Document:

EXHIBIT 10.24

NSAI Netherland, Sewell & Associates, Inc.
Worldwide Petroleum Consultants
Engineering * Geology * Geophysics * Petrophysics

                               February 14, 2011

Mr.  Brandon  W.  Hargett
High  Plain  Gas,  Inc.
3601  Southern  Drive
Gillette,  Wyoming  82717

Dear  Mr.  Hargett:

In  accordance  with  your  request, we have estimated the proved, probable, and
possible reserves and future revenue, as of December 31, 2010, to the High Plain
Gas,  Inc.  (HPG)  interest in certain coalbed methane properties located in the
Powder River Basin, Wyoming.  HPG acquired its interest in the majority of these
properties  in  2010.  We  completed our evaluation on February 14, 2011.  It is
our  understanding  that the proved reserves estimated in this report constitute
all of the proved reserves owned by HPG.  The estimates in this report have been
prepared  in  accordance  with  the  definitions  and  guidelines  of  the  U.S.
Securities  and  Exchange  Commission  (SEC)  and conform to the FASB Accounting
Standards Codification Topic 932, Extractive Activities-Oil and Gas, except that
per-well  overhead  expenses  are  excluded  for  operated properties and future
income  taxes  are  excluded  for  all  properties.  Definitions  are  presented
immediately  following this letter.  This report has been prepared for HPG's use
in  filing  with  the  SEC;  in  our opinion the assumptions, data, methods, and
procedures  used  in  the  preparation  of  this report are appropriate for such
purpose.

We estimate the gas reserves and future net revenue to the HPG interest in these
properties,  as  of  December  31,  2010,  to  be:

                             Gas Reserves          Future Net Revenue ($)
                      -------------------------  ---------------------------
                          Gross         Net                    Present Worth
Category                  (MCF)        (MCF)        Total         at 10%
--------------------  ------------  -----------  -----------  --------------
Proved Developed
  Producing              9,389,434    6,357,905    9,136,600       8,301,500
Proved Developed
  Non-Producing          7,474,463    5,253,624    9,137,900       7,167,900
Proved Undeveloped       4,093,289    2,613,872    3,194,500       1,393,200
                      ------------  -----------  -----------  --------------
 Total Proved           20,957,186   14,225,401   21,469,000      16,862,600

Probable Developed      31,041,451   15,973,270   29,558,600      22,564,200
Probable Undeveloped    87,752,757   55,580,483   78,061,800      33,702,000
                      ------------  -----------  -----------  --------------
 Total Probable        118,794,208   71,553,753  107,620,400      56,266,200

Possible Developed      27,490,451   06,862,488   14,471,700      10,383,500
Possible Undeveloped    95,848,508   62,726,123   80,437,500      33,829,600
                      ------------  -----------  -----------  --------------
 Total Possible        123,338,959   69,588,611   94,909,200      44,213,100

Gas  volumes  are  expressed  in  thousands  of  cubic  feet  (MCF)  at standard
temperature  and  pressure  bases.

<PAGE>
The  estimates  shown  in  this  report  are  for proved, probable, and possible
reserves.  This  report  does  not include any value that could be attributed to
interests  in  undeveloped  acreage  beyond  those  tracts for which undeveloped
reserves  have  been  estimated.  Reserves  categorization  conveys the relative
degree  of  certainty;  reserves  subcategorization  is based on development and
production status.  The estimates of reserves and future revenue included herein
have  not  been  adjusted  for  risk.

Future  gross revenue to the HPG interest is prior to deducting state production
taxes  and  ad  valorem taxes.  Future net revenue is after deductions for these
taxes,  future capital costs, and operating expenses but before consideration of
any  income taxes.  The future net revenue has been discounted at an annual rate
of  10  percent  to  determine its present worth, which is shown to indicate the
effect  of  time  on  the  value of money.  Future net revenue presented in this
report, whether discounted or undiscounted, should not be construed as being the
fair  market  value  of  the  properties.

For  the purposes of this report, we did not perform any field inspection of the
properties,  nor  did  we  examine  the mechanical operation or condition of the
wells and facilities.  We have not investigated possible environmental liability
related to the properties; therefore, our estimates do not include any costs due
to  such  possible  liability.  Also,  our  estimates do not include any salvage
value for the lease and well equipment or the cost of abandoning the properties.

