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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
      Report Pursuant to Section 13 or 15(d) of</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report: June 15, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Date
      of Earliest Event Reported: June 12, 2006</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><u>NATURAL
      GAS SYSTEMS, INC.</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in its Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Nevada</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
      or
      Other Jurisdiction of Incorporation)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

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            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">0-27862</font></u></div>
            </td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">41-1781991</font></u><font id="TAB2" style="COLOR: black; LETTER-SPACING: 99pt">&#160;</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(Commission
                File Number)</font></div>
            </td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(I.R.S.
                Employer Identification
                No.)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

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            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">820
                Gessner, Suite 1340, Houston,
                Texas</font></u></div>
            </td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">77024</font></u></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(Address
                of Principal Executive
                Offices)</font></div>
            </td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(Zip
                Code)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>(713)
      935-0122</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant's
      Telephone Number, Including Area Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div>&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>TABLE
      OF CONTENTS</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font size="2">Item
      1.02&#160;Termination of a Material Definitve
      Agreement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
      2.01
      Completion of Acquisition or Disposition of Assets</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2">Item
      9.01 Financial Statements and Exhibits</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signatures</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        previously reported in a Current Report on Form 8-K filed by Natural Gas
        Systems, Inc. ("NGS" or the "Company") with the SEC on March 8, 2006, the
        Company entered a subordinated loan agreement with Laird Q. Cagan, the Chairman
        of the Board of Directors of the Company, whereby Mr. Cagan loaned the Company
        $250,000 (the "Subordinated Note"). The Subordinated Note had a one year
        term
        and accrued interest at 10%, payable at maturity. On June 13, 2006, the Company
        voluntarily prepaid all amounts due under the Loan Agreement totaling $257,058,
        representing the then-outstanding principal balance and all accrued and unpaid
        interest.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF
      ASSETS.</strong></font></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      previously reported in a Current Report on Form 8-K filed by the Company with
      the SEC on May 11, 2006, NGS, through our wholly-owned subsidiary NGS Sub Corp,
      entered&#160;into a&#160;Purchase and Sale Agreement (the &#8220;Sale Agreement&#8221;) with
      Denbury Onshore, LLC., a subsidiary of Denbury Resources, Inc. (NYSE symbol:
      DNR, hereinafter referred to as &#8220;Denbury&#8221;) on May&#160;8, 2006 to conduct an
      enhanced oil recovery project in the Company&#8217;s Delhi Holt Bryant Unit within the
      Delhi Field in northeast Louisiana (the &#8220;Delhi Unit&#8221;). On June 12, 2006, NGS
      received $50 million and delivered to Denbury an initial 100% working interest
      and 80% net revenue interest in the Delhi Unit, <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      a 75%
      working interest and an 80% net revenue interest (proportionately reduced to
      60%) in certain other depths in the Delhi Field.</font>&#160;NGS retained a
      separate 4.8% royalty interest in the Delhi Field (including the Delhi Unit)
      and
      a 25% working interest in certain other depths of the Delhi Field (excluding
      the
      Delhi Unit, except as described below). Under the terms of the Sale Agreement,
      Denbury has agreed to contribute all development capital, technical expertise
      and required amounts of proven reserves of carbon dioxide that will be injected
      into the Delhi Unit oil reservoirs. After the project generates $200 million
      of
      net cash flows before capital expenditures for Denbury, NGS will regain a 25%
      working interest (20% net revenue interest) in the Delhi Unit. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        tax
        purposes, the parties to the Sale Agreement made certain non-material changes
        and bifurcated the original Sale Agreement into two (2) separate agreements
        in
        order to assist in the consummation of a like-kind exchange. The final closing
        documents for the revised Sale Agreement are attached hereto as the Purchase
        and
        Sale Agreement I, the Purchase and Sale Agreement II, the Unit Operating
        Agreement, and the Conveyance, Assignment and Bill of Sale Agreement, attached
        hereto as Exhibits 10.1, 10.2, 10.3 and 10.4, respectively. The foregoing
        descriptions are qualified by reference to Exhibit 10.1, 10.2 10.3 and 10.4
        to
        this Current Report on Form 8-K, which Exhibits are incorporated herein by
        reference. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
          9.01 FINANCIAL STATEMENTS AND EXHIBITS</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibits</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following exhibit is filed as an exhibit to this Current Report on Form
        8-K:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
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                  <td style="width: 36pt;">
                  </td>
                  <td align="left" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
                    No.</u></strong></font></td>
                  <td align="left">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Description</u></strong></font></div>
                  </td>
                </tr>

