0.000 0.048 0.011
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.007 0.007
1997 0.011 0.004
1998 0.011 0.000
1999 0.011 0.000
2000 0.011 0.000
2001 0.011 0.000
2002 0.011 0.000
2003 0.011 0.000
2004 0.011 0.000
2005 0.011 0.000
SUB 0.011 0.011
REM 0.011 0.000
TOT 0.011 0.011
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
MORRISON 35-1M BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 38.689
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 33.045
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 28.611
35 14S 14W GROSS RES. MB & MMF 0.000 350.000 25.00 25.063
SEQ: 616 GROSS ULT. MB & MMF 0.000 350.000 30.00 22.175
INIT W.I 8.695 LIFE/YR 10.167 RATE-OF-RETURN, % 100.00
INIT N.I 7.261 OPC/W 960 UNDISC NET/INVEST 26.67
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 28.913 0.000 2.099 0.000 3.120 6.550 0.334 2.174 1.009 3.034
1998 0.000 74.901 0.000 5.439 0.000 3.120 16.968 1.002 0.000 2.613 13.353
1999 0.000 59.938 0.000 4.352 0.000 3.120 13.578 1.002 0.000 2.091 10.486
2000 0.000 47.964 0.000 3.483 0.000 3.120 10.866 1.002 0.000 1.674 8.191
2001 0.000 38.382 0.000 2.787 0.000 3.120 8.695 1.002 0.000 1.340 6.354
2002 0.000 30.715 0.000 2.230 0.000 3.120 6.958 1.002 0.000 1.072 4.885
2003 0.000 24.579 0.000 1.785 0.000 3.120 5.568 1.002 0.000 0.858 3.709
2004 0.000 19.669 0.000 1.428 0.000 3.120 4.456 1.002 0.000 0.687 2.768
2005 0.000 15.739 0.000 1.143 0.000 3.120 3.566 1.002 0.000 0.550 2.015
SUB 0.000 340.800 0.000 24.745 0.000 3.120 77.205 8.350 2.174 11.894 54.795
REM 0.000 9.202 0.000 0.668 0.000 3.120 2.085 0.751 0.000 0.321 1.012
TOT 0.000 350.002 0.000 25.414 0.000 3.120 79.290 9.101 2.174 12.215 55.807
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 3.034 2.663
1998 16.387 11.149
1999 26.873 7.959
2000 35.064 5.652
2001 41.418 3.987
2002 46.303 2.786
2003 50.012 1.923
2004 52.780 1.305
2005 54.795 0.864
SUB 54.795 38.288
REM 55.807 0.400
TOT 55.807 38.688
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MORRISON 36-4C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 0.000
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 0.000
CARTER GROSS CUM. MB & MMF 19.511 939.701 20.00 0.000
36 14S 14W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 397 GROSS ULT. MB & MMF 19.511 939.701 30.00 0.000
INIT W.I 65.450 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 47.564 OPC/W 73 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MORRISON 36-4M P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 3.890
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 3.695
MILLERELLA GROSS CUM. MB & MMF 10.140 836.071 20.00 3.523
36 14S 14W GROSS RES. MB & MMF 1.125 24.949 25.00 3.370
SEQ: 398 GROSS ULT. MB & MMF 11.265 861.020 30.00 3.232
INIT W.I 65.450 LIFE/YR 3.833 RATE-OF-RETURN, % 100.00
INIT N.I 47.564 OPC/W 1099 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.145 2.956 0.069 1.406 19.740 2.840 5.358 3.596 0.000 0.825 0.937
1997 0.324 6.841 0.154 3.254 19.740 2.840 12.284 8.632 0.000 1.891 1.761
1998 0.292 6.499 0.139 3.091 19.740 2.840 11.518 8.632 0.000 1.774 1.112
1999 0.263 6.174 0.125 2.937 19.740 2.840 10.805 8.632 0.000 1.663 0.509
2000 0.101 2.480 0.048 1.180 19.740 2.840 4.304 3.596 0.000 0.662 0.044
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.125 24.950 0.535 11.867 19.740 2.840 44.269 33.088 0.000 6.815 4.363
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.125 24.950 0.535 11.867 19.740 2.840 44.269 33.088 0.000 6.815 4.363
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)-----
<S> <C> <C>
1996 0.937 0.919
1997 2.698 1.619
1998 3.810 0.931
1999 4.319 0.389
2000 4.363 0.032
2001 4.363 0.000
2002 4.363 0.000
2003 4.363 0.000
2004 4.363 0.000
2005 4.363 0.000
SUB 4.363 3.890
REM 4.363 0.000
TOT 4.363 3.890
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
MORRISON 36-4M BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 376.581
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 305.326
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 252.147
36 14S 14W GROSS RES. MB & MMF 0.000 650.000 25.00 211.473
SEQ: 617 GROSS ULT. MB & MMF 0.000 650.000 30.00 179.701
INIT W.I 65.450 LIFE/YR 14.250 RATE-OF-RETURN, % 100.00
INIT N.I 47.564 OPC/W 1172 UNDISC NET/INVEST 42.04
</TABLE>
<TABLE>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 57.532 0.000 27.364 0.000 2.840 77.715 3.835 14.988 11.968 46.923
1999 0.000 119.747 0.000 56.956 0.000 2.840 161.756 9.205 0.000 24.911 127.641
2000 0.000 97.739 0.000 46.489 0.000 2.840 132.028 9.205 0.000 20.332 102.491
2001 0.000 79.776 0.000 37.945 0.000 2.840 107.763 9.205 0.000 16.595 81.963
2002 0.000 65.114 0.000 30.971 0.000 2.840 87.958 9.205 0.000 13.546 65.208
2003 0.000 53.147 0.000 25.279 0.000 2.840 71.793 9.205 0.000 11.056 51.532
2004 0.000 43.380 0.000 20.633 0.000 2.840 58.598 9.205 0.000 9.024 40.369
2005 0.000 35.407 0.000 16.841 0.000 2.840 47.829 9.205 0.000 7.366 31.258
SUB 0.000 551.842 0.000 262.479 0.000 2.840 745.440 68.270 14.988 114.798 547.385
REM 0.000 98.158 0.000 46.688 0.000 2.840 132.595 44.491 0.000 20.420 67.685
TOT 0.000 650.000 0.000 309.167 0.000 2.840 878.035 112.761 14.988 135.218 615.070
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 46.923 37.791
1999 174.564 96.865
2000 277.055 70.710
2001 359.018 51.409
2002 424.226 37.183
2003 475.758 26.715
2004 516.127 19.027
2005 547.385 13.395
SUB 547.385 353.095
REM 615.070 23.484
TOT 615.070 376.579
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
MORRISON 36-4M POSS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOWHORN CREEK ---------- ---------- 10.00 216.219
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 105.197
FAYETTE (1000') GROSS CUM. MB & MMF 0.000 0.000 20.00 53.059
36 14S 14W GROSS RES. MB & MMF 0.000 999.716 25.00 27.643
SEQ: 618 GROSS ULT. MB & MMF 0.000 999.716 30.00 14.830
INIT W.I 65.450 LIFE/YR 24.000 RATE-OF-RETURN, % 100.00
INIT N.I 47.564 OPC/W 1172 UNDISC NET/INVEST 64.34
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 999.715 0.000 475.506 0.000 2.840 1350.436 89.749 16.362 207.966 1036.360
TOT 0.000 999.715 0.000 475.506 0.000 2.840 1350.436 89.749 16.362 207.966 1036.360
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 1036.360 216.220
TOT 1036.360 216.220
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MURPHY-RANDOLPH 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 158.363
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 134.203
CARTER GROSS CUM. MB & MMF 0.000 7782.955 20.00 116.642
12 15S 14W GROSS RES. MB & MMF 0.000 474.068 25.00 103.400
SEQ: 325 GROSS ULT. MB & MMF 0.000 8257.023 30.00 93.106
INIT W.I 51.406 LIFE/YR 18.583 RATE-OF-RETURN, % 100.00
INIT N.I 39.400 OPC/W 1537 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 20.552 0.000 8.097 0.000 2.670 21.620 3.951 0.000 3.329 14.340
1997 0.000 46.506 0.000 18.323 0.000 2.670 48.924 9.481 0.000 7.534 31.908
1998 0.000 42.786 0.000 16.858 0.000 2.670 45.010 9.481 0.000 6.932 28.597
1999 0.000 39.363 0.000 15.509 0.000 2.670 41.409 9.481 0.000 6.377 25.551
2000 0.000 36.214 0.000 14.268 0.000 2.670 38.096 9.481 0.000 5.867 22.748
2001 0.000 33.317 0.000 13.127 0.000 2.670 35.048 9.481 0.000 5.398 20.170
2002 0.000 30.651 0.000 12.077 0.000 2.670 32.245 9.481 0.000 4.965 17.798
2003 0.000 28.199 0.000 11.110 0.000 2.670 29.665 9.481 0.000 4.569 15.615
2004 0.000 25.943 0.000 10.222 0.000 2.670 27.292 9.481 0.000 4.203 13.608
2005 0.000 23.868 0.000 9.404 0.000 2.670 25.108 9.481 0.000 3.867 11.760
SUB 0.000 327.399 0.000 128.995 0.000 2.670 344.417 89.280 0.000 53.041 202.095
REM 0.000 146.670 0.000 57.788 0.000 2.670 154.296 86.909 0.000 23.762 43.620
TOT 0.000 474.069 0.000 186.783 0.000 2.670 498.713 176.189 0.000 76.803 245.715
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 14.340 14.061
1997 46.248 29.274
1998 74.845 23.852
1999 100.396 19.374
2000 123.144 15.682
2001 143.314 12.641
2002 161.112 10.140
2003 176.727 8.089
2004 190.335 6.408
2005 202.095 5.035
SUB 202.095 144.556
REM 245.715 13.806
TOT 245.715 158.362
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
MURPHY-RANDOLPH 1 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 94.557
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 89.192
MILLERELLA GROSS CUM. MB & MMF 0.000 0.000 20.00 84.442
12 15S 14W GROSS RES. MB & MMF 0.000 125.000 25.00 80.208
SEQ: 591 GROSS ULT. MB & MMF 0.000 125.000 30.00 76.413
COMMINGLE. INIT W.I 51.406 LIFE/YR 3.500 RATE-OF-RETURN, % 100.00
INIT N.I 39.400 OPC/W 0 UNDISC NET/INVEST 30.92
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.246 0.000 5.613 0.000 2.670 14.987 0.000 3.598 2.308 9.080
1997 0.000 60.339 0.000 23.774 0.000 2.670 63.476 0.000 0.000 9.776 53.700
1998 0.000 32.330 0.000 12.738 0.000 2.670 34.010 0.000 0.000 5.238 28.772
1999 0.000 17.322 0.000 6.825 0.000 2.670 18.222 0.000 0.000 2.806 15.416
2000 0.000 0.763 0.000 0.301 0.000 2.670 0.803 0.000 0.000 0.123 0.679
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 125.000 0.000 49.250 0.000 2.670 131.498 0.000 3.598 20.251 107.647
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 125.000 0.000 49.250 0.000 2.670 131.498 0.000 3.598 20.251 107.647
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.080 8.770
1997 62.780 49.467
1998 91.552 24.095
1999 106.968 11.736
2000 107.647 0.488
2001 107.647 0.000
2002 107.647 0.000
2003 107.647 0.000
2004 107.647 0.000
2005 107.647 0.000
SUB 107.647 94.556
REM 107.647 0.000
TOT 107.647 94.556
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
E-PROBABLE DEVE PRIMARY
MURPHY-RANDOLPH 1 BP2 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 156.573
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 123.340
GILMER & COATS GROSS CUM. MB & MMF 0.000 0.000 20.00 98.517
12 15S 14W GROSS RES. MB & MMF 0.000 399.638 25.00 79.666
SEQ: 592 GROSS ULT. MB & MMF 0.000 399.638 30.00 65.137
INIT W.I 51.406 LIFE/YR 11.000 RATE-OF-RETURN, % 100.00
INIT N.I 39.400 OPC/W 1537 UNDISC NET/INVEST 14.57
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 113.905 0.000 44.878 0.000 2.670 119.825 8.691 19.534 18.454 73.147
2001 0.000 90.636 0.000 35.710 0.000 2.670 95.347 9.481 0.000 14.684 71.182
2002 0.000 65.160 0.000 25.673 0.000 2.670 68.547 9.481 0.000 10.557 48.509
2003 0.000 46.845 0.000 18.457 0.000 2.670 49.280 9.481 0.000 7.589 32.210
2004 0.000 33.678 0.000 13.269 0.000 2.670 35.429 9.481 0.000 5.456 20.491
2005 0.000 24.212 0.000 9.540 0.000 2.670 25.470 9.481 0.000 3.922 12.067
SUB 0.000 374.436 0.000 147.528 0.000 2.670 393.898 56.096 19.534 60.662 257.606
REM 0.000 25.203 0.000 9.930 0.000 2.670 26.512 15.012 0.000 4.083 7.417
TOT 0.000 399.639 0.000 157.457 0.000 2.670 420.410 71.108 19.534 64.745 265.023
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 73.147 49.733
2001 144.329 44.699
2002 192.838 27.697
2003 225.048 16.723
2004 245.539 9.676
2005 257.606 5.184
SUB 257.606 153.712
REM 265.023 2.861
TOT 265.023 156.573
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
MURPHY-RANDOLPH 1 BP3 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 105.190
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 59.527
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 34.657
12 15S 14W GROSS RES. MB & MMF 0.000 499.277 25.00 20.701
SEQ: 593 GROSS ULT. MB & MMF 0.000 499.277 30.00 12.656
INIT W.I 51.406 LIFE/YR 19.000 RATE-OF-RETURN, % 100.00
INIT N.I 39.400 OPC/W 1500 UNDISC NET/INVEST 48.03
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 499.277 0.000 196.715 0.000 2.670 525.229
TOT 0.000 499.277 0.000 196.715 0.000 2.670 525.229
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000
REM 74.024 7.711 80.885 362.609 362.609 105.190
TOT 74.024 7.711 80.885 362.609 362.609 105.190
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NEWMAN CROWLEY 24-5 1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 12.569
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 10.691
CARTER GROSS CUM. MB & MMF 37.340 182.063 20.00 9.311
24 18S 14W GROSS RES. MB & MMF 0.000 44.565 25.00 8.261
SEQ: 399 GROSS ULT. MB & MMF 37.340 226.628 30.00 7.441
INIT W.I 47.640 LIFE/YR 16.583 RATE-OF-RETURN, % 100.00
INIT N.I 39.831 OPC/W 270 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1.768 0.000 0.704 0.000 2.980 2.098 0.643 0.000 0.323 1.132
1997 0.000 4.061 0.000 1.618 0.000 2.980 4.821 1.544 0.000 0.742 2.535
1998 0.000 3.818 0.000 1.521 0.000 2.980 4.532 1.544 0.000 0.698 2.290
1999 0.000 3.589 0.000 1.429 0.000 2.980 4.260 1.544 0.000 0.656 2.060
2000 0.000 3.373 0.000 1.344 0.000 2.980 4.004 1.544 0.000 0.616 1.844
2001 0.000 3.171 0.000 1.263 0.000 2.980 3.764 1.544 0.000 0.579 1.641
2002 0.000 2.981 0.000 1.187 0.000 2.980 3.538 1.544 0.000 0.545 1.450
2003 0.000 2.802 0.000 1.116 0.000 2.980 3.326 1.544 0.000 0.513 1.270
2004 0.000 2.634 0.000 1.049 0.000 2.980 3.126 1.544 0.000 0.482 1.101
2005 0.000 2.476 0.000 0.986 0.000 2.980 2.939 1.544 0.000 0.453 0.943
SUB 0.000 30.673 0.000 12.217 0.000 2.980 36.408 14.539 0.000 5.607 16.266
REM 0.000 13.892 0.000 5.533 0.000 2.980 16.490 11.065 0.000 2.540 2.888
TOT 0.000 44.565 0.000 17.751 0.000 2.980 52.898 25.604 0.000 8.147 19.154
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.132 1.110
1997 3.667 2.325
1998 5.957 1.910
1999 8.017 1.562
2000 9.861 1.271
2001 11.502 1.028
2002 12.952 0.826
2003 14.222 0.658
2004 15.323 0.519
2005 16.266 0.404
SUB 16.266 11.613
REM 19.154 0.956
TOT 19.154 12.569
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NEWMAN CROWLEY 24-5 1T P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 54.713
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 46.168
LEWIS GROSS CUM. MB & MMF 6.116 705.988 20.00 39.977
24 18S 14W GROSS RES. MB & MMF 0.000 181.887 25.00 35.325
SEQ: 400 GROSS ULT. MB & MMF 6.116 887.875 30.00 31.722
INIT W.I 48.891 LIFE/YR 18.083 RATE-OF-RETURN, % 100.00
INIT N.I 40.885 OPC/W 959 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 6.875 0.000 2.811 0.000 2.980 8.376 2.344 0.000 1.290 4.742
1997 0.000 15.795 0.000 6.458 0.000 2.980 19.244 5.626 0.000 2.963 10.654
1998 0.000 14.847 0.000 6.070 0.000 2.980 18.089 5.626 0.000 2.786 9.677
1999 0.000 13.956 0.000 5.706 0.000 2.980 17.004 5.626 0.000 2.618 8.759
2000 0.000 13.119 0.000 5.364 0.000 2.980 15.984 5.626 0.000 2.461 7.896
2001 0.000 12.332 0.000 5.042 0.000 2.980 15.025 5.626 0.000 2.313 7.084
2002 0.000 11.592 0.000 4.739 0.000 2.980 14.123 5.626 0.000 2.175 6.322
2003 0.000 10.896 0.000 4.455 0.000 2.980 13.276 5.626 0.000 2.045 5.605
2004 0.000 10.242 0.000 4.188 0.000 2.980 12.479 5.626 0.000 1.922 4.931
2005 0.000 9.628 0.000 3.936 0.000 2.980 11.730 5.626 0.000 1.806 4.298
SUB 0.000 119.282 0.000 48.768 0.000 2.980 145.330 52.978 0.000 22.379 69.968
REM 0.000 62.607 0.000 25.597 0.000 2.980 76.280 48.759 0.000 11.748 15.770
TOT 0.000 181.889 0.000 74.366 0.000 2.980 221.610 101.737 0.000 34.127 85.738
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.742 4.650
1997 15.396 9.774
1998 25.073 8.071
1999 33.832 6.641
2000 41.728 5.443
2001 48.812 4.440
2002 55.134 3.602
2003 60.739 2.903
2004 65.670 2.322
2005 69.968 1.840
SUB 69.968 49.686
REM 85.738 5.030
TOT 85.738 54.716
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
NEWMAN CROWLEY 24-5 1T BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 24.704
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 10.210
FAYETTE GROSS CUM. MB & MMF 0.000 0.000 20.00 4.396
24 18S 14W GROSS RES. MB & MMF 0.000 200.000 25.00 1.965
SEQ: 604 GROSS ULT. MB & MMF 0.000 200.000 30.00 0.909
INIT W.I 48.891 LIFE/YR 24.083 RATE-OF-RETURN, % 100.00
INIT N.I 40.885 OPC/W 959 UNDISC NET/INVEST 29.38
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 199.998 0.000 81.771 0.000 2.980 243.678 33.756 5.867 37.526 166.525
TOT 0.000 199.998 0.000 81.771 0.000 2.980 243.678 33.756 5.867 37.526 166.525
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 166.525 24.704
TOT 166.525 24.704
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NEWMAN LUMBER 16-3 1 P.W. % P.W., M$
SANFORD RESOURCES CORPOR OIL GAS ------ --------
MILITARY GROVE NORTH ---------- ---------- 10.00 14.557
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 13.349
CARTER GROSS CUM. MB & MMF 0.000 5631.972 20.00 12.346
16 14S 15W GROSS RES. MB & MMF 0.000 401.287 25.00 11.502
SEQ: 449 GROSS ULT. MB & MMF 0.000 6033.259 30.00 10.784
INIT W.I 4.314 LIFE/YR 8.667 RATE-OF-RETURN, % 100.00
INIT N.I 3.411 OPC/W 1590 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 44.649 0.000 1.523 0.000 2.160 3.290 0.343 0.000 0.507
1997 0.000 90.056 0.000 3.072 0.000 2.160 6.635 0.823 0.000 1.022
1998 0.000 70.244 0.000 2.396 0.000 2.160 5.175 0.823 0.000 0.797
1999 0.000 54.790 0.000 1.869 0.000 2.160 4.037 0.823 0.000 0.622
2000 0.000 42.736 0.000 1.458 0.000 2.160 3.149 0.823 0.000 0.485
2001 0.000 33.334 0.000 1.137 0.000 2.160 2.456 0.823 0.000 0.379
2002 0.000 26.001 0.000 0.887 0.000 2.160 1.916 0.823 0.000 0.295
2003 0.000 20.281 0.000 0.692 0.000 2.160 1.494 0.823 0.000 0.230
2004 0.000 15.819 0.000 0.540 0.000 2.160 1.165 0.823 0.000 0.180
2005 0.000 3.378 0.000 0.115 0.000 2.160 0.249 0.206 0.000 0.038
SUB 0.000 401.288 0.000 13.688 0.000 2.160 29.566 7.133 0.000 4.555
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 401.288 0.000 13.688 0.000 2.160 29.566 7.133 0.000 4.555
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 2.440 2.440 2.393
1997 4.790 7.230 4.401
1998 3.555 10.785 2.970
1999 2.592 13.377 1.969
2000 1.841 15.218 1.271
2001 1.255 16.473 0.788
2002 0.798 17.271 0.456
2003 0.441 17.712 0.229
2004 0.163 17.875 0.078
2005 0.005 17.880 0.002
SUB 17.880 17.880 14.557
REM 0.000 17.880 0.000
TOT 17.880 17.880 14.557
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
<S> <C>
A-PROVED DEVE PRODUCING
NOLAN 6-2 1 NW NE P.W. % P.W., M$
SOUTHWEST ROYALTIES INC OIL GAS ------ --------
DAVIS CHAPEL NE ---------- ---------- 10.00 2.013
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 1.892
CARTER GROSS CUM. MB & MMF 0.000 571.106 20.00 1.787
6 15S 10W GROSS RES. MB & MMF 0.000 80.256 25.00 1.695
SEQ: 450 GROSS ULT. MB & MMF 0.000 651.362 30.00 1.613
INIT W.I 12.500 LIFE/YR 4.667 RATE-OF-RETURN, % 100.00
INIT N.I 10.248 OPC/W 2055 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 8.145 0.000 0.835 0.000 2.400 2.003 1.284 0.000 0.308 0.410
1997 0.000 18.711 0.000 1.918 0.000 2.400 4.602 3.083 0.000 0.709 0.811
1998 0.000 17.589 0.000 1.803 0.000 2.400 4.326 3.083 0.000 0.667 0.577
1999 0.000 16.533 0.000 1.694 0.000 2.400 4.067 3.083 0.000 0.627 0.358
2000 0.000 15.541 0.000 1.593 0.000 2.400 3.823 3.083 0.000 0.588 0.151
2001 0.000 3.737 0.000 0.383 0.000 2.400 0.919 0.771 0.000 0.142 0.007
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 80.256 0.000 8.225 0.000 2.400 19.740 14.387 0.000 3.041 2.314
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 80.256 0.000 8.225 0.000 2.400 19.740 14.387 0.000 3.041 2.314
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.410 0.402
1997 1.221 0.745
1998 1.798 0.483
1999 2.156 0.272
2000 2.307 0.105
2001 2.314 0.005
2002 2.314 0.000
2003 2.314 0.000
2004 2.314 0.000
2005 2.314 0.000
SUB 2.314 2.012
REM 2.314 0.000
TOT 2.314 2.012
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NOLEN CHARLES W 35-2 P.W. % P.W., M$
ROUNDTREE & ASSOC INC OIL GAS ------ --------
MCCRACKEN MTN WEST ---------- ---------- 10.00 18.208
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 14.814
LEWIS GROSS CUM. MB & MMF 0.857 688.071 20.00 12.524
35 16S 13W GROSS RES. MB & MMF 0.000 475.145 25.00 10.887
SEQ: 451 GROSS ULT. MB & MMF 0.857 1163.216 30.00 9.664
INIT W.I 5.250 LIFE/YR 27.417 RATE-OF-RETURN, % 100.00
INIT N.I 5.000 OPC/W 1178 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.808 0.000 0.740 0.000 2.660 1.970 0.309 0.000 0.303 1.357
1997 0.000 34.020 0.000 1.701 0.000 2.660 4.525 0.742 0.000 0.696 3.086
1998 0.000 31.979 0.000 1.599 0.000 2.660 4.253 0.742 0.000 0.655 2.856
1999 0.000 30.060 0.000 1.503 0.000 2.660 3.998 0.742 0.000 0.616 2.640
2000 0.000 28.257 0.000 1.413 0.000 2.660 3.758 0.742 0.000 0.579 2.437
2001 0.000 26.561 0.000 1.328 0.000 2.660 3.533 0.742 0.000 0.544 2.246
2002 0.000 24.968 0.000 1.248 0.000 2.660 3.321 0.742 0.000 0.511 2.067
2003 0.000 23.470 0.000 1.173 0.000 2.660 3.121 0.742 0.000 0.481 1.899
2004 0.000 22.061 0.000 1.103 0.000 2.660 2.934 0.742 0.000 0.451 1.740
2005 0.000 20.738 0.000 1.037 0.000 2.660 2.758 0.742 0.000 0.425 1.591
SUB 0.000 256.922 0.000 12.846 0.000 2.660 34.171 6.987 0.000 5.261 21.919
REM 0.000 218.222 0.000 10.911 0.000 2.660 29.024 13.356 0.000 4.469 11.196
TOT 0.000 475.144 0.000 23.757 0.000 2.660 63.195 20.343 0.000 9.730 33.115
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.357 1.331
1997 4.443 2.830
1998 7.299 2.382
1999 9.939 2.001
2000 12.376 1.680
2001 14.622 1.407
2002 16.689 1.177
2003 18.588 0.983
2004 20.328 0.819
2005 21.919 0.681
SUB 21.919 15.291
REM 33.115 2.917
TOT 33.115 18.208
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NORRIS ELVIE 29-8 1 P.W. % P.W., M$
HUGHES EASTERN CORP. OIL GAS ------ --------
FAYETTE WEST ---------- ---------- 10.00 8.652
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 7.928
CARTER GROSS CUM. MB & MMF 0.000 2563.862 20.00 7.323
29 15S 13W GROSS RES. MB & MMF 0.000 119.771 25.00 6.811
SEQ: 658 GROSS ULT. MB & MMF 0.000 2683.633 30.00 6.373
INIT W.I 17.500 LIFE/YR 7.167 RATE-OF-RETURN, % 100.00
INIT N.I 14.613 OPC/W 1912 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.091 0.000 1.328 0.000 2.660 3.534 1.673 0.000 0.544 1.317
1997 0.000 20.572 0.000 3.006 0.000 2.660 7.997 4.015 0.000 1.232 2.750
1998 0.000 18.927 0.000 2.766 0.000 2.660 7.357 4.015 0.000 1.133 2.209
1999 0.000 17.412 0.000 2.544 0.000 2.660 6.768 4.015 0.000 1.042 1.711
2000 0.000 16.019 0.000 2.341 0.000 2.660 6.227 4.015 0.000 0.959 1.253
2001 0.000 14.738 0.000 2.154 0.000 2.660 5.729 4.015 0.000 0.882 0.831
2002 0.000 13.559 0.000 1.981 0.000 2.660 5.270 4.015 0.000 0.812 0.444
2003 0.000 9.452 0.000 1.381 0.000 2.660 3.674 3.011 0.000 0.565 0.097
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 119.770 0.000 17.502 0.000 2.660 46.556 28.774 0.000 7.169 10.612
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 119.770 0.000 17.502 0.000 2.660 46.556 28.774 0.000 7.169 10.612
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 1.317 1.291
1997 4.067 2.525
1998 6.276 1.844
1999 7.987 1.299
2000 9.240 0.865
2001 10.071 0.522
2002 10.515 0.254
2003 10.612 0.051
2004 10.612 0.000
2005 10.612 0.000
SUB 10.612 8.651
REM 10.612 0.000
TOT 10.612 8.651
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NORRIS N G 21-13 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
FAYETTE WEST ---------- ---------- 10.00 74.915
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 65.449
CARTER GROSS CUM. MB & MMF 0.000 3808.014 20.00 58.164
21 15S 13W GROSS RES. MB & MMF 0.000 208.069 25.00 52.420
SEQ: 401 GROSS ULT. MB & MMF 0.000 4016.083 30.00 47.796
INIT W.I 67.977 LIFE/YR 13.000 RATE-OF-RETURN, % 100.00
INIT N.I 50.480 OPC/W 1222 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 10.736 0.000 5.420 0.000 2.640 14.308 4.153 0.000 2.204 7.951
1997 0.000 24.295 0.000 12.264 0.000 2.640 32.377 9.968 0.000 4.986 17.423
1998 0.000 22.351 0.000 11.283 0.000 2.640 29.787 9.968 0.000 4.588 15.232
1999 0.000 20.563 0.000 10.380 0.000 2.640 27.404 9.968 0.000 4.220 13.216
2000 0.000 18.918 0.000 9.550 0.000 2.640 25.212 9.968 0.000 3.882 11.361
2001 0.000 17.405 0.000 8.786 0.000 2.640 23.195 9.968 0.000 3.572 9.655
2002 0.000 16.012 0.000 8.083 0.000 2.640 21.339 9.968 0.000 3.286 8.085
2003 0.000 14.731 0.000 7.436 0.000 2.640 19.632 9.968 0.000 3.023 6.641
2004 0.000 13.553 0.000 6.842 0.000 2.640 18.062 9.968 0.000 2.781 5.312
2005 0.000 12.469 0.000 6.294 0.000 2.640 16.617 9.968 0.000 2.559 4.090
SUB 0.000 171.033 0.000 86.338 0.000 2.640 227.933 93.865 0.000 35.101 98.966
REM 0.000 37.034 0.000 18.695 0.000 2.640 49.354 35.719 0.000 7.600 6.035
TOT 0.000 208.067 0.000 105.033 0.000 2.640 277.287 129.584 0.000 42.701 105.001
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.951 7.797
1997 25.374 15.988
1998 40.606 12.707
1999 53.822 10.024
2000 65.183 7.834
2001 74.838 6.053
2002 82.923 4.609
2003 89.564 3.442
2004 94.876 2.503
2005 98.966 1.753
SUB 98.966 72.710
REM 105.001 2.207
TOT 105.001 74.917
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PECOS FOODS 35-11 1 NE SW P.W. % P.W., M$
PECO FARMS INC OIL GAS ------ --------
COAL FIRE CREEK ---------- ---------- 10.00 0.119
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 0.114
FAYETTE GROSS CUM. MB & MMF 0.105 240.550 20.00 0.109
35 18S 14W GROSS RES. MB & MMF 0.000 35.126 25.00 0.104
SEQ: 453 GROSS ULT. MB & MMF 0.105 275.676 30.00 0.101
INIT W.I 1.291 LIFE/YR 3.500 RATE-OF-RETURN, % 100.00
INIT N.I 1.038 OPC/W 1178 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 4.892 0.000 0.051 0.000 2.500 0.127 0.076 0.000 0.020 0.031
1997 0.000 10.900 0.000 0.113 0.000 2.500 0.283 0.182 0.000 0.043 0.057
1998 0.000 9.810 0.000 0.102 0.000 2.500 0.254 0.182 0.000 0.039 0.033
1999 0.000 8.829 0.000 0.092 0.000 2.500 0.229 0.182 0.000 0.035 0.011
2000 0.000 0.695 0.000 0.007 0.000 2.500 0.018 0.015 0.000 0.003 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 35.126 0.000 0.364 0.000 2.500 0.911 0.637 0.000 0.140 0.132
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 35.126 0.000 0.364 0.000 2.500 0.911 0.637 0.000 0.140 0.132
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.031 0.031
1997 0.088 0.052
1998 0.121 0.027
1999 0.132 0.009
2000 0.132 0.000
2001 0.132 0.000
2002 0.132 0.000
2003 0.132 0.000
2004 0.132 0.000
2005 0.132 0.000
SUB 0.132 0.119
REM 0.132 0.000
TOT 0.132 0.119
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RANDOLPH 25-13 1C P.W. % P.W., M$
ANDERMAN/SMITH OPERG CO OIL GAS ------ --------
BETHEL CHURCH ------- ------- 10.00 1.378
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 1.275
CARTER GROSS CUM. MB & MMF 0.000 2206.190 20.00 1.188
25 14S 13W GROSS RES. MB & MMF 0.000 158.909 25.00 1.114
SEQ: 454 GROSS ULT. MB & MMF 0.000 2365.099 30.00 1.050
INIT W.I 1.669 LIFE/YR 7.083 RATE-OF-RETURN, % 100.00
INIT N.I 1.368 OPC/W 2285 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.412 0.000 0.197 0.000 2.660 0.525 0.191 0.000 0.080 0.253
1997 0.000 30.523 0.000 0.418 0.000 2.660 1.111 0.458 0.000 0.171 0.482
1998 0.000 26.101 0.000 0.357 0.000 2.660 0.950 0.458 0.000 0.146 0.346
1999 0.000 22.791 0.000 0.312 0.000 2.660 0.830 0.458 0.000 0.128 0.244
2000 0.000 20.221 0.000 0.277 0.000 2.660 0.736 0.458 0.000 0.114 0.165
2001 0.000 18.168 0.000 0.249 0.000 2.660 0.661 0.458 0.000 0.102 0.102
2002 0.000 16.491 0.000 0.226 0.000 2.660 0.600 0.458 0.000 0.092 0.050
2003 0.000 10.204 0.000 0.140 0.000 2.660 0.371 0.305 0.000 0.057 0.009
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 158.911 0.000 2.175 0.000 2.660 5.784 3.244 0.000 0.890 1.651
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 158.911 0.000 2.175 0.000 2.660 5.784 3.244 0.000 0.890 1.651
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.253 0.248
1997 0.735 0.443
1998 1.081 0.289
1999 1.325 0.186
2000 1.490 0.114
2001 1.592 0.064
2002 1.642 0.029
2003 1.651 0.005
2004 1.651 0.000
2005 1.651 0.000
SUB 1.651 1.378
REM 1.651 0.000
TOT 1.651 1.378
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROBERTSON 20-12 1 P.W. % P.W., M$
PRUET PRODUCTION CO OIL GAS ------ --------
FERNBANK ------- ------- 10.00 4.844
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 4.657
CARTER GROSS CUM. MB & MMF 0.486 1992.722 20.00 4.487
20 17S 15W GROSS RES. MB & MMF 0.000 89.227 25.00 4.334
SEQ: 455 GROSS ULT. MB & MMF 0.486 2081.949 30.00 4.194
INIT W.I 11.094 LIFE/YR 3.000 RATE-OF-RETURN, % 100.00
INIT N.I 8.820 OPC/W 3110 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 16.234 0.000 1.432 0.000 2.660 3.809 1.725 0.000 0.587 1.497
1997 0.000 33.322 0.000 2.939 0.000 2.660 7.818 4.140 0.000 1.204 2.474
1998 0.000 26.657 0.000 2.351 0.000 2.660 6.254 4.140 0.000 0.963 1.151
1999 0.000 13.014 0.000 1.148 0.000 2.660 3.053 2.415 0.000 0.470 0.168
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 89.227 0.000 7.870 0.000 2.660 20.934 12.420 0.000 3.224 5.290
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 89.227 0.000 7.870 0.000 2.660 20.934 12.420 0.000 3.224 5.290
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 1.497 1.469
1997 3.971 2.278
1998 5.122 0.967
1999 5.290 0.131
2000 5.290 0.000
2001 5.290 0.000
2002 5.290 0.000
2003 5.290 0.000
2004 5.290 0.000
2005 5.290 0.000
SUB 5.290 4.845
REM 5.290 0.000
TOT 5.290 4.845
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RODGERS, E. 25-1 1 P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
MCGEE LAKE ------- ------- 10.00 0.053
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 0.053
CARTER GROSS CUM. MB & MMF 15.605 5692.366 20.00 0.052
25 16S 16W GROSS RES. MB & MMF 0.336 22.375 25.00 0.052
SEQ: 456 GROSS ULT. MB & MMF 15.941 5714.741 30.00 0.051
INIT W.I 1.943 LIFE/YR 0.750 RATE-OF-RETURN, % 100.00
INIT N.I 1.387 OPC/W 3737 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.193 12.891 0.003 0.179 19.739 2.400 0.482 0.363 0.000 0.074 0.045
1997 0.142 9.484 0.002 0.132 19.737 2.400 0.355 0.290 0.000 0.054 0.010
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.335 22.375 0.005 0.310 19.738 2.400 0.837 0.653 0.000 0.128 0.055
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.335 22.375 0.005 0.310 19.738 2.400 0.837 0.653 0.000 0.128 0.055
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.045 0.044
1997 0.055 0.009
1998 0.055 0.000
1999 0.055 0.000
2000 0.055 0.000
2001 0.055 0.000
2002 0.055 0.000
2003 0.055 0.000
2004 0.055 0.000
2005 0.055 0.000
SUB 0.055 0.053
REM 0.055 0.000
TOT 0.055 0.053
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
S. CARLTON FIELD TOTAL P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ------- ------- 10.00 3163.538
AL, CLARKE & BALDWIN GROSS WELLS 42.000 0.000 15.00 2634.302
GROSS CUM. MB & MMF 6236.730 1.658 20.00 2251.592
GROSS RES. MB & MMF 2343.071 0.000 25.00 1964.926
SEQ: 234 GROSS ULT. MB & MMF 8579.801 1.658 30.00 1743.698
INIT W.I 100.000 LIFE/YR 17.167 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 1950 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 58.969 0.000 45.796 0.000 14.260 0.000 653.045 409.500 0.000 100.569 142.976
1997 166.481 0.000 129.290 0.000 14.260 0.000 1843.668 982.800 0.000 283.925 576.944
1998 166.572 0.000 129.360 0.000 14.260 0.000 1844.668 982.800 0.000 284.079 577.789
1999 161.730 0.000 125.600 0.000 14.260 0.000 1791.050 982.800 0.000 275.822 532.428
2000 156.878 0.000 121.832 0.000 14.260 0.000 1737.319 982.800 0.000 267.547 486.971
2001 152.172 0.000 118.177 0.000 14.260 0.000 1685.199 982.800 0.000 259.521 442.878
2002 147.607 0.000 114.631 0.000 14.260 0.000 1634.643 982.800 0.000 251.735 400.108
2003 143.178 0.000 111.192 0.000 14.260 0.000 1585.604 982.800 0.000 244.183 358.621
2004 138.883 0.000 107.857 0.000 14.260 0.000 1538.036 982.800 0.000 236.858 318.378
2005 134.717 0.000 104.621 0.000 14.260 0.000 1491.895 982.800 0.000 229.751 279.343
SUB 1427.187 0.000 1108.354 0.000 14.260 0.000 15805.127 9254.700 0.000 2433.990 4116.436
REM 915.884 0.000 711.275 0.000 14.260 0.000 10142.789 7616.700 0.000 1561.989 964.099
TOT 2343.071 0.000 1819.629 0.000 14.260 0.000 25947.916 16871.400 0.000 3995.979 5080.535
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 142.976 139.987
1997 719.920 528.358
1998 1297.709 481.763
1999 1830.137 403.638
2000 2317.108 335.629
2001 2759.986 277.504
2002 3160.094 227.926
2003 3518.715 185.733
2004 3837.093 149.913
2005 4116.436 119.588
SUB 4116.436 2850.039
REM 5080.535 313.497
TOT 5080.535 3163.536
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
S. CARLTON (BARBOUR 16-7) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ------- ------- 10.00 177.427
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 133.285
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 104.273
GROSS RES. MB & MMF 40.622 0.000 25.00 84.243
SEQ: 631 GROSS ULT. MB & MMF 40.622 0.000 30.00 69.823
INIT W.I 100.000 LIFE/YR 17.417 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.500 0.000 1.165 0.000 14.260 0.000 16.611 0.000 10.000 2.558 4.053
1998 3.000 0.000 2.330 0.000 14.260 0.000 33.223 0.000 0.000 5.116 28.107
1999 2.955 0.000 2.295 0.000 14.260 0.000 32.722 0.000 0.000 5.039 27.683
2000 2.866 0.000 2.226 0.000 14.260 0.000 31.740 0.000 0.000 4.888 26.852
2001 2.780 0.000 2.159 0.000 14.260 0.000 30.788 0.000 0.000 4.742 26.047
2002 2.697 0.000 2.094 0.000 14.260 0.000 29.865 0.000 0.000 4.599 25.265
2003 2.616 0.000 2.031 0.000 14.260 0.000 28.969 0.000 0.000 4.461 24.507
2004 2.537 0.000 1.971 0.000 14.260 0.000 28.100 0.000 0.000 4.327 23.772
2005 2.461 0.000 1.911 0.000 14.260 0.000 27.257 0.000 0.000 4.198 23.059
SUB 23.412 0.000 18.182 0.000 14.260 0.000 259.275 0.000 10.000 39.928 209.345
REM 17.210 0.000 13.365 0.000 14.260 0.000 190.586 0.000 0.000 29.351 161.235
TOT 40.622 0.000 31.547 0.000 14.260 0.000 449.861 0.000 10.000 69.279 370.580
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 4.053 3.412
1998 32.160 23.423
1999 59.843 20.977
2000 86.695 18.498
2001 112.742 16.312
2002 138.007 14.384
2003 162.514 12.684
2004 186.286 11.185
2005 209.345 9.863
SUB 209.345 130.738
REM 370.580 46.688
TOT 370.580 177.426
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PEOVED BEHIND- PIPE
S. CARLTON (DAVIES 5) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ------- ------- 10.00 181.705
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 138.025
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 109.135
GROSS RES. MB & MMF 40.622 0.000 25.00 89.076
SEQ: 627 GROSS ULT. MB & MMF 40.622 0.000 30.00 74.556
INIT W.I 100.000 LIFE/YR 17.167 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 2.250 0.000 1.747 0.000 14.260 0.000 24.917 0.000 10.000 3.838 11.080
1998 2.997 0.000 2.328 0.000 14.260 0.000 33.191 0.000 0.000 5.111 28.080
1999 2.932 0.000 2.277 0.000 14.260 0.000 32.474 0.000 0.000 5.001 27.473
2000 2.844 0.000 2.209 0.000 14.260 0.000 31.500 0.000 0.000 4.851 26.649
2001 2.759 0.000 2.143 0.000 14.260 0.000 30.555 0.000 0.000 4.705 25.849
2002 2.676 0.000 2.078 0.000 14.260 0.000 29.638 0.000 0.000 4.564 25.074
2003 2.596 0.000 2.016 0.000 14.260 0.000 28.749 0.000 0.000 4.427 24.322
2004 2.518 0.000 1.956 0.000 14.260 0.000 27.886 0.000 0.000 4.295 23.592
2005 2.443 0.000 1.897 0.000 14.260 0.000 27.050 0.000 0.000 4.166 22.884
SUB 24.015 0.000 18.651 0.000 14.260 0.000 265.960 0.000 10.000 40.958 215.003
REM 16.606 0.000 12.896 0.000 14.260 0.000 183.901 0.000 0.000 28.321 155.581
TOT 40.621 0.000 31.547 0.000 14.260 0.000 449.861 0.000 10.000 69.279 370.584
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 11.080 9.707
1998 39.160 23.401
1999 66.633 20.818
2000 93.282 18.358
2001 119.131 16.188
2002 144.205 14.275
2003 168.527 12.588
2004 192.119 11.100
2005 215.003 9.789
SUB 215.003 136.224
REM 370.584 45.481
TOT 370.584 181.705
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
S. CARLTON (OSWELL 11-12) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 176.023
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 131.742
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 102.700
GROSS RES. MB & MMF 40.622 0.000 25.00 82.691
SEQ: 632 GROSS ULT. MB & MMF 40.622 0.000 30.00 68.313
INIT W.I 100.000 LIFE/YR 17.500 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.250 0.000 0.971 0.000 14.260 0.000 13.843 0.000 10.000 2.132 1.711
1998 3.000 0.000 2.330 0.000 14.260 0.000 33.223 0.000 0.000 5.116 28.107
1999 2.962 0.000 2.300 0.000 14.260 0.000 32.802 0.000 0.000 5.051 27.750
2000 2.873 0.000 2.231 0.000 14.260 0.000 31.821 0.000 0.000 4.900 26.921
2001 2.787 0.000 2.165 0.000 14.260 0.000 30.866 0.000 0.000 4.754 26.113
2002 2.704 0.000 2.100 0.000 14.260 0.000 29.940 0.000 0.000 4.611 25.330
2003 2.622 0.000 2.037 0.000 14.260 0.000 29.042 0.000 0.000 4.472 24.570
2004 2.544 0.000 1.976 0.000 14.260 0.000 28.171 0.000 0.000 4.338 23.833
2005 2.467 0.000 1.916 0.000 14.260 0.000 27.326 0.000 0.000 4.209 23.118
SUB 23.209 0.000 18.025 0.000 14.260 0.000 257.034 0.000 10.000 39.583 207.453
REM 17.412 0.000 13.522 0.000 14.260 0.000 192.826 0.000 0.000 29.695 163.130
TOT 40.621 0.000 31.547 0.000 14.260 0.000 449.860 0.000 10.000 69.278 370.583
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 1.711 1.347
1998 29.818 23.423
1999 57.568 21.028
2000 84.489 18.545
2001 110.602 16.353
2002 135.932 14.421
2003 160.502 12.717
2004 184.335 11.214
2005 207.453 9.888
SUB 207.453 128.936
REM 370.583 47.087
TOT 370.583 176.023
</TABLE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
S. CARLTON (SCOTT 11-11) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 176.023
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 131.742
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 102.700
GROSS RES. MB & MMF 40.622 0.000 25.00 82.691
SEQ: 630 GROSS ULT. MB & MMF 40.622 0.000 30.00 68.313
INIT W.I 100.000 LIFE/YR 17.500 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.250 0.000 0.971 0.000 14.260 0.000 13.843 0.000 10.000 2.132 1.711
1998 3.000 0.000 2.330 0.000 14.260 0.000 33.223 0.000 0.000 5.116 28.107
1999 2.962 0.000 2.300 0.000 14.260 0.000 32.802 0.000 0.000 5.051 27.750
2000 2.873 0.000 2.231 0.000 14.260 0.000 31.821 0.000 0.000 4.900 26.921
2001 2.787 0.000 2.165 0.000 14.260 0.000 30.866 0.000 0.000 4.754 26.113
2002 2.704 0.000 2.100 0.000 14.260 0.000 29.940 0.000 0.000 4.611 25.330
2003 2.622 0.000 2.037 0.000 14.260 0.000 29.042 0.000 0.000 4.472 24.570
2004 2.544 0.000 1.976 0.000 14.260 0.000 28.171 0.000 0.000 4.338 23.833
2005 2.467 0.000 1.916 0.000 14.260 0.000 27.326 0.000 0.000 4.209 23.118
SUB 23.209 0.000 18.025 0.000 14.260 0.000 257.034 0.000 10.000 39.583 207.453
REM 17.412 0.000 13.522 0.000 14.260 0.000 192.826 0.000 0.000 29.695 163.130
TOT 40.621 0.000 31.547 0.000 14.260 0.000 449.860 0.000 10.000 69.278 370.583
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 1.711 1.347
1998 29.818 23.423
1999 57.568 21.028
2000 84.489 18.545
2001 110.602 16.353
2002 135.932 14.421
2003 160.502 12.717
2004 184.335 11.214
2005 207.453 9.888
SUB 207.453 128.936
REM 370.583 47.087
TOT 370.583 176.023
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
Bdepicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
S. CARLTON (SCOTT 11-6) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 174.631
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 130.216
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 101.152
GROSS RES. MB & MMF 40.622 0.000 25.00 81.168
SEQ: 633 GROSS ULT. MB & MMF 40.622 0.000 30.00 66.836
INIT W.I 100.000 LIFE/YR 17.583 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.000 0.000 0.777 0.000 14.260 0.000 11.074 0.000 10.000 1.705 -0.631
1998 3.000 0.000 2.330 0.000 14.260 0.000 33.223 0.000 0.000 5.116 28.107
1999 2.969 0.000 2.305 0.000 14.260 0.000 32.875 0.000 0.000 5.062 27.812
2000 2.881 0.000 2.237 0.000 14.260 0.000 31.902 0.000 0.000 4.913 26.989
2001 2.794 0.000 2.170 0.000 14.260 0.000 30.945 0.000 0.000 4.765 26.179
2002 2.710 0.000 2.105 0.000 14.260 0.000 30.017 0.000 0.000 4.623 25.394
2003 2.629 0.000 2.042 0.000 14.260 0.000 29.116 0.000 0.000 4.484 24.632
2004 2.550 0.000 1.981 0.000 14.260 0.000 28.243 0.000 0.000 4.349 23.893
2005 2.474 0.000 1.921 0.000 14.260 0.000 27.395 0.000 0.000 4.219 23.176
SUB 23.007 0.000 17.867 0.000 14.260 0.000 254.790 0.000 10.000 39.236 205.551
REM 17.616 0.000 13.680 0.000 14.260 0.000 195.071 0.000 0.000 30.040 165.029
TOT 40.623 0.000 31.547 0.000 14.260 0.000 449.861 0.000 10.000 69.276 370.580
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -0.631 -0.702
1998 27.476 23.423
1999 55.288 21.075
2000 82.277 18.592
2001 108.456 16.395
2002 133.850 14.457
2003 158.482 12.749
2004 182.375 11.242
2005 205.551 9.914
SUB 205.551 127.145
REM 370.580 47.486
TOT 370.580 174.631
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
S. CARLTON (SCOTT 15-14) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 180.268
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 136.426
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 107.490
GROSS RES. MB & MMF 40.622 0.000 25.00 87.435
SEQ: 628 GROSS ULT. MB & MMF 40.622 0.000 30.00 72.944
INIT W.I 100.000 LIFE/YR 17.250 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 2.000 0.000 1.553 0.000 14.260 0.000 22.149 0.000 10.000 3.411 8.738
1998 2.999 0.000 2.329 0.000 14.260 0.000 33.209 0.000 0.000 5.114 28.095
1999 2.940 0.000 2.283 0.000 14.260 0.000 32.556 0.000 0.000 5.014 27.543
2000 2.852 0.000 2.215 0.000 14.260 0.000 31.580 0.000 0.000 4.863 26.716
2001 2.766 0.000 2.148 0.000 14.260 0.000 30.632 0.000 0.000 4.717 25.915
2002 2.683 0.000 2.084 0.000 14.260 0.000 29.713 0.000 0.000 4.576 25.137
2003 2.603 0.000 2.021 0.000 14.260 0.000 28.822 0.000 0.000 4.438 24.383
2004 2.525 0.000 1.961 0.000 14.260 0.000 27.957 0.000 0.000 4.306 23.652
2005 2.449 0.000 1.902 0.000 14.260 0.000 27.119 0.000 0.000 4.176 22.942
SUB 23.817 0.000 18.495 0.000 14.260 0.000 263.737 0.000 10.000 40.615 213.121
REM 16.807 0.000 13.052 0.000 14.260 0.000 186.123 0.000 0.000 28.665 157.460
TOT 40.624 0.000 31.547 0.000 14.260 0.000 449.860 0.000 10.000 69.280 370.581
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 8.738 7.592
1998 36.833 23.413
1999 64.376 20.871
2000 91.092 18.405
2001 117.007 16.229
2002 142.144 14.311
2003 166.527 12.620
2004 190.179 11.129
2005 213.121 9.813
SUB 213.121 134.383
REM 370.581 45.885
TOT 370.581 180.268
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
S. CARLTON (SCOTT 9-9) P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 178.842
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 134.847
PILOT GROSS CUM. MB & MMF 0.000 0.000 20.00 105.869
GROSS RES. MB & MMF 40.622 0.000 25.00 85.824
SEQ: 629 GROSS ULT. MB & MMF 40.622 0.000 30.00 71.366
INIT W.I 100.000 LIFE/YR 17.333 RATE-OF-RETURN, % 100.00
INIT N.I 77.660 OPC/W 0 UNDISC NET/INVEST 38.06
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.750 0.000 1.359 0.000 14.260 0.000 19.380 0.000 10.000 2.985 6.396
1998 3.000 0.000 2.330 0.000 14.260 0.000 33.219 0.000 0.000 5.116 28.104
1999 2.947 0.000 2.289 0.000 14.260 0.000 32.639 0.000 0.000 5.027 27.613
2000 2.859 0.000 2.220 0.000 14.260 0.000 31.660 0.000 0.000 4.876 26.784
2001 2.773 0.000 2.154 0.000 14.260 0.000 30.710 0.000 0.000 4.729 25.981
2002 2.690 0.000 2.089 0.000 14.260 0.000 29.789 0.000 0.000 4.588 25.201
2003 2.609 0.000 2.026 0.000 14.260 0.000 28.895 0.000 0.000 4.450 24.445
2004 2.531 0.000 1.966 0.000 14.260 0.000 28.028 0.000 0.000 4.317 23.712
2005 2.455 0.000 1.907 0.000 14.260 0.000 27.187 0.000 0.000 4.187 23.001
SUB 23.614 0.000 18.339 0.000 14.260 0.000 261.507 0.000 10.000 40.275 211.237
REM 17.008 0.000 13.208 0.000 14.260 0.000 188.352 0.000 0.000 29.007 159.345
TOT 40.622 0.000 31.547 0.000 14.260 0.000 449.859 0.000 10.000 69.282 370.582
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 6.396 5.494
1998 34.500 23.420
1999 62.113 20.924
2000 88.897 18.451
2001 114.878 16.271
2002 140.079 14.348
2003 164.524 12.652
2004 188.236 11.157
2005 211.237 9.838
SUB 211.237 132.555
REM 370.582 46.286
TOT 370.582 178.841
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 01 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 46.201
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -15.488
GROSS CUM. MB & MMF 0.000 0.000 20.00 -53.537
GROSS RES. MB & MMF 100.106 0.000 25.00 -78.171
SEQ: 288 GROSS ULT. MB & MMF 100.106 0.000 30.00 -94.723
INIT W.I 100.000 LIFE/YR 20.667 RATE-OF-RETURN, % 13.74
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 8.422 0.000 6.541 0.000 14.260 0.000 93.268 10.800 300.000 14.363 -231.895
1998 7.012 0.000 5.446 0.000 14.260 0.000 77.658 14.400 0.000 11.960 51.299
1999 5.984 0.000 4.647 0.000 14.260 0.000 66.265 14.400 0.000 10.205 41.661
2000 5.776 0.000 4.486 0.000 14.260 0.000 63.966 14.400 0.000 9.851 39.715
2001 5.603 0.000 4.351 0.000 14.260 0.000 62.047 14.400 0.000 9.556 38.092
2002 5.435 0.000 4.221 0.000 14.260 0.000 60.186 14.400 0.000 9.269 36.517
2003 5.272 0.000 4.094 0.000 14.260 0.000 58.380 14.400 0.000 8.991 34.990
2004 5.114 0.000 3.971 0.000 14.260 0.000 56.629 14.400 0.000 8.721 33.508
2005 4.960 0.000 3.852 0.000 14.260 0.000 54.930 14.400 0.000 8.459 32.071
SUB 53.578 0.000 41.608 0.000 14.260 0.000 593.329 126.000 300.000 91.375 75.958
REM 46.529 0.000 36.135 0.000 14.260 0.000 515.279 162.000 0.000 79.353 273.928
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.728 349.886
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -231.895 -219.632
1998 -180.596 42.865
1999 -138.935 31.580
2000 -99.220 27.362
2001 -61.128 23.857
2002 -24.611 20.792
2003 10.379 18.111
2004 43.887 15.768
2005 75.958 13.719
SUB 75.958 -25.578
REM 349.886 71.778
TOT 349.886 46.200
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 02 P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 45.836
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -15.308
GROSS CUM. MB & MMF 0.000 0.000 20.00 -52.729
GROSS RES. MB & MMF 100.106 0.000 25.00 -76.731
SEQ: 289 GROSS ULT. MB & MMF 100.106 0.000 30.00 -92.674
INIT W.I 100.000 LIFE/YR 20.750 RATE-OF-RETURN, % 13.75
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 7.687 0.000 5.970 0.000 14.260 0.000 85.134 9.600 300.000 13.110 -237.577
1998 7.220 0.000 5.607 0.000 14.260 0.000 79.953 14.400 0.000 12.312 53.240
1999 6.022 0.000 4.676 0.000 14.260 0.000 66.686 14.400 0.000 10.270 42.016
2000 5.791 0.000 4.497 0.000 14.260 0.000 64.129 14.400 0.000 9.876 39.853
2001 5.617 0.000 4.362 0.000 14.260 0.000 62.205 14.400 0.000 9.579 38.225
2002 5.449 0.000 4.231 0.000 14.260 0.000 60.339 14.400 0.000 9.292 36.646
2003 5.285 0.000 4.104 0.000 14.260 0.000 58.528 14.400 0.000 9.014 35.115
2004 5.127 0.000 3.981 0.000 14.260 0.000 56.773 14.400 0.000 8.743 33.630
2005 4.973 0.000 3.862 0.000 14.260 0.000 55.069 14.400 0.000 8.481 32.189
SUB 53.171 0.000 41.291 0.000 14.260 0.000 588.816 124.800 300.000 90.677 73.337
REM 46.936 0.000 36.451 0.000 14.260 0.000 519.794 163.200 0.000 80.051 276.546
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.610 288.000 300.000 170.728 349.883
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -237.577 -222.839
1998 -184.337 44.512
1999 -142.321 31.855
2000 -102.468 27.456
2001 -64.243 23.941
2002 -27.597 20.866
2003 7.518 18.176
2004 41.148 15.825
2005 73.337 13.770
SUB 73.337 -26.438
REM 349.883 72.275
TOT 349.883 45.837
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 03 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 45.473
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -15.131
GROSS CUM. MB & MMF 0.000 0.000 20.00 -51.934
GROSS RES. MB & MMF 100.106 0.000 25.00 -75.318
SEQ: 290 GROSS ULT. MB & MMF 100.106 0.000 30.00 -90.670
INIT W.I 100.000 LIFE/YR 20.833 RATE-OF-RETURN, % 13.75
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 6.909 0.000 5.366 0.000 14.260 0.000 76.516 8.400 300.000 11.784 -243.668
1998 7.462 0.000 5.795 0.000 14.260 0.000 82.642 14.400 0.000 12.727 55.515
1999 6.066 0.000 4.711 0.000 14.260 0.000 67.182 14.400 0.000 10.346 42.436
2000 5.805 0.000 4.509 0.000 14.260 0.000 64.292 14.400 0.000 9.901 39.991
2001 5.631 0.000 4.373 0.000 14.260 0.000 62.363 14.400 0.000 9.604 38.359
2002 5.462 0.000 4.242 0.000 14.260 0.000 60.492 14.400 0.000 9.316 36.776
2003 5.298 0.000 4.115 0.000 14.260 0.000 58.677 14.400 0.000 9.037 35.241
2004 5.140 0.000 3.991 0.000 14.260 0.000 56.917 14.400 0.000 8.766 33.752
2005 4.985 0.000 3.872 0.000 14.260 0.000 55.209 14.400 0.000 8.502 32.307
SUB 52.758 0.000 40.974 0.000 14.260 0.000 584.290 123.600 300.000 89.983 70.709
REM 47.346 0.000 36.769 0.000 14.260 0.000 524.319 164.400 0.000 80.745 279.175
TOT 100.104 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.728 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -243.668 -226.377
1998 -188.153 46.441
1999 -145.717 32.179
2000 -105.726 27.551
2001 -67.367 24.025
2002 -30.591 20.940
2003 4.650 18.241
2004 38.402 15.882
2005 70.709 13.821
SUB 70.709 -27.297
REM 349.884 72.769
TOT 349.884 45.472
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 04 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 45.113
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -14.956
GROSS CUM. MB & MMF 0.000 0.000 20.00 -51.151
GROSS RES. MB & MMF 100.106 0.000 25.00 -73.930
SEQ: 291 GROSS ULT. MB & MMF 100.106 0.000 30.00 -88.709
INIT W.I 100.000 LIFE/YR 20.917 RATE-OF-RETURN, % 13.76
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 6.085 0.000 4.725 0.000 14.260 0.000 67.385 7.200 300.000 10.378 -250.192
1998 7.743 0.000 6.014 0.000 14.260 0.000 85.753 14.400 0.000 13.206 58.147
1999 6.118 0.000 4.751 0.000 14.260 0.000 67.756 14.400 0.000 10.435 42.921
2000 5.820 0.000 4.520 0.000 14.260 0.000 64.455 14.400 0.000 9.927 40.129
2001 5.646 0.000 4.384 0.000 14.260 0.000 62.521 14.400 0.000 9.628 38.493
2002 5.476 0.000 4.253 0.000 14.260 0.000 60.646 14.400 0.000 9.340 36.906
2003 5.312 0.000 4.125 0.000 14.260 0.000 58.826 14.400 0.000 9.060 35.367
2004 5.153 0.000 4.002 0.000 14.260 0.000 57.062 14.400 0.000 8.787 33.874
2005 4.998 0.000 3.881 0.000 14.260 0.000 55.350 14.400 0.000 8.524 32.426
SUB 52.351 0.000 40.656 0.000 14.260 0.000 579.754 122.400 300.000 89.285 68.071
REM 47.756 0.000 37.087 0.000 14.260 0.000 528.858 165.600 0.000 81.445 281.813
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.612 288.000 300.000 170.730 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -250.192 -230.264
1998 -192.045 48.672
1999 -149.124 32.554
2000 -108.995 27.647
2001 -70.502 24.109
2002 -33.596 21.014
2003 1.771 18.307
2004 35.645 15.940
2005 68.071 13.871
SUB 68.071 -28.150
REM 349.884 73.264
TOT 349.884 45.114
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 05 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 44.757
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -14.783
GROSS CUM. MB & MMF 0.000 0.000 20.00 -50.380
GROSS RES. MB & MMF 100.106 0.000 25.00 -72.568
SEQ: 292 GROSS ULT. MB & MMF 100.106 0.000 30.00 -86.791
INIT W.I 100.000 LIFE/YR 21.000 RATE-OF-RETURN, % 13.76
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 5.211 0.000 4.047 0.000 14.260 0.000 57.711 6.000 300.000 8.887 -257.176
1998 8.065 0.000 6.263 0.000 14.260 0.000 89.314 14.400 0.000 13.754 61.160
1999 6.177 0.000 4.797 0.000 14.260 0.000 68.407 14.400 0.000 10.535 43.472
2000 5.835 0.000 4.531 0.000 14.260 0.000 64.619 14.400 0.000 9.951 40.268
2001 5.660 0.000 4.396 0.000 14.260 0.000 62.680 14.400 0.000 9.653 38.627
2002 5.490 0.000 4.264 0.000 14.260 0.000 60.800 14.400 0.000 9.363 37.037
2003 5.325 0.000 4.136 0.000 14.260 0.000 58.976 14.400 0.000 9.083 35.494
2004 5.166 0.000 4.012 0.000 14.260 0.000 57.207 14.400 0.000 8.810 33.997
2005 5.011 0.000 3.891 0.000 14.260 0.000 55.490 14.400 0.000 8.545 32.545
SUB 51.940 0.000 40.337 0.000 14.260 0.000 575.204 121.200 300.000 88.581 65.424
REM 48.166 0.000 37.406 0.000 14.260 0.000 533.405 166.800 0.000 82.144 284.461
TOT 100.106 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.725 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -257.176 -234.520
1998 -196.016 51.223
1999 -152.544 32.978
2000 -112.276 27.742
2001 -73.649 24.193
2002 -36.612 21.088
2003 -1.118 18.372
2004 32.879 15.998
2005 65.424 13.922
SUB 65.424 -29.004
REM 349.885 73.761
TOT 349.885 44.757
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 06 P.W. % P.W., M$
LATEX OIL GAS ------ ---------
---------- ---------- 10.00 44.402
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -14.611
GROSS CUM. MB & MMF 0.000 0.000 20.00 -49.620
GROSS RES. MB & MMF 100.106 0.000 25.00 -71.231
SEQ: 293 GROSS ULT. MB & MMF 100.106 0.000 30.00 -84.914
INIT W.I 100.000 LIFE/YR 21.083 RATE-OF-RETURN, % 13.76
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 4.286 0.000 3.328 0.000 14.260 0.000 47.463 4.800 300.000 7.309 -264.647
1998 8.430 0.000 6.547 0.000 14.260 0.000 93.358 14.400 0.000 14.377 64.581
1999 6.243 0.000 4.848 0.000 14.260 0.000 69.138 14.400 0.000 10.647 44.091
2000 5.850 0.000 4.543 0.000 14.260 0.000 64.783 14.400 0.000 9.976 40.406
2001 5.674 0.000 4.407 0.000 14.260 0.000 62.840 14.400 0.000 9.677 38.762
2002 5.504 0.000 4.275 0.000 14.260 0.000 60.954 14.400 0.000 9.387 37.167
2003 5.339 0.000 4.146 0.000 14.260 0.000 59.126 14.400 0.000 9.106 35.620
2004 5.179 0.000 4.022 0.000 14.260 0.000 57.352 14.400 0.000 8.832 34.120
2005 5.023 0.000 3.901 0.000 14.260 0.000 55.631 14.400 0.000 8.567 32.664
SUB 51.528 0.000 40.017 0.000 14.260 0.000 570.645 120.000 300.000 87.878 62.764
REM 48.577 0.000 37.725 0.000 14.260 0.000 537.964 168.000 0.000 82.845 287.118
TOT 100.105 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.723 349.882
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -264.647 -239.165
1998 -200.066 54.115
1999 -155.975 33.453
2000 -115.569 27.838
2001 -76.807 24.277
2002 -39.640 21.162
2003 -4.020 18.438
2004 30.100 16.056
2005 62.764 13.973
SUB 62.764 -29.853
REM 349.882 74.257
TOT 349.882 44.404
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC. CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 07 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 44.051
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -14.442
GROSS CUM. MB & MMF 0.000 0.000 20.00 -48.872
GROSS RES. MB & MMF 100.106 0.000 25.00 -69.919
SEQ: 294 GROSS ULT. MB & MMF 100.106 0.000 30.00 -83.077
INIT W.I 100.000 LIFE/YR 21.167 RATE-OF-RETURN, % 13.77
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 3.305 0.000 2.567 0.000 14.260 0.000 36.604 3.600 300.000 5.637 -272.633
1998 8.842 0.000 6.866 0.000 14.260 0.000 97.915 14.400 0.000 15.079 68.436
1999 6.316 0.000 4.905 0.000 14.260 0.000 69.951 14.400 0.000 10.772 44.778
2000 5.865 0.000 4.555 0.000 14.260 0.000 64.948 14.400 0.000 10.002 40.546
2001 5.689 0.000 4.418 0.000 14.260 0.000 62.999 14.400 0.000 9.702 38.897
2002 5.518 0.000 4.285 0.000 14.260 0.000 61.109 14.400 0.000 9.411 37.298
2003 5.353 0.000 4.157 0.000 14.260 0.000 59.276 14.400 0.000 9.129 35.748
2004 5.192 0.000 4.032 0.000 14.260 0.000 57.498 14.400 0.000 8.855 34.243
2005 5.036 0.000 3.911 0.000 14.260 0.000 55.773 14.400 0.000 8.589 32.784
SUB 51.116 0.000 39.697 0.000 14.260 0.000 566.073 118.800 300.000 87.176 60.097
REM 48.991 0.000 38.046 0.000 14.260 0.000 542.535 169.200 0.000 83.549 289.785
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.725 349.882
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -272.633 -244.223
1998 -204.197 57.369
1999 -159.419 33.980
2000 -118.873 27.934
2001 -79.976 24.362
2002 -42.678 21.237
2003 -6.930 18.504
2004 27.313 16.114
2005 60.097 14.025
SUB 60.097 -30.698
REM 349.882 74.752
TOT 349.882 44.054
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 08 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 43.703
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -14.275
GROSS CUM. MB & MMF 0.000 0.000 20.00 -48.135
GROSS RES. MB & MMF 100.106 0.000 25.00 -68.630
SEQ: 295 GROSS ULT. MB & MMF 100.106 0.000 30.00 -81.281
INIT W.I 100.000 LIFE/YR 21.250 RATE-OF-RETURN, % 13.77
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 2.267 0.000 1.760 0.000 14.260 0.000 25.101 2.400 300.000 3.865 -281.165
1998 9.303 0.000 7.225 0.000 14.260 0.000 103.022 14.400 0.000 15.865 72.757
1999 6.397 0.000 4.968 0.000 14.260 0.000 70.846 14.400 0.000 10.911 45.535
2000 5.880 0.000 4.566 0.000 14.260 0.000 65.113 14.400 0.000 10.027 40.685
2001 5.703 0.000 4.429 0.000 14.260 0.000 63.159 14.400 0.000 9.727 39.033
2002 5.532 0.000 4.296 0.000 14.260 0.000 61.265 14.400 0.000 9.434 37.430
2003 5.366 0.000 4.167 0.000 14.260 0.000 59.427 14.400 0.000 9.152 35.875
2004 5.205 0.000 4.042 0.000 14.260 0.000 57.644 14.400 0.000 8.877 34.367
2005 5.049 0.000 3.921 0.000 14.260 0.000 55.915 14.400 0.000 8.610 32.904
SUB 50.702 0.000 39.375 0.000 14.260 0.000 561.492 117.600 300.000 86.468 57.421
REM 49.406 0.000 38.367 0.000 14.260 0.000 547.121 170.400 0.000 84.258 292.464
TOT 100.108 0.000 77.743 0.000 14.260 0.000 1108.613 288.000 300.000 170.726 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -281.165 -249.716
1998 -208.408 61.008
1999 -162.873 34.559
2000 -122.188 28.030
2001 -83.155 24.447
2002 -45.725 21.312
2003 -9.850 18.570
2004 24.517 16.172
2005 57.421 14.076
SUB 57.421 -31.542
REM 349.885 75.245
TOT 349.885 43.703
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 09 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 43.357
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -14.110
GROSS CUM. MB & MMF 0.000 0.000 20.00 -47.409
GROSS RES. MB & MMF 100.106 0.000 25.00 -67.366
SEQ: 296 GROSS ULT. MB & MMF 100.106 0.000 30.00 -79.523
INIT W.I 100.000 LIFE/YR 21.333 RATE-OF-RETURN, % 13.77
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.166 0.000 0.906 0.000 14.260 0.000 12.913 1.200 300.000 1.988 -290.276
1998 9.817 0.000 7.624 0.000 14.260 0.000 108.715 14.400 0.000 16.743 77.573
1999 6.486 0.000 5.037 0.000 14.260 0.000 71.824 14.400 0.000 11.061 46.363
2000 5.895 0.000 4.578 0.000 14.260 0.000 65.278 14.400 0.000 10.053 40.825
2001 5.718 0.000 4.440 0.000 14.260 0.000 63.320 14.400 0.000 9.751 39.169
2002 5.546 0.000 4.307 0.000 14.260 0.000 61.420 14.400 0.000 9.459 37.562
2003 5.380 0.000 4.178 0.000 14.260 0.000 59.578 14.400 0.000 9.175 36.003
2004 5.218 0.000 4.053 0.000 14.260 0.000 57.790 14.400 0.000 8.900 34.491
2005 5.062 0.000 3.931 0.000 14.260 0.000 56.057 14.400 0.000 8.633 33.024
SUB 50.288 0.000 39.053 0.000 14.260 0.000 556.895 116.400 300.000 85.763 54.734
REM 49.820 0.000 38.690 0.000 14.260 0.000 551.715 171.600 0.000 84.962 295.151
TOT 100.108 0.000 77.743 0.000 14.260 0.000 1108.610 288.000 300.000 170.725 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -290.276 -255.669
1998 -212.703 65.057
1999 -166.340 35.190
2000 -125.515 28.126
2001 -86.346 24.532
2002 -48.784 21.387
2003 -12.781 18.636
2004 21.710 16.230
2005 54.734 14.127
SUB 54.734 -32.384
REM 349.885 75.743
TOT 349.885 43.359
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 10 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 43.014
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.946
GROSS CUM. MB & MMF 0.000 0.000 20.00 -46.694
GROSS RES. MB & MMF 100.106 0.000 25.00 -66.125
SEQ: 297 GROSS ULT. MB & MMF 100.106 0.000 30.00 -77.803
INIT W.I 100.000 LIFE/YR 21.417 RATE-OF-RETURN, % 13.78
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 10.387 0.000 8.067 0.000 14.260 0.000 115.033 14.400 300.000 17.715 -217.082
1999 6.582 0.000 5.111 0.000 14.260 0.000 72.889 14.400 0.000 11.225 47.264
2000 5.910 0.000 4.589 0.000 14.260 0.000 65.444 14.400 0.000 10.078 40.966
2001 5.732 0.000 4.452 0.000 14.260 0.000 63.481 14.400 0.000 9.776 39.305
2002 5.560 0.000 4.318 0.000 14.260 0.000 61.576 14.400 0.000 9.483 37.694
2003 5.393 0.000 4.189 0.000 14.260 0.000 59.729 14.400 0.000 9.198 36.131
2004 5.232 0.000 4.063 0.000 14.260 0.000 57.937 14.400 0.000 8.923 34.615
2005 5.075 0.000 3.941 0.000 14.260 0.000 56.199 14.400 0.000 8.655 33.144
SUB 49.871 0.000 38.730 0.000 14.260 0.000 552.288 115.200 300.000 85.053 52.037
REM 50.235 0.000 39.013 0.000 14.260 0.000 556.320 172.800 0.000 85.673 297.848
TOT 100.106 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.726 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -217.082 -192.569
1999 -169.818 35.874
2000 -128.852 28.223
2001 -89.547 24.617
2002 -51.853 21.462
2003 -15.722 18.702
2004 18.893 16.289
2005 52.037 14.179
SUB 52.037 -33.223
REM 349.885 76.237
TOT 349.885 43.014
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and through and thousands
of cubic feet, respectively, at this lease in the years 1988 through 2007,
inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 11 P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 42.674
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.785
GROSS CUM. MB & MMF 0.000 0.000 20.00 -45.990
GROSS RES. MB & MMF 100.106 0.000 25.00 -64.907
SEQ: 298 GROSS ULT. MB & MMF 100.106 0.000 30.00 -76.120
INIT W.I 100.000 LIFE/YR 21.500 RATE-OF-RETURN, % 13.78
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 9.770 0.000 7.587 0.000 14.260 0.000 108.193 13.200 300.000 16.661 -221.669
1999 6.696 0.000 5.200 0.000 14.260 0.000 74.149 14.400 0.000 11.419 48.330
2000 5.928 0.000 4.603 0.000 14.260 0.000 65.646 14.400 0.000 10.110 41.136
2001 5.747 0.000 4.463 0.000 14.260 0.000 63.642 14.400 0.000 9.801 39.441
2002 5.574 0.000 4.329 0.000 14.260 0.000 61.733 14.400 0.000 9.507 37.826
2003 5.407 0.000 4.199 0.000 14.260 0.000 59.881 14.400 0.000 9.222 36.259
2004 5.245 0.000 4.073 0.000 14.260 0.000 58.084 14.400 0.000 8.945 34.739
2005 5.088 0.000 3.951 0.000 14.260 0.000 56.342 14.400 0.000 8.676 33.265
SUB 49.455 0.000 38.406 0.000 14.260 0.000 547.670 114.000 300.000 84.341 49.327
REM 50.652 0.000 39.337 0.000 14.260 0.000 560.938 174.000 0.000 86.383 300.555
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.724 349.882
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -221.669 -194.674
1999 -173.339 36.687
2000 -132.203 28.341
2001 -92.762 24.703
2002 -54.936 21.537
2003 -18.677 18.768
2004 16.062 16.347
2005 49.327 14.230
SUB 49.327 -34.061
REM 349.882 76.732
TOT 349.882 42.671
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and through and thousands
of cubic feet, respectively, at this lease in the years 1988 through 2007,
inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 12 P.W. % P.W., M$
LATEX OIL GAS ------ --------
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.625
GROSS CUM. MB & MMF 0.000 0.000 20.00 -45.297
GROSS RES. MB & MMF 100.106 0.000 25.00 -63.711
SEQ: 299 GROSS ULT. MB & MMF 100.106 0.000 30.00 -74.474
INIT W.I 100.000 LIFE/YR 21.583 RATE-OF-RETURN, % 13.78
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 9.115 0.000 7.079 0.000 14.260 0.000 100.946 12.000 300.000 15.546 -226.600
1999 6.838 0.000 5.311 0.000 14.260 0.000 75.732 14.400 0.000 11.663 49.669
2000 5.952 0.000 4.623 0.000 14.260 0.000 65.919 14.400 0.000 10.152 41.368
2001 5.761 0.000 4.474 0.000 14.260 0.000 63.804 14.400 0.000 9.825 39.578
2002 5.589 0.000 4.340 0.000 14.260 0.000 61.890 14.400 0.000 9.531 37.959
2003 5.421 0.000 4.210 0.000 14.260 0.000 60.033 14.400 0.000 9.245 36.388
2004 5.258 0.000 4.084 0.000 14.260 0.000 58.232 14.400 0.000 8.968 34.864
2005 5.101 0.000 3.961 0.000 14.260 0.000 56.485 14.400 0.000 8.699 33.386
SUB 49.035 0.000 38.081 0.000 14.260 0.000 543.041 112.800 300.000 83.629 46.612
REM 51.070 0.000 39.661 0.000 14.260 0.000 565.571 175.200 0.000 87.099 303.272
TOT 100.105 0.000 77.743 0.000 14.260 0.000 1108.612 288.000 300.000 170.728 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -226.600 -197.035
1999 -176.931 37.714
2000 -135.563 28.503
2001 -95.985 24.788
2002 -58.026 21.613
2003 -21.638 18.835
2004 13.226 16.406
2005 46.612 14.282
SUB 46.612 -34.894
REM 349.884 77.229
TOT 349.884 42.335
</TABLE>
THIS SCHEDULE IS A PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 13 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 42.001
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.467
GROSS CUM. MB & MMF 0.000 0.000 20.00 -44.614
GROSS RES. MB & MMF 100.106 0.000 25.00 -62.537
SEQ: 300 GROSS ULT. MB & MMF 100.106 0.000 30.00 -72.864
INIT W.I 100.000 LIFE/YR 21.667 RATE-OF-RETURN, % 13.79
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 8.422 0.000 6.541 0.000 14.260 0.000 93.268 10.800 300.000 14.363 -231.895
1999 7.012 0.000 5.446 0.000 14.260 0.000 77.658 14.400 0.000 11.960 51.299
2000 5.984 0.000 4.647 0.000 14.260 0.000 66.265 14.400 0.000 10.205 41.661
2001 5.776 0.000 4.486 0.000 14.260 0.000 63.966 14.400 0.000 9.851 39.715
2002 5.603 0.000 4.351 0.000 14.260 0.000 62.047 14.400 0.000 9.556 38.092
2003 5.435 0.000 4.221 0.000 14.260 0.000 60.186 14.400 0.000 9.269 36.517
2004 5.272 0.000 4.094 0.000 14.260 0.000 58.380 14.400 0.000 8.991 34.990
2005 5.114 0.000 3.971 0.000 14.260 0.000 56.629 14.400 0.000 8.721 33.508
SUB 48.618 0.000 37.756 0.000 14.260 0.000 538.399 111.600 300.000 82.916 43.887
REM 51.489 0.000 39.987 0.000 14.260 0.000 570.209 176.400 0.000 87.812 305.999
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.728 349.886
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -231.895 -199.666
1999 -180.596 38.969
2000 -138.935 28.709
2001 -99.220 24.874
2002 -61.128 21.689
2003 -24.611 18.902
2004 10.379 16.465
2005 43.887 14.334
SUB 43.887 -35.724
REM 349.886 77.725
TOT 349.886 42.001
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 14 P.W. % P.W., M$
LATEX OIL GAS ------ -------
---------- ---------- 10.00 41.669
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.312
GROSS CUM. MB & MMF 0.000 0.000 20.00 -43.941
GROSS RES. MB & MMF 100.106 0.000 25.00 -61.385
SEQ: 301 GROSS ULT. MB & MMF 100.106 0.000 30.00 -71.288
INIT W.I 100.000 LIFE/YR 21.750 RATE-OF-RETURN, % 13.79
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 7.687 0.000 5.970 0.000 14.260 0.000 85.134 9.600 300.000 13.110 -237.577
1999 7.220 0.000 5.607 0.000 14.260 0.000 79.953 14.400 0.000 12.312 53.240
2000 6.022 0.000 4.676 0.000 14.260 0.000 66.686 14.400 0.000 10.270 42.016
2001 5.791 0.000 4.497 0.000 14.260 0.000 64.129 14.400 0.000 9.876 39.853
2002 5.617 0.000 4.362 0.000 14.260 0.000 62.205 14.400 0.000 9.579 38.225
2003 5.449 0.000 4.231 0.000 14.260 0.000 60.339 14.400 0.000 9.292 36.646
2004 5.285 0.000 4.104 0.000 14.260 0.000 58.528 14.400 0.000 9.014 35.115
2005 5.127 0.000 3.981 0.000 14.260 0.000 56.773 14.400 0.000 8.743 33.630
SUB 48.198 0.000 37.430 0.000 14.260 0.000 533.747 110.400 300.000 82.196 41.148
REM 51.909 0.000 40.313 0.000 14.260 0.000 574.863 177.600 0.000 88.532 308.735
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.610 288.000 300.000 170.728 349.883
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -237.577 -202.581
1999 -184.337 40.465
2000 -142.321 28.959
2001 -102.468 24.960
2002 -64.243 21.765
2003 -27.597 18.969
2004 7.518 16.524
2005 41.148 14.386
SUB 41.148 -36.553
REM 349.883 78.222
TOT 349.883 41.669
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 15 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 41.339
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.157
GROSS CUM. MB & MMF 0.000 0.000 20.00 -43.279
GROSS RES. MB & MMF 100.106 0.000 25.00 -60.254
SEQ: 302 GROSS ULT. MB & MMF 100.106 0.000 30.00 -69.746
INIT W.I 100.000 LIFE/YR 21.833 RATE-OF-RETURN, % 13.79
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 6.909 0.000 5.366 0.000 14.260 0.000 76.516 8.400 300.000 11.784 -243.668
1999 7.462 0.000 5.795 0.000 14.260 0.000 82.642 14.400 0.000 12.727 55.515
2000 6.066 0.000 4.711 0.000 14.260 0.000 67.182 14.400 0.000 10.346 42.436
2001 5.805 0.000 4.509 0.000 14.260 0.000 64.292 14.400 0.000 9.901 39.991
2002 5.631 0.000 4.373 0.000 14.260 0.000 62.363 14.400 0.000 9.604 38.359
2003 5.462 0.000 4.242 0.000 14.260 0.000 60.492 14.400 0.000 9.316 36.776
2004 5.298 0.000 4.115 0.000 14.260 0.000 58.677 14.400 0.000 9.037 35.241
2005 5.140 0.000 3.991 0.000 14.260 0.000 56.917 14.400 0.000 8.766 33.752
SUB 47.773 0.000 37.102 0.000 14.260 0.000 529.081 109.200 300.000 81.481 38.402
REM 52.331 0.000 40.640 0.000 14.260 0.000 579.528 178.800 0.000 89.247 311.482
TOT 100.104 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.728 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -243.668 -205.797
1999 -188.153 42.219
2000 -145.717 29.254
2001 -105.726 25.047
2002 -67.367 21.841
2003 -30.591 19.036
2004 4.650 16.583
2005 38.402 14.439
SUB 38.402 -37.378
REM 349.884 78.719
TOT 349.884 41.341
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
S. CARLTON - LOC 16 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 41.012
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -13.005
GROSS CUM. MB & MMF 0.000 0.000 20.00 -42.626
GROSS RES. MB & MMF 100.106 0.000 25.00 -59.144
SEQ: 303 GROSS ULT. MB & MMF 100.106 0.000 30.00 -68.238
INIT W.I 100.000 LIFE/YR 21.917 RATE-OF-RETURN, % 13.80
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 6.085 0.000 4.725 0.000 14.260 0.000 67.385 7.200 300.000 10.378 -250.192
1999 7.743 0.000 6.014 0.000 14.260 0.000 85.753 14.400 0.000 13.206 58.147
2000 6.118 0.000 4.751 0.000 14.260 0.000 67.756 14.400 0.000 10.435 42.921
2001 5.820 0.000 4.520 0.000 14.260 0.000 64.455 14.400 0.000 9.927 40.129
2002 5.646 0.000 4.384 0.000 14.260 0.000 62.521 14.400 0.000 9.628 38.493
2003 5.476 0.000 4.253 0.000 14.260 0.000 60.646 14.400 0.000 9.340 36.906
2004 5.312 0.000 4.125 0.000 14.260 0.000 58.826 14.400 0.000 9.060 35.367
2005 5.153 0.000 4.002 0.000 14.260 0.000 57.062 14.400 0.000 8.787 33.874
SUB 47.353 0.000 36.774 0.000 14.260 0.000 524.404 108.000 300.000 80.761 35.645
REM 52.754 0.000 40.968 0.000 14.260 0.000 584.208 180.000 0.000 89.969 314.239
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.612 288.000 300.000 170.730 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -250.192 -209.331
1999 -192.045 44.247
2000 -149.124 29.594
2001 -108.995 25.133
2002 -70.502 21.917
2003 -33.596 19.103
2004 1.771 16.642
2005 35.645 14.491
SUB 35.645 -38.204
REM 349.884 79.213
TOT 349.884 41.009
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 17 P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 40.688
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -12.854
GROSS CUM. MB & MMF 0.000 0.000 20.00 -41.983
GROSS RES. MB & MMF 100.106 0.000 25.00 -58.054
SEQ: 280 GROSS ULT. MB & MMF 100.106 0.000 30.00 -66.762
INIT W.I 100.000 LIFE/YR 22.000 RATE-OF-RETURN, % 13.80
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 5.211 0.000 4.047 0.000 14.260 0.000 57.711 6.000 300.000 8.887 -257.176
1999 8.065 0.000 6.263 0.000 14.260 0.000 89.314 14.400 0.000 13.754 61.160
2000 6.177 0.000 4.797 0.000 14.260 0.000 68.407 14.400 0.000 10.535 43.472
2001 5.835 0.000 4.531 0.000 14.260 0.000 64.619 14.400 0.000 9.951 40.268
2002 5.660 0.000 4.396 0.000 14.260 0.000 62.680 14.400 0.000 9.653 38.627
2003 5.490 0.000 4.264 0.000 14.260 0.000 60.800 14.400 0.000 9.363 37.037
2004 5.325 0.000 4.136 0.000 14.260 0.000 58.976 14.400 0.000 9.083 35.494
2005 5.166 0.000 4.012 0.000 14.260 0.000 57.207 14.400 0.000 8.810 33.997
SUB 46.929 0.000 36.446 0.000 14.260 0.000 519.714 106.800 300.000 80.036 32.879
REM 53.177 0.000 41.297 0.000 14.260 0.000 588.895 181.200 0.000 90.689 317.006
TOT 100.106 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.725 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -257.176 -213.200
1999 -196.016 46.567
2000 -152.544 29.980
2001 -112.276 25.220
2002 -73.649 21.994
2003 -36.612 19.171
2004 -1.118 16.702
2005 32.879 14.543
SUB 32.879 -39.023
REM 349.885 79.711
TOT 349.885 40.688
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 18 P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 40.366
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -12.706
GROSS CUM. MB & MMF 0.000 0.000 20.00 -41.350
GROSS RES. MB & MMF 100.106 0.000 25.00 -56.985
SEQ: 304 GROSS ULT. MB & MMF 100.106 0.000 30.00 -65.318
INIT W.I 100.000 LIFE/YR 22.083 RATE-OF-RETURN, % 13.80
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 4.286 0.000 3.328 0.000 14.260 0.000 47.463 4.800 300.000 7.309 -264.647
1999 8.430 0.000 6.547 0.000 14.260 0.000 93.358 14.400 0.000 14.377 64.581
2000 6.243 0.000 4.848 0.000 14.260 0.000 69.138 14.400 0.000 10.647 44.091
2001 5.850 0.000 4.543 0.000 14.260 0.000 64.783 14.400 0.000 9.976 40.406
2002 5.674 0.000 4.407 0.000 14.260 0.000 62.840 14.400 0.000 9.677 38.762
2003 5.504 0.000 4.275 0.000 14.260 0.000 60.954 14.400 0.000 9.387 37.167
2004 5.339 0.000 4.146 0.000 14.260 0.000 59.126 14.400 0.000 9.106 35.620
2005 5.179 0.000 4.022 0.000 14.260 0.000 57.352 14.400 0.000 8.832 34.120
SUB 46.505 0.000 36.116 0.000 14.260 0.000 515.014 105.600 300.000 79.311 30.100
REM 53.600 0.000 41.627 0.000 14.260 0.000 593.595 182.400 0.000 91.412 319.782
TOT 100.105 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.723 349.882
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -264.647 -217.423
1999 -200.066 49.196
2000 -155.975 30.412
2001 -115.569 25.307
2002 -76.807 22.070
2003 -39.640 19.238
2004 -4.020 16.762
2005 30.100 14.596
SUB 30.100 -39.842
REM 349.882 80.207
TOT 349.882 40.365
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 19 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 40.047
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -12.558
GROSS CUM. MB & MMF 0.000 0.000 20.00 -40.727
GROSS RES. MB & MMF 100.106 0.000 25.00 -55.935
SEQ: 305 GROSS ULT. MB & MMF 100.106 0.000 30.00 -63.906
INIT W.I 100.000 LIFE/YR 22.167 RATE-OF-RETURN, % 13.81
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 3.305 0.000 2.567 0.000 14.260 0.000 36.604 3.600 300.000 5.637 -272.633
1999 8.842 0.000 6.866 0.000 14.260 0.000 97.915 14.400 0.000 15.079 68.436
2000 6.316 0.000 4.905 0.000 14.260 0.000 69.951 14.400 0.000 10.772 44.778
2001 5.865 0.000 4.555 0.000 14.260 0.000 64.948 14.400 0.000 10.002 40.546
2002 5.689 0.000 4.418 0.000 14.260 0.000 62.999 14.400 0.000 9.702 38.897
2003 5.518 0.000 4.285 0.000 14.260 0.000 61.109 14.400 0.000 9.411 37.298
2004 5.353 0.000 4.157 0.000 14.260 0.000 59.276 14.400 0.000 9.129 35.748
2005 5.192 0.000 4.032 0.000 14.260 0.000 57.498 14.400 0.000 8.855 34.243
SUB 46.080 0.000 35.785 0.000 14.260 0.000 510.300 104.400 300.000 78.587 27.313
REM 54.027 0.000 41.957 0.000 14.260 0.000 598.308 183.600 0.000 92.138 322.569
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.725 349.882
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -272.633 -222.021
1999 -204.197 52.154
2000 -159.419 30.891
2001 -118.873 25.394
2002 -79.976 22.147
2003 -42.678 19.306
2004 -6.930 16.821
2005 27.313 14.649
SUB 27.313 -40.659
REM 349.882 80.706
TOT 349.882 40.047
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 20 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 39.730
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -12.413
GROSS CUM. MB & MMF 0.000 0.000 20.00 -40.113
GROSS RES. MB & MMF 100.106 0.000 25.00 -54.904
SEQ: 306 GROSS ULT. MB & MMF 100.106 0.000 30.00 -62.523
INIT W.I 100.000 LIFE/YR 22.250 RATE-OF-RETURN, % 13.81
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 2.267 0.000 1.760 0.000 14.260 0.000 25.101 2.400 300.000 3.865 -281.165
1999 9.303 0.000 7.225 0.000 14.260 0.000 103.022 14.400 0.000 15.865 72.757
2000 6.397 0.000 4.968 0.000 14.260 0.000 70.846 14.400 0.000 10.911 45.535
2001 5.880 0.000 4.566 0.000 14.260 0.000 65.113 14.400 0.000 10.027 40.685
2002 5.703 0.000 4.429 0.000 14.260 0.000 63.159 14.400 0.000 9.727 39.033
2003 5.532 0.000 4.296 0.000 14.260 0.000 61.265 14.400 0.000 9.434 37.430
2004 5.366 0.000 4.167 0.000 14.260 0.000 59.427 14.400 0.000 9.152 35.875
2005 5.205 0.000 4.042 0.000 14.260 0.000 57.644 14.400 0.000 8.877 34.367
SUB 45.653 0.000 35.454 0.000 14.260 0.000 505.577 103.200 300.000 77.858 24.517
REM 54.455 0.000 42.288 0.000 14.260 0.000 603.036 184.800 0.000 92.868 325.368
TOT 100.108 0.000 77.743 0.000 14.260 0.000 1108.613 288.000 300.000 170.726 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -281.165 -227.015
1999 -208.408 55.462
2000 -162.873 31.417
2001 -122.188 25.482
2002 -83.155 22.224
2003 -45.725 19.374
2004 -9.850 16.881
2005 24.517 14.702
SUB 24.517 -41.473
REM 349.885 81.201
TOT 349.885 39.728
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
A-PROVED DEVE PRODUCING
RAY 5-5 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 1.929
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 1.790
PRUE GROSS CUM. MB & MMF 0.204 422.390 20.00 1.671
5 14N 19W GROSS RES. MB & MMF 0.000 57.764 25.00 1.567
SEQ: 518 GROSS ULT. MB & MMF 0.204 480.154 30.00 1.476
ORRI INIT W.I 0.000 LIFE/YR 3.917 RATE-OF-RETURN, % 100.00
INIT N.I 1.933 OPC/W 0 UNDISC NET/INVEST 0.00
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
1996 0.000 7.338 0.000 0.142 0.000 2.200 0.312 0.000 0.000 0.022 0.290
1997 0.000 16.350 0.000 0.316 0.000 2.200 0.695 0.000 0.000 0.049 0.646
1998 0.000 14.715 0.000 0.284 0.000 2.200 0.626 0.000 0.000 0.044 0.581
1999 0.000 13.244 0.000 0.256 0.000 2.200 0.563 0.000 0.000 0.040 0.523
2000 0.000 6.117 0.000 0.118 0.000 2.200 0.260 0.000 0.000 0.018 0.242
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 57.764 0.000 1.117 0.000 2.200 2.456 0.000 0.000 0.173 2.282
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 57.764 0.000 1.117 0.000 2.200 2.456 0.000 0.000 0.173 2.282
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.290 0.284
1997 0.936 0.593
1998 1.517 0.485
1999 2.040 0.397
2000 2.282 0.170
2001 2.282 0.000
2002 2.282 0.000
2003 2.282 0.000
2004 2.282 0.000
2005 2.282 0.000
SUB 2.282 1.929
REM 2.282 0.000
TOT 2.282 1.929
</TABLE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 22 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 39.104
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -12.127
GROSS CUM. MB & MMF 0.000 0.000 20.00 -38.912
GROSS RES. MB & MMF 100.106 0.000 25.00 -52.900
SEQ: 308 GROSS ULT. MB & MMF 100.106 0.000 30.00 -59.848
INIT W.I 100.000 LIFE/YR 22.417 RATE-OF-RETURN, % 13.82
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 10.387 0.000 8.067 0.000 14.260 0.000 115.033 14.400 300.000 17.715 -217.082
2000 6.582 0.000 5.111 0.000 14.260 0.000 72.889 14.400 0.000 11.225 47.264
2001 5.910 0.000 4.589 0.000 14.260 0.000 65.444 14.400 0.000 10.078 40.966
2002 5.732 0.000 4.452 0.000 14.260 0.000 63.481 14.400 0.000 9.776 39.305
2003 5.560 0.000 4.318 0.000 14.260 0.000 61.576 14.400 0.000 9.483 37.694
2004 5.393 0.000 4.189 0.000 14.260 0.000 59.729 14.400 0.000 9.198 36.131
2005 5.232 0.000 4.063 0.000 14.260 0.000 57.937 14.400 0.000 8.923 34.615
SUB 44.796 0.000 34.789 0.000 14.260 0.000 496.089 100.800 300.000 76.398 18.893
REM 55.310 0.000 42.954 0.000 14.260 0.000 612.519 187.200 0.000 94.328 330.992
TOT 100.106 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.726 349.885
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -217.082 -175.062
2000 -169.818 32.613
2001 -128.852 25.657
2002 -89.547 22.379
2003 -51.853 19.511
2004 -15.722 17.002
2005 18.893 14.808
SUB 18.893 -43.092
REM 349.885 82.198
TOT 349.885 39.106
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 24 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 38.487
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -11.848
GROSS CUM. MB & MMF 0.000 0.000 20.00 -37.747
GROSS RES. MB & MMF 100.106 0.000 25.00 -50.969
