Document:

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                        NOTE PURCHASE AND LOAN AGREEMENT

                                       FOR

                           SEVEN SEAS PETROLEUM INC.,
               A CAYMAN ISLANDS EXEMPTED COMPANY LIMITED BY SHARES

                                  JULY 9, 2001

                           COMMERCIAL LAW GROUP, P.C.
                            ATTORNEYS AND COUNSELORS
   2725 Oklahoma Tower o 210 Park Avenue o Oklahoma City, Oklahoma 73102-5604
              Telephone (405) 232-3001 o Telecopier (405) 232-5553

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                                TABLE OF CONTENTS

<Table>
<Caption>
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1.       Purchase; Authorization..................................................................................1

2.       Closing..................................................................................................1

3.       Corporation's Representations and Warranties.  ..........................................................2

         3.1      Organization and Standing.......................................................................2
         3.2      Subsidiaries....................................................................................2
         3.3      Corporate Power.................................................................................3
         3.4      Investments.....................................................................................3
         3.5      Minute Books....................................................................................4
         3.6      Capitalization..................................................................................4
         3.7      Subsidiary Capitalization.......................................................................4
         3.8      No Violation....................................................................................5
         3.9      Validity........................................................................................5
         3.10     SEC Documents...................................................................................6
         3.11     Financial Statements............................................................................6
         3.12     Absence of Undisclosed Liabilities..............................................................7
         3.13     Absence of Certain Changes......................................................................7
         3.14     Contracts, Leases, and Other Agreements.........................................................8
         3.15     ERISA...........................................................................................8
         3.16     Arrangements with Related Parties...............................................................9
         3.17     Taxes...........................................................................................9
         3.18     Insurance.  ....................................................................................9
         3.19     Litigation.....................................................................................10
         3.20     Consents.......................................................................................10
         3.21     Title to Properties; Liens and Encumbrances....................................................10
         3.22     Compliance with Law and Other Instruments......................................................11
         3.23     Registration Rights............................................................................11
         3.24     Federal Reserve Regulations....................................................................11
         3.25     Reserve Information............................................................................11
         3.26     Securities Classes.............................................................................12
         3.27     Solicitation...................................................................................12
         3.28     Registration Requirements......................................................................12
         3.29     Certificates...................................................................................12
         3.30     Full Disclosure................................................................................12
         3.31     Acknowledgment.................................................................................13

4.       Lender's Representations and Warranties.................................................................13

         4.1      Authorization; Power...........................................................................13
         4.2      Investment Representations.....................................................................13
</Table>

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<Table>
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                  4.2.1    Economic Risk.........................................................................13
                  4.2.2    Acquisition for Own Account...........................................................13
                  4.2.3    Protection............................................................................14
                  4.2.4    Corporation Information...............................................................14
                  4.2.5    Residence.............................................................................14

5.       Lender's Conditions.....................................................................................14

         5.1      Representations and Warranties Correct.........................................................14
         5.2      Performance....................................................................................14
         5.3      Compliance Certificate.........................................................................15
         5.4      Omnibus Certificate............................................................................15
         5.5      Adverse Events.................................................................................15
         5.6      Legal Opinion..................................................................................15
         5.7      Comfort Letter.................................................................................20
         5.8      Legal Investment...............................................................................20
         5.9      Qualifications.................................................................................20
         5.10     Due Diligence..................................................................................20
         5.11     Expenses.......................................................................................20
         5.12     Purchase of Series B Notes.....................................................................21
         5.13     Proceedings and Documents......................................................................21
         5.14     Collateral Perfection and Put Option...........................................................21
         5.15     Amendments of Articles.........................................................................21

6.       Corporation's Conditions................................................................................21

         6.1      Representations and Warranties True............................................................21
         6.2      Performance of Obligations.....................................................................21
         6.3      Payment........................................................................................21
         6.4      Consents, Permits and Waivers..................................................................22
         6.5      Fairness Opinion...............................................................................22
         6.6      Certain Collateral Agreements..................................................................22

7.       Affirmative Covenants...................................................................................22

         7.1      Financial Statements and Information...........................................................22

                  7.1.1    SEC Filings...........................................................................22
                  7.1.2    Compliance Certificate................................................................22
                  7.1.3    Budget................................................................................22
                  7.1.4    Auditors Reports......................................................................23
                  7.1.5    Third Party Information...............................................................23
                  7.1.6    Litigation............................................................................23
                  7.1.7    Material Adverse Developments.........................................................23
                  7.1.8    Other Information.....................................................................24
</Table>

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<Table>
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         7.2      Accounting.....................................................................................24
         7.3      Insurance......................................................................................24
         7.4      Payment of Taxes...............................................................................24
         7.5      Compliance With Laws...........................................................................24
         7.6      Corporate Existence; Property and Operations...................................................25
         7.7      Inspection and Other Rights....................................................................25
         7.8      Use of Proceeds.  .............................................................................25
         7.9      Escrow of Interest Payment.....................................................................25
         7.10     Charter Amendments.............................................................................26
         7.11     Exemption Maintenance..........................................................................26
         7.12     Pipeline Operation.............................................................................26
         7.13     Dormant Subsidiaries...........................................................................26
         7.14     Production Proceeds............................................................................26

8.       Corporation's Negative Covenants........................................................................27

         8.1      Dividends......................................................................................27
         8.2      Redemptions....................................................................................27
         8.3      Mergers........................................................................................27
         8.4      Sale of Assets.................................................................................27
         8.5      Liquidations...................................................................................27
         8.6      Charter Amendments.............................................................................27
         8.7      Affiliate Transactions.........................................................................27
         8.8      Investments....................................................................................28
         8.9      Capital Expenditures...........................................................................28
         8.10     Loans..........................................................................................28
         8.11     Other Business.................................................................................28
         8.12     Subsidiaries...................................................................................28
         8.13     Indebtedness...................................................................................28
         8.14     Related Agreements.  ..........................................................................28
         8.15     Restrictive Agreements.........................................................................29
         8.16     Liens..........................................................................................29
         8.17     Transactions...................................................................................29
         8.18     Participating Preferred Stock..................................................................29
         8.19     Debt Prepayment................................................................................29
         8.20     No Excess Working Capital to Subsidiaries......................................................29

9.       Related Agreements......................................................................................29

10.      Payment or Exchange of Series B Notes...................................................................29

11.      Default.................................................................................................30

         11.1     Nonpayment of CEC Note.........................................................................30
         11.2     Breach of Agreement............................................................................30
         11.3     Representations and Warranties.................................................................30
</Table>

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<Table>
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         11.4     Material Agreements............................................................................30
         11.5     Indebtedness...................................................................................30
         11.6     Insolvency.....................................................................................30
         11.7     Bankruptcy.....................................................................................31
         11.8     Receivership...................................................................................31
         11.9     Judgment.......................................................................................31
         11.10    Concession Contracts...........................................................................31
         11.11    Indentures.....................................................................................31
         11.12    Change of Control..............................................................................31
         11.13    Opportunity to Cure............................................................................32

12.      Remedies................................................................................................32

         12.1     Exercise Remedy................................................................................32
         12.2     Selective Enforcement..........................................................................32
         12.3     Waiver of Default..............................................................................32

13.      Agent Appointment; Jurisdiction.........................................................................32

14.      Indemnification.........................................................................................33

         14.1     Procedure......................................................................................34
         14.2     Environmental and Governmental.  ..............................................................34
         14.3     Other Remedies.................................................................................35

15.      Effectiveness of Agreement and Termination..............................................................35

16.      Miscellaneous...........................................................................................35

         16.1     Fees and Expenses..............................................................................35
         16.2     Consent to Amendments; Waivers.................................................................35
         16.3     Representations and Warranties.................................................................36
         16.4     Successors and Assigns.........................................................................36
         16.5     Severability...................................................................................36
         16.6     Construction; Currency.........................................................................36
         16.7     Notices........................................................................................36
         16.8     Governing Law..................................................................................36
         16.9     Exhibits and Schedules.........................................................................37
         16.10    Exchange of Certificates.......................................................................37
         16.11    Confidentiality................................................................................37
         16.12    Public Announcements...........................................................................37
         16.13    Final Agreement................................................................................38
         16.14    Execution in Counterparts......................................................................38
         16.15    ACKNOWLEDGMENTS AND ADMISSIONS.................................................................38
         16.16    JOINT ACKNOWLEDGMENT...........................................................................38
         16.17    WAIVER OF JURY TRIAL, PUNITIVE DAMAGES, ETC....................................................38
</Table>

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                            SEVEN SEAS PETROLEUM INC.
                        NOTE PURCHASE AND LOAN AGREEMENT

                  THIS AGREEMENT is entered into effective July 9, 2001, between
SEVEN SEAS PETROLEUM INC., a Cayman Islands exempted company limited by shares
(the "Corporation") and all of the Subsidiaries of the Corporation (as defined
in paragraph 3.2) and CHESAPEAKE ENERGY CORPORATION, an Oklahoma corporation
(the "Lender").

                                    RECITALS

         A. In order to raise additional funds to implement the Corporation's
business plan, the Corporation desires to: (i) issue the Corporation's 12%
Senior Secured Note due 2004 in the amount of TWENTY-TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS ($22,500,000.00) (the "CEC Note") coupled with detachable
Warrants to purchase twelve million six hundred twelve thousand one hundred
forty (12,612,140) shares (the "Warrants") of the Corporation's ordinary shares,
par value $0.001 per share (the "Common Stock"); and (ii) issue the
Corporation's 12% Series B Senior Secured Notes due on the earlier of
consummation of the Rights Offering (as hereinafter defined) or November 7, 2004
in the amount of TWENTY TWO MILLION FIVE HUNDRED THOUSAND DOLLARS
($22,500,000.00) (the "Series B Notes").

         B. The Lender desires to purchase from the Corporation and the
Corporation desires to issue and sell to the Lender: (a) the CEC Note in the
principal amount of TWENTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS
($22,500,000.00); and (b) Warrants to purchase twelve million six hundred twelve
thousand one hundred forty (12,612,140) shares (as adjusted) of Common Stock,
for an aggregate purchase price of TWENTY-TWO MILLION FIVE HUNDRED THOUSAND
DOLLARS ($22,500,000.00).

                  NOW THEREFORE, in consideration of the premises and the mutual
covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

1. Purchase; Authorization. Subject to the terms and conditions set forth
herein, the Lender agrees to purchase from the Corporation and the Corporation
hereby agrees to issue and sell to the Lender, the CEC Note in the principal
amount of Twenty-Two Million Five Hundred Thousand Dollars ($22,500,000.00) and
the Warrants for an aggregate purchase price of Twenty-Two Million Five Hundred
Thousand Dollars ($22,500,000.00). Prior to the Closing (as hereinafter
defined), the Corporation will: (a) duly authorize the issuance of the CEC Note
and the Warrants to the Lender; and (b) duly authorize and reserve the shares of
Common Stock to be issued on the exercise of the Warrants (the "Warrant
Shares").

2. Closing. The consummation of the purchase and sale of the CEC Note and the
Warrants to the Lender and the sale of the Series B Notes (the "Closing") will
be held at the offices of Commercial Law Group, P.C., 210 Park Avenue, Suite
2725, Oklahoma City, Oklahoma 73102, on the earlier of: (a) the date all of the
conditions precedent set forth in paragraph 5 of this Agreement have been
performed to the reasonable satisfaction of the Lender or waived in writing by
the Lender;

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
<PAGE>   7

and (b) July 23, 2001, at 10:00 a.m. local time, or at such other time, date and
place as may be agreed to by the Corporation and the Lender (the "Closing
Date"). At the Closing, the Corporation will deliver to the Lender: (y) the CEC
Note in substantially the form at Exhibit "A" attached as a part hereof; and (z)
the Warrants in substantially the form at Exhibit "B" attached as a part hereof,
both duly executed and registered in the name of the Lender or the Lender's
nominee. The Lender will deliver to the Corporation in immediately available
funds the purchase price for the CEC Note and the Warrants to be acquired by the
Lender.

3. Corporation's Representations and Warranties. As an inducement to the Lender
to enter into and perform this Agreement, the Corporation and each of the
Subsidiaries hereby severally represent and warrant to and covenant with the
Lender as follows:

         3.1      Organization and Standing. The Corporation is an exempted
                  company limited by shares duly organized, validly existing and
                  in good standing under the laws of the Cayman Islands and
                  continues in the Cayman Islands with all of the legal and
                  contractual rights and interests the Corporation held as a
                  Yukon, Canada corporation. The Corporation has the requisite
                  power and authority to own all of the Corporation's
                  properties, to conduct the Corporation's business as presently
                  being conducted and to conduct the Corporation's business as
                  it is proposed to be conducted. The Corporation is duly
                  qualified to do business in those jurisdictions listed in
                  Schedule "3.1." The Corporation does not and will not have any
                  material properties or operations elsewhere and the
                  Corporation is not and will not be subject to any material
                  liability or disability in conducting business by reason of
                  any failure to obtain any qualification to do business in any
                  other jurisdiction. The Corporation conducts no business in
                  any jurisdiction except through the Subsidiaries.

         3.2      Subsidiaries. Except for the subsidiaries set forth on
                  Schedule "3.2" attached as a part hereof in which the
                  Corporation directly owns one hundred percent (100%) of the
                  legal and beneficial capital equity (the "Subsidiaries"), the
                  Corporation does not directly or indirectly or through any
                  entity or person own any voting power or capital of any
                  corporation, association, partnership, limited liability
                  company or other business entity. Each Subsidiary is a
                  corporation or other entity duly organized, validly existing
                  and in good standing under the laws of the jurisdiction of its
                  organization listed on Schedule "3.2" and has the requisite
                  power and authority to own all of such Subsidiary's
                  properties, to conduct such Subsidiary's business as presently
                  being conducted and to conduct such Subsidiary's business as
                  it is proposed to be conducted. Each Subsidiary is duly
                  qualified to do business in those jurisdictions listed in
                  Schedule "3.2." No Subsidiary has or will have any material
                  properties or operations in any jurisdiction not listed on
                  Schedule "3.2" and each Subsidiary is not and will not be
                  subject to any material liability or disability in conducting
                  business by reason of failure to obtain any qualification to
                  do any business in any other jurisdiction. As of the Closing
                  Date and until the CEC Note is paid in full, the Subsidiaries
                  listed on Schedule "3.2" as dormant or inactive will remain
                  dormant and inactive and no business will be conducted
                  directly or indirectly by, through or under any such
                  Subsidiaries.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -2-
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         3.3      Corporate Power. The Corporation has all requisite power and
                  authority to: (a) enter into this Agreement and each of the
                  agreements and instruments to be executed in connection
                  herewith; (b) issue and sell the CEC Note and the Warrants;
                  (c) issue the Warrant Shares; and (d) carry out and perform
                  its obligations under the terms of this Agreement and any
                  other document to be executed in connection herewith
                  including, without implied limitation, that certain Pledge and
                  Security Agreement, those certain Deed of Mortgage over Shares
                  (or Charge Over Shares to the extent agreed to by the parties)
                  and other collateral documents, each dated on or about the
                  Closing Date between the Corporation and the Lender, as
                  collateral agent, at Exhibit "C" attached as a part hereof
                  (collectively, the "Pledge Agreement"), that certain
                  Shareholder's Rights Agreement dated on or about the Closing
                  Date between the Corporation and the Lender at Exhibit "D"
                  attached as a part hereof (the "Shareholder's Rights
                  Agreement") and that certain Registration Rights Agreement
                  dated on or about the Closing Date between the Corporation and
                  the Lender at Exhibit "E" attached as a part hereof (the
                  "Registration Agreement") and the Collateral Sharing and
                  Agency Agreement dated on or about the Closing Date between
                  Lender and the trustee for the New Indenture at Exhibit "F"
                  attached as a part hereof (the "Collateral Sharing Agreement"
                  and together with the Pledge Agreement, the Shareholder's
                  Rights Agreement, the Registration Agreement and any and all
                  other documents and instruments executed and delivered in
                  connection therewith, the "Related Agreements"). The
                  Corporation has taken all actions necessary to authorize the
                  execution, delivery and performance of this Agreement and the
                  Related Agreements, the consummation of the transactions
                  contemplated hereby and thereby and the issuance and delivery
                  of the CEC Note, the Warrants and the Warrant Shares. This
                  Agreement and the Related Agreements are legal, valid and
                  binding obligations of the Corporation, enforceable against
                  the Corporation in accordance with their terms except as the
                  enforceability thereof may be limited by bankruptcy,
                  insolvency or similar laws affecting creditors' rights
                  generally.

