PURCHASE AND SALE AGREEMENT
BY AND AMONG
WILSHIRE ENTERPRISES, INC.
a Delaware Corporation,
SAN FRANCISCO OIL COMPANY
a California Corporation,
ROCKLAND RESOURCES, CO.,
an Oklahoma corporation
and
BRITALTA VENEZOLANO, LTD.
an Alberta private corporation
as Sellers
and
CROW CREEK ENERGY L.L.C.
as Purchaser
DATED March 17, 2004
TABLE OF CONTENTS
ARTICLE 1 INTERPRETATION....................................................1
1.1 Definitions.....................................................1
1.2 Plurality and Gender............................................7
1.3 References......................................................7
1.4 Currency........................................................8
1.5 Headings........................................................8
1.6 Knowledge or Awareness..........................................8
1.7 Schedules.......................................................8
ARTICLE 2 PURCHASE AND SALE.................................................9
2.1 Purchase and Sale...............................................9
2.2 Purchase Price..................................................9
2.3 Allocation of Base Price........................................9
2.4 Deposit........................................................10
2.5 Payment of Purchase Price......................................10
2.6 Holdback.......................................................10
ARTICLE 3 CLOSING..........................................................11
3.1 Place of Closing...............................................11
3.2 Effective Time of Transfer of Title............................11
3.3 Deliveries at Closing..........................................11
3.4 Delivery of Data...............................................12
3.5 Fees, Expenses, Taxes and Recording............................12
ARTICLE 4 ADJUSTMENTS......................................................12
4.1 Costs and Revenues to be Apportioned...........................12
4.2 Imbalances, Prepayments and Refunds............................14
4.3 Suspense Accounts..............................................15
4.4 Adjustments to Account.........................................15
4.5 Limitation on Adjustments......................................15
ARTICLE 5 CONDITIONS OF CLOSING............................................16
5.1 Purchaser's Conditions.........................................16
5.2 Sellers' Conditions............................................16
5.3 Efforts to Fulfill Conditions Precedent........................16
5.4 Failure of a Condition Due to a Breach.........................16
ARTICLE 6 REPRESENTATIONS AND WARRANTIES...................................16
6.1 Representations and Warranties of Sellers......................16
6.2 Negation of Other Representations..............................20
6.3 Representations and Warranties of Purchaser....................21
6.4 Limitation.....................................................22
ARTICLE 7 INDEMNITIES......................................................22
7.1 Sellers' Limited Indemnity.....................................22
7.2 General Purchaser Indemnity....................................23
7.3 Environmental and Related Obligations..........................23
7.4 Limitation.....................................................23
7.5 No Incidental or Consequential Damages.........................23
ARTICLE 8 MAINTENANCE OF ASSETS............................................24
8.1 Maintenance of Assets Prior to Closing.........................24
8.2 Consent of Purchaser...........................................24
ARTICLE 9 PREFERENTIAL PURCHASE RIGHTS AND CONSENTS........................25
9.1 Preferential Purchase Rights...................................25
9.2 Effect of Exercise of Preferential Rights......................25
ARTICLE 10 TITLE REVIEW AND ENVIRONMENTAL REVIEW...........................25
10.1 Title Review...................................................25
10.2 Environmental Review...........................................25
10.3 Valuation Resulting from Review................................25
10.4 Inspection and Testing.........................................28
ARTICLE 11 ARBITRATION.....................................................28
11.1 Selection......................................................28
11.2 Location.......................................................29
11.3 Rules..........................................................29
11.4 Time...........................................................29
11.5 Replacement....................................................29
ARTICLE 12 OPERATORSHIP....................................................29
12.1 Transfer of Operatorship.......................................29
12.2 Removal of Signs...............................................30
ARTICLE 13 TERMINATION.....................................................30
13.1 Causes of Termination..........................................30
13.2 Effect of Termination..........................................30
ARTICLE 14 GENERAL.........................................................31
14.1 Further Assurances.............................................31
14.2 No Merger......................................................31
14.3 Entire Agreement...............................................31
14.4 Governing Law..................................................31
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14.5 Assignment.....................................................31
14.6 Time of Essence................................................31
14.7 Notices........................................................32
14.8 Invalidity of Provisions.......................................33
14.9 Waiver.........................................................33
14.10 Remedies Generally.............................................33
14.11 Amendment......................................................33
14.12 Public Announcements...........................................33
14.13 Counterpart Execution..........................................33
14.14 Express Negligence Rule........................................34
14.15 Waiver of Deceptive Trade Practices Acts.......................34
14.16 Appointment of WEI as Nominee..................................34
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PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT is entered into as of the 17th day of
March, 2004, by and among WILSHIRE ENTERPRISES, INC., a Delaware corporation
("WEI"), ROCKLAND RESOURCES, CO., an Oklahoma corporation ("RRC"), BRITALTA
VENEZOLANO, LTD., an Alberta private corporation ("BV") and SAN FRANCISCO OIL
COMPANY, a California corporation ("SFO", which together with WEI, RRC and BV
may be collectively referred to herein as the "Sellers") and CROW CREEK ENERGY
L.L.C., a Delaware limited liability company ("Purchaser").
R E C I T A L S
A. Sellers own the Assets.
B. Sellers desire to sell the Assets and Purchaser desires to purchase
the Assets subject to and in accordance with the terms and conditions hereof.
NOW THEREFORE, in consideration of the premises and the mutual
covenants and agreements hereinafter set forth, the Parties covenant and agree
as follows:
ARTICLE 1
INTERPRETATION
1.1 Definitions
In this Agreement, including the recitals and the Schedules the
following terms still have the following meanings:
"Abandonment and Reclamation Obligations" means all obligations to
abandon the Wells and restore and reclaim the sites thereof, to
decommission and remove the facilities and equipment comprised in the
Tangibles and restore and reclaim the sites thereof and to reclaim and
restore the lands to which the Surface Rights relate, including such
obligations relating to Wells that were abandoned prior to the
Effective Time.
"AFEs" means authorities for expenditure, cash calls or any other
similar requests for approval received by the Sellers in relation to
the Petroleum and Natural Gas Rights or the Tangibles, if any, set out
in Schedule C.
"Agreement", "herein", "hereto", "hereof" and similar expressions refer
to this Purchase and Sale Agreement, as amended or modified from time
to time by written instrument signed by Sellers and Purchaser.
"Assets" means the Petroleum and Natural Gas Rights, the Tangibles and
the Miscellaneous Interests.
"Assignment" means the assignment in the form of Schedule E.
"Base Price" means $13,700,000.
"Base Price Allocation" means the allocation of the Base Price among
the Assets as set forth in Schedule A.
"Business Day" means any day which is not a Saturday, Sunday or
statutory holiday in Houston, Texas.
"Closing" means the transfer of legal ownership of the Assets from
Sellers to Purchaser and the completion of other matters incidental
thereto as herein provided for.
"Closing Date" means April 23, 2004, or such other date as mutually
agreed to by the Parties.
"Closing Time" means 10:00 a.m. on the Closing Date, or such other time
as may be agreed upon in writing by Sellers and Purchaser.
"Code" has the meaning ascribed to such term in Section 2.3.
"Data" means all records, data and information directly relating to the
Petroleum and Natural Gas Rights or the Tangibles, including well
files, lease files, agreement files and production records (including
the Title and Operating Documents), but specifically excludes
Proprietary Information.
"Defensible Title" means, with respect to the Leases, Wells and Lands
which comprise the Petroleum and Natural Gas Rights, such title held by
Sellers that, subject to and except for Permitted Encumbrances:
(i) entitles Sellers to receive not less than the NRI for
such Lease, Well or Lands set forth on Schedule A;
(ii) obligates Sellers to bear costs and expenses relating
to the maintenance, development, operation and the
production of Petroleum Substances from the Lease,
Well or Lands in an amount not greater than the
corresponding WI set forth in Schedule A; and
(iii) is free and clear of encumbrances, liens and defects.
"Deposit Escrow" has the meaning given to such term in Section 2.4.
"Deposit Escrow Agreement" has the meaning given to such term in
Section 2.4.
"Due Diligence Reduction" has the meaning given to such term in Section
10.3(a).
"Effective Time" means 7:00 A.M. on March 1, 2004, at the location of
the Assets.
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"Environmental Liabilities" means all environmental liabilities that
relate to the Assets or that arise in connection with the ownership
thereof or operations pertaining thereto, including, without
limitation, liabilities related to or arising from:
(i) transportation, storage, use or disposal of toxic or
hazardous substances;
(ii) release, spill, escape or emission of toxic or
hazardous substances; or
(iii) pollution or contamination of or damage to the
environment;
including, without limitation, liabilities to compensate Third Parties
for damages and losses resulting from the items described in items (i),
(ii) and (iii) above (including, without limitation, damage to
property, personal injury and death) and obligations to take action to
prevent or rectify damage to or otherwise protect the environment and,
for purposes of this Agreement, "the environment" includes, without
limitation, the air, the surface and subsurface of the earth, bodies of
water (including, without limitation, rivers, streams, lakes and
aquifers) and plant, human and animal life;
"Facilities" means Sellers' interest in the tangible property,
apparatus, plant, equipment, machinery and facilities related to the
Petroleum and Natural Gas Rights.
"Final Settlement Date" means July 22, 2004, or such other date as
mutually agreed to by the Parties.
"Holdback Amount" has the meaning given to such term in Section 2.6.
"Holdback Escrow Account" has the meaning give to such term in Section
2.6.
"Holdback Escrow Agreement" has the meaning given to such term in
Section 2.6.
"Lands" means the Petroleum Substances within, under or upon all lands
located anywhere in United States in which the Sellers hold any,
interest, right or entitlement, including, without limitation, the
lands described in the Land Schedule or lands unitized therewith.
"Land Schedule" means Schedule A, which shall include a description of
the interests of Sellers relating to the Lands.
"Leases" means the oil and gas leases, licenses, permits, pooling
orders, farmout agreements and similar documents of title by virtue of
which the holder thereof is entitled to drill for, take, own or remove
Petroleum Substances within, upon or under the Lands and includes, if
applicable, all renewals and extensions of such documents and all
documents entered or granted in substitution therefor.
"Losses and Liabilities" means, in relation to a Party, losses, costs,
damages and expenses which such Party suffers, sustains, pays or incurs
including attorneys' fees and expenses.
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"Miscellaneous Interests" means Sellers' interests in all property,
assets, interests and rights (other than the Petroleum and Natural Gas
Rights and the Tangibles) related to the Petroleum and Natural Gas
Rights or the Tangibles, including without limitation any and all of
the following:
(i) contracts and agreements related to the Petroleum and
Natural Gas Rights or the Tangibles including,
without limitation, the Title and Operating
Documents;
(ii) the Surface Rights;
(iii) the Seismic Data and Data; and
(iv) the Wells, including well bores and casing,
but specifically excludes (a) Proprietary Information; (b)
Petroleum Substances produced prior to the Effective Time; and
(c) accounts receivable accruing prior to the Effective Time.
"NRI" means net revenue interest.
"Parties" means the parties to this Agreement and "Party" means
Purchaser or the Sellers.
"Pending Claims" has the meaning ascribed thereto in Section 6.1(g).
"Permitted Encumbrances" means:
(i) liens for taxes, assessments and governmental charges
for which payment is not due;
(ii) liens incurred or created in the ordinary course of
business as security in favor of the person who is
conducting the development or operation of the
property to which such liens relate for Sellers'
proportionate share of costs and expenses of such
development or operation for which payment is not due
including pursuant to any Operating Documents;
(iii) mechanics', builders' and materialmen's liens in
respect of services rendered or goods supplied for
which payment is not due;
(iv) easements, rights of way, servitudes and other
similar rights in land (including, without
limitation, rights of way and servitudes for roads,
railways, sewers, drains, gas and oil pipelines, gas
and water mains and electric light, power, telephone,
telegraph and cable television conduits, poles, wires
and cables);
(v) the right reserved to or vested in any municipality
or government or other public authority by the terms
of any lease, license, franchise, grant or permit or
by any statutory provision, to terminate any such
lease, license, franchise, grant or permit or to
require annual or other periodic payments as a
condition of the continuance thereof;
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(vi) rights of general application reserved to or vested
in any governmental authority to levy taxes on
Petroleum Substances or any of them or the income
therefrom, and governmental requirements and
limitations of general application;
(vii) royalty burdens, reductions in interests, rights of
first refusal, and other encumbrances set out in the
Land Schedule;
(viii) required Party consents to assignments and similar
rights held by third parties with respect to which
(a) prior to Closing waivers or consents are obtained
from the appropriate parties, or (b) consents need
not be obtained prior to an assignment and/or are
routinely obtained after Closing;
(ix) the terms and conditions of the Leases and the Title
and Operating Documents;
(x) such Title Defects as Purchaser may have expressly
waived in writing;
(xi) imperfections of title which do not materially
interfere with the use, operation and possession of
any particular Assets or which do not cause Sellers'
title to be less than Defensible Title; and
(xii) liens and security interests which are released at or
prior to Closing.
"Person" means any partnership, corporation, trust, unincorporated
organization, union, government, governmental department or agency,
individual or any heir, executor, administrator or other legal
representative of an individual other than a Party.
"Petroleum and Natural Gas Rights" means the entire interest of the
Sellers in and to the Lands, including, without limitation, all
leasehold interests, mineral interests, royalty interests and
overriding royalty interests therein, and, insofar as they pertain to
the Lands, the Leases and Wells.
"Petroleum Substances" means crude oil, petroleum, natural gas, coal
seam gas, casinghead gas, natural gas liquids, and other related
hydrocarbons and any and all other substances whether liquid, solid or
gaseous and whether hydrocarbons or not, produced in association
therewith, the rights to which are granted pursuant to the Leases.
"Preferential Purchase Right" means a right of first refusal,
preemptive right of purchase or similar right whereby a Party has the
right to acquire or purchase a portion of the Assets as a consequence
of Sellers having agreed to sell the Assets to Purchaser in accordance
herewith.
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"Prime Rate" means the rate of interest, expressed as a rate per annum,
designated by Bank of Oklahoma, N.A., as the reference rate used by it
to determine rates of interest charged by it on commercial loans made
and which is announced by such bank, from time to time, as its prime
rate, provided that whenever such bank announces a change in such
reference rate, the "Prime Rate" shall correspondingly change effective
on the date the change in such reference rate is effective.
"Proprietary Information" means (i) Sellers' independent valuations of
the Assets, (ii) seismic data that is subject to contractual
restrictions against assignment and maps and interpretations made
therefrom and (iii) all corporate income tax and financial information.
"Purchase Price" has the meaning ascribed thereto in Section 2.2.
"Sale, Processing and Transportation Agreements" means agreements for
the sale of Petroleum Substances produced from the Lands or lands
pooled or unitized therewith and agreements providing for the
gathering, transportation, compression, processing, treatment or
storage of Petroleum Substances produced from the Lands or lands pooled
or unitized therewith.
"Seismic Data" means seismic data owned solely by the Sellers,
including surveyors' ground elevation records, shot point maps,
drillers' logs, shooters' records, seismograph records, seismograph
magnetic tapes, monitor records, field records and record sections,
excluding maps and interpretations made therefrom.
"Specific Conveyances" means all conveyances, assignments, transfers,
novations and other documents or instruments that are reasonably
required or desirable, in accordance with normal oil and gas industry
practices, to convey, assign and transfer the Assets to Purchaser and
to novate Purchaser into the Title and Operating Documents in the place
and stead of Sellers with respect to the Assets.
"Surface Rights" means all rights to use or occupy the surface of lands
(including, but not limited to, the Lands) which are used or held for
use in connection with the Petroleum and Natural Gas Rights or the
Tangibles, including rights to enter upon and occupy the surface of
lands on which the Tangibles and the Wells are located and rights to
use the surface of lands to gain access thereto.
"Take or Pay Obligations" means take or pay and similar obligations
related to the Assets arising after the Effective Time as a result of
payments made prior to the Effective Time by or on behalf of buyers of
Petroleum Substances in lieu of or in satisfaction of their obligations
to buy Petroleum Substances, including obligations to sell or deliver
Petroleum Substances or any of them to a Party after the Effective Time
without being entitled in due course to receive and retain full payment
for such Petroleum Substances and obligations to repay such payments
and\or interest thereon.
6
"Tangibles" means (i) the interest of Sellers in the Facilities and
(ii) the interests of Sellers that are directly related to the
Petroleum and Natural Gas Rights in all other tangible depreciable
property and assets used or intended to be used in producing,
processing, gathering, treating, storing, measuring or injecting
Petroleum Substances or any of them from the Lands or lands pooled or
unitized therewith or in connection with water injection or removal
operations that pertain to the Petroleum and Natural Gas Rights,
including, without limitation, gas plants, oil batteries, production
equipment, pipelines, pipeline connections, meters, dehydrators,
motors, compressors, treaters, dehydrators, scrubbers, separators,
pumps, tanks, boilers and communication equipment.
"Termination Amount" has the meaning ascribed therein in Section
13.1(c).
"Title Defect" means any lien, encumbrance, adverse claim (including
without limitation, Pending Claims), encroachment, irregularity, cloud
or uncertainty, defect and/or objection to real property title,
excluding Permitted Encumbrances, that alone or in combination with
other defects renders Sellers' title less than Defensible Title.
"Title and Operating Documents" means, to the extent related to the
Petroleum and Natural Gas Rights or the Tangibles, (i) the Leases, (ii)
unit agreements, assignments, trust declarations, operating agreements,
royalty agreements, overriding royalty agreements, gross overriding
agreements, participation agreements, farm-in and farmout agreements,
sale and purchase agreements, pooling agreements, common stream
agreements, easements, surface leases and pipeline crossing agreements,
(iii) Sale, Processing and Transportation Agreements; (iv) agreements
for construction, ownership and operation of gas plants, gas gathering
systems and other facilities, (v) permits, licenses and approvals and
(vi) other agreements which relate to the Petroleum and Natural Gas
Rights, the Tangibles, the Miscellaneous Interests or the ownership,
operation or exploitation thereof.
"Sellers' Counsel" means Porter & Hedges, L.L.P., 700 Louisiana, Suite
3500, Houston, Texas, 77002.
"Wells" means those wells set forth in Schedule A and all wells
(including without limitation producing, shut-in, suspended, capped,
abandoned, injection and disposal wells), located on the Lands or lands
pooled or unitized therewith.
"WI" means working interest.
1.2 Plurality and Gender
Unless otherwise expressly stated, words importing the singular number
shall, where the context permits, include the plural and vice versa,
and words suggesting one gender shall be construed as suggesting other
genders.
1.3 References
Unless otherwise expressly stated:
7
(a) references to "herein", "hereto", "hereby", "hereunder",
"hereof" and similar expressions are references to this
Agreement and not to any particular Article, Section,
subsection or Schedule.
(b) references to "including" means including without limitation,
and "includes" or other derivatives thereof shall have
corresponding meanings.
(c) references to an "Article", "Section", "subsection",
"paragraph" or "Schedule" are references to an Article,
Section, subsection, paragraph or Schedule of or to this
Agreement.
(d) any reference herein to any agreement, statute, instrument,
published data, or published information, including this
Agreement, is a reference to it as varied, amended, modified,
supplemented or replaced from time to time, and a reference to
any legislation or regulation is a reference to it as
re-enacted, varied, amended, modified, supplemented or
replaced from time to time.
1.4 Currency
Unless otherwise stated, any reference to dollars means currency of the
United States of America.
1.5 Headings
The use of headings in this Agreement is for convenience of reference
only and shall not affect the construction or interpretation of this
Agreement.
1.6 Knowledge or Awareness
Where in this Agreement a representation or warranty is limited to the
knowledge or awareness of Sellers, such knowledge or awareness shall
mean that which is known or understood or should have been known or
understood on the part of the person having supervising management
authority over the matters to which such representation or warranty
pertains, after reasonable investigation.
1.7 Schedules
The following Schedules are attached to and form a part of this
Agreement for all purposes:
Schedule A - Land Schedule, Represented Interests and Base Price
Allocations
Schedule B - Sale, Processing and Transportation Agreements
Schedule C - Authorizations for Expenditures
Schedule D - Lawsuits and Claims
Schedule E - Assignment, Conveyance and Bill of Sale
8
Schedule F - Intentionally Omitted
Schedule G - Gas Imbalances
Schedule H - Intentionally Omitted
Schedule I - Preferential Purchase Rights
Schedule J - Deposit Escrow Agreement
Schedule K - Holdback Escrow Agreement
Wherever any term or condition, express or implied, of such Schedules
conflicts or is at variance with any term or condition in the body of
this Agreement, such term or condition in the body of this Agreement
shall prevail.
ARTICLE 2
PURCHASE AND SALE
2.1 Purchase and Sale
Sellers hereby agree to sell the Assets to Purchaser and Purchaser
hereby agrees to purchase the Assets from Sellers, subject to and in
accordance with this Agreement.
2.2 Purchase Price
The purchase price to be paid by Purchaser to Sellers for the Assets
(the "Purchase Price") will be the Base Price plus or minus (as
applicable) the net amount of the adjustments made pursuant to Article
4.
2.3 Allocation of Base Price
Subject to the adjustments made pursuant to Article 4, the Base Price
shall be allocated among the Assets as set forth in Schedule A . For
the purpose of making the requisite filings under Section 1060 of
Internal Revenue Code of 1986, as amended, (the "Code") and the
regulations thereunder the Parties shall utilize the Base Price
allocation as adjusted pursuant to Article 4. Sellers and Purchaser
each agree to report the federal, state and local income and other Tax
consequences of the transactions contemplated herein, and in particular
to report the information required by Section 1060(b) of the Code, and
to jointly prepare Form 8594 (Asset Acquisition Statement under Section
1060) in a manner consistent with the Base Price Allocation (as herein
adjusted) and shall not take any position inconsistent therewith upon
examination of any tax return, in any refund claim, in any litigation,
investigation or otherwise. Sellers and Purchaser agree that each shall
furnish the other a copy of Form 8594 (Asset Acquisition Statement
under Section 1060) proposed to be filed with the Internal Revenue
Service by such Party or any affiliate thereof within ten (10) days
prior to the filing of such form with the Internal Revenue Service. The
value allocated to an Asset as set forth in Schedule A is referred to
as the "Allocated Value" for that Asset for purposes of seeking
adjustments to the Purchase Price pursuant to Article 10 below.
9
2.4 Deposit
Purchaser has paid to Sellers a performance guarantee deposit (the
"Deposit") in an amount equal to One Million Dollars ($1,000,000),
which Deposit has been deposited contemporaneously herewith in an
interest-bearing escrow account with Bank of Oklahoma, N.A. (the
"Deposit Escrow") pursuant to an escrow agreement in the form attached
hereto as Exhibit J (the "Deposit Escrow Agreement"). If Closing
occurs, (i) the Deposit Escrow shall be terminated, and (ii) the
Deposit, together with interest earned thereon, shall be delivered into
a separate escrow account with Bank of Oklahoma, N.A. pursuant to
Section 2.6 below to serve as the Holdback Amount. If this Agreement is
terminated, the Deposit, together with interest thereon, shall be
handled as provided in Section 2.5 below.
2.5 Payment of Purchase Price
(a) If Closing does not occur due to a breach of this Agreement by
Purchaser which remains uncured ten (10) days after Purchaser
has received written notice of breach from Sellers, the
Deposit together with all interest earned thereon shall be
forfeited to and retained by Sellers as liquidated damages,
which forfeiture shall be Sellers' sole remedy at law and in
equity. The parties agree that the damages that would be
suffered by Sellers as a result of Purchaser's breach would be
difficult to estimate and that the liquidated damages
described herein represent a reasonable estimation of such
damages and do not constitute a penalty.
(b) If Closing does not occur for any reason or circumstance other
than that described in Section 2.5(a), the Deposit together
with all interest earned thereon shall be returned to the
Purchaser.
(c) At Closing, Purchaser shall pay to Sellers or as directed by
Sellers by wire transfer the Purchase Price, adjusted as
provided in Article 4 below and less and except the Deposit
(together with interest earned thereon) to the account or
accounts designated by Sellers.
2.6 Holdback
At Closing, the Deposit Escrow shall be terminated and the Deposit,
together with interest earned thereon (the "Holdback Amount"), shall be
deposited into an escrow account with Bank of Oklahoma, N.A. (the
"Holdback Escrow Account") and held pursuant to an escrow agreement in
the form attached hereto as Exhibit K to be executed at Closing
("Holdback Escrow Agreement") for a period expiring ninety (90) days
after the Closing Date (unless extended pursuant to Sections 10.1
and/or 10.2 below), for the purpose of securing (i) Purchaser's rights
post-Closing to seek a Due Diligence Reduction pursuant to Section 10.3
below, and (ii) the limited indemnity obligations of Sellers as set
forth in Section 7.1 below. All portions of the Holdback Amount with
respect to which no claim has been made by Purchaser on or before the
Final Settlement Date (or such later date, if the escrow is extended
pursuant to Sections 10.1 and/or 10.2 below) shall be promptly released
to Sellers pursuant to the Holdback Escrow Agreement.
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ARTICLE 3
CLOSING
3.1 Place of Closing
Unless otherwise agreed to in writing by the Parties, Closing shall
take place at the Closing Time on the Closing Date at the offices of
Seller's Counsel.
3.2 Effective Time of Transfer of Title
The transfer and assignment of the Assets from Sellers to Purchaser
shall be effective as of the Effective Time. However, possession and
title to the Assets shall not pass to Purchaser until Closing.
3.3 Deliveries at Closing
(a) At Closing, Sellers shall deliver the following:
(i) the Assignment (whether one or more) fully executed
and acknowledged by Sellers;
(ii) all required Specific Conveyances fully executed and,
if necessary, acknowledged by Sellers;
(iii) copies of all consents to disposition and waivers of
Preferential Purchase Right obtained by Sellers with
respect to the sale of the Assets to Purchaser;
(iv) affidavits of non-foreign status and no requirement
for withholding under Section 1445 of the Code;
(v) a termination of the Deposit Escrow agreement; and
(vi) such other items as may be specifically required
hereunder.
(b) At Closing, Purchaser shall deliver the following:
(i) the Purchase Price, adjusted as provided in Article 4
below and less and except the Deposit; ---------
(ii) counterpart originals of the Holdback Escrow
Agreement to be executed by Sellers and Purchaser;
and
(iii) such other items as may be specifically required
hereunder.
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In addition, Purchaser will execute the Assignment and the
Specific Conveyances delivered by Seller.
3.4 Delivery of Data
Sellers shall, within ten (10) Business Days after Closing, make
available to Purchaser original copies of the Data which it has in its
possession. If reasonably required by Sellers after Closing for the
completion of tax returns or dealing with tax matters, Purchaser shall
make original copies of Data available to Sellers, at Sellers' sole
cost and expense.
3.5 Fees, Expenses, Taxes and Recording
(a) Each Party shall be solely responsible for all costs and expenses
incurred by it in connection with this transaction (including, but not
limited to fees and expenses of its counsel and accountants) and shall
not be entitled to any reimbursements from the other Party, except as
otherwise provided in this Agreement.
(b) Purchaser shall file all necessary tax returns and other documents
with respect to all transfer, documentary, sales, use, stamp,
registration and other similar taxes and fees, and, if required by
applicable law, Sellers shall join in the execution of any such tax
returns and other documentation. Notwithstanding anything set forth in
this Agreement to the contrary, Purchaser shall pay any transfer,
documentary, sales, use, stamp, registration and other similar taxes
and fees incurred in connection with this Agreement and the
transactions contemplated hereby.
(c) Purchaser shall, at its own cost, immediately record all
instruments of conveyance and sale in the appropriate office of the
state and county in which the lands covered by such instrument are
located. Purchaser shall immediately file for and obtain the necessary
approval of all federal, Indian, tribal or state government agencies to
the assignment of the Assets. The assignment of any state, federal or
Indian tribal oil and gas leases shall be filed in the appropriate
governmental offices on a form required and in compliance with the
applicable rules of the applicable government agencies. If requested in
writing by Sellers, Purchaser shall supply Sellers, at Sellers'
expense, with true and accurate photocopies reflecting the recording
information of all the recorded and filed assignments within a
reasonable period of time after their recording and filing.
ARTICLE 4
ADJUSTMENTS
4.1 Costs and Revenues to be Apportioned
(a) The transfer and assignment of the Assets by Sellers to
Purchaser shall occur at the Closing Time and be effective as
of the Effective Time. SUBJECT ALWAYS TO SECTION 4.5, Sellers
will be responsible for and cause the payment of all costs,
and take the benefit of all revenues incurred in relation to
the Assets prior to the Effective Time and Purchaser will be
responsible for and cause payment of all costs, and take the
benefit of all revenues relating to the Assets incurred from
and subsequent to the Effective Time. Except as otherwise
provided in this Agreement, all costs and expenses relating to
the Assets (including, without limitation, maintenance,
development, capital and operating costs) and all revenues
relating to the Assets (including, without limitation,
proceeds from the sale of production and fees from processing,
treating or transporting Petroleum Substances on behalf of
Third Parties) shall be apportioned as of the Effective Time
between Sellers and Purchaser on an accrual basis in
accordance with generally accepted accounting principles,
provided that:
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(i) advances made by Sellers in respect of the costs of
operations on the Lands or lands pooled or unitized
therewith or facilities interests included in the
Assets which are attributable to periods of ownership
or operation from and after the Effective Time will
be transferred to Purchaser and an adjustment will be
made in favor of Sellers equal to the amount of the
advance transferred;
(ii) Sellers will be reimbursed expenses related to the
continued operations of the Assets (including
personnel and general and administrative expenses)
for periods after the Closing Date at a rate equal to
$1,325 per day. Sellers shall be given at least
fifteen (15) days' notice of the date Purchaser shall
take over operations of the Assets.