SEQ: 310 GROSS ULT. MB & MMF 100.106 0.000 30.00 -57.288
INIT W.I 100.000 LIFE/YR 22.583 RATE-OF-RETURN, % 13.82
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 9.115 0.000 7.079 0.000 14.260 0.000 100.946 12.000 300.000 15.546 -226.600
2000 6.838 0.000 5.311 0.000 14.260 0.000 75.732 14.400 0.000 11.663 49.669
2001 5.952 0.000 4.623 0.000 14.260 0.000 65.919 14.400 0.000 10.152 41.368
2002 5.761 0.000 4.474 0.000 14.260 0.000 63.804 14.400 0.000 9.825 39.578
2003 5.589 0.000 4.340 0.000 14.260 0.000 61.890 14.400 0.000 9.531 37.959
2004 5.421 0.000 4.210 0.000 14.260 0.000 60.033 14.400 0.000 9.245 36.388
2005 5.258 0.000 4.084 0.000 14.260 0.000 58.232 14.400 0.000 8.968 34.864
SUB 43.934 0.000 34.120 0.000 14.260 0.000 486.556 98.400 300.000 74.930 13.226
REM 56.171 0.000 43.622 0.000 14.260 0.000 622.056 189.600 0.000 95.798 336.658
TOT 100.105 0.000 77.743 0.000 14.260 0.000 1108.612 288.000 300.000 170.728 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -226.600 -179.123
2000 -176.931 34.285
2001 -135.563 25.912
2002 -95.985 22.535
2003 -58.026 19.648
2004 -21.638 17.123
2005 13.226 14.914
SUB 13.226 -44.706
REM 349.884 83.193
TOT 349.884 38.487
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 25 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 38.183
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -11.711
GROSS CUM. MB & MMF 0.000 0.000 20.00 -37.178
GROSS RES. MB & MMF 100.106 0.000 25.00 -50.030
SEQ: 311 GROSS ULT. MB & MMF 100.106 0.000 30.00 -56.049
INIT W.I 100.000 LIFE/YR 22.667 RATE-OF-RETURN, % 13.83
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 8.422 0.000 6.541 0.000 14.260 0.000 93.268 10.800 300.000 14.363 -231.895
2000 7.012 0.000 5.446 0.000 14.260 0.000 77.658 14.400 0.000 11.960 51.299
2001 5.984 0.000 4.647 0.000 14.260 0.000 66.265 14.400 0.000 10.205 41.661
2002 5.776 0.000 4.486 0.000 14.260 0.000 63.966 14.400 0.000 9.851 39.715
2003 5.603 0.000 4.351 0.000 14.260 0.000 62.047 14.400 0.000 9.556 38.092
2004 5.435 0.000 4.221 0.000 14.260 0.000 60.186 14.400 0.000 9.269 36.517
2005 5.272 0.000 4.094 0.000 14.260 0.000 58.380 14.400 0.000 8.991 34.990
SUB 43.504 0.000 33.785 0.000 14.260 0.000 481.770 97.200 300.000 74.195 10.379
REM 56.603 0.000 43.958 0.000 14.260 0.000 626.838 190.800 0.000 96.533 339.507
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.728 349.886
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -231.895 -181.514
2000 -180.596 35.426
2001 -138.935 26.099
2002 -99.220 22.613
2003 -61.128 19.717
2004 -24.611 17.184
2005 10.379 14.968
SUB 10.379 -45.507
REM 349.886 83.689
TOT 349.886 38.182
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 26 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 37.881
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -11.575
GROSS CUM. MB & MMF 0.000 0.000 20.00 -36.618
GROSS RES. MB & MMF 100.106 0.000 25.00 -49.108
SEQ: 312 GROSS ULT. MB & MMF 100.106 0.000 30.00 -54.837
INIT W.I 100.000 LIFE/YR 22.750 RATE-OF-RETURN, % 13.83
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 7.687 0.000 5.970 0.000 14.260 0.000 85.134 9.600 300.000 13.110 -237.577
2000 7.220 0.000 5.607 0.000 14.260 0.000 79.953 14.400 0.000 12.312 53.240
2001 6.022 0.000 4.676 0.000 14.260 0.000 66.686 14.400 0.000 10.270 42.016
2002 5.791 0.000 4.497 0.000 14.260 0.000 64.129 14.400 0.000 9.876 39.853
2003 5.617 0.000 4.362 0.000 14.260 0.000 62.205 14.400 0.000 9.579 38.225
2004 5.449 0.000 4.231 0.000 14.260 0.000 60.339 14.400 0.000 9.292 36.646
2005 5.285 0.000 4.104 0.000 14.260 0.000 58.528 14.400 0.000 9.014 35.115
SUB 43.071 0.000 33.448 0.000 14.260 0.000 476.974 96.000 300.000 73.453 7.518
REM 57.036 0.000 44.294 0.000 14.260 0.000 631.636 192.000 0.000 97.275 342.365
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.610 288.000 300.000 170.728 349.883
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -237.577 -184.164
2000 -184.337 36.787
2001 -142.321 26.326
2002 -102.468 22.691
2003 -64.243 19.786
2004 -27.597 17.244
2005 7.518 15.022
SUB 7.518 -46.308
REM 349.883 84.188
TOT 349.883 37.880
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 27 P.W. % P.W., M$
LATEX OIL GAS ------ --------
---------- ---------- 10.00 38.794
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -11.987
GROSS CUM. MB & MMF 0.000 0.000 20.00 -38.325
GROSS RES. MB & MMF 100.106 0.000 25.00 -51.925
SEQ: 309 GROSS ULT. MB & MMF 100.106 0.000 30.00 -58.554
INIT W.I 100.000 LIFE/YR 22.500 RATE-OF-RETURN, % 13.82
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 9.770 0.000 7.587 0.000 14.260 0.000 108.193 13.200 300.000 16.661 -221.669
2000 6.696 0.000 5.200 0.000 14.260 0.000 74.149 14.400 0.000 11.419 48.330
2001 5.928 0.000 4.603 0.000 14.260 0.000 65.646 14.400 0.000 10.110 41.136
2002 5.747 0.000 4.463 0.000 14.260 0.000 63.642 14.400 0.000 9.801 39.441
2003 5.574 0.000 4.329 0.000 14.260 0.000 61.733 14.400 0.000 9.507 37.826
2004 5.407 0.000 4.199 0.000 14.260 0.000 59.881 14.400 0.000 9.222 36.259
2005 5.245 0.000 4.073 0.000 14.260 0.000 58.084 14.400 0.000 8.945 34.739
SUB 44.367 0.000 34.455 0.000 14.260 0.000 491.328 99.600 300.000 75.665 16.062
REM 55.740 0.000 43.288 0.000 14.260 0.000 617.280 188.400 0.000 95.059 333.820
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.608 288.000 300.000 170.724 349.882
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -221.669 -176.976
2000 -173.339 33.352
2001 -132.203 25.765
2002 -92.762 22.457
2003 -54.936 19.579
2004 -18.677 17.062
2005 16.062 14.861
SUB 16.062 -43.900
REM 349.882 82.695
TOT 349.882 38.795
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 28 P.W. % P.W., M$
LATEX OIL GAS ------ --------
SOUTH CARLTON ---------- ---------- 10.00 37.284
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -11.309
GROSS CUM. MB & MMF 0.000 0.000 20.00 -35.522
GROSS RES. MB & MMF 100.106 0.000 25.00 -47.315
SEQ: 314 GROSS ULT. MB & MMF 100.106 0.000 30.00 -52.490
INIT W.I 100.000 LIFE/YR 22.917 RATE-OF-RETURN, % 13.84
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 6.085 0.000 4.725 0.000 14.260 0.000 67.385 7.200 300.000 10.378 -250.192
2000 7.743 0.000 6.014 0.000 14.260 0.000 85.753 14.400 0.000 13.206 58.147
2001 6.118 0.000 4.751 0.000 14.260 0.000 67.756 14.400 0.000 10.435 42.921
2002 5.820 0.000 4.520 0.000 14.260 0.000 64.455 14.400 0.000 9.927 40.129
2003 5.646 0.000 4.384 0.000 14.260 0.000 62.521 14.400 0.000 9.628 38.493
2004 5.476 0.000 4.253 0.000 14.260 0.000 60.646 14.400 0.000 9.340 36.906
2005 5.312 0.000 4.125 0.000 14.260 0.000 58.826 14.400 0.000 9.060 35.367
SUB 42.200 0.000 32.773 0.000 14.260 0.000 467.342 93.600 300.000 71.974 1.771
REM 57.907 0.000 44.970 0.000 14.260 0.000 641.270 194.400 0.000 98.756 348.113
TOT 100.107 0.000 77.743 0.000 14.260 0.000 1108.612 288.000 300.000 170.730 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -250.192 -190.301
2000 -192.045 40.225
2001 -149.124 26.904
2002 -108.995 22.848
2003 -70.502 19.925
2004 -33.596 17.367
2005 1.771 15.129
SUB 1.771 -47.903
REM 349.884 85.186
TOT 349.884 37.283
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
S. CARLTON - LOC 29 P.W. % P.W., M$
LATEX OIL GAS ------ ----------
---------- ---------- 10.00 37.581
AL, CLARKE & BALDWIN GROSS WELLS 1.000 0.000 15.00 -11.441
GROSS CUM. MB & MMF 0.000 0.000 20.00 -36.066
GROSS RES. MB & MMF 100.106 0.000 25.00 -48.203
SEQ: 313 GROSS ULT. MB & MMF 100.106 0.000 30.00 -53.651
INIT W.I 100.000 LIFE/YR 22.833 RATE-OF-RETURN, % 13.83
INIT N.I 77.660 OPC/W 1200 UNDISC NET/INVEST 2.17
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 6.909 0.000 5.366 0.000 14.260 0.000 76.516 8.400 300.000 11.784 -243.668
2000 7.462 0.000 5.795 0.000 14.260 0.000 82.642 14.400 0.000 12.727 55.515
2001 6.066 0.000 4.711 0.000 14.260 0.000 67.182 14.400 0.000 10.346 42.436
2002 5.805 0.000 4.509 0.000 14.260 0.000 64.292 14.400 0.000 9.901 39.991
2003 5.631 0.000 4.373 0.000 14.260 0.000 62.363 14.400 0.000 9.604 38.359
2004 5.462 0.000 4.242 0.000 14.260 0.000 60.492 14.400 0.000 9.316 36.776
2005 5.298 0.000 4.115 0.000 14.260 0.000 58.677 14.400 0.000 9.037 35.241
SUB 42.633 0.000 33.111 0.000 14.260 0.000 472.164 94.800 300.000 72.715 4.650
REM 57.471 0.000 44.632 0.000 14.260 0.000 636.445 193.200 0.000 98.013 345.234
TOT 100.104 0.000 77.743 0.000 14.260 0.000 1108.609 288.000 300.000 170.728 349.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 -243.668 -187.088
2000 -188.153 38.381
2001 -145.717 26.595
2002 -105.726 22.770
2003 -67.367 19.855
2004 -30.591 17.305
2005 4.650 15.076
SUB 4.650 -47.106
REM 349.884 84.687
TOT 349.884 37.581
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SISSON OLIVER 29-13 P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
MCGEE LAKE ---------- ---------- 10.00 6.824
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 6.235
CARTER GROSS CUM. MB & MMF 1.760 4516.607 20.00 5.746
29 16S 15W GROSS RES. MB & MMF 0.000 218.360 25.00 5.335
SEQ: 457 GROSS ULT. MB & MMF 1.760 4734.967 30.00 4.986
INIT W.I 4.688 LIFE/YR 7.750 RATE-OF-RETURN, % 100.00
INIT N.I 3.809 OPC/W 2697 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 18.016 0.000 0.686 0.000 2.870 1.969 0.632 0.000 0.303 1.034
1997 0.000 39.517 0.000 1.505 0.000 2.870 4.320 1.517 0.000 0.665 2.137
1998 0.000 34.775 0.000 1.325 0.000 2.870 3.802 1.517 0.000 0.585 1.699
1999 0.000 30.602 0.000 1.166 0.000 2.870 3.345 1.517 0.000 0.516 1.313
2000 0.000 26.930 0.000 1.026 0.000 2.870 2.944 1.517 0.000 0.453 0.973
2001 0.000 23.698 0.000 0.903 0.000 2.870 2.591 1.517 0.000 0.399 0.674
2002 0.000 20.855 0.000 0.794 0.000 2.870 2.280 1.517 0.000 0.351 0.411
2003 0.000 18.352 0.000 0.699 0.000 2.870 2.006 1.517 0.000 0.309 0.180
2004 0.000 5.614 0.000 0.214 0.000 2.870 0.614 0.506 0.000 0.094 0.013
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 218.359 0.000 8.317 0.000 2.870 23.871 11.757 0.000 3.675 8.434
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 218.359 0.000 8.317 0.000 2.870 23.871 11.757 0.000 3.675 8.434
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.034 1.014
1997 3.171 1.963
1998 4.870 1.418
1999 6.183 0.997
2000 7.156 0.672
2001 7.830 0.424
2002 8.241 0.235
2003 8.421 0.094
2004 8.434 0.007
2005 8.434 0.000
SUB 8.434 6.824
REM 8.434 0.000
TOT 8.434 6.824
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH 28-9* P.W. % P.W., M$
HUGHES EASTERN CORP OIL GAS ------ --------
ARMSTRONG BRANCH ---------- ---------- 10.00 10.764
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 10.060
CARTER GROSS CUM. MB & MMF 28.409 1124.916 20.00 9.454
28 13S 14W GROSS RES. MB & MMF 0.746 41.451 25.00 8.927
SEQ: 458 GROSS ULT. MB & MMF 29.155 1166.367 30.00 8.466
INIT W.I 35.000 LIFE/YR 5.500 RATE-OF-RETURN, % 100.00
INIT N.I 26.646 OPC/W 874 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.083 4.593 0.022 1.224 19.740 3.150 4.290 1.530 0.000 0.661 2.100
1997 0.177 9.833 0.047 2.620 19.740 3.150 9.184 3.671 0.000 1.414 4.099
1998 0.150 8.358 0.040 2.227 19.740 3.150 7.807 3.671 0.000 1.203 2.934
1999 0.128 7.104 0.034 1.893 19.740 3.150 6.636 3.671 0.000 1.022 1.943
2000 0.109 6.039 0.029 1.609 19.740 3.150 5.640 3.671 0.000 0.869 1.101
2001 0.092 5.133 0.025 1.368 19.740 3.150 4.794 3.671 0.000 0.738 0.385
2002 0.007 0.391 0.002 0.104 19.736 3.150 0.365 0.306 0.000 0.057 0.003
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.746 41.451 0.199 11.045 19.740 3.150 38.716 20.191 0.000 5.964 12.565
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.746 41.451 0.199 11.045 19.740 3.150 38.716 20.191 0.000 5.964 12.565
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.100 2.059
1997 6.199 3.767
1998 9.133 2.452
1999 11.076 1.477
2000 12.177 0.762
2001 12.562 0.244
2002 12.565 0.002
2003 12.565 0.000
2004 12.565 0.000
2005 12.565 0.000
SUB 12.565 10.763
REM 12.565 0.000
TOT 12.565 10.763
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH 5-8 1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
LINEBARGER CREEK ---------- ---------- 10.00 359.401
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 305.472
CARTER GROSS CUM. MB & MMF 0.337 1204.810 20.00 266.075
5 29S 14W GROSS RES. MB & MMF 0.000 456.270 25.00 236.269
SEQ: 336 GROSS ULT. MB & MMF 0.337 1661.080 30.00 213.044
INIT W.I 89.687 LIFE/YR 15.333 RATE-OF-RETURN, % 100.00
INIT N.I 64.431 OPC/W 893 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 24.459 0.000 15.759 0.000 2.810 44.283 4.005 0.000 6.819 33.459
1997 0.000 54.501 0.000 35.116 0.000 2.810 98.675 9.611 0.000 15.195 73.868
1998 0.000 49.051 0.000 31.604 0.000 2.810 88.807 9.611 0.000 13.677 65.520
1999 0.000 44.146 0.000 28.444 0.000 2.810 79.927 9.611 0.000 12.309 58.007
2000 0.000 39.732 0.000 25.599 0.000 2.810 71.934 9.611 0.000 11.077 51.245
2001 0.000 35.758 0.000 23.039 0.000 2.810 64.741 9.611 0.000 9.970 45.160
2002 0.000 32.183 0.000 20.735 0.000 2.810 58.267 9.611 0.000 8.973 39.683
2003 0.000 28.964 0.000 18.662 0.000 2.810 52.440 9.611 0.000 8.076 34.753
2004 0.000 26.068 0.000 16.796 0.000 2.810 47.196 9.611 0.000 7.269 30.317
2005 0.000 23.461 0.000 15.116 0.000 2.810 42.476 9.611 0.000 6.542 26.324
SUB 0.000 358.323 0.000 230.870 0.000 2.810 648.746 90.504 0.000 99.907 458.336
REM 0.000 97.947 0.000 63.108 0.000 2.810 177.333 56.865 0.000 27.309 93.159
TOT 0.000 456.270 0.000 293.978 0.000 2.810 826.079 147.369 0.000 127.216 551.495
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 33.459 32.809
1997 107.327 67.777
1998 172.847 54.653
1999 230.854 43.988
2000 282.099 35.328
2001 327.259 28.303
2002 366.942 22.610
2003 401.695 18.002
2004 432.012 14.277
2005 458.336 11.270
SUB 458.336 329.017
REM 551.495 30.383
TOT 551.495 359.400
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH 5-8 1L P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
LINEBARGER CREEK ---------- ---------- 10.00 41.224
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 39.042
LEWIS GROSS CUM. MB & MMF 3.802 949.846 20.00 37.125
5 29S 14W GROSS RES. MB & MMF 0.000 55.519 25.00 35.428
SEQ: 340 GROSS ULT. MB & MMF 3.802 1005.365 30.00 33.916
INIT W.I 89.860 LIFE/YR 4.583 RATE-OF-RETURN, % 100.00
INIT N.I 68.763 OPC/W 893 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 8.562 0.000 5.888 0.000 2.810 16.544 4.012 0.000 2.547 9.984
1997 0.000 16.809 0.000 11.558 0.000 2.810 32.478 9.629 0.000 5.002 17.847
1998 0.000 12.607 0.000 8.669 0.000 2.810 24.359 9.629 0.000 3.751 10.978
1999 0.000 9.455 0.000 6.501 0.000 2.810 18.269 9.629 0.000 2.814 5.826
2000 0.000 7.091 0.000 4.876 0.000 2.810 13.702 9.629 0.000 2.110 1.962
2001 0.000 0.996 0.000 0.685 0.000 2.810 1.924 1.605 0.000 0.296 0.023
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 55.520 0.000 38.177 0.000 2.810 107.276 44.133 0.000 16.520 46.620
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 55.520 0.000 38.177 0.000 2.810 107.276 44.133 0.000 16.520 46.620
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.984 9.794
1997 27.831 16.417
1998 38.809 9.188
1999 44.635 4.440
2000 46.597 1.370
2001 46.620 0.015
2002 46.620 0.000
2003 46.620 0.000
2004 46.620 0.000
2005 46.620 0.000
SUB 46.620 41.224
REM 46.620 0.000
TOT 46.620 41.224
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
SMITH 5-8 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
LINEBARGER CREEK ---------- ---------- 10.00 43.551
AL, PICKENS GROSS WELLS 0.000 1.000 15.00 19.227
MISS GROSS CUM. MB & MMF 0.000 0.000 20.00 8.844
5 29S 14W GROSS RES. MB & MMF 0.000 249.565 25.00 4.221
SEQ: 624 GROSS ULT. MB & MMF 0.000 249.565 30.00 2.083
INIT W.I 89.687 LIFE/YR 24.250 RATE-OF-RETURN, % 100.00
INIT N.I 64.431 OPC/W 893 UNDISC NET/INVEST 7.69
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 249.564 0.000 160.796 0.000 2.810 451.838 85.698 38.566 69.582 257.991
TOT 0.000 249.564 0.000 160.796 0.000 2.810 451.838 85.698 38.566 69.582 257.991
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 257.991 43.550
TOT 257.991 43.550
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH L R 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 8.918
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 8.114
CARTER GROSS CUM. MB & MMF 0.000 5629.379 20.00 7.450
5 15S 13W GROSS RES. MB & MMF 0.000 103.559 25.00 6.896
SEQ: 405 GROSS ULT. MB & MMF 0.000 5732.938 30.00 6.426
INIT W.I 16.844 LIFE/YR 8.083 RATE-OF-RETURN, % 100.00
INIT N.I 12.909 OPC/W 1180 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.759 0.000 1.002 0.000 2.690 2.694 0.994 0.000 0.414 1.286
1997 0.000 17.288 0.000 2.232 0.000 2.690 6.003 2.385 0.000 0.924 2.694
1998 0.000 15.559 0.000 2.009 0.000 2.690 5.403 2.385 0.000 0.832 2.186
1999 0.000 14.003 0.000 1.808 0.000 2.690 4.863 2.385 0.000 0.749 1.729
2000 0.000 12.603 0.000 1.627 0.000 2.690 4.377 2.385 0.000 0.674 1.317
2001 0.000 11.343 0.000 1.464 0.000 2.690 3.939 2.385 0.000 0.607 0.947
2002 0.000 10.208 0.000 1.318 0.000 2.690 3.545 2.385 0.000 0.545 0.614
2003 0.000 9.188 0.000 1.186 0.000 2.690 3.190 2.385 0.000 0.491 0.314
2004 0.000 5.609 0.000 0.724 0.000 2.690 1.948 1.590 0.000 0.300 0.058
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 103.560 0.000 13.369 0.000 2.690 35.962 19.279 0.000 5.536 11.145
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 103.560 0.000 13.369 0.000 2.690 35.962 19.279 0.000 5.536 11.145
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.286 1.261
1997 3.980 2.473
1998 6.166 1.825
1999 7.895 1.312
2000 9.212 0.909
2001 10.159 0.595
2002 10.773 0.351
2003 11.087 0.164
2004 11.145 0.028
2005 11.145 0.000
SUB 11.145 8.918
REM 11.145 0.000
TOT 11.145 8.918
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
SMITH L R 1 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 7.094
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 4.735
BANGOR LIME GROSS CUM. MB & MMF 0.000 0.000 20.00 3.218
5 15S 13W GROSS RES. MB & MMF 0.000 99.147 25.00 2.223
SEQ: 594 GROSS ULT. MB & MMF 0.000 99.147 30.00 1.559
INIT W.I 16.844 LIFE/YR 11.000 RATE-OF-RETURN, % 100.00
INIT N.I 12.909 OPC/W 1500 UNDISC NET/INVEST 6.02
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 21.752 0.000 2.808 0.000 2.690 7.554 1.011 3.369 1.163 2.011
2005 0.000 44.328 0.000 5.722 0.000 2.690 15.393 3.032 0.000 2.370 9.991
SUB 0.000 66.080 0.000 8.531 0.000 2.690 22.947 4.043 3.369 3.533 12.002
REM 0.000 33.067 0.000 4.269 0.000 2.690 11.483 4.801 0.000 1.768 4.914
TOT 0.000 99.147 0.000 12.799 0.000 2.690 34.430 8.844 3.369 5.301 16.916
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 2.011 0.893
2005 12.002 4.299
SUB 12.002 5.192
REM 16.916 1.902
TOT 16.916 7.094
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SPARKS 14-3 1T P.W. % P.W., M$
SANFORD RESOURCES CORP OIL GAS ------ --------
MCCRACKEN MTN --------- --------- 10.00 8.378
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 7.683
LEWIS GROSS CUM. MB & MMF 0.147 971.056 20.00 7.111
14 16S 13W GROSS RES. MB & MMF 0.000 405.975 25.00 6.632
SEQ: 459 GROSS ULT. MB & MMF 0.147 1377.031 30.00 6.226
INIT W.I 3.125 LIFE/YR 9.250 RATE-OF-RETURN, % 100.00
INIT N.I 2.453 OPC/W 2903 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 39.611 0.000 0.972 0.000 2.420 2.351 0.454 0.000 0.362 1.535
1997 0.000 77.048 0.000 1.890 0.000 2.420 4.573 1.089 0.000 0.704 2.780
1998 0.000 60.103 0.000 1.474 0.000 2.420 3.567 1.089 0.000 0.550 1.929
1999 0.000 49.081 0.000 1.204 0.000 2.420 2.913 1.089 0.000 0.448 1.376
2000 0.000 41.360 0.000 1.014 0.000 2.420 2.455 1.089 0.000 0.378 0.988
2001 0.000 35.663 0.000 0.875 0.000 2.420 2.117 1.089 0.000 0.326 0.702
2002 0.000 31.293 0.000 0.768 0.000 2.420 1.857 1.089 0.000 0.286 0.483
2003 0.000 27.841 0.000 0.683 0.000 2.420 1.652 1.089 0.000 0.254 0.309
2004 0.000 25.035 0.000 0.614 0.000 2.420 1.486 1.089 0.000 0.229 0.168
2005 0.000 18.939 0.000 0.465 0.000 2.420 1.124 0.907 0.000 0.173 0.044
SUB 0.000 405.974 0.000 9.957 0.000 2.420 24.095 10.073 0.000 3.710 10.314
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 405.974 0.000 9.957 0.000 2.420 24.095 10.073 0.000 3.710 10.314
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.535 1.506
1997 4.315 2.556
1998 6.244 1.612
1999 7.620 1.045
2000 8.608 0.682
2001 9.310 0.441
2002 9.793 0.276
2003 10.102 0.161
2004 10.270 0.080
2005 10.314 0.019
SUB 10.314 8.378
REM 10.314 0.000
TOT 10.314 8.378
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STEINER-SCHWAB 17-13 P.W. % P.W., M$
SOUTHWEST ROYALTIES INC OIL GAS ------ --------
BOXES CREEK ---------- ---------- 10.00 0.454
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 0.446
CARTER GROSS CUM. MB & MMF 0.000 985.843 20.00 0.438
17 14S 11W GROSS RES. MB & MMF 0.000 22.167 25.00 0.431
SEQ: 460 GROSS ULT. MB & MMF 0.000 1008.010 30.00 0.424
INIT W.I 10.043 LIFE/YR 1.333 RATE-OF-RETURN, % 100.00
INIT N.I 8.179 OPC/W 2083 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.615 0.000 0.623 0.000 2.490 1.551 1.046 0.000 0.239 0.266
1997 0.000 14.552 0.000 1.190 0.000 2.490 2.964 2.301 0.000 0.456 0.206
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 22.167 0.000 1.813 0.000 2.490 4.515 3.347 0.000 0.695 0.472
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 22.167 0.000 1.813 0.000 2.490 4.515 3.347 0.000 0.695 0.472
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.266 0.261
1997 0.472 0.193
1998 0.472 0.000
1999 0.472 0.000
2000 0.472 0.000
2001 0.472 0.000
2002 0.472 0.000
2003 0.472 0.000
2004 0.472 0.000
2005 0.472 0.000
SUB 0.472 0.454
REM 0.472 0.000
TOT 0.472 0.454
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STEINER-SCHWAB 26-5 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MUSGROVE CREEK ---------- ---------- 10.00 33.424
AL, FAYETTE ROSS WELLS 0.000 1.000 15.00 29.103
CARTER ROSS CUM. MB & MMF 0.000 5225.829 20.00 25.796
26 15S 12W ROSS RES. MB & MMF 0.000 203.431 25.00 23.203
SEQ: 409 ROSS ULT. MB & MMF 0.000 5429.260 30.00 21.123
NIT W.I 29.351 LIFE/YR 13.583 RATE-OF-RETURN, % 100.00
NIT N.I 22.296 OPC/W 1160 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 10.248 0.000 2.285 0.000 2.680 6.124 1.702 0.000 0.943 3.478
1997 0.000 23.191 0.000 5.171 0.000 2.680 13.857 4.086 0.000 2.134 7.638
1998 0.000 21.335 0.000 4.757 0.000 2.680 12.749 4.086 0.000 1.963 6.700
1999 0.000 19.629 0.000 4.376 0.000 2.680 11.729 4.086 0.000 1.806 5.837
2000 0.000 18.058 0.000 4.026 0.000 2.680 10.790 4.086 0.000 1.662 5.043
2001 0.000 16.614 0.000 3.704 0.000 2.680 9.927 4.086 0.000 1.529 4.313
2002 0.000 15.285 0.000 3.408 0.000 2.680 9.133 4.086 0.000 1.406 3.641
2003 0.000 14.062 0.000 3.135 0.000 2.680 8.402 4.086 0.000 1.294 3.023
2004 0.000 12.937 0.000 2.884 0.000 2.680 7.730 4.086 0.000 1.190 2.454
2005 0.000 11.902 0.000 2.654 0.000 2.680 7.112 4.086 0.000 1.095 1.931
SUB 0.000 163.261 0.000 36.400 0.000 2.680 97.553 38.476 0.000 15.022 44.058
REM 0.000 40.171 0.000 8.957 0.000 2.680 24.004 17.025 0.000 3.696 3.284
TOT 0.000 203.432 0.000 45.357 0.000 2.680 121.557 55.501 0.000 18.718 47.342
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.478 3.411
1997 11.116 7.008
1998 17.816 5.589
1999 23.653 4.427
2000 28.696 3.477
2001 33.009 2.704
2002 36.650 2.075
2003 39.673 1.567
2004 42.127 1.156
2005 44.058 0.827
SUB 44.058 32.241
REM 47.342 1.183
TOT 47.342 33.424
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
STEINER-SCHWAB 26-5 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
MUSGROVE CREEK ---------- ---------- 10.00 17.560
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 8.745
PENN GROSS CUM. MB & MMF 0.000 0.000 20.00 4.504
26 15S 12W GROSS RES. MB & MMF 0.000 249.409 25.00 2.392
SEQ: 603 GROSS ULT. MB & MMF 0.000 249.409 30.00 1.306
INIT W.I 29.351 LIFE/YR 21.000 RATE-OF-RETURN, % 100.00
INIT N.I 22.296 OPC/W 1500 UNDISC NET/INVEST 11.84
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 249.409 0.000 55.608 0.000 2.680 149.031 39.183 7.338 22.948 79.557
TOT 0.000 249.409 0.000 55.608 0.000 2.680 149.031 39.183 7.338 22.948 79.557
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 79.557 17.560
TOT 79.557 17.560
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STRAWBRIDGE DW 33-14 1 P.W. % P.W., M$
SOUTHLAND ROYALTY CO OIL GAS ------ --------
BEAVERTON ---------- ---------- 10.00 21.907
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 20.216
LEWIS GROSS CUM. MB & MMF 0.000 5391.763 20.00 18.788
33 12S 15W GROSS RES. MB & MMF 0.000 193.820 25.00 17.569
SEQ: 461 GROSS ULT. MB & MMF 0.000 5585.583 30.00 16.518
INIT W.I 23.327 LIFE/YR 6.667 RATE-OF-RETURN, % 100.00
INIT N.I 17.759 OPC/W 2424 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 17.529 0.000 3.113 0.000 2.460 7.658 2.827 0.000 1.180 3.651
1997 0.000 38.449 0.000 6.828 0.000 2.460 16.797 6.785 0.000 2.587 7.425
1998 0.000 33.835 0.000 6.009 0.000 2.460 14.782 6.785 0.000 2.276 5.720
1999 0.000 29.775 0.000 5.288 0.000 2.460 13.008 6.785 0.000 2.003 4.219
2000 0.000 26.202 0.000 4.653 0.000 2.460 11.447 6.785 0.000 1.763 2.899
2001 0.000 23.058 0.000 4.095 0.000 2.460 10.073 6.785 0.000 1.551 1.737
2002 0.000 20.291 0.000 3.603 0.000 2.460 8.864 6.785 0.000 1.365 0.714
2003 0.000 4.680 0.000 0.831 0.000 2.460 2.045 1.696 0.000 0.314 0.033
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 193.819 0.000 34.420 0.000 2.460 84.674 45.233 0.000 13.039 26.398
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 193.819 0.000 34.420 0.000 2.460 84.674 45.233 0.000 13.039 26.398
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.651 3.581
1997 11.076 6.820
1998 16.796 4.777
1999 21.015 3.205
2000 23.914 2.003
2001 25.651 1.093
2002 26.365 0.411
2003 26.398 0.018
2004 26.398 0.000
2005 26.398 0.000
SUB 26.398 21.908
REM 26.398 0.000
TOT 26.398 21.908
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STRAWBRIDGE R H 9-2 2 P.W. % P.W., M$
BLACK ROCK OPERATING CO OIL GAS ------ --------
LITTLE HELLS CREEK ---------- ---------- 10.00 0.656
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 0.601
CARTER GROSS CUM. MB & MMF 0.000 654.169 20.00 0.554
9 15S 14W GROSS RES. MB & MMF 0.000 81.961 25.00 0.515
SEQ: 462 GROSS ULT. MB & MMF 0.000 736.130 30.00 0.482
INIT W.I 3.063 LIFE/YR 7.083 RATE-OF-RETURN, % 100.00
INIT N.I 2.393 OPC/W 1500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.689 0.000 0.136 0.000 2.840 0.387 0.230 0.000 0.060 0.097
1997 0.000 13.168 0.000 0.315 0.000 2.840 0.895 0.551 0.000 0.137 0.206
1998 0.000 12.509 0.000 0.299 0.000 2.840 0.850 0.551 0.000 0.131 0.168
1999 0.000 11.884 0.000 0.284 0.000 2.840 0.808 0.551 0.000 0.125 0.132
2000 0.000 11.290 0.000 0.270 0.000 2.840 0.767 0.551 0.000 0.118 0.098
2001 0.000 10.725 0.000 0.257 0.000 2.840 0.729 0.551 0.000 0.112 0.065
2002 0.000 10.189 0.000 0.244 0.000 2.840 0.692 0.551 0.000 0.106 0.034
2003 0.000 6.508 0.000 0.156 0.000 2.840 0.442 0.368 0.000 0.068 0.007
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 81.962 0.000 1.961 0.000 2.840 5.570 3.904 0.000 0.857 0.807
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 81.962 0.000 1.961 0.000 2.840 5.570 3.904 0.000 0.857 0.807
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.097 0.095
1997 0.303 0.189
1998 0.471 0.140
1999 0.603 0.100
2000 0.701 0.068
2001 0.766 0.041
2002 0.800 0.020
2003 0.807 0.004
2004 0.807 0.000
2005 0.807 0.000
SUB 0.807 0.657
REM 0.807 0.000
TOT 0.807 0.657
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SUGGS 16-10 1 P.W. % P.W., M$
PRUET PRODUCTION CO OIL GAS ------ --------
FERNBANK ---------- ---------- 10.00 28.900
AL, LAMAR GROSS WELLS 0.000 1.000 15.00 24.986
SANDERS GROSS CUM. MB & MMF 0.814 2530.153 20.00 22.055
16 17S 15W GROSS RES. MB & MMF 0.000 1247.820 25.00 19.790
SEQ: 463 GROSS ULT. MB & MMF 0.814 3777.973 30.00 17.995
INIT W.I 2.801 LIFE/YR 17.000 RATE-OF-RETURN, % 100.00
INIT N.I 2.086 OPC/W 2870 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 73.038 0.000 1.524 0.000 2.660 4.053 0.402 0.000 0.624 3.027
1997 0.000 160.205 0.000 3.342 0.000 2.660 8.891 0.965 0.000 1.369 6.557
1998 0.000 140.981 0.000 2.941 0.000 2.660 7.824 0.965 0.000 1.204 5.654
1999 0.000 124.063 0.000 2.588 0.000 2.660 6.885 0.965 0.000 1.061 4.860
2000 0.000 109.176 0.000 2.278 0.000 2.660 6.059 0.965 0.000 0.933 4.161
2001 0.000 96.075 0.000 2.004 0.000 2.660 5.332 0.965 0.000 0.821 3.546
2002 0.000 84.546 0.000 1.764 0.000 2.660 4.692 0.965 0.000 0.722 3.005
2003 0.000 74.400 0.000 1.552 0.000 2.660 4.129 0.965 0.000 0.636 2.528
2004 0.000 65.472 0.000 1.366 0.000 2.660 3.633 0.965 0.000 0.559 2.109
2005 0.000 57.615 0.000 1.202 0.000 2.660 3.197 0.965 0.000 0.493 1.740
SUB 0.000 985.571 0.000 20.562 0.000 2.660 54.695 9.087 0.000 8.422 37.187
REM 0.000 262.251 0.000 5.471 0.000 2.660 14.554 7.318 0.000 2.243 4.999
TOT 0.000 1247.822 0.000 26.034 0.000 2.660 69.249 16.405 0.000 10.665 42.186
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.027 2.968
1997 9.584 6.018
1998 15.238 4.718
1999 20.098 3.686
2000 24.259 2.869
2001 27.805 2.223
2002 30.810 1.713
2003 33.338 1.310
2004 35.447 0.994
2005 37.187 0.745
SUB 37.187 27.244
REM 42.186 1.656
TOT 42.186 28.900
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WATKINS AIRHART 6-16 P.W. % P.W., M$
MERRIMAC ENERGY CORP OIL GAS ------ --------
FAYETTE SW ---------- ---------- 10.00 13.108
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 10.432
CARTER GROSS CUM. MB & MMF 0.000 1610.126 20.00 8.697
6 16S 13W GROSS RES. MB & MMF 0.000 865.545 25.00 7.490
SEQ: 464 GROSS ULT. MB & MMF 0.000 2475.671 30.00 6.604
INIT W.I 3.500 LIFE/YR 33.667 RATE-OF-RETURN, % 100.00
INIT N.I 2.460 OPC/W 1111 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 22.261 0.000 0.548 0.000 2.340 1.281 0.194 0.000 0.197 0.890
1997 0.000 51.525 0.000 1.267 0.000 2.340 2.966 0.467 0.000 0.457 2.042
1998 0.000 48.949 0.000 1.204 0.000 2.340 2.817 0.467 0.000 0.434 1.917
1999 0.000 46.502 0.000 1.144 0.000 2.340 2.676 0.467 0.000 0.413 1.798
2000 0.000 44.177 0.000 1.087 0.000 2.340 2.543 0.467 0.000 0.391 1.684
2001 0.000 41.968 0.000 1.032 0.000 2.340 2.415 0.467 0.000 0.372 1.577
2002 0.000 39.869 0.000 0.981 0.000 2.340 2.295 0.467 0.000 0.353 1.475
2003 0.000 37.876 0.000 0.932 0.000 2.340 2.180 0.467 0.000 0.336 1.378
2004 0.000 35.982 0.000 0.885 0.000 2.340 2.071 0.467 0.000 0.319 1.285
2005 0.000 34.183 0.000 0.841 0.000 2.340 1.967 0.467 0.000 0.303 1.198
SUB 0.000 403.292 0.000 9.919 0.000 2.340 23.211 4.397 0.000 3.575 15.244
REM 0.000 462.253 0.000 11.370 0.000 2.340 26.603 11.325 0.000 4.097 11.192
TOT 0.000 865.545 0.000 21.289 0.000 2.340 49.814 15.722 0.000 7.672 26.436
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.890 0.872
1997 2.932 1.873
1998 4.849 1.598
1999 6.647 1.363
2000 8.331 1.161
2001 9.908 0.988
2002 11.383 0.840
2003 12.761 0.713
2004 14.046 0.605
2005 15.244 0.513
SUB 15.244 10.526
REM 26.436 2.583
TOT 26.436 13.109
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WAYSIDE OIL UNIT SE NW P.W. % P.W., M$
HOWELL PETROLEUM CORP OIL GAS ------ --------
WAYSIDE ---------- ---------- 10.00 0.215
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 0.207
CARTER GROSS CUM. MB & MMF 279.929 244.642 20.00 0.201
3 14S 13W GROSS RES. MB & MMF 73.414 8.956 25.00 0.195
SEQ: 465 GROSS ULT. MB & MMF 353.343 253.598 30.00 0.189
INIT W.I 0.159 LIFE/YR 2.583 RATE-OF-RETURN, % 100.00
INIT N.I 0.102 OPC/W 19687 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 14.020 1.614 0.014 0.002 18.741 2.661 0.271 0.157 0.000 0.042 0.073
1997 30.016 3.597 0.030 0.004 18.740 2.660 0.581 0.376 0.000 0.089 0.116
1998 25.514 3.237 0.026 0.003 18.740 2.660 0.494 0.376 0.000 0.076 0.043
1999 3.864 0.507 0.004 0.001 18.742 2.660 0.075 0.063 0.000 0.011 0.001
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 73.414 8.955 0.075 0.009 18.740 2.660 1.421 0.972 0.000 0.218 0.233
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 73.414 8.955 0.075 0.009 18.740 2.660 1.421 0.972 0.000 0.218 0.233
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.073 0.072
1997 0.189 0.107
1998 0.232 0.036
1999 0.233 0.001
2000 0.233 0.000
2001 0.233 0.000
2002 0.233 0.000
2003 0.233 0.000
2004 0.233 0.000
2005 0.233 0.000
SUB 0.233 0.216
REM 0.233 0.000
TOT 0.233 0.216
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WEYERHAEUSER 17-2 NW NE P.W. % P.W., M$
SANFORD RESOURCES CORP OIL GAS ------ --------
BLUFF ---------- ---------- 10.00 0.000
AL, FAYETTE GROSS WELLS 1.000 0.000 15.00 0.000
CARTER UPPER GROSS CUM. MB & MMF 16.067 53.587 20.00 0.000
17 14S 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 466 GROSS ULT. MB & MMF 16.067 53.587 30.00 0.000
INIT W.I 0.820 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 0.673 OPC/W 2022 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WHITAKER 25-15 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BETHEL CHURCH ---------- ---------- 10.00 23.683
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 22.454
MILLERELLA GROSS CUM. MB & MMF 0.000 4056.439 20.00 21.372
25 14S 13W GROSS RES. MB & MMF 0.000 99.602 25.00 20.413
SEQ: 410 GROSS ULT. MB & MMF 0.000 4156.041 30.00 19.556
INIT W.I 28.438 LIFE/YR 4.417 RATE-OF-RETURN, % 100.00
INIT N.I 23.710 OPC/W 1727 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 15.641 0.000 3.709 0.000 2.640 9.790 2.456 0.000 1.508 5.827
1997 0.000 30.706 0.000 7.280 0.000 2.640 19.220 5.893 0.000 2.960 10.367
1998 0.000 23.029 0.000 5.460 0.000 2.640 14.415 5.893 0.000 2.220 6.302
1999 0.000 17.272 0.000 4.095 0.000 2.640 10.811 5.893 0.000 1.665 3.253
2000 0.000 12.954 0.000 3.071 0.000 2.640 8.108 5.893 0.000 1.249 0.966
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 99.602 0.000 23.616 0.000 2.640 62.344 26.028 0.000 9.602 26.715
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 99.602 0.000 23.616 0.000 2.640 62.344 26.028 0.000 9.602 26.715
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.827 5.716
1997 16.194 9.537
1998 22.496 5.274
1999 25.749 2.480
2000 26.715 0.676
2001 26.715 0.000
2002 26.715 0.000
2003 26.715 0.000
2004 26.715 0.000
2005 26.715 0.000
SUB 26.715 23.683
REM 26.715 0.000
TOT 26.715 23.683
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
WHITAKER 25-15 1 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BETHEL CHURCH ---------- ---------- 10.00 62.898
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 53.440
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 45.860
25 14S 13W GROSS RES. MB & MMF 0.000 249.501 25.00 39.706
SEQ: 595 GROSS ULT. MB & MMF 0.000 249.501 30.00 34.652
INIT W.I 28.438 LIFE/YR 8.417 RATE-OF-RETURN, % 100.00
INIT N.I 23.710 OPC/W 1727 UNDISC NET/INVEST 23.35
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 35.165 0.000 8.338 0.000 2.640 22.011 2.456 4.038 3.390 12.128
1999 0.000 67.888 0.000 16.096 0.000 2.640 42.494 5.893 0.000 6.544 30.057
2000 0.000 49.693 0.000 11.782 0.000 2.640 31.105 5.893 0.000 4.790 20.421
2001 0.000 36.374 0.000 8.624 0.000 2.640 22.768 5.893 0.000 3.506 13.368
2002 0.000 26.625 0.000 6.313 0.000 2.640 16.666 5.893 0.000 2.567 8.206
2003 0.000 19.489 0.000 4.621 0.000 2.640 12.199 5.893 0.000 1.879 4.427
2004 0.000 14.266 0.000 3.382 0.000 2.640 8.930 5.893 0.000 1.375 1.661
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 249.500 0.000 59.157 0.000 2.640 156.173 37.814 4.038 24.051 90.268
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 249.500 0.000 59.157 0.000 2.640 156.173 37.814 4.038 24.051 90.268
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 12.128 9.767
1999 42.185 22.838
2000 62.606 14.109
2001 75.974 8.400
2002 84.180 4.690
2003 88.607 2.304
2004 90.268 0.790
2005 90.268 0.000
SUB 90.268 62.898
REM 90.268 0.000
TOT 90.268 62.898
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WHITE 8-4 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 44.079
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 39.970
CARTER GROSS CUM. MB & MMF 0.000 5870.608 20.00 36.595
8 15S 13W GROSS RES. MB & MMF 0.000 149.276 25.00 33.785
SEQ: 411 GROSS ULT. MB & MMF 0.000 6019.884 30.00 31.414
INIT W.I 68.150 LIFE/YR 8.250 RATE-OF-RETURN, % 100.00
INIT N.I 53.592 OPC/W 1865 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 10.248 0.000 5.492 0.000 2.680 14.719 6.355 0.000 2.267 6.098
1997 0.000 23.191 0.000 12.428 0.000 2.680 33.308 15.252 0.000 5.130 12.927
1998 0.000 21.335 0.000 11.434 0.000 2.680 30.644 15.252 0.000 4.719 10.673
1999 0.000 19.629 0.000 10.519 0.000 2.680 28.192 15.252 0.000 4.341 8.599
2000 0.000 18.058 0.000 9.678 0.000 2.680 25.937 15.252 0.000 3.995 6.691
2001 0.000 16.614 0.000 8.904 0.000 2.680 23.862 15.252 0.000 3.675 4.935
2002 0.000 15.285 0.000 8.191 0.000 2.680 21.953 15.252 0.000 3.380 3.320
2003 0.000 14.062 0.000 7.536 0.000 2.680 20.197 15.252 0.000 3.111 1.834
2004 0.000 10.855 0.000 5.817 0.000 2.680 15.591 12.710 0.000 2.401 0.480
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 149.277 0.000 80.001 0.000 2.680 214.403 125.829 0.000 33.019 55.557
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 149.277 0.000 80.001 0.000 2.680 214.403 125.829 0.000 33.019 55.557
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 6.098 5.979
1997 19.025 11.867
1998 29.698 8.908
1999 38.297 6.526
2000 44.988 4.618
2001 49.923 3.098
2002 53.243 1.897
2003 55.077 0.955
2004 55.557 0.230
2005 55.557 0.000
SUB 55.557 44.078
REM 55.557 0.000
TOT 55.557 44.078
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
E-PROBABLE DEVE PRIMARY
WHITE 8-4 PROB P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 163.110
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 106.764
GILMER GROSS CUM. MB & MMF 0.000 0.000 20.00 71.687
8 15S 13W GROSS RES. MB & MMF 0.000 497.630 25.00 49.226
SEQ: 619 GROSS ULT. MB & MMF 0.000 497.630 30.00 34.481
INIT W.I 68.150 LIFE/YR 18.250 RATE-OF-RETURN, % 100.00
INIT N.I 53.592 OPC/W 1865 UNDISC NET/INVEST 27.75
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 43.247 0.000 23.177 0.000 2.680 62.115 6.355 15.606 9.565 30.588
2004 0.000 90.710 0.000 48.614 0.000 2.680 130.284 15.252 0.000 20.063 94.969
2005 0.000 74.864 0.000 40.121 0.000 2.680 107.524 15.252 0.000 16.558 75.714
SUB 0.000 208.821 0.000 111.912 0.000 2.680 299.923 36.859 15.606 46.186 201.271
REM 0.000 288.809 0.000 154.779 0.000 2.680 414.808 134.726 0.000 63.880 216.205
TOT 0.000 497.630 0.000 266.691 0.000 2.680 714.731 171.585 15.606 110.066 417.476
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 30.588 15.238
2004 125.557 44.752
2005 201.271 32.437
SUB 201.271 92.427
REM 417.476 70.683
TOT 417.476 163.110
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
WHITLEY S L 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BLOOMING GROVE ---------- ---------- 10.00 10.402
AL, FAYETTE GROSS WELLS 0.000 1.000 15.00 9.536
CARTER GROSS CUM. MB & MMF 0.000 7446.554 20.00 8.800
5 15S 13W GROSS RES. MB & MMF 0.000 78.775 25.00 8.169
SEQ: 412 GROSS ULT. MB & MMF 0.000 7525.329 30.00 7.623
INSTALL COMPRESSOR. INIT W.I 23.603 LIFE/YR 6.333 RATE-OF-RETURN, % 100.00
INIT N.I 19.975 OPC/W 1326 UNDISC NET/INVEST 45.77
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.163 0.000 0.632 0.000 2.690 1.700 0.626 0.283 0.262 0.529
1997 0.000 17.512 0.000 3.498 0.000 2.690 9.410 3.756 0.000 1.449 4.205
1998 0.000 15.235 0.000 3.043 0.000 2.690 8.186 3.756 0.000 1.261 3.170
1999 0.000 13.255 0.000 2.648 0.000 2.690 7.122 3.756 0.000 1.097 2.270
2000 0.000 11.532 0.000 2.303 0.000 2.690 6.196 3.756 0.000 0.955 1.486
2001 0.000 10.032 0.000 2.004 0.000 2.690 5.391 3.756 0.000 0.830 0.805
2002 0.000 8.046 0.000 1.607 0.000 2.690 4.324 3.443 0.000 0.665 0.215
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 78.775 0.000 15.735 0.000 2.690 42.329 22.849 0.283 6.519 12.680
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 78.775 0.000 15.735 0.000 2.690 42.329 22.849 0.283 6.519 12.680
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.529 0.508
1997 4.734 3.862
1998 7.904 2.648
1999 10.174 1.724
2000 11.660 1.028
2001 12.465 0.507
2002 12.680 0.125
2003 12.680 0.000
2004 12.680 0.000
2005 12.680 0.000
SUB 12.680 10.402
REM 12.680 0.000
TOT 12.680 10.402
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CROCKETT 1 P.W. % P.W., M$
BETSY PRODUCTION CO OIL GAS ------ --------
ST MARY WEST (COTTON VALLEY) ---------- ---------- 10.00 96.437
AR, LAFAYETTE GROSS WELLS 1.000 0.000 15.00 72.302
COTTON VALLEY GROSS CUM. MB & MMF 173.391 80.840 20.00 58.272
8 19S 25W GROSS RES. MB & MMF 346.144 179.347 25.00 49.113
SEQ: 10 GROSS ULT. MB & MMF 519.535 260.187 30.00 42.664
INIT W.I 8.580 LIFE/YR 71.750 RATE-OF-RETURN, % 100.00
INIT N.I 6.240 OPC/W 1501 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.918 3.890 0.307 0.243 19.700 1.160 6.327 0.644 0.000 0.423 5.260
1997 11.552 9.005 0.721 0.562 19.700 1.160 14.853 1.545 0.000 0.995 12.313
1998 11.206 8.555 0.699 0.534 19.700 1.160 14.394 1.545 0.000 0.964 11.884
1999 10.869 8.127 0.678 0.507 19.700 1.160 13.950 1.545 0.000 0.936 11.469
2000 10.543 7.720 0.658 0.482 19.700 1.160 13.520 1.545 0.000 0.906 11.067
2001 10.227 7.334 0.638 0.458 19.700 1.160 13.103 1.545 0.000 0.879 10.678
2002 9.920 6.968 0.619 0.435 19.700 1.160 12.699 1.545 0.000 0.853 10.301
2003 9.623 6.619 0.600 0.413 19.700 1.160 12.308 1.545 0.000 0.827 9.936
2004 9.334 6.288 0.582 0.392 19.700 1.160 11.929 1.545 0.000 0.802 9.582
2005 9.054 5.974 0.565 0.373 19.700 1.160 11.562 1.545 0.000 0.778 9.239
SUB 97.246 70.480 6.068 4.398 19.700 1.160 124.645 14.549 0.000 8.363 101.729
REM 248.898 108.866 15.531 6.793 19.700 1.160 313.845 96.320 0.000 21.287 196.222
TOT 346.144 179.346 21.599 11.191 19.700 1.160 438.490 110.869 0.000 29.650 297.951
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.260 5.157
1997 17.573 11.290
1998 29.457 9.906
1999 40.926 8.691
2000 51.993 7.624
2001 62.671 6.687
2002 72.972 5.865
2003 82.908 5.143
2004 92.490 4.509
2005 101.729 3.952
SUB 101.729 68.824
REM 297.951 27.613
TOT 297.951 96.437
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROSEWOOD RESOURCES 10-1 P.W. % P.W., M$
COBRA OIL & GAS CORP OIL GAS ------ --------
SPRINGHILL (HAYNESVILLE) ---------- ---------- 10.00 108.664
AR, COLUMBIA GROSS WELLS 0.000 1.000 15.00 95.603
HAYNESVILLE GROSS CUM. MB & MMF 123.703 4050.556 20.00 85.682
10 20S 22W GROSS RES. MB & MMF 41.648 2366.478 25.00 77.903
SEQ: 9 GROSS ULT. MB & MMF 165.351 6417.034 30.00 71.644
ORRI INIT W.I 0.000 LIFE/YR 17.083 RATE-OF-RETURN, % 100.00
INIT N.I 2.219 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.182 214.857 0.093 4.767 19.740 2.693 14.668 0.000 0.000 0.688 13.979
1997 7.876 441.022 0.175 9.784 19.740 2.693 29.798 0.000 0.000 1.386 28.412
1998 6.103 352.818 0.135 7.827 19.740 2.693 23.752 0.000 0.000 1.101 22.651
1999 4.882 282.254 0.108 6.262 19.740 2.693 19.001 0.000 0.000 0.881 18.121
2000 3.906 225.803 0.087 5.009 19.740 2.693 15.201 0.000 0.000 0.705 14.496
2001 3.125 180.643 0.069 4.008 19.740 2.693 12.161 0.000 0.000 0.563 11.597
2002 2.500 144.514 0.055 3.206 19.740 2.693 9.729 0.000 0.000 0.451 9.278
2003 2.000 115.611 0.044 2.565 19.740 2.693 7.783 0.000 0.000 0.360 7.422
2004 1.600 92.489 0.035 2.052 19.740 2.693 6.226 0.000 0.000 0.288 5.938
2005 1.280 73.991 0.028 1.641 19.740 2.693 4.981 0.000 0.000 0.231 4.750
SUB 37.454 2124.002 0.831 47.121 19.740 2.693 143.300 0.000 0.000 6.654 136.644
REM 4.193 242.474 0.093 5.379 19.740 2.693 16.324 0.000 0.000 0.757 15.567
TOT 41.647 2366.476 0.924 52.500 19.740 2.693 159.624 0.000 0.000 7.411 152.211
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 13.979 13.710
1997 42.391 26.093
1998 65.042 18.909
1999 83.163 13.752
2000 97.659 10.002
2001 109.256 7.274
2002 118.534 5.290
2003 125.956 3.847
2004 131.894 2.798
2005 136.644 2.035
SUB 136.644 103.710
REM 152.211 4.954
TOT 152.211 108.664
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROSEWOOD RESOURCES 10-2 P.W. % P.W., M$
COBRA OIL GAS ------ --------
SPRINGHILL ---------- ---------- 10.00 195.847
AR, COLUMBIA GROSS WELLS 0.000 1.000 15.00 172.073
HAYNESVILLE GROSS CUM. MB & MMF 11.998 616.820 20.00 154.107
GROSS RES. MB & MMF 57.459 4093.092 25.00 140.064
SEQ: 233 GROSS ULT. MB & MMF 69.457 4709.912 30.00 128.783
ORRI INIT W.I 0.000 LIFE/YR 20.000 RATE-OF-RETURN, % 100.00
INIT N.I 2.368 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 5.855 367.644 0.139 8.704 19.740 2.713 26.351 0.000 0.000 1.211 25.141
1997 10.555 754.638 0.250 17.867 19.740 2.713 53.406 0.000 0.000 2.424 50.981
1998 8.342 603.710 0.198 14.293 19.740 2.713 42.677 0.000 0.000 1.936 40.741
1999 6.673 482.968 0.158 11.435 19.740 2.713 34.141 0.000 0.000 1.548 32.593
2000 5.339 386.374 0.126 9.148 19.740 2.713 27.313 0.000 0.000 1.238 26.075
2001 4.271 309.100 0.101 7.318 19.740 2.713 21.851 0.000 0.000 0.991 20.860
2002 3.417 247.280 0.081 5.855 19.740 2.713 17.480 0.000 0.000 0.792 16.688
2003 2.733 197.824 0.065 4.684 19.740 2.713 13.984 0.000 0.000 0.634 13.350
2004 2.187 158.259 0.052 3.747 19.740 2.713 11.187 0.000 0.000 0.507 10.680
2005 1.749 126.607 0.041 2.998 19.740 2.713 8.950 0.000 0.000 0.406 8.544
SUB 51.121 3634.404 1.210 86.048 19.740 2.713 257.340 0.000 0.000 11.687 245.653
REM 6.341 458.688 0.150 10.860 19.740 2.713 32.425 0.000 0.000 1.471 30.955
TOT 57.462 4093.092 1.360 96.908 19.740 2.713 289.765 0.000 0.000 13.158 276.608
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 25.141 24.656
1997 76.122 46.818
1998 116.863 34.012
1999 149.456 24.736
2000 175.531 17.990
2001 196.391 13.083
2002 213.079 9.515
2003 226.429 6.920
2004 237.109 5.033
2005 245.653 3.660
SUB 245.653 186.423
REM 276.608 9.426
TOT 276.608 195.849
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROSEWOOD RESOURCES 10-3 P.W. % P.W., M$
COBRA OIL GAS ------ --------
SPRINGHILL ---------- ---------- 10.00 399.351
AR, COLUMBIA GROSS WELLS 0.000 1.000 15.00 343.974
HAYNESVILLE GROSS CUM. MB & MMF 18.914 616.707 20.00 304.055
GROSS RES. MB & MMF 119.159 9348.184 25.00 273.888
SEQ: 321 GROSS ULT. MB & MMF 138.073 9964.891 30.00 250.263
ORRI INIT W.I 0.000 LIFE/YR 29.750 RATE-OF-RETURN, % 100.00
INIT N.I 2.368 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 16.068 743.393 0.380 17.601 19.740 2.653 54.204 0.000 0.000 2.579 51.625
1997 24.053 1393.242 0.569 32.986 19.740 2.653 98.755 0.000 0.000 4.585 94.170
1998 15.836 1092.664 0.375 25.870 19.740 2.653 76.034 0.000 0.000 3.471 72.563
1999 12.669 928.765 0.300 21.989 19.740 2.653 64.259 0.000 0.000 2.918 61.341
2000 10.135 789.450 0.240 18.691 19.740 2.653 54.324 0.000 0.000 2.454 51.870
2001 8.108 671.032 0.192 15.887 19.740 2.653 45.939 0.000 0.000 2.065 43.873
2002 6.486 570.378 0.154 13.504 19.740 2.653 38.858 0.000 0.000 1.739 37.120
2003 5.189 484.821 0.123 11.479 19.740 2.653 32.878 0.000 0.000 1.465 31.413
2004 4.151 412.098 0.098 9.757 19.740 2.653 27.825 0.000 0.000 1.234 26.591
2005 3.321 350.283 0.079 8.293 19.740 2.653 23.554 0.000 0.000 1.040 22.514
SUB 106.016 7436.126 2.510 176.058 19.740 2.653 516.630 0.000 0.000 23.550 493.080
REM 13.141 1912.060 0.311 45.270 19.740 2.653 126.244 0.000 0.000 5.474 120.767
TOT 119.157 9348.186 2.821 221.328 19.740 2.653 642.874 0.000 0.000 29.024 613.847
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 51.625 50.640
1997 145.795 86.586
1998 218.358 60.550
1999 279.699 46.533
2000 331.569 35.771
2001 375.442 27.506
2002 412.562 21.156
2003 443.975 16.276
2004 470.566 12.525
2005 493.080 9.640
SUB 493.080 367.183
REM 613.847 32.170
TOT 613.847 399.353
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROSEWOOD RESOURCES 9-1 P.W. % P.W., M$
COBRA OIL & GAS CORP OIL GAS ------ --------
SPRINGHILL (HAYNESVILLE) ---------- ---------- 10.00 77.430
AR, COLUMBIA GROSS WELLS 0.000 1.000 15.00 67.496
HAYNESVILLE GROSS CUM. MB & MMF 94.494 3248.637 20.00 60.050
9 20S 22W GROSS RES. MB & MMF 37.958 1681.819 25.00 54.277
SEQ: 8 GROSS ULT. MB & MMF 132.452 4930.456 30.00 49.675
ORRI INIT W.I 0.000 LIFE/YR 17.000 RATE-OF-RETURN, % 100.00
INIT N.I 2.217 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.119 138.207 0.069 3.064 19.740 2.693 9.617 0.000 0.000 0.459 9.158
1997 6.513 288.591 0.144 6.399 19.740 2.693 20.082 0.000 0.000 0.959 19.124
1998 5.341 236.644 0.118 5.247 19.740 2.693 16.467 0.000 0.000 0.786 15.681
1999 4.380 194.048 0.097 4.302 19.740 2.693 13.503 0.000 0.000 0.645 12.859
2000 3.591 159.120 0.080 3.528 19.740 2.693 11.073 0.000 0.000 0.528 10.544
2001 2.945 130.478 0.065 2.893 19.740 2.693 9.080 0.000 0.000 0.433 8.646
2002 2.415 106.992 0.054 2.372 19.740 2.693 7.445 0.000 0.000 0.355 7.090
2003 1.980 87.733 0.044 1.945 19.740 2.693 6.105 0.000 0.000 0.291 5.814
2004 1.624 71.941 0.036 1.595 19.740 2.693 5.006 0.000 0.000 0.239 4.767
2005 1.331 58.992 0.030 1.308 19.740 2.693 4.105 0.000 0.000 0.196 3.909
SUB 33.239 1472.746 0.737 32.654 19.740 2.693 102.483 0.000 0.000 4.891 97.592
REM 4.719 209.071 0.105 4.636 19.740 2.693 14.548 0.000 0.000 0.695 13.851
TOT 37.958 1681.817 0.842 37.289 19.740 2.693 117.031 0.000 0.000 5.586 111.443
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.158 8.981
1997 28.282 17.558
1998 43.963 13.088
1999 56.822 9.757
2000 67.366 7.273
2001 76.012 5.422
2002 83.102 4.042
2003 88.916 3.013
2004 93.683 2.246
2005 97.592 1.674
SUB 97.592 73.054
REM 111.443 4.374
TOT 111.443 77.428
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH, LAMAR A. 3 P.W. % P.W., M$
COBRA OIL GAS ------ --------
SPRINGHILL ---------- ---------- 10.00 495.614
AR, COLUMBIA GROSS WELLS 0.000 1.000 15.00 430.018
GROSS CUM. MB & MMF 41.500 1216.995 20.00 382.525
GROSS RES. MB & MMF 174.017 11204.506 25.00 346.478
SEQ: 238 GROSS ULT. MB & MMF 215.517 12421.501 30.00 318.127
ORRI. INIT W.I 0.000 LIFE/YR 30.583 RATE-OF-RETURN, % 100.00
INIT N.I 2.318 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 21.618 998.934 0.501 23.154 19.740 2.713 72.709 0.000 0.000 3.450 69.259
1997 36.456 1870.363 0.845 43.353 19.740 2.713 134.297 0.000 0.000 6.297 128.000
1998 23.429 1318.324 0.543 30.557 19.740 2.713 93.622 0.000 0.000 4.348 89.274
1999 18.537 1063.465 0.430 24.650 19.740 2.713 75.357 0.000 0.000 3.492 71.865
2000 14.830 903.945 0.344 20.952 19.740 2.713 63.629 0.000 0.000 2.931 60.698
2001 11.864 768.353 0.275 17.810 19.740 2.713 53.746 0.000 0.000 2.462 51.284
2002 9.491 653.100 0.220 15.138 19.740 2.713 45.412 0.000 0.000 2.069 43.344
2003 7.593 555.135 0.176 12.867 19.740 2.713 38.383 0.000 0.000 1.739 36.644
2004 6.074 471.865 0.141 10.937 19.740 2.713 32.452 0.000 0.000 1.463 30.989
2005 4.859 401.085 0.113 9.297 19.740 2.713 27.445 0.000 0.000 1.231 26.214
SUB 154.751 9004.569 3.587 208.716 19.740 2.713 637.052 0.000 0.000 29.482 607.571
REM 19.265 2199.936 0.447 50.992 19.740 2.713 147.155 0.000 0.000 6.453 140.701
TOT 174.016 11204.505 4.034 259.708 19.740 2.713 784.207 0.000 0.000 35.935 748.272
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 69.259 67.935
1997 197.259 117.682
1998 286.533 74.582
1999 358.398 54.517
2000 419.096 41.860
2001 470.380 32.152
2002 513.724 24.704
2003 550.368 18.986
2004 581.357 14.597
2005 607.571 11.225
SUB 607.571 458.240
REM 748.272 37.374
TOT 748.272 495.614
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ARAPAHOE, NORTHWEST UNIT P.W. % P.W., M$
MULL DRLG CO INC OIL GAS ------ --------
ARAPAHOE ---------- ---------- 10.00 642.407
CO, CHEYENNE GROSS WELLS 1.000 0.000 15.00 539.618
MORROW GROSS CUM. MB & MMF 5041.992 6470.822 20.00 466.499
25 13S 43W GROSS RES. MB & MMF 4053.964 0.000 25.00 412.210
SEQ: 62 GROSS ULT. MB & MMF 9095.956 6470.822 30.00 370.470
INIT W.I 3.002 LIFE/YR 21.417 RATE-OF-RETURN, % 100.00
INIT N.I 2.254 OPC/W 74697 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 175.378 0.000 3.953 0.000 19.380 0.000 76.609 11.212 0.000 6.888 58.509
1997 387.350 0.000 8.731 0.000 19.380 0.000 169.204 26.909 0.000 15.215 127.081
1998 348.059 0.000 7.845 0.000 19.380 0.000 152.041 26.909 0.000 13.672 111.461
1999 316.304 0.000 7.130 0.000 19.380 0.000 138.170 26.909 0.000 12.424 98.837
2000 290.628 0.000 6.551 0.000 19.380 0.000 126.954 26.909 0.000 11.416 88.629
2001 267.791 0.000 6.036 0.000 19.380 0.000 116.978 26.909 0.000 10.519 79.550
2002 246.368 0.000 5.553 0.000 19.380 0.000 107.620 26.909 0.000 9.677 71.034
2003 226.659 0.000 5.109 0.000 19.380 0.000 99.010 26.909 0.000 8.903 63.198
2004 208.526 0.000 4.700 0.000 19.380 0.000 91.089 26.909 0.000 8.191 55.990
2005 191.844 0.000 4.324 0.000 19.380 0.000 83.802 26.909 0.000 7.535 49.358
SUB 2658.907 0.000 59.932 0.000 19.380 0.000 1161.477 253.393 0.000 104.440 803.647
REM 1395.057 0.000 31.445 0.000 19.380 0.000 609.395 322.908 0.000 54.797 231.692
TOT 4053.964 0.000 91.376 0.000 19.380 0.000 1770.872 576.301 0.000 159.237 1035.339
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 58.509 57.373
1997 185.590 116.619
1998 297.051 92.977
1999 395.888 74.946
2000 484.517 61.090
2001 564.067 49.851
2002 635.101 40.468
2003 698.299 32.732
2004 754.289 26.363
2005 803.647 21.129
SUB 803.647 573.548
REM 1035.339 68.858
TOT 1035.339 642.406
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CAMPBELL 21-13 #3 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
HARKER RANCH (MORROW) ---------- ---------- 10.00 15.981
CO, CHEYENNE GROSS WELLS 1.000 0.000 15.00 14.900
MORROW GROSS CUM. MB & MMF 154.424 34.067 20.00 13.975
13 13S 43W GROSS RES. MB & MMF 36.683 20.176 25.00 13.174
SEQ: 467 GROSS ULT. MB & MMF 191.107 54.243 30.00 12.477
INIT W.I 12.000 LIFE/YR 5.917 RATE-OF-RETURN, % 100.00
INIT N.I 9.600 OPC/W 5474 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.653 1.769 0.351 0.170 18.950 2.660 7.096 3.284 0.000 0.638 3.174
1997 7.775 4.003 0.746 0.384 18.950 2.660 15.167 7.883 0.000 1.364 5.920
1998 6.734 3.683 0.646 0.354 18.950 2.660 13.192 7.883 0.000 1.187 4.123
1999 5.983 3.388 0.574 0.325 18.950 2.660 11.750 7.883 0.000 1.057 2.811
2000 5.414 3.117 0.520 0.299 18.950 2.660 10.645 7.883 0.000 0.957 1.806
2001 4.873 2.868 0.468 0.275 18.950 2.660 9.597 7.883 0.000 0.863 0.851
2002 2.250 1.347 0.216 0.129 18.950 2.660 4.438 3.941 0.000 0.400 0.098
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 36.682 20.175 3.522 1.937 18.950 2.660 71.885 46.640 0.000 6.466 18.783
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 36.682 20.175 3.522 1.937 18.950 2.660 71.885 46.640 0.000 6.466 18.783
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
1996 3.174 3.113
1997 9.094 5.442
1998 13.217 3.446
1999 16.028 2.136
2000 17.834 1.249
2001 18.685 0.538
2002 18.783 0.057
2003 18.783 0.000
2004 18.783 0.000
2005 18.783 0.000
SUB 18.783 15.981
REM 18.783 0.000
TOT 18.783 15.981
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DOYLE 34-1 4 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
HARKER RANCH (MORROW) ---------- ---------- 10.00 15.827
CO, CHEYENNE GROSS WELLS 1.000 0.000 15.00 14.985
MORROW GROSS CUM. MB & MMF 174.613 320.427 20.00 14.246
1 13S 43W GROSS RES. MB & MMF 18.332 18.332 25.00 13.592
SEQ: 645 GROSS ULT. MB & MMF 192.945 338.759 30.00 13.009
INIT W.I 12.000 LIFE/YR 4.583 RATE-OF-RETURN, % 100.00
INIT N.I 9.600 OPC/W 2528 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.827 2.827 0.271 0.271 18.940 2.660 5.862 1.517 0.000 0.527
1997 5.550 5.550 0.533 0.533 18.940 2.660 11.509 3.640 0.000 1.035
1998 4.163 4.163 0.400 0.400 18.940 2.660 8.632 3.640 0.000 0.776
1999 3.122 3.122 0.300 0.300 18.940 2.660 6.474 3.640 0.000 0.582
2000 2.341 2.341 0.225 0.225 18.940 2.660 4.855 3.640 0.000 0.436
2001 0.329 0.329 0.032 0.032 18.940 2.660 0.682 0.607 0.000 0.061
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 18.332 18.332 1.760 1.760 18.940 2.660 38.014 16.684 0.000 3.417
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 18.332 18.332 1.760 1.760 18.940 2.660 38.014 16.684 0.000 3.417
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 3.818 3.818 3.746
1997 6.834 10.652 6.286
1998 4.215 14.867 3.527
1999 2.251 17.118 1.716
2000 0.778 17.896 0.543
2001 0.014 17.910 0.009
2002 0.000 17.910 0.000
2003 0.000 17.910 0.000
2004 0.000 17.910 0.000
2005 0.000 17.910 0.000
SUB 17.910 17.910 15.827
REM 0.000 17.910 0.000
TOT 17.910 17.910 15.827
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DURR 12-12 #3 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
HARKER RANCH (MORROW) ---------- ---------- 10.00 0.128
CO, CHEYENNE GROSS WELLS 1.000 0.000 15.00 0.127
MORROW GROSS CUM. MB & MMF 39.570 156.705 20.00 0.126
12 13S 43W GROSS RES. MB & MMF 0.859 1.203 25.00 0.125
SEQ: 646 GROSS ULT. MB & MMF 40.429 157.908 30.00 0.125
INIT W.I 18.000 LIFE/YR 0.417 RATE-OF-RETURN, % 100.00
INIT N.I 13.387 OPC/W 2586 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.859 1.203 0.115 0.161 19.740 2.660 2.700 2.327 0.000 0.243 0.129
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.859 1.203 0.115 0.161 19.740 2.660 2.700 2.327 0.000 0.243 0.129
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.859 1.203 0.115 0.161 19.740 2.660 2.700 2.327 0.000 0.243 0.129
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.129 0.128
1997 0.129 0.000
1998 0.129 0.000
1999 0.129 0.000
2000 0.129 0.000
2001 0.129 0.000
2002 0.129 0.000
2003 0.129 0.000
2004 0.129 0.000
2005 0.129 0.000
SUB 0.129 0.128
REM 0.129 0.000
TOT 0.129 0.128
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DURR 21-12 #1 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
HARKER RANCH (MORROW) ---------- ---------- 10.00 1.866
CO, CHEYENNE GROSS WELLS 1.000 0.000 15.00 1.830
MORROW GROSS CUM. MB & MMF 50.726 156.901 20.00 1.797
12 13S 43W GROSS RES. MB & MMF 3.491 0.000 25.00 1.766
SEQ: 468 GROSS ULT. MB & MMF 54.217 156.901 30.00 1.737
INIT W.I 22.500 LIFE/YR 1.417 RATE-OF-RETURN, % 100.00
INIT N.I 17.531 OPC/W 2253 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.178 0.000 0.207 0.000 18.970 0.000 3.918 2.535 0.000 0.353 1.031
1997 2.313 0.000 0.405 0.000 18.970 0.000 7.691 6.083 0.000 0.692 0.916
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 3.491 0.000 0.612 0.000 18.970 0.000 11.609 8.618 0.000 1.045 1.947
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 3.491 0.000 0.612 0.000 18.970 0.000 11.609 8.618 0.000 1.045 1.947
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.031 1.012
1997 1.947 0.854
1998 1.947 0.000
1999 1.947 0.000
2000 1.947 0.000
2001 1.947 0.000
2002 1.947 0.000
2003 1.947 0.000
2004 1.947 0.000
2005 1.947 0.000
SUB 1.947 1.866
REM 1.947 0.000
TOT 1.947 1.866
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DURR 32-12 #2 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
ARAPAHOE (MORROW) ---------- ---------- 10.00 4.601
CO, CHEYENNE GROSS WELLS 1.000 0.000 15.00 4.303
MORROW GROSS CUM. MB & MMF 51.246 45.696 20.00 4.047
12 13s 43W GROSS RES. MB & MMF 11.734 0.000 25.00 3.824
SEQ: 469 GROSS ULT. MB & MMF 62.980 45.696 30.00 3.629
INIT W.I 12.000 LIFR/YR 5.667 RATE - OF- RETURN, % 100.00
INIT N.I 8.761 OPC/W 1606 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.207 0.000 0.106 0.000 19.740 0.000 2.087 0.964 0.000 0.187 0.935
1997 2.589 0.000 0.227 0.000 19.740 0.000 4.477 2.313 0.000 0.402 1.762
1998 2.243 0.000 0.197 0.000 19.740 0.000 3.879 2.313 0.000 0.349 1.218
1999 1.976 0.000 0.173 0.000 19.740 0.000 3.417 2.313 0.000 0.308 0.797
2000 1.763 0.000 0.154 0.000 19.740 0.000 3.049 2.313 0.000 0.274 0.463
2001 1.586 0.000 0.139 0.000 19.740 0.000 2.742 2.313 0.000 0.247 0.183
2002 0.371 0.000 0.033 0.000 19.740 0.000 0.642 0.578 0.000 0.058 0.006
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 11.735 0.000 0.028 0.000 19.740 0.000 20.293 13.107 0.000 1.825 5.364
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 11.735 0.000 0.028 0.000 19.740 0.000 20.293 13.107 0.000 1.825 5.364
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.935 0.918
1997 2.697 1.619
1998 3.915 1.018
1999 4.712 0.606
2000 5.175 0.320
2001 5.358 0.116
2002 5.364 0.003
2003 5.364 0.000
2004 5.364 0.000
2005 5.364 0.000
SUB 5.364 4.600
REM 5.364 0.000
TOT 5.364 4.600
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PEOC-NVG 41-23H P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
WOLF MOUNTAIN ---------- ---------- 10.00 948.432
CO, ROUTT GROSS WELLS 1.000 0.000 15.00 670.185
NIOBRARA GROSS CUM. MB & MMF 69.910 53.503 20.00 522.796
23 7N 87W GROSS RES. MB & MMF 457.087 0.000 25.00 431.687
SEQ: 200 GROSS ULT. MB & MMF 526.997 53.503 30.00 369.767
INIT W.I 80.719 LIFE/YR 59.667 RATE-OF-RETURN, % 100.00
INIT N.I 59.414 OPC/W 975 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.235 0.000 2.516 0.000 20.070 0.000 50.502 3.935 0.000 4.541 42.026
1997 10.092 0.000 5.996 0.000 20.070 0.000 120.346 9.444 0.000 10.822 100.081
1998 9.992 0.000 5.936 0.000 20.070 0.000 119.143 9.444 0.000 10.714 98.985
1999 9.892 0.000 5.877 0.000 20.070 0.000 117.951 9.444 0.000 10.606 97.901
2000 9.793 0.000 5.818 0.000 20.070 0.000 116.772 9.444 0.000 10.500 96.828
2001 9.695 0.000 5.760 0.000 20.070 0.000 115.604 9.444 0.000 10.395 95.765
2002 9.598 0.000 5.702 0.000 20.070 0.000 114.448 9.444 0.000 10.291 94.713
2003 9.502 0.000 5.645 0.000 20.070 0.000 113.304 9.444 0.000 10.188 93.671
2004 9.407 0.000 5.589 0.000 20.070 0.000 112.171 9.444 0.000 10.087 92.640
2005 9.313 0.000 5.533 0.000 20.070 0.000 111.049 9.444 0.000 9.986 91.619
SUB 91.519 0.000 54.374 0.000 20.070 0.000 1091.290 88.931 0.000 98.130 904.229
REM 365.570 0.000 217.199 0.000 20.070 0.000 4359.188 474.564 0.000 391.976 3492.644
TOT 457.089 0.000 271.573 0.000 20.070 0.000 5450.478 563.495 0.000 490.106 4396.873
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 42.026 41.203
1997 142.107 91.750
1998 241.092 82.497
1999 338.993 74.175
2000 435.821 66.693
2001 531.586 59.964
2002 626.299 53.914
2003 719.970 48.474
2004 812.610 43.582
2005 904.229 39.183
SUB 904.229 601.435
REM 4396.873 346.996
TOT 4396.873 948.431
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND- PIPE
PEOC-NVG 41-23H PDBP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
WOLF MOUNTAIN ---------- ---------- 10.00 1231.589
CO, ROUTT GROSS WELLS 1.000 0.000 15.00 819.717
NIOBRARA GROSS CUM. MB & MMF 0.000 0.000 20.00 603.798
23 7N 87W GROSS RES. MB & MMF 657.840 0.000 25.00 471.761
SEQ: 247 GROSS ULT. MB & MMF 657.840 0.000 30.00 383.064
ADDITIONAL PERFORATIONS. INIT W.I 80.719 LIFE/YR 60.833 RATE-OF-RETURN, % 100.00
INIT N.I 59.414 OPC/W 975 UNDISC NET/INVEST 95.34
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 8.492 0.000 5.045 0.000 20.070 0.000 101.259 5.509 68.934 9.105 17.711
1998 14.442 0.000 8.581 0.000 20.070 0.000 172.212 9.444 0.000 15.485 147.282
1999 14.298 0.000 8.495 0.000 20.070 0.000 170.489 9.444 0.000 15.331 145.715
2000 14.155 0.000 8.410 0.000 20.070 0.000 168.785 9.444 0.000 15.177 144.163
2001 14.013 0.000 8.326 0.000 20.070 0.000 167.097 9.444 0.000 15.025 142.627
2002 13.873 0.000 8.242 0.000 20.070 0.000 165.426 9.444 0.000 14.875 141.107
2003 13.734 0.000 8.160 0.000 20.070 0.000 163.771 9.444 0.000 14.726 139.601
2004 13.597 0.000 8.078 0.000 20.070 0.000 162.134 9.444 0.000 14.579 138.111
2005 13.461 0.000 7.998 0.000 20.070 0.000 160.512 9.444 0.000 14.433 136.635
SUB 120.065 0.000 71.335 0.000 20.070 0.000 1431.685 81.061 68.934 128.736 1152.952
REM 537.775 0.000 319.514 0.000 20.070 0.000 6412.655 485.582 0.000 576.625 5350.442
TOT 657.840 0.000 390.849 0.000 20.070 0.000 7844.340 566.643 68.934 705.361 6503.394
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 17.711 14.176
1998 164.993 122.748
1999 310.708 110.402
2000 454.871 99.296
2001 597.498 89.308
2002 738.605 80.323
2003 878.206 72.242
2004 1016.317 64.973
2005 1152.952 58.436
SUB 1152.952 711.904
REM 6503.394 519.687
TOT 6503.394 1231.591
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STEELE 44C-3 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
HARKER RANCH (MORROW) ---------- ---------- 10.00 670.716
CO, CHEYENNE ROSS WELLS 1.000 0.000 15.00 605.878
MORROW ROSS CUM. MB & MMF 56.391 309.362 20.00 554.060
3 13S 43W ROSS RES. MB & MMF 98.451 1640.842 25.00 511.770
SEQ: 470 ROSS ULT. MB & MMF 154.842 1950.204 30.00 476.632
NIT W.I 22.500 LIFE/YR 14.250 RATE-OF-RETURN, % 100.00
NIT N.I 16.427 OPC/W 1678 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 11.309 188.478 1.858 30.961 18.740 2.660 117.170 1.888 0.000 10.536 104.746
1997 22.200 370.008 3.647 60.781 18.740 2.660 230.020 4.531 0.000 20.684 204.806
1998 16.650 277.506 2.735 45.586 18.740 2.660 172.515 4.531 0.000 15.513 152.472
1999 12.488 208.129 2.051 34.189 18.740 2.660 129.386 4.531 0.000 11.634 113.221
2000 9.366 156.097 1.539 25.642 18.740 2.660 97.040 4.531 0.000 8.726 83.783
2001 7.024 117.073 1.154 19.232 18.740 2.660 72.780 4.531 0.000 6.544 61.705
2002 5.268 87.805 0.865 14.424 18.740 2.660 54.585 4.531 0.000 4.908 45.146
2003 3.951 65.853 0.649 10.818 18.740 2.660 40.939 4.531 0.000 3.682 32.727
2004 2.963 49.390 0.487 8.113 18.740 2.660 30.704 4.531 0.000 2.761 23.412
2005 2.223 37.043 0.365 6.085 18.740 2.660 23.028 4.531 0.000 2.071 16.427
SUB 93.442 1557.382 15.350 255.831 18.740 2.660 968.167 42.667 0.000 87.059 838.445
REM 5.008 83.460 0.823 13.710 18.740 2.660 51.884 21.900 0.000 4.666 25.321
TOT 98.450 1640.842 16.172 269.541 18.740 2.660 1020.051 64.567 0.000 91.725 863.766
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 104.746 102.733
1997 309.552 188.178
1998 462.024 127.359
1999 575.245 85.978
2000 659.028 57.841
2001 720.733 38.728
2002 765.879 25.761
2003 798.606 16.978
2004 822.018 11.043
2005 838.445 7.045
SUB 838.445 661.644
REM 863.766 9.073
TOT 863.766 670.717
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRASS P.W. % P.W., M$
LATEX OIL GAS ------ --------
WILDCAT ---------- ---------- 10.00 0.000
KS, COMANCHE GROSS WELLS 1.000 0.000 15.00 0.000
ARBUCKLE GROSS CUM. MB & MMF 3.092 0.000 20.00 0.000
35-32S-19W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 356 GROSS ULT. MB & MMF 3.092 0.000 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 1.000 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 74.257 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 15.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 15.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 15.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GLENN 1-33 P.W. % P.W., M$
BEREXCO INC OIL GAS ------ --------
BEAUCHAMP SW (MORROWAN) ---------- ---------- 10.00 81.750
KS, STANTON GROSS WELLS 0.000 1.000 15.00 66.076
MORROWAN GROSS CUM. MB & MMF 0.000 836.563 20.00 55.595
33 30S 41W GROSS RES. MB & MMF 0.000 1064.100 25.00 48.158
SEQ: 471 GROSS ULT. MB & MMF 0.000 1900.663 30.00 42.630
INIT W.I 19.141 LIFE/YR 27.667 RATE-OF-RETURN, % 100.00
INIT N.I 14.497 OPC/W 1985 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 29.682 0.000 4.303 0.000 1.960 8.434 1.900 0.000 0.675 5.860
1997 0.000 68.701 0.000 9.960 0.000 1.960 19.521 4.559 0.000 1.562 13.400
1998 0.000 65.266 0.000 9.462 0.000 1.960 18.545 4.559 0.000 1.484 12.502
1999 0.000 62.002 0.000 8.989 0.000 1.960 17.618 4.559 0.000 1.409 11.649
2000 0.000 58.902 0.000 8.539 0.000 1.960 16.737 4.559 0.000 1.339 10.839
2001 0.000 55.957 0.000 8.112 0.000 1.960 15.900 4.559 0.000 1.272 10.069
2002 0.000 53.159 0.000 7.707 0.000 1.960 15.105 4.559 0.000 1.208 9.337
2003 0.000 50.501 0.000 7.321 0.000 1.960 14.350 4.559 0.000 1.148 8.642
2004 0.000 47.976 0.000 6.955 0.000 1.960 13.632 4.559 0.000 1.091 7.982
2005 0.000 45.577 0.000 6.607 0.000 1.960 12.951 4.559 0.000 1.036 7.355
SUB 0.000 537.723 0.000 77.955 0.000 1.960 152.793 42.931 0.000 12.224 97.635
REM 0.000 526.378 0.000 76.310 0.000 1.960 149.568 83.202 0.000 11.966 54.396
TOT 0.000 1064.101 0.000 154.265 0.000 1.960 302.361 126.133 0.000 24.190 152.031
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.860 5.745
1997 19.260 12.290
1998 31.762 10.424
1999 43.411 8.830
2000 54.250 7.469
2001 64.319 6.308
2002 73.656 5.318
2003 82.298 4.475
2004 90.280 3.757
2005 97.635 3.147
SUB 97.635 67.763
REM 152.031 13.985
TOT 152.031 81.748
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KANSAS UNIVERSITY P.W. % P.W., M$
LATEX OIL GAS ------ --------
SPARKS NE ---------- ---------- 10.00 72.874
KS, STANTON GROSS WELLS 0.000 1.000 15.00 58.284
MORROWAN GROSS CUM. MB & MMF 0.005 917.525 20.00 48.732
14-30S-42W GROSS RES. MB & MMF 0.000 356.160 25.00 42.044
SEQ: 235 GROSS ULT. MB & MMF 0.005 1273.685 30.00 37.118
INIT W.I 50.781 LIFE/YR 31.500 RATE-OF-RETURN, % 100.00
INIT N.I 37.412 OPC/W 249 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.399 0.000 3.516 0.000 2.020 7.103 1.264 0.000 0.808 5.031
1997 0.000 21.755 0.000 8.139 0.000 2.020 16.441 3.035 0.000 1.870 11.536
1998 0.000 20.667 0.000 7.732 0.000 2.020 15.619 3.035 0.000 1.777 10.807
1999 0.000 19.634 0.000 7.346 0.000 2.020 14.838 3.035 0.000 1.688 10.115
2000 0.000 18.652 0.000 6.978 0.000 2.020 14.096 3.035 0.000 1.604 9.458
2001 0.000 17.720 0.000 6.629 0.000 2.020 13.391 3.035 0.000 1.523 8.833
2002 0.000 16.834 0.000 6.298 0.000 2.020 12.722 3.035 0.000 1.448 8.240
2003 0.000 15.992 0.000 5.983 0.000 2.020 12.086 3.035 0.000 1.375 7.676
2004 0.000 15.192 0.000 5.684 0.000 2.020 11.481 3.035 0.000 1.307 7.140
2005 0.000 14.433 0.000 5.400 0.000 2.020 10.907 3.035 0.000 1.241 6.632
SUB 0.000 170.278 0.000 63.705 0.000 2.020 128.684 28.579 0.000 14.641 85.468
REM 0.000 185.881 0.000 69.542 0.000 2.020 140.478 67.023 0.000 15.980 57.480
TOT 0.000 356.159 0.000 133.248 0.000 2.020 269.162 95.602 0.000 30.621 142.948
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.031 4.933
1997 16.567 10.580
1998 27.374 9.011
1999 37.489 7.667
2000 46.947 6.517
2001 55.780 5.534
2002 64.020 4.693
2003 71.696 3.974
2004 78.836 3.361
2005 85.468 2.838
SUB 85.468 59.108
REM 142.948 13.766
TOT 142.948 72.874
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LUCAS P.W. % P.W., M$
BEREXCO INC OIL GAS ------ --------
BEAUCHAMP (MORROWAN) ---------- ---------- 10.00 70.086
KS, STANTON GROSS WELLS 0.000 1.000 15.00 60.015
MORROWAN GROSS CUM. MB & MMF 0.000 673.563 20.00 52.701
21 30S 41W GROSS RES. MB & MMF 0.000 594.140 25.00 47.175
SEQ: 472 GROSS ULT. MB & MMF 0.000 1267.703 30.00 42.862
INIT W.I 19.141 LIFE/YR 20.500 RATE-OF-RETURN, % 100.00
INIT N.I 14.124 OPC/W 844 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 35.439 0.000 5.005 0.000 1.900 9.510 0.808 0.000 0.761 7.942
1997 0.000 72.059 0.000 10.177 0.000 1.900 19.337 1.939 0.000 1.547 15.852
1998 0.000 59.547 0.000 8.410 0.000 1.900 15.979 1.939 0.000 1.278 12.762
1999 0.000 51.125 0.000 7.221 0.000 1.900 13.719 1.939 0.000 1.098 10.683
2000 0.000 45.023 0.000 6.359 0.000 1.900 12.082 1.939 0.000 0.967 9.177
2001 0.000 40.492 0.000 5.719 0.000 1.900 10.866 1.939 0.000 0.869 8.058
2002 0.000 36.493 0.000 5.154 0.000 1.900 9.793 1.939 0.000 0.783 7.071
2003 0.000 32.844 0.000 4.639 0.000 1.900 8.814 1.939 0.000 0.705 6.170
2004 0.000 29.560 0.000 4.175 0.000 1.900 7.932 1.939 0.000 0.635 5.359
2005 0.000 26.604 0.000 3.757 0.000 1.900 7.139 1.939 0.000 0.571 4.629
SUB 0.000 429.186 0.000 60.617 0.000 1.900 115.171 18.259 0.000 9.214 87.703
REM 0.000 164.953 0.000 23.297 0.000 1.900 44.265 21.491 0.000 3.541 19.240
TOT 0.000 594.139 0.000 83.914 0.000 1.900 159.436 39.750 0.000 12.755 106.943
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.942 7.789
1997 23.794 14.559
1998 36.556 10.652
1999 47.239 8.104
2000 56.416 6.327
2001 64.474 5.050
2002 71.545 4.029
2003 77.715 3.196
2004 83.074 2.524
2005 87.703 1.982
SUB 87.703 64.212
REM 106.943 5.874
TOT 106.943 70.086
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MARTIN P.W. % P.W., M$
LATEX OIL GAS ------ --------
KANSAS HUGOTON ---------- ---------- 10.00 0.000
KS, STANTON GROSS WELLS 0.000 1.000 15.00 0.000
COUNCIL GROVE GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
16 29S 40W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 388 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES, SHUT-IN. INIT W.I 58.438 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 45.386 OPC/W 1822 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NELLIE 1-16 P.W. % P.W., M$
BEREXCO INC OIL GAS ------ --------
BEAUCHAMP (MORROWAN) ---------- ---------- 10.00 16.690
KS, STANTON GROSS WELLS 0.000 1.000 15.00 15.880
MORROWAN GROSS CUM. MB & MMF 0.000 316.226 20.00 15.164
16 30S 41W GROSS RES. MB & MMF 0.000 111.280 25.00 14.528
SEQ: 473 GROSS ULT. MB & MMF 0.000 427.506 30.00 13.958
INIT W.I 38.281 LIFE/YR 4.333 RATE-OF-RETURN, % 100.00
INIT N.I 28.247 OPC/W 1822 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 16.321 0.000 4.610 0.000 1.900 8.759 3.487 0.000 0.701 4.571
1997 0.000 31.959 0.000 9.027 0.000 1.900 17.152 8.370 0.000 1.372 7.410
1998 0.000 25.318 0.000 7.152 0.000 1.900 13.588 8.370 0.000 1.087 4.131
1999 0.000 21.044 0.000 5.944 0.000 1.900 11.294 8.370 0.000 0.904 2.021
2000 0.000 16.639 0.000 4.700 0.000 1.900 8.930 7.672 0.000 0.714 0.543
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 111.281 0.000 31.434 0.000 1.900 59.723 36.269 0.000 4.778 18.676
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 111.281 0.000 31.434 0.000 1.900 59.723 36.269 0.000 4.778 18.676
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.571 4.485
1997 11.981 6.823
1998 16.112 3.460
1999 18.133 1.541
2000 18.676 0.381
2001 18.676 0.000
2002 18.676 0.000
2003 18.676 0.000
2004 18.676 0.000
2005 18.676 0.000
SUB 18.676 16.690
REM 18.676 0.000
TOT 18.676 16.690
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BERGERON 5 P.W. % P.W., M$
AMOCO OIL GAS ------ --------
MOORE SAMS ---------- ---------- 10.00 1.059
LA, POINTE COUPEE GROSS WELLS 1.000 0.000 15.00 1.048
TUSC RA SUH GROSS CUM. MB & MMF 684.396 24538.900 20.00 1.038
54-5S-9E GROSS RES. MB & MMF 4.063 162.510 25.00 1.028
SEQ: 474 GROSS ULT. MB & MMF 688.459 24701.410 30.00 1.019
INIT W.I 1.194 LIFE/YR 0.750 RATE-OF-RETURN, % 100.00
INIT N.I 0.869 OPC/W 27532 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.552 102.079 0.022 0.887 19.740 2.530 2.682 1.643 0.000 0.143 0.895
1997 1.511 60.431 0.013 0.525 19.741 2.530 1.588 1.315 0.000 0.085 0.188
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 4.063 162.510 0.035 1.412 19.740 2.530 4.270 2.958 0.000 0.228 1.083
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 4.063 162.510 0.035 1.412 19.740 2.530 4.270 2.958 0.000 0.228 1.083
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.895 0.880
1997 1.083 0.179
1998 1.083 0.000
1999 1.083 0.000
2000 1.083 0.000
2001 1.083 0.000
2002 1.083 0.000
2003 1.083 0.000
2004 1.083 0.000
2005 1.083 0.000
SUB 1.083 1.059
REM 1.083 0.000
TOT 1.083 1.059
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BIZETTE 1 P.W. % P.W., M$
AMOCO OIL GAS ------ --------
MOORE SAMS ---------- ---------- 10.00 23.131
LA, POINTE COUPEE GROSS WELLS 1.000 0.000 15.00 22.245
TUSCALOOSA GROSS CUM. MB & MMF 491.104 21204.922 20.00 21.448
58-5S-10E GROSS RES. MB & MMF 36.502 1095.066 25.00 20.727
SEQ: 476 GROSS ULT. MB & MMF 527.606 22299.988 30.00 20.071
INIT W.I 1.797 LIFE/YR 3.333 RATE-OF-RETURN, % 100.00
INIT N.I 1.237 OPC/W 21520 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 8.557 256.712 0.106 3.175 19.740 2.530 10.121 1.933 0.000 0.579 7.609
1997 14.431 432.919 0.178 5.354 19.740 2.530 17.067 4.640 0.000 0.976 11.451
1998 8.658 259.751 0.107 3.212 19.740 2.530 10.240 4.640 0.000 0.585 5.015
1999 4.856 145.684 0.060 1.802 19.740 2.530 5.743 4.254 0.000 0.328 1.162
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 36.502 1095.066 0.451 13.542 19.740 2.530 43.171 15.467 0.000 2.468 25.237
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 36.502 1095.066 0.451 13.542 19.740 2.530 43.171 15.467 0.000 2.468 25.237
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.609 7.466
1997 19.060 10.557
1998 24.075 4.211
1999 25.237 0.897
2000 25.237 0.000
2001 25.237 0.000
2002 25.237 0.000
2003 25.237 0.000
2004 25.237 0.000
2005 25.237 0.000
SUB 25.237 23.131
REM 25.237 0.000
TOT 25.237 23.131
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BIZETTE 2 P.W. % P.W., M$
AMOCO OIL GAS ------ --------
MOORE SAMS ---------- ---------- 10.00 0.000
LA, POINTE COUPEE GROSS WELLS 0.000 1.000 15.00 0.000
TUSCALOOSA GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
60-4S-9E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 475 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES ASSIGNED. INIT W.I 1.339 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 1.113 OPC/W 21520 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BUTLER P.W. % P.W., M$
AMOCO OIL GAS ------ --------
MOORE SAMS ---------- ---------- 10.00 191.274
LA, POINTE COUPEE GROSS WELLS 0.000 1.000 15.00 161.692
TUSC RA SUD GROSS CUM. MB & MMF 697.363 25071.642 20.00 140.425
54-4S-10E GROSS RES. MB & MMF 193.539 7945.277 25.00 124.496
SEQ: 477 GROSS ULT. MB & MMF 890.902 33016.919 30.00 112.161
INIT W.I 2.025 LIFE/YR 21.333 RATE-OF-RETURN, % 100.00
INIT N.I 1.444 OPC/W 21000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 9.294 381.563 0.134 5.509 19.740 3.260 20.609 2.127 0.000 0.882 17.600
1997 20.711 850.222 0.299 12.276 19.740 3.260 45.922 5.104 0.000 1.965 38.853
1998 18.639 765.200 0.269 11.048 19.740 3.260 41.330 5.104 0.000 1.769 34.457
1999 16.776 688.680 0.242 9.943 19.740 3.260 37.197 5.104 0.000 1.592 30.501
2000 15.098 619.812 0.218 8.949 19.740 3.260 33.477 5.104 0.000 1.433 26.941
2001 13.588 557.831 0.196 8.054 19.740 3.260 30.130 5.104 0.000 1.290 23.736
2002 12.229 502.048 0.177 7.249 19.740 3.260 27.117 5.104 0.000 1.161 20.852
2003 11.006 451.843 0.159 6.524 19.740 3.260 24.405 5.104 0.000 1.045 18.257
2004 9.906 406.659 0.143 5.872 19.740 3.260 21.965 5.104 0.000 0.940 15.921
2005 8.915 365.993 0.129 5.284 19.740 3.260 19.768 5.104 0.000 0.846 13.818
SUB 136.162 5589.851 1.966 80.709 19.740 3.260 301.920 48.063 0.000 12.923 240.936
REM 57.376 2355.427 0.828 34.009 19.740 3.260 127.223 60.822 0.000 5.446 60.957
TOT 193.538 7945.278 2.794 114.718 19.740 3.260 429.143 108.885 0.000 18.369 301.893
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 17.600 17.258
1997 56.453 35.650
1998 90.910 28.742
1999 121.411 23.130
2000 148.352 18.573
2001 172.088 14.877
2002 192.940 11.881
2003 211.197 9.457
2004 227.118 7.497
2005 240.936 5.916
SUB 240.936 172.981
REM 301.893 18.293
TOT 301.893 191.274
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CL&F 1 P.W. % P.W., M$
AMERICAN EXPLORER INCORP OIL GAS ------ --------
TURTLE BAYOU ---------- ---------- 10.00 13.443
LA, TERREBONNE GROSS WELLS 0.000 1.000 15.00 12.682
HOLLYWOOD GROSS CUM. MB & MMF 0.000 0.000 20.00 12.019
18 32 17 14 GROSS RES. MB & MMF 0.374 374.406 25.00 11.437
SEQ: 707 GROSS ULT. MB & MMF 0.374 374.406 30.00 10.922
INIT W.I 3.150 LIFE/YR 5.250 RATE-OF-RETURN, % 100.00
INIT N.I 2.214 OPC/W 3946 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.061 61.098 0.001 1.352 19.997 2.880 3.922 0.621 0.000 0.139 3.162
1997 0.114 114.397 0.003 2.532 19.993 2.880 7.344 1.492 0.000 0.260 5.593