Gas  prices  used in this report are based on the 12-month unweighted arithmetic
average of the first-day-of-the-month price for each month in the period January
through December 2010.  The average CIG Rocky Mountains spot price of $3.945 per
MMBTU  is  adjusted  by  area  for  energy content and transportation fees.  All
prices are held constant throughout the lives of the properties.  For the proved
reserves,  the  average  adjusted  gas  price  weighted  by  production over the
remaining  lives  of  the  properties  is  $3.162  per  MCF.

Lease  and  well  operating  costs  used  in  this report are based on operating
expense  records  of  HPG  and  the  previous  owners  of  the  properties.  For
nonoperated  properties,  these  costs  include  the  per-well overhead expenses
allowed  under  joint  operating  agreements along with estimates of costs to be
incurred  at  and  below the district and field levels.  As requested, lease and
well  operating costs for the operated properties include only direct lease- and
field-level  costs.  For all properties, headquarters general and administrative
overhead  expenses  of HPG are not included.  Lease and well operating costs are
held  constant  throughout  the  lives  of  the  properties.  Capital  costs are
included  as  required  for  workovers,  new  development  wells, and production
equipment.  The  future  capital  costs  are  held  constant  to  the  date  of
expenditure.

We  have  made  no  investigation  of  potential gas volume and value imbalances
resulting  from  overdelivery  or underdelivery to the HPG interest.  Therefore,
our  estimates of reserves and future revenue do not include adjustments for the
settlement  of  any  such imbalances; our projections are based on HPG receiving
its  net  revenue  interest  share  of  estimated  future  gross gas production.

The reserves shown in this report are estimates only and should not be construed
as exact quantities.  Proved reserves are those quantities of oil and gas which,
by analysis of engineering and geoscience data, can be estimated with reasonable
certainty  to  be  economically  producible;  probable and possible reserves are
those  additional  reserves  which are sequentially less certain to be recovered
than  proved  reserves.  Estimates  of  reserves  may  increase or decrease as a
result  of  market  conditions,  future  operations,  changes in regulations, or
actual  reservoir  performance.  In addition to the primary economic assumptions
discussed  herein, our estimates are based on certain assumptions including, but
not  limited  to,  that the properties will be developed consistent with current
development  plans,  that  the  properties will be operated in a prudent manner,
that  no  governmental  regulations  or controls will be put in place that would
impact  the  ability of HPG to recover the reserves, and that our projections of
future  production  will  prove  consistent  with  actual  performance.  If  the
reserves  are  recovered,  the  revenues therefrom and the costs related thereto
could  be  more  or  less  than  the estimated amounts.  Because of governmental
policies  and  uncertainties  of  supply  and  demand,  the  sales rates, prices
received  for  the  reserves, and costs incurred in recovering such reserves may
vary  from  assumptions  made  while  preparing  this  report.

For  the purposes of this report, we used technical and economic data including,
but  not  limited to, geologic maps, well test data, production data, historical
price  and  cost information, and property ownership interests.  The reserves in
this  report  have  been  estimated using deterministic methods; these estimates
have  been  prepared  in

<PAGE>
accordance  with  the Standards Pertaining to the Estimating and Auditing of Oil
and  Gas  Reserves Information promulgated by the Society of Petroleum Engineers
(SPE  Standards).  We  used  standard  engineering  and geoscience methods, or a
combination of methods, including performance analysis, volumetric analysis, and
analogy,  that  we  considered to be appropriate and necessary to categorize and
estimate  reserves  in  accordance  with  SEC  definitions  and  guidelines.  A
substantial  portion  of these reserves are for behind-pipe zones, non-producing
zones,  undeveloped  locations,  and  producing  wells  that  lack  sufficient
production  history  upon which performance-related estimates of reserves can be
based.  Therefore,  these  reserves  are based on estimates of reservoir volumes
and recovery efficiencies along with analogy to properties with similar geologic
and  reservoir  characteristics.  As  in  all aspects of oil and gas evaluation,
there  are  uncertainties  inherent  in  the  interpretation  of engineering and
geoscience  data; therefore, our conclusions necessarily represent only informed
professional  judgment.

The  data  used  in our estimates were obtained from HPG, previous owners of the
properties,  public  data  sources, and the nonconfidential files of Netherland,
Sewell  &  Associates,  Inc.  (NSAI)  and were accepted as accurate.  Supporting
geoscience, performance, and work data are on file in our office.  The titles to
the properties have not been examined by NSAI, nor has the actual degree or type
of  interest  owned  been  independently  confirmed.  The  technical  persons
responsible  for  preparing the estimates presented herein meet the requirements
regarding  qualifications,  independence,  objectivity,  and confidentiality set
forth in the SPE Standards.  We are independent petroleum engineers, geologists,
geophysicists,  and  petrophysicists;  we  do  not  own  an  interest  in  these
properties  nor  are  we  employed  on  a  contingent  basis.

