Document:

EXHIBIT
4.31

 

		ROSS MILLER	 
	Secretary of State	 
	204 North Carson Street, Suite 4	 
	Carson City, Nevada 89701-4520	 
	 (775) 684-5708	 
	Website: www.nvaoa.gov	 

 

	 	
        Filed in the office of

         

        /s/ Ross Miller

        Ross Miller

        Secretary of State

        State of Nevada
	Document Number
	 	201305724428-64
	 	Filing Date and Time
	 	08/29/2013 2:09 AM
	 	Entity Number
	 	E0424952013-4

 

	
        Articles of Incorporation

        (PURSUANT TO NRS CHAPTER 76)
	 

 

 

	USE BLACK INK ONLY-DO NOT HIGHLIGHT	ABOVE SPACE IS FOR OFFICE USE ONLY
	1.            Name of Corporation:	Eagleford Energy, Zavala Inc.
	2.           Registered Agent for Service of Process: (check one box only)	S
Commercial Registered Agent: 	
        National Registered Agent, Inc.

        Name

	 
	£
Noncommerical Registered Agent (name and address below)	OR	
         £
                                                      Office or Position with Entity

        (name and address below

	Nevada
	Street Address	City	Zip Code
	Nevada
	Mailing Address (if different from street address	City	Zip Code
	3.           Authorized Stock: (number of shares corporation is authorized to issue)	
         

         

        Number of Shares with par value:
	
         

         

        100,000
	
         

         

        Par value per share:
	
         

         

        $0.001
	Number of shares without par value:	 
	4.           Names and Addresses of the Board of Directors/Trustees: (each Director/Trustee must be at least 18 years of age; attach additional page if more than two directors/trustees)	1)    James Cassina	 	 
	Name	 	 
	1 King Street West, Suite 1505	
         

         

        Toronto,
	
         

         

        Ontario, Canada
	
         

         

        M5H 1A1

	Street Address	City	State	Zip Code
	2)	 	 	 
	Name	 	 	 
	Street Address	 	State	Zip Code
	5.           Purpose: (optional; see instructions)	
         

        The purpose of the corporation shall be:

        Any lawful purpose pursuant to federal law and the laws of the
        State of Nevada

	6.           Name, Address and Signature of Incorporator: (attach additional page if more than one incorporator)	Eleanor Osmanoff	/s/ Eleanor Osmanoff
	Name	Incorporator Signature
	488 Madison Avenue, 12th Floor	New York	NY	10022
	Address	City	State	Zip Code
	7.           Certificate of Acceptance of Appointment of Registered Agent:	I hereby accept appointment as Registered Agent for the above named Entity
	/s/Susan Broadway	
        Susan Broadway

        Assistant Sec’y
	
         

        8/29/13

	Authorized signature of Registered Agent or On Behalf of Registered Agent Entity	Date
	This form must be accompanied by appropriate fees.	
        Nevada Secretary of State NRS 78 Articles

        Revised 3-10-10

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    	 

    	 

    

 

SECRETARY OF STATE

 

 

CORPORATE CHARTER

 

I, ROSS MILLER, the duly
elected and qualified Nevada Secretary of State, do hereby certify that EAGLEFORD ENERGY, ZAVALA INC., did on August 29, 2013,
file in this office the original Articles of Incorporation; that said Articles of Incorporation are now on file and of record in
the office of the Secretary of State of the State of Nevada, and further, that said Articles contain all the provisions required
by the law of said State of Nevada.

  

		
        IN WITNESS WHEREOF, I have
        hereunto

 set my hand and affixed the Great Seal of

 State, at my office on August 30, 2013.

