LEASE
and WELL PURCHASE AGREEMENT


 


 


 


MONROE LEASE
with THREE OIL WELLS located in


 


MONROE COUNTY,
KENTUCKY


 


Total Acreage:
500 +/- acres


  


 


THIS
Purchase Agreement is made and entered into on this 5th day of October 2015, by and between the undersigned, SUPERNOVA
ENERGY, whose address is 265 Sunrise Hwy STE 1-276 Rockville Centre, New York 11570, hereinafter referred to as “SUPERNOVA”,
and OMR Drilling and Acquisition LLC, a Kentucky corporation, whose address is 5405 S. Highway 127, Albany, Kentucky, hereinafter
referred to as “OMR DRILLING”.


 





 


WITNESSETH


 


 


WHEREAS,
OMR DRILLING owns a certain Oil, Gas and Mineral Lease and three oil wells (the “Lease”)
in and to lands situated in the counties and states noted hereinabove in an area known to the parties hereto by the project
name noted hereinabove; and,


 


WHEREAS,
SUPERNOVA desires to purchase 50% of said lease and wells.


 


NOW,
THEREFORE, in consideration of the premises, the parties hereto do hereby agree and stipulate as follows, to-wit:


 


		1.	SUPERNOVA
                                         agrees to pay to OMR DRILLING the amount of $135,000 in order to purchase a 50% working
                                         interest and a 37.5% net revenue interest in the three existing wells and in the remaining
                                         undeveloped portions of the lease.



 


		2.	OMR
                                         DRILLING agrees to carry SUPERNOVA’S share of the operation and maintenance expenses
                                         associated with the operation of the three wells for the first twelve months of ownership.



 


 


		3.	OMR
                                         DRILLING covenants to keep the location(s) free and clear of liens and encumbrances arising
                                         out of operations, and to provide reasonable amounts of insurance as required by the
                                         State of Kentucky. OMR DRILLING shall be liable to SUPERNOVA only for gross negligence
                                         or intentional acts which might prove to be the proximate cause of any loss to SUPERNOVA.
                                         Any loss which may be caused by an
act of God (force majeure) or caused by any force or reason beyond the control of OMR DRILLING shall not create any liability
upon either party beyond its, proportionate share of any location or well ownership. In the event of such loss, both parties agree
to pay their proportionate share of liability from the proceeds of oil and/or gas sales from the subject well(s) to settle claims,
or losses, as a result of the operation of the properties. Each of the parties shall always have the right and privilege of receiving
in kind, or separately disposing of its’ share of oil and/or gas production. Any extra expenses incurred by reason of separate
disposition, or taking in kind, or its’ share of production, by either party privileges and obligations of this contract
shall be assumed by any Third Party receiving SUPERNOVA’s working interest through assignment or transfer. 






 


4.     
SUPERNOVA does hereby constitute and appoint OMR DRILLING as its agent, attorney in fact, to negotiate and contract for the sale
of oil and/or gas, and to receive and disburse proceeds of sale, including the power to deduct normal and reasonable operation
expense.


 



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5.     
SUPERNOVA shall have access to the Lease Well at all reasonable times for the purpose of inspection and observation.


 


6.     
SUPERNOVA agrees and accepts the conditions of this Agreement and further acknowledges that the oil and gas business is inherently
risky and that all or part of any investment on this project may be lost. With this in mind, OMR DRILLING makes no representation
or guarantee regarding any amount of possible oil or gas production or the numerous risks in connection with an investment in
this project. SUPERNOVA further states that it can withstand the total loss of investment without causing a change in lifestyle.


 


7.     
This Agreement embodies the entire agreement between the parties hereto, and supersedes any and all prior negotiations or agreements
in regard thereto. No alteration or extensions of this Agreement shall be binding unless in writing and signed by the parties
hereto.


 


		8.	The
                                         parties hereto acknowledge that they have read the above and foregoing Agreement thoroughly,
                                         that there has been adequate opportunity to consult legal counsel concerning this Agreement
                                         and that they have executed the same freely and voluntarily on the date hereof.






 


 


IN
WITNESS WHEREOF, this Agreement has been agreed to and signed by each of the parties hereto, as of the day first above written.


 


 


SUPERNOVA
ENERGY


 


BY:
_________________________________


 


Kevin
Malone, President and Sole Director


 


 


 


 


OMR
Drilling and Acquisition, LLC.


 


 


 


BY:
_________________________________


NICHOLAS
A. UPCHURCH


MANAGING
MEMBER


 


 


 


 


 


 


 




 



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