June 30,        December 31,
                                                                                   2000             1999
                                                                                -----------      ------------
                                                                                (Unaudited)
                               ASSETS
Current assets:
   Cash and cash equivalents                                                     $   1,031        $   1,018
   Accounts receivable and accrued sales                                             3,380            2,166
   Inventory                                                                         1,329            1,287
   Other current assets                                                                216              306
   Net current assets of discontinued operations                                       473            2,140
                                                                                 ---------        ---------
            Total current assets                                                     6,429            6,917
                                                                                 ---------        ---------

Property and equipment, at cost:
   Oil and gas properties (successful efforts method)                              176,802          170,217
   Accumulated depletion, depreciation and amortization                            (31,244)         (27,805)
                                                                                 ---------        ---------
                                                                                   145,558          142,412
   Other property and equipment, net                                                 2,052            2,437
   Other long-term assets                                                            1,543            1,892
                                                                                 ---------        ---------
            Total assets                                                         $ 155,582        $ 153,658
                                                                                 =========        =========

                   LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable                                                              $   1,801        $   3,422
   Accrued expenses                                                                  1,218            1,759
   Current portion of long-term debt                                                                    266
                                                                                 ---------        ---------
            Total current liabilities                                                3,019            5,447
                                                                                 ---------        ---------

Long-term debt                                                                      82,500           79,072

Commitments

Mandatorily redeemable preferred stock:
   Series D stock, 10,757,747 shares issued and outstanding,
     liquidation preference of $80.7 million                                        65,123           61,973
   Accrued preferred series D dividends                                              7,128            2,262
   Series E stock, 121,973 shares issued and outstanding,
     liquidation preference of $12.2 million                                         8,670            8,220
   Accrued preferred series E dividends                                              1,103              350

Stockholders' deficit:
   Preferred Class A stock, par value $.001, 20,000,000 shares authorized,
     Series D and Series E outstanding
   Common stock, par value $.001; 25,000,000 shares authorized,
     2,897,732 shares issued and outstanding                                             3                3
   Additional paid-in capital                                                       60,376           69,595
   Accumulated deficit                                                             (72,340)         (73,264)
                                                                                 ---------        ---------
            Total stockholders' equity                                             (11,961)          (3,666)
                                                                                 ---------        ---------
            Total liabilities and stockholders' equity                           $ 155,582        $ 153,658
                                                                                 =========        =========