         

	 	/S/ Ross Miller
	 	ROSS MILLER
	 	Secretary of State
	Certified By: GJ Jaillet	 
	Certificate Number: C2013080-0278	 
	You may verify this certificate 	 
	Online at http://www.nvsos.gov/EXHIBIT 4.32

 

 

LANGLEY & BANACK

INCORPORATED

Attorneys and Counselors at Law

 

August 28, 2013

 

	Jesse R. Pierce	VIA FACSIMILE 713-634-3601
	PIERCE & O'NEILL, LLP	 
	4203 Montrose Boulevard	 
	Houston, Texas 77006	 
	 	 
	Mr. Ben Elmore	VIA FACSIMILE 713-650-8141
	Watt Beckworth Thompson Henneman & Sullivan, L.L.P 1800	 
	Pennzoil Place, South Tower	 
	711 Louisiana Street	 
	Houston, Texas 77002	 
	 	 
	Mr. Robert A. Whittington	VIA FACSIMILE 956-546-3766
	SANCHEZ, WHITTINGTON, ZABARTE	 
	& WOOD, L.L.P.	 
	3505 Boca Chica Blvd., Suite 100	 
	Brownsville, Texas 78521	 

 

		Re:	Cause No. 12-04-12751-ZCV; Matthews Family Mineral Account, LP v. Dyami Energy, LLC, OGR
Energy Corporation, OGR 2000, LTD, Eagleford Energy, Inc., and Texas Onshore Energy, Inc.; 365th Judicial District Court, Zavala
County, Texas

 

RULE 11 AGREEMENT

 

Gentlemen:

 

This is to confirm
that the parties to the above styled and numbered cause have agreed to settle and compromise any and all claims that have been
asserted or could have been asserted in such suit and release and indemnify each party for such claims.

 

In addition, although
Delta Star Holdings, LLC has not been formally served with process in this suit, Delta Star Holdings, LLC agrees to join this Rule
11 Agreement and be bound the terms the settlement agreement set forth herein.

 

The parties have agreed
to compromise and settle the above styled and numbered cause under the following material terms and conditions which shall be incorporated
into a formal Settlement Agreement acceptable to all the parties hereto:

 

PETRY BUILDING, 4TH & HOUSTON, P.O.
DRAWER 218

CARIZZO SPRINGS, TEXAS 78834, T 830.876.2431,
F 830-876-5491

WWW.LANGLEYBANACK.COM

ANTONIO   -   CARIZZO
SPRINGS   -   EAGLE PASS   -   KARNES CITY   -   CASTROV

 

MERITAS LAW FIRMS WORLDWIDE

 

    	 

    	 

    

 

		1.	The Matthews Family Mineral Account, LP ("Matthews") and Delta Star Holdings, LLC ("Delta
Star") (collectively, "Lessors") will enter into an oil and gas lease ("Lease") with Dyami Energy, LLC
("Dyami") and Eagleford Energy, Inc. ("Eagleford") and/or their assigns according to the terms of the Base
Lease (collectively, "Lessees") for a primary term to expire at 11:59 P.M. on January 31, 2014. The Lease shall be in
the form of the April 1, 2008 lease from Matthews Mineral Account to OGR Energy Corporation (as originally amended) (the "Base
Lease") with such revisions as are necessary to incorporate the terms of this Agreement.

 

		2.	The Lease will cover all of Lessors' mineral interest in approximately 2,629.42 acres of land in
Zavala County, Texas more particularly described in a memorandum of oil and gas lease recorded in Volume 296, Page 299 of the real
property records for Zavala County.

 

		3.	Lessees shall pay Lessors the sum of Three Hundred Thousand and 00/100 Dollars ($300,000) in consideration
of their execution of the Lease, such sum to be payable as follows:

 

		(a)	One Hundred Fifty Thousand and 00/l 00 Dollars ($150,000.00) shall be paid to Lessors simultaneous
with Lessors' execution and delivery of the Lease. These funds shall be payable: One Hundred Twenty Five Thousand and 00/100 Dollars
($125,000.00) to Matthews and Twenty Five Thousand and 00/100 Dollars ($25,000.00) to Delta Star; and

 

		(b)	One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00) shall be paid to Lessors by the earliest
of the following to occur: i) on or before 90 days from the signing of the Lease or ii) immediately prior to commencing any operation
under the terms of the Lease. These funds shall be payable: One Hundred Twenty Five Thousand and 00/100 Dollars ($125,000.00) to
Matthews and Twenty Five Thousand and 00/100 Dollars ($25,000.00) to Delta Star.

