EXHIBIT 10.1

PARTICIPATION AGREEMENT
REDACTED Prospect

          This Participation Agreement is made and entered into this 1st day of
May, 2008, by and between PetroQuest Energy, L.L.C. (“PetroQuest”), and CL&F
Resources LP (CL&F), collectively sometimes hereinafter sometimes referred to as
“Lease Owners” and Ridgewood Energy Corporation (“Ridgewood”) and Bayou Bend
Offshore, Ltd. (“Bayou Bend”), hereinafter sometimes referred to individually as
“Participant” or collectively as “Participants”, and the parties hereto also
being referred to individually as “Party” or collectively as the “Parties”.

WITNESSETH:

          WHEREAS, Lease Owners own leasehold rights in and to those certain
Federal Oil and Gas Leases more fully described on Exhibit “A” (the “Contract
Area”), and Lease Owners warrant, by through and under themselves, but not
otherwise, that they own sufficient working interests to be able to deliver to
Participants an assignment of the After Casing Point interest as set forth in
Article 3.1 below and a corresponding net revenue interest proportionate to the
interest to be earned by Participants in the production from the wells to be
drilled pursuant to this Agreement on the Federal Oil and Gas Leases more fully
described on Exhibit “A”, and

          WHEREAS, Participants desire to join Lease Owners in the development
of certain prospects in and under the Contract Area,

          NOW, THEREFORE, for and in consideration of One Hundred Dollars
($100.00) in hand paid, and other good and valuable consideration, the Parties
agree as follows:

ARTICLE I

1.1     Lease Owners own a one hundred percent (100%) Interest in the Contract
Area. Lease Owners represent that the leases covering REDACTED and REDACTED are
currently in full force and effect. Lease Owners further represent that they
have the right and authority to grant assignments within the Contract Area, as
contemplated herein, to the Participants equal to their After Casing Point
Percentages in the Initial Test Well as set out in Article 3.1. Lease Owners
agree that no relinquishment of any portion of the lease covering REDACTED and
REDACTED within the Contract Area will be made without the approval of the
Parties hereto while this Agreement is in effect.

ARTICLE II

2.1     Pursuant to the terms and conditions herein, Lease Owners and
Participants commit to participate in the drilling of the REDACTED (Initial Test
Well) within the Contract Area which shall be commenced on or before June 30,
2008, subject only to rig availability and receipt of all required regulatory
permits and/or applications. Such Test

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Well shall be drilled in accordance with the provisions of the Agreement.
PetroQuest shall be designated as Operator of the Initial Test Well. All
provisions governing operations in connection with the Initial Test Well shall
also apply to any Additional Wells, if drilled hereunder.

          Notwithstanding anything herein to the contrary, PetroQuest shall be
designated as Operator for any and all operations conducted pursuant to this
Agreement on the Contract Area.

2.2.1  Initial Test Well

          Lease Owners and Participants shall diligently prosecute the drilling
of the Initial Test Well on the Contract Area to the lesser of: (a) a depth of
16,375’ MD/16,200’TVD, or (b) a depth sufficient to test the stratigraphic
equivalent of the Big A-4 Sand, as seen between the depths of 15,600’ MD and
15,700’ MD on the induction focused log in the REDACTED (the “Objective Depth”).
The Initial Test Well will be drilled from a surface location on REDACTED to the
Objective Depth with an approximate target location at the Objective Depth
having REDACTED Coordinates of X= REDACTED and Y= REDACTED.

