| ·   | Portions of this exhibit have been omitted pursuant to a request for confidential treatment according to Rule 24b-2 of the Securities and Exchange Act of 1934, as amended.   Non-public information has been filed with the Securities and Exchange Commission. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Article 1. Definitions and Rules of Construction                  |   |   | 1                                                          |   |
|-------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|
|                                                              | 1.1    |   | Definitions                                                |   |   | 1 |   |
|                                                              | 1.2    |   | Rules of Construction                                      |   |   | 8 |   |
| Article 2. Purchase and Sale; Closing                             |   |   | 9                                                          |   |
|                                                              | 2.1    |   | Purchase and Sale of Interests                             |   |   | 9 |   |
|                                                              | 2.2    |   | Consideration                                              |   |   | 9 |   |
|                                                              | 2.3    |   | Performance Deposit                                        |   |   | 9 |   |
|                                                              | 2.4    |   | Closing Payment                                            |   |   | 9 |   |
|                                                              | 2.5    |   | Closing Statement                                          |   |   | 10 |   |
|                                                              | 2.6    |   | Closing Deposits                                           |   |   | 10 |   |
|                                                              | 2.7    |   | Repayment of Company Indebtedness                          |   |   | 10 |   |
|                                                              | 2.8    |   | Closing                                                    |   |   | 10 |   |
|                                                              | 2.9    |   | Post-Closing Adjustment.                                   |   |   | 10 |   |
|                                                              | 2.10   |   | Purchase Price Allocation                                  |   |   | 12 |   |
| Article 3. Representations and Warranties Relating to Seller      |   |   | 13                                                         |   |
|                                                              | 3.1    |   | Organization of Seller                                     |   |   | 13 |   |
|                                                              | 3.2    |   | Authorization; Enforceability                              |   |   | 13 |   |
|                                                              | 3.3    |   | Ownership of Interests                                     |   |   | 13 |   |
| Article 4. Representations and Warranties Relating to the Company |   |   | 14                                                         |   |
|                                                              | 4.1    |   | Organization                                               |   |   | 14 |   |
|                                                              | 4.2    |   | No Conflict; Consents                                      |   |   | 14 |   |
|                                                              | 4.3    |   | Capitalization                                             |   |   | 14 |   |
|                                                              | 4.4    |   | Litigation                                                 |   |   | 15 |   |
|                                                              | 4.5    |   | Financial Statements                                       |   |   | 15 |   |
|                                                              | 4.6    |   | Absence of Certain Charges                                 |   |   | 16 |   |
|                                                              | 4.7    |   | Taxes                                                      |   |   | 16 |   |
|                                                              | 4.8    |   | Contracts                                                  |   |   | 16 |   |
|                                                              | 4.9    |   | Employee  Matters                                     |   |   | 17 |   |
|                                                              | 4.10   |   | Environmental Matters                                      |   |   | 18 |   |
|                                                              | 4.11   |   | Compliance with Laws; Permits                              |   |   | 18 |   |
|                                                              | 4.12   |   | Insurance                                                  |   |   | 19 |   |
|                                                              | 4.13   |   | Brokers' Fees                                              |   |   | 19 |   |
|                                                              | 4.14   |   | Lease Ownership                                            |   |   | 19 |   |
|                                                              | 4.15   |   | Bonds, Letters of Credit, Guarantees and Security Deposits |   |   | 19 |   |
|                                                              | 4.16   |   | Imbalances                                                 |   |   | 19 |   |
| Article 5. Representations and Warranties Relating to Buyer       |   |   | 19                                                         |   |
|                                                              | 5.1    |   | Organization of Buyer                                      |   |   | 19 |   |
|                                                              | 5.2    |   | Authorization; Enforceability                              |   |   | 19 |   |
|                                                              | 5.3    |   | No Conflict; Consents                                      |   |   | 20 |   |
|                                   | 5.4    |   | Litigation                                                                 |   |   | 20 |   |
|----------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|----|--------|
|                                   | 5.5    |   | Brokers’ Fees                                                        |   |   | 20 |   |
|                                   | 5.6    |   | Financial Ability                                                          |   |   | 20 |   |
|                                   | 5.7    |   | Securities Law Compliance                                                  |   |   | 20 |   |
|                                   | 5.8    |   | Buyer’s Independent Investigation                                    |   |   | 20 |   |
| Article 6. Covenants                   |   |   | 21                                                                         |   |
|                                   | 6.1    |   | Conduct of Business                                                        |   |   | 21 |   |
|                                   | 6.2    |   | Transferred and Terminated Contracts                                       |   |   | 23 |   |
|                                   | 6.3    |   | Access and Title Examination                                               |   |   | 23 |   |
|                                   | 6.4    |   | Third Party Approvals                                                      |   |   | 23 |   |
|                                   | 6.5    |   | Regulatory Filings                                                         |   |   | 23 |   |
|                                   | 6.6    |   | Books and Records                                                          |   |   | 24 |   |
|                                   | 6.7    |   | Use of Hilcorp Marks                                                       |   |   | 25 |   |
|                                   | 6.8    |   | Insurance                                                                  |   |   | 25 |   |
|                                   | 6.9    |   | Tag Along Rights                                                           |   |   | 26 |   |
|                                   | 6.1    |   | Company                                                                    |   |   | 26 |   |
|                                   | 6.11   |   | Company Indebtedness                                                       |   |   | 26 |   |
|                                   | 6.12   |   | Further Assurances                                                         |   |   | 27 |   |
|                                   | 6.13   |   | Fees and Expenses                                                          |   |   | 27 |   |
|                                   | 6.14   |   | Continuation of Operatorship                                               |   |   | 27 |   |
|                                   | 6.15   |   | Cooperation with Respect to Financial Statements                           |   |   | 27 |   |
|                                   | 6.16   |   | Replacement of Bonds, Letters of Credit, Guarantees, and Security Deposits |   |   | 27 |   |
|                                   | 6.17   |   | Data Transfer                                                              |   |   | 28 |   |
|                                   | 6.18   |   | Restricted Area                                                            |   |   | 28 |   |
|                                   | 6.19   |   | Non-Solicitation                                                           |   |   | 28 |   |
|                                   | 6.20   |   | April 2011 Balance Sheet                                                   |   |   | 29 |   |
|                                   | 6.21   |   | Extension of Management Agreement                                          |   |   | 29 |   |
| Article 7. Tax Matters                 |   |   | 29                                                                         |   |
|                                   | 7.1    |   | Responsibility for Filing Tax Returns and Paying Taxes                     |   |   | 29 |   |
|                                   | 7.2    |   | Responsibility for Tax Audits                                              |   |   | 29 |   |
|                                   | 7.3    |   | Tax Refunds                                                                |   |   | 30 |   |
|                                   | 7.4    |   | Transfer Taxes                                                             |   |   | 30 |   |
|                                   | 7.5    |   | Tax Treatment of Indemnities                                               |   |   | 30 |   |
|                                   | 7.6    |   | Survival and Conflict.                                                     |   |   | 30 |   |
| Article 8. Conditions to Closing       |   |   | 30                                                                         |   |
|                                   | 8.1    |   | Conditions to Obligations of Buyer to Closing                              |   |   | 30 |   |
|                                   | 8.2    |   | Conditions to the Obligations of Seller to Closing                         |   |   | 31 |   |
| Article 9. Indemnification and Waivers |   |   | 32                                                                         |   |
|                                   | 9.1    |   | Indemnification                                                            |   |   | 32 |   |
|                                   | 9.2    |   | Limitations on Liability                                                   |   |   | 33 |   |
|                                   | 9.3    |   | Procedures                                                                 |   |   | 34 |   |
|                                   | 9.4    |   | Waiver of Consequential Damages                                            |   |   | 36 |   |
|                                   | 9.5    |   | Waivers and Disclaimers                                                    |   |   | 36 |   |
|                         | 9.6    |   | Exclusive Remedy and Release |   |   | 37 |   |
|------------------------------|--------|--------|------------------------------|--------|--------|----|--------|
| Article 10. Termination      |   |   | 37                           |   |
|                         | 10.1   |   | Termination                  |   |   | 37 |   |
|                         | 10.2   |   | Effect of Termination        |   |   | 39 |   |
| Article 11. Other Provisions |   |   | 39                           |   |
|                         | 11.1   |   | Notices                      |   |   | 39 |   |
|                         | 11.2   |   | Assignment                   |   |   | 40 |   |
|                         | 11.3   |   | Rights of Third Parties      |   |   | 40 |   |
|                         | 11.4   |   | Counterparts                 |   |   | 40 |   |
|                         | 11.5   |   | Entire Agreement             |   |   | 41 |   |
|                         | 11.6   |   | Disclosure Schedule          |   |   | 41 |   |
|                         | 11.7   |   | Amendments                   |   |   | 41 |   |
|                         | 11.8   |   | Publicity                    |   |   | 41 |   |
|                         | 11.9   |   | Severability                 |   |   | 41 |   |
|                         | 11.1   |   | Specific Performance         |   |   | 42 |   |
|                         | 11.11  |   | Governing Law; Jurisdiction  |   |   | 42 |   |

