QuickLinks -- Click here to rapidly navigate through this document
Exhibit 10.6
- *
- TEXON L.P. Purchase Agreement
September 20, 2007
Re: Texan Contract No. CPE6866
Customer Ref. No.
Floyd Trujillo
Presco Western, LLC
5665 Flatiron Parkway
Boulder, CO 80301
The following Special Provisions and the attached Texon L.P. General Provisions (Revision 7/04) constitute the entire agreement (the "Agreement") whereby Texon L.P. (Buyer") agrees to buy and Presco Western, LLC ("Seller") agrees to sell crude oil and/or condensate under the terms and conditions as set forth below.
SPECIAL PROVISIONS
| | |
| |
|
|---|
| QUALITY | | Kansas Common crude oil |
QUANTITY |
|
Equal to Seller's owned or controlled oil/condensate production from the properties/leases described in the Exhibit attached hereto. |
PRICE |
|
Each calendar month's arithmetic average of the settlement prices for the Nearby Light Sweet crude oil futures contract (WTI) on the New York Mercantile Exchange (NYMEX) for each day the NYMEX settles the Nearby WTI contract (Mere days only), less $4.25 per barrel. |
|
|
In the event that the transportation cost and/or tariff changes during the term of this Agreement, Buyer reserves the right to revise the contract accordingly. |
DELIVERY |
|
Delivered into Buyer designated carriers from the properties/leases described in the Exhibit attached hereto. |
TERM |
|
Effective October 1, 2007 through September 30, 2008 and continuing month to month thereafter unless either party cancels with thirty (30) days prior written notice. Cancellation shall become effective on the first day of the month following such notice period. |
PAYMENT |
|
Buyer shall pay Seller or their designee 100% of the amount due for crude oil purchased hereunder, excluding all applicable taxes, by wire transfer on the 20th day of the month following the month of delivery. (See paragraph 3 of the General Provisions attached hereto). |
Seller or their designee shall make all revenue distribution payments to all royalty interest owners and any and all other persons who may have a right, title, interest, or claim to any part of the payments made by Buyer to Seller hereunder. SELLER AGREES TO PROTECT, INDEMNIFY AND HOLD BUYER HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, COSTS, ATTORNEY'S FEES, EXPENSES OR LIABILITY OF ANY NATURE WHICH BUYER MAY SUFFER BY REASON OF BUYER MAKING PAYMENTS AS HEREIN PROVIDED,
| | | | | | | | | | | | | | |
Texon L.P. |
|
|
|
|
|
|
|
Presco Western , LLC |
|
|
By: /s/ W.K. Jones |
|
|
|
Date: 9/26/07 |
|
|
|
By: /s/ Floyd Trujillo |
|
|
|
Date: 10/1/07 |
|
|
|
W.K. Jones
Sr. Vice President, Crude Oil |
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | |
EXHIBIT | | Texon L.P. Contract Number: CPE 6866
Amendment No. 0 | |
|---|
LEASE NAME | | FIELD | | COUNTY | | STATE | | PREMIUM | |
|---|
| GCC 1-530 | | | | | Finney | | KS | | | (4.250000 | ) |
| GCC 6-C30-23-33 | | | | | Finney | | KS | | | (4.250000 | ) |
| GCH 4-D36-26-32 | | | | | Finney | | KS | | | (4.250000 | ) |
| GCH 5-D36-26-32 | | | | | Finney | | KS | | | (4.250000 | ) |
| Irene 1-1632 | | | | | Finney | | KS | | | (4.250000 | ) |
| Jehle 1-1624 | | | | | Finney | | KS | | | (4.250000 | ) |
| JLM Farms 1-827 | | | | | Finney | | KS | | | (4.250000 | ) |
| JLM Farms 4-127-26-32 | | | | | Finney | | KS | | | (4.250000 | ) |
| Larson 1-731 | | | | | Finney | | KS | | | (4.250000 | ) |
| Peitz 1-531 | | | | | Finney | | KS | | | (4.250000 | ) |
| Webdell 3-3 | | | | | Finney | | KS | | | (4.250000 | ) |
| Barclay College 6-029-30-38 | | | | | Grant | | KS | | | (4.250000 | ) |
| Bunn 1 | | | | | Grant | | KS | | | (4.250000 | ) |
| Johnson Heirs 1 | | | | | Grant | | KS | | | (4.250000 | ) |
| Johnson Heirs 2 | | | | | Grant | | KS | | | (4.250000 | ) |
| Lucas Trust 4-K29-30-38 | | | | | Grant | | KS | | | (4.250000 | ) |
| Lucas Trust 5-M29-30-38 | | | | | Grant | | KS | | | (4.250000 | ) |
| Scherling W B 1-29 | | | | | Grant | | KS | | | (4.250000 | ) |
| Scherling W B 2-29 | | | | | Grant | | KS | | | (4.250000 | ) |
| Shelley RL | | | | | Grant | | KS | | | (4.250000 | ) |
| Anton 2-518 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Bergner 7-P17-28-34 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Black Luciene A | | | | | Haskell | | KS | | | (4.250000 | ) |
| Black Trusts 17-07-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Black Trusts 18-P7-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Black Trusts 20-D7-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Black Trusts 21-G7-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Black Trusts 23-E7-30-33 ti | | | | | Haskell | | KS | | | (4.250000 | ) |
| Brennan 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Brennan Gas Unit 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Brookover EC 1A | | | | | Haskell | | KS | | | (4.250000 | ) |
| Cox 1-162 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Cox 1-8 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Cox 2-12 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Cox 6-P2-28-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Diaden Farms 1-B2-29-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Diaden Farms 3-K15-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Diaden Farms 4-J15-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