2.2     The Initial Test Well on REDACTED will be drilled under a turnkey
drilling contract with Applied Drilling Technology Inc. (“ADTI”), to be entered
into no later than June 30, 2008. If a decision is made to complete any test
well for production, PetroQuest shall solicit a turnkey completion proposal from
ADTI for consideration by the participating Parties. However, nothing in this
Agreement shall purport to require the Parties to complete said well under such
turnkey completion proposal. The total cost and expense associated with drilling
the Initial Test Well (inclusive of the ADTI turnkey drilling contract) is
estimated to be $12,796,455 as reflected in the Drill & Log Well Cost Estimates
attached hereto as Exhibit “B”, which includes, but is not limited to, the costs
of permitting, drilling and logging the Initial Test Well to the Objective
Depth, and the Insurance coverage as shown in Exhibit “B” to the attached Joint
Operating Agreement (collectively referred to as the “REDACTED Before Casing
Point Costs”). The estimated cost to overdrive a caisson and complete the
initial test well is $5,737,000. The estimated facilities and hook-up costs are
$6,000,000, which includes, but is not limited to, the costs of the installation
of a two well braced caisson structure with heliport and the installation of a
6” pipeline to the REDACETD “A” Platform for the tie-in to REDACTED for
processing and transportation to sales (“Initial Test Well Facilities Cost
Estimate”). The costs will be reflected in the Initial Test Well Completion Cost
Estimate and Initial Test Well Facilities Cost Estimate and are collectively
referred to as the “REDACTED After Casing Point Costs”. All turnkey costs
represented above shall be subject to adjustment based on the differences in rig
rates and maritime vessel day rates used in the calculation of the locked-in
price included in the turnkey contract executed with ADTI.

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2.3.    This Agreement is subject to PetroQuest entering into a turnkey drilling
contract with ADTI for the drilling of the initial test well. Notwithstanding
anything herein to the contrary, however, it is the intent of the parties to
deal in good faith, and accordingly, in no event shall PetroQuest be obligated
to drill, or cause to be drilled, a well under this Agreement in which it makes
a good faith determination that the turnkey bid submitted by ADTI is
unreasonable or uneconomical in PetroQuest’s and CL&F’s sole discretion. This
determination and the consequences thereof shall apply to any well drilled
pursuant to this Agreement.

2.4     Concurrent with the execution of this Participation Agreement,
Participants and Lease Owners agree to execute the Offshore Operating Agreement
attached hereto as Exhibit “C” and dated even with this Agreement, which shall
govern all operations hereunder, to the extent not in conflict with the terms
and provisions of the Agreement. Said Offshore Operating Agreement shall
designate PetroQuest as Operator.

2.5     Notwithstanding anything to the contrary herein, this Participation
Agreement between Lease Owners and Participants is subject to that certain Offer
Letter dated April 24, 2008, as amended by e-mail of April 28, 2008 and Letter
Agreement dated April 29, 2008, by and between Lease Owners and Ridgewood. In
the event of any conflict between the terms and conditions of the Offer Letter,
as amended, and the Participation Agreement, the terms and conditions of the
Offer Letter, as amended, shall prevail.

ARTICLE III

3.1     Participants’ participation in drilling of the Initial Test Well on the
REDACTED Prospect shall be on a promoted basis with each Participant paying its
Before Casing Point Percentage of all costs associated with the drilling of said
well to “Casing Point”, subject to the “Promote Cap” as provided for below.
Subject to each Participant’s election at Casing Point, the After Casing Point
Costs shall be shared and paid for on a “ground floor” basis in accordance with
each Participant’s After Casing Point Percentages. Pursuant to the foregoing and
the other provisions of this Agreement, Participants’ Before Casing Point
Percentages and After Casing Point Percentages for the Initial Test Well and the
Optional Test Well are set forth as follows:

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REDACTED Prospect (Initial Test Well)

 

 

 

 

 

 

 

 

 

 

 

*Before Casing Point Percentage

 

After Casing Point Percentage

 

 

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PETROQUEST

 

 

16.66667

%

 

 

25.00

%

CL&F

 

 

16.66667

%

 

 

25.00

%

RIDGEWOOD

 

 

*53.33333

%

 

 

40.00

%

BAYOU BEND

 

 

*13.33333

%%

 

 

10.00

%

TOTAL

 

 

100.00000

%

 

 

100.00

%

* “Promote Cap” – Participants obligation to pay a disproportionate share of the
Initial Test Well’s drilling well costs provided for above, it’s Before Casing
Point Percentage, shall be limited to and capped at either: 1) the drilling well
costs incurred to reach Casing Point as defined below, or 2) the drilling well
costs incurred up to 110% of the formal AFE DHC estimate, whichever occurs
first. Thereafter, any and all subsequent costs associated with but not limited
to, drilling, completion, hookup, pipeline and/or facilities, or plugging and
abandonment, if applicable, shall be at Participant’s After Casing Point
Percentage.

