Document:

Exhibit 10.2

        PARTICIPATION AGREEMENT

         

        [REDACTED]

        

        This Participation Agreement (“Agreement”) is made and entered into effective as of the 1st day of July, 2008 (the "Effective Date"), by and between Newfield Exploration Company (“Newfield”) and Ridgewood Energy Corporation (“Ridgewood”). Newfield and Ridgewood are also sometimes hereinafter referred to collectively as the “Parties” or
        individually as a “Party”.

        

        WITNESSETH:

        

        WHEREAS, Newfield owns 100% record title interest in [REDACTED] and Ridgewood would like to participate in the drilling of the [REDACTED] No. 1 Well.

        

        WHEREAS, the Agreement covers the following oil and gas lease and area, hereinafter referred to as the “Contract Area”:

        

	 	Oil and
Gas Lease effective March 1, 2008 by and between the United States of America as Lessor,
and Newfield Exploration Company, as Lessee, covering all of [REDACTED], containing
approximately 4963.08 acres. 

        

                   WHEREAS, Ridgewood agrees to bear a disproportionate share of drilling costs associated with the Test Well (defined in Article 4 hereinbelow) in order to earn an interest in the Contract Area, pursuant to the terms and conditions of this Agreement.

        

        WHEREAS, the Parties desire to enter into this Agreement to set forth the manner in which the cost of drilling, producing and operating wells, and the production from the Contract Area and interest in the Contract Area shall be shared and/or owned.

        

        NOW, THEREFORE, for the consideration, being the mutual benefits and advantages accruing hereunder, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

        

        Article 1 – Interest of the Parties

        

        The costs, risk and liabilities associated with the exploration and development of the Contract Area (including all wells, platforms, pipelines, facilities and equipment associated directly with the specified operations herein) and all oil and gas produced from wells drilled pursuant to the terms hereof, shall be borne and owned, subject to the terms and conditions set
        out herein, and unless otherwise agreed, by the Parties in accordance with the following percentage working interests (“Working Interests”):

         

        	 	Party 	 	Working Interests	 
	 	Newfield	 	60.00000%	 
	 	Ridgewood	
                	 40.00000%*	 

        

        * Subject to an obligation to pay a disproportionate share of Test Well costs, as further described in Article 3.

                            

        Article 2 - Operating Agreement

        

        2.1     Newfield is designated as the Operator of the Contract Area, and all operations conducted on the Contract Area shall be performed in accordance with and shall be subject to the terms and provisions of this Agreement, and the Operating Agreement attached hereto as Exhibit “A” (“Operating Agreement”). The Parties shall execute the
        Operating Agreement simultaneously with this Agreement.

        

        2.2     Notwithstanding anything herein to the contrary, the non-consent penalties set forth in Article 13 of the Operating Agreement shall not be applicable to drilling operations on the Test Well, or substitute therefore, prior to the Parties drilling an Earning Well (as hereinafter defined).

        

        Article 3 - Test Well

        

        3.1      Newfield will commence drilling operations for the [REDACTED] No. 1 Well (“Test Well”) on or before December 1, 2008. The Test Well is planned to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate depth of
        17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”).

        

                    3.2     As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below):

        

        	 	Newfield	 	40.00000%	 
	 	Ridgewood	
                	60.00000%	 

         

        The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February
        12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement.

        
             

        

        
            - 2 -
        

        
             
        

        Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest).

        

        3.3     Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other
        operations as provided within the priority of operations outlined within the Operating Agreement.

        

        3.4     If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means
        considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not to participate in a substitute well, it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on the substitute well
        within ninety (90) days from the date of rig release of the Test Well, then said well shall be considered the Test Well for purposes of this Agreement.

        

        Article 4 - Assignment and Assumption of Rights

        

                    4.1     Upon Ridgewood’s participation pursuant to the terms and conditions set forth herein and upon the Parties drilling the Test Well or its substitute, reaching Contract Depth, Ridgewood will have earned under the Agreement and shall receive from Newfield an assignment of an undivided 40%
        working interest in the Contract Area, in the form attached hereto as Exhibit C.

        

        4.2     The interest assigned to Ridgewood pursuant hereto will be subject to its proportionate share of the federal 1/6th royalty and a proportionately reduced 2% ORRI in favor of Newfield Exploration Company. The interest shall be free and clear of any other overriding royalty interest, production payments, or other burdens on production.

