**PURCHASE        AND SALE AGREEMENT**

**BY        AND BETWEEN**

**RAVEN        RESOURCES, LLC, AS SELLER**

**AND**

**LEGACY        RESERVES OPERATING LP, AS BUYER**

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| 1.  | SALE                              AND PURCHASE OF THE ASSETS.                          | 1  |
|-----|----------------------------------------------------------------------------------------|----|
| 1.1 | Acquired                              Assets                                           | 1  |
| 1.2 | Assumed                              Liabilities                                       | 2  |
| 2.  | PURCHASE                              PRICE.                                           | 3  |
| 2.1 | Purchase                              Price                                            | 3  |
| 2.2 | Deposit.                                                                               | 3  |
| 2.3 | Adjustments                              to the Base Purchase Price                    | 3  |
| 2.4 | Allocation                                                                             | 4  |
| 3.  | CLOSING.                                                                               | 4  |
| 3.1 | Closing                                                                                | 4  |
| 3.2 | Delivery                              by Seller                                        | 5  |
| 3.3 | Delivery                              by Buyer                                         | 5  |
| 3.4 | Further                              Cooperation                                       | 5  |
| 4.  | ACCOUNTING                              ADJUSTMENTS.                                   | 6  |
| 4.1 | Closing                              Adjustments                                       | 6  |
| 4.2 | Strapping                              and Gauging.                                    | 6  |
| 4.3 | Taxes                                                                                  | 6  |
| 4.4 | Post-Closing                              Adjustments                                  | 7  |
| 4.5 | Suspended                              Funds                                           | 7  |
| 4.6 | Audit                              Adjustments                                         | 8  |
| 4.7 | Cooperation                                                                            | 8  |
| 5.  | DUE                              DILIGENCE: TITLE MATTERS.                             | 8  |
| 5.1 | General                              Access                                            | 8  |
| 5.2 | Defensible                              Title                                          | 8  |
| 5.3 | Defect                              Letters.                                           | 10 |
| 5.4 | Effect                              of Title Defect                                    | 12 |
| 5.5 | Preferential                              Rights and Consents.                         | 13 |
| 6.  | ENVIRONMENTAL                              ASSESSMENT.                                 | 15 |
| 6.1 | Physical                              Condition of the Assets                          | 15 |
| 6.2 | Inspection                              and Testing.                                   | 15 |
| 6.3 | Notice                              of Adverse Environmental Conditions                | 16 |
| 6.4 | Rights                              and Remedies for Adverse Environmental Conditions. | 17 |
| 6.5 | Remediation                              by Seller                                     | 18 |
| 7.  | REPRESENTATIONS                              AND WARRANTIES OF SELLER.                 | 19 |
| 7.1 | Seller’s                              Representations and Warranties             | 19 |
| 7.2 | Scope                              of Representations of Seller.                       | 21 |
| 8.  | REPRESENTATIONS                              AND WARRANTIES OF BUYER.                  | 22 |
| 8.1 | Buyer’s                              Representations and Warranties              | 22 |
| 9.  | CERTAIN                              AGREEMENTS OF SELLER                              | 23 |
| 9.1 | Maintenance                              of Assets                                     | 23 |
| 9.2 | Records                                                                                | 24 |
| 9.3 | Audit                              Rights.                                             | 25 |

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| 10.   | CERTAIN                            AGREEMENTS OF BUYER                       | 25 |
|-------|------------------------------------------------------------------------------|----|
| 10.1  | Plugging                            Obligation                               | 25 |
| 10.2  | Plugging                            Bond                                     | 25 |
| 10.3  | Seller’s                            Logos                              | 25 |
| 10.4  | Like-Kind                            Exchanges                               | 26 |
| 11.   | CONDITIONS                            PRECEDENT TO OBLIGATIONS OF BUYER      | 26 |
| 11.1  | No                            Litigation                                     | 26 |
| 11.2  | Representations                            and Warranties                    | 26 |
| 12.   | CONDITIONS                            PRECEDENT TO THE OBLIGATIONS OF SELLER | 26 |
| 12.1  | No                            Litigation                                     | 26 |
| 12.2  | Representations                            and Warranties                    | 26 |
| 13.   | TERMINATION.                                                                 | 26 |
| 13.1  | Causes                            of Termination                             | 26 |
| 13.2  | Effect                            of Termination.                            | 27 |
| 14.   | INDEMNIFICATION.                                                             | 28 |
| 14.1  | Indemnification                            by Seller                         | 28 |
| 14.2  | Indemnification                            by Buyer                          | 30 |
| 14.3  | Physical                            Inspection                               | 30 |
| 14.4  | Notification                                                                 | 31 |
| 15.   | MISCELLANEOUS.                                                               | 31 |
| 15.1  | Casualty                            Loss.                                    | 31 |
| 15.2  | Confidentiality.                                                             | 32 |
| 15.3  | Notices                                                                      | 32 |
| 15.4  | Press                            Releases and Public Announcements           | 33 |
| 15.5  | Compliance                            with Express Negligence Test           | 33 |
| 15.6  | Governing                            Law                                     | 33 |
| 15.7  | Exhibits                                                                     | 33 |
| 15.8  | Fees,                            Expenses, Taxes and Recording.              | 34 |
| 15.9  | Assignment                                                                   | 34 |
| 15.10 | Entire                            Agreement                                  | 34 |
| 15.11 | Severability                                                                 | 34 |
| 15.12 | Captions                                                                     | 35 |
| 15.13 | Time                            of the Essence                               | 35 |
| 15.14 | Counterpart                            Execution                             | 35 |

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| 1.1(A) | Oil                        and Gas Leases and Land               |
|--------|------------------------------------------------------------------|
| 2.4    | Allocation                                                       |
| 3.2(A) | Form                        of Assignment and Bill of Sale       |
| 7.1(E) | AFE’s                                                      |
| 7.1(G) | Pending                        Litigation                        |
| 7.1(K) | Material                        Agreements                       |
| 7.1(L) | Consents                        and Preferential Purchase Rights |
| 7.1(M) | Gas                        Imbalances                            |

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| A. | Seller                  desires to sell to Buyer certain oil, gas and mineral properties                  and other                  assets on the terms and conditions set forth in this                  Agreement. |
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| B. | Buyer                  desires to purchase from Seller such oil, gas and mineral properties                  and                  other assets on the terms and conditions set forth in this                  Agreement. |
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| (A) | All                  of Seller’s right, title, interest and obligations in, to and under the                  oil and gas leases described in Exhibit 1.1(A) attached hereto (the                  “Leases”), covering the land described in Exhibit 1.1(A) (the                  “Land”), whether or not such interests or land are accurately or                  completely described on Exhibit 1.1(A), and all of Seller’s oil and                  gas leasehold or other interests in the Lands, together with all                  the                  property and rights incident thereto, including without limitation                  Seller’s rights and obligations in, to and under all operating agreements;                  pooling, communitization and unitization agreements; farmout agreements;                  joint venture agreements; product purchase and sale contracts;                  transportation, processing, treatment or gathering agreements;                  leases;                  permits (the “Permits”); rights-of-way (the “Rights-of-Way”); surface use                  agreements; surface leases; easements (the “Easements”); licenses;                  options; declarations; orders; contracts; and instruments in any                  way                  relating to the Leases; |
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| (B) | All                  of Seller’s right, title and interest in and to the wells (“Wells”)                  situated on or used in conjunction with operations on the Leases                  and Land                  or on land pooled, communitized or unitized therewith (“Pooled Land”),                  together with all of Seller’s interests in and to all of the personal                  property, fixtures, improvements and other property, whether real,                  personal or mixed, now or as of the Effective Time on, appurtenant                  to or                  used or obtained by Seller in connection with the Leases, Land,                  Pooled                  Land or Wells or with the production, injection, treatment, sale                  or                  disposal of hydrocarbons and all other substances produced therefrom                  or                  attributable thereto (collectively, the “Equipment”), including, without                  limitation, producing and non-producing wells, injection wells,                  disposal                  wells, water supply wells, well equipment, casing, tubing, tanks,                  generators, boilers, buildings, pumps, motors, machinery, pipelines,                  gathering systems, power lines, telephone and telegraph lines,                  roads,                  field processing plants, field offices and other furnishings related                  thereto, equipment leases, trailers, inventory in storage, storage                  yards,                  and all other improvements or appurtenances thereunto                  belonging; |
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| (C) | Deleted; |
|-----|----------|

| (D) | All                  of the oil and gas and associated hydrocarbons (“Oil and Gas”) in and                  under or otherwise attributable to the Leases, Land, and Pooled                  Land or                  produced from the Wells; |
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| (E) | To                  the extent assignable, all governmental permits, licenses and                  authorizations, as well as any applications for the same, related                  to the                  Leases, Land, Pooled Land and Wells or the use thereof;                  and |
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| (F) | All                  of the files, records, and data of Seller relating to the items                  described                  in subsections (A), (B), (C), (D) and (E) above (the “Records”),                  including, without limitation, lease records, well records, and                  division                  order records; well files and prospect files; title records (including                  abstracts of title, title opinions and memoranda, and title curative                  documents related to the Leases and Wells); contracts and contract                  files;                  correspondence; computer data files; micro-fiche data files; geological,                  geophysical and seismic records, interpretations, data, maps and                  information, production records, electric logs, core data, pressure                  data,                  decline curves and graphical production curves; and accounting                  records, to                  the extent only that the Records can be transferred without violation                  of                  any third-party restriction and are not protected by Seller’s                  attorney-client privilege.  The Records do not include any                  appraisals or other evaluation materials related to Seller’s preparation                  of the Assets for sale hereunder, any reservoir and/or development                  studies                  prepared by or on behalf of Seller, nor any of Seller’s income tax returns                  or files related thereto. |
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| (A) | The                  Base Purchase Price shall be adjusted upward                  by: |
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|   | (ii) | Property                  Taxes and Severance Taxes related to the Assets paid by Seller                  for the                  period following the Effective Time as determined pursuant to Section                  4.3; |
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|   | (iii) | an                  amount equal to the costs, expenses and other expenditures (whether                  capitalized or expensed) paid by Seller in accordance with this                  Agreement                  that are attributable to the Assets for the period from and after                  the                  Effective Time; |
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|   | (iv) | for                  all operated wells, a monthly rate of $400, prorated if necessary,                  per                  active Well, as provided in the applicable operating agreement,                  for                  operation and maintenance expenses (excluding workover costs, plugging                  and                  abandoning costs, and major costs) incurred by Seller while operating                  the                  Assets from and after the Effective                  Time; |
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|   | (v) | an                  amount equal to the amount of proceeds derived from the sale of                  Oil and                  Gas, net of royalties and severance taxes paid by Buyer, actually                  received                  by Buyer and directly attributable to the Wells which are, in accordance                  with generally accepted accounting procedures, attributable to                  the period                  of time prior to the Effective                  Time; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | any                  other amount agreed upon in writing by Seller and                  Buyer. |
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| (B) | The                  Base Purchase Price shall be adjusted downward                  by: |
|-----|------------------------------------------------------------------------------------------|

