Document:

Exhibit 10.2

PARTICIPATION AGREEMENT

Eugene Island 31

          This
Participation Agreement (“Agreement”) is made and entered into this 27th day of
February, 2008, to be effective as of November 1, 2007 between Fidelity
Exploration & Production Company (“Fidelity”), whose address is
1700 Lincoln St., #2800, Denver, CO 80203, Ridgewood Energy Corporation (“Ridgewood”), whose
address is 11700 Old Katy Rd., #280, Houston, TX 77079, and Northstar
GOM, LLC, whose address is 11 Greenway Plaza, #2800, Houston, TX
77046 (“Northstar”). Fidelity, Ridgewood and Northstar are sometimes
individually called a “Party” or collectively, the “Parties”.

WITNESSETH:

          WHEREAS,
Fidelity owns a 100% record title interest in the following Federal Oil and Gas
Lease:

	
 

	
 

	
 

	
 

	
(i)

	
OCS-G 27905,
  covering all of Eugene Island Block 31 (“Lease”), which is more fully described
  on Exhibit “A” hereto; and

          WHEREAS,
Fidelity has offered to sell, and Ridgewood (as to 25% of 8/8ths) and Northstar
(as to 50% of 8/8ths) respectively, desire to acquire a portion of Fidelity’s
interest in the Lease, and participate with Fidelity in the exploration and
development of the Lease, subject to the terms and conditions stated below.

          NOW,
THEREFORE, for and in consideration of One Hundred
Dollars ($100.00) in hand paid, and other good and valuable consideration, the
Parties agree as follows:

ARTICLE I – GENERAL PROVISIONS

	
 

	
 

	
 

	
1.1

	
Fidelity
  hereby represents, by, through and under Fidelity only, that it owns a 100%
  record title interest in the Lease, subject only to the Lessor’s royalty and
  the overriding royalty interests described below in Article VI.

	
 

	
 

	
1.2

	
Fidelity
  hereby agrees to assign and convey: to Ridgewood, an undivided twenty-five
  percent of eight-eighths (25% of 8/8ths); and (ii) to Northstar, an undivided
  fifty percent of eight-eighths (50% of 8/8ths); record title interests in the
  Lease, subject to the terms set forth herein. Notwithstanding anything to the
  contrary in this Agreement, however, the Parties agree that if the Initial
  Test Well or substitute therefore fails to reach Objective Depth (as defined
  below) but is completed as a well capable of producing in paying quantities,
  Ridgewood and Northstar shall still have earned an interest in the Lease as
  provided below in sub-paragraph 6.1.2.

	
 

	
 

	
1.3

	
The
  following exhibits are attached, and incorporated herein by reference:

	
 

	
 

	
 

	
 

	
1.3.1

	
Exhibit

“A”          –          
  Lease and Addresses of the Parties

	
 

	
 

	
 

	
 

	
1.3.2

	
Exhibit

“B”          -          Joint
  Operating Agreement

	
 

	
 

	
 

	
 

	
1.3.3

	
Exhibit

“C”          -          Authority
  for Expenditure

	
 

	
 

	
 

	
 

	
1.3.4

	
Exhibit

“D”          -          Assignment
  Form

	
 

	
 

	
 

	
ARTICLE II – SUNK COST REIMBURSEMENT

	
 

	
2.1

	
Within
  forty-eight (48) hours after execution of this Agreement by all Parties: (i)
  Ridgewood shall pay to Fidelity a net sum of $139,375, being Ridgewood’s
  proportionate (25%) ground floor share; and (ii) Northstar shall pay to
  Fidelity a net sum of $278,750; being Northstar’s proportionate (50%) ground
  floor share; of Fidelity’s gross $557,500 sunk costs to date, including lease
  bonus, rentals and seismic costs. Fidelity shall provide Ridgewood and
  Northstar with wire transfer instructions so as to allow both Parties to make
  such payments in a timely manner.

	
 

	
 

	
ARTICLE III – INITIAL TEST WELL

	
 

	
3.1

	
Spud Date.
  Pursuant to the terms and conditions herein, Northstar, as “Operator”,
  shall, on or before April 15, 2008, commence the actual drilling of a well
  (the “Initial Test Well”) within the Lease, subject only to rig availability,
  force majeure and receipt of all required regulatory permits and/or
  approvals. Unless a delay in spudding the Initial Test Well is due to a cause
  provided for in Article 3.2 below, if the Initial Test well is not so
  commenced, then Fidelity and/or Ridgewood, respectively, may elect to
  terminate participation under this Agreement without further penalty,
  commitment or obligation hereunder.

	
 

	
 

	
3.2

	
Force Majeure Delays.
  If Northstar, through conditions not within its control (including but not
  limited to, regulatory or permitting delays, rig availability, or “force
  majeure” conditions as defined in the JOA covering the Lease as described in
  Article IV below, is unable to commence operations for the drilling of the
  Initial Test Well on or before the date set forth above, Northstar will use
  its best efforts to timely commence spudding such well following any such
  delays, but in no event shall the Initial Test Well be spud later than June
  30, 2008 due to the conditions described in this paragraph. Notwithstanding
  anything herein to the contrary, regulatory and permitting delays shall not
  include delays caused by untimely or insufficient actions by the Operator of
  the requisite regulatory applications, permits, and/or hazard surveys. If the
  Initial Test Well is not spud by June 30, 2008, then Article 3.5 shall apply.

	
 

	
 

	
3.3

	
Objective Depth.
  Northstar shall diligently prosecute the drilling of the Initial Test Well to
  a total vertical depth/measured depth of 12,300’ or a depth sufficient to
  evaluate the stratigraphic equivalent of the K-4 Lobe of the Tex W Sand seen
  at 12,070’ total vertical depth/measured depth in the Pel-Tex OCS-G 14460 #1
  well, whichever is the lesser (“Objective Depth”). The Initial Test Well
  shall be drilled as a straight hole from an approximate surface location of X
  = 1919000’ & Y = 230722’ of Block 31, Eugene Island Area, or from such
  other surface location to such other bottomhole location as mutually agreed
  upon by the Parties.

	
 

	
 

	
3.4

	
Casing Point.
  For the purposes of this Agreement, “Casing Point” is defined as that point
  in time when the Initial Test Well or substitute therefore has been drilled
  to the Objective Depth, all logging and testing contemplated in the AFE has
  been completed and a recommendation has been made by the Operator for other
  operations as provided under the JOA, to run production casing or plug and
  abandon the well.

	
 

	
 

	
3.5

	
Forfeiture of Right to Earn.
  It is agreed and understood between the Parties that except as otherwise
  provided herein, if Ridgewood does not participate in, and/or Northstar does
  not spud and participate in, drilling the Initial Test Well or substitute
  therefore to the Objective Depth as provided for herein, then Ridgewood
  and/or Northstar shall have forfeited their respective right to earn an assignment
  pursuant to this Agreement. Upon such forfeiture by Ridgewood and/or
  Northstar, Fidelity shall, within five (5) business days of receipt of notice
  by either or both parties of an election not to participate, refund back to
  the non-participating party(s) one hundred percent of the sunk cost
  reimbursement previously paid by such party to Fidelity pursuant to Article
  II above. However, Fidelity shall not be required to make such a refund if a
  party’s non-participation is for a reason other than because the Initial Test
  Well was not spud in a timely manner as provided in Articles 3.1 or 3.2
  above.

2

	
 

	
 

	
ARTICLE IV – JOINT OPERATING AGREEMENT

	
 

	
4.1

	
The Parties
  agree that the Joint Operating Agreement attached as Exhibit “B” (“JOA”)
  shall, except as otherwise provided herein, govern all operations conducted
  on the Lease. If there is any conflict between the terms of this Agreement
  and the JOA, the terms of this Agreement shall prevail. This JOA shall
  designate Northstar as Operator. 

	
 

	
 

	
4.2

	
Fidelity’s Right to Data/Records.
  Notwithstanding anything to the contrary herein, as to the Initial Test Well
  or substitute thereto: (i) Northstar shall provide Fidelity with all of the
  data and information required to be given to a participating party under the
  JOA, including, specifically, Articles 5.8 and 5.9; and (ii) all audit rights
  and rights to records applicable to a non-operator in Article 5.5 and Exhibit
  “C” (COPAS) of the JOA shall also apply to Fidelity.