3.2     Within five (5) days after the receipt of an invoice from PetroQuest and
commencement of drilling operations for the Initial Test Well, the Participants
shall pay to PetroQuest for the benefit of Lease Owners a Prospect Fee as
reimbursement for general leasehold, seismic and prospect generation costs
directly associated with the REDACTED Prospect. Ridgewood (40%) shall pay the
amount of $1,111,542.40 and Bayou Bend (10%) shall pay the amount of $277,855.60
which represents their respective shares of the gross costs of $2,778,856. Said
payments shall be made by electronic wire transfer for the account of PetroQuest
in accordance with wiring instructions to be provided by PetroQuest.

          Upon receipt of a cash call from PetroQuest for the AFE’d Before
Casing Point Costs, Participants shall remit by electronic wire transfer no
later than five (5) days after receipt of PetroQuest’s cash call, the applicable
amount for the account of PetroQuest in accordance with wiring instructions to
be provided by PetroQuest. Late payments shall bear interest at the rate 2% per
month or at such lesser maximum legal interest rates allowed. In the event
Participant’s payments are not received within the times provided herein,
PetroQuest shall send written notice to Participant of its failure to pay and
such notice shall further contain notice that Participant has a 48 hour remedy
period beyond the five (5) day period within which to make the past due payment,
and failure to pay a delinquent cash call shall subject the defaulting Party, at
PetroQuest’s sole discretion, to (1) relinquishment of its rights to earn an
interest in the operation subject to such default, (2) relinquishment of its
interest in subsequent wells not yet earned hereunder, and (3) the automatic
withdrawal from this Agreement for such unearned wells. Interests previously
earned by the defaulting Party shall not be affected. In addition, Lease Owners
shall be entitled to recover monetary damages equal to the defaulting Party’s
respective share of any AFE approved by such Party, together with reasonable
attorney’s fees and court costs to recover same should the matter result in
arbitration and/or litigation. In no event,

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however, shall the Parties ever be liable hereunder to each other for punitive,
consequential or speculative damages as a result of failure to pay a cash call.

          At such time as a Party has proposed the completion of a test well,
received the response of the other Parties, and has entered into a turnkey
completion contract (if applicable) PetroQuest shall be entitled to cash call
the participating Parties in the completion attempt for their After Casing Point
Percentages of the After Casing Point Costs, following the same procedure as
outlined above for cash calling the Before Casing Point Costs, except that a
cash call for a completion operation shall be paid by electronic wire transfer
into the account of PetroQuest within forty eight (48) hours of receiving the
cash call notice, excluding weekends and holidays.

          Any and all other joint expenses incurred under the terms of the
Agreement shall be invoiced to the Participants by PetroQuest and they shall
remit their applicable share of such expenses within 30 days after receipt of
same.

3.3     For the purposes of this Agreement, “Casing Point” is defined as the
point at which the test well has been drilled to the Objective Depth, all
partner approved open hole logging, coring and testing has been conducted, all
drilling and evaluation information has been provided to the participants and a
proposal is made by PetroQuest to either (i) attempt a completion, (ii)
sidetrack the well to another bottom hole location not deeper than the
stratigraphic equivalent of the Objective Depth, (iii) deepen the well or (iv)
plug and abandon the well.