|   | (i) | an                  amount equal to the amount of proceeds derived from the sale of                  Oil and                  Gas, net of royalties and severance taxes paid by Seller, actually                  received by Seller and directly attributable to the Wells which                  are, in                  accordance with generally accepted accounting procedures, attributable                  to                  the period of time from and after the Effective                  Time; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (ii) | an                  amount equal to all expenditures, liabilities and costs relating                  to the                  Assets (other than Taxes related to the Assets) that are unpaid                  as of the                  Closing Date and assessed for or attributable to periods of time                  or the                  ownership of production prior to the Effective Time regardless                  how such                  expenditures, liabilities and costs are calculated provided that                  to the                  extent the actual amounts cannot be determined prior to the agreement                  of                  Buyer and Seller with respect to the Closing Adjustment Statement,                  a                  reasonable estimate of such expenditures, liabilities and costs                  shall be                  used (and to such extent Buyer shall assume the liability and                  responsibility for payment                  therefor); |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | all                  amounts related to Title Defects as determined pursuant to Section                  5.4,                  consents and preferential rights as determined pursuant to Section                  5.6,                  Adverse Environmental Conditions as determined pursuant to Section                  6.4,                  Exclusion Adjustments as determined pursuant to Sections 5.6 or                  6.4, and                  Casualty Losses as determined pursuant to Section                  15.1; |
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|   | (iv) | Property                  Taxes and Severance Taxes related to the Assets to be paid by Seller                  for                  the period prior to the Effective Time as determined pursuant to                  Section                  4.3; and |
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| (C) | Seller                  shall have the right to collect any receivable, refund or other                  amounts                  associated with periods prior to the Effective Time.  To the                  extent that Buyer collects any such receivable, refund or other                  amounts,                  then Buyer shall promptly remit any such amounts to                  Seller. |
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| (A) | A                  separate Assignment and Bill of Sale executed by each Seller,                  substantially in the form attached hereto as Exhibit 3.2(A),                  effecting the sale, transfer, conveyance and assignment of the                  Assets,                  with (i) a special warranty of the real property title by, through                  and under such Seller but not otherwise, and (ii) with all personal                  property and fixtures conveyed “AS IS, WHERE IS,” with no warranties                  whatsoever, express, implied or                  statutory. |
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| (B) | Any                  governmental forms required to effect transfer in accordance with                  applicable regulations; |
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| (C) | Letters                  in lieu of transfer orders instructing purchasers of production                  to pay to                  Buyer the proceeds of sales of Oil and Gas from the                  Assets; |
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| (D) | Executed                  change of operator forms as required by applicable governmental                  regulation; |
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| (E) | Releases                  of the mortgages in favor of any bank that may be currently encumbering                  the Assets; |
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| (F) | The                  Closing Adjustment Statement; |
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| (G) | A                  Non-Foreign Affidavit of each                  Seller; |
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| (H) | Possession                  of the Records and all other                  Assets. |
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| (I) | Letters                  of resignation as operator of these Assets, as appropriate, along                  with                  ballot forms to the partners as directed by the operating                  agreements. |
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| (A) | Property                  Taxes.  All ad valorem taxes, real property taxes, personal                  property taxes and similar obligations assessed on the Assets (“Property                  Taxes”) shall be apportioned as of the Effective Time between Buyer and                  Seller.  Buyer shall file or cause to be filed all required                  reports and returns incident to Property Taxes which are due on                  or after                  the Closing, and shall pay or cause to be paid to the taxing authorities                  all such taxes reflected on such reports and returns.  The                  Post-Closing Adjustment Statement shall settle all liability for                  Property                  Taxes, using estimates based on previous assessments to the extent                  current                  assessments are not known. |
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| (B) | Sales                  Taxes, Filing Fees, Etc. The Base Purchase Price is net of any sales                  taxes or other transfer taxes.  Buyer shall be liable for any                  sales tax or other transfer tax as well as any applicable conveyance,                  transfer and recording fees, and real estate transfer stamp or                  taxes                  imposed upon the sale pursuant to this Agreement.  If Seller is                  required by applicable state law to report and pay these taxes                  or fees,                  Buyer shall promptly reimburse Seller in full payment of the                  invoice. |
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| (C) | Severance                  Taxes.  All production, severance or excise taxes,                  conservation fees and other similar such taxes or fees (other than                  income                  taxes) payable on a current basis with respect to Oil and Gas produced                  and                  sold from the Assets (“Severance Taxes”) shall be borne by Seller to the                  extent the production on which such taxes are based occurs during                  Seller’s                  ownership prior to the Effective Time and shall be borne by Buyer                  to the                  extent such production occurs after the Effective                  Time. |
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| (A) | A                  post-closing adjustment statement (the “Post-Closing Adjustment                  Statement”) based on the actual income and expenses shall be prepared and                  delivered by Seller to Buyer within ninety (90) days after the                  Closing,                  proposing further adjustments to the calculation of the Purchase                  Price                  based on the information then available.  Seller or Buyer, as                  the case may be, shall be given access to and shall be entitled                  to review                  and audit the other Party’s records pertaining to the computation of                  amounts claimed in such Post-Closing Adjustment                  Statement. |
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| (B) | Within                  thirty (30) days after receipt of the Post-Closing Adjustment Statement,                  Buyer shall deliver to Seller a written statement describing in                  reasonable                  detail its objections (if any) to any amounts or items set forth                  on the                  Post-Closing Adjustment Statement.  If Buyer does not raise                  objections within such period, then the Post-Closing Adjustment                  Statement                  shall become final and binding upon the Parties at the end of such                  period. |
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| (C) | If                  Buyer raises objections, the Parties shall negotiate in good faith                  to                  resolve any such objections.  If the Parties are unable to                  resolve any disputed item within thirty (30) days after Buyer’s receipt of                  the Post-Closing Adjustment Statement, any disputed accounting                  item shall                  be submitted to a nationally recognized independent accounting                  firm                  mutually agreeable to the Parties who shall be instructed to resolve                  such                  disputed item within thirty (30) days.  The resolution of                  disputes by the accounting firm so selected shall be set forth                  in writing                  and shall be conclusive, binding and non-appealable upon the Parties                  with                  respect to the accounting matters submitted and the Post-Closing                  Adjustment Statement shall become final and binding upon the Parties                  on                  the date of such resolution.  The fees and expenses of such                  accounting firm shall be paid one-half by Buyer and one-half by                  Seller. |
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| (D) | After                  the Post-Closing Adjustment Statement has become final and binding                  on the                  Parties, Seller or Buyer, as the case may be, shall pay to the                  other such                  sums as are due to settle accounts between the Parties due to differences                  between the estimated Purchase Price paid pursuant to the Closing                  Adjustment Statement and the actual Purchase Price set forth on                  the                  Post-Closing Adjustment Statement. |
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| (A) | During                  reasonable business hours, Seller agrees to grant Buyer physical                  access to                  the Leases and Wells to allow Buyer to conduct, at Buyer’s sole risk and                  expense, on-site inspections and environmental assessments of the                  Leases                  and Wells. Buyer agrees not to enter onto the Leases or contact                  field                  employees without Seller’s prior knowledge. In connection with any such                  on-site inspections, Buyer agrees not to interfere with the normal                  operation of the Leases and Wells and agrees to comply with all                  requirements of the operators of the Wells.  If Buyer or its                  agents prepares an environmental assessment of any Lease or Well,                  Buyer                  agrees to keep such assessment confidential and to furnish copies                  thereof                  to Seller.  In connection with granting such access, Buyer                  represents that it is adequately insured and waives, releases and                  agrees                  to indemnify the Seller against all claims for injury to, or death                  of,                  persons or for damage to operations or property arising in any                  way from                  the access afforded to Buyer hereunder or the activities of                  Buyer.  This waiver, release and indemnity by Buyer shall                  survive termination of this                  Agreement. |
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| (B) | Upon                  the execution of this Agreement, Seller shall give Buyer and its                  representatives, employees, consultants, independent contractors,                  attorneys and other advisors reasonable access to the Records during                  regular office hours for any and all inspections and                  copying. |
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| (A) | As                  to the Assets, that record title or operating rights of Seller                  which: |
|-----|------------------------------------------------------------------------------------------------------------|