| Exhibits:        |                                                       |
|------------------|------------------------------------------------------------|
|             |                                                       |
| Exhibit A-1      | Assignment Agreement                                       |
| Exhibit A-2      | Performance Deposit Escrow Agreement                       |
| Exhibit A-3      | Indemnity Deposit Escrow Agreement                         |
| Exhibit A-4      | Title Defect Deposit Escrow Agreement                      |
| Exhibit B        | Title Defects Procedures                                   |
| Exhibit C-1      | Leases                                                     |
| Exhibit C-2      | Company Assets                                             |
| Exhibit C-3      | Carried Interest Agreement                                 |
| Exhibit D        | Wells                                                      |
| Exhibit E        | Interim Operations Plan                                    |
|             |                                                       |
| Schedules:       |                                                       |
|             |                                                       |
| Schedule 1.1     | Knowledge of Seller                                        |
| Schedule 3.3     | Ownership of Interests                                     |
| Schedule 4.2     | No Conflict; Consents                                      |
| Schedule 4.4     | Litigation                                                 |
| Schedule 4.5     | Financial Statements                                       |
| Schedule 4.6     | Absence of Certain Changes                                 |
| Schedule 4.7     | Taxes                                                      |
| Schedule 4.8     | Material Contracts                                         |
| Schedule 4.10    | Environmental Matters                                      |
| Schedule 4.11(a) | Compliance with Laws                                       |
| Schedule 4.12    | Insurance                                                  |
| Schedule 4.15    | Bonds, Letters of Credit, Guarantees and Security Deposits |
| Schedule 6.2(a)  | Transferred Contracts                                      |
| Schedule 6.2(b)  | Agreements to be Terminated                                |
| Schedule 6.10    | Tag Along Rights                                           |
| Schedule 6.17    | Property Records Delivery Schedule                         |

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2.3

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4.4

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