(iii) deposits made by Sellers relative to operations on
the Lands and attributable to periods of ownership or
operation from and after the Effective Time, other
than as referred to in Section 4.1(a)(i), shall be
returned to Sellers;
(iv) costs and expenses of work done, services provided
and goods supplied shall be deemed to accrue for the
purposes of this Article when the work is done or the
goods or services are provided, regardless of when
such costs and expenses become payable;
(v) revenues from the sale of Petroleum Substances will
be deemed to accrue when the Petroleum Substances are
produced;
(vi) all rentals and similar payments in respect of the
Leases or Surface Rights comprised in the Assets and
all taxes (other than income taxes) levied with
respect to the Assets or operations in respect
thereof shall be apportioned between Sellers and
Purchaser on a per diem basis as of the Effective
Time; and
(vii) the Purchase Price shall be reduced by any Due
Diligence Reduction to be made prior to Closing
pursuant to Section 10.3.
(b) SUBJECT ALWAYS TO SECTION 4.5, Petroleum Substances that were
produced, but not sold, as of the Effective Time shall be
retained by Sellers and Sellers shall be responsible for all
royalties or other encumbrances thereon and all processing,
treating and transportation expenses pertaining thereto.
Petroleum Substances will be deemed to be sold on a first in,
first out basis. For purposes of this Section 4.1(b), Sellers
will cause the merchantable oil in oil storage facilities
above the load lines which comprise a portion of the Petroleum
Substances to be gauged or strapped as of the Effective Time.
The oil in such storage facilities above the load lines after
the Effective Time and retained by Sellers shall be deemed
sold at the per-barrel price of $30.83, and such proceeds
shall be provided to the Seller pursuant to the terms herein.
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4.2 Imbalances, Prepayments and Refunds
The Parties recognize that as of the Effective Time there may be (i)
gas imbalances ("Imbalances") with respect to production from or
attributable to certain of the Assets, whether such Imbalances be
instances of overproduction ("Imbalance Obligations") or
underproduction ("Imbalance Entitlements"), and including, without
limitation, the imbalances set forth in Schedule G), (ii) prepayment
obligations due to monies received by Sellers under production sales
contracts or similar agreements containing "take-or-pay" clauses (or
similar arrangements), whereby Sellers are obligated to deliver oil or
gas produced after the Effective Time with respect to an Asset without
receiving payment therefor in the ordinary course of business
("Prepayment Obligations"), or (iii) refund obligations arising from
Sellers' sale of oil or gas produced from an Asset prior to the
Effective Time at prices exceeding the applicable maximum lawful prices
("Refund Obligations"). The Parties agree that, from and after the date
of this Agreement, they shall jointly attempt to ascertain prior to
Closing all Imbalances, Prepayment Obligations and Refund Obligations
affecting the Assets as of the Effective Time. The Parties further
agree that they shall adjust the Purchase Price at Closing for all
discovered Imbalances, Prepayment Obligations and Refund Obligations in
accordance with the following procedures:
(a) Imbalances. The value of discovered Imbalances (including,
without limitation, those set forth in Schedule G existing as
of the Effective Time shall be calculated by multiplying the
overproduced or underproduced volumes by $1.05 per Mcf. At
Closing or on the Final Settlement Date, as the case may be,
the Purchase Price shall be adjusted upward for the aggregate
value of all Imbalance Entitlements and downward for the
aggregate value of all Imbalance Obligations. Respecting
Imbalances discovered after the Final Settlement Date,
Purchaser shall bear all obligations with respect to any
overproduction liability and shall receive the benefit of and
be credited with any underproduction credit, including
overproduction and underproduction attributable to periods of
time prior to the Effective Time.
(b) Prepayment Obligations. At Closing or on the Final Settlement
Date, as the case may be, the Purchase Price shall be adjusted
downward by all amounts received by Sellers prior to the
Closing with respect to Prepayment Obligations.
(c) Refund Obligations. At Closing or on the Final Settlement
Date, as the case may be, the Purchase Price shall be adjusted
downward by all amounts received by Sellers prior to the
Closing with respect to Refund Obligations.
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4.3 Suspense Accounts
The parties agree that all suspended royalties and other proceeds which
are held by Sellers (or by a third-party designee on behalf of Sellers)
in suspense for third parties attributable to production from the
Assets shall be transferred to Purchaser at the Closing. As of February
28, 2004, the aggregate amount of such suspended royalties is
$124,766.00. Purchaser shall and does hereby assume responsibility for
the payment of all suspended revenues to third parties entitled to the
same and shall and does hereby hold Sellers harmless from and against
any loss, liability, cost or expense (other than those that may be
attributed to Sellers' improper placement of such revenues in suspense)
which might arise from claims of third parties asserted following
Sellers' transfer to Purchaser of the suspended revenues pursuant to
this Section 4.3.
4.4 Adjustments to Account
(a) An interim accounting of the adjustments pursuant to Sections
4.1 and 4.2 shall be made at Closing, based on (i) Sellers'
good faith estimate and Purchaser's verification of the costs
and expenses paid by Sellers prior to Closing and the revenues
received by Sellers prior to Closing, and (ii) the
quantification of Imbalances, Prepayments and Refunds existing
as of the Effective Time and confirmed by the Parties pursuant
to Section 4.2 above. Sellers shall provide a statement
setting forth the adjustments to be made at Closing not later
than three (3) Business Days prior to Closing and shall assist
Purchaser in verifying the amounts set forth in such
statement. A further accounting of the adjustments pursuant to
Sections 4.1 and 4.2 shall be conducted on or before the Final
Settlement Date. Any adjustment due from a Party for which
such Party has received written notice not later than the
Final Settlement Date, shall be settled by payment by such
Party required to make payment hereunder within 15 days of
being notified of the determination of the amount owing.
(b) During the 90 day period following the Closing Date, Purchaser
may audit the books, records and accounts of Sellers
respecting the Assets, for the purpose of effecting
adjustments pursuant to this Article. Such audit shall be
conducted upon reasonable notice to Sellers at Sellers'
offices during Sellers' normal business hours, and shall be
conducted at the sole expense of Purchaser; provided, that
Sellers shall supply such documentation as Purchaser
reasonably requests to support Sellers' proposed final
accounting.
(c) All adjustments provided for in this Article 4 shall be
adjustments to the Base Price.
4.5 Limitation on Adjustments
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY
SHALL BE ENTITLED TO, OR LIABLE FOR, ANY ADJUSTMENTS PURSUANT TO THIS
AGREEMENT (INCLUDING THIS ARTICLE 4) UNLESS WRITTEN NOTICE OF SUCH
ADJUSTMENT HAS BEEN RECEIVED BY THE PARTY LIABLE TO MAKE PAYMENT (OR
NET PAYMENT) IN RESPECT OF SUCH ADJUSTMENT(S) NOT LATER THAN THE FINAL
SETTLEMENT DATE.
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ARTICLE 5
CONDITIONS OF CLOSING
5.1 Purchaser's Conditions
The obligation of Purchaser to purchase the Assets pursuant hereto is
subject to the satisfaction at or prior to the Closing Date of the
following conditions, which are for the exclusive benefit of Purchaser
and may be waived by Purchaser:
(a) Representations and Warranties. The representations and
warranties of Sellers herein contained shall be true in all
material respects when made and as of the Closing Date;
(b) Obligations. All obligations of Sellers contained in this
Agreement to be performed prior to or at Closing shall have
been timely performed in all material respects; and
(c) No Material Damage. There having been no physical damage to,
or other alteration in or to the Assets between the date
hereof and the Closing Time which materially and adversely
affects the value of the Assets.
If any of the foregoing conditions has not been complied with, or
waived by Purchaser at or before the Closing Date, Purchaser may, in
addition to any other remedies which it may have available to it,
terminate its obligations to purchase the Assets by written notice to
Sellers specifying what conditions have not been satisfied and, in such
event, Purchaser and Sellers shall be released and discharged from all
obligations hereunder except as provided in Section 5.4. The
Purchaser's decision to cause Closing to occur shall be deemed its
agreement and acknowledgment that the foregoing conditions have been
complied with to Purchaser's satisfaction or waived by Purchaser.
5.2 Sellers' Conditions
The obligation of Sellers to sell the Assets pursuant hereto is subject
to the satisfaction at or prior to the Closing Date of the following
conditions, which are for the exclusive benefit of Sellers and may be
waived by Sellers:
(a) Representations and Warranties. The representations and
warranties of Purchaser herein contained shall be true in all
material respects when made and as of the Closing Date;
(b) Obligations. All obligations of Purchaser contained in this
Agreement to be performed prior to or at Closing shall have
been timely performed in all material respects; and
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(c) Payment. All amounts to be paid by Purchaser to Sellers at
Closing pursuant to this Agreement hereto shall have been paid
to Sellers by Purchaser in the form stipulated in this
Agreement.
If any of the foregoing conditions precedent has not been complied
with, or waived by Sellers at or before the Closing Date, Sellers may,
in addition to any other remedies which it may have available to it,
terminate its obligations to sell the Assets to Purchaser by written
notice to Purchaser specifying what conditions have not been satisfied
and, in such event, Purchaser and Sellers shall be released and
discharged from all obligations hereunder except as provided in Section
5.4. The Sellers' decision to cause Closing to occur shall be deemed
its agreement and acknowledgment that the foregoing conditions have
been complied with to Sellers' satisfaction or waived by Purchaser.
5.3 Efforts to Fulfill Conditions Precedent
Purchaser and Sellers shall proceed diligently and in good faith and
use all commercially reasonable efforts to fulfill and assist in the
fulfillment of the conditions precedent.
5.4 Failure of a Condition Due to a Breach
If a condition set forth in Section 5.1 or 5.2 is not satisfied as a
result of a breach by a Party of its obligations hereunder, the
following shall occur:
(a) Purchaser's Breach. If Closing does not occur because
Purchaser wrongfully fails to tender performance at Closing or
otherwise breaches this Agreement prior to Closing, Seller
shall be entitled to the Deposit, and all earned interest
thereon, as liquidated damages and Sellers' sole remedy at law
and in equity, as more particularly provided in Section 2.5(a)
above.
(b) Sellers' Breach. If Closing does not occur because Sellers
wrongfully fail to tender performance at Closing or otherwise
breaches this Agreement, Purchaser shall be entitled to
receive the Deposit, and all earned interest thereon,
immediately after the determination that the Closing will not
occur, and Purchaser shall retain any legal or equitable
remedies for Sellers' breach of this Agreement including,
without limitation, specific performance subject to the terms
and conditions of this Agreement (including payment in full of
the Purchase Price as set forth herein).
ARTICLE 6
REPRESENTATIONS AND WARRANTIES
6.1 Representations and Warranties of Sellers
Sellers represents and warrants to Purchaser that:
(a) Standing. Each Seller is a corporation, duly organized and
validly existing under the laws of the state of its formation,
is authorized to carry on business in all jurisdictions in
which the Assets are located, and now has all the requisite
corporate power and authority to sell, assign, transfer and
convey the Assets to Purchaser in accordance with this
Agreement;
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(b) No Conflicts. The consummation of the transactions
contemplated herein will not violate, nor be in conflict with,
any of the controlling documents, by-laws or governing
documents of Sellers or any judgment, decree, order, law,
statute, rule or regulation applicable to Sellers;
(c) Execution of Documents. This Agreement has been duly executed
and delivered by Sellers and all other documents (including
the Assignments and the Specific Conveyances) executed and
delivered by Sellers pursuant hereto will be duly executed and
delivered by Sellers, and this Agreement does, and such
documents will, constitute legal, valid and binding
obligations of Sellers enforceable in accordance with their
respective terms, subject to bankruptcy, insolvency,
preference, reorganization, moratorium and other similar laws
affecting creditors' rights generally and the discretion of
courts with respect to equitable or discretionary remedies and
defenses;
(d) Finders' Fees. Sellers have not incurred any obligation or
liability, contingent or otherwise, for brokers' or finders'
fees in respect of this transaction for which Purchaser shall
have any obligation or liability;
(e) No Authorizations. No authorization or approval or other
action by, and no notice to or filing with, any governmental
authority or regulatory body exercising jurisdiction over the
Assets or Sellers are required for the due execution, delivery
and performance by Sellers of this Agreement, other than
authorizations, approvals or exemptions previously obtained
and currently in force;
(f) Title. Except for the Permitted Encumbrances, the Assets are
free and clear of all liens, mortgages, royalties,
encumbrances and adverse claims created by, through or under
Sellers;
(g) No Lawsuits or Claims. There are no judgments and no claims,
proceedings, actions or lawsuits pending or, to Sellers'
knowledge, contemplated or threatened against or with respect
to the Assets or the interests of Sellers therein other than
as disclosed in Schedule D (the "Pending Claims");
(h) Good Standing under Agreements. To Sellers' knowledge, Sellers
are not in material breach of any term or provision of any of
the Title and Operating Documents;
(i) AFEs. As of the Effective Time, there are no AFEs, unit budget
or similar financial commitments pursuant to which
expenditures in respect of the Assets (in excess of $50,000
net to Sellers) other than ordinary course operating costs are
or may be required after the Effective Time other than as
described in Schedule C and as permitted by Section 8.2;
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(j) Assessments. To Sellers' knowledge, all ad valorem, property,
production, severance and similar taxes and assessments based
on or measured by the ownership of property or the production
of Petroleum Substances or the receipt of proceeds therefrom
in respect of the Assets which have become due and payable
prior to the Effective Time (including all prior years) have
been properly and fully paid and discharged;
(k) Preferential Purchase Right. Except as set forth in Schedule
I, the sale of the Assets pursuant hereto is not subject to
any Preferential Purchase Right created by, through or under
Sellers;
(l) Sale, Processing and Transportation Agreements; No Hedging.
Schedule B includes all Sale, Processing and Transportation
Agreements to which Sellers is a party or is bound and to be
assumed by Purchaser that cannot be terminated without penalty
on notice from Sellers of 30 days or less. Sellers have
entered no hedging arrangements for the sale of Petroleum
Substances which would affect the Properties (or the sale or
marketing of Petroleum Substances therefrom) for periods from
and after the Effective Time;
(m) Imbalances; Take or Pay. To Sellers' knowledge, (i) the
Imbalances affecting the Assets as of the Effective Time and
reflected on Schedule G are true and correct in all material
respects, and (ii) there are no Assets which are subject to
gas balancing agreements containing a provision that would
require cash balancing upon the transfer of the affected Lease
or Well through a transaction of the nature contemplated in
this Agreement. There are no Take or Pay Obligations related
to the Assets;
(n) Environmental Matters. To Sellers' knowledge, Sellers have
given Purchaser access to all written information in its
possession relating to Environmental Liabilities and
Abandonment and Reclamation Obligations and, except as
otherwise disclosed in writing to the Purchaser prior to the
execution of this Agreement, Sellers have not received actual
notice, written or oral, received by any officer of the
Sellers, of:
(i) any material non-compliance in relation to the Assets
of which Sellers is the operator with any law
intended to protect the environment which has not
been remedied in all material respects; or
(ii) any claim in relation to the Assets by any Party of
material Environmental Liabilities (including
pollution) (or material Abandonment and Reclamation
Obligations).
(o) Affiliate Agreements. Sellers are not subject to any agreement
(other than agreements relating to assets that are unrelated
to the Assets purchased herein) with an Affiliate of any of
the Sellers that cannot be terminated by Purchaser after
Closing without penalty, cost or liability. For purposes
hereof, "Affiliate" shall mean (i) any person directly or
indirectly owning, controlling or holding with power to vote
10% or more of the outstanding voting securities of any Seller
or shareholder of any Seller, (ii) any person 10% or more of
whose outstanding voting securities are directly or indirectly
owned, controlled or held with power to vote by any Seller or
shareholder of any Seller, (iii) any person directly or
indirectly controlling, controlled by or under common control
with any Seller or shareholder of any Seller, (iv) any
officer, director, member, manager or partner of any Seller or
any shareholder of Seller, or (v) any person described in
clause (i), (ii), (iii) or (iv) of this Section 6.1(o).
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6.2 Negation of Other Representations
(a) SELLERS MAKE NO REPRESENTATIONS OR WARRANTIES (EXPRESS,
IMPLIED OR STATUTORY AND WHETHER IN CONTRACT OR IN TORT)
EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 6.1 AND, IN
PARTICULAR, AND WITHOUT LIMITATION, SELLERS HEREBY EXPRESSLY
NEGATE AND DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES,
EXPRESS, STATUTORY OR IMPLIED BY THEM, WHETHER CONTAINED IN
ANY INFORMATION MEMORANDUM OR OTHERWISE, WITH RESPECT TO:
(i) ANY DATA OR INFORMATION SUPPLIED BY SELLERS TO
PURCHASER OR ITS REPRESENTATIVES;
(ii) THE QUALITY, QUANTITY OR RECOVERABILITY OF PETROLEUM
SUBSTANCES WITHIN OR UNDER THE LANDS OR ANY LANDS
POOLED OR UNITIZED THEREWITH;
(iii) THE VALUE OF THE ASSETS OR THE FUTURE CASHFLOW
THEREFROM; OR
(iv) THE QUALITY, CONDITION, FITNESS OR MERCHANTABILITY OF
ANY TANGIBLE DEPRECIABLE EQUIPMENT OR PROPERTY
INTERESTS WHICH COMPRISE ALL OR PART OF THE ASSETS.
PURCHASER ACKNOWLEDGES AND CONFIRMS THAT IT HAS NOT RELIED ON
ANY DATA, INFORMATION OR ADVICE FROM SELLERS WITH RESPECT TO
ANY OR ALL OF THE MATTERS SPECIFICALLY ENUMERATED IN THIS
PARAGRAPH IN CONNECTION WITH THE PURCHASE OF THE ASSETS
PURSUANT HERETO, BUT HAS RELIED SOLELY UPON SELLERS'
REPRESENTATIONS SET FORTH IN SECTION 6.1 ABOVE. PURCHASER
FURTHER ACKNOWLEDGES THAT, SUBJECT TO SELLERS' LIMITED
INDEMNITY PURSUANT TO SECTION 7.1 BELOW AND PURCHASER'S RIGHTS
TO SEEK DUE DILIGENCE REDUCTIONS PURSUANT TO SECTION 10.3
BELOW ON OR BEFORE THE FINAL SETTLEMENT DATE, PURCHASER IS
PURCHASING THE ASSETS PURSUANT HERETO ON A "AS IS, WHERE IS"
BASIS WITH ALL FAULTS AND DEFECTS. PURCHASER CONFIRMS THAT IT
HAS NOT RELIED ON ANY COVENANTS, REPRESENTATIONS OR WARRANTIES
OUTSIDE THIS AGREEMENT (WHETHER IN CONTRACT OR IN TORT).
PURCHASER ACKNOWLEDGES AND CONFIRMS THAT IT HAS PERFORMED OR
SHALL PERFORM PRIOR TO THE FINAL SETTLEMENT DATE ITS OWN DUE
DILIGENCE AND WILL CONTINUE TO RELY UPON ITS OWN DUE
DILIGENCE, EVALUATIONS AND PROJECTIONS AS THE SAME RELATE TO
THE ASSETS, INCLUDING WITHOUT LIMITATION, ENVIRONMENTAL DUE
DILIGENCE.
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(b) PURCHASER FOREVER RELEASES AND DISCHARGES SELLERS AND ITS
SHAREHOLDERS, DIRECTORS, OFFICERS, AGENTS AND EMPLOYEES FROM
ANY CLAIMS AND ALL LIABILITY (WHETHER IN CONTRACT OR IN TORT)
TO THE PURCHASER OR PURCHASER'S REPRESENTATIVES, ASSIGNS AND
SUCCESSORS, AS A RESULT OF THE USE OR RELIANCE UPON ADVICE,
INFORMATION, STATEMENTS, OPINIONS OR MATERIALS PERTAINING TO
THE ASSETS WHICH WAS OR WERE DELIVERED OR MADE AVAILABLE TO
PURCHASER BY SELLERS OR ANY OF ITS DIRECTORS, OFFICERS, AGENTS
OR EMPLOYEES.
6.3 Representations and Warranties of Purchaser
Purchaser represents and warrants to Sellers, that:
(a) Standing. Purchaser is a limited liability company, duly
organized and validly existing under the laws of Delaware, is
authorized to carry on business in all jurisdictions in which
the Assets are located, and now has the requisite power and
authority to purchase and pay for the Assets in accordance
with this Agreement;
(b) No Conflicts. The consummation of the transactions
contemplated by this Agreement will not violate, nor be in
conflict with, the controlling documents, by-laws or governing
documents of Purchaser or any judgment, decree, order, law,
statute, rule or regulation applicable to Purchaser;
(c) Execution of Documents. This Agreement has been duly executed
and delivered by Purchaser and all other documents (including
the Assignment and the Specific Conveyances) executed and
delivered by Purchaser pursuant hereto will be duly executed
and delivered by Purchaser, and this Agreement does, and such
documents will, constitute legal, valid and binding
obligations of Purchaser enforceable in accordance with their
respective terms, subject to bankruptcy, insolvency,
preference, reorganization, moratorium and other similar laws
affecting creditors' rights generally and the discretion of
the courts with respect to equitable or discretionary remedies
and defenses;
(d) Finders' Fees. Purchaser has not incurred any liability,
contingent or otherwise, for brokers' or finders' fees in
respect of this transaction for which Sellers shall have any
obligation or liability;
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(e) Purchase Price. Purchaser either now has or will have at
Closing all money that Purchaser will need to pay to Sellers
upon Closing or Purchaser has a contractual right to receive
all money that Purchaser will need to pay to Sellers and such
money will be available to Purchaser for payment to Sellers at
Closing; and
(f) No Authorizations. No authorization or approval or other
action by, and no notice to or filing with, any governmental
authority or regulatory body exercising jurisdiction over the
Assets or Purchaser is required for the due execution,
delivery and performance by Purchaser of this Agreement, other
than authorizations, approvals or exemptions previously
obtained and currently in force.
6.4 Limitation
If Closing occurs: no claim for a breach of a representation or
warranty contained in Sections 6.1(a) through (o), or Section 6.3 shall
be made or be enforceable by a Party unless written notice of such
claim, with reasonable particulars, is given by such Party to the Party
against whom the claim is made on or before the Final Settlement Date.
No claim shall be made by a Party in respect of the representations and
warranties made by the other Party in this Agreement except pursuant to
this Article 6.
ARTICLE 7
INDEMNITIES
7.1 Sellers' Limited Indemnity
(a) Subject to the limitations set forth in subparagraph (b)
below, if the Closing occurs, Sellers agree, jointly and
severally, to indemnify, defend and hold harmless the
Purchaser Indemnified Persons from and against all Losses and
Liabilities that arise out of (i) any breach by Sellers, or
any of them, of any representation, warranty, covenant or
agreement hereunder, and (ii) the ownership and/or operation
of the Assets for periods prior to the Effective Time during
which Sellers owned the Assets. "Purchaser Indemnified
Persons" means Purchaser and its members, managers, officers,
directors, agents and employees.
(b) Sellers' indemnification obligations set forth in subparagraph
(a) above are subject to the following limitations: (i)
Sellers' indemnification obligations shall only extend to and
cover claims made by an Purchaser Indemnified Person on or
before the Final Settlement Date, and all other claims shall
be deemed waived and forever barred, (ii) Sellers' aggregate
liability to Purchaser shall be limited to the Holdback Amount
(and interest earned thereon), (iii) Sellers' indemnification
obligations shall not apply to (A) any amount which is
attributed to an issue that was taken into account as an
adjustment to the Purchase Price at Closing (including any
such amounts deemed to be waived under Section 10.3(b)), or
(B) either Party's costs and expenses with respect to the
negotiation and consummation of this Agreement and the
purchase and sale of the Assets.
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7.2 General Purchaser Indemnity
Except as otherwise provided in this Article 7 or in Article 4,
Purchaser shall, from and after Closing, be liable for and indemnify
Sellers and its shareholders, directors, officers, agents and employees
(collectively the "Sellers Indemnified Persons") from and against all
of Sellers' Losses and Liabilities in respect of, any claim arising
directly from the ownership and/or operation of the Assets (whether
valid or invalid) made by a Person claiming liabilities of any Sellers
Indemnified Person as a consequence of any acts or omissions which
occurred or are alleged by the Person to have occurred and which
directly relate to the Assets, regardless of when such acts or
omissions occurred or are alleged to have occurred, subject only to
Section 7.1 above and the adjustments permitted pursuant to Article 4
(and restricted by Section 4.5).
7.3 Environmental and Related Obligations
Subject to Section 7.1 and Purchaser's rights under Section 10.3 with
respect to Environmental Liabilities asserted prior to the Final
Settlement Date, Purchaser shall be liable for and indemnify and save
harmless all Sellers Indemnified Persons from and against all Losses
and Liabilities of Sellers in respect of, all Environmental Liabilities
howsoever and by whomsoever caused and whether they occur or arise in
whole or in part prior to, on or subsequent to the Closing Date and all
Abandonment and Reclamation Obligations; provided, however, that
Purchaser's indemnification is expressly limited pursuant to Section
7.5 below. Subject to Section 7.1 above and Purchaser's rights to
assert Environmental Liabilities pursuant to Section 10.3 below prior
to the Final Settlement Date, Purchaser shall not be entitled to
exercise and hereby waives any rights or remedies Purchaser may now or
in the future have against any Sellers Indemnified Person in respect of
such Environmental Liabilities or the Abandonment and Reclamation
Obligations, whether such rights and remedies are pursuant to the
common law or statute or otherwise, including without limitation, the
right to name any Sellers Indemnified Person as a Party to any action
commenced by any Person against Purchaser.
7.4 Limitation
The indemnities provided for in this Article 7 apply only if Closing
occurs.
7.5 No Incidental or Consequential Damages
NEITHER PARTY SHALL BE LIABLE PURSUANT TO THIS AGREEMENT FOR ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION,
ECONOMIC LOSS OR LOSS OR DEFERRAL OF PROFITS) SUFFERED BY THE OTHER
PARTY OR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS,
WHETHER BASED UPON BREACH OF CONTRACT (FUNDAMENTAL OR OTHERWISE), TORT
(INCLUDING NEGLIGENCE), OFFENCES AND QUASI-OFFENCES, STRICT LIABILITY
OR ANY OTHER THEORY OF LAW.
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ARTICLE 8
MAINTENANCE OF ASSETS
8.1 Maintenance of Assets Prior to Closing
From the date hereof until the Closing Date, Sellers shall, to the
extent that the nature of its interest permits, and subject to the
Title and Operating Documents and any other agreements and documents to
which the Assets are subject:
(a) maintain and operate (to the extent Sellers serve as operator
of Leases or Wells) the Assets in a proper and prudent manner
in accordance with good oil and gas industry practices,
including maintaining adequate insurance, in material
compliance with all applicable laws, rules, regulations,
orders and directions of governmental and other competent
authorities;
(b) pay or cause to be paid all costs and expenses relating to the
Assets which become due from the date hereof to the Closing
Date;
(c) perform and comply with all covenants and conditions contained
in the Title and Operating Documents and any other agreements
and documents to which the Assets are subject; and
(d) utilize its best efforts to settle, pay or otherwise resolve
the Pending Claims.
8.2 Consent of Purchaser
Notwithstanding Section 8.1, from the date hereof until the Closing
Date, Sellers shall not, without the written consent of Purchaser,
which consent shall not be unreasonably withheld by Purchaser and
which, if provided, will be provided in a timely manner:
(a) make any commitment or propose, initiate or authorize any
capital expenditure with respect to the Assets of which
Sellers' share is in excess of $50,000, except in case of an
emergency or in respect of amounts which Sellers is committed
to expend or is deemed to authorize without its specific
authorization or approval;
(b) surrender or abandon any of the Assets;
(c) amend or terminate any Title and Operating Documents or enter
into any new agreement or commitment relating to the Assets;
or
(d) sell, encumber or otherwise dispose of any of the Assets or
any part or portion thereof, except sales of Petroleum
Substances in the normal course of business.
24
ARTICLE 9
PREFERENTIAL PURCHASE RIGHTS AND CONSENTS
9.1 Preferential Purchase Rights
Within five (5) Business Days after the date of this Agreement, each
Seller shall promptly provide to each Person that possesses a
Preferential Purchase Right any notice that is required in respect of
the transaction contemplated hereby, and each Seller shall use its
commercially reasonable efforts to secure the consent of any party
whose consent is required to effect any sale and purchase herein
provided. No Seller shall have liability to Purchaser for its failure
for any reason to obtain such a consent or for any error in good faith
made in any notice so given.
9.2 Effect of Exercise of Preferential Rights
If a Person that possesses a Preferential Purchase Right exercises such
right with respect to a particular Asset, the particular Asset as to
which such Preferential Purchase Right exercised shall be excluded from
the sale and the Base Price shall be reduced by the Allocated Value for
such excluded Asset. An Asset which is excluded from the Assets as the
result of this Section 9.2 shall not be used in calculating the
Termination Amount and the Termination Amount shall be calculated
utilizing such reduced Base Price. In the event a Person elects to
exercise its Preferential Purchase Right to purchase a Asset but such
sale has not been consummated prior to the Closing under this
Agreement, Purchaser shall pay Sellers the Allocated Value of such
Asset and Seller shall assign to Purchaser the Asset and Purchaser
shall take the Asset subject to the Preferential Purchase Right and
will have the right to receive the proceeds from the Preferential
Purchase Right sale.
ARTICLE 10
TITLE REVIEW AND ENVIRONMENTAL REVIEW
10.1 Title Review
Between the execution of this Agreement and the Closing, subject to
contractual and fiduciary obligations and limits, Sellers shall make
available to Purchaser and its representatives all title documents
(including contracts, correspondence, files and prior title opinions)
in its possession pertaining to the Assets for purposes of permitting
Purchaser to review Seller's title to the Assets. Purchaser shall
conduct its review of Seller's title to the Assets with reasonable
diligence. If there are Title Defects affecting the Assets, Purchaser
shall give written notice of such Title Defects to Sellers and Sellers
shall use reasonable efforts to cure such Title Defects prior to
Closing. Such notice shall specify such Title Defects in reasonable
detail, the Assets directly affected thereby and Purchaser's reasonable
requirements for rectification or curing thereof, including the
proposed adjustment to the Base Price based, in large part, upon the
Allocated Value for each such Asset. In no event shall the adjustment
to the Base Price for any particular Asset resulting from a Title
Defect exceed the Allocated Value for such Asset. Purchaser's title
review shall continue after Closing and Purchaser shall have a
continuing right to assert Title Defects until the Final
25
Settlement Date, provided that (i) Title Defects asserted by Purchaser
after Closing and agreed to by Sellers shall be handled between the
Parties through the post-Closing accounting pursuant to Section 4.4(a)
above, (ii) Title Defects asserted by Purchaser prior to the Final
Settlement Date, but not agreed to by Sellers, will be subject to
arbitration pursuant to Article 11 below, and (iii) the Holdback Escrow
will be extended beyond the Final Settlement Date to the extent
necessary to accommodate any arbitration initiated by a Party, except
that those portions of the Holdback Amount remaining in escrow on the
Final Settlement Date which are not at issue in the arbitration shall
be released to Sellers. For all purposes, Purchaser shall be deemed to
have asserted Title Defects as to any and all Pending Claims that have
not been finally settled or otherwise resolved by Sellers prior to
Closing.