|   | (i) | entitles                  Seller to receive not less than the interests shown in Exhibit                  2.4 as the                  “Net Revenue Interest” of all Oil and Gas produced, saved and marketed                  from or allocated to the formations in the associated Wells which                  are                  producing as of the date of this Agreement or which have otherwise                  been                  given Allocated Value, all without reduction, suspension or termination                  except as stated in such Exhibit or otherwise permitted as Permitted                  Encumbrances; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (ii) | obligates                  Seller to bear a percentage of the costs and expenses relating                  to the                  maintenance and development of, and operations relating to, the                  producing                  formations in each associated Well not greater than the “Working Interest”                  shown in Exhibit 2.4 (without a proportionate increase in the Net                  Revenue                  Interest), all without increase except as stated in such Exhibit                  or                  otherwise permitted as Permitted Encumbrances;                  and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | That                  title of Seller to the Assets is free and clear of liens, encumbrances                  and                  defects that materially and adversely affect the ownership, operation                  or                  use of the Assets, except for Permitted                  Encumbrances. |
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| (C) | As                  used herein, the term “Permitted Encumbrances” shall mean any one or more                  of the following: |
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|   | (1)   The                  provisions of the Leases and any lessor’s royalties, overriding royalties,                  net profits interests, carried interests, production payments,                  reversionary interests and similar burdens reflected in the public                  records                  or in the Records, if the net cumulative effect of the burdens                  does not                  operate to reduce the Net Revenue Interest of Seller below the                  interests                  described in Exhibit 2.4; |
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|   | (2)   Any                  increase in lessor’s royalty occasioned by the repeal or suspension of any                  governmental regulation providing for the reduction of royalty                  for wells                  producing below defined threshold                  amounts; |
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|   | (3)   Division                  orders and production sales contracts terminable without penalty                  upon no                  more than ninety (90) days notice to the                  purchaser; |
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|   | (4)   Preferential                  Rights and required third party consents to assignment and similar                  agreements with respect to which waivers or consents are obtained                  from the                  appropriate parties, or the appropriate time period for asserting                  any such                  right has expired without an exercise of the                  right; |
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|   | (5)   Materialman’s,                  mechanic’s, repairman’s, employee’s, contractor’s, operator’s and other                  similar liens or charges arising in the ordinary course of business                  for                  obligations that are not delinquent or that will be paid and discharged                  in                  the ordinary course of business, or if delinquent, that are being                  contested in good faith by appropriate action of which Buyer is                  notified                  in writing before Closing; |
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|   | (6)   All                  rights to consent by, required notices to, filings with, or other                  actions                  by governmental entities in connection with the sale or conveyance                  of oil                  and gas leases or interests therein if they are routinely obtained                  subsequent to the sale or                  conveyance; |
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|   | (7)   Easements,                  rights-of-way, servitudes, permits, surface leases and other rights                  in                  respect of surface operations that do not materially interfere                  with the                  oil and gas operations to be conducted on any Well or                  Lease; |
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|   | (8)   All                  operating agreements, unit agreements, unit operating agreements,                  pooling                  agreements and pooling designations affecting the Assets that are                  either                  (i) of record in Seller’s chain of title or (ii) reflected or                  referenced in the Records or (iii) included as Material Agreements on                  Exhibit 7.1(K); |
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|   | (9)   Conventional                  rights of reassignment prior to release or surrender requiring                  notice                  to  the holders of the                  rights; |
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|   | (10)                  All rights reserved to or vested in any governmental, statutory                  or public                  authority to control or regulate any of the Assets in any manner,                  and all                  applicable laws, rules and orders of governmental                  authority; |
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|   | (11)                  Defects that are defensible by possession under applicable statutes                  of                  limitation for adverse possession or for prescription;                  and |
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|   | (12)                  All other liens, charges, encumbrances, contracts, agreements,                  instruments, obligations, defects and irregularities affecting                  the Assets                  that individually or in the aggregate are not such as to materially                  interfere with or affect the operation, value or use of any of                  the Assets                  or have not prevented, and cannot reasonably be expected to prevent,                  Buyer                  from receiving the proceeds of production from the affected                  Assets. |
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| (A) | Buyer                  may from time to time and no later than three (3) business days                  prior to                  Closing notify Seller in writing (a “Notice”) of any matter which would                  cause title to all or part of the Assets not to be Defensible Title                  (“Title Defect”), provided that no Title Defect shall be deemed to exist                  unless the Title Defect Value thereof exceeds Ten Thousand Dollars                  ($10,000.00). Further, there shall be no adjustment to the Base                  Purchase                  Price unless the aggregate Title Defect Values of all Title Defects                  satisfying the condition in clause (i) exceed one percent (1%) of the                  Base Purchase Price (the “Title Defect Threshold”) (such amount being a                  threshold, not a deductible).  In order to provide Seller a                  reasonable opportunity to cure any Title Defects prior to Closing,                  Buyer                  shall use reasonable efforts to provide the Notice as soon as reasonably                  possible after becoming aware of or making its determination of                  the Title                  Defect. |
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| (B) | In                  the Notice, Buyer must describe with reasonable detail each alleged                  Title                  Defect it has discovered and the steps required to cure each Title                  Defect,                  include Buyer’s reasonable estimate of the Title Defect Value attributable                  to each, and include all data and information in Buyer’s possession or                  control bearing thereon.  Subject to the special warranty in the                  Assignment and Bill of Sale delivered at Closing, Buyer shall be                  deemed to                  have conclusively waived all Title Defects not disclosed to Seller                  in a                  Notice before three (3) business days prior to Closing.  Subject                  to the special warranty in the Assignment and Bill of Sale delivered                  at                  Closing, Buyer waives any remedy against Seller for Title Defects                  that do                  not exceed the Title Defect Threshold or for which timely notice                  is not                  given as provided hereunder or for which adjustment is made as                  hereafter                  provided. |
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| (C) | Upon                  timely delivery of a Notice by                  Buyer: |
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|   | (i)    within                  three (3) business days after Seller’s receipt of the Title Defects                  Notice, Seller shall notify Buyer whether Seller agrees with Buyer’s                  claimed Title Defects and/or the proposed Title Defect Values therefor                  (“Seller’s Response”).  If Seller does not agree with any                  claimed Title Defect and/or the proposed Title Defect Value therefor,                  then                  the Parties shall enter into good faith negotiations and shall                  attempt to                  agree on such matters; |
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|   | (ii)   within                  one (1) business day after Seller’s notice of its cure of a Title Defect,                  Buyer shall notify Seller whether Buyer agrees with Seller’s proposed cure                  of a Title Defect (“Buyer’s Response”).  If Buyer does not agree                  with any such cure, then the Parties shall enter into good faith                  negotiations and shall attempt to agree on such                  matters; |
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|   | (iii)  if                  the Parties cannot reach agreement concerning either the existence                  of a                  Title Defect, Seller’s proposed cure of a Title Defect, or a Title Defect                  Value within ten (10) days after Buyer’s receipt of Seller’s Response or                  Seller’s receipt of Buyer’s Response, as applicable, upon either Party’s                  request, the Parties shall mutually agree on and employ an attorney                  experienced in title examination in the state where the Assets                  are located                  (“Title Consultant”) to resolve all points of disagreement relating to                  Title Defects and Title Defect Values; provided that Seller or                  Buyer may                  elect not to proceed to Closing with regard to such Assets and                  adjust the                  Base Purchase Price in the amount of the Allocated Value and not                  submit                  such matter to arbitration; |
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|   | (iv)   if                  at any time any Title Consultant so chosen fails or refuses to                  perform                  hereunder, a new Title Consultant shall be chosen by the                  Parties.  The cost of any such Title Consultant shall be borne                  fifty percent (50%) by Seller and fifty percent (50%) by                  Buyer.  Each Party shall present a written statement of its                  position on the Title Defect and/or Title Defect Value in question                  to the                  Title Consultant within five (5) days after the Title Consultant                  is                  selected, and the Title Consultant shall make a determination of                  all                  points of disagreement in accordance with the terms and conditions                  of this                  Agreement within ten (10) business days of receipt of such position                  statements.  The determination by the Title Consultant shall be                  conclusive and binding on the Parties, and shall be enforceable                  against                  any Party in any court of competent jurisdiction.  If necessary,                  the Closing Date shall be deferred only as to those Assets affected                  by any                  unresolved disputes regarding the existence of a Title Defect and/or                  the                  Title Defect Value until the Title Consultant has made a determination                  of                  the disputed issues with respect thereto and all subsequent dates                  and                  required activities with respect to any such Assets having reference                  to                  the Closing Date shall be correspondingly deferred; provided, however,                  that, unless Seller and Buyer mutually agree to the contrary, the                  Closing                  Date shall not be deferred in any event for more than thirty (30)                  days                  beyond the scheduled Closing Date in Section 3.1.  Once the                  Title Consultant’s determination has been expressed to both Parties, if                  applicable, Seller shall have five (5) days in which to advise                  Buyer in                  writing which of the options available to Seller under Section                  5.4 that                  Seller elects regarding each of the Assets as to which the Title                  Consultant has made a determination.  In evaluating whether a                  Title Defect exists, due consideration shall be given to the length                  of                  time that the particular Asset has been producing Oil and Gas and                  whether                  such fact, circumstance or condition is of the type expected to                  be                  encountered in the area involved and is usual and customarily acceptable                  to reasonable and prudent operators, working interest owners and/or                  purchasers engaged in the business of the exploration, development,                  and                  operation of oil and gas                  properties. |
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| (A) | In                  the event Buyer provides Seller with a timely Notice and the Title                  Defects                  are valid and exceed the Title Defect Threshold, for those Title                  Defects                  not cured by Closing, Seller may, at its sole                  discretion: |
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|   | (i)    adjust                  the Base Purchase Price in the amount of the Title Defect Value                  of the                  Asset to which such Title Defect relates and proceed to Closing                  on all                  Assets; provided that Seller shall not be obligated to transfer                  any Assets                  for which the Title Defect Value equals or exceeds such Asset’s Allocated                  Value; or |