	
 

	
 

	
ARTICLE V – WELL COSTS

	
 

	
5.1

	
AFE. The
  entire cost, risk and expense of permitting and drilling the Initial Test
  Well to the Objective Depth is estimated to be $5,600,000, as reflected on
  the Authorization for Expenditure (“AFE”) attached as Exhibit “C”. Subject
  to the other provisions herein, each Party’s execution of this Agreement
  shall be considered as an agreement to participate in the Initial Test Well.
  Concurrent with execution of this Agreement, the Parties agree to execute the
  JOA and AFE, and to immediately return to Northstar the executed AFE. All
  costs associated with the Initial Test Well on the Lease shall be borne by
  the Parties as set forth below and pursuant to the terms and conditions of
  the JOA and this Agreement.

	
 

	
 

	
5.2

	
Working Interest.
  Ridgewood and Northstar agree to participate in the drilling of the Initial
  Test Well on the Lease on a promoted basis by paying all costs associated
  with the drilling of said well to Casing Point, including, if applicable, the
  costs of plugging and abandonment if the Initial Test Well is a dry hole, and
  as further provided below:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Working Interest 

  To Casing Point

	
 

	
Working Interest 

  After Casing 

  Point/Subsequent 

  Wells and Costs

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
Northstar

	
 

	
 

	
66.66667

	
%*

	
 

	
50

	
%

	
Ridgewood

	
 

	
 

	
33.33333

	
%*

	
 

	
25

	
%

	
Fidelity

	
 

	
 

	
0

	
%

	
 

	
25

	
%

	
 

	
 

	

	

	
 

	

	

	
 

	
 

	
 

	
 

	
100.00000

	
%

	
 

	
100

	
%

	
 

	
 

	
 

	
 

	
* up to the
  following maximum gross drilling cost expenditure:

	
 

	
 

	
 

	
*5.2.1

	
if the final
  approved AFE is a turnkey contract and such Initial Test Well is to be
  drilled pursuant to such turnkey contract, then the promote will be capped at
  110% of the turnkey contract AFE to Casing Point; 

	
 

	
 

	
 

	
 

	
for the
  Initial Test Well or its substitute, and subject to the terms of Article 5.3
  below. Notwithstanding anything to the contrary herein, however, the
  disproportionate cost sharing for Ridgewood and Northstar as to the Initial
  Test Well will cease once cumulative costs and expenses for such well exceed
  the applicable amount in sub-paragraph 5.2.1, or upon reaching Casing Point,
  whichever occurs first. Any additional dry hole costs, as well as all
  subsequent costs on the Lease will be borne by Fidelity, Ridgewood and/or
  Northstar at the non-promoted percentages set forth above for its After
  Casing Point/Subsequent Wells and Costs working interest.

3

	
 

	
 

	
 

	
5.3

	
Substitute Well.
  If the Initial Test Well should encounter rock salt, heaving shale, excessive
  water flow, excessive pressure, igneous or other impenetrable formations or
  conditions at a lesser depth which would render drilling impractical and
  preclude the Parties from reaching the Objective Depth, then in such event
  Northstar and/or Ridgewood shall have the option for thirty (30) days
  following abandonment of said well to commence the actual drilling of a
  substitute well, to be located and drilled in such a manner as to achieve the
  same exploratory objective as attempted in the Initial Test Well. If timely
  commenced, this substitute well shall be treated for all purposes in this
  Agreement as though it was the Initial Test Well. Northstar and/or
  Ridgewood’s cumulative promoted cost on the Initial Test Well and any
  substitute well(s) shall be limited to the maximum drilling cost expenditures
  provided in the final AFE described above in Article 5.1, as limited in
  Article 5.2. All subsequent costs within the Lease shall be borne by Fidelity,
  Northstar and/or Ridgewood at the non-promoted percentages set forth above
  for After Casing Point/Subsequent Wells working interest.

	
 

	
 

	
ARTICLE VI – EARNED ASSIGNMENT

	
 

	
6.1

	
Depending
  upon whether or not the Initial Test Well is drilled to the Objective Depth
  and subject to each such party’s satisfaction of all terms and obligations
  set forth in this Agreement, Fidelity shall execute and deliver to Northstar
  and Ridgewood respective assignments of interests in the Lease, as follows:

	
 

	
 

	
 

	
6.1.1

	
Record Title.
  Within five (5) business days following Fidelity’s receipt of written notice
  from the Operator that the Initial Test Well or substitute thereto has been
  drilled to the Objective Depth, Fidelity shall execute and deliver to
  Northstar, as to fifty percent of eight-eighths (50% of 8/8ths), and to
  Ridgewood, as to twenty-five percent of eight-eighths (25% of 8/8ths), an
  assignment of their respective record title interests in the Lease, said
  assignment(s) to be on the form of assignment attached hereto as Exhibit “D”;
  or if the Initial Test Well or substitute thereto was not drilled to the
  Objective Depth because of the same mechanical problems as those cited above
  in Article 5.3, then,

	
 

	
 

	
 

	
 

	
6.1.2

	
Operating
  Rights. Within five (5) business days following Fidelity’s
  receipt of written notice from the Operator that the Initial Test Well or
  substitute thereto has been drilled to a depth shallower than the Objective
  Depth and completed at such shallower depth as a well capable of producing
  oil and/or gas in paying quantities, then Fidelity shall execute and deliver
  to Northstar, as to fifty percent of eight-eighths (50% of 8/8ths), and to
  Ridgewood, as to twenty-five percent of eight-eighths (25% of 8/8ths), an
  assignment of their respective operating rights interests in the Lease as to
  those depths from the surface down to 100’ below the stratigraphic equivalent
  of the deepest sand or formation placed on production in that well, said
  assignment(s) to be on a mutually agreeable operating rights assignment form.

	
 

	
 

	
 

	
6.2

	
The
  assignments provided for above in sub-paragraphs 6.1.1 or 6.1.2 shall be
  effective as of the actual spud date of the Initial Test Well, and shall be
  subject to and Northstar and Ridgewood agree to bear their proportionate
  share of:

	
 

	
 

	
 

	
6.2.1

	
the existing
  lease royalty under the Lease;

	
 

	
 

	
 

	
 

	
6.2.2

	
a one
  percent of eight-eighths (1% of 8/8ths) overriding royalty interest under the
  Lease, effective May 1, 2006, to David R. Wood, being the consultant who
  generated the Lease prospect; and

	
 

	
 

	
 

	
 

	
6.2.3

	
a two and
  one-third percent of eight-eighths (2.33333% of 8/8ths) overriding royalty
  interest under the Lease to be reserved by Fidelity in the earned assignments
  to Northstar and Ridgewood; 

	
 

	
 

	
 

	
 

	
thus, delivering to Northstar and Ridgewood a
  proportionate eighty percent (80%) net revenue interest in the Lease.

4

	
 

	
 

	
 

	
6.3

	
MMS Approval.
  The assignments provided for immediately above from Fidelity to Northstar and
  Ridgewood are subject to the Minerals Management Service’s (“MMS”) approval
  and Fidelity will not be liable for any damages or loss of opportunity to
  Northstar or Ridgewood if the MMS fails to approve the assignment(s) due to
  an action caused by Northstar or Ridgewood. Northstar and Ridgewood agree to
  execute any necessary documents and take all other actions reasonably
  necessary, if any, to assist Fidelity in obtaining MMS approval.

	
 

	
 

	
ARTICLE VII - CONTINUOUS DRILLING - ADDITIONAL WELL

	
 

	
7.1

	
If the
  Initial Test Well or substitute thereto is not drilled to the Objective Depth
  but said Initial Test Well or substitute thereto is completed in a shallower
  zone as a well capable of producing oil and/or gas in paying quantities and
  earned an assignment of operating rights pursuant to sub-paragraph 6.2.1
  above, then Northstar and/or Ridgewood shall have the option to maintain
  their respective rights under this Agreement to earn the record title
  assignment provided for above in sub-paragraph 6.1.1 by commencing the actual
  drilling of another well within 180 days after release of the drilling rig
  from the preceding well (“Additional Well”). The Additional Well shall be
  drilled to the same Objective Depth or deeper, if proposed and in the manner
  and subject to the terms and conditions as for the Initial Test Well. If such
  record title assignment rights are earned, then the applicable Parties agree
  to make those assignments and/or re-assignments necessary in order to
  effectuate the intent of sub-paragraph 6.1.1. Notwithstanding anything to the
  contrary herein, however, and regardless of whether or not the promoted cost
  cap level provided in Article V has been reached as to the Initial Test Well
  or substitute thereto, such promoted costs are not cumulative as to any
  Additional Well. So, Northstar and/or Ridgewood shall pay all costs for any
  such Additional Well in accordance with Article V at the promoted levels
  provided therein as if the Initial Test Well and any substitute thereto had
  not been drilled. Failure to commence actual drilling operations within said
  180 day period shall cause this Agreement to terminate in its entirety as to
  any portion of the Lease not already earned by Northstar and/or Ridgewood,
  without further notice or demand by Fidelity.