 

		4.	In addition to the above monetary obligations, prior to commencing operations under the terms of
the Lease, Lessees shall tender Sixty Thousand and 00/100 Dollars ($60,000.00) to Lessors. These funds shall be payable: Fifty
Thousand and 00/100 Dollars ($50,000.00) to Matthews and Ten Thousand and 00/100 Dollars ($10,000.00) to Delta Star.

 

		5.	The failure of Lessees to timely make any of the payments in Paragraphs 3 or 4 shall result in
the immediate termination of the Lease and the forfeiture by Lessees of all rights and interests under the Lease.

 

		6.	All funds to be paid by the parties under this Agreement shall be tendered via wire transfer directly
to Matthews and to Delta Star in accordance with their respective wiring instructions.

 

    	 

    	 

    

 

		7.	Lessees shall have two (2) separate options to extend the primary term by one calendar month (through
February 28, 2014 and March 31, 2014, respectively). To exercise each option, Lessees must provide written notice and payment to
Lessors in the amount of $30,000 (for each option) on or before five (5) days prior to the expiration of the then current primary
term. Each option payment shall be payable: Twenty Five Thousand and 00/100 Dollars ($25,000.00) to Matthews and Five Thousand
and 00/100 Dollars ($5,000.00) to Delta Star.

 

		8.	Lessors shall be paid their royalty directly from the purchaser of the production who shall be
instructed to make payment via electronic bank transfer. Lessors and Lessees shall satisfy any reasonable requests from the purchaser
that may be necessary to effectuate such payment.

 

		9.	The Lease shall contain a "minimum royalty clause" guaranteeing a minimum royalty of
Eight Hundred Fifty Thousand and 00/100 Dollars ($850,000.00) per Lease Year for a total of five (5) Lease Years. The minimum royalty
clause will be in substantially the following form:

 

		(a)	"If during any of the first five (5) consecutive Lease Years following the effective date
hereof that this Lease is in full force for all or any portion of such Lease Year, the value of the royalty received by Lessors
on production of oil, gas, casing head gas and liquid hydrocarbons is less than eight hundred fifty thousand dollars ($850,000)
(the "Minimum Royalty Amount"), then: (1) Lessees shall pay to Lessors the difference between the Minimum Royalty Amount
and the value of the royalty actually received by Lessors during such Lease Year (the ''Minimum Royalty Payment"); or (2)
this Lease shall terminate as to all land covered hereby except for any acreage that qualifies under Paragraph 17 of the Base Lease
as a production unit at the end of the Lease Year. A "Lease Year" shall mean the 12-month period commencing on the date
of signing the Lease and continuing thereafter for each succeeding 12-month period until the Lease has terminated."

 

		(b)	"The payments made by Lessees to Lessors under paragraphs 3, 4 and 7 of this Agreement shall
be credited against the Minimum Royalty Amount for the first Lease Year and shall be considered Monthly Minimum Royalty Payments
for the purposes of Paragraph 9(g).''

 

		(c)	"In the event the Lease terminates and Lessees have retained production unit Lessees shall
be required to satisfy the minimum royalty obligation for each production unit retained hereunder at a rate of Three Hundred Twenty
Three 27/100 Dollars ($323.27) per acre multiplied times the number of acres included in such production unit (the "Unit Minimum
Royalty Amount") within the time period specified above. If Lessees fail to pay the Unit Minimum Royalty Amount for the acreage
included in a production unit, the Lease shall terminate as to such production unit."

 

    	 

    	 

    

 

		(d)	"Any royalty paid on production in excess of the Minimum Royalty Amount during a Lease Year
(the "Minimum Royalty Credit Balance") may be credited against the Minimum Royalty Amount for successive Lease Years.
Any royalty paid on a production unit retained hereunder in excess of the Unit Minimum Royalty Amount may only be credited against
the Unit Minimum Royalty Amount owed for such production unit in successive Lease Years."