10.2 Environmental Review
Between the execution of this Agreement and the Closing, subject to
contractual and fiduciary obligations and limits, Sellers shall make
available to Purchaser and its representatives all documents (including
contracts, correspondence and files) in its possession relating to the
Assets and will allow Purchaser site access reasonably necessary for
purposes of permitting Purchaser to evaluate the potential for
existence of any Environmental Liabilities. Purchaser shall conduct its
environmental review with reasonable diligence. If there are potential
Environmental Liabilities, Purchaser shall give written notice of such
potential Environmental Liabilities to Sellers. Such notice shall
specify the Asset and the potential Environmental Liabilities in
reasonable detail. Purchaser shall have the right to continue its
environmental review after Closing and until the Final Settlement Date,
provided that (i) Environmental Liabilities asserted by Purchaser after
Closing and agreed to by Sellers shall be handled between the Parties
through the post-Closing accounting pursuant to Section 4.4(a) above,
(ii) Environmental Liabilities asserted by Purchaser prior to the Final
Settlement Date, but not agreed to by Sellers, will be subject to
arbitration pursuant to Article 11 below, and (iii) the Holdback Escrow
will be extended beyond the Final Settlement Date to the extent
necessary to accommodate any arbitration initiated by a Party, except
that those portions of the Holdback Amount remaining in escrow on the
Final Settlement Date which are not at issue in the arbitration shall
be released to Sellers.
10.3 Valuation Resulting from Review
(a) Purchaser shall, acting reasonably, make a valuation of:
(i) the amount by which the value of the Assets is
reduced by Title Defects identified in the notice
contemplated in Section 10.1 that have not been cured
to Purchaser's reasonable satisfaction; and
(ii) the estimated reduction in the value of the Assets
associated with the Environmental Liabilities in
Section 10.2, provided that, when determining the
value impact of Environmental Liabilities:
(A) the costs associated with ordinary course
Abandonment and Reclamation Obligations
relating to the Wells and the Tangibles
shall not be considered except, and only to
the extent that, such costs are forecast to
be materially higher than a prudent
purchaser would have expected them to be
prior to conducting its due diligence; and
26
(B) where the particular Environmental
Liabilities relate to matters which a
prudent operator in the United States
upstream oil and gas industry would, if
aware of such Environmental Liabilities, not
be legally required to commence remediation
operations in respect thereof within twelve
(12) months of the Closing Date, such
Environmental Liabilities shall be deemed to
have no adverse impact on the value of the
Assets.
and shall provide notice of such valuation to Sellers not later than
ten (7) days before the Closing Date, or Final Settlement Date, as
applicable. If Sellers do not agree with the Purchaser's valuations of
the amounts contemplated in paragraphs 10.3(a)(i) and (ii), Sellers may
submit the matter to arbitration in accordance with Article 11. The
arbitration amount shall be the differential amount between the
valuation determined by the Sellers and the valuation determined by the
Purchaser. The aggregate amount ultimately agreed by the Parties or
determined by arbitration shall be referred to herein as the "Due
Diligence Reduction". If the Parties cannot agree on the value of the
Due Diligence Reduction prior to Closing but both of them agree (acting
reasonably) that it is less than ten percent (10%) of the Base Price,
and all other conditions precedent to Closing have been satisfied, then
the Purchase Price payable by Purchaser to Sellers at Closing shall
reflect the Due Diligence Reduction as calculated by Sellers; and,
after Closing, the Holdback Amount held in escrow shall serve to secure
Purchaser's potential entitlement to the difference between Purchaser's
valuation of the Due Diligence Reduction and Sellers' valuation of the
Due Diligence Reduction. The Parties' respective entitlements to such
disputed funds shall be resolved by arbitration pursuant to Article 11,
and the escrowed funds comprising the Holdback Amount shall be paid
from the escrow account as directed by the arbitrator or as otherwise
agreed by the Parties.
(b) If the Due Diligence Reduction is, in the aggregate, less than
one and one-half percent (1.5%) of the Base Price, Purchaser
shall be deemed to have waived such Title Defects and accepted
such Environmental Liabilities; provided, however, that such
1.5% monetary threshold shall not be applicable to Title
Defects that are Pending Claims.
(c) If the Due Diligence Reduction is equal to or greater than one
and one-half percent (1.5%) of the Base Price but less than
ten percent (10%) of the Base Price, the Base Price shall be
reduced by the amount of such Due Diligence Reduction.
If the Due Diligence Reduction is (i) quantified and sought by
Purchaser prior to Closing, and (ii) equal to or greater than ten
percent (10%) of the Base Price, the Base Price shall be reduced by the
amount of such Due Diligence Reduction, provided that either Sellers or
Purchaser will then have the right to terminate this Agreement such
that Closing shall not occur. If both Parties nevertheless agree to
proceed to Closing, the Base Price shall be
27
reduced by the amount of such Due Diligence Reduction. If the Parties
cannot agree on the value of the Due Diligence Reduction and at least
one of them values it (acting reasonably) at ten percent (10%) of the
Base Price or more and the Parties agree to proceed to Closing, the
Purchase Price payable to by Purchaser to Sellers at Closing shall
reflect the Due Diligence Reduction as calculated by Sellers; and,
after Closing, the Holdback Amount held in escrow shall serve to secure
Purchaser's potential entitlement to the difference between Purchaser's
valuation of the Due Diligence Reduction and Sellers' valuation of the
Due Diligence Reduction. The Parties' respective entitlements to such
disputed funds shall be resolved by arbitration pursuant to Article 11,
and the escrowed funds comprising the Holdback Amount (and any interest
that has accrued thereon) shall be paid as directed by the arbitrator
or as otherwise agreed by the Parties. Absent agreement of the Parties
to proceed to Closing as a result of only one of them valuing the Due
Diligence Reduction at an amount equal to or greater than ten percent
(10%) of the Base Price, the other Party may refer the matter of the
value of the Due Diligence Reduction to arbitration pursuant to Article
11.
(d) For the avoidance of doubt, any Due Diligence Reduction on the
Final Settlement Date is expressly limited to the lesser of
(i) the Holdback Amount, or (ii) the amount which, when
combined with the sum of the Due Diligence Reductions made at
Closing, is equal to the Termination Amount.
10.4 Inspection and Testing
Purchaser waives and releases all claims against Sellers, and each of
their respective directors, officers, employees, agents and other
representatives and their successor and assigns for injury to or death
of persons, or damage to property, arising in any way from the exercise
of rights granted to Purchaser hereby or the activities of Purchaser or
its employees, agents or contractors on the Assets. PURCHASER SHALL
INDEMNIFY THE SELLERS AND EACH OF THEIR RESPECTIVE DIRECTORS, OFFICER,
EMPLOYEES, AGENTS AND OTHER REPRESENTATIVES AND THEIR SUCCESSORS AND
ASSIGNS AGAINST AND HOLD EACH AND ALL OF SAID INDEMNITEES HARMLESS FROM
ANY AND ALL LOSSES WHATSOEVER ARISING OUT OF (I) ANY AND ALL STATUTORY
OR COMMON LAW LIENS OR OTHER ENCUMBRANCES FOR LABOR OR MATERIALS
FURNISHED IN CONNECTION WITH SUCH TESTS, SAMPLINGS, STUDIES OR SURVEYS
AS BUYER MAY CONDUCT WITH RESPECT TO THE ASSETS; AND (II) ANY INJURY TO
OR DEATH OF PERSONS OR DAMAGE TO PROPERTY OCCURRING IN, ON OR ABOUT THE
ASSETS AS A RESULT OF SUCH EXERCISE OR ACTIVITIES.
ARTICLE 11
ARBITRATION
11.1 Selection
Any disagreement, difference or dispute between Sellers and Purchaser
under this Agreement shall be resolved by arbitration in accordance
with this Article 11. In the event arbitration to resolve a dispute is
necessary, Sellers and Purchaser agree to jointly select, an individual
who (i) is acknowledged by the Parties as being an expert with respect
to the oil and gas, land and legal issues and/or environmental issues,
as applicable, (ii) who has at least ten (10) years experience in the
oil and gas industry, and (iii) is independent of the Parties and/or
their counsel, which individual shall be the sole arbitrator to hear
and decide all matters that are subject to arbitration pursuant to this
Article 11. If Sellers and Purchaser are unable to mutually agree on
such individual, then the Sellers and Purchaser shall each select an
individual who qualifies as an arbitrator and who will in turn select
an individual to act as arbitrator.
28
11.2 Location.
Any arbitration hearing shall be held in Houston, Texas or at such
other location as mutually agreed by the Parties.
11.3 Rules.
The arbitrator shall settle all disputes in accordance with the Rules
of the American Arbitration Association. The decision of the arbitrator
shall be final and binding on the Parties, and, if necessary, enforced
in any court of competent jurisdiction. Sellers and Purchaser,
respectively, shall bear their own legal fees and other costs incurred
in presenting their respective cases to the arbitrator. The charges and
expenses of the arbitrator shall be shared equally by Sellers and
Purchaser.
11.4 Time.
The arbitration shall commence within ten (10) days after selection of
the arbitrator. In the case of a dispute over a Due Diligence Reduction
the arbitrator shall be selected in accordance with Section 11.1 within
five (5) days after Closing or the Final Settlement Date, as
applicable. Each Party shall have five (5) days to present its position
on the issues being arbitrated. In fulfilling his duties, the
arbitrator shall be bound by the terms and provisions contained herein
but may consider such other matters as in the opinion of the arbitrator
are necessary or helpful to make a proper determination. Additionally,
the arbitrator may consult with and engage disinterested Party experts
to advise the arbitrator, including without limitation, petroleum
engineers and consultants. The arbitrator shall issue its final
determination of all issues on or before thirty (30) days after the
Parties have completed their presentation of the issues.
11.5 Replacement.
If any arbitrator selected hereunder should die, resign or otherwise be
unable to perform his or her duties hereunder, the procedure set forth
in this Article 11 shall be used to select a replacement arbitrator.
ARTICLE 12
OPERATORSHIP
12.1 Transfer of Operatorship
Purchaser acknowledges that Sellers may not be able to transfer
operatorship of some or all of the Assets to Purchaser at or after
Closing. Sellers covenants with Purchaser that Sellers shall do such
reasonable things as Purchaser may request in order to obtain the
appropriate consents and approvals for the assignment and transfer to
Purchaser of operatorship of those of the Assets which Sellers
currently operates.
29
12.2 Removal of Signs
From and after Closing and upon written notice to Purchaser, Sellers
may remove any signs which indicate its ownership or operation of the
Assets. Purchaser will be responsible to erect or install signs
required by governmental agencies to indicate that Purchaser is the
operator of the Assets and to notify other working interest owners, gas
purchasers, suppliers, contractors, governmental agencies and other
Third Parties of Purchaser's interest in the Assets on and after
Closing.
ARTICLE 13
TERMINATION
13.1 Causes of Termination
This Agreement and the transactions contemplated herein may be terminated:
(a) At any time by mutual consent of the Parties;
(b) By Purchaser and Sellers, if the Closing shall not have occurred by
April 30, 2004, despite the good faith reasonable efforts of the Parties, and if
the Party desiring to terminate is not in breach of this Agreement;
(c) By either Party, if the Due Diligence Reduction quantifiable by
Closing is equal to or exceeds ten percent (10%) of the Base Price (the
"Termination Amount");
(d) By Buyer if, on the Closing Date, any of the conditions set forth
in Section 5.1 shall not have been satisfied or waived; or
(e) By Seller if, on the Closing Date, any of the conditions set forth
in Section 5.2 shall not have been satisfied or waived.
13.2 Effect of Termination
In the event of the termination of this Agreement pursuant to the
provisions of this Article 13 or elsewhere in this Agreement, this Agreement
shall become void and have no further force and effect and, except for the
indemnities provided for in Section 10.4, any breach of this Agreement prior to
such termination and any continuing confidentiality requirement, no Party shall
have any further right, duty or liability to the other hereunder. Upon
termination, Purchaser agrees to use its best efforts to return to Seller or
destroy, all materials, documents and copies thereof provided, obtained or
discovered in the course of any due diligence investigations.
30
ARTICLE 14
GENERAL
14.1 Further Assurances
Each Party will, from time to time and at all times after Closing,
without further consideration, do such further acts and deliver all
such further assurances, deeds and documents as shall be reasonably
required in order to fully perform and carry out the terms of this
Agreement.
14.2 No Merger
Subject to the limitations set forth herein, the covenants,
representations, warranties and indemnities contained in this Agreement
shall not merge in any assignments, conveyances, transfers or other
documents executed and delivered at or after Closing, notwithstanding
any rule of law, equity or statute to the contrary and such rules are
hereby waived.
14.3 Entire Agreement
The provisions contained in any and all documents and agreements
collateral hereto shall at all times be read subject to the provisions
of this Agreement and, in the event of conflict, the provisions of this
Agreement shall prevail. This Agreement supersedes all other
agreements, documents, writings and verbal understanding among the
Parties relating to the subject matter hereof.
14.4 Governing Law
THIS AGREEMENT, ALL DOCUMENTS DELIVERED PURSUANT HERETO AND THE LEGAL
RELATIONS BETWEEN THE PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO
ANY PRINCIPLES OF CONFLICTS OF LAWS. THE VALIDITY OF THE VARIOUS
CONVEYANCES AFFECTING TITLE TO REAL PROPERTY SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE JURISDICTION IN WHICH THE
PARTICULAR ASSETS ARE LOCATED.
14.5 Assignment
This Agreement may not be assigned by a Party without the prior written
consent of the other Party. This Agreement shall be binding upon and
shall enure to the benefit of the Parties and their respective
administrators, trustees, receivers, successors and permitted assigns.
14.6 Time of Essence
Time shall be of the essence in this Agreement.
31
14.7 Notices
The addresses and fax number of each Party for notices shall be as
follows:
Sellers: Wilshire Enterprises, Inc.
921 Bergen Avenue
Jersey City, New Jersey 07306
U.S.A.
Fax: (201) 420-6012
Attention: Philip Kupperman
with
Copies to: White Stone Energy, LLC
3838 N. Sam Houston Pkwy E.
Suite 395
Houston, Texas 77032
U.S.A.
Attention: Burt Williams
Fax: (281) 219-4122
and: Porter & Hedges, L.L.P.
700 Louisiana, Suite 3500
Houston, Texas 77002-2764
U.S.A.
Attention: Douglas C. Atnipp
Fax: (713) 226-0264
Purchaser: Crow Creek Energy L.L.C.
2100 South Utica, Suite 200
Tulsa, Oklahoma 74114
Attn: Maurice Storm
[Fax: (918) 745-1701]
Any notice, communication or statement (a "notice") required, permitted
or contemplated hereunder shall be in writing and shall be delivered as
follows:
(a) by delivery to a Party between 8:00 a.m. and 5:00 p.m. on a
Business Day at the address of such Party for notices, in
which case the notice shall be deemed to have been received by
that Party when it is delivered; or
(b) by fax to a Party to the fax number of such Party for notices,
in which case, if the notice was faxed prior to 5:00 p.m. on a
Business Day the notice shall be deemed to have been received
by that Party when it was faxed and if it was faxed on a day
which is not a Business Day or is faxed after 5:00 p.m. on a
Business Day, it shall be deemed to have been received on the
next following Business Day.
32
A Party may from time to time change its address for service or its fax
number for service by giving written notice of such change to the other
Party.
14.8 Invalidity of Provisions
In case any of the provisions of this Agreement should be invalid,
illegal or unenforceable in any respect, the validity, legality or
enforceability of the remaining, provisions contained herein shall not
in any way be affected or impaired thereby.
14.9 Waiver
No waiver by any Party of any breach (whether actual or anticipated) of
any of the terms, conditions, representations or warranties contained
herein shall take effect or be binding upon that Party unless the
waiver is expressed in writing under the authority of that Party. Any
waiver so given shall extend only to the particular breach so waived
and shall not limit or affect any rights with respect to any other or
future breach.
14.10 Remedies Generally
No failure on the part of any Party in exercising any right or remedy
hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or remedy preclude any other or
further exercise thereof or the exercise of any other right or remedy
in law or in equity or by statute or otherwise conferred.
14.11 Amendment
This Agreement shall not be varied in its terms or amended by oral
agreement or by representations or otherwise other than by an
instrument in writing dated subsequent to the date hereof, executed by
a duly authorized representative of each Party.
14.12 Public Announcements
Until Closing has occurred, no Party shall release any information
concerning this Agreement and the transactions herein provided for
without the prior written consent of the other Party, which consent
shall not be unreasonably withheld. Nothing contained herein shall
prevent a Party at any time from furnishing information (i) to any
governmental agency or regulatory authority including applicable
recognized stock exchanges and securities commissions, or to the public
if required by applicable law, provided that the Parties shall advise
each other in advance of any public statement which they propose to
make, or (ii) in connection with obtaining consents or complying with
Preferential Purchase Rights.
14.13 Counterpart Execution
This Agreement may be executed in counterpart and all executed
counterparts together shall constitute one agreement.
33
14.14 Express Negligence Rule
ALL INDEMNIFICATION, RELEASE AND ASSUMPTION PROVISIONS CONTAINED IN
THIS AGREEMENT SHALL BE APPLICABLE WHETHER OR NOT THE LOSSES, COSTS,
EXPENSES AND DAMAGES IN QUESTION AROSE SOLELY OR IN PART FROM THE
ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER
FAULT OF ANY INDEMNIFIED PARTY (EXCLUDING GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT). PURCHASER AND EACH SELLER ACKNOWLEDGE THAT THIS STATEMENT
COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS.
14.15 Waiver of Deceptive Trade Practices Acts
PURCHASER WAIVES ITS RIGHTS UNDER DECEPTIVE TRADE PRACTICES ACT SECTION
17.41 et seq., TEXAS BUSINESS & COMMERCE CODE, A LAW THAT GIVES
CONSUMERS SPECIAL RIGHTS, AND UNDER SIMILAR STATUTES ADOPTED IN OTHER
STATES, TO THE EXTENT THEY HAVE APPLICABILITY TO THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. AFTER CONSULTATION WITH AN ATTORNEY OF
ITS SELECTION, BUYER CONSENTS TO THIS WAIVER.
14.16 Appointment of WEI as Nominee
SFO, RRC and BV each hereby appoints WEI as its nominee and authorizes
WEI to act on its behalf (i) for purposes of receiving notices due
Sellers hereunder, and (ii) for purposes of executing and acting under
the Deposit Escrow Agreement and Holdback Escrow Agreement.
34
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
day and year first above written.
SELLERS:
WILSHIRE ENTERPRISES, INC.
By:_________________________________________
Printed Name: ______________________________
Title: ________________ President
SAN FRANCISCO OIL COMPANY
By:_________________________________________
Printed Name: ______________________________
Title: ________________ President
ROCKLAND RESOURCES, CO.
By:_________________________________________
Printed Name: ______________________________
Title: ________________ President
BRITALTA VENEZOLANO, LTD.
By:_________________________________________
Printed Name: ______________________________
Title: ________________ President
This is the execution page to a Purchase and Sale Agreement dated March 17, 2004
among Wilshire Enterprises, Inc., San Francisco Oil Company, Rockland Resources,
Co. and Britalta Venezolano, Ltd., as Sellers, and Crow Creek Energy L.L.C., as
Purchaser.
PURCHASER:
CROW CREEK ENERGY L.L.C.
By:_______________________________________
Printed Name:_____________________________
Title: Manager
This is the execution page to a Purchase and Sale Agreement dated March 17, 2004
among Wilshire Enterprises, Inc., San Francisco Oil Company, Rockland Resources,
Co., and Britalta Venezolano, Ltd., as Sellers, and Crow Creek Energy L.L.C., as
Purchaser.
35
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
AR Properties
CECIL Field
- -----------------------------------------------------------------------------------------------------------------------------------
FORD C B 2-31 09N-27W-31 DUNN A Proved Producing XTO ENERGY INCORPORATED FRANKLIN
- -----------------------------------------------------------------------------------------------------------------------------------
CA Properties
MOUNT POSO Field
- -----------------------------------------------------------------------------------------------------------------------------------
LEWIS-USL 1 26S-28EMD-34 VEDDER Proved Producing SAN JOAQUIN FACILITIES MGMT KERN
LEWIS-USL 4 26S-28EMD-34 VEDDER Proved Producing SAN JOAQUIN FACILITIES MGMT KERN
- -----------------------------------------------------------------------------------------------------------------------------------
RICHFIELD Field
- -----------------------------------------------------------------------------------------------------------------------------------
RICHFIELD EAST DOME UNIT Proved Producing GREKA SMV INCORPORATED ORANGE
- -----------------------------------------------------------------------------------------------------------------------------------
KS Properties
CONNIE SUE Field
- -----------------------------------------------------------------------------------------------------------------------------------
OSBORNE 1 32S-06W-32 MISSISSIPPI LIME Proved Producing GLB EXPLORATION, INC. HARPER
- -----------------------------------------------------------------------------------------------------------------------------------
OH Properties
VARIOUS Field
- -----------------------------------------------------------------------------------------------------------------------------------
1979 LP Proved Producing VARIOUS
1980 LP Proved Producing VARIOUS
1981 LP Proved Producing VARIOUS
1982 LP Proved Producing VARIOUS
1983 LP Proved Producing VARIOUS
1984 LP Proved Producing VARIOUS
1985 LP Proved Producing VARIOUS
1986 LP Proved Producing VARIOUS
1987 LP Proved Producing VARIOUS
1988 LP Proved Producing VARIOUS
1989 LP Proved Producing VARIOUS
1989F LP Proved Producing VARIOUS
1989I LP Proved Producing VARIOUS
1989J LP Proved Producing VARIOUS
1990 LP Proved Producing VARIOUS
1991 LP Proved Producing VARIOUS
1992 LP Proved Producing VARIOUS
1993 LP Proved Producing VARIOUS
- -----------------------------------------------------------------------------------------------------------------------------------
OK Properties
ALEDO SOUTHEAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
CORDES 1-15 15N-18W-15 ATOKA Proved Producing DOMINION OKLAHOMA TEXAS E&P CUSTER
EDGAR 15N-18W-13 MARCHAND Proved Producing DOMINION OKLAHOMA TEXAS E&P CUSTER
WALKER 1-10 15N-18W-10 CHEROKEE Proved Producing DUNCAN OIL PROPERTIES INC. CUSTER
JUDITH 15N-18W-02 ATOKA & CHEROKEE Proved Shut-In HARDING & SHELTON INCORPORATED CUSTER
SMITH 1-A 15N-18W-14 MORROW Proved Shut-In GEYER BROS EQUIPMENT COMPANY CUSTER
- -----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
FORD C B 2-31 0.0096950 0.0084830 0.0096950 0.0084830 3047105850000 10.017
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
LEWIS-USL 1 0.0000000 0.0277778 0.0000000 0.0277778 4029122930000 6.314
LEWIS-USL 4 0.0000000 0.0277778 0.0000000 0.0277778 4029558130000 9.167
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RICHFIELD EAST DOME UNIT 0.0020591 0.0016682 0.0020591 0.0016682 11.141
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
OSBORNE 1 0.2000000 0.1600000 0.2000000 0.1600000 15077214240000 0.000
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
1979 LP 0.0300000 0.0243750 0.0300000 0.0243750 1.010
1980 LP 0.0400000 0.0325000 0.0400000 0.0325000 4.431
1981 LP 0.1149000 0.0934000 0.1149000 0.0934000 12.276
1982 LP 0.0430000 0.0350000 0.0430000 0.0350000 3.854
1983 LP 0.0286806 0.0233030 0.0286806 0.0233030 3.015
1984 LP 0.0370000 0.0301000 0.0370000 0.0301000 5.054
1985 LP 0.0161000 0.0131000 0.0161000 0.0131000 21.057
1986 LP 0.0185000 0.0150000 0.0185000 0.0150000 5.750
1987 LP 0.0408000 0.0331000 0.0408000 0.0331000 1.614
1988 LP 0.0258000 0.0209000 0.0258000 0.0209000 6.367
1989 LP 0.0182000 0.0148000 0.0182000 0.0148000 13.122
1989F LP 0.0003000 0.0002000 0.0003000 0.0002000 0.000
1989I LP 0.0119000 0.0097000 0.0119000 0.0097000 0.000
1989J LP 0.0007000 0.0006000 0.0007000 0.0006000 0.000
1990 LP 0.0288150 0.0234093 0.0288150 0.0234093 1.439
1991 LP 0.0053000 0.0043000 0.0053000 0.0043000 1.241
1992 LP 0.0075825 0.0061607 0.0075825 0.0061607 0.655
1993 LP 0.0227273 0.0184659 0.0227273 0.0184659 0.039
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
CORDES 1-15 0.0000000 0.0228256 0.0000000 0.0228256 35039219570000 49.842
EDGAR 0.1855469 0.1522066 0.1855469 0.1522066 35039200990000 2.160
WALKER 1-10 0.0000000 0.0001221 0.0000000 0.0001221 35039218880000 0.021
JUDITH 0.0000000 0.0197550 0.0000000 0.0197550 35039212660000 0.000
SMITH 1-A 0.0000000 0.0000000 0.0000000 0.0000000 35039201300000 0.000
- -----------------------------------------------------------------------------------------------------------------
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
ALLEN Field
- -----------------------------------------------------------------------------------------------------------------------------------
BOND ALLEN SAND UNIT 05N-08E-14&15 ALLEN Proved Producing WILSHIRE OIL COMPANY OF TEXAS HUGHES
BOND BOOCH UPPER SAND UNIT 05N-08E-11,12,14&15 BOOCH & ALLEN Proved Producing WILSHIRE OIL COMPANY OF TEXAS HUGHES
- -----------------------------------------------------------------------------------------------------------------------------------
ANTHON NORTHWEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
EDGAR 1-11 15N-18W-11 SPRINGER Proved Producing DOMINION OKLAHOMA TEXAS E&P CUSTER
WATT SE 4 1 15N-18W-02 SPRINGER Proved Producing DOMINION OKLAHOMA TEXAS E&P CUSTER
- -----------------------------------------------------------------------------------------------------------------------------------
APACHE EAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
YATES 1-31 05N-10W-31 MORROW Proved Producing KAISER FRANCIS CADDO