	
 

	
 

	
ARTICLE VIII - NOTICES

	
 

	
8.1

	
Notices. All
  offers, notices, reports and other information to be furnished between the
  Parties under the provisions of this Agreement shall be forwarded by prepaid
  mail or by prepaid telegram or facsimile, addressed as provided in Exhibit
  “A”, unless or until a different address is specified in writing and
  delivered as set forth in Article 8.2.

	
 

	
 

	
8.2

	
Timing of Notice. The originating notice given under any provisions hereof shall
  be deemed to be given only when received by the Party to whom such notice is
  directed, and the time for such Party to give any notice and response thereto
  shall run from the date the originating notice is received. Each Party shall
  have the right to change its address at any time and from time to time by
  giving written notice thereof to the other Party. 

	
 

	
 

	
ARTICLE IX – NORTHSTAR/RIDGEWOOD REPRESENTATIONS AND WARRANTIES:

	
 

	
 

	
 

	
Northstar
  and Ridgewood, respectively, represent and warrant the following:

	
 

	
 

	
9.1

	
THAT IT IS AN EXPERIENCED AND KNOWLEDGEABLE
  INVESTOR IN OIL AND GAS PROPERTIES, HAS THE FINANCIAL AND BUSINESS EXPERTISE
  TO EVALUATE THE MERITS AND RISKS OF THE TRANSACTIONS COVERED BY THIS
  AGREEMENT, AND HAS RELIED SOLELY ON THE BASIS OF ITS OWN INDEPENDENT
  INVESTIGATION OF THE LEASE FOR ALL PURPOSES. NORTHSTAR AND RIDGEWOOD EACH
  ACKNOWLEDGE THAT IT HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF PERSONS IT
  DEEMED APPROPRIATE CONCERNING THE CONSEQUENCES OF THE PROVISIONS OF THIS
  AGREEMENT AND HEREBY WAIVES ANY AND ALL RIGHTS TO CLAIM THAT IT IS AN
  UNSOPHISTICATED INVESTOR IN OIL AND GAS PROPERTIES. 

5

	
 

	
 

	
9.2

	
THAT IT IS QUALIFIED WITH THE MMS TO
  POSSESS, HOLD AND, IF APPLICABLE, SERVE AS OPERATOR AND/OR LEASEHOLDER OF A
  FEDERAL OFFSHORE LEASE, AND THAT IT IS IN GOOD STANDING WITH THE MMS.

	
 

	
 

	
9.3

	
THAT IT SHALL ACT UNDER THIS AGREEMENT IN A
  PRUDENT MANNER, IN ACCORDANCE WITH GOOD OIL FIELD PRACTICES, IN COMPLIANCE
  WITH THE PROVISIONS OF THE LEASE AND RELATED AGREEMENTS, AND IN COMPLIANCE
  WITH APPLICABLE LAWS AND REGULATIONS, INCLUDING APPLICABLE ENVIRONMENTAL LAWS
  AND REGULATIONS. NORTHSTAR AND RIDGEWOOD FURTHERMORE WILL ACT WITH INTEGRITY
  AND GOOD FAITH IN THE CONDUCT OF BUSINESS UNDER THIS AGREEMENT.

	
 

	
 

	
ARTICLE X - MISCELLANEOUS

	
 

	
10.1

	
Successor and Assigns.
  Except as otherwise expressly provided herein, the provisions of this
  Agreement shall inure to the benefit of and be binding upon the successors,
  assigns, heirs, executors and administrators of the Parties.

	
 

	
 

	
10.2

	
Assignment Restrictions. This Agreement
is personal in nature and, consequently, the obligations assumed by Northstar
and Ridgewood under this Agreement may not be assigned to any party except to
an Affiliate or subsidiary owned or controlled by Northstar or Ridgewood, or
Ridgewood Drilling Fund(s), owned, managed or controlled by Ridgewood, or as
otherwise provided herein prior to earning the assignment provided for above
in Article VI; provided, however, the foregoing will not constitute a
restriction on the right of Northstar and Ridgewood to sell or assign, in
accordance with and subject to the terms of this Agreement, any of its
leasehold interest following its receipt of an assignment of interest in the
Lease under the terms hereof, provided that the assigned interest is made
specifically subject to this Agreement. The terms and provisions hereof shall
constitute a covenant running with the lands, leasehold and the Lease
acquired hereunder and any such assignment by Northstar and Ridgewood shall
be made expressly subject to the terms and provisions of this Agreement. 

	
 

	
 

	
10.3

	
This
  Agreement, including all Exhibits attached hereto, constitutes the full and
  entire understanding and agreement between the Parties relating to the
  matters herein, and except as otherwise provided herein, supersedes any
  previous agreements or understandings, written or oral, in effect between the
  Parties relating hereto. This Agreement may be supplemented, altered,
  amended, modified, or revoked in writing only, which writing must be signed
  by all Parties hereto. The headings are for convenience only and have no
  significance in the interpretation of the Agreement.

	
 

	
 

	
10.4

	
Applicable Law.
  This Agreement shall be governed by and construed in accordance with the laws
  of the State of Texas and shall be subject to all applicable state and
  federal laws, rules and regulations of public bodies having jurisdiction over
  the Lease. In the event any provision of this Agreement is, or the operations
  contemplated hereby, are found to be inconsistent with or contrary to any
  such laws, rules or regulations, the latter shall be deemed to control, and
  thereafter, this Agreement shall be regarded as modified accordingly, and as
  so modified, shall continue in full force and effect.

	
 

	
 

	
10.5

	
This
  Agreement is not intended to and shall not be construed to create any mining
  partnership, commercial partnership, any other partnership or an association
  for profit between or among the Parties.

6

	
 

	
 

	
10.6

	
Northstar
  and Ridgewood acknowledge that the lands covered by the Lease may or have
  been used for oil and gas drilling and production operations, related oil
  field operations and possibly for the storage and disposal of hazardous
  substances. Fidelity, its respective affiliates, employees, agents or
  representatives, do not make any express or implied representation or
  warranty as to the existence or non-existence of such conditions or hazardous
  substances, and each such party expressly disclaims any and all liability
  resulting therefrom.

	
 

	
 

	
10.7

	
This
  Agreement is not intended to create, and shall not be construed to create, a
  relationship of partnership, joint venture or an association for profit
  between or among the Parties hereto. Notwithstanding any provision herein
  that the rights and liabilities hereunder are several and not joint or
  collective, or that this Agreement and operations hereunder shall not
  constitute a partnership, if, for federal income tax purposes, this Agreement
  and the operations hereunder are regarded as a partnership, each Party
  thereby affected elects to be excluded from the application of all of the
  provisions of Subchapter K, Chapter 1, Subtitle “A”, of the Internal Revenue
  Code of 1986, as amended (“Code”), as permitted and authorized by Section 761
  of the Code and the regulations promulgated thereunder. Should there by any
  requirement that each Party hereby affected give further evidence of this
  election, each such Party shall execute such documents and furnish such other
  evidence as may be required by the Federal Internal Revenue Service or as may
  be necessary to evidence this election. No such Party shall give any notices
  or take any other action inconsistent with the election made hereby. If any
  present or future income tax laws of the State of Texas or any future income
  tax laws of the United States contain provisions similar to those in
  Subchapter “K”, Chapter 1, Subtitle “A”, of the Code, under which an election
  similar to that provided by Section 761 of the Code is permitted, each Party
  hereby affected shall make such election as may be permitted or required by
  such laws. In making the foregoing election, each such Party states that the
  income derived by such party from operations hereunder can be adequately determined
  without the computation of partnership taxable income.

	
 

	
 

	
10.8

	
NO REPRESENTATION OF ACCURACY OR
  COMPLETENESS. FIDELITY MAKES NO WARRANTY OR
  REPRESENTATION, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AS TO THE ACCURACY
  OR COMPLETENESS OF ANY DATA, REPORTS, RECORDS, PROJECTIONS, INFORMATION OR
  MATERIALS NOW, HERETOFORE OR HEREAFTER FURNISHED OR MADE AVAILABLE TO
  NORTHSTAR OR RIDGEWOOD IN CONNECTION WITH THIS AGREEMENT, INCLUDING, WITHOUT
  LIMITATION, RELATIVE TO PRICING ASSUMPTIONS OR QUALITY OR QUANTITY OF
  HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE LEASE OR THE ABILITY OR
  POTENTIAL OF THE LEASE TO PRODUCE HYDROCARBONS OR ANY OTHER MATTERS CONTAINED
  IN THE MATERIALS FURNISHED OR MADE AVAILABLE TO NORTHSTAR OR RIDGEWOOD BY
  FIDELITY OR ITS AGENTS OR REPRESENTATIVES. ANY AND ALL SUCH DATA, RECORDS,
  REPORTS, PROJECTIONS, INFORMATION AND OTHER MATERIALS (WRITTEN OR ORAL)
  FURNISHED BY FIDELITY OR OTHERWISE MADE AVAILABLE OR DISCLOSED TO NORTHSTAR
  AND RIDGEWOOD SHALL NOT CREATE OR GIVE RISE TO ANY LIABILITY WHATSOEVER OF OR
  AGAINST FIDELITY AND ANY RELIANCE ON OR USE OF THE SAME SHALL BE AT THE SOLE
  RISK OF NORTHSTAR AND RIDGEWOOD TO THE MAXIMUM EXTENT PERMITTED BY LAW.