 

		(e)	"Commencing in the first full calendar month of the second Lease Year and continuing thereafter
in each succeeding calendar month through the end of the fifth Lease Year, Lessees shall pay Lessors the Minimum Royalty Payment
on a monthly basis (the "Monthly Minimum Royalty Payment") in accordance with the following:

 

		(i)	"The amount of the Monthly Minimum Royalty Payment for a calendar month will be calculated
as follows:

 

Monthly Minimum Royalty Payment
equals (Minimum Royalty Amount divided by 12) minus (Actual Monthly Royalty Payments received during the preceding calendar month,
if any) minus (Minimum Royalty Credit Balance as of the last day of the preceding calendar month, if any).

 

		(ii)	If the value of the Monthly Minimum Royalty Payment is positive, Lessees shall pay this amount
to Lessors (in proportion to their respective royalty interest) no later than the 10th day of such calendar month.

 

		(iii)	If the value of the Monthly Minimum Royalty Payment is negative, no Monthly Minimum Royalty Payment
is due to be paid to the Lessors, and this amount (converted to a positive value) becomes the new Minimum Royalty Credit Balance.

 

		(iv)	The Lease will immediately terminate if Lessees fail to timely pay any Monthly Minimum Royalty
Payment in full and such failure continues for a period of ten (10) days after Lessors send written notice of such failure to Lessees.
If there exists a dispute among the parties as to the amount of any Monthly Minimum Royalty Payment, Lessees may satisfy their
payment obligation under this paragraph by paying the disputed amount into a third-party escrow account.

 

    	 

    	 

    

 

		(v)	On or before the due date for each Monthly Minimum Royalty Payment, Lessees shall deliver to Lessors
a written statement indicating how the Monthly Minimum Royalty Payment was calculated by Lessees and stating any Minimum Royalty
Credit Balance claimed by Lessees.

 

		(f)	"For the remainder of the first Lease Year following
the expiration of the Primary Term or any extension thereof, the Lessee shall pay Lessors the Minimum Royalty Payment once every
two months, beginning on the tenth (10th) day of the second calendar month after the expiration of the Primary Term
or any extension thereof, consistent with the procedures described in Paragraph 9(e) above, except that the Minimum Royalty Amount
shall be divided by the remaining number of months in the first Lease Year after the expiration of the Primary Term or any extension
thereof then multiplied by two (2). In the event an odd number of calendar months are remaining in the first Lease Year, any remaining
Minimum Royalty Amount for the Lease Year shall be due on the tenth (10th) day of the last calendar month of the first
Lease Year. The initial Minimum Royalty Amount for the first Lease year shall be reduced by the sum of all monies paid by Lessees
to Lessors pursuant to Paragraphs 3, 4 and 7 of the is Agreement."

 

		(g)	"If there exists a Minimum Royalty Credit Balance at the end of a Lease Year, Lessees shall
be entitled to a refund from Lessors of the Monthly Minimum Royalty Payments made by Lessees, to the extent not previously refunded,
in an amount not to exceed the Minimum Royalty Credit Balance as of the end of such Lease Year. Lessors shall only be required
to pay the refund from the monthly royalty payments they receive, if any, in the month(s) following the end of such Lease Year.
When such refund payments are made, the Minimum Royalty Credit Balance shall be reduced by the amount of the refund payments."

 

		10.	Paragraphs 6, 16 and 30 of the Base Lease will be deleted and replaced with provisions in substantially
the following form:

 

		(a)	"Prior to the expiration of the Primary Term, Lessee shall perform a new operation on the
Lease. This requirement may be fulfilled by performing one of the following operations:

 

		(i)	the hydraulic fracturing of the existing Matthews 1 well, which shall mean the injection under
pressure and withdrawal of hydraulic fracturing fluids in the well bore.