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|   | (ii)   proceed                  with (a) Closing on those Assets not affected by the valid Title                  Defects                  and such Assets to which a Title Defect relates but for which Seller                  has                  elected to proceed to Closing with an adjustment of the Base Purchase                  Price in the amount of the Title Defect Value of such Assets and                  (b) defer Closing on those other Assets to which a Title Defect                  relates and for which Seller has elected to attempt to cure such                  Title                  Defect and to not proceed to Closing, for which Buyer shall place                  into                  escrow an amount equal to the Allocated Values of the Assets affected                  by                  the valid Title Defects, which withheld amount shall be paid to                  Seller                  when the Asset affected by any valid Title Defect is cured or the                  Title                  Defect is waived by Buyer and the affected Asset is conveyed from                  Seller                  to Buyer.  If neither of the above occurs and if Seller later                  determines it will not cure a Title Defect on or before six (6)                  months                  from the Closing Date, the amount in the escrow account attributable                  to                  such Title Defect will be returned to Buyer and Seller shall retain                  such                  Asset affected by such Title                  Defect. |
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| (B) | The                  diminution in value of an Asset attributable to a valid Title Defect                  (the                  “Title Defect Value”) notified in a Notice shall be determined by the                  following: |
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|   | (i)    if                  the valid Title Defect asserted is that the actual Net Revenue                  Interest                  attributable to the producing or valued formation in any Asset                  is less                  than that stated in the applicable Exhibit, then the Title Defect                  Value is                  the product of the Allocated Value attributed to the affected formation(s)                  in such Asset, multiplied by a fraction, the numerator of which                  is the                  difference between the Net Revenue Interest set forth in the applicable                  Exhibit and the actual Net Revenue Interest, and the denominator                  of which                  is the Net Revenue Interest stated in the applicable Exhibit;                  or |
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|   | (ii)   if                  the valid Title Defect represents an obligation, encumbrance, burden                  or                  charge upon the affected Asset (including any increase in Working                  Interest                  for which there is not a proportionate increase in Net Revenue                  Interest),                  the amount of the Title Defect Value is to be determined by taking                  into                  account the Allocated Value of such Asset, the portion of the Asset                  affected by the Title Defect, the legal effect of the Title Defect,                  the                  potential economic effect of the Title Defect over the life of                  the                  affected Asset, and the Title Defect Values placed upon the Title                  Defect                  by Buyer and Seller. |
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|   | (iii)  Notwithstanding                  the above, in no event shall the total of the Title Defect Values                  related                  to a particular Asset exceed the Allocated Value of such                  Asset. |
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| (C) | If                  the aggregate value of (i) the Base Purchase Price adjustment for                  Title Defect Values plus (ii) the Allocated Value of Assets which are                  retained in lieu of cure or adjustment equals or exceeds ten percent                  (10%)                  of the Base Purchase Price, then by notice delivered prior to the                  Closing                  either Party may terminate this Agreement and neither Party shall                  have any                  further obligation to conclude the transfer of the Assets under                  this                  Agreement. |
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| (A) | Consents. |
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|   | Except                  for consents and approvals which are customarily obtained post-Closing                  and                  those consents which would not invalidate the conveyance of the                  Assets, if                  a necessary consent to assign any Lease has not been obtained as                  of the                  Closing that would invalidate the conveyance of the Asset, then                  (i) the portion of the Assets for which such consent has not been                  obtained shall not be conveyed at the Closing, (ii) the Allocated                  Value for that Asset shall not be paid to Seller, and (iii) Seller                  shall use best efforts to obtain such consent as promptly as possible                  following Closing.  If such consent has been obtained as of the                  date on which the Post-Closing Adjustment Statement becomes final,                  Seller                  shall convey the affected Asset to Buyer effective as of the Effective                  Time and Buyer shall pay Seller the Allocated Value of the affected                  Asset,                  less any proceeds from the affected Asset received by Seller attributable                  to the period of time after the Effective Time (calculated in accordance                  with Section 2.3).  If such consent has not been obtained or has                  not been waived by Buyer as of the date on which the Post-Closing                  Adjustment Statement becomes final, Seller shall elect either to                  (i) challenge in court the enforceability of such consent right, in                  which event Seller shall retain the affected Asset until such legal                  challenge is finally resolved by settlement or non-appealable court                  order,                  after which either Seller shall convey the affected Asset to Buyer                  under                  the terms of this Agreement and Buyer shall pay the Allocated Value                  of the                  Purchase Price for such Asset, less any proceeds received by Seller                  attributable to such Asset for the period from and after the Effective                  Time (calculated in accordance with Section 2.3) or (ii) retain the                  affected Asset and the Purchase Price shall be reduced by an amount                  equal                  to the Allocated Value of the retained Asset (with such adjustment                  being                  an “Exclusion Adjustment”).  Buyer shall reasonably cooperate                  with Seller in obtaining any required consent including providing                  assurances of reasonable financial conditions, but Buyer shall                  not be                  required to expend funds or make any other type of financial commitments                  a                  condition of obtaining such                  consent. |
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| (B) | Preferential                  Purchase Rights. |
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|   |  (i)    If                  any preferential right to purchase any portion of the Assets is                  exercised                  prior to the Closing Date, or if the time frame for the exercise                  of such                  preferential purchase rights has not expired and Seller has not                  received                  notice of an intent not to exercise or waiver of the preferential                  purchase                  right, that portion of the Assets affected by such preferential                  purchase                  right shall be excluded from the Assets and the Purchase Price                  shall be                  adjusted downward by an amount equal to the Allocated Value of                  such                  affected Assets without the requirement for Buyer to give notice                  (with                  such adjustment being an “Exclusion Adjustment”). Notwithstanding any                  other provision in this Agreement, if a preferential purchase right                  subject to this Agreement is exercised, Buyer has the right, at                  its sole                  discretion, to terminate this Agreement, provided that the allocated                  value                  of all preferential rights exercised is equal to or exceeds ten                  percent                  (10%) of the Base Purchase Price. |
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|   | (ii)   If                  a third party exercises its preferential right to purchase, but                  fails to                  consummate the purchase prior to the Closing, Seller shall retain                  the                  affected Assets and the Purchase Price shall be adjusted downward                  by an                  amount equal to the Allocated Value of such affected Assets (with                  such                  adjustment being an “Exclusion                  Adjustment”). |
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|   | (iii)  If                  a third party exercises its preferential right to purchase, but                  does not                  consummate the purchase within the time frame specified in the                  preferential purchase right, Seller agrees to convey the affected                  Asset to                  Buyer effective as of the Effective Time, and Buyer agrees to pay                  Seller                  the Allocated Value of the Affected                  Asset. |
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|   | (iv)   If                  a preferential purchase right is not discovered prior to Closing,                  and the                  affected Asset is conveyed to Buyer at Closing, and the preferential                  purchase right is exercised and subsequently consummated after                  Closing,                  Buyer agrees to convey such affected Assets to the party exercising                  such                  right on the same terms and conditions under which Seller conveyed                  such                  Assets to Buyer and retain all amounts paid by the party exercising                  such                  preferential right to purchase.  In the event of such exercise,                  Buyer shall prepare, execute and deliver a form of conveyance of                  such                  Asset to such exercising party, such conveyance to be in form and                  substance as provided in this Agreement, and Seller agrees to hold                  harmless and indemnify Buyer from any and all liabilities and obligations                  associated with such conveyed Asset, and to reimburse Buyer for                  reasonable                  expenses incurred by Buyer relating to the conveyed                  Asset. |
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| (C) | Exclusive                  Remedy.  The remedies set forth in this Section 5.5 are the                  exclusive remedies under this Agreement for exercised preferential                  purchase rights and required consents to assign the                  Assets. |
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| (A) | Buyer                  acknowledges that the Assets have been used for oil and gas drilling                  and                  production operations and possibly for the storage and disposal                  of waste                  materials or hazardous substances related to standard oil field                  operations.  Physical changes in or under the Assets or adjacent                  lands may have occurred as a result of such uses.  The Assets                  also may contain previously plugged and abandoned wells, buried                  pipelines,                  storage tanks and other equipment, whether or not of a similar                  nature, the                  locations of which may not now be known by Seller or be readily                  apparent                  by a physical inspection of the Assets.  Buyer understands that                  Seller does not have the requisite information with which to determine                  the                  exact nature or condition of the Assets nor the effect any such                  use has                  had on the physical condition of the Assets.  Pursuant to the                  Safe Water Drinking and Toxic Enforcement Act of 1986, Buyer is                  hereby                  notified and assumes the risk that detectable amounts of chemicals                  known                  to cause cancer, birth defects and other reproductive harm may                  be found                  in, on or around the Assets.  Upon consummation of the Closing                  Buyer shall be deemed to have assumed the risk of expense, claim,                  damage                  or liability arising from any such matter referred to in this section,                  including without limitation the risk that the Assets may contain                  waste or                  contaminants and that adverse physical conditions, including the                  presence                  of waste or contaminants, may not have been revealed by Buyer’s                  investigation.  Consummation of the Closing shall transfer all                  responsibility and liability related to disposal, spills, waste                  or                  contamination from, on or below the Assets from Seller to                  Buyer. |
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| (B) | In                  addition, Buyer acknowledges that some oil field production equipment                  located on the Assets may contain asbestos and/or naturally-occurring                  radioactive material (“NORM”).  In this regard, Buyer expressly                  understands that NORM may affix or attach itself to inside of wells,                  materials and equipment as scale or in other forms, and that wells,                  materials and equipment located on the Assets described herein                  may contain                  NORM and that NORM-containing materials may be buried or have been                  otherwise disposed of on the Assets.  Buyer also expressly                  understands that special procedures may be required for the removal                  and                  disposal of asbestos and NORM from the Assets where it may be found,                  and                  that upon consummation of the Closing Buyer shall be deemed to                  have                  assumed all liability when such activities are                  performed. |