1998 0.080 80.078 0.002 1.773 19.986 2.880 5.141 1.492 0.000 0.182 3.467
1999 0.056 56.054 0.001 1.241 19.988 2.880 3.598 1.492 0.000 0.127 1.980
2000 0.039 39.238 0.001 0.869 19.980 2.880 2.519 1.492 0.000 0.089 0.938
2001 0.024 23.541 0.001 0.521 19.994 2.880 1.511 1.243 0.000 0.053 0.215
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.374 374.406 0.008 8.288 19.990 2.880 24.035 7.832 0.000 0.850 15.355
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.374 374.406 0.008 8.288 19.990 2.880 24.035 7.832 0.000 0.850 15.355
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.162 3.102
1997 8.755 5.145
1998 12.222 2.901
1999 14.202 1.507
2000 15.140 0.651
2001 15.355 0.137
2002 15.355 0.000
2003 15.355 0.000
2004 15.355 0.000
2005 15.355 0.000
SUB 15.355 13.443
REM 15.355 0.000
TOT 15.355 13.443
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CL&F 10 (TB) P.W. % P.W., M$
AMERICAN EXPLORER INCORP OIL GAS ------ --------
TURTLE BAYOU ---------- ---------- 10.00 159.499
LA, TERREBONNE GROSS WELLS 0.000 1.000 15.00 137.315
HOLLYWOOD GROSS CUM. MB & MMF 3.500 150.000 20.00 120.963
GROSS RES. MB & MMF 130.811 5687.454 25.00 108.459
SEQ: 636 GROSS ULT. MB & MMF 134.311 5837.454 30.00 98.607
INIT W.I 2.500 LIFE/YR 21.083 RATE-OF-RETURN, % 100.00
INIT N.I 1.640 OPC/W 5925 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 8.358 363.387 0.137 5.959 19.740 2.660 18.555 0.741 0.000 0.934 16.881
1997 18.028 783.843 0.296 12.853 19.740 2.660 40.025 1.777 0.000 2.015 36.232
1998 15.489 673.450 0.254 11.043 19.740 2.660 34.388 1.777 0.000 1.731 30.879
1999 13.308 578.605 0.218 9.488 19.740 2.660 29.545 1.777 0.000 1.487 26.280
2000 11.434 497.117 0.187 8.151 19.740 2.660 25.384 1.777 0.000 1.278 22.329
2001 9.823 427.105 0.161 7.003 19.740 2.660 21.809 1.777 0.000 1.098 18.934
2002 8.440 366.953 0.138 6.017 19.740 2.660 18.737 1.777 0.000 0.943 16.017
2003 7.251 315.273 0.119 5.170 19.740 2.660 16.099 1.777 0.000 0.810 13.511
2004 6.230 270.872 0.102 4.442 19.740 2.660 13.831 1.777 0.000 0.696 11.358
2005 5.353 232.723 0.088 3.816 19.740 2.660 11.883 1.777 0.000 0.598 9.508
SUB 103.714 4509.328 1.701 73.942 19.740 2.660 230.256 16.734 0.000 11.590 201.929
REM 27.098 1178.128 0.444 19.318 19.740 2.660 60.158 20.732 0.000 3.030 36.393
TOT 130.812 5687.456 2.145 93.260 19.740 2.660 290.414 37.466 0.000 14.620 238.322
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 16.881 16.553
1997 53.113 33.255
1998 83.992 25.766
1999 110.272 19.935
2000 132.601 15.398
2001 151.535 11.870
2002 167.552 9.129
2003 181.063 7.000
2004 192.421 5.350
2005 201.929 4.072
SUB 201.929 148.328
REM 238.322 11.171
TOT 238.322 159.499
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CL&F 2 P.W. % P.W., M$
AMERICAN EXPLORER INCORP OIL GAS ------ --------
DEER ISLAND ---------- ---------- 10.00 34.687
LA, TERREBONNE GROSS WELLS 0.000 1.000 15.00 31.318
HOLLYWOOD GROSS CUM. MB & MMF 0.000 0.000 20.00 28.602
18 31 17 14 GROSS RES. MB & MMF 44.318 984.855 25.00 26.372
SEQ: 708 GROSS ULT. MB & MMF 44.318 984.855 30.00 24.514
INIT W.I 2.500 LIFE/YR 11.083 RATE-OF-RETURN, % 100.00
INIT N.I 1.640 OPC/W 3097 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.297 95.492 0.070 1.566 19.990 2.880 5.918 0.493 0.000 0.333 5.092
1997 8.820 196.010 0.145 3.214 19.990 2.880 12.148 1.184 0.000 0.683 10.281
1998 7.056 156.808 0.116 2.571 19.990 2.880 9.718 1.184 0.000 0.546 7.988
1999 5.645 125.446 0.093 2.057 19.990 2.880 7.775 1.184 0.000 0.437 6.154
2000 4.516 100.357 0.074 1.646 19.990 2.880 6.220 1.184 0.000 0.350 4.686
2001 3.613 80.286 0.059 1.316 19.990 2.880 4.976 1.184 0.000 0.280 3.512
2002 2.890 64.228 0.047 1.053 19.990 2.880 3.981 1.184 0.000 0.224 2.573
2003 2.312 51.383 0.038 0.843 19.990 2.880 3.184 1.184 0.000 0.179 1.822
2004 1.850 41.106 0.030 0.674 19.990 2.880 2.548 1.184 0.000 0.143 1.221
2005 1.480 32.885 0.024 0.539 19.990 2.880 2.038 1.184 0.000 0.115 0.740
SUB 42.479 944.001 0.697 15.479 19.990 2.880 58.506 11.149 0.000 3.290 44.069
REM 1.839 40.854 0.030 0.670 19.990 2.880 2.531 1.973 0.000 0.143 0.417
TOT 44.318 984.855 0.727 16.149 19.990 2.880 61.037 13.122 0.000 3.433 44.486
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.092 4.994
1997 15.373 9.443
1998 23.361 6.670
1999 29.515 4.672
2000 34.201 3.235
2001 37.713 2.204
2002 40.286 1.468
2003 42.108 0.945
2004 43.329 0.576
2005 44.069 0.318
SUB 44.069 34.525
REM 44.486 0.161
TOT 44.486 34.686
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CL&F 4 (TB) P.W. % P.W., M$
AMERICAN EXPLORER INCORP OIL GAS ------ --------
TURTLE BAYOU ---------- ---------- 10.00 361.078
LA, TERREBONNE GROSS WELLS 0.000 1.000 15.00 344.174
HOLLYWOOD SAND GROSS CUM. MB & MMF 159.000 15100.000 20.00 329.025
18 32 17 14 GROSS RES. MB & MMF 40.223 6400.000 25.00 315.378
SEQ: 55 GROSS ULT. MB & MMF 199.223 21500.000 30.00 303.024
INIT W.I 3.150 LIFE/YR 2.500 RATE-OF-RETURN, % 100.00
INIT N.I 2.214 OPC/W 8421 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 8.550 1281.134 0.189 28.360 19.990 2.880 85.460 1.326 0.000 3.309 80.825
1997 17.245 2742.873 0.382 60.718 19.990 2.880 182.498 3.183 0.000 7.026 172.290
1998 13.451 2331.442 0.298 51.610 19.990 2.880 154.590 3.183 0.000 5.905 145.501
1999 0.977 44.552 0.022 0.986 19.990 2.880 3.273 0.265 0.000 0.153 2.855
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 40.223 6400.001 0.890 141.674 19.990 2.880 425.821 7.957 0.000 16.393 401.471
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 40.223 6400.001 0.890 141.674 19.990 2.880 425.821 7.957 0.000 16.393 401.471
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 80.825 79.258
1997 253.115 158.146
1998 398.616 121.415
1999 401.471 2.259
2000 401.471 0.000
2001 401.471 0.000
2002 401.471 0.000
2003 401.471 0.000
2004 401.471 0.000
2005 401.471 0.000
SUB 401.471 361.078
REM 401.471 0.000
TOT 401.471 361.078
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CL&F 6 (TB) P.W. % P.W., M$
AMERICAN EXPLORER INCORP OIL GAS ------ --------
TURTLE BAYOU ---------- ---------- 10.00 199.806
LA, TERREBONNE GROSS WELLS 0.000 1.000 15.00 180.150
GROSS CUM. MB & MMF 52.374 3480.000 20.00 164.258
18 31 17 14 GROSS RES. MB & MMF 44.417 2961.127 25.00 151.195
SEQ: 56 GROSS ULT. MB & MMF 96.791 6441.127 30.00 140.301
INIT W.I 4.796 LIFE/YR 8.417 RATE-OF-RETURN, % 100.00
INIT N.I 3.146 OPC/W 5568 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.655 310.349 0.146 9.763 19.990 2.880 31.046 1.335 0.000 1.342 28.368
1997 9.555 637.032 0.301 20.040 19.990 2.880 63.726 3.205 0.000 2.755 57.766
1998 7.644 509.625 0.240 16.032 19.990 2.880 50.980 3.205 0.000 2.204 45.572
1999 6.116 407.700 0.192 12.826 19.990 2.880 40.784 3.205 0.000 1.763 35.816
2000 4.892 326.160 0.154 10.261 19.990 2.880 32.628 3.205 0.000 1.411 28.012
2001 3.914 260.928 0.123 8.209 19.990 2.880 26.102 3.205 0.000 1.129 21.769
2002 3.131 208.743 0.099 6.567 19.990 2.880 20.882 3.205 0.000 0.903 16.774
2003 2.505 166.994 0.079 5.253 19.990 2.880 16.705 3.205 0.000 0.722 12.778
2004 2.004 133.595 0.063 4.203 19.990 2.880 13.364 3.205 0.000 0.578 9.582
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 44.416 2961.126 1.397 93.154 19.990 2.880 296.217 26.975 0.000 12.807 256.437
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 44.416 2961.126 1.397 93.154 19.990 2.880 296.217 26.975 0.000 12.807 256.437
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 28.368 27.821
1997 86.134 53.051
1998 131.706 38.049
1999 167.522 27.186
2000 195.534 19.330
2001 217.303 13.657
2002 234.077 9.568
2003 246.855 6.627
2004 256.437 4.518
2005 256.437 0.000
SUB 256.437 199.807
REM 256.437 0.000
TOT 256.437 199.807
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CL&F 8 (TB) P.W. % P.W., M$
AMERICAN EXPLORER INCORP OIL GAS ------ --------
TURTLE BAYOU ---------- ---------- 10.00 787.231
LA, TERREBONNE GROSS WELLS 0.000 1.000 15.00 673.056
HOLLYWOOD GROSS CUM. MB & MMF 42.000 4500.000 20.00 590.548
GROSS RES. MB & MMF 62.528 15372.077 25.00 528.239
SEQ: 57 GROSS ULT. MB & MMF 104.528 19872.077 30.00 479.542
INIT W.I 4.500 LIFE/YR 28.083 RATE-OF-RETURN, % 100.00
INIT N.I 2.950 OPC/W 4845 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 7.068 968.579 0.209 28.573 19.990 2.880 86.458 1.090 0.000 3.378 81.990
1997 13.875 2085.965 0.409 61.536 19.990 2.880 185.406 2.616 0.000 7.176 175.613
1998 10.406 1788.125 0.307 52.750 19.990 2.880 158.056 2.616 0.000 6.042 149.397
1999 7.805 1532.810 0.230 45.218 19.990 2.880 134.830 2.616 0.000 5.097 127.117
2000 5.854 1313.951 0.173 38.762 19.990 2.880 115.085 2.616 0.000 4.308 108.161
2001 4.390 1126.341 0.130 33.227 19.990 2.880 98.283 2.616 0.000 3.646 92.020
2002 3.293 965.518 0.097 28.483 19.990 2.880 83.972 2.616 0.000 3.091 78.265
2003 2.470 827.658 0.073 24.416 19.990 2.880 71.774 2.616 0.000 2.624 66.534
2004 1.852 709.482 0.055 20.930 19.990 2.880 61.370 2.616 0.000 2.229 56.524
2005 1.389 608.180 0.041 17.941 19.990 2.880 52.490 2.616 0.000 1.897 47.977
SUB 58.402 11926.609 1.723 351.835 19.990 2.880 1047.724 24.634 0.000 39.488 983.598
REM 4.127 3445.469 0.122 101.641 19.990 2.880 295.163 48.832 0.000 10.469 235.856
TOT 62.529 15372.078 1.845 453.476 19.990 2.880 1342.887 73.466 0.000 49.957 1219.454
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 81.990 80.400
1997 257.603 161.187
1998 407.000 124.659
1999 534.117 96.425
2000 642.278 74.588
2001 734.298 57.688
2002 812.563 44.604
2003 879.097 34.472
2004 935.621 26.623
2005 983.598 20.544
SUB 983.598 721.190
REM 1219.454 66.040
TOT 1219.454 787.230
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CLARK RA SU P.W. % P.W., M$
SWIFT ENERGY CO OIL GAS ------ --------
CREOLE NORTH ---------- ---------- 10.00 3.023
LA, CAMERON GROSS WELLS 1.000 0.000 15.00 3.007
GROSS CUM. MB & MMF 8029.467 78713.464 20.00 2.992
29 14S 8W GROSS RES. MB & MMF 5.100 145.720 25.00 2.977
SEQ: 15 GROSS ULT. MB & MMF 8034.567 78859.183 30.00 2.963
INIT W.I 3.031 LIFE/YR 0.417 RATE-OF-RETURN, % 100.00
INIT N.I 2.363 OPC/W 58413 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 5.100 145.720 0.121 3.443 20.053 2.945 12.557 8.852 0.000 0.646 3.059
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 5.100 145.720 0.121 3.443 20.053 2.945 12.557 8.852 0.000 0.646 3.059
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 5.100 145.720 0.121 3.443 20.053 2.945 12.557 8.852 0.000 0.646 3.059
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.059 3.023
1997 3.059 0.000
1998 3.059 0.000
1999 3.059 0.000
2000 3.059 0.000
2001 3.059 0.000
2002 3.059 0.000
2003 3.059 0.000
2004 3.059 0.000
2005 3.059 0.000
SUB 3.059 3.023
REM 3.059 0.000
TOT 3.059 3.023
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
CLARK RA SU -PDNP P.W. % P.W., M$
SWIFT ENERGY CO OIL GAS ------ --------
CREOLE NORTH ---------- ---------- 10.00 313.897
LA, CAMERON GROSS WELLS 1.000 0.000 15.00 275.656
GROSS CUM. MB & MMF 0.000 0.000 20.00 245.357
29 14S 8W GROSS RES. MB & MMF 413.835 7375.459 25.00 220.874
SEQ: 479 GROSS ULT. MB & MMF 413.835 7375.459 30.00 200.750
INIT W.I 3.031 LIFE/YR 11.583 RATE-OF-RETURN, % 100.00
INIT N.I 2.363 OPC/W 58413 UNDISC NET/INVEST 283.85
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 1.515 0.000 -1.515
1997 65.335 1376.515 1.544 32.527 20.053 2.945 126.751 21.246 0.000 7.123 98.383
1998 57.495 1156.273 1.359 27.323 20.053 2.945 107.709 21.246 0.000 6.138 80.326
1999 50.595 971.269 1.196 22.951 20.053 2.945 91.566 21.246 0.000 5.292 65.028
2000 44.524 815.866 1.052 19.279 20.053 2.945 77.874 21.246 0.000 4.565 52.063
2001 39.181 685.327 0.926 16.194 20.053 2.945 66.258 21.246 0.000 3.940 41.072
2002 34.479 575.675 0.815 13.603 20.053 2.945 56.400 21.246 0.000 3.403 31.751
2003 30.342 483.567 0.717 11.427 20.053 2.945 48.029 21.246 0.000 2.940 23.843
2004 26.701 406.196 0.631 9.598 20.053 2.945 40.920 21.246 0.000 2.541 17.132
2005 23.497 341.205 0.555 8.063 20.053 2.945 34.879 21.246 0.000 2.198 11.435
SUB 372.149 6811.893 8.794 160.965 20.053 2.945 650.386 191.214 1.515 38.140 419.518
REM 41.686 563.567 0.985 13.317 20.053 2.945 58.971 46.033 0.000 3.801 9.138
TOT 413.835 7375.460 9.779 174.282 20.053 2.945 709.357 237.247 1.515 41.941 428.656
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 -1.515 -1.468
1997 96.868 90.328
1998 177.194 67.048
1999 242.222 49.348
2000 294.285 35.922
2001 335.357 25.765
2002 367.108 18.111
2003 390.951 12.367
2004 408.083 8.082
2005 419.518 4.908
SUB 419.518 310.411
REM 428.656 3.486
TOT 428.656 313.897
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CURET P.W. % P.W., M$
AMOCO PRODUCTION CO OIL GAS ------ --------
MOORE-SAMS ---------- ---------- 10.00 0.000
LA, POINTE COUPEE GROSS WELLS 0.000 1.000 15.00 0.000
GROSS CUM. MB & MMF 168.167 9254.558 20.00 0.000
98-5S-9E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 480 GROSS ULT. MB & MMF 168.167 9254.558 30.00 0.000
NO RESERVES. INIT W.I 0.219 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.154 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DEVILLE 1 P.W. % P.W., M$
AMOCO PRODUCTION CO OIL GAS ------ --------
MOORE-SAMS ---------- ---------- 10.00 0.000
LA, POINTE COUPEE GROSS WELLS 0.000 1.000 15.00 0.000
TUSC SUM J GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
41 5S 9E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 486 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES. INIT W.I 0.215 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.159 OPC/W UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAY UNION #37 - BP1 P.W. % P.W., M$
LATEX OIL GAS ------ --------
BAYOU CHOCTAW ---------- ---------- 10.00 68.950
LA, IBERVILLE GROSS WELLS 1.000 0.000 15.00 66.627
4900 GROSS CUM. MB & MMF 0.000 0.000 20.00 64.478
52-9S-11E GROSS RES. MB & MMF 9.897 9.897 25.00 62.485
SEQ: 268 GROSS ULT. MB & MMF 9.897 9.897 30.00 60.630
INIT W.I 100.000 LIFE/YR 1.500 RATE-OF-RETURN, % 100.00
INIT N.I 80.035 OPC/W 3000 UNDISC NET/INVEST 3.12
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.642 2.642 2.114 2.114 19.200 2.770 46.451 6.000 35.000 5.286 0.165
1997 7.027 7.027 5.624 5.624 19.200 2.770 123.564 36.000 0.000 14.061 73.504
1998 0.228 0.228 0.182 0.182 19.200 2.770 4.007 3.000 0.000 0.456 0.551
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 9.897 9.897 7.921 7.921 19.200 2.770 174.022 45.000 35.000 19.803 74.220
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 9.897 9.897 7.921 7.921 19.200 2.770 174.022 45.000 35.000 19.803 74.220
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.165 -0.100
1997 73.669 68.570
1998 74.220 0.480
1999 74.220 0.000
2000 74.220 0.000
2001 74.220 0.000
2002 74.220 0.000
2003 74.220 0.000
2004 74.220 0.000
2005 74.220 0.000
SUB 74.220 68.950
REM 74.220 0.000
TOT 74.220 68.950
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAY UNION #37 - BP2 P.W. % P.W., M$
LATEX OIL GAS ------ --------
BAYOU CHOCTAW ---------- ---------- 10.00 221.577
LA, IBERVILLE GROSS WELLS 1.000 0.000 15.00 201.452
4650 GROSS CUM. MB & MMF 0.000 0.000 20.00 183.966
52-9S-11E GROSS RES. MB & MMF 24.907 24.907 25.00 168.676
SEQ: 317 GROSS ULT. MB & MMF 24.907 24.907 30.00 155.230
INIT W.I 100.000 LIFE/YR 3.750 RATE-OF-RETURN, % 100.00
INIT N.I 80.035 OPC/W 3000 UNDISC NET/INVEST 8.78
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 17.296 17.296 13.843 13.843 19.200 2.770 304.135 33.000 35.000 34.608 201.527
1999 6.603 6.603 5.284 5.284 19.200 2.770 116.099 36.000 0.000 13.211 66.888
2000 1.008 1.008 0.807 0.807 19.200 2.770 17.729 12.000 0.000 2.017 3.711
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 24.907 24.907 19.935 19.935 19.200 2.770 437.963 81.000 35.000 49.836 272.126
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 24.907 24.907 19.935 19.935 19.200 2.770 437.963 81.000 35.000 49.836 272.126
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 201.527 167.588
1999 268.415 51.340
2000 272.126 2.648
2001 272.126 0.000
2002 272.126 0.000
2003 272.126 0.000
2004 272.126 0.000
2005 272.126 0.000
SUB 272.126 221.576
REM 272.126 0.000
TOT 272.126 221.576
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAY UNION #37 - BP3 P.W. % P.W., M$
LATEX OIL GAS ------ --------
BAYOU CHOCTAW ---------- ---------- 10.00 84.598
LA, IBERVILLE GROSS WELLS 1.000 0.000 15.00 69.524
4250 GROSS CUM. MB & MMF 0.000 0.000 20.00 57.628
52-9S-11E GROSS RES. MB & MMF 14.950 14.950 25.00 48.144
SEQ: 318 GROSS ULT. MB & MMF 14.950 14.950 30.00 40.513
INIT W.I 100.000 LIFE/YR 5.667 RATE-OF-RETURN, % 100.00
INIT N.I 80.035 OPC/W 3000 UNDISC NET/INVEST 4.68
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 8.655 8.655 6.927 6.927 19.200 2.770 152.195 24.000 35.000 17.318 75.876
2001 5.594 5.594 4.477 4.477 19.200 2.770 98.364 36.000 0.000 11.193 51.171
2002 0.700 0.700 0.560 0.560 19.200 2.770 12.311 9.000 0.000 1.401 1.911
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 14.949 14.949 11.965 11.965 19.200 2.770 262.870 69.000 35.000 29.912 128.958
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 14.949 14.949 11.965 11.965 19.200 2.770 262.870 69.000 35.000 29.912 128.958
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 75.876 50.989
2001 127.047 32.479
2002 128.958 1.130
2003 128.958 0.000
2004 128.958 0.000
2005 128.958 0.000
SUB 128.958 84.598
REM 128.958 0.000
TOT 128.958 84.598
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAY UNION #37 - BP4 P.W. % P.W., M$
LATEX OIL GAS ------ --------
BAYOU CHOCTAW ---------- ---------- 10.00 70.473
LA, IBERVILLE GROSS WELLS 1.000 0.000 15.00 53.186
4200 GROSS CUM. MB & MMF 0.000 0.000 20.00 40.632
52-9S-11E GROSS RES. MB & MMF 14.950 14.950 25.00 31.390
SEQ: 319 GROSS ULT. MB & MMF 14.950 14.950 30.00 24.502
INIT W.I 100.000 LIFE/YR 7.583 RATE-OF-RETURN, % 100.00
INIT N.I 80.035 OPC/W 3000 UNDISC NET/INVEST 4.68
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 9.374 9.374 7.502 7.502 19.200 2.770 164.825 27.000 35.000 18.756 84.069
2003 5.130 5.130 4.106 4.106 19.200 2.770 90.198 36.000 0.000 10.264 43.935
2004 0.446 0.446 0.357 0.357 19.200 2.770 7.847 6.000 0.000 0.893 0.954
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 14.950 14.950 11.965 11.965 19.200 2.770 262.870 69.000 35.000 29.913 128.958
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 14.950 14.950 11.965 11.965 19.200 2.770 262.870 69.000 35.000 29.913 128.958
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 84.069 46.938
2003 128.004 23.067
2004 128.958 0.468
2005 128.958 0.000
SUB 128.958 70.473
REM 128.958 0.000
TOT 128.958 70.473
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAY UNION #37 - BP5 P.W. % P.W., M$
LATEX OIL GAS ------ --------
BAYOU CHOCTAW ---------- ---------- 10.00 77.319
LA, IBERVILLE GROSS WELLS 1.000 0.000 15.00 53.585
4000 GROSS CUM. MB & MMF 0.000 0.000 20.00 37.732
52-9S-11E GROSS RES. MB & MMF 17.962 17.962 25.00 26.959
SEQ: 320 GROSS ULT. MB & MMF 17.962 17.962 30.00 19.522
INIT W.I 100.000 LIFE/YR 9.667 RATE-OF-RETURN, % 100.00
INIT N.I 80.035 OPC/W 3000 UNDISC NET/INVEST 5.85
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 11.732 11.732 9.390 9.390 19.200 2.770 206.299 30.000 35.000 23.475 117.824
2005 5.534 5.534 4.429 4.429 19.200 2.770 97.302 36.000 0.000 11.072 50.230
SUB 17.266 17.266 13.819 13.819 19.200 2.770 303.601 66.000 35.000 34.547 168.054
REM 0.696 0.696 0.557 0.557 19.200 2.770 12.236 9.000 0.000 1.392 1.843
TOT 17.962 17.962 14.376 14.376 19.200 2.770 315.837 75.000 35.000 35.939 169.897
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 117.824 54.799
2005 168.054 21.776
SUB 168.054 76.575
REM 169.897 0.744
TOT 169.897 77.319
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
GAY UNION FIELD TOTAL - PDNP P.W. % P.W., M$
LATEX OIL GAS ------ --------
BAYOU CHOCTAW ---------- ---------- 10.00 542.145
LA, IBERVILLE GROSS WELLS 0.000 7.000 15.00 507.598
GROSS CUM. MB & MMF 27.927 367.331 20.00 477.275
52-9S-11E GROSS RES. MB & MMF 35.810 364.453 25.00 450.470
SEQ: 227 GROSS ULT. MB & MMF 63.737 731.784 30.00 426.622
INIT W.I 100.000 LIFE/YR 4.500 RATE-OF-RETURN, % 100.00
INIT N.I 80.035 OPC/W 12515 UNDISC NET/INVEST 93.32
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.090 13.794 0.872 11.040 19.200 2.770 47.328 12.515 6.800 3.197 24.816
1997 11.613 137.167 9.294 109.782 19.200 2.770 482.548 150.180 0.000 33.285 299.084
1998 9.290 96.017 7.436 76.847 19.200 2.770 355.629 150.180 0.000 25.530 179.919
1999 7.432 67.212 5.948 53.793 19.200 2.770 263.217 150.180 0.000 19.656 93.381
2000 5.946 47.048 4.759 37.655 19.200 2.770 195.673 150.180 0.000 15.187 30.306
2001 0.438 3.215 0.351 2.573 19.200 2.770 13.861 12.515 0.000 1.099 0.247
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 35.809 364.453 28.660 291.690 19.200 2.770 1358.256 625.750 6.800 97.954 627.753
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 35.809 364.453 28.660 291.690 19.200 2.770 1358.256 625.750 6.800 97.954 627.753
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 24.816 23.866
1997 323.900 275.172
1998 503.819 150.599
1999 597.200 71.183
2000 627.506 21.164
2001 627.753 0.161
2002 627.753 0.000
2003 627.753 0.000
2004 627.753 0.000
2005 627.753 0.000
SUB 627.753 542.145
REM 627.753 0.000
TOT 627.753 542.145
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HILL UN 1 1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
OBERLIN ---------- ---------- 10.00 81.159
LA, ALLEN GROSS WELLS 1.000 0.000 15.00 65.172
YEGUA GROSS CUM. MB & MMF 100.669 11853.768 20.00 54.619
35 5S 4W GROSS RES. MB & MMF 22.022 917.596 25.00 47.194
SEQ: 239 GROSS ULT. MB & MMF 122.691 12771.364 30.00 41.706
INIT W.I 12.429 LIFE/YR 29.917 RATE-OF-RETURN, % 100.00
INIT N.I 9.530 OPC/W 2546 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.594 24.735 0.057 2.357 17.700 2.810 7.625 1.582 0.000 0.361 5.682
1997 1.374 57.250 0.131 5.456 17.700 2.810 17.649 3.797 0.000 0.835 13.016
1998 1.305 54.388 0.124 5.183 17.700 2.810 16.767 3.797 0.000 0.794 12.176
1999 1.240 51.669 0.118 4.924 17.700 2.810 15.928 3.797 0.000 0.754 11.377
2000 1.178 49.085 0.112 4.678 17.700 2.810 15.132 3.797 0.000 0.716 10.618
2001 1.119 46.631 0.107 4.444 17.700 2.810 14.375 3.797 0.000 0.680 9.898
2002 1.063 44.299 0.101 4.222 17.700 2.810 13.656 3.797 0.000 0.646 9.213
2003 1.010 42.084 0.096 4.011 17.700 2.810 12.974 3.797 0.000 0.614 8.562
2004 0.960 39.980 0.091 3.810 17.700 2.810 12.325 3.797 0.000 0.583 7.944
2005 0.912 37.981 0.087 3.620 17.700 2.810 11.709 3.797 0.000 0.554 7.357
SUB 10.755 448.102 1.025 42.704 17.700 2.810 138.140 35.755 0.000 6.537 95.843
REM 11.269 469.494 1.074 44.743 17.700 2.810 144.734 77.839 0.000 6.849 60.036
TOT 22.024 917.596 2.099 87.447 17.700 2.810 282.874 113.594 0.000 13.386 155.879
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 5.682 5.571
1997 18.698 11.938
1998 30.874 10.152
1999 42.251 8.624
2000 52.869 7.317
2001 62.767 6.200
2002 71.980 5.247
2003 80.542 4.433
2004 88.486 3.739
2005 95.843 3.148
SUB 95.843 66.369
REM 155.879 14.787
TOT 155.879 81.156
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HURST P.W. % P.W., M$
AMOCO OIL GAS ------ --------
MOORE SAMS ---------- ---------- 10.00 12.447
LA, POINTE COUPEE GROSS WELLS 1.000 0.000 15.00 11.803
TUSCALOOSA GROSS CUM. MB & MMF 124.089 9151.216 20.00 11.235
55-4S-9E GROSS RES. MB & MMF 21.414 691.848 25.00 10.731
SEQ: 482 GROSS ULT. MB & MMF 145.503 9843.064 30.00 10.281
INIT W.I 2.477 LIFE/YR 4.250 RATE-OF-RETURN, % 100.00
INIT N.I 1.705 OPC/W 16577 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.103 100.267 0.053 1.710 19.740 2.530 5.370 2.053 0.000 0.302 3.015
1997 6.370 205.810 0.109 3.509 19.740 2.530 11.022 4.927 0.000 0.619 5.476
1998 5.096 164.648 0.087 2.807 19.740 2.530 8.818 4.927 0.000 0.495 3.395
1999 4.077 131.719 0.070 2.246 19.740 2.530 7.054 4.927 0.000 0.396 1.731
2000 2.767 89.404 0.047 1.524 19.740 2.530 4.788 4.106 0.000 0.269 0.413
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 21.413 691.848 0.365 11.796 19.740 2.530 37.052 20.940 0.000 2.081 14.030
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 21.413 691.848 0.365 11.796 19.740 2.530 37.052 20.940 0.000 2.081 14.030
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.015 2.958
1997 8.491 5.037
1998 11.886 2.842
1999 13.617 1.320
2000 14.030 0.291
2001 14.030 0.000
2002 14.030 0.000
2003 14.030 0.000
2004 14.030 0.000
2005 14.030 0.000
SUB 14.030 12.448
REM 14.030 0.000
TOT 14.030 12.448
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
LONGENBAUGH P.W. % P.W., M$
LATEX OIL GAS ------ --------
BON AIR ---------- ---------- 10.00 571.803
LA, CALCASIEU GROSS WELLS 1.000 0.000 15.00 478.490
MARGINULIAN TEXANA A GROSS CUM. MB & MMF 423.027 406.472 20.00 410.323
17-10S-6W GROSS RES. MB & MMF 118.637 95.716 25.00 358.769
SEQ: 217 GROSS ULT. MB & MMF 541.664 502.188 30.00 318.627
ASSUMES REPAIR TO SWD WELL. INIT W.I 96.882 LIFE/YR 17.667 RATE-OF-RETURN, % 100.00
INIT N.I 74.896 OPC/W 4260 UNDISC NET/INVEST 52.86
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.988 1.983 1.489 1.485 20.590 2.660 34.606 8.254 17.439 3.981 4.932
1997 11.436 11.191 8.565 8.382 20.590 2.660 198.647 49.526 0.000 22.882 126.239
1998 10.635 10.072 7.965 7.544 20.590 2.660 184.073 49.526 0.000 21.255 113.292
1999 9.891 9.065 7.408 6.789 20.590 2.660 170.586 49.526 0.000 19.745 101.315
2000 9.198 8.158 6.889 6.110 20.590 2.660 158.103 49.526 0.000 18.342 90.235
2001 8.555 7.343 6.407 5.499 20.590 2.660 146.548 49.526 0.000 17.040 79.982
2002 7.956 6.608 5.959 4.949 20.590 2.660 135.851 49.526 0.000 15.831 70.494
2003 7.399 5.947 5.541 4.454 20.590 2.660 125.947 49.526 0.000 14.708 61.713
2004 6.881 5.353 5.154 4.009 20.590 2.660 116.775 49.526 0.000 13.665 53.584
2005 6.399 4.817 4.793 3.608 20.590 2.660 108.281 49.526 0.000 12.696 46.058
SUB 80.338 70.537 60.170 52.830 20.590 2.660 1379.417 453.988 17.439 160.145 747.844
REM 38.298 25.179 28.684 18.858 20.590 2.660 640.774 408.590 0.000 75.713 156.471
TOT 118.636 95.716 88.854 71.687 20.590 2.660 2020.191 862.578 17.439 235.858 904.315
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.932 4.644
1997 131.171 115.819
1998 244.463 94.494
1999 345.778 76.824
2000 436.013 62.204
2001 515.995 50.126
2002 586.489 40.166
2003 648.202 31.967
2004 701.786 25.235
2005 747.844 19.721
SUB 747.844 521.200
REM 904.315 50.603
TOT 904.315 571.803
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MANY, SUE L. P.W. % P.W., M$
WAGGONER W T EST OIL GAS ------ --------
DARROW ---------- ---------- 10.00 157.747
LA, ASCENSION GROSS WELLS 1.000 0.000 15.00 146.349
HET 1 RC GROSS CUM. MB & MMF 184.459 41.644 20.00 136.650
24 10S 2E GROSS RES. MB & MMF 53.947 8.092 25.00 128.312
SEQ: 11 GROSS ULT. MB & MMF 238.406 49.736 30.00 121.079
INIT W.I 68.126 LIFE/YR 6.333 RATE-OF-RETURN, % 100.00
INIT N.I 45.480 OPC/W 4893 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 5.495 0.824 2.499 0.375 20.100 2.660 51.234 16.667 0.000 6.317 28.250
1997 11.766 1.765 5.351 0.803 20.100 2.660 109.690 40.001 0.000 13.525 56.165
1998 10.001 1.500 4.548 0.682 20.100 2.660 93.237 40.001 0.000 11.496 41.740
1999 8.501 1.275 3.866 0.580 20.100 2.660 79.251 40.001 0.000 9.772 29.479
2000 7.226 1.084 3.286 0.493 20.100 2.660 67.363 40.001 0.000 8.306 19.057
2001 6.142 0.921 2.793 0.419 20.100 2.660 57.259 40.001 0.000 7.060 10.198
2002 4.817 0.723 2.191 0.329 20.100 2.660 44.909 36.667 0.000 5.537 2.705
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 53.948 8.092 24.535 3.680 20.100 2.660 502.943 253.339 0.000 62.013 187.594
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 53.948 8.092 24.535 3.680 20.100 2.660 502.943 253.339 0.000 62.013 187.594
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 28.250 27.705
1997 84.415 51.598
1998 126.155 34.871
1999 155.634 22.400
2000 174.691 13.177
2001 184.889 6.425
2002 187.594 1.570
2003 187.594 0.000
2004 187.594 0.000
2005 187.594 0.000
SUB 187.594 157.746
REM 187.594 0.000
TOT 187.594 157.746
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MATILDA GRAY STREAM J P.W. % P.W., M$
AUSTER OIL & GAS INC OIL GAS ------ --------
VINTON ---------- ---------- 10.00 99.789
LA, CALCASIEU ROSS WELLS 1.000 0.000 15.00 90.445
ROSS CUM. MB & MMF 2923.825 0.000 20.00 82.777
4 11S 12W ROSS RES. MB & MMF 180.201 0.000 25.00 76.394
SEQ: 13 ROSS ULT. MB & MMF 3104.026 0.000 30.00 71.015
NIT W.I 20.000 LIFE/YR 8.333 RATE-OF-RETURN, % 100.00
NIT N.I 13.680 OPC/W 14260 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 12.285 0.000 1.681 0.000 19.010 0.000 31.949 14.206 0.000 3.994 13.749
1997 27.800 0.000 3.803 0.000 19.010 0.000 72.297 34.094 0.000 9.037 29.166
1998 25.576 0.000 3.499 0.000 19.010 0.000 66.513 34.094 0.000 8.314 24.105
1999 23.530 0.000 3.219 0.000 19.010 0.000 61.192 34.094 0.000 7.649 19.449
2000 21.648 0.000 2.961 0.000 19.010 0.000 56.297 34.094 0.000 7.037 15.165
2001 19.916 0.000 2.725 0.000 19.010 0.000 51.793 34.094 0.000 6.474 11.225
2002 18.323 0.000 2.507 0.000 19.010 0.000 47.650 34.094 0.000 5.956 7.599
2003 16.857 0.000 2.306 0.000 19.010 0.000 43.838 34.094 0.000 5.480 4.264
2004 14.265 0.000 1.951 0.000 19.010 0.000 37.097 31.253 0.000 4.637 1.206
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 180.200 0.000 24.652 0.000 19.010 0.000 468.626 284.117 0.000 58.578 125.928
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 180.200 0.000 24.652 0.000 19.010 0.000 468.626 284.117 0.000 58.578 125.928
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 13.749 13.483
1997 42.915 26.774
1998 67.020 20.120
1999 86.469 14.761
2000 101.634 10.467
2001 112.859 7.046
2002 120.458 4.341
2003 124.722 2.219
2004 125.928 0.578
2005 125.928 0.000
SUB 125.928 99.789
REM 125.928 0.000
TOT 125.928 99.789
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MATILDA GRAY STREAM M P.W. % P.W., M$
AUSTER OIL & GAS INC OIL GAS ------ --------
VINTON ---------- ---------- 10.00 179.308
LA, CALCASIEU ROSS WELLS 1.000 0.000 15.00 157.766
ROSS CUM. MB & MMF 209.769 0.000 20.00 141.015
5 11S 12W ROSS RES. MB & MMF 208.445 0.000 25.00 127.692
SEQ: 14 ROSS ULT. MB & MMF 418.214 0.000 30.00 116.886
NIT W.I 20.000 LIFE/YR 12.500 RATE-OF-RETURN, % 100.00
NIT N.I 13.680 OPC/W 7597 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 12.230 0.000 1.673 0.000 19.010 0.000 31.804 7.597 0.000 3.975 20.231
1997 27.251 0.000 3.728 0.000 19.010 0.000 70.867 18.233 0.000 8.858 43.776
1998 24.526 0.000 3.355 0.000 19.010 0.000 63.781 18.233 0.000 7.973 37.575
1999 22.073 0.000 3.020 0.000 19.010 0.000 57.403 18.233 0.000 7.175 31.994
2000 19.866 0.000 2.718 0.000 19.010 0.000 51.662 18.233 0.000 6.458 26.972
2001 17.879 0.000 2.446 0.000 19.010 0.000 46.496 18.233 0.000 5.812 22.451
2002 16.091 0.000 2.201 0.000 19.010 0.000 41.846 18.233 0.000 5.231 18.383
2003 14.482 0.000 1.981 0.000 19.010 0.000 37.662 18.233 0.000 4.708 14.721
2004 13.034 0.000 1.783 0.000 19.010 0.000 33.896 18.233 0.000 4.237 11.426
2005 11.731 0.000 1.605 0.000 19.010 0.000 30.506 18.233 0.000 3.813 8.460
SUB 179.163 0.000 24.509 0.000 19.010 0.000 465.923 171.694 0.000 58.240 235.989
REM 29.284 0.000 4.006 0.000 19.010 0.000 76.154 56.218 0.000 9.520 10.417
TOT 208.447 0.000 28.515 0.000 19.010 0.000 542.077 227.912 0.000 67.760 246.406
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 20.231 19.839
1997 64.007 40.176
1998 101.582 31.352
1999 133.576 24.270
2000 160.548 18.602
2001 182.999 14.078
2002 201.382 10.481
2003 216.103 7.632
2004 227.529 5.386
2005 235.989 3.627
SUB 235.989 175.443
REM 246.406 3.866
TOT 246.406 179.309
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MCCRANIE P.W. % P.W., M$
PHILLIPS PETROLEUM CO OIL GAS ------ --------
IVAN ---------- ---------- 10.00 301.300
LA, BOSSIER GROSS WELLS 0.000 1.000 15.00 253.467
DAV SUA GROSS CUM. MB & MMF 99.209 5687.010 20.00 219.197
29 21N 11W GROSS RES. MB & MMF 31.726 1057.544 25.00 193.629
SEQ: 12 GROSS ULT. MB & MMF 130.935 6744.554 30.00 173.908
INIT W.I 27.963 LIFE/YR 20.333 RATE-OF-RETURN, % 100.00
INIT N.I 22.927 OPC/W 4332 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.327 44.227 0.304 10.140 18.710 2.810 34.185 6.057 0.000 1.725 26.403
1997 3.002 100.082 0.688 22.946 18.710 2.810 77.357 14.536 0.000 3.905 58.916
1998 2.762 92.075 0.633 21.110 18.710 2.810 71.168 14.536 0.000 3.592 53.040
1999 2.541 84.709 0.583 19.421 18.710 2.810 65.475 14.536 0.000 3.305 47.634
2000 2.338 77.933 0.536 17.868 18.710 2.810 60.237 14.536 0.000 3.040 42.660
2001 2.151 71.698 0.493 16.438 18.710 2.810 55.418 14.536 0.000 2.797 38.085
2002 1.979 65.962 0.454 15.123 18.710 2.810 50.985 14.536 0.000 2.573 33.875
2003 1.821 60.685 0.417 13.913 18.710 2.810 46.906 14.536 0.000 2.368 30.002
2004 1.675 55.830 0.384 12.800 18.710 2.810 43.153 14.536 0.000 2.178 26.439
2005 1.541 51.364 0.353 11.776 18.710 2.810 39.701 14.536 0.000 2.004 23.161
SUB 21.137 704.565 4.846 161.536 18.710 2.810 544.585 136.881 0.000 27.487 380.215
REM 10.590 352.979 2.428 80.927 18.710 2.810 272.831 158.685 0.000 13.771 100.373
TOT 31.727 1057.544 7.274 242.463 18.710 2.810 817.416 295.566 0.000 41.258 480.588
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 26.403 25.889
1997 85.319 54.052
1998 138.359 44.238
1999 185.993 36.118
2000 228.653 29.407
2001 266.738 23.867
2002 300.613 19.299
2003 330.615 15.540
2004 357.054 12.450
2005 380.215 9.915
SUB 380.215 270.775
REM 480.588 30.526
TOT 480.588 301.301
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MILLER 8 P.W. % P.W., M$
PLAINS RESOURCES INC OIL GAS ------ --------
LAKE ARTHUR ---------- ---------- 10.00 15.221
LA, JEFFERSON DAVIS GROSS WELLS 1.000 0.000 15.00 14.052
CIB H RC GROSS CUM. MB & MMF 109.034 189.053 20.00 13.072
19 10S 3W GROSS RES. MB & MMF 30.332 78.864 25.00 12.239
SEQ: 478 GROSS ULT. MB & MMF 139.366 267.917 30.00 11.524
INIT W.I 0.000 LIFE/YR 6.500 RATE-OF-RETURN, % 100.00
INIT N.I 2.386 OPC/W 1500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.646 12.080 0.111 0.288 20.890 2.830 3.131 0.000 0.000 0.318 2.813
1997 8.699 22.618 0.208 0.540 20.890 2.830 5.862 0.000 0.000 0.596 5.266
1998 6.090 15.833 0.145 0.378 20.890 2.830 4.104 0.000 0.000 0.417 3.686
1999 4.263 11.083 0.102 0.264 20.890 2.830 2.872 0.000 0.000 0.292 2.581
2000 2.984 7.758 0.071 0.185 20.890 2.830 2.011 0.000 0.000 0.204 1.806
2001 2.089 5.431 0.050 0.130 20.890 2.830 1.408 0.000 0.000 0.143 1.264
2002 1.462 3.801 0.035 0.091 20.890 2.830 0.985 0.000 0.000 0.100 0.885
2003 0.100 0.260 0.002 0.006 20.893 2.830 0.067 0.000 0.000 0.007 0.060
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 30.333 78.864 0.724 1.881 20.890 2.830 20.440 0.000 0.000 2.077 18.361
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 30.333 78.864 0.724 1.881 20.890 2.830 20.440 0.000 0.000 2.077 18.361
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.813 2.759
1997 8.079 4.841
1998 11.765 3.081
1999 14.346 1.960
2000 16.152 1.248
2001 17.416 0.794
2002 18.301 0.505
2003 18.361 0.033
2004 18.361 0.000
2005 18.361 0.000
SUB 18.361 15.221
REM 18.361 0.000
TOT 18.361 15.221
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MIX P.W. % P.W., M$
AMOCO OIL GAS ------ --------
MOORE SAMS ---------- ---------- 10.00 135.406
LA, POINTE COUPEE GROSS WELLS 0.000 1.000 15.00 115.116
TUSCALOOSA GROSS CUM. MB & MMF 722.605 23863.130 20.00 100.275
52-4S-10E GROSS RES. MB & MMF 234.378 8370.649 25.00 89.033
SEQ: 483 GROSS ULT. MB & MMF 956.983 32233.779 30.00 80.263
INIT W.I 2.088 LIFE/YR 17.917 RATE-OF-RETURN, % 100.00
INIT N.I 1.503 OPC/W 35405 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 10.320 368.561 0.155 5.540 19.740 2.530 17.077 3.695 0.000 0.937 12.445
1997 23.352 834.015 0.351 12.536 19.740 2.530 38.644 8.869 0.000 2.120 27.655
1998 21.484 767.294 0.323 11.533 19.740 2.530 35.552 8.869 0.000 1.950 24.733
1999 19.765 705.910 0.297 10.610 19.740 2.530 32.708 8.869 0.000 1.794 22.045
2000 18.184 649.437 0.273 9.761 19.740 2.530 30.091 8.869 0.000 1.651 19.572
2001 16.730 597.482 0.251 8.980 19.740 2.530 27.684 8.869 0.000 1.518 17.297
2002 15.391 549.684 0.231 8.262 19.740 2.530 25.469 8.869 0.000 1.397 15.203
2003 14.160 505.709 0.213 7.601 19.740 2.530 23.432 8.869 0.000 1.285 13.278
2004 13.027 465.252 0.196 6.993 19.740 2.530 21.557 8.869 0.000 1.182 11.506
2005 11.985 428.032 0.180 6.433 19.740 2.530 19.833 8.869 0.000 1.088 9.876
SUB 164.398 5871.376 2.471 88.249 19.740 2.530 272.047 83.516 0.000 14.922 173.610
REM 69.980 2499.273 1.052 37.565 19.740 2.530 115.802 75.386 0.000 6.352 34.064
TOT 234.378 8370.649 3.523 125.814 19.740 2.530 387.849 158.902 0.000 21.274 207.674
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 12.445 12.203
1997 40.100 25.373
1998 64.833 20.630
1999 86.878 16.716
2000 106.450 13.492
2001 123.747 10.840
2002 138.950 8.663
2003 152.228 6.878
2004 163.734 5.419
2005 173.610 4.229
SUB 173.610 124.443
REM 207.674 10.964
TOT 207.674 135.407
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PERKINS FIELD TOTAL P.W. % P.W., M$
LATEX OIL GAS ------ --------
PERKINS ---------- ---------- 10.00 1767.888
LA, CALCASIEU GROSS WELLS 7.000 0.000 15.00 1511.570
GROSS CUM. MB & MMF 10581.758 1742.387 20.00 1322.934
GROSS RES. MB & MMF 290.847 0.000 25.00 1179.233
SEQ: 229 GROSS ULT. MB & MMF 10872.605 1742.387 30.00 1066.562
NO GAS SALES. INIT W.I 100.000 LIFE/YR 18.083 RATE-OF-RETURN, % 100.00
INIT N.I 81.250 OPC/W 6110 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 14.676 0.000 11.924 0.000 19.330 0.000 230.488 30.550 0.000 28.811 171.127
1997 32.701 0.000 26.569 0.000 19.330 0.000 513.587 73.320 0.000 64.198 376.069
1998 29.431 0.000 23.912 0.000 19.330 0.000 462.228 73.320 0.000 57.779 331.130
1999 26.488 0.000 21.521 0.000 19.330 0.000 416.006 73.320 0.000 52.001 290.685
2000 23.839 0.000 19.369 0.000 19.330 0.000 374.405 73.320 0.000 46.801 254.284
2001 21.455 0.000 17.432 0.000 19.330 0.000 336.965 73.320 0.000 42.121 221.524
2002 19.310 0.000 15.689 0.000 19.330 0.000 303.268 73.320 0.000 37.909 192.040
2003 17.379 0.000 14.120 0.000 19.330 0.000 272.941 73.320 0.000 34.118 165.504
2004 15.641 0.000 12.708 0.000 19.330 0.000 245.647 73.320 0.000 30.706 141.621
2005 14.077 0.000 11.437 0.000 19.330 0.000 221.082 73.320 0.000 27.635 120.127
SUB 214.997 0.000 174.683 0.000 19.330 0.000 3376.617 690.430 0.000 422.079 2264.111
REM 75.854 0.000 61.631 0.000 19.330 0.000 1191.321 635.440 0.000 148.916 406.967
TOT 290.851 0.000 236.313 0.000 19.330 0.000 4567.938 1325.870 0.000 570.995 2671.078
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 171.127 167.801
1997 547.196 345.079
1998 878.326 276.227
1999 1169.011 220.449
2000 1423.295 175.318
2001 1644.819 138.851
2002 1836.859 109.432
2003 2002.363 85.742
2004 2143.984 66.703
2005 2264.111 51.440
SUB 2264.111 1637.042
REM 2671.078 130.846
TOT 2671.078 1767.888
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PLACID 1 P.W. % P.W., M$
SMITH OPER & MGMT CO OIL GAS ------ --------
CARTERVILLE NORTH ---------- ---------- 10.00 0.202
LA, BOSSIER GROSS WELLS 0.000 1.000 15.00 0.200
HAYNESVILLE GROSS CUM. MB & MMF 12.805 134.138 20.00 0.199
3 23N 12W GROSS RES. MB & MMF 0.447 5.588 25.00 0.198
SEQ: 481 GROSS ULT. MB & MMF 13.252 139.726 30.00 0.196
INIT W.I 17.736 LIFE/YR 0.500 RATE-OF-RETURN, % 100.00
INIT N.I 11.633 OPC/W 2215 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.377 4.712 0.044 0.548 19.740 2.660 2.324 1.964 0.000 0.163 0.196
1997 0.070 0.876 0.008 0.102 19.740 2.660 0.432 0.393 0.000 0.030 0.009
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.447 5.588 0.052 0.650 19.740 2.660 2.756 2.357 0.000 0.193 0.205
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.447 5.588 0.052 0.650 19.740 2.660 2.756 2.357 0.000 0.193 0.205
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.196 0.193
1997 0.205 0.009
1998 0.205 0.000
1999 0.205 0.000
2000 0.205 0.000
2001 0.205 0.000
2002 0.205 0.000
2003 0.205 0.000
2004 0.205 0.000
2005 0.205 0.000
SUB 0.205 0.202
REM 0.205 0.000
TOT 0.205 0.202
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
PLACID 1 - BP P.W. % P.W., M$
SMITH OP OIL GAS ------ --------
CARTERVILLE N ---------- ---------- 10.00 350.340
LA, BOSSIER GROSS WELLS 1.000 0.000 15.00 296.045
TUCKER (C.V.) GROSS CUM. MB & MMF 0.000 0.000 20.00 257.474
GROSS RES. MB & MMF 149.925 1499.252 25.00 228.492
SEQ: 267 GROSS ULT. MB & MMF 149.925 1499.252 30.00 205.802
INIT W.I 17.736 LIFE/YR 26.083 RATE-OF-RETURN, % 100.00
INIT N.I 11.633 OPC/W 2715 UNDISC NET/INVEST 22.53
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 27.327 273.268 3.179 31.789 19.740 2.660 147.312 5.778 26.604 11.023 103.906
1998 17.750 177.504 2.065 20.649 19.740 2.660 95.688 5.778 0.000 7.160 82.749
1999 13.145 131.453 1.529 15.292 19.740 2.660 70.863 5.778 0.000 5.302 59.782
2000 10.432 104.325 1.214 12.136 19.740 2.660 56.239 5.778 0.000 4.208 46.252
2001 8.644 86.437 1.006 10.055 19.740 2.660 46.596 5.778 0.000 3.487 37.331
2002 7.376 73.758 0.858 8.580 19.740 2.660 39.761 5.778 0.000 2.975 31.007
2003 6.430 64.302 0.748 7.480 19.740 2.660 34.663 5.778 0.000 2.594 26.291
2004 5.698 56.981 0.663 6.629 19.740 2.660 30.717 5.778 0.000 2.298 22.640
2005 5.115 51.146 0.595 5.950 19.740 2.660 27.571 5.778 0.000 2.063 19.730
SUB 101.917 1019.174 11.856 118.560 19.740 2.660 549.410 52.002 26.604 41.110 429.688
REM 48.008 480.078 5.585 55.847 19.740 2.660 258.796 96.300 0.000 19.366 143.126
TOT 149.925 1499.252 17.441 174.408 19.740 2.660 808.206 148.302 26.604 60.476 572.814
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 103.906 94.588
1998 186.655 69.161
1999 246.437 45.391
2000 292.689 31.913
2001 330.020 23.410
2002 361.027 17.673
2003 387.318 13.621
2004 409.958 10.662
2005 429.688 8.446
SUB 429.688 314.865
REM 572.814 35.476
TOT 572.814 350.341
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SALE, T.S. JR. 1 P.W. % P.W., M$
PINNACLE OIL GAS ------ --------
OAKS ---------- ---------- 10.00 50.213
LA, CLAIBORNE GROSS WELLS 1.000 0.000 15.00 38.959
PETTET GROSS CUM. MB & MMF 81.027 0.000 20.00 31.994
8-23N-7W GROSS RES. MB & MMF 119.480 0.000 25.00 27.284
SEQ: 484 GROSS ULT. MB & MMF 200.507 0.000 30.00 23.893
INIT W.I 12.500 LIFE/YR 43.333 RATE-OF-RETURN, % 100.00
INIT N.I 8.784 OPC/W 1025 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.429 0.000 0.213 0.000 19.960 0.000 4.259 0.641 0.000 0.532 3.086
1997 5.664 0.000 0.498 0.000 19.960 0.000 9.932 1.538 0.000 1.241 7.153
1998 5.438 0.000 0.478 0.000 19.960 0.000 9.535 1.538 0.000 1.192 6.805
1999 5.220 0.000 0.459 0.000 19.960 0.000 9.153 1.538 0.000 1.144 6.471
2000 5.012 0.000 0.440 0.000 19.960 0.000 8.787 1.538 0.000 1.098 6.151
2001 4.811 0.000 0.423 0.000 19.960 0.000 8.436 1.538 0.000 1.054 5.844
2002 4.619 0.000 0.406 0.000 19.960 0.000 8.098 1.538 0.000 1.012 5.548
2003 4.434 0.000 0.389 0.000 19.960 0.000 7.774 1.538 0.000 0.972 5.265
2004 4.257 0.000 0.374 0.000 19.960 0.000 7.463 1.538 0.000 0.933 4.993
2005 4.086 0.000 0.359 0.000 19.960 0.000 7.165 1.538 0.000 0.896 4.732
SUB 45.970 0.000 4.038 0.000 19.960 0.000 80.602 14.483 0.000 10.074 56.048
REM 73.513 0.000 6.457 0.000 19.960 0.000 128.892 52.161 0.000 16.111 60.629
TOT 119.483 0.000 10.496 0.000 19.960 0.000 209.494 66.644 0.000 26.185 116.677
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.086 3.026
1997 10.239 6.559
1998 17.044 5.673
1999 23.515 4.905
2000 29.666 4.238
2001 35.510 3.660
2002 41.058 3.159
2003 46.323 2.725
2004 51.316 2.350
2005 56.048 2.024
SUB 56.048 38.319
REM 116.677 11.893
TOT 116.677 50.212
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SHRINERS HOSPITAL A-1 P.W. % P.W., M$
ST MARY LAND & EXPL CO OIL GAS ------ --------
LISBON ---------- ---------- 10.00 112.950
LA, CLAIBORNE GROSS WELLS 1.000 0.000 15.00 96.125
SMK A RA SUB GROSS CUM. MB & MMF 548.432 13163.274 20.00 83.825
23 21N 4W GROSS RES. MB & MMF 83.869 2306.401 25.00 74.507
SEQ: 17 GROSS ULT. MB & MMF 632.301 15469.675 30.00 67.233
INIT W.I 4.450 LIFE/YR 18.417 RATE-OF-RETURN, % 100.00
INIT N.I 3.744 OPC/W 10395 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.922 107.867 0.147 4.039 19.740 2.660 13.641 2.313 0.000 0.766 10.562
1997 8.808 242.225 0.330 9.069 19.740 2.660 30.633 5.551 0.000 1.721 23.362
1998 8.015 220.425 0.300 8.253 19.740 2.660 27.876 5.551 0.000 1.566 20.759
1999 7.294 200.587 0.273 7.510 19.740 2.660 25.367 5.551 0.000 1.425 18.392
2000 6.638 182.534 0.249 6.834 19.740 2.660 23.084 5.551 0.000 1.297 16.237
2001 6.040 166.106 0.226 6.219 19.740 2.660 21.007 5.551 0.000 1.180 14.276
2002 5.497 151.156 0.206 5.659 19.740 2.660 19.116 5.551 0.000 1.074 12.491
2003 5.002 137.552 0.187 5.150 19.740 2.660 17.396 5.551 0.000 0.977 10.868
2004 4.552 125.173 0.170 4.686 19.740 2.660 15.830 5.551 0.000 0.889 9.390
2005 4.142 113.907 0.155 4.265 19.740 2.660 14.405 5.551 0.000 0.809 8.045
SUB 59.910 1647.532 2.243 61.684 19.740 2.660 208.355 52.272 0.000 11.704 144.382
REM 23.958 658.868 0.897 24.668 19.740 2.660 83.322 49.959 0.000 4.679 28.687
TOT 83.868 2306.400 3.140 86.352 19.740 2.660 291.677 102.231 0.000 16.383 173.069
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 10.562 10.357
1997 33.924 21.435
1998 54.683 17.316
1999 73.075 13.947
2000 89.312 11.194
2001 103.588 8.947
2002 116.079 7.118
2003 126.947 5.630
2004 136.337 4.422
2005 144.382 3.445
SUB 144.382 103.811
REM 173.069 9.140
TOT 173.069 112.951
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SIMONTON, J.S. 1 P.W. % P.W., M$
HALLWOOD PETROLEUM INC OIL GAS ------ --------
BETHANY LONGSTREET ---------- ---------- 10.00 193.145
LA, DE SOTO GROSS WELLS 1.000 0.000 15.00 167.598
HOSSTON RA SU10 GROSS CUM. MB & MMF 5.500 778.731 20.00 148.244
23 13N 15W GROSS RES. MB & MMF 6.970 696.990 25.00 133.170
SEQ: 18 GROSS ULT. MB & MMF 12.470 1475.721 30.00 121.147
INIT W.I 30.750 LIFE/YR 14.917 RATE-OF-RETURN, % 100.00
INIT N.I 25.211 OPC/W 3524 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.378 37.784 0.095 9.526 18.290 2.622 26.719 5.418 0.000 1.170 20.130
1997 0.842 84.193 0.212 21.226 18.290 2.622 59.536 13.004 0.000 2.608 43.925
1998 0.758 75.774 0.191 19.103 18.290 2.622 53.583 13.004 0.000 2.347 38.232
1999 0.682 68.196 0.172 17.193 18.290 2.622 48.224 13.004 0.000 2.112 33.109
2000 0.614 61.377 0.155 15.474 18.290 2.622 43.402 13.004 0.000 1.901 28.497
2001 0.552 55.239 0.139 13.926 18.290 2.622 39.062 13.004 0.000 1.711 24.347
2002 0.497 49.715 0.125 12.534 18.290 2.622 35.156 13.004 0.000 1.540 20.612
2003 0.447 44.744 0.113 11.280 18.290 2.622 31.640 13.004 0.000 1.386 17.251
2004 0.403 40.269 0.102 10.152 18.290 2.622 28.476 13.004 0.000 1.247 14.225
2005 0.362 36.242 0.091 9.137 18.290 2.622 25.628 13.004 0.000 1.123 11.502
SUB 5.535 553.533 1.396 139.551 18.290 2.622 391.426 122.454 0.000 17.145 251.830
REM 1.435 143.459 0.362 36.167 18.290 2.622 101.445 71.522 0.000 4.443 25.482
TOT 6.970 696.992 1.757 175.718 18.290 2.622 492.871 193.976 0.000 21.588 277.312
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 20.130 19.739
1997 64.055 40.309
1998 102.287 31.896
1999 135.396 25.112
2000 163.893 19.650
2001 188.240 15.263
2002 208.852 11.748
2003 226.103 8.939
2004 240.328 6.702
2005 251.830 4.928
SUB 251.830 184.286
REM 277.312 8.858
TOT 277.312 193.144
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SPENCER WALKER 1 P.W. % P.W., M$
KERR MCGEE CORP OIL GAS ------ --------
HICO-KNOWLES ---------- ---------- 10.00 260.476
LA, LINCOLN GROSS WELLS 0.000 1.000 15.00 200.951
MCF SUL GROSS CUM. MB & MMF 76.927 15143.990 20.00 164.532
35 20N 4W GROSS RES. MB & MMF 23.653 1742.845 25.00 140.060
SEQ: 19 GROSS ULT. MB & MMF 100.580 16886.835 30.00 122.507
INIT W.I 22.963 LIFE/YR 47.917 RATE-OF-RETURN, % 100.00
INIT N.I 18.826 OPC/W 2278 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.465 34.235 0.087 6.445 17.680 2.736 19.180 2.615 0.000 0.838 15.727
1997 1.083 79.827 0.204 15.028 17.680 2.736 44.723 6.277 0.000 1.954 36.492
1998 1.040 76.634 0.196 14.427 17.680 2.736 42.934 6.277 0.000 1.875 34.782
1999 0.998 73.568 0.188 13.850 17.680 2.736 41.217 6.277 0.000 1.800 33.139
2000 0.958 70.626 0.180 13.296 17.680 2.736 39.568 6.277 0.000 1.728 31.563
2001 0.920 67.801 0.173 12.764 17.680 2.736 37.985 6.277 0.000 1.659 30.049
2002 0.883 65.089 0.166 12.254 17.680 2.736 36.466 6.277 0.000 1.593 28.596
2003 0.848 62.485 0.160 11.763 17.680 2.736 35.007 6.277 0.000 1.529 27.201
2004 0.814 59.986 0.153 11.293 17.680 2.736 33.607 6.277 0.000 1.468 25.862
2005 0.782 57.586 0.147 10.841 17.680 2.736 32.263 6.277 0.000 1.409 24.576
SUB 8.791 647.837 1.655 121.961 17.680 2.736 362.950 59.108 0.000 15.853 287.987
REM 14.861 1095.010 2.798 206.146 17.680 2.736 613.479 241.666 0.000 26.797 345.013
TOT 23.652 1742.847 4.453 328.108 17.680 2.736 976.429 300.774 0.000 42.650 633.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 15.727 15.420
1997 52.219 33.465
1998 87.001 28.996
1999 120.140 25.116
2000 151.703 21.746
2001 181.752 18.821
2002 210.348 16.283
2003 237.549 14.081
2004 263.411 12.170
2005 287.987 10.514
SUB 287.987 196.612
REM 633.000 63.865
TOT 633.000 260.477
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STANSBURY 2 P.W. % P.W., M$
LATEX OIL GAS ------ --------
D'ARBONE ---------- ---------- 10.00 175.340
LA, UNION GROSS WELLS 0.000 1.000 15.00 147.765
COTTON VALLEY GROSS CUM. MB & MMF 14.080 614.641 20.00 128.069
7-20N-1W GROSS RES. MB & MMF 1.494 249.001 25.00 113.384
SEQ: 218 GROSS ULT. MB & MMF 15.574 863.642 30.00 102.050
INIT W.I 63.262 LIFE/YR 22.417 RATE-OF-RETURN, % 100.00
INIT N.I 52.925 OPC/W 537 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.071 11.808 0.037 6.249 17.240 2.830 18.331 1.699 0.000 0.706 15.927
1997 0.158 26.310 0.084 13.925 17.240 2.830 40.847 4.077 0.000 1.573 35.198
1998 0.142 23.679 0.075 12.532 17.240 2.830 36.762 4.077 0.000 1.415 31.270
1999 0.128 21.311 0.068 11.279 17.240 2.830 33.086 4.077 0.000 1.274 27.736
2000 0.115 19.180 0.061 10.151 17.240 2.830 29.777 4.077 0.000 1.146 24.554
2001 0.104 17.262 0.055 9.136 17.240 2.830 26.800 4.077 0.000 1.032 21.691
2002 0.093 15.536 0.049 8.222 17.240 2.830 24.120 4.077 0.000 0.929 19.115
2003 0.084 13.982 0.044 7.400 17.240 2.830 21.708 4.077 0.000 0.836 16.795
2004 0.076 12.584 0.040 6.660 17.240 2.830 19.537 4.077 0.000 0.752 14.708
2005 0.068 11.326 0.036 5.994 17.240 2.830 17.583 4.077 0.000 0.677 12.830
SUB 1.039 172.978 0.549 91.548 17.240 2.830 268.551 38.392 0.000 10.340 219.824
REM 0.456 76.022 0.241 40.234 17.240 2.830 118.023 53.001 0.000 4.542 60.485
TOT 1.495 249.000 0.791 131.783 17.240 2.830 386.574 91.393 0.000 14.882 280.309
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 15.927 15.617
1997 51.125 32.295
1998 82.395 26.084
1999 110.131 21.032
2000 134.685 16.928
2001 156.376 13.595
2002 175.491 10.891
2003 192.286 8.700
2004 206.994 6.926
2005 219.824 5.493
SUB 219.824 157.561
REM 280.309 17.782
TOT 280.309 175.343
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TRAVIS PEAK SUC P.W. % P.W., M$
KELLEY OIL CORP OIL GAS ------ --------
SUGAR CREEK ---------- ---------- 10.00 95.509
LA, CLAIBORNE GROSS WELLS 1.000 0.000 15.00 87.441
GROSS CUM. MB & MMF 23.999 2409.142 20.00 80.756
18 19N 5W GROSS RES. MB & MMF 5.092 360.662 25.00 75.140
SEQ: 63 GROSS ULT. MB & MMF 29.091 2769.804 30.00 70.366
INIT W.I 19.753 LIFE/YR 8.500 RATE-OF-RETURN, % 100.00
INIT N.I 17.698 OPC/W 2913 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.532 37.675 0.094 6.668 19.740 2.620 19.327 2.877 0.000 0.899 15.551
1997 1.092 77.333 0.193 13.686 19.740 2.620 39.672 6.905 0.000 1.845 30.922
1998 0.873 61.866 0.155 10.949 19.740 2.620 31.738 6.905 0.000 1.476 23.357
1999 0.699 49.493 0.124 8.759 19.740 2.620 25.390 6.905 0.000 1.181 17.304
2000 0.559 39.594 0.099 7.007 19.740 2.620 20.312 6.905 0.000 0.945 12.463
2001 0.447 31.675 0.079 5.606 19.740 2.620 16.250 6.905 0.000 0.756 8.589
2002 0.358 25.340 0.063 4.485 19.740 2.620 13.000 6.905 0.000 0.605 5.490
2003 0.286 20.272 0.051 3.588 19.740 2.620 10.400 6.905 0.000 0.484 3.011
2004 0.229 16.218 0.041 2.870 19.740 2.620 8.320 6.905 0.000 0.387 1.028
2005 0.017 1.195 0.003 0.212 19.741 2.620 0.613 0.575 0.000 0.029 0.009
SUB 5.092 360.661 0.901 63.829 19.740 2.620 185.022 58.692 0.000 8.607 117.724
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 5.092 360.661 0.901 63.829 19.740 2.620 185.022 58.692 0.000 8.607 117.724
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 15.551 15.252
1997 46.473 28.407
1998 69.830 19.509
1999 87.134 13.142
2000 99.597 8.607
2001 108.186 5.395
2002 113.676 3.137
2003 116.687 1.567
2004 117.715 0.490
2005 117.724 0.004
SUB 117.724 95.510
REM 117.724 0.000
TOT 117.724 95.510
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
345 3 AFGRD UNIT 521 TX HOUSTON ALABAMA FERRY (GLEN ROSE D)
346 3 AFNU 522 TX LEON ALABAMA FERRY (GLEN ROSE D)
237 3 ALLEN, BOBBIE LEE 23-15C 342 MS CHICKASAW BACON
238 3 ALLEN, BOBBIE LEE 23-15T 341 MS CHICKASAW BACON
347 3 ALLEN, J. H. #1 343 TX WOOD CROW
348 3 ALLEN, J. H. #2 210 TX WOOD CROW
344 3 ALUM CREEK FIELD TOTAL 637 SD FALL RIVER ALUM CREEK
349 3 AMACKER, V.T. 106-1 638 TX UPTON AMACKER-TIPPETT (DEVONIAN)
1 2 AMC 14-15 1L 344 AL FAYETTE MCCRACKEN MOUNTAIN
2 2 AMC 14-15 1M 345 AL FAYETTE MCCRACKEN MOUNTAIN
3 2 AMC 14-15 BP 605 AL FAYETTE MCCRACKEN MOUNTAIN
4 2 AMC 14-15 BP 607 AL FAYETTE MCCRACKEN MOUNTAIN
5 2 AMERICAN CAN 11-5 1C 346 AL PICKENS WOOLBANK CREEK
6 2 AMERICAN CAN 11-5 1C BP 602 AL PICKENS WOOLBANK CREEK
7 2 AMERICAN CAN 11-5 1D, E 347 AL PICKENS WOOLBANK CREEK
491 3 AMKIRK UNIT 551 WY CAMPBELL AM-KIRK
8 2 ANDERS, GRACE 13-15 1C 414 AL FAYETTE MCCRACKEN MTN
9 2 ANDERS, GRACE 13-15 1T 415 AL FAYETTE MCCRACKEN MTN
239 3 ANDERSON 14-12 1-E 337 MS LEE NETTLETON NORTH
240 3 ANDERSON 14-12 1-E BP 596 MS LEE NETTLETON NORTH
241 3 ANDERSON 14-12 1L 338 MS LEE NETTLETON NORTH
242 3 ANDERSON 7-2 487 MS CHICKASAW BALLS BRANCH (MISSISSIPPIAN LE
184 2 ARAPAHOE, NORTHWEST UNIT 62 CO CHEYENNE ARAPAHOE
350 3 ARCO -22- 211 TX ECTOR ARBOL DE NADA
10 2 ATIC 18-13 1 SW SW 416 AL ESCAMBIA HUXFORD EAST
11 2 ATKINSON CHAS-FED LD BK 1-17 639 AL FAYETTE BLUFF
12 2 BACCUS 13-16 640 AL FAYETTE HEARTLINE
13 2 BAINES M E 1B 350 AL FAYETTE MCCRACKEN MOUNTAIN
14 2 BAINES M E 1C 351 AL FAYETTE MCCRACKEN MOUNTAIN
15 2 BARNES EST 1 352 AL FAYETTE BLOOMING GROVE
16 2 BARNES EST 1 BP 582 AL FAYETTE BLOOMING GROVE
17 2 BARNES EST 1 POSS 583 AL FAYETTE BLOOMING GROVE
286 3 BEAVER LODGE-DEVONIAN UNIT 499 ND WILLIAMS BEAVER LODGE (DEVONIAN)
</TABLE>
Page 1 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
287 3 BEAVER LODGE-MADISON UNIT 500 ND WILLIAMS BEAVER LODGE (MADISON)
288 3 BEAVER LODGE-ORDOVICIAN UNIT NE SE 501 ND WILLIAMS BEAVER LODGE (ORDOVICIAN)
18 2 BENTON, ALLEN 577 AL LAMAR BEAVERTON
199 2 BERGERON 5 474 LA POINTE COUPEE MOORE SAMS
19 2 BERRY 8-10 353 AL FAYETTE BLOOMING GROVE
20 2 BERRY 8-10 POSS 584 AL FAYETTE BLOOMING GROVE
200 2 BIZETTE 1 476 LA POINTE COUPEE MOORE SAMS
201 2 BIZETTE 2 475 LA POINTE COUPEE MOORE SAMS
300 3 BLACK 1-3 413 OK LOGAN ICONIUM NW
301 3 BLACK 1-3 PDBP 709 OK LOGAN ICONIUM NW
21 2 BLOWHORN CREEK MILERELLA UNIT 417 AL LAMAR BLOWHORN CREEK
22 2 BLOWHORN CREEK, NORTH UNIT 452 AL LAMAR BLOWHORN CREEK NORTH
492 3 BLUE FOREST UNIT 60 WY SWEETWATER BLUE FOREST
302 3 BOGGES 2-29 41 OK ROGER MILLS STRONG CITY DISTRICT (RED FORK
23 2 BOMAN 34-8 354 AL LAMAR WATSON CREEK
24 2 BOMAN 34-8 BP 612 AL LAMAR WATSON CREEK
303 3 BOUCHER 1-5 220 OK DEWEY OAKWOOD NORTH
243 3 BOYD 34-10 641 MS WALTHALL DARBUN NORTH (MOORINGSPORT)
244 3 BOYTE 488 MS FRANKLIN ROXIE (WILCOX)
25 2 BOZEMAN 27-15 355 AL FAYETTE MCCRACKEN MOUNTAIN
26 2 BOZEMAN 27-15 BP 608 AL FAYETTE MCCRACKEN MOUNTAIN
27 2 BOZEMAN 27-15 PROB 609 AL FAYETTE MCCRACKEN MOUNTAIN
28 2 BRADFORD E L 19-15 1 418 AL LAMAR MCGEE LAKE
193 2 BRASS 356 KS COMANCHE WILDCAT
351 3 BREEDLOVE 4 46 TX MARTIN BREEDLOVE SOUTH (SPRABERRY)
245 3 BROOKHAVEN FIELD UNIT 642 MS LINCOLN BROOKHAVEN (TUSCALOOSA LWR)
29 2 BROWN 1-9 419 AL LAMAR BLOOMING GROVE
30 2 BROWN N P 1 357 AL LAMAR BLOOMING GROVE
31 2 BROWN N P 1 BP 625 AL LAMAR BLOOMING GROVE
32 2 BROWN NELL 7-3 NE NW 420 AL FAYETTE BLOOMING GROVE
246 3 BRUMFIELD #B-22 PUD 273 MS YAZOO TINSLEY
247 3 BRUMFIELD #B-23 PUD 274 MS YAZOO TINSLEY
248 3 BRUMFIELD B-13 358 MS YAZOO TINSLEY NORTH
</TABLE>
Page 2 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
249 3 BRUMFIELD B-2 349 MS YAZOO TINSLEY NORTH
250 3 BRUMFIELD B-20 362 MS YAZOO TINSLEY
251 3 BRUMFIELD B-5 361 MS YAZOO TINSLEY NORTH
252 3 BRUMFIELD B-6 360 MS YAZOO TINSLEY NORTH
253 3 BRYAN CV UNIT 7 489 MS JONES BRYAN
254 3 BRYAN CV UNIT 10 491 MS JONES BRYAN
255 3 BRYAN CV UNIT 5 230 MS JONES BRYAN
256 3 BRYAN CV UNIT 8 490 MS JONES BRYAN
304 3 BURNS ESTATE 39 OK ROGER MILLS REYDON (MORROW UPPER)
33 2 BUSH 14-15C 333 AL PICKENS COAL FIRE CREEK
34 2 BUSH 14-15C BP 610 AL PICKENS COAL FIRE CREEK
35 2 BUSH 14-15C POSS 611 AL PICKENS COAL FIRE CREEK
36 2 BUSH 14-15L 334 AL PICKENS COAL FIRE CREEK
37 2 BUSH DAVID 14-4 1C* 321 AL PICKENS COAL FIRE CREEK
38 2 BUSH DAVID 14-4 1T 706 AL PICKENS COAL FIRE CREEK
202 2 BUTLER 477 LA POINTE COUPEE MOORE SAMS
39 2 BUTTS J T 1 363 AL FAYETTE BLOOMING GROVE
185 2 CAMPBELL 21-13 #3 467 CO BURLESON HARKER RANCH (MORROW)
40 2 CHADLEY 27-9 364 AL BURLESON DAVIS CHAPEL NE
352 3 CHANCE - BLAHA UNIT 44 TX VAN ZANDT GIDDINGS (AUSTIN CHALK-3)
353 3 CHANCE ESTATE UNIT 523 TX TERREBONNE GIDDINGS (AUSTIN CHALK-3)
354 3 CHANDLER 524 TX TERREBONNE MARTINS MILL (RODESSA 8250)
203 2 CL&F 1 707 LA TERREBONNE TURTLE BAYOU
204 2 CL&F 10 (TB) 636 LA TERREBONNE TURTLE BAYOU
205 2 CL&F 2 708 LA TERREBONNE DEER ISLAND
206 2 CL&F 4 (TB) 55 LA TERREBONNE TURTLE BAYOU
207 2 CL&F 6 (TB) 56 LA TERREBONNE TURTLE BAYOU
208 2 CL&F 8 (TB) 57 LA TERREBONNE TURTLE BAYOU
209 2 CLARK RA SU 15 LA CAMERON CREOLE NORTH
210 2 CLARK RA SU -PDNP 479 LA CAMERON CREOLE NORTH
305 3 CLIFT 1-4 504 OK CUSTER MOOREWOOD NE (RED FORK)
306 3 CLIFT 2-4 505 OK CUSTER MOOREWOOD NE (ATOK-SKNR)
307 3 CLIFT 3-4 506 OK CUSTER MOOREWOOD NE (SKINNER)
</TABLE>
Page 3 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
308 3 CLIFT 4-4 504 OK CUSTER MOOREWOOD NE (SKINNER)
309 3 CLIFT 4-5 505 OK CUSTER MOOREWOOD NE (SKINNER)
310 3 CLIFT 4-6 506 OK CUSTER MOOREWOOD NE (ATOK-RDFK)
41 2 COBB 12-9 643 AL PICKENS COAL FIRE CREEK
42 2 COBB VICK 2-10 1 NW SE 422 AL LAMAR BLOOMING GROVE
355 3 COLDWELL, DALLAS 644 TX GREGG EAST TEXAS
257 3 CORLEY 6-1 323 MS CHICKASAW BALLS BRANCH
356 3 COVINGTON #1 212 TX GRAYSON PERRIN NORTH AFB
357 3 COVINGTON #1 - PDBP 277 TX GRAYSON PERRIN NORTH AFB
178 2 CROCKETT 1 10 AR LAFAYETTE ST MARY WEST (COTTON VALLEY)
43 2 CUNNINGHAM 16-7 331 AL PICKENS CORAL FIRE CREEK
44 2 CUNNINGHAM 16-7 BP 613 AL PICKENS CORAL FIRE CREEK
45 2 CUNNINGHAM 16-7 BP2 614 AL PICKENS CORAL FIRE CREEK
46 2 CUNNINGHAM 16-7 BP3 615 AL PICKENS CORAL FIRE CREEK
211 2 CURET 480 LA POINTE COUPEE MOORE-SAMS
258 3 DABBS 24-6 492 MS LEE NETTLETON NORTH (MISSISSIPPIAN
259 3 DALLAS 5-4 324 MS CHICKASAW BALLS BRANCH
260 3 DALLAS 5-4 BP 620 MS CHICKASAW BALLS BRANCH
358 3 DAVIS, E.T. 1-60 525 TX WHEELER STILES RANCH
359 3 DAVIS, G.C. 1-61 526 TX WHEELER STILES RANCH
212 2 DEVILLE 1 486 LA POINTE COUPEE MOORE-SAMS
186 2 DOYLE 34-1 4 645 CO CHEYENNE HARKER RANCH (MORROW)
187 2 DURR 12-12 #3 646 CO CHEYENNE HARKER RANCH (MORROW)
188 2 DURR 12-12 #1 468 CO CHEYENNE HARKER RANCH (MORROW)
189 2 DURR 12-12 #2 469 CO CHEYENNE HARKER RANCH (MORROW)
311 3 EUNICE 40 OK ROGER MILLS REYDON (MORROW UPPER)
261 3 FARNED, LILIAN P. 1-U 322 MS CHICKASAW BACON
262 3 FARNED, LILIAN P. 1-U BP 597 MS CHICKASAW BACON
263 3 FARNED, LILIAN P. 1-U BP2 598 MS CHICKASAW BACON
291 3 FEDERAL 6 COM 31 NM LEA QUAIL RIDGE (MORROW) PM
360 3 FEENEY HILL GAS UNIT 527 TX RAINS LEATHERMAN CREEK (SMACKOVER)
312 3 FLANAGAN 2-30 203 OK CADDO STICKLES NORTH
313 3 FLANAGAN 2-30 PDBP 270 OK CADDO STICKLES NORTH
</TABLE>
Page 4 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTRY FIELD
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
361 3 FLETCHER, MAX J.1 528 TX WOOD BIRCH (SMACKOVER)
362 3 FLETCHER, MAX J.2 529 TX WOOD BIRCH (SMACKOVER)
363 3 FLETCHER, MAX J.3 530 TX WOOD BIRCH (SMACKOVER)
47 2 FOWLER 11-4 NW NW 423 AL FAYETTE DAVIS CHAPEL
48 2 FOWLER 14-1 424 AL FAYETTE DAVIS CHAPEL
49 2 FOWLER 2-12 425 AL FAYETTE DAVIS CHAPEL
50 2 FOWLER 22-14 426 AL FAYETTE MUSGROVE CREEK
51 2 FOWLER 26-13 1 SW SW 427 AL FAYETTE DAVIS CHAPEL NE
52 2 FOWLER 26-4 1 NW NW 428 AL FAYETTE DAVIS CHAPEL NE
53 2 FOWLER 7 1 NE NE 285 AL FAYETTE BLUFF
54 2 FOWLER 9-6 429 AL FAYETTE DAVIS CHAPEL
55 2 FOWLER MORGAN 8 4 430 AL FAYETTE BLUFF
56 2 FOWLER, JULIA SIZEMORE 6-16 #1 442 AL FAYETTE BLUFF
57 2 FULLERTON 25-13 431 AL FAYETTE MUSGROVE CREEK
364 3 FUTRELL 531 TX HARRISON HALLSVILLE NE (PETTIT)
264 3 GADDIS FARMS 13-1 493 MS HINDS BOLTON (COTTON VALLEY)
265 3 GADDIS-MCLAURIN 7 494 MS HINDS BAKERS CREEK (RODESSA)
365 3 GAULT, SARAH 1-5 224 TX MIDLAND PARSLEY
366 3 GAULT, SARAH 1-5 PDBP 315 TX MIDLAND PARSLEY
367 3 GAULT, SARAH 3-5 404 TX MIDLAND PARSLEY (ATOKA)
368 3 GAULT, SARAH 3-5 PDBP 316 TX MIDLAND PARSLEY
213 2 GAY UNION #37 - BP1 268 LA IBERVILLE BAYOU CHOCTAW
214 2 GAY UNION #37 - BP2 317 LA IBERVILLE BAYOU CHOCTAW
215 2 GAY UNION #37 - BP3 318 LA IBERVILLE BAYOU CHOCTAW
216 2 GAY UNION #37 - BP4 319 LA IBERVILLE BAYOU CHOCTAW
217 2 GAY UNION #37 - BP5 320 LA IBERVILLE BAYOU CHOCTAW
218 2 GAY UNION FIELD TOTAL - PDNP 227 LA IBERVILLE BAYOU CHOCTAW
314 3 GERLOFF 510 OK WOODS FREEDOM NORTH (CCKB-MRMC-TNKW)
292 3 GILLIAM 202 NM LEA CAUDILL NE
293 3 GILLIAM #1 - PDNP 248 NM LEA CAUDILL NE
58 2 GILMER 25-15 376 AL LAMAR BLOWHORN CREEK
59 2 GILMER, JUDE 35-7 1 634 AL LAMAR WATSON CREEK EAST
194 2 GLENN 1-33 471 KS STANTON BEAUCHAMP SW (MORROWAN)
</TABLE>
Page 5 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PORPERTY NAME NUM STATE COUNTRY FIELD
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
266 3 GLOSTER JACOB 495 MS MARION COLUMBIA (HOSSTON 1ST)
60 2 GRACE 35-2C 329 AL PICKENS CHICKEN SWAMP BRANCH
61 2 GRACE 35-2L 330 AL PICKENS CHICKEN SWAMP BRANCH
62 2 GRAVLEE 13-12 1 377 AL FAYETTE MCCRAKEN MOUNTAIN
63 2 GRAVLEE 13-12 1 BP 621 AL FAYETTE MCCRAKEN MOUNTAIN
64 2 GRIMSLEY A M 1 378 AL FAYETTE BLOOMING GROVE
65 2 GRIMSLEY A M 2 379 AL FAYETTE BLOOMING GROVE
66 2 GRIMSLEY A M 2 BP 585 AL FAYETTE BLOOMING GROVE
67 2 GRIMSLEY A M 2 POSS 586 AL FAYETTE BLOOMING GROVE
68 2 HAMMOND 13-13 1 432 AL PICKENS COAL FIRE CREEK
69 2 HARKINS-STANLEY UNIT 1 433 AL FAYETTE FAYETTE WEST
315 3 HARP 1-36 42 OK STEPHENS SHO-VEL-TUM (SPRINGER)
369 3 HARRISON -C- 1-C 648 TX GREGG WILLOW SPRINGS (RODESSA)
370 3 HARRISON -C- 1-T 647 TX GREGG WILLOW SPRINGS (HENDERSON)
371 3 HARRISON, P.D. E G.U. 579 TX GREGG WILLOW SPRINGS WEST (TRAVIS PE
267 3 HEARN 29-3 23 MS CLARKE PEACHTREE CREEK (COTTON VALLEY
285 3 HENSLER 1-21 201 MT SHERIDAN COMERTOWN SOUTH
70 2 HIGGINS JIMMY 7-15 380 AL FAYETTE BLOOMING GROVE
71 2 HIGGINS JIMMY 7-15 BP 626 AL FAYETTE BLOOMING GROVE
72 2 HIGGINS JIMMY 7-15 POSS 588 AL FAYETTE BLOOMING GROVE
219 2 HILL UN 1 1 239 LA ALLEN OBERLIN
268 3 HINTON 8-16 496 MS LEE PALMETTO SOUTH (MISSISSIPPIAN
73 2 HODO 31-15 1 SW SE 435 AL LAMAR MOUNT CARMEL
74 2 HOLLY JF 32-8 436 AL LAMAR BEAVERTON
316 3 HOWLING WOMAN #1-23 204 OK BLAINE ELM GROVE
317 3 HOWLING WOMAN #1-23 PDBP 269 OK BLAINE ELM GROVE
372 3 HUDDLESTON, C.L. 578 TX RAINS GINGER SE (SMACKOVER)
373 3 HUDDLESTON, C.L. 580 TX RAINS GINGER SE (SMACKOVER)
220 2 HURST 482 LA POINTE COUPEE MOORE SAMS
374 3 HURT 213 TX FRIO PEARSALL
75 2 IRWIN 7-15 1C 437 AL PICKENS COAL FIRE CREEK
76 2 IRWIN 7-15 2 SW SE 438 AL PICKENS COAL FIRE CREEK
318 3 JACKSON BARNETT SE 381 OK CREEK CUSHING (BARTLESVILLE)
</TABLE>
Page 6 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
294 3 JACKSON UNIT 30 MN LEA JOHNSON RANCH (WOLFCAMP) WC
77 2 JOHNSON 30-11 1 439 AL FAYETTE MCCRACKEN MTN
78 2 JOHNSON 36-6 1 SE NW 440 AL FAYETTE DAVIS CHAPEL NE
375 3 JOHNSON GBSA UNIT 72 TX ECTOR JOHNSON
79 2 JONES JIMMY RAY 7-7 441 AL FAYETTE BLUFF
376 3 JONES, JOHN 214 TX HOWARD KNOTT SW
195 2 KANSAS UNIVERSITY 235 KS STANTON SPARKS NE
80 2 KELLY 15-16C 332 AL PICKENS COAL FIRE CREEK
81 2 KELLY 15-16C (PROB) 622 AL PICKENS COAL FIRE CREEK
82 2 KELLY 15-16T 335 AL PICKENS COAL FIRE CREEK
319 3 KILHOFFER 1-33 513 OK CUSTER MOOREWOOD NE (SKINNER)
320 3 KILHOFFER 2-33 511 OK CUSTER MOOREWOOD NE (SKINNER)
321 3 KILHOFFER 3-33 512 OK CUSTER MOOREWOOD NE (SKINNER)
83 2 KILLINGSWORTH 7-9 NE SE 443 AL FAYETTE MUSGROVE CREEK
84 2 KILLINGSWORTH 8-13 SW SW 444 AL FAYETTE MUSGROVE CREEK
377 3 KILLINGSWORTH B-3 649 TX GREGG WILLOW SPRINGS WEST (TRAVIS PE
378 3 KILLINGSWORTH B-4 650 TX GREGG WILLOW SPRINGS WEST (TRAVIS PE
379 3 KING 242 TX OCHILTREE HANSFORD
322 3 HOPF 1-11 36 OK BLAINE WATONGA-CHICKASHA TREND (MORRO
380 3 LANTHROP -B- 532 TX GREGG EAST TEXAS
381 3 LANTHROP -C- ORRI 533 TX GREGG EAST TEXAS
382 3 LATHROP,F.K. 1 534 TX GREGG EAST TEXAS
383 3 LATHROP,F.K. GAS UNIT 535 TX GREGG WILLOW SPRINGS (COTTON VALLEY
384 3 LATHROP,F.K. GAS UNIT 4 536 TX GREGG WILLOW SPRINGS (COTTON VALLEY
385 3 LATHROP,F.K. GAS UNIT 5 537 TX GREGG WILLOW SPRINGS (COTTON VALLEY
386 3 LATHROP,F.K. GU #2-ORRI 538 TX GREGG WILLOW SPRINGS (COTTON VALLEY
387 3 LEE-B- GAS UNIT 1-C 539 TX GREGG WILLOW SPRINGS (HENDERSON)
388 3 LEE -G- 540 TX GREGG WILLOW SPRINGS-MACKEY (TRAVIS
389 3 LEE 2-5 651 TX HEMPHILL ALLISON PARKS (MORROWAN UPPER)
390 3 LEE GAS UNIT B-3 652 TX GREGG WILLOW SPRINGS (COTTON VALLEY
391 3 LEE GAS UNIT B-4 653 TX GREGG WILLOW SPRINGS (COTTON VALLEY
392 3 LEE GAS UNIT B-5 654 TX GREGG WILLOW SPRINGS (COTTON VALLEY
393 3 LEE GAS UNIT B-6 655 TX GREGG WILLOW SPRINGS (COTTON VALLEY
</TABLE>
Page 7 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
INDEX OF PROPERTIES
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
394 3 LEE, T.W. 656 TX GREGG EAST TEXAS
395 3 LEE, T.W. 657 TX GREGG EAST TEXAS
396 3 LEE, TAYLOR W. 541 TX GREGG EAST TEXAS
397 3 LITTLE WHIT #1 542 TX GLASSCOCK BIG WHIT (WOLFCAMP)
398 3 LITTLE WHIT #4 543 TX GLASSCOCK COBRA (WOLFCAMP)
85 2 LOFTIS ESTATE 23-8C 445 AL FAYETTE MCCRACKEN MTN
86 2 LOFTIS ESTATE 23-8L 446 AL FAYETTE MCCRACKEN MTN
221 2 LONGENBAUGH 217 LA CALCASIEU BON AIR
196 2 LUCAS 472 KS STANTON BEAUCHAMP (MORROWAN)
222 2 MANY, SUE L. 11 LA ASCENSION DARROW
197 2 MARTIN 388 KS STANTON KANSAS HUGOTON
87 2 MARX-THOMAS 6-6 1 447 AL LAMAR MUD CREEK
323 3 MASCHO NENESW 389 OK CREEK CUSHING (BARTLESVILLE)
223 2 MATILDA GRAY STREAM J 13 LA CALCASIEU VINTON
224 2 MATILDA GRAY STREAM M 14 LA CALCASIEU VINTON
88 2 MAYERS F 29-5 448 AL LAMAR MCGEE LAKE
89 2 MCCALEB 26-9 390 AL FAYETTE BETHEL CHURCH
90 2 MCCALEB 26-9 BP 589 AL FAYETTE BETHEL CHURCH
91 2 MCCALEB 26-9 POSS 590 AL FAYETTE BETHEL CHURCH
225 2 MCCRANIE 12 LA BOSSIER IVAN
399 3 MCDANIEL, LOIS 1 544 TX WARD QUITO EAST (CHEERY CANYON)
92 2 MCDONALD 36-13 1C 328 AL LAMAR CORINTH
93 2 MCDONALD 36-13 BP 623 AL LAMAR CORINTH
94 2 MCDONALD 36-13 M 391 AL LAMAR CORINTH
95 2 MCEVERS 19-9 392 AL FAYETTE MCCRACKEN MOUNTAIN
400 3 MEALS, NANCY 1 223 TX YOAKUM BLOCK D
401 3 MIKESKA/KRENEK 43 TX BURLESON GIDDING (AUSTIN CHALK-3)
226 2 MILLER 8 478 LA JEFFERSON DAVIS LAKE ARTHUR
324 3 MILLIE 2-20 BP 276 OK TONKAWA PUTMAN
227 2 MIX 483 LA POINTE COUPEE MOORE SAMS
96 2 MORRISON 35-1C 395 AL LAMAR BLOWHORN CREEK
97 2 MORRISON 36-1M 396 AL LAMAR BLOWHORN CREEK
98 2 MORRISON 35-1M BP 616 AL LAMAR BLOWHORN CREEK
</TABLE>
Page 8 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 2 MORRISON 36-4C 397 AL LAMAR BLOWHORN CREEK
100 2 MORRISON 36-4M 398 AL LAMAR BLOWHORN CREEK
101 2 MORRISON 36-4M BP 617 AL LAMAR BLOWHORN CREEK
102 2 MORRISON 36-4M POSS 618 AL LAMAR BLOWHORN CREEK
325 3 MORTON 2-35 37 OK LOGAN COYLE SOUTH (WILCOX)
326 3 MULLINS 1-34 61 OK CUSTER BUTLER-CUSTER WEST
103 2 MURPHY-RANDOLPH 1 325 AL LAMAR BLOOMING GROVE
104 2 MURPHY-RANDOLPH 1 BP 591 AL LAMAR BLOOMING GROVE
105 2 MURPHY-RANDOLPH 1 BP2 592 AL LAMAR BLOOMING GROVE
106 2 MURPHY-RANDOLPH 1 BP3 593 AL LAMAR BLOOMING GROVE
295 3 MUSKEGON 20 ST. COM 29 NM EDDY EMPIRE SOUTH (MORROW) PM
198 2 NELLIE 1-16 473 KS STANTON BEAUCHAMP (MORROWAN)
327 3 NEUFELD 1-33 205 OK BLAINE FAYE EAST
107 2 NEWMAN CROWLEY 24-5 1C 399 AL PICKENS COAL FIRE CREEK
108 2 NEWMAN CROWLEY 24-5 1T 400 AL PICKENS COAL FIRE CREEK
109 2 NEWMAN CROWLEY 24-5 1T BP 604 AL PICKENS COAL FIRE CREEK
110 2 NEWMAN LUMBER 16-3 1 449 AL LAMAR MILITARY GROVE NORTH
111 2 NOLAN 6-2 1 NW NE 450 AL FAYETTE DAVIS CHAPEL NE
112 2 NOLEN CHARLES W 35-2 451 AL FAYETTE MCCRACKEN MTN WEST
113 2 NORRIS ELVIE 29-8 1 658 AL FAYETTE FAYETTE WEST
114 2 NORRIS N G 21-13 401 AL FAYETTE FAYETTE WEST
402 3 NORTHEAST EDGEWOOD UNIT 705 TX VAN ZANDT EDGEWOOD NE (SMACKOVER)
403 3 OPELIKA GAS UNIT* 635 TX HENDERSON OPELIKA
404 3 OSR-HALLIDAY UNIT 545 TX MADISON HALLIDAY (WOODBINE)
405 3 PADGITT, JAMES T. 3 243 TX CROCKETT PADGITT
269 3 PARAMOUNT/COCHRAN 14-5 497 MS JONES BLACKBURNE (HOSSTON)
115 2 PECOS FOODS 35-11 1 NE SW 453 AL PICKENS COAL FIRE CREEK
190 2 PECO-NVG 41-23H 200 CO ROUTT WOLF MOUNTAIN
191 2 PECO-NVG 41-23H PDBP 247 CO ROUTT WOLF MOUNTAIN
228 2 PERKINS FIELD TOTAL 229 LA CALCASIEU PERKINS
406 3 PHILLIPS EDWARDS 215 TX ECTOR EDWARDS WEST
407 3 PIERCE, V.I. 10-1 556 TX CROCKETT OZONA
408 3 PIERCE, V.I. 10-2 557 TX CROCKETT OZONA
</TABLE>
Page 9 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
409 3 PIERCE, V.I. 10-3 558 TX CROCKETT OZONA
410 3 PIERCE, V.I. 10-4 555 TX CROCKETT OZONA (CANYON)
411 3 PIERCE, V.I. 10-5 559 TX CROCKETT OZONA
412 3 PIERCE, V.I. 10-6 560 TX CROCKETT OZONA
413 3 PIERCE, V.I. 10-7 561 TX CROCKETT OZONA (CANYON)
414 3 PIERCE, V.I. 2-1 565 TX CROCKETT OZONA
415 3 PIERCE, V.I. 2-2 562 TX CROCKETT OZONA (CANYON)
416 3 PIERCE, V.I. 2-4 554 TX CROCKETT OZONA (CANYON)
417 3 PIERCE, V.I. 2-5 564 TX CROCKETT OZONA (CANYON)
418 3 PIERCE, V.I. 2-6 563 TX CROCKETT OZONA (CANYON)
419 3 PIERCE, V.I. 3-2 553 TX CROCKETT OZONA (CANYON)
420 3 PIERCE, V.I. 9-1 566 TX CROCKETT OZONA (CANYON)
421 3 PIERCE, V.I. 9-3 567 TX CROCKETT OZONA (CANYON)
422 3 PIERCE-HENDERSON 7-1 569 TX CROCKETT OZONA
423 3 PIERCE-HENDERSON 7-2 570 TX CROCKETT OZONA
424 3 PIERCE-HENDERSON 7-3 568 TX CROCKETT OZONA (CANYON)
425 3 PIERCE-HENDERSON 7-4 574 TX CROCKETT OZONA (CANYON)
426 3 PIERCE-HENDERSON 7-5 575 TX CROCKETT OZONA (CANYON)
427 3 PIERCE-HENDERSON 7A-1 571 TX CROCKETT OZONA
428 3 PIERCE-HENDERSON 8-1 572 TX CROCKETT OZONA (CANYON)
429 3 PIERCE-HENDERSON 8-2 576 TX CROCKETT OZONA (CANYON)
430 3 PIERCE-HENDERSON 8-3 573 TX CROCKETT OZONA (CANYON)
229 2 PLACID 1 481 LA BOSSIER CARTERVILLE NORTH
230 2 PLACID 1 - BP 267 LA BOSSIER CARTERVILLE N
431 3 PORTER 546 TX WHEELER TWITTY (GRANITE WASH)
116 2 RANDOLPH 25-13 1C 454 AL FAYETTE BETHEL CHURCH
328 3 RAY 5-1 514 OK CUSTER MOOREWOOD NE (RED FORK)
329 3 RAY 5-2 515 OK CUSTER MOOREWOOD NE - (SKINNER)
330 3 RAY 5-3 516 OK CUSTER MOOREWOOD NE - (SKINNER)
331 3 RAY 5-4 517 OK CUSTER MOOREWOOD NE - (SKINNER)
332 3 RAY 5-5 518 OK CUSTER MOOREWOOD NE - (SKINNER)
333 3 RICHARDS, E. 221 OK CREEK CUSHING (BARTLESVILLE)
334 3 RIPPLE 1-12 206 OK PITTSBURG REAMS NW
</TABLE>
Page 10 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
270 3 ROBERTS, ERNEST 219 MS HINDS BOLTON
117 2 ROBERTSON 20-12 1 455 AL LAMAR FERNBANK
432 3 ROBERTSON-BLUESTEM 547 TX GRAYSON SEPTEMBER (9300)
118 2 RODGERS, E. 25-1 1 456 AL LAMAR MCGEE LAKE
271 3 ROSENBLATT 669 MS WILKINSON BELMONT LAKE (WALKER)
179 2 ROSEWOOD RESOURCES 10-1 9 AR COLUMBIA SPRINGHILL (HAYNESVILLE)
180 2 ROSEWOOD RESOURCES 10-2 233 AR COLUMBIA SPRINGHILL
181 2 ROSEWOOD RESOURCES 10-3 321 AR COLUMBIA SPRINGHILL
182 2 ROSEWOOD RESOURCES 9-1 8 AR COLUMBIA SPRINGHILL (HAYNESVILLE)
272 3 RUDDER 29-4 54 MS CLARKE PEACHTREE CREEK (COTTON VALLEY
119 2 S. CARLTON FIELD TOTAL 234 AL CLARKE & BALDWIN SOUTH CARLTON
120 2 S. CARLTON (BARBOUR 16-7) 631 AL CLARKE & BALDWIN SOUTH CARLTON
121 2 S. CARLTON (DAVIES 5) 627 AL CLARKE & BALDWIN SOUTH CARLTON
122 2 S. CARLTON (OSWELL 11-12) 632 AL CLARKE & BALDWIN SOUTH CARLTON
123 2 S. CARLTON (SCOTT 11-12) 630 AL CLARKE & BALDWIN SOUTH CARLTON
124 2 S. CARLTON (SCOTT 11-6) 633 AL CLARKE & BALDWIN SOUTH CARLTON
125 2 S. CARLTON (SCOTT 15-14) 628 AL CLARKE & BALDWIN SOUTH CARLTON
126 2 S. CARLTON (SCOTT 9-9) 629 AL CLARKE & BALDWIN SOUTH CARLTON
127 2 S. CARLTON - LOC 01 288 AL CLARKE & BALDWIN
128 2 S. CARLTON - LOC 02 289 AL CLARKE & BALDWIN
129 2 S. CARLTON - LOC 03 290 AL CLARKE & BALDWIN
130 2 S. CARLTON - LOC 04 291 AL CLARKE & BALDWIN
131 2 S. CARLTON - LOC 05 292 AL CLARKE & BALDWIN
132 2 S. CARLTON - LOC 06 293 AL CLARKE & BALDWIN
133 2 S. CARLTON - LOC 07 294 AL CLARKE & BALDWIN
134 2 S. CARLTON - LOC 08 295 AL CLARKE & BALDWIN
135 2 S. CARLTON - LOC 09 296 AL CLARKE & BALDWIN
136 2 S. CARLTON - LOC 10 297 AL CLARKE & BALDWIN
137 2 S. CARLTON - LOC 11 298 AL CLARKE & BALDWIN
138 2 S. CARLTON - LOC 12 299 AL CLARKE & BALDWIN
139 2 S. CARLTON - LOC 13 300 AL CLARKE & BALDWIN
140 2 S. CARLTON - LOC 14 301 AL CLARKE & BALDWIN
141 2 S. CARLTON - LOC 15 302 AL CLARKE & BALDWIN
</TABLE>
Page 11 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
142 2 S. CARLTON - LOC 16 303 AL CLARKE & BALDWIN
143 2 S. CARLTON - LOC 17 280 AL CLARKE & BALDWIN
144 2 S. CARLTON - LOC 18 304 AL CLARKE & BALDWIN
145 2 S. CARLTON - LOC 19 305 AL CLARKE & BALDWIN
146 2 S. CARLTON - LOC 20 306 AL CLARKE & BALDWIN
147 2 S. CARLTON - LOC 21 307 AL CLARKE & BALDWIN
148 2 S. CARLTON - LOC 22 308 AL CLARKE & BALDWIN
149 2 S. CARLTON - LOC 24 310 AL CLARKE & BALDWIN
150 2 S. CARLTON - LOC 25 311 AL CLARKE & BALDWIN
151 2 S. CARLTON - LOC 26 312 AL CLARKE & BALDWIN
152 2 S. CARLTON - LOC 27 309 AL CLARKE & BALDWIN
153 2 S. CARLTON - LOC 28 314 AL CLARKE & BALDWIN
154 2 S. CARLTON - LOC 29 313 AL CLARKE & BALDWIN
433 3 SACROC UNIT 670 TX SCURRY KELLY-SNYDER
231 2 SALE, T.S JR. 1 484 LA CLAIBORNE OAKS
335 3 SARKEY FDN UN 3 519 OK PITTSBURG KINTA
336 3 SARKEYS UNIT 38 OK PITTSBURG BROOKEN (HARTSHORNE)
273 3 SCRUGGS 15-10 339 MS LEE SHANNON EAST
274 3 SCRUGGS 15-10 BP 599 MS LEE SHANNON EAST
275 3 SCRUGGS 15-10 BP2 600 MS LEE SHANNON EAST
296 3 SHIPP 34-A 32 NM LEA CASEY (STRAWN) PS
232 2 SHRINERS HOSPITAL A-1 17 LA CLAIBORNE LISBON
337 3 SIMMONS 2-31 671 OK BECKHAM CARPENTER (MORROW UPPER)
233 2 SIMONTON, J.S. 1 18 LA DE SOTO BETHANY LONGSTREET
493 3 SIMPSON NW NW 552 WY CAMPBELL SIMPSON RANCH (MINNELUSA)
155 2 SISSON OLIVER 29-13 457 AL LAMAR MCGEE LAKE
276 3 SMACKOVER 'A' POOL TOTAL 241 MS WAYNE CYPRESS CREEK SOUTH (SMACKOVER
277 3 SMACKOVER UNIT 286 MS JASPER LAKE COMO (SMACKOVER
156 2 SMITH 28-9* 458 AL LAMAR ARMSTRONG BRANCH
157 2 SMITH 5-8 1C 336 AL PICKENS LINEBARGER CREEK
158 2 SMITH 5-8 IL 340 AL PICKENS LINEBARGER CREEK
159 2 SMITH 5-8 BP 624 AL PICKENS LINEBARGER CREEK
160 2 SMITH L R 1 405 AL FAYETTE BLOOMING GROVE
</TABLE>
Page 12 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTRY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
161 2 SMITH L R 1 BP 594 AL FAYETTE BLOOMING GROVE
338 3 SMITH NO 1-34 208 0K LOGAN ICONIUM NW
339 3 SMITH NO 1-34 PDBP 272 0K LOGAN ICONIUM NW
434 3 SMITH, A. 548 TX GREGG EAST TEXAS
183 2 SMITH, LAMAR A. 3 238 AR COLUMBIA SPRINGHILL
435 3 SNYDER - STATE OF TEXAS GAS UNIT 49 TX REEVES WORSHAM-BAYER (DEVONIAN)
289 3 SORENSON 11-13 NNW NW 502 ND MCKENZIE UNION CENTER (MADISON)
436 3 SORRELL 549 TX GREGG EAST TEXAS
278 3 SOSO FIELD UNIT 28-5 672 MS JONES SOSO (RODESSA 11151)
162 2 SPARKS 14-3 1T 459 AL FAYETTE MCCRACKEN MTN
234 2 SPENCER WALKER 1 19 LA LINCOLN HICO-KNOWLES
235 2 STANSBURY 2 218 LA UNION D'ARBONE
297 3 STATE 17 33 NM LEA AUSTIN (MISSISSIPPIAN) MI
298 3 STATE 32 503 NM LEA BAUM (UPPER PENN) UP
438 3 STATE 904 I-1 GAS UNIT 47 TX NUECES G O M ST-904 (FRIO 1-A)
437 3 STATE 904 L-3 GAS UNIT 48 TX NUECES G O M ST-904 (FRIO 8200)
299 3 STATE QE 13 34 NM LEA RANGER LAKE (PENN) PN
439 3 STATE TRACT 562-L 550 TX CALHOUN MATAGORDA BLOCK 562-L (6470)
192 2 STEELE 44C-3 470 CO CHEYENNE HARKER RANCH (MORROW)
163 2 STEINER-SCHWAB 17-13 460 AL FAYETTE BOXES CREEK
164 2 STEINER-SCHWAB 17-5 408 AL FAYETTE BOXES CREEK
165 2 STEINER-SCHWAB 26-5 409 AL FAYETTE MUSGROVE CREEK
166 2 STEINER-SCHWAB 26-5 BP 603 AL FAYETTE MUSGROVE CREEK
167 2 STRAWBRIDGE DW 33-14 1 461 AL LAMAR BEAVERTON
168 2 STRAWBRIDGE R H 9-2 2 462 AL LAMAR LITTLE HELLS CREEK
279 3 STRITE 673 MS WALTHALL DARBUN NORTH (TUSCALOOSA LWR)
169 2 SUGGS 16-10 1 463 AL LAMAR FERNBANK
280 3 TALLY 31-16 1C 326 MS LEE BALLS BRANCH
281 3 TALLY 31-16 1C BP 601 MS LEE BALLS BRANCH
282 3 TALLY 31-16 1T 327 MS LEE BALLS BRANCH
340 3 TAYLOR, JOY 1 520 OK ROGER MILLS CARPENTER (MORROW UPPER)
440 3 TCGU7 (LEOPARD, C.W. 1) 674 TX HENDERSON TRI-CITIES (TRAVIS PEAK LOWER)
290 3 TIOGA-MADISON UNIT 27 ND WILLIAMS TIOGA (MADISON)
</TABLE>
Page 13 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
236 2 TRAVIS PEAK SUC 63 LA CLAIBORNE SUGAR CREEK
341 3 TROUTT-MARSH 209 OK LOGAN ICONIUM NW
283 3 TUCKER 9-13 498 MS LEE PALMETTO SOUTH (MISSISSIPPIAN
342 3 TWIN WOMAN NW/4 35 OK BLAINE FAY EAST (CNGM-PRMR)
441 3 UNIVERSITY -1829- 51 TX WARD WAR-WINK SOUTH (WOLFCAMP)
442 3 UNIVERSITY 10-18 #A-6-PUD 250 TX WARD WAR-WINK SOUTH
443 3 UNIVERSITY 10-18 #A-7-PUD 251 TX WARD WAR-WINK SOUTH
444 3 UNIVERSITY 10-18 #B-8-PUD 252 TX WARD WAR-WINK SOUTH
445 3 UNIVERSITY 10-18 #B-9 PROBABLE 253 TX WARD WAR-WINK SOUTH
446 3 UNIVERSITY 10-18 1-U 52 TX WARD WAR-WINK SOUTH (FUSSELMAN)
447 3 UNIVERSITY 10-18 A-1 & A-2 676 TX WARD WAR-WINK SOUTH (WOLFCAMP)
448 3 UNIVERSITY 10-18 A-3, A-4 & A-5 677 TX WARD BLOCK 18 (CHERRY CANYON)
449 3 UNIVERSITY 10-18 B-2 & B-4 678 TX WARD WAR-WINK S-WOLFCAMP
450 3 UNIVERSITY 10-18 B-6 679 TX WARD BLOCK 18 (CHERRY CANYON)
451 3 UNIVERSITY 1018 'B' 680 TX WARD BLOCK 18 (CHERRY CANYON)
452 3 UNIVERSITY 11-18 #A-4 PROBABLE 263 TX WARD WAR-WINK SOUTH
453 3 UNIVERSITY 11-18 #B-3 PROBABLE 260 TX WARD WAR-WINK SOUTH
454 3 UNIVERSITY 11-18 #B-4 PROBABLE 261 TX WARD WAR-WINK SOUTH
455 3 UNIVERSITY 11-18 #B-5 PROBABLE 262 TX WARD WAR-WINK SOUTH
456 3 UNIVERSITY 11-18 A-1 & A-2 681 TX WARD WAR-WINK SOUTH (WOLFCAMP)
457 3 UNIVERSITY 11-18 A-3 699 TX WARD BLOCK 18 (CHERRY CANYON)
458 3 UNIVERSITY 11-18 B-1 & B-2 682 TX WARD WAR-WINK SOUTH (WOLFCAMP)
459 3 UNIVERSITY 18-29 #2 PUD 264 TX WARD WAR-WINK SOUTH
460 3 UNIVERSITY 18-29 #5 PUD 265 TX WARD WAR-WINK SOUTH
461 3 UNIVERSITY 18-29 #7 PUD 266 TX WARD WAR-WINK SOUTH
462 3 UNIVERSITY 18-29 4 700 TX WARD QUITO EAST (CHERRY CANYON)
463 3 UNIVERSITY 18-29 GAS UNIT 1 683 TX WARD QUITO EAST (ATOKA)
464 3 UNIVERSITY 18-30 #2 53 TX WARD QUITO EAST (CHERRY CANYON)
465 3 UNIVERSITY 18-31 1 701 TX WARD QUITO EAST (CHERRY CANYON)
466 3 UNIVERSITY 18-31 3 684 TX WARD EAST QUITO (CHERRY CANYON)
467 3 UNIVERSITY 18-31 4 685 TX WARD QUITO EAST (CHERRY CANYON)
468 3 UNIVERSITY 18-31 6 686 TX WARD QUITO EAST (CHERRY CANYON)
469 3 UNIVERSITY 18-5 #3 687 TX WARD BLOCK 17 (CHERRY CANYON)
</TABLE>
Page 14 of 15
<PAGE>
APPRAISAL
INTERESTS OWNED BY LATEX RESOURCES, INC.