3.4     At such time as Casing Point or the Promote Cap has been reached,
whichever occurs first, then any further drilling necessary to reach Casing
Point, or if having reached Casing Point, any subsequent proposed operation is
made to attempt a completion or conduct another operation in the test well as
described above, the Parties shall each have the right to participate in such
proposal (or other written proposal) in accordance with each Party’s After
Casing Point Percentage, pursuant to the provisions of Section 10.6 of the
Offshore Operating Agreement. Those Parties not participating in a proposal
having priority as provided in Section 10.6 of the Offshore Operating Agreement
shall be deemed to have forever relinquished all of their rights and interest in
the subject test well. In the event less than all of the Parties participate in
the completion of the test well, the Parties participating therein shall
mutually agree as to the sharing of any nonparticipating Party’s interest in the
test well; provided however, the Lease Owners shall proportionately have first
priority to assume and acquire all or a portion of such non-participating
Party’s interest. Notwithstanding the foregoing, all Parties participating in
the completion of the test well shall share the costs of plugging and abandoning
the test well according to each Party’s After Casing Point Percentage ownership
in the completed well. No Party shall be required to take any portion of a
non-participating Party’s interest.

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3.5     Upon the reimbursement by Participants of the Prospect Fee identified in
Article 5.2 hereof, the Lease Owners shall deliver to the Participants, within
ten (10) days of receipt of the Prospect Fee, an assignment conveying an
undivided interest in the Contract Area equal to each the Participant’s After
Casing Point Percentage. Said assignment shall be in accordance with the form
attached hereto as Exhibit “D”. Participants’ rights shall be limited to rights
in the well and production therefrom, subject to the encumbrances listed on
Exhibit “A” hereto, as well as their proportionate share of plugging and
abandonment liability; however, should Participant fail to pay its share of all
dry hole costs incurred to reach the Objective Depth in the Initial Test Well,
it shall immediately re-assign all of its interest in the Contract Area to the
Lease Owners.

          All operations associated with any Additional Well(s) proposed
hereunder shall be governed in accordance with the attached Offshore Operating
Agreement where not in conflict with this Agreement.

3.6     If, prior to reaching the Objective Depth in any test well being drilled
by ADTI under a turnkey drilling contract, ADTI encounters conditions that
prohibit it from reaching Objective Depth in the turnkey drilling contract
(including conditions which would cause the conversion from the turnkey price to
a day-rate price), then in such event the Parties shall have the option of
ceasing further operations and abandoning such well and in such event the
participating Parties shall have the option for 90 days following abandonment of
said well to commence the drilling of a substitute well, to be located and
drilled in such a manner as to test the same geologic prospect that the test
well was designed to encounter (the “Substitute Well”). In such event a Party
participating in the abandoned well shall propose same in writing to the other
participating Parties and they shall each have the option of participating in
the drilling of such Substitute Well with such participation being at their
After Casing Point Percentages. In the event less than all of the Parties
participate in the Substitute Well, the Parties participating therein shall
mutually agree as to the sharing of any non-participating Party’s interest in
the Substitute Well. Any participating Party that does not elect within 15 days
after receipt of a proposal (or 48 hours if a drilling rig continues on location
from the preceding attempt to drill the test well) to participate in the
Substitute Well, shall be deemed to have relinquished all its rights in the
Substitute Well. The Substitute Well shall otherwise be treated for all purposes
in this Agreement as though it were the test well for which it is a substitute.

          In the event any well being drilled under this Agreement through a
turnkey drilling contract with ADTI encounters conditions that would cause the
conversion from the turnkey price to a day-rate price as provided in the turnkey
drilling contract and PetroQuest advises the participating Parties that it
intends to continue drilling the well under a day-rate price, then, in such
event, each participating Party shall have 48 hours after receipt of such notice
to elect whether or not to continue its participation in the well under the
day-rate price. Any Party electing not to continue its participation in the well

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shall remain liable for its share of all costs incurred and/or accrued up to the
time of its election to discontinue its participation. Failure of any Party to
timely make its election shall be deemed to be an election to continue its
participation in the well under the day-rate price.