 

		(ii)	the drilling of a new well, not including the re-entering or deepening of the Matthews #2 or Matthews
#3 well, which for the purposes of this provision only shall mean the actual spudding of a well with a targeted depth in a formation
deemed capable of producing hydrocarbons, so long as there is no cessation in the drilling operation of more than thirty (30) days
and the total targeted depth is ultimately achieved."

 

    	 

    	 

    

 

		(b)	''Provided that Lessees have fulfilled their obligations under paragraphs 3, 4, 7 and 10(a) of
this Agreement, this Lease will continue thereafter to be held in full force and effect, provided that Lessees:

 

		(i)	fulfill their minimum royalty obligations under Paragraph 9 of this Agreement;

 

		(ii)	beginning in the second Lease Year and continuing thereafter for each succeeding Lease Year, drill
at least two new wells per year, which shall mean the actual drilling and penetration of a well bore into a formation deemed capable
of producing hydrocarbons before the expiration of each such Lease Year; and

 

		(iii)	commencing in the sixth Lease Year and thereafter, drill the first of the two required new wells
into a formation deemed capable of producing hydrocarbons no later than the end of sixth month of the Lease Year.

 

For the purposes of satisfying
this provision: (i) if more than two wells are drilled in a Lease Year, the additional wells may be applied against the requirement
for subsequent years; (ii) a horizontal well bore that shares the same vertical well bore with another horizontal well bore shall
constitute a new well, and (iii) the re-entering and/or deepening of the Matthews #2 or Matthews #3 well shall constitute a new
well."

 

		(c)	"Lessees' failure to comply with the requirements of this Paragraph 10 will result in the
immediate termination of the Lease, except for such acreage retained pursuant Paragraph 17 of the Base Lease."

 

		(d)	"Notwithstanding any other provisions of the Lease, so long as Lessees have performed their
obligations under Paragraphs 3, 4, 7, 9 and 10 of this Agreement, the Lease will continue to be held in full force and effect."

 

		11.	The Lease will include a thirty (30) day notice and cure provision for any alleged breach except
for obligations described in Paragraphs 3, 7, 9 and 10 of this Agreement:

 

		12.	The Lease will include a provision that if the Lease terminates and a well exists that is capable
of production, the Lessors shall have the right to elect within sixty (60) days· notice whether Lessees should properly
plug and abandon such well or assign such well to Lessors in its current condition at no cost:

 

    	 

    	 

    

 

		13.	Paragraph 17 of the Base Lease will be revised to clarify that the acreage retained for a horizontal
well will be in accordance with Rule 86 or any applicable field rules or regulatory rules;

 

		14.	The Lease will include a "notice provision" requiring that all notices or communications
pursuant to the Lease be in writing and including the addresses of each party where notices are to be sent, the method of delivery
and the deemed delivery date.

 

		15.	OGR Energy Corporation ("OGR") and Texas Onshore Energy, Inc. ("Onshore") shall
release any working interest under the Base Lease;

 

		16.	Contemporaneous with execution of the Lease, the Lessees shall be required to assign an overriding
royalty in the Lease to the following parties in the respective amounts indicated:

 

	OGR	 	 	3	%
	Onshore	 	 	1	%
	Karen Kolaya	 	 	1	%

 

Such
assignment shall include the following provisions: (a) an "anti - washout" clause such that the overriding royalty
shall apply to any amendments, renewals, top leases, or replacements of the Lease entered into by Lessees or Lessees'
successors and assigns, and OGR shall have the right to approve any such amendment, renewal, top lease or replacement of the
Lease, provided that the cumulative royalty payable to lessors and OGR does not exceed 25%; (b) the assignees shall have the
right to receive payment directly from the company purchasing the production from the Lease, and the Lessees will execute
such instruments reasonably necessary to effect such direct disbursement; and (c) the assignees shall have the right to
receive, on a confidential basis within thirty (30) days after written request, a copy of any electric induction log, core
analysis or formation test run or performed on any well drilled on the Lease; the form of assignment shall be agreed to by
the parties and attached as an exhibit to the final Settlement Agreement;

 

		17.	OGR shall be made a party to the Lease for the limited purpose of approving any amendments to the
lease that may affect the percentage of the overriding royalties described in paragraph 16 herein. OGR shall have the right to
approve the language to this effect to be included in the Lease.