AS OF JULY 31, 1996
I N D E X O F P R O P E R T I E S
<TABLE>
<CAPTION>
PAGE VOLUME SEQ
NO. NO. PROPERTY NAME NUM STATE COUNTRY FIELD
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
470 3 UNIVERSITY 18-6-2-U 688 TX WARD WAR-WINK SOUTH (FUSSELMAN)
471 3 UNIVERSITY 18-6 3 702 TX WARD WAR-WINK SOUTH (WOLFCAMP)
472 3 UNIVERSITY 1829-6, 8 & 10 689 TX WARD QUITO EAST (CHERRY CANYON)
473 3 UNIVERSITY 22-18 #A-3 PROBABLE 259 TX WARD WAR-WINK SOUTH
474 3 UNIVERSITY 22-18 A-1 & A-2 690 TX WARD WAR-WINK SOUTH (WOLFCAMP)
475 3 UNIVERSITY 22-18 B-1 691 TX WARD WAR-WINK SOUTH (WOLFCAMP)
476 3 UNIVERSITY 23-18 #A-3 PROBABLE 257 TX WARD WAR-WINK SOUTH
477 3 UNIVERSITY 23-18 #A-4 PROBABLE 258 TX WARD WAR-WINK SOUTH
478 3 UNIVERSITY 23-18 A-1 & A-2 692 TX WARD WAR-WINK SOUTH (WOLFCAMP)
479 3 UNIVERSITY 24-18 #2 PROBABLE 256 TX WARD WAR-WINK SOUTH
480 3 UNIVERSITY 24-18 A-1 693 TX WARD WAR-WINK SOUTH (WOLFCAMP)
481 3 UNIVERSITY 9-18 #A-3 PROBABLE 254 TX WARD WAR-WINK SOUTH
482 3 UNIVERSITY 9-18 #A-4 PROBABLE 255 TX WARD WAR-WINK SOUTH
483 3 UNIVERSITY 9-18 -B- 694 TX WARD WAR-WINK SOUTH (WOLFCAMP)
484 3 UNIVERSITY 9-18 A-1 703 TX WARD BLOCK 18 (CHERRY CANYON)
284 3 WALKER, GW 6-7 244 MS JONES CAMP CREEK
485 3 WALKER, P., ET AL 2-L 704 TX WARD QUITO EAST (ELLENBURGER)
486 3 WALKER, P., ET AL 4 697 TX WARD EAST QUITO (CHERRY CANYON)
487 3 WALKER, P., ET AL 5 & 6 698 TX WARD QUITO EAST (CHERRY CANYON)
170 2 WATKINS AIRHART 6-16 464 AL FAYETTE FAYETTE SW
171 2 WAYSIDE OIL UNIT SE NW 465 AL FAYETTE WAYSIDE
343 3 WELLS 1-28 NW 675 OK GARVIN GOLDEN TREND (HNTN-SCMR-WDFD)
488 3 WELLS GAS UNIT 2-T 710 TX PANOLA WASKOM
489 3 WELLS, M. W. 1-T 287 TX HARRISON WASKOM (TRAVIS PEAK 1)
172 2 WEYERHAEUSER 17-2 NW NE 466 AL FAYETTE BLUFF
173 2 WHITAKER 25-15 1 410 AL FAYETTE BETHEL CHURCH
174 2 WHITAKER 25-15 1 BP 595 AL FAYETTE BETHEL CHURCH
175 2 WHITE 8-4 411 AL FAYETTE BLOOMING GROVE
176 2 WHITE 8-4 PROB 619 AL FAYETTE BLOOMING GROVE
177 2 WHITLEY S L 1 412 AL FAYETTE BLOOMING GROVE
490 3 WYNN 1 225 TX LIPSCOMB STUART RANCH
</TABLE>
Page 15 of 15
<PAGE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ALLEN, BOBBIE LEE 23-15C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BACON ---------- ---------- 10.00 69.688
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 64.515
MISSISSIPPIAN EVANS GROSS CUM. MB & MMF 0.000 1897.154 20.00 60.139
GROSS RES. MB & MMF 0.000 84.575 25.00 56.397
SEQ: 342 GROSS ULT. MB & MMF 0.000 1981.729 30.00 53.165
INIT W.I 68.329 LIFE/YR 6.917 RATE-OF-RETURN, % 100.00
INIT N.I 49.125 OPC/W 1050 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.549 0.000 4.691 0.000 3.660 17.169 3.587 0.000 1.030 12.552
1997 0.000 19.601 0.000 9.629 0.000 3.660 35.242 8.609 0.000 2.115 24.518
1998 0.000 15.681 0.000 7.703 0.000 3.660 28.194 8.609 0.000 1.692 17.893
1999 0.000 12.545 0.000 6.163 0.000 3.660 22.555 8.609 0.000 1.353 12.592
2000 0.000 10.036 0.000 4.930 0.000 3.660 18.044 8.609 0.000 1.083 8.352
2001 0.000 8.029 0.000 3.944 0.000 3.660 14.435 8.609 0.000 0.866 4.960
2002 0.000 6.423 0.000 3.155 0.000 3.660 11.548 8.609 0.000 0.693 2.246
2003 0.000 2.712 0.000 1.332 0.000 3.660 4.877 4.305 0.000 0.293 0.279
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 84.576 0.000 41.547 0.000 3.660 152.064 59.546 0.000 9.125 83.392
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 84.576 0.000 41.547 0.000 3.660 152.064 59.546 0.000 9.125 83.392
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 12.552 12.310
1997 37.070 22.529
1998 54.963 14.950
1999 67.555 9.568
2000 75.907 5.773
2001 80.867 3.120
2002 83.113 1.289
2003 83.392 0.149
2004 83.392 0.000
2005 83.392 0.000
SUB 83.392 69.688
REM 83.392 0.000
TOT 83.392 69.688
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ALLEN, BOBBIE LEE 23-15T P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BACON ---------- ---------- 10.00 26.699
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 23.873
MISSISSIPPIAN ABERNA GROSS CUM. MB & MMF 0.000 3027.660 20.00 21.611
GROSS RES. MB & MMF 0.000 63.932 25.00 19.768
SEQ: 341 GROSS ULT. MB & MMF 0.000 3091.592 30.00 18.242
INIT W.I 68.329 LIFE/YR 10.250 RATE-OF-RETURN, % 100.00
INIT N.I 49.125 OPC/W 525 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 4.158 0.000 2.043 0.000 2.680 5.474 1.794 0.000 0.328 3.352
1997 0.000 9.265 0.000 4.552 0.000 2.680 12.198 4.305 0.000 0.732 7.162
1998 0.000 8.339 0.000 4.096 0.000 2.680 10.978 4.305 0.000 0.659 6.015
1999 0.000 7.505 0.000 3.687 0.000 2.680 9.881 4.305 0.000 0.593 4.983
2000 0.000 6.754 0.000 3.318 0.000 2.680 8.892 4.305 0.000 0.534 4.054
2001 0.000 6.079 0.000 2.986 0.000 2.680 8.003 4.305 0.000 0.480 3.218
2002 0.000 5.471 0.000 2.688 0.000 2.680 7.203 4.305 0.000 0.432 2.466
2003 0.000 4.924 0.000 2.419 0.000 2.680 6.483 4.305 0.000 0.389 1.789
2004 0.000 4.432 0.000 2.177 0.000 2.680 5.834 4.305 0.000 0.350 1.180
2005 0.000 3.988 0.000 1.959 0.000 2.680 5.251 4.305 0.000 0.315 0.631
SUB 0.000 60.915 0.000 29.925 0.000 2.680 80.197 40.539 0.000 4.812 34.850
REM 0.000 3.017 0.000 1.482 0.000 2.680 3.972 3.587 0.000 0.238 0.147
TOT 0.000 63.932 0.000 31.407 0.000 2.680 84.169 44.126 0.000 5.050 34.997
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.352 3.287
1997 10.514 6.574
1998 16.529 5.020
1999 21.512 3.781
2000 25.566 2.797
2001 28.784 2.019
2002 31.250 1.407
2003 33.039 0.928
2004 34.219 0.557
2005 34.850 0.272
SUB 34.850 26.642
REM 34.997 0.058
TOT 34.997 26.700
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ANDERSON 14-12 1-E P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
NETTLETON NORTH ---------- ---------- 10.00 80.714
MS, LEE GROSS WELLS 0.000 1.000 15.00 74.525
MISSISSIPPIAN EVANS GROSS CUM. MB & MMF 0.000 805.726 20.00 69.334
14 11S 6E GROSS RES. MB & MMF 0.000 67.566 25.00 64.926
SEQ: 337 GROSS ULT. MB & MMF 0.000 873.292 30.00 61.142
INIT W.I 100.000 LIFE/YR 8.000 RATE-OF-RETURN, % 100.00
INIT N.I 76.951 OPC/W 350 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 8.482 0.000 6.527 0.000 2.680 17.491 1.750 0.000 1.049 14.692
1997 0.000 16.650 0.000 12.813 0.000 2.680 34.338 4.200 0.000 2.060 28.078
1998 0.000 12.488 0.000 9.610 0.000 2.680 25.753 4.200 0.000 1.545 20.008
1999 0.000 9.366 0.000 7.207 0.000 2.680 19.315 4.200 0.000 1.159 13.956
2000 0.000 7.024 0.000 5.405 0.000 2.680 14.486 4.200 0.000 0.869 9.417
2001 0.000 5.268 0.000 4.054 0.000 2.680 10.865 4.200 0.000 0.652 6.013
2002 0.000 3.951 0.000 3.041 0.000 2.680 8.149 4.200 0.000 0.489 3.460
2003 0.000 2.963 0.000 2.280 0.000 2.680 6.111 4.200 0.000 0.367 1.545
2004 0.000 1.373 0.000 1.057 0.000 2.680 2.832 2.450 0.000 0.170 0.213
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 67.565 0.000 51.993 0.000 2.680 139.340 33.600 0.000 8.360 97.382
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 67.565 0.000 51.993 0.000 2.680 139.340 33.600 0.000 8.360 97.382
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 14.692 14.410
1997 42.770 25.805
1998 62.778 16.720
1999 76.734 10.604
2000 86.151 6.507
2001 92.164 3.779
2002 95.624 1.979
2003 97.169 0.806
2004 97.382 0.103
2005 97.382 0.000
SUB 97.382 80.713
REM 97.382 0.000
TOT 97.382 80.713
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
ANDERSON 14-12 1-E BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
NETTLETON NORTH ---------- ---------- 10.00 268.637
MS, LEE GROSS WELLS 0.000 1.000 15.00 168.463
CARTER GROSS CUM. MB & MMF 0.000 0.000 20.00 108.685
14 11S 6E GROSS RES. MB & MMF 0.000 425.000 25.00 71.888
SEQ: 596 GROSS ULT. MB & MMF 0.000 425.000 30.00 48.608
INIT W.I 100.000 LIFE/YR 17.750 RATE-OF-RETURN, % 100.00
INIT N.I 76.951 OPC/W 350 UNDISC NET/INVEST 30.11
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 42.947 0.000 33.049 0.000 2.680 88.570 1.750 0.000 5.314 81.506
2005 0.000 87.988 0.000 67.708 0.000 2.680 181.457 4.200 0.000 10.887 166.369
SUB 0.000 130.935 0.000 100.756 0.000 2.680 270.027 5.950 0.000 16.201 247.875
REM 0.000 294.066 0.000 226.287 0.000 2.680 606.450 35.000 26.000 36.388 509.063
TOT 0.000 425.001 0.000 327.043 0.000 2.680 876.477 40.950 26.000 52.589 756.938
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 81.506 37.289
2005 247.875 71.276
SUB 247.875 108.565
REM 756.938 160.070
TOT 756.938 268.635
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ANDERSON 14-12 1L P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
NETTLETON NORTH ---------- ---------- 10.00 244.162
MS, LEE ROSS WELLS 0.000 1.000 15.00 194.331
MISSISSIPPIAN LEWIS ROSS CUM. MB & MMF 0.000 266.514 20.00 162.208
14 11S 6E ROSS RES. MB & MMF 0.000 344.689 25.00 139.886
SEQ: 338 ROSS ULT. MB & MMF 0.000 611.203 30.00 123.501
NIT W.I 100.000 LIFE/YR 38.417 RATE-OF-RETURN, % 100.00
NIT N.I 76.951 OPC/W 350 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.671 0.000 7.442 0.000 2.660 19.795 1.750 0.000 1.188 16.857
1997 0.000 22.217 0.000 17.096 0.000 2.660 45.477 4.200 0.000 2.729 38.548
1998 0.000 20.884 0.000 16.071 0.000 2.660 42.748 4.200 0.000 2.565 35.983
1999 0.000 19.631 0.000 15.106 0.000 2.660 40.183 4.200 0.000 2.411 33.572
2000 0.000 18.453 0.000 14.200 0.000 2.660 37.772 4.200 0.000 2.266 31.306
2001 0.000 17.346 0.000 13.348 0.000 2.660 35.506 4.200 0.000 2.130 29.176
2002 0.000 16.305 0.000 12.547 0.000 2.660 33.376 4.200 0.000 2.003 27.173
2003 0.000 15.327 0.000 11.794 0.000 2.660 31.373 4.200 0.000 1.882 25.291
2004 0.000 14.407 0.000 11.087 0.000 2.660 29.491 4.200 0.000 1.769 23.521
2005 0.000 13.543 0.000 10.421 0.000 2.660 27.721 4.200 0.000 1.663 21.858
SUB 0.000 167.784 0.000 129.113 0.000 2.660 343.442 39.550 0.000 20.606 283.285
REM 0.000 176.901 0.000 136.130 0.000 2.660 362.103 121.800 0.000 21.726 218.577
TOT 0.000 344.685 0.000 265.243 0.000 2.660 705.545 161.350 0.000 42.332 501.862
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 16.857 16.528
1997 55.405 35.356
1998 91.388 30.003
1999 124.960 25.448
2000 156.266 21.573
2001 185.442 18.277
2002 212.615 15.475
2003 237.906 13.094
2004 261.427 11.071
2005 283.285 9.353
SUB 283.285 196.178
REM 501.862 47.983
TOT 501.862 244.161
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ANDERSON 7-2 P.W. % P.W., M$
ODEGARD ENERGY INC OIL GAS ------ --------
BALLS BRANCH (MISSISSIPPIAN LE ---------- ---------- 10.00 3.914
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 3.456
MSSN-LEWIS GROSS CUM. MB & MMF 0.000 581.770 20.00 3.093
7 12S 5E GROSS RES. MB & MMF 0.000 160.708 25.00 2.801
SEQ: 487 GROSS ULT. MB & MMF 0.000 742.478 30.00 2.563
ORRI. INIT W.I 0.000 LIFE/YR 8.167 RATE-OF-RETURN, % 100.00
INIT N.I 1.464 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 13.450 0.000 0.197 0.000 2.390 0.471 0.000 0.000 0.028 0.442
1997 0.000 28.456 0.000 0.417 0.000 2.390 0.996 0.000 0.000 0.060 0.936
1998 0.000 24.268 0.000 0.355 0.000 2.390 0.849 0.000 0.000 0.051 0.798
1999 0.000 21.114 0.000 0.309 0.000 2.390 0.739 0.000 0.000 0.044 0.694
2000 0.000 18.659 0.000 0.273 0.000 2.390 0.653 0.000 0.000 0.039 0.614
2001 0.000 16.736 0.000 0.245 0.000 2.390 0.586 0.000 0.000 0.035 0.550
2002 0.000 15.117 0.000 0.221 0.000 2.390 0.529 0.000 0.000 0.032 0.497
2003 0.000 13.605 0.000 0.199 0.000 2.390 0.476 0.000 0.000 0.029 0.447
2004 0.000 9.303 0.000 0.136 0.000 2.390 0.326 0.000 0.000 0.020 0.306
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 160.708 0.000 2.353 0.000 2.390 5.625 0.000 0.000 0.338 5.284
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 160.708 0.000 2.353 0.000 2.390 5.625 0.000 0.000 0.338 5.284
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.442 0.434
1997 1.378 0.859
1998 2.176 0.666
1999 2.870 0.527
2000 3.484 0.423
2001 4.034 0.345
2002 4.531 0.283
2003 4.978 0.232
2004 5.284 0.146
2005 5.284 0.000
SUB 5.284 3.915
REM 5.284 0.000
TOT 5.284 3.915
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BOYD 34-10 P.W. % P.W., M$
PRUET PRODUCTION CO OIL GAS ------ --------
DARBUN NORTH (MOORINGSPORT) ---------- ---------- 10.00 14.633
MS, WALTHALL GROSS WELLS 0.000 1.000 15.00 12.877
MOORINGSPORT GROSS CUM. MB & MMF 26.867 19412.442 20.00 11.541
34 4N 11E GROSS RES. MB & MMF 2.577 2147.246 25.00 10.492
SEQ: 641 GROSS ULT. MB & MMF 29.444 21559.688 30.00 9.648
INIT W.I 0.000 LIFE/YR 16.333 RATE-OF-RETURN, % 100.00
INIT N.I 0.403 OPC/W 2500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.235 195.759 0.001 0.789 19.737 2.490 1.983 0.000 0.000 0.119 1.864
1997 0.482 401.820 0.002 1.620 19.736 2.490 4.071 0.000 0.000 0.244 3.827
1998 0.386 321.456 0.002 1.296 19.738 2.490 3.257 0.000 0.000 0.195 3.062
1999 0.309 257.165 0.001 1.037 19.738 2.490 2.606 0.000 0.000 0.156 2.449
2000 0.247 205.732 0.001 0.829 19.742 2.490 2.084 0.000 0.000 0.125 1.959
2001 0.198 164.585 0.001 0.663 19.742 2.490 1.668 0.000 0.000 0.100 1.568
2002 0.158 131.668 0.001 0.531 19.736 2.490 1.334 0.000 0.000 0.080 1.254
2003 0.126 105.335 0.001 0.425 19.758 2.490 1.067 0.000 0.000 0.064 1.003
2004 0.101 84.268 0.000 0.340 19.721 2.490 0.854 0.000 0.000 0.051 0.803
2005 0.081 67.414 0.000 0.272 19.745 2.490 0.683 0.000 0.000 0.041 0.642
SUB 2.323 1935.202 0.009 7.800 19.739 2.490 19.607 0.000 0.000 1.175 18.431
REM 0.255 212.043 0.001 0.855 19.733 2.490 2.148 0.000 0.000 0.129 2.020
TOT 2.578 2147.245 0.010 8.655 19.738 2.490 21.755 0.000 0.000 1.304 20.451
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.864 1.828
1997 5.691 3.514
1998 8.753 2.556
1999 11.202 1.859
2000 13.161 1.352
2001 14.729 0.983
2002 15.983 0.715
2003 16.986 0.520
2004 17.789 0.378
2005 18.431 0.275
SUB 18.431 13.980
REM 20.451 0.652
TOT 20.451 14.632
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BOYTE P.W. % P.W., M$
B & M RESOURCES INC OIL GAS ------ --------
ROXIE (WILCOX) ---------- ---------- 10.00 8.888
MS, FRANKLIN GROSS WELLS 1.000 0.000 15.00 7.518
WILCOX GROSS CUM. MB & MMF 276.248 0.000 20.00 6.529
29 6N 2E GROSS RES. MB & MMF 19.267 0.000 25.00 5.788
SEQ: 488 GROSS ULT. MB & MMF 295.515 0.000 30.00 5.215
ORRI INIT W.I 0.000 LIFE/YR 16.167 RATE-OF-RETURN, % 100.00
INIT N.I 3.819 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.144 0.000 0.044 0.000 20.140 0.000 0.880 0.000 0.000 0.053 0.827
1997 2.510 0.000 0.096 0.000 20.140 0.000 1.930 0.000 0.000 0.116 1.814
1998 2.209 0.000 0.084 0.000 20.140 0.000 1.699 0.000 0.000 0.102 1.597
1999 1.944 0.000 0.074 0.000 20.140 0.000 1.495 0.000 0.000 0.090 1.405
2000 1.710 0.000 0.065 0.000 20.140 0.000 1.315 0.000 0.000 0.079 1.237
2001 1.505 0.000 0.057 0.000 20.140 0.000 1.158 0.000 0.000 0.069 1.088
2002 1.325 0.000 0.051 0.000 20.140 0.000 1.019 0.000 0.000 0.061 0.958
2003 1.166 0.000 0.045 0.000 20.140 0.000 0.896 0.000 0.000 0.054 0.843
2004 1.026 0.000 0.039 0.000 20.140 0.000 0.789 0.000 0.000 0.047 0.742
2005 0.903 0.000 0.034 0.000 20.140 0.000 0.694 0.000 0.000 0.042 0.653
SUB 15.442 0.000 0.590 0.000 20.140 0.000 11.875 0.000 0.000 0.713 11.164
REM 3.825 0.000 0.146 0.000 20.140 0.000 2.942 0.000 0.000 0.176 2.765
TOT 19.267 0.000 0.736 0.000 20.140 0.000 14.817 0.000 0.000 0.889 13.929
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.827 0.811
1997 2.641 1.665
1998 4.238 1.332
1999 5.643 1.066
2000 6.880 0.852
2001 7.968 0.682
2002 8.926 0.546
2003 9.769 0.436
2004 10.511 0.349
2005 11.164 0.279
SUB 11.164 8.018
REM 13.929 0.869
TOT 13.929 8.887
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BROOKHAVEN FIELD UNIT P.W. % P.W., M$
HARRIS OPERATING CO OIL GAS ------ --------
BROOKHAVEN (TUSCALOOSA LWR) ---------- ---------- 10.00 0.000
MS, LINCOLN GROSS WELLS 1.000 0.000 15.00 0.000
TSCL LWR GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
33 8N 7E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 642 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES. INIT W.I 0.000 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.070 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
BRUMFIELD #B-22 PUD P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY ---------- ---------- 10.00 723.798
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 533.682
UPPER TUSC GROSS CUM. MB & MMF 0.000 0.000 20.00 400.862
2-10N-3W GROSS RES. MB & MMF 184.094 0.000 25.00 304.471
SEQ: 273 GROSS ULT. MB & MMF 184.094 0.000 30.00 232.328
INIT W.I 100.000 LIFE/YR 21.417 RATE-OF-RETURN, % 70.11
INIT N.I 76.517 OPC/W 2962 UNDISC NET/INVEST 4.47
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 12.390 0.000 9.481 0.000 19.760 0.000 187.338 20.734 422.000 11.240 -266.636
1998 19.547 0.000 14.957 0.000 19.760 0.000 295.541 35.544 0.000 17.732 242.265
1999 17.592 0.000 13.461 0.000 19.760 0.000 265.987 35.544 0.000 15.959 214.484
2000 15.833 0.000 12.115 0.000 19.760 0.000 239.388 35.544 0.000 14.363 189.481
2001 14.250 0.000 10.903 0.000 19.760 0.000 215.449 35.544 0.000 12.927 166.979
2002 12.825 0.000 9.813 0.000 19.760 0.000 193.905 35.544 0.000 11.634 146.726
2003 11.542 0.000 8.832 0.000 19.760 0.000 174.514 35.544 0.000 10.471 128.499
2004 10.388 0.000 7.949 0.000 19.760 0.000 157.063 35.544 0.000 9.424 112.095
2005 9.349 0.000 7.154 0.000 19.760 0.000 141.356 35.544 0.000 8.481 97.331
SUB 123.716 0.000 94.663 0.000 19.760 0.000 1870.541 305.086 422.000 112.231 1031.224
REM 60.380 0.000 46.199 0.000 19.760 0.000 912.899 426.528 0.000 54.774 431.598
TOT 184.096 0.000 140.862 0.000 19.760 0.000 2783.440 731.614 422.000 167.005 1462.822
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -266.636 -250.150
1998 -24.371 202.083
1999 190.113 162.648
2000 379.594 130.628
2001 546.573 104.652
2002 693.299 83.601
2003 821.798 66.562
2004 933.893 52.788
2005 1031.224 41.670
SUB 1031.224 594.482
REM 1462.822 129.317
TOT 1462.822 723.799
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
L-POSSIBLE UNDEVE PRIMARY
BRUMFIELD #B-23 POSS P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY ---------- ---------- 10.00 1484.126
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 1085.944
POWELL GROSS CUM. MB & MMF 0.000 0.000 20.00 821.056
2-10N-3W GROSS RES. MB & MMF 322.628 0.000 25.00 636.349
SEQ: 274 GROSS ULT. MB & MMF 322.628 0.000 30.00 502.720
INIT W.I 100.000 LIFE/YR 27.250 RATE-OF-RETURN, % 100.00
INIT N.I 76.517 OPC/W 2962 UNDISC NET/INVEST 7.97
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 20.651 0.000 15.801 0.000 19.760 0.000 312.231 20.734 462.000 18.734 -189.237
1999 32.578 0.000 24.928 0.000 19.760 0.000 492.568 35.544 0.000 29.554 427.470
2000 29.320 0.000 22.435 0.000 19.760 0.000 443.312 35.544 0.000 26.599 381.169
2001 26.388 0.000 20.191 0.000 19.760 0.000 398.980 35.544 0.000 23.939 339.498
2002 23.749 0.000 18.172 0.000 19.760 0.000 359.082 35.544 0.000 21.545 301.993
2003 21.374 0.000 16.355 0.000 19.760 0.000 323.174 35.544 0.000 19.390 268.240
2004 19.237 0.000 14.719 0.000 19.760 0.000 290.857 35.544 0.000 17.451 237.861
2005 17.313 0.000 13.248 0.000 19.760 0.000 261.771 35.544 0.000 15.706 210.521
SUB 190.610 0.000 145.849 0.000 19.760 0.000 2881.975 269.542 462.000 172.918 1977.515
REM 132.018 0.000 101.015 0.000 19.760 0.000 1996.063 633.868 0.000 119.763 1242.432
TOT 322.628 0.000 246.864 0.000 19.760 0.000 4878.038 903.410 462.000 292.681 3219.947
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 -189.237 -165.083
1999 238.233 324.139
2000 619.402 262.757
2001 958.900 212.757
2002 1260.893 172.051
2003 1529.133 138.930
2004 1766.994 111.998
2005 1977.515 90.115
SUB 1977.515 1147.664
REM 3219.947 336.463
TOT 3219.947 1484.127
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRUMFIELD B-13 P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY NORTH ---------- ---------- 10.00 114.898
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 108.420
SELMA EUTAW TUSC GROSS CUM. MB & MMF 277.206 0.000 20.00 102.755
2-10N-3W GROSS RES. MB & MMF 21.087 0.000 25.00 97.764
SEQ: 358 GROSS ULT. MB & MMF 298.293 0.000 30.00 93.337
INIT W.I 100.000 LIFE/YR 4.750 RATE-OF-RETURN, % 100.00
INIT N.I 76.500 OPC/W 2952 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.865 0.000 2.192 0.000 19.740 0.000 43.261 14.760 0.000 2.596 25.905
1997 5.880 0.000 4.498 0.000 19.740 0.000 88.799 35.424 0.000 5.328 48.047
1998 4.704 0.000 3.599 0.000 19.740 0.000 71.039 35.424 0.000 4.262 31.353
1999 3.763 0.000 2.879 0.000 19.740 0.000 56.831 35.424 0.000 3.410 17.997
2000 3.011 0.000 2.303 0.000 19.740 0.000 45.465 35.424 0.000 2.728 7.313
2001 0.863 0.000 0.660 0.000 19.740 0.000 13.036 11.808 0.000 0.782 0.446
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 21.086 0.000 16.131 0.000 19.740 0.000 318.431 168.264 0.000 19.106 131.061
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 21.086 0.000 16.131 0.000 19.740 0.000 318.431 168.264 0.000 19.106 131.061
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 25.905 25.409
1997 73.952 44.178
1998 105.305 26.226
1999 123.302 13.706
2000 130.615 5.088
2001 131.061 0.290
2002 131.061 0.000
2003 131.061 0.000
2004 131.061 0.000
2005 131.061 0.000
SUB 131.061 114.897
REM 131.061 0.000
TOT 131.061 114.897
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRUMFIELD B-2 P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY NORTH ---------- ---------- 10.00 81.136
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 73.892
SELMA EUTAW TUSC GROSS CUM. MB & MMF 370.094 0.000 20.00 67.700
2-10N-3W GROSS RES. MB & MMF 21.610 0.000 25.00 62.359
SEQ: 359 GROSS ULT. MB & MMF 391.704 0.000 30.00 57.715
APPRAISAL ASSUMES PUMP REPAIR. INIT W.I 100.000 LIFE/YR 5.750 RATE-OF-RETURN, % 100.00
INIT N.I 76.512 OPC/W 2952 UNDISC NET/INVEST 7.66
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.497 0.000 0.380 0.000 19.740 0.000 7.501 2.952 15.000 0.450 -10.901
1997 5.463 0.000 4.180 0.000 19.740 0.000 82.515 35.424 0.000 4.951 42.140
1998 4.644 0.000 3.553 0.000 19.740 0.000 70.138 35.424 0.000 4.208 30.505
1999 3.947 0.000 3.020 0.000 19.740 0.000 59.617 35.424 0.000 3.577 20.616
2000 3.355 0.000 2.567 0.000 19.740 0.000 50.675 35.424 0.000 3.040 12.210
2001 2.852 0.000 2.182 0.000 19.740 0.000 43.073 35.424 0.000 2.584 5.065
2002 0.852 0.000 0.652 0.000 19.740 0.000 12.871 11.808 0.000 0.772 0.291
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 21.610 0.000 16.534 0.000 19.740 0.000 326.390 191.880 15.000 19.582 99.926
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 21.610 0.000 16.534 0.000 19.740 0.000 326.390 191.880 15.000 19.582 99.926
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 -10.901 -10.576
1997 31.239 38.720
1998 61.744 25.492
1999 82.360 15.673
2000 94.570 8.451
2001 99.635 3.204
2002 99.926 0.172
2003 99.926 0.000
2004 99.926 0.000
2005 99.926 0.000
SUB 99.926 81.136
REM 99.926 0.000
TOT 99.926 81.136
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRUMFIELD B-20 P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY ---------- ---------- 10.00 91.710
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 87.589
SELMA EUTAW TUSC GROSS CUM. MB & MMF 6.125 0.000 20.00 83.915
2-10N-3W GROSS RES. MB & MMF 16.312 0.000 25.00 80.621
SEQ: 362 GROSS ULT. MB & MMF 22.437 0.000 30.00 77.651
INIT W.I 100.000 LIFE/YR 3.667 RATE-OF-RETURN, % 100.00
INIT N.I 76.500 OPC/W 2952 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.827 0.000 2.163 0.000 19.740 0.000 42.693 14.760 0.000 2.562 25.372
1997 5.550 0.000 4.246 0.000 19.740 0.000 83.813 35.424 0.000 5.029 43.360
1998 4.163 0.000 3.184 0.000 19.740 0.000 62.860 35.424 0.000 3.772 23.664
1999 3.122 0.000 2.388 0.000 19.740 0.000 47.145 35.424 0.000 2.829 8.892
2000 0.650 0.000 0.497 0.000 19.740 0.000 9.815 8.856 0.000 0.589 0.370
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 16.312 0.000 12.478 0.000 19.740 0.000 246.326 129.888 0.000 14.781 101.658
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 16.312 0.000 12.478 0.000 19.740 0.000 246.326 129.888 0.000 14.781 101.658
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 25.372 24.890
1997 68.732 39.911
1998 92.396 19.832
1999 101.288 6.813
2000 101.658 0.265
2001 101.658 0.000
2002 101.658 0.000
2003 101.658 0.000
2004 101.658 0.000
2005 101.658 0.000
SUB 101.658 91.711
REM 101.658 0.000
TOT 101.658 91.711
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRUMFIELD B-5 P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY NORTH ---------- ---------- 10.00 524.319
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 455.019
SELMA EUTAW TUSC GROSS CUM. MB & MMF 705.210 0.000 20.00 402.508
2-10N-3W GROSS RES. MB & MMF 90.238 0.000 25.00 361.601
SEQ: 361 GROSS ULT. MB & MMF 795.448 0.000 30.00 328.970
INIT W.I 100.000 LIFE/YR 14.917 RATE-OF-RETURN, % 100.00
INIT N.I 76.500 OPC/W 2952 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.892 0.000 3.742 0.000 19.740 0.000 73.872 14.760 0.000 4.432 54.680
1997 10.900 0.000 8.339 0.000 19.740 0.000 164.606 35.424 0.000 9.876 119.306
1998 9.810 0.000 7.505 0.000 19.740 0.000 148.146 35.424 0.000 8.889 103.833
1999 8.829 0.000 6.754 0.000 19.740 0.000 133.331 35.424 0.000 8.000 89.907
2000 7.946 0.000 6.079 0.000 19.740 0.000 119.998 35.424 0.000 7.200 77.374
2001 7.152 0.000 5.471 0.000 19.740 0.000 107.998 35.424 0.000 6.480 66.094
2002 6.437 0.000 4.924 0.000 19.740 0.000 97.198 35.424 0.000 5.832 55.942
2003 5.793 0.000 4.432 0.000 19.740 0.000 87.479 35.424 0.000 5.249 46.806
2004 5.214 0.000 3.988 0.000 19.740 0.000 78.731 35.424 0.000 4.724 38.583
2005 4.692 0.000 3.590 0.000 19.740 0.000 70.858 35.424 0.000 4.251 31.182
SUB 71.665 0.000 54.824 0.000 19.740 0.000 1082.217 333.576 0.000 64.933 683.707
REM 18.575 0.000 14.209 0.000 19.740 0.000 280.477 194.832 0.000 16.827 68.816
TOT 90.240 0.000 69.032 0.000 19.740 0.000 1362.694 528.408 0.000 81.760 752.523
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 54.680 53.618
1997 173.986 109.484
1998 277.819 86.626
1999 367.726 68.192
2000 445.100 53.354
2001 511.194 41.435
2002 567.136 31.885
2003 613.942 24.255
2004 652.525 18.178
2005 683.707 13.358
SUB 683.707 500.385
REM 752.523 23.935
TOT 752.523 524.320
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRUMFIELD B-6 P.W. % P.W., M$
LATEX OIL GAS ------ --------
TINSLEY NORTH ---------- ---------- 10.00 93.523
MS, YAZOO GROSS WELLS 1.000 0.000 15.00 82.762
SELMA EUTAW TUSC GROSS CUM. MB & MMF 200.296 0.000 20.00 74.264
2-10N-3W GROSS RES. MB & MMF 35.490 0.000 25.00 67.423
SEQ: 360 GROSS ULT. MB & MMF 235.786 0.000 30.00 61.820
INIT W.I 100.000 LIFE/YR 10.667 RATE-OF-RETURN, % 100.00
INIT N.I 76.500 OPC/W 2952 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.781 0.000 1.362 0.000 19.740 0.000 26.894 14.760 0.000 1.614 10.520
1997 4.122 0.000 3.153 0.000 19.740 0.000 62.247 35.424 0.000 3.735 23.088
1998 3.916 0.000 2.996 0.000 19.740 0.000 59.135 35.424 0.000 3.548 20.163
1999 3.720 0.000 2.846 0.000 19.740 0.000 56.178 35.424 0.000 3.371 17.383
2000 3.534 0.000 2.704 0.000 19.740 0.000 53.369 35.424 0.000 3.202 14.743
2001 3.357 0.000 2.568 0.000 19.740 0.000 50.701 35.424 0.000 3.042 12.235
2002 3.190 0.000 2.440 0.000 19.740 0.000 48.166 35.424 0.000 2.890 9.852
2003 3.030 0.000 2.318 0.000 19.740 0.000 45.757 35.424 0.000 2.745 7.588
2004 2.879 0.000 2.202 0.000 19.740 0.000 43.470 35.424 0.000 2.608 5.437
2005 2.735 0.000 2.092 0.000 19.740 0.000 41.296 35.424 0.000 2.478 3.394
SUB 32.264 0.000 24.681 0.000 19.740 0.000 487.213 333.576 0.000 29.233 124.403
REM 3.227 0.000 2.469 0.000 19.740 0.000 48.728 44.280 0.000 2.924 1.525
TOT 35.491 0.000 27.150 0.000 19.740 0.000 535.941 377.856 0.000 32.157 125.928
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 10.520 10.315
1997 33.608 21.186
1998 53.771 16.821
1999 71.154 13.186
2000 85.897 10.168
2001 98.132 7.672
2002 107.984 5.618
2003 115.572 3.935
2004 121.009 2.566
2005 124.403 1.458
SUB 124.403 92.925
REM 125.928 0.597
TOT 125.928 93.522
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRYAN CV UNIT 7 P.W. % P.W., M$
E P OPERATING OIL GAS ------ --------
BRYAN ---------- ---------- 10.00 32.750
MS, JONES GROSS WELLS 1.000 0.000 15.00 27.170
COTTON VALLEY A GROSS CUM. MB & MMF 354.933 25.470 20.00 23.246
23-10N-10W GROSS RES. MB & MMF 69.116 0.000 25.00 20.362
SEQ: 489 GROSS ULT. MB & MMF 424.049 25.470 30.00 18.166
INIT W.I 13.004 LIFE/YR 20.833 RATE-OF-RETURN, % 100.00
INIT N.I 10.449 OPC/W 2133 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.226 0.000 0.233 0.000 18.240 0.000 4.243 1.387 0.000 0.255
1997 5.153 0.000 0.538 0.000 18.240 0.000 9.820 3.329 0.000 0.589
1998 4.895 0.000 0.511 0.000 18.240 0.000 9.329 3.329 0.000 0.560
1999 4.650 0.000 0.486 0.000 18.240 0.000 8.863 3.329 0.000 0.532
2000 4.418 0.000 0.462 0.000 18.240 0.000 8.420 3.329 0.000 0.505
2001 4.197 0.000 0.439 0.000 18.240 0.000 7.999 3.329 0.000 0.480
2002 3.987 0.000 0.417 0.000 18.240 0.000 7.599 3.329 0.000 0.456
2003 3.788 0.000 0.396 0.000 18.240 0.000 7.219 3.329 0.000 0.433
2004 3.598 0.000 0.376 0.000 18.240 0.000 6.858 3.329 0.000 0.411
2005 3.418 0.000 0.357 0.000 18.240 0.000 6.515 3.329 0.000 0.391
SUB 40.330 0.000 4.214 0.000 18.240 0.000 76.865 31.348 0.000 4.612
REM 28.786 0.000 3.008 0.000 18.240 0.000 54.866 38.006 0.000 3.289
TOT 69.116 0.000 7.222 0.000 18.240 0.000 131.731 69.354 0.000 7.901
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 2.601 2.601 2.551
1997 5.903 8.504 5.414
1998 5.441 13.945 4.537
1999 5.003 18.948 3.792
2000 4.586 23.534 3.161
2001 4.190 27.724 2.625
2002 3.814 31.538 2.173
2003 3.457 34.995 1.790
2004 3.118 38.113 1.468
2005 2.796 40.909 1.197
SUB 40.909 40.909 28.708
REM 13.572 54.481 4.042
TOT 54.481 54.481 32.750
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
<S> <C>
A-PROVED DEVE PRODUCING
BRYAN CV UNIT 10 P.W. % P.W., M$
E P OPERATING OIL GAS ------ --------
BRYAN ---------- ---------- 10.00 0.000
MS, JONES GROSS WELLS 1.000 0.000 15.00 0.000
COTTON VALLEY A GROSS CUM. MB & MMF 229.494 18.551 20.00 0.000
23-10N-10W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 491 GROSS ULT. MB & MMF 229.494 18.551 30.00 0.000
INIT W.I 14.578 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 12.470 OPC/W 2224 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRYAN CV UNIT 5 P.W. % P.W., M$
E P OPERATING OIL GAS ------ --------
BRYAN ---------- ---------- 10.00 55.370
MS, JONES GROSS WELLS 1.000 0.000 15.00 48.645
COTTON VALLEY A GROSS CUM. MB & MMF 477.112 38.727 20.00 43.430
23-10N-10W GROSS RES. MB & MMF 58.920 0.000 25.00 39.292
SEQ: 230 GROSS ULT. MB & MMF 536.032 38.727 30.00 35.941
INIT W.I 17.770 LIFE/YR 12.750 RATE-OF-RETURN, % 100.00
INIT N.I 14.570 OPC/W 2528 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.424 0.000 0.499 0.000 17.990 0.000 8.976 2.246 0.000 0.539 6.191
1997 7.630 0.000 1.112 0.000 17.990 0.000 20.000 5.391 0.000 1.200 13.409
1998 6.867 0.000 1.001 0.000 17.990 0.000 18.000 5.391 0.000 1.080 11.529
1999 6.180 0.000 0.900 0.000 17.990 0.000 16.200 5.391 0.000 0.972 9.837
2000 5.562 0.000 0.810 0.000 17.990 0.000 14.580 5.391 0.000 0.875 8.314
2001 5.006 0.000 0.729 0.000 17.990 0.000 13.122 5.391 0.000 0.787 6.944
2002 4.506 0.000 0.656 0.000 17.990 0.000 11.810 5.391 0.000 0.709 5.710
2003 4.055 0.000 0.591 0.000 17.990 0.000 10.629 5.391 0.000 0.638 4.600
2004 3.649 0.000 0.532 0.000 17.990 0.000 9.566 5.391 0.000 0.574 3.601
2005 3.285 0.000 0.479 0.000 17.990 0.000 8.609 5.391 0.000 0.517 2.702
SUB 50.164 0.000 7.309 0.000 17.990 0.000 131.492 50.765 0.000 7.891 72.837
REM 8.754 0.000 1.276 0.000 17.990 0.000 22.947 17.970 0.000 1.377 3.601
TOT 58.918 0.000 8.585 0.000 17.990 0.000 154.439 68.735 0.000 9.268 76.438
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 6.191 6.071
1997 19.600 12.306
1998 31.129 9.620
1999 40.966 7.462
2000 49.280 5.734
2001 56.224 4.354
2002 61.934 3.256
2003 66.534 2.385
2004 70.135 1.698
2005 72.837 1.158
SUB 72.837 54.044
REM 76.438 1.327
TOT 76.438 55.371
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BRYAN CV UNIT 8 P.W. % P.W., M$
E P OPERATING OIL GAS ------ --------
BRYAN ---------- ---------- 10.00 0.000
MS, JONES GROSS WELLS 1.000 0.000 15.00 0.000
COTTON VALLEY A GROSS CUM. MB & MMF 500.593 74.263 20.00 0.000
25-10N-10W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 490 GROSS ULT. MB & MMF 500.593 74.263 30.00 0.000
NO RESERVES. INIT W.I 13.004 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 10.449 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CORLEY 6-1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BALLS BRANCH ---------- ---------- 10.00 150.796
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 136.056
MISSISSIPPIAN LEWIS GROSS CUM. MB & MMF 0.000 2435.944 20.00 124.209
6 12S 5E GROSS RES. MB & MMF 0.000 150.584 25.00 114.507
SEQ: 323 GROSS ULT. MB & MMF 0.000 2586.528 30.00 106.433
INIT W.I 83.964 LIFE/YR 11.667 RATE-OF-RETURN, % 100.00
INIT N.I 62.070 OPC/W 383 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 15.049 0.000 9.341 0.000 2.720 25.407 1.608 0.000 1.524 22.275
1997 0.000 30.622 0.000 19.007 0.000 2.720 51.699 3.859 0.000 3.102 44.738
1998 0.000 24.191 0.000 15.015 0.000 2.720 40.842 3.859 0.000 2.451 34.533
1999 0.000 19.111 0.000 11.862 0.000 2.720 32.265 3.859 0.000 1.936 26.470
2000 0.000 15.098 0.000 9.371 0.000 2.720 25.490 3.859 0.000 1.529 20.101
2001 0.000 11.927 0.000 7.403 0.000 2.720 20.137 3.859 0.000 1.208 15.070
2002 0.000 9.423 0.000 5.849 0.000 2.720 15.908 3.859 0.000 0.954 11.095
2003 0.000 7.444 0.000 4.620 0.000 2.720 12.567 3.859 0.000 0.754 7.954
2004 0.000 5.881 0.000 3.650 0.000 2.720 9.928 3.859 0.000 0.596 5.474
2005 0.000 4.646 0.000 2.884 0.000 2.720 7.843 3.859 0.000 0.471 3.514
SUB 0.000 143.392 0.000 89.002 0.000 2.720 242.086 36.339 0.000 14.525 191.224
REM 0.000 7.193 0.000 4.465 0.000 2.720 12.145 8.683 0.000 0.729 2.733
TOT 0.000 150.585 0.000 93.467 0.000 2.720 254.231 45.022 0.000 15.254 193.957
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 22.275 21.845
1997 67.013 41.093
1998 101.546 28.837
1999 128.016 20.096
2000 148.117 13.875
2001 163.187 9.457
2002 174.282 6.331
2003 182.236 4.127
2004 187.710 2.583
2005 191.224 1.508
SUB 191.224 149.752
REM 193.957 1.042
TOT 193.957 150.794
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DABBS 24-6 P.W. % P.W., M$
MOON HINES TIGRETT INC OIL GAS ------ --------
NETTLETON NORTH (MISSISSIPPIAN ---------- ---------- 10.00 51.942
MS, LEE GROSS WELLS 0.000 1.000 15.00 40.333
MSSN-LEWIS GROSS CUM. MB & MMF 0.000 625.649 20.00 33.094
24 11S 6E GROSS RES. MB & MMF 0.000 748.900 25.00 28.199
SEQ: 492 GROSS ULT. MB & MMF 0.000 1374.549 30.00 24.680
ORRI INIT W.I 0.000 LIFE/YR 28.000 RATE-OF-RETURN, % 100.00
INIT N.I 6.144 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 20.777 0.000 1.277 0.000 2.660 3.396 0.000 0.000 0.204 3.192
1997 0.000 48.090 0.000 2.955 0.000 2.660 7.859 0.000 0.000 0.472 7.388
1998 0.000 45.686 0.000 2.807 0.000 2.660 7.466 0.000 0.000 0.448 7.018
1999 0.000 43.402 0.000 2.667 0.000 2.660 7.093 0.000 0.000 0.426 6.667
2000 0.000 41.231 0.000 2.533 0.000 2.660 6.738 0.000 0.000 0.404 6.334
2001 0.000 39.170 0.000 2.407 0.000 2.660 6.401 0.000 0.000 0.384 6.017
2002 0.000 37.211 0.000 2.286 0.000 2.660 6.081 0.000 0.000 0.365 5.717
2003 0.000 35.351 0.000 2.172 0.000 2.660 5.777 0.000 0.000 0.347 5.431
2004 0.000 33.583 0.000 2.063 0.000 2.660 5.488 0.000 0.000 0.329 5.159
2005 0.000 31.904 0.000 1.960 0.000 2.660 5.214 0.000 0.000 0.313 4.901
SUB 0.000 376.405 0.000 23.126 0.000 2.660 61.513 0.000 0.000 3.692 57.824
REM 0.000 372.495 0.000 22.886 0.000 2.660 60.877 0.000 0.000 3.653 57.223
TOT 0.000 748.900 0.000 46.012 0.000 2.660 122.390 0.000 0.000 7.345 115.047
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.192 3.130
1997 10.580 6.775
1998 17.598 5.851
1999 24.265 5.053
2000 30.599 4.364
2001 36.616 3.769
2002 42.333 3.255
2003 47.764 2.811
2004 52.923 2.428
2005 57.824 2.097
SUB 57.824 39.533
REM 115.047 12.408
TOT 115.047 51.941
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DALLAS 5-4 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BALLS BRANCH ---------- ---------- 10.00 296.033
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 256.513
MISSISSIPPIAN LEWIS GROSS CUM. MB & MMF 0.000 2152.043 20.00 226.947
5 12S 5E GROSS RES. MB & MMF 0.000 275.847 25.00 204.097
SEQ: 324 GROSS ULT. MB & MMF 0.000 2427.890 30.00 185.955
INIT W.I 91.667 LIFE/YR 18.333 RATE-OF-RETURN, % 100.00
INIT N.I 75.156 OPC/W 491 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 17.931 0.000 13.476 0.000 2.720 36.655 2.250 0.000 2.199 32.205
1997 0.000 38.704 0.000 29.088 0.000 2.720 79.119 5.401 0.000 4.747 68.971
1998 0.000 33.285 0.000 25.016 0.000 2.720 68.043 5.401 0.000 4.083 58.559
1999 0.000 28.625 0.000 21.513 0.000 2.720 58.517 5.401 0.000 3.511 49.605
2000 0.000 24.618 0.000 18.502 0.000 2.720 50.324 5.401 0.000 3.019 41.904
2001 0.000 21.171 0.000 15.911 0.000 2.720 43.279 5.401 0.000 2.597 35.281
2002 0.000 18.207 0.000 13.684 0.000 2.720 37.220 5.401 0.000 2.233 29.586
2003 0.000 15.658 0.000 11.768 0.000 2.720 32.009 5.401 0.000 1.921 24.687
2004 0.000 13.466 0.000 10.121 0.000 2.720 27.528 5.401 0.000 1.652 20.475
2005 0.000 11.581 0.000 8.704 0.000 2.720 23.674 5.401 0.000 1.420 16.852
SUB 0.000 223.246 0.000 167.782 0.000 2.720 456.368 50.859 0.000 27.382 378.125
REM 0.000 52.602 0.000 39.533 0.000 2.720 107.532 48.159 0.000 6.452 52.921
TOT 0.000 275.848 0.000 207.315 0.000 2.720 563.900 99.018 0.000 33.834 431.046
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 32.205 31.580
1997 101.176 63.306
1998 159.735 48.863
1999 209.340 37.629
2000 251.244 28.899
2001 286.525 22.120
2002 316.111 16.863
2003 340.798 12.793
2004 361.273 9.646
2005 378.125 7.218
SUB 378.125 278.917
REM 431.046 17.114
TOT 431.046 296.031
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
DALLAS 5-4 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BALLS BRANCH ---------- ---------- 10.00 631.735
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 509.698
UPPER LEWIS GROSS CUM. MB & MMF 0.000 0.000 20.00 420.823
5 12S 5E GROSS RES. MB & MMF 0.000 600.000 25.00 354.014
SEQ: 620 GROSS ULT. MB & MMF 0.000 600.000 30.00 302.426
COMMINGLE. INIT W.I 91.667 LIFE/YR 14.833 RATE-OF-RETURN, % 100.00
INIT N.I 75.156 OPC/W 0 UNDISC NET/INVEST 13.10
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 35.057 0.000 26.347 0.000 2.720 71.664 0.000 88.001 4.300 -20.636
1998 0.000 94.620 0.000 71.112 0.000 2.720 193.424 0.000 0.000 11.605 181.819
1999 0.000 80.629 0.000 60.598 0.000 2.720 164.825 0.000 0.000 9.890 154.936
2000 0.000 68.708 0.000 51.638 0.000 2.720 140.455 0.000 0.000 8.427 132.028
2001 0.000 58.549 0.000 44.003 0.000 2.720 119.688 0.000 0.000 7.181 112.507
2002 0.000 49.892 0.000 37.497 0.000 2.720 101.991 0.000 0.000 6.119 95.872
2003 0.000 42.515 0.000 31.953 0.000 2.720 86.911 0.000 0.000 5.215 81.697
2004 0.000 36.229 0.000 27.228 0.000 2.720 74.061 0.000 0.000 4.444 69.617
2005 0.000 30.872 0.000 23.202 0.000 2.720 63.111 0.000 0.000 3.787 59.324
SUB 0.000 497.071 0.000 373.578 0.000 2.720 1016.130 0.000 88.001 60.968 867.164
REM 0.000 102.928 0.000 77.356 0.000 2.720 210.409 0.000 0.000 12.625 197.784
TOT 0.000 599.999 0.000 450.934 0.000 2.720 1226.539 0.000 88.001 73.593 1064.948
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -20.636 -19.559
1998 161.183 151.710
1999 316.119 117.526
2000 448.147 91.045
2001 560.654 70.530
2002 656.526 54.638
2003 738.223 42.327
2004 807.840 32.790
2005 867.164 25.401
SUB 867.164 566.408
REM 1064.948 65.327
TOT 1064.948 631.735
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FARNED, LILLIAN P. 1-U P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BACON ---------- ---------- 10.00 24.503
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 23.642
MISSISSIPPIAN ABERNA GROSS CUM. MB & MMF 0.000 2416.496 20.00 22.861
23 12S 4E GROSS RES. MB & MMF 0.000 31.924 25.00 22.149
SEQ: 322 GROSS ULT. MB & MMF 0.000 2448.420 30.00 21.499
INIT W.I 124.216 LIFE/YR 2.750 RATE-OF-RETURN, % 100.00
INIT N.I 96.541 OPC/W 1247 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 6.597 0.000 6.369 0.000 2.680 17.068 7.745 0.000 1.024 8.299
1997 0.000 12.950 0.000 12.502 0.000 2.680 33.506 18.588 0.000 2.010 12.908
1998 0.000 9.713 0.000 9.377 0.000 2.680 25.130 18.588 0.000 1.508 5.034
1999 0.000 2.664 0.000 2.572 0.000 2.680 6.894 6.196 0.000 0.414 0.284
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 31.924 0.000 30.820 0.000 2.680 82.598 51.117 0.000 4.956 26.525
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 31.924 0.000 30.820 0.000 2.680 82.598 51.117 0.000 4.956 26.525
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.299 8.142
1997 21.207 11.898
1998 26.241 4.240
1999 26.525 0.223
2000 26.525 0.000
2001 26.525 0.000
2002 26.525 0.000
2003 26.525 0.000
2004 26.525 0.000
2005 26.525 0.000
SUB 26.525 24.503
REM 26.525 0.000
TOT 26.525 24.503
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
FARNED, LILLIAN P. 1-U BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BACON ---------- ---------- 10.00 222.281
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 190.848
CYPRESS GROSS CUM. MB & MMF 0.000 0.000 20.00 165.981
23 12S 4E GROSS RES. MB & MMF 0.000 349.503 25.00 145.957
SEQ: 597 GROSS ULT. MB & MMF 0.000 349.503 30.00 129.578
INIT W.I 62.108 LIFE/YR 10.083 RATE-OF-RETURN, % 100.00
INIT N.I 46.701 OPC/W 1247 UNDISC NET/INVEST 29.30
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 28.913 0.000 13.502 0.000 2.680 36.187 3.098 11.179 2.171 19.738
1998 0.000 74.901 0.000 34.979 0.000 2.680 93.744 9.294 0.000 5.625 78.826
1999 0.000 59.938 0.000 27.991 0.000 2.680 75.017 9.294 0.000 4.501 61.222
2000 0.000 47.964 0.000 22.399 0.000 2.680 60.031 9.294 0.000 3.602 47.135
2001 0.000 38.382 0.000 17.925 0.000 2.680 48.038 9.294 0.000 2.882 35.862
2002 0.000 30.715 0.000 14.344 0.000 2.680 38.442 9.294 0.000 2.306 26.841
2003 0.000 24.579 0.000 11.478 0.000 2.680 30.762 9.294 0.000 1.846 19.622
2004 0.000 19.669 0.000 9.185 0.000 2.680 24.617 9.294 0.000 1.477 13.846
2005 0.000 15.739 0.000 7.350 0.000 2.680 19.699 9.294 0.000 1.182 9.223
SUB 0.000 340.800 0.000 159.155 0.000 2.680 426.537 77.450 11.179 25.592 312.315
REM 0.000 8.704 0.000 4.065 0.000 2.680 10.894 6.196 0.000 0.654 4.045
TOT 0.000 349.504 0.000 163.220 0.000 2.680 437.431 83.646 11.179 26.246 316.360
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
----(M $)--- --(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 19.738 17.369
1998 98.564 65.818
1999 159.786 46.475
2000 206.921 32.531
2001 242.783 22.503
2002 269.624 15.314
2003 289.246 10.180
2004 303.092 6.532
2005 312.315 3.958
SUB 2312.315 20.680
REM 316.360 1.600
TOT 2316.360 22.280
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
FARNED, LILLIAN P. 1-U BP2 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BACON ---------- ---------- 10.00 57.973
MS, CHICKASAW GROSS WELLS 0.000 1.000 15.00 35.311
LEWIS GROSS CUM. MB & MMF 0.000 0.000 20.00 22.028
23 12S 4E GROSS RES. MB & MMF 0.000 249.409 25.00 14.039
SEQ: 598 GROSS ULT. MB & MMF 0.000 249.409 30.00 9.122
INIT W.I 62.108 LIFE/YR 15.833 RATE-OF-RETURN, % 100.00
INIT N.I 46.701 OPC/W 1359 UNDISC NET/INVEST 4.51
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 64.012 0.000 29.894 0.000 2.680 80.116 10.129 48.444 4.807 16.736
SUB 0.000 64.012 0.000 29.894 0.000 2.680 80.116 10.129 48.444 4.807 16.736
REM 0.000 185.397 0.000 86.582 0.000 2.680 232.038 64.994 0.000 13.923 153.125
TOT 0.000 249.409 0.000 116.475 0.000 2.680 312.154 75.123 48.444 18.730 169.861
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 16.736 6.215
SUB 16.736 6.215
REM 169.861 51.758
TOT 169.861 57.973
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GADDIS FARMS 13-1 P.W. % P.W., M$
AMERADA HESS CORP OIL GAS ------ --------
BOLTON (COTTON VALLEY) ---------- ---------- 10.00 59.217
MS, HINDS GROSS WELLS 0.000 1.000 15.00 48.649
COTTON VALLEY GROSS CUM. MB & MMF 145.066 1799.638 20.00 41.495
13 6N 3W GROSS RES. MB & MMF 160.612 1708.637 25.00 36.351
SEQ: 493 GROSS ULT. MB & MMF 305.678 3508.275 30.00 32.477
ORRI INIT W.I 0.000 LIFE/YR 26.333 RATE-OF-RETURN, % 100.00
INIT N.I 1.476 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 7.357 78.269 0.109 1.155 19.400 2.660 5.180 0.000 0.000 0.311 4.869
1997 16.394 174.405 0.242 2.574 19.400 2.660 11.542 0.000 0.000 0.693 10.849
1998 14.755 156.964 0.218 2.317 19.400 2.660 10.388 0.000 0.000 0.623 9.764
1999 13.279 141.268 0.196 2.085 19.400 2.660 9.349 0.000 0.000 0.561 8.788
2000 11.951 127.141 0.176 1.877 19.400 2.660 8.414 0.000 0.000 0.505 7.909
2001 10.756 114.427 0.159 1.689 19.400 2.660 7.573 0.000 0.000 0.454 7.118
2002 9.681 102.984 0.143 1.520 19.400 2.660 6.815 0.000 0.000 0.409 6.406
2003 8.712 92.686 0.129 1.368 19.400 2.660 6.134 0.000 0.000 0.368 5.766
2004 7.841 83.417 0.116 1.231 19.400 2.660 5.520 0.000 0.000 0.331 5.189
2005 7.057 75.075 0.104 1.108 19.400 2.660 4.968 0.000 0.000 0.298 4.670
SUB 107.783 1146.636 1.591 16.924 19.400 2.660 75.883 0.000 0.000 4.553 71.328
REM 52.828 562.001 0.780 8.295 19.400 2.660 37.193 0.000 0.000 2.230 34.960
TOT 160.611 1708.637 2.371 25.219 19.400 2.660 113.076 0.000 0.000 6.783 106.288
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.869 4.774
1997 15.718 9.954
1998 25.482 8.144
1999 34.270 6.663
2000 42.179 5.452
2001 49.297 4.460
2002 55.703 3.649
2003 61.469 2.986
2004 66.658 2.443
2005 71.328 1.999
SUB 71.328 50.524
REM 106.288 8.694
TOT 106.288 59.218
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GADDIS-MCLAURIN 7 P.W. % P.W., M$
U M C PETROLEUM CORP OIL GAS ------ --------
BAKERS CREEK (RODESSA) ---------- ---------- 10.00 78.812
MS, HINDS GROSS WELLS 1.000 0.000 15.00 70.909
RODESSA GROSS CUM. MB & MMF 157.803 0.130 20.00 64.522
25 6N 3W GROSS RES. MB & MMF 73.568 0.000 25.00 59.276
SEQ: 494 GROSS ULT. MB & MMF 231.371 0.130 30.00 54.903
INIT W.I 20.000 LIFE/YR 9.750 RATE-OF-RETURN, % 100.00
INIT N.I 14.992 OPC/W 4430 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 5.356 0.000 0.803 0.000 19.800 0.000 15.899 4.430 0.000 0.954 10.515
1997 11.748 0.000 1.761 0.000 19.800 0.000 34.874 10.632 0.000 2.092 22.150
1998 10.339 0.000 1.550 0.000 19.800 0.000 30.689 10.632 0.000 1.841 18.216
1999 9.098 0.000 1.364 0.000 19.800 0.000 27.007 10.632 0.000 1.620 14.754
2000 8.006 0.000 1.200 0.000 19.800 0.000 23.766 10.632 0.000 1.426 11.708
2001 7.045 0.000 1.056 0.000 19.800 0.000 20.914 10.632 0.000 1.255 9.027
2002 6.200 0.000 0.930 0.000 19.800 0.000 18.404 10.632 0.000 1.104 6.668
2003 5.456 0.000 0.818 0.000 19.800 0.000 16.196 10.632 0.000 0.972 4.592
2004 4.801 0.000 0.720 0.000 19.800 0.000 14.252 10.632 0.000 0.855 2.765
2005 4.225 0.000 0.633 0.000 19.800 0.000 12.542 10.632 0.000 0.753 1.157
SUB 72.274 0.000 10.835 0.000 19.800 0.000 214.543 100.118 0.000 12.872 101.552
REM 1.293 0.000 0.194 0.000 19.800 0.000 3.837 3.544 0.000 0.230 0.063
TOT 73.567 0.000 11.029 0.000 19.800 0.000 218.380 103.662 0.000 13.102 101.615
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 10.515 10.312
1997 32.665 20.335
1998 50.881 15.204
1999 65.635 11.197
2000 77.343 8.079
2001 86.370 5.664
2002 93.038 3.805
2003 97.630 2.384
2004 100.395 1.307
2005 101.552 0.500
SUB 101.552 78.787
REM 101.615 0.025
TOT 101.615 78.812
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GLOSTER JACOB P.W. % P.W., M$
SWIFT ENERGY CO OIL GAS ------ --------
COLUMBIA (HOSSTON 1ST) ---------- ---------- 10.00 176.578
MS, MARION GROSS WELLS 1.000 0.000 15.00 147.054
HOSSTON 1ST GROSS CUM. MB & MMF 187.885 8133.639 20.00 126.361
7 4N 18W GROSS RES. MB & MMF 38.330 4401.933 25.00 111.135
SEQ: 495 GROSS ULT. MB & MMF 226.215 12535.572 30.00 99.491
INIT W.I 4.572 LIFE/YR 25.917 RATE-OF-RETURN, % 100.00
INIT N.I 3.303 OPC/W 4934 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.761 180.000 0.058 5.945 19.890 2.500 16.020 1.128 0.000 0.961 13.931
1997 3.924 432.000 0.130 14.269 19.890 2.500 38.250 2.707 0.000 2.295 33.248
1998 3.532 410.021 0.117 13.543 19.890 2.500 36.177 2.707 0.000 2.171 31.299
1999 3.179 369.019 0.105 12.189 19.890 2.500 32.559 2.707 0.000 1.954 27.899
2000 2.861 332.117 0.094 10.970 19.890 2.500 29.303 2.707 0.000 1.758 24.838
2001 2.575 298.905 0.085 9.873 19.890 2.500 26.373 2.707 0.000 1.582 22.084
2002 2.317 269.015 0.077 8.885 19.890 2.500 23.736 2.707 0.000 1.424 19.605
2003 2.085 242.113 0.069 7.997 19.890 2.500 21.362 2.707 0.000 1.282 17.373
2004 1.877 217.902 0.062 7.197 19.890 2.500 19.226 2.707 0.000 1.154 15.365
2005 1.689 196.112 0.056 6.477 19.890 2.500 17.303 2.707 0.000 1.038 13.558
SUB 25.800 2947.204 0.852 97.345 19.890 2.500 260.309 25.491 0.000 15.619 219.200
REM 12.528 1454.732 0.414 48.049 19.890 2.500 128.354 44.666 0.000 7.702 75.987
TOT 38.328 4401.936 1.266 145.394 19.890 2.500 388.663 70.157 0.000 23.321 295.187
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 13.931 13.658
1997 47.179 30.480
1998 78.478 26.107
1999 106.377 21.155
2000 131.215 17.122
2001 153.299 13.840
2002 172.904 11.169
2003 190.277 8.998
2004 205.642 7.235
2005 219.200 5.804
SUB 219.200 155.568
REM 295.187 21.011
TOT 295.187 176.579
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HEARN 29-3 P.W. % P.W., M$
LEWIS OIL INC OIL GAS ------ --------
PEACHTREE CREEK (COTTON VALLEY ---------- ---------- 10.00 64.305
MS, CLARKE GROSS WELLS 1.000 0.000 15.00 60.338
COTTON VALLEY GROSS CUM. MB & MMF 51.685 1.300 20.00 56.882
29 3N 16E GROSS RES. MB & MMF 72.380 0.000 25.00 53.848
SEQ: 23 GROSS ULT. MB & MMF 124.065 1.300 30.00 51.164
INIT W.I 8.000 LIFE/YR 5.417 RATE-OF-RETURN, % 100.00
INIT N.I 6.750 OPC/W 3152 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 10.154 0.000 0.685 0.000 19.740 0.000 13.530 1.261 0.000 0.812 11.457
1997 23.328 0.000 1.575 0.000 19.740 0.000 31.084 3.026 0.000 1.865 26.193
1998 19.068 0.000 1.287 0.000 19.740 0.000 25.407 3.026 0.000 1.524 20.857
1999 10.704 0.000 0.723 0.000 19.740 0.000 14.263 3.026 0.000 0.856 10.381
2000 5.887 0.000 0.397 0.000 19.740 0.000 7.845 3.026 0.000 0.471 4.348
2001 3.238 0.000 0.219 0.000 19.740 0.000 4.315 3.026 0.000 0.259 1.030
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 72.379 0.000 4.886 0.000 19.740 0.000 96.444 16.391 0.000 5.787 74.266
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 72.379 0.000 4.886 0.000 19.740 0.000 96.444 16.391 0.000 5.787 74.266
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 11.457 11.234
1997 37.650 24.023
1998 58.507 17.460
1999 68.888 7.912
2000 73.236 3.018
2001 74.266 0.657
2002 74.266 0.000
2003 74.266 0.000
2004 74.266 0.000
2005 74.266 0.000
SUB 74.266 64.304
REM 74.266 0.000
TOT 74.266 64.304
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HINTON 8-16 P.W. % P.W., M$
MOON HINES TIGRETT INC OIL GAS ------ --------
PALMETTO SOUTH (MISSISSIPPIAN ---------- ---------- 10.00 150.173
MS, LEE GROSS WELLS 0.000 1.000 15.00 120.074
MSSN-EVANS GROSS CUM. MB & MMF 0.000 381.022 20.00 100.379
8 11S 5E GROSS RES. MB & MMF 0.000 713.075 25.00 86.595
SEQ: 496 GROSS ULT. MB & MMF 0.000 1094.097 30.00 76.443
INIT W.I 31.803 LIFE/YR 31.583 RATE-OF-RETURN, % 100.00
INIT N.I 26.062 OPC/W 1625 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 18.798 0.000 4.899 0.000 2.810 13.767 2.584 0.000 0.826 10.357
1997 0.000 43.510 0.000 11.340 0.000 2.810 31.864 6.202 0.000 1.912 23.751
1998 0.000 41.335 0.000 10.773 0.000 2.810 30.271 6.202 0.000 1.816 22.253
1999 0.000 39.268 0.000 10.234 0.000 2.810 28.758 6.202 0.000 1.725 20.831
2000 0.000 37.305 0.000 9.722 0.000 2.810 27.320 6.202 0.000 1.639 19.479
2001 0.000 35.439 0.000 9.236 0.000 2.810 25.954 6.202 0.000 1.557 18.195
2002 0.000 33.667 0.000 8.774 0.000 2.810 24.656 6.202 0.000 1.479 16.975
2003 0.000 31.984 0.000 8.336 0.000 2.810 23.423 6.202 0.000 1.405 15.816
2004 0.000 30.385 0.000 7.919 0.000 2.810 22.252 6.202 0.000 1.335 14.716
2005 0.000 28.866 0.000 7.523 0.000 2.810 21.140 6.202 0.000 1.268 13.670
SUB 0.000 340.557 0.000 88.756 0.000 2.810 249.405 58.402 0.000 14.962 176.043
REM 0.000 372.518 0.000 97.085 0.000 2.810 272.809 137.478 0.000 16.366 118.973
TOT 0.000 713.075 0.000 185.842 0.000 2.810 522.214 195.880 0.000 31.328 295.016
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 10.357 10.155
1997 34.108 21.783
1998 56.361 18.555
1999 77.192 15.789
2000 96.671 13.423
2001 114.866 11.398
2002 131.841 9.667
2003 147.657 8.189
2004 162.373 6.926
2005 176.043 5.849
SUB 176.043 121.734
REM 295.016 28.440
TOT 295.016 150.174
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PARAMOUNT/COCHRAN 14-5 P.W. % P.W., M$
ELAND ENERGY INC OIL GAS ------ --------
BLACKBURN (HOSSTON) ---------- ---------- 10.00 88.209
MS, JONES GROSS WELLS 1.000 0.000 15.00 81.012
HOSSTON GROSS CUM. MB & MMF 138.520 25.677 20.00 74.984
14 7N 13W GROSS RES. MB & MMF 47.160 38.199 25.00 69.876
SEQ: 497 GROSS ULT. MB & MMF 185.680 63.876 30.00 65.502
INIT W.I 37.273 LIFE/YR 7.167 RATE-OF-RETURN, % 100.00
INIT N.I 33.749 OPC/W 6862 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.888 3.150 1.312 1.063 19.740 2.660 28.733 12.788 0.000 1.724 14.220
1997 8.530 6.909 2.879 2.332 19.740 2.660 63.032 30.692 0.000 3.782 28.558
1998 7.617 6.170 2.571 2.082 19.740 2.660 56.287 30.692 0.000 3.377 22.217
1999 6.889 5.580 2.325 1.883 19.740 2.660 50.901 30.692 0.000 3.054 17.155
2000 6.200 5.022 2.092 1.695 19.740 2.660 45.811 30.692 0.000 2.749 12.370
2001 5.580 4.520 1.883 1.525 19.740 2.660 41.230 30.692 0.000 2.474 8.064
2002 5.022 4.068 1.695 1.373 19.740 2.660 37.107 30.692 0.000 2.226 4.188
2003 3.434 2.781 1.159 0.939 19.740 2.660 25.374 23.019 0.000 1.522 0.833
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 47.160 38.200 15.916 12.892 19.740 2.660 348.475 219.959 0.000 20.908 107.605
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 47.160 38.200 15.916 12.892 19.740 2.660 348.475 219.959 0.000 20.908 107.605
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 14.220 13.947
1997 42.778 26.231
1998 64.995 18.550
1999 82.150 13.027
2000 94.520 8.544
2001 102.584 5.069
2002 106.772 2.400
2003 107.605 0.442
2004 107.605 0.000
2005 107.605 0.000
SUB 107.605 88.210
REM 107.605 0.000
TOT 107.605 88.210
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROBERTS, ERNEST P.W. % P.W., M$
LATEX OIL GAS ------ --------
BOLTON ---------- ---------- 10.00 1087.015
MS, HINDS GROSS WELLS 1.000 0.000 15.00 962.316
COTTON VALLEY GROSS CUM. MB & MMF 199.849 2898.785 20.00 864.679
18-6N-2W GROSS RES. MB & MMF 31.582 1010.883 25.00 786.535
SEQ: 219 GROSS ULT. MB & MMF 231.431 3909.668 30.00 722.788
INIT W.I 96.860 LIFE/YR 12.500 RATE-OF-RETURN, % 100.00
INIT N.I 73.566 OPC/W 6135 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.735 65.734 2.012 48.358 16.290 2.870 171.567 29.712 0.000 10.294 131.561
1997 5.712 144.185 4.202 106.071 16.290 2.870 372.871 71.309 0.000 22.372 279.191
1998 4.684 126.883 3.446 93.342 16.290 2.870 324.020 71.309 0.000 19.441 233.270
1999 3.841 111.657 2.825 82.141 16.290 2.870 281.770 71.309 0.000 16.906 193.555
2000 3.149 98.258 2.317 72.284 16.290 2.870 245.196 71.309 0.000 14.712 159.176
2001 2.582 86.467 1.900 63.610 16.290 2.870 213.508 71.309 0.000 12.810 129.389
2002 2.118 76.091 1.558 55.977 16.290 2.870 186.030 71.309 0.000 11.162 103.560
2003 1.736 66.960 1.277 49.260 16.290 2.870 162.184 71.309 0.000 9.731 81.145
2004 1.424 58.925 1.047 43.349 16.290 2.870 141.474 71.309 0.000 8.488 61.677
2005 1.168 51.854 0.859 38.147 16.290 2.870 123.473 71.309 0.000 7.408 44.756
SUB 29.149 887.014 21.443 652.539 16.290 2.870 2222.093 671.493 0.000 133.324 1417.280
REM 2.434 123.870 1.791 91.126 16.290 2.870 290.704 219.869 0.000 17.441 53.393
TOT 31.583 1010.884 23.234 743.664 16.290 2.870 2512.797 891.362 0.000 150.765 1470.673
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 131.561 129.012
1997 410.752 256.286
1998 644.022 194.676
1999 837.577 146.856
2000 996.753 109.801
2001 1126.142 81.148
2002 1229.702 59.053
2003 1310.847 42.073
2004 1372.524 29.080
2005 1417.280 19.193
SUB 1417.280 1067.178
REM 1470.673 19.836
TOT 1470.673 1087.014
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROSENBLATT P.W. % P.W., M$
BELLE EXPL INC OIL GAS ------ --------
BELMONT LAKE (WALKER) ---------- ---------- 10.00 0.000
MS, WILKINSON GROSS WELLS 1.000 0.000 15.00 0.000
WALKER GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
35 2N 4W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 669 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES. INIT W.I 0.548 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 0.450 OPC/W 530 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RUDDER 29-4 P.W. % P.W., M$
LEWIS OIL INC OIL GAS ------ --------
PEACHTREE CREEK (COTTON VALLEY ---------- ---------- 10.00 22.040
MS, CLARKE GROSS WELLS 1.000 0.000 15.00 21.293
COTTON VALLEY GROSS CUM. MB & MMF 172.978 7.523 20.00 20.615
29 3N 16E GROSS RES. MB & MMF 37.995 0.000 25.00 19.998
SEQ: 54 GROSS ULT. MB & MMF 210.973 7.523 30.00 19.434
INIT W.I 8.000 LIFE/YR 2.917 RATE-OF-RETURN, % 100.00
INIT N.I 5.315 OPC/W 4884 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 10.153 0.000 0.540 0.000 19.740 0.000 10.652 1.954 0.000 0.639 8.060
1997 16.153 0.000 0.858 0.000 19.740 0.000 16.946 4.689 0.000 1.017 11.241
1998 8.884 0.000 0.472 0.000 19.740 0.000 9.320 4.689 0.000 0.559 4.073
1999 2.806 0.000 0.149 0.000 19.740 0.000 2.943 2.344 0.000 0.177 0.422
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 37.996 0.000 2.019 0.000 19.740 0.000 39.861 13.676 0.000 2.392 23.796
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 37.996 0.000 2.019 0.000 19.740 0.000 39.861 13.676 0.000 2.392 23.796
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.060 7.909
1997 19.301 10.373
1998 23.374 3.428
1999 23.796 0.330
2000 23.796 0.000
2001 23.796 0.000
2002 23.796 0.000
2003 23.796 0.000
2004 23.796 0.000
2005 23.796 0.000
SUB 23.796 22.040
REM 23.796 0.000
TOT 23.796 22.040
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SCRUGGS 15-10 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
SHANNON EAST ---------- ---------- 10.00 308.515
MS, LEE GROSS WELLS 0.000 1.000 15.00 281.251
MISSISSIPPIAN EVANS GROSS CUM. MB & MMF 0.000 2309.148 20.00 258.984
15 11S 6E GROSS RES. MB & MMF 0.000 238.918 25.00 240.495
SEQ: 339 GROSS ULT. MB & MMF 0.000 2548.066 30.00 224.921
INIT W.I 100.000 LIFE/YR 10.750 RATE-OF-RETURN, % 100.00
INIT N.I 75.658 OPC/W 512 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 28.272 0.000 21.390 0.000 2.660 56.897 2.560 0.000 3.414 50.923
1997 0.000 55.501 0.000 41.991 0.000 2.660 111.697 6.144 0.000 6.702 98.851
1998 0.000 41.626 0.000 31.493 0.000 2.660 83.773 6.144 0.000 5.026 72.602
1999 0.000 31.219 0.000 23.620 0.000 2.660 62.830 6.144 0.000 3.770 52.916
2000 0.000 23.415 0.000 17.715 0.000 2.660 47.122 6.144 0.000 2.827 38.151
2001 0.000 17.561 0.000 13.286 0.000 2.660 35.342 6.144 0.000 2.120 27.077
2002 0.000 13.171 0.000 9.965 0.000 2.660 26.506 6.144 0.000 1.590 18.772
2003 0.000 9.878 0.000 7.474 0.000 2.660 19.880 6.144 0.000 1.193 12.543
2004 0.000 7.409 0.000 5.605 0.000 2.660 14.910 6.144 0.000 0.895 7.871
2005 0.000 5.556 0.000 4.204 0.000 2.660 11.182 6.144 0.000 0.671 4.367
SUB 0.000 233.608 0.000 176.744 0.000 2.660 470.139 57.856 0.000 28.208 384.073
REM 0.000 5.310 0.000 4.018 0.000 2.660 10.688 8.192 0.000 0.641 1.855
TOT 0.000 238.918 0.000 180.761 0.000 2.660 480.827 66.048 0.000 28.849 385.928
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 50.923 49.945
1997 149.774 90.833
1998 222.376 60.652
1999 275.292 40.190
2000 313.443 26.344
2001 340.520 17.000
2002 359.292 10.717
2003 371.835 6.512
2004 379.706 3.718
2005 384.073 1.878
SUB 384.073 307.789
REM 385.928 0.725
TOT 385.928 308.514
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
SCRUGGS 15-10 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
SHANNON EAST ---------- ---------- 10.00 299.861
MS, LEE GROSS WELLS 0.000 1.000 15.00 156.474
CARTER GROSS CUM. MB & MMF 0.000 0.000 20.00 85.418
15 11S 6E GROSS RES. MB & MMF 0.000 800.000 25.00 48.433
SEQ: 599 GROSS ULT. MB & MMF 0.000 800.000 30.00 28.369
INIT W.I 100.000 LIFE/YR 28.083 RATE-OF-RETURN, % 100.00
INIT N.I 75.658 OPC/W 867 UNDISC NET/INVEST 58.07
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 800.003 0.000 605.268 0.000 2.660 1610.014 177.735 23.000 96.600 1312.677
TOT 0.000 800.003 0.000 605.268 0.000 2.660 1610.014 177.735 23.000 96.600 1312.677
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 1312.677 299.858
TOT 1312.677 299.858
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
J-POSSIBLE DEVE PRIMARY
SCRUGGS 15-10 BP2 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
SHANNON EAST ---------- ---------- 10.00 11.234
MS, LEE GROSS WELLS 0.000 1.000 15.00 3.053
SANDERS GROSS CUM. MB & MMF 0.000 0.000 20.00 0.878
15 11S 6E GROSS RES. MB & MMF 0.000 125.000 25.00 0.266
SEQ: 600 GROSS ULT. MB & MMF 0.000 125.000 30.00 0.085
INIT W.I 100.000 LIFE/YR 31.833 RATE-OF-RETURN, % 100.00
INIT N.I 75.658 OPC/W 867 UNDISC NET/INVEST 15.19
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 125.000 0.000 94.573 0.000 2.660 251.564 39.015 13.000 15.094 184.455
TOT 0.000 125.000 0.000 94.573 0.000 2.660 251.564 39.015 13.000 15.094 184.455
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 184.455 11.234
TOT 184.455 11.234
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMACKOVER 'A' POOL TOTAL P.W. % P.W., M$
OIL GAS ------ --------
CYPRESS CREEK SOUTH (SMACKOVER ---------- ---------- 10.00 93.317
MS, WAYNE GROSS WELLS 1.000 0.000 15.00 71.901
SMACKOVER A GROSS CUM. MB & MMF 4958.151 1314.005 20.00 58.239
GROSS RES. MB & MMF 2592.198 773.791 25.00 48.977
SEQ: 241 GROSS ULT. MB & MMF 7550.349 2087.796 30.00 42.369
INIT W.I 0.000 LIFE/YR 19.667 RATE-OF-RETURN, % 100.00
INIT N.I 0.450 OPC/W 2000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 66.271 19.782 0.298 0.089 17.010 2.660 5.305 0.000 0.000 0.318 4.987
1997 156.793 46.804 0.705 0.210 17.010 2.660 12.552 0.000 0.000 0.753 11.799
1998 153.657 45.868 0.691 0.206 17.010 2.660 12.301 0.000 0.000 0.738 11.563
1999 150.584 44.950 0.677 0.202 17.010 2.660 12.055 0.000 0.000 0.723 11.331
2000 147.572 44.051 0.664 0.198 17.010 2.660 11.813 0.000 0.000 0.709 11.105
2001 144.621 43.170 0.650 0.194 17.010 2.660 11.577 0.000 0.000 0.695 10.883
2002 141.728 42.307 0.637 0.190 17.010 2.660 11.346 0.000 0.000 0.681 10.665
2003 138.894 41.461 0.625 0.186 17.010 2.660 11.119 0.000 0.000 0.667 10.452
2004 136.116 40.632 0.612 0.183 17.010 2.660 10.896 0.000 0.000 0.654 10.243
2005 133.393 39.819 0.600 0.179 17.010 2.660 10.678 0.000 0.000 0.641 10.038
SUB 1369.629 408.844 6.158 1.838 17.010 2.660 109.642 0.000 0.000 6.579 103.066
REM 1222.570 364.946 5.497 1.641 17.010 2.660 97.868 0.000 0.000 5.872 91.997
TOT 2592.199 773.790 11.655 3.479 17.010 2.660 207.510 0.000 0.000 12.451 195.063
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C>
1996 4.987 4.889
1997 16.786 10.817
1998 28.349 9.637
1999 39.680 8.586
2000 50.785 7.649
2001 61.668 6.815
2002 72.333 6.071
2003 82.785 5.409
2004 93.028 4.819
2005 103.066 4.293
SUB 103.066 68.985
REM 195.063 24.332
TOT 195.063 93.317
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMACKOVER UNIT P.W. % P.W., M$
TELLUS ENERGY GROUP OIL GAS ------ --------
LAKE COMO (SMACKOVER) ---------- ---------- 10.00 277.101
MS, JASPER GROSS WELLS 4.000 0.000 15.00 225.909
SMACKOVER GROSS CUM. MB & MMF 9754.298 15265.017 20.00 191.185
4 1N 11E GROSS RES. MB & MMF 3392.723 2470.112 25.00 166.294
SEQ: 286 GROSS ULT. MB & MMF 13147.021 17735.129 30.00 147.656
INIT W.I 1.584 LIFE/YR 26.083 RATE-OF-RETURN, % 100.00
INIT N.I 1.299 OPC/W 83882 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 97.262 113.352 1.263 1.472 20.390 2.290 29.133 6.643 0.000 1.748 20.742
1997 225.120 252.579 2.924 3.281 20.390 2.290 67.140 15.944 0.000 4.028 47.167
1998 213.864 227.321 2.778 2.953 20.390 2.290 63.407 15.944 0.000 3.804 43.659
1999 203.170 204.589 2.639 2.658 20.390 2.290 59.899 15.944 0.000 3.594 40.361
2000 193.012 184.130 2.507 2.392 20.390 2.290 56.600 15.944 0.000 3.396 37.259
2001 183.361 165.717 2.382 2.153 20.390 2.290 53.496 15.944 0.000 3.210 34.342
2002 174.193 149.145 2.263 1.937 20.390 2.290 50.575 15.944 0.000 3.034 31.596
2003 165.484 134.231 2.150 1.744 20.390 2.290 47.824 15.944 0.000 2.869 29.010
2004 157.209 120.808 2.042 1.569 20.390 2.290 45.233 15.944 0.000 2.714 26.575
2005 149.349 108.727 1.940 1.412 20.390 2.290 42.792 15.944 0.000 2.568 24.280
SUB 1762.024 1660.599 22.889 21.571 20.390 2.290 516.099 150.139 0.000 30.965 334.991
REM 1630.698 809.516 21.183 10.516 20.390 2.290 455.997 265.734 0.000 27.360 162.901
TOT 3392.722 2470.115 44.071 32.087 20.390 2.290 972.096 415.873 0.000 58.325 497.892
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 20.742 20.337
1997 67.909 43.264
1998 111.568 36.405
1999 151.929 30.596
2000 189.188 25.678
2001 223.530 21.516
2002 255.126 17.996
2003 284.136 15.021
2004 310.711 12.510
2005 334.991 10.391
SUB 334.991 233.714
REM 497.892 43.387
TOT 497.892 277.101
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SOSO FIELD UNIT 28-5 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
SOSO (RODESSA 11151) ------- ------- 10.00 0.000
MS, JONES GROSS WELLS 1.000 0.000 15.00 0.000
RODESSA 11151 GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
28 10N 13W GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 672 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES INIT W.I 0.000 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.027 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STRITE P.W. % P.W., M$
TUWAY OIL INC OIL GAS ------ --------
DARBUN NORTH (TUSCALOOSA LWR) ---------- ---------- 10.00 4.492
MS, WALTHALL GROSS WELLS 1.000 0.000 15.00 4.090
TSCL LWR GROSS CUM. MB & MMF 81.807 1.123 20.00 3.760
3 3N 11E GROSS RES. MB & MMF 16.702 0.000 25.00 3.486
SEQ: 673 GROSS ULT. MB & MMF 98.509 1.123 30.00 3.254
ORRI INIT W.I 0.000 LIFE/YR 7.667 RATE-OF-RETURN, % 100.00
INIT N.I 1.697 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.120 0.000 0.036 0.000 21.090 0.000 0.759 0.000 0.000 0.046 0.713
1997 4.163 0.000 0.071 0.000 21.090 0.000 1.490 0.000 0.000 0.089 1.401
1998 3.122 0.000 0.053 0.000 21.090 0.000 1.117 0.000 0.000 0.067 1.050
1999 2.341 0.000 0.040 0.000 21.090 0.000 0.838 0.000 0.000 0.050 0.788
2000 1.756 0.000 0.030 0.000 21.090 0.000 0.629 0.000 0.000 0.038 0.591
2001 1.317 0.000 0.022 0.000 21.090 0.000 0.471 0.000 0.000 0.028 0.443
2002 0.988 0.000 0.017 0.000 21.090 0.000 0.354 0.000 0.000 0.021 0.332
2003 0.741 0.000 0.013 0.000 21.089 0.000 0.265 0.000 0.000 0.016 0.249
2004 0.154 0.000 0.003 0.000 21.087 0.000 0.055 0.000 0.000 0.003 0.052
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 16.702 0.000 0.283 0.000 21.090 0.000 5.978 0.000 0.000 0.358 5.619
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 16.702 0.000 0.283 0.000 21.090 0.000 5.978 0.000 0.000 0.358 5.619
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.713 0.700
1997 2.114 1.287
1998 3.164 0.877
1999 3.952 0.598
2000 4.543 0.408
2001 4.986 0.278
2002 5.318 0.190
2003 5.567 0.129
2004 5.619 0.025
2005 5.619 0.000
SUB 5.619 4.492
REM 5.619 0.000
TOT 5.619 4.492
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TALLY 31-16 1C P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BALLS BRANCH ---------- ---------- 10.00 18.224
MS, LEE GROSS WELLS 0.000 1.000 15.00 16.814
MISSISSIPPIAN EVANS GROSS CUM. MB & MMF 0.000 468.372 20.00 15.624
31 11S 5E GROSS RES. MB & MMF 0.000 31.471 25.00 14.611
SEQ: 326 GROSS ULT. MB & MMF 0.000 499.843 30.00 13.738
INIT W.I 88.698 LIFE/YR 6.917 RATE-OF-RETURN, % 100.00
INIT N.I 59.344 OPC/W 350 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.052 0.000 1.811 0.000 2.720 4.927 1.552 0.000 0.296 3.079
1997 0.000 6.535 0.000 3.878 0.000 2.720 10.549 3.725 0.000 0.633 6.191
1998 0.000 5.555 0.000 3.296 0.000 2.720 8.966 3.725 0.000 0.538 4.703
1999 0.000 4.722 0.000 2.802 0.000 2.720 7.621 3.725 0.000 0.457 3.439
2000 0.000 4.013 0.000 2.382 0.000 2.720 6.478 3.725 0.000 0.389 2.364
2001 0.000 3.411 0.000 2.024 0.000 2.720 5.507 3.725 0.000 0.330 1.451
2002 0.000 2.900 0.000 1.721 0.000 2.720 4.681 3.725 0.000 0.281 0.674
2003 0.000 1.282 0.000 0.761 0.000 2.720 2.070 1.863 0.000 0.124 0.083
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 31.470 0.000 18.676 0.000 2.720 50.799 25.765 0.000 3.048 21.984
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 31.470 0.000 18.676 0.000 2.720 50.799 25.765 0.000 3.048 21.984
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.079 3.020
1997 9.270 5.686
1998 13.973 3.928
1999 17.412 2.612
2000 19.776 1.634
2001 21.227 0.913
2002 21.901 0.387
2003 21.984 0.044
2004 21.984 0.000
2005 21.984 0.000
SUB 21.984 18.224
REM 21.984 0.000
TOT 21.984 18.224
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
TALLY 31-16 1C BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BALLS BRANCH ---------- ---------- 10.00 123.988
MS, LEE GROSS WELLS 0.000 1.000 15.00 82.396
CARTER GROSS CUM. MB & MMF 0.000 0.000 20.00 56.005
31 11S 5E GROSS RES. MB & MMF 0.000 250.000 25.00 38.841
SEQ: 601 GROSS ULT. MB & MMF 0.000 250.000 30.00 27.430
INIT W.I 88.698 LIFE/YR 14.417 RATE-OF-RETURN, % 100.00
INIT N.I 59.344 OPC/W 700 UNDISC NET/INVEST 16.58
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 33.924 0.000 20.132 0.000 2.720 54.758 3.725 19.514 3.285 28.234
2004 0.000 56.773 0.000 33.691 0.000 2.720 91.640 7.451 0.000 5.498 78.691
2005 0.000 44.659 0.000 26.503 0.000 2.720 72.087 7.451 0.000 4.325 60.311
SUB 0.000 135.356 0.000 80.325 0.000 2.720 218.485 18.627 19.514 13.108 167.236
REM 0.000 114.643 0.000 68.034 0.000 2.720 185.052 37.255 0.000 11.102 136.696
TOT 0.000 249.999 0.000 148.359 0.000 2.720 403.537 55.882 19.514 24.210 303.932
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 28.234 14.037
2004 106.925 37.093
2005 167.236 25.846
SUB 167.236 76.976
REM 303.932 47.011
TOT 303.932 123.987
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TALLY 31-16 1T P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
BALLS BRANCH ---------- ---------- 10.00 283.849
MS, LEE GROSS WELLS 0.000 1.000 15.00 235.360
MISSISSIPPIAN LEWIS GROSS CUM. MB & MMF 0.000 1180.972 20.00 201.950
31 11S 5E GROSS RES. MB & MMF 0.000 372.074 25.00 177.618
SEQ: 327 GROSS ULT. MB & MMF 0.000 1553.046 30.00 159.134
INIT W.I 88.698 LIFE/YR 30.750 RATE-OF-RETURN, % 100.00
INIT N.I 59.344 OPC/W 227 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 16.632 0.000 9.870 0.000 2.720 26.847 1.007 0.000 1.611 24.229
1997 0.000 37.061 0.000 21.993 0.000 2.720 59.822 2.416 0.000 3.589 53.816
1998 0.000 33.355 0.000 19.794 0.000 2.720 53.840 2.416 0.000 3.230 48.193
1999 0.000 30.019 0.000 17.815 0.000 2.720 48.456 2.416 0.000 2.907 43.132
2000 0.000 27.017 0.000 16.033 0.000 2.720 43.610 2.416 0.000 2.617 38.577
2001 0.000 24.316 0.000 14.430 0.000 2.720 39.249 2.416 0.000 2.355 34.478
2002 0.000 21.884 0.000 12.987 0.000 2.720 35.324 2.416 0.000 2.119 30.789
2003 0.000 19.696 0.000 11.688 0.000 2.720 31.792 2.416 0.000 1.908 27.468
2004 0.000 17.726 0.000 10.519 0.000 2.720 28.613 2.416 0.000 1.717 24.480
2005 0.000 15.954 0.000 9.467 0.000 2.720 25.751 2.416 0.000 1.545 21.790
SUB 0.000 243.660 0.000 144.597 0.000 2.720 393.304 22.751 0.000 23.598 346.952
REM 0.000 128.414 0.000 76.205 0.000 2.720 207.280 51.541 0.000 12.438 143.297
TOT 0.000 372.074 0.000 220.802 0.000 2.720 600.584 74.292 0.000 36.036 490.249
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 24.229 23.758
1997 78.045 49.375
1998 126.238 40.197
1999 169.370 32.705
2000 207.947 26.592
2001 242.425 21.606
2002 273.214 17.540
2003 300.682 14.226
2004 325.162 11.526
2005 346.952 9.327
SUB 346.952 246.852
REM 490.249 36.996
TOT 490.249 283.848
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TUCKER 9-13 P.W. % P.W., M$
MOON HINES TIGRETT INC OIL GAS ------ --------
PALMETTO SOUTH (MISSISSIPPIAN ---------- ---------- 10.00 2.683
MS, LEE GROSS WELLS 0.000 1.000 15.00 2.221
MSSN-LEWIS GROSS CUM. MB & MMF 0.000 921.992 20.00 1.902
9 11S 5E GROSS RES. MB & MMF 0.000 228.157 25.00 1.671
SEQ: 498 GROSS ULT. MB & MMF 0.000 1150.149 30.00 1.496
ORRI INIT W.I 0.000 LIFE/YR 20.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.762 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 11.612 0.000 0.088 0.000 2.810 0.249 0.000 0.000 0.015 0.234
1997 0.000 25.132 0.000 0.192 0.000 2.810 0.538 0.000 0.000 0.032 0.506
1998 0.000 22.061 0.000 0.168 0.000 2.810 0.472 0.000 0.000 0.028 0.444
1999 0.000 19.719 0.000 0.150 0.000 2.810 0.422 0.000 0.000 0.025 0.397
2000 0.000 17.805 0.000 0.136 0.000 2.810 0.381 0.000 0.000 0.023 0.358
2001 0.000 16.025 0.000 0.122 0.000 2.810 0.343 0.000 0.000 0.021 0.323
2002 0.000 14.422 0.000 0.110 0.000 2.810 0.309 0.000 0.000 0.019 0.290
2003 0.000 12.980 0.000 0.099 0.000 2.810 0.278 0.000 0.000 0.017 0.261
2004 0.000 11.682 0.000 0.089 0.000 2.810 0.250 0.000 0.000 0.015 0.235
2005 0.000 10.514 0.000 0.080 0.000 2.810 0.225 0.000 0.000 0.014 0.212
SUB 0.000 161.952 0.000 1.234 0.000 2.810 3.467 0.000 0.000 0.209 3.260
REM 0.000 66.204 0.000 0.505 0.000 2.810 1.419 0.000 0.000 0.085 1.331
TOT 0.000 228.156 0.000 1.739 0.000 2.810 4.886 0.000 0.000 0.294 4.591
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.234 0.229
1997 0.740 0.464
1998 1.184 0.370
1999 1.581 0.301
2000 1.939 0.247
2001 2.262 0.202
2002 2.552 0.165
2003 2.813 0.135
2004 3.048 0.111
2005 3.260 0.091
SUB 3.260 2.315
REM 4.591 0.367
TOT 4.591 2.682
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOICATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WALKER, GW 6-7 P.W. % P.W., M$
RIMCO OIL GAS ------ --------
CAMP CREEK ---------- ---------- 10.00 372.324
MS, JONES GROSS WELLS 1.000 0.000 15.00 320.592
HOSSTON GROSS CUM. MB & MMF 239.032 26.131 20.00 282.178
6 7N 10W GROSS RES. MB & MMF 170.188 0.000 25.00 252.689
SEQ: 244 GROSS ULT. MB & MMF 409.220 26.131 30.00 229.414
INIT W.I 33.330 LIFE/YR 18.083 RATE-OF-RETURN, % 100.00
INIT W.I 23.421 OPC/W 2601 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 9.799 0.000 2.295 0.000 19.740 0.000 45.302 4.335 0.000 2.718 38.250
1997 21.493 0.000 5.034 0.000 19.740 0.000 99.369 10.403 0.000 5.962 83.004
1998 18.914 0.000 4.430 0.000 19.740 0.000 87.445 10.403 0.000 5.247 71.795
1999 16.644 0.000 3.898 0.000 19.740 0.000 76.952 10.403 0.000 4.617 61.932
2000 14.647 0.000 3.430 0.000 19.740 0.000 67.717 10.403 0.000 4.063 53.251
2001 12.889 0.000 3.019 0.000 19.740 0.000 59.591 10.403 0.000 3.575 45.613
2002 11.343 0.000 2.657 0.000 19.740 0.000 52.440 10.403 0.000 3.146 38.891
2003 9.981 0.000 2.338 0.000 19.740 0.000 46.148 10.403 0.000 2.769 32.976
2004 8.784 0.000 2.057 0.000 19.740 0.000 40.610 10.403 0.000 2.437 27.770
2005 7.730 0.000 1.810 0.000 19.740 0.000 35.737 10.403 0.000 2.144 23.189
SUB 132.224 0.000 30.968 0.000 19.740 0.000 611.311 97.962 0.000 36.678 476.671
REM 37.964 0.000 8.892 0.000 19.740 0.000 175.518 90.159 0.000 10.531 74.828
TOT 170.188 0.000 39.860 0.000 19.740 0.000 786.829 188.121 0.000 47.209 551.499
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 38.250 37.507
1997 121.254 76.175
1998 193.049 59.900
1999 254.981 46.974
2000 308.232 36.719
2001 353.845 28.594
2002 392.736 22.165
2003 425.712 17.086
2004 453.482 13.081
2005 476.671 9.931
SUB 476.671 348.132
REM 551.449 24.192
TOT 551.449 372.324
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HENSLER 1-21 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
COMERTOWN SOUTH ---------- ---------- 10.00 486.238
MT, SHERIDAN GROSS WELLS 1.000 0.000 15.00 390.295
RED RIVER GROSS CUM. MB & MMF 554.147 179.961 20.00 327.333
21 36N 57E GROSS RES. MB & MMF 241.079 43.050 25.00 283.117
SEQ: 201 GROSS ULT. MB & MMF 795.226 223.011 30.00 250.446
INIT W.I 41.724 LIFE/YR 33.167 RATE-OF-RETURN, % 100.00
INIT N.I 34.209 OPC/W 2472 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 7.040 1.257 2.408 0.430 18.670 3.060 46.280 5.157 0.000 6.585
1997 16.174 2.888 5.533 0.988 18.670 3.060 106.324 12.377 0.000 15.128
1998 15.204 2.715 5.201 0.929 18.670 3.060 99.944 12.377 0.000 14.220
1999 14.291 2.552 4.889 0.873 18.670 3.060 93.948 12.377 0.000 13.367
2000 13.434 2.399 4.596 0.821 18.670 3.060 88.311 12.377 0.000 12.565
2001 12.628 2.255 4.320 0.771 18.670 3.060 83.012 12.377 0.000 11.811
2002 11.870 2.120 4.061 0.725 18.670 3.060 78.031 12.377 0.000 11.102
2003 11.158 1.993 3.817 0.682 18.670 3.060 73.350 12.377 0.000 10.436
2004 10.489 1.873 3.588 0.641 18.670 3.060 68.949 12.377 0.000 9.810
2005 9.859 1.761 3.373 0.602 18.670 3.060 64.812 12.377 0.000 9.221
SUB 122.147 21.813 41.785 7.462 18.670 3.060 802.961 116.550 0.000 114.245
REM 118.933 21.237 40.685 7.265 18.670 3.060 781.815 293.954 0.000 111.239
TOT 241.080 43.050 82.470 14.727 18.670 3.060 1584.776 410.504 0.000 225.484
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 34.538 34.538 33.865
1997 78.819 113.357 72.293
1998 73.347 186.704 61.159
1999 68.204 254.908 51.700
2000 63.369 318.277 43.669
2001 58.824 377.101 36.852
2002 54.552 431.653 31.069
2003 50.536 482.189 26.166
2004 46.762 528.951 22.010
2005 43.213 572.164 18.491
SUB 572.164 572.164 397.274
REM 376.619 948.783 88.963
TOT 948.783 948.783 486.237
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BEAVER LODGE-DEVONIAN UNIT P.W. % P.W., M$
AMERADA HESS CORP OIL GAS ------ --------
BEAVER LODGE (DEVONIAN) ---------- ---------- 10.00 15.563
ND, WILLIAMS GROSS WELLS 1.000 0.000 15.00 11.732
DEVONIAN GROSS CUM. MB & MMF 58514.624 46252.052 20.00 9.494
2155N 96W GROSS RES. MB & MMF 24229.652 21322.100 25.00 8.026
SEQ: 499 GROSS ULT. MB & MMF 82744.276 67574.152 30.00 6.988
ORRI INIT W.I 0.000 LIFE/YR 97.417 RATE-OF-RETURN, % 100.00
INIT N.I 0.012 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 416.448 366.474 0.050 0.044 18.290 1.550 0.982 0.000 0.000 0.107 0.875
1997 971.045 854.520 0.117 0.103 18.290 1.550 2.290 0.000 0.000 0.249 2.041
1998 932.203 820.339 0.112 0.098 18.290 1.550 2.199 0.000 0.000 0.239 1.959
1999 894.915 787.525 0.107 0.095 18.290 1.550 2.111 0.000 0.000 0.230 1.881
2000 859.118 756.024 0.103 0.091 18.290 1.550 2.026 0.000 0.000 0.221 1.806
2001 824.754 725.783 0.099 0.087 18.290 1.550 1.945 0.000 0.000 0.212 1.733
2002 791.763 696.752 0.095 0.084 18.290 1.550 1.867 0.000 0.000 0.203 1.664
2003 760.093 668.882 0.091 0.080 18.290 1.550 1.793 0.000 0.000 0.195 1.598
2004 729.689 642.126 0.088 0.077 18.290 1.550 1.721 0.000 0.000 0.187 1.534
2005 700.501 616.441 0.084 0.074 18.290 1.550 1.652 0.000 0.000 0.180 1.472
SUB 7880.529 6934.866 0.946 0.832 18.290 1.550 18.586 0.000 0.000 2.023 16.563
REM 16349.124 14387.235 1.962 1.726 18.290 1.550 38.558 0.000 0.000 4.199 34.362
TOT 24229.653 21322.101 2.908 2.559 18.290 1.550 57.144 0.000 0.000 6.222 50.925
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.875 0.858
1997 2.916 1.871
1998 4.875 1.633
1999 6.756 1.425
2000 8.562 1.244
2001 10.295 1.086
2002 11.959 0.947
2003 13.557 0.827
2004 15.091 0.722
2005 16.563 0.630
SUB 16.563 11.243
REM 50.925 4.318
TOT 50.925 15.561
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BEAVER LODGE-MADISON UNIT P.W. % P.W., M$
AMERADA HESS CORP OIL GAS ------ --------
BEAVER LODGE (MADISON) ---------- ---------- 10.00 0.417
ND, WILLIAMS GROSS WELLS 1.000 0.000 15.00 0.314
MADISON GROSS CUM. MB & MMF 51462.768 61253.756 20.00 0.254
14155N 96W GROSS RES. MB & MMF 1969.999 6303.996 25.00 0.215
SEQ: 500 GROSS ULT. MB & MMF 53432.767 67557.751 30.00 0.187
ORRI INIT W.I 0.000 LIFE/YR 65.417 RATE-OF-RETURN, % 100.00
INIT N.I 0.003 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 35.696 114.226 0.001 0.003 18.498 1.770 0.026 0.000 0.000 0.002 0.023
1997 83.232 266.344 0.002 0.008 18.500 1.770 0.060 0.000 0.000 0.006 0.055
1998 79.903 255.690 0.002 0.008 18.501 1.770 0.058 0.000 0.000 0.005 0.053
1999 76.707 245.462 0.002 0.007 18.502 1.770 0.056 0.000 0.000 0.005 0.050
2000 73.639 235.644 0.002 0.007 18.501 1.770 0.053 0.000 0.000 0.005 0.048
2001 70.693 226.218 0.002 0.007 18.498 1.770 0.051 0.000 0.000 0.005 0.046
2002 67.865 217.169 0.002 0.007 18.500 1.770 0.049 0.000 0.000 0.005 0.045
2003 65.151 208.483 0.002 0.006 18.496 1.770 0.047 0.000 0.000 0.004 0.043
2004 62.545 200.143 0.002 0.006 18.503 1.770 0.045 0.000 0.000 0.004 0.041
2005 60.043 192.138 0.002 0.006 18.503 1.770 0.044 0.000 0.000 0.004 0.039
SUB 675.474 2161.517 0.020 0.065 18.500 1.770 0.489 0.000 0.000 0.045 0.443
REM 1294.526 4142.476 0.039 0.124 18.501 1.770 0.940 0.000 0.000 0.087 0.850
TOT 1970.000 6303.993 0.059 0.189 18.501 1.770 1.429 0.000 0.000 0.132 1.293
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.023 0.023
1997 0.078 0.050
1998 0.131 0.044
1999 0.181 0.038
2000 0.229 0.033
2001 0.275 0.029
2002 0.320 0.025
2003 0.363 0.022
2004 0.404 0.019
2005 0.443 0.017
SUB 0.443 0.300
REM 1.293 0.117
TOT 1.293 0.417
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BEAVER LODGE-ORDOVICIAN UNIT NE SE P.W. % P.W., M$
AMERADA HESS CORP OIL GAS ------ --------
BEAVER LODGE (ORDOVICIAN) ---------- ---------- 10.00 31.435
ND, WILLIAMS GROSS WELLS 1.000 0.000 15.00 24.123
ORDOVICIAN GROSS CUM. MB & MMF 4927.532 73365.496 20.00 19.728
18155N 95W GROSS RES. MB & MMF 2807.857 165663.568 25.00 16.794
SEQ: 501 GROSS ULT. MB & MMF 7735.389 239029.064 30.00 14.694
ORRI INIT W.I 0.000 LIFE/YR 62.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.029 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 61.837 3648.374 0.018 1.058 17.100 1.580 1.978 0.000 0.000 0.078 1.900
1997 143.126 8444.439 0.042 2.449 17.100 1.580 4.579 0.000 0.000 0.181 4.398
1998 135.970 8022.217 0.039 2.326 17.100 1.580 4.350 0.000 0.000 0.172 4.178
1999 129.171 7621.107 0.037 2.210 17.100 1.580 4.133 0.000 0.000 0.164 3.969
2000 122.713 7240.052 0.036 2.100 17.100 1.580 3.926 0.000 0.000 0.155 3.770
2001 116.577 6878.048 0.034 1.995 17.100 1.580 3.730 0.000 0.000 0.148 3.582
2002 110.748 6534.147 0.032 1.895 17.100 1.580 3.543 0.000 0.000 0.140 3.403
2003 105.211 6207.440 0.031 1.800 17.100 1.580 3.366 0.000 0.000 0.133 3.233
2004 99.950 5897.067 0.029 1.710 17.100 1.580 3.198 0.000 0.000 0.127 3.071
2005 94.953 5602.213 0.028 1.625 17.100 1.580 3.038 0.000 0.000 0.120 2.918
SUB 1120.256 66095.104 0.325 19.168 17.100 1.580 35.841 0.000 0.000 1.418 34.422
REM 1687.602 99568.481 0.489 28.875 17.100 1.580 53.992 0.000 0.000 2.138 51.856
TOT 2807.858 165663.585 0.814 48.042 17.100 1.580 89.833 0.000 0.000 3.556 86.278
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 1.900 1.863
1997 6.298 4.033
1998 10.476 3.483
1999 14.445 3.008
2000 18.215 2.598
2001 21.797 2.244
2002 25.200 1.938
2003 28.433 1.673
2004 31.504 1.445
2005 34.422 1.248
SUB 34.422 23.533
REM 86.278 7.903
TOT 86.278 31.436
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SORENSON 11-13 NNW NW P.W. % P.W., M$
BROOKS EXPL INC OIL GAS ------ --------
UNION CENTER (MADISON) ---------- ---------- 10.00 12.930
ND, MCKENZIE GROSS WELLS 1.000 0.000 15.00 10.494
MADISON GROSS CUM. MB & MMF 194.674 255.093 20.00 8.857
13152N 96W GROSS RES. MB & MMF 35.986 71.972 25.00 7.692
SEQ: 502 GROSS ULT. MB & MMF 230.660 327.065 30.00 6.825
ORRI INIT W.I 0.000 LIFE/YR 21.500 RATE-OF-RETURN, % 100.00
INIT N.I 2.976 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.474 2.948 0.044 0.088 18.980 2.660 1.066 0.000 0.000 0.099 0.967
1997 3.336 6.672 0.099 0.199 18.980 2.660 2.413 0.000 0.000 0.225 2.188
1998 3.069 6.138 0.091 0.183 18.980 2.660 2.220 0.000 0.000 0.207 2.013
1999 2.824 5.647 0.084 0.168 18.980 2.660 2.042 0.000 0.000 0.190 1.852
2000 2.598 5.195 0.077 0.155 18.980 2.660 1.879 0.000 0.000 0.175 1.704
2001 2.390 4.780 0.071 0.142 18.980 2.660 1.729 0.000 0.000 0.161 1.567
2002 2.199 4.397 0.065 0.131 18.980 2.660 1.590 0.000 0.000 0.148 1.442
2003 2.023 4.046 0.060 0.120 18.980 2.660 1.463 0.000 0.000 0.136 1.327
2004 1.861 3.722 0.055 0.111 18.980 2.660 1.346 0.000 0.000 0.125 1.221
2005 1.712 3.424 0.051 0.102 18.980 2.660 1.238 0.000 0.000 0.115 1.123
SUB 23.486 46.969 0.699 1.398 18.980 2.660 16.986 0.000 0.000 1.581 15.404
REM 12.499 24.998 0.372 0.744 18.980 2.660 9.041 0.000 0.000 0.841 8.197
TOT 35.985 71.967 1.071 2.142 18.980 2.660 26.027 0.000 0.000 2.422 23.601
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.967 0.948
1997 3.155 2.007
1998 5.168 1.679
1999 7.020 1.404
2000 8.724 1.174
2001 10.291 0.982
2002 11.733 0.821
2003 13.060 0.687
2004 14.281 0.575
2005 15.404 0.481
SUB 15.404 10.758
REM 23.601 2.171
TOT 23.601 12.929
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TIOGA-MADISON UNIT P.W. % P.W., M$
AMERADA HESS CORP OIL GAS ------ --------
TIOGA (MADISON) ---------- ---------- 10.00 212.178
ND, WILLIAMS GROSS WELLS 1.000 0.000 15.00 169.390
MADISON GROSS CUM. MB & MMF 58040.424 82838.784 20.00 141.974
29158N 94W GROSS RES. MB & MMF 2112.812 7294.384 25.00 122.900
SEQ: 27 GROSS ULT. MB & MMF 60153.236 90133.168 30.00 108.854
ORRI. INIT W.I 0.000 LIFE/YR 45.250 RATE-OF-RETURN, % 100.00
INIT N.I 0.841 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 65.381 285.078 0.550 2.398 18.570 2.660 16.593 0.000 0.000 1.272 15.321
1997 149.080 640.170 1.254 5.385 18.570 2.660 37.614 0.000 0.000 2.897 34.716
1998 138.644 582.554 1.166 4.901 18.570 2.660 34.694 0.000 0.000 2.690 32.004
1999 128.939 530.125 1.085 4.460 18.570 2.660 32.005 0.000 0.000 2.498 29.507
2000 119.913 482.413 1.009 4.058 18.570 2.660 29.527 0.000 0.000 2.319 27.208
2001 111.520 438.996 0.938 3.693 18.570 2.660 27.244 0.000 0.000 2.154 25.091
2002 103.713 399.487 0.872 3.361 18.570 2.660 25.141 0.000 0.000 2.000 23.141
2003 96.453 363.533 0.811 3.058 18.570 2.660 23.202 0.000 0.000 1.857 21.345
2004 89.701 330.815 0.755 2.783 18.570 2.660 21.415 0.000 0.000 1.725 19.691
2005 83.422 301.041 0.702 2.532 18.570 2.660 19.768 0.000 0.000 1.602 18.167
SUB 1086.766 4354.212 9.142 36.629 18.570 2.660 267.203 0.000 0.000 21.014 246.191
REM 1026.045 2940.171 8.631 24.734 18.570 2.660 226.076 0.000 0.000 19.441 206.635
TOT 2112.811 7294.383 17.774 61.363 18.570 2.660 493.279 0.000 0.000 40.455 452.826
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 15.321 15.022
1997 50.037 31.844
1998 82.041 26.688
1999 111.548 22.369
2000 138.756 18.751
2001 163.847 15.720
2002 186.988 13.180
2003 208.333 11.052
2004 228.024 9.268
2005 246.191 7.774
SUB 246.191 171.668
REM 452.826 40.514
TOT 452.826 212.182
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FEDERAL 6 COM P.W. % P.W., M$
UNION OIL CO OF CAL OIL GAS ------ --------
QUAIL RIDGE (MORROW) PM ---------- ---------- 10.00 96.936
NM, LEA GROSS WELLS 1.000 0.000 15.00 87.005
MORROW GROSS CUM. MB & MMF 70.585 5367.331 20.00 79.098
6C 20S 34E GROSS RES. MB & MMF 6.560 1030.782 25.00 72.674
SEQ: 31 GROSS ULT. MB & MMF 77.145 6398.113 30.00 67.362
INIT W.I 7.960 LIFE/YR 12.500 RATE-OF-RETURN, % 100.00
INIT N.I 6.153 OPC/W 2369 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.621 97.512 0.038 6.000 19.740 2.500 15.753 0.943 0.000 1.103 13.708
1997 1.274 200.155 0.078 12.316 19.740 2.500 32.336 2.263 0.000 2.264 27.810
1998 1.019 160.124 0.063 9.852 19.740 2.500 25.869 2.263 0.000 1.811 21.795
1999 0.815 128.099 0.050 7.882 19.740 2.500 20.695 2.263 0.000 1.449 16.983
2000 0.652 102.480 0.040 6.306 19.740 2.500 16.556 2.263 0.000 1.159 13.134
2001 0.522 81.984 0.032 5.044 19.740 2.500 13.245 2.263 0.000 0.927 10.055
2002 0.417 65.587 0.026 4.036 19.740 2.500 10.596 2.263 0.000 0.742 7.591
2003 0.334 52.470 0.021 3.228 19.740 2.500 8.477 2.263 0.000 0.593 5.620
2004 0.267 41.976 0.016 2.583 19.740 2.500 6.781 2.263 0.000 0.475 4.044
2005 0.214 33.580 0.013 2.066 19.739 2.500 5.425 2.263 0.000 0.380 2.782
SUB 6.135 963.967 0.377 59.313 19.740 2.500 155.733 21.310 0.000 10.903 123.522
REM 0.425 66.816 0.026 4.111 19.740 2.500 10.795 6.978 0.000 0.755 3.061
TOT 6.560 1030.783 0.404 63.424 19.740 2.500 166.528 28.288 0.000 11.658 126.583
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 13.708 13.443
1997 41.518 25.541
1998 63.313 18.198
1999 80.296 12.892
2000 93.430 9.064
2001 103.485 6.309
2002 111.076 4.331
2003 116.696 2.915
2004 120.740 1.907
2005 123.522 1.194
SUB 123.522 95.794
REM 126.583 1.140
TOT 126.583 96.934
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GILLIAM P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CAUDILL NE ---------- ---------- 10.00 0.076
NM, LEA GROSS WELLS 1.000 0.000 15.00 0.076
WOLFCAMP GROSS CUM. MB & MMF 267.021 268.070 20.00 0.076
2I 15S 36E GROSS RES. MB & MMF 0.397 0.634 25.00 0.075
SEQ: 202 GROSS ULT. MB & MMF 267.418 268.704 30.00 0.075
INIT W.I 50.000 LIFE/YR 0.167 RATE-OF-RETURN, % 100.00
INIT N.I 37.766 OPC/W 3592 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.397 0.634 0.150 0.240 20.500 3.650 3.945 3.592 0.000 0.276 0.076
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.397 0.634 0.150 0.240 20.500 3.650 3.945 3.592 0.000 0.276 0.076
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.397 0.634 0.150 0.240 20.500 3.650 3.945 3.592 0.000 0.276 0.076
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.076 0.076
1997 0.076 0.000
1998 0.076 0.000
1999 0.076 0.000
2000 0.076 0.000
2001 0.076 0.000
2002 0.076 0.000
2003 0.076 0.000
2004 0.076 0.000
2005 0.076 0.000
SUB 0.076 0.076
REM 0.076 0.000
TOT 0.076 0.076
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B1-PROVED NON-PRODUCING
GILLIAM #1 - PDNP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CAUDILL NE ---------- ---------- 10.00 36.319