- -----------------------------------------------------------------------------------------------------------------------------------
BROOKEN Field
- -----------------------------------------------------------------------------------------------------------------------------------
HARPER 1 07N-18E-05 HARTSHORNE Proved Producing QUANAH COMPANY PITTSBURG
- -----------------------------------------------------------------------------------------------------------------------------------
CARPENTER NORTHEAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
SHEPARD 1-15 15N-18W-15 MORROW Proved Producing DOMINION OKLAHOMA TEXAS E&P CUSTER
- -----------------------------------------------------------------------------------------------------------------------------------
CEDARS Field
- -----------------------------------------------------------------------------------------------------------------------------------
FRAZIER 1 09N-26E-16 SPIRO Proved Producing QUALITY PRODUCTION SERVICE L L LE FLORE
HICKMAN 1 SE NW SE 10N-27E-32 SPIRO Proved Producing FAULCONER VERNON E INC. LE FLORE
DAVIS 1 09N-26E-16 ATOKA Proved Shut-In QUALITY PRODUCTION SERVICE L L LE FLORE
- -----------------------------------------------------------------------------------------------------------------------------------
CRUCE NORTH Field
- -----------------------------------------------------------------------------------------------------------------------------------
REEDER L D 01N-06W-14 DEESE Proved Shut-In WESTPORT OIL & GAS COMPANY INC STEPHENS
- -----------------------------------------------------------------------------------------------------------------------------------
EDMOND Field
- -----------------------------------------------------------------------------------------------------------------------------------
ARROWHEAD 1-A 13N-02W-05 PRUE Proved Producing SHIELDS OPERATING, INC OKLAHOMA
- -----------------------------------------------------------------------------------------------------------------------------------
EDMOND WEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
CAROL 15N-04W-16 MISSISSIPPIAN Proved Producing CORDILLERA ENERGY PARTNERS LLC LOGAN
GWYN 15N-04W-22 MISSISSIPPIAN Proved Producing SAMSON RESOURCES COMPANY LOGAN
IMA 15N-04W-09 MISSISSIPPIAN Proved Producing HIMCO OIL & GAS INCORPORATED LOGAN
ISABELLE 15N-04W-04 MISSISSIPPIAN Proved Producing CORDILLERA ENERGY PARTNERS LLC LOGAN
KRANNING 15N-04W-15 MISSISSIPPIAN Proved Producing WILSHIRE OIL COMPANY OF TEXAS LOGAN
LYNN 15N-04W-10 MISSISSIPPIAN Proved Producing CORDILLERA ENERGY PARTNERS LLC LOGAN
MAXINE 15N-04W-04 MISSISSIPPIAN Proved Producing MARJO OPERATING COMPANY INC. LOGAN
RUTH 15N-04W-22 MISSISSIPPIAN Proved Producing WILSHIRE OIL COMPANY OF TEXAS LOGAN
SUE; COOLEY 15N-04W-09 MISSISSIPPIAN Proved Producing CORDILLERA ENERGY PARTNERS LLC LOGAN
WANDA 15N-04W-15 PRUE/MISS Proved Producing SAMSON RESOURCES COMPANY LOGAN
RUTH (Hogshooter BP) 15N-04W-22 HOGSHOOTER/LAYTON Probable Behind Pipe WILSHIRE OIL COMPANY OF TEXAS LOGAN
RUTH Location (Hogshooter BP) 15N-04W-22 HOGSHOOTER/LAYTON Possible Behind Pipe WILSHIRE OIL COMPANY OF TEXAS LOGAN
CAROL Location 15N-04W-16 MISSISSIPPIAN Possible Undeveloped CORDILLERA ENERGY PARTNERS LLC LOGAN
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
BOND ALLEN SAND UNIT 1.0000000 0.8203125 1.0000000 0.8203125 7.648
BOND BOOCH UPPER SAND UNIT 1.0000000 0.8296130 1.0000000 0.8296130 35063204060000 137.548
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
EDGAR 1-11 0.2343750 0.1903077 0.2343750 0.1903077 35039200880000 81.305
WATT SE 4 1 0.1658353 0.1441284 0.1658353 0.1441284 35039201620000 24.709
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
YATES 1-31 0.0019557 0.0014669 0.0019557 0.0014669 35015214970000 1.831
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
HARPER 1 0.2187500 0.1914062 0.2187500 0.1914062 35121600860001 2.234
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
SHEPARD 1-15 0.0000000 0.0000000 0.0000000 0.0000000 35039201420000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
FRAZIER 1 0.0032179 0.0028158 0.0032179 0.0028158 35079204000000 0.017
HICKMAN 1 SE NW SE 0.0664063 0.0581052 0.0664063 0.0581052 35079200200000 3.844
DAVIS 1 0.0032179 0.0028158 0.0032179 0.0028158 35079203720000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
REEDER L D 0.2493688 0.1870313 0.2493688 0.1870313 35137238120000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
ARROWHEAD 1-A 0.0500000 0.0395000 0.0500000 0.0395000 35109221150000 7.514
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
CAROL 0.2250000 0.1845703 0.2250000 0.1845703 35083500250000 88.472
GWYN 0.4500000 0.3691406 0.4500000 0.3691406 35083500310000 153.767
IMA 0.1406250 0.1098633 0.1406250 0.1098633 35083300220000 0.000
ISABELLE 0.4500000 0.3691407 0.4500000 0.3691407 35083500100000 110.498
KRANNING 0.7500000 0.6152344 0.7500000 0.6152344 35083353630002 252.366
LYNN 0.2250000 0.1844910 0.2250000 0.1844910 35083500160000 7.421
MAXINE 0.2250000 0.1845703 0.2250000 0.1845703 35083301200000 47.182
RUTH 0.4500000 0.3709863 0.4500000 0.3709863 35083300380000 82.030
SUE; COOLEY 0.0000000 0.0000000 0.0000000 0.0000000 35083500150000 0.000
WANDA 0.4500000 0.3689010 0.4500000 0.3689010 35083500210000 100.590
RUTH (Hogshooter BP) 0.4500000 0.3709863 0.4500000 0.3709863 35083300380000 0.000
RUTH Location (Hogshooter BP) 0.4500000 0.3709863 0.4500000 0.3709863 35083300380000 0.000
CAROL Location 0.2250000 0.1845703 0.2250000 0.1845703 0.000
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
GWYN Location 15N-04W-22 MISSISSIPPIAN Possible Undeveloped SAMSON RESOURCES COMPANY LOGAN
ISABELLE Location 15N-04W-04 MISSISSIPPIAN Possible Undeveloped CORDILLERA ENERGY PARTNERS LLC LOGAN
KRANNING Location 15N-04W-15 MISSISSIPPIAN Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LOGAN
LYNN Location 15N-04W-10 MISSISSIPPIAN Possible Undeveloped CORDILLERA ENERGY PARTNERS LLC LOGAN
Maxine Location 15N-04W-04 MISSISSIPPIAN Possible Undeveloped CORDILLERA ENERGY PARTNERS LLC LOGAN
RUTH Location 15N-04W-22 MISSISSIPPIAN Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LOGAN
- -----------------------------------------------------------------------------------------------------------------------------------
ELMWOOD SOUTH Field
- -----------------------------------------------------------------------------------------------------------------------------------
ELMWOOD SOUTH UNIT 01N-23&24ECM-36+ MORROW Proved Producing WILLIFORD ENERGY COMPANY BEAVER
- -----------------------------------------------------------------------------------------------------------------------------------
GOLDEN TREND Field
- -----------------------------------------------------------------------------------------------------------------------------------
ELLITHORPE 04N-03W-29 BOIS D ARC & CHIMNEY Proved Producing SAMSON RESOURCES COMPANY GARVIN
HILDERBRANDT A 1 1A 04N-03W-30 SYCAMORE Proved Producing WARD PETROLEUM CORPORATION GARVIN
LEON 04N-03W-29 VIOLA SYCAMORE & HUN Proved Producing CASILLAS PETROLEUM CORPORATION GARVIN
SIMPSON 04N-03W-29 HUNTON Proved Producing WESTPORT OIL & GAS COMPANY INC GARVIN
WORK A-1 04N-03W-32 BOIS D ARC CHIMNEY YHI Proved Producing ANADARKO PETROLEUM CORPORATION GARVIN
WORK B-1 04N-03W-29 BOIS D ARC CHIMNEY YHI Proved Producing WARD PETROLEUM CORPORATION GARVIN
- -----------------------------------------------------------------------------------------------------------------------------------
GREENFIELD NORTHWEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
PRICE 17-3 15N-11W-17 MORROW Proved Producing BRIGHAM OIL & GAS L P BLAINE
PRICE 17-1 15N-11W-17 CUNNINGHAM Proved Shut-In BRIGHAM OIL & GAS L P BLAINE
- -----------------------------------------------------------------------------------------------------------------------------------
HARMON EAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
HAMILTON 1-27 20N-21W-27 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 1-28 20N-21W-28 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 2-27 20N-21W-27 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 2-28 20N-21W-28 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 3-27 20N-21W-27 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 4-27 20N-21W-27 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 4-28 20N-21W-28 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
HAMILTON 5-28 20N-21W-28 MORROW Proved Producing CRAWLEY PETROLEUM CORPORATION WOODWARD
- -----------------------------------------------------------------------------------------------------------------------------------
HASKELL Field
- -----------------------------------------------------------------------------------------------------------------------------------
CRAFT 1-33H 08N-21E-33 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
CRAFT 3-33 08N-21E-33 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
CRAFT 4-33 08N-21E-33 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
ROYE 2-31 08N-21E-31 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
- -----------------------------------------------------------------------------------------------------------------------------------
HOLDENVILLE Field
- -----------------------------------------------------------------------------------------------------------------------------------
MILLER J 07N-09E-08 BOOCH Proved Producing WILSHIRE OIL COMPANY OF TEXAS HUGHES
- -----------------------------------------------------------------------------------------------------------------------------------
KINTA Field
- -----------------------------------------------------------------------------------------------------------------------------------
ADAMS 1 08N-19E-36 HARTSHORNE Proved Producing BEAR PRODUCTION INCORPORATED HASKELL
BRANHAM 3-4 07N-20E-04 HARTSHORNE Proved Producing REDWINE RESC INCORPORATED HASKELL
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- -------------------------------------------------------------------------------------------------------------------
GWYN Location 0.4500000 0.3691406 0.4500000 0.3691406 0.000
ISABELLE Location 0.4500000 0.3691407 0.4500000 0.3691407 0.000
KRANNING Location 0.7500000 0.6152344 0.7500000 0.6152344 0.000
LYNN Location 0.2250000 0.1844910 0.2250000 0.1844910 0.000
Maxine Location 0.2250000 0.1845703 0.2250000 0.1845703 0.000
RUTH Location 0.4500000 0.3709863 0.4500000 0.3709863 0.000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
ELMWOOD SOUTH UNIT 0.1248940 0.0975734 0.1248940 0.0975734 35007236410000 300.625
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
ELLITHORPE 0.2500000 0.1898494 0.1875000 0.1423871 35049232580000 104.677
HILDERBRANDT A 1 1A 0.1417545 0.1063160 0.1417545 0.1063160 35049234860000 31.213
LEON 0.0440703 0.0330528 0.0440703 0.0330528 35049220940000 6.255
SIMPSON 0.2496280 0.1897173 0.2496280 0.1897173 35049220320000 13.358
WORK A-1 0.0000000 0.0003255 0.0000000 0.0003255 35049227250000 0.245
WORK B-1 0.0000000 0.0020448 0.0000000 0.0020448 35049227160000 1.491
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
PRICE 17-3 0.0000000 0.0089533 0.0000000 0.0089533 35011228960000 1.151
PRICE 17-1 0.0000000 0.0089533 0.0000000 0.0089533 35011215520000 0.000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
HAMILTON 1-27 0.0000000 0.0572916 0.0000000 0.0572916 35153209950000 87.690
HAMILTON 1-28 0.0156250 0.0136719 0.0156250 0.0136719 35153210720000 18.962
HAMILTON 2-27 0.4590436 0.4015744 0.4590436 0.4015744 35153216930000 497.969
HAMILTON 2-28 0.0156250 0.0136730 0.0156250 0.0136730 35153216870000 15.233
HAMILTON 3-27 0.1147609 0.1432291 0.1147609 0.1432291 35153220820000 164.395
HAMILTON 4-27 0.1147609 0.1432292 0.1147609 0.1432292 35153222760000 120.064
HAMILTON 4-28 0.0156250 0.0136719 0.0156250 0.0136719 35153222770000 21.702
HAMILTON 5-28 0.0156250 0.0136719 0.0156250 0.0136719 35153223770000 22.885
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CRAFT 1-33H 0.0000000 0.0117190 0.0000000 0.0117190 35061216810000 5.526
CRAFT 3-33 0.0000000 0.0117190 0.0000000 0.0117190 35061217160000 0.000
CRAFT 4-33 0.0000000 0.0117188 0.0000000 0.0117188 35061217170000 4.903
ROYE 2-31 0.0000000 0.0103186 0.0000000 0.0103186 35061217130000 0.448
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
MILLER J 1.0000000 0.7500000 1.0000000 0.7500000 0.000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
ADAMS 1 0.0000000 0.0009766 0.0000000 0.0009766 35061209210000 0.154
BRANHAM 3-4 0.0000000 0.0000000 0.0000000 0.0000000 35061216840000 0.000
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
BRANHAM 5-4 07N-20E-04 HARTSHORNE Proved Producing REDWINE RESC INCORPORATED HASKELL
BRANHAM 7-4 07N-20E-04 HARTSHORNE Proved Producing REDWINE RESC INCORPORATED HASKELL
BRANHAM 8-4 07N-20E-04 HARTSHORNE Proved Producing REDWINE RESC INCORPORATED HASKELL
BRANHAM 9-4 07N-20E-04 HARTSHORNE Proved Producing REDWINE RESC INCORPORATED HASKELL
BURGE 3 08N-21E-31 ATOKA Proved Producing STEPHENS PRODUCTION COMPANY HASKELL
BURGE SW SW NE 1-U 08N-21E-31 SPIRO Proved Producing EXXON COMPANY U S A HASKELL
COBLENTZ 1 07N-19E-27 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
COBLENTZ 2-27 07N-19E-27 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
COBLENTZ 4 07N-19E-27 HARTSHORNE Proved Producing OXLEY PETROLEUM COMPANY LATIMER
COBLENTZ 5 07N-19E-27 HARTSHORNE Proved Producing OXLEY PETROLEUM COMPANY LATIMER
COBLENTZ 6 07N-19E-27 HARTSHORNE Proved Producing OXLEY PETROLEUM COMPANY LATIMER
COLLINS 1 06N-18E-09 RED OAK Proved Producing EXXON COMPANY U S A LATIMER
CRAFT 2-33 08N-21E-33 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
DOBY 2 2-A 22-A 07N-20E-03 ATOK-HRSR Proved Producing GALAXY ENERGIES INCORPORATED HASKELL
DONNA JO 1 07N-20E-03 SPIRO & CROMWELL Proved Producing SAMSON RESOURCES COMPANY HASKELL
DONNA JO 2 07N-19E-23 HARTSHORNE Proved Producing OXLEY PETROLEUM COMPANY HASKELL
DONNA JO 4 07N-19E-23 HARTSHORNE Proved Producing OXLEY PETROLEUM COMPANY HASKELL
GLENN 1 06N-18E-02 ATOKA Proved Producing AMOCO PRODUCTION COMPANY LATIMER
GLENN 2 06N-18E-02 ATOKA Proved Producing EXXON MOBIL CORPORATION LATIMER
GLENN 2-5 06N-18E-02 ATOKA Proved Producing NEG OPERATING L L LATIMER
GLENN 2-6 06N-18E-02 RED OAK Proved Producing BRG PETROLEUM CORPORATION LATIMER
GLENN 2-7 06N-18E-02 MCALESTER Proved Producing BRAVO NATURAL RESOURCES INC. LATIMER
GLENN 2-8 06N-18E-02 HARTSHORNE Proved Producing BRAVO NATURAL RESOURCES INC. LATIMER
GLENN 2-9 06N-18E-02 HARTSHORNE Proved Producing SUMMIT ENERGY INCORPORATED LATIMER
GLENN 3 06N-18E-02 HARTSHORNE Proved Producing OXLEY PETROLEUM COMPANY LATIMER
GLENN 4 06N-18E-02 ATOKA Proved Producing AMOCO PRODUCTION COMPANY LATIMER
GOVERNMENT 1A SE NW NW 06N-17E-07 RED OAK Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
GOVERNMENT 2 06N-17E-07 HARTSHORNE Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
GOVERNMENT 3A-7U 06N-17E-07 ATOKA Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
GOVERNMENT 4-7 06N-17E-07 HARTSHORNE Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
HIGHTOWER 1T 08N-21E-33 CROMWELL Proved Producing TEXACO EXPL & PROD HASKELL
HIGHTOWER 2 08N-21E-33 ATOK-CRML Proved Producing OXLEY PETROLEUM COMPANY HASKELL
HIGHTOWER 3 08N-21E-33 ATOKA BASAL Proved Producing BRAVO NATURAL RESOURCES INC HASKELL
HIGHTOWER A-1 08N-21E-33 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
JAKE 1-20 08N-19E-20 HARTSHORNE Proved Producing WILLIAMS PRODUCTION MID-CON HASKELL
JAKE 2-20 08N-19E-20 HARTSHORNE Proved Producing WILLIAMS PRODUCTION MID-CON HASKELL
JAKE 3-20 08N-19E-20 HARTSHORNE Proved Producing WILLIAMS PRODUCTION MID-CON HASKELL
JAKE 4-20 08N-19E-20 HARTSHORNE Proved Producing WILLIAMS PRODUCTION MID-CON HASKELL
JOHNSON 1C SW NW SE 08N-19E-21 SPIRO Proved Producing WILLIFORD PETROLEUM LLC HASKELL
JOHNSON 2C 08N-19E-21 SPIRO Proved Producing WILLIFORD PETROLEUM LLC HASKELL
JONES-MILLER NE NW SE 1 08N-19E-20 SPIRO Proved Producing SAMSON RESOURCES COMPANY HASKELL
JUDYANN 1-28 08N-19E-28 ATOKA Proved Producing SAMSON RESOURCES COMPANY HASKELL
MCCRABB WILSON 1 06N-18E-09 RED OAK Proved Producing EXXON COMPANY U S A LATIMER
MCCRABB WILSON 2 06N-18E-09 ATOKA Proved Producing EXXON COMPANY U S A LATIMER
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ---------------------------------------------------------------------------------------------------------------------
BRANHAM 5-4 0.0000000 0.0000000 0.0000000 0.0000000 35061216000000 0.000
BRANHAM 7-4 0.0000000 0.0000000 0.0000000 0.0000000 35061215980000 0.000
BRANHAM 8-4 0.0000000 0.0000000 0.0000000 0.0000000 35061216210000 0.000
BRANHAM 9-4 0.0000000 0.0000000 0.0000000 0.0000000 35061215970000 0.000
BURGE 3 0.0000000 0.0103186 0.0000000 0.0103186 35061212060000 0.547
BURGE SW SW NE 1-U 0.0928671 0.0799685 0.0928671 0.0799685 35061300350000 25.840
COBLENTZ 1 0.0078125 0.0068360 0.0078125 0.0068360 35077600790000 1.653
COBLENTZ 2-27 0.0090590 0.0079260 0.0090590 0.0079260 35077203770000 4.192
COBLENTZ 4 0.0000000 0.0007960 0.0000000 0.0007960 35077204280000 0.077
COBLENTZ 5 0.0082941 0.0072576 0.0082941 0.0072576 35077205150000 0.053
COBLENTZ 6 0.0000000 0.0000000 0.0000000 0.0000000 35077212540000 0.000
COLLINS 1 0.0175781 0.0153808 0.0175781 0.0153808 35077204030000 13.128
CRAFT 2-33 0.0000000 0.0117190 0.0000000 0.0117190 35061216260000 3.739
DOBY 2 2-A 22-A 0.0000000 0.0000000 0.0000000 0.0000000 35061212150000 0.000
DONNA JO 1 0.0019531 0.0017090 0.0019531 0.0017090 35061206390000 1.930
DONNA JO 2 0.0019801 0.0017327 0.0019531 0.0017091 35061208170000 0.656
DONNA JO 4 0.0039240 0.0034258 0.0039240 0.0034258 35061215940000 0.408
GLENN 1 0.0097895 0.0085658 0.0097895 0.0085658 35077300250000 7.847
GLENN 2 0.0098256 0.0085974 0.0098256 0.0085974 35077204140000 10.926
GLENN 2-5 0.0100829 0.0085580 0.0100829 0.0085580 35077209320000 3.865
GLENN 2-6 0.0099661 0.0087200 0.0099661 0.0087200 35077209970000 1.052
GLENN 2-7 0.0194478 0.0170168 0.0194478 0.0170168 35077210400000 0.794
GLENN 2-8 0.0194478 0.0170170 0.0194478 0.0170170 35077210650000 0.824
GLENN 2-9 0.0194478 0.0170170 0.0194478 0.0170170 35077210930000 3.110
GLENN 3 0.0194480 0.0170169 0.0194480 0.0170169 35077204410000 1.370
GLENN 4 0.0097895 0.0085658 0.0097895 0.0085658 35077207490000 28.953
GOVERNMENT 1A SE NW NW 0.0079780 0.0069810 0.0079780 0.0069810 35121201540000 2.505
GOVERNMENT 2 0.0092545 0.0080330 0.0092545 0.0080330 35121205650000 2.695
GOVERNMENT 3A-7U 0.0079780 0.0069810 0.0079780 0.0069810 35121214240000 1.063
GOVERNMENT 4-7 0.0092545 0.0080331 0.0092545 0.0080331 35121215960000 0.136
HIGHTOWER 1T 0.0937500 0.0820312 0.0937500 0.0820312 35061600790000 5.994
HIGHTOWER 2 0.0937500 0.0820312 0.0937500 0.0820312 35061207730000 10.538
HIGHTOWER 3 0.0937500 0.0820312 0.0937500 0.0820312 35061211280000 2.410
HIGHTOWER A-1 0.0000000 0.0000000 0.0000000 0.0000000 35061213390000 0.000
JAKE 1-20 0.0018312 0.0016022 0.0018312 0.0016022 35061215220000 0.212
JAKE 2-20 0.0018312 0.0016022 0.0018312 0.0016022 35061215260000 0.159
JAKE 3-20 0.0018312 0.0016022 0.0018312 0.0016022 35061215250000 0.462
JAKE 4-20 0.0018312 0.0016022 0.0018312 0.0016022 35061215210000 0.490
JOHNSON 1C SW NW SE 0.0139215 0.0121813 0.0139215 0.0121813 35061600510000 0.418
JOHNSON 2C 0.0198330 0.0173538 0.0198330 0.0173538 35061208640000 0.204
JONES-MILLER NE NW SE 1 0.0018312 0.0016023 0.0018312 0.0016023 35061600500000 0.464
JUDYANN 1-28 0.0024414 0.0021680 0.0024414 0.0021680 35061208480000 0.168
MCCRABB WILSON 1 0.0175781 0.0153808 0.0175781 0.0153808 35077200300000 13.492
MCCRABB WILSON 2 0.0205413 0.0179736 0.0205413 0.0179736 35077206250000 11.231
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- ----------------------------------------------------------------------------------------------------------------------------------
MCCRABB WILSON 3 06N-18E-09 RED OAK Proved Producing CHESAPEAKE OPERATING INC. LATIMER
MCMONIGLE 1 08N-21E-22 SPIRO & CROMWELL Proved Producing SAMSON RESOURCES COMPANY HASKELL
MIDALEY 5-4 07N-20E-04 ATOKA Proved Producing BRAVO NATURAL RESOURCES INC. HASKELL
MIDGLEY 1 07N-20E-04 SPIRO Proved Producing OXLEY PETROLEUM COMPANY HASKELL
MIDGLEY 4 07N-20E-04 ATOKA Proved Producing OXLEY PETROLEUM COMPANY HASKELL
RABON HEIRS 2 08N-19E-32 SPIRO Proved Producing AMOCO PRODUCTION COMPANY HASKELL
ROYE 1-30 08N-21E-30 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
ROYE 1-31 08N-21E-31 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
ROYE CLAUDE 2 08N-21E-30 SPIRO Proved Producing EXXON COMPANY U S A HASKELL
SHELTON 1-21H 08N-19E-21 HARTSHORNE Proved Producing EL PASO PRODUCTION COMPANY HASKELL
SHELTON 1-A 07N-19E-21 CROMWELL Proved Producing QUESTAR EXPL. & PROD. HASKELL
SHELTON 2 07N-19E-21 ATOKA Proved Producing OXLEY PETROLEUM COMPANY HASKELL
SHELTON R E 1 07N-19E-21 ATOKA Proved Producing QUESTAR EXPL. & PROD. HASKELL
SLOAN 1 07N-21E-06 SPIRO Proved Producing QUESTAR EXPL. & PROD. HASKELL
SLOAN UNIT 2 07N-21E-06 HARTSHORNE Proved Producing H S RESOURCES INCORPORATED HASKELL
SMITH-CARR SE SW NE 1 08N-19E-16 SPIRO Proved Producing XTO ENERGY INCORPORATED HASKELL
STONE 1-13 07N-19E-13 ATOKA Proved Producing MUSTANG FUEL CORPORATION HASKELL
STONE 1-13 07N-19E-13 ATOKA Proved Producing MUSTANG FUEL CORPORATION HASKELL
STROUD 1 09N-24E-24 SPIRO Proved Producing STEPHENS PRODUCTION COMPANY LE FLORE
TERRELL 1 08N-19E-36 SPIRO Proved Producing EXXON COMPANY U S A HASKELL
TERRELL 2 08N-19E-36 ATOKA Proved Producing EXXON COMPANY U S A HASKELL
TERRELL 4 08N-19E-36 SPIRO Proved Producing EXXON COMPANY U S A HASKELL
WIMBERLY 1 08N-19E-28 SPIRO Proved Producing EXXON MOBIL CORPORATION HASKELL
ABBATH NW NE SW 1 08N-21E-22 SPIRO Proved Shut-In QUALITY PRODUCTION SERVICE L L HASKELL
COBLENTZ 2-27 07N-19E-27 CROMWELL Proved Shut-In AMOCO PRODUCTION COMPANY LATIMER
DOBY 1 WM NW SE NW 07N-20E-03 SPIRO Proved Shut-In FAULCONER VERNON E INC. HASKELL
SHAW 1-36 06N-19E-36 ATOKA Proved Shut-In CHESAPEAKE OPERATING INC. LATIMER
SHELTON 1 07N-19E-21 SPIRO Proved Shut-In QUESTAR EXPL. & PROD. HASKELL
SHELTON 1 SE NW SE 07N-19E-21 SPIRO & CROMWELL Proved Shut-In QUESTAR EXPL. & PROD. HASKELL
SHELTON R E 1 07N-19E-21 CROMWELL Proved Shut-In ORYX ENERGY COMPANY HASKELL
SLOAN UNIT 2 07N-21E-06 SPIRO Proved Shut-In H S RESOURCES INCORPORATED HASKELL
SNOW C 1 07N-19E-13 SPIRO Proved Shut-In QUINTON RENTAL & REPAIR HASKELL
TERRELL 1 W J SW SE 08N-19E-36 CROMWELL Proved Shut-In EXXON COMPANY U S A HASKELL
- ----------------------------------------------------------------------------------------------------------------------------------
MILDER Field
- ----------------------------------------------------------------------------------------------------------------------------------
WILHITE 1-35 23N-26W-35 MORROW Proved Producing ZINKE & TRUMBO INCORPORATED ELLIS
- ----------------------------------------------------------------------------------------------------------------------------------
MOCANE-LAVERNE Field
- ----------------------------------------------------------------------------------------------------------------------------------
LEHMAN 01N-24ECM-31 MORROW UPPER Proved Producing WILLIFORD ENERGY COMPANY BEAVER
- ----------------------------------------------------------------------------------------------------------------------------------
MOORE WEST Field
- ----------------------------------------------------------------------------------------------------------------------------------
STOTTS 10N-03W-30 WILCOX & HUNTON Proved Producing WILSHIRE OIL COMPANY OF TEXAS CLEVELAND
PEGGY 10N-03W-30 OIL CREEK Proved Shut-In DEVON ENERGY CORPORATION CLEVELAND
- ----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ---------------------------------------------------------------------------------------------------------------------
MCCRABB WILSON 3 0.0240815 0.0209890 0.0240815 0.0209890 35077208180000 16.510
MCMONIGLE 1 0.0792955 0.0693836 0.0792955 0.0693836 35061207640000 30.511
MIDALEY 5-4 0.0000000 0.0000000 0.0000000 0.0000000 35061213550000 0.000
MIDGLEY 1 0.0496584 0.0386369 0.0496584 0.0386369 35061600120000 0.000
MIDGLEY 4 0.0535340 0.0416312 0.0535340 0.0416312 35061211570000 1.570
RABON HEIRS 2 0.0000000 0.0019191 0.0000000 0.0019191 35061203390000 0.494
ROYE 1-30 0.0321830 0.0277131 0.0321830 0.0277131 35061215520000 0.696
ROYE 1-31 0.0000000 0.0000000 0.0000000 0.0000000 35061216180000 0.000
ROYE CLAUDE 2 0.0321830 0.0277130 0.0321830 0.0277130 35061207750000 10.412
SHELTON 1-21H 0.0000000 0.0000000 0.0000000 0.0000000 35061217050000 0.000
SHELTON 1-A 0.0000000 0.0027161 0.0000000 0.0027161 35061210400000 1.169
SHELTON 2 0.0000000 0.0027161 0.0000000 0.0027161 35061207970000 1.272
SHELTON R E 1 0.0000000 0.0026855 0.0000000 0.0026855 35061300820000 0.000
SLOAN 1 0.0742003 0.0649250 0.0742003 0.0649250 35061300290000 30.610
SLOAN UNIT 2 0.1712158 0.1498140 0.1712158 0.1498140 35061207540000 47.436
SMITH-CARR SE SW NE 1 0.0107421 0.0093993 0.0107421 0.0093993 35061600470000 0.869
STONE 1-13 0.0000000 0.0009312 0.0000000 0.0009312 35061216620000 0.823
STONE 1-13 0.0000000 0.0000000 0.0000000 0.0000000 35061216620000 0.000
STROUD 1 0.0733875 0.0642104 0.0733875 0.0642104 35079201010000 1.613
TERRELL 1 0.0097025 0.0084733 0.0097025 0.0084733 35061600620000 0.537
TERRELL 2 0.0122863 0.0107505 0.0122863 0.0107505 35061204450000 0.380
TERRELL 4 0.0161119 0.0140979 0.0161119 0.0140979 35061208890000 1.473
WIMBERLY 1 0.0024415 0.0021363 0.0024415 0.0021363 35061000760000 0.136
ABBATH NW NE SW 1 0.0087891 0.0076904 0.0087891 0.0076904 35061301780000 0.000
COBLENTZ 2-27 0.0090590 0.0079260 0.0090590 0.0079260 35077203770000 0.000
DOBY 1 WM NW SE NW 0.0309943 0.0271200 0.0309943 0.0271200 35061600130000 0.000
SHAW 1-36 0.0000000 0.0216070 0.0000000 0.0216070 35077203010000 0.000
SHELTON 1 0.0000000 0.0026855 0.0000000 0.0026855 35061300820000 0.000
SHELTON 1 SE NW SE 0.0000000 0.0027161 0.0000000 0.0027161 35061300820000 0.000
SHELTON R E 1 0.0000000 0.0026855 0.0000000 0.0026855 35061300820000 0.000
SLOAN UNIT 2 0.1712158 0.1498140 0.1712158 0.1498140 35061207540000 0.000
SNOW C 1 0.0554066 0.0450179 0.0554066 0.0450179 35061301180000 0.000
TERRELL 1 W J SW SE 0.0097025 0.0084733 0.0097025 0.0084733 35061600620000 0.000
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
WILHITE 1-35 0.2500000 0.1927344 0.2500000 0.1927344 35045212250000 64.550
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
LEHMAN 0.1248940 0.0994468 0.1248940 0.0994468 35007235300000 40.567
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
STOTTS 1.0000000 0.8792970 1.0000000 0.8792970 35027354810000 462.305
PEGGY 0.0000000 0.0148450 0.0000000 0.0148450 35027202970000 0.000
- ----------------------------------------------------------------------------------------------------------------------
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
MUSTANG NORTH Field
- -----------------------------------------------------------------------------------------------------------------------------------
BREASHEARS 10N-05W-02 HUNTON Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
DICKSON 1-11 10N-05W-11 SKINNER Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
JENKINS 2 10N-05W-11 PRUE Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 14-7 10N-05W-14 HUNTON Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 14-8 10N-05W-14 HUNTON Proved Producing DOMINION OKLAHOMA TEXAS E&P CANADIAN
ROBBERSON 14-9 10N-05W-14 MAYES Proved Producing DOMINION OKLAHOMA TEXAS E&P CANADIAN
ROBBERSON 6-11 10N-05W-11 PRUE HUNTON & SKINNER Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
SMITH 1-3 10N-05W-03 RED FORK & HUNTON Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
WEST SUZANNE #1-13 10N-05W-13 SKINNER & HUNTON Proved Producing WILSHIRE OIL COMPANY OF TEXAS CANADIAN