	
 

	
 

	
10.9

	
Performance of Duties.
  All Parties agree to assume, pay for, perform, and comply with all duties,
  obligations and liabilities (express or implied) incident to the ownership
  and operation of the Lease that is attributable to the operating rights or
  record title interest subject to this Agreement, including, but not limited
  to, the terms of the Lease, the JOA, applicable governmental orders, statues,
  regulations and ordinances.

	
 

	
 

	
10.10

	
No Waiver. The failure of a Party to
  insist upon strict performance of any provision hereof shall not constitute a
  waiver of, or estoppels against asserting, the right to require such
  performance in the future, nor shall a waiver or estoppels in any one
  instance constitute a waiver or estoppels with respect to a later breach of a
  similar nature or otherwise.

7

	
 

	
 

	
10.11

	
Further Assurances. In connection with
  this Agreement as well as all transactions contemplated by this Agreement,
  the Parties agree to execute and deliver such additional documents and
  instruments and to perform such additional acts as may be reasonably
  necessary or appropriate.

          In
witness thereof, this Participation Agreement is made effective as of the
effective date first written above.

	
 

	
 

	
 

	
 

	
 

	
WITNESS:

	
 

	
FIDELITY EXPLORATION & PRODUCTION
  COMPANY

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
By:

	
Michael C.
  Caskey

	
 

	
 

	
 

	
Executive
  Vice President & Chief Operating Officer

	
 

	
 

	
 

	
 

	
WITNESS:

	
 

	
NORTHSTAR GOM, LLC

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
By:

	
Brian H.
  Macmillan

	
 

	
 

	
Title: 

	
Vice
  President - Land

	
 

	
 

	
 

	
WITNESS:

	
 

	
RIDGEWOOD ENERGY CORPORATION

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
By:

	
W. Greg
  Tabor

	
 

	
 

	
Title:

	
Executive
  Vice President

8

	
 

	
 

	
STATE OF
  TEXAS

	
§

	
COUNTY OF
  HARRIS

	
§

BEFORE ME, the
undersigned authority, on this day personally appeared Brian H. Macmillan,
known to me to be the person whose name is subscribed to the foregoing
instrument as Vice President - Land of Northstar GOM, LLC, and acknowledged to
me that he executed the same for an on behalf of said corporation, for the
purposes and consideration therein expressed, and in the capacity therein
stated. 

GIVEN under my
hand and seal of office this ______ of ____________________ 2008.

	
 

	
 

	
 

	

	
 

	
Notary
  Public, State of Texas

	
 

	
My
  Commission Expires: 

	
 

	
 

	
STATE OF
  TEXAS

	
§

	
COUNTY OF
  _____

	
§

BEFORE ME, the
undersigned authority, on this day personally appeared __________________,
known to me to be the person whose name is subscribed to the foregoing
instrument as ___________________of Ridgewood Energy Corporation, and
acknowledged to me that he executed the same for an on behalf of said
corporation, for the purposes and consideration therein expressed, and in the
capacity therein stated. 

GIVEN under
my hand and seal of office this ______ of ____________________ 2008.

	
 

	
 

	
 

	

	
 

	
Notary
  Public, State of Texas

	
 

	
My
  Commission Expires: 

	
 

	
 

	
STATE OF
  COLORADO

	
§

	
COUNTY OF
  DENVER

	
§

BEFORE ME, on
this ____________ day of
______________, 2008, the undersigned Notary Public, on this day personally
appeared Michael C. Caskey, who, being by me duly sworn, did say that he is the
Executive Vice President & Chief Operating Officer of Fidelity Exploration
& Production Company, and that said instrument was signed in behalf of said
corporation by authority of its Board of Directors and said Michael C. Caskey
acknowledged said instrument to be the free act and deed of said corporation.

	
 

	
 

	
 

	

	
 

	
Notary
  Public

	
 

	
My
  commission expires: ____________________

9Exhibit
10.3

PARTICIPATION
AGREEMENT

LLOG GC 141 PROSPECT

This Participation Agreement (“Agreement”) is entered
into and made effective this 1st day of March, 2008 (“Effective Date”) by and
between LLOG
Exploration Offshore, Inc. (“LLOG”), whose mailing address is 11700
Old Katy Road, Suite 295, Houston, Texas 77079 and Ridgewood Energy Corporation, (“Ridgewood”),
whose mailing address is 11700 Old Katy Road, Suite 280, Houston, Texas 77079,
herein referred to collectively as “Parties” and individually as a “Party”.

WITNESSETH

WHEREAS, LLOG has acquired leasehold
interests to OCS Oil and Gas lease OCS-G 21785 covering Green Canyon Block 141,
acquired by LLOG from Westport Oil & Gas Corporation and Anadarko
Production Company (hereinafter referred to as the “Prospect”), and 

WHEREAS, pursuant to that certain Offer to
Participate dated February 11, 2008 and that certain conditional letter of
acceptance dated February 15, 2008 by and between LLOG and Ridgewood covering
the Prospect, Ridgewood has advised LLOG of its desire to participate in the
drilling of the initial exploratory well on the Prospect, and

WHEREAS, LLOG and Ridgewood desire to set
forth the terms and conditions under which Ridgewood shall participate in the
initial exploratory well and receive an assignment of an interest in the Leases
comprising the Prospect, all as more fully provided for herein, and

NOW, THEREFORE, for and in consideration of
the sum of Ten Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed,
together with the mutual covenants, conditions, and obligations contained
herein, LLOG and Ridgewood do hereby enter into this Agreement under the
following terms and conditions:

ARTICLE
I

DEFINITIONS

1.1     AFE:
shall mean the Authorization for Expenditure for the initial exploratory well
on the Prospect, a copy of which is attached hereto as Exhibit “A-1”.

1.2     Contract
Area: shall mean all of Green Canyon Block 141 and the
South-half of the South-half (S/2 S/2) of Green Canyon Block 97.

1.3     Initial
Exploratory Well (“IEW”): shall mean the first well or its
substitute well(s), as provided for in Article III below, to be drilled within
the Contract Area to the Objective Depth.

1

1.4     Lease(s): shall
mean the Federal OCS Oil and Gas Leases described as OCS-G 21785, Green Canyon
Block 141.

1.5     Objective
Depth: shall
mean a true vertical depth of at least 14,900 feet true vertical depth (15,706’
measured depth), or to a depth sufficient to test the Lentic 1 section, as
defined hereinafter, whichever is deeper. For the purposes of this Agreement,
the Lentic 1 section shall be deemed drilled to a sufficient depth when the IEW
has been drilled to a depth sufficient to evaluate the seismic trough amplitude
event observed at 4.250 seconds on Inline 1777 and Crossline 2071 of the TGS
Diamond 3-D Seismic Survey. Such Lentic 1 section is also identified as the
stratigraphic equivalent of the Lentic 1 section found in the Conoco OCS_G 5093
#1 well located in Green Canyon Block 142 at the interval from 14190’ to 14830’
true vertical depth.

1.6     Operating
Agreement: shall mean the Green Canyon Block 141 Prospect
Operating Agreement attached hereto as Exhibit “B” to be executed among the
working interest owners effective as of March 1, 2008.

1.7     Well Plan:
shall mean the Well Plan for the IEW attached hereto as Exhibits “A-2”, “A-3”
and “A-4”.

1.8     Capitalized terms used throughout this
Agreement and not defined in Sections 1.1 through 1.7 above, shall have the
meanings ascribed to them elsewhere in this Agreement or in the Exhibits
attached hereto.