        

        Article 5 - Ownership of Production

        

        Production from each well drilled on the Contract Area will be owned pursuant to the terms of this Agreement and the Operating Agreement.

        

        Article 6 - Insurance

        

        In connection with any drilling and/or production operations on the Contract Area, the Operator shall carry the type and amount of insurance required by the Operating Agreement. No other insurance shall be required of the Operator hereunder.

        

        
            - 3 -

             

        

        Article 7 - Confidentiality

        

        Except for required disclosures, including but not limited to disclosures to governmental agencies and/or stock exchanges, as provided in the Operating Agreement, no Party shall release any geological, geophysical, or reservoir information or any logs or other information pertaining to the progress, tests, or results of any well drilled pursuant to this Agreement, without the prior
        approval of the other Party.

        

        Article 8 - Conflicts

        

        In the event of any conflict between the terms and conditions as set forth herein and the terms and conditions set forth in the Operating Agreement, the terms and condition set forth herein shall control.

        

        Article 9 - Notices

        

                  All notices, requests or demands to be given under this Agreement shall be in writing and shall be deemed to have been given (i) three (3) business days after being sent by registered mail or certified mail, postage
        prepaid, or (ii) on the day sent, if hand delivered or sent by facsimile, with receipt confirmed and verbal confirmation, in each case addressed as follows or to such other address as may have been furnished in writing to the other Parties hereto in accordance herewith:

        

        

        

        	 	If to Newfield: 	 	If to Ridgewood:	 
	 	Newfield Exploration Company	 	Ridgewood Energy Corporation	 
	 	363 N. Sam Houston Pkwy. E., Suite 2020	 	11700 Old Katy Road, Suite 280	 
	 	Houston, Texas 77060	 	Houston, Texas 77079	 
	 	Attention:  Ms. Christina Linscomb	 	Attn:  Mr. W. Greg Tabor	 
	 	Office Phone:  (281) 847-6074	 	Office Phone:  (281) 293-8449	 
	 	Fax Number:    (281) 405-4207	 	Fax Number:    (281) 293-7705	 

        

        Article 10 - Topical Headings

        

        Topical headings appearing at the top of each numbered article have been inserted for convenience only and are to be given no force or affect whatsoever in the interpretation of this Agreement.

        

        Article 11 - Successors and Assigns

        

        This Agreement shall be binding upon each Party and their successors and assigns. An assignment by a Party of any lands affected by this Agreement shall be made expressly subject to, and the assignee shall expressly agree to assume and comply with, the terms and provisions of this Agreement and the Operating Agreement.

        

        
            - 4 -

             

        

        Article 12 - Counterpart Execution

        

        This Agreement may be executed by signing the original or a counterpart thereof. If this Agreement is executed in counterparts, all counterparts taken together shall have the same effect as if all the Parties had signed the same instrument. However, this Agreement shall not be effective as to any Party, until it has been executed by all Parties.

        

        IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the Effective Date hereinabove first written.

        

	WITNESSES:	 	NEWFIELD EXPLORATION COMPANY
	 	 	 	 
	   	 	By: 	 
	
  	 	  	

	 	 	Name:	W.M. Blumenshine
	
	 	Title: 	Vice President - Land
	 	 	 	 
	 	 	 	 
	WITNESSES:	 	RIDGEWOOD ENERGY CORPORATION
	 	 	 	 
	  	 	By: 	 
	
  	 	  	

	 	 	Name:	W. Greg Tabor
	
	 	Title: 	Executive Vice President

        

            - 5 -llog.htm

    
      Exhibit
10.3

    

     

    PARTICIPATION
AGREEMENT

    [REDACTED]

    

    This Participation Agreement (“Agreement”) is made and
entered into effective as of the 11th day of
November, 2008 by and between LLOG Exploration Offshore, Inc. (“LLOG”), and Ridgewood Energy
Corporation (“Ridgewood”).  LLOG
and Ridgewood are sometimes hereafter referred to collectively as “Parties” and individually as
“Party.”