BARBOUR 11N-05W-26 SKINNER Proved Shut-In RAVEN RESOURCES L L CANADIAN
ROBBERSON 1- 3 10N-05W-03 HUNTON Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 2- 3 10N-05W-03 HUNTON Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 2-11 10N-05W-11 HUNTON Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 5-11 10N-05W-11 HUNTON Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 14-2 10N-05W-14 HUNTON Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 14-4 10N-05W-14 HUNTON Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 3-11 (Skinner BP) 10N-05W-11 SKINNER Probable Behind Pipe WILSHIRE OIL COMPANY OF TEXAS CANADIAN
ROBBERSON 3-11 (BP Add) 10N-05W-11 SKINNER Possible Behind Pipe WILSHIRE OIL COMPANY OF TEXAS CANADIAN
- -----------------------------------------------------------------------------------------------------------------------------------
NE ANTLERS Field
- -----------------------------------------------------------------------------------------------------------------------------------
MORRIS 1-20 03S-17E-20 STANLEY Proved Shut-In ALPINE, INC. PUSHMATAHA
UNDEVELOPED LOCATION 1 03S-17E-17 STANLEY Probable Undeveloped ALPINE, INC. PUSHMATAHA
UNDEVELOPED LOCATION 2 03S-17E-16 STANLEY Probable Undeveloped ALPINE, INC. PUSHMATAHA
- -----------------------------------------------------------------------------------------------------------------------------------
NOBLE NORTHWEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
FOSTER PAUL 08N-02W-04 VIOLA LIME Proved Producing WILSHIRE OIL COMPANY OF TEXAS CLEVELAND
FOSTER PAUL (Hunton/Viola BP) 08N-02W-04 Hunton/Viola Probable Behind Pipe WILSHIRE OIL COMPANY OF TEXAS CLEVELAND
FOSTER PAUL (BP ADD'L) 08N-02W-04 Hunton/Viola Possible Behind Pipe WILSHIRE OIL COMPANY OF TEXAS CLEVELAND
- -----------------------------------------------------------------------------------------------------------------------------------
NOBSCOT NORTHWEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
MINTON 1 16N-15W-02 CHESTER Proved Producing KAISER FRANCIS DEWEY
- -----------------------------------------------------------------------------------------------------------------------------------
NORMAN Field
- -----------------------------------------------------------------------------------------------------------------------------------
POTTS 2-27 08N-02W-07 Proved Producing OKLAND OIL COMPANY CLEVELAND
- -----------------------------------------------------------------------------------------------------------------------------------
PAWNEE SOUTH Field
- -----------------------------------------------------------------------------------------------------------------------------------
FRED 21N-05E-20 RED FORK Proved Producing PERKINS ENERGY COMPANY PAWNEE
- -----------------------------------------------------------------------------------------------------------------------------------
PAYNE Field
- -----------------------------------------------------------------------------------------------------------------------------------
CLIMAX 05N-03W-18 DEESE Proved Producing SPARTAN RESOURCES MC CLAIN
- -----------------------------------------------------------------------------------------------------------------------------------
PINE HOLLOW SOUTH Field
- -----------------------------------------------------------------------------------------------------------------------------------
PATRICK 1 06N-14E-30 HARTSHORNE Proved Producing XAE CORPORATION PITTSBURG
- -----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
BREASHEARS 1.0000000 0.8750000 1.0000000 0.8750000 35017202490000 142.703
DICKSON 1-11 1.0000000 0.8125000 1.0000000 0.8125000 35017202780001 5.578
JENKINS 2 1.0000000 0.8750000 1.0000000 0.8750000 35017202400000 302.329
ROBBERSON 14-7 0.3618780 0.2836310 0.3618780 0.2836310 35017204900000 210.627
ROBBERSON 14-8 0.0000000 0.0054521 0.0000000 0.0054521 35017228440000 8.435
ROBBERSON 14-9 0.0000000 0.0054521 0.0000000 0.0054521 35017236310000 5.640
ROBBERSON 6-11 0.2000000 0.1625000 0.2000000 0.1625000 35017231370001 0.000
SMITH 1-3 1.0000000 0.8750000 1.0000000 0.8750000 35017202240002 250.215
WEST SUZANNE #1-13 0.7500000 0.6093750 0.7500000 0.6093750 35017203720001 84.204
BARBOUR 0.0000000 0.0094604 0.0000000 0.0094604 35017230170000 0.000
ROBBERSON 1- 3 0.7500000 0.6562500 0.7500000 0.6562500 35017202170000 0.000
ROBBERSON 2- 3 1.0000000 0.8750000 1.0000000 0.8750000 35017202520000 0.000
ROBBERSON 2-11 1.0000000 0.7500000 1.0000000 0.7500000 35017202620000 0.000
ROBBERSON 5-11 0.2000000 0.1625000 0.2000000 0.1625000 35017203650000 0.000
ROBBERSON 14-2 0.5659282 0.4650301 0.5659282 0.4650301 35017203360000 0.000
ROBBERSON 14-4 0.5613915 0.4613023 0.5613915 0.4613023 35017203700000 0.000
ROBBERSON 3-11 (Skinner BP) 0.2000000 0.1625000 0.2000000 0.1625000 35017204900000 0.000
ROBBERSON 3-11 (BP Add) 0.2000000 0.1625000 0.2000000 0.1625000 35017204900000 0.000
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
MORRIS 1-20 0.0250000 0.0195000 0.0200000 0.0156000 0.000
UNDEVELOPED LOCATION 1 0.0200000 0.0156000 0.0200000 0.0156000 0.000
UNDEVELOPED LOCATION 2 0.0200000 0.0156000 0.0200000 0.0156000 0.000
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
FOSTER PAUL 0.5645075 0.4831616 0.5645075 0.4831616 35027212740000 721.309
FOSTER PAUL (Hunton/Viola BP) 0.5645075 0.4831616 0.5645075 0.4831616 35027212740000 120.670
FOSTER PAUL (BP ADD'L) 0.5645075 0.4831616 0.5645075 0.4831616 35027212740000 120.670
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
MINTON 1 0.0642364 0.0521920 0.0642364 0.0521920 35043220640000 8.842
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
POTTS 2-27 0.1500000 0.1150227 0.1125000 0.0862670 250.442
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
FRED 0.2500000 0.2187500 0.2500000 0.2187500 35117208370000 6.219
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
CLIMAX 0.0000000 0.0150000 0.0000000 0.0150000 35087500920000 8.421
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PATRICK 1 0.0000000 0.0043365 0.0000000 0.0043365 35121600460000 3.039
- --------------------------------------------------------------------------------------------------------------------
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- ----------------------------------------------------------------------------------------------------------------------------------
POLO Field
- ----------------------------------------------------------------------------------------------------------------------------------
POLO NORTHEAST SKINNER UNIT 22N-02W-17 SKINNER Proved Producing J O C OPERATING INCORPORATED NOBLE
- ----------------------------------------------------------------------------------------------------------------------------------
PUTNAM Field
- ----------------------------------------------------------------------------------------------------------------------------------
MERCER 1 18N-17W-10 OSWEGO Proved Producing UNIT PETROLEUM CORPORATION DEWEY
MYERS RUTH NE 4 1 18N-17W-10 MORROW Proved Producing WILSHIRE OIL COMPANY OF TEXAS DEWEY
PORTER 32-1 19N-16W-32 CSTR-MRRW Proved Shut-In QUESTAR EXPL. & PROD. DEWEY
- ----------------------------------------------------------------------------------------------------------------------------------
REAMS NORTHWEST Field
- ----------------------------------------------------------------------------------------------------------------------------------
BENJAMIN 1 07N-14E-28 CROMWELL Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
CROWDER 1 07N-15E-18 CROMWELL Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
HAMILTON 1-13 07N-14E-13 CROMWELL Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
HAMILTON 2-13 07N-14E-13 CROMWELL Proved Producing BROWER OIL & GAS COMPANY INC. PITTSBURG
HAMILTON 3-13 07N-14E-13 CROMWELL Proved Producing XTO ENERGY INCORPORATED PITTSBURG
MCBROOM 1 07N-14E-24 CROMWELL Proved Producing CHAPARRAL ENERGY INCORPORATED PITTSBURG
MCBROOM 2-24 07N-14E-24 CROMWELL Proved Producing QUESTAR EXPL. & PROD. PITTSBURG
MURRIN 1 07N-14E-23 CROMWELL Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
MURRIN B&W #1-23 07N-14E-23 CROMWELL Proved Producing CHAPARRAL ENERGY INCORPORATED PITTSBURG
SANDERS 1-21 07N-14E-21 CROMWELL Proved Producing TUCKER RON & COMPANY PITTSBURG
SANDERS 1-22 07N-14E-22 CROMWELL Proved Producing CHAPARRAL ENERGY INCORPORATED PITTSBURG
SANDERS 2-22 07N-14E-22 CROMWELL Proved Producing CHAPARRAL ENERGY INCORPORATED PITTSBURG
WARD B&W 1-28 07N-14E-28 CROMWELL Proved Producing CHAPARRAL ENERGY INCORPORATED PITTSBURG
- ----------------------------------------------------------------------------------------------------------------------------------
REAMS SOUTHEAST Field
- ----------------------------------------------------------------------------------------------------------------------------------
BERRYMAN 1 06N-15E-02 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
HAZELWOOD 1 06N-15E-02 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
HELMS 1 06N-16E-06 BOOCH Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
HENSON 1-10 06N-15E-10 BARTLESVILLE Proved Producing WYTEX PRODUCTION CORPORATION PITTSBURG
LALMAN 1 06N-16E-06 HARTSHORNE Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
LALMAN 1-2 06N-15E-02 CRML-SPRO Proved Producing EBERLY & MEADE INCORPORATED PITTSBURG
LALMAN 2 06N-16E-06 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
LALMAN 3 06N-16E-06 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
LALMAN 4 06N-15E-01 HARTSHORNE Proved Producing SPARTAN RESOURCES PITTSBURG
LALMAN 5 06N-16E-07 HARTSHORNE Proved Producing QUENCH OIL & GAS INCORPORATED PITTSBURG
LALMAN 5 06N-15E-01 HARTSHORNE Proved Producing SPARTAN RESOURCES PITTSBURG
LALMAN 7 06N-15E-01 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
OLLER 1 06N-15E-11 HARTSHORNE Proved Producing SPARTAN RESOURCES PITTSBURG
P S C 1 07N-16E-31 HARTSHORNE Proved Producing QUENCH OIL & GAS INCORPORATED PITTSBURG
SCHUDEL 1 06N-15E-01 HARTSHORNE Proved Producing SPARTAN RESOURCES PITTSBURG
SILVA 1 06N-15E-11 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
SILVA 3 06N-15E-12 HARTSHORNE Proved Producing QUENCH OIL & GAS INCORPORATED PITTSBURG
WHITEACRE 1 06N-15E-12 HARTSHORNE Proved Producing WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
LALMAN 1 06N-16E-06 BOOCH Proved Shut-In EBERLY & MEADE INCORPORATED PITTSBURG
LALMAN 6 06N-15E-01 HARTSHORNE Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS PITTSBURG
- ----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
POLO NORTHEAST SKINNER UNIT 0.1094270 0.0891876 0.1094270 0.0891876 35103226610001 0.967
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
MERCER 1 0.2460940 0.2002110 0.2460940 0.2002110 35043224930000 86.340
MYERS RUTH NE 4 1 0.9843750 0.7985012 0.9843750 0.7985012 35043207260000 0.000
PORTER 32-1 0.0625000 0.0507813 0.0625000 0.0507813 35043210170000 0.000
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
BENJAMIN 1 0.8081000 0.7005721 0.8081000 0.7005721 35121203220000 20.644
CROWDER 1 0.2347766 0.1985455 0.2347766 0.1985455 35121200870000 33.346
HAMILTON 1-13 0.2584688 0.2261602 0.2584688 0.2261602 35121200910000 71.720
HAMILTON 2-13 0.0000000 0.0000000 0.0000000 0.0000000 35121213260000 2.514
HAMILTON 3-13 0.0000000 0.0323086 0.0000000 0.0323086 35121222660000 8.633
MCBROOM 1 0.4635780 0.3741672 0.4635780 0.3741672 35121201920000 4.938
MCBROOM 2-24 0.0000000 0.0264837 0.0000000 0.0264837 35121216230000 13.099
MURRIN 1 0.5533000 0.4601524 0.5533000 0.4601524 35121201610000 32.335
MURRIN B&W #1-23 0.0000000 0.0460183 0.0000000 0.0460183 35121217690000 19.796
SANDERS 1-21 0.0000000 0.0688187 0.0000000 0.0688187 35121203990000 13.466
SANDERS 1-22 0.0000000 0.0688190 0.0000000 0.0688190 35121202130000 46.672
SANDERS 2-22 0.0000000 0.0688239 0.0000000 0.0688239 35121220120000 0.000
WARD B&W 1-28 0.0000000 0.0944760 0.0000000 0.0944760 35121217750000 9.981
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
BERRYMAN 1 0.3333333 0.2552000 0.3333333 0.2552000 35121601180000 8.369
HAZELWOOD 1 0.5639586 0.4393254 0.5639586 0.4393254 35121205570000 467.101
HELMS 1 0.0414570 0.0317420 0.0414570 0.0317420 35121203550000 9.774
HENSON 1-10 0.0000000 0.0157878 0.0000000 0.0157878 35121206090000 0.000
LALMAN 1 0.0833334 0.0638021 0.0833334 0.0638021 35121203400000 19.382
LALMAN 1-2 0.0000000 0.0100989 0.0000000 0.0100989 35121206410000 1.896
LALMAN 2 0.3333333 0.2552000 0.3333333 0.2552000 35121600520000 47.029
LALMAN 3 0.3333333 0.2552000 0.3333333 0.2552000 35121601200000 0.373
LALMAN 4 0.3333333 0.2552000 0.3333333 0.2552000 35121601150000 127.133
LALMAN 5 0.0607910 0.0531920 0.0607910 0.0531920 35121202680000 4.888
LALMAN 5 0.3333333 0.2552000 0.3333333 0.2552000 35121601160000 81.191
LALMAN 7 0.3333333 0.2552000 0.3333333 0.2552000 35121600470000 1.060
OLLER 1 0.3333333 0.2552000 0.3333333 0.2552000 35121601190000 25.581
P S C 1 0.0625000 0.0478515 0.0625000 0.0478515 35121202520000 27.989
SCHUDEL 1 0.3333333 0.2552000 0.3333333 0.2552000 35121001640000 164.374
SILVA 1 0.5212710 0.4116542 0.5212710 0.4116542 35121205580000 299.795
SILVA 3 0.2028450 0.1708980 0.2028450 0.1708980 35121203380000 17.103
WHITEACRE 1 0.3123855 0.2631880 0.3123855 0.2631880 35121600480000 19.142
LALMAN 1 0.0833334 0.0638021 0.0833334 0.0638021 35121203400000 0.000
LALMAN 6 0.3333333 0.2552000 0.3333333 0.2552000 35121601170000 0.000
- -------------------------------------------------------------------------------------------------------------------
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
ROCKY POINT NORTHWEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
MOSES 08N-02W-13 BARTLESVILLE Proved Producing GREEN RIVER RESOURCES CLEVELAND
- -----------------------------------------------------------------------------------------------------------------------------------
SOONER TREND Field
- -----------------------------------------------------------------------------------------------------------------------------------
LUCILLE 16N-04W-33 PRUE Proved Producing WILSHIRE OIL COMPANY OF TEXAS LOGAN
SANDY 16N-04W-34 PRUE Proved Producing WILSHIRE OIL COMPANY OF TEXAS LOGAN
VILHAUER 18N-09W-22 CHESTER & INOLA Proved Producing WILSHIRE OIL COMPANY OF TEXAS KINGFISHER
LUCILLE Location 16N-04W-33 MISSISSIPPIAN Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LOGAN
SANDY Location 16N-04W-34 MISSISSIPPIAN Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LOGAN
- -----------------------------------------------------------------------------------------------------------------------------------
TUTTLE EAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
SCHROEDER 10N-05W-23 HUNTON Proved Producing DOMINION OKLAHOMA TEXAS E&P GRADY
- -----------------------------------------------------------------------------------------------------------------------------------
WATONGA-CHICKASHA TREND Field
- -----------------------------------------------------------------------------------------------------------------------------------
ICE B 1-6 14N-10W-06 MORROW Proved Producing MARATHON OIL COMPANY CANADIAN
PRICE 17-2 15N-11W-17 ATOKA Proved Producing BRIGHAM OIL & GAS L P BLAINE
- -----------------------------------------------------------------------------------------------------------------------------------
WILBURTON Field
- -----------------------------------------------------------------------------------------------------------------------------------
ADAMS C 1 06N-19E-33 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
ADAMS C 2 06N-19E-33 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
ARKANSAS KRAFT 1-25 06N-19E-25 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
ARKANSAS KRAFT 1-35 06N-19E-35 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
BENNETT STATE 1 NE NW SE 05N-18E-19 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BENNETT STATE 2-19 05N-18E-19 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BENNETT STATE 3-U 05N-18E-19 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BENNETT STATE 4-19 05N-18E-19 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BENNETT STATE 4-U 05N-18E-19 ATOKA Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BENNETT STATE 5 05N-18E-19 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BENNETT STATE 6 05N-18E-19 SIMPSON Proved Producing AMOCO PRODUCTION COMPANY LATIMER
BOWMAN P D 1 NE 05N-17E-29 SPIRO Proved Producing AMOCO PRODUCTION COMPANY PITTSBURG
BOWMAN P D 2 05N-17E-29 SPIRO Proved Producing AMOCO PRODUCTION COMPANY PITTSBURG
BOWMAN P D 4 05N-17E-29 SPIRO Proved Producing AMOCO PRODUCTION COMPANY PITTSBURG
BOWMAN P D 5-29 05N-17E-29 SPIRO Proved Producing AMOCO PRODUCTION COMPANY PITTSBURG
DEGNAN 1 06N-19E-28 SPIRO & CROMWELL Proved Producing SAMSON RESOURCES COMPANY LATIMER
DIAMOND 1 05N-19E-30 PANOLA Proved Producing QUESTAR EXPL. & PROD. LATIMER
DIAMOND 2 05N-19E-30 SPIRO Proved Producing KERR-MCGEE OIL & GAS ONSHORE LATIMER
DUNAGAN 1-A A SE 05N-17E-13 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
DUNAGAN 2-A 05N-17E-13 SPIRO & WAPANUCKA Proved Producing AMOCO PRODUCTION COMPANY LATIMER
DUNAGAN 3-A 05N-17E-13 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
FAZEKAS STEVE 2 05N-18E-17 ARBUCKLE Proved Producing AMOCO PRODUCTION COMPANY LATIMER
FAZEKAS STEVE 3-L 05N-18E-17 WAPANUCKA Proved Producing AMOCO PRODUCTION COMPANY LATIMER
FAZEKAS STEVE 4-L 05N-18E-17 CRML-SPRO-WPCK Proved Producing AMOCO PRODUCTION COMPANY LATIMER
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
MOSES 0.2000000 0.1538875 0.2000000 0.1538875 35027208410000 2.640
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
LUCILLE 0.3375000 0.2768555 0.3375000 0.2768555 35083300510000 43.887
SANDY 0.4500000 0.3691410 0.4500000 0.3691410 35083300020000 34.128
VILHAUER 0.4500000 0.3691410 0.4500000 0.3691410 35073356060000 63.116
LUCILLE Location 0.3375000 0.2768555 0.3375000 0.2768555 0.000
SANDY Location 0.4500000 0.3691410 0.4500000 0.3691410 0.000
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
SCHROEDER 0.1242714 0.0980678 0.1242714 0.0980678 35051204600000 60.765
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
ICE B 1-6 0.1994510 0.1474511 0.1994510 0.1474511 35017225430000 96.881
PRICE 17-2 0.0000000 0.0089533 0.0000000 0.0089533 35011228360000 9.998
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
ADAMS C 1 0.0625000 0.0549320 0.0625000 0.0549320 35077300520000 0.341
ADAMS C 2 0.0667014 0.0586070 0.0667014 0.0586070 35077203140000 35.848
ARKANSAS KRAFT 1-25 0.0000000 0.0234380 0.0000000 0.0234380 35077202920000 9.753
ARKANSAS KRAFT 1-35 0.0000000 0.0175780 0.0000000 0.0175780 35077202860000 11.851
BENNETT STATE 1 NE NW SE 0.0339570 0.0297120 0.0339570 0.0297120 35077600190000 87.579
BENNETT STATE 2-19 0.0339570 0.0297120 0.0339570 0.0297120 35077204810000 0.000
BENNETT STATE 3-U 0.0339570 0.0297120 0.0339570 0.0297120 35077205040000 59.547
BENNETT STATE 4-19 0.0406560 0.0355740 0.0406560 0.0355740 35077209210000 9.379
BENNETT STATE 4-U 0.0339570 0.0297120 0.0339570 0.0297120 35077209210000 23.588
BENNETT STATE 5 0.0000000 0.0000000 0.0000000 0.0000000 35077210960000 0.000
BENNETT STATE 6 0.0000000 0.0000000 0.0339568 0.0297122 35077213110000 180.753
BOWMAN P D 1 NE 0.0087891 0.0074234 0.0087891 0.0074234 35121200270000 8.334
BOWMAN P D 2 0.0124048 0.0105871 0.0124048 0.0105871 35121214150000 2.847
BOWMAN P D 4 0.0000000 0.0008317 0.0000000 0.0008317 35121218060000 1.683
BOWMAN P D 5-29 0.0000000 0.0008317 0.0000000 0.0012711 35121218510000 0.679
DEGNAN 1 0.0000000 0.0156250 0.0000000 0.0156250 35077203920000 1.251
DIAMOND 1 0.0624219 0.0546193 0.0624219 0.0546193 35077200170000 47.498
DIAMOND 2 0.0156055 0.0135484 0.0156055 0.0135484 35077204890000 27.712
DUNAGAN 1-A A SE 0.0032710 0.0028621 0.0032710 0.0028621 35077600000000 3.764
DUNAGAN 2-A 0.0060630 0.0049800 0.0060630 0.0049800 35077204930000 1.072
DUNAGAN 3-A 0.0033900 0.0029660 0.0033900 0.0029660 35077208910000 1.201
FAZEKAS STEVE 2 0.0019531 0.0016020 0.0019531 0.0016020 35077204320000 5.856
FAZEKAS STEVE 3-L 0.0019530 0.0016020 0.0019530 0.0016020 35077208200000 2.785
FAZEKAS STEVE 4-L 0.0019530 0.0016020 0.0019530 0.0016020 35077208620000 2.350
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
FAZEKAS STEVE 4-U 05N-18E-17 WAPANUCKA & CROMWELL Proved Producing VASTAR RESOURCES INCORPORATED LATIMER
FAZEKAS STEVE 6-17 05N-18E-17 BROMIDE Proved Producing AMOCO PRODUCTION COMPANY LATIMER
GOLDIE SIVIL 2-22C 05N-17E-22 SPIRO Proved Producing MARATHON OIL COMPANY LATIMER
GOLDIE SIVIL 2-22T 05N-17E-22 CROMWELL Proved Producing MARATHON OIL COMPANY LATIMER
MALITZ 1-25 05N-18E-25 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
MALITZ 1-25 05N-18E-25 PANOLA Proved Producing AMOCO PRODUCTION COMPANY LATIMER
MCKEOWN 1 05N-19E-20&29 PANOLA Proved Producing QUESTAR EXPL. & PROD. LATIMER
QUAID NE SE NW 1 05N-19E-07 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
RAY J A 150 NE OF C NW 05N-19E-20 SPIRO Proved Producing EXXON COMPANY U S A LATIMER
ROBINSON 1 SW NW 05N-18E-12 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
ROBINSON 2 05N-18E-12 ATOKA & SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
ROBINSON 3-12 05N-18E-12 FANSHAWE Proved Producing AMOCO PRODUCTION COMPANY LATIMER
SAMS 1-22 05N-17E-22 UNION VALLEY Proved Producing SAMSON RESOURCES COMPANY LATIMER
SHAW 1-36 06N-19E-36 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
SIVIL 3 05N-17E-22 WAPANUCKA Proved Producing MARATHON OIL COMPANY LATIMER
SIVIL 4-12 05N-17E-22 WAPANUCKA Proved Producing MARATHON OIL COMPANY LATIMER
UAS MCTIERNAN J W SE NW 1 05N-19E-06 SPIRO Proved Producing CHESAPEAKE OPERATING INC. LATIMER
VARNUM GUY 2-25 05N-18E-25 SPIRO Proved Producing SAMSON RESOURCES COMPANY LATIMER
VARNUM GUY 3-25 05N-18E-25 SPIRO Proved Producing SAMSON RESOURCES COMPANY LATIMER
VARNUM GUY 4-25 05N-18E-25 SPIRO Proved Producing AMOCO PRODUCTION COMPANY LATIMER
YOUNG 1 06N-19E-34 SPIRO Proved Producing WILLIFORD PETROLEUM LLC LATIMER
YOUNG 2-34 06N-19E-34 SPIRO Proved Producing QUINTON RENTAL & REPAIR LATIMER
YOUNG RANCH 1-27 06N-19E-27 SPIRO Proved Producing QUINTON RENTAL & REPAIR LATIMER
YOUNG RANCH 1-28 06N-19E-28 SPIRO Proved Producing SAMSON RESOURCES COMPANY LATIMER
YOUNG RANCH 2-27 06N-19E-27 SPIRO Proved Producing SAMSON RESOURCES COMPANY LATIMER
BENNETT STATE 2-19 05N-18E-19 ARBUCKLE Proved Shut-In VASTAR RESOURCES INCORPORATED LATIMER
BENNETT STATE 3 05N-18E-19 MRRW-SPRO Proved Shut-In VASTAR RESOURCES INCORPORATED LATIMER
BENNETT STATE 3-U 05N-18E-19 SPIRO Proved Shut-In ARCO PERMIAN LATIMER
FAZEKAS STEVE 3-U 05N-18E-17 SPIRO Proved Shut-In VASTAR RESOURCES INCORPORATED LATIMER
FAZEKAS STEVE 5 05N-18E-17 ATOKA Proved Shut-In AMOCO PRODUCTION COMPANY LATIMER
FEDERAL CHURCH 2 06N-18E-36 SPIRO Proved Shut-In JMC EXPLORATION INCORPORATED LATIMER
VARNUM GUY 1 C NE 05N-18E-25 SPIRO Proved Shut-In SAMSON RESOURCES COMPANY LATIMER
- -----------------------------------------------------------------------------------------------------------------------------------
PA Properties
INDIANA Field
- -----------------------------------------------------------------------------------------------------------------------------------
GLASSER #1 (PNG #5264) INDIANA Proved Producing DOMINION INDIANA
GLASSER #4 (PNG #5267) INDIANA Proved Producing DOMINION INDIANA
LIGHTCAP #5 (PNG #5286) INDIANA Proved Producing DOMINION INDIANA
- -----------------------------------------------------------------------------------------------------------------------------------
MAYFIELD Field
- -----------------------------------------------------------------------------------------------------------------------------------
BRAUGHLER #1 (PNG #5363) DERRY Proved Producing DOMINION WESTMORELAND
MORLET, G.E. #1 (PNG#5371 DERRY Proved Producing DOMINION WESTMORELAND
POUNDS #3 (PNG #5184) DERRY Proved Producing DOMINION WESTMORELAND
- -----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ---------------------------------------------------------------------------------------------------------------------
FAZEKAS STEVE 4-U 0.0019530 0.0016020 0.0019530 0.0016020 35077208620000 0.000
FAZEKAS STEVE 6-17 0.0000000 0.0000286 0.0019530 0.0016020 35077212040000 4.225
GOLDIE SIVIL 2-22C 0.0117190 0.0102540 0.0117190 0.0102540 35077208340000 6.441
GOLDIE SIVIL 2-22T 0.0117190 0.0102540 0.0117190 0.0102540 35077208340000 6.049
MALITZ 1-25 0.0000000 0.0016403 0.0000000 0.0016403 35077203480000 9.345
MALITZ 1-25 0.0000000 0.0016403 0.0048828 0.0042725 35077203480000 3.761
MCKEOWN 1 0.0000000 0.0005792 0.0000000 0.0005792 35077201110000 0.111
QUAID NE SE NW 1 0.0393322 0.0343768 0.0393322 0.0343768 35077300010000 21.103
RAY J A 150 NE OF C NW 0.0138887 0.0114820 0.0138887 0.0114820 35077300070000 15.490
ROBINSON 1 SW NW 0.0052110 0.0045596 0.0052110 0.0045596 35077600120000 2.632
ROBINSON 2 0.0053393 0.0046722 0.0053393 0.0046722 35077209560000 0.112
ROBINSON 3-12 0.0052083 0.0045600 0.0052083 0.0045600 35077210050000 0.035
SAMS 1-22 0.0398631 0.0337281 0.0398631 0.0337281 35077203520000 12.279
SHAW 1-36 0.0000000 0.0216070 0.0000000 0.0216070 35077203010000 16.605
SIVIL 3 0.0121940 0.0106570 0.0121940 0.0106570 35077209930000 7.012
SIVIL 4-12 0.0172267 0.0148579 0.0172267 0.0148579 35077210530000 12.909
UAS MCTIERNAN J W SE NW 1 0.0040059 0.0035052 0.0040059 0.0035052 35077301460000 2.874
VARNUM GUY 2-25 0.0000000 0.0020408 0.0000000 0.0020408 35077211050000 10.245
VARNUM GUY 3-25 0.0000000 0.0020408 0.0000000 0.0020408 35077211180000 13.079
VARNUM GUY 4-25 0.0000000 0.0020408 0.0000000 0.0020408 35077211950000 5.513
YOUNG 1 0.0000000 0.0136719 0.0000000 0.0136719 35077300060000 1.960
YOUNG 2-34 0.0000000 0.0324707 0.0000000 0.0324707 35077202630000 0.000
YOUNG RANCH 1-27 0.3911695 0.3578983 0.3911695 0.3578983 35077300080000 56.637
YOUNG RANCH 1-28 0.2580645 0.2414314 0.2580645 0.2414314 35077300240000 59.872
YOUNG RANCH 2-27 0.2500000 0.2343750 0.2500000 0.2343750 35077203530000 666.135
BENNETT STATE 2-19 0.0339570 0.0297120 0.0339570 0.0297120 35077204810000 0.000
BENNETT STATE 3 0.0339570 0.0297120 0.0339570 0.0297120 35077205040000 0.000
BENNETT STATE 3-U 0.0339570 0.0297120 0.0339570 0.0297120 35077205040000 0.000
FAZEKAS STEVE 3-U 0.0019530 0.0016020 0.0019530 0.0016020 35077208200000 0.000
FAZEKAS STEVE 5 0.0019530 0.0016020 0.0019530 0.0016020 35077209010000 2.037
FEDERAL CHURCH 2 0.0071800 0.0062822 0.0071800 0.0062822 35077204990000 0.000
VARNUM GUY 1 C NE 0.0195312 0.0166893 0.0195312 0.0166893 35077300270000 38.876
- -------------------------------------------------------------------------------------------------------------------
PA Properties
- -------------------------------------------------------------------------------------------------------------------
GLASSER #1 (PNG #5264) 0.0391477 0.0342542 0.0391477 0.0342542 370632413 0.801
GLASSER #4 (PNG #5267) 0.0391477 0.0342542 0.0391477 0.0342542 370632413 0.389
LIGHTCAP #5 (PNG #5286) 0.0391477 0.0342542 0.0391477 0.0342542 370632422 2.645
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
BRAUGHLER #1 (PNG #5363) 0.0493132 0.0419162 0.0493132 0.0419162 371292141 1.609
MORLET, G.E. #1 (PNG#5371 0.0493132 0.0419162 0.0493132 0.0419162 371292146 2.421
POUNDS #3 (PNG #5184) 0.0391477 0.0342542 0.0391477 0.0342542 371292121 1.367
- -------------------------------------------------------------------------------------------------------------------
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
VARIOUS Field
- -----------------------------------------------------------------------------------------------------------------------------------
1975 PROGRAM HOMER CITY Proved Producing DOMINION INDIANA
1976 PROGRAM VARIOUS Proved Producing DOMINION INDIANA/WESTMORELAND