         3.4      Investments. Neither the Corporation nor the Subsidiaries own
                  of record or beneficially any Investment (as hereafter
                  defined) other than Investments in the Subsidiaries and
                  Investments of the type permitted under paragraph 8.8 of this
                  Agreement and Investments disclosed in the Corporation's most
                  recent 10-Q filed with the SEC. For purposes of this Agreement
                  the term "Investment" means: (a) all investments in the form
                  of loans, advances or capital contributions; (b) all
                  guarantees of indebtedness or other obligations of any other
                  person or entity; (c) all purchases (or other acquisitions for
                  consideration) of capitalized assets, indebtedness, capital
                  stock or other securities of any other person or entity; and
                  (d) all other items that would be classified as investments
                  (including, without limitation, purchases of assets outside
                  the ordinary course of business) or advances on a balance
                  sheet prepared in accordance with generally accepted
                  accounting principles in the United States ("GAAP").

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -3-
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         3.5      Minute Books. The minute books of the Corporation contain a
                  complete and correct summary in all material respects of all
                  meetings of the Corporation's Board of Directors (the "Board")
                  and the Corporation's shareholders since the inception of the
                  Corporation. The minute books of each Subsidiary contain a
                  complete and correct summary in all material respects of all
                  meetings of the board of directors of such Subsidiary and such
                  Subsidiary's shareholders since the inception of such
                  Subsidiary. The originals or true and correct copies of such
                  minute books have been made available to the Lender.

         3.6      Capitalization. As of the Closing, the Corporation's
                  authorized capital stock will consist of two hundred million
                  (200,000,000) shares, par value $0.001 per share, of which one
                  hundred fifty million (150,000,000) shares are designated as
                  ordinary shares and fifty million (50,000,000) are shares
                  which may be designated by the Board. After consummation of
                  the transactions contemplated by this Agreement and the Rights
                  Offering, the only shares of capital stock issued and
                  outstanding will be 37,836,420 shares of fully paid and
                  non-assessable Common Stock, there will be no shares of any
                  other class of capital stock or equity issued or outstanding
                  and the only shares of Common Stock reserved for issuance or
                  committed to be issued will be: (a) shares issuable upon the
                  exercise of stock options under the Corporation's 1995, 1996
                  and 1997 stock option plans under which options to purchase
                  4,686,934 shares of Common Stock have been granted at exercise
                  prices reflected in Schedule "3.6" attached hereto and made a
                  part hereof and 669,954 shares are available for option
                  grants; (b) 12,612,140 shares issuable upon the exercise of
                  the Warrants; and (c) 12,612,140 shares issuable upon the
                  exercise of warrants (the "RO Warrant Shares") to be issued in
                  connection with the Rights Offering (the "RO Warrants"). As of
                  the Closing, there will be no declared but unpaid dividends or
                  undeclared dividend arrearage on any shares of capital stock
                  of the Corporation. In addition, as of the Closing, except as
                  set forth in this paragraph, there will not exist any stock
                  appreciation rights, phantom stock plans, preemptive rights,
                  conversion rights, options, warrants or agreements granted,
                  issued by or binding on the Corporation for the purchase or
                  acquisition of any shares of its capital stock other than
                  those issued, reserved or committed to be issued pursuant to
                  this Agreement, the Related Agreements and pursuant to that
                  certain rights offering to be made to the Common Stock holders
                  of the Corporation pursuant to which the shareholders of the
                  Corporation will be granted the right to purchase an
                  approximate pro rata share of the Corporation's Series A
                  Senior Secured Notes due 2004 in the aggregate principal
                  amount of Twenty-Two Million Five Hundred Thousand Dollars
                  ($22,500,000.00) (the "Series A Notes") coupled with
                  detachable RO Warrants (the "Rights Offering") all on terms
                  substantially similar to the terms of this Agreement with the
                  proceeds to be used exclusively to refinance the Series B
                  Notes. All outstanding securities of the Corporation were
                  issued in compliance with all Cayman Islands and United States
                  federal and state securities laws.

         3.7      Subsidiary Capitalization. Each Subsidiary's authorized,
                  issued and outstanding capital stock or other equity interests
                  is as set forth on Schedule "3.7" attached as a

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -4-
<PAGE>   10

                  part hereof. The issued and outstanding shares of capital
                  stock or other equity interests of each Subsidiary are as set
                  forth on Schedule "3.7" are owned of record one hundred
                  percent (100%) by the Corporation legally and beneficially. As
                  of the Closing, there will be no declared but unpaid dividends
                  or undeclared dividend arrearage on any shares of capital
                  stock or other equity interests of any of the Subsidiaries. As
                  of the Closing there will not exist any stock appreciation
                  rights, phantom stock plans, preemptive rights, conversion
                  rights, options, warrants or agreements granted, issued by or
                  binding on any Subsidiary for the purchase or acquisition of
                  any shares of such Subsidiary's capital stock or other equity
                  interests. All outstanding securities of each Subsidiary were
                  issued in compliance with all laws of the jurisdiction under
                  which such Subsidiary was formed and United States federal and
                  state securities laws.

         3.8      No Violation. The execution, delivery, consummation and
                  performance of this Agreement, the CEC Note, the Warrants and
                  the Related Agreements and the transactions contemplated
                  thereby will not (with or without notice, the passage of time
                  or both): (a) conflict with or result in a breach of any
                  provision of the Memorandum of Association or Articles of
                  Association of the Corporation or the formation or governing
                  documents of any Subsidiary; (b) result in a default, give
                  rise in any third party of the right to exercise any
                  termination, cancellation, acceleration or any other remedy,
                  or require any consent or approval under the terms, conditions
                  or provisions of any note, bond, mortgage, indenture, loan,
                  hedging arrangement, license, agreement, lease or other
                  instrument or obligation which is binding on the Corporation,
                  any Subsidiary or any of their assets and is material to the
                  Corporation and the Subsidiaries taken as a whole; (c) violate
                  any law, judgment, order, writ, injunction, decree, statute,
                  rule or regulation of any court, administrative agency,
                  bureau, board, commission, office, authority, department or
                  other governmental entity applicable to the Corporation, any
                  Subsidiary or any of their assets which, singly or in the
                  aggregate, would have a Material Adverse Effect (as
                  hereinafter defined); (d) violate the listing rules of the
                  American Stock Exchange ("AMEX") or adversely impact the
                  Corporation's listing agreement with AMEX; or (e) require the
                  Corporation or any of the Subsidiaries to guarantee any
                  indebtedness or grant a lien or encumbrance on any of their
                  respective assets except as provided herein to secure the
                  obligations hereunder. Neither the Corporation nor any of the
                  Subsidiaries has violated any foreign, federal, state or local
                  law or regulation relating to the protection of human health
                  and safety, the environment or hazardous or toxic substances
                  or wastes, pollutants or contaminants, any provisions of the
                  Employee Retirement Income Security Act of 1974, as amended,
                  or any provisions of the Foreign Corrupt Practices Act or the
                  rules or regulations promulgated thereunder, except for such
                  violations which, singly or in the aggregate, would not have a
                  Material Adverse Effect.

         3.9      Validity. The Warrants and the Warrant Shares when issued in
                  accordance with the terms of this Agreement and the Related
                  Agreements, will be duly and validly issued, fully paid,
                  non-assessable and free and clear of all liens, claims and
                  encumbrances.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -5-
<PAGE>   11

                  The CEC Note, the Warrants, this Agreement and the Related
                  Agreements have been duly authorized and, on the Closing Date,
                  will have been validly executed and delivered by the
                  Corporation and this Agreement has been duly authorized,
                  executed and delivered by each of the Subsidiaries. The CEC
                  Note, the Warrants, this Agreement and the Related Agreements
                  will be valid and binding obligations and agreements of the
                  Corporation enforceable against the Corporation in accordance
                  with their respective terms, except as the enforceability
                  thereof may be limited by bankruptcy, insolvency or similar
                  laws affecting creditors' rights generally. This Agreement
                  will be a valid and binding obligation and agreement of each
                  of the Subsidiaries enforceable against each Subsidiary in
                  accordance with its terms, except as the enforceability
                  thereof may be limited by bankruptcy, insolvency or similar
                  laws affecting creditors' rights generally. On the Closing
                  Date, to the extent applicable thereto, the CEC Note, the
                  Warrants, this Agreement and the Related Agreements will
                  conform in all material respects to the rules and regulations
                  of the Securities and Exchange Commission (the "SEC").

         3.10     SEC Documents. The Lender has had or will have available to
                  the Lender a true, correct and complete copy of each report,
                  schedule, registration statement and definitive proxy
                  statement filed by the Corporation with the SEC since December
                  31, 1997 and prior to the Closing Date (the "SEC Documents"),
                  which are all the documents (other than preliminary material)
                  that the Corporation was or will be required to file with the
                  SEC since December 31, 1997. Except as set forth in Schedule
                  "3.10" attached hereto as a part hereof, as of their
                  respective dates, the SEC Documents complied or will comply in
                  all material respects with the requirements of the Securities
                  Act of 1933, as amended (the "Securities Act"), or the
                  Securities Exchange Act of 1934, as amended (the "Exchange
                  Act"), as the case may be, and the rules and regulations of
                  the SEC thereunder applicable to such SEC Documents, and none
                  of the SEC Documents contained as of their respective dates
                  any untrue statement of a material fact or omitted or will
                  omit to state a material fact required to be stated therein or
                  necessary to make the statements therein, in light of the
                  circumstances under which they were made, not misleading.

         3.11     Financial Statements. The financial statements of the
                  Corporation included in the SEC Documents (the "Financial
                  Statements") have been prepared in accordance with the
                  applicable published rules and regulations of the SEC with
                  respect thereto and in accordance with GAAP applied on a
                  consistent basis during the periods involved (except as may be
                  indicated in the notes thereto or, in the case of unaudited
                  statements, as permitted by Rule 10-01 of Regulation S-X of
                  the SEC) and fairly present in all material respects, in
                  accordance with applicable requirements of GAAP (in the case
                  of unaudited statements, subject to normal, recurring
                  adjustments), the consolidated financial position of the
                  Corporation and the Subsidiaries as of their respective dates
                  and the consolidated results of operations and the
                  consolidated cash flows of the Corporation and the
                  Subsidiaries for the periods presented therein. The unaudited
                  financials statements of each of the Subsidiaries which have
                  been provided to the Lender are correct and complete and
                  fairly reflect the financial condition of

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -6-
<PAGE>   12

                  each of the Subsidiaries as of the date thereof and have been
                  prepared in conformity with accounting principles applied on a
                  basis consistent with that of preceding periods.

         3.12     Absence of Undisclosed Liabilities. As of the Closing, the
                  Corporation and each Subsidiary will not have any material
                  debt, liability or obligation of any nature (whether accrued,
                  absolute, contingent, direct, indirect, perfected, inchoate,
                  unliquidated, due or to become due) arising out of any
                  transactions, series of transactions, action or inaction or
                  facts or conditions existing on or prior to the Closing
                  (regardless of when such liability or obligation is asserted)
                  except: (a) as listed on Schedule "3.12" attached as a part
                  hereof or disclosed in the Corporation's most recent 10-Q
                  filed with the SEC; or (b) clearly and accurately disclosed in
                  and accounted for in the Financial Statements. Except for the
                  foregoing, the Corporation and its officers and directors do
                  not know, and have no reasonable grounds to know, of any basis
                  for the assertion against the Corporation or any Subsidiary of
                  any material liabilities or obligations not clearly and
                  adequately reflected, reserved and disclosed in the Financial
                  Statements or the SEC Documents.

         3.13     Absence of Certain Changes. As of the Closing there will not
                  have occurred since the Corporation's Annual Report on Form
                  10-K for the year ended December 31, 2000: (a) any change,
                  occurrence, condition or development that will or is likely to
                  have a Material Adverse Effect; (b) any dividend,
                  distribution, recapitalization, combination, redemption,
                  subdivision or purchase with respect to any shares of the
                  capital stock of the Corporation or any Subsidiary, except
                  between and among the Corporation and the Subsidiaries; (c)
                  any new indebtedness for borrowed money incurred by the
                  Corporation or any Subsidiary, except between and among the
                  Corporation and the Subsidiaries; (d) any sale, transfer or
                  lease of any of the assets of the Corporation or any
                  Subsidiary, except in the ordinary course of business or as
                  set forth in Schedule "3.13" attached hereto and made a part
                  hereof; (e) any mortgage or pledge of, grant of security
                  interest in or other lien or encumbrance against any of the
                  assets of the Corporation or any Subsidiary; (f) any
                  cancellation, compromise, release or waiver of any material
                  claims, indebtedness or obligations owing to the Corporation
                  or any Subsidiary except (whether pursuant to a contract
                  agreement or otherwise) as a result of payments of such
                  obligations in the ordinary course of business consistent with
                  past practices; (g) any material increase or change, (or offer
                  or promise whether or not legally binding) in any salary,
                  compensation or employee benefits with respect to any employee
                  of the Corporation or any Subsidiary outside the ordinary
                  course; (h) any physical damage, destruction or loss (whether
                  or not covered by insurance) with respect to the properties,
                  business or prospects of the Corporation which will or is
                  likely to have a Material Adverse Effect; (i) any changes in
                  the accounting principles, methods or practices utilized by
                  the Corporation or any of its Subsidiaries (including
                  depreciation or amortization policies or rates); (j) any
                  actual or threatened cancellation, default, termination or
                  dispute under any production sharing contract, Concession
                  Agreements (as hereinafter defined), exploration agreement,
                  transportation license or similar agreement with the

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -7-
<PAGE>   13

                  government of Colombia or Empresa Colombiana de Petroleos
                  ("Ecopetrol") or under any other material agreement, contract
                  or relationship which is binding on the Corporation, any
                  Subsidiary or their assets which would have a Material Adverse
                  Effect; or (11) any action taken by the Corporation or its
                  Subsidiaries with respect to the foregoing.