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| (A) | Prior                  to Closing, Buyer shall have the right, at its sole cost and risk,                  to                  review Seller’s Phase I environmental assessments of the Assets, if any                  exist, and to conduct any further environmental assessment of the                  Assets                  it deems appropriate, to the extent that Seller has the authority                  to grant                  such right to Buyer; provided that Seller shall have the right                  to review                  and approve any plan to conduct such an environmental assessment,                  with                  such approval not to be unreasonably withheld, delayed or conditioned                  by                  Seller.  Buyer shall immediately provide to Seller any data                  obtained from such assessments, including any reports and                  conclusions.  Seller and Buyer shall keep all information                  relating to such assessments strictly confidential whether or not                  Closing                  occurs, except as may be required pursuant to any Environmental                  Laws. |
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| (B) | Buyer                  waives and releases all claims against Seller, its affiliates,                  and each of                  their respective directors, officers, employees, agents, and other                  representatives and their successors and assigns (collectively,                  the                  “Seller’s Group”), for injury to or death of persons, or damage to                  property, arising in any way from the exercise of rights granted                  to Buyer                  hereby or the activities of Buyer or its employees, agents or contractors                  on the Assets.  BUYER SHALL INDEMNIFY THE SELLER’S GROUP AGAINST                  AND HOLD THE MEMBERS OF THE SELLER’S GROUP HARMLESS FROM ANY AND ALL LOSS,                  COST, DAMAGE, EXPENSE OR LIABILITY, INCLUDING REASONABLE ATTORNEY’S FEES,                  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. |
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| (C) | “Environmental                  Laws” means all applicable local, state, and federal laws, rules,                  regulations, and orders regulating or otherwise pertaining to:                  (i) the use, generation, migration, storage, removal, treatment,                  remedy, discharge, release, transportation, disposal, or cleanup                  of                  pollutants, contamination, hazardous wastes, hazardous substances,                  hazardous materials, toxic substances or toxic pollutants;                  (ii) surface waters, ground waters, ambient air and any other                  environmental medium on or off any Lease; or (iii) the environment,                  habitat protection or health and safety-related matters; including                  the                  following as from time to time amended and all others whether similar                  or                  dissimilar: the Comprehensive Environmental Response, Compensation,                  and                  Liability Act of 1980, as amended by the Superfund Amendments and                  Reauthorization Act of 1986, the Resource Conservation and Recovery                  Act of                  1976, as amended by the Used Oil Recycling Act of 1980, the Solid                  Waste                  Disposal Act Amendments of 1980, and the Hazardous and Solid Waste                  Amendments of 1984, the Hazardous Materials Transportation Act,                  the Toxic                  Substance Control Act, the Clean Air Act, the Clean Water Act,                  the Safe                  Drinking Water Act, the National Environmental Policy Act, the                  Endangered                  Species Act, the Oil Pollution Act of 1990, and all regulations                  promulgated pursuant thereto. |
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| (A) | With                  respect to any Adverse Environmental Conditions affecting one or                  more of                  the Assets which exceed the Environmental Defect Threshold, Seller                  may on                  an Asset-by-Asset basis (i) Remediate the Adverse Environmental                  Conditions prior to Closing, but Seller shall have no obligation                  to do so,                  and proceed to Closing with no adjustment of the Base Purchase                  Price;                  (ii) proceed to Closing and adjust the Base Purchase Price in an                  amount equal to the applicable Environmental Defect Value; or                  (iii) retain the affected Asset and reduce the Base Purchase Price by                  the Allocated Value of the affected Asset (“Exclusion                  Adjustment”). |
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| (B) | Buyer                  waives any Adverse Environmental Condition for which Buyer has                  received an                  adjustment to the Base Purchase Price in accordance with Section                  6.4(A). |
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| (C) | If                  Buyer delivers a valid Environmental Defect Notice to Seller and                  if the                  aggregate of the Environmental Defects claimed is less than or                  equals the                  Environmental Defect Threshold, Buyer will be deemed to have accepted                  the                  Assets “where-is, as-is” with respect to all Adverse Environmental                  Conditions in, on or under the Assets and the Adverse Environmental                  Condition(s) in, on and under the Assets will be deemed to be part                  of the                  Assumed Liabilities.  The Environmental Defect Threshold is a                  threshold and not a deductible.  The Environmental Defect                  Threshold and the Title Defect Threshold are separate and distinct                  and                  operate independently. |
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| (D) | If                  the aggregate value of (i) the Base Purchase Price adjustment for                  Adverse Environmental Conditions plus (ii) any Exclusion Adjustments                  in lieu of Remediating any Adverse Environmental Conditions equals                  or                  exceeds ten percent (10%) of the Base Purchase Price, either Party                  may                  terminate this Agreement and neither Party shall have any further                  obligation to conclude the transfer of the Assets under this                  Agreement. |
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| (E) | The                  term “Remediate” or “Remediation” means, with respect to any valid Adverse                  Environmental Condition, the undertaking and completion of those                  actions                  and activities necessary to eliminate or correct such Adverse                  Environmental Condition to the degree sufficient that such Adverse                  Environmental Condition no longer constitutes an Adverse Environmental                  Condition as defined above.  Seller shall promptly notify Buyer                  at such time as it believes that it has Remediated an Adverse                  Environmental Condition.  Buyer shall promptly notify Seller                  whether it agrees such condition is Remediated.  If Buyer fails                  to notify Seller of its determination with respect to such Remediation                  within ten (10) business days following Seller’s notice, such Adverse                  Environmental Condition shall be deemed                  Remediated. |
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| (F) | If                  Seller and Buyer are unable to agree on the amount of the Environmental                  Defect Value within ten (10) business days after Seller’s receipt of the                  Environmental Defect Notice or that an Adverse Environmental Condition                  exists, has been Remediated or is required to be Remediated, then                  the                  dispute will be submitted to a mutually acceptable company with                  recognized                  expertise in the oil and gas environmental remediation and regulation                  field (the “Environmental Consultant”) whose determination shall be final                  and binding upon the Parties.  Seller and Buyer shall each bear                  their respective costs and expenses incurred in connection with                  any such                  dispute, and one-half (1/2) of the fees, costs and expenses charged                  by the                  Environmental Consultant.  Each Party shall present a written                  statement of its position on the Adverse Environmental Condition                  and/or                  the Environmental Defect Value in question to the Environmental                  Consultant                  within five (5) business days after the Environmental Consultant                  is                  selected, and the Environmental Consultant shall make a determination                  of                  all points of disagreement in accordance with the terms and conditions                  of                  this Agreement within ten (10) business days of receipt of such                  position                  statements.  If necessary, the Closing Date shall be deferred                  only as to those Assets affected by any unresolved disputes regarding                  the                  existence of an Adverse Environmental Condition and/or the Environmental                  Defect Value until the Environmental Consultant has made a determination                  of the disputed issues with respect thereto and all subsequent                  dates and                  required activities with respect to any such Assets having reference                  to                  the Closing Date shall be correspondingly deferred; provided, however,                  that, unless Seller and Buyer mutually agree to the contrary, the                  Closing                  Date shall not be deferred in any event for more than thirty (30)                  days                  beyond the scheduled Closing Date in Section 3.1.  All Assets as                  to which no such dispute(s) exist shall be conveyed to Buyer subject                  to                  the terms of this Agreement at Closing.  Once the Environmental                  Consultant’s determination has been expressed to both Parties, if                  applicable, Seller shall have five (5) business days in which to                  advise                  Buyer in writing which of the options available to Seller under                  Section                  6.4(A) Seller elects regarding each of the Assets as to which the                  Environmental Consultant has made a                  determination. |
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| (A) | Seller                  shall be responsible for all negotiations and contacts with federal,                  state, and local agencies and authorities.  Buyer may not make                  any independent contacts with any agency, authority, or other third                  party                  with respect to the Adverse Environmental Condition or Remediation                  and                  shall keep all information regarding the Adverse Environmental                  Condition                  and Remediation confidential, except in each instance to the extent                  required by applicable law. |
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| (B) | Seller                  shall Remediate the Adverse Environmental Condition to the level                  agreed                  upon by Seller and Buyer (or failing such agreement to the level                  determined by the Environmental Consultant), but in no event shall                  Seller                  be required to Remediate the Adverse Environmental Condition beyond                  the                  level required by the Environmental Laws in effect at the Effective                  Time. |
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| (C) | Buyer                  shall grant and warrant access and entry to the Assets after Closing                  to                  Seller and third parties conducting assessments or Remediation,                  to the                  extent and as long as necessary to conduct and complete the assessment                  or                  Remediation work, to remove equipment and facilities, and to perform                  any                  other activities reasonably necessary in connection with assessment                  or                  Remediation. |
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| (D) | Buyer                  shall facilitate Seller’s ingress and egress or assessment or Remediation                  activities after the Closing.  Seller shall make reasonable                  efforts to perform the work so as to minimize disruption to Buyer’s                  business activities. |
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| (E) | Seller                  shall continue Remediation of the Adverse Environmental Condition                  until                  the first of the following occurs: |
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|   | (i)    the                  appropriate governmental authorities provide notice to Seller or                  Buyer                  that no further Remediation of the Adverse Environmental Condition                  is                  required; or |
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|   | (ii) | the                  Adverse Environmental Condition has been Remediated to the level                  required                  by the Environmental Laws or as agreed by the                  Parties. |
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|   |   Upon                  the occurrence of either (i) or (ii) above, Seller shall notify                  Buyer that                  Remediation of the Adverse Environmental Condition is complete                  and provide                  a copy of the notification described in (i) above, if                  applicable.  Upon delivery of said notice, Seller shall be                  released from all liability and have no further obligations under                  any                  provisions of this Agreement in connection with an Adverse Environmental                  Condition. |
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| (F) | Until                  Seller completes Remediation of an Adverse Environmental Condition,                  Seller                  and Buyer shall each notify the other of any pending or threatened                  claim,                  action, or proceeding by any authority or private party that relates                  to or                  would affect the environmental condition, the assessment, or the                  Remediation of the Assets. |
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| (A) | Status.  Raven                  Resources, LLC is a limited liability company duly organized, legally                  existing and in good standing under the laws of the State of                  Oklahoma. |
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| (B) | Authority.  Seller                  owns the Assets and has the requisite power and authority to enter                  into                  this Agreement, to carry out the transactions contemplated hereby,                  to                    transfer the Assets in the manner contemplated by this Agreement,                  and to                  undertake all of the obligations of Seller set forth in this                  Agreement. |