Article II

EXHIBITS

     The
following Exhibits are attached hereto and made a part of this Agreement: 

	
 

	
 

	
 

	
 

	
Exhibit
  “A-1”

	
Authority
  for Expenditure OCS-G 21785 #2 Well

	
 

	
 

	
 

	
 

	
Exhibit “A-2”

	
Well Schematic for OCS-G 21785 #2 Well

	
 

	
 

	
 

	
 

	
Exhibit “A-3”

	
Directional Survey for OCS-G 21785 #2 Well

	
 

	
 

	
 

	
 

	
Exhibit “A-4”

	
Pore Pressure, Fracture Pressure for OCS-G 21785 #2
  Well

	
 

	
 

	
 

	
 

	
Exhibit “B”

	
Operating Agreement

	
 

	
 

	
 

	
 

	
Exhibit “C”

	
Geologic and Data Information Requirements of
  Ridgewood

	
 

	
 

	
 

	
 

	
Exhibit “D”

	
Form of Assignment of Record Title Interest

	
 

	
 

	
 

	
 

	
Exhibit “E”

	
Existing Burdens on the Contract Area

2

Article III

IEW Participation

          3.1     Subject to rig availability, permitting
and any regulatory approvals by the MMS, on or before April 30, 2008, LLOG as
Operator shall commence the drilling of the IEW at a location that is 7726’ FWL
and 1364’ FSL of OCS-G 31694, Green Canyon Block 97 and drill the IEW to the
Objective Depth in accordance with the AFE and Well Plan. Ridgewood shall bear
and pay twenty-five percent (25%) of the costs and expenses of the IEW.
Ridgewood, having reviewed the Well Plan and AFE with all particulars (i.e.
casing program, mud system, logging/evaluation program, and TD criteria),
hereby acknowledges its agreement with the IEW well design, including but not
limited to, well location (surface and bottom-hole) and the projected
penetration point into the objective interval and does hereby approve such Well
Plan and AFE for the IEW and elects to participate therein for its 25% working
interest. 

          3.2     In the event in the drilling of the IEW
there should be encountered rock salt, heaving shale, excessive water flow,
excessive pressure, igneous or other impenetrable formation or conditions which
would render impracticable and preclude drilling the IEW to the Objective
Depth, then and in such event any party to the Operating Agreement described in
Article IV below may propose within one hundred and twenty (120) days
following rig release for such well the drilling of a substitute well
(“Substitute Well”) provided same is drilled to the same objective zone or
zones as the IEW. If a Substitute Well is proposed under the Operating
Agreement and Ridgewood is a participating Party, this Participation Agreement
shall remain in full force and effect as though the Substitute Well was the
IEW. If a Substitute Well is proposed under the Operating Agreement and
Ridgewood is not a participating Party, this Participation Agreement shall
terminate and the terms of the Operating Agreement shall apply and govern the
interests of the Parties.

Article IV

Operating Agreement and Area of Mutual Interest

          4.1     All operations on the Contract Area
shall be governed by the Operating Agreement attached hereto as Exhibit “B”. The
Parties to the Operating Agreement may, by agreement amongst them, amend the
Operating Agreement from time to time. The Parties agree that all provisions of
the Operating Agreement shall apply to all operations conducted after the
Effective Date within the Contract Area, except as otherwise provided in this
Agreement. Should any conflict or inconsistency exist between the Operating
Agreement and this Agreement as to the matters addressed herein, or in the
event this Agreement addresses matters not included in the Operating Agreement,
this Agreement shall prevail.

          4.2     LLOG
shall provide Ridgewood with any and all raw well data and information obtained
and/or results of analyses performed through the conduct of the drilling of any
wells by LLOG on the Contract Area in which Ridgewood is a participant, as
further provided for in Exhibit “C”, and any additional data and/or information
that Ridgewood may become entitled to pursuant to the terms of the Operating
Agreement. All data delivered to Ridgewood as provided in this Section 4.3
shall be delivered to Ridgewood pursuant to the Operating Agreement.

3

          4.3     LLOG and Ridgewood
hereby create an Area of Mutual Interest (“AMI”) covering the South-half of the
South-half (S/2 S/2) of Green Canyon Block 97. This AMI shall terminate three
(3) years after the Effective Date, unless earlier terminated by the terms
herein. If a Party acquires an interest or a right to acquire an interest in
Green Canyon Block 97 (the “Acquiring Party”), the interests of the Parties
shall be seventy five percent (75%) to LLOG if Ridgewood is the Acquiring Party
and twenty five percent (25%) to Ridgewood if LLOG is the Acquiring Party.
Under any circumstance, within fifteen (15) days after the date on which the
Acquiring party acquired the interest (or the right to acquire the interest),
it shall notify the non-Acquiring party in writing of such acquisition. The
notice shall describe the interest acquired and the actual costs, burdens
and/or obligations reserved or to be reserved to acquire such interest. Upon
receipt of such notice, the non-Acquiring party shall have thirty (30) days
after receipt of the notice to exercise its right to acquire its share of such
interest. Upon receipt of the non-Acquiring party’s share of the costs or upon
receipt of the non-Acquiring party’s written acceptance of the burdens or
obligations which must be incurred to earn the interest, the Acquiring party
shall assign the appropriate interest to the non-Acquiring party. 

Article V.

Reimbursement of Land Sunk Costs and Assignment of Leases

          5.1     Within five (5)
business days of Ridgewood’s execution of this Participation Agreement,
Ridgewood agrees to pay LLOG $248,075.00, which represents Ridgewood’s
proportionate share of the Lease bonuses, rentals and geological and
geophysical costs (“Land Sunk Costs”) incurred by LLOG prior to the Effective
Date for each Prospect. 

          5.2     Within five (5)
business days of the receipt by LLOG of Ridgewood’s payment as set forth in
Article 5.1 above, LLOG shall execute and deliver or cause to be executed and
delivered to Ridgewood an assignment of an undivided twenty-five percent (25%)
record title interest in Lease OCS-G 21785 covering Green Canyon Block 141.
Thereafter ownership of the Leases in the Contract Area shall be as follows:

	
 

	
 

	
 

	
 

	
LLOG

	
75%

	
 

	
Ridgewood Energy Corporation

	
25%

The form of assignments into Ridgewood shall be
similar to the form of Assignment attached hereto as Exhibit “D”. Ridgewood
shall bear its proportionate 25% share of the Lease royalty and its proportionate
25% share of the overriding royalty burdens on the Leases, such overriding
royalty interest burdens being more fully described on Exhibit “E” attached
hereto.

          5.3     Any
assignment(s) of record title interest delivered by the Parties pursuant to
this Agreement shall be delivered without warranty of title, whether express or
implied, except as to persons lawfully claiming by, through or under the
assignor, but not otherwise, and shall be free and clear of all burdens or
other encumbrances on the leasehold, except for the assignor’s share of the
lessor’s royalty, overriding royalty and those existing burdens as set forth in
Exhibit “E” attached hereto. Further, any such assignment(s) delivered by the
Parties pursuant to this Agreement shall be subject to the terms of this
Agreement, the MC 489 Agreement and the Operating Agreement.

4

          5.4     The
assignment(s) of record title interest executed pursuant to this Agreement
require approval by the MMS. The assignee under any assignment(s) of record
title interest executed pursuant to this Agreement shall promptly (i) file of
record any assignment of record title interest in the appropriate governmental
records and (ii) file for approval with the MMS (or other applicable
governmental agencies) all assignment documents for the assigned interest.
Should approval of the MMS (or any other similar governmental agency having
jurisdiction) be denied, the Party receiving notice of such denial agrees to
provide the other Party with written notice of such occurrence, along with a
copy of all associated written communications, and the Parties agree to develop
a revised form of assignment in an effort to meet the MMS’ or other appropriate
agency’s requirements for approval. In the alternative, each Party shall
execute and deliver, or cause to be executed and delivered, such other
documents and take such other actions as a Party may reasonably request in an
effort to comply with any such approval requirements. Ridgewood shall execute
the necessary “Designation of Operator” form (MMS Form 1123) designating LLOG
as the operator of the Leases and as designated applicant for oil spill
financial responsibility for the Leases, along with any other documents
required to allow LLOG to serve as operator of the Leases.

          5.5     Either Party’s rights
and obligations hereunder may be assigned to a willing and financially able
party subject to the terms and conditions of the Operating Agreement. This
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective heirs, successors, representatives and assigns and shall
constitute a covenant running with the lease comprising the Contract Area.

ARTICLE VI

APPLICABLE LAW

          6.1     THIS AGREEMENT AND ALL OPERATIONS
CONDUCTED HEREUNDER BY THE PARTIES SHALL BE SUBJECT TO ALL VALID APPLICABLE
LAWS, RULES, REGULATIONS AND ORDERS, INCLUDING ALL FEDERAL LAWS, RULES,
REGULATIONS AND ORDERS (“FEDERAL LAW”). TO THE EXTENT REQUIRED BY FEDERAL LAW,
THE LAWS OF THE STATE ADJACENT TO THE CONTRACT AREA SHALL APPLY. THIS AGREEMENT
SHALL OTHERWISE BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE
LAWS OF THE STATE OF TEXAS, EXCLUSIVE OF ANY PROVISIONS THAT WOULD DIRECT THE
APPLICATION OF THE SUBSTANTIVE LAW OF ANY OTHER JURISDICTION.