                                 Sincerely,

                                 NETHERLAND, SEWELL & ASSOCIATES, INC.
                                 Texas Registered Engineering Firm F-002699

                                 By:/s/ C.H. (Scott) Rees III
                                 C.H. (Scott) Rees III, P.E.
                                 Chairman and Chief Executive Officer

By: /s/ Dan Paul Smith           By: /s/ John G. Hattner
-------------------------------  ------------------------------------------
Dan Paul Smith, P.E. 49093       John G. Hattner, P.G. 559
Senior Vice President            Senior Vice President

Date Signed:  February 14, 2011  Date Signed:  February 14, 2011

DWB:ART

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Exhibit 10.1

 

DEBT CANCELLATION AGREEMENT

 

This Debt Cancellation Agreement (this “Agreement”) is made and entered into by and among Swinging Pig Productions, Inc., a Florida corporation (the “Company”), Chronicles of a Skater Girl, LLC, a wholly owned subsidiary of the Company (the “Sub”) and Harlem Films, Inc., an affiliate of the Company (“Harlem Films”) and Daniel Mirman (“Mirman”), effective as of the date this Agreement is accepted by the Company in accordance with Section 2 hereof.

 

RECITALS

 

WHEREAS, Harlem Films and Mirman and his affiliates (collectively, the “Lender”) have loaned significant funds to the Company (“Loans”); and

 

WHEREAS, the Company and Lender previously agreed that (i) the Loans shall be fully secured by all of the Company’s rights to the motion picture film entitled Chronicles of a Skater Girl (“Film Rights”) and one hundred percent (100%) of the Company’s membership interests in the Sub (“Membership Interests”), and, (ii) in the event of the Company’s failure to repay the Loans, transfer of the Film Rights and Membership Interests to the Lender shall be available as a remedy to the Lender to satisfy Company’s indebtedness if not otherwise repaid.

 

WHEREAS, in consideration of the Lender’s willingness to release the Company from any obligation to pay any monies due to the Lender, the Company shall transfer the Film Rights and the Sub to the Lender at the Closing (as defined below).

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto agree as follows:

 

1. Events to Occur on or Prior to Closing. The following events shall occur concurrently on or prior to Closing:

 

(a) Resignation. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Mirman shall resign as an officer and director of the Company.

 

(b) Assignment of Movie Rights. The Company agrees to assign the Film Rights to Harlem Films, pursuant the Agreement to Assign and Release Motion Picture attached hereto as Exhibit A.

 

(c) Forgiveness of Debt. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, the Lender hereby releases the Company from any obligation to pay any monies due to the Lender, in exchange for the Company transferring (i) one hundred percent (100%) of the Membership Interests and (ii) the Film Rights to the Lender. All amounts due to Lender together with any accrued interest to date are hereby forgiven by the Lender.

 

(d) Stock Purchase Agreement. Mirman shall enter into a Stock Purchase Agreement, in the form as attached hereto as Exhibit B and shall execute the Stock Purchase Agreement prior to the Closing.

 

(e) Payment of Florida Taxes. The Company shall pay the outstanding tax liability to the State of Florida, which is approximately One Thousand Two Hundred Dollars ($1,200). 

 

  

1

  

(f) General Release.  In consideration of the forgiveness of debt by Lender and other consideration set forth herein, effective as of the Closing, the Company and, to the extent permitted by law, its heirs, executors, representatives, predecessors, agents, associates, affiliates, attorneys, accountants, successors, successors-in-interest and assignees (collectively, the “Company Releasing Persons”), hereby waives and releases, to the fullest extent permitted by law any and all claims, rights and causes of action, whether known or unknown (collectively, the “Company Claims”), that any of the Company Releasing Persons had, currently has or then has against (i) the Lender, or (ii) any of the Lender’s current or former parents, shareholders, affiliates, subsidiaries, predecessors or assigns.  The Company and the Lender acknowledge and agree that the releases set forth in this Section 1(e) do not affect any claim which any Company Releasing Person may have under this Agreement or the Stock Purchase Agreement.