NM, LEA GROSS WELLS 1.000 0.000 15.00 27.600
WOLFCAMP GROSS CUM. MB & MMF 0.000 0.000 20.00 20.978
2I 15S 36E GROSS RES. MB & MMF 22.643 0.000 25.00 15.839
SEQ: 248 GROSS ULT. MB & MMF 22.643 0.000 30.00 11.774
DRILL SWD WELL TO REDUCE LOE. INIT W.I 50.000 LIFE/YR 13.250 RATE-OF-RETURN, % 56.33
INIT N.I 37.766 OPC/W 845 UNDISC NET/INVEST 2.90
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 3.114 0.000 1.176 0.000 20.500 0.000 24.109 4.648 33.900 1.688 -16.127
1998 3.006 0.000 1.135 0.000 20.500 0.000 23.270 5.070 0.000 1.629 16.571
1999 2.645 0.000 0.999 0.000 20.500 0.000 20.478 5.070 0.000 1.433 13.974
2000 2.328 0.000 0.879 0.000 20.500 0.000 18.021 5.070 0.000 1.261 11.689
2001 2.048 0.000 0.774 0.000 20.500 0.000 15.858 5.070 0.000 1.110 9.678
2002 1.803 0.000 0.681 0.000 20.500 0.000 13.955 5.070 0.000 0.977 7.908
2003 1.586 0.000 0.599 0.000 20.500 0.000 12.281 5.070 0.000 0.860 6.351
2004 1.396 0.000 0.527 0.000 20.500 0.000 10.807 5.070 0.000 0.756 4.980
2005 1.228 0.000 0.464 0.000 20.500 0.000 9.510 5.070 0.000 0.666 3.774
SUB 19.154 0.000 7.234 0.000 20.500 0.000 148.289 45.208 33.900 10.380 58.798
REM 3.489 0.000 1.318 0.000 20.500 0.000 27.018 19.435 0.000 1.892 5.690
TOT 22.643 0.000 8.551 0.000 20.500 0.000 175.307 64.643 33.900 12.272 64.488
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -16.127 -16.078
1998 0.444 13.828
1999 14.418 10.601
2000 26.107 8.062
2001 35.785 6.069
2002 43.693 4.509
2003 50.044 3.292
2004 55.024 2.348
2005 58.798 1.618
SUB 58.798 34.249
REM 64.488 2.070
TOT 64.488 36.319
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
JACKSON UNIT P.W. % P.W., M$
MURCHISON OIL & GAS INC OIL GAS ------ --------
JOHNSON RANCH (WOLFCAMP) WC ---------- ---------- 10.00 221.322
NM, LEA GROSS WELLS 1.000 0.000 15.00 176.239
WOLFCAMP GROSS CUM. MB & MMF 223.969 2098.329 20.00 147.346
22G 24S 33E GROSS RES. MB & MMF 172.413 1724.131 25.00 127.282
SEQ: 30 GROSS ULT. MB & MMF 396.382 3822.460 30.00 112.541
INIT W.I 8.330 LIFE/YR 48.833 RATE-OF-RETURN, % 100.00
INIT N.I 6.800 OPC/W 1129 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 5.288 52.882 0.360 3.596 19.930 2.810 17.271 0.470 0.000 1.209
1997 12.058 120.579 0.820 8.199 19.930 2.810 39.382 1.129 0.000 2.757
1998 11.214 112.139 0.763 7.625 19.930 2.810 36.625 1.129 0.000 2.564
1999 10.429 104.289 0.709 7.092 19.930 2.810 34.061 1.129 0.000 2.384
2000 9.699 96.989 0.660 6.595 19.930 2.810 31.677 1.129 0.000 2.217
2001 9.020 90.200 0.613 6.134 19.930 2.810 29.460 1.129 0.000 2.062
2002 8.389 83.886 0.570 5.704 19.930 2.810 27.397 1.129 0.000 1.918
2003 7.801 78.014 0.530 5.305 19.930 2.810 25.480 1.129 0.000 1.784
2004 7.255 72.553 0.493 4.934 19.930 2.810 23.696 1.129 0.000 1.659
2005 6.747 67.474 0.459 4.588 19.930 2.810 22.037 1.129 0.000 1.543
SUB 87.900 879.005 5.977 59.772 19.930 2.810 287.086 10.631 0.000 20.097
REM 84.513 845.127 5.747 57.469 19.930 2.810 276.025 44.496 0.000 19.321
TOT 172.413 1724.132 11.724 117.241 19.930 2.810 563.111 55.127 0.000 39.418
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 15.592 15.592 15.288
1997 35.496 51.088 32.558
1998 32.933 84.021 27.461
1999 30.548 114.569 23.157
2000 28.331 142.900 19.524
2001 26.269 169.169 16.457
2002 24.351 193.520 13.869
2003 22.567 216.087 11.684
2004 20.909 236.996 9.841
2005 19.366 256.362 8.287
SUB 256.362 256.362 178.126
REM 212.216 468.578 43.194
TOT 468.578 468.578 221.320
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICTIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MUSKEGON 20 ST. COM. P.W. % P.W., M$
SANTA FE ENERGY RES INC OIL GAS ------ --------
EMPIRE SOUTH (MORROW) PM ---------- ---------- 10.00 249.744
NM, EDDY GROSS WELLS 1.000 0.000 15.00 230.765
MORROW GROSS CUM. MB & MMF 56.573 2935.866 20.00 214.884
20H 17S 29E GROSS RES. MB & MMF 1.790 668.992 25.00 201.423
SEQ: 29 GROSS ULT. MB & MMF 58.363 3604.858 30.00 189.881
INIT W.I 24.688 LIFE/YR 7.583 RATE-OF-RETURN, % 100.00
INIT N.I 18.506 OPC/W 1292 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.399 99.009 0.074 18.323 17.760 2.820 52.981 1.595 0.000 3.709 47.677
1997 0.635 185.381 0.117 34.307 17.760 2.820 98.830 3.828 0.000 6.918 88.084
1998 0.349 129.767 0.065 24.015 17.760 2.820 68.868 3.828 0.000 4.821 60.220
1999 0.192 90.837 0.036 16.810 17.760 2.820 48.036 3.828 0.000 3.362 40.846
2000 0.106 63.586 0.020 11.767 17.760 2.820 33.530 3.828 0.000 2.347 27.356
2001 0.058 44.510 0.011 8.237 17.760 2.820 23.419 3.828 0.000 1.639 17.952
2002 0.032 31.157 0.006 5.766 17.761 2.820 16.365 3.828 0.000 1.146 11.392
2003 0.018 21.810 0.003 4.036 17.758 2.820 11.440 3.828 0.000 0.801 6.811
2004 0.002 2.937 0.000 0.544 17.751 2.820 1.539 0.638 0.000 0.108 0.794
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.791 668.994 0.331 123.804 17.760 2.820 355.008 29.029 0.000 24.851 301.132
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.791 668.994 0.331 123.804 17.760 2.820 355.008 29.029 0.000 24.851 301.132
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 47.677 46.766
1997 135.761 80.986
1998 195.981 50.336
1999 236.827 31.040
2000 264.183 18.901
2001 282.135 11.279
2002 293.527 6.508
2003 300.338 3.540
2004 301.132 0.388
2005 301.132 0.000
SUB 301.132 249.744
REM 301.132 0.000
TOT 301.132 249.744
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SHIPP 34-A P.W. % P.W., M$
CODY ENERGY INC OIL GAS ------ --------
CASEY (STRAWN) PS ---------- ---------- 10.00 158.302
NM, LEA GROSS WELLS 1.000 0.000 15.00 121.753
STRAWN GROSS CUM. MB & MMF 799.034 916.714 20.00 99.531
34C 16S 37E GROSS RES. MB & MMF 811.855 1522.227 25.00 84.647
SEQ: 32 GROSS ULT. MB & MMF 1610.889 2438.941 30.00 73.992
INIT W.I 4.150 LIFE/YR 50.917 RATE-OF-RETURN, % 100.00
INIT N.I 3.030 OPC/W 6589 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 15.650 29.344 0.474 0.889 19.750 2.570 11.651 1.367 0.000 0.816 9.468
1997 36.492 68.423 1.106 2.073 19.750 2.570 27.166 3.281 0.000 1.902 21.983
1998 35.033 65.686 1.061 1.990 19.750 2.570 26.079 3.281 0.000 1.826 20.973
1999 33.631 63.059 1.019 1.911 19.750 2.570 25.036 3.281 0.000 1.753 20.002
2000 32.286 60.536 0.978 1.834 19.750 2.570 24.035 3.281 0.000 1.682 19.071
2001 30.995 58.115 0.939 1.761 19.750 2.570 23.073 3.281 0.000 1.615 18.177
2002 29.755 55.790 0.902 1.690 19.750 2.570 22.150 3.281 0.000 1.551 17.319
2003 28.565 53.559 0.866 1.623 19.750 2.570 21.264 3.281 0.000 1.489 16.495
2004 27.422 51.416 0.831 1.558 19.750 2.570 20.414 3.281 0.000 1.429 15.704
2005 26.325 49.360 0.798 1.496 19.750 2.570 19.597 3.281 0.000 1.372 14.944
SUB 296.154 555.288 8.973 16.825 19.750 2.570 220.465 30.896 0.000 15.435 174.136
REM 515.704 966.937 15.626 29.298 19.750 2.570 383.904 136.166 0.000 26.876 220.855
TOT 811.858 1522.225 24.599 46.123 19.750 2.570 604.369 167.062 0.000 42.311 394.991
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.468 9.283
1997 31.451 20.159
1998 52.424 17.484
1999 72.426 15.159
2000 91.497 13.140
2001 109.674 11.385
2002 126.993 9.861
2003 143.488 8.538
2004 159.192 7.390
2005 174.136 6.393
SUB 174.136 118.792
REM 394.991 39.511
TOT 394.991 158.303
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STATE 17 P.W. % P.W., M$
MERIT ENERGY CORP OIL GAS ------ --------
AUSTIN (MISSISSIPPIAN) MI ---------- ---------- 10.00 118.980
NM, LEA GROSS WELLS 1.000 0.000 15.00 94.241
MISSISSIPPIAN GROSS CUM. MB & MMF 20.793 1914.533 20.00 78.458
17F 14S 36E GROSS RES. MB & MMF 4.760 1410.253 25.00 67.553
SEQ: 33 GROSS ULT. MB & MMF 25.553 3324.786 30.00 59.577
INIT W.I 12.500 LIFE/YR 42.500 RATE-OF-RETURN, % 100.00
INIT N.I 10.250 OPC/W 1021 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.131 38.683 0.013 3.965 19.580 2.300 9.381 0.638 0.000 0.657 8.087
1997 0.300 88.869 0.031 9.109 19.580 2.300 21.553 1.532 0.000 1.509 18.513
1998 0.282 83.537 0.029 8.563 19.580 2.300 20.260 1.532 0.000 1.418 17.310
1999 0.265 78.525 0.027 8.049 19.580 2.300 19.044 1.532 0.000 1.333 16.179
2000 0.249 73.813 0.026 7.566 19.580 2.300 17.901 1.532 0.000 1.253 15.117
2001 0.234 69.384 0.024 7.112 19.580 2.300 16.827 1.532 0.000 1.178 14.118
2002 0.220 65.221 0.023 6.685 19.580 2.300 15.818 1.532 0.000 1.107 13.179
2003 0.207 61.308 0.021 6.284 19.580 2.300 14.869 1.532 0.000 1.041 12.296
2004 0.194 57.630 0.020 5.907 19.580 2.300 13.977 1.532 0.000 0.978 11.467
2005 0.183 54.172 0.019 5.553 19.580 2.300 13.138 1.532 0.000 0.920 10.687
SUB 2.265 671.142 0.232 68.792 19.580 2.300 162.768 14.426 0.000 11.394 136.953
REM 2.495 739.112 0.256 75.759 19.580 2.300 179.252 50.681 0.000 12.550 116.039
TOT 4.760 1410.254 0.488 144.551 19.580 2.300 342.020 65.107 0.000 23.944 252.992
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.087 7.929
1997 26.600 16.979
1998 43.910 14.433
1999 60.089 12.264
2000 75.206 10.417
2001 89.324 8.844
2002 102.503 7.505
2003 114.799 6.366
2004 126.266 5.397
2005 136.953 4.573
SUB 136.953 94.707
REM 252.992 24.275
TOT 252.992 118.982
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STATE 32 P.W. % P.W., M$
COASTAL OIL & GAS CORP OIL GAS ------ --------
BAUM (UPPER PENN) UP ---------- ---------- 10.00 53.305
NM, LEA GROSS WELLS 1.000 0.000 15.00 43.782
UPPER PENN GROSS CUM. MB & MMF 77.208 359.709 20.00 37.408
32N 13S 33E GROSS RES. MB & MMF 8.369 108.794 25.00 32.839
SEQ: 503 GROSS ULT. MB & MMF 85.577 468.503 30.00 29.400
INIT W.I 35.000 LIFE/YR 40.833 RATE-OF-RETURN, % 100.00
INIT N.I 26.646 OPC/W 1859 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.388 5.042 0.103 1.344 19.740 2.170 4.956 0.000 0.000 0.347 4.609
1997 0.842 10.952 0.224 2.918 19.740 2.170 10.764 0.000 0.000 0.753 10.010
1998 0.739 9.602 0.197 2.559 19.740 2.170 9.437 0.000 0.000 0.661 8.777
1999 0.655 8.513 0.174 2.268 19.740 2.170 8.367 0.000 0.000 0.586 7.781
2000 0.586 7.618 0.156 2.030 19.740 2.170 7.487 0.000 0.000 0.524 6.963
2001 0.527 6.854 0.140 1.826 19.740 2.170 6.737 0.000 0.000 0.472 6.265
2002 0.475 6.169 0.126 1.644 19.740 2.170 6.063 0.000 0.000 0.424 5.639
2003 0.427 5.552 0.114 1.479 19.740 2.170 5.457 0.000 0.000 0.382 5.075
2004 0.384 4.997 0.102 1.331 19.740 2.170 4.911 0.000 0.000 0.344 4.567
2005 0.346 4.497 0.092 1.198 19.740 2.170 4.420 0.000 0.000 0.309 4.111
SUB 5.369 69.796 1.431 18.598 19.740 2.170 68.599 0.000 0.000 4.802 63.797
REM 3.000 38.998 0.799 10.391 19.740 2.170 38.325 0.000 0.000 2.683 35.646
TOT 8.369 108.794 2.230 28.989 19.740 2.170 106.924 0.000 0.000 7.485 99.443
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 4.609 4.519
1997 14.619 9.186
1998 23.396 7.321
1999 31.177 5.900
2000 38.140 4.800
2001 44.405 3.926
2002 50.044 3.212
2003 55.119 2.628
2004 59.686 2.150
2005 63.797 1.759
SUB 63.797 45.401
REM 99.443 7.903
TOT 99.443 53.304
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STATE QE 13 P.W. % P.W., M$
MERIT ENERGY CORP OIL GAS ------ --------
RANGER LAKE (PENN) PN ---------- ---------- 10.00 161.491
NM, LEA GROSS WELLS 1.000 0.000 15.00 141.845
PENN GROSS CUM. MB & MMF 129.138 239.028 20.00 126.663
13N 12S 34E GROSS RES. MB & MMF 36.970 96.123 25.00 114.644
SEQ: 34 GROSS ULT. MB & MMF 166.108 335.151 30.00 104.928
INIT W.I 50.000 LIFE/YR 13.500 RATE-OF-RETURN, % 100.00
INIT N.I 37.480 OPC/W 1642 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.333 6.066 0.874 2.273 20.080 2.920 24.197 4.105 0.000 1.694 18.398
1997 5.117 13.305 1.918 4.987 20.080 2.920 53.075 9.852 0.000 3.715 39.508
1998 4.503 11.709 1.688 4.388 20.080 2.920 46.706 9.852 0.000 3.269 33.585
1999 3.963 10.304 1.485 3.862 20.080 2.920 41.101 9.852 0.000 2.877 28.372
2000 3.487 9.067 1.307 3.398 20.080 2.920 36.169 9.852 0.000 2.532 23.785
2001 3.069 7.979 1.150 2.991 20.080 2.920 31.829 9.852 0.000 2.228 19.749
2002 2.701 7.022 1.012 2.632 20.080 2.920 28.009 9.852 0.000 1.961 16.197
2003 2.377 6.179 0.891 2.316 20.080 2.920 24.648 9.852 0.000 1.725 13.071
2004 2.091 5.438 0.784 2.038 20.080 2.920 21.690 9.852 0.000 1.518 10.320
2005 1.840 4.785 0.690 1.793 20.080 2.920 19.088 9.852 0.000 1.336 7.899
SUB 31.481 81.854 11.799 30.678 20.080 2.920 326.512 92.773 0.000 22.855 210.884
REM 5.489 14.271 2.057 5.348 20.080 2.920 56.922 40.229 0.000 3.985 12.708
TOT 36.970 96.125 13.856 36.027 20.080 2.920 383.434 133.002 0.000 26.840 223.592
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 18.398 18.041
1997 57.906 36.262
1998 91.491 28.024
1999 119.863 21.524
2000 143.648 16.405
2001 163.397 12.384
2002 179.594 9.234
2003 192.665 6.775
2004 202.985 4.864
2005 210.884 3.386
SUB 210.884 156.899
REM 223.592 4.592
TOT 223.592 161.491
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BLACK 1-3 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ICONIUM NW ---------- ---------- 10.00 0.000
OK, LOGAN GROSS WELLS 1.000 0.000 15.00 0.000
WILCOX GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
3 16N 1E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 413 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
INIT W.I 100.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 86.133 OPC/W 500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- --($/BBL)-- --($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> B2-PROVED BEHIND-PIPE
BLACK 1-3 PDBP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ICONIUM NW ---------- ---------- 10.00 123.816
OK, LOGAN GROSS WELLS 1.000 0.000 15.00 107.975
WILCOX GROSS CUM. MB & MMF 0.000 0.000 20.00 95.297
3 16N 1E GROSS RES. MB & MMF 14.555 101.882 25.00 84.972
SEQ: 709 GROSS ULT. MB & MMF 14.555 101.882 30.00 76.434
RECOMPLETION. INIT W.I 100.000 LIFE/YR 11.000 RATE-OF-RETURN, % 100.00
INIT N.I 86.133 OPC/W 500 UNDISC NET/INVEST 12.36
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 2.738 19.163 2.358 16.506 2.660 2.660 50.177 5.000 15.000 3.560 26.617
1998 2.679 18.754 2.308 16.153 2.660 2.660 49.106 6.000 0.000 3.484 39.622
1999 2.143 15.003 1.846 12.923 2.660 2.660 39.284 6.000 0.000 2.787 30.497
2000 1.715 12.002 1.477 10.338 2.660 2.660 31.428 6.000 0.000 2.230 23.198
2001 1.372 9.602 1.181 8.270 2.660 2.660 25.142 6.000 0.000 1.784 17.358
2002 1.097 7.682 0.945 6.616 2.660 2.660 20.114 6.000 0.000 1.427 12.687
2003 0.878 6.145 0.756 5.293 2.660 2.660 16.091 6.000 0.000 1.142 8.949
2004 0.702 4.916 0.605 4.234 2.660 2.660 12.873 6.000 0.000 0.913 5.959
2005 0.562 3.933 0.484 3.388 2.660 2.660 10.298 6.000 0.000 0.731 3.568
SUB 13.886 97.200 11.960 83.721 2.660 2.660 254.513 53.000 15.000 18.058 168.455
REM 0.668 4.682 0.576 4.033 2.660 2.660 12.261 9.500 0.000 0.870 1.891
TOT 14.554 101.882 12.536 87.754 2.660 2.660 266.774 62.500 15.000 18.928 170.346
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 26.617 23.707
1998 66.239 33.085
1999 96.736 23.153
2000 119.934 16.012
2001 137.292 10.894
2002 149.979 7.240
2003 158.928 4.644
2004 164.887 2.813
2005 168.455 1.533
SUB 168.455 123.081
REM 170.346 0.734
TOT 170.346 123.815
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BOGGES 2-29 P.W. % P.W., M$
GERMANY (LATEX) OIL GAS ------ --------
STRONG CITY DISTRICT (RED FORK ---------- ---------- 10.00 428.386
OK, ROGER MILLS GROSS WELLS 1.000 0.000 15.00 346.946
RED FORK GROSS CUM. MB & MMF 12.987 4318.349 20.00 293.106
29 13N 22W GROSS RES. MB & MMF 7.386 2484.266 25.00 254.984
SEQ: 41 GROSS ULT. MB & MMF 20.373 6802.615 30.00 226.601
INIT W.I 18.750 LIFE/YR 38.417 RATE-OF-RETURN, % 100.00
INIT N.I 15.820 OPC/W 1496 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.263 88.420 0.042 13.988 19.740 2.550 36.490 1.403 0.000 2.589 32.499
1997 0.595 200.085 0.094 31.653 19.740 2.550 82.574 3.366 0.000 5.859 73.349
1998 0.547 184.078 0.087 29.121 19.740 2.550 75.968 3.366 0.000 5.390 67.212
1999 0.503 169.352 0.080 26.791 19.740 2.550 69.890 3.366 0.000 4.959 61.566
2000 0.463 155.803 0.073 24.648 19.740 2.550 64.299 3.366 0.000 4.562 56.371
2001 0.426 143.339 0.067 22.676 19.740 2.550 59.155 3.366 0.000 4.197 51.592
2002 0.392 131.872 0.062 20.862 19.740 2.550 54.423 3.366 0.000 3.861 47.196
2003 0.361 121.322 0.057 19.193 19.740 2.550 50.069 3.366 0.000 3.552 43.151
2004 0.332 111.617 0.052 17.658 19.740 2.550 46.063 3.366 0.000 3.268 39.429
2005 0.305 102.687 0.048 16.245 19.740 2.550 42.378 3.366 0.000 3.007 36.006
SUB 4.187 1408.575 0.662 222.836 19.740 2.550 581.309 31.697 0.000 41.244 508.371
REM 3.198 1075.690 0.506 170.174 19.740 2.550 443.934 97.614 0.000 31.496 314.820
TOT 7.385 2484.265 1.168 393.011 19.740 2.550 1025.243 129.311 0.000 72.740 823.191
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 32.499 31.866
1997 105.848 67.284
1998 173.060 56.050
1999 234.626 46.674
2000 290.997 38.851
2001 342.589 32.325
2002 389.785 26.882
2003 432.936 22.344
2004 472.365 18.561
2005 508.371 15.409
SUB 508.371 356.246
REM 823.191 72.142
TOT 823.191 428.388
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BOUCHER 1-5 P.W. % P.W., M$
LATEX OIL GAS ------ --------
OAKWOOD NORTH ---------- ---------- 10.00 213.639
OK, DEWEY GROSS WELLS 0.000 1.000 15.00 172.181
PRIMROSE GROSS CUM. MB & MMF 10.976 1552.672 20.00 145.079
5-17N-14W GROSS RES. MB & MMF 3.487 1162.416 25.00 126.008
SEQ: 220 GROSS ULT. MB & MMF 14.463 2715.088 30.00 111.861
INIT W.I 20.696 LIFE/YR 45.250 RATE-OF-RETURN, % 100.00
INIT N.I 16.298 OPC/W 370 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.122 40.625 0.020 6.621 18.480 2.600 17.582 0.383 0.000 1.247 15.952
1997 0.276 91.931 0.045 14.983 18.480 2.600 39.786 0.919 0.000 2.823 36.044
1998 0.254 84.576 0.041 13.784 18.480 2.600 36.603 0.919 0.000 2.597 33.087
1999 0.233 77.810 0.038 12.682 18.480 2.600 33.675 0.919 0.000 2.389 30.367
2000 0.215 71.585 0.035 11.667 18.480 2.600 30.981 0.919 0.000 2.198 27.864
2001 0.198 65.859 0.032 10.734 18.480 2.600 28.502 0.919 0.000 2.022 25.561
2002 0.182 60.590 0.030 9.875 18.480 2.600 26.222 0.919 0.000 1.860 23.443
2003 0.167 55.743 0.027 9.085 18.480 2.600 24.125 0.919 0.000 1.712 21.494
2004 0.154 51.283 0.025 8.358 18.480 2.600 22.195 0.919 0.000 1.575 19.701
2005 0.142 47.181 0.023 7.689 18.480 2.600 20.419 0.919 0.000 1.449 18.051
SUB 1.943 647.183 0.316 105.478 18.480 2.600 280.090 8.654 0.000 19.872 251.564
REM 1.548 515.234 0.252 83.973 18.480 2.600 222.982 32.930 0.000 15.820 174.237
TOT 3.491 1162.417 0.568 189.450 18.480 2.600 503.072 41.584 0.000 35.692 425.801
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 15.952 15.641
1997 51.996 33.064
1998 85.083 27.592
1999 115.450 23.021
2000 143.314 19.203
2001 168.875 16.015
2002 192.318 13.353
2003 213.812 11.130
2004 233.513 9.274
2005 251.564 7.725
SUB 251.564 176.018
REM 425.801 37.622
TOT 425.801 213.640
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> A-PROVED DEVE PRODUCING
BURNS ESTATE P.W. % P.W., M$
SAMSON RESOURCES CO OIL GAS ------ --------
REYDON (MORROW UPPER) ---------- ---------- 10.00 288.524
OK, ROGER MILLS GROSS WELLS 0.000 1.000 15.00 231.137
MORROW UPPER GROSS CUM. MB & MMF 0.041 12556.626 20.00 193.861
10 13N 26W GROSS RES. MB & MMF 0.000 4969.743 25.00 167.788
SEQ: 39 GROSS ULT. MB & MMF 0.041 17526.369 30.00 148.547
INIT W.I 6.250 LIFE/YR 40.583 RATE-OF-RETURN, % 100.00
INIT N.I 5.078 OPC/W 3745 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUET
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 156.242 0.000 7.934 0.000 2.970 23.565 1.170 0.000 1.672 20.722
1997 0.000 356.257 0.000 18.091 0.000 2.970 53.731 2.809 0.000 3.812 47.110
1998 0.000 331.319 0.000 16.825 0.000 2.970 49.970 2.809 0.000 3.545 43.616
1999 0.000 308.127 0.000 15.647 0.000 2.970 46.472 2.809 0.000 3.297 40.366
2000 0.000 286.558 0.000 14.552 0.000 2.970 43.219 2.809 0.000 3.066 37.344
2001 0.000 266.499 0.000 13.533 0.000 2.970 40.193 2.809 0.000 2.852 34.533
2002 0.000 247.844 0.000 12.586 0.000 2.970 37.380 2.809 0.000 2.652 31.919
2003 0.000 230.495 0.000 11.705 0.000 2.970 34.763 2.809 0.000 2.466 29.488
2004 0.000 214.360 0.000 10.885 0.000 2.970 32.330 2.809 0.000 2.294 27.227
2005 0.000 199.355 0.000 10.124 0.000 2.970 30.067 2.809 0.000 2.133 25.125
SUB 0.000 2597.056 0.000 131.882 0.000 2.970 391.690 26.451 0.000 27.789 337.450
REM 0.000 2372.686 0.000 120.488 0.000 2.970 357.852 87.546 0.000 25.390 244.919
TOT 0.000 4969.742 0.000 252.370 0.000 2.970 749.542 113.997 0.000 53.179 582.369
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C>
1996 20.722 20.318
1997 67.832 43.211
1998 111.448 36.369
1999 151.814 30.600
2000 189.158 25.735
2001 223.691 21.635
2002 255.610 18.179
2003 285.098 15.268
2004 312.325 12.816
2005 337.450 10.751
SUB 337.450 234.882
REM 582.369 53.642
TOT 582.369 288.524
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CLIFT 1-4 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (RED FORK) ---------- ---------- 10.00 20.724
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 16.438
PRUE GROSS CUM. MB & MMF 42.440 1704.918 20.00 13.694
4 14N 19W GROSS RES. MB & MMF 6.781 828.766 25.00 11.800
SEQ: 504 GROSS ULT. MB & MMF 49.221 2533.684 30.00 10.419
ORRI INIT W.I 0.000 LIFE/YR 26.750 RATE-OF-RETURN, % 100.00
INIT N.I 2.336 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.283 28.382 0.007 0.663 19.741 2.200 1.589 0.000 0.000 0.113 1.476
1997 0.625 63.547 0.015 1.484 19.740 2.200 3.554 0.000 0.000 0.252 3.302
1998 0.560 58.035 0.013 1.356 19.739 2.200 3.240 0.000 0.000 0.230 3.011
1999 0.505 53.441 0.012 1.248 19.740 2.200 2.979 0.000 0.000 0.211 2.768
2000 0.459 49.550 0.011 1.157 19.741 2.200 2.758 0.000 0.000 0.196 2.562
2001 0.420 46.210 0.010 1.079 19.741 2.200 2.568 0.000 0.000 0.182 2.386
2002 0.385 43.329 0.009 1.012 19.740 2.200 2.404 0.000 0.000 0.171 2.234
2003 0.355 40.760 0.008 0.952 19.740 2.200 2.258 0.000 0.000 0.160 2.098
2004 0.326 38.314 0.008 0.895 19.741 2.200 2.119 0.000 0.000 0.150 1.969
2005 0.300 36.015 0.007 0.841 19.741 2.200 1.989 0.000 0.000 0.141 1.848
SUB 4.218 457.583 0.099 10.689 19.740 2.200 25.458 0.000 0.000 1.806 23.654
REM 2.562 371.184 0.060 8.670 19.740 2.200 20.256 0.000 0.000 1.437 18.819
TOT 6.780 828.767 0.158 19.359 19.740 2.200 45.714 0.000 0.000 3.243 42.473
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.476 1.447
1997 4.778 3.029
1998 7.789 2.511
1999 10.557 2.098
2000 13.119 1.766
2001 15.505 1.495
2002 17.739 1.272
2003 19.837 1.086
2004 21.806 0.927
2005 23.654 0.791
SUB 23.654 16.422
REM 42.473 4.303
TOT 42.473 20.725
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CLIFT 2-4 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (ATOK-SKNR) ---------- ---------- 10.00 32.652
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 26.938
CHEROKEE GROSS CUM. MB & MMF 76.043 3243.842 20.00 23.017
4 14N 19W GROSS RES. MB & MMF 10.258 1025.798 25.00 20.179
SEQ: 505 GROSS ULT. MB & MMF 86.301 4269.640 30.00 18.034
ORRI INIT W.I 0.000 LIFE/YR 21.917 RATE-OF-RETURN, % 100.00
INIT N.I 2.336 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.489 48.918 0.011 1.143 19.740 2.350 2.911 0.000 0.000 0.207 2.704
1997 1.090 109.003 0.025 2.546 19.740 2.350 6.486 0.000 0.000 0.460 6.026
1998 0.981 98.103 0.023 2.292 19.740 2.350 5.838 0.000 0.000 0.414 5.423
1999 0.883 88.292 0.021 2.062 19.740 2.350 5.254 0.000 0.000 0.373 4.881
2000 0.795 79.463 0.019 1.856 19.740 2.350 4.728 0.000 0.000 0.335 4.393
2001 0.715 71.517 0.017 1.671 19.740 2.350 4.256 0.000 0.000 0.302 3.954
2002 0.644 64.365 0.015 1.504 19.740 2.350 3.830 0.000 0.000 0.272 3.558
2003 0.579 57.929 0.014 1.353 19.739 2.350 3.447 0.000 0.000 0.245 3.202
2004 0.521 52.136 0.012 1.218 19.741 2.350 3.102 0.000 0.000 0.220 2.882
2005 0.469 46.922 0.011 1.096 19.739 2.350 2.792 0.000 0.000 0.198 2.594
SUB 7.166 716.648 0.167 16.740 19.740 2.350 42.644 0.000 0.000 3.026 39.617
REM 3.091 309.151 0.072 7.221 19.740 2.350 18.397 0.000 0.000 1.304 17.092
TOT 10.257 1025.799 0.240 23.962 19.740 2.350 61.041 0.000 0.000 4.330 56.709
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.704 2.652
1997 8.730 5.529
1998 14.153 4.523
1999 19.034 3.701
2000 23.427 3.028
2001 27.381 2.477
2002 30.939 2.027
2003 34.141 1.658
2004 37.023 1.357
2005 39.617 1.110
SUB 39.617 28.062
REM 56.709 4.588
TOT 56.709 32.650
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CLIFT 3-4 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 24.590
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 21.230
CHEROKEE GROSS CUM. MB & MMF 25.761 1765.662 20.00 18.725
4 14N 19W GROSS RES. MB & MMF 5.324 665.514 25.00 16.797
SEQ: 506 GROSS ULT. MB & MMF 31.085 2431.176 30.00 15.274
ORRI INIT W.I 0.000 LIFE/YR 14.250 RATE-OF-RETURN, % 100.00
INIT N.I 2.336 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.387 48.345 0.009 1.129 19.741 2.340 2.821 0.000 0.000 0.200 2.621
1997 0.828 103.505 0.019 2.418 19.740 2.340 6.039 0.000 0.000 0.428 5.611
1998 0.704 87.979 0.016 2.055 19.740 2.340 5.133 0.000 0.000 0.364 4.769
1999 0.598 74.782 0.014 1.747 19.740 2.340 4.363 0.000 0.000 0.310 4.054
2000 0.509 63.565 0.012 1.485 19.741 2.340 3.709 0.000 0.000 0.263 3.446
2001 0.432 54.030 0.010 1.262 19.739 2.340 3.153 0.000 0.000 0.224 2.929
2002 0.367 45.926 0.009 1.073 19.741 2.340 2.680 0.000 0.000 0.190 2.490
2003 0.312 39.037 0.007 0.912 19.740 2.340 2.278 0.000 0.000 0.162 2.116
2004 0.265 33.181 0.006 0.775 19.739 2.340 1.936 0.000 0.000 0.137 1.799
2005 0.226 28.204 0.005 0.659 19.738 2.340 1.646 0.000 0.000 0.117 1.529
SUB 4.628 578.554 0.108 13.514 19.740 2.340 33.758 0.000 0.000 2.395 31.364
REM 0.697 86.961 0.016 2.031 19.740 2.340 5.075 0.000 0.000 0.360 4.715
TOT 5.325 665.515 0.124 15.546 19.740 2.340 38.833 0.000 0.000 2.755 36.079
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.621 2.570
1997 8.232 5.150
1998 13.001 3.980
1999 17.055 3.075
2000 20.501 2.376
2001 23.430 1.836
2002 25.920 1.419
2003 28.036 1.096
2004 29.835 0.847
2005 31.364 0.655
SUB 31.364 23.004
REM 36.079 1.585
TOT 36.079 24.589
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CLIFT 4-4 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 24.788
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 21.401
PRUE GROSS CUM. MB & MMF 14.594 856.547 20.00 18.876
4 14N 19W GROSS RES. MB & MMF 4.991 665.514 25.00 16.933
SEQ: 507 GROSS ULT. MB & MMF 19.585 1522.061 30.00 15.397
ORRI INIT W.I 0.000 LIFE/YR 14.250 RATE-OF-RETURN, % 100.00
INIT N.I 2.336 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.363 48.345 0.008 1.129 19.739 2.370 2.844 0.000 0.000 0.202 2.642
1997 0.776 103.505 0.018 2.418 19.740 2.370 6.088 0.000 0.000 0.432 5.656
1998 0.660 87.979 0.015 2.055 19.740 2.370 5.175 0.000 0.000 0.367 4.808
1999 0.561 74.782 0.013 1.747 19.740 2.370 4.399 0.000 0.000 0.312 4.087
2000 0.477 63.565 0.011 1.485 19.740 2.370 3.739 0.000 0.000 0.265 3.474
2001 0.405 54.030 0.009 1.262 19.739 2.370 3.178 0.000 0.000 0.225 2.953
2002 0.344 45.926 0.008 1.073 19.739 2.370 2.701 0.000 0.000 0.192 2.510
2003 0.293 39.037 0.007 0.912 19.740 2.370 2.296 0.000 0.000 0.163 2.133
2004 0.249 33.181 0.006 0.775 19.740 2.370 1.952 0.000 0.000 0.138 1.813
2005 0.212 28.204 0.005 0.659 19.741 2.370 1.659 0.000 0.000 0.118 1.541
SUB 4.340 578.554 0.101 13.514 19.740 2.370 34.031 0.000 0.000 2.414 31.617
REM 0.652 86.961 0.015 2.031 19.741 2.370 5.116 0.000 0.000 0.362 4.753
TOT 4.992 665.515 0.117 15.546 19.740 2.370 39.147 0.000 0.000 2.776 36.370
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.642 2.591
1997 8.298 5.192
1998 13.106 4.012
1999 17.193 3.100
2000 20.667 2.395
2001 23.620 1.851
2002 26.130 1.430
2003 28.263 1.105
O2004 30.076 0.854
02005 31.617 0.660
SUB 31.617 23.190
REM 36.370 1.598
TOT 36.370 24.788
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> <C>
A-PROVED DEVE PRODUCING
CLIFT 4-5 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 26.919
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 22.241
PRUE GROSS CUM. MB & MMF 9.240 526.638 20.00 19.017
4 14N 19W GROSS RES. MB & MMF 0.000 911.903 25.00 16.677
SEQ: 508 GROSS ULT. MB & MMF 9.240 1438.541 30.00 14.907
ORRI INIT W.I 0.000 LIFE/YR 20.917 RATE-OF-RETURN, % 100.00
INIT N.I 2.336 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 44.027 0.000 1.028 0.000 2.340 2.406 0.000 0.000 0.171 2.236
1997 0.000 98.103 0.000 2.292 0.000 2.340 5.362 0.000 0.000 0.380 4.982
1998 0.000 88.292 0.000 2.062 0.000 2.340 4.826 0.000 0.000 0.342 4.484
1999 0.000 79.463 0.000 1.856 0.000 2.340 4.343 0.000 0.000 0.308 4.035
2000 0.000 71.517 0.000 1.671 0.000 2.340 3.909 0.000 0.000 0.277 3.632
2001 0.000 64.365 0.000 1.504 0.000 2.340 3.518 0.000 0.000 0.250 3.269
2002 0.000 57.929 0.000 1.353 0.000 2.340 3.166 0.000 0.000 0.225 2.942
2003 0.000 52.136 0.000 1.218 0.000 2.340 2.850 0.000 0.000 0.202 2.648
2004 0.000 46.922 0.000 1.096 0.000 2.340 2.565 0.000 0.000 0.182 2.383
2005 0.000 42.230 0.000 0.986 0.000 2.340 2.308 0.000 0.000 0.164 2.145
SUB 0.000 644.984 0.000 15.066 0.000 2.340 35.253 0.000 0.000 2.501 32.756
REM 0.000 266.921 0.000 6.235 0.000 2.340 14.590 0.000 0.000 1.033 13.555
TOT 0.000 911.905 0.000 21.301 0.000 2.340 49.843 0.000 0.000 3.534 46.311
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.236 2.192
1997 7.218 4.571
1998 11.702 3.740
1999 15.737 3.060
2000 19.369 2.503
2001 22.638 2.048
2002 25.580 1.676
2003 28.228 1.371
2004 30.611 1.122
2005 32.756 0.918
SUB 32.756 23.201
REM 46.311 3.718
TOT 46.311 26.919
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CLIFT 4-6 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (ATOK-RDFK) ---------- ---------- 10.00 15.862
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 13.795
PRUE-RDFK GROSS CUM. MB & MMF 4.918 352.349 20.00 12.224
4 14N 19W GROSS RES. MB & MMF 0.000 443.343 25.00 10.999
SEQ: 509 GROSS ULT. MB & MMF 4.918 795.692 30.00 10.021
ORRI INIT W.I 0.000 LIFE/YR 12.000 RATE-OF-RETURN, % 100.00
INIT N.I 2.336 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 33.841 0.000 0.790 0.000 2.350 1.858 0.000 0.000 0.132 1.726
1997 0.000 72.453 0.000 1.692 0.000 2.350 3.977 0.000 0.000 0.282 3.695
1998 0.000 61.585 0.000 1.439 0.000 2.350 3.381 0.000 0.000 0.240 3.141
1999 0.000 52.347 0.000 1.223 0.000 2.350 2.874 0.000 0.000 0.204 2.670
2000 0.000 44.495 0.000 1.039 0.000 2.350 2.443 0.000 0.000 0.173 2.269
2001 0.000 37.821 0.000 0.883 0.000 2.350 2.076 0.000 0.000 0.147 1.929
2002 0.000 32.148 0.000 0.751 0.000 2.350 1.765 0.000 0.000 0.125 1.640
2003 0.000 27.326 0.000 0.638 0.000 2.350 1.500 0.000 0.000 0.106 1.394
2004 0.000 23.227 0.000 0.543 0.000 2.350 1.275 0.000 0.000 0.090 1.185
2005 0.000 19.743 0.000 0.461 0.000 2.350 1.084 0.000 0.000 0.077 1.007
SUB 0.000 404.986 0.000 9.460 0.000 2.350 22.233 0.000 0.000 1.576 20.656
REM 0.000 38.356 0.000 0.896 0.000 2.350 2.105 0.000 0.000 0.149 1.956
TOT 0.000 443.342 0.000 10.356 0.000 2.350 24.338 0.000 0.000 1.725 22.612
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.726 1.692
1997 5.421 3.392
1998 8.562 2.621
1999 11.232 2.025
2000 13.501 1.565
2001 15.430 1.209
2002 17.070 0.934
2003 18.464 0.722
2004 19.649 0.558
2005 20.656 0.431
SUB 20.656 15.149
REM 22.612 0.712
TOT 22.612 15.861
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
EUNICE P.W. % P.W., M$
SANGUINE LTD OIL GAS ------ --------
REYDON (MORROW UPPER) ---------- ---------- 10.00 111.870
OK, ROGER MILLS GROSS WELLS 0.000 1.000 15.00 87.870
MORROW UPPER GROSS CUM. MB & MMF 0.000 5844.015 20.00 72.839
18 13N 25W GROSS RES. MB & MMF 0.000 6146.100 25.00 62.554
SEQ: 40 GROSS ULT. MB & MMF 0.000 11990.115 30.00 55.075
INIT W.I 2.710 LIFE/YR 55.250 RATE-OF-RETURN, % 100.00
INIT N.I 2.100 OPC/W 1823 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 162.874 0.000 3.420 0.000 2.410 8.243 0.247 0.000 0.585 7.411
1997 0.000 374.052 0.000 7.855 0.000 2.410 18.931 0.593 0.000 1.343 16.995
1998 0.000 351.433 0.000 7.380 0.000 2.410 17.786 0.593 0.000 1.262 15.931
1999 0.000 330.180 0.000 6.934 0.000 2.410 16.710 0.593 0.000 1.186 14.932
2000 0.000 310.214 0.000 6.514 0.000 2.410 15.700 0.593 0.000 1.114 13.993
2001 0.000 291.454 0.000 6.121 0.000 2.410 14.750 0.593 0.000 1.047 13.111
2002 0.000 273.829 0.000 5.750 0.000 2.410 13.858 0.593 0.000 0.983 12.282
2003 0.000 257.270 0.000 5.403 0.000 2.410 13.020 0.593 0.000 0.924 11.504
2004 0.000 241.712 0.000 5.076 0.000 2.410 12.233 0.593 0.000 0.868 10.772
2005 0.000 227.095 0.000 4.769 0.000 2.410 11.493 0.593 0.000 0.815 10.085
SUB 0.000 2820.113 0.000 59.222 0.000 2.410 142.724 5.584 0.000 10.127 127.016
REM 0.000 3325.985 0.000 69.846 0.000 2.410 168.326 27.176 0.000 11.941 129.212
TOT 0.000 6146.098 0.000 129.068 0.000 2.410 311.050 32.760 0.000 22.068 256.228
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.411 7.267
1997 24.406 15.587
1998 40.337 13.283
1999 55.269 11.318
2000 69.262 9.642
2001 82.373 8.213
2002 94.655 6.995
2003 106.159 5.956
2004 116.931 5.070
2005 127.016 4.315
SUB 127.016 87.646
REM 256.228 24.224
TOT 256.228 111.870
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FLANAGAN 2-30 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
SICKLES NORTH ---------- ---------- 10.00 111.291
OK, CADDO GROSS WELLS 0.000 1.000 15.00 92.711
SPRINGER GROSS CUM. MB & MMF 0.007 684.843 20.00 79.771
30-12N-12W GROSS RES. MB & MMF 0.000 377.023 25.00 70.285
SEQ: 203 GROSS ULT. MB & MMF 0.007 1061.866 30.00 63.047
INIT W.I 32.463 LIFE/YR 27.667 RATE-OF-RETURN, % 100.00
INIT N.I 24.928 OPC/W 350 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 17.121 0.000 4.268 0.000 2.580 11.012 0.568 0.000 0.781 9.662
1997 0.000 38.151 0.000 9.510 0.000 2.580 24.537 1.363 0.000 1.741 21.432
1998 0.000 34.336 0.000 8.559 0.000 2.580 22.083 1.363 0.000 1.567 19.153
1999 0.000 30.902 0.000 7.703 0.000 2.580 19.875 1.363 0.000 1.410 17.101
2000 0.000 27.812 0.000 6.933 0.000 2.580 17.887 1.363 0.000 1.269 15.255
2001 0.000 25.031 0.000 6.240 0.000 2.580 16.098 1.363 0.000 1.142 13.593
2002 0.000 22.528 0.000 5.616 0.000 2.580 14.489 1.363 0.000 1.028 12.097
2003 0.000 20.275 0.000 5.054 0.000 2.580 13.040 1.363 0.000 0.925 10.751
2004 0.000 18.248 0.000 4.549 0.000 2.580 11.736 1.363 0.000 0.833 9.540
2005 0.000 16.423 0.000 4.094 0.000 2.580 10.562 1.363 0.000 0.749 8.449
SUB 0.000 250.827 0.000 62.526 0.000 2.580 161.319 12.835 0.000 11.445 137.033
REM 0.000 126.195 0.000 31.458 0.000 2.580 81.163 24.875 0.000 5.756 50.521
TOT 0.000 377.022 0.000 93.985 0.000 2.580 242.482 37.710 0.000 17.201 187.554
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.662 9.474
1997 31.094 19.664
1998 50.247 15.975
1999 67.348 12.967
2000 82.603 10.516
2001 96.196 8.518
2002 108.293 6.892
2003 119.044 5.568
2004 128.584 4.492
2005 137.033 3.617
SUB 137.033 97.683
REM 187.554 13.607
TOT 187.554 111.290
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
FLANAGAN 2-30 PDBP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
SICKLES NORTH ---------- ---------- 10.00 28.669
OK, CADDO GROSS WELLS 0.000 1.000 15.00 7.320
SPRINGER GROSS CUM. MB & MMF 0.000 0.000 20.00 2.001
30-12N-12W GROSS RES. MB & MMF 0.000 1000.000 25.00 0.582
SEQ: 270 GROSS ULT. MB & MMF 0.000 1000.000 30.00 0.179
INIT W.I 32.463 LIFE/YR 37.417 RATE-OF-RETURN, % 100.00
INIT N.I 24.928 OPC/W 350 UNDISC NET/INVEST 22.50
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 1000.000 0.000 249.280 0.000 2.580 643.143 13.290 25.970 45.631 558.249
TOT 0.000 1000.000 0.000 249.280 0.000 2.580 643.143 13.290 25.970 45.631 558.249
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 558.249 28.670
TOT 558.249 28.670
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GERLOFF P.W. % P.W., M$
MARATHON OIL CO OIL GAS ------ --------
FREEDOM NORTH (CCKB-MRMC-TNKW) ---------- ---------- 10.00 99.286
OK, WOODS GROSS WELLS 0.000 1.000 15.00 85.382
KSSC-MSSP-TNKW GROSS CUM. MB & MMF 33.762 3901.787 20.00 75.031
13 27N 18W GROSS RES. MB & MMF 0.000 471.966 25.00 67.078
SEQ: 510 GROSS ULT. MB & MMF 33.762 4373.753 30.00 60.801
INIT W.I 30.479 LIFE/YR 16.750 RATE-OF-RETURN, % 100.00
INIT N.I 24.734 OPC/W 1372 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 24.459 0.000 6.050 0.000 2.130 12.886 2.091 0.000 0.914 9.881
1997 0.000 54.501 0.000 13.480 0.000 2.130 28.713 5.018 0.000 2.037 21.658
1998 0.000 49.051 0.000 12.132 0.000 2.130 25.842 5.018 0.000 1.833 18.990
1999 0.000 44.146 0.000 10.919 0.000 2.130 23.258 5.018 0.000 1.650 16.590
2000 0.000 39.732 0.000 9.827 0.000 2.130 20.932 5.018 0.000 1.485 14.429
2001 0.000 35.758 0.000 8.844 0.000 2.130 18.839 5.018 0.000 1.337 12.484
2002 0.000 32.183 0.000 7.960 0.000 2.130 16.955 5.018 0.000 1.203 10.734
2003 0.000 28.964 0.000 7.164 0.000 2.130 15.259 5.018 0.000 1.083 9.159
2004 0.000 26.068 0.000 6.448 0.000 2.130 13.733 5.018 0.000 0.974 7.741
2005 0.000 23.461 0.000 5.803 0.000 2.130 12.360 5.018 0.000 0.877 6.465
SUB 0.000 358.323 0.000 88.628 0.000 2.130 188.777 47.253 0.000 13.393 128.131
REM 0.000 113.642 0.000 28.108 0.000 2.130 59.872 36.799 0.000 4.246 18.824
TOT 0.000 471.965 0.000 116.736 0.000 2.130 248.649 84.052 0.000 17.639 146.955
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.881 9.689
1997 31.539 19.874
1998 50.529 15.842
1999 67.119 12.582
2000 81.548 9.948
2001 94.032 7.825
2002 104.766 6.117
2003 113.925 4.745
2004 121.666 3.646
2005 128.131 2.769
SUB 128.131 93.037
REM 146.955 6.249
TOT 146.955 99.286
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HARP 1-36 P.W. % P.W., M$
JONES L E PRODUCTION CO OIL GAS ------ --------
SHO-VEL-TUM (SPRINGER) ---------- ---------- 10.00 132.325
OK, STEPHENS GROSS WELLS 1.000 0.000 15.00 106.278
SPRINGER GROSS CUM. MB & MMF 143.220 0.000 20.00 88.830
36 1S 4W GROSS RES. MB & MMF 160.056 0.000 25.00 76.498
SEQ: 42 GROSS ULT. MB & MMF 303.276 0.000 30.00 67.388
INIT W.I 20.000 LIFE/YR 19.667 RATE-OF-RETURN, % 100.00
INIT N.I 16.470 OPC/W 3244 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.891 0.000 0.806 0.000 16.260 0.000 13.097 3.244 0.000 0.929 8.924
1997 11.404 0.000 1.878 0.000 16.260 0.000 30.540 7.786 0.000 2.167 20.587
1998 10.948 0.000 1.803 0.000 16.260 0.000 29.318 7.786 0.000 2.080 19.452
1999 10.510 0.000 1.731 0.000 16.260 0.000 28.145 7.786 0.000 1.997 18.363
2000 10.089 0.000 1.662 0.000 16.260 0.000 27.020 7.786 0.000 1.917 17.317
2001 9.686 0.000 1.595 0.000 16.260 0.000 25.939 7.786 0.000 1.840 16.313
2002 9.298 0.000 1.531 0.000 16.260 0.000 24.901 7.786 0.000 1.767 15.349
2003 8.926 0.000 1.470 0.000 16.260 0.000 23.905 7.786 0.000 1.696 14.424
2004 8.569 0.000 1.411 0.000 16.260 0.000 22.949 7.786 0.000 1.628 13.535
2005 8.227 0.000 1.355 0.000 16.260 0.000 22.031 7.786 0.000 1.563 12.682
SUB 92.548 0.000 15.243 0.000 16.260 0.000 247.845 73.318 0.000 17.584 156.946
REM 67.508 0.000 11.119 0.000 16.260 0.000 180.787 79.806 0.000 12.829 88.159
TOT 160.056 0.000 26.361 0.000 16.260 0.000 428.632 153.124 0.000 30.413 245.105
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.924 8.750
1997 29.511 18.880
1998 48.963 16.218
1999 67.326 13.918
2000 84.643 11.932
2001 100.956 10.218
2002 116.305 8.741
2003 130.729 7.467
2004 144.264 6.370
2005 156.946 5.426
SUB 156.946 107.920
REM 245.105 24.406
TOT 245.105 132.326
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HOWLING WOMAN #1-23 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ELM GROVE ---------- ---------- 10.00 492.405
OK, BLAINE GROSS WELLS 0.000 1.000 15.00 405.431
SPRINGER GROSS CUM. MB & MMF 0.000 3255.703 20.00 345.809
23 13N 12W GROSS RES. MB & MMF 0.000 1486.778 25.00 302.654
SEQ: 204 GROSS ULT. MB & MMF 0.000 4742.481 30.00 270.065
INIT W.I 40.000 LIFE/YR 27.417 RATE-OF-RETURN, % 100.00
INIT N.I 31.599 OPC/W 2275 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 56.513 0.000 17.858 0.000 2.660 47.501 4.550 0.000 3.370 39.581
1997 0.000 127.882 0.000 40.410 0.000 2.660 107.491 10.920 0.000 7.626 88.944
1998 0.000 117.652 0.000 37.177 0.000 2.660 98.891 10.920 0.000 7.016 80.955
1999 0.000 108.240 0.000 34.203 0.000 2.660 90.980 10.920 0.000 6.455 73.605
2000 0.000 99.580 0.000 31.467 0.000 2.660 83.702 10.920 0.000 5.939 66.843
2001 0.000 91.614 0.000 28.949 0.000 2.660 77.005 10.920 0.000 5.464 60.622
2002 0.000 84.285 0.000 26.633 0.000 2.660 70.845 10.920 0.000 5.026 54.899
2003 0.000 77.542 0.000 24.503 0.000 2.660 65.177 10.920 0.000 4.624 49.633
2004 0.000 71.339 0.000 22.543 0.000 2.660 59.963 10.920 0.000 4.254 44.789
2005 0.000 65.632 0.000 20.739 0.000 2.660 55.166 10.920 0.000 3.914 40.332
SUB 0.000 900.279 0.000 284.482 0.000 2.660 756.721 102.830 0.000 53.688 600.203
REM 0.000 586.501 0.000 185.330 0.000 2.660 492.977 196.560 0.000 34.977 261.440
TOT 0.000 1486.780 0.000 469.812 0.000 2.660 1249.698 299.390 0.000 88.665 861.643
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 39.581 38.810
1997 128.525 81.594
1998 209.480 67.514
1999 283.085 55.805
2000 349.928 46.071
2001 410.550 37.985
2002 465.449 31.272
2003 515.082 25.703
2004 559.871 21.086
2005 600.203 17.262
SUB 600.203 423.102
REM 861.643 69.303
TOT 861.643 492.405
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
HOWLING WOMAN #1-23 PDBP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ELM GROVE ---------- ---------- 10.00 1002.746
OK, BLAINE GROSS WELLS 0.000 1.000 15.00 796.487
SPRINGER GROSS CUM. MB & MMF 0.000 0.000 20.00 652.471
23 13N 12W GROSS RES. MB & MMF 0.000 2569.087 25.00 547.093
SEQ: 269 GROSS ULT. MB & MMF 0.000 2569.087 30.00 467.147
ASSUME ZONE TO BE COMMINGLED. INIT W.I 40.000 LIFE/YR 29.583 RATE-OF-RETURN, % 100.00
INIT N.I 31.599 OPC/W 1171 UNDISC NET/INVEST 171.10
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 340.725 0.000 107.667 0.000 2.660 286.393 5.621 10.800 20.320
1999 0.000 296.430 0.000 93.670 0.000 2.660 249.162 5.621 0.000 17.678
2000 0.000 257.894 0.000 81.493 0.000 2.660 216.771 5.621 0.000 15.380
2001 0.000 224.368 0.000 70.899 0.000 2.660 188.591 5.621 0.000 13.381
2002 0.000 195.200 0.000 61.682 0.000 2.660 164.074 5.621 0.000 11.641
2003 0.000 169.824 0.000 53.663 0.000 2.660 142.744 5.621 0.000 10.128
2004 0.000 147.747 0.000 46.687 0.000 2.660 124.188 5.621 0.000 8.811
2005 0.000 128.540 0.000 40.618 0.000 2.660 108.043 5.621 0.000 7.666
SUB 0.000 1760.728 0.000 556.379 0.000 2.660 1479.966 44.968 10.800 105.005
REM 0.000 808.360 0.000 255.436 0.000 2.660 679.461 113.357 0.000 48.208
TOT 0.000 2569.088 0.000 811.815 0.000 2.660 2159.427 158.325 10.800 153.213
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 0.000 0.000 0.000
1997 0.000 0.000 0.000
1998 249.653 249.653 207.856
1999 225.863 475.516 171.305
2000 195.770 671.286 134.983
2001 169.590 840.876 106.302
2002 146.812 987.688 83.659
2003 126.996 1114.684 65.789
2004 109.756 1224.440 51.689
2005 94.757 1319.197 40.569
SUB 1319.197 1319.197 862.152
REM 517.899 1837.096 140.594
TOT 1837.096 1837.096 1002.746
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> A-PROVED DEVE PRODUCING
JACKSON BARNETT SE P.W. % P.W., M$
LATEX OIL GAS ------ --------
CUSHING (BARTLESVILLE) ---------- ---------- 10.00 0.000
OK, CREEK GROSS WELLS 1.000 0.000 15.00 0.000
BARTLESVILLE GROSS CUM. MB & MMF 347.584 0.000 20.00 0.000
5 17N 7E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 381 GROSS ULT. MB & MMF 347.584 0.000 30.00 0.000
INIT W.I 100.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 87.500 OPC/W 4830 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KILHOFFER 1-33 P.W. % P.W., M$
APACHE CORP OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 18.028
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 15.645
CHEROKEE GROSS CUM. MB & MMF 103.123 3613.664 20.00 13.850
33 15N 19W GROSS RES. MB & MMF 8.075 554.758 25.00 12.457
SEQ: 513 GROSS ULT. MB & MMF 111.198 4168.422 30.00 11.350
ORRI INIT W.I 0.000 LIFE/YR 13.250 RATE-OF-RETURN, % 100.00
INIT N.I 1.758 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.764 41.093 0.013 0.722 19.741 2.580 2.129 0.000 0.000 0.151 1.978
1997 1.568 87.979 0.028 1.546 19.740 2.580 4.534 0.000 0.000 0.322 4.212
1998 1.254 74.782 0.022 1.315 19.740 2.580 3.827 0.000 0.000 0.272 3.555
1999 1.004 63.565 0.018 1.117 19.740 2.580 3.231 0.000 0.000 0.229 3.002
2000 0.803 54.030 0.014 0.950 19.739 2.580 2.729 0.000 0.000 0.194 2.535
2001 0.642 45.926 0.011 0.807 19.740 2.580 2.306 0.000 0.000 0.164 2.142
2002 0.514 39.037 0.009 0.686 19.740 2.580 1.949 0.000 0.000 0.138 1.810
2003 0.411 33.181 0.007 0.583 19.739 2.580 1.647 0.000 0.000 0.117 1.531
2004 0.329 28.204 0.006 0.496 19.738 2.580 1.393 0.000 0.000 0.099 1.294
2005 0.263 23.973 0.005 0.421 19.742 2.580 1.179 0.000 0.000 0.084 1.095
SUB 7.552 491.770 0.133 8.644 19.740 2.580 24.924 0.000 0.000 1.770 23.154
REM 0.523 62.988 0.009 1.107 19.739 2.580 3.038 0.000 0.000 0.216 2.822
TOT 8.075 554.758 0.142 9.752 19.740 2.580 27.962 0.000 0.000 1.986 25.976
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.978 1.939
1997 6.190 3.867
1998 9.745 2.967
1999 12.747 2.277
2000 15.282 1.748
2001 17.424 1.343
2002 19.234 1.032
2003 20.765 0.793
2004 22.059 0.610
2005 23.154 0.469
SUB 23.154 17.045
REM 25.976 0.984
TOT 25.976 18.029
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KILHOFFER 2-33 P.W. % P.W., M$
APACHE CORP OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 35.224
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 28.440
RED FORK GROSS CUM. MB & MMF 10.494 874.792 20.00 23.999
33 15N 19W GROSS RES. MB & MMF 6.216 1655.546 25.00 20.873
SEQ: 511 GROSS ULT. MB & MMF 16.710 2530.338 30.00 18.554
ORRI INIT W.I 0.000 LIFE/YR 30.333 RATE-OF-RETURN, % 100.00
INIT N.I 1.758 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.707 61.427 0.012 1.080 19.740 2.470 2.912 0.000 0.000 0.207 2.706
1997 1.388 139.002 0.024 2.443 19.740 2.470 6.517 0.000 0.000 0.462 6.054
1998 1.041 127.882 0.018 2.248 19.741 2.470 5.913 0.000 0.000 0.420 5.494
1999 0.780 117.652 0.014 2.068 19.741 2.470 5.379 0.000 0.000 0.382 4.997
2000 0.585 108.240 0.010 1.903 19.739 2.470 4.903 0.000 0.000 0.348 4.555
2001 0.439 99.580 0.008 1.750 19.740 2.470 4.476 0.000 0.000 0.318 4.158
2002 0.329 91.614 0.006 1.610 19.739 2.470 4.092 0.000 0.000 0.290 3.802
2003 0.247 84.285 0.004 1.482 19.739 2.470 3.745 0.000 0.000 0.266 3.479
2004 0.185 77.542 0.003 1.363 19.738 2.470 3.431 0.000 0.000 0.243 3.188
2005 0.139 71.339 0.002 1.254 19.738 2.470 3.146 0.000 0.000 0.223 2.922
SUB 5.840 978.563 0.103 17.201 19.740 2.470 44.514 0.000 0.000 3.159 41.355
REM 0.377 676.985 0.007 11.900 19.744 2.470 29.525 0.000 0.000 2.095 27.428
TOT 6.217 1655.548 0.109 29.101 19.740 2.470 74.039 0.000 0.000 5.254 68.783
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.706 2.653
1997 8.760 5.554
1998 14.254 4.582
1999 19.251 3.789
2000 23.806 3.139
2001 27.964 2.605
2002 31.766 2.165
2003 35.245 1.802
2004 38.433 1.500
2005 41.355 1.251
SUB 41.355 29.040
REM 68.783 6.183
TOT 68.783 35.223
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KILHOFFER 3-33 P.W. % P.W., M$
APACHE CORP OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 41.498
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 33.574
CHEROKEE GROSS CUM. MB & MMF 21.470 1175.653 20.00 28.617
33 15N 19W GROSS RES. MB & MMF 31.560 2104.000 25.00 25.172
SEQ: 512 GROSS ULT. MB & MMF 53.030 3279.653 30.00 22.618
ORRI INIT W.I 0.000 LIFE/YR 54.333 RATE-OF-RETURN, % 100.00
INIT N.I 1.758 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.249 83.248 0.022 1.463 19.740 2.590 4.223 0.000 0.000 0.300 3.924
1997 2.569 171.281 0.045 3.011 19.740 2.590 8.689 0.000 0.000 0.617 8.073
1998 2.124 141.625 0.037 2.489 19.740 2.590 7.185 0.000 0.000 0.510 6.675
1999 1.806 120.421 0.032 2.117 19.740 2.590 6.109 0.000 0.000 0.433 5.676
2000 1.568 104.538 0.028 1.838 19.740 2.590 5.303 0.000 0.000 0.376 4.927
2001 1.383 92.216 0.024 1.621 19.740 2.590 4.678 0.000 0.000 0.332 4.346
2002 1.236 82.390 0.022 1.448 19.740 2.590 4.180 0.000 0.000 0.297 3.883
2003 1.116 74.381 0.020 1.307 19.740 2.590 3.773 0.000 0.000 0.268 3.506
2004 1.016 67.732 0.018 1.191 19.740 2.590 3.436 0.000 0.000 0.244 3.192
2005 0.932 62.130 0.016 1.092 19.740 2.590 3.152 0.000 0.000 0.224 2.928
SUB 14.999 999.962 0.264 17.577 19.740 2.590 50.728 0.000 0.000 3.601 47.130
REM 16.560 1104.041 0.291 19.407 19.740 2.590 56.007 0.000 0.000 3.974 52.035
TOT 31.559 2104.003 0.555 36.984 19.740 2.590 106.735 0.000 0.000 7.575 99.165
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.924 3.848
1997 1.997 7.412
1998 8.672 5.570
1999 4.348 4.305
2000 9.275 3.397
2001 3.621 2.724
2002 7.504 2.212
2003 1.010 1.815
2004 4.202 1.503
2005 7.130 1.253
SUB 7.130 34.039
REM 9.165 7.460
TOT 9.165 41.499
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
KOPF 1-11 P.W. % P.W., M$
MARATHON OIL CO OIL GAS ------ --------
WATONGA-CHICKASHA TREND (MORRO ---------- ---------- 10.00 488.789
OK, BLAINE GROSS WELLS 0.000 1.000 15.00 444.464
MORROWAN GROSS CUM. MB & MMF 32.940 8841.227 20.00 408.471
11 18N 12W GROSS RES. MB & MMF 0.000 1085.049 25.00 378.724
SEQ: 36 GROSS ULT. MB & MMF 32.940 9926.276 30.00 353.760
INIT W.I 35.000 LIFE/YR 11.500 RATE-OF-RETURN, % 100.00
INIT N.I 26.250 OPC/W 1816 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 127.223 0.000 33.396 0.000 2.660 88.833 3.178 0.000 6.303 79.353
1997 0.000 249.755 0.000 65.561 0.000 2.660 174.392 7.627 0.000 12.373 154.391
1998 0.000 187.316 0.000 49.171 0.000 2.660 130.794 7.627 0.000 9.280 113.887
1999 0.000 140.487 0.000 36.878 0.000 2.660 98.095 7.627 0.000 6.960 83.508
2000 0.000 105.365 0.000 27.658 0.000 2.660 73.571 7.627 0.000 5.220 60.724
2001 0.000 79.024 0.000 20.744 0.000 2.660 55.179 7.627 0.000 3.915 43.636
2002 0.000 59.268 0.000 15.558 0.000 2.660 41.384 7.627 0.000 2.936 30.821
2003 0.000 44.451 0.000 11.668 0.000 2.660 31.038 7.627 0.000 2.202 21.209
2004 0.000 33.338 0.000 8.751 0.000 2.660 23.278 7.627 0.000 1.652 14.000
2005 0.000 25.004 0.000 6.563 0.000 2.660 17.459 7.627 0.000 1.239 8.593
SUB 0.000 1051.231 0.000 275.948 0.000 2.660 734.023 71.821 0.000 52.080 610.122
REM 0.000 33.818 0.000 8.877 0.000 2.660 23.613 15.890 0.000 1.676 6.048
TOT 0.000 1085.049 0.000 284.825 0.000 2.660 757.636 87.711 0.000 53.756 616.170
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 79.353 77.828
1997 233.744 141.865
1998 347.631 95.137
1999 431.139 63.421
2000 491.863 41.929
2001 535.499 27.394
2002 566.320 17.592
2003 587.529 11.008
2004 601.529 6.609
2005 610.122 3.690
SUB 610.122 486.473
REM 616.170 2.315
TOT 616.170 488.788
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
N
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
october 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1998 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> A-PROVED DEVE PRODUCING
MASCHO NENESW P.W. % P.W., M$
LATEX OIL GAS ------ --------
CUSHING (BARTLESVILLE) ---------- ---------- 10.00 0.000
OK, CREEK GROSS WELLS 1.000 0.000 15.00 0.000
BARTLESVILLE GROSS CUM. MB & MMF 184.066 0.000 20.00 0.000
5 17N 7E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 389 GROSS ULT. MB & MMF 184.066 0.000 30.00 0.000
NO RESERVES. INIT W.I 93.750 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 82.031 OPC/W 4062 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
MILLIE 2-20 BP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
PUTNAM ---------- ---------- 10.00 592.812
OK, TONKAWA GROSS WELLS 0.000 1.000 15.00 533.392
DEWEY GROSS CUM. MB & MMF 0.000 0.000 20.00 484.122
GROSS RES. MB & MMF 0.000 572.697 25.00 442.713
SEQ: 276 GROSS ULT. MB & MMF 0.000 572.697 30.00 407.494
INIT W.I 75.000 LIFE/YR 8.583 RATE-OF-RETURN, % 100.00
INIT N.I 65.625 OPC/W 1500 UNDISC NET/INVEST 13.15
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 181.678 0.000 119.226 0.000 2.660 317.142 13.500 62.250 22.501 218.891
1998 0.000 127.175 0.000 83.458 0.000 2.660 221.999 13.500 0.000 15.751 192.748
1999 0.000 89.022 0.000 58.421 0.000 2.660 155.399 13.500 0.000 11.026 130.874
2000 0.000 62.316 0.000 40.895 0.000 2.660 108.780 13.500 0.000 7.718 87.562
2001 0.000 43.621 0.000 28.626 0.000 2.660 76.146 13.500 0.000 5.403 57.243
2002 0.000 30.535 0.000 20.038 0.000 2.660 53.302 13.500 0.000 3.782 36.020
2003 0.000 21.374 0.000 14.027 0.000 2.660 37.311 13.500 0.000 2.647 21.164
2004 0.000 14.962 0.000 9.819 0.000 2.660 26.118 13.500 0.000 1.853 10.765
2005 0.000 2.015 0.000 1.322 0.000 2.660 3.517 2.250 0.000 0.250 1.018
SUB 0.000 572.698 0.000 375.832 0.000 2.660 999.714 110.250 62.250 70.931 756.285
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 572.698 0.000 375.832 0.000 2.660 999.714 110.250 62.250 70.931 756.285
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 218.891 198.649
1998 411.639 161.109
1999 542.513 99.456
2000 630.075 60.501
2001 687.318 35.965
2002 723.338 20.581
2003 744.502 11.002
2004 755.267 5.096
2005 756.285 0.453
SUB 756.285 592.812
REM 756.285 0.000
TOT 756.285 592.812
</TABLE>
- 260 -
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MORTON 2-35 P.W. % P.W., M$
DUNCAN OIL & GAS INC OIL GAS ------ --------
COYLE SOUTH (WILCOX) ---------- ---------- 10.00 31.524
OK, LOGAN GROSS WELLS 1.000 0.000 15.00 30.729
WILCOX GROSS CUM. MB & MMF 35.643 114.554 20.00 29.997
35 17N 1E GROSS RES. MB & MMF 3.429 57.149 25.00 29.323
SEQ: 37 GROSS ULT. MB & MMF 39.072 171.703 30.00 28.698
INIT W.I 26.904 LIFE/YR 2.250 RATE-OF-RETURN, % 100.00
INIT N.I 24.158 OPC/W 2072 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.247 20.781 0.301 5.020 20.390 2.550 18.944 2.787 0.000 1.344 14.812
1997 1.609 26.820 0.389 6.479 20.390 2.550 24.449 6.689 0.000 1.735 16.025
1998 0.573 9.548 0.138 2.307 20.390 2.550 8.704 5.575 0.000 0.618 2.512
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 3.429 57.149 0.828 13.806 20.390 2.550 52.097 15.051 0.000 3.697 33.349
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 3.429 57.149 0.828 13.806 20.390 2.550 52.097 15.051 0.000 3.697 33.349
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 14.812 14.543
1997 30.837 14.838
1998 33.349 2.143
1999 33.349 0.000
2000 33.349 0.000
2001 33.349 0.000
2002 33.349 0.000
2003 33.349 0.000
2004 33.349 0.000
2005 33.349 0.000
SUB 33.349 31.524
REM 33.349 0.000
TOT 33.349 31.524
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MULLINS 1-34 P.W. % P.W., M$
R B OPERATING CO OIL GAS ------ --------
BUTLER-CUSTER WEST ---------- ---------- 10.00 134.113
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 108.647
RED FORK GROSS CUM. MB & MMF 250.516 4982.867 20.00 91.800
34 14N 19W GROSS RES. MB & MMF 75.847 1551.425 25.00 79.868
SEQ: 61 GROSS ULT. MB & MMF 326.363 6534.292 30.00 70.982
INIT W.I 6.250 LIFE/YR 38.083 RATE-OF-RETURN, % 100.00
INIT N.I 5.470 OPC/W 1442 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.703 55.284 0.148 3.024 19.740 2.820 11.446 0.451 0.000 0.812 10.183
1997 6.116 125.102 0.335 6.843 19.740 2.820 25.902 1.082 0.000 1.838 22.982
1998 5.627 115.094 0.308 6.296 19.740 2.820 23.829 1.082 0.000 1.691 21.057
1999 5.177 105.887 0.283 5.792 19.740 2.820 21.923 1.082 0.000 1.555 19.286
2000 4.763 97.416 0.261 5.329 19.740 2.820 20.169 1.082 0.000 1.431 17.657
2001 4.382 89.622 0.240 4.902 19.740 2.820 18.556 1.082 0.000 1.317 16.158
2002 4.031 82.453 0.220 4.510 19.740 2.820 17.071 1.082 0.000 1.211 14.779
2003 3.709 75.856 0.203 4.149 19.740 2.820 15.706 1.082 0.000 1.114 13.510
2004 3.412 69.788 0.187 3.817 19.740 2.820 14.449 1.082 0.000 1.025 12.342
2005 3.139 64.205 0.172 3.512 19.740 2.820 13.293 1.082 0.000 0.943 11.269
SUB 43.059 880.707 2.355 48.175 19.740 2.820 182.344 10.189 0.000 12.937 159.223
REM 32.791 670.718 1.794 36.688 19.740 2.820 138.864 31.017 0.000 9.853 98.012
TOT 75.850 1551.425 4.149 84.863 19.740 2.820 321.208 41.206 0.000 22.790 257.235
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 10.183 9.985
1997 33.165 21.082
1998 54.222 17.560
1999 73.508 14.621
2000 91.165 12.169
2001 107.323 10.124
2002 122.102 8.418
2003 135.612 6.996
2004 147.954 5.810
2005 159.223 4.822
SUB 159.223 111.587
REM 257.235 22.528
TOT 257.235 134.115
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NEUFELD 1-33 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
FAYE EAST ---------- ---------- 10.00 263.829
OK, BLAINE GROSS WELLS 0.000 1.000 15.00 229.205
SPRINGER GROSS CUM. MB & MMF 9.700 1519.931 20.00 203.227
33 16N 13W GROSS RES. MB & MMF 0.342 351.174 25.00 183.098
SEQ: 205 GROSS ULT. MB & MMF 10.042 1871.105 30.00 167.080
INIT W.I 65.063 LIFE/YR 18.583 RATE-OF-RETURN, % 100.00
INIT N.I 52.964 OPC/W 479 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.020 24.172 0.010 12.804 20.929 2.590 33.375 1.558 0.000 2.368 29.449
1997 0.044 51.752 0.023 27.413 20.930 2.590 71.475 3.740 0.000 5.071 62.664
1998 0.039 43.989 0.020 23.301 20.929 2.590 60.777 3.740 0.000 4.312 52.725
1999 0.035 37.391 0.018 19.806 20.930 2.590 51.682 3.740 0.000 3.667 44.275
2000 0.032 31.782 0.017 16.835 20.930 2.590 43.949 3.740 0.000 3.118 37.091
2001 0.029 27.015 0.015 14.310 20.930 2.590 37.374 3.740 0.000 2.652 30.982
2002 0.026 22.963 0.013 12.163 20.930 2.590 31.783 3.740 0.000 2.255 25.788
2003 0.023 19.518 0.012 10.339 20.930 2.590 27.030 3.740 0.000 1.918 21.372
2004 0.021 16.591 0.011 8.788 20.930 2.590 22.988 3.740 0.000 1.631 17.617
2005 0.019 14.102 0.010 7.470 20.931 2.590 19.551 3.740 0.000 1.387 14.424
SUB 0.288 289.275 0.149 153.229 20.930 2.590 399.984 35.218 0.000 28.379 336.387
REM 0.055 61.898 0.029 32.787 20.930 2.590 85.519 34.283 0.000 6.068 45.167
TOT 0.343 351.173 0.178 186.016 20.930 2.590 485.503 69.501 0.000 34.447 381.554
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 29.449 28.879
1997 92.113 57.521
1998 144.838 43.999
1999 189.113 33.589
2000 226.204 25.581
2001 257.186 19.426
2002 282.974 14.700
2003 304.346 11.076
2004 321.963 8.300
2005 336.387 6.178
SUB 336.387 249.249
REM 381.554 14.581
TOT 381.554 263.830
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RAY 5-1 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (RED FORK) ---------- ---------- 10.00 12.829
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 10.884
RED FORK GROSS CUM. MB & MMF 63.079 1296.505 20.00 9.447
5 14N 19W GROSS RES. MB & MMF 21.099 296.235 25.00 8.354
SEQ: 514 GROSS ULT. MB & MMF 84.178 1592.740 30.00 7.501
ORRI INIT W.I 0.000 LIFE/YR 12.167 RATE-OF-RETURN, % 100.00
INIT N.I 1.933 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.130 17.611 0.022 0.340 19.740 2.260 1.201 0.000 0.000 0.085 1.115
1997 2.558 39.241 0.049 0.758 19.740 2.260 2.690 0.000 0.000 0.191 2.499
1998 2.353 35.317 0.045 0.683 19.740 2.260 2.441 0.000 0.000 0.173 2.267
1999 2.165 31.785 0.042 0.614 19.740 2.260 2.214 0.000 0.000 0.157 2.057
2000 1.992 28.607 0.038 0.553 19.740 2.260 2.010 0.000 0.000 0.143 1.867
2001 1.832 25.746 0.035 0.498 19.740 2.260 1.824 0.000 0.000 0.129 1.694
2002 1.686 23.171 0.033 0.448 19.740 2.260 1.655 0.000 0.000 0.117 1.538
2003 1.551 20.854 0.030 0.403 19.740 2.260 1.503 0.000 0.000 0.107 1.396
2004 1.427 18.769 0.028 0.363 19.740 2.260 1.364 0.000 0.000 0.097 1.267
2005 1.313 16.892 0.025 0.327 19.740 2.260 1.239 0.000 0.000 0.088 1.151
SUB 18.007 257.993 0.348 4.987 19.740 2.260 18.141 0.000 0.000 1.287 16.851
REM 3.094 38.242 0.060 0.739 19.740 2.260 2.851 0.000 0.000 0.202 2.648
TOT 21.101 296.235 0.408 5.726 19.740 2.260 20.992 0.000 0.000 1.489 19.499
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.115 1.094
1997 3.614 2.293
1998 5.881 1.891
1999 7.938 1.560
2000 9.805 1.287
2001 11.499 1.062
2002 13.037 0.876
2003 14.433 0.723
2004 15.700 0.597
2005 16.851 0.493
SUB 16.851 11.876
REM 19.499 0.956
TOT 19.499 12.832
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RAY 5-2 P.W. % P.W., M$
WOODS PETROLEUM CORP OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 4.383
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 3.861
PRUE GROSS CUM. MB & MMF 6.584 327.164 20.00 3.448
5 14N 19W GROSS RES. MB & MMF 0.000 148.199 25.00 3.115
SEQ: 515 GROSS ULT. MB & MMF 6.584 475.363 30.00 2.842
ORRI INIT W.I 0.000 LIFE/YR 7.917 RATE-OF-RETURN, % 100.00
INIT N.I 1.933 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 11.251 0.000 0.217 0.000 2.230 0.485 0.000 0.000 0.034 0.451
1997 0.000 25.071 0.000 0.485 0.000 2.230 1.081 0.000 0.000 0.077 1.004
1998 0.000 22.564 0.000 0.436 0.000 2.230 0.973 0.000 0.000 0.069 0.904
1999 0.000 20.307 0.000 0.393 0.000 2.230 0.875 0.000 0.000 0.062 0.813
2000 0.000 18.277 0.000 0.353 0.000 2.230 0.788 0.000 0.000 0.056 0.732
2001 0.000 16.449 0.000 0.318 0.000 2.230 0.709 0.000 0.000 0.050 0.659
2002 0.000 14.804 0.000 0.286 0.000 2.230 0.638 0.000 0.000 0.045 0.593
2003 0.000 13.324 0.000 0.258 0.000 2.230 0.574 0.000 0.000 0.041 0.534
2004 0.000 6.153 0.000 0.119 0.000 2.230 0.265 0.000 0.000 0.019 0.246
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 148.200 0.000 2.865 0.000 2.230 6.388 0.000 0.000 0.453 5.936
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 148.200 0.000 2.865 0.000 2.230 6.388 0.000 0.000 0.453 5.936
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.451 0.442
1997 1.455 0.921
1998 2.359 0.754
1999 3.172 0.617
2000 3.904 0.504
2001 4.563 0.413
2002 5.156 0.338
2003 5.690 0.276
2004 5.936 0.119
2005 5.936 0.000
SUB 5.936 4.384
REM 5.936 0.000
TOT 5.936 4.384
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUVJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RAY 5-3 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 6.505
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 5.232
PRUE GROSS CUM. MB & MMF 14.906 355.613 20.00 4.362
5 14N 19W GROSS RES. MB & MMF 0.000 264.884 25.00 3.741
SEQ: 516 GROSS ULT. MB & MMF 14.906 620.497 30.00 3.281
ORRI INIT W.I 0.000 LIFE/YR 15.750 RATE-OF-RETURN, % 100.00
INIT N.I 1.933 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.420 0.000 0.182 0.000 2.450 0.446 0.000 0.000 0.032 0.414
1997 0.000 21.964 0.000 0.425 0.000 2.450 1.040 0.000 0.000 0.074 0.966
1998 0.000 21.086 0.000 0.408 0.000 2.450 0.999 0.000 0.000 0.071 0.928
1999 0.000 20.242 0.000 0.391 0.000 2.450 0.959 0.000 0.000 0.068 0.891
2000 0.000 19.432 0.000 0.376 0.000 2.450 0.920 0.000 0.000 0.065 0.855
2001 0.000 18.655 0.000 0.361 0.000 2.450 0.883 0.000 0.000 0.063 0.821
2002 0.000 17.909 0.000 0.346 0.000 2.450 0.848 0.000 0.000 0.060 0.788
2003 0.000 17.193 0.000 0.332 0.000 2.450 0.814 0.000 0.000 0.058 0.756
2004 0.000 16.505 0.000 0.319 0.000 2.450 0.782 0.000 0.000 0.055 0.726
2005 0.000 15.845 0.000 0.306 0.000 2.450 0.750 0.000 0.000 0.053 0.697
SUB 0.000 178.251 0.000 3.445 0.000 2.450 8.441 0.000 0.000 0.599 7.842
REM 0.000 86.634 0.000 1.675 0.000 2.450 4.103 0.000 0.000 0.291 3.811
TOT 0.000 264.885 0.000 5.120 0.000 2.450 12.544 0.000 0.000 0.890 11.653
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.414 0.406
1997 1.380 0.886
1998 2.308 0.773
1999 3.199 0.675
2000 4.054 0.589
2001 4.875 0.514
2002 5.663 0.449
2003 6.419 0.392
2004 7.145 0.342
2005 7.842 0.298
SUB 7.842 5.324
REM 11.653 1.181
TOT 11.653 6.505
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RAY 5-4 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) ---------- ---------- 10.00 27.422
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 22.623
PRUE GROSS CUM. MB & MMF 23.249 1161.470 20.00 19.331
5 14N 19W GROSS RES. MB & MMF 17.951 1025.798 25.00 16.947
SEQ: 517 GROSS ULT. MB & MMF 41.200 2187.268 30.00 15.146
ORRI INIT W.I 0.000 LIFE/YR 21.917 RATE-OF-RETURN, % 100.00
INIT N.I 1.933 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.856 48.918 0.017 0.946 19.740 2.240 2.445 0.000 0.000 0.173 2.271
1997 1.908 109.003 0.037 2.107 19.740 2.240 5.447 0.000 0.000 0.386 5.061
1998 1.717 98.103 0.033 1.896 19.740 2.240 4.903 0.000 0.000 0.348 4.555
1999 1.545 88.292 0.030 1.707 19.740 2.240 4.412 0.000 0.000 0.313 4.099
2000 1.391 79.463 0.027 1.536 19.740 2.240 3.971 0.000 0.000 0.282 3.689
2001 1.252 71.517 0.024 1.382 19.740 2.240 3.574 0.000 0.000 0.254 3.320
2002 1.126 64.365 0.022 1.244 19.740 2.240 3.217 0.000 0.000 0.228 2.988
2003 1.014 57.929 0.020 1.120 19.740 2.240 2.895 0.000 0.000 0.205 2.690
2004 0.912 52.136 0.018 1.008 19.740 2.240 2.605 0.000 0.000 0.185 2.421
2005 0.821 46.922 0.016 0.907 19.740 2.240 2.345 0.000 0.000 0.166 2.179
SUB 12.542 716.648 0.242 13.852 19.740 2.240 35.814 0.000 0.000 2.540 33.273
REM 5.410 309.151 0.105 5.976 19.740 2.240 15.448 0.000 0.000 1.096 14.354
TOT 17.952 1025.799 0.347 19.828 19.740 2.240 51.262 0.000 0.000 3.636 47.627
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.271 2.227
1997 7.332 4.643
1998 11.887 3.799
1999 15.986 3.108
2000 19.675 2.543
2001 22.995 2.081
2002 25.983 1.702
2003 28.673 1.393
2004 31.094 1.140
2005 33.273 0.932
SUB 33.273 23.568
REM 47.627 3.855
TOT 47.627 27.423
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RAY 5-5 P.W. % P.W., M$
SONAT EXPL INC OIL GAS ------ --------
MOOREWOOD NE (SKINNER) -------- -------- 10.00 1.929
OK, CUSTER GROSS WELLS 0.000 1.000 15.00 1.790
PRUE GROSS CUM. MB & MMF 0.204 422.390 20.00 1.671
5 14N 19W GROSS RES. MB & MMF 0.000 57.764 25.00 1.567
SEQ: 518 GROSS ULT. MB & MMF 0.204 480.154 30.00 1.476
ORRI INIT W.I 0.000 LIFE/YR 3.917 RATE-OF-RETURN, % 100.00
INIT N.I 1.933 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.338 0.000 0.142 0.000 2.200 0.312 0.000 0.000 0.022 0.290
1997 0.000 16.350 0.000 0.316 0.000 2.200 0.695 0.000 0.000 0.049 0.646
1998 0.000 14.715 0.000 0.284 0.000 2.200 0.626 0.000 0.000 0.044 0.581
1999 0.000 13.244 0.000 0.256 0.000 2.200 0.563 0.000 0.000 0.040 0.523
2000 0.000 6.117 0.000 0.118 0.000 2.200 0.260 0.000 0.000 0.018 0.242
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 57.764 0.000 1.117 0.000 2.200 2.456 0.000 0.000 0.173 2.282
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 57.764 0.000 1.117 0.000 2.200 2.456 0.000 0.000 0.173 2.282
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.290 0.284
1997 0.936 0.593
1998 1.517 0.485
1999 2.040 0.397
2000 2.282 0.170
2001 2.282 0.000
2002 2.282 0.000
2003 2.282 0.000
2004 2.282 0.000
2005 2.282 0.000
SUB 2.282 1.929
REM 2.282 0.000
TOT 2.282 1.929
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RICHARDS, E. P.W. % P.W., M$
LATEX OIL GAS ------ --------
CUSHING (BARTLESVILLE) ---------- ---------- 10.00 436.279
OK, CREEK GROSS WELLS 1.000 0.000 15.00 342.997
BARTLESVILLE GROSS CUM. MB & MMF 541.740 0.000 20.00 283.420
5 17N 7E GROSS RES. MB & MMF 198.648 0.000 25.00 242.466
SEQ: 221 GROSS ULT. MB & MMF 740.388 0.000 30.00 212.709
ASSUMES WELL RETURNED TO PRODUCTION. INIT W.I 75.000 LIFE/YR 32.667 RATE-OF-RETURN, % 100.00
INIT N.I 58.438 OPC/W 4353 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.975 0.000 2.323 0.000 20.340 0.000 47.245 16.324 0.000 3.352 27.569
1997 9.336 0.000 5.456 0.000 20.340 0.000 110.971 39.177 0.000 7.873 63.920
1998 9.056 0.000 5.292 0.000 20.340 0.000 107.642 39.177 0.000 7.637 60.827
1999 8.784 0.000 5.133 0.000 20.340 0.000 104.412 39.177 0.000 7.408 57.827
2000 8.521 0.000 4.979 0.000 20.340 0.000 101.280 39.177 0.000 7.186 54.917
2001 8.265 0.000 4.830 0.000 20.340 0.000 98.242 39.177 0.000 6.970 52.094
2002 8.017 0.000 4.685 0.000 20.340 0.000 95.294 39.177 0.000 6.761 49.356
2003 7.777 0.000 4.545 0.000 20.340 0.000 92.435 39.177 0.000 6.558 46.700
2004 7.543 0.000 4.408 0.000 20.340 0.000 89.662 39.177 0.000 6.362 44.124
2005 7.317 0.000 4.276 0.000 20.340 0.000 86.973 39.177 0.000 6.171 41.625
SUB 78.591 0.000 45.927 0.000 20.340 0.000 934.156 368.917 0.000 66.278 498.959
REM 120.061 0.000 70.159 0.000 20.340 0.000 1427.028 910.865 0.000 101.247 414.918
TOT 198.652 0.000 116.086 0.000 20.340 0.000 2361.184 1279.782 0.000 167.525 913.877
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 27.569 27.030
1997 91.489 58.617
1998 152.316 50.711
1999 210.143 43.827
2000 265.060 37.838
2001 317.154 32.630
2002 366.510 28.105
2003 413.210 24.175
2004 457.334 20.765
2005 498.959 17.809
SUB 498.959 341.507
REM 913.877 94.770
TOT 913.877 436.277
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
RIPPLE 1-12 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
REAMS NW ---------- ---------- 10.00 627.252
OK, PITTSBURG GROSS WELLS 0.000 1.000 15.00 527.779
CROMWELL GROSS CUM. MB & MMF 0.000 2265.597 20.00 456.967
12 7N 14E GROSS RES. MB & MMF 0.000 1453.204 25.00 404.293
SEQ: 206 GROSS ULT. MB & MMF 0.000 3718.801 30.00 363.703
INIT W.I 46.290 LIFE/YR 23.000 RATE-OF-RETURN, % 100.00
INIT N.I 38.676 OPC/W 2439 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 68.486 0.000 26.487 0.000 2.530 67.013 5.645 0.000 4.755 56.613
1997 0.000 152.604 0.000 59.020 0.000 2.530 149.322 13.548 0.000 10.594 125.179
1998 0.000 137.344 0.000 53.118 0.000 2.530 134.389 13.548 0.000 9.535 111.306
1999 0.000 123.609 0.000 47.807 0.000 2.530 120.951 13.548 0.000 8.581 98.821
2000 0.000 111.248 0.000 43.026 0.000 2.530 108.855 13.548 0.000 7.723 87.584
2001 0.000 100.123 0.000 38.723 0.000 2.530 97.970 13.548 0.000 6.951 77.471
2002 0.000 90.111 0.000 34.851 0.000 2.530 88.173 13.548 0.000 6.256 68.369
2003 0.000 81.100 0.000 31.366 0.000 2.530 79.356 13.548 0.000 5.630 60.177
2004 0.000 72.990 0.000 28.229 0.000 2.530 71.420 13.548 0.000 5.067 52.805
2005 0.000 65.691 0.000 25.406 0.000 2.530 64.278 13.548 0.000 4.561 46.169
SUB 0.000 1003.306 0.000 388.034 0.000 2.530 981.727 127.577 0.000 69.653 784.494
REM 0.000 449.899 0.000 174.000 0.000 2.530 440.221 184.027 0.000 31.233 224.958
TOT 0.000 1453.205 0.000 562.034 0.000 2.530 1421.948 311.604 0.000 100.886 1009.452
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 56.613 55.512
1997 181.792 114.855
1998 293.098 92.844
1999 391.919 74.937
2000 479.503 60.379
2001 556.974 48.552
2002 625.343 38.954
2003 685.520 31.170
2004 738.325 24.865
2005 784.494 19.765
SUB 784.494 561.833
REM 1009.452 65.420
TOT 1009.452 627.253
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SARKEY FDN UN 3 P.W. % P.W., M$
KERR-MCGEE CORP OIL GAS ------ --------
KINTA ---------- ---------- 10.00 0.000
OK, PITTSBURG GROSS WELLS 0.000 1.000 15.00 0.000
HARTSHORNE GROSS CUM. MB & MMF 0.000 66.975 20.00 0.000
25 - 8N- 17E GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 519 GROSS ULT. MB & MMF 0.000 66.975 30.00 0.000
INIT W.I 25.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 21.875 OPC/W 4061 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SARKEYS UNIT P.W. % P.W., M$
KERR MCGEE CORP OIL GAS ------ --------
BROOKEN (HARTSHORNE) ---------- ---------- 10.00 246.167
OK, PITTSBURG GROSS WELLS 0.000 1.000 15.00 206.443
HARTSHORNE GROSS CUM. MB & MMF 0.000 3224.241 20.00 178.367
25 8N 17E GROSS RES. MB & MMF 0.000 998.670 25.00 157.584
SEQ: 38 GROSS ULT. MB & MMF 0.000 4222.911 30.00 141.622
INIT W.I 25.000 LIFE/YR 24.333 RATE-OF-RETURN, % 100.00
INIT N.I 21.875 OPC/W 1500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 46.472 0.000 10.166 0.000 2.520 25.618 1.875 0.000 1.818 21.925
1997 0.000 103.553 0.000 22.652 0.000 2.520 57.083 4.500 0.000 4.050 48.533
1998 0.000 93.197 0.000 20.387 0.000 2.520 51.375 4.500 0.000 3.645 43.230
1999 0.000 83.878 0.000 18.348 0.000 2.520 46.238 4.500 0.000 3.281 38.457
2000 0.000 75.490 0.000 16.513 0.000 2.520 41.614 4.500 0.000 2.952 34.161
2001 0.000 67.941 0.000 14.862 0.000 2.520 37.452 4.500 0.000 2.657 30.295
2002 0.000 61.147 0.000 13.376 0.000 2.520 33.707 4.500 0.000 2.392 26.816
2003 0.000 55.032 0.000 12.038 0.000 2.520 30.336 4.500 0.000 2.152 23.684
2004 0.000 49.529 0.000 10.834 0.000 2.520 27.303 4.500 0.000 1.937 20.866
2005 0.000 44.576 0.000 9.751 0.000 2.520 24.573 4.500 0.000 1.743 18.329
SUB 0.000 680.815 0.000 148.928 0.000 2.520 375.299 42.375 0.000 26.627 306.296
REM 0.000 317.858 0.000 69.531 0.000 2.520 175.218 67.125 0.000 12.430 95.660
TOT 0.000 998.673 0.000 218.459 0.000 2.520 550.517 109.500 0.000 39.057 401.956
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 21.925 21.499
1997 70.458 44.530
1998 113.688 36.059
1999 152.145 29.162
2000 186.306 23.550
2001 216.601 18.986
2002 243.417 15.278
2003 267.101 12.267
2004 287.967 9.825
2005 306.296 7.846
SUB 306.296 219.002
REM 401.956 27.165
TOT 401.956 246.167
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SIMMONS 2-31 P.W. % P.W., M$
APACHE CORP OIL GAS ------ --------
CARPENTER (MORROW UPPER) ---------- ---------- 10.00 57.567
OK, BECKHAM GROSS WELLS 0.000 1.000 15.00 46.182
MORROW UPPER GROSS CUM. MB & MMF 0.000 2444.088 20.00 38.799
31 12N 22W GROSS RES. MB & MMF 0.000 2302.919 25.00 33.635
SEQ: 671 GROSS ULT. MB & MMF 0.000 4747.007 30.00 29.820
ORRI INIT W.I 0.000 LIFE/YR 34.000 RATE-OF-RETURN, % 100.00
INIT N.I 2.790 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 83.540 0.000 2.331 0.000 1.950 4.545 0.000 0.000 0.322 4.222
1997 0.000 189.043 0.000 5.274 0.000 1.950 10.284 0.000 0.000 0.730 9.555
1998 0.000 173.920 0.000 4.852 0.000 1.950 9.462 0.000 0.000 0.671 8.790
1999 0.000 160.006 0.000 4.464 0.000 1.950 8.705 0.000 0.000 0.618 8.087
2000 0.000 147.206 0.000 4.107 0.000 1.950 8.008 0.000 0.000 0.568 7.440
2001 0.000 135.429 0.000 3.778 0.000 1.950 7.368 0.000 0.000 0.523 6.845
2002 0.000 124.595 0.000 3.476 0.000 1.950 6.778 0.000 0.000 0.481 6.297
2003 0.000 114.627 0.000 3.198 0.000 1.950 6.236 0.000 0.000 0.442 5.793
2004 0.000 105.457 0.000 2.942 0.000 1.950 5.737 0.000 0.000 0.407 5.330
2005 0.000 97.021 0.000 2.707 0.000 1.950 5.278 0.000 0.000 0.374 4.904
SUB 0.000 1330.844 0.000 37.128 0.000 1.950 72.401 0.000 0.000 5.136 67.263
REM 0.000 972.075 0.000 27.119 0.000 1.950 52.882 0.000 0.000 3.756 49.129
TOT 0.000 2302.919 0.000 64.247 0.000 1.950 125.283 0.000 0.000 8.892 116.392
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.222 4.140
1997 13.777 8.764
1998 22.567 7.330
1999 30.654 6.131
2000 38.094 5.127
2001 44.939 4.288
2002 51.236 3.587
2003 57.029 3.000
2004 62.359 2.509
2005 67.263 2.098
SUB 67.263 46.974
REM 116.392 10.593
TOT 116.392 57.567
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH NO 1-34 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ICONIUM NW ---------- ---------- 10.00 266.227
OK, LOGAN GROSS WELLS 1.000 0.000 15.00 242.945
WILCOX GROSS CUM. MB & MMF 220.587 6.811 20.00 223.769
34 17N 1E GROSS RES. MB & MMF 32.591 7.943 25.00 207.747
SEQ: 208 GROSS ULT. MB & MMF 253.178 14.754 30.00 194.186
INIT W.I 100.000 LIFE/YR 9.000 RATE-OF-RETURN, % 100.00
INIT N.I 76.260 OPC/W 1400 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.342 0.677 2.549 0.516 20.190 2.860 52.936 7.000 0.000 3.756 42.180
1997 6.860 1.449 5.232 1.105 20.190 2.860 108.788 16.800 0.000 7.719 84.270
1998 5.488 1.232 4.185 0.939 20.190 2.860 87.189 16.800 0.000 6.186 64.203
1999 4.391 1.047 3.348 0.798 20.190 2.860 69.885 16.800 0.000 4.958 48.127
2000 3.512 0.890 2.679 0.679 20.190 2.860 56.022 16.800 0.000 3.975 35.248
2001 2.810 0.756 2.143 0.577 20.190 2.860 44.915 16.800 0.000 3.187 24.928
2002 2.248 0.643 1.714 0.490 20.190 2.860 36.014 16.800 0.000 2.555 16.659
2003 1.798 0.547 1.371 0.417 20.190 2.860 28.882 16.800 0.000 2.049 10.033
2004 1.439 0.465 1.097 0.354 20.190 2.860 23.165 16.800 0.000 1.644 4.721
2005 0.702 0.238 0.536 0.182 20.190 2.860 11.334 9.800 0.000 0.804 0.730
SUB 32.590 7.944 24.854 6.057 20.190 2.860 519.130 151.200 0.000 36.833 331.099
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 32.590 7.944 24.854 6.057 20.190 2.860 519.130 151.200 0.000 36.833 331.099
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 42.180 41.368
1997 126.450 77.411
1998 190.653 53.621
1999 238.780 36.546
2000 274.028 24.338
2001 298.956 15.653
2002 315.615 9.515
2003 325.648 5.215
2004 330.369 2.239
2005 331.099 0.321
SUB 331.099 266.227
REM 331.099 0.000
TOT 331.099 266.227
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
SMITH NO 1-34 PDBP P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ICONIUM NW ---------- ---------- 10.00 217.657
OK, LOGAN GROSS WELLS 1.000 0.000 15.00 170.383
WILCOX GROSS CUM. MB & MMF 0.000 0.000 20.00 135.362
34 17N 1E GROSS RES. MB & MMF 19.505 97.525 25.00 108.951
SEQ: 272 GROSS ULT. MB & MMF 19.505 97.525 30.00 88.714
INIT W.I 100.000 LIFE/YR 12.917 RATE-OF-RETURN, % 100.00
INIT N.I 76.260 OPC/W 500 UNDISC NET/INVEST 9.32
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 6.056 30.280 4.618 23.091 20.190 2.860 159.284 6.000 45.000 11.301 96.982
2001 4.239 21.196 3.233 16.164 20.190 2.860 111.498 6.000 0.000 7.911 97.588
2002 2.967 14.837 2.263 11.315 20.190 2.860 78.049 6.000 0.000 5.538 66.511
2003 2.077 10.386 1.584 7.920 20.190 2.860 54.634 6.000 0.000 3.876 44.758
2004 1.454 7.270 1.109 5.544 20.190 2.860 38.244 6.000 0.000 2.713 29.531
2005 1.018 5.089 0.776 3.881 20.190 2.860 26.771 6.000 0.000 1.899 18.871
SUB 17.811 89.058 13.583 67.915 20.190 2.860 468.480 36.000 45.000 33.238 354.241
REM 1.693 8.467 1.291 6.457 20.190 2.860 44.540 21.000 0.000 3.160 20.379
TOT 19.504 97.525 14.874 74.372 20.190 2.860 513.020 57.000 45.000 36.398 374.620
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 96.982 65.579
2001 194.570 61.283
2002 261.081 37.973
2003 305.839 23.234
2004 335.370 13.938
2005 354.241 8.100
SUB 354.241 210.107
REM 374.620 7.551
TOT 374.620 217.658
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TAYLOR, JOY 1 P.W. % P.W., M$
MERIDIAN OIL INC OIL GAS ------ --------
CARPENTER (MORROW UPPER) ---------- ---------- 10.00 289.667
OK, ROGER MILLS GROSS WELLS 0.000 1.000 15.00 248.253
MORROW UPPER GROSS CUM. MB & MMF 0.000 9466.246 20.00 218.056
25 12N 23W GROSS RES. MB & MMF 0.000 7018.556 25.00 195.149
SEQ: 520 GROSS ULT. MB & MMF 0.000 16484.802 30.00 177.206
ORRI INIT W.I 0.000 LIFE/YR 18.500 RATE-OF-RETURN, % 100.00
INIT N.I 2.540 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 483.447 0.000 12.280 0.000 2.660 32.664 0.000 0.000 2.317 30.346
1997 0.000 1035.046 0.000 26.290 0.000 2.660 69.932 0.000 0.000 4.962 64.970
1998 0.000 879.789 0.000 22.347 0.000 2.660 59.442 0.000 0.000 4.217 55.225
1999 0.000 747.821 0.000 18.995 0.000 2.660 50.526 0.000 0.000 3.585 46.941
2000 0.000 635.648 0.000 16.145 0.000 2.660 42.947 0.000 0.000 3.047 39.900
2001 0.000 540.300 0.000 13.724 0.000 2.660 36.505 0.000 0.000 2.590 33.915
2002 0.000 459.255 0.000 11.665 0.000 2.660 31.029 0.000 0.000 2.202 28.828
2003 0.000 390.367 0.000 9.915 0.000 2.660 26.375 0.000 0.000 1.871 24.503
2004 0.000 331.812 0.000 8.428 0.000 2.660 22.419 0.000 0.000 1.591 20.828
2005 0.000 282.040 0.000 7.164 0.000 2.660 19.056 0.000 0.000 1.352 17.704
SUB 0.000 5785.525 0.000 146.952 0.000 2.660 390.895 0.000 0.000 27.734 363.160
REM 0.000 1233.031 0.000 31.319 0.000 2.660 83.309 0.000 0.000 5.910 77.396
TOT 0.000 7018.556 0.000 178.271 0.000 2.660 474.204 0.000 0.000 33.644 440.556
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 30.346 29.758
1997 95.316 59.633
1998 150.541 46.080
1999 197.482 35.608
2000 237.382 27.515
2001 271.297 21.262
2002 300.125 16.429
2003 324.628 12.695
2004 345.456 9.810
2005 363.160 7.581
SUB 363.160 266.371
REM 440.556 23.297
TOT 440.556 289.668
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TROUTT-MARSH P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ICONIUM NW ---------- ---------- 10.00 253.577
OK, LOGAN GROSS WELLS 1.000 0.000 15.00 227.643
WILCOX GROSS CUM. MB & MMF 250.207 189.315 20.00 206.985
2 16N 1E GROSS RES. MB & MMF 15.123 105.860 25.00 190.196
SEQ: 209 GROSS ULT. MB & MMF 265.330 295.175 30.00 176.309
INIT W.I 100.000 LIFE/YR 12.417 RATE-OF-RETURN, % 100.00
INIT N.I 75.226 OPC/W 500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.432 10.027 1.078 7.543 19.740 2.660 41.333 2.500 0.000 2.933 35.901
1997 2.940 20.581 2.212 15.482 19.740 2.660 84.842 6.000 0.000 6.020 72.823
1998 2.352 16.465 1.769 12.386 19.740 2.660 67.874 6.000 0.000 4.816 57.058
1999 1.882 13.172 1.416 9.909 19.740 2.660 54.299 6.000 0.000 3.853 44.447
2000 1.505 10.537 1.132 7.927 19.740 2.660 43.439 6.000 0.000 3.082 34.357
2001 1.204 8.430 0.906 6.342 19.740 2.660 34.751 6.000 0.000 2.466 26.286
2002 0.963 6.744 0.725 5.073 19.740 2.660 27.801 6.000 0.000 1.972 19.829
2003 0.771 5.395 0.580 4.059 19.740 2.660 22.241 6.000 0.000 1.578 14.663
2004 0.617 4.316 0.464 3.247 19.740 2.660 17.793 6.000 0.000 1.262 10.530
2005 0.493 3.453 0.371 2.597 19.740 2.660 14.234 6.000 0.000 1.010 7.224
SUB 14.159 99.120 10.652 74.564 19.740 2.660 408.607 56.500 0.000 28.992 323.118
REM 0.964 6.740 0.724 5.070 19.740 2.660 27.785 18.000 0.000 1.971 7.814
TOT 15.123 105.860 11.376 79.634 19.740 2.660 436.392 74.500 0.000 30.963 330.932
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 35.901 35.208
1997 108.724 66.883
1998 165.782 47.642
1999 210.229 33.740
2000 244.586 23.711
2001 270.872 16.493
2002 290.701 11.312
2003 305.364 7.606
2004 315.894 4.967
2005 323.118 3.099
SUB 323.118 250.661
REM 330.932 2.915
TOT 330.932 253.576
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TWIN WOMAN NW/4 P.W. % P.W., M$
H C M OIL GAS ------ --------
FAY EAST (CNGM-PRMR) ---------- ---------- 10.00 756.047
OK, BLAINE GROSS WELLS 0.000 1.000 15.00 655.274
CNGM-PRMR GROSS CUM. MB & MMF 110.000 8600.000 20.00 581.295
32 15N 13W GROSS RES. MB & MMF 5.595 1398.831 25.00 525.038
SEQ: 35 GROSS ULT. MB & MMF 115.595 9998.831 30.00 480.958
INIT W.I 52.724 LIFE/YR 14.417 RATE-OF-RETURN, % 100.00
INIT N.I 41.890 OPC/W 5065 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.310 77.402 0.130 32.424 19.740 3.960 130.958 13.352 0.000 9.292 108.315
1997 0.669 167.222 0.280 70.049 19.740 3.333 239.027 32.046 0.000 16.959 190.022
1998 0.584 146.084 0.245 61.195 19.740 2.660 167.610 32.046 0.000 11.892 123.672
1999 0.518 129.508 0.217 54.251 19.740 2.660 148.591 32.046 0.000 10.543 106.003
2000 0.465 116.176 0.195 48.666 19.740 2.660 133.295 32.046 0.000 9.457 91.792
2001 0.421 105.232 0.176 44.082 19.740 2.660 120.738 32.046 0.000 8.566 80.126
2002 0.384 96.095 0.161 40.254 19.740 2.660 110.254 32.046 0.000 7.823 70.386
2003 0.353 88.356 0.148 37.012 19.740 2.660 101.375 32.046 0.000 7.193 62.137
2004 0.327 81.722 0.137 34.233 19.740 2.660 93.764 32.046 0.000 6.653 55.065
2005 0.304 75.974 0.127 31.826 19.740 2.660 87.169 32.046 0.000 6.185 48.939
SUB 4.335 1083.771 1.816 453.992 19.740 2.857 1332.781 301.766 0.000 94.563 936.457
REM 1.260 315.057 0.528 131.978 19.740 2.660 361.481 160.230 0.000 25.647 175.607
TOT 5.595 1398.828 2.344 585.970 19.740 2.812 1694.262 461.996 0.000 120.210 1112.064
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 108.315 106.217
1997 298.337 175.344
1998 422.009 103.192
1999 528.012 80.401
2000 619.804 63.288
2001 699.930 50.220
2002 770.316 40.103
2003 832.453 32.184
2004 887.518 25.927
2005 936.457 20.948
SUB 936.457 697.824
REM 1112.064 58.224
TOT 1112.064 756.048
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WELLS 1-28 NW P.W. % P.W., M$
CHESAPEAKE OPERATING INC OIL GAS ------ --------
GOLDEN TREND (HNTN-SCMR-WDFD) ---------- ---------- 10.00 0.406
OK, GARVIN GROSS WELLS 0.000 1.000 15.00 0.386
HNTN-SCMR-WDFD GROSS CUM. MB & MMF 6.811 167.606 20.00 0.369
28 4N 4W GROSS RES. MB & MMF 1.733 57.773 25.00 0.353
SEQ: 675 GROSS ULT. MB & MMF 8.544 225.379 30.00 0.339
INIT W.I 0.000 LIFE/YR 2.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.278 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.376 12.545 0.001 0.035 19.747 2.450 0.106 0.000 0.000 0.008 0.098
1997 0.705 23.488 0.002 0.065 19.745 2.450 0.198 0.000 0.000 0.014 0.184
1998 0.493 16.442 0.001 0.046 19.737 2.450 0.139 0.000 0.000 0.010 0.129
1999 0.159 5.298 0.000 0.015 19.744 2.450 0.045 0.000 0.000 0.003 0.042
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.733 57.773 0.005 0.160 19.743 2.450 0.488 0.000 0.000 0.035 0.453
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.733 57.773 0.005 0.160 19.743 2.450 0.488 0.000 0.000 0.035 0.453
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.098 0.097
1997 0.282 0.169
1998 0.411 0.108
1999 0.453 0.032
2000 0.453 0.000
2001 0.453 0.000
2002 0.453 0.000
2003 0.453 0.000
2004 0.453 0.000
2005 0.453 0.000
SUB 0.453 0.406
REM 0.453 0.000
TOT 0.453 0.406
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ALUM CREEK FIELD TOTAL P.W. % P.W., M$
PLACID OIL CO OIL GAS ------ --------
ALUM CREEK ---------- ---------- 10.00 124.106
SD, FALL RIVER GROSS WELLS 0.000 1.000 15.00 112.528
LEO GROSS CUM. MB & MMF 2044.820 3085.134 20.00 103.067
3 11S 1E GROSS RES. MB & MMF 253.340 111.083 25.00 95.216
SEQ: 637 GROSS ULT. MB & MMF 2298.160 3196.217 30.00 88.615
INIT W.I 7.516 LIFE/YR 9.083 RATE-OF-RETURN, % 100.00
INIT N.I 6.567 OPC/W 16675 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 21.204 9.427 1.393 0.619 17.300 2.660 25.737 6.266 0.000 1.159 18.312
1997 44.556 20.183 2.926 1.325 17.300 2.660 54.147 15.039 0.000 2.438 36.670
1998 38.318 17.156 2.516 1.127 17.300 2.660 46.531 15.039 0.000 2.095 29.397
1999 32.953 14.583 2.164 0.958 17.300 2.660 39.987 15.039 0.000 1.800 23.147
2000 28.340 12.395 1.861 0.814 17.300 2.660 34.363 15.039 0.000 1.547 17.777
2001 24.372 10.536 1.601 0.692 17.300 2.660 29.531 15.039 0.000 1.330 13.162
2002 20.960 8.955 1.376 0.588 17.300 2.660 25.378 15.039 0.000 1.143 9.196
2003 18.026 7.612 1.184 0.500 17.300 2.660 21.809 15.039 0.000 0.982 5.788
2004 15.502 6.470 1.018 0.425 17.300 2.660 18.743 15.039 0.000 0.844 2.860
2005 9.109 3.765 0.598 0.247 17.300 2.660 11.007 10.026 0.000 0.496 0.485
SUB 253.340 111.082 16.637 7.295 17.300 2.660 307.233 136.604 0.000 13.834 156.794
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 253.340 111.082 16.637 7.295 17.300 2.660 307.233 136.604 0.000 13.834 156.794
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 18.312 17.962
1997 54.982 33.671
1998 84.379 24.542
1999 107.526 17.571
2000 125.303 12.270
2001 138.465 8.262
2002 147.661 5.251
2003 153.449 3.008
2004 156.309 1.355
2005 156.794 0.213
SUB 156.794 124.105
REM 156.794 0.000
TOT 156.794 124.105
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, caculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
A-PROVED DEVE PRODUCING
AFGRD UNIT P.W. % P.W., M$
BAXTER MURPHY H OIL GAS ------ --------
ALABAMA FERRY (GLEN ROSE D) ---------- ---------- 10.00 2.712
TX, HOUSTON GROSS WELLS 1.000 0.000 15.00 2.626
GLEN ROSE D GROSS CUM. MB & MMF 7576.791 15155.153 20.00 2.547
GROSS RES. MB & MMF 1141.446 1312.663 25.00 2.475
SEQ: 521 GROSS ULT. MB & MMF 8718.237 16467.816 30.00 2.409
INIT W.I 0.040 LIFE/YR 2.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.032 OPC/W 403498 UNDISC NET/INVEST 0.00
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 267.157 307.230 0.085 0.098 20.380 2.510 1.989
1997 500.213 575.245 0.160 0.184 20.380 2.510 3.724
1998 350.149 402.672 0.112 0.129 20.380 2.510 2.607
1999 23.927 27.516 0.008 0.009 20.379 2.510 0.178
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1141.446 1312.663 0.365 0.420 20.380 2.510 8.498
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1141.446 1312.663 0.365 0.420 20.380 2.510 8.498
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
1996 0.807 0.000 0.175 1.008 1.008 0.989
1997 1.937 0.000 0.327 1.461 2.469 1.348
1998 1.937 0.000 0.228 0.442 2.911 0.374
1999 0.161 0.000 0.016 0.001 2.912 0.001
2000 0.000 0.000 0.000 0.000 2.912 0.000
2001 0.000 0.000 0.000 0.000 2.912 0.000
2002 0.000 0.000 0.000 0.000 2.912 0.000
2003 0.000 0.000 0.000 0.000 2.912 0.000
2004 0.000 0.000 0.000 0.000 2.912 0.000
2005 0.000 0.000 0.000 0.000 2.912 0.000
SUB 4.842 0.000 0.746 2.912 2.912 2.712
REM 0.000 0.000 0.000 0.000 2.912 0.000
TOT 4.842 0.000 0.746 2.912 2.912 2.712
</TABLE>
- 345 -
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
AFNU
TORCH OPERATING CO
ALABAMA FERRY (GLEN ROSE D)
TX, LEON
GLEN ROSE D
SEQ: 522
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 54.045 97.280 0.060 0.108 20.380 2.510 1.498
1997 91.141 164.053 0.101 0.183 20.380 2.510 2.526
1998 54.684 98.432 0.061 0.110 20.380 2.510 1.516
1999 32.811 59.059 0.037 0.066 20.380 2.510 0.909
2000 19.686 35.436 0.022 0.039 20.380 2.510 0.546
2001 11.812 21.261 0.013 0.024 20.380 2.510 0.327
2002 7.087 12.757 0.008 0.014 20.379 2.510 0.196
2003 4.252 7.654 0.005 0.009 20.379 2.510 0.118
2004 2.551 4.592 0.003 0.005 20.382 2.510 0.071
2005 1.327 2.388 0.001 0.003 20.380 2.510 0.037
SUB 279.396 502.912 0.311 0.560 20.380 2.510 7.744
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 279.396 502.912 0.311 0.560 20.380 2.510 7.744
<CAPTION>
A-PROVED DEVE PRODUCING
AFNU P.W. % P.W., M$
TORCH OPERATING CO OIL GAS ------ --------
ALABAMA FERRY (GLEN ROSE D) ---------- ---------- 10.00 5.774
TX, LEON GROSS WELLS 1.000 0.000 15.00 5.404
GLEN ROSE D GROSS CUM. MB & MMF 5122.165 10332.458 20.00 5.089
GROSS RES. MB & MMF 279.396 502.913 25.00 4.819
SEQ: 522 GROSS ULT. MB & MMF 5401.561 10835.371 30.00 4.584
INIT W.I 0.115 LIFE/YR 9.250 RATE-OF-RETURN, % 100.00
INIT N.I 0.111 OPC/W 2364 UNDISC NET/INVEST 0.00
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.014 0.000 0.134 1.351 1.351 1.325
1997 0.033 0.000 0.225 2.268 3.619 2.088
1998 0.033 0.000 0.136 1.348 4.967 1.128
1999 0.033 0.000 0.082 0.796 5.763 0.605
2000 0.033 0.000 0.049 0.464 6.227 0.321
2001 0.033 0.000 0.029 0.265 6.492 0.167
2002 0.033 0.000 0.017 0.146 6.638 0.084
2003 0.033 0.000 0.010 0.075 6.713 0.039
2004 0.033 0.000 0.007 0.032 6.745 0.015
2005 0.027 0.000 0.003 0.006 6.751 0.003
SUB 0.305 0.000 0.692 6.751 6.751 5.775
REM 0.000 0.000 0.000 0.000 6.751 0.000
TOT 0.305 0.000 0.692 6.751 6.751 5.775
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ALLEN, J.H. #1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CROW ---------- ---------- 10.00 0.000
TX, WOOD GROSS WELLS 1.000 0.000 15.00 0.000
RODESSA GROSS CUM. MB & MMF 187.671 769.360 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 343 GROSS ULT. MB & MMF 187.671 769.360 30.00 0.000
NO RESERVES, SHUT-IN.