    

    

    RECITALS

    

    WHEREAS, LLOG has identified a
prospect on the REDACTED (“Contractually Pooled Area” or
“CPA”);
and,

    

    WHEREAS, LLOG has acquired Oil
& Gas Lease [Redacted} (“Redacted Lease”) covering all of
Galveston Area, Redacted and has entered into an Option Agreement (“Option Agreement”) with Apache
Corporation (“Apache”)
on Oil & Gas Lease OCS-G [Redacted] (“Redacrted Lease”) covering the Redacted
and the Redacted of Galveston Area, {Redacted].  Both the Redacted
Lease and the Redacted Lease are further described on the attached Exhibit “A”; and,

    

    WHEREAS, under the terms of
the Option Agreement, Apache and LLOG created the CPA from the surface of ocean
down to 11,500 feet TVD and, in lieu of farming out, Apache has elected to
participate with a 50% contractual working interest in the CPA.  LLOG
currently owns the other 50% contractual working interest in the CPA;
and,

    

    WHEREAS, LLOG and Apache plan
to drill the OCS-G Redacted (“Initial Test Well” or “ITW”) to a depth of 10,500
feet TVD to test the Redacted formations (“Objective
Depth”).  The ITW shall be drilled as a straight hole at a
surface location of 900’ FNL and 7,444’ FWL of the Redacted Lease;
and,

    

    WHEREAS, LLOG has offered to
Ridgewood the opportunity to participate in the drilling of the ITW, and
Ridgewood has accepted LLOG’s offer and has agreed to bear thirty-three and
1/3rd percent
(33.3333%) of the drilling costs (“Participating Interest”) of
the ITW in order to earn a fifty percent (50%) record title interest in the
Redacted Lease and a twenty-five percent (25%) contractual working interest in
the ITW and CPA.

    

    NOW, THEREFORE, in
consideration of the mutual covenants and agreement herein contained, the
Parties hereto agree as follows:

    

    

    1.        
    REIMBURSABLE LAND
COSTS

    

    Within
five (5) business days after the execution of this Agreement, Ridgewood shall
reimburse LLOG $254,400 for its 50% share of the “Sunk Land Costs”. The Sunk
Land Costs for the Lease are $250,000 to acquire the Redacted Lease, $28,800 in
rentals, $30,000 for a license on the Shallow Hazard Data and $200,000 for
G&G costs.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.        
    ASSIGNMENT OF RECORD
TITLE

    

    Within
three (3) business days from receipt of the Sunk Land Costs, LLOG shall execute
and deliver to Ridgewood an Assignment of Record Title Interest delivering to
Ridgewood a 50% of 6/6ths Record
Title Interest in the Redacted Lease.  The Assignment shall be without
warranty of title, either express or implied, except by, through and under LLOG,
but not otherwise. Additionally, such Assignment shall be subject to the
approval of the authorized officer of the U.S. Mineral Management Service
(“MMS”). The Assignment
shall be prepared with an attached Exhibit “A” thereto, with said Exhibit “A”
being a mutually acceptable assignment form which can be executed by the parties
and recorded in the appropriate County/Parish, as applicable.  The
Assignment shall be subject to;

    

    
      	
              1.  

            	
              The
      Option Agreement (attached hereto as Exhibit
      “B”).

            

    

    
      	
              2.  

            	
              The
      September 1, 2008 Offshore Operating Agreement (“OOA”) between LLOG and
      Apache, covering the CPA, and ratified by
  Ridgewood.

            

    

    
      	
              3.  

            	
              A
      1% overriding royalty interest in favor of Seitel Data, Ltd
      proportionately reduced amongst the participating parties in the CPA
      and/or Redacted Lease outside the CPA.  By letter dated July 22,
      2008, Seitel agreed to pool their overriding royalty interest in the CPA,
      giving them a 0.5% in the CPA and a 1% in the redacted Lease outside the
      CPA.  Ridgewood’s net revenue interest in the CPA and the
      Redacted Lease is set forth on Exhibit
“A”.

            

    

    

    LLOG and
Ridgewood agree to execute any necessary documents and take all other actions
reasonably necessary, if any, to assist in the MMS approval
process.

     

    

    3.         
   INITIAL TEST
WELL

    

    Ridgewood
agrees to assume their Participating Interest in the costs to drill and evaluate
the ITW to “Casing Point”.  The Authority for Expenditure (“AFE”) to drill the ITW is
attached hereto as Exhibit
“C”.  Concurrent with the execution of this Agreement, the
parties agree to approve and execute the formal AFE.  As used in this
Agreement, "Casing
Point" shall mean that point in time when the ITW has been drilled to
Objective Depth and after all logs, cores and other approved tests contemplated
in the AFE have been conducted which are necessary to reach the decision for
further operations in the ITW, and the results thereof have been furnished to
all of the Parties, along with Operator’s recommendation.