         3.14     Contracts, Leases, and Other Agreements. Except as set forth
                  in Schedule "3.14" or Schedule "3.15" attached as a part
                  hereof and in the Corporation's most recent 10-K or 10-Q filed
                  with the SEC and except for this Agreement, the Existing
                  Indenture and the New Indenture, the Corporation and the
                  Subsidiaries are not parties to or bound by any material
                  contract, lease, agreement, plan, license, arrangement,
                  obligation or commitment (collectively, the "Contracts"): (a)
                  which is a requirement or output contract; (b) relating to any
                  indebtedness, guaranty, surety or indemnification by or for
                  the Corporation or any Subsidiary; (c) prohibiting the
                  Corporation or any Subsidiary from freely engaging in any
                  business or competing anywhere in the world; or (d) that is
                  otherwise material to the business of the Corporation or any
                  of its Subsidiaries. All Contracts to which the Corporation or
                  any Subsidiary is a party or by which any of their assets are
                  bound are listed in Schedule "3.14" and all Contracts
                  including, without limitation, the Dindal Association Contract
                  issued by Ecopetrol in March 1993, the Rio Seco Association
                  Contract issued by Ecopetrol in August 1995, the Rosablanca
                  Association Contract issued by Ecopetrol in February 1998, the
                  Deep Dindal Association Contract issued by Ecopetrol in April
                  2001 and the Cristales Association Contract issued by
                  Ecopetrol in April 2001 (the "Concession Agreements"), are
                  valid, binding and in full force and effect. There is no
                  material breach, default, or event which, (with notice, lapse
                  of time or both) would constitute a material breach or default
                  by the Corporation, any Subsidiary or any other party to any
                  of the Contracts. Neither the Corporation nor any of its
                  Subsidiaries has received any notice of breach, cancellation,
                  termination or non-renewal of any Contract.

         3.15     ERISA. Except as set forth in Schedule "3.15" attached as a
                  part hereof, neither the Corporation nor any Subsidiary has
                  maintained, sponsored, adopted, made contributions to,
                  obligated itself to make contributions to, agreed to pay any
                  benefits under, or granted rights under or with respect to any
                  employee benefit plan ("Employee Benefit Plan") which
                  includes, without implied limitation, any retirement plan,
                  deferred compensation plan, medical plan, life insurance plan,
                  long-term disability plan, dental plan, personnel policy
                  (including, but not limited to, vacation time, holiday pay,
                  bonus programs, moving expense reimbursement programs and sick
                  leave), excess benefit plan, bonus or incentive plan
                  (including, but not limited to, stock options, restricted
                  stock, stock bonus and deferred bonus plans), salary reduction
                  agreement, change-of-control agreement, employment agreement,
                  consulting agreement, workers compensation law, unemployment
                  compensation law, social security law or any other benefit,
                  program or contract, (whether written, oral, voluntary or
                  pursuant to a collective bargaining agreement), which could
                  give rise to or result in the Corporation or any Subsidiary
                  having any debt, liability, claim or obligation of any kind or
                  nature, whether accrued, absolute, contingent, direct,

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -8-
<PAGE>   14

                  indirect, known or unknown, perfected or inchoate or otherwise
                  and whether or not due or to become due. Correct and complete
                  copies (or descriptions, if oral) of all Employee Benefit
                  Plans have been furnished to the Lender.

         3.16     Arrangements with Related Parties. Except as set forth on
                  Schedule "3.16" attached as a part hereof and in the
                  Corporation's most recent 10-K or 10-Q filed with the SEC and
                  except for the Series B Notes, the Rights Offering and related
                  documents, there are no direct or indirect contracts,
                  arrangements or proposed transactions between the Corporation
                  or any Subsidiary and any Affiliate (as hereafter defined) of
                  the Corporation or any Subsidiary. For purposes of this
                  Agreement the term "Affiliate" means as to any person or
                  entity, any other person or entity controlling, controlled by
                  or under common control with that person or entity (whether
                  such control is direct or indirect). Each executive officer
                  and director of the Corporation or any Subsidiary (together
                  with their immediate family members) is automatically deemed
                  to be an Affiliate of the Corporation and each Subsidiary.

         3.17     Taxes. All foreign (including, without limitation, Canadian,
                  Cayman Islands, Panama and Colombian), and United States
                  federal and state, income, sales, employment and other tax
                  returns and reports (the "Tax Returns") of the Corporation and
                  each Subsidiary required by law to be filed have been timely
                  filed or valid extensions have been obtained. The Tax Returns
                  which have been filed comply with all applicable laws,
                  accurately reflect the results of the Corporation's operations
                  and are true and correct in all respects. All taxes
                  (including, without limitation, all fees, penalties, interest
                  and other governmental charges, the "Taxes") which are due and
                  payable have been timely paid and properly recorded in the
                  appropriate accounting records in a manner consistent with the
                  applicable laws and the Corporation's past practices. There is
                  no pending or known threatened audit of or claim against the
                  Corporation or any Subsidiary which might result in the
                  assessment or payment of additional Taxes in excess of the
                  amounts reflected on the Financial Statements or Tax Returns.
                  The Corporation and the Subsidiaries have not executed any
                  waiver of any statute of limitations related to any assessment
                  of Taxes, filed or joined in any Tax Returns on a unitary,
                  combined or consolidated basis, been required to pay any Taxes
                  attributable to any other member of any group or affiliated
                  corporations that file consolidated returns for federal income
                  tax purposes by reason of Treasury Regulation Section 1.1502-6
                  or any comparable provision of state or local law that
                  provides for joint or several liability, in whole or in part
                  agreed to and are not required to make any adjustments under
                  Section 481(a) of the Internal Revenue Code by reason of a
                  change in accounting method or otherwise consented to have the
                  provisions of Section 341(f)(2) of the Internal Revenue Code
                  apply to any sale of its capital stock or become parties to
                  any tax sharing agreements.

         3.18     Insurance. Schedule "3.18" attached as a part hereof is a
                  true, correct and complete list and description (including
                  policy numbers) of all insurance policies owned by the
                  Corporation and each Subsidiary or otherwise pertaining to
                  their business. The insurance policies are in full force and
                  effect, no default has occurred under any

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -9-
<PAGE>   15

                  policy and no notice of cancellation, intent to cancel, notice
                  of premium increase or any other notice regarding such notices
                  has been received by the Corporation or any Subsidiary. The
                  insurance policies insure the Corporation and the Subsidiaries
                  against all risks and liabilities normally insured against by
                  companies similarly situated to the Corporation and the
                  Subsidiaries. Schedule "3.18" also contains a list of all
                  pending claims with respect to any insurance policy and any
                  instances of a denial, limitation or reservation of coverage
                  by any insurance company.

         3.19     Litigation. Except as set forth on Schedule "3.19" attached as
                  a part hereof, there have been no actions, suits, proceedings
                  or investigations pending or threatened against or affecting
                  the Corporation or any Subsidiary during the last two (2)
                  years before or by any foreign, federal, state, municipal or
                  other governmental court, department, commission, board,
                  agency or instrumentality. None of the matters listed in
                  Schedule "3.19" could reasonably be expected to, alone or in
                  the aggregate, have a material adverse effect on the business,
                  assets, prospects, operations, employee relations, rights,
                  business, prospects, results of operations or condition,
                  financial or otherwise, of the Corporation and the
                  Subsidiaries, taken as a whole (a "Material Adverse Effect").
                  The Corporation and the Subsidiaries: (a) are not operating
                  under, subject to or in default with respect to any material
                  order, writ, injunction or decree of any court or foreign,
                  federal, state, municipal or other governmental department,
                  commission, board, agency or instrumentality, foreign or
                  domestic; (b) are not charged or threatened with a violation,
                  or under investigation with respect to possible violation, of
                  any material provision of any foreign, federal, state or local
                  law or administrative ruling or regulation relating to any of
                  them or their business, affairs, assets, prospects,
                  operations, employee relations or condition, financial or
                  otherwise; and (c) have not received any material complaint
                  from any supplier, customer, client, vendor, well participant,
                  royalty owner, licensor, employee or contractor.

         3.20     Consents. All consents, approvals, qualifications, orders,
                  authorizations or filings with respect to or required in
                  connection with the Corporation's execution, delivery and
                  performance of the CEC Note, the Warrants, this Agreement and
                  the Related Agreements have been obtained and evidence thereof
                  provided to the Lender.

         3.21     Title to Properties; Liens and Encumbrances. The Corporation
                  and each Subsidiary have defensible title to all of their
                  properties and assets free and clear of all mortgages, liens
                  and encumbrances, except liens for current taxes not yet due
                  and minor liens and encumbrances which do not materially
                  impair the operations of the Corporation and the Subsidiaries.
                  With respect to properties and assets they hold under the
                  Concession Agreements or leases, the Corporation and the
                  Subsidiaries are in compliance with such agreements and leases
                  and hold a valid license or leasehold interest thereunder free
                  of all liens, claims or encumbrances, and to the best
                  knowledge of the Corporation, all other parties to the
                  Concession Agreements and leases are in compliance with the
                  material terms thereof. The Corporation's and the
                  Subsidiaries' properties and assets are in good condition and
                  repair in all material

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -10-
<PAGE>   16

                  aspects. The Corporation and each of the Subsidiaries have
                  defensible title to and the right to use all assets necessary
                  to conduct their businesses as presently conducted or as
                  proposed to be conducted free and clear of any liens, claims
                  and encumbrances.

         3.22     Compliance with Law and Other Instruments. The Corporation and
                  the Subsidiaries: (a) are in full compliance (and not in
                  violation of) any applicable articles or certificate of
                  incorporation, bylaws, mortgage, indenture, contract,
                  agreement, instrument, judgment, decree, order, statute, rule
                  or regulation, except to the extent such failure to comply or
                  violation would not have a Material Adverse Effect; (b) have
                  or can reasonably be expected to obtain all material
                  franchises, permits, licenses and approvals necessary to
                  conduct their business as presently conducted and as proposed
                  to be conducted; and (c) have no knowledge of any change to
                  any law, statute, rule or regulation which could adversely
                  affect the Corporation, any Subsidiary or their business as
                  presently conducted or as proposed to be conducted.

         3.23     Registration Rights. Except pursuant to the Registration
                  Agreement, the RO Warrants to be issued in the Rights Offering
                  and the other agreements listed in Schedule "3.23" attached
                  hereto as a part hereof, there are no contracts, agreements or
                  understandings between the Corporation and any person granting
                  such person the right to require the Corporation to file a
                  registration statement under the Securities Act with respect
                  to any securities of the Corporation or to require the
                  Corporation to include such securities with the Warrant Shares
                  to be registered pursuant to the Registration Agreement.

         3.24     Federal Reserve Regulations. Neither the Corporation nor any
                  of the Subsidiaries nor any agent thereof acting on the behalf
                  of any of them has taken, and none of them will take, any
                  action that might cause this Agreement or the issuance or sale
                  of the CEC Note and Warrants to violate Regulation G (12
                  C.F.R. Part 207), Regulation T (12 C.F.R. Part 220),
                  Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R.
                  Part 224) of the Board of Governors of the Federal Reserve
                  System.

         3.25     Reserve Information. The information which was supplied by the
                  Corporation to Ryder Scott Company Petroleum Consultants (the
                  "Reserve Engineer"), being independent petroleum engineers,
                  for purposes of evaluating the oil and gas reserves of the
                  Corporation and the Subsidiaries as of December 31, 2000,
                  including, without limitation, production, costs of operation
                  and development, current prices for production, agreements
                  relating to current and future operations and sales of
                  production, was true and correct in all material respects on
                  the dates such estimates were made and such information was
                  supplied and was prepared in accordance with customary
                  industry practices, as indicated in the letter of the Reserve
                  Engineer dated February 21, 2001 (the "Reserve Letter"). The
                  Reserve Engineer was, as of the date of the Reserve Letter and
                  is, as of the date hereof, independent with respect to the
                  Corporation and the Subsidiaries. Other than normal production
                  of the reserves and product price fluctuations and except as
                  set forth in Schedule "3.25" attached hereto as a part hereof,
                  the Corporation is not aware of any facts or circumstances
                  that

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -11-
<PAGE>   17

                  would result in a material adverse change in the reserves, or
                  the present value of future net cash flows therefrom, as
                  reflected in the Reserve Letter and the reserve reports
                  referenced therein. Estimates of such reserves and present
                  values as described in the Reserve Letter and the reserve
                  reports referenced therein comply in all material respects to
                  the applicable requirements of Regulation S-X and Industry
                  Guide 2 under the Securities Act.

         3.26     Securities Classes. When the CEC Note is issued and delivered
                  pursuant to this Agreement, the CEC Note will not be of the
                  same class (within the meaning of Rule 144A under the
                  Securities Act) as any security of the Corporation or the
                  Subsidiaries that is listed on a national securities exchange
                  registered under Section 6 of the Exchange Act or that is
                  quoted in a United States automated inter-dealer quotation
                  system.

         3.27     Solicitation. No form of general solicitation or general
                  advertising (as defined in Regulation D under the Securities
                  Act) was used by the Corporation, the Subsidiaries or any of
                  their respective representatives in connection with the offer
                  and sale of the CEC Note or the Warrants including, without
                  limitation, articles, notices or other communications
                  published in any newspaper, magazine or similar medium or
                  broadcast over television or radio, or any seminar or meeting
                  whose attendees have been invited by any general solicitation
                  or general advertising. No securities of the same class as the
                  CEC Note have been issued and sold by the Corporation within
                  the six (6) month period immediately prior to the date hereof.

         3.28     Registration Requirements. Assuming the accuracy of the
                  Lender's representations and agreements set forth in this
                  Agreement, no registration under the Securities Act of the CEC
                  Note or the Warrants is required for the sale of the CEC Note
                  and the Warrants to the Lender as contemplated by this
                  Agreement.

         3.29     Certificates. Each certificate signed by any officer of the
                  Corporation or any Subsidiary and delivered to any of the
                  Lender or counsel for the Lender will be deemed to be a
                  representation and warranty by the Corporation and the
                  Subsidiaries to the Lender as to the matters covered thereby.

         3.30     Full Disclosure. This Agreement, the Related Agreements and
                  any schedule referenced in or attached to this Agreement or
                  any of the Related Agreements, any document furnished to the
                  Lender under this Agreement and any certification furnished to
                  the Lender under this Agreement or any of the Related
                  Agreements do not contain any untrue statement of a material
                  fact and do not omit to state a material fact necessary to
                  make the statements made, in the circumstances under which
                  they were made, not misleading. All of the representations,
                  warranties and covenants in this Agreement and in the Related
                  Agreements are true and correct as of the date made, will be
                  true and correct as of the Closing and will survive and not be
                  waived, discharged, released, modified, terminated or affected
                  by the Closing or any due diligence by the Lender.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -12-
<PAGE>   18

         3.31     Acknowledgment. The Corporation acknowledges that the Lender
                  and, for purposes of the opinions to be delivered to the
                  Lender pursuant to this Agreement, counsel to the Corporation
                  and the Subsidiaries and counsel to the Lender will rely upon
                  the accuracy and truth of the foregoing representations and
                  the Corporation hereby consents to such reliance.