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| (C) | Validity                  of Obligations.  This Agreement and any documents or                  instruments delivered by Seller at the Closing shall constitute                  legal,                  valid and binding obligations of Seller enforceable in accordance                  with                  their terms subject, however, to the effects of bankruptcy, insolvency,                  reorganization, moratorium and other laws for the protection of                  creditors,                  as well as to general principles of equity, regardless of whether                  such                  enforceability is considered in a proceeding in equity or at                  law. |
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| (D) | No                  Violation.  The execution and delivery of this Agreement                  does not, and the fulfillment of and compliance with the terms                  and                  conditions hereof will not, as of Closing, violate, or be in conflict                  with, any provision of Seller’s governing documents, or any statute, rule                  or regulation applicable to Seller or any agreement or instrument                  to which                  Seller is a party or by which it is bound, or, to Seller’s knowledge,                  violate, or be in conflict with any judgment, decree or order applicable                  to Seller or require the approval or consent of any third party                  (subject                  to governmental consents and approvals customarily obtained after                  the                  Closing). |
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| (E) | AFE’s.  With                  respect to the joint, unit or other operating agreements relating                  to the                  Assets, except as set forth in Exhibit 7.1(E), there are no                  material outstanding calls or payments under authorities for expenditures                  for payments relating to the Assets which are due or which Seller                  has                  committed to make which have not been                  made. |
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| (F) | Contractual                  Restrictions.  Except to the extent otherwise permitted by                  this Agreement, Seller has not entered into any contracts for or                  received                  prepayments, take-or-pay arrangements, buydowns, buyouts for Oil                  and Gas,                  or storage of the same relating to the Assets which Buyer shall                  be                  obligated to honor and make deliveries of Oil and Gas or pay refunds                  of                  amounts previously paid under such contracts or                  arrangements. |
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| (G) | Litigation.  Except                  as set forth in Exhibit 7.1(G), there is no suit or action pending,                  arising out of, or to Seller’s knowledge threatened that would have a                  material adverse affect upon the ownership, operation or value                  of the                  Assets. |
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| (H) | Permits                  and Consents.  To Seller’s knowledge, with respect to Assets                  for which Seller is the operator, Seller has (i) acquired all                  material permits, licenses, approvals and consents from appropriate                  governmental bodies, authorities and agencies to conduct operations                  on the                  Assets in compliance with applicable laws, rules, regulations,                  ordinances                  and orders; and (ii) is in material compliance with all such permits,                  licenses, approvals and consents. |
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| (I) | Broker’s                  Fees.  Seller has incurred no obligation or liability,                  contingent or otherwise, for brokers’ or finders’ fees in respect of the                  matters provided for in this Agreement for which Buyer shall have                  any                  responsibility. |
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| (J) | Taxes.  (i) Seller                  has filed (with respect to the Assets) all material returns for                  Property                  Taxes and Severance Taxes that are due, (ii) all payments (with                  respect to the Assets) shown to be due on such returns have been                  paid, and                  (iii) there is no material dispute or claim concerning any Property                  Tax or Severance Tax liability of the Seller (with respect to the                  Assets)                  claimed or raised by any tax authority in                  writing. |
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| (K) | Material                  Agreements.  To the best of Seller’s knowledge, all                  agreements material to the ownership, operation or value of the                  Assets are                  listed in Exhibit 7.1(K) (“Material                  Agreements”). |
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| (L) | Consents                  and Preferential Purchase Rights.  To the best of Seller’s                  knowledge, Exhibit 7.1(L) lists all consents and preferential                  purchase rights contained in the Leases or Material                  Agreements. |
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| (M) | Gas                  Imbalances.  To the best of Seller’s knowledge, Exhibit                  7.1(M) lists all gas imbalances with respect to the Assets as of                  the                  Effective Time. |
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| (N) | Royalties.  All                  rentals, royalties and other payments due under the Leases have                  been paid,                  except those amounts properly being held in                  suspense. |
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| (O) | Production                  Sales Contracts.  There are no production sales contracts                  pertaining to the Assets that provide for a fixed price and that                  cannot be                  cancelled at any time upon ninety (90) days (or less) prior                  notice. |
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| (P) | Calls                  on Production.  There are no calls on production pertaining                  to the Assets that provide for payment at less than applicable                  current                  market prices. |
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| (A) | Information                  About the Assets.  Except as expressly set forth in this                  Agreement, Seller disclaims all liability and responsibility for                  any                  representation, warranty, statements or communications (orally                  or in                  writing) to Buyer, including any information contained in any opinion,                  information or advice that may have been provided to Buyer by any                  employee, officer, director, agent, consultant, engineer or engineering                  firm, representative, partner, member, beneficiary, owner or contractor                  of                  Seller wherever and however made, including those made in any data                  room or                  internet site and any supplements or amendments thereto or during                  any                  negotiations with respect to this Agreement or any confidentiality                  agreement previously executed by the Parties with respect to the                  Asset.  EXCEPT AS SET FORTH IN ARTICLE 7 OF THIS AGREEMENT,                  SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS, STATUTORY                  OR IMPLIED,                  AS TO (i) THE ACCURACY, COMPLETENESS OR MATERIALITY OF ANY DATA,                  INFORMATION OR RECORDS FURNISHED TO BUYER IN CONNECTION WITH THE                  ASSETS OR                  OTHERWISE CONSTITUTING A PORTION OF THE ASSETS; (ii) THE PRESENCE,                  QUALITY                  AND QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE                  ASSETS,                  INCLUDING WITHOUT LIMITATION SEISMIC DATA AND SELLER’S INTERPRETATION AND                  OTHER ANALYSIS THEREOF; (iii) THE ABILITY OF THE ASSETS TO PRODUCE                  HYDROCARBONS, INCLUDING WITHOUT LIMITATION PRODUCTION RATES, DECLINE                  RATES                  AND RECOMPLETION OPPORTUNITIES; (iv) IMBALANCE OR PAYOUT ACCOUNT                  INFORMATION, ALLOWABLES, OR OTHER REGULATORY MATTERS; (v) THE PRESENT                  OR FUTURE VALUE OF THE ANTICIPATED INCOME, COSTS OR PROFITS, IF                  ANY, TO BE                  DERIVED FROM THE ASSETS; (vi) THE ENVIRONMENTAL CONDITION OF THE                  ASSETS; (vii) ANY PROJECTIONS AS TO EVENTS THAT COULD OR COULD NOT                  OCCUR; (viii) THE TAX ATTRIBUTES OF ANY ASSET; (ix) ANY OTHER                  MATTERS CONTAINED IN OR OMITTED FROM ANY INFORMATION OR MATERIAL                  FURNISHED                  TO BUYER BY SELLER OR OTHERWISE CONSTITUTING A PORTION OF THE ASSETS;                  AND,                  (x) THE COMPLETENESS OR ACCURACY OF THE INFORMATION CONTAINED IN                  ANY                  EXHIBIT HERETO.  ANY DATA, INFORMATION OR OTHER RECORDS                  FURNISHED BY SELLER ARE PROVIDED TO BUYER AS A CONVENIENCE AND                  BUYER’S                  RELIANCE ON OR USE OF THE SAME IS AT BUYER’S SOLE                  RISK. |
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| (B) | Independent                  Investigation.  Buyer agrees that it has, or by Closing will                  have, made its own independent investigation, analysis and evaluation                  of                  the Assets and the transaction contemplated by this Agreement (including                  Buyer’s own estimate and appraisal of the extent and value of Seller’s Oil                  and Gas reserves attributable to the Assets and an independent                  assessment                  and appraisal of the environmental risks and liabilities associated                  with                  the acquisition of the Assets).  Buyer agrees that it has had,                  or will have prior to Closing, access to all information necessary                  to                  perform its investigation and has not relied and will not rely                  on any                  representations by Seller other than those expressly set forth                  in this                  Agreement |
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|   | (A) | Status.  Buyer                    is a limited partnership duly organized, validly existing and                    in good                    standing under the laws of the State of                    Delaware. |
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| (B) | Authority.  Buyer                    has the power and authority to enter into this Agreement, to                    carry out the                    transactions contemplated hereby and to undertake all of the                    obligations                    of Buyer set out in this Agreement. |
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| (C) | Validity                    of Obligations.  The consummation of the transactions                    contemplated by this Agreement will not in any respect violate,                    nor be in                    conflict with, any provision of Buyer’s charter, by-laws or other                    governing documents, or any agreement or instrument to which                    Buyer is a                    party or is bound, or any judgment, decree, order, statute, rule                    or                    regulation applicable to Buyer (subject to governmental consents                    and                    approvals customarily obtained after the Closing).  This                    Agreement and the documents executed and delivered by Buyer in                    connection                    with the Closing shall constitute legal, valid and binding obligations                    of                    Buyer, enforceable in accordance with their terms, subject, however,                    to                    the effects of bankruptcy, insolvency, reorganization, moratorium                    and                    other laws for the protection of creditors, as well as to general                    principles of equity, regardless of whether such enforceability                    is                    considered in a proceeding in equity or at                    law. |
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| (D) | Qualification                  and Bonding.  Buyer is in compliance with the bonding and                  liability insurance requirements of all applicable state or federal                  laws                  or regulations that could affect Buyer’s ability or authority to own and                  operate the Assets and is qualified to own any federal, Indian                  or state                  oil and gas leases that constitute part of the                  Assets. |
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| (E) | Non-Security                  Acquisition.  Buyer intends to acquire the Assets for its                  own benefit and account and is not acquiring the Assets with the                  intent of                  distributing fractional undivided interests thereof such as would                  be                  subject to regulation by federal or state securities laws, and                  if, in the                  future, it should sell, transfer or otherwise dispose of the Assets                  or                  fractional undivided interests therein, it will do so in compliance                  with                  any applicable federal and state securities                  laws. |
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| (F) | Evaluation.  By                  reason of Buyer’s knowledge and experience in the evaluation, acquisition                  and operation of oil and gas properties, Buyer has evaluated the                  merits                  and risks of purchasing the Assets from Seller and has formed an                  opinion                  based solely upon Buyer’s knowledge and experience and not upon any                  representations or warranties by                  Seller. |
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| (G) | Financing.  Buyer                  has sufficient cash, available lines of credit or other sources                  of                  immediately available funds to enable it to pay the Purchase Price                  to                  Seller at the Closing. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (H) | Broker’s                  Fees.  Buyer has incurred no obligation or liability,                  contingent or otherwise, for brokers’ or finders’ fees in respect of the                  matters provided for in this Agreement, and, if any such obligation                  or                  liability exists, it shall remain an obligation of Buyer, and Seller                  shall                  have no responsibility therefor. |
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| (I) | No                  Knowledge of Seller’s Breach.  As of the date of execution                  of this Agreement, Buyer has no knowledge of any breach by Seller                  of any                  representation or warranty of Seller, or of any other fact, event,                  condition or circumstance that would excuse Buyer from the timely                  performance of its obligations                  hereunder. |
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**,**

