**PURCHASE        AND SALE AGREEMENT**

**BY        AND BETWEEN**

**RAVEN        RESOURCES, LLC and**

**SHENANDOAH        PETROLEUM CORPORATION 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                                        | 4  |
| 3.3 | Delivery                      by Buyer                                         | 5  |
| 3.4 | Further                      Cooperation                                       | 5  |
| 4.  | ACCOUNTING                      ADJUSTMENTS.                                   | 5  |
| 4.1 | Closing                      Adjustments                                       | 5  |
| 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                                         | 7  |
| 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                                    | 11 |
| 5.5 | Preferential                      Rights and Consents.                         | 13 |
| 6.  | ENVIRONMENTAL                      ASSESSMENT.                                 | 14 |
| 6.1 | Physical                      Condition of the Assets                          | 14 |
| 6.2 | Inspection                      and Testing.                                   | 15 |
| 6.3 | Notice                      of Adverse Environmental Conditions                | 16 |
| 6.4 | Rights                      and Remedies for Adverse Environmental Conditions. | 16 |
| 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.                                             | 24 |

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| 10.   | CERTAIN                      AGREEMENTS OF BUYER                       | 25 |
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| 10.1  | Plugging                      Obligation                               | 25 |
| 10.2  | Plugging                      Bond                                     | 25 |
| 10.3  | Seller’s                      Logos                              | 25 |
| 10.4  | Like-Kind                      Exchanges                               | 25 |
| 10.5  | Charitable                      Assignment.                            | 25 |
| 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                                                           | 30 |
| 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 |
| 15.15 | Excluded                      Property Interest.                       | 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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| C. | It                      is the intent of the Parties that pursuant to this Agreement                      (i) Raven                      Resources, LLC will sell to Buyer all of its interest in the                      Cochran and                      Garza County, Texas, properties described on Exhibit 1.1(A)                      attached hereto, and (ii) Shenandoah Petroleum Corporation                      will sell to                      Buyer all of its interest in the Cochran County, Texas, properties                      described on Exhibit 1.1(A) attached hereto, but that Shenandoah                      Petroleum Corporation will not sell to Buyer pursuant to this                      Agreement                      any of its interest in the Garza County, Texas, properties                      described on                      Exhibit 1.1(A) attached hereto, all as more particularly set forth                      in Section 15.15 of 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 (excluding motor vehicles), 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; |
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| (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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| (i) | any                      amount determined to be due Seller pursuant to Section                      4.2; |
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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) | 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; |
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| (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: |
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| (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); |
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| (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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| (v) | any                      other amount agreed upon in writing by Seller and                      Buyer. |
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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: |
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| (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 |
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| (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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| (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. |
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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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| (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.  Shenandoah Petroleum Corporation is a corporation                      duly organized, legally existing and in good standing under                      the laws of                      the State of Texas. |
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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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | Authority. |
|-----|------------|

| (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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|---------------------------------------------|

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| (C) | Termination                      Pursuant to Section 13.1. |
|-----|------------------------------------------------------------|

| (D) | Effect                      of Termination. |
|-----|---------------------------------------------|

| (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; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | THE                      VIOLATION BY SELLER OF THE TERMS OF ANY AGREEMENT BINDING UPON                      SELLER;                      AND |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (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: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | All                      of the other representations and warranties by Seller in this                      Agreement                      for a period of six (6) months following the                      Closing; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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; |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | MISREPRESENTATIONS.  ALL                      LOSSES ARISING FROM THE BREACH BY BUYER OF ANY REPRESENTATION                      OR WARRANTY                      SET FORTH IN THIS AGREEMENT THAT SURVIVES                      CLOSING; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | BREACH                      OF COVENANTS.  ALL LOSSES ARISING FROM THE BREACH BY BUYER                      OF ANY COVENANT SET FORTH IN THIS                      AGREEMENT; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SELLER:**

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**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, LLC |                                      |
|--------|---------------------------------------|-------------------------------------------|
|   |                                  |                                      |   |
|   | By:                                   | /s/ David                    Stewart |   |
|   |                                  | David                    Stewart          |   |
|   |                                  | Managing                    Member        |   |
|   |                                  |                                      |   |

|   | SHENANDOAH              PETROLEUM CORPORATION |                                                         |
|--------|-----------------------------------------------|--------------------------------------------------------------|
|   |                                          |                                                         |   |
|   | By:                                           | /s/Troy              G. Martin      |   |
|   |                                          | Troy              G. Martin                             |   |
|   |                                          | President                                               |   |
|   |                                          |                                                         |   |

|   | **BUYER:** **LEGACY RESERVES OPERATING LP, by Legacy                Reserves                GP, LLC, its general partner** |                                                                             |
|--------|---------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|   |                                                                                                                            |                                                                             |   |
|   | By:                                                                                                                             | /s/Kyle              A. McGraw                          |   |
|   |                                                                                                                            | Kyle              A. McGraw                                                 |   |
|   |                                                                                                                            | Executive              Vice President Business Development & Land  |   |
|   |                                                                                                                            |                                                                             |   |

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