4. Lender's Representations and Warranties. The Lender represents and warrants
to the Corporation as follows:

         4.1      Authorization; Power. The Lender has all requisite legal power
                  and authority to execute, deliver and perform this Agreement
                  and the Related Agreements to which it is a party. The Lender
                  has taken all necessary action for the authorization,
                  execution, delivery and performance of this Agreement and the
                  Related Agreements and the consummation of the transactions
                  contemplated thereby. This Agreement and the Related
                  Agreements are legal, valid and binding obligations of the
                  Lender, which are enforceable against the Lender in accordance
                  with their terms.

         4.2      Investment Representations. The Lender understands that the
                  CEC Note, the Warrants and the Warrant Shares are not
                  registered under the Securities Act. The Lender also
                  understands that the CEC Note and Warrants are being offered
                  and sold pursuant to an exemption from registration contained
                  in the Securities Act based in part upon the Lender's
                  representations contained in this Agreement. The Lender hereby
                  represents and warrants as follows:

                  4.2.1    Economic Risk. The Lender has substantial experience
                           in evaluating and investing in private placement
                           transactions of securities in companies similar to
                           the Corporation so the Lender is capable of
                           evaluating the merits and risks of an investment in
                           the Corporation. The Lender understands that: (a) the
                           investment contemplated by this Agreement involves a
                           substantial degree of risk; (b) the Lender must bear
                           the economic risk of this investment indefinitely
                           unless the CEC Note, the Warrants or the Warrant
                           Shares are registered pursuant to the Securities Act,
                           or an exemption from registration is available; and
                           (c) the Corporation has no present intention of
                           registering the CEC Note, the Warrants or the Warrant
                           Shares. The Lender also understands that there is no
                           assurance that any exemption from registration under
                           the Securities Act will be available and that, even
                           if available, such exemption may not allow the Lender
                           to transfer all or any portion of the CEC Note, the
                           Warrants or the Warrant Shares.

                  4.2.2    Acquisition for Own Account. The Lender is acquiring
                           the CEC Note, the Warrants and the Warrant Shares for
                           the Lender's own account for investment purposes
                           only, and does not intend to distribute the CEC Note,
                           the Warrants or the Warrant Shares.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -13-
<PAGE>   19

                  4.2.3    Protection. The Lender represents that the Lender:
                           (a) is an accredited investor within the meaning of
                           Regulation D promulgated under the Securities Act;
                           (b) has the capacity to protect its own interests in
                           connection with the transactions contemplated in this
                           Agreement and the Related Agreements; and (c) is
                           aware of no publication of any advertisement in
                           connection with the transactions contemplated in this
                           Agreement.

                  4.2.4    Corporation Information. The Lender has: (a) received
                           and read all information that the Lender has
                           requested regarding the Corporation's business,
                           management and financial affairs; (b) had the
                           opportunity to discuss such matters with directors,
                           officers and management of the Corporation; (c) had
                           the opportunity to review the Corporation's
                           operations and facilities; and (40 had the
                           opportunity to ask questions of and receive answers
                           from the Corporation and its management regarding the
                           terms and conditions of this investment.

                  4.2.5    Residence. The office or offices of the Lender in
                           which its investment decision was made is located at
                           the address or addresses of the Lender set forth on
                           the signature page hereto. The Lender represents that
                           no offer to purchase securities of the Corporation
                           was made outside such jurisdiction.

5. Lender's Conditions. The obligation of the Lender to purchase the CEC Note
and the Warrants at the Closing is subject to the fulfillment to the Lender's
satisfaction of each of the following conditions:

         5.1      Representations and Warranties Correct. The representations
                  and warranties made by the Corporation in paragraph 3 of this
                  Agreement will be true and correct when made and will be true
                  and correct in all material respects as of the Closing, with
                  the same force and effect as if made on and as of the date of
                  Closing.

         5.2      Performance. All covenants, agreements and conditions
                  contained in this Agreement and the Related Agreements to be
                  performed by the Corporation or the Subsidiaries at or prior
                  to the Closing will have been performed and each of the
                  Related Agreements will be satisfactory to the Lender and the
                  Lender's counsel in form and content. The foregoing includes
                  the execution and delivery of this Agreement, the CEC Note,
                  the Warrants, the Related Agreements and the documents
                  required thereby and any other instrument, agreement or
                  document reasonably requested by the Lender including, without
                  limitation, security documents in form and substance
                  satisfactory to the Lender and its counsel which may include
                  (a) a requirement that the shares of the Subsidiaries be
                  registered in the name of the Lender or a nominee or agent for
                  the Lender and the trustee for the holders of the Series B
                  Notes and the Series A Notes to be issued in the Rights
                  Offering, and (b) the issuance of other instruments to protect
                  the Lender's interests.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -14-
<PAGE>   20

         5.3      Compliance Certificate. The Corporation will have delivered to
                  the Lender a certificate of the Corporation, executed by its
                  President dated the date of Closing truthfully certifying to
                  the fulfillment of the conditions specified in this paragraph
                  5, that there has not been a material adverse change in the
                  Corporation, any Subsidiary or the assets and businesses of
                  the foregoing since the date of the Corporation's Annual
                  Report on Form 10-K for the year ended December 31, 2000 such
                  other matters as the Lender may reasonably request.

         5.4      Omnibus Certificate. The Corporation will have delivered to
                  the Lender copies of each of the following in form and
                  substance satisfactory to the Lender and certified by the
                  Secretary of the Corporation to be in full force and effect on
                  the date of the Closing: (a) the certificate of incorporation
                  (or other formation documents as applicable) of the
                  Corporation and each Subsidiary certified by the jurisdiction
                  of formation as of a date not earlier than May 21, 2001; (b)
                  good standing certificates with respect to the Corporation and
                  each Subsidiary certified by the jurisdiction of formation as
                  of a date not more than twenty-one (21) days prior to the
                  Closing; (c) good standing certificates with respect to the
                  Corporation and each Subsidiary certified by the jurisdictions
                  in which the conduct of their businesses require them to be in
                  good standing, in each case as of a date not more than
                  twenty-one (21) days prior to the Closing; (d) the bylaws (or
                  equivalent documents) of the Corporation and each Subsidiary;
                  and (e) resolutions of the Board and each Subsidiary
                  authorizing the (i) the execution, delivery and performance of
                  this Agreement, the CEC Note, the Warrants and the Related
                  Agreements, and (ii) the transactions contemplated thereby
                  including the issuance and sale of the CEC Note, the Warrants
                  and the Warrant Shares to the Lender.

         5.5      Adverse Events. As of the Closing there will not have occurred
                  since the date of the Corporation's Annual Report on Form 10-K
                  for the year ended December 31, 2000: (a) any downgrading,
                  suspension or withdrawal of, nor shall any notice have been
                  given of any potential or intended downgrading, suspension or
                  withdrawal of, or of any review (or of any potential or
                  intended review) for a possible change that does not indicate
                  the direction of the possible change in, any rating of the
                  Corporation or any securities of the Corporation (including,
                  without limitation, the placing of any of the foregoing
                  ratings on credit watch with negative or developing
                  implications or under review with an uncertain direction) by
                  any "nationally recognized statistical rating organization,"
                  as such term is defined for purposes of Rule 436(g)(2) under
                  the Securities Act; or (b) any change, nor shall any notice
                  have been given of any potential or intended change, in the
                  outlook for any rating of the Corporation or any securities of
                  the Corporation by any such rating organization.

         5.6      Legal Opinion. The Corporation will have delivered to the
                  Lender the opinion of McAfee & Taft A Professional
                  Corporation, counsel to the Corporation, and Cayman Islands,
                  Panamanian and Colombian counsel dated the date of Closing,
                  addressed to the Lender covering all of the following matters
                  in form and content reasonably satisfactory to the Lender and
                  its counsel:

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -15-
<PAGE>   21

                  5.6.1    The Corporation is duly formed, validly existing and
                           in good standing under the laws of the Cayman Islands
                           and each of the Subsidiaries is duly formed, validly
                           existing and in good standing under the laws of the
                           jurisdiction of its formation. The Corporation and
                           each of the Subsidiaries have all requisite
                           corporate, partnership or limited liability company
                           power and authority to own or lease and operate their
                           respective properties and to conduct their respective
                           businesses.

                  5.6.2    The Corporation has the authorized capitalization set
                           forth in this Agreement. All of the outstanding
                           shares of capital stock of the Corporation and each
                           of the Subsidiaries have been duly authorized and
                           validly issued, are fully paid and non-assessable and
                           were not issued in violation of or subject to any
                           preemptive rights. To the knowledge of such counsel,
                           there are no: (a) outstanding securities of the
                           Corporation or any of the Subsidiaries convertible
                           into or evidencing the right to purchase or subscribe
                           for any shares of capital stock of the Corporation or
                           any of the Subsidiaries; (b) outstanding or
                           authorized options, warrants, subscriptions, rights,
                           commitments or any other agreements of any character
                           obligating the Corporation to issue any shares of its
                           capital stock or any securities convertible into or
                           evidencing the right to purchase or subscribe for any
                           shares of such stock; or (c) agreements with respect
                           to the voting, sale or transfer of any shares of
                           capital stock of the Corporation to which the
                           Corporation is a party, except as disclosed in this
                           Agreement, the Corporation's Annual Report on Form
                           10-K for the year ended December 31, 2000, or the
                           Corporation's Quarterly Report on Form 10-Q for the
                           quarter ending March 31, 2001.

                  5.6.3    The CEC Note has been duly and validly authorized,
                           and when executed, issued and delivered, will
                           constitute a valid and binding obligation of the
                           Corporation, enforceable against the Corporation in
                           accordance with its terms, except insofar as such
                           enforcement may be subject to (a) applicable
                           bankruptcy, insolvency, fraudulent conveyance,
                           reorganization, moratorium and similar laws now or
                           hereafter in effect relating to creditors' rights and
                           remedies generally and (b) general principles of
                           equity (whether enforcement is sought in a proceeding
                           at law or in equity).

                  5.6.4    This Agreement, the Warrants and the Related
                           Agreements have been duly and validly authorized,
                           executed and delivered by the Corporation and this
                           Agreement has been duly and validly authorized,
                           executed and delivered by the Subsidiaries. This
                           Agreement is a valid and binding agreement of the
                           Corporation and the Subsidiaries enforceable against
                           each of them in accordance with the terms hereof, and
                           each of the Warrants and the Related Agreements is a
                           valid and binding agreement of the Corporation
                           enforceable against the Corporation in accordance
                           with the terms thereof, except insofar as (a) such
                           enforcement may be subject to (i) applicable
                           bankruptcy,

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -16-
<PAGE>   22

                           insolvency, fraudulent conveyance, reorganization,
                           moratorium and similar laws now or hereafter in
                           effect relating to creditors' rights and remedies
                           generally and (ii) general principles of equity
                           (whether enforcement is sought in a proceeding at law
                           or in equity) and (b) rights to indemnification and
                           contribution contained therein may be limited by
                           federal or state securities laws or public policy
                           relating thereto.

                  5.6.5    The execution, delivery and performance by the
                           Corporation of this Agreement, the CEC Note, the
                           Warrants and the Related Agreements and the
                           execution, delivery and performance by the
                           Subsidiaries of this Agreement and the consummation
                           of the transactions contemplated hereby and thereby,
                           including the issuance, sale and delivery of the CEC
                           Note and the Warrants will not: (a) to the knowledge
                           of such counsel, conflict with or result in a breach
                           of any of the terms and provisions of, or constitute
                           a default (or an event which with notice or lapse of
                           time, or both, would constitute a default) or require
                           consent under, or result in the creation or
                           imposition of any lien, charge or encumbrance upon
                           any property or assets of the Corporation or any of
                           the Subsidiaries pursuant to the terms of any
                           agreement, instrument, franchise, license or permit
                           to which the Corporation or any of the Subsidiaries
                           is a party or by which any of their respective
                           properties or assets may be bound and that is listed
                           on the Corporation's Annual Report on Form 10-K for
                           the year ended December 31, 2000 (other than those as
                           to which the requisite waivers or consents have been
                           obtained); or (b) violate or conflict with any
                           provision of the certificate of incorporation or
                           other formation documents, as applicable, or the
                           by-laws or equivalent documents or other
                           organizational documents of the Corporation or any of
                           the Subsidiaries or, to the knowledge of such
                           counsel, any judgment, decree, order, statute, rule
                           or regulation of any court or any public,
                           governmental or regulatory agency or body having
                           jurisdiction over the Corporation, any of the
                           Subsidiaries or any of their respective properties or
                           assets. No consent, approval, authorization, order,
                           registration, filing, qualification, license or
                           permit of or with any court or any public,
                           governmental or regulatory agency or body having
                           jurisdiction over the Corporation or any of the
                           Subsidiaries or any of their respective properties or
                           assets is required for the execution, delivery and
                           performance of this Agreement, the CEC Note, the
                           Warrants or the Related Agreements, and the
                           consummation of the transactions contemplated hereby
                           and thereby, except for (i) such consents, approvals,
                           authorizations, orders, registrations, filings,
                           qualifications, licenses and permits as may be
                           required under the state securities or Blue Sky laws
                           in connection with the Rights Offering and the
                           purchase of the CEC Note by the Lender and the
                           performance of the Corporation's obligations under
                           the Registration Agreement and (ii) such other
                           consents, approvals, authorizations, orders,
                           registrations, filings, qualifications, licenses and
                           permits as have been obtained and delivered to the
                           Lender.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -17-
<PAGE>   23

                  5.6.6    The Corporation is not an "investment company" or a
                           company "controlled" by an "investment company"
                           within the meaning of the Investment Company Act of
                           1940, as amended.

                  5.6.7    Assuming (a) the accuracy of the representations and
                           warranties of the Corporation and the Subsidiaries
                           contained in paragraphs 3.26 and 3.29 and (b) the
                           accuracy of the Lender's representations and
                           warranties contained in paragraph 4, the issuance and
                           sale of the CEC Note and the Warrants to the Lender
                           in the manner contemplated by this Agreement should
                           be held to be exempt from the registration
                           requirements of the Securities Act.

                  5.6.8    The Subsidiaries have full corporate power and
                           authority to execute and deliver this Agreement and
                           the Related Agreements to which any of the
                           Subsidiaries is a party. This Agreement and the
                           Related Agreements to which any of the Subsidiaries
                           is a party have been duly authorized, executed,
                           issued and delivered by the Subsidiaries and
                           constitute valid and legally binding obligations of
                           the Subsidiaries, enforceable against the
                           Subsidiaries in accordance with their respective
                           terms, except insofar as such enforcement may be
                           subject to (a) applicable bankruptcy, insolvency,
                           fraudulent conveyance, reorganization, moratorium and
                           similar laws now or hereafter in effect relating to
                           creditors' rights generally and (b) general
                           principles of equity (whether enforcement is sought
                           in a proceeding at law or in equity).