| (A) | Administer                  and operate the Assets in accordance with the applicable operating                  agreements. |
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| (B) | Not                  introduce any new methods of management, operation or accounting                  with                  respect to any or all of the                  Assets. |
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| (C) | Use                  commercially reasonable efforts to maintain and keep the Assets                  in full                  force and effect; and fulfill all contractual or other covenants,                  obligations and conditions imposed upon Seller with respect to                  the Assets,                  including, but not limited to, payment of royalties, delay rentals,                  shut-in gas royalties and any and all other required                  payments. |
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| (D) | Except                  to the extent necessary or advisable to avoid forfeiture or penalties,                  not                  enter into agreements to drill new wells or to rework, plug back,                  deepen,                  plug or abandon any Well, nor commence any drilling, reworking                  or                  completing or other operations on the Leases which requires estimated                  expenditures exceeding Ten Thousand Dollars ($10,000.00), net to                  the                  working interest of Seller, for each operation (except for emergency                  operations and operations required under presently existing contractual                  obligations) without obtaining the prior written consent of Buyer                  (which                  consent shall not be unreasonably withheld, delayed or conditioned);                  provided that the terms of this paragraph (D) shall not apply to                  any                  expenditures of Seller which will not be charged to                  Buyer. |
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| (E) | Not                  voluntarily relinquish its position as operator to anyone other                  than Buyer                  with respect to any of the Assets or voluntarily abandon any of                  the Wells                  other than as required pursuant to the terms of a Lease or by                  regulation. |
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| (F) | Not,                  without the prior written consent of Buyer (which consent shall                  not be                  unreasonably withheld, delayed or conditioned), (i) enter into any                  agreement or arrangement (other than one constituting a Permitted                  Encumbrance) transferring, selling or encumbering any of the Assets                  (other                  than in the ordinary course of business, including ordinary course                  sales                  of production, inventory or salvage; (ii) grant any preferential or                  other right to purchase or agree to require the consent of any                  party not                  otherwise required to consent to the transfer and assignment of                  the Assets                  to Buyer; (iii) enter into any new sales contracts or supply                  contracts which cannot be cancelled upon thirty (30) days prior                  notice; or                  (iv) incur or agree to incur any contractual                  obligation  (absolute or contingent) with respect to the Assets                  except as otherwise provided herein (including ordinary course                  sales of                  production, inventory or salvage or pursuant to any disclosed AFEs                  covering the Assets). |
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| (G) | To                  the extent known to Seller, provide Buyer with written notice of                  (i) any claims, demands, suits or actions made against Seller which                  materially affect the Assets; or (ii) any proposal from a third party                  to engage in any material transaction (e.g., a farmout) with respect                  to                  the Assets. |
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| (A) | At                  any time by mutual consent of the                  Parties. |
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| (B) | By                  either Party as provided in Sections 5.4(C), 5.5(B) or 6.4(D) pertaining                  to Title Defects, preferential rights or Adverse Environmental                  Conditions,                  respectively. |
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| (C) | By                  Buyer if, on the Closing Date, any of the conditions set forth                  in Article                  11 hereof shall not have been satisfied or waived; provided, however,                  that                  Seller shall have the right to satisfy such condition for a period                  of                  twenty (20) days following delivery of notice from Buyer regarding                  such                  failure or, if such condition cannot reasonably be satisfied within                  such                  20-day period, Seller shall have the right to commence the actions                  necessary to satisfy such condition within such 20-day period and                  thereafter to diligently continue such actions beyond such period                  until                  such satisfaction has been                  effected. |
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| (D) | By                  Seller if, on the Closing Date, any of the conditions set forth                  in Article                  12 hereof shall not have been satisfied or waived; provided, however,                  that                  with respect to any condition other than a material failure of                  Buyer to                  perform its obligations under Section 3.2, as to which the granting                  of any                  cure period shall be entirely within Seller’s sole and absolute                  discretion, Buyer shall have the right to satisfy such condition                  for a                  period of twenty (20) days following delivery of notice from Seller                  regarding such failure or, if such condition cannot reasonably                  be                  satisfied within such 20-day period, Buyer shall have the right                  to                  commence the actions necessary to satisfy such condition within                  such                  20-day period and thereafter to diligently continue such actions                  beyond                  such period until such satisfaction has been                  effected. |
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| (A) | Buyer’s                  Breach.  If Closing does not occur because Buyer wrongfully                  fails to tender performance at Closing or otherwise breaches this                  Agreement prior to Closing, and Seller is ready to close and is                  not in                  material breach of this Agreement, Seller shall have the right                  to                  terminate this Agreement and retain the Deposit, together with                  interest                  thereon, as liquidated damages.  Buyer’s failure to close shall                  not be considered wrongful if (i) conditions to Buyer’s obligation to                  close under Article 11 are not satisfied through no fault of Buyer                  and are                  not waived, or (ii) Buyer has terminated this Agreement as of right                  under Section 13.1.  The remedy set forth herein shall be                  Seller’s sole and exclusive remedy for Buyer’s wrongful failure to close                  hereunder and Seller expressly waives any and all other remedies,                  legal                  and equitable, that it otherwise may have for Buyer’s failure to                  close. |
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| (B) | Seller’s                    Breach.  If Closing does not occur because Seller wrongfully                    fails to tender performance at Closing or otherwise breaches                    this                    Agreement prior to Closing, and Buyer is ready to close and is                    not in                    material breach of this Agreement, Buyer may terminate this Agreement,                    in                    which event Seller will return the Deposit, together with interest                    thereon, to Buyer immediately after the determination that the                    Closing                    will not occur.  If Buyer elects not to terminate this Agreement                    upon any such breach by Seller, Buyer shall retain all legal                    remedies for                    Seller’s breach of this Agreement, including, without limitation, specific                    performance of this Agreement; provided, however, that in any                    suit for                    damages by Buyer against Seller for any such breach (i) Buyer’s total                    damages arising out of or related to Seller’s breach of any provision of                    this Agreement shall be limited to the amount of the Deposit,                    and                    (ii) Seller shall not have any liability to Buyer for consequential,                    special, punitive or exemplary damages arising out of or related                    to                    Seller’s breach of any provision of this Agreement.  The                    foregoing limitations on damages shall not preclude Buyer from                    seeking                    specific performance of this Agreement.  Seller’s failure to                    close shall not be considered wrongful if (i) conditions to Seller’s                    conditions to close under Article 12 are not satisfied through                    no fault of                    Seller and are not waived; or (ii) Seller has terminated this                    Agreement as of right under Section                    13.1. |
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| (C) | Termination                    Pursuant to Section 13.1.  If Buyer or Seller terminates                    this Agreement pursuant to Section 13.1 in the absence of a breach                    by the                    other Party, Seller shall return the Deposit to Buyer and neither                    Buyer                    nor Seller shall have any liability to the other Party for termination                    of                    this Agreement.  If Buyer or Seller terminates this Agreement                    pursuant to Section 13.1 and asserts that a breach of this Agreement                    has                    occurred, the notice of termination shall include a statement                    describing                    the nature of the alleged breach together with supporting                    documentation. |
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| (D) | 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 as provided in this Article 13, for the                    indemnities                    provided for in Sections 6.2(B) and 14.3, any breach of this                    Agreement                    prior to such termination and any continuing confidentiality                    requirement,                    neither Party shall have any further right, duty or liability                    to the other                    hereunder.  Upon termination, Buyer agrees to return to Seller                    or destroy all materials, documents and copies thereof provided,                    obtained                    or discovered in the course of any due diligence investigations                    of the                    Assets. |
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| (A) | MISREPRESENTATIONS.  ALL                  CLAIMS, DEMANDS, LIABILITIES, JUDGMENTS, LOSSES AND REASONABLE                  COSTS,                  EXPENSES AND ATTORNEYS’ FEES (INDIVIDUALLY A “LOSS” AND COLLECTIVELY, THE                  “LOSSES”) ARISING FROM THE BREACH BY SELLER OF ANY REPRESENTATION OR                  WARRANTY SET FORTH IN THIS AGREEMENT THAT SURVIVES                  CLOSING; |
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| (B) | BREACH                  OF COVENANTS.  ALL LOSSES ARISING FROM THE BREACH BY SELLER                  OF ANY COVENANT SET FORTH IN THIS AGREEMENT;                  AND |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | OWNERSHIP                  AND OPERATION.  ALL LOSSES ARISING FROM SELLER’S OWNERSHIP                  AND OPERATION OF THE ASSETS PRIOR TO THE EFFECTIVE TIME DIRECTLY                  ASSOCIATED WITH THE FOLLOWING                  MATTERS: |
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|   | (i)    DAMAGES                  TO PERSONS OR PROPERTY FOR CLAIMS ASSERTED BY ANY THIRD PARTY AND                  ACCRUING                  PRIOR TO THE EFFECTIVE TIME; |
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|   | (ii)   THE                  VIOLATION BY SELLER OF THE TERMS OF ANY AGREEMENT BINDING UPON                  SELLER;                  AND |
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|   | (iii)  CLAIMS                  AGAINST SELLER BY CO-OWNERS, PARTNERS, JOINT VENTURERS AND OTHER                  PARTICIPANTS IN THE WELLS. |
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| (D) | Notwithstanding                  the above, the following limitations shall apply to Seller’s                  indemnification obligations: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)    Seller                  shall not be obligated to indemnify Buyer for any Loss unless Buyer                  has                  delivered a written notice of such Loss within the Survival Period                  (as                  defined below) applicable to such Loss.  Any Loss for which                  Seller does not receive written notice before the end of the Survival                  Period shall be deemed to be an Assumed Liability.  The                  “Survival Period” applicable to Losses shall                  mean: |
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|   | (1) | With                  regard to a breach of representations and warranties contained                  in Sections                  7.1(A), (B), (C) and (D), for a period of one (1) year following                  the                  Closing; |
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|   | (2) | All                  of the other representations and warranties by Seller in this Agreement                  for a period of six (6) months following the                  Closing; |
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|   | (3) | With                  regard to a breach of covenants, an indefinite period following                  the                  Closing; |
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|   | (4) | With                  regard to the matters covered by Section 14.1 (C), for a period of six                  months after the Closing. |
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|   | (ii)   The                  indemnification obligations of Seller pursuant to this Agreement                  shall be                  limited to actual Losses and shall not include incidental, consequential,                  indirect, punitive, or exemplary Losses or                  damages; |
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|   | (iii)  Seller’s                  aggregate liabilities and obligations under this Article 14 shall                  not                  exceed ten percent (10%) of the Base Purchase                  Price; |
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|   | (iv)  Seller                  shall have no liability or obligation for any Losses, unless and                  until and                  only to the extent that the aggregate Losses for which Buyer is                  entitled                  to recover under this Agreement exceeds one percent (1%) of the                  Base                  Purchase Price (the “Indemnity Deductible”) (such amount being a                  deductible and not a threshold). |
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|   | (v)   Seller                  shall have no liability in excess of the Allocated Value, less                  any prior                  adjustments to the Base Purchase Price, for any Losses associated                  with the                  claim that Seller does not have Defensible Title associated with                  a                  particular Asset; |
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|   | (vi)  The                  amount of Losses required to be paid by Seller to indemnify Buyer                  pursuant                  to this Agreement shall be reduced to the extent of any amounts                  actually                  received by Buyer pursuant to the terms of the insurance policies                  (if any)                  covering such claim and any tax benefits received by                  Buyer. |
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|   | (vii)                  Seller’s indemnification obligations shall not cover any liabilities,                  duties and obligations relating to properly plugging and abandoning                  wells,                  restoring and reclaiming the surface, removal of all pipelines,                  equipment,                  and related facilities now or hereafter located on the Assets,                  and                  cleaning up, restoring and Remediation of the Assets in accordance                  with                  the Environmental Laws and the relevant Leases, or any other violation                  or                  claimed violation of Environmental Laws (including but not limited                  to the                  payment of fines, penalties, monetary sanctions or other civil                  liabilities) or the presence, disposal, release or threatened release                  of                  any hazardous substance or hazardous waste from the Assets into                  the                  atmosphere or into or upon land or any water course or body of                  water,                  including groundwater, whether or not attributable to Seller’s activities                  or the activities of third parties.  All such matters are                  covered exclusively by Article 6 of this                  Agreement. |
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|   | (viii)                  Buyer acknowledges and agrees that the indemnification provisions                  in this                  Article 14 and the termination rights in Article 13 shall be the                  exclusive                  remedies of Buyer with respect to the transactions contemplated                  by this                  Agreement. |
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| (A) | MISREPRESENTATIONS.  ALL                  LOSSES ARISING FROM THE BREACH BY BUYER OF ANY REPRESENTATION OR                  WARRANTY                  SET FORTH IN THIS AGREEMENT THAT SURVIVES                  CLOSING; |
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| (B) | BREACH                  OF COVENANTS.  ALL LOSSES ARISING FROM THE BREACH BY BUYER                  OF ANY COVENANT SET FORTH IN THIS                  AGREEMENT; |
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| (C) | ASSUMED                  LIABILITIES.  ALL LOSSES ARISING FROM OR COMPRISING THE                  ASSUMED LIABILITIES. |
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| (A) | An                  event of casualty means volcanic eruptions, acts of God, fire,                  explosion,                  earthquake, wind storm, flood, drought, condemnation, the exercise                  of any                  right of eminent domain, confiscation and seizure (a                  “Casualty”).  A Casualty does not include depletion due to                  normal production and depreciation or failure of equipment or                  casing. |
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| (B) | If,                  prior to the Closing, a Casualty occurs (or Casualties occur) which                  results in a reduction in the value of any of the Assets in excess                  of                  twenty-five percent (25%) of the Allocated Value of the affected                  Assets                  (“Casualty Loss”), (i) Seller may retain such Asset and such Asset                  shall be the subject of an adjustment to the Base Purchase Price                  in the                  same manner set forth in Section 5.4 hereof, or (ii) at the Closing,                  Seller shall assign to Buyer the right to receive all insurance                  proceeds                  or other sums payable to Seller by reason of such Casualty Loss,                  the Base                  Purchase Price shall not be adjusted by reason of such payment,                  and Seller                  shall convey the affected Assets to                  Buyer. |
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| (C) | For                  purposes of determining the diminution in value of an Asset as                  a result of                  a Casualty Loss, the Parties shall use the same methodology as                  applied in                  determining the diminution in value of an Asset as a result of                  a Title                  Defect as set forth in Section 5.4. |
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| (A) | Prior                  to Closing, to the extent not already public, Buyer shall not disclose                  to                  any party that it is conducting negotiations with Seller or has                  entered                  into this Agreement other than as expressly permitted in the                  confidentiality agreement executed by Buyer in Seller’s favor prior to the                  execution of this Agreement, which shall continue to apply until                  the                  Closing and thereafter in the event of termination of this Agreement                  prior                  to the Closing. Buyer shall exercise all due diligence in safeguarding                  and                  maintaining secure all engineering, geological and geophysical                  data,                  seismic data, reports and maps, the results and findings of Buyer                  with                  regard to its due diligence associated with the Assets (including                  without                  limitation with regard to due diligence associated with environmental                  and                  title matters) and other data relating to the Assets (collectively,                  the                  “Confidential Information”).  Buyer acknowledges that, prior to                  Closing, all Confidential Information shall be treated as confidential.                  Notwithstanding the foregoing, Seller understands that Buyer has                  public                  reporting obligations that may require public announcement of certain                  information relating to this Agreement.  Seller and Buyer shall                  consult with each other with regard to all publicity and other                  releases at                  or prior to the Closing concerning this Agreement and the transaction                  contemplated hereby and, except as required by applicable law or                  other                  applicable rules or regulations of any governmental body or stock                  exchange, neither party shall issue any publicity or other release                  without                  the prior written consent of the other party, such consent not                  to be                  unreasonably withheld. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | In                  the event of termination of this Agreement for any reason, Buyer                  shall not                  use or knowingly permit others to use such Confidential Information                  in a                  manner detrimental to Seller, and will not disclose any such Confidential                  Information to any person, firm, corporation, association or other                  entity                  for any reason or purpose whatsoever, except to Seller or to a                  governmental agency pursuant to a valid subpoena or other order                  or                  pursuant to applicable governmental regulations, rules or                  statutes. |
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| (C) | The                  undertaking of confidentiality shall not diminish or take precedence                  over                  any separate confidentiality agreement between the                  Parties.  Should this Agreement terminate, such separate                  confidentiality agreement shall remain in full force and                  effect. |
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**SELLER:**