1977 PROGRAM VARIOUS Proved Producing DOMINION INDIANA/WESTMORELAND
1978 PROGRAM VARIOUS Proved Producing DOMINION VARIOUS
1979 PROGRAM VARIOUS Proved Producing DOMINION VARIOUS
- -----------------------------------------------------------------------------------------------------------------------------------
WHITESBURG Field
- -----------------------------------------------------------------------------------------------------------------------------------
ALCORN, J.N. #1 (PNG#5375 DERRY Proved Producing DOMINION WESTMORELAND
WILLARD #3 (PNG #5370) DERRY Proved Producing DOMINION WESTMORELAND
- -----------------------------------------------------------------------------------------------------------------------------------
TX Properties
BROOKS Field
- -----------------------------------------------------------------------------------------------------------------------------------
BROOKS L D GAS UNIT 1 H&TCRR-Blk 03-15 CANYON-GAS Proved Producing TXP INCORPORATED IRION
BROOKS #2 H&TCRR-Blk 03-21 UNKNOWN Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS IRION
BROOKS D H&TCRR-Blk 03-15 LEONARD Proved Shut-In GRACE PETROLEUM CORPORATION IRION
- -----------------------------------------------------------------------------------------------------------------------------------
FARNSWORTH-CONNER Field
- -----------------------------------------------------------------------------------------------------------------------------------
EDWARDS 3 H&GN--Sec 12&pt 5 DES MOINES Proved Producing BRACKEN OPERATING L L C OCHILTREE
EDWARDS A 4 H&GN-958-E2Sec12& DES MOINES Proved Producing BRACKEN OPERATING L L C OCHILTREE
EDWARDS B 5 -Blk 12-PtSec 12 DES MOINES Proved Producing BRACKEN OPERATING L L C OCHILTREE
- -----------------------------------------------------------------------------------------------------------------------------------
GLAZIER Field
- -----------------------------------------------------------------------------------------------------------------------------------
URSCHEL L B 1 Johnson JF, Abs 1325-Blk 42-Sec 64 MORROWAN UPPER Proved Producing CHAPARRAL ENERGY L L HEMPHILL
URSCHEL L B 1 Johnson JF, Abs 1325-Blk 42-Sec 64 MORROWAN UPPER Proved Shut-In CHAPARRAL ENERGY L L HEMPHILL
- -----------------------------------------------------------------------------------------------------------------------------------
GLAZIER NORTHWEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
URSCHEL L B 1 Johnson JF, Abs 1325-Blk 42-Sec 64 MORROW UPPER Proved Shut-In SLAWSON DONALD C HEMPHILL
- -----------------------------------------------------------------------------------------------------------------------------------
HELUMA Field
- -----------------------------------------------------------------------------------------------------------------------------------
JACOBS LIVESTOCK B 1 Patterson W-A1270-Sec 98 DEVONIAN Proved Producing WILSHIRE OIL COMPANY OF TEXAS UPTON
JACOBS LIVESTOCK C 1 Patterson W-A1270-Sec 98 ELLENBURGER Proved Producing ENDEAVOR ENERGY RESOURCES UPTON
JACOBS LIVESTOCK 3498 Patterson Wm-A1270-Sec 98 ELLENBURGER Proved Shut-In ENDEAVOR ENERGY RESOURCES UPTON
JACOBS LIVESTOCK 3498 Patterson Wm-A1270-Sec 98 DEVONIAN Proved Shut-In TXO PRODUCTION CORPORATION UPTON
JACOBS LIVESTOCK MULTI Patterson Wm-A1270-Sec 98 ELLENBURGER Proved Shut-In WILSHIRE OIL COMPANY OF TEXAS UPTON
JACOBS LIVESTOCK SUNILAND lL Patterson W-A1270-Sec 98 DEVONIAN Proved Shut-In EP OPERATING COMPANY UPTON
- -----------------------------------------------------------------------------------------------------------------------------------
HELUMA EAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
JACOBS LIVESTOCK C 2 Patterson W-A1270-Sec 98 DEVONIAN Proved Producing ENDEAVOR ENERGY RESOURCES UPTON
JACOBS LIVESTOCK D 1 Patterson W-A1270-Sec 98 DEVONIAN Proved Producing WILSHIRE OIL COMPANY OF TEXAS UPTON
- -----------------------------------------------------------------------------------------------------------------------------------
HELUMA SOUTHEAST Field
- -----------------------------------------------------------------------------------------------------------------------------------
GUTHRIE-DUNBAR A UNIT 1 Smith Mary-Blk 2-Sec 08 DEVONIAN Proved Producing SAMSON LONE STAR LP UPTON
GUTHRIE-DUNBAR UNIT 1 Smith Mary-Blk 2-Sec 08 DEVONIAN Proved Producing SAMSON LONE STAR LP UPTON
- -----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
1975 PROGRAM 0.5000000 0.4375000 0.5000000 0.4375000 157.781
1976 PROGRAM 0.5000000 0.4375000 0.5000000 0.4375000 136.369
1977 PROGRAM 0.5000000 0.4375000 0.5000000 0.4375000 546.934
1978 PROGRAM 0.3208828 0.2807725 0.3208828 0.2807725 1380.719
1979 PROGRAM 0.1890000 0.1653750 0.1890000 0.1653750 191.170
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
ALCORN, J.N. #1 (PNG#5375 0.0493132 0.0419162 0.0493132 0.0419162 371292150 0.000
WILLARD #3 (PNG #5370) 0.0391477 0.0342542 0.0391477 0.0342542 371292144 0.161
- ----------------------------------------------------------------------------------------------------------------
TX Properties
- ----------------------------------------------------------------------------------------------------------------
BROOKS L D GAS UNIT 1 0.0000000 0.0042190 0.0000000 0.0042190 42235005360000 0.569
BROOKS #2 0.0000000 0.0112490 0.0000000 0.0112490 42235005930000 0.000
BROOKS D 0.0000000 0.0112500 0.0000000 0.0112500 42235005360000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
EDWARDS 3 0.5000000 0.4000000 0.5000000 0.4000000 42357321770000 74.686
EDWARDS A 4 0.2500000 0.1875000 0.2500000 0.1875000 42357322240000 1.780
EDWARDS B 5 0.0703126 0.0562504 0.0703126 0.0562504 42357323070000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
URSCHEL L B 1 0.1500000 0.1095000 0.1500000 0.1095000 42211317170000 0.026
URSCHEL L B 1 0.1500000 0.1095000 0.1500000 0.1095000 42211317170000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
URSCHEL L B 1 0.1500000 0.1095000 0.1500000 0.1095000 42211317170000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
JACOBS LIVESTOCK B 1 1.0000000 0.8333000 1.0000000 0.8333000 42461320120000 61.365
JACOBS LIVESTOCK C 1 0.1666600 0.1458275 0.1666600 0.1458275 42461301550000 41.115
JACOBS LIVESTOCK 3498 0.0000000 0.0546853 0.0000000 0.0546853 42461034520000 0.000
JACOBS LIVESTOCK 3498 0.0000000 0.0546853 0.0000000 0.0546853 42461034520000 0.000
JACOBS LIVESTOCK MULTI 0.0000000 0.0546853 0.0000000 0.0546853 42461034520000 0.000
JACOBS LIVESTOCK SUNILAND 1 L 0.0000000 0.0546853 0.0000000 0.0546853 42461043010000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
JACOBS LIVESTOCK C 2 0.4999800 0.4374825 0.4999800 0.4374825 42461301550000 407.675
JACOBS LIVESTOCK D 1 0.6666400 0.5833100 0.6666400 0.5833100 42461312620000 113.424
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
GUTHRIE-DUNBAR A UNIT 1 0.0658181 0.0474397 0.0658181 0.0474397 42461322410000 3.616
GUTHRIE-DUNBAR UNIT 1 0.0650000 0.0468000 0.0650000 0.0468000 42461319910000 3.724
- ----------------------------------------------------------------------------------------------------------------
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
KIOWA CREEK Field
- -----------------------------------------------------------------------------------------------------------------------------------
SCHOENHALS 1937 H&TCRR-Blk 43-Sec 937 MARMATON Proved Producing H & L OPERATING COMPANY LLP OCHILTREE
SCHOENHALS 1937 H&TCRR-Blk 43-Sec 937 MORROWAN UPPER Proved Shut-In SAMSON RESOURCES COMPANY OCHILTREE
- -----------------------------------------------------------------------------------------------------------------------------------
PERRYTON WEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
LANCE 1011 H&GN-112- MORROWAN MIDDLE Proved Producing BRACKEN OPERATING L L C OCHILTREE
- -----------------------------------------------------------------------------------------------------------------------------------
SELL Field
- -----------------------------------------------------------------------------------------------------------------------------------
SELL UNIT 1005 Multiple-Sell Unit-- MORROW UPPER Proved Producing WILLIFORD ENERGY COMPANY LIPSCOMB
- -----------------------------------------------------------------------------------------------------------------------------------
SPRABERRY Field
- -----------------------------------------------------------------------------------------------------------------------------------
NORTH PEMBROOK SPRABERRY UNIT EL&RR-Blk D-Sec 21 TREND AREA Proved Producing PIONEER NATURAL RESOURCES USA UPTON
- -----------------------------------------------------------------------------------------------------------------------------------
UT Properties
CANE CREEK Field
- -----------------------------------------------------------------------------------------------------------------------------------
CHEVRON FEDERAL #1 29S-23E SLM-24 CANE CREEK Proved Producing MILLER, DYER SAN JUAN
- -----------------------------------------------------------------------------------------------------------------------------------
WY Properties
NITCHIE GULCH Field
- -----------------------------------------------------------------------------------------------------------------------------------
FED 14-08-0001-8247 1-17 23N-103W-17 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 11-9 23N-103W-09 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 4-17 23N-103W-17 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 4-17 23N-103W-17 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 6-7 23N-103W-07 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 7-8 23N-103W-08 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 8-18 23N-103W-18 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
NICHIE GULCH STATE UNIT 17-16 23N-103W-16 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
NICHIE GULCH STATE UNIT 17-16 23N-103W-16 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH FEDERAL 16 23N-103W-28 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH FEDERAL 16 23N-103W-28 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 3-21 23N-103W-21 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 13-20 23N-103W-20 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 18 23N-103W-29 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 19-7 23N-103W-07 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 21-21D 23N-103W-21 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 21-21F 23N-103W-21 FRONTIER Proved Producing BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 22-8 23N-103W-07 DAKOTA Proved Producing BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 1-17 23N-103W-17 FRONTIER Proved Shut-In BERCO RESOURCES SWEETWATER
FED 14-08-0001-8247 5-19 23N-103W-19 FRONTIER Proved Shut-In PACIFIC ENTERPRISES ROYALTY SWEETWATER
FED 14-08-0001-8247 7-8 23N-103W-08 DAKOTA Proved Shut-In HUNT OIL COMPANY SWEETWATER
NITCHIE GULCH UNIT 2-20 23N-103W-20 DAKOTA Proved Shut-In PACIFIC ENTERPRISES ROYALTY SWEETWATER
NITCHIE GULCH UNIT 2-20 23N-103W-20 FRONTIER Proved Shut-In PACIFIC ENTERPRISES ROYALTY SWEETWATER
NITCHIE GULCH UNIT 12-18 23N-103W-18 FRONTIER Proved Shut-In BERCO RESOURCES SWEETWATER
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- -------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
SCHOENHALS 1937 0.1350000 0.1012500 0.1350000 0.1012500 42357315650000 2.504
SCHOENHALS 1937 0.0000000 0.0038218 0.0000000 0.0038218 42357317230000 0.000
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
LANCE 1011 0.0703125 0.0527344 0.0703125 0.0527344 42357323400000 7.492
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
SELL UNIT 1005 0.0801272 0.0617609 0.0801272 0.0617609 42295322670000 232.197
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
NORTH PEMBROOK SPRABERRY UNIT 0.0099522 0.0087080 0.0099522 0.0087080 42461016890000 451.713
- -----------------------------------------------------------------------------------------------------------------
UT Properties
- -----------------------------------------------------------------------------------------------------------------
CHEVRON FEDERAL #1 0.0600000 0.0561427 0.0800000 0.0723927 0.000
- -----------------------------------------------------------------------------------------------------------------
WY Properties
- -----------------------------------------------------------------------------------------------------------------
FED 14-08-0001-8247 1-17 0.0345460 0.0296601 0.0345460 0.0296601 49037059110000 10.268
FED 14-08-0001-8247 11-9 0.0283079 0.0243040 0.0283079 0.0243040 49037200980000 9.227
FED 14-08-0001-8247 4-17 0.0283079 0.0243040 0.0283079 0.0243040 49037059140000 26.440
FED 14-08-0001-8247 4-17 0.0345460 0.0296601 0.0345460 0.0296601 49037059140000 0.000
FED 14-08-0001-8247 6-7 0.0283079 0.0243040 0.0283079 0.0243040 49037059210000 30.138
FED 14-08-0001-8247 7-8 0.0283079 0.0243040 0.0283079 0.0243040 49037063460000 0.000
FED 14-08-0001-8247 8-18 0.0283079 0.0243040 0.0283079 0.0243040 49037063600000 24.252
NICHIE GULCH STATE UNIT 17-16 0.0283079 0.0243040 0.0283079 0.0243040 49037224210000 0.000
NICHIE GULCH STATE UNIT 17-16 0.0345460 0.0296594 0.0345460 0.0296594 49037224210000 53.097
NITCHIE GULCH FEDERAL 16 0.0345460 0.0296601 0.0345460 0.0296601 49037224150000 0.572
NITCHIE GULCH FEDERAL 16 0.0283079 0.0243040 0.0283079 0.0243040 49037224150000 1.100
NITCHIE GULCH UNIT 3-21 0.0345446 0.0296601 0.0345446 0.0296601 49037200320000 3.566
NITCHIE GULCH UNIT 13-20 0.0283079 0.0243040 0.0283079 0.0243040 49037222710000 9.188
NITCHIE GULCH UNIT 18 0.0283079 0.0243040 0.0283079 0.0243040 49037224440000 8.967
NITCHIE GULCH UNIT 19-7 0.0345460 0.0296601 0.0345460 0.0296601 49037225900000 9.384
NITCHIE GULCH UNIT 21-21D 0.0345460 0.0296601 0.0345460 0.0296601 49037226650000 5.623
NITCHIE GULCH UNIT 21-21F 0.0331305 0.0283435 0.0331305 0.0283435 49037226650000 0.104
NITCHIE GULCH UNIT 22-8 0.0347273 0.0298150 0.0347273 0.0298150 49037226940000 25.883
FED 14-08-0001-8247 1-17 0.0283079 0.0243040 0.0283079 0.0243040 49037059110000 0.000
FED 14-08-0001-8247 5-19 0.0283079 0.0243040 0.0283079 0.0243040 49037059070000 0.000
FED 14-08-0001-8247 7-8 0.0283079 0.0243040 0.0283079 0.0243040 49037063460000 0.000
NITCHIE GULCH UNIT 2-20 0.0283079 0.0243040 0.0283079 0.0243040 49037059050000 0.000
NITCHIE GULCH UNIT 2-20 0.0283079 0.0243040 0.0283079 0.0243040 49037059050000 0.000
NITCHIE GULCH UNIT 12-18 0.0283079 0.0243040 0.0283079 0.0243040 49037222720000 0.000
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
NITCHIE GULCH UNIT 14-7 23N-103W-07 FRONTIER Proved Shut-In BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 15-8X 23N-103W-08 FRONTIER Proved Shut-In BERCO RESOURCES SWEETWATER
NITCHIE GULCH UNIT 20-19 23N-103W-19 FRONTIER Proved Shut-In BERCO RESOURCES SWEETWATER
- -----------------------------------------------------------------------------------------------------------------------------------
NITCHIE GULCH UNIT Field
- -----------------------------------------------------------------------------------------------------------------------------------
FED 14-08-0001-8247 23N-103W-20 DAKOTA Proved Shut-In HUNT OIL COMPANY SWEETWATER
- -----------------------------------------------------------------------------------------------------------------------------------
PINE CANYON Field
- -----------------------------------------------------------------------------------------------------------------------------------
FEDERAL 1-28 23N-103W-28 FRONTIER Proved Producing SAMSON RESOURCES COMPANY SWEETWATER
FEDERAL 1-28 23N-103W-28 DAKOTA Proved Producing XTO ENERGY INCORPORATED SWEETWATER
PINE CANYON UNIT 1-32 23N-103W-32 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 3-32 23N-103W-32 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 3-32 23N-103W-32 FRONTIER Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 6-32 23N-103W-32 FRONTIER Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 6-32 23N-103W-32 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 8-28 23N-103W-28 FRONTIER Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 8-28 23N-103W-28 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 9-32 23N-103W-32 FRONTIER Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 10-29 23N-103W-29 FRONTIER Proved Producing ENERVEST OPERATING L L C SWEETWATER
PINE CANYON UNIT 10-29 23N-103W-29 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
U P R R 1-33 23N-103W-33 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
U P R R 3-33 23N-103W-33 DAKOTA Proved Producing ENERVEST OPERATING L L C SWEETWATER
U P R R 3-33 23N-103W-33 FRONTIER Proved Producing ENERVEST OPERATING L L C SWEETWATER
WEST PINE CANYON 10 22N-103W-05 DAKOTA Proved Producing SAMSON RESOURCES COMPANY SWEETWATER
PINE CANYON UNIT 4-29 23N-103W-29 DAKOTA Proved Shut-In XTO ENERGY INCORPORATED SWEETWATER
PINE CANYON UNIT 9-32 23N-103W-32 DAKOTA Proved Shut-In XTO ENERGY INCORPORATED SWEETWATER
- -----------------------------------------------------------------------------------------------------------------------------------
SEMLEK Field
- -----------------------------------------------------------------------------------------------------------------------------------
SEMLEK WEST UNIT 28-7 52N-68W-28 MINNELUSA Proved Shut-In CITATION OIL & GAS CORPORATION CROOK
- -----------------------------------------------------------------------------------------------------------------------------------
SEMLEK WEST Field
- -----------------------------------------------------------------------------------------------------------------------------------
DUNNING GOVT 28-1 52N-68W-28 MINNELUSA Proved Producing CITATION OIL & GAS CORPORATION CROOK
SEMLEK WEST UNIT 28-4B 52N-68W-28 MINNELUSA Proved Producing CITATION OIL & GAS CORPORATION CROOK
DUNNING GOVT 28-3 52N-68W-28 MINNELUSA Proved Shut-In CITATION OIL & GAS CORPORATION CROOK
SEMLEK WEST UNIT 28-2 52N-68W-28 MINNELUSA Proved Shut-In CITATION OIL & GAS CORPORATION CROOK
SEMLEK WEST UNIT 28-8 52N-68W-28 MINNELUSA Proved Shut-In HUNT OIL COMPANY CROOK
SEMLEK WEST UNIT 28-9 52N-68W-28 MINNELUSA Proved Shut-In CITATION OIL & GAS CORPORATION CROOK
- -----------------------------------------------------------------------------------------------------------------------------------
SILO Field
- -----------------------------------------------------------------------------------------------------------------------------------
LEROY 41-33 1-H 16N-64W-33 NIOBRARA Proved Producing PALADIN ENERGY PARTNERS LLC LARAMIE
MCCONNAUGHEY 1-23H 16N-65W-23 NIOBRARA C Proved Producing WILSHIRE OIL COMPANY OF TEXAS LARAMIE
MCCONNAUGHEY 1-26H 16N-65W-26 NIOBRARA Proved Producing WILSHIRE OIL COMPANY OF TEXAS LARAMIE
MCCONNAUGHEY 1-27H 16N-65W-27 NIOBRARA Proved Producing PALADIN ENERGY PARTNERS LLC LARAMIE
MESSENGER 1-3H 15N-65W-03 NIOBRARA Proved Producing WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ------------------------------------------------------------------------------------------------------------------
NITCHIE GULCH UNIT 14-7 0.0283079 0.0243040 0.0283079 0.0243040 49037223380000 0.000
NITCHIE GULCH UNIT 15-8X 0.0283079 0.0243040 0.0283079 0.0243040 49037223540000 0.000
NITCHIE GULCH UNIT 20-19 0.0283079 0.0243040 0.0283079 0.0243040 49037226160000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
FED 14-08-0001-8247 0.0283079 0.0243040 0.0283079 0.0243040 49037225900000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
FEDERAL 1-28 0.0077897 0.0066730 0.0077897 0.0066730 49037226130000 0.513
FEDERAL 1-28 0.0094130 0.0080630 0.0094130 0.0080630 49037226130000 1.222
PINE CANYON UNIT 1-32 0.0813216 0.0703432 0.0813216 0.0703432 49037058980000 4.219
PINE CANYON UNIT 3-32 0.0813216 0.0703432 0.0813216 0.0703432 49037242790000 1.316
PINE CANYON UNIT 3-32 0.0889520 0.0769435 0.0889520 0.0769435 49037242790000 1.675
PINE CANYON UNIT 6-32 0.0889520 0.0769435 0.0889520 0.0769435 49037225750000 12.240
PINE CANYON UNIT 6-32 0.0813216 0.0703432 0.0813216 0.0703432 49037225750000 0.980
PINE CANYON UNIT 8-28 0.0902708 0.0780843 0.0902708 0.0780843 49037225850000 0.000
PINE CANYON UNIT 8-28 0.0813216 0.0703432 0.0813216 0.0703432 49037225850000 15.913
PINE CANYON UNIT 9-32 0.0813216 0.0703432 0.0813216 0.0703432 49037226050000 16.255
PINE CANYON UNIT 10-29 0.0902708 0.0780843 0.0902708 0.0780843 49037226060000 0.000
PINE CANYON UNIT 10-29 0.0822610 0.0711619 0.0822610 0.0711619 49037226060000 7.599
U P R R 1-33 0.0406608 0.0351716 0.0406608 0.0351716 49037225080000 9.825
U P R R 3-33 0.0406608 0.0351716 0.0406608 0.0351716 49037226120000 15.211
U P R R 3-33 0.0406608 0.0351716 0.0406608 0.0351716 49037226120000 0.000
WEST PINE CANYON 10 0.0305480 0.0264237 0.0305480 0.0264237 49037224740000 0.000
PINE CANYON UNIT 4-29 0.1739067 0.1504293 0.1739067 0.1504293 49037224280000 0.000
PINE CANYON UNIT 9-32 0.0824249 0.0712955 0.0824249 0.0712955 49037226050000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
SEMLEK WEST UNIT 28-7 0.0396736 0.0375697 0.0396736 0.0375697 49011204210000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
DUNNING GOVT 28-1 0.1001200 0.0866038 0.1001200 0.0866038 49011058990000 24.021
SEMLEK WEST UNIT 28-4B 0.0396736 0.0375697 0.0396736 0.0375697 49011214510000 14.284
DUNNING GOVT 28-3 0.0396736 0.0375697 0.0396736 0.0375697 49011059120000 0.000
SEMLEK WEST UNIT 28-2 0.0396736 0.0375697 0.0396736 0.0375697 49011059210000 0.000
SEMLEK WEST UNIT 28-8 0.0392632 0.0000000 0.0392632 0.0000000 49011205820000 0.000
SEMLEK WEST UNIT 28-9 0.0396736 0.0375697 0.0396736 0.0375697 49011218320000 0.000
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
LEROY 41-33 1-H 0.2500000 0.2125000 0.2500000 0.2125000 49021204630000 18.024
MCCONNAUGHEY 1-23H 0.5000000 0.4025625 0.5000000 0.4025625 49021204670000 24.388
MCCONNAUGHEY 1-26H 0.5000000 0.4013750 0.5000000 0.4013750 49021204530000 79.206
MCCONNAUGHEY 1-27H 0.1250000 0.0995625 0.1250000 0.0995625 49021204450000 33.913
MESSENGER 1-3H 0.3205326 0.2644395 0.3205326 0.2644395 49021205170000 53.473
SCHEDULE A - Land Schedule
Lease Name Twn-Rng-Sec Reservoir Status Operator County
- -----------------------------------------------------------------------------------------------------------------------------------
SUNLIGHT 4-20 1 15N-64W-20 NIOBRARA Proved Producing PALADIN ENERGY PARTNERS LLC LARAMIE
STATE 101-H 15N-64W-10 NIOBRARA Proved Shut-In PALADIN ENERGY PARTNERS LLC LARAMIE
Loc 13 1-H 16N-65W-13 NIOBRARA C Proved Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Loc 14 1-H 16N-65W-14 NIOBRARA C Proved Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
MCCONNAUGHEY 1-26H (BP) 16N-65W-26 NIOBRARA Proved Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
GOERTZ # 1-H (B-5 Zone) 15N-65W-01 NIOBRARA B-5 Probable Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
GOERTZ # 1-H (C Zone) 15N-65W-01 NIOBRARA C Probable Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
LEROY 41-33 1-H (C BP Zone) 16N-64W-33 NIOBRARA C Probable Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
MCCONNAUGHEY 1-27H (BP) 16N-65W-27 NIOBRARA Probable Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
GOERTZ # 1-H (B-4 Zone) 15N-65W-01 NIOBRARA B-4 Possible Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
LEROY 41-33 1-H (B-4 BP Zone) 16N-64W-33 NIOBRARA B-4 Possible Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
Loc 13 1-H (B-4 Zone) 16N-65W-13 NIOBRARA B-4 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Loc 13 1-H (B-5 Zone) 16N-65W-13 NIOBRARA B-5 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Loc 14 1-H (B-4 Zone) 16N-65W-14 NIOBRARA B-4 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Loc 14 1-H (B-5 Zone) 16N-65W-14 NIOBRARA B-5 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Loc 20 1-H (B-4 Zone) 15N-64W-20 NIOBRARA B-4 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
Loc 20 1-H (B-5 Zone) 15N-64W-20 NIOBRARA B-5 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
MCCONNAUGHEY 1-23H (BP) 16N-65W-23 NIOBRARA B-4 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
MCCONNAUGHEY 1-26H (BP) 16N-65W-26 NIOBRARA B-4 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
MCCONNAUGHEY 1-27H (BP) 16N-65W-27 NIOBRARA B-4 Possible Undeveloped PALADIN ENERGY PARTNERS LLC LARAMIE
MESSENGER 1-3H (B-4 BP) 15N-65W-03 NIOBRARA B-4 Possible Undeveloped WILSHIRE OIL COMPANY OF TEXAS LARAMIE
- -----------------------------------------------------------------------------------------------------------------------------------
Initial Interest Final Interest Allocated
Lease Name WI NRI WI NRI API Number Value(M$)
- ------------------------------------------------------------------------------------------------------------------------
SUNLIGHT 4-20 1 0.0039063 0.0031250 0.0039063 0.0031250 49021205140000 0.219
STATE 101-H 0.2500000 0.1940495 0.2500000 0.1940495 49021204270000 0.000
Loc 13 1-H 0.6666667 0.5807675 0.6666667 0.5656633 0.000
Loc 14 1-H 1.0000000 0.8750000 1.0000000 0.8750000 0.000
MCCONNAUGHEY 1-26H (BP) 0.5000000 0.4013750 0.5000000 0.4013750 49021204530000 0.000
GOERTZ # 1-H (B-5 Zone) 0.2328822 0.1723300 0.2328822 0.1723300 0.000
GOERTZ # 1-H (C Zone) 0.2328822 0.1723300 0.2328822 0.1723300 0.000
LEROY 41-33 1-H (C BP Zone) 0.2500000 0.2125000 0.2500000 0.2125000 49021204630000 0.000
MCCONNAUGHEY 1-27H (BP) 0.1250000 0.0995625 0.1250000 0.0995625 49021204450000 0.000
GOERTZ # 1-H (B-4 Zone) 0.2328822 0.1723300 0.2328822 0.1723300 0.000
LEROY 41-33 1-H (B-4 BP Zone) 0.2500000 0.2125000 0.2500000 0.2125000 49021204630000 0.000
Loc 13 1-H (B-4 Zone) 0.6666667 0.5656633 0.6666667 0.5656633 0.000
Loc 13 1-H (B-5 Zone) 0.6666667 0.5656633 0.6666667 0.5656633 0.000
Loc 14 1-H (B-4 Zone) 1.0000000 0.8500000 1.0000000 0.8500000 0.000
Loc 14 1-H (B-5 Zone) 1.0000000 0.8500000 1.0000000 0.8500000 0.000
Loc 20 1-H (B-4 Zone) 0.0039060 0.0031250 0.0039060 0.0031250 0.000
Loc 20 1-H (B-5 Zone) 0.0039060 0.0031250 0.0039060 0.0031250 0.000
MCCONNAUGHEY 1-23H (BP) 0.5000000 0.4025625 0.5000000 0.4025625 49021204670000 0.000
MCCONNAUGHEY 1-26H (BP) 0.5000000 0.4013750 0.5000000 0.4013750 49021204530000 0.000
MCCONNAUGHEY 1-27H (BP) 0.1250000 0.0995625 0.1250000 0.0995625 49021204450000 0.000
MESSENGER 1-3H (B-4 BP) 0.3205326 0.2644395 0.3205326 0.2644395 49021205170000 0.000
- ----------------------------------------------------------------------------------------------------------------------
$13,700.000
Schedule "B"
Sale, Processing and Transportation Agreements
Oil - None
Gas
A. Contract dated 02-02-94; terminable annually on thirty days notice
prior to May 1. 0.2.471.2A
1. Lucille
2. Wanda
3. Sandy
4. Maxine
5. Gwyn
6. Carol
7. Ima
8. Ruth
9. Krannig #2
B. Contract dated 08-03-88; terminable annually on thirty days notice
prior to August 3. 0.2.471.18A
1. Vilhauer
C. Contract dated 09-06-78; terminable annually on sixty days notice prior
to March 1. 0.2.538.2A
1. Government #2
D. Contract dated 03-01-71; area rate clause; terminable annually on
thirty days notice prior to September 30 if price not agreed upon by
March 15. 0.2.538.2A
1. White "E"
E. Contract dated 08-03-88; terminable annually on thirty days notice
prior to August 3. 0.2.600.13
1. Jenkins #2
F. Contract effective 06-01-98; terminable on sixty days notice.
0.2.1097.3
1. Stotts #1 and #3
2. Breshears #1 and #2
3. Dickson #1
4. Smith #1-3
5. Suzy West #1-13
6. Paul Foster #1-4
G. Contract dated 05-16-78; GPC2545A; expires in May of 2004. 0.2.655.1
1. PA 1978 Program
H. Contract dated 04-17-79; GPC2581A; 18.9% WI expires around May of 2005;
13.3% expires January of 2007. 0.2.655.1
1. PA 1979 Program
I. Contract dated 03-12-98; term not known; no copy. 0.2.893(D).
1. Simpson #1-29
J. Contract dated 12-22-87; terminable annually on thirty days notice
prior to December 12. 0.2.893.G (A).