                  5.6.9    The CEC Note, when issued, will not be of the same
                           class (within the meaning of Rule 144A under the
                           Securities Act) as any other securities of the
                           Corporation that are listed on a national securities
                           exchange registered under Section 6 of the Exchange
                           Act, or quoted in a U.S. automated interdealer
                           quotation system of a registered national securities
                           association.

                  5.6.10   Neither the Corporation nor any of the Subsidiaries
                           is in violation of their respective charter or
                           by-laws.

                  5.6.11   To such counsel's knowledge, except pursuant to the
                           Registration Agreement and in connection with the
                           Rights Offering, there are no contracts, agreements
                           or understandings between the Corporation or any of
                           the Subsidiaries and any person granting such person
                           the right to require the Corporation of any
                           Subsidiary to file a registration statement under the
                           Securities Act with respect to any securities of the
                           Corporation or to require the Corporation or any
                           Subsidiary to include such securities with the
                           Warrant Shares to be registered pursuant to the
                           Registration Agreement.

                  5.6.12   To such counsel's knowledge, neither the Corporation
                           nor any of the Subsidiaries is in default in the
                           performance of any obligation, agreement, covenant or
                           condition contained in any indenture, loan agreement,
                           mortgage, lease or other agreement or instrument that
                           is material to the Corporation or

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -18-
<PAGE>   24

                           the Subsidiaries and which was included or
                           incorporated by reference in the Corporation's Annual
                           Report on Form 10-K for the year ended December 31,
                           2000, taken as a whole, to which the Corporation or
                           any of the Subsidiaries is a party or by which the
                           Corporation or any of the Subsidiaries or their
                           respective property or assets is bound.

                  5.6.13   The Pledge Agreement and the collateral documents
                           executed in connection with the Pledge Agreement
                           create and properly perfect in favor of the Lender
                           for the benefit of the Lender, the trustee under the
                           New Indenture and the holders of the Series A Notes
                           and the Series B Notes a first priority lien and
                           security interest in and to all of the capital stock
                           and equity of each of the Subsidiaries and all
                           dividends, distributions, rights and claims with
                           respect thereto, all accounts receivable, promissory
                           notes and other instruments owing by any Subsidiary
                           to the Corporation or any other Subsidiary and all
                           proceeds and products therefrom and such liens and
                           security interests have been properly and adequately
                           perfected in all jurisdictions where such perfection
                           is reasonably necessary in accordance with the
                           applicable laws of each such jurisdiction. The
                           exercise of remedies under the Pledge Agreement after
                           an event of Default including, without limitation, a
                           change in control of the Subsidiaries, will not cause
                           or create a breach or default under any of the
                           Concession Agreements or give rise to any termination
                           right by Ecopetrol thereunder or the right by
                           Ecopetrol to exercise any other remedies under any of
                           the Concession Agreements.

                  5.6.14   The submission by the Corporation and the
                           Subsidiaries to the jurisdiction of the state and
                           federal courts sitting in the State of Oklahoma and
                           the other provisions of paragraph 13 of this
                           Agreement are valid, binding and enforceable in
                           accordance with the terms thereof.

                  5.6.15   Except as disclosed in the Corporation's Annual
                           Report on Form 10-K for the year ended December 31,
                           2000, such counsel does not know of any legal or
                           governmental proceedings pending or threatened to
                           which the Corporation or any of the Subsidiaries is
                           or could be a party or to which any of their
                           respective property is or could be subject, which
                           might result, singly or in the aggregate, in a
                           Material Adverse Effect.

                  5.6.16   Neither the Corporation nor any of the Subsidiaries
                           has violated any Environmental Law or any provisions
                           of ERISA or the rules and regulations promulgated
                           thereunder or the environmental or employment laws of
                           any foreign jurisdiction, except for such violations
                           which, singly or in the aggregate, would not have a
                           Material Adverse Effect.

                  5.6.17   Each of the Corporation and the Subsidiaries has such
                           permits, licenses, consents, exemptions, franchises,
                           authorizations and other approvals (each an
                           "Authorization") of, and has made all filings with
                           and notices to, all

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -19-
<PAGE>   25

                           governmental or regulatory authorities and
                           self-regulatory organizations and all courts and
                           other tribunals including, without limitation, under
                           any applicable Environmental Laws, as are necessary
                           to own, lease, license and operate their respective
                           properties and to conduct their respective
                           businesses, except where the failure to have any such
                           Authorization or to make any such filing or notice
                           would not, singly or in the aggregate, have a
                           Material Adverse Effect. Each such Authorization is
                           valid and in full force and effect and each of the
                           Corporation and the Subsidiaries is in compliance
                           with all the terms and conditions thereof and with
                           the rules and regulations of the authorities and
                           governing bodies having jurisdiction with respect
                           thereto; and no event has occurred (including the
                           receipt of any notice from any authority or governing
                           body) which allows or, after notice or lapse of time
                           or both, would allow, revocation, suspension or
                           termination of any such Authorization or results or,
                           after notice or lapse of time or both, would result
                           in any other impairment of the rights of the holder
                           of any such Authorization; and such Authorizations
                           contain no restrictions that are burdensome to the
                           Corporation or any of the Subsidiaries.

         5.7      Comfort Letter. The Lender shall have received, at the time
                  this Agreement is executed and at the Closing, letters dated
                  the date hereof and the Closing Date, in form and substance
                  reasonably satisfactory to the Lender from Arthur Andersen
                  LLP, independent public accountants, containing the
                  information and statements of the type ordinarily included in
                  accountants' "comfort letters" to the Lender with respect to
                  the financial statements of the Corporation.

         5.8      Legal Investment. As of the Closing, the purchase of the CEC
                  Note and Warrants by the Lender hereunder will be legally
                  permitted by all laws and regulations to which the Lender and
                  the Corporation are subject.

         5.9      Qualifications. As of the Closing, all authorizations,
                  approval, consents, permits and waivers which are necessary or
                  appropriate for purposes of this Agreement, the CEC Note, the
                  Warrants and the Related Agreements, as determined in the sole
                  discretion of counsel to the Lender, will have been obtained.

         5.10     Due Diligence. The Lender and its advisers, including legal
                  counsel, will have completed a due diligence review of the
                  Corporation, each Subsidiary and their businesses including,
                  without limitation, the Concession Agreements, with results
                  satisfactory to the Lender in the Lender's sole discretion.
                  There will not have occurred a material adverse change in the
                  Corporation, any Subsidiary or in the business, assets or
                  prospects of the foregoing since December 31, 2000.

         5.11     Expenses. At the Closing, the Corporation will have paid or
                  reimbursed the Lender for the Lender's reasonable expenses and
                  out-of-pocket costs incurred in connection with the
                  negotiation of this Agreement and the Related Agreements,
                  documentation of the transactions contemplated hereunder and
                  thereunder and closing costs.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -20-
<PAGE>   26

         5.12     Purchase of Series B Notes. All of the Series B Notes will
                  have been purchased and paid for in immediately available
                  funds in the principal amount of not less than Twenty-Two
                  Million Five Hundred Thousand Dollars ($22,500,000.00) on
                  terms substantially similar to the terms of the CEC Note.

         5.13     Proceedings and Documents. As of the Closing, all corporate
                  and other proceedings in connection with the transactions
                  contemplated hereby and by the Related Agreements, and all
                  documents and instruments incident to such transactions, will
                  be in form and substance reasonably satisfactory to the
                  Lender.

         5.14     Collateral Perfection and Put Option. The Lender and the
                  Lender's counsel will be satisfied: (a) as to the validity and
                  enforceability of the liens, security interests and other
                  encumbrances covering all of the assets of the Corporation
                  including, without limitation, all of the capital stock of
                  each of the Subsidiaries, all funds to be held in escrow
                  pursuant to the terms of this Agreement, all accounts, general
                  intangibles and other tangible and intangible property and
                  assets of the Corporation; and (b) as to the form, content and
                  enforceability of the Lender's right within fifteen (15) days
                  after the completion of the Rights Offering to put to Robert
                  A. Hefner III ("Hefner") up to an amount of the principal
                  balance of the CEC Note and a pro-rata share of the Warrants
                  sufficient to cause Hefner's aggregate investment in the CEC
                  Notes and the Series A Notes to be at least Ten Million
                  Dollars ($10,000,000.00) in substantially the form at Exhibit
                  "G" attached as a part hereof.

         5.15     Amendments of Articles. The articles of incorporation and
                  other formation and governance documents for each of the
                  Subsidiaries will have been amended in form and substance
                  reasonably satisfactory to the Lender and its counsel.

6. Corporation's Conditions. The Corporation's obligation to issue and sell the
CEC Note and the Warrants is subject to the satisfaction, on or prior to the
Closing, as applicable, of the following conditions:

         6.1      Representations and Warranties True. The representations and
                  warranties made by the Lender in paragraph 4 of this Agreement
                  will be true and correct in all material respects when made
                  and will be true and correct in all material respects as of
                  the Closing, with the same force and effect as if made on and
                  as of said date.

         6.2      Performance of Obligations. The Lender will have performed and
                  complied with all agreements and conditions herein required to
                  be performed or complied with by the Lender on or before the
                  Closing.

         6.3      Payment. The Lender will have paid the purchase price for the
                  CEC Note and the Warrants and all of the purchasers of the
                  Series B Notes will have paid the full purchase price for the
                  Series B Notes in immediately available funds.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -21-
<PAGE>   27

         6.4      Consents, Permits and Waivers. The Corporation will have
                  obtained any and all consents, permits and waivers necessary
                  or appropriate for consummation of the transactions
                  contemplated by this Agreement and the Related Agreements.

         6.5      Fairness Opinion. The Corporation will have received an
                  opinion of CIBC World Markets Corp. that the transactions
                  contemplated by this Agreement, the sale of the Series B Notes
                  and the Rights Offering are fair from a financial point of
                  view to the Corporation.

         6.6      Certain Collateral Agreements. The Deed of Mortgage Over
                  Shares (or Charge Over Shares to the extent agreed to by the
                  parties), the Registration Agreement, the Pledge Agreement and
                  the Collateral Sharing Agreement will be in form and content
                  reasonably satisfactory to the Corporation and its counsel.

7. Affirmative Covenants. The Corporation and the Subsidiaries hereby severally
covenant and agree with the Lender to perform or cause to be performed each of
the following obligations set forth in this paragraph 7 during the period (the
"Covenant Period") commencing on the Closing and continuing as long as the CEC
Note is outstanding:

         7.1      Financial Statements and Information. The Corporation will
                  deliver to the Lender the following:

                  7.1.1    SEC Filings. As promptly as practicable after the
                           filing thereof with the SEC, the Corporation will
                           deliver copies of all annual, quarterly and interim
                           reports and all other filings made by the Corporation
                           or any of the Subsidiaries with the SEC together with
                           all exhibits and attachments thereto.

                  7.1.2    Compliance Certificate. Within ten (10) days after
                           the end of each fiscal quarter commencing with the
                           quarter ending September 30, 2001, a certificate
                           executed by the Chief Executive Officer and the Chief
                           Financial Officer of the Corporation stating that:
                           (a) the Corporation and the Subsidiaries are in
                           compliance in all respects with this Agreement, the
                           Related Agreements, the Memorandum of Association or
                           Articles of Association or other formation or
                           governing documents for the Corporation and the
                           Subsidiaries; (b) except as fully disclosed in such
                           certificate, there has not occurred a Default (as
                           hereinafter defined) by the Corporation or any
                           Subsidiary under this Agreement or the Related
                           Agreements; (c) the Corporation and the Subsidiaries
                           are in compliance with all material agreements
                           including, without limitation, the Concession
                           Agreements and any instruments evidencing any
                           indebtedness of the Corporation or any Subsidiary;
                           and (d) there has not occurred a material adverse
                           change in the Corporation, any Subsidiary or their
                           businesses.

                  7.1.3    Budget. Not less than sixty (60) days prior to the
                           commencement of each fiscal year an annual business
                           plan (the "Budget"), updates thereto not less

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -22-
<PAGE>   28

                           frequently than quarterly on the last day of each
                           fiscal quarter and any material revisions thereto
                           within ten (10) days after such revisions become
                           effective. The Budget will include a written
                           narrative together with financial projections,
                           balance sheets, statements of operations and changes
                           in financial position for the Corporation and the
                           Subsidiaries, all prepared on a detailed monthly
                           basis in form reasonably acceptable to Lender.

                  7.1.4    Auditors Reports. Promptly upon receipt thereof,
                           copies of all other reports, if any, submitted to the
                           Corporation by independent public accountants in
                           connection with any annual or interim audit or review
                           of the books of the Corporation and its Subsidiaries
                           including, without implied limitation, any management
                           letters, internal control evaluations and alerts.

                  7.1.5    Third Party Information. Within ten (10) days after
                           issuance, a copy of each financial statement, report,
                           notice or communication (the "TP Information") that
                           the Corporation or any Subsidiary delivers to or
                           receives from: (a) the Board, any committee of the
                           Board, any lender or trustee; (b) any securities
                           exchange, the National Association of Securities
                           Dealers, any credit rating agency or any other
                           industry association; or (c) any governmental
                           official, authority or agency, but only if the TP
                           Information relates to a matter or matters that might
                           reasonably be expected to have a Material Adverse
                           Effect.

                  7.1.6    Litigation. Promptly upon the Corporation's learning
                           thereof, notice of any litigation, suit or
                           administrative proceeding that could reasonably be
                           expected to have a Material Adverse Effect on the
                           Corporation or any Subsidiary or their business,
                           affairs, assets, prospects, operations, employee
                           relations or condition (financial or otherwise)
                           whether or not the claim is covered by insurance.

                  7.1.7    Material Adverse Developments. Promptly upon the
                           occurrence thereof (but in no event later than five
                           (5) days after discovery thereof) notice of: (a) any
                           default or breach of, or default under this
                           Agreement, the Related Agreements or any other
                           material agreement or arrangement to which the
                           Corporation or any of its Subsidiaries is a party or
                           by which any of them is bound including, without
                           limitation, the Concession Agreements, the Indenture
                           covering the Borrower's $110,000,000 12.5% Senior
                           Notes due 2005 (the "Existing Indenture") and the
                           Indenture covering the Series A Notes due 2004 (the
                           "New Indenture"); (b) any event which has or could
                           reasonably be expected to have, a Material Adverse
                           Effect on the business, affairs, assets, prospects,
                           operations, employee relations or condition,
                           (financial or otherwise) of the Corporation or any
                           Subsidiary including, but not limited to, the
                           institution or threat of any material litigation or
                           investigation with respect to the Corporation or any
                           Subsidiary or any material disputes with co-interest
                           owners or customers; (c) any event which has or could
                           reasonably be expected to result in any material
                           adverse change in any law, regulation, rule

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -23-
<PAGE>   29

                           or policy of the Colombian government with respect to
                           oil and/or gas operations in Colombia or the currency
                           or tax regime with respect thereto; and (d) any event
                           which has or could reasonably be expected to create
                           any lien, claim or encumbrance on any of the assets
                           of the Corporation or any of the Subsidiaries or
                           creates any obligation on the part of the Corporation
                           or any of the Subsidiaries to grant any lien or
                           encumbrance or to guarantee any indebtedness other
                           than indebtedness under clause 8.13(e) of this
                           Agreement or liens granted pursuant to this
                           Agreement.