    

    Ridgewood
will pay its Participating Interest in the ITW until such time as the ITW
reaches Casing Point or the actual costs to drill and evaluate the ITW reaches
110% of the AFE (“Promote
Cap”), whichever occurs first. Thereafter, Ridgewood’s costs in the ITW,
completion, facility, pipeline, and or plugging and abandonment (if applicable)
shall be based on a twenty-five percent (25%) working interest.

    

    LLOG, as
Operator, shall have the right to require Ridgewood to pay advances in
accordance with the terms of the COPAS attached to the Offshore Operating
Agreement described herein.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    4.      
      SUBSTITUTE
WELL

    

    If during
the drilling of the ITW, LLOG encounters impenetrable substances or conditions,
including loss of hole due to mechanical difficulties, which in the opinion of a
reasonably prudent operator under the same or similar conditions, would render
further drilling impracticable or hazardous and the condition prevents further
drilling of the ITW, LLOG may commence a “Substitute Well”, provided the
drilling operations on such Substitute Well are commenced within one hundred
eighty (180) days after release of the drilling rig from the
ITW.  However, with respect to such Substitute Well, the Promote Cap
applicable to the original AFE shall not be adjusted upward in the event the
cumulative costs of the ITW and the Substitute Well, as the case may be, exceed
the original Promote Cap.

    

    

    5.       
     OFFSHORE OPERATING
AGREEMENT

    

    The ITW
shall be drilled in accordance with the OOA which is attached hereto as Exhibit “D”.  Sent
in conjunction with, and as a condition to this Agreement is a Ratification and
Joinder of Offshore Operating Agreement (“Ratification”).  Contemporaneously
with the execution of this Agreement, Ridgewood agrees to execute the
Ratification and return three (3) signature pages to LLOG.  LLOG shall
endeavor to obtain Apache’s signature on the Ratification and shall furnish
Ridgewood with one fully executed original.  All operations on the
Initial Test Well and any and all subsequent operations on the CPA shall be
conducted in accordance with the terms and provisions of the OOA.  As
between LLOG and Ridgewood, if there are any conflicts between this Agreement
and the OOA, the terms and provisions of this Agreement shall prevail and
govern.  As to that portion of the Redacted Lease not within the CPA,
LLOG and Ridgewood shall be deemed to be bound under the terms of an Operating
Agreement identical in terms to the OOA with an Exhibit “A” covering that
portion of the Redacted Lease not within the CPA and with the Parties being LLOG
50% and Ridgewood 50%.

    

    

    6.         
   OPTION
AGREEMENT

    

    The
Option Agreement attached hereto also gives LLOG the right, subject to capacity,
to take production from the CPA to Apache’s facility in Redacted.  The
terms and fees are defined therein.  Also, the Option Agreement gives
LLOG the right to  earn  i) 50% of Apache’s right, title and
interest in and to the REDACTEd of  Redacted, limited from the surface
down to 11,500’ TVD, and ii) the Redacted by drilling an Additional Well either
on that tract or the Redacted.  Such Additional Well is to be drilled
to the Redacted.  Ridgewood shall be subject to all of the terms and
conditions of the Option Agreement and shall be entitled to their share of any
and all benefits granted in the Option Agreement including the aforementioned
production handling arrangement, the earning rights, and the option to
participate in any proposed Additional Well.

    

    

    7.         
   INFORMATION
REQUIREMENTS

    

    During
the drilling of the ITW, LLOG shall deliver to Ridgewood the information shown
on the attached Exhibit
“E”.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    8.      
      TIMELY
OPERATIONS

    

    Ridgewood
understands that the [Redacted] Lease is beyond its primary term and is subject
to a Suspension of Operations (“SOO”) granted by the
MMS.  Said SOO expires November 30, 2008 and LLOG shall attempt to get
an extension of said SOO through December 2008.  LLOG will use the
Noble Lester Pettus rig to drill the ITW as soon as such rig is finished with
its operations on another LLOG owned block.  LLOG shall not be liable
to Ridgewood or suffer any penalties for failure to spud the ITW before the
expiration of the SOO (or any extensions thereof).  Notwithstanding
anything contained herein to the contrary, should LLOG not spud the ITW prior to
the expiration of the SOO (or any extensions thereof), all commitments and
obligations will herein will cease and Ridgewood will reassign all of its
interest to LLOG and LLOG will refund to Ridgewood all Sunk Land Costs
previously paid by Ridgewood to LLOG.