3.7     THE PARTICIPANTS AND PETROQUEST AND CL&F SHALL SEVERALLY SHARE AND
ASSUME THEIR RESPECTIVE PRORATA SHARES, ACCORDING TO THEIR BEFORE OR AFTER
CASING POINT PERCENTAGES, AS THE CASE MAY BE, OF ANY AND ALL CLAIMS, LOSSES, AND
EXPENSES (INCLUDING, WITHOUT LIMITATION ALL COSTS, DEMANDS, DAMAGES, SUITS,
JUDGMENTS, FINES, PENALTIES, LIABILITIES, DEBTS, ATTORNEYS’ FEES, AND CAUSES OF
ACTION OF WHATSOEVER NATURE OR CHARACTER, WHETHER KNOWN OR UNKNOWN, AND
INCLUDING, WITHOUT LIMITATION, CLAIMS, LOSSES AND EXPENSES FOR PROPERTY DAMAGE,
BODILY INJURY, ILLNESS, DISEASE, DEATH, POLLUTION OR LOSS OF SERVICES, WAGES,
CONSORTIUM OR SOCIETY) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATED TO
PETROQUEST’S OR ITS SUBSIDIARIES’ OR AFFILIATES’ (THE “PETROQUEST GROUP”)
OPERATIONS (INCLUDING OPERATIONS OR SERVICES CONDUCTED BY ANY CONTRACTOR OR
SUBCONTRACTOR ON BEHALF OF PETROQUEST) HEREUNDER, EXPRESSLY INCLUDING ANY
NEGLIGENCE, FAULT OR STRICT LIABILITY (OF WHATEVER NATURE OR CHARACTER) OF THE
PETROQUEST GROUP, BUT EXPRESSLY EXCLUDING THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE PETROQUEST GROUP. NEITHER PARTICIPANT NOR PETROQUEST OR CL&F
SHALL BE BOUND JOINTLY, SEVERALLY OR IN SOLIDO WITH EACH OTHER.

          Except as otherwise provided, the foregoing provision shall survive
the termination of this Agreement or any assignment of interest from PetroQuest.

ARTICLE IV

4.1     Except as otherwise expressly provided herein, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the Parties hereto.

4.2     The Agreement shall have separate and individual application to each
Party to the affect that the Participants, PetroQuest and CL&F shall only be
liable for its individual Before Casing Point Percentage or After Casing Point
Percentage, as the case may be and they shall not as between themselves, by
operation of the Agreement be deemed to be individually and severally liable for
the obligations and duties included herein.

4.3     Participants shall earn an interest in, and be responsible and liable
for, all wells, platforms, facilities, pipelines or other equipment installed on
the Contract Area after the effective date of this agreement. but not for the
REDACTED “A” Platform, test separator and pipeline riser located on REDACTED,
which were in place prior to the effective date of this Agreement. Should the
REDACTED “A” platform, test separator and pipeline riser require any repair or
upgrade in order to flow the REDACTED production to REDACTED, each Participant
will be responsible for its proportionate share thereof.

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4.4     This Agreement, including all Exhibits attached hereto, constitutes the
full and entire understanding and agreement between the Parties relating to the
matters herein, and except as otherwise provided herein, supersedes any previous
agreements or understandings, written or oral, in effect between the Parties
relating hereto. In the event of any conflict between the terms and conditions
of this Agreement and the Offshore Operating Agreement attached hereto as
Exhibit “C”, the terms and conditions of this Agreement shall prevail.

4.5     PetroQuest, as Operator under the Agreement will obtain and continue in
force during the period of operations thereunder, for the benefit of itself and
any Participant so electing in writing within five (5) days after signing the
Offshore Operating Agreement policies of insurance as specified in Exhibit “B”
to the attached Offshore Operating Agreement. Should any Participant elect to
provide its own insurance coverage for some, but not all of the items identified
in Exhibit “B”, Paragraph 2 A-G to the Offshore Operating Agreement, it shall
notify Operator in writing within five (5) days after signing the Offshore
Operating Agreement and prior to commencement of well operations hereunder, and
the Participant shall provide an insurance certificate to PetroQuest to confirm
the equivalent coverages within fifteen (15) days after making its election.
Failure to provide an insurance certificate within the specified time frame will
cause PetroQuest to carry the insurance for the interest of Participant and
invoice Participant for its proportionate share of the cost of insurance.

4.6     This Agreement shall be governed by and construed in accordance with the
laws of the State of Louisiana.

4.7     This Agreement is not intended to and shall not be construed to create
any mining partnership, commercial partnership, any other partnership or an
association for profit between or among the Parties.