 

		18.	Contemporaneous with the execution the Lease, OGR and Onshore shall be assigned, cumulatively,
fifteen (15) percent working interest in the Lease.

 

    	 

    	 

    

 

Upon the
timely payment by Lessees of the amounts described in paragraphs 3 and 4 herein and commencement of any operation under the Lease,
OGR and Onshore shall re-assign the 15% working interest to Dyami or its assigns, and expressly disclaim all working interest in
the Lease. Dyami agrees to waive all obligations of OGR and Onshore for any attorneys' fees Dyami has incurred in connection with
defending the lease in this litigation under the terms of any joint operating agreement or any other agreement that may exist between
Dyami, OGR, and Onshore. However, in the event the Lessees do not make one of the payments to Lessors described in paragraphs 3
or 4 herein or commence operations as described in paragraph 10, above, in order to maintain the Lease, and pursuant to paragraph
19 below OGR exercises its right to make any such requisite payments and/or perform any requisite operations to maintain the Lease,
then in such event Dyami or its assign(s) has the right to seek reimbursement from OGR and Onshore for their proportionate share
of such attorney's fees.

 

		19.	Lessees shall give OGR at least fifteen (15) days' notice if Lessees do not intend to make one
of the payments described in paragraphs 3 or 4 herein or commence New Operations; in the event Lessees give such notice, the parties
agree that OGR has the right to make any such requisite payments and/or perform any requisite operations under Paragraph 10 of
this Agreement to maintain the Lease.

 

		20.	The parties recognize that upon the execution of the Lease, the Base Lease will have expired and
no longer be in effect, and that the Surface Use Agreement entered into between OGR and Carroll Dean Fischer regarding operations
conducted under the Base lease shall no longer be in effect. Dyami agrees that commensurate with signing the Lease, Dyami and/or
its assigns will sign a new Surface Use Agreement with Carroll Dean Fischer related to operations performed under Lease and provide
Lessors with a copy of such Surface Use Agreement.

 

		21.	The parties agree to include any other provisions in the Lease that are necessary to effectuate
the terms of this Agreement.

 

		22.	Each party will execute a mutual release and indemnity agreement.

 

		23.	Unless otherwise specifically provided, each party shall pay their own litigation costs and attorney
fees.

 

This Agreement
may be executed in multiple counterparts, each of which shall be deemed an original for all purposes. The parties agree that the
signature of a party on this Agreement that is transmitted by facsimile or e-mail shall be deemed to be an original.

 

    	 

    	 

    

 

If your clients
agree to the terms as set forth above, please have each client execute in the space provided below.

 

	Sincerely,	 
	 	 
	LANGLEY & BANACK, INC	 
	 	 
	By: /s/ Patrick J. Kelly	 
	Patrick J. Kelly	 
	 	 
	PJK/lp	 

 

    	 

    	 

    

 

	APPROVED AND AGREED	 
	 	 
	/s/ Patrick Kelly,	 
	By permission of Matthews Family Mineral Account GP, LLC
	Matthews Family Mineral Account, L.P.	 
	By Matthews Family Mineral Account GP, LLC	 
	Its general partner	 
	 	 
	/s/ J. Hunter Moore,	 
	Its Manager	 
	Delta Star Holdings, LLC	 
	 	 
	/s/ James Cassina,	 
	President	 
	Dyami Energy, LLC	 
	 	 
	/s/ James Cassina,	 
	President	 
	Eagleford Energy, Inc.	 
	 	 
	/s/David Nolan,	 
	By permission Ben Elmore, attorney for OGR	 
	OGR Energy Corporation	 
	 	 
	/s/David Nolan,	 
	By permission Ben Elmore, attorney for OGR	 
	OGR 2000 Ltd.	 
	 	 
	/s/ Scott Whittington,	 
	President	 
	Texas Onshore Energy, Inc.

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