    

    9.        
    TERM

    

    This
Agreement shall terminate at such time as 1.) the ITW has reached Objective
Depth, and 2.) the Assignment provided for in Article 4 has been filed and
accepted by the Minerals Management Service.  Thereafter all
operations to be conducted for the joint benefit of the Parties shall be subject
to the OOA.

    

    10.           MISCELLANEOUS

    

    This
agreement shall be deemed for all purposes as prepared through the joint efforts
of the parties and shall not be construed against one party or the other as a
result of the preparation, submittal, or other event of negotiation, drafting,
or execution hereof.

    

    The
section headings used herein are for convenience only and shall not be construed
as having any substantive significance or as indicating that all of the
provisions of this Agreement relating to any particular topic are to be found in
any particular section.

    

    In the
event this Agreement or the operations, or any part thereof, contemplated hereby
are found to be inconsistent with or contrary to any laws, rules, regulations or
orders, the laws, rules, regulations or orders shall be deemed to control and
this Agreement shall be regarded as modified accordingly and as so modified
shall continue in full force and effect.

    

    Any
amendments, changes or modifications to the rights and obligations of the
Parties shall be in writing and shall be effective only when agreed in writing
by all Parties.

    

    This
Agreement, together with all of its exhibits, is intended by the Parties to be a
complete and final statement of the agreement of the Parties with respect to the
subject matter hereof, and supersedes any prior oral or written statements or
agreements between the Parties hereto.

    

    This
Agreement is subject to that certain Offer to Participate dated November 6,
2008, and Conditional Letter of Acceptance dated November 6, 2008, between
Ridgewood and LLOG.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    11.           NOTICES

    

    
      All
notices, requests or demands to be given under this Agreement shall be in
writing and
directed to the persons at the  following address/contact
information:

    

    

    

    LLOG
Exploration Offshore, Inc.

    11700
Katy Freeway, Suite 295

    Houston,
Texas  77079

    Attn:  Mr.
K. Scott Spence

    Phone:  (281)
752-1106

    Fax:  (281)
752-1190

    Email:
scotts@llog.com                                                                           

    

    

    Ridgewood
Energy Corporation

    11700
Katy Freeway, Suite 280

    Houston,
TX 77079

    Attention:  Mr.
W. Greg Tabor

    Phone:
(281) 293-8449

    Fax:  (281)
293-7705

    Email:
gtabor@ridgewoodenergy.com

    

    

    12.           BINDING
EFFECT

    

    The terms
and provisions hereof shall be binding upon and inure to the benefit of LLOG and
Ridgewood, and their respective heirs, legal representatives, successors and
assigns, and shall be covenants running with the [Redacted] Lease, the
[Redacted] Lease and/or the CPA, as applicable.

    

    

    IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed as of the date first
set forth above.

     

     

    
      
        
          
            
              
                
                  
                    
                      	 	LLOG EXPLORATION OFFSHORE,
      INC.	 
	 	 	 
	 	 	 
	
                               

                            	/s/ K. Scott Spence	 
	 	K.
      Scott Spence	 
	 	Land
      Manager – GOM Shelf	 
	 	 	 	 

                    

                     

                     

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      	 	RIDGEWOOD ENERGY
      CORPORATION	 
	 	 	 
	 	 	 
	
                               

                            	/s/ W. Greg Tabor	 
	 	W.
      Greg Tabor	 
	 	Executive
      Vice President	 
	 	 	 	 

                    

                  

                

              

            

          

        

      

    

     

     

     

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
“A”

    Attached
to and made a part of that certain

    Participation
Agreement dated November 11, 2008

    by
and between LLOG Exploration Offshore, Inc.,

    Ridgewood
Energy Corporation 

    
      

    

    

     

    Description
of Leases:

     

    REDACTED

     

     

    Description
of Contractually Pooled Area:

     

    
      REDACTED

    

     

    

    Net
Revenue Interest:

     

    82.8333%
of 6/6ths in the Contractually Pooled Area (1/6 Royalty to MMS and 0.5%
overriding royalty to Seitel)

    

    82.3333%
of 6/6ths in the Redacted Lease outside the Contractually Pooled Area (1/6
Royalty to MMS and 1.0% overriding royalty to Seitel)

     

     

     

     

     

     

     

     

    6

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