 

2. Effectiveness of this Agreement.  The consummation of the transactions contemplated hereby (the “Closing”) shall take place at the offices of the Company or at such other place as the parties may mutually agree, concurrent with the closing of the Stock Purchase Agreement.  In the event the Seller and Purchaser do not close the Stock Purchase Agreement, or any of  the terms under Section 1(a) to (f) of this Agreement are not executed, this agreement shall not be executed in whole or in part by the Company and shall not become effective.

 

3. Representations of the Company.  The Company represents and warrants to the Lender, as of the date the Company executes this Agreement and as of the Closing Date, that:

 

(a) The Company has the legal capacity to execute, deliver and perform its obligations under this Agreement.  This Agreement has been duly executed and delivered by the Company and is a valid and legally binding agreement of the Lender enforceable against the Company in accordance with its terms.

 

(b) The Company is the sole owner of the Sub, and is the sole and beneficial owner of the Sub, free and clear of all liens, and there exists no restriction on the transfer of the Membership Interests to the Lender. The Company shall deliver to the Lender at Closing good and marketable title to the Membership Interests free and clear of all liens.

 

(c) No action has been taken by the Company that would give rise to a claim against the Company for a brokerage commission, finder’s fee or other like payment with respect to the transactions contemplated by this Agreement.

 

4. Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida without regard to conflict-of-laws rules.

 

5. Undertakings.  The Company and the Lender hereby agrees to take whatever additional action and execute whatever additional documents may be reasonably necessary or advisable in order to carry out or effect one or more of the provisions of this Agreement.

 

6. Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

7. Entire Agreement.  This Agreement and the agreements and instruments to be delivered by the parties at Closing represent the entire understanding and agreement between the parties and supersede all prior oral and written and all contemporaneous oral negotiations, commitments and understandings.

 

[Signatures on Following Page]

  

2

  

 

IN WITNESS WHEREOF, the parties have executed this Debt Cancellation Agreement as of the dates set forth below.

SWINGING PIG PRODUCTIONS, INC.,

a Florida corporation

 

	By:	 /s/ Michael Davis	 	Date:	May 12, 2011	 
	 	Michael Davis	 	 	 	 
	Its:	President	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

CHRONICLES OF A SKATER GIRL, LLC,

a Limited Liability Florida Corporation

        

	By:	 /s/ Daniel Mirman	 	Date:	May 8, 2011	 
	 	Daniel Mirman	 	 	 	 
	Its:	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

HARLEM FILMS, INC.,

a Florida corporation

 

	By:	 /s/ Daniel Mirman	 	Date:	May 8, 2011	 
	 	Daniel Mirman	 	 	 	 
	Its:	President	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

DANIEL MIRMAN

 

	 /s/ Daniel Mirman	 	Date:	May 8, 2011	 
	 Daniel Mirman	 	 	 	 
	 	 	 	 	 	 

 

 

  

3

  

 

Exhibit A

AGREEMENT TO ASSIGN AND RELEASE

MOTION PICTURE

 

Swinging Pig Productions, Inc., its subsidiaries, including Chronicles of a Skater Girl, LLC, and assigns, in consideration of release of all debt obligations owed to Harlem Films, Dan Mirman, and/or any other entity controlled by Dan Mirman and all other good and valuable consideration, receipt of which is hereby acknowledged, hereby acknowledges and agrees to transfer and assign all the rights to the motion picture tentatively titled “Chronicles of a Skater Girl” to Harlem Films. As of the date of this agreement, Harlem Films shall solely and exclusively own throughout the world in perpetuity all rights of every kind and nature relating to the motion picture. Swinging Pig Productions, Inc., its subsidiaries, including Chronicles of a Skater Girl, LLC, and assigns, acknowledges it has no claim to or interest in the universe-wide motion picture rights (silent, sound, talking and/or musical), television, radio, phonograph record, merchandising and/or commercial tie-up rights or, without limitation, to any other rights of any nature or kind whatsoever.

 

 

 

SWINGING PIG PRODUCTIONS, INC.,

a Florida corporation

 

	By:	 /s/ Michael Davis	 	Date:	May 12, 2011	 
	 	Michael Davis	 	 	 	 
	Its:	President	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

HARLEM FILMS, INC.,

a Florida corporation

 

	By:	 /s/ Daniel Mirman	 	Date:	May 8, 2011	 
	 	Daniel Mirman	 	 	 	 
	Its:	President	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

 

DANIEL MIRMAN

 

	 /s/ Daniel Mirman	 	Date:	May 8, 2011	 
	 Daniel Mirman	 	 	 	 
	 	 	 	 	 	 

 

 

 

 

4

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