INIT W.I 79.167 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 61.414 OPC/W 600 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---------- -----------
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ALLEN, J.H. #2 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
CROW ---------- ----------
TX, WOOD 10.00 685.532
RODESSA UPPER GROSS WELLS 1.000 0.000 15.00 538.329
GROSS CUM. MB & MMF 576.526 845.744 20.00 445.512
SEQ: 210 GROSS RES. MB & MMF 136.189 278.568 25.00 381.953
GROSS ULT. MB & MMF 712.715 1124.312 30.00 335.777
INIT W.I 79.167 LIFE/YR 41.667 RATE-OF-RETURN, % 100.00
INIT N.I 61.414 OPC/W 1526 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.265 6.678 2.005 4.101 19.120 3.960 54.581 6.040 0.000 4.018 44.523
1997 7.557 15.458 4.641 9.493 19.120 3.960 126.331 14.497 0.000 9.298 102.536
1998 7.179 14.685 4.409 9.019 19.120 3.960 120.015 14.497 0.000 8.834 96.684
1999 6.820 13.950 4.189 8.568 19.120 3.960 114.014 14.497 0.000 8.393 91.125
2000 6.479 13.253 3.979 8.139 19.120 3.960 108.313 14.497 0.000 7.973 85.844
2001 6.155 12.590 3.780 7.732 19.120 3.960 102.898 14.497 0.000 7.573 80.827
2002 5.848 11.961 3.591 7.346 19.120 3.960 97.753 14.497 0.000 7.195 76.061
2003 5.555 11.363 3.412 6.978 19.120 3.960 92.865 14.497 0.000 6.836 71.533
2004 5.277 10.795 3.241 6.629 19.120 3.960 88.222 14.497 0.000 6.494 67.231
2005 5.014 10.255 3.079 6.298 19.120 3.960 83.811 14.497 0.000 6.169 63.145
SUB 59.149 120.988 36.326 74.304 19.120 3.960 988.803 136.513 0.000 72.783 779.509
REM 77.039 157.577 47.313 96.777 19.120 3.960 1287.869 467.528 0.000 94.796 725.548
TOT 136.188 278.565 83.640 171.081 19.120 3.960 2276.672 604.041 0.000 167.579 1505.057
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 44.523 43.654
1997 147.059 94.036
1998 243.743 80.609
1999 334.868 69.068
2000 420.712 59.150
2001 501.539 50.630
2002 577.600 43.314
2003 649.133 37.032
2004 716.364 31.641
2005 779.509 27.017
SUB 779.509 536.151
REM 1505.057 149.379
TOT 1505.057 685.530
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
A-PROVED DEVE PRODUCING
<TABLE>
<S> <C>
P.W. % P.W., M$
AMACKER, V.T. 106-1 OIL GAS ------ --------
HUNT OIL CO ---------- ---------- 10.00 30.790
AMACKER-TIPPETT (DEVONIAN) GROSS WELLS 0.000 1.000 15.00 25.486
TX, UPTON GROSS CUM. MB & MMF 50.841 2724.420 20.00 21.983
DEVONIAN GROSS RES. MB & MMF 67.808 4676.392 25.00 19.482
CCSD& GROSS ULT. MB & MMF 118.649 7400.812 30.00 17.599
SEQ: 638
INIT W.I 0.000 LIFE/YR 40.417 RATE-OF-RETURN, % 100.00
INIT N.I 0.506 OPC/W 2500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- ---(MMCF)--- ---($/BBL)--- ---($/MCF)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.756 259.010 0.019 1.311 21.120 2.460 3.625 0.000 0.000
1997 7.514 518.191 0.038 2.622 21.120 2.460 7.253 0.000 0.000
1998 6.031 415.946 0.031 2.105 21.120 2.460 5.822 0.000 0.000
1999 5.021 346.306 0.025 1.752 21.120 2.460 4.847 0.000 0.000
2000 4.291 295.942 0.022 1.497 21.120 2.460 4.142 0.000 0.000
2001 3.739 257.896 0.019 1.305 21.120 2.460 3.610 0.000 0.000
2002 3.309 228.186 0.017 1.155 21.120 2.460 3.194 0.000 0.000
2003 2.963 204.372 0.015 1.034 21.120 2.460 2.861 0.000 0.000
2004 2.681 184.877 0.014 0.935 21.120 2.460 2.588 0.000 0.000
2005 2.445 168.637 0.012 0.853 21.121 2.460 2.360 0.000 0.000
SUB 41.750 2879.363 0.211 14.569 21.120 2.460 40.302 0.000 0.000
REM 26.054 1797.030 0.132 9.093 21.120 2.460 25.150 0.000 0.000
TOT 67.804 4676.393 0.343 23.662 21.120 2.460 65.452 0.000 0.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 0.395 3.230 3.230 3.168
1997 0.790 6.463 9.693 5.936
1998 0.634 5.188 14.881 4.330
1999 0.528 4.319 19.200 3.277
2000 0.451 3.691 22.891 2.545
2001 0.393 3.217 26.108 2.016
2002 0.348 2.846 28.954 1.621
2003 0.311 2.549 31.503 1.320
2004 0.282 2.306 33.809 1.085
2005 0.257 2.103 35.912 0.900
SUB 4.389 35.912 35.912 26.198
REM 2.738 22.412 58.324 4.591
TOT 7.127 58.324 58.324 30.789
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ARCO -22- P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
ARBOL DE NADA ---------- ---------- 10.00 272.207
TX, ECTOR GROSS WELLS 1.000 0.000 15.00 214.780
DEVONIAN GROSS CUM. MB & MMF 94.285 371.553 20.00 178.178
GROSS RES. MB & MMF 62.256 112.895 25.00 152.970
SEQ: 211 GROSS ULT. MB & MMF 156.541 484.448 30.00 134.596
INIT W.I 99.772 LIFE/YR 37.167 RATE-OF-RETURN, % 100.00
INIT N.I 68.944 OPC/W 810 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- ---(MMCF)--- ---(MB)--- ---(MMCF)--- ---($/BBL)--- ---($/MCF)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.345 3.606 0.927 2.486 19.550 2.430 24.168 4.041 0.000
1997 3.136 8.221 2.162 5.668 19.550 2.430 56.043 9.698 0.000
1998 3.011 7.646 2.076 5.271 19.550 2.430 53.388 9.698 0.000
1999 2.890 7.111 1.993 4.902 19.550 2.430 50.868 9.698 0.000
2000 2.775 6.613 1.913 4.559 19.550 2.430 48.476 9.698 0.000
2001 2.664 6.150 1.836 4.240 19.550 2.430 46.204 9.698 0.000
2002 2.557 5.719 1.763 3.943 19.550 2.430 44.047 9.698 0.000
2003 2.455 5.319 1.692 3.667 19.550 2.430 41.998 9.698 0.000
2004 2.357 4.947 1.625 3.410 19.550 2.430 40.051 9.698 0.000
2005 2.262 4.601 1.560 3.172 19.550 2.430 38.200 9.698 0.000
SUB 25.452 59.933 17.547 41.319 19.550 2.430 443.443 91.323 0.000
REM 36.806 52.963 25.375 36.514 19.550 2.430 584.814 269.119 0.000
TOT 62.258 112.896 42.922 77.834 19.550 2.430 1028.257 360.442 0.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 2.202 17.925 17.925 17.575
1997 5.100 41.245 59.170 37.826
1998 4.849 38.840 98.010 32.383
1999 4.612 36.557 134.567 27.709
2000 4.388 34.390 168.957 23.696
2001 4.175 32.331 201.288 20.253
2002 3.974 30.376 231.664 17.298
2003 3.782 28.517 260.181 14.764
2004 3.602 26.751 286.932 12.590
2005 3.430 25.073 312.005 10.728
SUB 40.114 312.005 312.005 214.822
REM 51.685 264.008 576.013 57.386
TOT 91.799 576.013 576.013 272.208
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BREEDLOVE 4 P.W. % P.W., M$
TITAN RESOURCES I INC OIL GAS ------ --------
BREEDLOVE SOUTH (SPRABERRY) ---------- ---------- 10.00 134.223
TX, MARTIN GROSS WELLS 1.000 0.000 15.00 103.769
SPRABERRY GROSS CUM. MB & MMF 170.735 611.809 20.00 85.057
GROSS RES. MB & MMF 122.088 293.010 25.00 72.453
SEQ: 46 GROSS ULT. MB & MMF 292.823 904.819 30.00 63.401
INIT W.I 25.000 LIFE/YR 46.083 RATE-OF-RETURN, % 100.00
INIT N.I 17.570 OPC/W 1185 UNDISC NET/INVEST 0.00
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.429 5.830 0.427 1.024 20.330 1.860 10.583 1.481 0.000 0.944 8.158
1997 5.664 13.595 0.995 2.389 20.330 1.860 24.676 3.555 0.000 2.200 18.921
1998 5.438 13.051 0.955 2.293 20.330 1.860 23.689 3.555 0.000 2.112 18.022
1999 5.220 12.529 0.917 2.201 20.330 1.860 22.741 3.555 0.000 2.028 17.158
2000 5.012 12.028 0.881 2.113 20.330 1.860 21.832 3.555 0.000 1.947 16.330
2001 4.811 11.547 0.845 2.029 20.330 1.860 20.958 3.555 0.000 1.869 15.535
2002 4.619 11.085 0.811 1.948 20.330 1.860 20.120 3.555 0.000 1.795 14.771
2003 4.434 10.641 0.779 1.870 20.330 1.860 19.315 3.555 0.000 1.722 14.038
2004 4.257 10.216 0.748 1.795 20.330 1.860 18.543 3.555 0.000 1.654 13.334
2005 4.086 9.807 0.718 1.723 20.330 1.860 17.801 3.555 0.000 1.588 12.659
SUB 45.970 110.329 8.077 19.385 20.330 1.860 200.258 33.476 0.000 17.859 148.926
REM 76.121 182.683 13.374 32.097 20.330 1.860 331.591 130.350 0.000 29.568 171.671
TOT 122.091 293.012 21.451 51.482 20.330 1.860 531.849 163.826 0.000 47.427 320.597
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.158 7.998
1997 27.079 17.351
1998 45.101 15.024
1999 62.259 13.004
2000 78.589 11.251
2001 94.124 9.730
2002 108.895 8.411
2003 122.933 7.267
2004 136.267 6.275
2005 148.926 5.416
SUB 148.926 101.727
REM 320.597 32.496
TOT 320.597 134.223
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CHANCE - BLAHA UNIT P.W. % P.W., M$
MCENA INC OIL GAS ------ --------
GIDDINGS (AUSTIN CHALK-3) ---------- ---------- 10.00 117.070
TX, BURLESON GROSS WELLS 1.000 0.000 15.00 109.507
AUSTIN CHALK-3 GROSS CUM. MB & MMF 228.535 1257.599 20.00 103.004
GROSS RES. MB & MMF 24.923 218.074 25.00 97.361
SEQ: 44 GROSS ULT. MB & MMF 253.458 1475.673 30.00 92.423
INIT W.I 30.000 LIFE/YR 6.000 RATE-OF-RETURN, % 100.00
INIT N.I 20.370 OPC/W 3718 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.425 29.968 0.698 6.104 20.490 2.970 32.425 5.577 0.000 2.627 24.221
1997 6.723 58.830 1.370 11.984 20.490 2.970 63.654 13.385 0.000 5.157 45.113
1998 5.043 44.123 1.027 8.988 20.490 2.970 47.741 13.385 0.000 3.867 30.488
1999 3.782 33.092 0.770 6.741 20.490 2.970 35.806 13.385 0.000 2.901 19.520
2000 2.836 24.819 0.578 5.056 20.490 2.970 26.854 13.385 0.000 2.176 11.294
2001 2.127 18.614 0.433 3.792 20.490 2.970 20.141 13.385 0.000 1.632 5.124
2002 0.986 8.627 0.201 1.757 20.490 2.970 9.335 7.808 0.000 0.756 0.771
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 24.922 218.073 5.077 44.422 20.490 2.970 235.956 80.310 0.000 19.116 136.531
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 24.922 218.073 5.077 44.422 20.490 2.970 235.956 80.310 0.000 19.116 136.531
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 24.221 23.757
1997 69.334 41.476
1998 99.822 25.490
1999 119.342 14.845
2000 130.636 7.817
2001 135.760 3.235
2002 136.531 0.451
2003 136.531 0.000
2004 136.531 0.000
2005 136.531 0.000
SUB 136.531 117.071
REM 136.531 0.000
TOT 136.531 117.071
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CHANCE ESTATE UNIT P.W. % P.W., M$
MCENA INC OIL GAS ------ --------
GIDDINGS (AUSTIN CHALK-3) ---------- ---------- 10.00 68.163
TX, BURLESON GROSS WELLS 1.000 0.000 15.00 63.381
AUSTIN CHALK-3 GROSS CUM. MB & MMF 156.815 1029.954 20.00 59.309
GROSS RES. MB & MMF 23.705 279.719 25.00 55.807
SEQ: 523 GROSS ULT. MB & MMF 180.520 1309.673 30.00 52.767
INIT W.I 30.000 LIFE/YR 6.333 RATE-OF-RETURN, % 100.00
INIT N.I 21.132 OPC/W 4563 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.598 30.654 0.549 6.478 20.470 1.730 22.444 6.844 0.000 2.200 13.398
1997 5.259 62.054 1.111 13.113 20.470 1.730 45.433 16.427 0.000 4.455 24.551
1998 4.301 50.755 0.909 10.725 20.470 1.730 37.160 16.427 0.000 3.644 17.090
1999 3.676 43.373 0.777 9.165 20.470 1.730 31.756 16.427 0.000 3.114 12.215
2000 3.128 36.907 0.661 7.799 20.470 1.730 27.022 16.427 0.000 2.650 7.946
2001 2.659 31.371 0.562 6.629 20.470 1.730 22.969 16.427 0.000 2.252 4.290
2002 2.085 24.605 0.441 5.200 20.470 1.730 18.015 15.058 0.000 1.767 1.191
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 23.706 279.719 5.009 59.109 20.470 1.730 204.799 104.037 0.000 20.082 80.681
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 23.706 279.719 5.009 59.109 20.470 1.730 204.799 104.037 0.000 20.082 80.681
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 13.398 13.143
1997 37.949 22.572
1998 55.039 14.281
1999 67.254 9.281
2000 75.200 5.494
2001 79.490 2.702
2002 80.681 0.690
2003 80.681 0.000
2004 80.681 0.000
2005 80.681 0.000
SUB 80.681 68.163
REM 80.681 0.000
TOT 80.681 68.163
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consiting of a line graph
depicting actual and estimated production, as applicable, calculated of October
25, 1996, of oil and gas, measured in barrels and thousands of cubic feet,
respectively, at this lease in the years 1988 through 2007, inclusive.64
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
CHANDLER P.W. % P.W., M$
ARCADIA EXPL & PROD CO OIL GAS ------ --------
MARTINS MILL (RODESSA 8250) ---------- ---------- 10.00 0.211
TX, VAN ZANDT GROSS WELLS 1.000 0.000 15.00 0.197
RODESSA 8250 GROSS CUM. MB & MMF 59.294 1887.173 20.00 0.185
WDAUG GROSS RES. MB & MMF 1.253 24.384 25.00 0.175
SEQ: 524 GROSS ULT. MB & MMF 60.547 1911.557 30.00 0.166
ORRI INIT W.I 0.000 LIFE/YR 4.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.331 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS PERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- --(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.188 4.577 0.001 0.015 19.747 2.390 0.049
1997 0.370 8.148 0.001 0.027 19.748 2.390 0.089
1998 0.278 5.296 0.001 0.018 19.742 2.390 0.060
1999 0.208 3.442 0.001 0.011 19.749 2.390 0.041
2000 0.156 2.238 0.001 0.007 19.739 2.390 0.028
2001 0.053 0.683 0.000 0.002 19.760 2.391 0.009
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.253 24.384 0.004 0.081 19.746 2.390 0.276
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.253 24.384 0.004 0.081 19.746 2.390 0.276
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.005 0.043 0.043 0.043
1997 0.000 0.000 0.009 0.079 0.122 0.073
1998 0.000 0.000 0.006 0.054 0.176 0.045
1999 0.000 0.000 0.005 0.037 0.213 0.028
2000 0.000 0.000 0.003 0.025 0.238 0.017
2001 0.000 0.000 0.001 0.008 0.246 0.005
2002 0.000 0.000 0.000 0.000 0.246 0.000
2003 0.000 0.000 0.000 0.000 0.246 0.000
2004 0.000 0.000 0.000 0.000 0.246 0.000
2005 0.000 0.000 0.000 0.000 0.246 0.000
SUB 0.000 0.000 0.029 0.246 0.246 0.211
REM 0.000 0.000 0.000 0.000 0.246 0.000
TOT 0.000 0.000 0.029 0.246 0.246 0.211
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubit
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
COLDWELL, DALLAS P.W. % P.W., M$
MOBIL PRODUCING TX & NM OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 40.414
TX, GREGG GROSS WELLS 1.000 0.000 15.00 33.177
GROSS CUM. MB & MMF 988.540 320.660 20.00 28.032
GROSS RES. MB & MMF 402.649 120.795 25.00 24.236
SEQ: 644 GROSS ULT. MB & MMF 1391.189 441.455 30.00 21.346
ORRI INIT W.I 0.000 LIFE/YR 19.167 RATE-OF-RETURN, % 100.00
INIT N.I 0.885 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)---
<C> <C>
1996 15.000 4.500 0.133 0.040 19.880 2.860 2.754 0.000 0.000
1997 36.000 10.800 0.319 0.096 19.880 2.860 6.609 0.000 0.000
1998 36.000 10.800 0.319 0.096 19.880 2.860 6.609 0.000 0.000
1999 36.000 10.800 0.319 0.096 19.880 2.860 6.609 0.000 0.000
2000 36.000 10.800 0.319 0.096 19.880 2.860 6.609 0.000 0.000
2001 36.000 10.800 0.319 0.096 19.880 2.860 6.609 0.000 0.000
2002 36.000 10.800 0.319 0.096 19.880 2.860 6.609 0.000 0.000
2003 35.324 10.597 0.313 0.094 19.880 2.860 6.484 0.000 0.000
2004 29.401 8.820 0.260 0.078 19.880 2.860 5.397 0.000 0.000
2005 23.521 7.056 0.208 0.062 19.880 2.860 4.318 0.000 0.000
SUB 319.246 95.773 2.826 0.848 19.880 2.860 58.607 0.000 0.000
REM 83.403 25.021 0.738 0.221 19.880 2.860 15.311 0.000 0.000
TOT 402.649 120.794 3.564 1.069 19.880 2.860 73.918 0.000 0.000
<CAPTION>
SEV & ADV FUTURE NET CUM. NET PRESENT WTH
TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C>
1996 0.235 2.519 2.519 2.469
1997 0.564 6.045 8.564 5.541
1998 0.564 6.045 14.609 5.037
1999 0.564 6.045 20.654 4.579
2000 0.564 6.045 26.699 4.163
2001 0.564 6.045 32.744 3.785
2002 0.564 6.045 38.789 3.441
2003 0.553 5.931 44.720 3.071
2004 0.461 4.937 49.657 2.326
2005 0.369 3.949 53.606 1.692
SUB 5.002 53.606 53.606 36.104
REM 1.305 14.005 67.611 4.308
TOT 6.307 67.611 67.611 40.412
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<CAPTION>
COVINGTON #1
GERMANY OPERATING COMPAN
PERRIN NORTH AFB
TX, GRAYSON
BAKER
SEQ: 212
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.663 7.791 1.161 5.439 19.690 2.450 36.188
1997 3.706 17.089 2.587 11.930 19.690 2.450 80.173
1998 3.335 15.038 2.329 10.498 19.690 2.450 71.571
1999 3.002 13.233 2.096 9.239 19.690 2.450 63.899
2000 2.702 11.645 1.886 8.130 19.690 2.450 57.057
2001 2.432 10.248 1.698 7.154 19.690 2.450 50.953
2002 2.188 9.018 1.528 6.296 19.690 2.450 45.507
2003 1.970 7.936 1.375 5.540 19.690 2.450 40.648
2004 1.773 6.984 1.238 4.875 19.690 2.450 36.311
2005 1.595 6.146 1.114 4.290 19.690 2.450 32.441
SUB 24.366 105.128 17.010 73.392 19.690 2.450 514.748
REM 9.482 32.912 6.620 22.976 19.690 2.450 186.631
TOT 33.848 138.040 23.630 96.368 19.690 2.450 701.379
<CAPTION>
A-PROVED DEVE PRODUCING
COVINGTON #1 P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
PERRIN NORTH AFB ---------- ---------- 10.00 301.570
TX, GRAYSON GROSS WELLS 1.000 0.000 15.00 257.071
BAKER GROSS CUM. MB & MMF 122.112 371.898 20.00 224.593
GROSS RES. MB & MMF 33.848 138.039 25.00 199.992
SEQ: 212 GROSS ULT. MB & MMF 155.960 509.937 30.00 180.778
INIT W.I 85.150 LIFE/YR 19.667 RATE-OF-RETURN, % 100.00
INIT N.I 69.812 OPC/W 865 UNDISC NET/INVEST 0.00
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
1996 3.683 0.000 3.416 29.089 29.089 28.523
1997 8.839 0.000 7.561 63.773 92.862 58.519
1998 8.839 0.000 6.739 55.993 148.855 46.710
1999 8.839 0.000 6.008 49.053 197.908 37.201
2000 8.839 0.000 5.356 42.862 240.770 29.551
2001 8.839 0.000 4.776 37.338 278.108 23.403
2002 8.839 0.000 4.260 32.409 310.517 18.468
2003 8.839 0.000 3.798 28.010 338.527 14.511
2004 8.839 0.000 3.389 24.084 362.611 11.343
2005 8.839 0.000 3.023 20.580 383.191 8.812
SUB 83.234 0.000 48.326 383.191 383.191 277.041
REM 90.600 0.000 17.273 78.761 461.952 24.528
TOT 173.834 0.000 65.599 461.952 461.952 301.569
- 356 -
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
COVINGTON #1 - PDBP P.W. % P.W.,M$
GERMANY OPERATING COMPAN OIL GAS ------ -------
PERRIN NORTH AFB ---------- ---------- 10.00 383.359
TX, GRAYSON GROSS WELLS 1.000 0.000 15.00 319.191
BAKER GROSS CUM. MB & MMF 0.000 0.000 20.00 269.661
GROSS RES. MB & MMF 40.000 110.000 25.00 230.557
SEQ: 277 GROSS ULT. MB & MMF 40.000 110.000 30.00 199.072
INIT W.I 85.150 LIFE/YR 10.917 RATE-OF-RETURN, % 100.00
INIT N.I 69.812 OPC/W 250 UNDISC NET/INVEST 7.88
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 85.150 0.000 -85.150
1997 6.922 19.036 4.833 13.290 19.690 2.450 127.715 0.000 0.000 11.655 116.060
1998 6.950 19.114 4.852 13.344 19.690 2.450 128.234 0.000 0.000 11.702 116.531
1999 5.719 15.727 3.993 10.980 19.690 2.450 105.515 0.000 0.000 9.629 95.886
2000 4.706 12.941 3.285 9.034 19.690 2.450 86.822 0.000 0.000 7.923 78.898
2001 3.872 10.648 2.703 7.434 19.690 2.450 71.440 0.000 0.000 6.519 64.920
2002 3.186 8.762 2.224 6.117 19.690 2.450 58.783 0.000 0.000 5.365 53.419
2003 2.622 7.210 1.830 5.033 19.690 2.450 48.369 0.000 0.000 4.414 43.955
2004 2.157 5.932 1.506 4.141 19.690 2.450 39.800 0.000 0.000 3.632 36.168
2005 1.775 4.881 1.239 3.408 19.690 2.450 32.748 0.000 0.000 2.989 29.760
SUB 37.909 104.251 26.466 72.781 19.690 2.450 699.426 0.000 85.150 63.828 550.447
REM 2.091 5.747 1.459 4.013 19.690 2.450 38.562 0.000 0.000 3.519 35.042
TOT 40.000 109.998 27.925 76.794 19.690 2.450 737.988 0.000 85.150 67.347 585.489
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 -85.150 -83.808
1997 30.910 105.649
1998 147.441 97.261
1999 243.327 72.754
2000 322.225 54.422
2001 387.145 40.710
2002 440.564 30.452
2003 484.519 22.779
2004 520.687 17.039
2005 550.447 12.746
SUB 550.447 370.004
REM 585.489 13.355
TOT 585.489 383.359
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DAVIS, E.T. 1-60 P.W. % P.W., M$
HUNT PETROLEUM OIL GAS ------ --------
STILES RANCH ---------- ---------- 10.00 71.186
TX, WHEELER GROSS WELLS 0.000 1.000 15.00 61.654
MORROWAN GROSS CUM. MB & MMF 51.438 6878.987 20.00 54.555
60 A7 H/GN GROSS RES. MB & MMF 11.356 2271.221 25.00 49.082
SEQ: 525 GROSS ULT. MB & MMF 62.794 9150.208 30.00 44.743
INIT W.I 2.438 LIFE/YR 20.000 RATE-OF-RETURN, % 100.00
INIT N.I 1.801 OPC/W 2691 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.774 154.703 0.014 2.786 18.050 3.210 9.195 0.328 0.000 1.022 7.844
1997 1.656 331.215 0.030 5.965 18.050 3.210 19.685 0.787 0.000 2.190 16.708
1998 1.408 281.533 0.025 5.070 18.050 3.210 16.732 0.787 0.000 1.862 14.084
1999 1.197 239.303 0.022 4.310 18.050 3.210 14.223 0.787 0.000 1.582 11.853
2000 1.017 203.407 0.018 3.663 18.050 3.210 12.089 0.787 0.000 1.345 9.957
2001 0.864 172.896 0.016 3.114 18.050 3.210 10.276 0.787 0.000 1.144 8.346
2002 0.735 146.962 0.013 2.647 18.050 3.210 8.734 0.787 0.000 0.971 6.976
2003 0.625 124.918 0.011 2.250 18.050 3.210 7.424 0.787 0.000 0.826 5.811
2004 0.531 106.180 0.010 1.912 18.050 3.210 6.311 0.787 0.000 0.702 4.822
2005 0.451 90.253 0.008 1.625 18.049 3.210 5.364 0.787 0.000 0.597 3.980
SUB 9.258 1851.370 0.167 33.341 18.050 3.210 110.033 7.411 0.000 12.241 90.381
REM 2.101 419.854 0.038 7.561 18.050 3.210 24.953 8.329 0.000 2.776 13.846
TOT 11.359 2271.224 0.205 40.902 18.050 3.210 134.986 15.740 0.000 15.017 104.227
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.844 7.692
1997 24.552 15.337
1998 38.636 11.753
1999 50.489 8.992
2000 60.446 6.867
2001 68.792 5.233
2002 75.768 3.976
2003 81.579 3.011
2004 86.401 2.271
2005 90.381 1.705
SUB 90.381 66.837
REM 104.227 4.348
TOT 104.227 71.185
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
DAVIS, G.C. 1-61 P.W. % P.W., M$
PETRO HUNT OIL GAS ------ --------
STILES RANCH ---------- ---------- 10.00 90.257
TX, WHEELER GROSS WELLS 0.000 1.000 15.00 69.734
MORROWAN GROSS CUM. MB & MMF 20.500 6050.000 20.00 57.230
61 A7 H/GN GROSS RES. MB & MMF 9.757 4510.748 25.00 48.821
SEQ: 526 GROSS ULT. MB & MMF 30.257 10560.748 30.00 42.777
INIT W.I 2.912 LIFE/YR 64.833 RATE-OF-RETURN, % 100.00
INIT N.I 2.218 OPC/W 1413 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.296 98.939 0.007 2.194 18.490 2.910 6.507 0.206 0.000 0.725 5.576
1997 0.674 229.002 0.015 5.079 18.490 2.910 15.056 0.494 0.000 1.678 12.884
1998 0.627 217.552 0.014 4.825 18.490 2.910 14.298 0.494 0.000 1.594 12.210
1999 0.583 206.674 0.013 4.584 18.491 2.910 13.578 0.494 0.000 1.514 11.570
2000 0.542 196.340 0.012 4.355 18.489 2.910 12.894 0.494 0.000 1.438 10.962
2001 0.504 186.523 0.011 4.137 18.490 2.910 12.245 0.494 0.000 1.365 10.386
2002 0.469 177.197 0.010 3.930 18.489 2.910 11.629 0.494 0.000 1.297 9.838
2003 0.436 168.337 0.010 3.734 18.490 2.910 11.043 0.494 0.000 1.232 9.318
2004 0.405 159.920 0.009 3.547 18.490 2.910 10.488 0.494 0.000 1.170 8.824
2005 0.377 151.924 0.008 3.370 18.489 2.910 9.960 0.494 0.000 1.112 8.355
SUB 4.913 1792.408 0.109 39.754 18.490 2.910 117.698 4.652 0.000 13.125 99.923
REM 4.843 2718.337 0.107 60.290 18.489 2.910 177.431 27.370 0.000 19.817 130.250
TOT 9.756 4510.745 0.216 100.043 18.490 2.910 295.129 32.022 0.000 32.942 230.173
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.576 5.467
1997 18.460 11.815
1998 30.670 10.179
1999 42.240 8.769
2000 53.202 7.553
2001 63.588 6.505
2002 73.426 5.602
2003 82.744 4.823
2004 91.568 4.153
2005 99.923 3.574
SUB 99.923 68.440
REM 230.173 21.815
TOT 230.173 90.255
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FEENEY HILL GAS UNIT P.W. % P.W., M$
REDMAN SMACKOVER JT VENT OIL GAS ------ --------
LEATHERMAN CREEK (SMACKOVER) ---------- ---------- 10.00 5.777
TX, RAINS GROSS WELLS 0.000 1.000 15.00 5.104
SMACKOVER GROSS CUM. MB & MMF 0.624 1924.292 20.00 4.570
IKNEE GROSS RES. MB & MMF 0.000 846.584 25.00 4.139
SEQ: 527 GROSS ULT. MB & MMF 0.624 2770.876 30.00 3.786
ORRI INIT W.I 0.000 LIFE/YR 8.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.520 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 68.168 0.000 0.354 0.000 1.990 0.705 0.000 0.000 0.079 0.626
1997 0.000 149.525 0.000 0.777 0.000 1.990 1.547 0.000 0.000 0.173 1.374
1998 0.000 131.582 0.000 0.684 0.000 1.990 1.361 0.000 0.000 0.152 1.209
1999 0.000 115.792 0.000 0.602 0.000 1.990 1.198 0.000 0.000 0.134 1.064
2000 0.000 101.897 0.000 0.530 0.000 1.990 1.054 0.000 0.000 0.118 0.936
2001 0.000 89.670 0.000 0.466 0.000 1.990 0.928 0.000 0.000 0.104 0.824
2002 0.000 78.909 0.000 0.410 0.000 1.990 0.816 0.000 0.000 0.091 0.725
2003 0.000 69.440 0.000 0.361 0.000 1.990 0.718 0.000 0.000 0.081 0.638
2004 0.000 41.600 0.000 0.216 0.000 1.990 0.430 0.000 0.000 0.048 0.382
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 846.583 0.000 4.401 0.000 1.990 8.757 0.000 0.000 0.980 7.778
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 846.583 0.000 4.401 0.000 1.990 8.757 0.000 0.000 0.980 7.778
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.626 0.614
1997 2.000 1.260
1998 3.209 1.008
1999 4.273 0.807
2000 5.209 0.645
2001 6.033 0.516
2002 6.758 0.413
2003 7.396 0.330
2004 7.778 0.183
2005 7.778 0.000
SUB 7.778 5.776
REM 7.778 0.000
TOT 7.778 5.776
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FLETCHER, MAX J. 1 P.W. % P.W., M$
REDMAN SMACKOVER JT VENT OIL GAS ------ --------
BIRCH (SMACKOVER) ---------- ---------- 10.00 34.468
TX, WOOD GROSS WELLS 0.000 1.000 15.00 31.123
SMACKOVER GROSS CUM. MB & MMF 7.508 3343.652 20.00 28.439
PDILL GROSS RES. MB & MMF 0.000 3547.743 25.00 26.244
SEQ: 528 GROSS ULT. MB & MMF 7.508 6891.395 30.00 24.418
ORRI INIT W.I 0.000 LIFE/YR 10.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.847 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 424.076 0.000 3.592 0.000 1.660 5.963 0.000 0.000 0.668 5.295
1997 0.000 832.517 0.000 7.052 0.000 1.660 11.706 0.000 0.000 1.311 10.395
1998 0.000 624.388 0.000 5.289 0.000 1.660 8.779 0.000 0.000 0.983 7.796
1999 0.000 468.291 0.000 3.967 0.000 1.660 6.584 0.000 0.000 0.738 5.847
2000 0.000 351.218 0.000 2.975 0.000 1.660 4.938 0.000 0.000 0.553 4.385
2001 0.000 263.414 0.000 2.231 0.000 1.660 3.704 0.000 0.000 0.415 3.289
2002 0.000 197.560 0.000 1.673 0.000 1.660 2.778 0.000 0.000 0.311 2.467
2003 0.000 148.170 0.000 1.255 0.000 1.660 2.083 0.000 0.000 0.233 1.850
2004 0.000 111.128 0.000 0.941 0.000 1.660 1.563 0.000 0.000 0.175 1.388
2005 0.000 83.346 0.000 0.706 0.000 1.660 1.172 0.000 0.000 0.131 1.041
SUB 0.000 3504.108 0.000 29.681 0.000 1.660 49.270 0.000 0.000 5.518 43.753
REM 0.000 43.636 0.000 0.370 0.000 1.660 0.614 0.000 0.000 0.069 0.545
TOT 0.000 3547.744 0.000 30.050 0.000 1.660 49.884 0.000 0.000 5.587 44.298
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.295 5.193
1997 15.690 9.550
1998 23.486 6.512
1999 29.333 4.440
2000 33.718 3.027
2001 37.007 2.064
2002 39.474 1.407
2003 41.324 0.959
2004 42.712 0.654
2005 43.753 0.446
SUB 43.753 34.252
REM 44.298 0.215
TOT 44.298 34.467
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FLETCHER, MAX J. 2 P.W. % P.W., M$
REDMAN SMACKOVER JT VENT OIL GAS ------ --------
BIRCH (SMACKOVER) ---------- ---------- 10.00 34.377
TX, WOOD GROSS WELLS 0.000 1.000 15.00 29.734
SMACKOVER GROSS CUM. MB & MMF 4.445 2356.268 20.00 26.256
PDILL GROSS RES. MB & MMF 0.000 2957.294 25.00 23.570
SEQ: 529 GROSS ULT. MB & MMF 4.445 5313.562 30.00 21.441
ORRI INIT W.I 0.000 LIFE/YR 13.583 RATE-OF-RETURN, % 100.00
INIT N.I 0.847 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 217.551 0.000 1.843 0.000 2.250 4.146 0.000 0.000 0.464 3.682
1997 0.000 465.771 0.000 3.945 0.000 2.250 8.877 0.000 0.000 0.994 7.883
1998 0.000 395.905 0.000 3.353 0.000 2.250 7.545 0.000 0.000 0.845 6.700
1999 0.000 336.519 0.000 2.850 0.000 2.250 6.413 0.000 0.000 0.718 5.695
2000 0.000 286.042 0.000 2.423 0.000 2.250 5.451 0.000 0.000 0.611 4.841
2001 0.000 243.135 0.000 2.059 0.000 2.250 4.634 0.000 0.000 0.519 4.115
2002 0.000 206.665 0.000 1.751 0.000 2.250 3.939 0.000 0.000 0.441 3.498
2003 0.000 175.665 0.000 1.488 0.000 2.250 3.348 0.000 0.000 0.375 2.973
2004 0.000 149.315 0.000 1.265 0.000 2.250 2.846 0.000 0.000 0.318 2.527
2005 0.000 126.918 0.000 1.075 0.000 2.250 2.419 0.000 0.000 0.270 2.148
SUB 0.000 2603.486 0.000 22.052 0.000 2.250 49.618 0.000 0.000 5.555 44.062
REM 0.000 353.807 0.000 2.997 0.000 2.250 6.743 0.000 0.000 0.755 5.988
TOT 0.000 2957.293 0.000 25.049 0.000 2.250 56.361 0.000 0.000 6.310 50.050
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.682 3.610
1997 11.565 7.235
1998 18.265 5.591
1999 23.960 4.320
2000 28.801 3.338
2001 32.916 2.580
2002 36.414 1.993
2003 39.387 1.540
2004 41.914 1.190
2005 44.062 0.920
SUB 44.062 32.317
REM 50.050 2.059
TOT 50.050 34.376
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FLETCHER, MAX J. 3 P.W. % P.W., M$
REDMAN SMACKOVER JT VENT OIL GAS ------ --------
BIRCH (SMACKOVER) ---------- ---------- 10.00 47.241
TX, WOOD GROSS WELLS 0.000 1.000 15.00 42.810
SMACKOVER GROSS CUM. MB & MMF 1.015 1816.375 20.00 39.220
PDILL GROSS RES. MB & MMF 0.000 4803.362 25.00 36.260
SEQ: 530 GROSS ULT. MB & MMF 1.015 6619.737 30.00 33.783
ORRI INIT W.I 0.000 LIFE/YR 8.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.847 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 588.994 0.000 4.989 0.000 1.660 8.282 0.000 0.000 0.927 7.354
1997 0.000 1156.274 0.000 9.794 0.000 1.660 16.258 0.000 0.000 1.821 14.437
1998 0.000 867.205 0.000 7.345 0.000 1.660 12.194 0.000 0.000 1.366 10.828
1999 0.000 650.404 0.000 5.509 0.000 1.660 9.145 0.000 0.000 1.024 8.121
2000 0.000 487.803 0.000 4.132 0.000 1.660 6.859 0.000 0.000 0.768 6.091
2001 0.000 365.852 0.000 3.099 0.000 1.660 5.144 0.000 0.000 0.576 4.568
2002 0.000 274.389 0.000 2.324 0.000 1.660 3.858 0.000 0.000 0.432 3.426
2003 0.000 205.792 0.000 1.743 0.000 1.660 2.894 0.000 0.000 0.324 2.569
2004 0.000 154.344 0.000 1.307 0.000 1.660 2.170 0.000 0.000 0.243 1.927
2005 0.000 52.305 0.000 0.443 0.000 1.660 0.735 0.000 0.000 0.082 0.653
SUB 0.000 4803.362 0.000 40.686 0.000 1.660 67.539 0.000 0.000 7.563 59.974
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 4803.362 0.000 40.686 0.000 1.660 67.539 0.000 0.000 7.563 59.974
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.354 7.213
1997 21.791 13.264
1998 32.619 9.044
1999 40.740 6.166
2000 46.831 4.204
2001 51.399 2.867
2002 54.825 1.954
2003 57.394 1.333
2004 59.321 0.909
2005 59.974 0.287
SUB 59.974 47.241
REM 59.974 0.000
TOT 59.974 47.241
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
FUTRELL P.W. % P.W., M$
BIG RUN PRODUCTION CO OIL GAS ------ --------
HALLSVILLE NE (PETTIT) ---------- ---------- 10.00 11.422
TX, HARRISON GROSS WELLS 0.000 1.000 15.00 10.355
PETTIT GROSS CUM. MB & MMF 4.601 207.411 20.00 9.467
SCGAR GROSS RES. MB & MMF 1.096 78.319 25.00 8.720
SEQ: 531 GROSS ULT. MB & MMF 5.697 285.730 30.00 8.085
(WI ESTIMATED) INIT W.I 14.650 LIFE/YR 5.500 RATE-OF-RETURN, % 100.00
INIT N.I 11.713 OPC/W 1000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.097 6.911 0.011 0.809 19.739 2.660 2.377 0.732 0.000 0.260 1.384
1997 0.222 15.876 0.026 1.859 19.740 2.660 5.460 1.758 0.000 0.598 3.105
1998 0.209 14.924 0.024 1.748 19.740 2.660 5.133 1.758 0.000 0.561 2.813
1999 0.196 14.028 0.023 1.643 19.740 2.660 4.825 1.758 0.000 0.528 2.539
2000 0.185 13.186 0.022 1.544 19.740 2.660 4.535 1.758 0.000 0.496 2.281
2001 0.174 12.395 0.020 1.452 19.740 2.660 4.263 1.758 0.000 0.466 2.039
2002 0.014 0.999 0.002 0.117 19.736 2.660 0.343 0.146 0.000 0.038 0.159
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.097 78.319 0.128 9.173 19.740 2.660 26.936 9.668 0.000 2.947 14.320
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.097 78.319 0.128 9.173 19.740 2.660 26.936 9.668 0.000 2.947 14.320
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.384 1.357
1997 4.489 2.848
1998 7.302 2.346
1999 9.841 1.925
2000 12.122 1.572
2001 14.161 1.278
2002 14.320 0.095
2003 14.320 0.000
2004 14.320 0.000
2005 14.320 0.000
SUB 14.320 11.421
REM 14.320 0.000
TOT 14.320 11.421
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GAULT, SARAH 1-5 P.W. % P.W., M$
LATEX OIL GAS ------ --------
PARSLEY ---------- ---------- 10.00 498.597
TX, MIDLAND GROSS WELLS 1.000 0.000 15.00 399.900
DEVONIAN GROSS CUM. MB & MMF 115.803 1399.997 20.00 334.912
5 38 T&P GROSS RES. MB & MMF 92.398 1293.573 25.00 289.252
SEQ: 224 GROSS ULT. MB & MMF 208.201 2693.570 30.00 255.538
INIT W.I 50.000 LIFE/YR 30.417 RATE-OF-RETURN, % 100.00
INIT N.I 36.666 OPC/W 3758 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.473 34.629 0.907 12.697 18.410 2.560 49.201 9.395 0.000 5.046
1997 5.725 80.151 2.099 29.388 18.410 2.560 113.879 22.548 0.000 11.678
1998 5.439 76.143 1.994 27.919 18.410 2.560 108.185 22.548 0.000 11.094
1999 5.167 72.336 1.894 26.523 18.410 2.560 102.775 22.548 0.000 10.540
2000 4.909 68.719 1.800 25.197 18.410 2.560 97.637 22.548 0.000 10.013
2001 4.663 65.283 1.710 23.937 18.410 2.560 92.755 22.548 0.000 9.512
2002 4.430 62.019 1.624 22.740 18.410 2.560 88.117 22.548 0.000 9.037
2003 4.208 58.918 1.543 21.603 18.410 2.560 83.711 22.548 0.000 8.585
2004 3.998 55.972 1.466 20.523 18.410 2.560 79.526 22.548 0.000 8.156
2005 3.798 53.174 1.393 19.497 18.410 2.560 75.549 22.548 0.000 7.748
SUB 44.810 627.344 16.430 230.022 18.410 2.560 891.335 212.327 0.000 91.409
REM 47.588 666.228 17.449 244.280 18.410 2.560 946.582 473.508 0.000 97.077
TOT 92.398 1293.572 33.879 474.301 18.410 2.560 1837.917 685.835 0.000 188.486
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 34.760 34.760 34.082
1997 79.652 114.412 73.054
1998 74.542 188.954 62.152
1999 69.688 258.642 52.823
2000 65.076 323.718 44.843
2001 60.695 384.413 38.022
2002 56.532 440.945 32.196
2003 52.578 493.523 27.222
2004 48.822 542.345 22.980
2005 45.254 587.599 19.364
SUB 587.599 587.599 406.738
REM 376.000 963.599 91.859
TOT 963.599 963.599 498.597
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAULT, SARAH 1-5 PDBP P.W. % P.W., M$
LATEX OIL GAS ------ --------
PARSLEY ---------- ---------- 10.00 0.468
TX, MIDLAND GROSS WELLS 1.000 0.000 15.00 0.037
SPRAYBERRY GROSS CUM. MB & MMF 0.000 0.000 20.00 -0.009
GROSS RES. MB & MMF 29.982 59.963 25.00 -0.007
SEQ: 315 GROSS ULT. MB & MMF 29.982 59.963 30.00 -0.003
INIT W.I 50.000 LIFE/YR 40.250 RATE-OF-RETURN, % 19.04
INIT N.I 36.666 OPC/W 2500 UNDISC NET/INVEST 1.41
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 29.980 59.964 10.993 21.986 18.410 2.560 258.665 147.500 62.500 23.337 25.331
TOT 29.980 59.964 10.993 21.986 18.410 2.560 258.665 147.500 62.500 23.337 25.331
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 25.331 0.468
TOT 25.331 0.468
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
GAULT, SARAH 3-5 P.W. % P.W., M$
LATEX PETROLEUM CORP OIL GAS ------ --------
PARSLEY (ATOKA) ---------- ---------- 10.00 29.423
TX, MIDLAND GROSS WELLS 1.000 0.000 15.00 26.649
ATOKA GROSS CUM. MB & MMF 45.301 0.094 20.00 24.386
SC 5 38 T2S IOP GROSS RES. MB & MMF 10.375 0.000 25.00 22.511
SEQ: 404 GROSS ULT. MB & MMF 55.676 0.094 30.00 20.938
INIT W.I 50.000 LIFE/YR 9.333 RATE-OF-RETURN, % 100.00
INIT N.I 36.666 OPC/W 500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.870 0.000 0.319 0.000 18.740 0.000 5.979
1997 1.863 0.000 0.683 0.000 18.740 0.000 12.802
1998 1.584 0.000 0.581 0.000 18.740 0.000 10.881
1999 1.346 0.000 0.494 0.000 18.740 0.000 9.249
2000 1.144 0.000 0.420 0.000 18.740 0.000 7.862
2001 0.973 0.000 0.357 0.000 18.740 0.000 6.683
2002 0.827 0.000 0.303 0.000 18.740 0.000 5.680
2003 0.703 0.000 0.258 0.000 18.740 0.000 4.828
2004 0.597 0.000 0.219 0.000 18.740 0.000 4.104
2005 0.468 0.000 0.172 0.000 18.740 0.000 3.219
SUB 10.375 0.000 3.804 0.000 18.740 0.000 71.287
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 10.375 0.000 3.804 0.000 18.740 0.000 71.287
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 1.250 0.000 0.503 4.226 4.226 4.144
1997 3.000 0.000 1.078 8.724 12.950 8.011
1998 3.000 0.000 0.916 6.966 19.916 5.815
1999 3.000 0.000 0.778 5.471 25.387 4.153
2000 3.000 0.000 0.662 4.200 29.587 2.899
2001 3.000 0.000 0.562 3.120 32.707 1.958
2002 3.000 0.000 0.478 2.202 34.909 1.257
2003 3.000 0.000 0.406 1.422 36.331 0.739
2004 3.000 0.000 0.346 0.759 37.090 0.359
2005 2.750 0.000 0.271 0.198 37.288 0.086
SUB 28.000 0.000 6.000 37.288 37.288 29.421
REM 0.000 0.000 0.000 0.000 37.288 0.000
TOT 28.000 0.000 6.000 37.288 37.288 29.421
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
B2-PROVED BEHIND-PIPE
GAULT, SARAH 3-5 PDBP P.W. % P.W., M$
LATEX OIL GAS ------ --------
PARSLEY ---------- ---------- 10.00 8.168
TX, MIDLAND GROSS WELLS 1.000 0.000 15.00 2.440
SPRAYBERRY GROSS CUM. MB & MMF 0.000 0.000 20.00 -2.076
GROSS RES. MB & MMF 29.982 59.963 25.00 -5.690
SEQ: 316 GROSS ULT. MB & MMF 29.982 59.963 30.00 -8.622
INIT W.I 50.000 LIFE/YR 10.250 RATE-OF-RETURN, % 17.70
INIT N.I 36.666 OPC/W 2500 UNDISC NET/INVEST 1.41
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 5.674 11.348 2.080 4.161 18.410 2.560 48.954 15.000 62.500 4.417 -32.962
1998 4.173 8.347 1.530 3.060 18.410 2.560 36.005 15.000 0.000 3.248 17.757
1999 3.476 6.953 1.275 2.549 18.410 2.560 29.992 15.000 0.000 2.706 12.286
2000 3.049 6.098 1.118 2.236 18.410 2.560 26.303 15.000 0.000 2.373 8.930
2001 2.751 5.503 1.009 2.018 18.410 2.560 23.738 15.000 0.000 2.142 6.597
2002 2.529 5.058 0.927 1.855 18.410 2.560 21.819 15.000 0.000 1.968 4.851
2003 2.354 4.709 0.863 1.727 18.410 2.560 20.312 15.000 0.000 1.833 3.480
2004 2.212 4.425 0.811 1.622 18.410 2.560 19.088 15.000 0.000 1.722 2.366
2005 2.094 4.188 0.768 1.536 18.410 2.560 18.067 15.000 0.000 1.630 1.437
SUB 28.312 56.629 10.382 20.763 18.410 2.560 244.278 135.000 62.500 22.039 24.742
REM 1.668 3.335 0.611 1.223 18.410 2.560 14.387 12.500 0.000 1.298 0.589
TOT 29.980 59.964 10.993 21.986 18.410 2.560 258.665 147.500 62.500 23.337 25.331
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)---
<S> <C> <C>
1996 0.000 0.000
1997 -32.962 -32.854
1998 -15.205 14.845
1999 -2.919 9.332
2000 6.011 6.165
2001 12.608 4.140
2002 17.459 2.768
2003 20.939 1.806
2004 23.305 1.117
2005 24.742 0.617
SUB 24.742 7.936
REM 25.331 0.232
TOT 25.331 8.168
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HARRISON -C- 1-C P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (RODESSA) ---------- ---------- 10.00 0.011
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.010
RODESSA GROSS CUM. MB & MMF 53.632 8541.708 20.00 0.008
GROSS RES. MB & MMF 0.000 140.412 25.00 0.008
SEQ: 648 GROSS ULT. MB & MMF 53.632 8682.120 30.00 0.007
ORRI INIT W.I 0.000 LIFE/YR 9.167 RATE-OF-RETURN, % 100.00
INIT N.I 0.006 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING
OIL GAS OIL GAS PRICE PRICE INCOME
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 7.915 0.000 0.001 0.000 2.051 0.001
1997 0.000 18.320 0.000 0.001 0.000 2.050 0.002
1998 0.000 17.404 0.000 0.001 0.000 2.051 0.002
1999 0.000 16.534 0.000 0.001 0.000 2.051 0.002
2000 0.000 15.707 0.000 0.001 0.000 2.051 0.002
2001 0.000 14.922 0.000 0.001 0.000 2.050 0.002
2002 0.000 14.176 0.000 0.001 0.000 2.051 0.002
2003 0.000 13.467 0.000 0.001 0.000 2.049 0.002
2004 0.000 12.794 0.000 0.001 0.000 2.051 0.002
2005 0.000 9.174 0.000 0.001 0.000 2.049 0.001
SUB 0.000 140.413 0.000 0.009 0.000 2.050 0.018
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 140.413 0.000 0.009 0.000 2.050 0.018
<CAPTION>
OPERATING FUTURE SEV & ADV FUTURE NET CUM. NET PRESENT WTH
EXPENSE EXPENSE TAX REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.001 0.001 0.001
1997 0.000 0.000 0.000 0.002 0.003 0.002
1998 0.000 0.000 0.000 0.002 0.005 0.002
1999 0.000 0.000 0.000 0.002 0.007 0.001
2000 0.000 0.000 0.000 0.002 0.009 0.001
2001 0.000 0.000 0.000 0.002 0.011 0.001
2002 0.000 0.000 0.000 0.002 0.013 0.001
2003 0.000 0.000 0.000 0.002 0.015 0.001
2004 0.000 0.000 0.000 0.001 0.016 0.001
2005 0.000 0.000 0.000 0.001 0.017 0.000
SUB 0.000 0.000 0.000 0.017 0.017 0.011
REM 0.000 0.000 0.000 0.000 0.017 0.000
TOT 0.000 0.000 0.000 0.017 0.017 0.011
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HARRISON -C- 1-T P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (HENDERSON) ---------- ---------- 10.00 0.017
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.014
HENDERSON GROSS CUM. MB & MMF 41.532 5998.337 20.00 0.012
GROSS RES. MB & MMF 0.000 234.786 25.00 0.010
SEQ: 647 GROSS ULT. MB & MMF 41.532 6233.123 30.00 0.009
ORRI INIT W.I 0.000 LIFE/YR 13.583 RATE-OF-RETURN, % 100.00
INIT N.I 0.006 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.894 0.000 0.001 0.000 2.050 0.001 0.000 0.000 0.000 0.001
1997 0.000 22.900 0.000 0.001 0.000 2.050 0.003 0.000 0.000 0.000 0.003
1998 0.000 21.755 0.000 0.001 0.000 2.049 0.003 0.000 0.000 0.000 0.003
1999 0.000 20.667 0.000 0.001 0.000 2.050 0.003 0.000 0.000 0.000 0.002
2000 0.000 19.634 0.000 0.001 0.000 2.049 0.003 0.000 0.000 0.000 0.002
2001 0.000 18.652 0.000 0.001 0.000 2.051 0.002 0.000 0.000 0.000 0.002
2002 0.000 17.720 0.000 0.001 0.000 2.049 0.002 0.000 0.000 0.000 0.002
2003 0.000 16.834 0.000 0.001 0.000 2.049 0.002 0.000 0.000 0.000 0.002
2004 0.000 15.992 0.000 0.001 0.000 2.050 0.002 0.000 0.000 0.000 0.002
2005 0.000 15.192 0.000 0.001 0.000 2.050 0.002 0.000 0.000 0.000 0.002
SUB 0.000 179.240 0.000 0.012 0.000 2.050 0.023 0.000 0.000 0.000 0.021
REM 0.000 55.545 0.000 0.004 0.000 2.051 0.008 0.000 0.000 0.000 0.007
TOT 0.000 234.785 0.000 0.015 0.000 2.050 0.031 0.000 0.000 0.000 0.028
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.001 0.001
1997 0.004 0.002
1998 0.007 0.002
1999 0.009 0.002
2000 0.011 0.002
2001 0.013 0.001
2002 0.015 0.001
2003 0.017 0.001
2004 0.019 0.001
2005 0.021 0.001
SUB 0.021 0.014
REM 0.028 0.002
TOT 0.028 0.016
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HARRISON, P.D. E G.U. P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS WEST (TRAVIS PE ---------- ---------- 10.00 0.188
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.177
TRAVIS PEAK GROSS CUM. MB & MMF 24.737 1617.118 20.00 0.167
WROBI GROSS RES. MB & MMF 3.665 305.393 25.00 0.159
SEQ: 579 GROSS ULT. MB & MMF 28.402 1922.511 30.00 0.151
ORRI INIT W.I 0.000 LIFE/YR 5.167 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.757 63.052 0.000 0.019 20.224 2.400 0.050 0.000 0.000 0.006 0.045
1997 1.276 106.331 0.000 0.032 20.250 2.400 0.085 0.000 0.000 0.009 0.075
1998 0.766 63.799 0.000 0.019 20.199 2.400 0.051 0.000 0.000 0.006 0.045
1999 0.459 38.279 0.000 0.012 20.283 2.400 0.030 0.000 0.000 0.003 0.027
2000 0.276 22.967 0.000 0.007 20.241 2.400 0.018 0.000 0.000 0.002 0.016
2001 0.132 10.965 0.000 0.003 20.050 2.400 0.009 0.000 0.000 0.001 0.008
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 3.666 305.393 0.001 0.092 20.230 2.400 0.243 0.000 0.000 0.027 0.216
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 3.666 305.393 0.001 0.092 20.230 2.400 0.243 0.000 0.000 0.027 0.216
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.045 0.044
1997 0.120 0.069
1998 0.165 0.038
1999 0.192 0.021
2000 0.208 0.011
2001 0.216 0.005
2002 0.216 0.000
2003 0.216 0.000
2004 0.216 0.000
2005 0.216 0.000
SUB 0.216 0.188
REM 0.216 0.000
TOT 0.216 0.188
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HUDDLESTON, C. L. P.W. % P.W., M$
REDMAN SMACKOVER JT VENT OIL GAS ------ --------
GINGER SE (SMACKOVER) ---------- ---------- 10.00 33.034
TX, RAINS GROSS WELLS 0.000 1.000 15.00 27.820
SMACKOVER GROSS CUM. MB & MMF 0.199 14632.499 20.00 24.105
JFORS GROSS RES. MB & MMF 0.000 6342.729 25.00 21.342
SEQ: 578 GROSS ULT. MB & MMF 0.199 20975.228 30.00 19.214
ORRI INIT W.I 0.000 LIFE/YR 18.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.427 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 365.188 0.000 1.559 0.000 2.200 3.429 0.000 0.000 0.384 3.045
1997 0.000 801.027 0.000 3.419 0.000 2.200 7.521 0.000 0.000 0.842 6.679
1998 0.000 704.904 0.000 3.008 0.000 2.200 6.619 0.000 0.000 0.741 5.877
1999 0.000 620.315 0.000 2.647 0.000 2.200 5.824 0.000 0.000 0.653 5.172
2000 0.000 545.878 0.000 2.330 0.000 2.200 5.126 0.000 0.000 0.574 4.551
2001 0.000 480.372 0.000 2.050 0.000 2.200 4.510 0.000 0.000 0.505 4.005
2002 0.000 422.728 0.000 1.804 0.000 2.200 3.969 0.000 0.000 0.445 3.525
2003 0.000 372.000 0.000 1.588 0.000 2.200 3.493 0.000 0.000 0.391 3.102
2004 0.000 327.360 0.000 1.397 0.000 2.200 3.074 0.000 0.000 0.345 2.729
2005 0.000 288.077 0.000 1.229 0.000 2.200 2.705 0.000 0.000 0.303 2.402
SUB 0.000 4927.849 0.000 21.032 0.000 2.200 46.270 0.000 0.000 5.183 41.087
REM 0.000 1414.877 0.000 6.039 0.000 2.200 13.284 0.000 0.000 1.489 11.797
TOT 0.000 6342.726 0.000 27.070 0.000 2.200 59.554 0.000 0.000 6.672 52.884
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.045 2.986
1997 9.724 6.129
1998 15.601 4.903
1999 20.773 3.922
2000 25.324 3.138
2001 29.329 2.510
2002 32.854 2.008
2003 35.956 1.607
2004 38.685 1.285
2005 41.087 1.028
SUB 41.087 29.516
REM 52.884 3.519
TOT 52.884 33.035
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HUDDLESTON, C.L. P.W. % P.W., M$
REDMAN SMACKOVER JT VENT OIL GAS ------ --------
GINGER SE (SMACKOVER) ---------- ---------- 10.00 13.380
TX, RAINS GROSS WELLS 0.000 1.000 15.00 12.027
SMACKOVER GROSS CUM. MB & MMF 0.000 3957.197 20.00 10.937
JFORS GROSS RES. MB & MMF 0.000 2073.870 25.00 10.043
SEQ: 580 GROSS ULT. MB & MMF 0.000 6031.067 30.00 9.299
ORRI INIT W.I 0.000 LIFE/YR 8.167 RATE-OF-RETURN, % 100.00
INIT N.I 0.427 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 219.632 0.000 0.937 0.000 2.200 2.062 0.000 0.000 0.231 1.831
1997 0.000 450.822 0.000 1.924 0.000 2.200 4.233 0.000 0.000 0.474 3.759
1998 0.000 360.658 0.000 1.539 0.000 2.200 3.386 0.000 0.000 0.379 3.007
1999 0.000 288.526 0.000 1.231 0.000 2.200 2.709 0.000 0.000 0.303 2.406
2000 0.000 230.821 0.000 0.985 0.000 2.200 2.167 0.000 0.000 0.243 1.925
2001 0.000 184.657 0.000 0.788 0.000 2.200 1.734 0.000 0.000 0.194 1.540
2002 0.000 147.726 0.000 0.630 0.000 2.200 1.387 0.000 0.000 0.155 1.232
2003 0.000 118.180 0.000 0.504 0.000 2.200 1.110 0.000 0.000 0.124 0.985
2004 0.000 72.848 0.000 0.311 0.000 2.200 0.684 0.000 0.000 0.076 0.607
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 2073.870 0.000 8.851 0.000 2.200 19.472 0.000 0.000 2.179 17.292
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 2073.870 0.000 8.851 0.000 2.200 19.472 0.000 0.000 2.179 17.292
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.831 1.796
1997 5.590 3.452
1998 8.597 2.510
1999 11.003 1.826
2000 12.928 1.328
2001 14.468 0.966
2002 15.700 0.702
2003 16.685 0.511
2004 17.292 0.289
2005 17.292 0.000
SUB 17.292 13.380
REM 17.292 0.000
TOT 17.292 13.380
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
HURT P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
PEARSALL ---------- ---------- 10.00 278.399
TX, FRIO GROSS WELLS 1.000 0.000 15.00 257.971
AUSTIN CHALK GROSS CUM. MB & MMF 226.825 302.156 20.00 240.748
GROSS RES. MB & MMF 49.980 86.222 25.00 226.060
SEQ: 213 GROSS ULT. MB & MMF 276.805 388.378 30.00 213.403
INIT W.I 75.000 LIFE/YR 7.250 RATE-OF-RETURN, % 100.00
INIT N.I 52.706 OPC/W 3249 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 6.393 9.549 3.370 5.033 19.540 1.820 75.005 12.184 0.000 6.568 56.254
1997 11.483 19.601 6.053 10.331 19.540 1.820 137.069 29.241 0.000 12.059 95.768
1998 8.820 15.681 4.649 8.265 19.540 1.820 105.882 29.241 0.000 9.330 67.311
1999 7.056 12.545 3.719 6.612 19.540 1.820 84.705 29.241 0.000 7.463 48.001
2000 5.645 10.036 2.975 5.289 19.540 1.820 67.764 29.241 0.000 5.971 32.552
2001 4.516 8.029 2.380 4.232 19.540 1.820 54.211 29.241 0.000 4.777 20.194
2002 3.613 6.423 1.904 3.385 19.540 1.820 43.369 29.241 0.000 3.822 10.307
2003 2.452 4.360 1.292 2.298 19.540 1.820 29.437 24.368 0.000 2.593 2.475
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 49.978 86.224 26.343 45.444 19.540 1.820 597.442 211.998 0.000 52.583 332.862
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 49.978 86.224 26.343 45.444 19.540 1.820 597.442 211.998 0.000 52.583 332.862
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 56.254 55.188
1997 152.022 88.101
1998 219.333 56.235
1999 267.334 36.468
2000 299.886 22.494
2001 320.080 12.698
2002 330.387 5.906
2003 332.862 1.308
2004 332.862 0.000
2005 332.862 0.000
SUB 332.862 278.398
REM 332.862 0.000
TOT 332.862 278.398
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
JOHNSON GBSA UNIT P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
JOHNSON ---------- ---------- 10.00 501.718
TX, ECTOR GROSS WELLS 1.000 0.000 15.00 436.190
GROSS CUM. MB & MMF 10347.721 2408.139 20.00 386.193
GROSS RES. MB & MMF 2552.873 1302.239 25.00 347.055
SEQ: 72 GROSS ULT. MB & MMF 12900.594 3710.378 30.00 315.727
INIT W.I 3.010 LIFE/YR 13.750 RATE-OF-RETURN, % 100.00
INIT N.I 3.187 OPC/W 170650 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 127.768 54.416 4.072 1.734 19.740 2.450 84.635 25.679 0.000 7.241 51.714
1997 289.125 125.951 9.215 4.014 19.740 2.450 191.739 61.631 0.000 16.410 113.698
1998 265.995 119.653 8.478 3.814 19.740 2.450 176.695 61.631 0.000 15.131 99.934
1999 244.716 113.671 7.800 3.623 19.740 2.450 162.840 61.631 0.000 13.952 87.257
2000 225.138 107.987 7.176 3.442 19.740 2.450 150.079 61.631 0.000 12.865 75.583
2001 207.127 102.588 6.602 3.270 19.740 2.450 138.326 61.631 0.000 11.864 64.830
2002 190.557 97.458 6.073 3.106 19.740 2.450 127.500 61.631 0.000 10.943 54.927
2003 175.313 92.586 5.588 2.951 19.740 2.450 117.528 61.631 0.000 10.092 45.805
2004 161.288 87.956 5.141 2.803 19.740 2.450 108.343 61.631 0.000 9.309 37.403
2005 148.385 83.558 4.729 2.663 19.740 2.450 99.881 61.631 0.000 8.588 29.663
SUB 2035.412 985.824 64.873 31.420 19.740 2.450 1357.566 580.358 0.000 116.395 660.814
REM 517.463 316.415 16.493 10.085 19.740 2.450 350.272 267.068 0.000 30.167 53.038
TOT 2552.875 1302.239 81.365 41.505 19.740 2.450 1707.838 847.426 0.000 146.562 713.852
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 51.714 50.709
1997 165.412 104.329
1998 265.346 83.366
1999 352.603 66.178
2000 428.186 52.116
2001 493.016 40.642
2002 547.943 31.306
2003 593.748 23.737
2004 631.151 17.624
2005 660.814 12.710
SUB 660.814 482.717
REM 713.852 18.999
TOT 713.852 501.716
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
JONES, JOHN P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
KNOTT SW ---------- ---------- 10.00 70.947
TX, HOWARD GROSS WELLS 1.000 0.000 15.00 67.395
FUSSELMAN GROSS CUM. MB & MMF 449.351 71.242 20.00 64.253
GROSS RES. MB & MMF 16.078 1.791 25.00 61.458
SEQ: 214 GROSS ULT. MB & MMF 465.429 73.033 30.00 58.954
INIT W.I 94.000 LIFE/YR 4.083 RATE-OF-RETURN, % 100.00
INIT N.I 67.359 OPC/W 2605 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.387 0.242 1.608 0.163 20.480 2.880 33.402 12.916 0.000 2.824 17.662
1997 4.900 0.518 3.301 0.349 20.480 2.880 68.603 30.997 0.000 5.802 31.804
1998 3.920 0.440 2.641 0.296 20.480 2.880 54.933 30.997 0.000 4.647 19.289
1999 3.136 0.374 2.112 0.252 20.480 2.880 43.989 30.997 0.000 3.723 9.269
2000 1.734 0.218 1.168 0.147 20.480 2.880 24.343 20.665 0.000 2.060 1.617
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 16.077 1.792 10.830 1.206 20.480 2.880 225.270 126.572 0.000 19.056 79.641
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 16.077 1.792 10.830 1.206 20.480 2.880 225.270 126.572 0.000 19.056 79.641
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 17.662 17.325
1997 49.466 29.255
1998 68.755 16.148
1999 78.024 7.076
2000 79.641 1.144
2001 79.641 0.000
2002 79.641 0.000
2003 79.641 0.000
2004 79.641 0.000
2005 79.641 0.000
SUB 79.641 70.948
REM 79.641 0.000
TOT 79.641 70.948
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S>
<C> A-PROVED DEVE PRODUCING
KILLINGSWORTH B-3 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS WEST (TRAVIS PE ---------- ---------- 10.00 0.200
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.180
TRAVIS PEAK GROSS CUM. MB & MMF 21.231 1484.350 20.00 0.164
DSANC GROSS RES. MB & MMF 3.775 377.510 25.00 0.151
SEQ: 649 GROSS ULT. MB & MMF 25.006 1861.860 30.00 0.140
ORRI INIT W.I 0.000 LIFE/YR 7.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.406 40.584 0.000 0.012 20.451 2.330 0.031 0.000 0.000 0.003 0.028
1997 0.833 83.304 0.000 0.025 20.406 2.330 0.064 0.000 0.000 0.007 0.057
1998 0.666 66.643 0.000 0.020 20.388 2.330 0.051 0.000 0.000 0.006 0.045
1999 0.533 53.315 0.000 0.016 20.360 2.330 0.041 0.000 0.000 0.005 0.036
2000 0.427 42.652 0.000 0.013 20.484 2.330 0.033 0.000 0.000 0.003 0.029
2001 0.341 34.121 0.000 0.010 20.369 2.330 0.026 0.000 0.000 0.003 0.023
2002 0.273 27.297 0.000 0.008 20.463 2.330 0.021 0.000 0.000 0.003 0.019
2003 0.218 21.838 0.000 0.007 20.348 2.330 0.017 0.000 0.000 0.002 0.015
2004 0.078 7.755 0.000 0.002 20.739 2.330 0.006 0.000 0.000 0.000 0.005
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 3.775 377.509 0.001 0.114 20.414 2.330 0.290 0.000 0.000 0.032 0.257
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 3.775 377.509 0.001 0.114 20.414 2.330 0.290 0.000 0.000 0.032 0.257
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.028 0.027
1997 0.085 0.052
1998 0.130 0.038
1999 0.166 0.027
2000 0.195 0.020
2001 0.218 0.015
2002 0.237 0.011
2003 0.252 0.008
2004 0.257 0.003
2005 0.257 0.000
SUB 0.257 0.201
REM 0.257 0.000
TOT 0.257 0.201
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> A-PROVED DEVE PRODUCING
KILLINGSWORTH B-4 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS WEST (TRAVIS PE ---------- ---------- 10.00 0.006
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.005
TRAVIS PEAK GROSS CUM. MB & MMF 17.628 644.983 20.00 0.005
WROBI GROSS RES. MB & MMF 3.018 215.556 25.00 0.004
SEQ: 650 GROSS ULT. MB & MMF 20.646 860.539 30.00 0.004
ORRI INIT W.I 0.000 LIFE/YR 7.250 RATE-OF-RETURN, % 100.00
INIT N.I 0.001 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.334 23.873 0.000 0.000 20.400 2.329 0.001 0.000 0.000 0.000 0.001
1997 0.686 49.002 0.000 0.001 20.900 2.330 0.002 0.000 0.000 0.000 0.002
1998 0.549 39.202 0.000 0.001 20.875 2.330 0.002 0.000 0.000 0.000 0.001
1999 0.439 31.362 0.000 0.000 19.143 2.332 0.001 0.000 0.000 0.000 0.001
2000 0.351 25.089 0.000 0.000 21.400 2.329 0.001 0.000 0.000 0.000 0.001
2001 0.281 20.071 0.000 0.000 21.250 2.331 0.001 0.000 0.000 0.000 0.001
2002 0.225 16.057 0.000 0.000 22.667 2.331 0.001 0.000 0.000 0.000 0.001
2003 0.153 10.899 0.000 0.000 23.000 2.333 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 3.018 215.555 0.000 0.003 20.864 2.330 0.009 0.000 0.000 0.000 0.008
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 3.018 215.555 0.000 0.003 20.864 2.330 0.009 0.000 0.000 0.000 0.008
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.001 0.001
1997 0.003 0.002
1998 0.004 0.001
2999 0.005 0.001
2000 0.006 0.001
2001 0.007 0.000
2002 0.008 0.000
2003 0.008 0.000
2004 0.008 0.000
2005 0.008 0.000
SUB 0.008 0.006
RUB 0.008 0.000
TEM 0.008 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C> A-PROVED DEVE PRODUCING
KING P.W. % P.W., M$
LATEX OIL GAS ------ --------
HANSFORD ---------- ---------- 10.00 132.876
TX, OCHILTREE GROSS WELLS 0.000 1.000 15.00 106.541
MORROWAN UPPER GROSS CUM. MB & MMF 2.181 1318.804 20.00 89.349
19 44POLRD GROSS RES. MB & MMF 1.139 237.579 25.00 77.303
SEQ: 242 GROSS ULT. MB & MMF 3.320 1556.383 30.00 68.408
INIT W.I 95.020 LIFE/YR 36.333 RATE-OF-RETURN, % 100.00
INIT N.I 66.776 OPC/W 192 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.037 7.186 0.024 4.798 19.210 2.340 11.697 0.912 0.000 1.297 9.488
1997 0.083 16.447 0.056 10.983 19.210 2.340 26.769 2.189 0.000 2.969 21.611
1998 0.078 15.378 0.052 10.269 19.210 2.340 25.023 2.189 0.000 2.775 20.059
1999 0.072 14.378 0.048 9.601 19.210 2.340 23.392 2.189 0.000 2.595 18.608
2000 0.067 13.444 0.045 8.977 19.210 2.340 21.867 2.189 0.000 2.425 17.252
2001 0.062 12.570 0.042 8.394 19.210 2.340 20.441 2.189 0.000 2.267 15.985
2002 0.058 11.753 0.039 7.848 19.210 2.340 19.108 2.189 0.000 2.120 14.800
2003 0.054 10.989 0.036 7.338 19.210 2.340 17.863 2.189 0.000 1.982 13.692
2004 0.050 10.275 0.033 6.861 19.210 2.340 16.698 2.189 0.000 1.853 12.657
2005 0.047 9.607 0.031 6.415 19.210 2.340 15.610 2.189 0.000 1.731 11.689
SUB 0.608 122.027 0.406 81.484 19.210 2.340 198.468 20.613 0.000 22.014 155.841
REM 0.533 115.554 0.355 77.162 19.210 2.340 187.380 58.921 0.000 20.795 107.654
TOT 1.141 237.581 0.761 158.646 19.210 2.340 385.848 79.534 0.000 42.809 263.495
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.488 9.303
1997 31.099 19.822
1998 51.158 16.726
1999 69.766 14.106
2000 87.018 11.889
2001 103.003 10.014
2002 117.803 8.429
2003 131.495 7.089
2004 144.152 5.957
2005 155.841 5.002
SUB 155.841 108.337
REM 263.495 24.541
TOT 263.495 132.878
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP -B- P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 0.175
TX, GREGG GROSS WELLS 1.000 0.000 15.00 0.153
GROSS CUM. MB & MMF 2299.371 770.862 20.00 0.136
GROSS RES. MB & MMF 76.695 0.080 25.00 0.124
SEQ: 532 GROSS ULT. MB & MMF 2376.066 770.942 30.00 0.114
ORRI INIT W.I 0.000 LIFE/YR 18.333 RATE-OF-RETURN, % 100.00
INIT N.I 0.018 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 7.348 0.005 0.001 0.000 19.736 2.000 0.027 0.000 0.000 0.002 0.025
1997 13.659 0.012 0.003 0.000 19.740 3.000 0.050 0.000 0.000 0.004 0.046
1998 10.060 0.012 0.002 0.000 19.741 3.000 0.037 0.000 0.000 0.003 0.034
1999 7.824 0.012 0.001 0.000 19.733 3.000 0.029 0.000 0.000 0.002 0.026
2000 6.320 0.012 0.001 0.000 19.739 3.000 0.023 0.000 0.000 0.002 0.021
2001 5.249 0.012 0.001 0.000 19.749 3.000 0.019 0.000 0.000 0.002 0.018
2002 4.482 0.012 0.001 0.000 19.738 3.000 0.016 0.000 0.000 0.002 0.015
2003 3.813 0.003 0.001 0.000 19.752 1.000 0.014 0.000 0.000 0.002 0.013
2004 3.241 0.000 0.001 0.000 19.737 0.000 0.012 0.000 0.000 0.001 0.011
2005 2.755 0.000 0.001 0.000 19.750 0.000 0.010 0.000 0.000 0.000 0.009
SUB 64.751 0.080 0.012 0.000 19.740 2.786 0.237 0.000 0.000 0.020 0.218
REM 11.946 0.000 0.002 0.000 19.739 0.000 0.043 0.000 0.000 0.000 0.041
TOT 76.697 0.080 0.014 0.000 19.740 2.786 0.280 0.000 0.000 0.020 0.259
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.025 0.024
1997 0.071 0.042
1998 0.105 0.028
1999 0.131 0.020
2000 0.152 0.015
2001 0.170 0.011
2002 0.185 0.009
2003 0.198 0.007
2004 0.209 0.005
2005 0.218 0.004
SUB O.218 0.165
REM 0.259 0.O12
TOT 0.259 0.177
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP -C- ORRI P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
EAST TEXAS ------- ------- 10.00 4.110
TX, GREGG GROSS WELLS 1.000 0.000 15.00 3.378
GROSS CUM. MB & MMF 4119.786 1234.990 20.00 2.866
GROSS RES. MB & MMF 2037.784 611.335 25.00 2.490
SEQ: 533 GROSS ULT. MB & MMF 6157.570 1846.325 30.00 2.204
ORRI INIT W.I 0.000 LIFE/YR 26.167 RATE-OF-RETURN, % 100.00
INIT N.I 0.018 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 77.500 23.250 0.014 0.004 19.740 2.660 0.294 0.000 0.000 0.025 0.269
1997 186.000 55.800 0.034 0.010 19.740 2.660 0.705 0.000 0.000 0.060 0.645
1998 186.000 55.800 0.034 0.010 19.740 2.660 0.705 0.000 0.000 0.060 0.645
1999 186.000 55.800 0.034 0.010 19.740 2.660 0.705 0.000 0.000 0.060 0.645
2000 186.000 55.800 0.034 0.010 19.740 2.660 0.705 0.000 0.000 0.060 0.645
2001 183.434 55.030 0.034 0.010 19.740 2.660 0.695 0.000 0.000 0.059 0.636
2002 160.432 48.130 0.030 0.009 19.740 2.660 0.608 0.000 0.000 0.052 0.556
2003 136.367 40.910 0.025 0.008 19.740 2.660 0.517 0.000 0.000 0.044 0.473
2004 115.912 34.774 0.021 0.006 19.740 2.660 0.439 0.000 0.000 0.038 0.402
2005 98.525 29.558 0.018 0.005 19.740 2.660 0.373 0.000 0.000 0.032 0.342
SUB 1516.170 454.852 0.280 0.084 19.740 2.660 5.746 0.000 0.000 0.490 5.258
REM 521.613 156.484 0.096 0.029 19.740 2.660 1.977 0.000 0.000 0.169 1.807
TOT 2037.783 611.336 0.376 0.113 19.740 2.660 7.723 0.000 0.000 0.659 7.065
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.269 0.263
1997 0.914 0.591
1998 1.559 0.537
1999 2.204 0.488
2000 2.849 0.444
2001 3.485 0.398
2002 4.041 0.317
2003 4.514 0.245
2004 4.916 0.189
2005 5.258 0.146
SUB 5.258 3.618
REM 7.065 0.489
TOT 7.065 4.107
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP, F. K. 1 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 0.426
TX, GREGG GROSS WELLS 1.000 0.000 15.00 0.351
GROSS CUM. MB & MMF 407.253 121.773 20.00 0.298
GROSS RES. MB & MMF 220.220 66.066 25.00 0.259
SEQ: 534 GROSS ULT. MB & MMF 627.473 187.839 30.00 0.229
ORRI INIT W.I 0.000 LIFE/YR 22.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.018 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 8.500 2.550 0.002 0.000 18.743 2.453 0.031 0.000 0.000 0.002 0.028
1997 20.400 6.120 0.004 0.001 18.739 2.450 0.073 0.000 0.000 0.006 0.067
1998 20.400 6.120 0.004 0.001 18.739 2.450 0.073 0.000 0.000 0.006 0.067
1999 20.400 6.120 0.004 0.001 18.739 2.450 0.073 0.000 0.000 0.006 0.067
2000 20.400 6.120 0.004 0.001 18.739 2.450 0.073 0.000 0.000 0.006 0.067
2001 20.119 6.036 0.004 0.001 18.739 2.449 0.072 0.000 0.000 0.006 0.066
2002 17.596 5.279 0.003 0.001 18.742 2.450 0.063 0.000 0.000 0.005 0.058
2003 14.956 4.487 0.003 0.001 18.743 2.449 0.054 0.000 0.000 0.005 0.049
2004 12.713 3.814 0.002 0.001 18.736 2.449 0.046 0.000 0.000 0.004 0.042
2005 10.806 3.242 0.002 0.001 18.737 2.450 0.039 0.000 0.000 0.003 0.036
SUB 166.290 49.888 0.031 0.009 18.740 2.450 0.597 0.000 0.000 0.049 0.547
REM 53.930 16.178 0.010 0.003 18.738 2.450 0.194 0.000 0.000 0.014 0.177
TOT 220.220 66.066 0.041 0.012 18.739 2.450 0.791 0.000 0.000 0.063 0.724
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.028 0.027
1997 0.095 0.061
1998 0.162 0.056
1999 0.229 0.051
2000 0.296 0.046
2001 0.362 0.041
2002 0.420 0.033
2003 0.469 0.025
2004 0.511 0.020
2005 0.547 0.015
SUB 0.547 0.375
REM 0.724 0.050
TOT 0.724 0.425
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP, F.K. GAS UNIT P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.032
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.031
COTTON VALLEY W GROSS CUM. MB & MMF 11.329 1661.109 20.00 0.030
WROBI GROSS RES. MB & MMF 0.000 137.525 25.00 0.029
SEQ: 535 GROSS ULT. MB & MMF 11.329 1798.634 30.00 0.028
ORRI INIT W.I 0.000 LIFE/YR 2.667 RATE-OF-RETURN, % 100.00
INIT N.I 0.012 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 47.797 0.000 0.006 0.000 2.380 0.014 0.000 0.000 0.002 0.012
1997 0.000 61.686 0.000 0.007 0.000 2.380 0.017 0.000 0.000 0.002 0.015
1998 0.000 24.675 0.000 0.003 0.000 2.380 0.007 0.000 0.000 0.001 0.006
1999 0.000 3.368 0.000 0.000 0.000 2.380 0.001 0.000 0.000 0.000 0.001
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 137.526 0.000 0.016 0.000 2.380 0.039 0.000 0.000 0.005 0.034
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 137.526 0.000 0.016 0.000 2.380 0.039 0.000 0.000 0.005 0.034
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.012 0.012
1997 0.027 0.014
1998 0.033 0.005
1999 0.034 0.001
2000 0.034 0.000
2001 0.034 0.000
2002 0.034 0.000
2003 0.034 0.000
2004 0.034 0.000
2005 0.034 0.000
SUB 0.034 0.032
REM 0.034 0.000
TOT 0.034 0.032
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATINS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP, F.K. GAS UNIT 4 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.074
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.069
COTTON VALLEY W GROSS CUM. MB & MMF 5.411 1008.908 20.00 0.065
WROBI GROSS RES. MB & MMF 0.000 307.188 25.00 0.061
SEQ: 536 GROSS ULT. MB & MMF 5.411 1316.096 30.00 0.058
ORRI INIT W.I 0.000 LIFE/YR 5.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.013 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 54.923 0.000 0.007 0.000 2.450 0.018 0.000 0.000 0.002 0.016
1997 0.000 97.773 0.000 0.013 0.000 2.450 0.031 0.000 0.000 0.003 0.028
1998 0.000 63.553 0.000 0.008 0.000 2.450 0.020 0.000 0.000 0.003 0.018
1999 0.000 41.309 0.000 0.005 0.000 2.450 0.013 0.000 0.000 0.001 0.012
2000 0.000 26.851 0.000 0.004 0.000 2.450 0.009 0.000 0.000 0.001 0.008
2001 0.000 17.453 0.000 0.002 0.000 2.450 0.006 0.000 0.000 0.000 0.005
2002 0.000 5.326 0.000 0.001 0.000 2.449 0.002 0.000 0.000 0.000 0.002
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 307.188 0.000 0.040 0.000 2.450 0.099 0.000 0.000 0.010 0.089
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 307.188 0.000 0.040 0.000 2.450 0.099 0.000 0.000 0.010 0.089
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.016 0.015
1997 0.044 0.026
1998 0.062 0.015
1999 0.074 0.009
2000 0.082 0.005
2001 0.087 0.003
2002 0.089 0.001
2003 0.089 0.000
2004 0.089 0.000
2005 0.089 0.000
SUB 0.089 0.074
REM 0.089 0.000
TOT 0.089 0.074
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP, F.K. GAS UNIT 5 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.213
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.200
COTTON VALLEY W GROSS CUM. MB & MMF 8.244 1598.862 20.00 0.189
WROBI GROSS RES. MB & MMF 0.000 376.302 25.00 0.179
SEQ: 537 GROSS ULT. MB & MMF 8.244 1975.164 30.00 0.171
ORRI INIT W.I 0.000 LIFE/YR 5.583 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 76.563 0.000 0.023 0.000 2.450 0.056 0.000 0.000 0.006 0.050
1997 0.000 129.116 0.000 0.039 0.000 2.450 0.095 0.000 0.000 0.011 0.085
1998 0.000 77.470 0.000 0.023 0.000 2.450 0.057 0.000 0.000 0.006 0.051
1999 0.000 46.482 0.000 0.014 0.000 2.450 0.034 0.000 0.000 0.004 0.030
2000 0.000 27.889 0.000 0.008 0.000 2.450 0.021 0.000 0.000 0.003 0.018
2001 0.000 16.733 0.000 0.005 0.000 2.450 0.012 0.000 0.000 0.001 0.011
2002 0.000 2.049 0.000 0.001 0.000 2.449 0.002 0.000 0.000 0.000 0.001
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 376.302 0.000 0.113 0.000 2.450 0.277 0.000 0.000 0.031 0.246
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 376.302 0.000 0.113 0.000 2.450 0.277 0.000 0.000 0.031 0.246
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.050 0.049
1997 0.135 0.078
1998 0.186 0.042
1999 0.216 0.023
2000 0.234 0.013
2001 0.245 0.007
2002 0.246 0.001
2003 0.246 0.000
2004 0.246 0.000
2005 0.246 0.000
SUB 0.246 0.213
REM 0.246 0.000
TOT 0.246 0.213
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LATHROP, F.K. GU #2-ORRI P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.171
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.150
COTTON VALLEY W GROSS CUM. MB & MMF 11.426 1317.811 20.00 0.134
GROSS RES. MB & MMF 6.039 805.200 25.00 0.122
SEQ: 538 GROSS ULT. MB & MMF 17.465 2123.011 30.00 0.112
ORRI INIT W.I 0.000 LIFE/YR 14.583 RATE-OF-RETURN, % 100.00
INIT N.I 0.013 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.603 80.368 0.000 0.011 18.696 2.450 0.027 0.000 0.000 0.003 0.024
1997 1.120 149.392 0.000 0.020 18.680 2.450 0.051 0.000 0.000 0.006 0.045
1998 0.825 110.033 0.000 0.014 18.731 2.450 0.037 0.000 0.000 0.004 0.033
1999 0.642 85.574 0.000 0.011 18.726 2.450 0.029 0.000 0.000 0.003 0.026
2000 0.518 69.120 0.000 0.009 18.691 2.450 0.023 0.000 0.000 0.003 0.021
2001 0.431 57.410 0.000 0.008 18.839 2.450 0.019 0.000 0.000 0.002 0.017
2002 0.368 49.020 0.000 0.006 18.771 2.450 0.017 0.000 0.000 0.002 0.015
2003 0.313 41.702 0.000 0.005 18.707 2.450 0.014 0.000 0.000 0.002 0.013
2004 0.266 35.447 0.000 0.005 18.629 2.450 0.012 0.000 0.000 0.001 0.011
2005 0.226 30.130 0.000 0.004 18.467 2.450 0.010 0.000 0.000 0.001 0.009
SUB 5.312 708.196 0.001 0.093 18.705 2.450 0.239 0.000 0.000 0.027 0.214
REM 0.727 97.004 0.000 0.013 18.968 2.450 0.033 0.000 0.000 0.002 0.031
TOT 6.039 805.200 0.001 0.105 18.737 2.450 0.272 0.000 0.000 0.029 0.245
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.024 0.024
1997 0.069 0.041
1998 0.102 0.028
1999 0.128 0.020
2000 0.149 0.014
2001 0.166 0.011
2002 0.181 0.008
2003 0.194 0.007
2004 0.205 0.005
2005 0.214 0.004
SUB 0.214 0.162
REM 0.245 0.009
TOT 0.245 0.171
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE -B- GAS UNIT 1-C OIL GAS P.W. % P.W., M$
OXY U S A INC ---------- ---------- ------ --------
WILLOW SPRINGS (HENDERSON) 10.00 1.369
TX, GREGG GROSS WELLS 0.000 1.000 15.00 1.070
HENDERSON GROSS CUM. MB & MMF 46.818 8300.101 20.00 0.881
GROSS RES. MB & MMF 0.000 585.788 25.00 0.751
SEQ: 539 GROSS ULT. MB & MMF 46.818 8885.889 30.00 0.658
ORRI INIT W.I 0.000 LIFE/YR 24.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.208 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 17.314 0.000 0.036 0.000 2.660 0.096 0.000 0.000 0.011
1997 0.000 40.075 0.000 0.083 0.000 2.660 0.222 0.000 0.000 0.025
1998 0.000 38.072 0.000 0.079 0.000 2.660 0.211 0.000 0.000 0.024
1999 0.000 36.168 0.000 0.075 0.000 2.660 0.200 0.000 0.000 0.022
2000 0.000 34.360 0.000 0.071 0.000 2.660 0.190 0.000 0.000 0.021
2001 0.000 32.642 0.000 0.068 0.000 2.660 0.181 0.000 0.000 0.021
2002 0.000 31.010 0.000 0.065 0.000 2.660 0.172 0.000 0.000 0.019
2003 0.000 29.459 0.000 0.061 0.000 2.660 0.163 0.000 0.000 0.018
2004 0.000 27.986 0.000 0.058 0.000 2.660 0.155 0.000 0.000 0.018
2005 0.000 26.587 0.000 0.055 0.000 2.660 0.147 0.000 0.000 0.016
SUB 0.000 313.673 0.000 0.653 0.000 2.660 1.737 0.000 0.000 0.195
REM 0.000 272.115 0.000 0.566 0.000 2.660 1.508 0.000 0.000 0.168
TOT 0.000 585.788 0.000 1.219 0.000 2.660 3.245 0.000 0.000 0.363
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 0.085 0.085 0.083
1997 0.197 0.282 0.181
1998 0.187 0.469 0.156
1999 0.178 0.647 0.135
2000 0.169 0.816 0.116
2001 0.160 0.976 0.100
2002 0.152 1.128 0.087
2003 0.145 1.273 0.075
2004 0.138 1.411 0.065
2005 0.131 1.542 0.056
SUB 1.542 1.542 1.054
REM 1.337 2.879 0.314
TOT 2.879 2.879 1.368
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE -G- P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS-MACKEY (TRAVIS ---------- ---------- 10.00 0.082
TX, GREGG GROSS WELLS 1.000 0.000 15.00 0.064
TRAVIS PEAK GROSS CUM. MB & MMF 23.568 144.483 20.00 0.053
GROSS RES. MB & MMF 15.217 115.646 25.00 0.045
SEQ: 540 GROSS ULT. MB & MMF 38.785 260.129 30.00 0.040
ORRI INIT W.I 0.000 LIFE/YR 22.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.470 3.572 0.000 0.001 19.134 2.771 0.006 0.000 0.000 0.000 0.005
1997 1.088 8.267 0.000 0.002 19.171 2.770 0.013 0.000 0.000 0.001 0.012
1998 1.033 7.854 0.000 0.002 19.209 2.770 0.013 0.000 0.000 0.001 0.011
1999 0.982 7.461 0.000 0.002 19.172 2.771 0.012 0.000 0.000 0.001 0.011
2000 0.933 7.088 0.000 0.002 19.189 2.770 0.011 0.000 0.000 0.001 0.010
2001 0.886 6.733 0.000 0.002 19.184 2.771 0.011 0.000 0.000 0.001 0.010
2002 0.842 6.397 0.000 0.002 19.233 2.770 0.010 0.000 0.000 0.001 0.009
2003 0.800 6.077 0.000 0.002 19.183 2.769 0.010 0.000 0.000 0.001 0.009
2004 0.760 5.773 0.000 0.002 19.175 2.770 0.009 0.000 0.000 0.001 0.008
2005 0.722 5.484 0.000 0.002 19.226 2.770 0.009 0.000 0.000 0.001 0.008
SUB 8.516 64.706 0.003 0.019 19.189 2.770 0.104 0.000 0.000 0.009 0.093
REM 6.702 50.942 0.002 0.015 19.202 2.770 0.080 0.000 0.000 0.001 0.072
TOT 15.218 115.648 0.005 0.035 19.195 2.770 0.184 0.000 0.000 0.010 0.165
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.005 0.005
1997 0.017 0.011
1998 0.028 0.009
1999 0.039 0.008
2000 0.049 0.007
2001 0.059 0.006
2002 0.068 0.005
2003 0.077 0.005
2004 0.085 0.004
2005 0.093 0.003
SUB 0.093 0.063
REM 0.165 0.020
TOT 0.165 0.083
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE 2-5 P.W. % P.W., M$
SONAT EXPL INC MCR OIL GAS ------ --------
ALLISON PARKS (MORROWAN UPPER) ---------- ---------- 10.00 32.530
TX, HEMPHILL GROSS WELLS 0.000 1.000 15.00 29.776
MORROWAN UPPER GROSS CUM. MB & MMF 1.991 6385.702 20.00 27.495
5 M-1 H&GN GROSS RES. MB & MMF 0.000 1283.966 25.00 25.579
SEQ: 651 GROSS ULT. MB & MMF 1.991 7669.668 30.00 23.951
INIT W.I 3.125 LIFE/YR 8.583 RATE-OF-RETURN, % 100.00
INIT N.I 2.196 OPC/W 6205 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 133.689 0.000 2.936 0.000 2.400 7.046 0.970 0.000 0.789 5.287
1997 0.000 274.414 0.000 6.026 0.000 2.400 14.463 2.327 0.000 1.620 10.516
1998 0.000 219.531 0.000 4.821 0.000 2.400 11.570 2.327 0.000 1.296 7.948
1999 0.000 175.625 0.000 3.857 0.000 2.400 9.256 2.327 0.000 1.036 5.893
2000 0.000 140.500 0.000 3.085 0.000 2.400 7.405 2.327 0.000 0.829 4.249
2001 0.000 112.400 0.000 2.468 0.000 2.400 5.924 2.327 0.000 0.663 2.934
2002 0.000 89.920 0.000 1.975 0.000 2.400 4.739 2.327 0.000 0.530 1.882
2003 0.000 71.936 0.000 1.580 0.000 2.400 3.791 2.327 0.000 0.424 1.040
2004 0.000 57.549 0.000 1.264 0.000 2.400 3.033 2.327 0.000 0.339 0.367
2005 0.000 8.404 0.000 0.185 0.000 2.400 0.443 0.388 0.000 0.049 0.006
SUB 0.000 1283.968 0.000 28.197 0.000 2.400 67.670 19.974 0.000 7.575 40.122
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 1283.968 0.000 28.197 0.000 2.400 67.670 19.974 0.000 7.575 40.122
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.287 5.186
1997 15.803 9.661
1998 23.751 6.638
1999 29.644 4.475
2000 33.893 2.934
2001 36.827 1.843
2002 38.709 1.075
2003 39.749 0.541
2004 40.116 0.175
2005 40.122 0.002
SUB 40.122 32.530
REM 40.122 0.000
TOT 40.122 32.530
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE GAS UNIT B-3 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.291
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.251
COTTON VALLEY W GROSS CUM. MB & MMF 2.587 676.328 20.00 0.222
WROBI GROSS RES. MB & MMF 0.000 665.514 25.00 0.199
SEQ: 652 GROSS ULT. MB & MMF 2.587 1341.842 30.00 0.181
ORRI INIT W.I 0.000 LIFE/YR 14.250 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 48.345 0.000 0.015 0.000 2.400 0.035 0.000 0.000 0.004 0.031
1997 0.000 103.505 0.000 0.031 0.000 2.400 0.075 0.000 0.000 0.009 0.066
1998 0.000 87.979 0.000 0.026 0.000 2.400 0.064 0.000 0.000 0.007 0.056
1999 0.000 74.782 0.000 0.023 0.000 2.400 0.054 0.000 0.000 0.006 0.048
2000 0.000 63.565 0.000 0.019 0.000 2.400 0.046 0.000 0.000 0.005 0.041
2001 0.000 54.030 0.000 0.016 0.000 2.400 0.039 0.000 0.000 0.004 0.035
2002 0.000 45.926 0.000 0.014 0.000 2.400 0.033 0.000 0.000 0.003 0.029
2003 0.000 39.037 0.000 0.012 0.000 2.400 0.028 0.000 0.000 0.003 0.025
2004 0.000 33.181 0.000 0.010 0.000 2.400 0.024 0.000 0.000 0.003 0.021
2005 0.000 28.204 0.000 0.008 0.000 2.400 0.020 0.000 0.000 0.003 0.018
SUB 0.000 578.554 0.000 0.174 0.000 2.400 0.418 0.000 0.000 0.047 0.370
REM 0.000 86.961 0.000 0.026 0.000 2.400 0.064 0.000 0.000 0.007 0.055
TOT 0.000 665.515 0.000 0.200 0.000 2.400 0.482 0.000 0.000 0.054 0.425
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.031 0.030
1997 0.097 0.061
1998 0.153 0.047
1999 0.201 0.036
2000 0.242 0.028
2001 0.277 0.022
2002 0.306 0.017
2003 0.331 0.013
2004 0.352 0.010
2005 0.370 0.008
SUB 0.370 0.272
REM 0.425 0.020
TOT 0.425 0.292
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE GAS UNIT B-4 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.306
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.272
COTTON VALLEY W GROSS CUM. MB & MMF 6.372 1212.999 20.00 0.245
WROBI GROSS RES. MB & MMF 0.000 645.389 25.00 0.223
SEQ: 653 GROSS ULT. MB & MMF 6.372 1858.388 30.00 0.205
ORRI INIT W.I 0.000 LIFE/YR 11.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 62.070 0.000 0.019 0.000 2.400 0.045 0.000 0.000 0.005 0.040
1997 0.000 127.406 0.000 0.038 0.000 2.400 0.092 0.000 0.000 0.010 0.082
1998 0.000 101.925 0.000 0.031 0.000 2.400 0.074 0.000 0.000 0.009 0.065
1999 0.000 81.540 0.000 0.025 0.000 2.400 0.059 0.000 0.000 0.006 0.052
2000 0.000 65.232 0.000 0.020 0.000 2.400 0.047 0.000 0.000 0.006 0.042
2001 0.000 52.186 0.000 0.016 0.000 2.400 0.038 0.000 0.000 0.004 0.033
2002 0.000 41.749 0.000 0.013 0.000 2.400 0.030 0.000 0.000 0.003 0.027
2003 0.000 33.399 0.000 0.010 0.000 2.400 0.024 0.000 0.000 0.003 0.021
2004 0.000 26.719 0.000 0.008 0.000 2.400 0.019 0.000 0.000 0.002 0.017
2005 0.000 21.375 0.000 0.006 0.000 2.400 0.015 0.000 0.000 0.002 0.014
SUB 0.000 613.601 0.000 0.185 0.000 2.400 0.443 0.000 0.000 0.050 0.393
REM 0.000 31.788 0.000 0.010 0.000 2.400 0.023 0.000 0.000 0.002 0.021
TOT 0.000 645.389 0.000 0.194 0.000 2.400 0.466 0.000 0.000 0.052 0.414
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.040 0.039
1997 0.122 0.075
1998 0.187 0.055
1999 0.239 0.040
2000 0.281 0.029
2001 0.314 0.021
2002 0.341 0.015
2003 0.362 0.011
2004 0.379 0.008
2005 0.393 0.006
SUB 0.393 0.299
REM 0.414 0.007
TOT 0.414 0.306
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE GAS UNIT B-5 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.477
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.421
COTTON VALLEY W GROSS CUM. MB & MMF 7.360 1616.196 20.00 0.378
GROSS RES. MB & MMF 0.000 1022.655 25.00 0.344
SEQ: 654 GROSS ULT. MB & MMF 7.360 2638.851 30.00 0.317
ORRI INIT W.I 0.000 LIFE/YR 13.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 95.492 0.000 0.029 0.000 2.400 0.069 0.000 0.000 0.008 0.061
1997 0.000 196.010 0.000 0.059 0.000 2.400 0.142 0.000 0.000 0.016 0.126
1998 0.000 156.808 0.000 0.047 0.000 2.400 0.113 0.000 0.000 0.012 0.101
1999 0.000 125.446 0.000 0.038 0.000 2.400 0.091 0.000 0.000 0.010 0.080
2000 0.000 100.357 0.000 0.030 0.000 2.400 0.073 0.000 0.000 0.008 0.064
2001 0.000 80.286 0.000 0.024 0.000 2.400 0.058 0.000 0.000 0.006 0.052
2002 0.000 64.228 0.000 0.019 0.000 2.400 0.046 0.000 0.000 0.005 0.041
2003 0.000 51.383 0.000 0.015 0.000 2.400 0.037 0.000 0.000 0.004 0.033
2004 0.000 41.106 0.000 0.012 0.000 2.400 0.030 0.000 0.000 0.003 0.026
2005 0.000 32.885 0.000 0.010 0.000 2.400 0.024 0.000 0.000 0.003 0.021
SUB 0.000 944.001 0.000 0.284 0.000 2.400 0.683 0.000 0.000 0.075 0.605
REM 0.000 78.654 0.000 0.024 0.000 2.400 0.057 0.000 0.000 0.006 0.052
TOT 0.000 1022.655 0.000 0.308 0.000 2.400 0.740 0.000 0.000 0.081 0.657
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.061 0.060
1997 0.187 0.116
1998 0.288 0.084
1999 0.368 0.061
2000 0.432 0.044
2001 0.484 0.032
2002 0.525 0.024
2003 0.558 0.017
2004 0.584 0.012
2005 0.605 0.009
SUB 0.605 0.459
REM 0.657 0.018
TOT 0.657 0.477
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE GAS UNIT B-6 P.W. % P.W., M$