**BUYER:**

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| (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) | Buyer                  shall file all necessary Tax returns and other documentation with                  respect                  to all transfer, documentary, sales, use, stamp, registration and                  other                  similar Taxes and fees, and, if required by applicable law, Seller                  shall                  join in the execution of any such Tax returns and other                  documentation.  Notwithstanding anything set forth in this                  Agreement to the contrary, Buyer 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.  Buyer shall also pay any equipment lease transfer fees                  or other fees or expenses incurred in connection with transfer                  of the                  Assets to Buyer except as otherwise provided by this                  Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | Buyer                  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.  Buyer 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.  Buyer shall supply Seller with                  a true and accurate photocopy reflecting the recording information                  of all                  the recorded and filed assignments within a reasonable period of                  time                  after their recording and filing.  In the event that Seller                  undertakes to record and/or file the conveyance instruments and                  other                  documents associated with this transfer of interest, Buyer shall                  reimburse                  Seller for all associated fees at Post                  Closing. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **SELLER:** RAVEN RESOURCES |                                  |
|--------|----------------------------------|---------------------------------------|
|   |                             |                                  |   |
|   | By:                              | /s/ David                Stewart |   |
|   |                             | David                Stewart          |   |
|   |                             | Managing                Member        |   |
|   |                             |                                  |   |

|   | **BUYER:** LEGACY RESERVES OPERATING LPBy: LEGACY RESERVES OPERATING GP LLC, its general                partner |                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
|   |                                                                                                                 |                                                       |   |
| Date   | By:                                                                                                                  | /s/ Kyle              A. McGraw                       |   |
|   |                                                                                                                 | Kyle              A. McGraw                                |   |
|   |                                                                                                                 | Vice              President, Business Development and Land |   |
|   |                                                                                                                 |                                                       |   |

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