1. Ellithorpe #1-29 (but possibly covered under contract J. above).
K. Contract dated 09-16-94; terminable annually on thirty days notice
prior to September 16. 0.2.1121(B) 1
1. McConnaughey #1-23-H
2. McConnaughey #1-26H
3. Leroy #41-33
4. McConnaughey #1-13H if redrilled
5. McConnaughey #1-14H if redrilled
L. Contract dated 02-09-01; contract terminable annually on sixty days
notice prior to January 1. 0.2.1177.2
1. Edward #3-12
2. Edwards #5-12
3. Lance #1-11
M. Contract dated 02-24-97; five year primary term; no copy of contract in
files. 0.2.1177.1
1. Edwards #4-11
END
Schedule C
Authorizations for Expenditures
None
Schedule "D"
Pending or Threatened Lawsuits and Claims
1. BIA-BLM Roye #1, Roye #2, Burge #1. Sections 30 and 31, Township 8 North,
Range 21 East, Haskell County, Oklahoma. Wilshire had not paid gas
royalties or had underpaid them on these wells from July 1993 through 2003.
The principal already paid is $17,315.33. Penalty and interest will
eventually be demanded by the MMS. MC5253A
2. ONEOK Energy Resources. Wilhite #1-35. Section 35-23N-26W, Ellis County,
Oklahoma. There was an allocation problem on a central point meter into
which the Wilhite and an offsetting well were producing. The problem
related back to January of 1999. ONEOK has stated that Wilshire was
overpaid for 123,705 mcf. Settlement talks are ongoing. No lawsuit has been
filed to date. 0.2.939.5
3. Greka Energy. Richfield East Dome Unit, Orange County, California. Greka
has failed and refused to pay Wilshire (San Francisco Oil Company) for oil
and gas production from January of 2000 through September of 2002. Average
monthly revenue received from October of 2002 through May of 2002 was
approximately $750.00 per month. 0.2.583.1
4. W. Plack Carr. Dunagan "A" #1. Ongoing claim for cash balancing by
underproduced royalty owner. Wilshire offered interim cash balancing in
1997 for $3,339.02 which was rejected by Mr. Carr. He has been calling
since mid- 2003 to see if Wilshire has been sold. 0.2.431
5. Coowners. Cestos Prospect, Dewey County, Oklahoma. Wilshire needs to
provide updated over-and-short reports on the Blaine #1-29, the Blaine
#2-29, and the Hill Pickering #2-32 wells. There have been no demand on
these in five years. 0.2.741.27
6. Axis Energy. Murrin #1-23, Section 23-7N-14E, Pittsburg County, Oklahoma.
Wilshire filed suit for $22,962.12. A settlement offer from Axis is under
review and will probably be acceptable. 0.2.594
7. Wyoming Oil and Gas Commission. Routine oil and gas site cleanup request.
Some equipment needs to be removed and a very small oil leak fixed.
0.2.1121
END
SCHEDULE "E"
RETURN TO:
[Name] STATE OF _________________)
[Company] ) ss.
[Address] COUNTY OF _______________ )
[City, State, Zip]
ASSIGNMENT, CONVEYANCE AND BILL OF SALE
WILSHIRE ENTERPRISES, INC., a Delaware corporation, SAN FRANCISCO OIL
COMPANY, a California corporation, ROCKLAND RESOURCES, CO., an Oklahoma
corporation, and BRITALTA VENEZOLANO, LTD., an Alberta private corporation
(herein collectively called "Assignor"), for Ten Dollars and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, does hereby GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER, SET
OVER and DELIVER unto CROW CREEK ENERGY L.L.C., a Delaware limited liability
company (herein called "Assignee"), as of the Effective Date (hereinafter
defined), all of Assignor's right, title and interest in and to the following:
(a) The oil, gas and/or mineral leases (and interests therein,
including overriding royalty interests), whether producing or non-producing,
which are referenced in and/or described on Exhibit A attached hereto or which
otherwise cover and affect the lands covered by the leases referenced in and/or
described on Exhibit A, and whether or not fully or accurately set forth on
Exhibit A (hereinafter called the "Leases"), including all seismic and
geological information specific thereto;
(b) The fee mineral interests, term mineral interests and any other
interest in the oil, gas and other minerals in and/or under and that may be
produced from all or any portion of the lands referenced in and/or described on
Exhibit A, and whether or not fully or accurately set forth on Exhibit A
(hereinafter called the "Mineral Interests"), together with all of Assignor's
rights, if any, of ingress and egress, and rights to explore for and develop (or
at the option of the holder thereof, to grant oil and gas leases authorizing
other parties to explore for and develop) the minerals in, on or under such
lands, including both producing and non-producing lands;
(c) The lands and other rights described (in whole or in part) in the
Leases or encompassed (in whole or in part) by the Mineral Interests ("Lands");
(d) The oil, condensate or natural gas wells, water source wells, and
water and other types of injection wells (hereinafter called the "Subject
Wells") and associated materials and other personal property situated on the
Lands;
(e) All other properties and rights used or held for use directly and
exclusively in connection with the production, storage, gathering, processing
and treating of oil, gas and other liquid and gaseous hydrocarbons from, and the
disposal of salt water produced from, the Leases and the Subject Wells,
including, without limitation, all materials, equipment, personal property and
fixtures located thereon or used in connection therewith;
(f) All easements, servitudes, rights-of-way, surface leases and other
surface rights affecting the Lands; and
(g) All leases, options, rights of first refusal, rights arising under
forced pooling and other similar regulatory orders, contracts, operating
agreements or other agreements (including specifically, but without limitation,
all salt water disposal surface leases or agreements) and instruments to the
extent that the same relate, appertain, belong to or are incidental to the
Leases, Lands or Subject Wells.
The interests described in paragraphs (a) through (g) above are hereinafter
collectively called the "Subject Interests."
TO HAVE AND TO HOLD the Subject Interests unto Assignee, its successors
and assigns, forever.
This Assignment, Conveyance and Bill of Sale (the "Assignment") is made
without warranty of title, either express or implied. This Assignment is made
without warranty of title, express, implied or statutory, even as to the return
of the purchase price paid therefor. Any covenants implied by statute or law by
the use of the word "Grant" or other similar words in this Assignment are hereby
expressly restrained, disclaimed, waived and negated. This Assignment is made
with full substitution and subrogation of Assignee and all persons claiming by,
through, or under Assignee, to the extent assignable, in and to all
representations and warranties of title heretofore given or made by Assignor's
predecessors in title with respect to the Subject Interests.
Assignor and Assignee agree that, to the extent required by applicable
law to be operative, the disclaimers of certain warranties contained in this
paragraph are "conspicuous" disclaimers for the purposes of any applicable law,
rule or order. WITHOUT LIMITATION OF THE GENERALITY OF THE PRECEDING SENTENCE,
ASSIGNOR HEREBY EXPRESSLY DISCLAIMS AND NEGATES, AS TO THOSE PORTIONS OF THE
SUBJECT INTERESTS CONSTITUTING PERSONAL PROPERTY, ANY REPRESENTATION OR
WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE, OR OTHERWISE RELATING TO
THE CONDITION OF THE SUBJECT INTERESTS (INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR
PURPOSE, OR OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS).
Assignor agrees to execute such further assurances as may be reasonably
requested or required to allow Assignee full use and enjoyment of the Subject
Interests conveyed by this Assignment.
2
This Assignment is expressly made and accepted subject to the terms and
conditions of the Leases and all contracts relating to the purchase or sale of
production therefrom, to all operating agreements, permits, rights of way,
licenses, easements, options, orders and any other agreements or contracts
comprising or attributable to and affecting the Subject Interests and to all
reservations, exceptions, limitations or other burdens applicable thereto and
which are valid, subsisting, enforceable and of record and of which Assignee has
actual or constructive notice.
This Assignment is made expressly subject to the terms and provisions
of that Purchase and Sale Agreement by and between Assignor and Assignee, dated
effective as of March 1, 2004.
IN WITNESS WHEREOF, this Assignment has been executed and delivered on
April _____, 2004, effective as to runs of oil and deliveries of gas, and for
all other purposes as of 7:00 a.m. local time at the locations of the Subject
Interests, respectively, on March 1, 2004 (the "Effective Date").
ASSIGNORS:
WILSHIRE ENTERPRISES, INC.
By:
------------------------------------
Name:
----------------------------------
Title:
------------------------------
SAN FRANCISCO OIL COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
------------------------------
ROCKLAND RESOURCES, CO.
By:
------------------------------------
Name:
----------------------------------
Title:
------------------------------
BRITALTA VENEZOLANO, LTD.
By:
------------------------------------
Name:
----------------------------------
Title:
------------------------------
3
ASSIGNEE:
CROW CREEK ENERGY L.L.C.
By:
------------------------------------
Name:
----------------------------------
Title:
------------------------------
4
STATE OF _____________________________)
) ss.
COUNTY OF ____________________________)
Before me, the undersigned, a Notary Public, in and for said County and
State, on this ____ day of April, 2004, personally appeared
_______________________, to me known to be the identical person who subscribed
the name of Wilshire Enterprises, Inc. to the foregoing instrument as its
____________________, and acknowledged to me that __he executed the same as
his/her free and voluntary act and deed and as the free and voluntary act and
deed of such Corporation, for the uses and purposes therein set forth.
Given under my hand and seal of office the day and year last above
written.
------------------------
Notary Public
My Commission Expires:
- ------------------------
STATE OF _____________________________)
) ss.
COUNTY OF ____________________________)
Before me, the undersigned, a Notary Public, in and for said County and
State, on this ____ day of April, 2004, personally appeared
_______________________, to me known to be the identical person who subscribed
the name of San Francisco Oil Company to the foregoing instrument as its
_________________, and acknowledged to me that __he executed the same as his/her
free and voluntary act and deed and as the free and voluntary act and deed of
such Corporation, for the uses and purposes therein set forth.
Given under my hand and seal of office the day and year last above
written.
------------------------
Notary Public
My Commission Expires:
- ------------------------
5
STATE OF _____________________________)
) ss.
COUNTY OF ____________________________)
Before me, the undersigned, a Notary Public, in and for said County and
State, on this ____ day of April, 2004, personally appeared
_______________________, to me known to be the identical person who subscribed
the name of Rockland Resources, Co. to the foregoing instrument as its
_________________________, and acknowledged to me that __he executed the same as
his/her free and voluntary act and deed and as the free and voluntary act and
deed of such Corporation, for the uses and purposes therein set forth.
Given under my hand and seal of office the day and year last above
written.
------------------------
Notary Public
My Commission Expires:
- ------------------------
STATE OF _____________________________)
) ss.
COUNTY OF ____________________________)
Before me, the undersigned, a Notary Public, in and for said County and
State, on this ____ day of April, 2004, personally appeared
_______________________, to me known to be the identical person who subscribed
the name of Britalta Venezolano, Ltd. to the foregoing instrument as its
__________________, and acknowledged to me that __he executed the same as
his/her free and voluntary act and deed and as the free and voluntary act and
deed of such Corporation, for the uses and purposes therein set forth.
Given under my hand and seal of office the day and year last above
written.
------------------------
Notary Public
My Commission Expires:
- ------------------------
6
STATE OF _____________________________)
) ss.
COUNTY OF ____________________________)
Before me, the undersigned, a Notary Public, in and for said County and
State, on this ____ day of April, 2004, personally appeared
_______________________, to me known to be the identical person who subscribed
the name of Crow Creek Energy L.L.C. to the foregoing instrument as its Manager,
and acknowledged to me that __he executed the same as his/her free and voluntary
act and deed and as the free and voluntary act and deed of such limited
liability company, for the uses and purposes therein set forth.
Given under my hand and seal of office the day and year last above
written.
------------------------
Notary Public
My Commission Expires:
- ------------------------
7
Exhibit A
TO ASSIGNMENT
Schedule of Leases
8
Text98 Text97 Lease Name SortLegal ZONE Status
AR
CECIL
FORD C B 2-31 09N-27W-31 DUNN A Proved Producing
OK
ANTHON NORTHWEST
EDGAR 1-11 15N-18W-11 SPRINGER Proved Producing
WATT SE 4 1 15N-18W-02 SPRINGER Proved Producing
APACHE EAST
YATES 1-31 05N-10W-31 MORROW Proved Producing
CARPENTER NORTHEAST
SHEPARD 1-15 15N-18W-15 MORROW Proved Producing
EDMOND WEST
GWYN 15N-04W-22 MISSISSIPPIAN Proved Producing
WANDA 15N-04W-15 PRUE/MISS Proved Producing
KINTA
BURGE SW SW NE 1-U 08N-21E-31 SPIRO Proved Producing
COBLENTZ 1 07N-19E-27 SPIRO Proved Producing
COBLENTZ 2-27 07N-19E-27 SPIRO Proved Producing
COBLENTZ 5 07N-19E-27 HARTSHORNE Proved Producing
COLLINS 1 06N-18E-09 RED OAK Proved Producing
DONNA JO 1 07N-20E-03 SPIRO & CROMWELL Proved Producing
DONNA JO 2 07N-19E-23 HARTSHORNE Proved Producing
GLENN 1 06N-18E-02 ATOKA Proved Producing
GLENN 3 06N-18E-02 HARTSHORNE Proved Producing
GLENN 4 06N-18E-02 ATOKA Proved Producing
GOVERNMENT 3A-7U 06N-17E-07 ATOKA Proved Producing
HIGHTOWER 1T 08N-21E-33 CROMWELL Proved Producing
HIGHTOWER 2 08N-21E-33 ATOK-CRML Proved Producing
HIGHTOWER 3 08N-21E-33 ATOKA BASAL Proved Producing
JONES-MILLER NE NW SE 1 08N-19E-20 SPIRO Proved Producing
JUDYANN 1-28 08N-19E-28 ATOKA Proved Producing
MCCRABB WILSON 1 06N-18E-09 RED OAK Proved Producing
MCCRABB WILSON 3 06N-18E-09 RED OAK Proved Producing
MCMONIGLE 1 08N-21E-22 SPIRO & CROMWELL Proved Producing
MIDGLEY 1 07N-20E-04 SPIRO Proved Producing
ROYE 1-30 08N-21E-30 HARTSHORNE Proved Producing
SLOAN 1 07N-21E-06 SPIRO Proved Producing
SLOAN UNIT 2 07N-21E-06 HARTSHORNE Proved Producing
SMITH-CARR SE SW NE 1 08N-19E-16 SPIRO Proved Producing
STROUD 1 09N-24E-24 SPIRO Proved Producing
TERRELL 1 08N-19E-36 SPIRO Proved Producing
TERRELL 2 08N-19E-36 ATOKA Proved Producing
Text98 Text97 Operator County WI NRI Fin_Wrk Fin_Rev Rev Gas Imbalance
AR
XTO ENERGY INCORPORATED FRANKLIN 0.01 0.01 0.01 0.01 -1,647.00
Text135: -1,647.00
OK
DOMINION OKLAHOMA TEXAS E&P CUSTER 0.23 0.19 0.23 0.19 41.00
DOMINION OKLAHOMA TEXAS E&P CUSTER 0.17 0.14 0.17 0.14 279.00
Text135: 320.00
KAISER FRANCIS CADDO 0.00 0.00 0.00 0.00 -570.00
Text135: -570.00
DOMINION OKLAHOMA TEXAS E&P CUSTER 0.00 0.00 0.00 0.00 88.00
Text135: 88.00
SAMSON RESOURCES COMPANY LOGAN 0.45 0.37 0.45 0.37 -3,250.00
SAMSON RESOURCES COMPANY LOGAN 0.45 0.37 0.45 0.37 -2,583.00
Text135: -5,833.00
EXXON COMPANY U S A HASKELL 0.09 0.08 0.09 0.08 -1.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.01 0.01 0.01 3,704.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.01 0.01 0.01 9,074.00
OXLEY PETROLEUM COMPANY LATIMER 0.01 0.01 0.01 0.01 1,019.00
EXXON COMPANY U S A LATIMER 0.02 0.02 0.02 0.02 -1.00
SAMSON RESOURCES COMPANY HASKELL 0.00 0.00 0.00 0.00 15,664.00
OXLEY PETROLEUM COMPANY HASKELL 0.00 0.00 0.00 0.00 -220.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.01 0.01 0.01 18,311.00
OXLEY PETROLEUM COMPANY LATIMER 0.02 0.02 0.02 0.02 -1,256.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.01 0.01 0.01 3,846.00
EBERLY & MEADE INCORPORATED PITTSBURG 0.01 0.01 0.01 0.01 -1,937.00
TEXACO EXPL & PROD HASKELL 0.09 0.08 0.09 0.08 2,279.00
OXLEY PETROLEUM COMPANY HASKELL 0.09 0.08 0.09 0.08 -599.00
BRAVO NATURAL RESOURCES INC HASKELL 0.09 0.08 0.09 0.08 379.00
SAMSON RESOURCES COMPANY HASKELL 0.00 0.00 0.00 0.00 -520.00
SAMSON RESOURCES COMPANY HASKELL 0.00 0.00 0.00 0.00 387.00
EXXON COMPANY U S A LATIMER 0.02 0.02 0.02 0.02 18,295.00
CHESAPEAKE OPERATING INC. LATIMER 0.02 0.02 0.02 0.02 1,168.00
SAMSON RESOURCES COMPANY HASKELL 0.08 0.07 0.08 0.07 7,689.00
OXLEY PETROLEUM COMPANY HASKELL 0.05 0.04 0.05 0.04 5.00
EL PASO PRODUCTION COMPANY HASKELL 0.03 0.03 0.03 0.03 -269.00
QUESTAR EXPL. & PROD. HASKELL 0.07 0.06 0.07 0.06 5,945.00
H S RESOURCES INCORPORATED HASKELL 0.17 0.15 0.17 0.15 2,014.00
XTO ENERGY INCORPORATED HASKELL 0.01 0.01 0.01 0.01 -1,831.00
STEPHENS PRODUCTION COMPANY LE FLORE 0.07 0.06 0.07 0.06 -9,346.00
EXXON COMPANY U S A HASKELL 0.01 0.01 0.01 0.01 207.00
EXXON COMPANY U S A HASKELL 0.01 0.01 0.01 0.01 -529.00
Text98 Text97 Lease Name SortLegal ZONE Status
TERRELL 4 08N-19E-36 SPIRO Proved Producing
WIMBERLY 1 08N-19E-28 SPIRO Proved Producing
COBLENTZ 2-27 07N-19E-27 CROMWELL Proved Shut-In
DOBY 1 WM NW SE NW 07N-20E-03 SPIRO Proved Shut-In
SLOAN UNIT 2 07N-21E-06 SPIRO Proved Shut-In
TERRELL 1 W J SW SE 08N-19E-36 CROMWELL Proved Shut-In
MILDER
WILHITE 1-35 23N-26W-35 MORROW Proved Producing
REAMS NORTHWEST
CROWDER 1 07N-15E-18 CROMWELL Proved Producing
HAMILTON 1-13 07N-14E-13 CROMWELL Proved Producing
MURRIN 1 07N-14E-23 CROMWELL Proved Producing
REAMS SOUTHEAST
HAZELWOOD 1 06N-15E-02 HARTSHORNE Proved Producing
LALMAN 5 06N-15E-01 HARTSHORNE Proved Producing
P S C 1 07N-16E-31 HARTSHORNE Proved Producing
SILVA 3 06N-15E-12 HARTSHORNE Proved Producing
WATONGA-CHICKASHA TREND
ICE B 1-6 14N-10W-06 MORROW Proved Producing
WILBURTON
ADAMS C 1 06N-19E-33 SPIRO Proved Producing
ADAMS C 2 06N-19E-33 SPIRO Proved Producing
BENNETT STATE 1 NE NW SE 05N-18E-19 SPIRO Proved Producing
BENNETT STATE 2-19 05N-18E-19 SPIRO Proved Producing
BENNETT STATE 3-U 05N-18E-19 SPIRO Proved Producing
BENNETT STATE 4-19 05N-18E-19 SPIRO Proved Producing
BENNETT STATE 4-U 05N-18E-19 ATOKA Proved Producing
BOWMAN P D 1 NE 05N-17E-29 SPIRO Proved Producing
BOWMAN P D 2 05N-17E-29 SPIRO Proved Producing
DEGNAN 1 06N-19E-28 SPIRO & CROMWELL Proved Producing
DIAMOND 1 05N-19E-30 PANOLA Proved Producing
DUNAGAN 1-A A SE 05N-17E-13 SPIRO Proved Producing
DUNAGAN 2-A 05N-17E-13 SPIRO & WAPANUCKA Proved Producing
DUNAGAN 3-A 05N-17E-13 SPIRO Proved Producing
FAZEKAS STEVE 2 05N-18E-17 ARBUCKLE Proved Producing
FAZEKAS STEVE 3-L 05N-18E-17 WAPANUCKA Proved Producing
FAZEKAS STEVE 4-L 05N-18E-17 CRML-SPRO-WPCK Proved Producing
FAZEKAS STEVE 4-U 05N-18E-17 WAPANUCKA & CROMWELL Proved Producing
GOLDIE SIVIL 2-22C 05N-17E-22 SPIRO Proved Producing
GOLDIE SIVIL 2-22T 05N-17E-22 CROMWELL Proved Producing
QUAID NE SE NW 1 05N-19E-07 SPIRO Proved Producing
RAY J A 150 NE OF C NW 05N-19E-20 SPIRO Proved Producing
ROBINSON 1 SW NW 05N-18E-12 SPIRO Proved Producing
ROBINSON 2 05N-18E-12 ATOKA & SPIRO Proved Producing
ROBINSON 3-12 05N-18E-12 FANSHAWE Proved Producing
Int
Text98 Text97 Operator County WI NRI Fin_Wrk Fin_RevInt Rev Gas Imbalance
EXXON COMPANY U S A HASKELL 0.02 0.01 0.02 0.01 -3,107.00
EXXON MOBIL CORPORATION HASKELL 0.00 0.00 0.00 0.00 2,106.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.01 0.01 0.01 9,074.00
FAULCONER VERNON E INC. HASKELL 0.03 0.03 0.03 0.03 1,907.00
H S RESOURCES INCORPORATED HASKELL 0.17 0.15 0.17 0.15 2,014.00
EXXON COMPANY U S A HASKELL 0.01 0.01 0.01 0.01 207.00
Text135: 85,678.00
ZINKE & TRUMBO INCORPORATED ELLIS 0.25 0.19 0.25 0.19 6,491.00
Text135: 6,491.00
WILSHIRE OIL COMPANY OF TEXAS PITTSBURG 0.23 0.20 0.23 0.20 23,096.00
WILSHIRE OIL COMPANY OF TEXAS PITTSBURG 0.26 0.23 0.26 0.23 30,937.00
WILSHIRE OIL COMPANY OF TEXAS PITTSBURG 0.55 0.46 0.55 0.46 209.00
Text135: 54,242.00
WILSHIRE OIL COMPANY OF TEXAS PITTSBURG 0.56 0.44 0.56 0.44 -61.00
SPARTAN RESOURCES PITTSBURG 0.33 0.26 0.33 0.26 -34.00
QUENCH OIL & GAS INCORPORATED PITTSBURG 0.06 0.05 0.06 0.05 -616.00
QUENCH OIL & GAS INCORPORATED PITTSBURG 0.20 0.17 0.20 0.17 -846.00
Text135: -1,557.00
MARATHON OIL COMPANY CANADIAN 0.20 0.15 0.20 0.15 -761.00
Text135: -761.00
CHESAPEAKE OPERATING INC. LATIMER 0.06 0.05 0.06 0.05 3,878.00
CHESAPEAKE OPERATING INC. LATIMER 0.07 0.06 0.07 0.06 -7,725.00
AMOCO PRODUCTION COMPANY LATIMER 0.03 0.03 0.03 0.03 60,703.00
AMOCO PRODUCTION COMPANY LATIMER 0.03 0.03 0.03 0.03 -2,187.00
AMOCO PRODUCTION COMPANY LATIMER 0.03 0.03 0.03 0.03 -33,216.00
AMOCO PRODUCTION COMPANY LATIMER 0.04 0.04 0.04 0.04 -25,465.00
AMOCO PRODUCTION COMPANY LATIMER 0.03 0.03 0.03 0.03 -17,488.00
AMOCO PRODUCTION COMPANY PITTSBURG 0.01 0.01 0.01 0.01 11,120.00
AMOCO PRODUCTION COMPANY PITTSBURG 0.01 0.01 0.01 0.01 -2,348.00
SAMSON RESOURCES COMPANY LATIMER 0.00 0.02 0.00 0.02 -22,331.00
QUESTAR EXPL. & PROD. LATIMER 0.06 0.05 0.06 0.05 7,860.00
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 74,066.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.00 0.01 0.00 -2,845.00
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 -618.00
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 127,134.00
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 -4,603.00
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 -636.00
VASTAR RESOURCES INCORPORATED LATIMER 0.00 0.00 0.00 0.00 -636.00
MARATHON OIL COMPANY LATIMER 0.01 0.01 0.01 0.01 2,765.00
MARATHON OIL COMPANY LATIMER 0.01 0.01 0.01 0.01 -9.00
CHESAPEAKE OPERATING INC. LATIMER 0.04 0.03 0.04 0.03 6,908.00
EXXON COMPANY U S A LATIMER 0.01 0.01 0.01 0.01 9,518.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.00 0.01 0.00 14,178.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.00 0.01 0.00 -815.00
AMOCO PRODUCTION COMPANY LATIMER 0.01 0.00 0.01 0.00 -440.00
Text98 Text97 Lease Name SortLegal ZONE Status
SAMS 1-22 05N-17E-22 UNION VALLEY Proved Producing
SIVIL 3 05N-17E-22 WAPANUCKA Proved Producing
SIVIL 4-12 05N-17E-22 WAPANUCKA Proved Producing
UAS MCTIERNAN J W SE NW 1 05N-19E-06 SPIRO Proved Producing
YOUNG RANCH 1-28 06N-19E-28 SPIRO Proved Producing
YOUNG RANCH 2-27 06N-19E-27 SPIRO Proved Producing
BENNETT STATE 2-19 05N-18E-19 ARBUCKLE Proved Shut-In
BENNETT STATE 3 05N-18E-19 MRRW-SPRO Proved Shut-In
BENNETT STATE 3-U 05N-18E-19 SPIRO Proved Shut-In
FAZEKAS STEVE 3-U 05N-18E-17 SPIRO Proved Shut-In
FAZEKAS STEVE 5 05N-18E-17 ATOKA Proved Shut-In
VARNUM GUY 1 C NE 05N-18E-25 SPIRO Proved Shut-In
WY
NITCHIE GULCH
NICHIE GULCH STATE UNIT 17-16 23N-103W-16 FRONTIER Proved Producing
NICHIE GULCH STATE UNIT 17-16 23N-103W-16 DAKOTA Proved Producing
NITCHIE GULCH UNIT 18 23N-103W-29 FRONTIER Proved Producing
NITCHIE GULCH UNIT 21-21F 23N-103W-21 FRONTIER Proved Producing
NITCHIE GULCH UNIT 22-8 23N-103W-07 DAKOTA Proved Producing
PINE CANYON
WEST PINE CANYON 10 22N-103W-05 DAKOTA Proved Producing
Text98 Text97 Operator County WI NRI Fin_Wrk Fin_RevInt Rev Gas Imbalance
SAMSON RESOURCES COMPANY LATIMER 0.04 0.03 0.04 0.03 -2,076.00
MARATHON OIL COMPANY LATIMER 0.01 0.01 0.01 0.01 -107.00
MARATHON OIL COMPANY LATIMER 0.02 0.01 0.02 0.01 154.00
CHESAPEAKE OPERATING INC. LATIMER 0.00 0.00 0.00 0.00 45,186.00
SAMSON RESOURCES COMPANY LATIMER 0.26 0.24 0.26 0.24 -59,418.00
SAMSON RESOURCES COMPANY LATIMER 0.25 0.23 0.25 0.23 -157,858.00
VASTAR RESOURCES INCORPORATED LATIMER 0.03 0.03 0.03 0.03 -2,187.00
VASTAR RESOURCES INCORPORATED LATIMER 0.03 0.03 0.03 0.03 -33,216.00
ARCO PERMIAN LATIMER 0.03 0.03 0.03 0.03 -33,216.00
VASTAR RESOURCES INCORPORATED LATIMER 0.00 0.00 0.00 0.00 -4,603.00
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 -103.00
SAMSON RESOURCES COMPANY LATIMER 0.02 0.02 0.02 0.02 54,345.00
Text135: 3,669.00
WY
BERCO RESOURCES SWEETWATER 0.03 0.02 0.03 0.02 -1,954.00
BERCO RESOURCES SWEETWATER 0.03 0.03 0.03 0.03 113.00
BERCO RESOURCES SWEETWATER 0.03 0.02 0.03 0.02 42.00
BERCO RESOURCES SWEETWATER 0.03 0.03 0.03 0.03 -32.00
BERCO RESOURCES SWEETWATER 0.03 0.03 0.03 0.03 365.00
Text135: -1,466.00
SAMSON RESOURCES COMPANY SWEETWATER 0.03 0.03 0.03 0.03 -599.00
Text135: -599.00
Text145: 138,055.00
Text98 Text97 Lease Name SortLegal ZONE Status
OK
NOBLE NORTHWEST
FOSTER PAUL 08N-02W-04 VIOLA LIME Proved Producing
WATONGA-CHICKASHA TREND
ICE B 1-6 14N-10W-06 MORROW Proved Producing
WILBURTON
MALITZ 1-25 05N-18E-25 SPIRO Proved Producing
MALITZ 1-25 05N-18E-25 PANOLA Proved Producing
VARNUM GUY 2-25 05N-18E-25 SPIRO Proved Producing
VARNUM GUY 3-25 05N-18E-25 SPIRO Proved Producing
VARNUM GUY 4-25 05N-18E-25 SPIRO Proved Producing
VARNUM GUY 1 C NE 05N-18E-25 SPIRO Proved Shut-In
PA
VARIOUS
1975 PROGRAM HOMER CITY Proved Producing
1976 PROGRAM VARIOUS Proved Producing
1977 PROGRAM VARIOUS Proved Producing
1978 PROGRAM VARIOUS Proved Producing
1979 PROGRAM VARIOUS Proved Producing
TX
HELUMA EAST
JACOBS LIVESTOCK C 2 Patterson W-A1270-Sec# DEVONIAN Proved Producing
Text98 Text97 Operator County WI NRI Fin_Wrkl Fin_Revl Preferential Right
OK
WILSHIRE OIL COMPANY OF TEXAS CLEVELAND 0.56 0.48 0.56 0.48 Yes
MARATHON OIL COMPANY CANADIAN 0.20 0.15 0.20 0.15 NOS Required
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 Yes
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 Yes
SAMSON RESOURCES COMPANY LATIMER 0.00 0.00 0.00 0.00 Yes
SAMSON RESOURCES COMPANY LATIMER 0.00 0.00 0.00 0.00 Yes
AMOCO PRODUCTION COMPANY LATIMER 0.00 0.00 0.00 0.00 Yes
SAMSON RESOURCES COMPANY LATIMER 0.02 0.02 0.02 0.02 Yes
PA
DOMINION INDIANA 0.50 0.44 0.50 0.44 Yes
DOMINION INDIANA/
WESTMORELAND 0.50 0.44 0.50 0.44 Yes
DOMINION INDIANA/
WESTMORELAND 0.50 0.44 0.50 0.44 Yes
DOMINION VARIOUS 0.32 0.28 0.32 0.28 Yes
DOMINION VARIOUS 0.19 0.17 0.19 0.17 Yes
TX
ENDEAVOR ENERGY RESOURCES UPTON 0.50 0.44 0.50 0.44 NOS Required
SCHEDULE "J"
ESCROW TRUST AGREEMENT
This Escrow Trust Agreement (the "Agreement") is made and entered into
as of this ____ day of March, 2004 (the "Effective Date") by and among CROW
CREEK ENERGY L.L.C., a Delaware limited liability company ("CCE" or
"Purchaser"), WILSHIRE ENTERPRISES, INC., a Delaware corporation ("WEI"), SAN
FRANCISCO OIL COMPANY, a California corporation ("SFO"), ROCKLAND RESOURCES,
CO., an Oklahoma corporation ("RRC"), BRITALTA VENEZOLANO, LTD., an Alberta
private corporation ("BV", together with WEI, SFO and RRC, the "Sellers"), and
BANK OF OKLAHOMA, N.A. ("Escrow Agent"). For all purposes herein, WEI shall act
on behalf of itself and the other Sellers. CCE, each of the Sellers and Escrow
Agent sometimes individually may be referred to as a "Party" and collectively
may be referred to as the "Parties."