2
| | | | | | | | | | | |
EXHIBIT | | Texon L.P. Contract Number: CPE 6866
Amendment No. 0 | |
|---|
LEASE NAME | | FIELD | | COUNTY | | STATE | | PREMIUM | |
|---|
| Diaden Farms 5-B15-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| E Hall 1-K16-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| E Hall 5-N16-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| E Hall 6-P16-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| E Hall 8-M16-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| E Hall 9-C16-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Earlene Black 1-817 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Edna Cox 1-138 | | | | | Haskell | | KS | | | (4.250000 | ) |
| EE & L Stalker 1-1430 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Elliott 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Elliott 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Ellsaesser 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Ellsaesser Gas Unit A 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| ELS Properties 1-1030 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Eric Bradley 1-17 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Feight A 1-27 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Feight A 4-27 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Feight A 5 Lower | | | | | Haskell | | KS | | | (4.250000 | ) |
| Feight A 5 Upper | | | | | Haskell | | KS | | | (4.250000 | ) |
| Feight A 6 (SWDW) | | | | | Haskell | | KS | | | (4.250000 | ) |
| Garner 1-1624 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Garner 11-J24-30-34 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Garner 12-124-30-34 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Grant Maurice 1-30 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Hall S G 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Hall S G 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Hoffman 3-O19-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Hon 1-930 | | | | | Haskell | | KS | | | (4.250000 | ) |
| James Unit A A B 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Kelman A1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Kilgore 5-E33-29-39 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Koehn 5-F2-28-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Lavelette 1-C12-27-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| LC Black 1-417 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Leonard 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| McKinley 1-1519 | | | | | Haskell | | KS | | | (4.250000 | ) |
| McKinley 15-P19-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| McKinley 16-I19-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Megan Janae 1-30 | | | | | Haskell | | KS | | | (4.250000 | ) |
3
| | | | | | | | | | | |
EXHIBIT | | Texon L.P. Contract Number: CPE 6866
Amendment No. 0 | |
|---|
LEASE NAME | | FIELD | | COUNTY | | STATE | | PREMIUM | |
|---|
| Mertia Ammerman 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Mertia Ammerman 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Murphy Trust 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Murphy Trust 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Nanninga Trust 1-430 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Nanninga Trust 34-E30-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Preedy Walter E 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Preedy Walter E 3 | | | | | Haskell | | KS | | | (4.250000 | ) |
| RB Garner 2 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Riphahn 13-035-28-34 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Roger Wilson 1-519 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Schnellbacher A-4 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stalker 1-23 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stalker Etal 28-I30-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stalker Etal 29-O30-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stalker Etal 30-K30-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stalker Etal 31-A30-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stalker Etal 32-H30-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stoops Webber 5 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stoops Webber 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Stoops Webber 4 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU I12 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU I14 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU I19 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU I21 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU I22 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU P12 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU P21 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU P22 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU P23 | | | | | Haskell | | KS | | | (4.250000 | ) |