4.8     All notices, requests, demands, and other communications provided for or
permitted hereunder shall be in writing (including telex and telecopy
communications) and shall be sent by mail, telex, telecopier or hand delivered
to the address provided in Exhibit “A”. Said notices, requests, demands and
communications shall be effective upon delivery.

4.9     Unless otherwise indicated, references to Article, Section or Subsection
numbers pertain to this Agreement, and references to Exhibits pertain to the
Exhibits attached hereto and incorporated herewith.

4.10   The Parties agree that all geophysical, geological, engineering,
technical, and production tests or other data obtained from all wells drilled
under the Agreement shall be maintained as confidential information for a period
of two (2) years from the effective date

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hereof, or until such information is made public by an appropriate governmental
authority, or unless all Parties agree in writing to a lesser period of time.
Notwithstanding any provision of the Agreement to the contrary, any Party may
disclose without the consent of the other Parties any information (1) to an
outside party with which it is engaged in a bona fide negotiation to contract
for oil or gas sales or transportation agreements, (2) to a governmental agency
when required by such agency, (3) to reputable financial institutions or similar
entities in connection with a bona fide financial transaction, (4) to accredited
engineering firms for the purpose of evaluation on a confidential basis, (5) to
parent, subsidiary, affiliated companies, or its drilling fund investors and (6)
to reputable and financially responsible third parties with whom a party is
engaged in a bona fide effort to (i) sell all or a portion of the subject
property, (ii) effect a merger or consolidation or other transaction in which
such third party proposes to acquire all or a controlling share of the stock in
a party hereto or (iii) purchase all or substantially all of the assets of a
Party hereto or affiliates of Parties hereto; provided that any third party
permitted access to confidential data shall agree in writing not to communicate
such information to anyone and shall further agree to make no use of such
information adverse to the Parties hereto within the area covered by such
information during the period of time such information remains confidential
hereunder.

4.11     PetroQuest shall provide the participating Parties with daily drilling
information and a copy of all logs and other test information from the Test Well
by sending such information to the representatives of each participating Parties
designated for receipt of such information.

4.12     All obligations imposed on each Party, except for payment of money for
liabilities and costs either incurred or accrued, shall be suspended and all
periods of time for exercising any rights hereunder shall be extended while
compliance is prevented, in whole or in part, by Force Majeure. “Force Majeure”
shall mean a labor dispute; explosion; fire; storm; flood; war; civil
disturbance; act of God; laws; governmental rules, regulations, orders, action
or delay; inability to secure materials after reasonable efforts; or any other
similar cause beyond the reasonable control of the Party claiming relief
hereunder; provided, however, that such Party shall promptly take all reasonable
action to remove the Force Majeure, and provided further, that no Party shall be
required against its will to settle any labor dispute.

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IN WITNESS WHEREOF, THIS AGREEMENT IS MADE EFFECTIVE AS OF THE DATE FIRST ABOVE
WRITTEN.

 

 

 

 

 

WITNESS:

 

 

PETROQUEST ENERGY, L.L.C.

 

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Print Name:

 

 

 

 

 

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Print Name:

 

 

By:

Bryan D. Martiny

 

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Title: 

General Manager - Land

 

 

 

 

 

WITNESS:

 

 

CL&F RESOURCES LP

 

 

 

By: Piquant, Inc., its General Partner

 

 

 

 

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Print Name:

 

 

 

 

 

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Print Name:

 

 

By:

C. O. Bolt

 

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Title: 

President

 

 

 

 

WITNESS:

 

 

RIDGEWOOD ENERGY CORPORATION

 

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Print Name:

 

 

 

 

 

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Print Name:

 

 

By:

 

 

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Title:

 

 

 

 

 

 

WITNESS:

 

 

BAYOU BEND OFFSHORE, LTD.