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            <div>&#160;</div>
          </div>
        </div>
      </div>
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        <div>
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                <td style="width: 36pt;">
                </td>
                <td align="left" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                    and Sale Agreement I, by and between NGS Sub Corp. and Denbury
                    Onshore,
                    LLC, dated May 8, 2006.</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

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                  <td style="width: 36pt;">
                  </td>
                  <td align="left" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></td>
                  <td align="left">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                      and Sale Agreement II, by and between NGS Sub Corp. and Denbury
                      Onshore,
                      LLC, dated May 8, 2006.</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
            <div>
              <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

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                    <td style="width: 36pt;">
                    </td>
                    <td align="left" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></td>
                    <td align="left">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unit
                        Operating Agreement, by and between NGS Sub Corp. and Denbury
                        Onshore,
                        LLC, dated May 8, 2006.</font></div>
                    </td>
                  </tr>

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                      <td style="width: 36pt;">
                      </td>
                      <td align="left" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></td>
                      <td align="left">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Conveyance,
                          Assignment and Bill of Sale Agreement, by and between NGS
                          Sub Corp. and
                          Denbury Onshore, LLC, dated May 8,
                          2006.</font></div>
                      </td>
                    </tr>

                </table>
              </div>
            </div>
          </div>
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
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                GAS SYSTEMS, INC.</font></div>
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                June 14, 2006</font></div>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              Robert Herlin</font></td>
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                Herlin, Chief Executive Officer </font></div>
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{"company-data": {"conformed-name": "NATURAL GAS SYSTEMS INC/NEW", "cik": "0001006655", "assigned-sic": "1311", "irs-number": "411781991", "state-of-incorporation": "NV", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27862", "film-number": "06908391"}, "business-address": {"street1": "820 GESSNER", "street2": "SUITE 1340", "city": "HOUSTON", "state": "TX", "zip": "77024", "phone": "713-935-0122"}, "mail-address": {"street1": "820 GESSNER", "street2": "SUITE 1340", "city": "HOUSTON", "state": "TX", "zip": "77024"}, "former-company": [{"former-conformed-name": "NATURAL GAS SYSTEMS, INC.", "date-changed": "20040810"}, {"former-conformed-name": "REALITY INTERACTIVE INC", "date-changed": "19960301"}]}
Unassociated Document
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
Current
      Report Pursuant to Section 13 or 15(d) of
the
      Securities Exchange Act of 1934
Date
      of
      Report: June 15, 2006
Date
      of Earliest Event Reported: June 12, 2006
NATURAL
      GAS SYSTEMS, INC.
(Exact
      Name of Registrant as Specified in its Charter)
Nevada
(State
      or
      Other Jurisdiction of Incorporation)
0-27862
41-1781991
(Commission
                File Number)
(I.R.S.
                Employer Identification
                No.)
820
                Gessner, Suite 1340, Houston,
                Texas
77024
(Address
                of Principal Executive
                Offices)
(Zip
                Code)
(713)
      935-0122
(Registrant's
      Telephone Number, Including Area Code)
(Former
      Name or Former Address, if Changed Since Last Report)
TABLE
      OF CONTENTS
Item
      1.02 Termination of a Material Definitve