5

ARTICLE VII
NOTICES

          7.1     Any
notices, communications, or documents that either of the Parties desire to give
to the other Party or that may be required to be delivered to the other Party
pursuant to this Agreement shall be in writing and sent via telecopy, delivered
in person or sent certified mail, postage prepaid, return receipt requested,
addressed to the Parties at the following respective addresses stated for each:

	
 

	
 

	
 

	
 

	
LLOG Exploration Offshore, Inc. 

	
 

	
11700 Old Katy Road, Suite 295

	
 

	
Houston, Texas 77079

	
 

	
Attention:

	
Michael Altobelli

	
 

	
Telephone:

	
(281) 752-1105

	
 

	
Facsimile:

	
(281) 296-0219

	
 

	
 

	
 

	
 

	
Ridgewood Energy Corporation

	
 

	
11700 Old Katy Road, Suite 280

	
 

	
Houston, Texas 77079

	
 

	
Attention:

	
Randy Bennett

	
 

	
Telephone:

	
(281) 293-9384

	
 

	
Facsimile

	
(281) 203-7705

For purposes hereof, if facsimile or personal delivery
is not possible, refusal by any Party hereto to accept correspondence sent by
certified mail or two (2) unsuccessful attempts by the U.S. Postal Service to
serve any communication sent by certified mail shall be deemed receipt of such
correspondence. Any notice delivered on Saturday, Sunday, a legal holiday or
after 4:15 p.m. on any other day, in the office of the recipient, shall be
deemed to have been delivered on the business day next following the date of
actual receipt. Either Party may change its address for notices by written
notice to the other of them in accordance with this Section.

ARTICLE VIII
TERM

          8.1     The term of this
Agreement shall commence on the Effective Date, and shall terminate upon the
earlier of: (i) December 31, 2008 should the IEW not be commenced by such date,
or (ii) the date the IEW reaches the Objective Depth, or (iii) the expiration
of the Operating Agreement, or (iv) by the mutual agreement of the Parties,
whichever event occurs first. Upon termination of this Agreement any and all
future operations to be conducted on the Lease(s) for the joint benefit of the
Parties shall be conducted under the Operating Agreement.

ARTICLE
IX

RENTALS

          9.1     LLOG shall make all rental payments on
behalf of the Parties for the Contract Area during the term of this Agreement.
LLOG shall use reasonable care to make proper and timely payment of all rentals
accruing under the terms of the lease(s) in the Contract Area. Upon receipt by
Ridgewood of proper evidence of any such payments and LLOG’s invoice for
Ridgewood’s twenty-five percent (25%) interest share of such rental payments
accruing from and after the Effective Date, Ridgewood shall reimburse LLOG for
its twenty-five percent (25%) interest share of such rentals. In the event LLOG
fails to make proper payment of any rental accruing under the terms of the
Lease(s) where such payment is required to continue the Lease(s) in force, LLOG
shall not be liable to Ridgewood for any resulting damages or any loss which
results from such non-payment, unless such non-payment results from LLOG’s
gross negligence or willful misconduct. After the execution and delivery of the
assignments referenced in Article V, the applicable terms in the Operating
Agreement shall control as to the payment of rentals.

6

ARTICLE X

MISCELLANEOUS PROVISIONS

          10.1    This Agreement together
with the instruments referred to herein and the Exhibits attached hereto,
embody the entire agreement between the Parties with regard to the subject
matter hereof, and supersede all other prior agreements, arrangements,
understandings, negotiations and discussions, whether oral or written between
the Parties relating to the subject matter hereof and there are no warranties,
representations or other agreements between the Parties in connection with the
subject matter hereof except as specifically set forth in this Agreement or in
subsequent documents delivered pursuant thereto. This Agreement may be
supplemented, altered, amended, modified or revoked only in writing, signed by all
Parties hereto.

          10.2    Except for the
definition headings contained in Article 1, all of the captions, numbering
sequences and paragraph headings used in this Agreement are inserted for
convenience only and shall in no way define, limit or describe the scope or
intent of this Agreement or any part thereof, nor shall they have any legal
effect other than to aid in a reasonable interpretation of this Agreement.

          10.3    Each Party has had the benefit of independent representation with
respect to the subject matter of this Agreement. This Agreement, though drawn by one Party, shall be considered 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 events of negotiation, drafting or execution hereof.

          10.4    Each of the Exhibits attached to this Agreement are incorporated into
this Agreement by reference as fully as if the text of each Exhibit were set
forth within the body of this Agreement.

          10.5    In the event of any conflicts or inconsistencies between the provisions
of this Agreement and any other agreement, including any agreement referenced
herein to be executed by the Parties hereafter, the provisions of this
Agreement shall control to the extent of such conflict.

          10.6    The Parties agree that prior to making any public announcement or
statement with respect to the transactions or operations contemplated by this
Agreement, the Party desiring to make such public announcement shall obtain the
prior written approval of the other Party to the text of such announcement or
statement, which approval shall not be unreasonably withheld; provided,
however, that any Party shall have the right, for any reason, to deny approval
in the event the announcement or statement specifically names or otherwise
identifies said Party. Nothing contained in this Article 10.6 shall be
construed to require any Party to obtain approval to disclose information to
any State or Federal governmental authority or agency, to the extent required
by applicable law or by any applicable rules, regulations or orders of any
governmental authority or agency having jurisdiction, or as necessary to comply
with any disclosure requirements of applicable securities laws or any applicable
stock exchanges, or if otherwise permitted under the terms of the Operating
Agreement.

7

          10.7    This
Agreement may be executed by signing the original or a counterpart hereof. If
this Agreement is executed in multiple counterparts, each counterpart shall be
deemed an original and all of which when taken together shall constitute but
one and the same Agreement with the same effect as if all Parties had signed
the same instrument. This Agreement may also be ratified by separate instrument
referring to this Agreement and adopting by reference all the provisions of
this Agreement. A ratification shall have the same effect as an execution of
the original Agreement.

          10.8    This Agreement is
subject to the arbitration provisions of the Operating Agreement.

          10.9    If any provision of this Agreement is for any reason held to violate any
applicable law, governmental rule or regulation, or if the provision is held to
be unenforceable or unconscionable, then such provision shall be deemed null
and void; but the invalidity of that specific provision shall not be held to
invalidate the remaining provisions of this Agreement. All other provisions in
the entirety of this Agreement (including all Exhibits) shall remain in full
force and effect unless the removal of the invalid provision destroys the
legitimate purposes of this Agreement, in which event this Agreement shall be
canceled and terminated. In the event any provision of this Agreement is or
shall become unenforceable because of changes in applicable laws, or interpretations
thereof, or should this Agreement fail to include a provision that is required
as a matter of law, the validity of the other provisions of this Agreement
shall not be affected. If those circumstances should arise, the Parties shall
negotiate in good faith the required modifications to this Agreement to place
themselves in the same position (insofar as possible), as they would have been
in but for the change in applicable laws or interpretations thereof. If they
cannot agree, the matter shall be submitted to arbitration.

          10.10   This Agreement does not
benefit or create any rights in any person or entity not a party to this
Agreement. It is expressly agreed that the duties, obligations and liabilities
of the Parties are several and not joint, and nothing contained herein shall be
construed to create or impose a partnership duty, obligation or liability on
any of the Parties. Further, each Party represents that upon execution of this
Agreement it has secured all necessary management approvals or other corporate
approvals necessary to make this Agreement a fully binding contract.

          10.11   Waiver:
No waiver by either Party of any default by the other Party in the performance
of any provision, condition or requirement herein shall be deemed to be a
waiver of, or in any manner a release of the other Party from, performance of
any other provision, condition or requirement herein, nor deemed to be a waiver
of, or in any manner a release of the other Party from, future performance of
the same provision, condition or requirement; nor shall any delay or omission
of either Party to exercise any right hereunder in any manner impair the
exercise of any such right or any like right accruing to it thereafter.

8

          10.13   
Pre-Spud. LLOG will hold a pre-spud meeting for the benefit of the
participating party(s) on or before April 10, 2008.

EXECUTED as of the dates shown below, but effective
for all purposes as of the Effective Date.

	
 

	
 

	
LLOG
  Exploration Offshore, Inc.