RECITALS
A. CCE and the Sellers have entered into a Purchase and Sale Agreement
dated as of March 17, 2004, but effective for all purposes as of March 1, 2004
(the "Purchase Agreement").
B. Pursuant to the Purchase Agreement, CCE will place One Million
Dollars ($1,000,000.00) in escrow (the "Escrow Amount") with Escrow Agent.
C. Each of CCE and the Sellers desire to establish an escrow with
Escrow Agent to provide for the retention, administration and controlled access
of the Escrow Amount.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual agreements
and covenants contained in this Agreement, and including to be legally bound
hereby, the Parties agree as follows:
ARTICLE 1.
ESTABLISHMENT OF ESCROW
1.1 Appointment of Escrow Agent. Each of CCE and the Sellers hereby
appoint and direct Escrow Agent to act as escrow agent in accordance with the
terms of this Agreement, and the Escrow Agent hereby accepts such appointment.
1.2 Deposit of Escrow Amount.
(a) Upon the execution of this Agreement, CCE has deposited or
caused to be deposited the Escrow Amount into an account established by Escrow
Agent. The Escrow Amount shall be held and disposed of by Escrow Agent in
accordance with the terms and conditions of this Agreement.
(b) Each of CCE and the Sellers hereby authorize and direct the
Escrow Agent to keep and preserve the Escrow Amount in its possession, free and
clear of any and all claims, liens and encumbrances whatsoever, subject to the
terms of this Agreement regarding the disbursement of all or part of such Escrow
Amount.
1.3 Investment of Escrow Amount. Escrow Agent shall be permitted, and
is hereby authorized to deposit, transfer, hold and invest the Escrow Amount,
including principal and interest, in a money market fund managed by Escrow
Agent, during the period of this escrow in accordance with such instructions and
directions as may from time to time be provided to Escrow Agent in writing and
signed by CCE and WEI (on behalf of the Sellers). Any interest received by
Escrow Agent with respect to the Escrow Amount, including reinvested interest
("Interest"), shall become part of the Escrow Amount. The Interest earned on the
Escrow Amount shall be distributed in accordance with the terms of this
Agreement.
1.4 Tax Related Terms.
(a) Tax Reporting. CCE and the Sellers agree that, for tax reporting
purposes, all Interest or other taxable income earned from the investment of the
Escrow Amount in any tax year shall be taxable to the Party who receives such
Interest under this Agreement or under the escrow agreement with Bank of
Oklahoma, N.A. established pursuant to Section 2.1(c) below.
(b) Certification of Tax Identification Number. CCE within 30 days
after the date hereof, shall provide Escrow Agent with certified tax
identification numbers by furnishing appropriate forms and documents that the
Escrow Agent may reasonably request. CCE understands that if such tax reporting
documentation is not so certified to Escrow Agent, then Escrow Agent may be
required by the Internal Revenue Code of 1986, as amended, to withhold a portion
of any Interest or other income earned on the investment of the Escrow Amount
pursuant to this Agreement.
(c) Tax Allocation. To the extent that the Escrow Agent becomes
liable for the payment of any taxes in respect of income derived from the
investment of the Escrow Amount, Escrow Agent shall satisfy such liability to
the extent possible from the Escrow Amount and the Interest. Each of CCE and the
Sellers agree to indemnify and hold the Escrow Agent harmless from and against
any taxes, additions for late payment, interest, penalties and other expenses
that may be assessed against the Escrow Agent on or with respect to any payment
or other activities under this Agreement unless any such tax, addition for late
payment, interest, penalties and other expenses shall arise out of or be caused
by the actions of, or failure to act by, the Escrow Agent.
ARTICLE 2.
RELEASE OF ESCROW AMOUNT
2.1 Release of Escrow Amount.
(a) Escrow Agent shall release the Escrow Amount, together with
Interest thereon, to WEI (on behalf of itself and the Sellers) upon delivery by
WEI of a duly executed certificate to Escrow Agent certifying that it is
entitled to the release of the Escrow Amount pursuant to Section 2.5(a) of the
Purchase Agreement along with evidence that a copy of such certificate has been
delivered to CCE in accordance with Section 6.2 of this Agreement.
2
(b) Escrow Agent shall release the Escrow Amount, together with
Interest thereon, to CCE upon delivery by CCE of a duly executed certificate to
Escrow Agent certifying that it is entitled to the release of the Escrow Amount
pursuant to Section 2.5(b) of the Purchase Agreement along with evidence that a
copy of such certificate has been delivered to WEI (on behalf of itself and the
Sellers) in accordance with Section 6.2 of this Agreement.
(c) Escrow Agent shall, pursuant to Section 2.4 of the Purchase
Agreement, retain the Escrow Amount, together with Interest thereon as the
Holdback Amount (as defined in the Purchase Agreement) upon receipt of joint
written instructions signed by each of CCE and WEI (on behalf of the Sellers)
certifying that Closing (as defined in the Purchase Agreement) has occurred and
specifying that the Holdback Escrow Agreement (as defined in the Purchase
Agreement) has been executed by CCE and the Sellers.
(d) Notwithstanding anything herein to the contrary, upon the
receipt of joint written instructions signed by each of CCE and WEI (on behalf
of the Sellers), Escrow Agent shall deliver the Escrow Amount, or portions
thereof and inclusive of Interest thereon, in accordance with such instructions.
ARTICLE 3.
TERM AND TERMINATION
3.1 Term of Agreement. This Agreement shall remain in effect until the
Escrow Amount (and Interest thereon) is distributed. This Agreement may be
terminated by joint instructions in writing from CCE and WEI (on behalf of the
Sellers).
3.2 Termination for Nonpayment. In the event of the nonpayment of fees
owed to Escrow Agent, Escrow Agent shall provide written notice of delinquency
to CCE and WEI (on behalf of the Sellers). Any Party to this Agreement shall
have the right to make the payment to Escrow Agent to cure the default. If the
past due payment is not received in full by Escrow Agent within 30 days of the
date of such notice, then Escrow Agent shall have the right either to (a)
terminate this Agreement at any time thereafter by sending written notice of
termination to CCE and WEI (on behalf of the Sellers), or (b) cure the default
by deducting the unpaid and owing fees from (i) the Interest and (ii) if the
amount of Interest is insufficient, by deducting the remainder from the Escrow
Amount. Escrow Agent shall have no obligation to take any action under this
Agreement so long as any payment due to Escrow Agent remains unpaid.
3.3 Survival of Terms Following Termination. Upon termination of this
Agreement, the following provisions of this Agreement shall survive.
(a) The provisions of Article 2;
(b) The obligation to pay Escrow Agent any fees and expenses due;
(c) The provisions of Article 5; and
3
(d) Any provisions in this Agreement which specifically state they
survive the termination or expiration of this Agreement.
ARTICLE 4.
ESCROW AGENT'S FEES
4.1 Fee Schedule. Escrow Agent is entitled to be paid its standard fees
and expenses applicable to the services provided. Escrow Agent shall notify CCE
and WEI (on behalf of the Sellers) for payment of Escrow Agent's fees at least
sixty (60) days prior to any increase in fees. For any service not listed on
Escrow Agent's standard fee schedule, Escrow Agent will provide a quote prior to
rendering the service, if requested.
4.2 Payment Terms. Escrow Agent shall not be required to perform any
service unless the payment for such service and any outstanding balances owed to
Escrow Agent are paid in full. All invoiced fees shall be payable out of
Interest; provided, that any fees in excess of accrued Interest shall be paid
one-half (1/2) by CCE and one-half (1/2) by the Sellers. Late fees on past due
amounts shall accrue at the rate of __________ percent per month (__% per annum)
from the date of the invoice.
ARTICLE 5.
LIABILITY AND DISPUTES
5.1 Right to Rely on Instructions. Escrow Agent may act in reliance
upon any instruction, instrument, certificate or signature reasonably believed
by Escrow Agent to be genuine. Escrow Agent shall only act upon written notice,
request or instruction given by the designated contacts of a Party to this
Agreement. Escrow Agent shall not be responsible for failure to act as a result
of causes beyond the reasonable control of Escrow Agent.
5.2 Indemnification. Escrow Agent shall be responsible to perform its
obligations under this Agreement and to act in a reasonable and prudent manner
with regard to this escrow arrangement. Provided Escrow Agent has acted in the
manner stated in the preceding sentence, CCE and the Sellers each agree to
indemnify, defend and hold harmless Escrow Agent from any and all claims,
actions, damages, arbitration fees and expenses, costs, attorney's fees and
other liabilities incurred by Escrow Agent relating in any way to this
Agreement.
5.3 Disputes. If any disagreement or dispute arises between the Parties
to this Agreement concerning the meaning or validity of any provision hereunder
or concerning any other matter relating to this Agreement, the Escrow Agent
shall be under no obligation to act, except under process or order of court, or
until it has been adequately indemnified to its full satisfaction, and shall
sustain no liability for its failure to act pending such process, court order or
indemnification; and may, in its sole discretion, interplead the Escrow Amount
or that portion of the Escrow Amount it then holds with the District Court of
Harris County, Texas, and name the Parties in such action. Upon filing the
interpleader action, the Escrow Agent shall be relieved of all liability as to
the Escrow Amount and shall be entitled to recover from the Parties, its
reasonable attorneys fees and other costs incurred in commencing and maintaining
such action. In no event shall the institution of such interpleader action
impair the rights of the Escrow Agent set forth in Section 5.3 above.
4
5.4 Controlling Law. This agreement is to be governed and construed in
accordance with the laws of the state of Texas, without regard to its conflicts
of law provisions. The Parties irrevocably submit to the exclusive jurisdiction
of the state courts of Harris County, Texas, and the Federal courts of the
United States located in Houston, Texas, with regard to any action brought to
enforce this Agreement. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, CLAIM OR COUNTERCLAIM ARISING OUT
OF OR RELATED TO THIS AGREEMENT.
ARTICLE 6.
GENERAL PROVISIONS
6.1 Entire Agreement. This Agreement, which includes the Exhibits
described herein, embodies the entire understanding among the Parties with
respect to its subject matter and supersedes all previous communications,
representations or understandings, either oral or written. No amendment or
modification of this Agreement shall be valid or binding unless signed by all
the Parties hereto.
6.2 Notices. All notices, invoices, payments, deposits and other
documents and communications shall be given to the Parties at the addresses
specified in the attached Exhibit A. It shall be the responsibility of the
Parties to notify each other as provided in this Section in the event of a
change of address. The Parties shall have the right to rely on the last known
address of the other Parties. Unless otherwise provided in this Agreement, all
documents and communications may be delivered by First Class mail or by
facsimile.
6.3 Severability. In the event any provision of this Agreement is found
to be invalid, voidable or unenforceable, the Parties agree that unless it
materially affects the intent and purpose of this Agreement, such invalidity,
voidability or unenforceability shall affect neither the validity of this
Agreement nor the remaining provisions herein, and the provision in question
shall be deemed to be replaced with a valid and enforceable provision most
closely reflecting the intent and purpose of the original provision.
6.4 Successors. This Agreement shall be binding upon and shall inure to
the benefit of the successors and assigns of the Parties. However, Escrow Agent
shall have no obligation in performing this Agreement to recognize any successor
or assign of CCE or any of the Sellers unless Escrow Agent receives written
evidence of the change of Parties.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
5
The Parties have executed this Agreement effective as of the date first
above written.
PURCHASER:
CROW CREEK ENERGY L.L.C., a Delaware limited
liability company
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
SELLERS:
WILSHIRE ENTERPRISES, INC., a Delaware
corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
SAN FRANCISCO OIL COMPANY, a California
corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ROCKLAND RESOURCES CO., an Oklahoma
corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
6
BRITALTA VENEZOLANO, LTD., an Alberta private
corporation
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
ESCROW AGENT:
BANK OF OKLAHOMA, N.A.
By: _______________________________________
Name: _____________________________________
Title: ____________________________________
7
EXHIBIT A
TO
ESCROW TRUST AGREEMENT
DESIGNATED CONTACT
Notices, deposit materials and communications to CCE should be addressed to:
Company Name: Crow Creek Energy L.L.C.
Address: 2100 South Utica, Suite 200
Tulsa, Oklahoma 74114
Attn: Maurice Storm
Facsimile: (918) 745-1701
Notices and communications to Sellers should be addressed to:
Company Name: Wilshire Enterprises, Inc.
Address: 921 Bergen Avenue
Jersey City, New Jersey 07306
Attn: Philip Kupperman
Facsimile: (201) 420-6012
Contracts, deposit materials and notices Escrow Invoices inquiries and fee
to Escrow Agent should be addressed to: remittances to Escrow Agent should be
addressed to:
Bank of Oklahoma, N.A. _____________________________________
_______________________________________ _____________________________________
_______________________________________ _____________________________________
Attn: Attn:
Telephone: Telephone:
Facsimile: Facsimile:
SCHEDULE "K"
HOLDBACK ESCROW AGREEMENT
THIS ESCROW AGREEMENT (the "Agreement"), is made and entered into as of
this ____ day of March, 2004 (the "Effective Date") by and among CROW CREEK
ENERGY L.L.C., a Delaware limited liability company ("Purchaser"), WILSHIRE
ENTERPRISES, INC., a Delaware corporation ("WEI"), SAN FRANCISCO OIL COMPANY, a
California corporation ("SFO"), ROCKLAND RESOURCES, CO., an Oklahoma corporation
("RRC"), BRITALTA VENEZOLANO, LTD., an Alberta private corporation ("BV",
together with WEI, SFO and RRC, the "Sellers"), and BANK OF OKLAHOMA, N.A.
("Escrow Agent"). For all purposes herein, WEI shall act on behalf of itself and
the other Sellers. CCE, each of the Sellers and Escrow Agent sometimes
individually may be referred to as a "Party" and collectively may be referred to
as the "Parties."
RECITALS
A. Purchaser and Sellers have entered into a Purchase and Sale
Agreement dated as of March __, 2004, but effective for all purposes as of March
1, 2004 (the "Purchase Agreement");
B. The Purchase Agreement provides for, among other things, a Sellers'
limited indemnity, indemnifying Purchaser from and against certain claims and
losses that may be asserted against or incurred by Purchaser as well as setting
forth procedures after Closing for addressing title defects and environmental
liabilities.
C. As security for the limited indemnity obligation of Sellers and the
rights of Purchaser after Closing to address title defects and environmental
liabilities under the Purchase Agreement, the Parties have agreed that a
holdback amount equal to the earnest money (together with interest thereon),
previously escrowed under the Purchase Agreement, remain in an escrow fund (as
defined below); and
D. The Escrow Agent has agreed to hold such funds pursuant to the terms
of this Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual
agreements and covenants hereinafter set forth, the parties hereby agree as
follow
1. Holdback Escrow Fund.
(a) On the date hereof, Purchaser and Sellers, by written
instructions to the Escrow Agent, have directed that the Deposit (as
defined in the Purchase Agreement) (together with interest thereon), in
the amount of $1,000,000 plus accrued interest (the "Holdback Amount")
in immediately available funds (as increased by any earnings thereon
and as reduced by any disbursements or losses on investments, the
("Holdback Escrow Fund"), remain in escrow in accordance with this
Agreement. The Escrow Agent hereby acknowledges receipt thereof.
(b) The Escrow Agent hereby agrees to act as escrow agent and
to hold, safeguard and disburse the Holdback Escrow Fund pursuant to
the terms and conditions hereof. Subject to and in accordance with the
terms and conditions hereof, Escrow Agent agrees that it shall receive,
hold in escrow, invest and reinvest and release or distribute the
Holdback Escrow Fund. It is hereby expressly stipulated and agreed that
all interest and other earnings on the Holdback Escrow Fund shall
become a part of the Holdback Escrow Fund for all purposes, and that
all losses resulting from the investment or reinvestment thereof from
time to time and all amounts charged thereto to compensate or reimburse
the Escrow Agent from time to time for amounts owing to it hereunder
shall from the time of such loss or charge no longer constitute part of
the Holdback Escrow Fund.
2. Investment of the Holdback Escrow Fund. Escrow Agent shall invest
and reinvest the Holdback Escrow Fund, including principal and interest, in a
money market fund managed by Escrow Agent, during the period of this escrow and
unless otherwise instructed in writing by Purchaser and Sellers. Such written
instructions, if any, shall specify the type and identity of the investments to
be purchased and/or sold and shall also include the name of the broker-dealer,
if any, any particular settlement procedures required, if any (which settlement
procedures shall be consistent with industry standards and practices), and such
other information as Escrow Agent may require. Escrow Agent shall not be liable
for failure to invest or reinvest funds absent sufficient written direction.
Unless Escrow Agent is otherwise directed in such written instructions, Escrow
Agent may use a broker-dealer of its own selection, including a broker-dealer
owned by or affiliated with Escrow Agent or any of its affiliates. The Escrow
Agent or any of its affiliates may receive compensation with respect to any
investment directed hereunder. Escrow Agent shall not be liable for losses on
any investments, including, but not limited to, losses from market risks due to
premature liquidation or resulting from other actions taken pursuant to this
Escrow Agreement.
3. Release of Holdback Escrow Funds. The Escrow Agent shall release the
Holdback Escrow Fund as follows:
(a) The Escrow Agent shall release the Holdback Escrow Fund in
accordance with the written instructions of both Purchaser and Sellers
(written instructions by either Purchaser or the Sellers acting
independently shall not be sufficient to release the Holdback Escrow
Fund).
(b) Purchaser may, from time to time, submit a demand to
Sellers, with a copy to the Escrow Agent, specifying any claim (a
"Claim") against Sellers made pursuant to Section 7.1 or Article 10 of
the Purchase Agreement, and if known, the amount of the Claim, and
certifying that Purchaser is entitled to payment from Sellers with
respect to such Claim pursuant to the terms of Section 7.1 or Article
10, as applicable, of the Purchase Agreement (a "Notice of Claim").
Upon agreement among Purchaser and Sellers as to the validity and value
of a Claim or upon a final determination by the Arbitrator as set forth
in Article 11 of the Purchase Agreement as to the validity and amount
of a Claim, Purchaser and Sellers shall submit a notice in writing
signed by both Purchaser and Sellers (a "Payment Notice") to the Escrow
Agent, setting forth the amount of payment due from Sellers that
Purchaser is entitled to pursuant to the Purchase Agreement (the
"Payment Amount"), with a copy of the Payment Notice to Sellers. The
Escrow Agent shall release the Payment Amount to Purchaser pursuant to
the terms of the Payment Notice.
(c) Unless the Escrow Agent shall have received a Notice of
Claim from Purchaser that has not been paid or otherwise resolved on or
before the Final Settlement Date (as defined in the Purchase
Agreement), the Escrow Agent shall distribute the Holdback Escrow Fund
(or, if pending Notice(s) of Claim specify a maximum Claim, and the
Holdback Escrow Fund exceeds the amount of such Claim, the Escrow Agent
shall distribute such excess) to Sellers.
(d) On or after the Final Settlement Date (as defined in the
Purchase Agreement) and for each outstanding Claim that is resolved, to
the extent the Holdback Escrow Fund exceeds the Payment Amount for such
resolved Claim plus the maximum amount of Claims subject to any
unresolved Notice of a Claim, the Escrow Agent shall distribute such
excess to Sellers.
(e) Upon resolution and payment (if necessary) after the Final
Settlement Date (as defined in the Purchase Agreement) of all
outstanding Notices of Claim, the Escrow Agent shall distribute the
Holdback Escrow Fund to Sellers.
(f) The Escrow Agent shall release the Holdback Escrow Fund in
accordance with the terms of an order, judgment or decree of a court or
administrative agency of competent jurisdiction ordering the release of
the Holdback Escrow Fund or any portion thereof, accompanied by an
opinion of counsel of the party requesting release of the Holdback
Escrow Fund to the effect that such order, judgment or decree
represents a final adjudication of the rights of the parties hereto by
a court of competent jurisdiction, and that the time for appeal from
such order, judgment or decree has expired without an appeal having
been perfected.
4. Matters Relating to the Escrow Agent.
(a) Indemnification of Escrow Agent. Purchaser and Sellers,
jointly and severally, agree to hold the Escrow Agent harmless and to
indemnify the Escrow Agent against any loss, liability, expense
(including reasonable attorney's fees and expenses), claim, or demand
arising out of or in connection with the performance of its obligations
in accordance with the provisions of this Agreement, except for gross
negligence or willful misconduct of the Escrow Agent. The foregoing
indemnities in this paragraph shall survive the resignation of the
Escrow Agent or the termination of this Agreement.
(b) Specific Duties: No Liability. The Escrow Agent's duties
are only such as are specifically provided herein, and the Escrow Agent
shall incur no liability whatsoever to Purchaser or Sellers, except for
gross negligence or willful misconduct. The Escrow Agent shall have no
responsibility hereunder other than to follow faithfully the
instructions herein contained. The Escrow Agent may consult with
counsel and shall be fully protected in any action taken in good faith
in accordance with such advice. The Escrow Agent shall be fully
protected in acting in accordance with any written instructions given
to it hereunder and believed by it to have been executed by the proper
parties.
(c) Fees. The Escrow Agent shall be entitled to a fee of
_______________________ Dollars ($______________) for the services
rendered under this Agreement, which fee shall be paid from interest
and other earnings on the Holdback Amount; provided that any fees in
excess of accrued interest and earnings shall be paid by Sellers and
Purchaser in equal shares. The Escrow Agent shall have a lien on the
Holdback Escrow Fund for all expenses and fees incurred by it pursuant
to this Agreement and shall have the right to reimbursement for all
such expenses and fees from the Holdback Escrow Fund. If the Escrow
Agent believes it to be reasonably necessary to consult with counsel
concerning any of its duties hereunder, or if the Escrow Agent becomes
involved in litigation as a result of acting as Escrow Agent hereunder,
then in either case, the costs, expenses, and reasonable attorneys fees
of the Escrow Agent shall be borne equally by the Purchaser and the
Sellers.
(d) Disputes. It is understood and agreed that should any
dispute arise with respect to the payment, ownership, or right of
possession of the Holdback Escrow Fund, the Escrow Agent is authorized
and directed to retain in its possession, without liability to anyone,
all or any part of such funds until such dispute shall have been
settled either by mutual agreement by the parties concerned or by the
making of a final written arbitration award rendered in an arbitration
proceeding conducted pursuant to Article 11 of the Purchase Agreement,
but the Escrow Agent shall be under no duty whatsoever to institute or
defend any such proceedings.
(e) Resignation. The Escrow Agent may resign at any time by
giving written notice thereof to the other Parties, but such
resignation shall not become effective until a successor escrow agent
shall have been appointed and shall have accepted such assignment in
writing. If an instrument of acceptance by a successor escrow agent
shall not have been delivered to the Escrow Agent within 30 days after
the giving of such notice of resignation, the resigning Escrow Agent
may at the expense of the other parties hereto petition any court of
competent jurisdiction for the appointment of a successor escrow agent.
5. Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Texas applicable to contracts made and to be performed
entirely within such State.
6. Notices. All notices, consents, waivers and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b)
sent by facsimile (with written confirmation of receipt) provided that a copy is
mailed by registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and facsimile
numbers, as follows:
If to Sellers:
Wilshire Enterprises, Inc., for itself
and San Francisco Oil Company
921 Bergen Avenue
Jersey City, New Jersey 07306
Attn: Philip Kupperman
Fax: (201) 420-6012
If to Purchaser:
Crow Creek Energy L.L.C.
2100 South Utica, Suite 200
Tulsa, Oklahoma 74114
Attn: Maurice Storm
Fax: (918) 745-1701
If to the Escrow Agent:
Bank of Oklahoma, N.A.
----------------------
----------------------
7. Termination. This Agreement shall terminate upon the disbursement of
the Holdback Escrow Fund.
8. Counterparts. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original and all of which,
when taken together, will be deemed to constitute one and the same.
9. Section Headings. The headings of sections in this Agreement are
provided for convenience only and will not affect its construction or
interpretation.
10. Waiver. The rights and remedies of the parties to this Agreement
are cumulative and not alternative. Neither the failure nor any delay by any
party in exercising any right, power, or privilege under this Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power,
or privilege will preclude any other or further exercise of such right, power,
or privilege or the exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no Claim or right arising out of
this Agreement or the documents referred to in this Agreement can be discharged
by one party, in whole or in part, by a waiver or renunciation of the Claim or
right unless in a writing signed by the other party; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is given; and (c) no notice to or demand on one party will be deemed to be a
waiver of any obligation of such party or of the right of the party giving such
notice or demand to take further action without notice or demand as provided in
this Agreement or the documents referred to in this Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date first written above.
"Sellers" "Escrow Agent"
WILSHIRE ENTERPRISES, INC. BANK OF OKLAHOMA, N.A.
By: By:
----------------------------------------- -----------------------------------------
Name: Name:
--------------------------------------- ---------------------------------------
Title: Title:
-------------------------------------- --------------------------------------
SAN FRANCISCO OIL COMPANY "Purchaser"
CROW CREEK ENERGY L.L.C.
By:
-----------------------------------------
Name: By:
--------------------------------------- -----------------------------------------
Title: Name: Maurice Storm
-------------------------------------- Title: Manager
ROCKLAND RESOURCES, CO.
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
BRITALTA VENEZOLANO, LTD.
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------