      Agreement
Item
      2.01
      Completion of Acquisition or Disposition of Assets
Item
      9.01 Financial Statements and Exhibits
Signatures
ITEM
      1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT
As
        previously reported in a Current Report on Form 8-K filed by Natural Gas
        Systems, Inc. ("NGS" or the "Company") with the SEC on March 8, 2006, the
        Company entered a subordinated loan agreement with Laird Q. Cagan, the Chairman
        of the Board of Directors of the Company, whereby Mr. Cagan loaned the Company
        $250,000 (the "Subordinated Note"). The Subordinated Note had a one year
        term
        and accrued interest at 10%, payable at maturity. On June 13, 2006, the Company
        voluntarily prepaid all amounts due under the Loan Agreement totaling $257,058,
        representing the then-outstanding principal balance and all accrued and unpaid
        interest.
ITEM
      2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF
      ASSETS.
As
      previously reported in a Current Report on Form 8-K filed by the Company with
      the SEC on May 11, 2006, NGS, through our wholly-owned subsidiary NGS Sub Corp,
      entered into a Purchase and Sale Agreement (the "Sale Agreement") with
      Denbury Onshore, LLC., a subsidiary of Denbury Resources, Inc. (NYSE symbol:
      DNR, hereinafter referred to as "Denbury") on May 8, 2006 to conduct an
      enhanced oil recovery project in the Company's Delhi Holt Bryant Unit within the
      Delhi Field in northeast Louisiana (the "Delhi Unit"). On June 12, 2006, NGS
      received $50 million and delivered to Denbury an initial 100% working interest
      and 80% net revenue interest in the Delhi Unit,
and
      a 75%
      working interest and an 80% net revenue interest (proportionately reduced to
      60%) in certain other depths in the Delhi Field.
NGS retained a
      separate 4.8% royalty interest in the Delhi Field (including the Delhi Unit)
      and
      a 25% working interest in certain other depths of the Delhi Field (excluding
      the
      Delhi Unit, except as described below). Under the terms of the Sale Agreement,
      Denbury has agreed to contribute all development capital, technical expertise
      and required amounts of proven reserves of carbon dioxide that will be injected
      into the Delhi Unit oil reservoirs. After the project generates $200 million
      of
      net cash flows before capital expenditures for Denbury, NGS will regain a 25%
      working interest (20% net revenue interest) in the Delhi Unit.
For
        tax
        purposes, the parties to the Sale Agreement made certain non-material changes
        and bifurcated the original Sale Agreement into two (2) separate agreements
        in
        order to assist in the consummation of a like-kind exchange. The final closing
        documents for the revised Sale Agreement are attached hereto as the Purchase
        and
        Sale Agreement I, the Purchase and Sale Agreement II, the Unit Operating
        Agreement, and the Conveyance, Assignment and Bill of Sale Agreement, attached
        hereto as Exhibits 10.1, 10.2, 10.3 and 10.4, respectively. The foregoing
        descriptions are qualified by reference to Exhibit 10.1, 10.2 10.3 and 10.4
        to
        this Current Report on Form 8-K, which Exhibits are incorporated herein by
        reference.
ITEM
          9.01 FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
.
The
        following exhibit is filed as an exhibit to this Current Report on Form
        8-K:
Exhibit
                    No.
Description
10.1
Purchase
                    and Sale Agreement I, by and between NGS Sub Corp. and Denbury
                    Onshore,
                    LLC, dated May 8, 2006.
10.2
Purchase
                      and Sale Agreement II, by and between NGS Sub Corp. and Denbury
                      Onshore,
                      LLC, dated May 8, 2006.
10.3
Unit
                        Operating Agreement, by and between NGS Sub Corp. and Denbury
                        Onshore,
                        LLC, dated May 8, 2006.
10.4
Conveyance,
                          Assignment and Bill of Sale Agreement, by and between NGS
                          Sub Corp. and
                          Denbury Onshore, LLC, dated May 8,
                          2006.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
NATURAL
                GAS SYSTEMS, INC.
Date:
                June 14, 2006
By:
/s/
              Robert Herlin
Robert
                Herlin, Chief Executive Officer