OXY U S A INC OIL GAS ------ --------
WILLOW SPRINGS (COTTON VALLEY ---------- ---------- 10.00 0.589
TX, GREGG GROSS WELLS 0.000 1.000 15.00 0.508
COTTON VALLEY W GROSS CUM. MB & MMF 11.302 2022.491 20.00 0.449
WROBI GROSS RES. MB & MMF 0.000 1374.976 25.00 0.404
SEQ: 655 GROSS ULT. MB & MMF 11.302 3397.467 30.00 0.368
ORRI INIT W.I 0.000 LIFE/YR 18.167 RATE-OF-RETURN, % 100.00
INIT N.I 0.030 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 108.544 0.000 0.033 0.000 2.400 0.078 0.000 0.000 0.009 0.070
1997 0.000 217.585 0.000 0.066 0.000 2.400 0.157 0.000 0.000 0.018 0.140
1998 0.000 173.672 0.000 0.052 0.000 2.400 0.126 0.000 0.000 0.014 0.111
1999 0.000 142.970 0.000 0.043 0.000 2.400 0.103 0.000 0.000 0.012 0.092
2000 0.000 120.676 0.000 0.036 0.000 2.400 0.087 0.000 0.000 0.010 0.077
2001 0.000 102.724 0.000 0.031 0.000 2.400 0.074 0.000 0.000 0.009 0.066
2002 0.000 87.315 0.000 0.026 0.000 2.400 0.063 0.000 0.000 0.007 0.056
2003 0.000 74.218 0.000 0.022 0.000 2.400 0.054 0.000 0.000 0.006 0.048
2004 0.000 63.085 0.000 0.019 0.000 2.400 0.046 0.000 0.000 0.005 0.040
2005 0.000 53.623 0.000 0.016 0.000 2.400 0.039 0.000 0.000 0.004 0.034
SUB 0.000 1144.412 0.000 0.345 0.000 2.400 0.827 0.000 0.000 0.094 0.734
REM 0.000 230.564 0.000 0.069 0.000 2.400 0.167 0.000 0.000 0.019 0.147
TOT 0.000 1374.976 0.000 0.414 0.000 2.400 0.994 0.000 0.000 0.113 0.881
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.070 0.068
1997 0.210 0.128
1998 0.321 0.093
1999 0.413 0.070
2000 0.490 0.053
2001 0.556 0.041
2002 0.612 0.032
2003 0.660 0.025
2004 0.700 0.019
2005 0.734 0.015
SUB 0.734 0.544
REM 0.881 0.044
TOT 0.881 0.588
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE, T. W. P.W. % P.W., M$
AXTEL ENERGY INC OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 1.637
TX, GREGG GROSS WELLS 1.000 0.000 15.00 1.462
GROSS CUM. MB & MMF 2133.160 539.337 20.00 1.324
GROSS RES. MB & MMF 18.831 0.000 25.00 1.212
SEQ: 656 GROSS ULT. MB & MMF 2151.991 539.337 30.00 1.119
ORRI INIT W.I 0.000 LIFE/YR 9.333 RATE-OF-RETURN, % 100.00
INIT N.I 0.630 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.910 0.000 0.012 0.000 19.840 0.000 0.239 0.000 0.000 0.020
1997 3.920 0.000 0.025 0.000 19.840 0.000 0.490 0.000 0.000 0.042
1998 3.136 0.000 0.020 0.000 19.840 0.000 0.392 0.000 0.000 0.033
1999 2.509 0.000 0.016 0.000 19.840 0.000 0.313 0.000 0.000 0.026
2000 2.007 0.000 0.013 0.000 19.840 0.000 0.251 0.000 0.000 0.022
2001 1.606 0.000 0.010 0.000 19.839 0.000 0.201 0.000 0.000 0.017
2002 1.285 0.000 0.008 0.000 19.840 0.000 0.161 0.000 0.000 0.013
2003 1.028 0.000 0.006 0.000 19.840 0.000 0.128 0.000 0.000 0.011
2004 0.822 0.000 0.005 0.000 19.839 0.000 0.103 0.000 0.000 0.009
2005 0.608 0.000 0.004 0.000 19.841 0.000 0.076 0.000 0.000 0.006
SUB 18.831 0.000 0.119 0.000 19.840 0.000 2.354 0.000 0.000 0.199
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 18.831 0.000 0.119 0.000 19.840 0.000 2.354 0.000 0.000 0.199
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 0.219 0.219 0.214
1997 0.449 0.668 0.412
1998 0.359 1.027 0.300
1999 0.287 1.314 0.218
2000 0.230 1.544 0.158
2001 0.184 1.728 0.115
2002 0.147 1.875 0.084
2003 0.118 1.993 0.061
2004 0.094 2.087 0.044
2005 0.070 2.157 0.030
SUB 2.157 2.157 1.636
REM 0.000 2.157 0.000
TOT 2.157 2.157 1.636
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE, T. W. P.W. % P.W., M$
KEY PRODUCTION CO INC OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 7.051
TX, GREGG GROSS WELLS 1.000 0.000 15.00 5.928
GROSS CUM. MB & MMF 55.135 13.331 20.00 5.104
GROSS RES. MB & MMF 94.053 23.513 25.00 4.480
SEQ: 657 GROSS ULT. MB & MMF 149.188 36.844 30.00 3.994
ORRI INIT W.I 0.000 LIFE/YR 17.750 RATE-OF-RETURN, % 100.00
INIT N.I 0.630 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.250 1.063 0.027 0.007 19.840 2.050 0.545 0.000 0.000 0.046 0.499
1997 10.200 2.550 0.064 0.016 19.840 2.050 1.307 0.000 0.000 0.111 1.196
1998 10.200 2.550 0.064 0.016 19.840 2.050 1.307 0.000 0.000 0.111 1.196
1999 10.200 2.550 0.064 0.016 19.840 2.050 1.307 0.000 0.000 0.111 1.196
2000 10.200 2.550 0.064 0.016 19.840 2.050 1.307 0.000 0.000 0.111 1.196
2001 10.008 2.502 0.063 0.016 19.840 2.050 1.283 0.000 0.000 0.109 1.174
2002 8.330 2.083 0.052 0.013 19.840 2.050 1.068 0.000 0.000 0.091 0.977
2003 6.664 1.666 0.042 0.010 19.840 2.050 0.854 0.000 0.000 0.073 0.782
2004 5.331 1.333 0.034 0.008 19.840 2.050 0.683 0.000 0.000 0.058 0.625
2005 4.265 1.066 0.027 0.007 19.840 2.050 0.547 0.000 0.000 0.047 0.500
SUB 79.648 19.913 0.502 0.125 19.840 2.050 10.208 0.000 0.000 0.868 9.341
REM 14.404 3.601 0.091 0.023 19.840 2.050 1.846 0.000 0.000 0.154 1.689
TOT 94.052 23.514 0.592 0.148 19.840 2.050 12.054 0.000 0.000 1.022 11.030
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.499 0.489
1997 1.695 1.097
1998 2.891 0.997
1999 4.087 0.906
2000 5.283 0.824
2001 6.457 0.736
2002 7.434 0.557
2003 8.216 0.405
2004 8.841 0.295
2005 9.341 0.214
SUB 9.341 6.520
REM 11.030 0.532
TOT 11.030 7.052
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LEE, TAYLOR W. P.W. % P.W., M$
AMOCO PRODUCTION CO OIL GAS ------ --------
EAST TEXAS ------- ------- 10.00 27.332
TX, GREGG GROSS WELLS 1.000 0.000 15.00 22.503
WOODBINE GROSS CUM. MB & MMF 803.114 257.204 20.00 19.104
GROSS RES. MB & MMF 516.960 142.164 25.00 16.604
SEQ: 541 GROSS ULT. MB & MMF 1320.074 399.368 30.00 14.699
ORRI INIT W.I 0.000 LIFE/YR 22.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.480 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 20.000 5.500 0.096 0.026 19.840 2.050 1.958 0.000 0.000 0.167 1.792
1997 48.000 13.200 0.230 0.063 19.840 2.050 4.699 0.000 0.000 0.399 4.300
1998 48.000 13.200 0.230 0.063 19.840 2.050 4.699 0.000 0.000 0.399 4.300
1999 48.000 13.200 0.230 0.063 19.840 2.050 4.699 0.000 0.000 0.399 4.300
2000 48.000 13.200 0.230 0.063 19.840 2.050 4.699 0.000 0.000 0.399 4.300
2001 47.338 13.018 0.227 0.062 19.840 2.050 4.634 0.000 0.000 0.394 4.241
2002 41.402 11.386 0.199 0.055 19.840 2.050 4.053 0.000 0.000 0.345 3.709
2003 35.192 9.678 0.169 0.046 19.840 2.050 3.445 0.000 0.000 0.292 3.153
2004 29.913 8.226 0.144 0.039 19.840 2.050 2.929 0.000 0.000 0.249 2.680
2005 25.426 6.992 0.122 0.034 19.840 2.050 2.489 0.000 0.000 0.211 2.278
SUB 391.271 107.600 1.877 0.516 19.840 2.050 38.304 0.000 0.000 3.254 35.053
REM 125.690 34.565 0.603 0.166 19.840 2.050 12.305 0.000 0.000 1.048 11.261
TOT 516.961 142.165 2.480 0.682 19.840 2.050 50.609 0.000 0.000 4.302 46.314
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 1.792 1.757
1997 6.092 3.942
1998 10.392 3.584
1999 14.692 3.258
2000 18.992 2.962
2001 23.233 2.656
2002 26.942 2.114
2003 30.095 1.633
2004 32.775 1.262
2005 35.053 0.975
SUB 35.053 24.143
REM 46.314 3.190
TOT 46.314 27.333
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LITTLE WHIT #1 P.W. % P.W., M$
WESTERN RESERVES OIL CO OIL GAS ------ --------
BIG WHIT (WOLFCAMP) ------- ------- 10.00 0.000
TX, GLASSCOCK GROSS WELLS 1.000 0.000 15.00 0.000
WOLFCAMP GROSS CUM. MB & MMF 295.803 396.465 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 542 GROSS ULT. MB & MMF 295.803 396.465 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 25.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 17.569 OPC/W 1886 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
LITTLE WHIT #4 P.W. % P.W., M$
WESTERN RESERVES OIL CO OIL GAS ------ --------
COBRA (WOLFCAMP) ------- ------- 10.00 27.008
TX, GLASSCOCK GROSS WELLS 1.000 0.000 15.00 24.370
WOLFCAMP GROSS CUM. MB & MMF 82.449 86.454 20.00 22.225
GROSS RES. MB & MMF 23.151 35.884 25.00 20.452
SEQ: 543 GROSS ULT. MB & MMF 105.600 122.338 30.00 18.968
INIT W.I 25.000 LIFE/YR 9.083 RATE-OF-RETURN, % 100.00
INIT N.I 17.569 OPC/W 1886 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.614 2.502 0.284 0.440 19.320 2.490 6.574 2.358 0.000 0.584 3.633
1997 3.597 5.575 0.632 0.980 19.320 2.490 14.649 5.658 0.000 1.301 7.690
1998 3.237 5.018 0.569 0.882 19.320 2.490 13.184 5.658 0.000 1.171 6.355
1999 2.914 4.516 0.512 0.793 19.320 2.490 11.865 5.658 0.000 1.053 5.154
2000 2.622 4.065 0.461 0.714 19.320 2.490 10.679 5.658 0.000 0.948 4.073
2001 2.360 3.658 0.415 0.643 19.320 2.490 9.611 5.658 0.000 0.854 3.100
2002 2.124 3.292 0.373 0.578 19.320 2.490 8.650 5.658 0.000 0.768 2.224
2003 1.912 2.963 0.336 0.521 19.320 2.490 7.785 5.658 0.000 0.692 1.436
2004 1.720 2.667 0.302 0.469 19.320 2.490 7.006 5.658 0.000 0.622 0.726
2005 1.050 1.628 0.185 0.286 19.320 2.490 4.277 3.772 0.000 0.379 0.125
SUB 23.150 35.884 4.067 6.304 19.320 2.490 94.280 51.394 0.000 8.372 34.516
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 23.150 35.884 4.067 6.304 19.320 2.490 94.280 51.394 0.000 8.372 34.516
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 3.633 3.562
1997 11.323 7.059
1998 17.678 5.304
1999 22.832 3.911
2000 26.905 2.810
2001 30.005 1.945
2002 32.229 1.269
2003 33.665 0.746
2004 34.391 0.344
2005 34.516 0.055
SUB 34.516 27.005
REM 34.516 0.000
TOT 34.516 27.005
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MCDANIEL, LOIS 1 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 72.452
TX, WARD GROSS WELLS 1.000 0.000 15.00 67.908
CHERRY CANYON GROSS CUM. MB & MMF 27.434 1948.615 20.00 63.998
165 34 H&TC RR GROSS RES. MB & MMF 1.577 420.330 25.00 60.601
SEQ: 544 GROSS ULT. MB & MMF 29.011 2368.945 30.00 57.626
INIT W.I 15.623 LIFE/YR 6.250 RATE-OF-RETURN, % 100.00
INIT N.I 12.978 OPC/W 2577 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.315 65.047 0.041 8.442 20.700 2.280 20.094 2.013 0.000 2.227 15.854
1997 0.532 121.791 0.069 15.806 20.700 2.280 37.466 4.831 0.000 4.157 28.478
1998 0.319 85.254 0.041 11.064 20.700 2.280 26.084 4.831 0.000 2.897 18.355
1999 0.191 59.678 0.025 7.745 20.700 2.280 18.173 4.831 0.000 2.021 11.320
2000 0.115 41.774 0.015 5.422 20.700 2.280 12.670 4.831 0.000 1.410 6.428
2001 0.069 29.242 0.009 3.795 20.701 2.280 8.838 4.831 0.000 0.984 3.022
2002 0.036 17.544 0.005 2.277 20.701 2.280 5.288 4.026 0.000 0.590 0.672
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.577 420.330 0.205 54.551 20.700 2.280 128.613 30.194 0.000 14.286 84.129
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.577 420.330 0.205 54.551 20.700 2.280 128.613 30.194 0.000 14.286 84.129
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 15.854 15.552
1997 44.332 26.193
1998 62.687 15.351
1999 74.007 8.611
2000 80.435 4.449
2001 83.457 1.906
2002 84.129 0.391
2003 84.129 0.000
2004 84.129 0.000
2005 84.129 0.000
SUB 84.129 72.453
REM 84.129 0.000
TOT 84.129 72.453
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MEALS, NANCY 1 P.W. % P.W., M$
LATEX OIL GAS ------ --------
BLOCK D ---------- ---------- 10.00 775.284
TX, YOAKUM GROSS WELLS 1.000 0.000 15.00 584.091
DEVONIAN GROSS CUM. MB & MMF 615.259 109.252 20.00 469.560
SEC 398 BLK D GROSS RES. MB & MMF 578.157 0.000 25.00 394.338
SEQ: 223 GROSS ULT. MB & MMF 1193.416 109.252 30.00 341.430
INIT W.I 39.583 LIFE/YR 29.667 RATE-OF-RETURN, % 100.00
INIT N.I 30.425 OPC/W 8951 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 10.500 0.000 3.195 0.000 19.790 0.000 63.222 17.716 0.000 5.321 40.185
1997 25.200 0.000 7.667 0.000 19.790 0.000 151.732 42.517 0.000 12.770 96.445
1998 24.947 0.000 7.590 0.000 19.790 0.000 150.209 42.517 0.000 12.642 95.051
1999 24.448 0.000 7.438 0.000 19.790 0.000 147.205 42.517 0.000 12.388 92.299
2000 23.959 0.000 7.290 0.000 19.790 0.000 144.261 42.517 0.000 12.141 89.603
2001 23.480 0.000 7.144 0.000 19.790 0.000 141.376 42.517 0.000 11.898 86.960
2002 23.010 0.000 7.001 0.000 19.790 0.000 138.548 42.517 0.000 11.660 84.371
2003 22.550 0.000 6.861 0.000 19.790 0.000 135.777 42.517 0.000 11.427 81.833
2004 22.099 0.000 6.724 0.000 19.790 0.000 133.062 42.517 0.000 11.199 79.346
2005 21.657 0.000 6.589 0.000 19.790 0.000 130.401 42.517 0.000 10.974 76.909
SUB 221.850 0.000 67.498 0.000 19.790 0.000 1335.793 400.369 0.000 112.420 823.002
REM 356.307 0.000 108.406 0.000 19.790 0.000 2145.354 860.969 0.000 180.555 1103.827
TOT 578.157 0.000 175.904 0.000 19.790 0.000 3481.147 1261.338 0.000 292.975 1926.829
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 40.185 39.398
1997 136.630 88.410
1998 231.681 79.229
1999 323.980 69.941
2000 413.583 61.726
2001 500.543 54.460
2002 584.914 48.034
2003 666.747 42.354
2004 746.093 37.334
2005 823.002 32.897
SUB 823.002 553.783
REM 1926.829 221.500
TOT 1926.829 775.283
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
MIKESKA/KRENEK P.W. % P.W., M$
COLUMBIA GAS DEV CORP OIL GAS ------ --------
GIDDINGS (AUSTIN CHALK-3) ---------- ---------- 10.00 408.522
TX, BURLESON GROSS WELLS 1.000 0.000 15.00 342.305
AUSTIN CHALK-3 GROSS CUM. MB & MMF 106.130 52.996 20.00 295.592
GROSS RES. MB & MMF 132.324 91.609 25.00 261.055
SEQ: 43 GROSS ULT. MB & MMF 238.454 144.605 30.00 234.553
INIT W.I 30.839 LIFE/YR 24.667 RATE-OF-RETURN, % 100.00
INIT N.I 30.797 OPC/W 1927 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 6.140 4.251 1.891 1.309 20.320 3.480 42.978 2.971 0.000 3.744 36.263
1997 13.681 9.472 4.213 2.917 20.320 3.480 95.767 7.131 0.000 8.343 80.293
1998 12.313 8.525 3.792 2.625 20.320 3.480 86.190 7.131 0.000 7.508 71.551
1999 11.082 7.672 3.413 2.363 20.320 3.480 77.571 7.131 0.000 6.758 63.683
2000 9.974 6.905 3.072 2.126 20.320 3.480 69.814 7.131 0.000 6.082 56.601
2001 8.976 6.214 2.764 1.914 20.320 3.480 62.833 7.131 0.000 5.473 50.228
2002 8.079 5.593 2.488 1.722 20.320 3.480 56.549 7.131 0.000 4.926 44.492
2003 7.271 5.034 2.239 1.550 20.320 3.480 50.895 7.131 0.000 4.434 39.330
2004 6.544 4.530 2.015 1.395 20.320 3.480 45.805 7.131 0.000 3.990 34.684
2005 5.889 4.077 1.814 1.256 20.320 3.480 41.225 7.131 0.000 3.591 30.502
SUB 89.949 62.273 27.701 19.178 20.320 3.480 629.627 67.150 0.000 54.849 507.627
REM 42.374 29.337 13.050 9.035 20.320 3.480 296.618 108.748 0.000 25.840 162.030
TOT 132.323 91.610 40.751 28.212 20.320 3.480 926.245 175.898 0.000 80.689 669.657
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 36.263 35.558
1997 116.556 73.670
1998 188.107 59.681
1999 251.790 48.290
2000 308.391 39.019
2001 358.619 31.478
2002 403.111 25.349
2003 442.441 20.371
2004 477.125 16.332
2005 507.627 13.057
SUB 507.627 362.805
REM 669.657 45.717
TOT 669.657 408.522
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
NORTHEAST EDGEWOOD UNIT P.W. % P.W., M$
W G R INC OIL GAS ------ --------
EDGEWOOD NE (SMACKOVER) ---------- ---------- 10.00 14.469
TX, VAN ZANDT GROSS WELLS 0.000 1.000 15.00 12.343
SMACKOVER GROSS CUM. MB & MMF 0.000 171436.176 20.00 10.799
GROSS RES. MB & MMF 0.000 21096.668 25.00 9.634
SEQ: 705 GROSS ULT. MB & MMF 0.000 192532.844 30.00 8.726
10 WELLS INCLUDED IN UNIT. INIT W.I 0.000 LIFE/YR 17.667 RATE-OF-RETURN, % 100.00
INIT N.I 0.066 OPC/W UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1381.148 0.000 0.912 0.000 1.800 1.641 0.000 0.000 0.184 1.457
1997 0.000 2981.224 0.000 1.968 0.000 1.800 3.542 0.000 0.000 0.397 3.145
1998 0.000 2563.853 0.000 1.692 0.000 1.800 3.046 0.000 0.000 0.341 2.705
1999 0.000 2204.914 0.000 1.455 0.000 1.800 2.619 0.000 0.000 0.293 2.326
2000 0.000 1896.226 0.000 1.252 0.000 1.800 2.253 0.000 0.000 0.252 2.000
2001 0.000 1630.754 0.000 1.076 0.000 1.800 1.937 0.000 0.000 0.217 1.720
2002 0.000 1402.448 0.000 0.926 0.000 1.800 1.666 0.000 0.000 0.187 1.480
2003 0.000 1206.106 0.000 0.796 0.000 1.800 1.433 0.000 0.000 0.160 1.272
2004 0.000 1037.251 0.000 0.685 0.000 1.800 1.232 0.000 0.000 0.138 1.094
2005 0.000 892.036 0.000 0.589 0.000 1.800 1.060 0.000 0.000 0.118 0.941
SUB 0.000 17195.960 0.000 11.349 0.000 1.800 20.429 0.000 0.000 2.287 18.140
REM 0.000 3900.712 0.000 2.574 0.000 1.800 4.635 0.000 0.000 0.519 4.116
TOT 0.000 21096.672 0.000 13.924 0.000 1.800 25.064 0.000 0.000 2.806 22.256
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.457 1.429
1997 4.602 2.886
1998 7.307 2.257
1999 9.633 1.764
2000 11.633 1.379
2001 13.353 1.078
2002 14.833 0.843
2003 16.105 0.659
2004 17.199 0.515
2005 18.140 0.403
SUB 18.140 13.213
REM 22.256 1.255
TOT 22.256 14.468
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
OPELIKA GAS UNIT* P.W. % P.W., M$
ENSERCH EXPL CO INC OIL GAS ------ --------
OPELIKA ---------- ---------- 10.00 0.079
TX, HENDERSON GROSS WELLS 0.000 1.000 15.00 0.063
GROSS CUM. MB & MMF 0.000 2024.651 20.00 0.053
AANGL GROSS RES. MB & MMF 0.000 1115.021 25.00 0.046
SEQ: 635 GROSS ULT. MB & MMF 0.000 3139.672 30.00 0.041
ORRI INIT W.I 0.000 LIFE/YR 34.750 RATE-OF-RETURN, % 100.00
INIT N.I 0.006 OPC/W 1000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 40.296 0.000 0.003 0.000 2.490 0.006 0.000 0.000 0.000 0.006
1997 0.000 91.186 0.000 0.006 0.000 2.490 0.015 0.000 0.000 0.002 0.013
1998 0.000 83.891 0.000 0.005 0.000 2.490 0.013 0.000 0.000 0.001 0.012
1999 0.000 77.180 0.000 0.005 0.000 2.490 0.012 0.000 0.000 0.001 0.011
2000 0.000 71.005 0.000 0.005 0.000 2.490 0.011 0.000 0.000 0.001 0.010
2001 0.000 65.325 0.000 0.004 0.000 2.490 0.011 0.000 0.000 0.001 0.009
2002 0.000 60.099 0.000 0.004 0.000 2.490 0.010 0.000 0.000 0.001 0.009
2003 0.000 55.291 0.000 0.004 0.000 2.490 0.009 0.000 0.000 0.001 0.008
2004 0.000 50.868 0.000 0.003 0.000 2.490 0.008 0.000 0.000 0.001 0.007
2005 0.000 46.798 0.000 0.003 0.000 2.490 0.008 0.000 0.000 0.001 0.007
SUB 0.000 641.939 0.000 0.041 0.000 2.490 0.103 0.000 0.000 0.010 0.092
REM 0.000 473.082 0.000 0.031 0.000 2.490 0.076 0.000 0.000 0.001 0.066
TOT 0.000 1115.021 0.000 0.072 0.000 2.490 0.179 0.000 0.000 0.011 0.158
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.006 0.006
1997 0.019 0.012
1998 0.031 0.010
1999 0.042 0.008
2000 0.052 0.007
2001 0.061 0.006
2002 0.070 0.005
2003 0.078 0.004
2004 0.085 0.003
2005 0.092 0.003
SUB 0.092 0.064
REM 0.158 0.012
TOT 0.158 0.076
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
OSR-HALLIDAY UNIT P.W. % P.W., M$
EDISTO EXPL & PROD CO OIL GAS ------ --------
HALLIDAY (WOODBINE) ---------- ---------- 10.00 2.507
TX, MADISON GROSS WELLS 1.000 0.000 15.00 2.062
WOODBINE GROSS CUM. MB & MMF 6090.339 7389.417 20.00 1.760
GROSS RES. MB & MMF 1395.285 1079.864 25.00 1.543
SEQ: 545 GROSS ULT. MB & MMF 7485.624 8469.281 30.00 1.379
ORRI INIT W.I 0.000 LIFE/YR 27.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.016 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 63.594 58.430 0.010 0.010 19.739 2.220 0.228 0.000 0.000 0.020 0.208
1997 141.704 128.164 0.023 0.021 19.740 2.220 0.506 0.000 0.000 0.044 0.462
1998 127.533 112.785 0.021 0.019 19.740 2.220 0.455 0.000 0.000 0.039 0.415
1999 114.780 99.250 0.019 0.016 19.740 2.220 0.408 0.000 0.000 0.036 0.373
2000 103.302 87.340 0.017 0.014 19.740 2.220 0.367 0.000 0.000 0.032 0.335
2001 92.972 76.860 0.015 0.013 19.741 2.220 0.330 0.000 0.000 0.029 0.301
2002 83.675 67.636 0.014 0.011 19.740 2.220 0.296 0.000 0.000 0.025 0.270
2003 75.307 59.520 0.012 0.010 19.740 2.220 0.266 0.000 0.000 0.023 0.243
2004 67.776 52.378 0.011 0.009 19.739 2.220 0.239 0.000 0.000 0.021 0.218
2005 60.999 46.092 0.010 0.008 19.741 2.220 0.215 0.000 0.000 0.018 0.196
SUB 931.642 788.455 0.153 0.130 19.740 2.220 3.310 0.000 0.000 0.287 3.021
REM 463.643 291.406 0.076 0.048 19.740 2.220 1.609 0.000 0.000 0.138 1.470
TOT 1395.285 1079.861 0.229 0.177 19.740 2.220 4.919 0.000 0.000 0.425 4.491
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.208 0.204
1997 0.670 0.424
1998 1.085 0.346
1999 1.458 0.283
2000 1.793 0.231
2001 2.094 0.189
2002 2.364 0.154
2003 2.607 0.126
2004 2.825 0.103
2005 3.021 0.084
SUB 3.021 2.144
REM 4.491 0.364
TOT 4.491 2.508
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PADGITT, JAMES T. 3 P.W. % P.W., M$
LATEX OIL GAS ------ --------
PADGITT ---------- ---------- 10.00 55.263
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 50.078
CONNELL GROSS CUM. MB & MMF 4.628 1736.221 20.00 45.866
17 AZSCWHI GROSS RES. MB & MMF 0.000 702.042 25.00 42.388
SEQ: 243 GROSS ULT. MB & MMF 4.628 2438.263 30.00 39.474
INIT W.I 8.203 LIFE/YR 10.333 RATE-OF-RETURN, % 100.00
INIT N.I 6.245 OPC/W 2367 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 69.232 0.000 4.324 0.000 2.370 10.247 0.971 0.000 0.959 8.318
1997 0.000 142.107 0.000 8.875 0.000 2.370 21.033 2.330 0.000 1.966 16.737
1998 0.000 113.686 0.000 7.100 0.000 2.370 16.827 2.330 0.000 1.573 12.923
1999 0.000 90.949 0.000 5.680 0.000 2.370 13.461 2.330 0.000 1.259 9.873
2000 0.000 72.759 0.000 4.544 0.000 2.370 10.769 2.330 0.000 1.007 7.432
2001 0.000 58.207 0.000 3.635 0.000 2.370 8.615 2.330 0.000 0.805 5.480
2002 0.000 46.566 0.000 2.908 0.000 2.370 6.892 2.330 0.000 0.645 3.918
2003 0.000 37.253 0.000 2.326 0.000 2.370 5.514 2.330 0.000 0.516 2.668
2004 0.000 29.802 0.000 1.861 0.000 2.370 4.411 2.330 0.000 0.413 1.669
2005 0.000 23.842 0.000 1.489 0.000 2.370 3.529 2.330 0.000 0.330 0.869
SUB 0.000 684.403 0.000 42.742 0.000 2.370 101.298 21.941 0.000 9.473 69.887
REM 0.000 17.641 0.000 1.102 0.000 2.370 2.611 2.136 0.000 0.244 0.231
TOT 0.000 702.044 0.000 43.844 0.000 2.370 103.909 24.077 0.000 9.717 70.118
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.318 8.158
1997 25.055 15.373
1998 37.978 10.792
1999 47.851 7.496
2000 55.283 5.130
2001 60.763 3.439
2002 64.681 2.236
2003 67.349 1.385
2004 69.018 0.788
2005 69.887 0.374
SUB 69.887 55.171
REM 70.118 0.092
TOT 70.118 55.263
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PHILLIPS EDWARDS P.W. % P.W., M$
GERMANY OPERATING COMPAN OIL GAS ------ --------
EDWARDS WEST ---------- ---------- 10.00 156.545
TX, ECTOR GROSS WELLS 1.000 0.000 15.00 141.089
CANYON GROSS CUM. MB & MMF 172.501 195.072 20.00 128.546
GROSS RES. MB & MMF 31.912 45.569 25.00 118.205
SEQ: 215 GROSS ULT. MB & MMF 204.413 240.641 30.00 109.559
INIT W.I 100.000 LIFE/YR 9.250 RATE-OF-RETURN, % 100.00
INIT N.I 70.275 OPC/W 2500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.201 3.408 1.547 2.395 19.740 2.560 36.669 12.500 0.000 3.257 20.913
1997 4.905 7.476 3.447 5.254 19.740 2.560 81.495 30.000 0.000 7.233 44.262
1998 4.415 6.579 3.102 4.623 19.740 2.560 73.077 30.000 0.000 6.480 36.597
1999 3.973 5.790 2.792 4.069 19.740 2.560 65.532 30.000 0.000 5.806 29.727
2000 3.576 5.095 2.513 3.580 19.740 2.560 58.771 30.000 0.000 5.201 23.570
2001 3.218 4.483 2.262 3.151 19.740 2.560 52.710 30.000 0.000 4.661 18.050
2002 2.896 3.945 2.035 2.773 19.740 2.560 47.278 30.000 0.000 4.177 13.102
2003 2.607 3.472 1.832 2.440 19.740 2.560 42.408 30.000 0.000 3.743 8.665
2004 2.346 3.055 1.649 2.147 19.740 2.560 38.043 30.000 0.000 3.354 4.688
2005 1.775 2.264 1.247 1.591 19.740 2.560 28.694 25.000 0.000 2.528 1.166
SUB 31.912 45.567 22.426 32.023 19.740 2.560 524.677 277.500 0.000 46.440 200.740
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 31.912 45.567 22.426 32.023 19.740 2.560 524.677 277.500 0.000 46.440 200.740
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 20.913 20.507
1997 65.175 40.633
1998 101.772 30.546
1999 131.499 22.560
2000 155.069 16.264
2001 173.119 11.327
2002 186.221 7.478
2003 194.886 4.501
2004 199.574 2.219
2005 200.740 0.509
SUB 200.740 156.544
REM 200.740 0.000
TOT 200.740 156.544
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-1 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 0.000
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.000
CANYON GROSS CUM. MB & MMF 0.001 2011.252 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 556 GROSS ULT. MB & MMF 0.001 2011.252 30.00 0.000
INIT W.I 75.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-2 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 5.301
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 4.702
CANYON GROSS CUM. MB & MMF 0.052 215.244 20.00 4.226
GROSS RES. MB & MMF 0.000 44.066 25.00 3.841
SEQ: 557 GROSS ULT. MB & MMF 0.052 259.310 30.00 3.525
INIT W.I 75.000 LIFE/YR 10.167 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 2.087 0.000 1.191 0.000 2.160 2.574 1.688 0.000 0.288 0.598
1997 0.000 4.901 0.000 2.799 0.000 2.160 6.045 4.050 0.000 0.677 1.318
1998 0.000 4.754 0.000 2.715 0.000 2.160 5.864 4.050 0.000 0.657 1.157
1999 0.000 4.612 0.000 2.633 0.000 2.160 5.688 4.050 0.000 0.637 1.001
2000 0.000 4.473 0.000 2.554 0.000 2.160 5.517 4.050 0.000 0.618 0.849
2001 0.000 4.339 0.000 2.478 0.000 2.160 5.352 4.050 0.000 0.599 0.702
2002 0.000 4.209 0.000 2.403 0.000 2.160 5.191 4.050 0.000 0.581 0.560
2003 0.000 4.083 0.000 2.331 0.000 2.160 5.035 4.050 0.000 0.564 0.421
2004 0.000 3.960 0.000 2.261 0.000 2.160 4.884 4.050 0.000 0.547 0.287
2005 0.000 3.841 0.000 2.193 0.000 2.160 4.738 4.050 0.000 0.530 0.157
SUB 0.000 41.259 0.000 23.559 0.000 2.160 50.888 38.138 0.000 5.698 7.050
REM 0.000 2.805 0.000 1.602 0.000 2.160 3.460 3.038 0.000 0.387 0.035
TOT 0.000 44.064 0.000 25.161 0.000 2.160 54.348 41.176 0.000 6.085 7.085
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.598 0.586
1997 1.916 1.209
1998 3.073 0.965
1999 4.074 0.759
2000 4.923 0.586
2001 5.625 0.440
2002 6.185 0.319
2003 6.606 0.219
2004 6.893 0.136
2005 7.050 0.068
SUB 7.050 5.287
REM 7.085 0.014
TOT 7.085 5.301
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-3 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 0.519
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.505
CANYON GROSS CUM. MB & MMF 0.000 2857.120 20.00 0.491
GROSS RES. MB & MMF 0.000 8.210 25.00 0.478
SEQ: 558 GROSS ULT. MB & MMF 0.000 2865.330 30.00 0.467
INIT W.I 75.000 LIFE/YR 2.083 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1.728 0.000 0.986 0.000 2.160 2.131 1.688 0.000 0.239 0.205
1997 0.000 3.969 0.000 2.266 0.000 2.160 4.895 4.050 0.000 0.548 0.297
1998 0.000 2.513 0.000 1.435 0.000 2.160 3.099 2.700 0.000 0.347 0.052
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 8.210 0.000 4.687 0.000 2.160 10.125 8.438 0.000 1.134 0.554
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 8.210 0.000 4.687 0.000 2.160 10.125 8.438 0.000 1.134 0.554
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.205 0.201
1997 0.502 0.274
1998 0.554 0.045
1999 0.554 0.000
2000 0.554 0.000
2001 0.554 0.000
2002 0.554 0.000
2003 0.554 0.000
2004 0.554 0.000
2005 0.554 0.000
SUB 0.554 0.520
REM 0.554 0.000
TOT 0.554 0.520
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-4 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 0.000
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.000
CANYON GROSS CUM. MB & MMF 0.000 41.159 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 555 GROSS ULT. MB & MMF 0.000 41.159 30.00 0.000
INIT W.I 75.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-5 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 35.532
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 30.121
CANYON GROSS CUM. MB & MMF 0.071 661.479 20.00 26.167
GROSS RES. MB & MMF 0.000 117.060 25.00 23.177
SEQ: 559 GROSS ULT. MB & MMF 0.071 778.539 30.00 20.849
INIT W.I 75.000 LIFE/YR 17.250 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 4.541 0.000 2.593 0.000 2.100 5.445 1.688 0.000 0.609 3.148
1997 0.000 10.433 0.000 5.957 0.000 2.100 12.510 4.050 0.000 1.401 7.059
1998 0.000 9.807 0.000 5.600 0.000 2.100 11.759 4.050 0.000 1.317 6.392
1999 0.000 9.219 0.000 5.264 0.000 2.100 11.054 4.050 0.000 1.238 5.766
2000 0.000 8.665 0.000 4.948 0.000 2.100 10.390 4.050 0.000 1.163 5.177
2001 0.000 8.145 0.000 4.651 0.000 2.100 9.767 4.050 0.000 1.094 4.623
2002 0.000 7.657 0.000 4.372 0.000 2.100 9.181 4.050 0.000 1.029 4.103
2003 0.000 7.197 0.000 4.110 0.000 2.100 8.630 4.050 0.000 0.966 3.614
2004 0.000 6.766 0.000 3.863 0.000 2.100 8.112 4.050 0.000 0.908 3.154
2005 0.000 6.360 0.000 3.631 0.000 2.100 7.626 4.050 0.000 0.854 2.721
SUB 0.000 78.790 0.000 44.988 0.000 2.100 94.474 38.138 0.000 10.579 45.757
REM 0.000 38.269 0.000 21.852 0.000 2.100 45.889 31.725 0.000 5.140 9.023
TOT 0.000 117.059 0.000 66.839 0.000 2.100 140.363 69.863 0.000 15.719 54.780
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 3.148 3.087
1997 10.207 6.476
1998 16.599 5.331
1999 22.365 4.372
2000 27.542 3.568
2001 32.165 2.897
2002 36.268 2.337
2003 39.882 1.872
2004 43.036 1.485
2005 45.757 1.165
SUB 45.757 32.590
REM 54.780 2.942
TOT 54.780 35.532
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-6 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 3.602
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 2.848
CANYON GROSS CUM. MB & MMF 0.000 485.139 20.00 2.362
10 BBB TC GROSS RES. MB & MMF 0.000 166.725 25.00 2.027
SEQ: 560 GROSS ULT. MB & MMF 0.000 651.864 30.00 1.783
INIT W.I 0.000 LIFE/YR 24.583 RATE-OF-RETURN, % 100.00
INIT N.I 2.284 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.430 0.000 0.124 0.000 2.160 0.268 0.000 0.000 0.030 0.238
1997 0.000 12.474 0.000 0.285 0.000 2.160 0.615 0.000 0.000 0.069 0.546
1998 0.000 11.726 0.000 0.268 0.000 2.160 0.578 0.000 0.000 0.064 0.514
1999 0.000 11.022 0.000 0.252 0.000 2.160 0.544 0.000 0.000 0.061 0.483
2000 0.000 10.361 0.000 0.237 0.000 2.160 0.511 0.000 0.000 0.057 0.454
2001 0.000 9.739 0.000 0.222 0.000 2.160 0.480 0.000 0.000 0.054 0.427
2002 0.000 9.155 0.000 0.209 0.000 2.160 0.452 0.000 0.000 0.051 0.401
2003 0.000 8.606 0.000 0.197 0.000 2.160 0.425 0.000 0.000 0.048 0.377
2004 0.000 8.089 0.000 0.185 0.000 2.160 0.399 0.000 0.000 0.045 0.354
2005 0.000 7.604 0.000 0.174 0.000 2.160 0.375 0.000 0.000 0.042 0.333
SUB 0.000 94.206 0.000 2.152 0.000 2.160 4.647 0.000 0.000 0.521 4.127
REM 0.000 72.523 0.000 1.656 0.000 2.160 3.579 0.000 0.000 0.399 3.177
TOT 0.000 166.729 0.000 3.808 0.000 2.160 8.226 0.000 0.000 0.920 7.304
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.238 0.233
1997 0.784 0.501
1998 1.298 0.428
1999 1.781 0.366
2000 2.235 0.313
2001 2.662 0.267
2002 3.063 0.228
2003 3.440 0.195
2004 3.794 0.167
2005 4.127 0.143
SUB 4.127 2.841
REM 7.304 0.761
TOT 7.304 3.602
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 10-7 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 5.753
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 5.570
CANYON GROSS CUM. MB & MMF 0.000 8.645 20.00 5.402
GROSS RES. MB & MMF 0.000 14.888 25.00 5.249
SEQ: 561 GROSS ULT. MB & MMF 0.000 23.533 30.00 5.109
INIT W.I 75.000 LIFE/YR 2.500 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.485 0.000 1.990 0.000 2.160 4.298 1.688 0.000 0.481 2.129
1997 0.000 6.525 0.000 3.725 0.000 2.160 8.047 4.050 0.000 0.902 3.096
1998 0.000 4.567 0.000 2.608 0.000 2.160 5.633 4.050 0.000 0.630 0.952
1999 0.000 0.312 0.000 0.178 0.000 2.160 0.385 0.338 0.000 0.043 0.004
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 14.889 0.000 8.501 0.000 2.160 18.363 10.126 0.000 2.056 6.181
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 14.889 0.000 8.501 0.000 2.160 18.363 10.126 0.000 2.056 6.181
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.129 2.089
1997 5.225 2.856
1998 6.177 0.805
1999 6.181 0.003
2000 6.181 0.000
2001 6.181 0.000
2002 6.181 0.000
2003 6.181 0.000
2004 6.181 0.000
2005 6.181 0.000
SUB 6.181 5.753
REM 6.181 0.000
TOT 6.181 5.753
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 2-1 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 57.514
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 46.931
CANYON GROSS CUM. MB & MMF 0.034 1028.101 20.00 39.721
GROSS RES. MB & MMF 0.000 185.346 25.00 34.540
SEQ: 565 GROSS ULT. MB & MMF 0.034 1213.447 30.00 30.656
INIT W.I 75.000 LIFE/YR 24.833 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.442 0.000 3.107 0.000 2.160 6.711 1.688 0.000 0.751 4.272
1997 0.000 12.595 0.000 7.192 0.000 2.160 15.534 4.050 0.000 1.740 9.744
1998 0.000 11.965 0.000 6.832 0.000 2.160 14.757 4.050 0.000 1.653 9.054
1999 0.000 11.367 0.000 6.490 0.000 2.160 14.019 4.050 0.000 1.570 8.399
2000 0.000 10.799 0.000 6.166 0.000 2.160 13.318 4.050 0.000 1.492 7.777
2001 0.000 10.259 0.000 5.858 0.000 2.160 12.652 4.050 0.000 1.417 7.185
2002 0.000 9.746 0.000 5.565 0.000 2.160 12.020 4.050 0.000 1.346 6.624
2003 0.000 9.259 0.000 5.286 0.000 2.160 11.419 4.050 0.000 1.278 6.090
2004 0.000 8.796 0.000 5.022 0.000 2.160 10.848 4.050 0.000 1.215 5.583
2005 0.000 8.356 0.000 4.771 0.000 2.160 10.305 4.050 0.000 1.154 5.101
SUB 0.000 98.584 0.000 56.289 0.000 2.160 121.583 38.138 0.000 13.616 69.829
REM 0.000 86.762 0.000 49.541 0.000 2.160 107.008 62.438 0.000 11.987 32.587
TOT 0.000 185.346 0.000 105.830 0.000 2.160 228.591 100.576 0.000 25.603 102.416
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 4.272 4.189
1997 14.016 8.937
1998 23.070 7.550
1999 31.469 6.367
2000 39.246 5.359
2001 46.431 4.502
2002 53.055 3.773
2003 59.145 3.153
2004 64.728 2.628
2005 69.829 2.183
SUB 69.829 48.641
REM 102.416 8.875
TOT 102.416 57.516
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 2-2 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 0.046
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.046
CANYON GROSS CUM. MB & MMF 0.000 472.502 20.00 0.045
GROSS RES. MB & MMF 0.000 2.200 25.00 0.045
SEQ: 562 GROSS ULT. MB & MMF 0.000 474.702 30.00 0.045
INIT W.I 75.000 LIFE/YR 0.583 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1.580 0.000 0.902 0.000 2.160 1.948 1.688 0.000 0.218 0.042
1997 0.000 0.621 0.000 0.354 0.000 2.160 0.765 0.675 0.000 0.085 0.005
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 2.201 0.000 1.256 0.000 2.160 2.713 2.363 0.000 0.303 0.047
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 2.201 0.000 1.256 0.000 2.160 2.713 2.363 0.000 0.303 0.047
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 0.042 0.042
1997 0.047 0.004
1998 0.047 0.000
1999 0.047 0.000
2000 0.047 0.000
2001 0.047 0.000
2002 0.047 0.000
2003 0.047 0.000
2004 0.047 0.000
2005 0.047 0.000
SUB 0.047 0.046
REM 0.047 0.000
TOT 0.047 0.046
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 2-4 P.W. % P.W., M$
O J B INC OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 63.773
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 51.341
CANYON GROSS CUM. MB & MMF 4.842 485.899 20.00 43.217
2 AVASQ GROSS RES. MB & MMF 2.899 446.017 25.00 37.518
SEQ: 554 GROSS ULT. MB & MMF 7.741 931.916 30.00 33.307
INIT W.I 25.000 LIFE/YR 35.167 RATE-OF-RETURN, % 100.00
INIT N.I 19.033 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.092 14.161 0.018 2.695 19.340 2.160 6.160 0.563 0.000 0.680 4.917
1997 0.205 31.519 0.039 5.999 19.340 2.160 13.712 1.350 0.000 1.515 10.847
1998 0.186 28.626 0.035 5.448 19.340 2.160 12.453 1.350 0.000 1.376 9.727
1999 0.171 26.279 0.033 5.002 19.340 2.160 11.432 1.350 0.000 1.263 8.819
2000 0.158 24.332 0.030 4.631 19.340 2.160 10.585 1.350 0.000 1.169 8.066
2001 0.147 22.688 0.028 4.318 19.340 2.160 9.870 1.350 0.000 1.091 7.430
2002 0.138 21.280 0.026 4.050 19.340 2.160 9.258 1.350 0.000 1.023 6.885
2003 0.130 20.005 0.025 3.808 19.340 2.160 8.703 1.350 0.000 0.962 6.392
2004 0.122 18.805 0.023 3.579 19.340 2.160 8.181 1.350 0.000 0.904 5.927
2005 0.115 17.677 0.022 3.364 19.340 2.160 7.690 1.350 0.000 0.849 5.490
SUB 1.464 225.372 0.279 42.894 19.340 2.160 98.044 12.713 0.000 10.832 74.500
REM 1.432 220.646 0.273 41.995 19.340 2.160 95.989 34.763 0.000 10.609 50.621
TOT 2.896 446.018 0.552 84.889 19.340 2.160 194.033 47.476 0.000 21.441 125.121
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.917 4.822
1997 15.764 9.952
1998 25.491 8.113
1999 34.310 6.686
2000 42.376 5.559
2001 49.806 4.655
2002 56.691 3.921
2003 63.083 3.309
2004 69.010 2.790
2005 74.500 2.349
SUB 74.500 52.156
REM 125.121 11.616
TOT 125.121 63.772
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 2-5 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 31.749
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 26.630
CANYON GROSS CUM. MB & MMF 0.000 288.170 20.00 22.955
2 AVASQ GROSS RES. MB & MMF 0.000 115.008 25.00 20.214
SEQ: 564 GROSS ULT. MB & MMF 0.000 403.178 30.00 18.102
INIT W.I 75.000 LIFE/YR 18.583 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 3.958 0.000 2.260 0.000 2.160 4.881 1.688 0.000 0.547 2.647
1997 0.000 9.160 0.000 5.230 0.000 2.160 11.297 4.050 0.000 1.265 5.982
1998 0.000 8.702 0.000 4.969 0.000 2.160 10.732 4.050 0.000 1.202 5.480
1999 0.000 8.267 0.000 4.720 0.000 2.160 10.196 4.050 0.000 1.142 5.004
2000 0.000 7.854 0.000 4.484 0.000 2.160 9.686 4.050 0.000 1.084 4.551
2001 0.000 7.461 0.000 4.260 0.000 2.160 9.202 4.050 0.000 1.030 4.121
2002 0.000 7.088 0.000 4.047 0.000 2.160 8.742 4.050 0.000 0.979 3.713
2003 0.000 6.733 0.000 3.845 0.000 2.160 8.305 4.050 0.000 0.930 3.324
2004 0.000 6.397 0.000 3.652 0.000 2.160 7.889 4.050 0.000 0.884 2.956
2005 0.000 6.077 0.000 3.470 0.000 2.160 7.495 4.050 0.000 0.839 2.605
SUB 0.000 71.697 0.000 40.937 0.000 2.160 88.425 38.138 0.000 9.902 40.383
REM 0.000 43.311 0.000 24.730 0.000 2.160 53.417 37.125 0.000 5.983 10.310
TOT 0.000 115.008 0.000 65.668 0.000 2.160 141.842 75.263 0.000 15.885 50.693
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.647 2.595
1997 8.629 5.487
1998 14.109 4.570
1999 19.113 3.794
2000 23.664 3.137
2001 27.785 2.582
2002 31.498 2.115
2003 34.822 1.722
2004 37.778 1.392
2005 40.383 1.115
SUB 40.383 28.509
REM 50.693 3.241
TOT 50.693 31.750
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 3-2 P.W. % P.W., M$
O J B INC OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 24.336
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 20.065
CANYON GROSS CUM. MB & MMF 9.636 1015.146 20.00 17.106
GROSS RES. MB & MMF 1.733 192.610 25.00 14.953
SEQ: 553 GROSS ULT. MB & MMF 11.369 1207.756 30.00 13.323
INIT W.I 25.000 LIFE/YR 23.333 RATE-OF-RETURN, % 100.00
INIT N.I 19.033 OPC/W 480 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.058 6.417 0.011 1.221 19.740 2.130 2.818 0.600 0.000 0.310 1.909
1997 0.133 14.742 0.025 2.806 19.740 2.130 6.475 1.440 0.000 0.711 4.324
1998 0.125 13.858 0.024 2.637 19.740 2.130 6.086 1.440 0.000 0.669 3.978
1999 0.117 13.026 0.022 2.479 19.740 2.130 5.721 1.440 0.000 0.628 3.653
2000 0.110 12.245 0.021 2.330 19.740 2.130 5.378 1.440 0.000 0.590 3.347
2001 0.104 11.510 0.020 2.191 19.740 2.130 5.055 1.440 0.000 0.555 3.060
2002 0.097 10.819 0.019 2.059 19.740 2.130 4.752 1.440 0.000 0.522 2.790
2003 0.092 10.170 0.017 1.936 19.740 2.130 4.467 1.440 0.000 0.491 2.536
2004 0.086 9.560 0.016 1.820 19.740 2.130 4.199 1.440 0.000 0.462 2.298
2005 0.081 8.986 0.015 1.710 19.740 2.130 3.947 1.440 0.000 0.433 2.073
SUB 1.003 111.333 0.191 21.190 19.740 2.130 48.898 13.560 0.000 5.371 29.968
REM 0.729 81.275 0.139 15.469 19.740 2.130 35.697 20.040 0.000 3.922 11.736
TOT 1.732 192.608 0.330 36.659 19.740 2.130 84.595 33.600 0.000 9.293 41.704
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.909 1.872
1997 6.233 3.966
1998 10.211 3.317
1999 13.864 2.769
2000 17.211 2.307
2001 20.271 1.917
2002 23.061 1.589
2003 25.597 1.313
2004 27.895 1.082
2005 29.968 0.887
SUB 29.968 21.019
REM 41.704 3.317
TOT 41.704 24.336
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 9-1 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 6.092
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 5.576
CANYON GROSS CUM. MB & MMF 0.000 1042.365 20.00 5.144
GROSS RES. MB & MMF 0.000 33.343 25.00 4.780
SEQ: 566 GROSS ULT. MB & MMF 0.000 1075.708 30.00 4.469
INIT W.I 75.000 LIFE/YR 7.167 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 2.369 0.000 1.353 0.000 2.160 2.922 1.688 0.000 0.327 0.907
1997 0.000 5.443 0.000 3.108 0.000 2.160 6.713 4.050 0.000 0.751 1.911
1998 0.000 5.117 0.000 2.922 0.000 2.160 6.311 4.050 0.000 0.706 1.554
1999 0.000 4.810 0.000 2.746 0.000 2.160 5.932 4.050 0.000 0.664 1.218
2000 0.000 4.521 0.000 2.581 0.000 2.160 5.576 4.050 0.000 0.624 0.901
2001 0.000 4.250 0.000 2.427 0.000 2.160 5.241 4.050 0.000 0.587 0.604
2002 0.000 3.995 0.000 2.281 0.000 2.160 4.927 4.050 0.000 0.552 0.325
2003 0.000 2.838 0.000 1.620 0.000 2.160 3.500 3.038 0.000 0.393 0.071
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 33.343 0.000 19.038 0.000 2.160 41.122 29.026 0.000 4.604 7.491
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 33.343 0.000 19.038 0.000 2.160 41.122 29.026 0.000 4.604 7.491
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.907 0.890
1997 2.818 1.755
1998 4.372 1.297
1999 5.590 0.924
2000 6.491 0.623
2001 7.095 0.380
2002 7.420 0.186
2003 7.491 0.037
2004 7.491 0.000
2005 7.491 0.000
SUB 7.491 6.092
REM 7.491 0.000
TOT 7.491 6.092
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AN SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE, V. I. 9-3 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 0.046
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.046
CANYON GROSS CUM. MB & MMF 0.000 208.257 20.00 0.045
GROSS RES. MB & MMF 0.000 2.200 25.00 0.045
SEQ: 567 GROSS ULT. MB & MMF 0.000 210.457 30.00 0.045
INIT W.I 75.000 LIFE/YR 0.583 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1.580 0.000 0.902 0.000 2.160 1.948 1.688 0.000 0.218 0.042
1997 0.000 0.621 0.000 0.354 0.000 2.160 0.765 0.675 0.000 0.085 0.005
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 2.201 0.000 1.256 0.000 2.160 2.713 2.363 0.000 0.303 0.047
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 2.201 0.000 1.256 0.000 2.160 2.713 2.363 0.000 0.303 0.047
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.042 0.042
1997 0.047 0.004
1998 0.047 0.000
1999 0.047 0.000
2000 0.047 0.000
2001 0.047 0.000
2002 0.047 0.000
2003 0.047 0.000
2004 0.047 0.000
2005 0.047 0.000
SUB 0.047 0.046
REM 0.047 0.000
TOT 0.047 0.046
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 7-1 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 132.998
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 106.030
CANYON GROSS CUM. MB & MMF 0.063 783.346 20.00 88.584
GROSS RES. MB & MMF 0.000 331.718 25.00 76.436
SEQ: 569 GROSS ULT. MB & MMF 0.063 1115.064 30.00 67.508
INIT W.I 75.000 LIFE/YR 37.250 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 277 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 9.379 0.000 5.355 0.000 2.160 11.567 1.039 0.000 1.296 9.233
1997 0.000 21.546 0.000 12.303 0.000 2.160 26.574 2.493 0.000 2.976 21.104
1998 0.000 20.253 0.000 11.564 0.000 2.160 24.979 2.493 0.000 2.797 19.688
1999 0.000 19.038 0.000 10.871 0.000 2.160 23.480 2.493 0.000 2.630 18.358
2000 0.000 17.896 0.000 10.218 0.000 2.160 22.072 2.493 0.000 2.472 17.107
2001 0.000 16.822 0.000 9.605 0.000 2.160 20.747 2.493 0.000 2.324 15.931
2002 0.000 15.813 0.000 9.029 0.000 2.160 19.502 2.493 0.000 2.185 14.825
2003 0.000 14.864 0.000 8.487 0.000 2.160 18.332 2.493 0.000 2.053 13.786
2004 0.000 13.972 0.000 7.978 0.000 2.160 17.232 2.493 0.000 1.930 12.809
2005 0.000 13.134 0.000 7.499 0.000 2.160 16.198 2.493 0.000 1.814 11.891
SUB 0.000 162.717 0.000 92.909 0.000 2.160 200.683 23.476 0.000 22.477 154.732
REM 0.000 169.001 0.000 96.496 0.000 2.160 208.431 69.389 0.000 23.343 115.701
TOT 0.000 331.718 0.000 189.406 0.000 2.160 409.114 92.865 0.000 45.820 270.433
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 9.233 9.052
1997 30.337 19.357
1998 50.025 16.416
1999 68.383 13.915
2000 85.490 11.788
2001 101.421 9.980
2002 116.246 8.443
2003 130.032 7.138
2004 142.841 6.029
2005 154.732 5.088
SUB 154.732 107.206
REM 270.433 25.794
TOT 270.433 133.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 7-2 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 2.560
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 2.330
CANYON GROSS CUM. MB & MMF 0.027 154.756 20.00 2.140
GROSS RES. MB & MMF 0.000 13.298 25.00 1.980
SEQ: 570 GROSS ULT. MB & MMF 0.027 168.054 30.00 1.845
INIT W.I 75.000 LIFE/YR 7.750 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 163 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.888 0.000 0.507 0.000 2.160 1.096 0.611 0.000 0.123 0.362
1997 0.000 2.041 0.000 1.166 0.000 2.160 2.517 1.467 0.000 0.282 0.769
1998 0.000 1.919 0.000 1.096 0.000 2.160 2.366 1.467 0.000 0.265 0.634
1999 0.000 1.804 0.000 1.030 0.000 2.160 2.224 1.467 0.000 0.249 0.508
2000 0.000 1.695 0.000 0.968 0.000 2.160 2.091 1.467 0.000 0.234 0.390
2001 0.000 1.594 0.000 0.910 0.000 2.160 1.966 1.467 0.000 0.220 0.278
2002 0.000 1.498 0.000 0.855 0.000 2.160 1.848 1.467 0.000 0.207 0.174
2003 0.000 1.408 0.000 0.804 0.000 2.160 1.737 1.467 0.000 0.194 0.075
2004 0.000 0.450 0.000 0.257 0.000 2.160 0.555 0.489 0.000 0.063 0.004
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 13.297 0.000 7.593 0.000 2.160 16.400 11.369 0.000 1.837 3.194
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 13.297 0.000 7.593 0.000 2.160 16.400 11.369 0.000 1.837 3.194
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.362 0.355
1997 1.131 0.706
1998 1.765 0.530
1999 2.273 0.386
2000 2.663 0.269
2001 2.941 0.175
2002 3.115 0.099
2003 3.190 0.039
2004 3.194 0.002
2005 3.194 0.000
SUB 3.194 2.561
REM 3.194 0.000
TOT 3.194 2.561
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 7-3 P.W. % P.W., M$
O J B INC OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 6.652
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 5.067
CANYON GROSS CUM. MB & MMF 0.000 280.331 20.00 4.111
GROSS RES. MB & MMF 0.000 191.188 25.00 3.478
SEQ: 568 GROSS ULT. MB & MMF 0.000 471.519 30.00 3.028
ORRI INIT W.I 0.000 LIFE/YR 31.417 RATE-OF-RETURN, % 100.00
INIT N.I 4.392 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 4.462 0.000 0.196 0.000 2.180 0.427 0.000 0.000 0.048 0.379
1997 0.000 10.404 0.000 0.457 0.000 2.180 0.996 0.000 0.000 0.112 0.885
1998 0.000 9.988 0.000 0.439 0.000 2.180 0.956 0.000 0.000 0.107 0.849
1999 0.000 9.588 0.000 0.421 0.000 2.180 0.918 0.000 0.000 0.103 0.815
2000 0.000 9.205 0.000 0.404 0.000 2.180 0.881 0.000 0.000 0.099 0.783
2001 0.000 8.837 0.000 0.388 0.000 2.180 0.846 0.000 0.000 0.094 0.751
2002 0.000 8.483 0.000 0.373 0.000 2.180 0.812 0.000 0.000 0.091 0.721
2003 0.000 8.144 0.000 0.358 0.000 2.180 0.780 0.000 0.000 0.087 0.692
2004 0.000 7.818 0.000 0.343 0.000 2.180 0.749 0.000 0.000 0.084 0.665
2005 0.000 7.505 0.000 0.330 0.000 2.180 0.719 0.000 0.000 0.081 0.638
SUB 0.000 84.434 0.000 3.708 0.000 2.180 8.084 0.000 0.000 0.906 7.178
REM 0.000 106.756 0.000 4.689 0.000 2.180 10.224 0.000 0.000 1.148 9.077
TOT 0.000 191.190 0.000 8.397 0.000 2.180 18.308 0.000 0.000 2.054 16.255
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.379 0.372
1997 1.264 0.811
1998 2.113 0.708
1999 2.928 0.618
2000 3.711 0.539
2001 4.462 0.471
2002 5.183 0.411
2003 5.875 0.358
2004 6.540 0.313
2005 7.178 0.273
SUB 7.178 4.874
REM 16.255 1.779
TOT 16.255 6.653
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 7-4 P.W. % P.W., M$
SANDIA PRODUCTION CO INC OIL GAS ------ --------
OZONA (CANYON) ------- ------- 10.00 1.538
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 1.358
CANYON GROSS CUM. MB & MMF 0.034 148.173 20.00 1.214
GROSS RES. MB & MMF 0.000 24.456 25.00 1.096
SEQ: 574 GROSS ULT. MB & MMF 0.034 172.629 30.00 0.999
ORRI INIT W.I 0.000 LIFE/YR 6.917 RATE-OF-RETURN, % 100.00
INIT N.I 4.392 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1.731 0.000 0.076 0.000 2.160 0.164 0.000 0.000 0.018 0.146
1997 0.000 4.008 0.000 0.176 0.000 2.160 0.380 0.000 0.000 0.043 0.338
1998 0.000 3.807 0.000 0.167 0.000 2.160 0.361 0.000 0.000 0.040 0.321
1999 0.000 3.617 0.000 0.159 0.000 2.160 0.343 0.000 0.000 0.039 0.305
2000 0.000 3.436 0.000 0.151 0.000 2.160 0.326 0.000 0.000 0.036 0.289
2001 0.000 3.264 0.000 0.143 0.000 2.160 0.310 0.000 0.000 0.034 0.275
2002 0.000 3.101 0.000 0.136 0.000 2.160 0.294 0.000 0.000 0.033 0.261
2003 0.000 1.492 0.000 0.066 0.000 2.160 0.142 0.000 0.000 0.016 0.126
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 24.456 0.000 1.074 0.000 2.160 2.320 0.000 0.000 0.259 2.061
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 24.456 0.000 1.074 0.000 2.160 2.320 0.000 0.000 0.259 2.061
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.146 0.143
1997 0.484 0.310
1998 0.805 0.267
1999 1.110 0.231
2000 1.399 0.199
2001 1.674 0.172
2002 1.935 0.149
2003 2.061 0.067
2004 2.061 0.000
2005 2.061 0.000
SUB 2.061 1.538
REM 2.061 0.000
TOT 2.061 1.538
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 7-5 P.W. % P.W., M$
SANDIA PRODUCTION CO INC OIL GAS ------ --------
OZONA (CANYON) ------- ------- 10.00 18.341
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 14.819
CANYON GROSS CUM. MB & MMF 0.086 344.894 20.00 12.465
GROSS RES. MB & MMF 0.000 213.110 25.00 10.796
SEQ: 575 GROSS ULT. MB & MMF 0.086 558.004 30.00 9.556
INIT W.I 18.750 LIFE/YR 27.750 RATE-OF-RETURN, % 100.00
INIT N.I 15.234 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.936 0.000 0.904 0.000 2.160 1.953 0.422 0.000 0.219 1.313
1997 0.000 13.740 0.000 2.093 0.000 2.160 4.521 1.013 0.000 0.506 3.002
1998 0.000 13.053 0.000 1.989 0.000 2.160 4.295 1.013 0.000 0.481 2.802
1999 0.000 12.400 0.000 1.889 0.000 2.160 4.080 1.013 0.000 0.457 2.611
2000 0.000 11.780 0.000 1.795 0.000 2.160 3.876 1.013 0.000 0.434 2.430
2001 0.000 11.191 0.000 1.705 0.000 2.160 3.683 1.013 0.000 0.412 2.258
2002 0.000 10.632 0.000 1.620 0.000 2.160 3.498 1.013 0.000 0.391 2.094
2003 0.000 10.100 0.000 1.539 0.000 2.160 3.324 1.013 0.000 0.372 1.939
2004 0.000 9.595 0.000 1.462 0.000 2.160 3.157 1.013 0.000 0.354 1.791
2005 0.000 9.115 0.000 1.389 0.000 2.160 2.999 1.013 0.000 0.336 1.651
SUB 0.000 107.542 0.000 16.383 0.000 2.160 35.386 9.539 0.000 3.962 21.891
REM 0.000 105.565 0.000 16.082 0.000 2.160 34.738 18.572 0.000 3.889 12.282
TOT 0.000 213.107 0.000 32.465 0.000 2.160 70.124 28.111 0.000 7.851 34.173
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 1.313 1.287
1997 4.315 2.754
1998 7.117 2.336
1999 9.728 1.979
2000 12.158 1.674
2001 14.416 1.414
2002 16.510 1.193
2003 18.449 1.004
2004 20.240 0.843
2005 21.891 0.707
SUB 21.891 15.191
REM 234.173 3.150
TOT 234.173 18.341
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 7A-1 P.W. % P.W., M$
AMAX OIL & GAS INC OIL GAS ------ --------
OZONA ---------- ---------- 10.00 0.040
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.040
CANYON GROSS CUM. MB & MMF 0.000 111.386 20.00 0.039
GROSS RES. MB & MMF 0.000 1.455 25.00 0.039
SEQ: 571 GROSS ULT. MB & MMF 0.000 112.841 30.00 0.038
INIT W.I 75.000 LIFE/YR 1.000 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 156 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.617 0.000 0.352 0.000 1.960 0.691 0.585 0.000 0.078 0.028
1997 0.000 0.838 0.000 0.478 0.000 1.960 0.937 0.819 0.000 0.105 0.013
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 1.455 0.000 0.831 0.000 1.960 1.628 1.404 0.000 0.183 0.041
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 1.455 0.000 0.831 0.000 1.960 1.628 1.404 0.000 0.183 0.041
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.028 0.028
1997 0.041 0.013
1998 0.041 0.000
1999 0.041 0.000
2000 0.041 0.000
2001 0.041 0.000
2002 0.041 0.000
2003 0.041 0.000
2004 0.041 0.000
2005 0.041 0.000
SUB 0.041 0.041
REM 0.041 0.000
TOT 0.041 0.041
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 8-1 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 55.365
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 46.454
CANYON GROSS CUM. MB & MMF 0.000 666.548 20.00 40.053
GROSS RES. MB & MMF 0.000 200.723 25.00 35.275
SEQ: 572 GROSS ULT. MB & MMF 0.000 867.271 30.00 31.594
INIT W.I 75.000 LIFE/YR 18.500 RATE-OF-RETURN, % 100.00
INIT N.I 57.098 OPC/W 790 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 6.926 0.000 3.954 0.000 2.160 8.542 2.963 0.000 0.957 4.623
1997 0.000 16.030 0.000 9.153 0.000 2.160 19.770 7.110 0.000 2.215 10.446
1998 0.000 15.229 0.000 8.695 0.000 2.160 18.782 7.110 0.000 2.104 9.568
1999 0.000 14.467 0.000 8.261 0.000 2.160 17.843 7.110 0.000 1.998 8.734
2000 0.000 13.744 0.000 7.848 0.000 2.160 16.951 7.110 0.000 1.898 7.942
2001 0.000 13.057 0.000 7.455 0.000 2.160 16.103 7.110 0.000 1.804 7.190
2002 0.000 12.404 0.000 7.082 0.000 2.160 15.298 7.110 0.000 1.713 6.475
2003 0.000 11.784 0.000 6.728 0.000 2.160 14.533 7.110 0.000 1.628 5.795
2004 0.000 11.194 0.000 6.392 0.000 2.160 13.806 7.110 0.000 1.546 5.150
2005 0.000 10.635 0.000 6.072 0.000 2.160 13.116 7.110 0.000 1.469 4.537
SUB 0.000 125.470 0.000 71.641 0.000 2.160 154.744 66.953 0.000 17.332 70.460
REM 0.000 75.255 0.000 42.969 0.000 2.160 92.812 64.583 0.000 10.396 17.837
TOT 0.000 200.725 0.000 114.610 0.000 2.160 247.556 131.536 0.000 27.728 88.297
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.623 4.532
1997 15.069 9.582
1998 24.637 7.979
1999 33.371 6.622
2000 41.313 5.474
2001 48.503 4.505
2002 54.978 3.688
2003 60.773 3.001
2004 65.923 2.425
2005 70.460 1.942
SUB 70.460 49.750
REM 88.297 5.611
TOT 88.297 55.361
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 8-2 P.W. % P.W., M$
SANDIA PRODUCTION CO INC OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 0.000
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 0.000
CANYON GROSS CUM. MB & MMF 0.000 70.609 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 576 GROSS ULT. MB & MMF 0.000 70.609 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 0.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 4.392 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PIERCE-HENDERSON 8-3 P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
OZONA (CANYON) ---------- ---------- 10.00 10.301
TX, CROCKETT GROSS WELLS 0.000 1.000 15.00 7.910
CANYON GROSS CUM. MB & MMF 0.000 474.202 20.00 6.469
8 TC GROSS RES. MB & MMF 0.000 643.274 25.00 5.507
SEQ: 573 GROSS ULT. MB & MMF 0.000 1117.476 30.00 4.818
ORRI INIT W.I 0.000 LIFE/YR 48.417 RATE-OF-RETURN, % 100.00
INIT N.I 2.284 OPC/W 450 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 14.841 0.000 0.339 0.000 2.070 0.702 0.000 0.000 0.079 0.623
1997 0.000 34.350 0.000 0.785 0.000 2.070 1.624 0.000 0.000 0.182 1.442
1998 0.000 32.633 0.000 0.745 0.000 2.070 1.543 0.000 0.000 0.173 1.370
1999 0.000 31.001 0.000 0.708 0.000 2.070 1.466 0.000 0.000 0.164 1.302
2000 0.000 29.451 0.000 0.673 0.000 2.070 1.392 0.000 0.000 0.156 1.236
2001 0.000 27.979 0.000 0.639 0.000 2.070 1.323 0.000 0.000 0.148 1.175
2002 0.000 26.580 0.000 0.607 0.000 2.070 1.257 0.000 0.000 0.140 1.116
2003 0.000 25.251 0.000 0.577 0.000 2.070 1.194 0.000 0.000 0.134 1.060
2004 0.000 23.988 0.000 0.548 0.000 2.070 1.134 0.000 0.000 0.127 1.007
2005 0.000 22.789 0.000 0.520 0.000 2.070 1.077 0.000 0.000 0.121 0.957
SUB 0.000 268.863 0.000 6.141 0.000 2.070 12.712 0.000 0.000 1.424 11.288
REM 0.000 374.409 0.000 8.551 0.000 2.070 17.702 0.000 0.000 1.981 15.718
TOT 0.000 643.272 0.000 14.692 0.000 2.070 30.414 0.000 0.000 3.405 27.006
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.623 0.611
1997 2.065 1.323
1998 3.435 1.142
1999 4.737 0.986
2000 5.973 0.852
2001 7.148 0.736
2002 8.264 0.635
2003 9.324 0.549
2004 10.331 0.474
2005 11.288 0.409
SUB 11.288 7.717
REM 27.006 2.583
TOT 27.006 10.300
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
PORTER P.W. % P.W., M$
CRAWLEY PETROLEUM CORP OIL GAS ------- --------
TWITTY (GRANITE WASH) ---------- ---------- 10.00 117.005
TX, WHEELER GROSS WELL 1.000 0.000 15.00 93.107
GRANITE WASH GROSS CUM. MB & MMF 21.495 1199.309 20.00 77.547
35 A-8 H/GN GROSS RES. MB & MMF 16.837 715.585 25.00 66.706
SEQ: 546 GROSS ULT. MB & MMF 38.332 1914.894 30.00 58.753
INIT W.I 33.333 LIFE/YR 30.833 RATE-OF-RETURN, % 100.00
INIT N.I 27.329 OPC/W 1886 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.397 16.856 0.108 4.607 19.740 2.200 12.274 3.142 0.000 1.316 7.818
1997 0.925 39.304 0.253 10.742 19.740 2.200 28.620 7.540 0.000 3.067 18.014
1998 0.888 37.732 0.243 10.312 19.740 2.200 27.476 7.540 0.000 2.944 16.992
1999 0.852 36.223 0.233 9.899 19.740 2.200 26.377 7.540 0.000 2.826 16.010
2000 0.818 34.774 0.224 9.503 19.740 2.200 25.322 7.540 0.000 2.713 15.068
2001 0.785 33.383 0.215 9.123 19.740 2.200 24.309 7.540 0.000 2.604 14.164
2002 0.754 32.048 0.206 8.758 19.740 2.200 23.336 7.540 0.000 2.500 13.296
2003 0.724 30.766 0.198 8.408 19.740 2.200 22.403 7.540 0.000 2.400 12.463
2004 0.695 29.535 0.190 8.072 19.740 2.200 21.507 7.540 0.000 2.304 11.662
2005 0.667 28.354 0.182 7.749 19.740 2.200 20.646 7.540 0.000 2.212 10.894
SUB 7.505 318.975 2.051 87.173 19.740 2.200 232.270 71.002 0.000 24.886 136.381
REM 9.332 396.610 2.550 108.390 19.740 2.200 288.803 161.482 0.000 30.944 96.378
TOT 16.837 715.585 4.601 195.563 19.740 2.200 521.073 232.484 0.000 55.830 232.759
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.818 7.665
1997 25.832 16.521
1998 42.824 14.167
1999 58.834 12.135
2000 73.902 10.383
2001 88.066 8.873
2002 101.362 7.572
2003 113.825 6.452
2004 125.487 5.489
2005 136.381 4.661
SUB 136.381 93.918
REM 232.759 23.086
TOT 232.759 117.004
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
ROBERTSON-BLUESTEM P.W. % P.W., M$
PRECISION OPERATING INC OIL GAS ------- ---------
SEPTEMBER (9300) ---------- ---------- 10.00 100.375
TX, GRAYSON GROSS WELLS 1.000 0.000 15.00 77.942
9300 GROSS CUM. MB & MMF 29.087 503.581 20.00 64.126
GROSS RES. MB & MMF 38.320 1751.759 25.00 54.783
SEQ: 547 GROSS ULT. MB & MMF 67.407 2255.340 30.00 48.047
INIT W.I 10.813 LIFE/YR 53.583 RATE-OF-RETURN, % 100.00
INIT N.I 7.599 OPC/W 807 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.866 39.576 0.066 3.007 19.940 2.070 7.536 0.436 0.000 0.807 6.293
1997 2.004 91.601 0.152 6.960 19.940 2.070 17.444 1.047 0.000 1.869 14.528
1998 1.904 87.021 0.145 6.612 19.940 2.070 16.572 1.047 0.000 1.775 13.749
1999 1.808 82.670 0.137 6.282 19.940 2.070 15.743 1.047 0.000 1.687 13.009
2000 1.718 78.536 0.131 5.968 19.940 2.070 14.956 1.047 0.000 1.602 12.306
2001 1.632 74.609 0.124 5.669 19.940 2.070 14.208 1.047 0.000 1.523 11.639
2002 1.550 70.879 0.118 5.386 19.940 2.070 13.498 1.047 0.000 1.446 11.004
2003 1.473 67.335 0.112 5.116 19.940 2.070 12.823 1.047 0.000 1.374 10.402
2004 1.399 63.968 0.106 4.861 19.940 2.070 12.182 1.047 0.000 1.305 9.829
2005 1.329 60.770 0.101 4.618 19.940 2.070 11.573 1.047 0.000 1.241 9.285
SUB 15.683 716.965 1.192 54.479 19.940 2.070 136.535 9.859 0.000 14.629 112.044
REM 22.638 1034.795 1.720 78.629 19.940 2.070 197.059 46.244 0.000 21.113 129.698
TOT 38.321 1751.760 2.912 133.107 19.940 2.070 333.594 56.103 0.000 35.742 241.742
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 6.293 6.170
1997 20.821 13.323
1998 34.570 11.463
1999 47.579 9.860
2000 59.885 8.479
2001 71.524 7.290
2002 82.528 6.266
2003 92.930 5.385
2004 102.759 4.626
2005 112.044 3.973
SUB 112.044 76.835
REM 241.742 23.543
TOT 241.742 100.378
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AN SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SACROC UNIT P.W. % P.W., M$
PENNZOIL EXPL & PROD CO OIL GAS ------ --------
KELLY-SNYDER ---------- ---------- 10.00 20.726
TX, SCURRY GROSS WELLS 1.000 0.000 15.00 17.737
GROSS CUM. MB & MMF 0.000 0.000 20.00 15.569
1A GROSS RES. MB & MMF 18463.676 0.000 25.00 13.928
SEQ: 670 GROSS ULT. MB & MMF 18463.676 0.000 30.00 12.645
ORRI INIT W.I 0.000 LIFE/YR 20.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.009 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1256.961 0.000 0.115 0.000 20.510 0.000 2.364 0.000 0.000 0.199 2.165
1997 2691.120 0.000 0.247 0.000 20.510 0.000 5.061 0.000 0.000 0.426 4.635
1998 2287.452 0.000 0.210 0.000 20.510 0.000 4.302 0.000 0.000 0.362 3.940
1999 1944.334 0.000 0.178 0.000 20.510 0.000 3.657 0.000 0.000 0.308 3.349
2000 1652.684 0.000 0.152 0.000 20.510 0.000 3.108 0.000 0.000 0.262 2.847
2001 1404.782 0.000 0.129 0.000 20.510 0.000 2.642 0.000 0.000 0.223 2.420
2002 1194.065 0.000 0.109 0.000 20.510 0.000 2.246 0.000 0.000 0.189 2.057
2003 1014.955 0.000 0.093 0.000 20.510 0.000 1.909 0.000 0.000 0.161 1.748
2004 862.712 0.000 0.079 0.000 20.510 0.000 1.623 0.000 0.000 0.137 1.486
2005 733.305 0.000 0.067 0.000 20.510 0.000 1.379 0.000 0.000 0.116 1.263
SUB 15042.370 0.000 1.379 0.000 20.510 0.000 28.291 0.000 0.000 2.383 25.910
REM 3421.309 0.000 0.314 0.000 20.510 0.000 6.434 0.000 0.000 0.539 5.894
TOT 18463.679 0.000 1.693 0.000 20.510 0.000 34.725 0.000 0.000 2.922 31.804
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.165 2.123
1997 6.800 4.255
1998 10.740 3.288
1999 14.089 2.540
2000 16.936 1.963
2001 19.356 1.517
2002 21.413 1.172
2003 23.161 0.906
2004 24.647 0.700
2005 25.910 0.541
SUB 25.910 19.005
REM 31.804 1.722
TOT 31.804 20.727
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SMITH, A. P.W. % P.W., M$
ORYX ENERGY CO OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 2.762
TX, GREGG GROSS WELLS 1.000 0.000 15.00 2.284
GROSS CUM. MB & MMF 205.658 58.046 20.00 1.943
GROSS RES. MB & MMF 99.732 37.400 25.00 1.691
SEQ: 548 GROSS ULT. MB & MMF 305.390 95.446 30.00 1.498
ORRI INIT W.I 0.000 LIFE/YR 17.833 RATE-OF-RETURN, % 100.00
INIT N.I 0.238 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.000 1.500 0.010 0.004 20.221 2.090 0.200 0.000 0.000 0.017 0.183
1997 9.600 3.600 0.023 0.009 20.220 2.090 0.479 0.000 0.000 0.041 0.439
1998 9.600 3.600 0.023 0.009 20.220 2.090 0.479 0.000 0.000 0.041 0.439
1999 9.600 3.600 0.023 0.009 20.220 2.090 0.479 0.000 0.000 0.041 0.439
2000 9.600 3.600 0.023 0.009 20.220 2.090 0.479 0.000 0.000 0.041 0.439
2001 9.468 3.550 0.023 0.008 20.220 2.090 0.473 0.000 0.000 0.040 0.432
2002 8.280 3.105 0.020 0.007 20.220 2.090 0.413 0.000 0.000 0.035 0.378
2003 7.038 2.639 0.017 0.006 20.220 2.090 0.351 0.000 0.000 0.030 0.321
2004 5.983 2.243 0.014 0.005 20.221 2.090 0.299 0.000 0.000 0.025 0.273
2005 5.085 1.907 0.012 0.005 20.220 2.090 0.254 0.000 0.000 0.022 0.232
SUB 78.254 29.344 0.186 0.070 20.220 2.090 3.906 0.000 0.000 0.333 3.575
REM 21.477 8.054 0.051 0.019 20.220 2.090 1.073 0.000 0.000 0.091 0.980
TOT 99.731 37.398 0.237 0.089 20.220 2.090 4.979 0.000 0.000 0.424 4.555
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.183 0.179
1997 0.622 0.402
1998 1.061 0.365
1999 1.500 0.332
2000 1.939 0.302
2001 2.371 0.271
2002 2.749 0.216
2003 3.070 0.167
2004 3.343 0.129
2005 3.575 0.099
SUB 3.575 2.462
REM 4.555 0.298
TOT 4.555 2.760
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SNYDER - STATE OF TEXAS GAS UNIT P.W. % P.W., M$
SNYDER OIL CORP OIL GAS ------ --------
WORSHAM-BAYER (DEVONIAN) ---------- ---------- 10.00 472.010
TX, REEVES GROSS WELLS 1.000 0.000 15.00 350.050
DEVONIAN GROSS CUM. MB & MMF 31.876 11946.917 20.00 280.554
GROSS RES. MB & MMF 27.744 10727.873 25.00 235.655
SEQ: 49 GROSS ULT. MB & MMF 59.620 22674.790 30.00 204.242
INIT W.I 9.375 LIFE/YR 97.417 RATE-OF-RETURN, % 100.00
INIT N.I 7.183 OPC/W 1938 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.369 142.628 0.026 10.245 19.740 2.780 29.004 0.908 0.000 3.234 24.862
1997 0.866 335.012 0.062 24.064 19.740 2.780 68.126 2.180 0.000 7.596 58.350
1998 0.840 324.962 0.060 23.342 19.740 2.780 66.082 2.180 0.000 7.368 56.534
1999 0.815 315.213 0.059 22.642 19.740 2.780 64.100 2.180 0.000 7.147 54.773
2000 0.791 305.757 0.057 21.962 19.740 2.780 62.177 2.180 0.000 6.933 53.064
2001 0.767 296.584 0.055 21.304 19.740 2.780 60.312 2.180 0.000 6.725 51.407
2002 0.744 287.686 0.053 20.665 19.740 2.780 58.502 2.180 0.000 6.523 49.799
2003 0.722 279.056 0.052 20.045 19.740 2.780 56.747 2.180 0.000 6.327 48.240
2004 0.700 270.684 0.050 19.443 19.740 2.780 55.045 2.180 0.000 6.138 46.727
2005 0.679 262.564 0.049 18.860 19.740 2.780 53.393 2.180 0.000 5.954 45.260
SUB 7.293 2820.146 0.524 202.571 19.740 2.780 573.488 20.528 0.000 63.945 489.016
REM 20.451 7907.726 1.469 568.012 19.740 2.780 1608.071 191.855 0.000 179.294 1236.912
TOT 27.744 10727.872 1.993 770.583 19.740 2.780 2181.559 212.383 0.000 243.239 1725.928
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 24.862 24.376
1997 83.212 53.502
1998 139.746 47.124
1999 194.519 41.506
2000 247.583 36.555
2001 298.990 32.194
2002 348.789 28.352
2003 397.029 24.968
2004 443.756 21.986
2005 489.016 19.360
SUB 489.016 329.923
REM 1725.928 142.089
TOT 1725.928 472.012
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SORRELL P.W. % P.W., M$
PHILLIPS PETROLEUM CO OIL GAS ------ --------
EAST TEXAS ---------- ---------- 10.00 2.316
TX, GREGG GROSS WELLS 1.000 0.000 15.00 1.922
GROSS CUM. MB & MMF 200.761 55.145 20.00 1.638
GROSS RES. MB & MMF 72.989 21.897 25.00 1.427
SEQ: 549 GROSS ULT. MB & MMF 273.750 77.042 30.00 1.265
ORRI INIT W.I 0.000 LIFE/YR 16.083 RATE-OF-RETURN, % 100.00
INIT N.I 0.275 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.000 0.900 0.008 0.002 19.861 1.930 0.169 0.000 0.000 0.014 0.154
1997 7.200 2.160 0.020 0.006 19.860 1.930 0.405 0.000 0.000 0.034 0.371
1998 7.200 2.160 0.020 0.006 19.860 1.930 0.405 0.000 0.000 0.034 0.371
1999 7.200 2.160 0.020 0.006 19.860 1.930 0.405 0.000 0.000 0.034 0.371
2000 7.200 2.160 0.020 0.006 19.860 1.930 0.405 0.000 0.000 0.034 0.371
2001 7.101 2.130 0.020 0.006 19.860 1.930 0.399 0.000 0.000 0.034 0.366
2002 6.210 1.863 0.017 0.005 19.860 1.930 0.349 0.000 0.000 0.029 0.320
2003 5.279 1.584 0.015 0.004 19.860 1.930 0.297 0.000 0.000 0.025 0.272
2004 4.487 1.346 0.012 0.004 19.860 1.930 0.252 0.000 0.000 0.022 0.231
2005 3.814 1.144 0.010 0.003 19.861 1.930 0.215 0.000 0.000 0.018 0.196
SUB 58.691 17.607 0.162 0.048 19.860 1.930 3.301 0.000 0.000 0.278 3.023
REM 14.298 4.291 0.039 0.012 19.860 1.930 0.804 0.000 0.000 0.068 0.736
TOT 72.989 21.898 0.201 0.060 19.860 1.930 4.105 0.000 0.000 0.346 3.759
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.154 0.151
1997 0.525 0.340
1998 0.896 0.309
1999 1.267 0.281
2000 1.638 0.255
2001 2.004 0.229
2002 2.324 0.182
2003 2.596 0.141
2004 2.827 0.109
2005 3.023 0.084
SUB 3.023 2.081
REM 3.759 0.235
TOT 3.759 2.316
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STATE 904 L-3 GAS UNIT P.W. % P.W., M$
NATIONAL ENERGY GROUP OIL GAS ------ --------
G O M ST-904 (FRIO 8200) ---------- ---------- 10.00 735.666
TX, NUECES GROSS WELLS 1.000 0.000 15.00 690.668
FRIO 8200 GROSS CUM. MB & MMF 30.002 3127.949 20.00 651.308
GROSS RES. MB & MMF 17.762 1953.826 25.00 616.625
SEQ: 48 GROSS ULT. MB & MMF 47.764 5081.775 30.00 585.861
INIT W.I 24.780 LIFE/YR 5.333 RATE-OF-RETURN, % 100.00
INIT N.I 18.580 OPC/W 4546 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.500 275.000 0.464 51.094 20.670 2.660 145.510 5.633 0.000 16.030 123.848
1997 6.000 660.000 1.115 122.625 20.670 2.660 349.224 13.518 0.000 38.472 297.234
1998 5.407 594.741 1.005 110.500 20.670 2.660 314.693 13.518 0.000 34.668 266.508
1999 2.485 273.333 0.462 50.784 20.670 2.660 144.628 13.518 0.000 15.932 115.177
2000 0.994 109.333 0.185 20.314 20.670 2.660 57.851 13.518 0.000 6.373 37.960
2001 0.377 41.420 0.070 7.696 20.670 2.660 21.916 12.392 0.000 2.415 7.110
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 17.763 1953.827 3.300 363.011 20.670 2.660 1033.822 72.097 0.000 113.890 847.837
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 17.763 1953.827 3.300 363.011 20.670 2.660 1033.822 72.097 0.000 113.890 847.837
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 123.848 121.420
1997 421.082 272.470
1998 687.590 222.883
1999 802.767 87.953
2000 840.727 26.397
2001 847.837 4.543
2002 847.837 0.000
2003 847.837 0.000
2004 847.837 0.000
2005 847.837 0.000
SUB 847.837 735.666
REM 847.837 0.000
TOT 847.837 735.666
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STATE 904 l-1 GAS UNIT P.W. % P.W., M$
NATIONAL ENERGY GROUP OIL GAS ------ --------
G O M ST-904 (FRIO 1-A) ---------- ---------- 10.00 469.449
TX, NUECES GROSS WELLS 1.000 0.000 15.00 428.056
FRIO 1-A GROSS CUM. MB & MMF 136.217 2245.272 20.00 393.301
GROSS RES. MB & MMF 67.549 1179.508 25.00 363.811
SEQ: 47 GROSS ULT. MB & MMF 203.766 3424.780 30.00 338.551
INIT W.I 22.466 LIFE/YR 6.833 RATE-OF-RETURN, % 100.00
INIT N.I 16.713 OPC/W 5382 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 6.322 110.392 1.057 18.450 20.670 2.660 70.916 6.046 0.000 7.334 57.536
1997 14.633 255.511 2.446 42.703 20.670 2.660 164.140 14.510 0.000 16.977 132.654
1998 13.901 242.735 2.323 40.568 20.670 2.660 155.933 14.510 0.000 16.127 125.296
1999 13.206 230.599 2.207 38.540 20.670 2.660 148.137 14.510 0.000 15.321 118.306
2000 10.628 185.590 1.776 31.017 20.670 2.660 119.223 14.510 0.000 12.331 92.383
2001 5.450 95.164 0.911 15.905 20.670 2.660 61.134 14.510 0.000 6.323 40.301
2002 2.725 47.582 0.455 7.952 20.670 2.660 30.567 14.510 0.000 3.162 12.896
2003 0.684 11.936 0.114 1.995 20.670 2.660 7.668 6.046 0.000 0.793 0.829
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 67.549 1179.509 11.289 197.130 20.670 2.660 757.718 99.152 0.000 78.368 580.201
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 67.549 1179.509 11.289 197.130 20.670 2.660 757.718 99.152 0.000 78.368 580.201
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 57.536 56.412
1997 190.190 121.657
1998 315.486 104.463
1999 433.792 89.668
2000 526.175 63.961
2001 566.476 25.419
2002 579.372 7.425
2003 580.201 0.444
2004 580.201 0.000
2005 580.201 0.000
SUB 580.201 469.449
REM 580.201 0.000
TOT 580.201 469.449
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
STATE TRACT 562-L P.W. % P.W., M$
TRI UNION DEV CORP OIL GAS ------ --------
MATAGORDA BLOCK 562-L (6470) ---------- ---------- 10.00 15.841
TX, CALHOUN GROSS WELLS 1.000 0.000 15.00 14.650
6470 GROSS CUM. MB & MMF 321.394 144.385 20.00 13.646
GROSS RES. MB & MMF 26.923 12.115 25.00 12.790
SEQ: 550 GROSS ULT. MB & MMF 348.317 156.500 30.00 12.054
ORRI INIT W.I 0.000 LIFE/YR 6.167 RATE-OF-RETURN, % 100.00
INIT N.I 3.748 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.182 1.882 0.157 0.071 19.740 1.930 3.230 0.000 0.000 0.276 2.954
1997 7.829 3.523 0.293 0.132 19.740 1.930 6.048 0.000 0.000 0.516 5.531
1998 5.481 2.466 0.205 0.092 19.740 1.930 4.233 0.000 0.000 0.361 3.872
1999 3.836 1.726 0.144 0.065 19.740 1.930 2.963 0.000 0.000 0.253 2.710
2000 2.685 1.208 0.101 0.045 19.740 1.930 2.074 0.000 0.000 0.177 1.897
2001 1.880 0.846 0.070 0.032 19.740 1.930 1.452 0.000 0.000 0.124 1.328
2002 1.030 0.463 0.039 0.017 19.740 1.930 0.795 0.000 0.000 0.068 0.727
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 26.923 12.114 1.009 0.454 19.740 1.930 20.795 0.000 0.000 1.775 19.019
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 26.923 12.114 1.009 0.454 19.740 1.930 20.795 0.000 0.000 1.775 19.019
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.954 2.898
1997 8.485 5.085
1998 12.357 3.236
1999 15.067 2.059
2000 16.964 1.310
2001 18.292 0.834
2002 19.019 0.420
2003 19.019 0.000
2004 19.019 0.000
2005 19.019 0.000
SUB 19.019 15.842
REM 19.019 0.000
TOT 19.019 15.842
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
TCGU7 (LEOPARD, C.W. 1) P.W. % P.W., M$
ENSERCH EXPL CO INC OIL GAS ------ --------
TRI-CITIES (TRAVIS PEAK LOWER) ---------- ---------- 10.00 2.964
TX, HENDERSON GROSS WELLS 0.000 1.000 15.00 2.483
TRAVIS PEAK LOWER GROSS CUM. MB & MMF 0.000 13602.433 20.00 2.146
GROSS RES. MB & MMF 0.000 1408.811 25.00 1.898
SEQ: 674 GROSS ULT. MB & MMF 0.000 15011.244 30.00 1.708
INIT W.I 0.000 LIFE/YR 21.750 RATE-OF-RETURN, % 100.00
INIT N.I 0.147 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 77.907 0.000 0.114 0.000 2.660 0.305 0.000 0.000 0.034 0.270
1997 0.000 170.886 0.000 0.251 0.000 2.660 0.668 0.000 0.000 0.075 0.593
1998 0.000 150.380 0.000 0.221 0.000 2.660 0.588 0.000 0.000 0.066 0.522
1999 0.000 132.334 0.000 0.194 0.000 2.660 0.517 0.000 0.000 0.058 0.459
2000 0.000 116.454 0.000 0.171 0.000 2.660 0.455 0.000 0.000 0.051 0.404
2001 0.000 102.479 0.000 0.151 0.000 2.660 0.401 0.000 0.000 0.045 0.356
2002 0.000 90.182 0.000 0.133 0.000 2.660 0.353 0.000 0.000 0.039 0.313
2003 0.000 79.360 0.000 0.117 0.000 2.660 0.310 0.000 0.000 0.034 0.275
2004 0.000 69.837 0.000 0.103 0.000 2.660 0.273 0.000 0.000 0.030 0.242
2005 0.000 61.456 0.000 0.090 0.000 2.660 0.240 0.000 0.000 0.027 0.213
SUB 0.000 1051.275 0.000 1.545 0.000 2.660 4.110 0.000 0.000 0.459 3.647
REM 0.000 357.539 0.000 0.525 0.000 2.660 1.398 0.000 0.000 0.156 1.241
TOT 0.000 1408.814 0.000 2.070 0.000 2.660 5.508 0.000 0.000 0.615 4.888
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.270 0.265
1997 0.863 0.544
1998 1.385 0.435
1999 1.844 0.348
2000 2.248 0.279
2001 2.604 0.223
2002 2.917 0.178
2003 3.192 0.143
2004 3.434 0.114
2005 3.647 0.091
SUB 3.647 2.620
REM 4.888 0.341
TOT 4.888 2.961
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY -1829- P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 229.246
TX, WARD GROSS WELLS 4.000 0.000 15.00 187.290
WOLFCAMP GROSS CUM. MB & MMF 468.367 978.156 20.00 158.637
GROSS RES. MB & MMF 361.967 773.294 25.00 138.016
SEQ: 51 GROSS ULT. MB & MMF 830.334 1751.450 30.00 122.542
INIT W.I 13.180 LIFE/YR 24.500 RATE-OF-RETURN, % 100.00
INIT N.I 9.410 OPC/W 2100 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 10.699 22.857 1.007 2.151 20.550 2.660 26.410 6.920 0.000 2.382 17.109
1997 24.763 52.903 2.330 4.978 20.550 2.660 61.128 16.607 0.000 5.513 39.008
1998 23.525 50.258 2.214 4.729 20.550 2.660 58.071 16.607 0.000 5.237 36.227
1999 22.349 47.745 2.103 4.493 20.550 2.660 55.168 16.607 0.000 4.975 33.585
2000 21.231 45.358 1.998 4.268 20.550 2.660 52.409 16.607 0.000 4.727 31.076
2001 20.170 43.090 1.898 4.055 20.550 2.660 49.789 16.607 0.000 4.490 28.692
2002 19.161 40.935 1.803 3.852 20.550 2.660 47.300 16.607 0.000 4.266 26.427
2003 18.203 38.889 1.713 3.659 20.550 2.660 44.935 16.607 0.000 4.052 24.275
2004 17.293 36.944 1.627 3.476 20.550 2.660 42.688 16.607 0.000 3.850 22.231
2005 16.428 35.097 1.546 3.303 20.550 2.660 40.553 16.607 0.000 3.657 20.289
SUB 193.822 414.076 18.239 38.965 20.550 2.660 478.451 156.383 0.000 43.149 278.919
REM 168.144 359.219 15.822 33.802 20.550 2.660 415.067 250.489 0.000 37.436 127.144
TOT 361.966 773.295 34.061 72.767 20.550 2.660 893.518 406.872 0.000 80.585 406.063
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 17.109 16.775
1997 56.117 35.779
1998 92.344 30.208
1999 125.929 25.459
2000 157.005 21.416
2001 185.697 17.976
2002 212.124 15.052
2003 236.399 12.570
2004 258.630 10.465
2005 278.919 8.683
SUB 278.919 194.383
REM 406.063 34.866
TOT 406.063 229.249
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
UNIVERSITY 10-18 #A-6 -PUD P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ------- ------- 10.00 90.004
TX, WARD GROSS WELLS 0.000 1.000 15.00 78.664
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 69.434
SW/4-NE/4 SEC10 GROSS RES. MB & MMF 29.993 817.248 25.00 61.800
SEQ: 250 GROSS ULT. MB & MMF 29.993 817.248 30.00 55.394
INIT W.I 10.000 LIFE/YR 10.833 RATE-OF-RETURN, % 100.00
INIT N.I 7.800 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 33.000 0.000 -33.000
1997 16.520 182.601 1.289 14.243 19.740 2.660 63.322 3.600 0.000 6.384 53.338
1998 7.423 145.681 0.579 11.363 19.740 2.660 41.655 3.600 0.000 4.348 33.708
1999 3.335 116.226 0.260 9.066 19.740 2.660 29.250 3.600 0.000 3.133 22.517
2000 1.499 92.727 0.117 7.233 19.740 2.660 21.546 3.600 0.000 2.349 15.598
2001 0.673 73.978 0.053 5.770 19.740 2.660 16.386 3.600 0.000 1.806 10.980
2002 0.303 59.021 0.024 4.604 19.740 2.660 12.712 3.600 0.000 1.411 7.701
2003 0.136 47.088 0.011 3.673 19.739 2.660 9.979 3.600 0.000 1.111 5.267
2004 0.061 37.567 0.005 2.930 19.740 2.660 7.888 3.600 0.000 0.881 3.408
2005 0.027 29.971 0.002 2.338 19.740 2.660 6.261 3.600 0.000 0.700 1.961
SUB 29.977 784.860 2.338 61.219 19.740 2.660 208.999 32.400 33.000 22.123 121.478
REM 0.015 32.387 0.001 2.526 19.732 2.660 6.743 5.100 0.000 0.754 0.889
TOT 29.992 817.247 2.339 63.745 19.740 2.660 215.742 37.500 33.000 22.877 122.367
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 -33.000 -31.968
1997 20.338 49.083
1998 54.046 28.185
1999 76.563 17.110
2000 92.161 10.772
2001 103.141 6.893
2002 110.842 4.396
2003 116.109 2.734
2004 119.517 1.609
2005 121.478 0.843
SUB 121.478 89.657
REM 122.367 0.347
TOT 122.367 90.004
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
UNIVERSITY 10-18 #A-7-PUD P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ------- ------- 10.00 88.586
TX, WARD GROSS WELLS 0.000 1.000 15.00 76.853
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 67.356
SW/4-NE/4 SEC10 GROSS RES. MB & MMF 29.993 817.248 25.00 59.544
SEQ: 251 GROSS ULT. MB & MMF 29.993 817.248 30.00 53.024
INIT W.I 10.000 LIFE/YR 11.000 RATE-OF-RETURN, % 100.00
INIT N.I 7.800 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 14.597 154.958 1.139 12.087 19.740 2.660 54.627 3.000 33.000 5.492 13.134
1998 8.482 151.270 0.662 11.799 19.740 2.660 44.445 3.600 0.000 4.615 36.231
1999 3.811 120.685 0.297 9.413 19.740 2.660 30.908 3.600 0.000 3.298 24.009
2000 1.712 96.284 0.134 7.510 19.740 2.660 22.614 3.600 0.000 2.460 16.554
2001 0.769 76.817 0.060 5.992 19.740 2.660 17.123 3.600 0.000 1.885 11.638
2002 0.346 61.285 0.027 4.780 19.740 2.660 13.248 3.600 0.000 1.469 8.179
2003 0.155 48.894 0.012 3.814 19.740 2.660 10.384 3.600 0.000 1.156 5.627