	
 

	
 

	
By:

	
 

	
 

	

	
Name:

	
Michael Altobelli

	
Title:

	
Land Manager – GOM Deepwater

	
Date:

	
 

	
 

	

	
 

	
 

	
Ridgewood Energy Corporation

	
 

	
 

	
By

	
 

	
 

	

	
Name:

	
W. Greg Tabor

	
Title:

	
Executive Vice President

	
Date: 

	
 

	
 

	

9

Exhibit
“A-1”

Attached to and made a part of that certain Participation Agreement effective 

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and 

Ridgewood Energy Corporation.

AFE FOR OCS-G 21785 #2

10

Exhibit
“A-2”

Attached to and made a part of that certain Participation Agreement effective

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and

Ridgewood Energy Corporation.

WELL SCHEMATIC FOR OCS-G 21785 #2

11

Exhibit
“A-3”

Attached to and made a part of that certain Participation Agreement effective 

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and 

Ridgewood Energy Corporation.

DIRECTIONAL SURVEY FOR OCS-G 21785 #2 

12

Exhibit
“A-4”

Attached to and made a part of that certain Participation Agreement effective 

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and 

Ridgewood Energy Corporation.

PORE PRESSURE, FRACTURE PRESSURE FOR OCS-G 21785 #2

13

Exhibit “B”
Attached to and made a part of that
certain Participation Agreement effective

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and 

Ridgewood Energy Corporation.

OPERATING AGREEMENT

14

Exhibit
“C”

Attached to and made a part of that certain
Participation Agreement effective

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and

Ridgewood Energy Corporation.

GEOLOGIC AND DATA INFORMATION
REQUIREMENTS OF RIDGEWOOD

	
 

	
 

	
WELL:

	
OCS-G-21785 No. 2

	
LOCATION:

	
Green Canyon Block 141

	
OPERATOR:

	
LLOG Exploration Offshore, Inc.

	
ADDRESS:

	
11700 Old Katy Road, Suite 295

  Houston, Texas 77079

Ridgewood Energy Corporation (Ridgewood) requests the
following data:

	
 

	
 

	
 

	
 

	
DAILY REPORTS

	
 

	

	
 

	
BY FAX OR 

	
 

	
 

	
EMAIL:

	
Daily drilling reports by 8:00 AM to:

	
 

	
 

	
 

	
 

	
 

	
FAX: 281-

	
 

	
 

	
Mudlogs, LWD/MWD logs by 8:00 AM to ATTN: _____________ , FAX: 281-_______,
  (VOICE MAIL __________)

	
 

	
 

	
Cement Bond Logs by email
  to:

	
 

	
 

	
 

	
 

	
BY MAIL:

	
All preliminary (field) and final logs, reports and
  other data and correspondence to the above address to the attention of ___________ or as appropriate.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ENGINEERING AND REGULATORY DATA

	
 

	
 

	
 

	
COPIES

	
 

	
ITEM

	
 

	
FIELD

	
 

	
FINAL

	
 

	

	

	

	

	

	
 

	
Drilling Prognosis (complete drilling program)

	
 

	
 

	
 

	
2

	
 

	
Authority for Expenditure (AFE)

	
 

	
 

	
 

	
1

	
 

	
Location Plat and Elevation

	
 

	
 

	
 

	
1

	
 

	
Application for Permit to Drill, Approved Drilling
  Permit

	
 

	
 

	
 

	
1

	
 

	
Directional Wall Plot (if directional well)

	
 

	
2

	
 

	
N/A

	
 

	
Daily Drilling Report (Email or Fax Daily)

	
 

	
1

	
 

	
 

	
 

	
DST/Potential Test Reports, Reservoir Fluid Analyses

	
 

	
1

	
 

	
2

	
 

	
Directional Survey Report and Digital data (CD)

	
 

	
1

	
 

	
2

	
 

	
Completion/End of Well Reports

	
 

	
 

	
 

	
2

	
 

	
Other MMS/Government Reports and Correspondence

	
 

	
 

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
GEOLOGIC DATA

	
 

	
 

	
 

	
COPIES

	
 

	
ITEM

	
 

	
FIELD

	
 

	
FINAL

	
 

	

	

	

	

	

	
 

	
Geological Prognosis

	
 

	
 

	
 

	
1

	
 

	
Mudlogs, Pressure Logs & Show Rpts (Fax or
  Email Daily)

	
 

	
1

	
 

	
4

	
 

	
Mudlogs, Pressure Logs – Film

	
 

	
 

	
 

	
1

	
 

	
LWD Logs (Fax or Email Daily)

	
 

	
1

	
 

	
4

	
 

	
Wireline Logs (Email or Fax: 281-847-6006)

	
 

	
1

	
 

	
 

	
 

	
Open Hole Logs (LWD & Wireline) – Prints

	
 

	
2

	
 

	
4

	
 

	
Open Hole Logs (LWD & Wireline) – Film

	
 

	
 

	
 

	
1

	
 

	
Open Hole Logs (LWD & Wireline) – CD
  (LAS/DLIS/PDS/EMF)

	
 

	
 

	
 

	
2

	
 

	
Core/Sidewall Core Analyses - CD

	
 

	
1

	
 

	
2

	
 

	
Geochemical Analyses of cuttings, gas, liquid
  samples

	
 

	
1

	
 

	
2

	
 

	
Paleontological Analyses

	
 

	
1

	
 

	
2

	
 

	
Velocity Survey/VSP Data

	
 

	
1

	
 

	
2

	
 

	
Mudlogging Final Report (incl. LAS digital data)

	
 

	
 

	
 

	
2

15

	
 

	
 

	
 

	
 

	
 

	
WELL CUTTINGS SAMPLES

	
 

	
 

	
 

	
TYPE

	
 

	
SETS

	
 

	

	

	

	
 

	
Wet Samples

	
 

	
1

	
 

	
Washed and Dried Samples

	
 

	
None

	
 

	
Canned Geochemical Samples

	
 

	
None

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NOTIFICATION LIST

	
 

	
NAME/TITLE

	
 

	
OFFICE PHONE

	
 

	
Home Phone

	
 

	
EMAIL

	
 

	
CELL/PAGER

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
_________ (Geologist)

	
 

	
281-_______

	
 

	
281-

	
 

	
 

	
 

	
 

	
__________ (Res. Eng.)

	
 

	
281-________

	
 

	
281-304-8495

	
 

	
 

	
 

	
 

	
___________ (Drlg. Eng.)

	
 

	
281-________

	
 

	
281-

	
 

	
 

	
 

	
 

	
__________ (Ops. Eng.)

	
 

	
281-________

	
 

	
281-356-6687

	
 

	
 

	
 

	
 

          Please
notify ___________ or one of the above contacts prior to any unscheduled coring
or logging.

          Ridgewood
requests the following on the subject well:

	
 

	
 

	
 

	
 

	
I.

	
General Requirements

	
 

	
 

	
 

	
 

	
 

	
 

	
A.

	
In accordance with the
  Operating Agreement, Ridgewood, at its own risk and expense, through its
  representative, shall have complete and immediate access at all times to the
  well or wells and the records and information collected in relation thereto.
  Ridgewood may observe the conduct of operations, if desired. In this regard,
  Operator will provide Ridgewood transportation on a space-available basis to
  and from said well or wells on regularly scheduled trips at the sole risk of
  Ridgewood.

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
Ridgewood shall be notified in
  sufficient time to allow a representative to be present for all logging,
  testing, and coring operations and shall be notified when a show of oil or
  gas deemed worthy of evaluation is detected during operations. Such notice
  shall be given to one of the parties listed on the notification list.

	
 

	
 

	
 

	
 

	
II.

	
Drill Cuttings, Cores, and Fluid Samples 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
A.

	
Ridgewood requests a set of wet
  samples. Please have samples shipped to: 

	
 

	
 

	
 

	
 

	
______________________.

	
 

	
 

	
 

	
 

	
______________________
  

	
 

	
 

	
 

	
 

	
Houston,
  Texas ______

	
 

	
 

	
 

	
 

	
Phone:
  __________ Fax: ___________ 

	
 

	
 

	
 

	
 

	
Email:
  

16

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
If requested, and pending
  availability, the Operator shall provide Ridgewood with a sample of fluids
  recovered from wireline or conventional well tests. An accompanying
  transmittal letter for each sample should contain the well name, fluid type,
  test number, depth interval, date and time of collection, and any other
  pertinent data.

	
 

	
 

	
 

	
 

	
 

	
 

	
C.

	
Ridgewood shall be furnished a
  copy of all analyses performed by third-party vender(s) on cuttings, whole
  core or sidewall core samples, and fluid samples. Upon request, and pending
  availability, the Operator shall provide Ridgewood with a split of all whole
  core, rotary sidewall cores, and percussion sidewall cores for additional
  testing or analyses.

	
 

	
 

	
 

	
 

	
III.