                  7.1.8    Other Information. With reasonable promptness, such
                           other data and information as from time to time may
                           be reasonably requested by the Lender the disclosure
                           of which will not violate any law, rule, regulation
                           or agreement of the Corporation.

         7.2      Accounting. The Corporation will maintain and will cause each
                  Subsidiary to maintain a system of accounting, book records
                  and system of internal control to be established and
                  administered in accordance with GAAP consistently applied. The
                  Corporation and the Subsidiaries will cause complete entries
                  to be made in such books and records and establish appropriate
                  procedures and policies so that the books and records will
                  accurately reflect all transactions entered into by the
                  Corporation and the Subsidiaries, proper reserves and
                  accurately reflect the financial position of the Corporations
                  and the Subsidiaries.

         7.3      Insurance. The Corporation agrees to maintain or cause to be
                  maintained with financially sound and reputable insurers rated
                  A or above by A.M. Best, insurance with respect to its assets
                  and business and the assets and business of its Subsidiaries
                  against loss or damage of the kinds customarily insured
                  against by similarly situated entities of established
                  reputation engaged in the same or similar businesses, in
                  adequate amounts. At the request of the Lender, the
                  Corporation will furnish the Lender with evidence of the same.

         7.4      Payment of Taxes. The Corporation and each of the Subsidiaries
                  agrees to promptly pay or cause to be paid all taxes,
                  assessments and other governmental charges levied or assessed
                  on the Corporation or such Subsidiary, franchises, businesses,
                  income or profits, other than those taxes being contested in
                  good faith, by appropriate actions promptly initiated and
                  diligently conducted if: (a) the appropriate provision is made
                  therefor; and (b) such contest does not and will not have a
                  Material Adverse Effect on the financial condition or
                  operations of the Corporation or any Subsidiary.

         7.5      Compliance With Laws. The Corporation agrees to use reasonable
                  efforts to comply and cause each Subsidiary to comply with all
                  laws, rules, regulations, judgments, orders and decrees of any
                  governmental or regulatory authority applicable to the
                  Corporation, any Subsidiary or their respective assets and
                  businesses, the violation of which could have a Material
                  Adverse Effect.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -24-
<PAGE>   30

         7.6      Corporate Existence; Property and Operations. The Corporation
                  and each Subsidiary agrees to preserve, protect and maintain:
                  (a) its corporate existence;(b) the Concession Agreements; and
                  (c) all rights, franchises, accreditations, privileges, and
                  properties the failure of which to preserve, protect, and
                  maintain would have a Material Adverse Effect. The Corporation
                  and each Subsidiary will comply with all their respective
                  material agreements, obligations and contracts, including, but
                  not limited to, all leases, any agreements relating to
                  indebtedness, the Existing Indenture, the New Indenture, this
                  Agreement and the Related Agreements.

         7.7      Inspection and Other Rights. Subject to the confidentiality
                  provisions of paragraph 16.11, the Lender will have the right
                  to examine the books, records, other documents and data of the
                  Corporation and the Subsidiaries during normal business hours
                  after reasonable notice. Without limitation of the foregoing,
                  the Lender will have the right to discuss and consult during
                  normal business hours with the officers, directors and
                  accountants of the Corporation and the Subsidiaries regarding
                  the operations and financial affairs of the Corporation and
                  any Subsidiary.

         7.8      Use of Proceeds. The Corporation will use the proceeds from
                  the sale of the CEC Note hereunder and the sale of the Series
                  B Notes for: (a) payment of all fees and expenses incurred by
                  the Lender in connection with the transactions contemplated by
                  this Agreement and the Related Agreements; (b) funding the
                  Corporation's and the Subsidiaries' share of the costs and
                  expenses of building the Guaduas La Dorada pipeline and
                  production facilities (the "Pipeline"); (c) funding the
                  Corporation's and the Subsidiaries' costs and expenses in
                  preparing, drilling, testing and completing well to test the
                  Corporation's sub-thrust prospect under the "Deep Dindal
                  Contract" (the "Sub-Thrust Test Well"); (d) funding the payoff
                  of the Corporation's indebtedness to Stillwater National Bank
                  in the principal amount of up to $10,000,000.00; and (e)
                  working capital and other general corporate purposes. The
                  amounts necessary to fund the Corporation's obligations under
                  subpart (c) hereof, estimated to be Fifteen Million Dollars
                  ($15,000,000.00) will be: (i) funded prior to the other
                  amounts to be funded pursuant to this paragraph; (ii) placed
                  in escrow with an escrow agent reasonably satisfactory to the
                  Lender (the "Escrow Agent") and on terms and conditions
                  satisfactory to the Lender and the Corporation; and (iii)
                  pledged to the Lender to secure the CEC Note, the Series A
                  Notes and the Series B Notes. If the Sub-Thrust Test Well is
                  not spudded prior to February 28, 2002, all funds remaining in
                  escrow will be used to make a prepayment on the CEC Note and
                  the Series A Notes or the Series B Notes on a pro rata basis.
                  Funds remaining in escrow after the drilling and testing of
                  the Sub-Thrust Test Well will be distributed to the
                  Corporation to be used as working capital.

         7.9      Escrow of Interest Payment. So long as the CEC Note is
                  outstanding, the Corporation will, commencing on the Closing
                  Date and continuing on or before the tenth (10th) day of each
                  succeeding month thereafter through July, 2003, escrow with
                  the Escrow Agent an amount equal to one-sixth (1/6th) of the
                  next semi-annual interest payment due on the senior notes
                  issued under the Existing Indenture. The

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                  arrangement with the Escrow Agent will provide for: (a) a
                  pledge of the escrow account to the Lender as collateral agent
                  for itself and the trustee under the New Indenture; (b) notice
                  to the Lender in the event any required deposit is not made
                  when due; and (c) so long as no event of Default has occurred
                  or is continuing, the release escrow funds on each November 15
                  and May 15 to the trustee under the Existing Indenture for
                  payments of interest due thereunder.

         7.10     Charter Amendments. On written request of the Lender, the
                  Corporation and each of the Subsidiaries agree to amend their
                  respective corporate governance documents in such manner as
                  the Lender reasonably determines in order to effectuate the
                  covenants set forth in this Agreement and in the Related
                  Agreements.

         7.11     Exemption Maintenance. The Corporation and each of the
                  Subsidiaries will continuously maintain their respective
                  status as of the Closing Date under the Colombian currency and
                  tax regime applicable to oil and gas companies operating in
                  Colombia.

         7.12     Pipeline Operation. The Corporation and the Subsidiaries will
                  continuously operate and maintain the Pipeline in good repair
                  and in accordance with all applicable laws, regulations, rules
                  and policies of the Colombian government, the Concession
                  Agreements and any other contracts relating thereto.

         7.13     Dormant Subsidiaries. All of the Subsidiaries except for Seven
                  Seas Petroleum Colombia Inc., Petrolinson SA, GHK Company
                  Colombia and Seven Seas Petroleum USA Inc., will be
                  continuously maintained in an inactive status and the
                  Corporation will not conduct, and will not permit to be
                  conducted, any business or operations in any such
                  Subsidiaries.

         7.14     Production Proceeds. The Corporation and each of the
                  Subsidiaries will cause all amounts due from the sale,
                  production or processing of oil, gas or other petroleum
                  products (including any amounts under the Concession
                  Agreements) to be deposited: (a) directly into one or more
                  deposit accounts of the Corporation that are at all times
                  subject to a first priority perfected lien under the Pledge
                  Agreement or similar arrangement, all in form and substance
                  satisfactory to the Lender; or (b) to the extent that such
                  amounts are required to remain in the Subsidiaries to fund
                  reasonably anticipated working capital needs of the
                  Subsidiaries or remain under Columbia's jurisdiction, directly
                  into a deposit account that permits withdrawals by the
                  Subsidiaries prior to a Default but prohibits withdrawals post
                  Default without the prior written consent of the Lender (all
                  in form and substance satisfactory to the Lender). It is
                  anticipated that the amounts deposited under the foregoing
                  clause (a) will be accounted for by the Corporation as
                  dividends from the Subsidiaries to the Corporation and will
                  include all proceeds in United States Dollars from the sale,
                  production or processing of oil, gas or other petroleum
                  products. In any event the failure of the Corporation or
                  Subsidiaries to make such deposits of all amounts

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                  attributable to the sale, production or processing of oil, gas
                  or other petroleum products as provided in this paragraph for
                  any reason will constitute a Default.

8. Corporation's Negative Covenants. The Corporation and each of the
Subsidiaries hereby severally covenants and agrees with the Lender that during
the Covenant Period, unless the Lender otherwise consents in writing, neither
the Corporation nor any Subsidiary will directly or indirectly:

         8.1      Dividends. Declare or pay, or permit any Subsidiary which is
                  not a wholly owned Subsidiary to declare or pay to anyone
                  other than the Corporation or a wholly owned Subsidiary of the
                  Corporation, any dividends or distributions on any of the
                  equity securities of the Corporation or any Subsidiary.

         8.2      Redemptions. Redeem, purchase or otherwise acquire, or permit
                  any Subsidiary to directly or indirectly redeem, purchase or
                  otherwise acquire, any of the Corporation's or any
                  Subsidiary's equity securities except as contemplated by this
                  Agreement, the Related Agreements and the Rights Offering.

         8.3      Mergers. Merge or consolidate with any person or permit any
                  Subsidiary to merge or consolidate with any person (other
                  than, in the case of a wholly-owned Subsidiary, with or into
                  the Corporation or any other wholly-owned Subsidiary) or
                  undertake any share exchange of any of the capital stock of
                  the Corporation or any Subsidiary.

         8.4      Sale of Assets. Except for the sale of oil, gas or other
                  hydrocarbons in the ordinary course of business and the sale
                  of obsolete equipment, sell, lease or otherwise dispose of, or
                  permit any Subsidiary to sell, lease or otherwise dispose of,
                  any assets in one or a series of related transactions that
                  represent five percent (5%) or more of the greater of the
                  Corporation's consolidated assets or income. In addition,
                  neither the Corporation or any Subsidiary will sell, grant or
                  enter into any production payment or similar arrangement
                  whether volumetric or dollar denominated.

         8.5      Liquidations. Liquidate, dissolve or effect a recapitalization
                  or reorganization in any form of transaction, except by merger
                  or consolidation not prohibited under paragraph 8.3 of this
                  Agreement.

         8.6      Charter Amendments. Except as provided in paragraph 7.10, make
                  any amendment to the Corporation's or any Subsidiary's
                  corporate governance documents including, but not limited to,
                  an amendment increasing or decreasing the number of directors
                  constituting the Board or changing its corporate domicile.

         8.7      Affiliate Transactions. Directly or indirectly enter into or
                  permit any Subsidiary to enter into or permit to exist any
                  transaction or series of related transactions (including the
                  purchase, sale, lease, exchange, transfer or disposition of
                  property or assets, the rendering of any service, or any
                  contract, agreement, understanding, loan, advance or
                  guarantee) with, or for the benefit of, any Affiliate of the
                  Corporation or any Subsidiary, except: (a) normal employment
                  arrangements and benefit programs on

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                  reasonable terms; (b) affiliate transactions entered into in
                  accordance with Section 4.16 of the Existing Indenture; or (c)
                  as otherwise permitted by this Agreement and the Related
                  Agreements.

         8.8      Investments. Make or permit to exist, or permit any Subsidiary
                  to make or permit to exist, any Investment other than
                  Investments permitted under subparts (ii), (viii), (ix) and
                  (xi) of the definition of Permitted Investments in the
                  Existing Indenture and Investments in the oil and gas business
                  in the Magdelana Valley area of Colombia.

         8.9      Capital Expenditures. Make, or permit any Subsidiary to make,
                  any capital expenditures exceeding, in the aggregate, on a
                  consolidated basis, the amounts set forth in the Budget as
                  revised from time to time and approved by the Board.

         8.10     Loans. Make, or permit any Subsidiary to make, any loans or
                  advances to, or guarantees for the benefit of, any person or
                  entity, other than travel advances and similar loans to
                  employees not to exceed $500,000.00 at any one time in the
                  aggregate and except for loans and advances between and among
                  the Corporation and the Subsidiaries evidenced by promissory
                  notes pledged to the Lender pursuant to the Pledge Agreement.

         8.11     Other Business. Enter into (directly or indirectly through a
                  new subsidiary), or permit any Subsidiary to enter into, the
                  ownership, management or operation of any business other than
                  the businesses conducted by the Corporation and the
                  Subsidiaries as of the date of Closing or contemplated by the
                  written business plan provided to the Lender prior to Closing.

         8.12     Subsidiaries. Establish or acquire any new subsidiaries
                  including, without limitation, any interest in any
                  corporation, limited liability company, partnership, trust,
                  association or other entity. The Subsidiaries will not issue
                  any capital stock, equity interests or any instrument
                  convertible, exercisable or exchangeable into the foregoing
                  except as shown on Schedule "3.7" of this Agreement.

         8.13     Indebtedness. Create, incur, assume or suffer to exist, or
                  permit the Corporation and its Subsidiaries, taken as a whole,
                  to create, incur, assume or suffer to exist, indebtedness in
                  an aggregate amount exceeding One Million Dollars
                  ($1,000,000.00) at any time outstanding, other than: (a)
                  indebtedness to the holders of the Corporation's 121/2% Senior
                  Notes due 2005; (b) the CEC Note; (c) the Series A Notes; (d)
                  the Series B Notes; and (e) unsecured trade debt in the
                  ordinary course of business not more than sixty (60) days past
                  due or indebtedness in respect of taxes, assessments, levies
                  or other governmental charges which are not past due.

         8.14     Related Agreements. Amend, modify or waive any provision of
                  any of the Related Agreements or fail to perform the
                  provisions of any of the Related Agreements in any material
                  respect.

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         8.15     Restrictive Agreements. Enter into, become a party to or
                  become subject to, or permit any of its Subsidiaries to enter
                  into, become a party to or become subject to, any agreement or
                  instrument, which by its terms would (under any circumstance):
                  (a) restrict the Corporation's or any Subsidiary's right to
                  perform any of its obligations pursuant to the terms of this
                  Agreement, the Related Agreements, the Existing Indenture or
                  the New Indenture; (b) grant, provide or issue registration
                  rights for any security which are equal to or more favorable
                  than those granted under the Registration Agreement (except
                  any such rights granted in connection with the Rights
                  Offering); or (c) give rise to any default, termination right
                  or the loss of any benefit upon the exercise of any remedy by
                  the Lender (except for the Existing Indenture and the New
                  Indenture).