| SWLVLU P24 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Tindall Spanier 1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Watkins 2-N17-30-32 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Watkins Gas Un F-4 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Watkins Gas Unit F3 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Winter 13-M8-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Winter 14-N8-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Winter 15-M8-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Wright B 2B | | | | | Haskell | | KS | | | (4.250000 | ) |
4
| | | | | | | | | | | |
EXHIBIT | | Texon L.P. Contract Number: CPE 6866
Amendment No. 0 | |
|---|
LEASE NAME | | FIELD | | COUNTY | | STATE | | PREMIUM | |
|---|
| Wright C C1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Wright GU B1 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Wyatt Trusts 9-N16-30-33 | | | | | Haskell | | KS | | | (4.250000 | ) |
| Fletcher 7-J21-23-37 | | | | | Kearny | | KS | | | (4.250000 | ) |
| Kisel 1-1215-2 | | | | | Kearny | | KS | | | (4.250000 | ) |
| Miles 1-1128 | | | | | Kearny | | KS | | | (4.250000 | ) |
| BCF Warring Trust 2 | | | | | Morton | | KS | | | (4.250000 | ) |
| Blackwell A1 | | | | | Morton | | KS | | | (4.250000 | ) |
| BOWKER | | | | | Morton | | KS | | | (4.250000 | ) |
| Bowker Gas Unit B1 1-2 | | | | | Morton | | KS | | | (4.250000 | ) |
| Dos Reatas 5-E26-32-40 | | | | | Morton | | KS | | | (4.250000 | ) |
| Dos Reatas 6-M26-32-40 | | | | | Morton | | KS | | | (4.250000 | ) |
| Johns 1-1324 | | | | | Morton | | KS | | | (4.250000 | ) |
| Milburn 5-N28-31-39 | | | | | Morton | | KS | | | (4.250000 | ) |
| Osborne B-3 | | | | | Morton | | KS | | | (4.250000 | ) |
| Trahern 6-G20-31-39 | | | | | Morton | | KS | | | (4.250000 | ) |
| 3M Farms 2-17 | | | | | Seward | | KS | | | (4.250000 | ) |
| Chandler Carroll 1-19 | | | | | Seward | | KS | | | (4.250000 | ) |
| Conard 1-20 | | | | | Seward | | KS | | | (4.250000 | ) |
| Conard 2-20 | | | | | Seward | | KS | | | (4.250000 | ) |
| Lemert B H 1 | | | | | Seward | | KS | | | (4.250000 | ) |
| Lower 1-18 | | | | | Seward | | KS | | | (4.250000 | ) |
| Lower 1-20 | | | | | Seward | | KS | | | (4.250000 | ) |
| Lower 2-20 | | | | | Seward | | KS | | | (4.250000 | ) |
| Wendy Marie 1-30 | | | | | Seward | | KS | | | (4.250000 | ) |
| Abbey Michelle 1-35 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Amanda Jill 1-36 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Amber Michelle 1-34 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Andrea Frances 1-21 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Andrea Lyn 1-9 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Bryan Daniel 1-34 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Christopher Jared 1-8 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Collingwood 1-28 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Esser 2-16 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Federal Land Bank 4-21 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Federal Land Bank 5-21 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Fell Gas Unit 4A | | | | | Stanton | | KS | | | (4.250000 | ) |
| Garay 6-J21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Jay Morris 1-8 | | | | | Stanton | | KS | | | (4.250000 | ) |
5
| | | | | | | | | | | |
EXHIBIT | | Texon L.P. Contract Number: CPE 6866
Amendment No. 0 | |
|---|
LEASE NAME | | FIELD | | COUNTY | | STATE | | PREMIUM | |
|---|
| Kayla Marie 1-2 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Kaylee Brooks 1-35 | | | | | Stanton | | KS | | | (4.250000 | ) |
| KU 6-120-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| KU 7-J20-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| KU 8-P20-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| KU 9-P20-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Lynn Stacy 1-22 | | | | | Stanton | | KS | | | (4.250000 | ) |
| McPherson College 4-E21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| McPherson College 5-F21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Mitchell Trust 5-E23-29-40 | | | | | Stanton | | KS | | | (4.250000 | ) |
| R & L Farms 1-28 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Sarah Jane 1-34 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Shonn Gregory 1-35 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Trent David 1-23 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Wade Allen 1-36 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Western Feed Yard 1-1133 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Western Feed Yard 2-1433 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Williams 1-L21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Williams 2-L21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Williams 3-K21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Williams 4-L21-29-39 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Wilson Unit 1 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Yardley Frederick 1-25 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Yashell Shirin 1-35 | | | | | Stanton | | KS | | | (4.250000 | ) |
| Josline B-2 | | | | | Stevens | | KS | | | (4.250000 | ) |
| Swalar A1 | | | | | Stevens | | KS | | | (4.250000 | ) |
| Swalar B1 | | | | | Stevens | | KS | | | (4.250000 | ) |
11757 Katy Freeway ° Suite 1400 ° Houston, Texas 77079 ° Phone 281/531-8400 ° FAX 281/368-2701
6
QuickLinks