	
Mudlogs, LWD/MWD Logs, Wireline Logs, Core Analyses, and
  Reports

	
 

	
 

	
 

	
 

	
 

	
 

	
A.

	
The 1” mud log, the 1” LWD/MWD
  log, and the mudlogger’s report should be faxed or emailed daily to Ridgewood
  as noted on page 1. On directional or deviated wells, both measured-depth
  (MD) and true-vertical-depth (TVD) logs are requested.

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
Prior to any unscheduled
  wireline logging, Operator shall notify Ridgewood so that Ridgewood may elect
  to have a representative present on location. 

	
 

	
 

	
 

	
 

	
 

	
 

	
C.

	
A graphical format of the
  wireline logs should be provided to Ridgewood as soon as possible after each
  log run. Email distribution of raster image files, faxing (LogNet-style),
  INSITE-ANYWHERE and Petrolink have been used successfully on past wells.
  

	
 

	
 

	
 

	
 

	
 

	
 

	
D.

	
Ridgewood should be provided
  with a final composite of the merged LAS files on wireline/LWD/MWD log
  digital data as soon as possible at the end of the well or after the final
  logging run. In addition, the digital data should be available as soon as
  possible after each intermediate log run.

	
 

	
 

	
 

	
 

	
 

	
 

	
E.

	
Ridgewood’s log and report
  requirements are listed on page 1.

	
 

	
 

	
 

	
 

	
IV.

	
Cement Bond Logs 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
A.

	
Ridgewood requests a copy
  of any Cement Bond Log be mailed and emailed to the attention of:

	
 

	
 

	
 

	
 

	
 

	
 

	
Mr. ____________

	
 

	
 

	
 

	
 

	
 

	
Ridgewood Energy
  Corporation

	
 

	
 

	
 

	
 

	
 

	
11700 Old Katy Road,
  Suite 280

	
 

	
 

	
 

	
 

	
 

	
Houston, Texas 77079

	
 

	
 

	
 

	
 

	
Email address:

	
____________________

17

Exhibit
“D”

Attached to and made a part of that certain Participation
Agreement effective 

March 1, 2008 by and between LLOG Exploration Offshore, Inc. and 

Ridgewood Energy Corporation.

***Block #***]

OCS-G
_____ 

(FORM OF)

ASSIGNMENT OF RECORD TITLE INTEREST

	
 

	
 

	
UNITED
  STATES OF AMERICA

	
§

	
OUTER
  CONTINENTAL SHELF

	
§

	
OFFSHORE
  LOUISIANA

	
§

          For
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and in consideration of the covenants and agreements of Assignee
herein contained, and subject to the terms and conditions hereinafter set
forth, LLOG
Exploration Offshore, Inc., a Louisiana corporation, whose address
is 433 Metairie Road, Suite 600, Metairie, Louisiana 70005 (“Assignor”), hereby
sells, transfers, assigns, conveys and delivers unto and Ridgewood Energy Corporation.,
whose address is 11700 Old Katy Road, Suite 280, Suite 280, Houston, Texas
77079 (“Assignee”), effective as of                 
          
       ,
at 7:00 a.m., local time where the Lease is located the “Effective Time”),           
              percent of
eight-eighths (       % of 8/8ths) record title interest in and
to the following oil and gas lease (the “Assigned Interest” ):

	
 

	
 

	
 

	
 

	
Serial Number OCS-G ___________________: Oil and Gas
  Lease of Submerged Lands under the Outer Continental Shelf Lands Act dated
  effective _________________, issued by the United States of America, as
  lessor, to _____________, as lessee, covering all of Block
  ____________, Mississippi Canyon, OCS Official Protraction Diagram, NG 15-2,
  containing approximately 5,760.00 acres, more or less (the “Lease”)

	
 

	
 

	
 

	
 

	
 

	

TO HAVE AND TO HOLD the Assigned Interest unto
  Assignee, its successors and assigns forever.

	
 

          This
Assignment of Record Title Interest is made free and clear of all burdens and
encumbrances on the Lease, except for the lessor’s royalty and those existing
burdens and encumbrances set forth in Exhibit “A” attached hereto in existence
as of the Effective Time and is delivered and accepted without any warranty of
title, express or implied, except as to persons lawfully claiming by, through
or under Assignor, but not otherwise, or other representations or warranties.
Assignee shall have the rights of full substitution and subrogation in and to
any and all rights and actions of warranty which the Assignor has or may have
against all preceding owners of the Assigned Interest. 

          Assignee
hereby accepts this Assignment of Record Title Interest subject thereto and
hereby assumes and agrees to fully discharge, comply with and perform its share
of all duties, liabilities, obligations, both express and implied, imposed on
the lessee of the Lease and to comply with all applicable state, federal and
local laws and the rules and regulations of all state and federal regulatory
and administrative bodies having jurisdiction over the Lease premises or
operations for and the production of oil and gas therefrom. 

          This
Assignment of Record Title Interest is subject to that certain Participation
Agreement dated effective March 1, 2008 by and between Assignor and Assignee
and that certain Operating Agreement dated effective July _, 2007 by and
between Assignor and Assignee.

18

          This
Assignment of Record Title Interest is subject to the approval of the Minerals
Management Service of the United States Department of the Interior and/or any
other governmental department or agency having jurisdiction, which approval(s)
Assignee shall earnestly seek to secure by promptly filing this Assignment of
Record Title Interest with the appropriate offices of same.

          The
provisions hereof shall bind and inure to the benefit of Assignee and Assignor
and their respective affiliates, heirs, devisees, legal representatives,
successors and assigns. 

          EXECUTED
this _______ day of _____ 2008, but effective as of the above-stated Effective
Time.

	
 

	
 

	
 

	
WITNESSES:

	
ASSIGNOR:

	
 

	
 

	
 

	
 

	
LLOG
  Exploration Offshore, Inc. 

	
 

	
 

	
 

	
 

	
By:

	
 

	

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title: 

	
 

	

	
 

	

	
 

	
 

	
 

	
WITNESSESS:

	
ASSIGNEE:

	
 

	
 

	
 

	
 

	
Ridgewood
  Energy Corporation

	
 

	
 

	
 

	
 

	
By:

	
 

	

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Title: 

	
 

	
 

	
 

	

	

	
 

	
 

19

	
 

	
 

	
STATE
  OF LOUISIANA

	
§

	
COUNTY
  OF __________

	
§

On this ___ day of _____ 2008, before me appeared
Kemberlia Ducote to me personally known, who, being by me duly sworn, did say
that she is the Secretary of LLOG Exploration Offshore, Inc., a Louisiana
corporation, and that the said instrument was signed on behalf of said
corporation by authority of its Board of Directors and appearer herein
acknowledged said instrument to be the free act and deed of said corporation.

          GIVEN
under my hand and seal of office the day and year last above written.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NOTARY PUBLIC in and for the aforesaid

	
 

	
 

	
 

	
County and State

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
State Notarial No.

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
My Commission expires

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
STATE
  OF TEXAS

	
§

	
COUNTY
  OF HARRIS

	
§

On this ___ day of _____ 2008, before me appeared
___________ to me personally known, who, being by me duly sworn, did say that
he is the ________ of Ridgewood Energy Corporation, a _____________
corporation, and that the said instrument was signed on behalf of said
corporation by authority of its Board of Directors and appearer herein acknowledged
said instrument to be the free act and deed of said corporation.

          GIVEN
under my hand and seal of office the day and year last above written.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NOTARY PUBLIC in and for the aforesaid

	
 

	
 

	
 

	
County and State

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
State Notarial No.

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
My Commission expires

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

20

Exhibit “E”

Attached
to and made a part of that certain Participation Agreement effective

March 1,
2008 by and between LLOG Exploration Offshore, Inc. and

Ridgewood
Energy Corporation.

EXISTING
BURDENS ON THE CONTRACT AREA

OCS-G 21785, Green Canyon Block
141

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
WI

	
 

	
 

	
NRI

	
 

	
 

	
 

	

	
 

	
 

	

	
LLOG EXPLORATION

	
 

	
 

	
1.00000000

	
 

	
 

	
0.79125000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
MMS ROYALTY

	
 

	
 

	
 

	
 

	
 

	
0.12500000

	
WESTPORT GENERATORS

	
 

	
 

	
 

	
 

	
 

	
0.00200000

	
KERR-MCGEE ORRI

	
 

	
 

	
 

	
 

	
 

	
0.00112500

	
WESTPORT DATA VENDOR

	
 

	
 

	
 

	
 

	
 

	
 

	
BLUE STREAK EXPLORATION

	
 

	
 

	
 

	
 

	
 

	
0.02000000

	
 

	
 

	
 

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.00000000

	
 

	
 

	
1.00000000

21

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