         8.16     Liens. Grant, create, assume or permit to continue in
                  existence, or permit any Subsidiary to grant, create, assume
                  or permit to continue in existence, any lien, security
                  interest or encumbrance on any asset of the Corporation or any
                  Subsidiary other than liens for taxes not yet due and payable,
                  involuntary liens for obligations not yet due or contested in
                  good faith and similar encumbrances.

         8.17     Transactions. Enter into, assume or perform, or permit any
                  Subsidiary to enter into, assume or perform, any material
                  agreement, lease, sale, exchange, contract or transaction
                  which: (a) violates this Agreement, the Related Agreements,
                  the Existing Indenture or the New Indenture; or (b) is not in
                  the Corporation's ordinary course of business based on
                  historical practices.

         8.18     Participating Preferred Stock. Neither the Corporation nor any
                  of the Subsidiaries will issue any capital stock (other than
                  Common Stock of the Corporation) or shares of any class
                  preferred as to dividends or as to the distribution of assets
                  on voluntary or involuntary liquidation, dissolution or
                  winding up.

         8.19     Debt Prepayment. Neither the Corporation nor any of the
                  Subsidiaries will prepay, redeem, defease, exchange or
                  purchase or materially alter the payment terms of any of: (a)
                  the securities issued under the Existing Indenture; (b) the
                  Series A Notes; or (c) the Series B Notes (except pursuant to
                  the Rights Offering).

         8.20     No Excess Working Capital to Subsidiaries. The Corporation
                  will not fund or provide its Subsidiaries with funds in excess
                  of their reasonably anticipated working capital needs.

9. Related Agreements. The Corporation hereby grants to the Lender all of the
rights, benefits and privileges set forth in each of the Related Agreements.

10. Payment or Exchange of Series B Notes. The Corporation and the Lender
acknowledge and agree that to the extent the Series A Notes and RO Warrants are
purchased under the Rights Offering the proceeds raised by the Corporation
therefrom will be used to pay the Series B Notes on a pro rata basis unless
another allocation of such proceeds among the holders of the Series B Notes is

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                                      -29-
<PAGE>   35

otherwise agreed to in writing by the all of the holders of the Series B Notes.
After consummation of the issuance of the Series A Notes and RO Warrants under
the Rights Offering, any remaining unissued Series A Notes and RO Warrants will
be issued by the Corporation to the Series B Notes purchasers in exchange for
the Series B Notes plus an amount equal to accrued unpaid interest on the Series
A Notes to be exchanged. Such exchange will take place within twenty (20) days
after closing of the Rights Offering.

11. Default. The Corporation will be in default under this Agreement if any of
the following events occur (a "Default"):

         11.1     Nonpayment of CEC Note. A default in payment when due of any
                  interest on or principal of the CEC Note or a default in
                  payment when due of any other amount payable to the Lender
                  under the terms of this Agreement or the Related Agreements;
                  or

         11.2     Breach of Agreement. Default in the performance or observance
                  of any covenant contained in this Agreement, the CEC Note, the
                  Related Agreements or any other agreement between the
                  Corporation and the Lender entered into in connection with
                  this Agreement, the CEC Note or the Related Agreements
                  including, without implied limitation, the failure of the
                  Corporation to pay or satisfy any redemption, payment,
                  purchase or other obligation with respect to the CEC Note, the
                  Warrants or the Warrant Shares even if such failure results
                  from any restriction or prohibition on the ability of the
                  Corporation to satisfy such obligations; or

         11.3     Representations and Warranties. Any representation, statement,
                  certificate, schedule or report made or furnished to the
                  Lender by or on behalf of the Corporation or any Subsidiary
                  proves to be false or erroneous in any material respect or any
                  warranty ceases to be complied with in any material respect;
                  or

         11.4     Material Agreements. The Corporation or any Subsidiary
                  defaults under or fails to duly observe, perform or comply
                  with any term or condition of the Existing Indenture, the New
                  Indenture, the Concession Agreements or any other contract,
                  instrument or agreement with any person if such contract,
                  instrument or agreement is material to the Corporation or any
                  Subsidiary or such default or failure can reasonably be
                  expected to materially and adversely effect the Corporation,
                  any Subsidiary or their respective businesses or assets; or

         11.5     Indebtedness. The default by the Corporation or any Subsidiary
                  in the payment of any interest, principal or other amount on
                  any indebtedness for borrowed money owing to any person which
                  is not cured in the time permitted by the documents governing
                  such indebtedness or the maturity or acceleration of any such
                  indebtedness; or

         11.6     Insolvency. The Corporation or any Subsidiary admits the
                  inability to pay its debts as such debts mature; or

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                                      -30-
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         11.7     Bankruptcy. The institution of bankruptcy, reorganization,
                  readjustment of any debt, liquidation or receivership
                  proceedings by or against the Corporation or any Subsidiary
                  under the Bankruptcy Code, as amended, any part thereof, or
                  under any other laws, whether state, federal or foreign, for
                  the relief of debtors, now or hereafter existing (which in the
                  case of an involuntary filing, is not removed or dismissed in
                  sixty [60] days); or

         11.8     Receivership. The appointment of a receiver or trustee for the
                  Corporation, any Subsidiary or any substantial part of their
                  assets or businesses or the discontinuance of business by the
                  Corporation or any Subsidiary; or

         11.9     Judgment. Entry by any court of a final judgment against the
                  Corporation or any Subsidiary in an amount greater than Two
                  Hundred Fifty Thousand Dollars ($250,000.00) or an attachment
                  of any of the assets of the Corporation or any Subsidiary by
                  any means, including, without limitation, levy, distraint,
                  replevin, or self-help, which is not discharged or stayed
                  within thirty (30) days thereof; or

         11.10    Concession Contracts. The expiration, termination or material
                  breach of any of the Concession Agreements of the Corporation
                  or the Subsidiaries which would have a Material Adverse Effect
                  or the seizure, nationalization or forfeiture of any assets of
                  the Corporation or the Subsidiaries; or

         11.11    Indentures. The occurrence of an event of default under the
                  Existing Indenture or the New Indenture which is not cured or
                  waived in strict compliance with the terms thereof; or

         11.12    Change of Control. The occurrence of any of the following
                  events: (a) any person other than the Corporation or one of
                  the Subsidiaries acquires or holds any legal or beneficial
                  ownership of any Subsidiary whether now or hereafter existing;
                  (b) any Person or two or more Persons acting as a group
                  acquires beneficial ownership (within the meaning of Rule
                  13d-3 of the SEC under the Securities Exchange Act of 1934, as
                  amended, without consideration of the sixty (60) day period,
                  and including holding proxies to vote for the election of
                  directors other than proxies held by the Corporation's
                  management or their designees to be voted in favor of persons
                  nominated by the Corporation's Board) of fifty percent (50%)
                  or more of the outstanding voting securities of the
                  Corporation, measured by voting power (including both common
                  stock and any preferred stock or other equity securities
                  entitling the holders thereof to vote with the holders of
                  common stock in elections for directors of the Corporation);
                  (c) one-third or more of the directors of the Corporation
                  consists of persons not nominated by the Corporation's Board
                  (not including as Board nominees any directors which the Board
                  is obligated to nominate pursuant to shareholders agreements,
                  voting trust arrangements or similar arrangements); or (d) the
                  merger or consolidation of the Corporation with or into
                  another person or entity or the merger or consolidation of
                  another person or entity into the Corporation, or the sale of
                  all or substantially all of the assets of the

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                                      -31-
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                  Corporation or any Subsidiary to another person or entity
                  (other than a person or entity that is wholly controlled by
                  the Corporation or one or more of the Subsidiaries), and, in
                  the case of any such merger or consolidation, the securities
                  of the Corporation that are outstanding immediately prior to
                  such transaction and which represent one hundred percent
                  (100%) of the aggregate voting power of the voting stock of
                  the Corporation are changed into or exchanged for cash,
                  securities or property, unless pursuant to such transaction
                  such securities are changed into or exchanged for, in addition
                  to any other consideration, securities of the surviving
                  corporation that represent immediately after such transaction,
                  at least a majority of the aggregate voting power of the
                  voting securities of the surviving corporation.

         11.13    Opportunity to Cure. In the event the Corporation cures or
                  causes to be cured such Default within twenty (20) days after
                  receipt of written notice thereof, the parties will be
                  restored to their respective rights and obligations under this
                  Agreement as if no Default had occurred, except that no right
                  to cure or notice of Default will be given as to events of
                  Default in paragraphs 11.1, 11.5, 11.6, 11.7, 11.8, 11.9,
                  11.10, 11.11 or 11.12. The Borrower's opportunity to cure will
                  be applicable as herein set forth notwithstanding any contrary
                  provisions contained in any of the Related Agreements.

12. Remedies. On the occurrence of a Default the Lender may elect to do any of
the following:

         12.1     Exercise Remedy. The Lender may exercise any remedy at law or
                  in equity or any remedy provided by this Agreement or the
                  Related Agreements.

         12.2     Selective Enforcement. In the event the Lender elects to
                  selectively and successively enforce the Lender's rights under
                  any one or more of this Agreement or the Related Agreements,
                  such action will not be deemed a waiver or discharge of any
                  other right or remedy until such time as all of the
                  Corporation's obligations thereunder have been satisfied.

         12.3     Waiver of Default. By an instrument or instruments in writing,
                  signed by the Lender, waive any Default which occurs and any
                  of the consequences of such Default, and, in such event, the
                  Lender, the Corporation and the Subsidiaries will be restored
                  to their respective former positions, rights and obligations
                  hereunder. Any default so waived will, for all purposes of
                  this Agreement, be deemed to have been cured and not to be
                  continuing, but no such waiver will extend to any subsequent
                  or other Default or impair any consequence of such subsequent
                  or other Default.

13. Agent Appointment; Jurisdiction. The Corporation and each of the
Subsidiaries hereby appoints CT Corporation, located in Oklahoma City, Oklahoma,
or such other person as may be designated by the Corporation and approved by the
Lender, in writing, as the Corporation's and the Subsidiaries' agent (the
"Agent") for the purpose of accepting notices and service of process until the
payment in full of the CEC Note and so long as the Lender owns any of the
Warrants or the Warrant Shares. Neither the Corporation nor any of the
Subsidiaries will remove or terminate the Agent unless prior thereto: (a) the
Lender has consented to such removal or termination in writing; and (b)

SEVEN SEAS PETROLEUM, INC.
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                                      -32-
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a substitute Agent acceptable to the Lender has been appointed by the
Corporation and each of the Subsidiaries. Any notice or service of process
delivered to the Agent will be deemed to be served on the Corporation and the
Subsidiaries for purposes of this Agreement and the Related Agreements. EACH OF
THE CORPORATION AND THE SUBSIDIARIES HEREBY IRREVOCABLY SUBMITS ITSELF TO THE
JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE STATE OF OKLAHOMA
AND AGREES AND CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON THE CORPORATION
AND THE SUBSIDIARIES BY SERVICE ON THE AGENT IN ANY LEGAL PROCEEDING RELATING TO
THIS AGREEMENT OR THE RELATED AGREEMENTS BY ANY MEANS ALLOWED UNDER OKLAHOMA OR
FEDERAL LAW. ANY LEGAL PROCEEDING ARISING OUT OF OR IN ANY WAY RELATED TO THIS
AGREEMENT OR ANY OF THE RELATED AGREEMENTS WILL BE BROUGHT AND LITIGATED
EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF
OKLAHOMA, TO THE EXTENT IT HAS SUBJECT MATTER JURISDICTION, AND OTHERWISE IN THE
OKLAHOMA DISTRICT COURT SITTING IN OKLAHOMA COUNTY, OKLAHOMA. THE PARTIES HERETO
HEREBY WAIVE AND AGREE NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR
OTHERWISE, THAT ANY SUCH PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT
THE VENUE THEREOF IS IMPROPER, AND FURTHER AGREE TO A TRANSFER OF ANY SUCH
PROCEEDING TO A FEDERAL COURT SITTING IN THE OKLAHOMA CITY, OKLAHOMA TO THE
EXTENT THAT IT HAS SUBJECT MATTER JURISDICTION, AND OTHERWISE TO A STATE COURT
IN OKLAHOMA COUNTY, OKLAHOMA. IN FURTHERANCE THEREOF, THE CORPORATION, THE
SUBSIDIARIES AND THE LENDER EACH HEREBY ACKNOWLEDGE AND AGREE THAT IT WAS NOT
INCONVENIENT FOR THEM TO NEGOTIATE AND RECEIVE FUNDING OF THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT IN SUCH COUNTY AND THAT IT WILL BE NEITHER
INCONVENIENT NOR UNFAIR TO LITIGATE OR OTHERWISE RESOLVE ANY DISPUTES OR CLAIMS
IN A COURT SITTING IN SUCH COUNTY.

14. Indemnification. The Corporation agrees to indemnify, pay and hold the
Lender and its Affiliates and any subsequent holder of the CEC Note, and each
such person's officers, directors, employees and agents and each person, if any,
who controls the Lender within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act (collectively called the "Indemnified
Parties"), harmless from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs, expenses
and disbursements of any kind or nature whatsoever including, but not limited
to, the fees and disbursements of counsel for such Indemnified Parties, in
connection with any investigative, administrative or judicial proceeding,
whether or not such Indemnified Parties will be designated a party thereto,
which may be imposed on, incurred by, or asserted against such Indemnified
Party, in any manner relating to or arising out of the transactions contemplated
by this Agreement, the Related Agreements or the ownership of any of the CEC
Note, Warrants or Warrant Shares or caused by any untrue statement or alleged
untrue statement of a material fact contained in the Rights Offering (or any
amendment or supplement thereto), any preliminary offering memorandum or any
Rule 144A Information provided by the Corporation or any Subsidiary to any
holder or prospective purchaser of the Series A Notes or caused by any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading (a "Claim"),
except that the Corporation will have no obligation hereunder to an Indemnified
Party with respect to any such liabilities arising directly out of the gross
negligence or willful misconduct of such Indemnified Party or with respect to
any Claim caused by any untrue statement or omission or alleged untrue statement
or omission

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                                      -33-
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based upon information relating to such Indemnified Party furnished in writing
to the Corporation by such Indemnified Party as determined by a final,
non-appealable judgment of a court of competent jurisdiction. If any indemnity
provided for in the preceding sentence is not available solely because it is
found to be contrary to public policy or otherwise unlawful, then the
Corporation and the Indemnified Parties will contribute to the amount payable in
such proportion as is appropriate to reflect the relative faults and benefits
and any other relevant equitable considerations provided, however, that no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) will be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

         14.1     Procedure. If any Claim or alleged Claim is brought against
                  any Indemnified Party in respect of which such Indemnified
                  Party may be indemnified under this paragraph 14.1 by the
                  Corporation, such Indemnified Party will promptly notify the
                  Corporation in writing. The Corporation at its option may
                  assume the defense of any action in respect of which it has
                  acknowledged its obligation to indemnify such Indemnified
                  Party under this paragraph 14.1. If the Corporation assumes
                  the defense of any action, the Indemnified Party will not be
                  liable for any settlement thereof without its consent (but
                  such consent will not be unreasonably withheld). If the
                  Corporation assumes the defense of any such action, such
                  Indemnified Party will have the right to employ separate
                  counsel in such action and to participate in the defense
                  thereof, but the fees and expenses of such counsel will be
                  paid by such Indemnified Party unless in the reasonable
                  opinion of such Indemnified Party there may be a conflict
                  between the positions of the Corporation and of such
                  Indemnified Party in conducting the defense of such action or
                  that there may be legal defenses available to such Indemnified
                  Party different from or in addition to those which counsel to
                  the Corporation would be able to raise, in which event the
                  fees and expenses of such counsel will be paid by the
                  Corporation.