2004 0.070 39.008 0.005 3.043 19.738 2.660 8.201 3.600 0.000 0.916 3.685
2005 0.031 31.121 0.002 2.427 19.743 2.660 6.505 3.600 0.000 0.727 2.178
SUB 29.973 780.322 2.338 60.865 19.740 2.660 208.055 31.800 33.000 22.018 121.235
REM 0.018 36.924 0.001 2.880 19.750 2.660 7.689 5.700 0.000 0.860 1.128
TOT 29.991 817.246 2.339 63.745 19.740 2.660 215.744 37.500 33.000 22.878 122.363
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 13.134 10.600
1998 49.365 30.297
1999 73.374 18.245
2000 89.928 11.433
2001 101.566 7.307
2002 109.745 4.668
2003 115.372 2.921
2004 119.057 1.740
2005 121.235 0.936
SUB 121.235 88.147
REM 122.363 0.439
TOT 122.363 88.586
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
UNIVERSITY 10-18 #B-8-PUD P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ------- ------- 10.00 83.771
TX, WARD GROSS WELLS 0.000 1.000 15.00 72.860
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 63.993
SW/4-NE/4 SEC10 GROSS RES. MB & MMF 29.992 813.953 25.00 56.672
SEQ: 252 GROSS ULT. MB & MMF 29.992 813.953 30.00 50.542
INIT W.I 10.000 LIFE/YR 10.750 RATE-OF-RETURN, % 100.00
INIT N.I 7.500 OPC/W 3000 UNDISC NET/INVEST 4.48
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 15.591 168.910 1.169 12.668 19.740 2.660 56.780 3.300 33.000 5.717 14.763
1998 7.935 148.450 0.595 11.134 19.740 2.660 41.363 3.600 0.000 4.306 33.457
1999 3.565 118.435 0.267 8.883 19.740 2.660 28.906 3.600 0.000 3.091 22.216
2000 1.602 94.489 0.120 7.087 19.740 2.660 21.222 3.600 0.000 2.311 15.311
2001 0.720 75.384 0.054 5.654 19.740 2.660 16.105 3.600 0.000 1.774 10.731
2002 0.323 60.142 0.024 4.511 19.740 2.660 12.477 3.600 0.000 1.384 7.493
2003 0.145 47.982 0.011 3.599 19.739 2.660 9.788 3.600 0.000 1.090 5.097
2004 0.065 38.281 0.005 2.871 19.738 2.660 7.734 3.600 0.000 0.863 3.270
2005 0.029 30.541 0.002 2.291 19.736 2.660 6.136 3.600 0.000 0.686 1.850
SUB 29.975 782.614 2.248 58.696 19.740 2.660 200.511 32.100 33.000 21.222 114.188
REM 0.016 31.339 0.001 2.350 19.734 2.660 6.276 4.800 0.000 0.703 0.773
TOT 29.991 813.953 2.249 61.046 19.740 2.660 206.787 36.900 33.000 21.925 114.961
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 14.763 12.034
1998 48.220 27.977
1999 70.436 16.882
2000 85.747 10.575
2001 96.478 6.737
2002 103.971 4.277
2003 109.068 2.646
2004 112.338 1.544
2005 114.188 0.795
SUB 114.188 83.467
REM 114.961 0.303
TOT 114.961 83.770
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 10-18 #B-9 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ------- ------- 10.00 87.885
TX, WARD GROSS WELLS 0.000 1.000 15.00 75.963
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 66.341
SW/4-NE/4 SEC10 GROSS RES. MB & MMF 29.993 817.248 25.00 58.447
SEQ: 253 GROSS ULT. MB & MMF 29.993 817.248 30.00 51.878
INIT W.I 10.000 LIFE/YR 11.083 RATE-OF-RETURN, % 100.00
INIT N.I 7.800 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 13.536 140.742 1.056 10.978 19.740 2.660 50.042 2.700 33.000 5.025 9.318
1998 9.066 154.145 0.707 12.023 19.740 2.660 45.942 3.600 0.000 4.757 37.585
1999 4.074 122.979 0.318 9.592 19.740 2.660 31.788 3.600 0.000 3.385 24.802
2000 1.830 98.114 0.143 7.653 19.740 2.660 23.175 3.600 0.000 2.517 17.058
2001 0.822 78.276 0.064 6.106 19.740 2.660 17.507 3.600 0.000 1.925 11.982
2002 0.370 62.450 0.029 4.871 19.740 2.660 13.526 3.600 0.000 1.499 8.427
2003 0.166 49.823 0.013 3.886 19.739 2.660 10.593 3.600 0.000 1.179 5.814
2004 0.075 39.750 0.006 3.100 19.740 2.660 8.362 3.600 0.000 0.934 3.829
2005 0.034 31.713 0.003 2.474 19.740 2.660 6.631 3.600 0.000 0.741 2.290
SUB 29.973 777.992 2.338 60.683 19.740 2.660 207.566 31.500 33.000 21.962 121.105
REM 0.020 39.258 0.002 3.062 19.744 2.660 8.177 6.000 0.000 0.915 1.262
TOT 29.993 817.250 2.339 63.745 19.740 2.660 215.743 37.500 33.000 22.877 122.367
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 9.318 7.195
1998 46.903 31.430
1999 71.705 18.848
2000 88.763 11.781
2001 100.745 7.522
2002 109.172 4.810
2003 114.986 3.017
2004 118.815 1.808
2005 121.105 0.984
SUB 121.105 87.395
REM 122.367 0.489
TOT 122.367 87.884
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 10-18 1-U P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (FUSSELMAN) ------- ------- 10.00 1743.860
TX, WARD GROSS WELLS 0.000 1.000 15.00 1562.816
FUSSELMAN GROSS CUM. MB & MMF 0.000 79987.384 20.00 1413.922
10 18ULAND GROSS RES. MB & MMF 0.000 14498.209 25.00 1289.980
SEQ: 52 GROSS ULT. MB & MMF 0.000 94485.592 30.00 1185.672
INIT W.I 8.340 LIFE/YR 8.833 RATE-OF-RETURN, % 100.00
INIT N.I 6.510 OPC/W 2703 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 1100.000 0.000 71.610 0.000 2.600 186.186 1.127 0.000 13.964 171.095
1997 0.000 2640.000 0.000 171.864 0.000 2.600 446.846 2.705 0.000 33.513 410.628
1998 0.000 2640.000 0.000 171.864 0.000 2.600 446.846 2.705 0.000 33.513 410.628
1999 0.000 2640.000 0.000 171.864 0.000 2.600 446.846 2.705 0.000 33.513 410.628
2000 0.000 2640.000 0.000 171.864 0.000 2.600 446.846 2.705 0.000 33.513 410.628
2001 0.000 1963.891 0.000 127.849 0.000 2.600 332.408 2.705 0.000 24.931 304.772
2002 0.000 622.195 0.000 40.505 0.000 2.600 105.313 2.705 0.000 7.898 94.709
2003 0.000 186.658 0.000 12.151 0.000 2.600 31.594 2.705 0.000 2.370 26.519
2004 0.000 55.998 0.000 3.645 0.000 2.600 9.478 2.705 0.000 0.711 6.062
2005 0.000 9.467 0.000 0.616 0.000 2.600 1.602 1.127 0.000 0.120 0.355
SUB 0.000 14498.209 0.000 943.833 0.000 2.600 2453.965 23.894 0.000 184.046 2246.024
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 14498.209 0.000 943.833 0.000 2.600 2453.965 23.894 0.000 184.046 2246.024
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 171.095 167.742
1997 581.723 376.416
1998 992.351 342.197
1999 1402.979 311.088
2000 1813.607 282.807
2001 2118.379 192.279
2002 2213.088 54.422
2003 2239.607 13.863
2004 2245.669 2.890
2005 2246.024 0.157
SUB 2246.024 1743.861
REM 2246.024 0.000
TOT 2246.024 1743.861
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 10-18 A-1 & A-2 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ------- ------- 10.00 26.529
TX, WARD GROSS WELLS 2.000 0.000 15.00 24.641
WOLFCAMP GROSS CUM. MB & MMF 196.147 321.690 20.00 23.031
10 BLK 18 ULAND GROSS RES. MB & MMF 46.734 46.734 25.00 21.645
SEQ: 676 GROSS ULT. MB & MMF 242.881 368.424 30.00 20.441
INIT W.I 10.883 LIFE/YR 6.167 RATE-OF-RETURN, % 100.00
INIT N.I 7.700 OPC/W 2698 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.834 4.834 0.372 0.372 20.490 2.310 8.487 2.936 0.000 0.738 4.813
1997 10.350 10.350 0.797 0.797 20.490 2.310 18.171 7.047 0.000 1.580 9.544
1998 8.798 8.798 0.677 0.677 20.490 2.310 15.446 7.047 0.000 1.344 7.055
1999 7.478 7.478 0.576 0.576 20.490 2.310 13.129 7.047 0.000 1.141 4.940
2000 6.356 6.356 0.489 0.489 20.490 2.310 11.159 7.047 0.000 0.971 3.142
2001 5.403 5.403 0.416 0.416 20.490 2.310 9.486 7.047 0.000 0.825 1.614
2002 3.513 3.513 0.271 0.271 20.490 2.310 6.168 5.285 0.000 0.537 0.346
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 46.732 46.732 3.599 3.599 20.490 2.310 82.046 43.456 0.000 7.136 31.454
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 46.732 46.732 3.599 3.599 20.490 2.310 82.046 43.456 0.000 7.136 31.454
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 4.813 4.720
1997 14.357 8.768
1998 21.412 5.894
1999 26.352 3.754
2000 29.494 2.173
2001 31.108 1.017
2002 31.454 0.202
2003 31.454 0.000
2004 31.454 0.000
2005 31.454 0.000
SUB 31.454 26.528
REM 31.454 0.000
TOT 31.454 26.528
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 10-18 A-3, A-4 & A-5 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
BLOCK 18 (CHERRY CANYON) ------- ------- 10.00 96.659
TX, WARD GROSS WELLS 2.000 0.000 15.00 91.896
CHERRY CANYON GROSS CUM. MB & MMF 26.267 397.067 20.00 87.680
10 BLK 18 ULAND GROSS RES. MB & MMF 33.733 710.934 25.00 83.923
SEQ: 677 GROSS ULT. MB & MMF 60.000 1108.001 30.00 80.556
NON-CONSENT IN A-3. INIT W.I 8.330 LIFE/YR 3.417 RATE-OF-RETURN, % 100.00
INIT N.I 6.038 OPC/W 2525 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 8.808 139.386 0.532 8.417 20.700 2.280 30.200 2.103 0.000 3.076 25.021
1997 13.784 260.981 0.832 15.759 20.700 2.280 53.160 5.048 0.000 5.474 42.637
1998 7.396 182.687 0.447 11.031 20.700 2.280 34.396 5.048 0.000 3.595 25.753
1999 3.745 127.881 0.226 7.722 20.700 2.280 22.287 5.048 0.000 2.366 14.873
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 33.733 710.935 2.037 42.929 20.700 2.280 140.043 17.247 0.000 14.511 108.284
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 33.733 710.935 2.037 42.929 20.700 2.280 140.043 17.247 0.000 14.511 108.284
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 25.021 24.546
1997 67.658 39.238
1998 93.411 21.548
1999 108.284 11.326
2000 108.284 0.000
2001 108.284 0.000
2002 108.284 0.000
2003 108.284 0.000
2004 108.284 0.000
2005 108.284 0.000
SUB 108.284 96.658
REM 108.284 0.000
TOT 108.284 96.658
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 10-18 B-2 & B-4 P.W. % P.W., M$
TEXACO OIL GAS ------ --------
WAR-WINK S-WOLFCAMP ------- ------- 10.00 0.000
TX, WARD GROSS WELLS 2.000 0.000 15.00 0.000
WOLFCAMP GROSS CUM. MB & MMF 527.835 645.951 20.00 0.000
10 BLK 18 ULAND GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 678 GROSS ULT. MB & MMF 527.835 645.951 30.00 0.000
INIT W.I 8.330 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 6.507 OPC/W 2970 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WITH
REVENUE @10%
---(M$)--- ----(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 10-18 B-6 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
BLOCK 18 (CHERRY CANYON) ---------- ---------- 10.00 38.869
TX, WARD GROSS WELLS 0.000 1.000 15.00 35.768
CHERRY CANYON GROSS CUM. MB & MMF 0.468 98.231 20.00 33.190
GROSS RES. MB & MMF 0.849 460.197 25.00 31.018
SEQ: 679 GROSS ULT. MB & MMF 1.317 558.428 30.00 29.166
INIT W.I 10.520 LIFE/YR 8.417 RATE-OF-RETURN, % 100.00
INIT N.I 8.334 OPC/W 2173 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.217 56.456 0.018 4.705 20.200 2.030 9.917 1.143 0.000 1.100 7.674
1997 0.324 97.570 0.027 8.132 20.200 2.030 17.054 2.743 0.000 1.895 12.416
1998 0.162 77.484 0.014 6.458 20.200 2.030 13.382 2.743 0.000 1.491 9.148
1999 0.081 61.987 0.007 5.166 20.200 2.030 10.624 2.743 0.000 1.186 6.695
2000 0.041 49.590 0.003 4.133 20.200 2.030 8.458 2.743 0.000 0.945 4.770
2001 0.020 39.672 0.002 3.306 20.200 2.030 6.746 2.743 0.000 0.755 3.248
2002 0.003 31.737 0.000 2.645 20.178 2.030 5.375 2.743 0.000 0.602 2.030
2003 0.000 25.390 0.000 2.116 0.000 2.030 4.296 2.743 0.000 0.481 1.071
2004 0.000 20.312 0.000 1.693 0.000 2.030 3.437 2.743 0.000 0.385 0.308
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.848 460.198 0.071 38.355 20.200 2.030 79.289 23.087 0.000 8.840 47.360
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.848 460.198 0.071 38.355 20.200 2.030 79.289 23.087 0.000 8.840 47.360
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.674 7.531
1997 20.090 11.411
1998 29.238 7.642
1999 35.933 5.085
2000 40.703 3.294
2001 43.951 2.040
2002 45.981 1.160
2003 47.052 0.558
2004 47.360 0.148
2005 47.360 0.000
SUB 47.360 38.869
REM 47.360 0.000
TOT 47.360 38.869
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 1018 'B' P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
BLOCK 18 (CHERRY CANYON) ---------- ---------- 10.00 1.264
TX, WARD GROSS WELLS 3.000 0.000 15.00 1.251
CHERRY CANYON GROSS CUM. MB & MMF 7.056 91.972 20.00 1.239
10 BLK 18 ULAND GROSS RES. MB & MMF 4.486 6.630 25.00 1.227
SEQ: 680 GROSS ULT. MB & MMF 11.542 98.602 30.00 1.216
WELL NOS. 3, 5, & 7 INIT W.I 10.520 LIFE/YR 0.750 RATE-OF-RETURN, % 100.00
INIT N.I 8.334 OPC/W 2424 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.702 3.820 0.225 0.318 20.700 2.280 5.388 3.841 0.000 0.474 1.073
1997 1.784 2.810 0.149 0.234 20.700 2.280 3.611 3.073 0.000 0.319 0.220
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 4.486 6.630 0.374 0.553 20.700 2.280 8.999 6.914 0.000 0.793 1.293
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 4.486 6.630 0.374 0.553 20.700 2.280 8.999 6.914 0.000 0.793 1.293
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.073 1.055
1997 1.293 0.209
1998 1.293 0.000
1999 1.293 0.000
2000 1.293 0.000
2001 1.293 0.000
2002 1.293 0.000
2003 1.293 0.000
2004 1.293 0.000
2005 1.293 0.000
SUB 1.293 1.264
REM 1.293 0.000
TOT 1.293 1.264
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 11-18 #A-4 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 72.660
TX, WARD GROSS WELLS 0.000 1.000 15.00 62.571
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 54.452
NE/4-SE/4 SEC11 GROSS RES. MB & MMF 29.993 817.248 25.00 47.810
SEQ: 263 GROSS ULT. MB & MMF 29.993 817.248 30.00 42.298
INIT W.I 8.333 LIFE/YR 11.167 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 12.401 126.255 0.806 8.207 19.740 2.660 37.741 2.000 27.499 3.784 4.458
1998 9.691 157.074 0.630 10.210 19.740 2.660 39.593 3.000 0.000 4.088 32.505
1999 4.355 125.315 0.283 8.145 19.740 2.660 27.254 3.000 0.000 2.897 21.358
2000 1.957 99.978 0.127 6.499 19.740 2.660 19.797 3.000 0.000 2.147 14.650
2001 0.879 79.764 0.057 5.185 19.740 2.660 14.919 3.000 0.000 1.639 10.280
2002 0.395 63.636 0.026 4.136 19.740 2.660 11.510 3.000 0.000 1.275 7.235
2003 0.178 50.770 0.012 3.300 19.740 2.660 9.006 3.000 0.000 1.002 5.004
2004 0.080 40.505 0.005 2.633 19.741 2.660 7.106 3.000 0.000 0.793 3.313
2005 0.036 32.315 0.002 2.100 19.744 2.660 5.633 3.000 0.000 0.629 2.004
SUB 29.972 775.612 1.948 50.415 19.740 2.660 172.559 26.000 27.499 18.254 100.807
REM 0.022 41.635 0.001 2.706 19.741 2.660 7.227 5.250 0.000 0.809 1.168
TOT 29.994 817.247 1.950 53.121 19.740 2.660 179.786 31.250 27.499 19.063 101.975
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 4.458 3.071
1998 36.963 27.183
1999 58.321 16.231
2000 72.971 10.118
2001 83.251 6.454
2002 90.486 4.130
2003 95.490 2.597
2004 98.803 1.564
2005 100.807 0.861
SUB 100.807 72.209
REM 101.975 0.452
TOT 101.975 72.661
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 11-18 #B-3 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 72.085
TX, WARD GROSS WELLS 0.000 1.000 15.00 61.846
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 53.631
NE/4-NW/4 SEC11 GROSS RES. MB & MMF 29.993 817.248 25.00 46.929
SEQ: 260 GROSS ULT. MB & MMF 29.993 817.248 30.00 41.383
INIT W.I 8.333 LIFE/YR 11.250 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 11.187 111.493 0.727 7.247 19.740 2.660 33.632 1.750 27.499 3.367 1.016
1998 10.360 160.058 0.673 10.404 19.740 2.660 40.967 3.000 0.000 4.218 33.748
1999 4.655 127.697 0.303 8.300 19.740 2.660 28.051 3.000 0.000 2.976 22.076
2000 2.092 101.878 0.136 6.622 19.740 2.660 20.298 3.000 0.000 2.199 15.100
2001 0.940 81.279 0.061 5.283 19.740 2.660 15.259 3.000 0.000 1.675 10.584
2002 0.422 64.846 0.027 4.215 19.740 2.660 11.754 3.000 0.000 1.302 7.452
2003 0.190 51.735 0.012 3.363 19.740 2.660 9.188 3.000 0.000 1.022 5.166
2004 0.085 41.275 0.006 2.683 19.739 2.660 7.246 3.000 0.000 0.808 3.437
2005 0.038 32.929 0.002 2.140 19.740 2.660 5.743 3.000 0.000 0.642 2.101
SUB 29.969 773.190 1.948 50.257 19.740 2.660 172.138 25.750 27.499 18.209 100.680
REM 0.024 44.058 0.002 2.864 19.741 2.660 7.648 5.500 0.000 0.856 1.293
TOT 29.993 817.248 1.950 53.121 19.740 2.660 179.786 31.250 27.499 19.065 101.973
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 1.016 0.051
1998 34.764 28.224
1999 56.840 16.777
2000 71.940 10.429
2001 82.524 6.645
2002 89.976 4.254
2003 95.142 2.681
2004 98.579 1.623
2005 100.680 0.902
SUB 100.680 71.586
REM 101.973 0.499
TOT 101.973 72.085
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 11-18 #B-4 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 71.515
TX, WARD GROSS WELLS 0.000 1.000 15.00 61.130
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 52.822
NE/4-NW/4 SEC11 GROSS RES. MB & MMF 29.993 817.248 25.00 46.064
SEQ: 261 GROSS ULT. MB & MMF 29.993 817.248 30.00 40.488
INIT W.I 8.333 LIFE/YR 11.333 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 9.890 96.451 0.643 6.269 19.740 2.660 29.367 1.500 27.499 2.935 -2.568
1998 11.074 163.100 0.720 10.601 19.740 2.660 42.409 3.000 0.000 4.355 35.055
1999 4.976 130.123 0.323 8.458 19.740 2.660 28.883 3.000 0.000 3.057 22.826
2000 2.236 103.814 0.145 6.748 19.740 2.660 20.818 3.000 0.000 2.252 15.566
2001 1.005 82.824 0.065 5.384 19.740 2.660 15.609 3.000 0.000 1.712 10.897
2002 0.451 66.078 0.029 4.295 19.740 2.660 12.004 3.000 0.000 1.329 7.676
2003 0.203 52.718 0.013 3.427 19.739 2.660 9.375 3.000 0.000 1.043 5.332
2004 0.091 42.059 0.006 2.734 19.739 2.660 7.389 3.000 0.000 0.825 3.565
2005 0.041 33.555 0.003 2.181 19.738 2.660 5.854 3.000 0.000 0.655 2.200
SUB 29.967 770.722 1.948 50.097 19.740 2.660 171.708 25.500 27.499 18.163 100.549
REM 0.026 46.528 0.002 3.024 19.742 2.660 8.078 5.750 0.000 0.904 1.425
TOT 29.993 817.250 1.950 53.121 19.740 2.660 179.786 31.250 27.499 19.067 101.974
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -2.568 -3.068
1998 32.487 29.318
1999 55.313 17.347
2000 70.879 10.752
2001 81.776 6.841
2002 89.452 4.381
2003 94.784 2.767
2004 98.349 1.683
2005 100.549 0.945
SUB 100.549 70.966
REM 101.974 0.548
TOT 101.974 71.514
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 11-18 #B-5 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 70.949
TX, WARD GROSS WELLS 0.000 1.000 15.00 60.422
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 52.025
NE/4-NW/4 SEC11 GROSS RES. MB & MMF 29.993 817.248 25.00 45.215
SEQ: 262 GROSS ULT. MB & MMF 29.993 817.248 30.00 39.612
INIT W.I 8.333 LIFE/YR 11.417 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 8.504 81.123 0.553 5.273 19.740 2.660 24.938 1.250 27.499 2.489 -6.300
1998 11.837 166.199 0.769 10.803 19.740 2.660 43.924 3.000 0.000 4.497 36.428
1999 5.319 132.596 0.346 8.619 19.740 2.660 29.750 3.000 0.000 3.142 23.608
2000 2.390 105.786 0.155 6.876 19.740 2.660 21.357 3.000 0.000 2.307 16.050
2001 1.074 84.398 0.070 5.486 19.740 2.660 15.970 3.000 0.000 1.750 11.220
2002 0.483 67.333 0.031 4.377 19.740 2.660 12.261 3.000 0.000 1.356 7.905
2003 0.217 53.719 0.014 3.492 19.741 2.660 9.566 3.000 0.000 1.063 5.503
2004 0.097 42.858 0.006 2.786 19.740 2.660 7.535 3.000 0.000 0.841 3.695
2005 0.044 34.193 0.003 2.223 19.741 2.660 5.968 3.000 0.000 0.667 2.301
SUB 29.965 768.205 1.948 49.933 19.740 2.660 171.269 25.250 27.499 18.112 100.410
REM 0.029 49.043 0.002 3.188 19.749 2.660 8.516 6.000 0.000 0.953 1.564
TOT 29.994 817.248 1.950 53.121 19.740 2.660 179.785 31.250 27.499 19.065 101.974
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -6.300 -6.292
1998 30.128 30.467
1999 53.736 17.943
2000 69.786 11.086
2001 81.006 7.044
2002 88.911 4.512
2003 94.414 2.856
2004 98.109 1.744
2005 100.410 0.988
SUB 100.410 70.348
REM 101.974 0.601
TOT 101.974 70.949
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 11-18 A-1 & A-2 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 14.015
TX, WARD GROSS WELLS 2.000 0.000 15.00 13.113
WOLFCAMP GROSS CUM. MB & MMF 424.360 398.299 20.00 12.335
11 BLK 18 ULAND GROSS RES. MB & MMF 25.932 86.441 25.00 11.657
SEQ: 681 GROSS ULT. MB & MMF 450.292 484.740 30.00 11.062
INIT W.I 8.330 LIFE/YR 5.417 RATE-OF-RETURN, % 100.00
INIT N.I 6.507 OPC/W 2499 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.901 9.669 0.189 0.629 20.700 2.280 5.342 2.082 0.000 0.489 2.770
1997 6.210 20.701 0.404 1.347 20.700 2.280 11.436 4.996 0.000 1.048 5.392
1998 5.279 17.596 0.343 1.145 20.700 2.280 9.721 4.996 0.000 0.891 3.834
1999 4.487 14.956 0.292 0.973 20.700 2.280 8.263 4.996 0.000 0.757 2.509
2000 3.814 12.713 0.248 0.827 20.700 2.280 7.023 4.996 0.000 0.644 1.384
2001 3.242 10.806 0.211 0.703 20.700 2.280 5.970 4.996 0.000 0.547 0.427
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 25.933 86.441 1.687 5.625 20.700 2.280 47.755 27.062 0.000 4.376 16.316
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 25.933 86.441 1.687 5.625 20.700 2.280 47.755 27.062 0.000 4.376 16.316
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.770 2.717
1997 8.162 4.955
1998 11.996 3.204
1999 14.505 1.908
2000 15.889 0.959
2001 16.316 0.271
2002 16.316 0.000
2003 16.316 0.000
2004 16.316 0.000
2005 16.316 0.000
SUB 16.316 14.014
REM 16.316 0.000
TOT 16.316 14.014
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 11-18 A-3 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
BLOCK 18 (CHERRY CANYON) ---------- ---------- 10.00 21.580
TX, WARD GROSS WELLS 0.000 1.000 15.00 20.848
CHERRY CANYON GROSS CUM. MB & MMF 2.501 92.823 20.00 20.188
GROSS RES. MB & MMF 5.528 251.292 25.00 19.589
SEQ: 699 GROSS ULT. MB & MMF 8.029 344.115 30.00 19.044
INIT W.I 10.000 LIFE/YR 3.500 RATE-OF-RETURN, % 100.00
INIT N.I 6.298 OPC/W 3650 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.504 68.347 0.095 4.305 20.700 2.280 11.775 1.825 0.000 1.264 8.686
1997 2.049 93.122 0.129 5.865 20.700 2.280 16.043 4.380 0.000 1.723 9.941
1998 1.154 52.446 0.073 3.303 20.700 2.280 9.036 4.380 0.000 0.970 3.685
1999 0.769 34.958 0.048 2.202 20.700 2.280 6.023 4.380 0.000 0.647 0.996
2000 0.053 2.419 0.003 0.152 20.701 2.280 0.417 0.365 0.000 0.045 0.007
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 5.529 251.292 0.348 15.827 20.700 2.280 43.294 15.330 0.000 4.649 23.315
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 5.529 251.292 0.348 15.827 20.700 2.280 43.294 15.330 0.000 4.649 23.315
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.686 8.530
1997 18.627 9.184
1998 22.312 3.096
1999 23.308 0.766
2000 23.315 0.005
2001 23.315 0.000
2002 23.315 0.000
2003 23.315 0.000
2004 23.315 0.000
2005 23.315 0.000
SUB 23.315 21.581
REM 23.315 0.000
TOT 23.315 21.581
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 11-18 B-1 & B-2 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 54.903
TX, WARD GROSS WELLS 2.000 0.000 15.00 49.694
WOLFCAMP GROSS CUM. MB & MMF 611.102 551.558 20.00 45.443
11 BLK 18 ULAND GROSS RES. MB & MMF 109.613 70.038 25.00 41.920
SEQ: 682 GROSS ULT. MB & MMF 720.715 621.596 30.00 38.962
INIT W.I 8.330 LIFE/YR 9.083 RATE-OF-RETURN, % 100.00
INIT N.I 6.507 OPC/W 4119 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 8.278 7.162 0.539 0.466 20.700 2.280 12.212 3.431 0.000 1.058 7.723
1997 18.157 14.701 1.181 0.957 20.700 2.280 26.637 8.235 0.000 2.303 16.100
1998 15.978 11.761 1.040 0.765 20.700 2.280 23.266 8.235 0.000 2.007 13.025
1999 14.060 9.408 0.915 0.612 20.700 2.280 20.334 8.235 0.000 1.750 10.350
2000 12.373 7.527 0.805 0.490 20.700 2.280 17.783 8.235 0.000 1.527 8.020
2001 10.888 6.021 0.709 0.392 20.700 2.280 15.559 8.235 0.000 1.335 5.990
2002 9.582 4.817 0.623 0.313 20.700 2.280 13.621 8.235 0.000 1.166 4.220
2003 8.432 3.854 0.549 0.251 20.700 2.280 11.929 8.235 0.000 1.020 2.675
2004 7.420 3.083 0.483 0.201 20.700 2.280 10.452 8.235 0.000 0.892 1.325
2005 4.445 1.705 0.289 0.111 20.700 2.280 6.240 5.490 0.000 0.532 0.218
SUB 109.613 70.039 7.132 4.557 20.700 2.280 158.033 74.801 0.000 13.590 69.646
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 109.613 70.039 7.132 4.557 20.700 2.280 158.033 74.801 0.000 13.590 69.646
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 7.723 7.574
1997 23.823 14.782
1998 36.848 10.873
1999 47.198 7.856
2000 55.218 5.535
2001 61.208 3.760
2002 65.428 2.409
2003 68.103 1.390
2004 69.428 0.628
2005 69.646 0.096
SUB 69.646 54.903
REM 69.646 0.000
TOT 69.646 54.903
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
UNIVERSITY 18-29 #2 PUD P.W. % P.W., M$
CHEVRON OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 93.334
TX, WARD GROSS WELLS 0.000 1.000 15.00 77.329
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 64.811
SEC 29 GROSS RES. MB & MMF 30.000 808.773 25.00 54.858
SEQ: 264 GROSS ULT. MB & MMF 30.000 808.773 30.00 46.832
INIT W.I 13.180 LIFE/YR 11.583 RATE-OF-RETURN, % 100.00
INIT N.I 9.410 OPC/W 3000 UNDISC NET/INVEST 4.26
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 14.600 154.958 1.374 14.582 20.550 2.660 67.019 3.954 43.494 6.720 12.851
1999 8.486 151.270 0.799 14.235 20.550 2.660 54.274 4.745 0.000 5.622 43.907
2000 3.815 120.685 0.359 11.356 20.550 2.660 37.585 4.745 0.000 4.004 28.836
2001 1.715 96.284 0.161 9.060 20.550 2.660 27.416 4.745 0.000 2.978 19.693
2002 0.771 76.817 0.073 7.228 20.550 2.660 20.718 4.745 0.000 2.279 13.694
2003 0.346 61.285 0.033 5.767 20.550 2.660 16.010 4.745 0.000 1.774 9.491
2004 0.156 48.894 0.015 4.601 20.550 2.660 12.540 4.745 0.000 1.396 6.399
2005 0.070 39.008 0.007 3.671 20.549 2.660 9.899 4.745 0.000 1.105 4.050
SUB 29.959 749.201 2.819 70.500 20.550 2.660 245.461 37.169 43.494 25.878 138.921
REM 0.042 59.570 0.004 5.606 20.549 2.660 14.992 10.281 0.000 1.678 3.035
TOT 30.001 808.771 2.823 76.105 20.550 2.660 260.453 47.450 43.494 27.556 141.956
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 12.851 9.006
1999 56.758 33.380
2000 85.594 19.922
2001 105.287 12.366
2002 118.981 7.817
2003 128.472 4.925
2004 134.871 3.020
2005 138.921 1.739
SUB 138.921 92.175
REM 141.956 1.160
TOT 141.956 93.33
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
UNIVERSITY 18-29 #5 PUD P.W. % P.W., M$
CHEVRON OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 91.832
TX, WARD GROSS WELLS 1.000 0.000 15.00 75.530
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 62.860
SEC 29 GROSS RES. MB & MMF 30.000 799.461 25.00 52.848
SEQ: 265 GROSS ULT. MB & MMF 30.000 799.461 30.00 44.824
INIT W.I 13.180 LIFE/YR 11.333 RATE-OF-RETURN, % 100.00
INIT N.I 9.410 OPC/W 3000 UNDISC NET/INVEST 4.26
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 12.402 126.255 1.167 11.881 20.550 2.660 55.585 3.163 43.494 5.557 3.370
1999 9.696 157.074 0.912 14.781 20.550 2.660 58.066 4.745 0.000 5.981 47.340
2000 4.358 125.315 0.410 11.792 20.550 2.660 39.795 4.745 0.000 4.222 30.828
2001 1.959 99.978 0.184 9.408 20.550 2.660 28.814 4.745 0.000 3.121 20.947
2002 0.881 79.764 0.083 7.506 20.550 2.660 21.668 4.745 0.000 2.380 14.544
2003 0.396 63.636 0.037 5.988 20.550 2.660 16.694 4.745 0.000 1.849 10.101
2004 0.178 50.770 0.017 4.777 20.550 2.660 13.052 4.745 0.000 1.452 6.855
2005 0.080 40.505 0.008 3.812 20.549 2.660 10.293 4.745 0.000 1.149 4.400
SUB 29.950 743.297 2.818 69.944 20.550 2.660 243.967 36.378 43.494 25.711 138.385
REM 0.050 56.163 0.005 5.285 20.553 2.660 14.155 9.094 0.000 1.583 3.479
TOT 30.000 799.460 2.823 75.229 20.550 2.660 258.122 45.472 43.494 27.294 141.864
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 3.370 1.393
1999 50.710 35.992
2000 81.538 21.299
2001 102.485 13.153
2002 117.029 8.302
2003 127.130 5.242
2004 133.985 3.235
2005 138.385 1.889
SUB 138.385 90.505
REM 141.864 1.327
TOT 141.864 91.832
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
C-PROVED UNDEVE PRIMARY
UNIVERSITY 18-29 #7 PUD P.W. % P.W., M$
CHEVRON OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 90.385
TX, WARD GROSS WELLS 1.000 0.000 15.00 73.791
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 60.978
SEC 29 GROSS RES. MB & MMF 30.000 799.461 25.00 50.919
SEQ: 266 GROSS ULT. MB & MMF 30.000 799.461 30.00 42.906
INIT W.I 13.180 LIFE/YR 11.500 RATE-OF-RETURN, % 100.00
INIT N.I 9.410 OPC/W 3000 UNDISC NET/INVEST 4.26
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 9.891 96.451 0.931 9.076 20.550 2.660 43.270 2.372 43.494 4.314
1999 11.078 163.100 1.042 15.348 20.550 2.660 62.247 4.745 0.000 6.375
2000 4.980 130.123 0.469 12.245 20.550 2.660 42.200 4.745 0.000 4.459
2001 2.238 103.814 0.211 9.769 20.550 2.660 30.314 4.745 0.000 3.275
2002 1.006 82.824 0.095 7.794 20.550 2.660 22.677 4.745 0.000 2.485
2003 0.452 66.078 0.043 6.218 20.550 2.660 17.414 4.745 0.000 1.926
2004 0.203 52.718 0.019 4.961 20.550 2.660 13.589 4.745 0.000 1.511
2005 0.091 42.059 0.009 3.958 20.549 2.660 10.704 4.745 0.000 1.194
SUB 29.939 737.167 2.817 69.367 20.550 2.660 242.415 35.587 43.494 25.539
REM 0.059 62.296 0.006 5.862 20.546 2.660 15.708 9.885 0.000 1.756
TOT 29.998 799.463 2.823 75.229 20.550 2.660 258.123 45.472 43.494 27.295
<CAPTION>
FUTURE NET CUM. NET PRESENT WTH
REVENUE REVENUE @10%
---(M$)--- ---(M$)--- ---(M$)----
<S> <C> <C> <C>
1996 0.000 0.000 0.000
1997 0.000 0.000 0.000
1998 -6.910 -6.910 -6.731
1999 51.127 44.217 38.875
2000 32.997 77.214 22.799
2001 22.294 99.508 14.000
2002 15.447 114.955 8.817
2003 10.743 125.698 5.575
2004 7.333 133.031 3.460
2005 4.766 137.797 2.045
SUB 137.797 137.797 88.840
REM 4.067 141.864 1.544
TOT 141.864 141.864 90.384
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-29 4 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 1.876
TX, WARD GROSS WELLS 0.000 1.000 15.00 1.819
CHERRY CANYON GROSS CUM. MB & MMF 13.966 1534.904 20.00 1.768
29 18ULAND GROSS RES. MB & MMF 1.305 87.004 25.00 1.720
SEQ: 700 GROSS ULT. MB & MMF 15.271 1621.908 30.00 1.677
INIT W.I 12.578 LIFE/YR 2.250 RATE-OF-RETURN, % 100.00
INIT N.I 6.408 OPC/W 3200 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.276 18.415 0.018 1.180 20.700 2.280 3.057 2.012 0.000 0.333 0.712
1997 0.596 39.750 0.038 2.547 20.700 2.280 6.598 4.830 0.000 0.717 1.052
1998 0.433 28.839 0.028 1.848 20.700 2.280 4.787 4.025 0.000 0.520 0.242
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 1.305 87.004 0.084 5.575 20.700 2.280 14.442 10.867 0.000 1.570 2.006
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 1.305 87.004 0.084 5.575 20.700 2.280 14.442 10.867 0.000 1.570 2.006
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.712 0.699
1997 1.764 0.970
1998 2.006 0.206
1999 2.006 0.000
2000 2.006 0.000
2001 2.006 0.000
2002 2.006 0.000
2003 2.006 0.000
2004 2.006 0.000
2005 2.006 0.000
SUB 2.006 1.875
REM 2.006 0.000
TOT 2.006 1.875
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-29 GAS UNIT 1 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (ATOKA) ---------- ---------- 10.00 40.607
TX, WARD GROSS WELLS 0.000 1.000 15.00 36.032
ATOKA GROSS CUM. MB & MMF 0.000 702.543 20.00 32.437
29 18ULAND GROSS RES. MB & MMF 0.000 323.204 25.00 29.552
SEQ: 683 GROSS ULT. MB & MMF 0.000 1025.747 30.00 27.192
INIT W.I 15.846 LIFE/YR 12.417 RATE-OF-RETURN, % 100.00
INIT N.I 12.673 OPC/W 1200 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 23.261 0.000 2.948 0.000 2.280 6.721 0.951 0.000 0.753 5.018
1997 0.000 50.210 0.000 6.363 0.000 2.280 14.508 2.282 0.000 1.625 10.601
1998 0.000 43.181 0.000 5.472 0.000 2.280 12.476 2.282 0.000 1.398 8.797
1999 0.000 37.135 0.000 4.706 0.000 2.280 10.730 2.282 0.000 1.202 7.246
2000 0.000 31.936 0.000 4.047 0.000 2.280 9.228 2.282 0.000 1.033 5.912
2001 0.000 27.465 0.000 3.481 0.000 2.280 7.936 2.282 0.000 0.889 4.765
2002 0.000 23.620 0.000 2.993 0.000 2.280 6.825 2.282 0.000 0.765 3.779
2003 0.000 20.313 0.000 2.574 0.000 2.280 5.869 2.282 0.000 0.657 2.930
2004 0.000 17.469 0.000 2.214 0.000 2.280 5.048 2.282 0.000 0.566 2.200
2005 0.000 15.024 0.000 1.904 0.000 2.280 4.341 2.282 0.000 0.487 1.573
SUB 0.000 289.614 0.000 36.702 0.000 2.280 83.682 21.489 0.000 9.375 52.821
REM 0.000 33.588 0.000 4.256 0.000 2.280 9.705 6.846 0.000 1.087 1.772
TOT 0.000 323.202 0.000 40.959 0.000 2.280 93.387 28.335 0.000 10.462 54.593
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.018 4.920
1997 15.619 9.732
1998 24.416 7.342
1999 31.662 5.498
2000 37.574 4.079
2001 42.339 2.989
2002 46.118 2.155
2003 49.048 1.519
2004 51.248 1.038
2005 52.821 0.675
SUB 52.821 39.947
REM 54.593 0.661
TOT 54.593 40.608
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-30 #2 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 252.727
TX, WARD GROSS WELLS 0.000 1.000 15.00 207.228
CHERRY CANYON GROSS CUM. MB & MMF 84.435 3382.975 20.00 176.313
30 18ULAND GROSS RES. MB & MMF 55.244 1972.985 25.00 154.063
SEQ: 53 GROSS ULT. MB & MMF 139.679 5355.960 30.00 137.324
INIT W.I 12.580 LIFE/YR 29.417 RATE-OF-RETURN, % 100.00
INIT N.I 10.310 OPC/W 3048 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.064 73.712 0.213 7.600 20.400 2.660 24.556 1.917 0.000 2.630 20.010
1997 4.670 166.803 0.482 17.197 20.400 2.660 55.568 4.601 0.000 5.950 45.017
1998 4.297 153.459 0.443 15.822 20.400 2.660 51.123 4.601 0.000 5.474 41.047
1999 3.953 141.182 0.408 14.556 20.400 2.660 47.033 4.601 0.000 5.036 37.395
2000 3.637 129.887 0.375 13.391 20.400 2.660 43.270 4.601 0.000 4.633 34.036
2001 3.346 119.496 0.345 12.320 20.400 2.660 39.809 4.601 0.000 4.263 30.945
2002 3.078 109.937 0.317 11.334 20.400 2.660 36.624 4.601 0.000 3.922 28.101
2003 2.832 101.142 0.292 10.428 20.400 2.660 33.694 4.601 0.000 3.608 25.485
2004 2.605 93.050 0.269 9.594 20.400 2.660 30.999 4.601 0.000 3.319 23.078
2005 2.397 85.606 0.247 8.826 20.400 2.660 28.519 4.601 0.000 3.054 20.864
SUB 32.879 1174.274 3.390 121.068 20.400 2.660 391.195 43.326 0.000 41.889 305.978
REM 22.362 798.711 2.306 82.347 20.400 2.660 266.079 92.020 0.000 28.493 145.561
TOT 55.241 1972.985 5.696 203.415 20.400 2.660 657.274 135.346 0.000 70.382 451.539
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 20.010 19.620
1997 65.027 41.296
1998 106.074 34.232
1999 143.469 28.351
2000 177.505 23.459
2001 208.450 19.389
2002 236.551 16.007
2003 262.036 13.197
2004 285.114 10.865
2005 305.978 8.929
SUB 305.978 215.345
REM 451.539 37.383
TOT 451.539 252.728
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-31 1 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 0.000
TX, WARD GROSS WELLS 1.000 0.000 15.00 0.000
CHERRY CANYON GROSS CUM. MB & MMF 11.265 290.170 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 701 GROSS ULT. MB & MMF 11.265 290.170 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 12.578 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 6.408 OPC/W 2383 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-31 3 P.W. % P.W., M$
CHEVRON OIL GAS ------ --------
EAST QUITO (CHERRY CANYON) ---------- ---------- 10.00 0.000
TX, WARD GROSS WELLS 0.000 1.000 15.00 0.000
CHERRY CANYON GROSS CUM. MB & MMF 7.051 1577.336 20.00 0.000
31 18ULAND GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 684 GROSS ULT. MB & MMF 7.051 1577.336 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 12.578 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 6.408 OPC/W 2220 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-31 4 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 19.711
TX, WARD GROSS WELLS 0.000 1.000 15.00 17.956
CHERRY CANYON GROSS CUM. MB & MMF 15.852 1946.213 20.00 16.506
31 18ULAND GROSS RES. MB & MMF 4.683 425.769 25.00 15.292
SEQ: 685 GROSS ULT. MB & MMF 20.535 2371.982 30.00 14.264
INIT W.I 12.578 LIFE/YR 8.167 RATE-OF-RETURN, % 100.00
INIT N.I 6.408 OPC/W 2627 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.375 34.084 0.024 2.184 20.320 2.120 5.119 1.652 0.000 0.560 2.907
1997 0.822 74.763 0.053 4.791 20.320 2.120 11.227 3.965 0.000 1.228 6.035
1998 0.724 65.791 0.046 4.216 20.320 2.120 9.880 3.965 0.000 1.081 4.835
1999 0.637 57.896 0.041 3.710 20.320 2.120 8.695 3.965 0.000 0.951 3.779
2000 0.560 50.949 0.036 3.265 20.320 2.120 7.651 3.965 0.000 0.837 2.850
2001 0.493 44.835 0.032 2.873 20.320 2.120 6.733 3.965 0.000 0.736 2.032
2002 0.434 39.455 0.028 2.528 20.320 2.120 5.925 3.965 0.000 0.648 1.312
2003 0.382 34.720 0.024 2.225 20.320 2.120 5.214 3.965 0.000 0.570 0.679
2004 0.256 23.277 0.016 1.492 20.320 2.120 3.496 2.974 0.000 0.383 0.140
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 4.683 425.770 0.300 27.284 20.320 2.120 63.940 32.381 0.000 6.994 24.569
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 4.683 425.770 0.300 27.284 20.320 2.120 63.940 32.381 0.000 6.994 24.569
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 2.907 2.851
1997 8.942 5.541
1998 13.777 4.036
1999 17.556 2.869
2000 20.406 1.967
2001 22.438 1.276
2002 23.750 0.750
2003 24.429 0.354
2004 24.569 0.067
2005 24.569 0.000
SUB 24.569 19.711
REM 24.569 0.000
TOT 24.569 19.711
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-31 6 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 9.086
TX, WARD GROSS WELLS 0.000 1.000 15.00 8.276
CHERRY CANYON GROSS CUM. MB & MMF 40.251 2327.295 20.00 7.606
31 18ULAND GROSS RES. MB & MMF 10.275 205.500 25.00 7.044
SEQ: 686 GROSS ULT. MB & MMF 50.526 2532.795 30.00 6.568
INIT W.I 12.578 LIFE/YR 7.750 RATE-OF-RETURN, % 100.00
INIT N.I 6.408 OPC/W 2360 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.737 14.742 0.047 0.945 20.330 2.280 3.114 1.484 0.000 0.322 1.308
1997 1.668 33.361 0.107 2.138 20.330 2.280 7.047 3.562 0.000 0.729 2.756
1998 1.535 30.692 0.098 1.967 20.330 2.280 6.483 3.562 0.000 0.670 2.251
1999 1.412 28.236 0.090 1.809 20.330 2.280 5.965 3.562 0.000 0.617 1.786
2000 1.299 25.977 0.083 1.665 20.330 2.280 5.488 3.562 0.000 0.567 1.358
2001 1.195 23.899 0.077 1.531 20.330 2.280 5.049 3.562 0.000 0.522 0.964
2002 1.099 21.987 0.070 1.409 20.330 2.280 4.645 3.562 0.000 0.481 0.602
2003 1.011 20.228 0.065 1.296 20.330 2.280 4.273 3.562 0.000 0.442 0.269
2004 0.319 6.377 0.020 0.409 20.330 2.280 1.347 1.187 0.000 0.139 0.020
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 10.275 205.499 0.658 13.169 20.330 2.280 43.411 27.605 0.000 4.489 11.314
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 10.275 205.499 0.658 13.169 20.330 2.280 43.411 27.605 0.000 4.489 11.314
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.308 1.283
1997 4.064 2.531
1998 6.315 1.879
1999 8.101 1.356
2000 9.459 0.938
2001 10.423 0.606
2002 11.025 0.344
2003 11.294 0.141
2004 11.314 0.010
2005 11.314 0.000
SUB 11.314 9.088
REM 11.314 0.000
TOT 11.314 9.088
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-5 #3 P.W. % P.W., M$
B C OPERATING INC OIL GAS ------ --------
BLOCK 17 (CHERRY CANYON) ---------- ---------- 10.00 38.971
TX, WARD GROSS WELLS 0.000 1.000 15.00 33.202
CHERRY CANYON GROSS CUM. MB & MMF 24.616 616.342 20.00 28.948
GROSS RES. MB & MMF 9.251 172.685 25.00 25.707
SEQ: 687 GROSS ULT. MB & MMF 33.867 789.027 30.00 23.170
INIT W.I 36.142 LIFE/YR 16.333 RATE-OF-RETURN, % 100.00
INIT N.I 23.776 OPC/W 1143 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.370 6.911 0.088 1.643 19.740 2.750 6.256 2.065 0.000 0.652 3.538
1997 0.851 15.876 0.202 3.775 19.740 2.750 14.372 4.957 0.000 1.498 7.917
1998 0.799 14.924 0.190 3.548 19.740 2.750 13.510 4.957 0.000 1.408 7.144
1999 0.752 14.028 0.179 3.335 19.740 2.750 12.700 4.957 0.000 1.324 6.418
2000 0.706 13.186 0.168 3.135 19.740 2.750 11.938 4.957 0.000 1.245 5.736
2001 0.664 12.395 0.158 2.947 19.740 2.750 11.221 4.957 0.000 1.170 5.094
2002 0.624 11.652 0.148 2.770 19.740 2.750 10.548 4.957 0.000 1.100 4.491
2003 0.587 10.952 0.140 2.604 19.740 2.750 9.915 4.957 0.000 1.034 3.924
2004 0.552 10.295 0.131 2.448 19.740 2.750 9.320 4.957 0.000 0.972 3.391
2005 0.518 9.678 0.123 2.301 19.740 2.750 8.761 4.957 0.000 0.914 2.890
SUB 6.423 119.897 1.527 28.507 19.740 2.750 108.541 46.678 0.000 11.317 50.543
REM 2.828 52.787 0.672 12.551 19.740 2.750 47.788 34.286 0.000 4.983 8.519
TOT 9.251 172.684 2.200 41.058 19.740 2.750 156.329 80.964 0.000 16.300 59.062
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.538 3.469
1997 11.455 7.263
1998 18.599 5.959
1999 25.017 4.867
2000 30.753 3.954
2001 35.847 3.193
2002 40.338 2.559
2003 44.262 2.033
2004 47.653 1.597
2005 50.543 1.238
SUB 50.543 36.132
REM 59.062 2.843
TOT 59.062 38.975
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-6 2-U P.W. % P.W., M$
ENRON OIL & GAS CO OIL GAS ------ --------
WAR-WINK SOUTH (FUSSELMAN) ---------- ---------- 10.00 0.000
TX, WARD GROSS WELLS 0.000 1.000 15.00 0.000
FUSSELMAN GROSS CUM. MB & MMF 0.140 53392.420 20.00 0.000
GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 688 GROSS ULT. MB & MMF 0.140 53392.420 30.00 0.000
INIT W.I 29.000 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 23.776 OPC/W 16958 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 18-6 3 P.W. % P.W., M$
ENRON OIL & GAS CO OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 16.665
TX, WARD GROSS WELLS 1.000 0.000 15.00 15.908
WOLFCAMP GROSS CUM. MB & MMF 10.375 11.037 20.00 15.235
GROSS RES. MB & MMF 10.620 10.620 25.00 14.633
SEQ: 702 GROSS ULT. MB & MMF 20.995 21.657 30.00 14.092
INIT W.I 29.000 LIFE/YR 4.000 RATE-OF-RETURN, % 100.00
INIT N.I 23.776 OPC/W 2477 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.678 1.678 0.399 0.399 20.700 2.280 9.166 3.592 0.000 0.797 4.778
1997 3.263 3.263 0.776 0.776 20.700 2.280 17.830 8.620 0.000 1.549 7.660
1998 2.546 2.546 0.605 0.605 20.700 2.280 13.908 8.620 0.000 1.209 4.080
1999 2.079 2.079 0.494 0.494 20.700 2.280 11.358 8.620 0.000 0.987 1.751
2000 1.055 1.055 0.251 0.251 20.700 2.280 5.766 5.028 0.000 0.501 0.236
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 10.621 10.621 2.525 2.525 20.700 2.280 58.028 34.480 0.000 5.043 18.505
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 10.621 10.621 2.525 2.525 20.700 2.280 58.028 34.480 0.000 5.043 18.505
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 4.778 4.688
1997 12.438 7.054
1998 16.518 3.418
1999 18.269 1.338
2000 18.505 0.167
2001 18.505 0.000
2002 18.505 0.000
2003 18.505 0.000
2004 18.505 0.000
2005 18.505 0.000
SUB 18.505 16.665
REM 18.505 0.000
TOT 18.505 16.665
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 1829-6, 8 & 10 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 75.750
TX, WARD GROSS WELLS 3.000 0.000 15.00 69.673
CHERRY CANYON GROSS CUM. MB & MMF 194.632 1412.587 20.00 64.586
GROSS RES. MB & MMF 62.215 221.344 25.00 60.275
SEQ: 689 GROSS ULT. MB & MMF 256.847 1633.931 30.00 56.583
INIT W.I 15.846 LIFE/YR 7.500 RATE-OF-RETURN, % 100.00
INIT N.I 12.673 OPC/W 2667 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.892 28.272 0.620 3.583 20.700 2.280 21.001 6.339 0.000 1.995 12.667
1997 10.900 55.501 1.381 7.033 20.700 2.280 44.630 15.214 0.000 4.202 25.214
1998 9.810 41.626 1.243 5.275 20.700 2.280 37.762 15.214 0.000 3.513 19.035
1999 8.829 31.219 1.119 3.956 20.700 2.280 32.182 15.214 0.000 2.960 14.008
2000 7.946 23.415 1.007 2.967 20.700 2.280 27.610 15.214 0.000 2.512 9.884
2001 7.152 17.561 0.906 2.225 20.700 2.280 23.835 15.214 0.000 2.148 6.473
2002 6.437 13.171 0.816 1.669 20.700 2.280 20.690 15.214 0.000 1.847 3.629
2003 5.793 9.878 0.734 1.252 20.700 2.280 18.050 15.214 0.000 1.598 1.237
2004 0.456 0.702 0.058 0.089 20.700 2.280 1.398 1.268 0.000 0.123 0.007
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 62.215 221.345 7.884 28.050 20.700 2.280 227.158 114.105 0.000 20.898 92.154
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 62.215 221.345 7.884 28.050 20.700 2.280 227.158 114.105 0.000 20.898 92.154
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 12.667 12.423
1997 37.881 23.162
1998 56.916 15.899
1999 70.924 10.639
2000 80.808 6.828
2001 87.281 4.068
2002 90.910 2.077
2003 92.147 0.649
2004 92.154 0.004
2005 92.154 0.000
SUB 92.154 75.749
REM 92.154 0.000
TOT 92.154 75.749
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 22-18 #A-3 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 70.388
TX, WARD GROSS WELLS 0.000 1.000 15.00 59.723
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 51.241
NE/4-NE/4 SEC22 GROSS RES. MB & MMF 29.993 817.248 25.00 44.382
SEQ: 259 GROSS ULT. MB & MMF 29.993 817.248 30.00 38.756
INIT W.I 8.333 LIFE/YR 11.500 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 7.022 65.503 0.456 4.258 19.740 2.660 20.336 1.000 27.499 2.027 -10.190
1998 12.653 169.357 0.822 11.008 19.740 2.660 45.517 3.000 0.000 4.646 37.871
1999 5.685 135.115 0.370 8.782 19.740 2.660 30.656 3.000 0.000 3.231 24.426
2000 2.555 107.796 0.166 7.007 19.740 2.660 21.916 3.000 0.000 2.364 16.553
2001 1.148 86.001 0.075 5.590 19.740 2.660 16.342 3.000 0.000 1.789 11.553
2002 0.516 68.613 0.034 4.460 19.740 2.660 12.525 3.000 0.000 1.384 8.141
2003 0.232 54.740 0.015 3.558 19.740 2.660 9.762 3.000 0.000 1.086 5.677
2004 0.104 43.672 0.007 2.839 19.739 2.660 7.685 3.000 0.000 0.856 3.828
2005 0.047 34.842 0.003 2.265 19.742 2.660 6.084 3.000 0.000 0.680 2.405
SUB 29.962 765.639 1.948 49.767 19.740 2.660 170.823 25.000 27.499 18.063 100.264
REM 0.030 51.607 0.002 3.354 19.739 2.660 8.963 6.250 0.000 1.002 1.710
TOT 29.992 817.246 1.950 53.121 19.740 2.660 179.786 31.250 27.499 19.065 101.974
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -10.190 -9.627
1998 27.681 31.676
1999 52.107 18.565
2000 68.660 11.433
2001 80.213 7.254
2002 88.354 4.646
2003 94.031 2.946
2004 97.859 1.807
2005 100.264 1.033
SUB 100.264 69.733
REM 101.974 0.655
TOT 101.974 70.388
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 22-18 A-1 & A-2 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 48.705
TX, WARD GROSS WELLS 2.000 0.000 15.00 43.164
WOLFCAMP GROSS CUM. MB & MMF 172.473 124.436 20.00 38.812
22 BLK 18 ULAND GROSS RES. MB & MMF 72.354 32.348 25.00 35.322
SEQ: 690 GROSS ULT. MB & MMF 244.827 156.784 30.00 32.471
INIT W.I 11.765 LIFE/YR 11.750 RATE-OF-RETURN, % 100.00
INIT N.I 9.186 OPC/W 2009 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.703 1.957 0.432 0.180 20.740 2.280 9.370 2.364 0.000 0.800 6.207
1997 9.805 4.360 0.901 0.401 20.740 2.280 19.593 5.672 0.000 1.675 12.246
1998 8.720 3.924 0.801 0.360 20.740 2.280 17.436 5.672 0.000 1.490 10.273
1999 7.848 3.532 0.721 0.324 20.740 2.280 15.692 5.672 0.000 1.341 8.679
2000 7.063 3.179 0.649 0.292 20.740 2.280 14.123 5.672 0.000 1.207 7.244
2001 6.357 2.861 0.584 0.263 20.740 2.280 12.711 5.672 0.000 1.086 5.952
2002 5.721 2.575 0.526 0.237 20.740 2.280 11.440 5.672 0.000 0.978 4.789
2003 5.149 2.317 0.473 0.213 20.740 2.280 10.296 5.672 0.000 0.880 3.743
2004 4.634 2.085 0.426 0.192 20.740 2.280 9.266 5.672 0.000 0.792 2.802
2005 4.171 1.877 0.383 0.172 20.740 2.280 8.340 5.672 0.000 0.713 1.954
SUB 64.171 28.667 5.895 2.633 20.740 2.280 128.267 53.412 0.000 10.962 63.889
REM 8.181 3.681 0.752 0.338 20.740 2.280 16.359 13.235 0.000 1.398 1.725
TOT 72.352 32.348 6.647 2.972 20.740 2.280 144.626 66.647 0.000 12.360 65.614
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 6.207 6.087
1997 18.453 11.246
1998 28.726 8.572
1999 37.405 6.584
2000 44.649 4.996
2001 50.601 3.733
2002 55.390 2.731
2003 59.133 1.941
2004 61.935 1.321
2005 63.889 0.838
SUB 63.889 48.049
REM 65.614 0.654
TOT 65.614 48.703
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 22-18 B-1 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 0.000
TX, WARD GROSS WELLS 1.000 0.000 15.00 0.000
WOLFCAMP GROSS CUM. MB & MMF 70.595 76.356 20.00 0.000
22 BLK 18 ULAND GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 691 GROSS ULT. MB & MMF 70.595 76.356 30.00 0.000
NO RESERVES, BELOW ECONOMIC LIMIT. INIT W.I 11.765 LIFE/YR 0.000 RATE-OF-RETURN, % 0.00
INIT N.I 9.186 OPC/W 1460 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 23-18 #A-3 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 69.831
TX, WARD GROSS WELLS 0.000 1.000 15.00 59.031
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 50.468
SE/4-NE/4 SEC23 GROSS RES. MB & MMF 29.993 817.248 25.00 43.565
SEQ: 257 GROSS ULT. MB & MMF 29.993 817.248 30.00 37.918
INIT W.I 8.333 LIFE/YR 11.583 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 5.438 49.587 0.353 3.223 19.740 2.660 15.551 0.750 27.499 1.547 -14.245
1998 13.526 172.575 0.879 11.217 19.740 2.660 47.193 3.000 0.000 4.802 39.391
1999 6.077 137.683 0.395 8.949 19.740 2.660 31.603 3.000 0.000 3.322 25.281
2000 2.731 109.845 0.177 7.140 19.740 2.660 22.496 3.000 0.000 2.422 17.074
2001 1.227 87.636 0.080 5.696 19.740 2.660 16.727 3.000 0.000 1.830 11.897
2002 0.551 69.917 0.036 4.545 19.740 2.660 12.796 3.000 0.000 1.413 8.383
2003 0.248 55.780 0.016 3.626 19.740 2.660 9.962 3.000 0.000 1.107 5.855
2004 0.111 44.502 0.007 2.893 19.741 2.660 7.837 3.000 0.000 0.874 3.964
2005 0.050 35.504 0.003 2.308 19.740 2.660 6.203 3.000 0.000 0.693 2.510
SUB 29.959 763.029 1.947 49.597 19.740 2.660 170.368 24.750 27.499 18.010 100.110
REM 0.033 54.220 0.002 3.524 19.740 2.660 9.417 6.500 0.000 1.054 1.865
TOT 29.992 817.249 1.950 53.121 19.740 2.660 179.785 31.250 27.499 19.064 101.975
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -14.245 -13.080
1998 25.146 32.948
1999 50.427 19.215
2000 67.501 11.794
2001 79.398 7.470
2002 87.781 4.785
2003 93.636 3.039
2004 97.600 1.871
2005 100.110 1.078
SUB 100.110 69.120
REM 101.975 0.712
TOT 101.975 69.832
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 23-18 #A-4 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 69.278
TX, WARD GROSS WELLS 0.000 1.000 15.00 58.348
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 49.707
NE/4-SE/4 SEC23 GROSS RES. MB & MMF 29.993 817.248 25.00 42.762
SEQ: 258 GROSS ULT. MB & MMF 29.993 817.248 30.00 37.098
INIT W.I 8.333 LIFE/YR 11.667 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 3.745 33.368 0.243 2.169 19.740 2.660 10.574 0.500 27.499 1.051 -18.475
1998 14.458 175.854 0.940 11.431 19.740 2.660 48.956 3.000 0.000 4.967 40.990
1999 6.496 140.299 0.422 9.119 19.740 2.660 32.593 3.000 0.000 3.419 26.175
2000 2.919 111.932 0.190 7.276 19.740 2.660 23.098 3.000 0.000 2.483 17.616
2001 1.312 89.301 0.085 5.805 19.740 2.660 17.123 3.000 0.000 1.871 12.252
2002 0.589 71.245 0.038 4.631 19.740 2.660 13.074 3.000 0.000 1.444 8.631
2003 0.265 56.840 0.017 3.695 19.741 2.660 10.167 3.000 0.000 1.130 6.038
2004 0.119 45.348 0.008 2.948 19.740 2.660 7.993 3.000 0.000 0.891 4.102
2005 0.053 36.179 0.003 2.352 19.741 2.660 6.324 3.000 0.000 0.706 2.618
SUB 29.956 760.366 1.947 49.424 19.740 2.660 169.902 24.500 27.499 17.962 99.947
REM 0.037 56.881 0.002 3.697 19.739 2.660 9.881 6.750 0.000 1.106 2.026
TOT 29.993 817.247 1.950 53.121 19.740 2.660 179.783 31.250 27.499 19.068 101.973
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -18.475 -16.657
1998 22.515 34.287
1999 48.690 19.895
2000 66.306 12.168
2001 78.558 7.693
2002 87.189 4.926
2003 93.227 3.134
2004 97.329 1.936
2005 99.947 1.124
SUB 99.947 68.506
REM 101.973 0.773
TOT 101.973 69.279
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 23-18 A-1 & A-2 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 24.492
TX, WARD GROSS WELLS 2.000 0.000 15.00 23.224
WOLFCAMP GROSS CUM. MB & MMF 143.020 150.097 20.00 22.115
GROSS RES. MB & MMF 35.107 72.311 25.00 21.137
SEQ: 692 GROSS ULT. MB & MMF 178.127 222.408 30.00 20.269
INIT W.I 8.333 LIFE/YR 5.000 RATE-OF-RETURN, % 100.00
INIT N.I 6.507 OPC/W 2737 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 6.080 9.549 0.396 0.621 20.990 2.660 9.957 2.281 0.000 0.884 6.792
1997 10.253 19.601 0.667 1.275 20.990 2.660 17.397 5.474 0.000 1.559 10.364
1998 6.816 15.681 0.444 1.020 20.990 2.660 12.024 5.474 0.000 1.088 5.462
1999 5.459 12.545 0.355 0.816 20.990 2.660 9.627 5.474 0.000 0.871 3.282
2000 4.367 10.036 0.284 0.653 20.990 2.660 7.702 5.474 0.000 0.697 1.531
2001 2.132 4.899 0.139 0.319 20.990 2.660 3.760 3.193 0.000 0.340 0.227
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 35.107 72.311 2.284 4.705 20.990 2.660 60.467 27.370 0.000 5.439 27.658
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 35.107 72.311 2.284 4.705 20.990 2.660 60.467 27.370 0.000 5.439 27.658
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 6.792 6.664
1997 17.156 9.553
1998 22.618 4.568
1999 25.900 2.498
2000 27.431 1.063
2001 27.658 0.146
2002 27.658 0.000
2003 27.658 0.000
2004 27.658 0.000
2005 27.658 0.000
SUB 27.658 24.492
REM 27.658 0.000
TOT 27.658 24.492
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 24-18 #2 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 68.730
TX, WARD GROSS WELLS 0.000 1.000 15.00 57.672
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 48.958
SE/4-SE/4 SEC 2 GROSS RES. MB & MMF 29.993 817.248 25.00 41.974
SEQ: 256 GROSS ULT. MB & MMF 29.993 817.248 30.00 36.295
INIT W.I 8.333 LIFE/YR 11.750 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 1.935 16.841 0.126 1.095 19.740 2.660 5.394 0.250 27.499 0.535 -22.890
1998 15.455 179.196 1.005 11.648 19.740 2.660 50.813 3.000 0.000 5.139 42.674
1999 6.944 142.965 0.451 9.293 19.740 2.660 33.629 3.000 0.000 3.519 27.111
2000 3.120 114.059 0.203 7.414 19.740 2.660 23.724 3.000 0.000 2.545 18.179
2001 1.402 90.998 0.091 5.915 19.740 2.660 17.532 3.000 0.000 1.914 12.619
2002 0.630 72.599 0.041 4.719 19.740 2.660 13.361 3.000 0.000 1.474 8.887
2003 0.283 57.920 0.018 3.765 19.740 2.660 10.378 3.000 0.000 1.152 6.226
2004 0.127 46.210 0.008 3.004 19.741 2.660 8.153 3.000 0.000 0.909 4.244
2005 0.057 36.867 0.004 2.396 19.738 2.660 6.448 3.000 0.000 0.720 2.728
SUB 29.953 757.655 1.947 49.247 19.740 2.660 169.432 24.250 27.499 17.907 99.778
REM 0.040 59.595 0.003 3.874 19.743 2.660 10.354 7.000 0.000 1.158 2.196
TOT 29.993 817.250 1.950 53.121 19.740 2.660 179.786 31.250 27.499 19.065 101.974
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -22.890 -20.367
1998 19.784 35.698
1999 46.895 20.607
2000 65.074 12.557
2001 77.693 7.923
2002 86.580 5.072
2003 92.806 3.231
2004 97.050 2.003
2005 99.778 1.171
SUB 99.778 67.895
REM 101.974 0.835
TOT 101.974 68.730
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 24-18 A-1 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 0.000
TX, WARD GROSS WELLS 1.000 0.000 15.00 0.000
WOLFCAMP GROSS CUM. MB & MMF 0.000 0.000 20.00 0.000
24 BLK 18 ULAND GROSS RES. MB & MMF 0.000 0.000 25.00 0.000
SEQ: 693 GROSS ULT. MB & MMF 0.000 0.000 30.00 0.000
NO RESERVES, SHUT-IN. INIT W.I 8.333 LIFE/YR 0.083 RATE-OF-RETURN, % 100.00
INIT N.I 6.507 OPC/W 0 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 0.000 0.000
1999 0.000 0.000
2000 0.000 0.000
2001 0.000 0.000
2002 0.000 0.000
2003 0.000 0.000
2004 0.000 0.000
2005 0.000 0.000
SUB 0.000 0.000
REM 0.000 0.000
TOT 0.000 0.000
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 9-18 #A-3 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 68.186
TX, WARD GROSS WELLS 0.000 1.000 15.00 57.004
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 48.220
SW/4-NE/4 SEC 9 GROSS RES. MB & MMF 29.993 817.248 25.00 41.201
SEQ: 254 GROSS ULT. MB & MMF 29.993 817.248 30.00 35.510
INIT W.I 8.333 LIFE/YR 11.833 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 27.499 0.000 -27.499
1998 16.520 182.601 1.074 11.869 19.740 2.660 52.769 3.000 0.000 5.320 44.449
1999 7.423 145.681 0.482 9.469 19.740 2.660 34.713 3.000 0.000 3.622 28.090
2000 3.335 116.226 0.217 7.555 19.740 2.660 24.375 3.000 0.000 2.611 18.764
2001 1.499 92.727 0.097 6.027 19.740 2.660 17.955 3.000 0.000 1.958 12.998
2002 0.673 73.978 0.044 4.809 19.740 2.660 13.655 3.000 0.000 1.505 9.150
2003 0.303 59.021 0.020 3.836 19.740 2.660 10.593 3.000 0.000 1.175 6.417
2004 0.136 47.088 0.009 3.061 19.740 2.660 8.316 3.000 0.000 0.927 4.389
2005 0.061 37.567 0.004 2.442 19.739 2.660 6.574 3.000 0.000 0.734 2.840
SUB 29.950 754.889 1.947 49.068 19.740 2.660 168.950 24.000 27.499 17.852 99.598
REM 0.042 62.358 0.003 4.053 19.742 2.660 10.836 7.250 0.000 1.212 2.375
TOT 29.992 817.247 1.950 53.121 19.740 2.660 179.786 31.250 27.499 19.064 101.973
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 -27.499 -24.217
1998 16.950 37.184
1999 45.040 21.352
2000 63.804 12.962
2001 76.802 8.161
2002 85.952 5.222
2003 92.369 3.330
2004 96.758 2.071
2005 99.598 1.219
SUB 99.598 67.284
REM 101.973 0.902
TOT 101.973 68.186
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
G-PROBABLE UNDEVE PRIMARY
UNIVERSITY 9-18 #A-4 PROBABLE P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH ---------- ---------- 10.00 67.647
TX, WARD GROSS WELLS 0.000 1.000 15.00 56.344
CHERRY CANYON GROSS CUM. MB & MMF 0.000 0.000 20.00 47.493
SW/4-NE/4 SEC 9 GROSS RES. MB & MMF 29.993 817.248 25.00 40.442
SEQ: 255 GROSS ULT. MB & MMF 29.993 817.248 30.00 34.742
INIT W.I 8.333 LIFE/YR 11.917 RATE-OF-RETURN, % 100.00
INIT N.I 6.500 OPC/W 3000 UNDISC NET/INVEST 4.71
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1997 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
1998 15.591 168.910 1.013 10.979 19.740 2.660 49.209 2.750 27.499 4.955 14.006
1999 7.935 148.450 0.516 9.649 19.740 2.660 35.848 3.000 0.000 3.731 29.117
2000 3.565 118.435 0.232 7.698 19.740 2.660 25.052 3.000 0.000 2.678 19.374
2001 1.602 94.489 0.104 6.142 19.740 2.660 18.393 3.000 0.000 2.003 13.390
2002 0.720 75.384 0.047 4.900 19.740 2.660 13.958 3.000 0.000 1.538 9.420
2003 0.323 60.142 0.021 3.909 19.740 2.660 10.814 3.000 0.000 1.200 6.614
2004 0.145 47.982 0.009 3.119 19.741 2.660 8.483 3.000 0.000 0.945 4.538
2005 0.065 38.281 0.004 2.488 19.738 2.660 6.703 3.000 0.000 0.748 2.954
SUB 29.946 752.073 1.947 48.885 19.740 2.660 168.460 23.750 27.499 17.798 99.413
REM 0.046 65.175 0.003 4.236 19.738 2.660 11.328 7.500 0.000 1.268 2.562
TOT 29.992 817.248 1.950 53.121 19.740 2.660 179.788 31.250 27.499 19.066 101.975
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.000 0.000
1997 0.000 0.000
1998 14.006 10.535
1999 43.123 22.133
2000 62.497 13.383
2001 75.887 8.407
2002 85.307 5.377
2003 91.921 3.432
2004 96.459 2.141
2005 99.413 1.268
SUB 99.413 66.676
REM 101.975 0.970
TOT 101.975 67.646
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 9-18 -B- P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
WAR-WINK SOUTH (WOLFCAMP) ---------- ---------- 10.00 21.846
TX, WARD GROSS WELLS 1.000 0.000 15.00 19.939
WOLFCAMP GROSS CUM. MB & MMF 100.734 137.576 20.00 18.364
9 BLK 18 ULAND GROSS RES. MB & MMF 30.269 82.000 25.00 17.044
SEQ: 694 GROSS ULT. MB & MMF 131.003 219.576 30.00 15.925
INIT W.I 8.330 LIFE/YR 8.417 RATE-OF-RETURN, % 100.00
INIT N.I 6.507 OPC/W UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 2.659 8.594 0.173 0.559 20.660 2.310 4.866 1.044 0.000 0.445 3.377
1997 5.693 17.641 0.370 1.148 20.660 2.310 10.305 2.506 0.000 0.941 6.858
1998 4.839 14.113 0.315 0.918 20.660 2.310 8.626 2.506 0.000 0.785 5.335
1999 4.113 11.290 0.268 0.735 20.660 2.310 7.226 2.506 0.000 0.656 4.065
2000 3.496 9.032 0.227 0.588 20.660 2.310 6.058 2.506 0.000 0.548 3.004
2001 2.972 7.226 0.193 0.470 20.660 2.310 5.081 2.506 0.000 0.458 2.117
2002 2.526 5.781 0.164 0.376 20.660 2.310 4.265 2.506 0.000 0.383 1.375
2003 2.147 4.624 0.140 0.301 20.660 2.310 3.581 2.506 0.000 0.321 0.755
2004 1.825 3.700 0.119 0.241 20.660 2.310 3.009 2.506 0.000 0.269 0.235
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 30.270 82.001 1.970 5.336 20.660 2.310 53.017 21.092 0.000 4.806 27.121
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 30.270 82.001 1.970 5.336 20.660 2.310 53.017 21.092 0.000 4.806 27.121
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 3.377 3.312
1997 10.235 6.298
1998 15.570 4.455
1999 19.635 3.086
2000 22.639 2.074
2001 24.756 1.330
2002 26.131 0.786
2003 26.886 0.393
2004 27.121 0.112
2005 27.121 0.000
SUB 27.121 21.846
REM 27.121 0.000
TOT 27.121 21.846
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
UNIVERSITY 9-18 A-1 P.W. % P.W., M$
TEXACO EXPL & PROD INC OIL GAS ------ --------
BLOCK 18 (CHERRY CANYON) ---------- ---------- 10.00 68.894
TX, WARD GROSS WELLS 1.000 0.000 15.00 62.478
CHERRY CANYON GROSS CUM. MB & MMF 2.217 26.270 20.00 57.260
GROSS RES. MB & MMF 45.803 412.226 25.00 52.944
SEQ: 703 GROSS ULT. MB & MMF 48.020 438.496 30.00 49.324
INIT W.I 8.333 LIFE/YR 10.167 RATE-OF-RETURN, % 100.00
INIT N.I 6.940 OPC/W 3035 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.536 40.823 0.315 2.833 20.660 2.280 12.963 1.265 0.000 1.271 10.428
1997 9.310 83.794 0.646 5.815 20.660 2.280 26.608 3.035 0.000 2.608 20.965
1998 7.448 67.035 0.517 4.652 20.660 2.280 21.287 3.035 0.000 2.087 16.165
1999 5.959 53.628 0.414 3.722 20.660 2.280 17.029 3.035 0.000 1.669 12.325
2000 4.767 42.903 0.331 2.977 20.660 2.280 13.623 3.035 0.000 1.336 9.253
2001 3.814 34.322 0.265 2.382 20.660 2.280 10.899 3.035 0.000 1.069 6.795
2002 3.051 27.458 0.212 1.906 20.660 2.280 8.719 3.035 0.000 0.855 4.829
2003 2.441 21.966 0.169 1.524 20.660 2.280 6.975 3.035 0.000 0.684 3.256
2004 1.953 17.573 0.136 1.220 20.660 2.280 5.580 3.035 0.000 0.547 1.998
2005 1.562 14.058 0.108 0.976 20.660 2.280 4.464 3.035 0.000 0.438 0.992
SUB 44.841 403.560 3.112 28.007 20.660 2.280 128.147 28.580 0.000 12.564 87.006
REM 0.963 8.666 0.067 0.601 20.660 2.280 2.752 2.276 0.000 0.269 0.206
TOT 45.804 412.226 3.179 28.608 20.660 2.280 130.899 30.856 0.000 12.833 87.212
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 10.428 10.227
1997 31.393 19.257
1998 47.558 13.499
1999 59.883 9.358
2000 69.136 6.388
2001 75.931 4.265
2002 80.760 2.757
2003 84.016 1.691
2004 86.014 0.944
2005 87.006 0.427
SUB 87.006 68.813
REM 87.212 0.082
TOT 87.212 68.895
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WALKER, P., ET AL 2-L P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (ELLENBURGER) ---------- ---------- 10.00 3.167
TX, WARD GROSS WELLS 0.000 1.000 15.00 2.858
ELLENBURGER GROSS CUM. MB & MMF 0.000 496.455 20.00 2.607
GROSS RES. MB & MMF 0.000 99.207 25.00 2.398
SEQ: 704 GROSS ULT. MB & MMF 0.000 595.662 30.00 2.223
INIT W.I 15.625 LIFE/YR 8.500 RATE-OF-RETURN, % 100.00
INIT N.I 12.810 OPC/W 1000 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.000 5.936 0.000 0.760 0.000 1.770 1.346 0.781 0.000 0.151 0.414
1997 0.000 13.740 0.000 1.760 0.000 1.770 3.115 1.875 0.000 0.349 0.892
1998 0.000 13.053 0.000 1.672 0.000 1.770 2.960 1.875 0.000 0.332 0.753
1999 0.000 12.400 0.000 1.589 0.000 1.770 2.812 1.875 0.000 0.315 0.622
2000 0.000 11.780 0.000 1.509 0.000 1.770 2.671 1.875 0.000 0.299 0.497
2001 0.000 11.191 0.000 1.434 0.000 1.770 2.538 1.875 0.000 0.284 0.378
2002 0.000 10.632 0.000 1.362 0.000 1.770 2.411 1.875 0.000 0.270 0.266
2003 0.000 10.100 0.000 1.294 0.000 1.770 2.290 1.875 0.000 0.257 0.159
2004 0.000 9.595 0.000 1.229 0.000 1.770 2.176 1.875 0.000 0.243 0.057
2005 0.000 0.778 0.000 0.100 0.000 1.770 0.176 0.156 0.000 0.020 0.000
SUB 0.000 99.205 0.000 12.709 0.000 1.770 22.495 15.937 0.000 2.520 4.038
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.000 99.205 0.000 12.709 0.000 1.770 22.495 15.937 0.000 2.520 4.038
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.414 0.406
1997 1.306 0.818
1998 2.059 0.629
1999 2.681 0.472
2000 3.178 0.343
2001 3.556 0.237
2002 3.822 0.152
2003 3.981 0.083
2004 4.038 0.027
2005 4.038 0.000
SUB 4.038 3.167
REM 4.038 0.000
TOT 4.038 3.167
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WALKER, P., ET AL 4 P.W. % P.W., M$
CHEVRON OIL GAS ------ --------
EAST QUITO (CHERRY CANYON) ---------- ---------- 10.00 13.626
TX, WARD GROSS WELLS 0.000 1.000 15.00 12.146
CHERRY CANYON GROSS CUM. MB & MMF 2.044 1499.987 20.00 10.963
SEC 40 AJ WILSN GROSS RES. MB & MMF 0.000 322.128 25.00 10.002
SEQ: 697 GROSS ULT. MB & MMF 2.044 1822.115 30.00 9.208
INIT W.I 15.625 LIFE/YR 10.000 RATE-OF-RETURN, % 100.00
INIT N.I 12.810 OPC/W 2500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
1996 0.000 17.770 0.000 2.276 0.000 1.770 4.029 1.953 0.000 0.451 1.625
1997 0.000 40.824 0.000 5.230 0.000 1.770 9.257 4.687 0.000 1.036 3.532
1998 0.000 38.375 0.000 4.916 0.000 1.770 8.701 4.687 0.000 0.975 3.039
1999 0.000 36.072 0.000 4.621 0.000 1.770 8.179 4.687 0.000 0.916 2.576
2000 0.000 33.908 0.000 4.344 0.000 1.770 7.688 4.687 0.000 0.861 2.140
2001 0.000 31.874 0.000 4.083 0.000 1.770 7.227 4.687 0.000 0.809 1.730
2002 0.000 29.961 0.000 3.838 0.000 1.770 6.793 4.687 0.000 0.761 1.345
2003 0.000 28.164 0.000 3.608 0.000 1.770 6.386 4.687 0.000 0.715 0.983
2004 0.000 26.474 0.000 3.391 0.000 1.770 6.003 4.687 0.000 0.672 0.643
2005 0.000 24.885 0.000 3.188 0.000 1.770 5.642 4.687 0.000 0.632 0.323
SUB 0.000 308.307 0.000 39.495 0.000 1.770 69.905 44.136 0.000 7.828 17.936
REM 0.000 13.821 0.000 1.770 0.000 1.770 3.134 2.734 0.000 0.351 0.049
TOT 0.000 322.128 0.000 41.265 0.000 1.770 73.039 46.870 0.000 8.179 17.985
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 1.625 1.593
1997 5.157 3.242
1998 8.196 2.536
1999 10.772 1.954
2000 12.912 1.476
2001 14.642 1.085
2002 15.987 0.767
2003 16.970 0.510
2004 17.613 0.304
2005 17.936 0.139
SUB 17.936 13.606
REM 17.985 0.019
TOT 17.985 13.625
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WALKER, P., ET AL 5 & 6 P.W. % P.W., M$
CHEVRON U S A INC OIL GAS ------ --------
QUITO EAST (CHERRY CANYON) ---------- ---------- 10.00 83.437
TX, WARD GROSS WELLS 0.000 1.000 15.00 71.659
CHERRY CANYON GROSS CUM. MB & MMF 12.280 546.167 20.00 62.882
GROSS RES. MB & MMF 14.876 956.452 25.00 56.137
SEQ: 698 GROSS ULT. MB & MMF 27.156 1502.619 30.00 50.816
INIT W.I 15.625 LIFE/YR 16.083 RATE-OF-RETURN, % 100.00
INIT N.I 12.810 OPC/W 3500 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.783 44.227 0.100 5.666 20.970 1.770 12.131 2.734 0.000 1.300 8.096
1997 1.744 100.082 0.223 12.821 20.970 1.770 27.378 6.562 0.000 2.935 17.879
1998 1.570 92.075 0.201 11.795 20.970 1.770 25.094 6.562 0.000 2.693 15.838
1999 1.413 84.709 0.181 10.851 20.970 1.770 23.002 6.562 0.000 2.470 13.969
2000 1.271 77.933 0.163 9.983 20.970 1.770 21.086 6.562 0.000 2.266 12.257
2001 1.144 71.698 0.147 9.185 20.970 1.770 19.331 6.562 0.000 2.080 10.689
2002 1.030 65.962 0.132 8.450 20.970 1.770 17.723 6.562 0.000 1.908 9.252
2003 0.927 60.685 0.119 7.774 20.970 1.770 16.250 6.562 0.000 1.751 7.937
2004 0.834 55.830 0.107 7.152 20.970 1.770 14.900 6.562 0.000 1.606 6.731
2005 0.751 51.364 0.096 6.580 20.970 1.770 13.663 6.562 0.000 1.474 5.627
SUB 11.467 704.565 1.469 90.256 20.970 1.770 190.558 61.792 0.000 20.483 108.275
REM 3.410 251.886 0.437 32.267 20.970 1.770 66.272 43.747 0.000 7.166 15.355
TOT 14.877 956.451 1.906 122.523 20.970 1.770 256.830 105.539 0.000 27.649 123.630
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 8.096 7.939
1997 25.975 16.405
1998 41.813 13.212
1999 55.782 10.593
2000 68.039 8.450
2001 78.728 6.700
2002 87.980 5.273
2003 95.917 4.112
2004 102.648 3.171
2005 108.275 2.410
SUB 108.275 78.265
REM 123.630 5.174
TOT 123.630 83.439
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WELLS GAS UNIT 2-T P.W. % P.W., M$
HOPEWELL OPERATING INC OIL GAS ------ --------
WASKOM ---------- ---------- 10.00 0.547
TX, PANOLA GROSS WELLS 0.000 1.000 15.00 0.533
COTTON VALLEY GROSS CUM. MB & MMF 3.022 835.565 20.00 0.520
GROSS RES. MB & MMF 0.167 16.661 25.00 0.508
SEQ: 710 GROSS ULT. MB & MMF 3.189 852.226 30.00 0.496
INIT W.I 20.622 LIFE/YR 1.917 RATE-OF-RETURN, % 100.00
INIT N.I 16.907 OPC/W 1177 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.039 3.913 0.007 0.662 19.739 2.260 1.626 1.214 0.000 0.178 0.234
1997 0.087 8.720 0.015 1.474 19.740 2.260 3.623 2.913 0.000 0.397 0.313
1998 0.040 4.027 0.007 0.681 19.740 2.260 1.673 1.456 0.000 0.184 0.033
1999 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.166 16.660 0.028 2.817 19.740 2.260 6.922 5.583 0.000 0.759 0.580
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.166 16.660 0.028 2.817 19.740 2.260 6.922 5.583 0.000 0.759 0.580
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 0.234 0.229
1997 0.547 0.289
1998 0.580 0.029
1999 0.580 0.000
2000 0.580 0.000
2001 0.580 0.000
2002 0.580 0.000
2003 0.580 0.000
2004 0.580 0.000
2005 0.580 0.000
SUB 0.580 0.547
REM 0.580 0.000
TOT 0.580 0.547
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WELLS, M. W. 1-T P.W. % P.W., M$
HOPEWELL OPERATING INC OIL GAS ------ --------
WASKOM (TRAVIS PEAK 1) ---------- ---------- 10.00 76.074
TX, HARRISON GROSS WELLS 1.000 0.000 15.00 72.472
TRAVIS PEAK 1 GROSS CUM. MB & MMF 3.994 7547.874 20.00 69.287
GROSS RES. MB & MMF 0.716 295.470 25.00 66.452
SEQ: 287 GROSS ULT. MB & MMF 4.710 7843.344 30.00 63.912
INIT W.I 20.622 LIFE/YR 4.583 RATE-OF-RETURN, % 100.00
INIT N.I 16.907 OPC/W 2515 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.152 62.677 0.026 10.597 19.740 2.430 26.257 2.593 0.000 2.198 21.466
1997 0.256 105.698 0.043 17.870 19.740 2.430 44.280 6.224 0.000 3.706 34.350
1998 0.154 63.419 0.026 10.722 19.740 2.430 26.568 6.224 0.000 2.224 18.121
1999 0.092 38.051 0.016 6.433 19.740 2.430 15.941 6.224 0.000 1.335 8.383
2000 0.055 22.831 0.009 3.860 19.739 2.430 9.564 6.224 0.000 0.801 2.540
2001 0.007 2.795 0.001 0.473 19.732 2.430 1.171 1.037 0.000 0.098 0.036
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 0.716 295.471 0.121 49.955 19.740 2.430 123.781 28.526 0.000 10.362 84.896
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 0.716 295.471 0.121 49.955 19.740 2.430 123.781 28.526 0.000 10.362 84.896
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 21.466 21.062
1997 55.816 31.638
1998 73.937 15.182
1999 82.320 6.395
2000 84.860 1.774
2001 84.896 0.023
2002 84.896 0.000
2003 84.896 0.000
2004 84.896 0.000
2005 84.896 0.000
SUB 84.896 76.074
REM 84.896 0.000
TOT 84.896 76.074
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
WYNN 1 P.W. % P.W., M$
LATEX OIL GAS ------ --------
STUART RANCH ---------- ---------- 10.00 182.869
TX, LIPSCOMB GROSS WELLS 0.000 1.000 15.00 147.911
LATEX GROSS CUM. MB & MMF 9.170 927.009 20.00 124.869
141 43 H/TC GROSS RES. MB & MMF 5.070 582.778 25.00 108.581
SEQ: 225 GROSS ULT. MB & MMF 14.240 1509.787 30.00 96.466
INIT W.I 41.453 LIFE/YR 39.917 RATE-OF-RETURN, % 100.00
INIT N.I 30.888 OPC/W 253 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 0.180 20.639 0.055 6.375 19.250 2.360 16.113 0.524 0.000 1.775 13.814
1997 0.406 46.705 0.126 14.426 19.250 2.360 36.462 1.259 0.000 4.017 31.187
1998 0.374 42.968 0.115 13.272 19.250 2.360 33.545 1.259 0.000 3.695 28.591
1999 0.344 39.531 0.106 12.210 19.250 2.360 30.861 1.259 0.000 3.399 26.203
2000 0.316 36.369 0.098 11.234 19.250 2.360 28.392 1.259 0.000 3.128 24.006
2001 0.291 33.459 0.090 10.335 19.250 2.360 26.121 1.259 0.000 2.877 21.985
2002 0.268 30.782 0.083 9.508 19.250 2.360 24.031 1.259 0.000 2.647 20.126
2003 0.246 28.320 0.076 8.747 19.250 2.360 22.109 1.259 0.000 2.436 18.415
2004 0.227 26.054 0.070 8.048 19.250 2.360 20.340 1.259 0.000 2.240 16.841
2005 0.209 23.970 0.064 7.404 19.250 2.360 18.713 1.259 0.000 2.062 15.393
SUB 2.861 328.797 0.884 101.559 19.250 2.360 256.687 11.855 0.000 28.276 216.561
REM 2.209 253.979 0.683 78.450 19.250 2.360 198.283 38.398 0.000 21.840 138.054
TOT 5.070 582.776 1.566 180.009 19.250 2.360 454.970 50.253 0.000 50.116 354.615
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 13.814 13.544
1997 45.001 28.608
1998 73.592 23.843
1999 99.795 19.865
2000 123.801 16.545
2001 145.786 13.775
2002 165.912 11.463
2003 184.327 9.535
2004 201.168 7.928
2005 216.561 6.587
SUB 216.561 151.693
REM 354.615 31.175
TOT 354.615 182.868
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
AMKIRK UNIT P.W. % P.W., M$
UNION PACIFIC RESOURCES OIL GAS ------ --------
AM-KIRK ---------- --------- 10.00 101.200
WY, CAMPBELL GROSS WELLS 1.000 0.000 15.00 95.102
MINN-DAKOTA GROSS CUM. MB & MMF 866.876 64.475 20.00 89.783
5 - 46N- 70W GROSS RES. MB & MMF 321.555 0.000 25.00 85.108
SEQ: 551 GROSS ULT. MB & MMF 1188.431 64.475 30.00 80.969
INIT W.I 5.407 LIFE/YR 4.917 RATE-OF-RETURN, % 100.00
INIT N.I 4.330 OPC/W 33180 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 40.000 0.000 1.732 0.000 19.640 0.000 34.016 8.970 0.000 6.360 18.686
1997 93.696 0.000 4.057 0.000 19.640 0.000 79.680 21.529 0.000 14.898 43.253
1998 74.002 0.000 3.204 0.000 19.640 0.000 62.932 21.529 0.000 11.767 29.637
1999 55.501 0.000 2.403 0.000 19.640 0.000 47.199 21.529 0.000 8.825 16.845
2000 41.626 0.000 1.802 0.000 19.640 0.000 35.399 21.529 0.000 6.619 7.252
2001 16.730 0.000 0.724 0.000 19.640 0.000 14.228 10.764 0.000 2.660 0.803
2002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2004 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
2005 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
SUB 321.555 0.000 13.923 0.000 19.640 0.000 273.454 105.850 0.000 51.129 116.476
REM 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOT 321.555 0.000 13.923 0.000 19.640 0.000 273.454 105.850 0.000 51.129 116.476
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 18.686 18.320
1997 61.939 39.699
1998 91.576 24.794
1999 108.421 12.828
2000 115.673 5.039
2001 116.476 0.519
2002 116.476 0.000
2003 116.476 0.000
2004 116.476 0.000
2005 116.476 0.000
SUB 116.476 101.199
REM 116.476 0.000
TOT 116.476 101.199
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
BLUE FOREST UNIT P.W. % P.W., M$
HS RESOURCES, INC OIL GAS ------ --------
BLUE FOREST ---------- ---------- 10.00 88.664
WY, SWEETWATER GROSS WELLS 15.000 0.000 15.00 74.870
DAKOTA GROSS CUM. MB & MMF 2651.781 100723.256 20.00 65.047
31 25N 110W GROSS RES. MB & MMF 799.304 41521.016 25.00 57.725
SEQ: 60 GROSS ULT. MB & MMF 3451.085 142244.272 30.00 52.068
INIT W.I 0.205 LIFE/YR 25.500 RATE-OF-RETURN, % 100.00
INIT N.I 0.162 OPC/W 37030 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 36.840 2239.705 0.060 3.638 21.910 2.440 10.186 0.380 0.000 1.455 8.351
1997 82.088 4912.715 0.133 7.979 21.910 2.440 22.389 0.911 0.000 3.200 18.278
1998 73.879 4323.189 0.120 7.021 21.910 2.440 19.761 0.911 0.000 2.824 16.026
1999 66.491 3804.407 0.108 6.179 21.910 2.440 17.442 0.911 0.000 2.492 14.038
2000 59.842 3347.878 0.097 5.437 21.910 2.440 15.396 0.911 0.000 2.200 12.285
2001 53.858 2946.133 0.087 4.785 21.910 2.440 13.591 0.911 0.000 1.942 10.738
2002 48.472 2592.597 0.079 4.211 21.910 2.440 11.999 0.911 0.000 1.715 9.373
2003 43.625 2281.485 0.071 3.705 21.910 2.440 10.593 0.911 0.000 1.513 8.168
2004 39.262 2007.707 0.064 3.261 21.910 2.440 9.353 0.911 0.000 1.337 7.105
2005 35.336 1766.782 0.057 2.869 21.910 2.440 8.259 0.911 0.000 1.180 6.167
SUB 539.693 30222.598 0.877 49.085 21.910 2.440 138.969 8.579 0.000 19.858 110.529
REM 259.610 11298.418 0.422 18.350 21.910 2.440 54.011 14.652 0.000 7.723 31.632
TOT 799.303 41521.016 1.298 67.434 21.910 2.440 192.980 23.231 0.000 27.581 142.161
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
--(M$)--- ---(M$)----
<S> <C> <C>
1996 8.351 8.189
1997 26.629 16.773
1998 42.655 13.369
1999 56.693 10.646
2000 68.978 8.470
2001 79.716 6.730
2002 89.089 5.341
2003 97.257 4.231
2004 104.362 3.346
2005 110.529 2.640
SUB 110.529 79.735
REM 142.161 8.930
TOT 142.161 88.665
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
<PAGE>
On the page preceding this table is a Decline Curve consisting of a line graph
depicting actual and estimated production, as applicable, calculated as of
October 25, 1996, of oil and gas, measured in barrels and thousands of cubic
feet, respectively, at this lease in the years 1988 through 2007, inclusive.
LEE KEELING AND ASSOCIATES, INC.
FORECAST OF PRODUCTION, INCOME AND NET REVENUE AS OF JULY 31, 1996
APPRAISAL INTERESTS OWNED BY LATEX RESOURCES, INC.
CONSTANT PRICES AND EXPENSES
<TABLE>
<S> <C>
A-PROVED DEVE PRODUCING
SIMPSON NW NW P.W. % P.W., M$
STEWART PETROLEUM CORP OIL GAS ------ --------
SIMPSON RANCH (MINNELUSA) ---------- ---------- 10.00 75.073
WY, CAMPBELL GROSS WELLS 1.000 0.000 15.00 59.452
MINNELUSA GROSS CUM. MB & MMF 208.052 0.303 20.00 49.489
15 51N 69W GROSS RES. MB & MMF 126.069 0.000 25.00 42.608
SEQ: 552 GROSS ULT. MB & MMF 334.121 0.303 30.00 37.576
INIT W.I 18.470 LIFE/YR 42.667 RATE-OF-RETURN, % 100.00
INIT N.I 12.313 OPC/W 430 UNDISC NET/INVEST 0.00
</TABLE>
<TABLE>
<CAPTION>
GROSS GROSS NET NET NET OIL NET GAS OPERATING OPERATING FUTURE SEV & ADV FUTURE NET
OIL GAS OIL GAS PRICE PRICE INCOME EXPENSE EXPENSE TAX REVENUE
---(MB)--- --(MMCF)-- ---(MB)--- --(MMCF)-- -($/BBL)-- -($/MCF)-- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)--- ---(M$)---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 3.455 0.000 0.425 0.000 15.890 0.000 6.760 0.397 0.000 1.264 5.099
1997 7.938 0.000 0.977 0.000 15.890 0.000 15.531 0.953 0.000 2.904 11.674
1998 7.462 0.000 0.919 0.000 15.890 0.000 14.599 0.953 0.000 2.730 10.916
1999 7.014 0.000 0.864 0.000 15.890 0.000 13.723 0.953 0.000 2.566 10.204
2000 6.593 0.000 0.812 0.000 15.890 0.000 12.900 0.953 0.000 2.412 9.535
2001 6.198 0.000 0.763 0.000 15.890 0.000 12.126 0.953 0.000 2.268 8.905
2002 5.826 0.000 0.717 0.000 15.890 0.000 11.398 0.953 0.000 2.131 8.314
2003 5.476 0.000 0.674 0.000 15.890 0.000 10.714 0.953 0.000 2.004 7.758
2004 5.148 0.000 0.634 0.000 15.890 0.000 10.071 0.953 0.000 1.883 7.235
2005 4.839 0.000 0.596 0.000 15.890 0.000 9.467 0.953 0.000 1.770 6.744
SUB 59.949 0.000 7.381 0.000 15.890 0.000 117.289 8.974 0.000 21.932 86.384
REM 66.121 0.000 8.141 0.000 15.890 0.000 129.364 31.688 0.000 24.185 73.487
TOT 126.070 0.000 15.523 0.000 15.890 0.000 246.653 40.662 0.000 46.117 159.871
<CAPTION>
CUM. NET PRESENT WTH
REVENUE @10%
---(M$)--- ---(M$)----
<S> <C> <C>
1996 5.099 5.000
1997 16.773 10.707
1998 27.689 9.102
1999 37.893 7.735
2000 47.428 6.570
2001 56.333 5.579
2002 64.647 4.735
2003 72.405 4.016
2004 79.640 3.405
2005 86.384 2.886
SUB 86.384 59.735
REM 159.871 15.340
TOT 159.871 75.075
</TABLE>
THIS SCHEDULE IS PART OF A REPORT AND SUBJECT TO QUALIFICATIONS OF THE REPORT.