 

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Print Name:

 

 

 

 

 

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Print Name:

 

 

By:

 

 

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Title:

 

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STATE OF LOUISIANA
PARISH OF LAFAYETTE

          BEFORE ME, on this ____day of _____________, 2008 the undersigned
Notary Public, on this day personally appeared Bryan D. Martiny, who, being by
me duly sworn, did say that he is the General Manager - Land for PetroQuest
Energy, L.L.C. and that said instrument was signed in behalf of said limited
liability company by authority of its Board of Directors and said Bryan D.
Martiny acknowledged said instrument to be the free act and deed of said limited
liability company.

 

 

 

 

 

 

 

 

 

 

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Notary Public

 

 

 

 

 

My commission Expires

 

 

 

 

 

 

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STATE OF

 

 

 

 

 

 

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COUNTY OF

 

 

 

 

 

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BEFORE ME, on this ____day of _______, 2008, the undersigned Notary Public, on
this day personally appeared ________________, who being by me duly sworn, did
say that he is the __________________ of _____________________ and that said
instrument was signed in behalf of said corporation by authority of its Board of
Directors and said _____________________ acknowledged said instrument to be the
free act and deed of said corporation.

 

 

 

 

 

 

 

 

 

 

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Notary Public

 

 

 

 

 

My Commission Expires

 

 

 

 

 

 

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STATE OF

 

 

 

 

 

 

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COUNTY OF

 

 

 

 

 

 

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BEFORE ME, on this ____day of _______, 2008, the undersigned Notary Public, on
this day personally appeared ________________, who being by me duly sworn, did
say that he is the __________________ of _____________________ and that said
instrument was signed in behalf of said corporation by authority of its Board of
Directors and said _____________________ acknowledged said instrument to be the
free act and deed of said corporation.

 

 

 

 

 

 

 

 

 

 

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Notary Public

 

 

 

 

 

My Commission Expires

 

 

 

 

 

 

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STATE OF

 

 

 

 

 

 

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COUNTY OF

 

 

 

 

 

 

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BEFORE ME, on this ____day of _______, 2008, the undersigned Notary Public, on
this day personally appeared ________________, who being by me duly sworn, did
say that he is the __________________ of _____________________ and that said
instrument was signed in behalf of said corporation by authority of its Board of
Directors and said _____________________ acknowledged said instrument to be the
free act and deed of said corporation.

 

 

 

 

 

 

 

 

 

 

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Notary Public

 

 

 

 

 

My Commission Expires

 

 

 

 

 

 

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EXHIBIT “A”

Attached to and made a part of that certain Participation Agreement,
dated May 1, 2008, by and between PetroQuest Energy, L.L.C., CL&F Resources LP,
Ridgewood Energy Corporation and Bayou Bend Offshore, Ltd., covering
REDACTED Prospect

 

 

I.

CONTRACT AREA: Those certain Federal Oil and Gas Leases described as follows:

 

 

 

REDACTED

 

 

 

CONTRACT AREA ENCUMBRANCES:

 

 

 

REDACTED

 

 

II.

ADDRESSES OF THE PARTIES:

 

 

 

PETROQUEST ENERGY, L.LC.

 

400 E. Kaliste Saloom Road, Suite 6000

 

Lafayette, LA 70508

 

Attn: Peter Gulotta, Jr.

 

Phone: (337) 232-7028

 

Fax: (337) 234-4699

 

 

 

CL&F Resources LP

 

450 Gears Road, Suite 700

 

Houston, Texas 77067-4534

 

Attn: Tammy Willis

 

Phone: 281-873-3021

 

Fax: 281-872-4398

 

 

 

Ridgewood Energy Corporation

 

11700 Old Katy Road, Suite 280

 

Houston, Texas 77079

 

Attn: Mr. W. Greg Tabor

 

Phone: 281-293-8449

 

Fax: 281-293-7705

 

 

 

Bayou Bend Offshore, Ltd.

 

228 St. Charles Avenue, Suite 724

 

New Orleans, Louisiana 70130

 

Attn: Mr. William J. Dwyer

 

Phone: 504-561-1151

 

Fax: 504-561-1153

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EXHIBIT “B”

WELL COST ESTIMATES

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EXHIBIT “C”

JOINT OPERATING AGREEMENT

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EXHIBIT “D”

Form of ASSIGNMENT