         14.2     Environmental and Governmental. Without limiting the
                  generality of the indemnity set out in this paragraph 14, the
                  Corporation will defend, protect, indemnify and hold harmless
                  the Lender and all other Indemnified Parties from and against
                  any and all actions, causes of action, suits, losses,
                  liabilities, damages, injuries, penalties, fees, costs,
                  expenses and claims of any and every kind whatsoever paid,
                  incurred or suffered by, or asserted against, the Lender or
                  any other Indemnified Parties pursuant to environmental laws
                  with respect to the past, present or future operations or
                  facilities of the Corporation, any Subsidiary or any
                  predecessors, successors, or Affiliates thereof. The
                  Corporation also agrees to pay all governmental assessments,
                  charges or taxes (except income taxes), including any interest
                  or penalties thereon, at any time payable or ruled to be
                  payable in respect of the existence, execution, delivery or
                  performance of this Agreement and the Related Agreements or
                  the issuance or existence of the CEC Note, the Warrants or the
                  Warrant Shares, by reason of an existing or hereafter enacted
                  federal, state or local statute, and to indemnify and hold the
                  Lender, and each and every holder of the CEC Note, the
                  Warrants or the Warrant Shares, harmless against liability in
                  connection with any such assessments, charges or taxes.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT

                                      -34-
<PAGE>   40

         14.3     Other Remedies. The remedies provided for in this paragraph 14
                  are not exclusive and will not limit any rights or remedies
                  which may otherwise be available to any Indemnified Party at
                  law or in equity.

15. Effectiveness of Agreement and Termination. This Agreement shall become
effective upon the execution and delivery of this Agreement by the parties
hereto. This Agreement may be terminated at any time on or prior to the Closing
Date by the Lender by written notice to the Corporation if any of the following
has occurred: (a) any outbreak or escalation of hostilities or other national or
international calamity or crisis or change which in the Lender's judgment, is
material and adverse and, in the Lender's judgment, makes it impracticable to
market the Series A Notes on the terms and in the manner contemplated in the
Rights Offering, (b) the suspension or material limitation of trading in
securities or other instruments on the New York Stock Exchange, the American
Stock Exchange, the Chicago Board of Options Exchange, the Chicago Mercantile
Exchange, the Chicago Board of Trade or the Nasdaq Market or limitation on
prices for securities or other instruments on any such exchange or the Nasdaq
National Market unless such suspension or limitation is removed prior to the
Closing Date, (c) the suspension of trading of any securities of the Corporation
on any exchange or in the over-the-counter market unless such suspension is
removed prior to the Closing Date, (d) the enactment, publication, decree or
other promulgation of any foreign, federal or state statute, regulation, rule or
order of any court or other governmental authority which in the Lender's
reasonable opinion materially and adversely affects, or will materially and
adversely affect, the business, prospects, financial condition or results of
operations of the Corporation and its Subsidiaries, taken as a whole, or (e) the
declaration of a banking moratorium by foreign, federal or state authorities.

16. Miscellaneous. The parties further agree as follows:

         16.1     Fees and Expenses. The Corporation agrees to pay on demand the
                  following amounts: (a) all of the Corporation's costs and
                  expenses of compliance with all agreements and conditions
                  contained in this Agreement and in the Related Agreements; (b)
                  attorney fees, expenses and disbursements of counsel to the
                  Lender in connection with the preparation, negotiation and
                  execution of this Agreement and the Related Agreements; (c)
                  all other out-of-pocket expenses incurred by the Lender in
                  connection with their due diligence investigation of the
                  Corporation and the performance of this Agreement and the
                  Related Agreements by the Lender; and (d) all costs and
                  expenses (including attorney's fees and costs) incurred by the
                  Lender or any holders of the CEC Note, the Warrants or the
                  Warrant Shares arising out of or in connection with the
                  administration, enforcement or preservation of any rights
                  under this Agreement or the Related Agreements including,
                  without limitation, the collection or enforcement of this
                  Agreement, the CEC Note, and the Related Agreements by
                  judicial proceedings, proceedings under Chapter 7 or 11 of the
                  Bankruptcy Code or any successor statute thereto, or
                  otherwise.

         16.2     Consent to Amendments; Waivers. The provisions of this
                  Agreement may be amended or waived at any time only by the
                  written agreement of the Corporation, the Subsidiaries and the
                  Lender. Any waiver, permit, consent or approval of any kind

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -35-
<PAGE>   41

                  or character on the part of the Lender of any provisions or
                  conditions of this Agreement must be made in writing and will
                  be effective only to the extent specifically set forth in such
                  writing. No course of dealing between the Corporation and the
                  Lender and no delay in exercising any right, remedy, or power
                  conferred hereby, by the Related Agreements, or now or
                  hereafter existing at law or under equity, by statute or
                  otherwise, will operate as a waiver of or otherwise prejudice
                  any such right, power or remedy.

         16.3     Representations and Warranties. All representations,
                  warranties and covenants contained herein or made in writing
                  by any party in connection herewith will survive the execution
                  and delivery of this Agreement and any investigation made at
                  any time, or knowledge obtained or capable of being obtained
                  at any time, by or on behalf of the Lender or any other holder
                  of the CEC Note.

         16.4     Successors and Assigns. Except as otherwise expressly provided
                  herein, all covenants and agreements contained in this
                  Agreement by or on behalf of any of the parties hereto will
                  bind and inure to the benefit of the respective successors and
                  assigns of the parties hereto, whether so expressed or not. In
                  addition, and whether or not any express assignment has been
                  made, the provisions of this Agreement which are for the
                  benefit of the Lender are also for the benefit of, and
                  enforceable by, any subsequent holder of the CEC Note.

         16.5     Severability. Whenever possible, each provision of this
                  Agreement will be interpreted in such manner as to be
                  effective and valid under applicable law, but if any provision
                  of this Agreement is held to be prohibited by or invalid under
                  applicable law, such provision will be ineffective only to the
                  extent of such prohibition or invalidity, without invalidating
                  the remainder of this Agreement.

         16.6     Construction; Currency. The descriptive headings of this
                  Agreement are inserted for convenience of reference only and
                  do not constitute a part of and will not be utilized in
                  interpreting this Agreement. Except as expressly provided
                  herein, all currency amounts are in United States Dollars and
                  any and all payments are to be made in United States Dollars.

         16.7     Notices. Any notice, demand or communication required or
                  permitted to be given by any provision of this Agreement will
                  be in writing and will be deemed to have been given and
                  received when delivered personally or by telefacsimile to the
                  party designated to receive such notice, or on the date
                  following the day sent by overnight courier, or on the third
                  (3rd) business day after the same is sent by certified mail,
                  postage and charges prepaid, directed to the addresses of the
                  parties set forth on the signature pages hereto or to such
                  other or additional addresses as any party might designate by
                  written notice to the other parties.

         16.8     Governing Law. All questions concerning the construction,
                  validity and interpretation of this Agreement, and the
                  performance of the obligations imposed by

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -36-
<PAGE>   42

                  this Agreement, will be governed by the laws of the State of
                  Oklahoma applicable to contracts made and wholly to be
                  performed in that state.

         16.9     Exhibits and Schedules. All exhibits and schedules hereto are
                  an integral part of this Agreement.

         16.10    Exchange of Certificates. Upon surrender by any holder to the
                  Corporation of any Warrants or certificates evidencing any
                  Warrant Shares, the Corporation, at its expense, will issue in
                  exchange therefor, and deliver to such holder, a new
                  certificate or certificates representing such shares of stock
                  of the Corporation, in such denomination or denominations as
                  may be requested by such holder. Upon receipt of evidence
                  satisfactory to the Corporation of the loss, theft,
                  destruction or mutilation of any certificate representing any
                  Warrants or Warrant Shares, and in case of any such
                  mutilation, upon surrender and cancellation of such
                  certificate, the Corporation at its expense will issue and
                  deliver to any such holder a new certificate evidencing such
                  warrants or shares of stock of the Corporation of like tenor,
                  in lieu of such lost, stolen, destroyed or mutilated
                  certificate.

         16.11    Confidentiality. The Lender recognizes that the Corporation
                  may provide the Lender access to information which is of a
                  confidential and proprietary nature. Except as may be required
                  in the opinion of counsel to the Lender in connection with any
                  litigation discovery, the SEC or any other governmental agency
                  or under other applicable law, the Lender agrees not to
                  disclose to any person, other than the Lender's officers,
                  employees, financial institutions or consultants or legal
                  counsel who are subject to a general obligation of
                  confidentiality, nor use for any purpose, other than in
                  connection with this Agreement and the Related Agreements, any
                  information, data or material (regardless of form) which is
                  clearly marked confidential and delivered to the Lender by the
                  Corporation pursuant to the provisions of this Agreement (the
                  "Confidential Information"). The term "Confidential
                  Information" will not include any information which: (a) at
                  the time of disclosure to the Lender is already in the
                  Lender's possession on a non-confidential basis or thereafter
                  is generally available to the public; (b) was available to the
                  Lender on a non-confidential basis from a source other than
                  the Corporation; or (c) has been independently acquired or
                  developed by the Lender without violating the Lender's
                  obligations under this paragraph 16.11.

         16.12    Public Announcements. Prior to Closing and at all times during
                  the term of this Agreement, the Corporation and the
                  Subsidiaries will consult with the Lender before issuing any
                  press release or otherwise making any public statements with
                  respect to the transactions contemplated by this Agreement and
                  will not issue any press release or make any such public
                  statement relating to this Agreement prior to obtaining the
                  written approval of the Lender; provided, however, that such
                  approval will not be required where such release or
                  announcement is required by applicable law rule or regulation;
                  and provided further, that the Corporation may respond to
                  inquiries by the

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -37-
<PAGE>   43

                  press or others regarding the transactions contemplated by
                  this Agreement, so long as such responses are consistent with
                  previously issued press releases.

         16.13    Final Agreement. This Agreement, together with the Related
                  Agreements constitutes the complete and final agreement of the
                  parties concerning the matters referred to herein, and
                  supersedes all prior agreements and understandings.

         16.14    Execution in Counterparts. This Agreement may be executed in
                  any number of counterparts, each of which when so executed and
                  delivered will be deemed an original, and such counterparts
                  together will constitute one instrument. The parties hereto
                  have executed this Agreement on the date first set forth
                  above.

         16.15    ACKNOWLEDGMENTS AND ADMISSIONS. EACH OF THE CORPORATION AND
                  THE SUBSIDIARIES HEREBY REPRESENTS, WARRANTS, ACKNOWLEDGES AND
                  ADMITS THAT (A) EACH OF THE CORPORATION AND THE SUBSIDIARIES
                  HAS MADE AN INDEPENDENT DECISION TO ENTER INTO THIS AGREEMENT,
                  WITHOUT RELIANCE ON ANY REPRESENTATION, WARRANTY, COVENANT OR
                  UNDERTAKING BY THE LENDER, WHETHER WRITTEN, ORAL OR IMPLICIT,
                  OTHER THAN AS EXPRESSLY SET OUT IN THIS AGREEMENT OR IN
                  ANOTHER DOCUMENT EXECUTED BY THE LENDER AND DELIVERED AFTER
                  THE DATE HEREOF, (B) THERE ARE NO REPRESENTATIONS, WARRANTIES,
                  COVENANTS, UNDERTAKINGS OR AGREEMENTS BY THE LENDER AS TO THE
                  PURCHASE OF THE CEC NOTE EXCEPT AS EXPRESSLY SET OUT IN THIS
                  AGREEMENT, (C) THE LENDER HAS NO FIDUCIARY OBLIGATION TOWARD
                  THE CORPORATION OR THE SUBSIDIARIES WITH RESPECT TO THIS
                  AGREEMENT, THE RELATED AGREEMENTS OR THE TRANSACTIONS
                  CONTEMPLATED HEREBY OR THEREBY, AND (D) THE LENDER HAS RELIED
                  UPON THE TRUTHFULNESS OF THE ACKNOWLEDGMENTS IN THIS PARAGRAPH
                  16.14 IN DECIDING TO EXECUTE AND DELIVER THIS AGREEMENT AND TO
                  BECOME OBLIGATED HEREUNDER.

         16.16    JOINT ACKNOWLEDGMENT. THIS WRITTEN AGREEMENT REPRESENTS THE
                  FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
                  CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
                  SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
                  UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         16.17    WAIVER OF JURY TRIAL, PUNITIVE DAMAGES, ETC. EACH OF THE
                  LENDER, THE CORPORATION AND THE SUBSIDIARIES HEREBY KNOWINGLY,
                  VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY (A) WAIVES, TO THE
                  MAXIMUM EXTENT NOT PROHIBITED BY LAW,

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -38-
<PAGE>   44

                  ANY RIGHT IT MAY HAVE TO A TRIAL BY A JURY IN RESPECT OF ANY
                  LITIGATION BASED HEREON, OR DIRECTLY OR INDIRECTLY AT ANY TIME
                  ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
                  ANY TRANSACTION CONTEMPLATED HEREBY OR ASSOCIATED HEREWITH,
                  (B) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY
                  RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION
                  ANY "SPECIAL DAMAGES," AS DEFINED BELOW, (C) CERTIFIES THAT NO
                  PARTY HERETO NOR ANY REPRESENTATIVE OR COUNSEL FOR ANY PARTY
                  HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED
                  THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
                  ENFORCE THE FOREGOING WAIVERS, AND (D) ACKNOWLEDGES THAT IT
                  HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE
                  TRANSACTIONS CONTEMPLATED HEREBY BY, AMONG OTHER THINGS, THE
                  MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS PARAGRAPH.
                  AS USED IN THIS PARAGRAPH, "SPECIAL DAMAGES" INCLUDES ALL
                  SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES
                  (REGARDLESS OF HOW NAMED), BUT DOES NOT INCLUDE ANY PAYMENTS
                  OR FUNDS WHICH ANY PARTY HERETO HAS EXPRESSLY PROMISED TO PAY
                  OR DELIVER TO ANY OTHER PARTY HERETO.

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -39-
<PAGE>   45

                  IN WITNESS WHEREOF, the Corporation, the Subsidiaries and the
Lender have executed this Agreement as of the date first above written.

                              SEVEN SEAS PETROLEUM INC., a Cayman
                              Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              (the "Corporation")

                              SEVEN SEAS PETROLEUM HOLDINGS INC., a
                              Cayman Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS PETROLEUM TURKEY INC., a
                              British Columbia corporation

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS RESOURCES AUSTRALIA  INC., a
                              British Columbia corporation

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS PETROLEUM USA INC., a Delaware
                              corporation

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT

                                      -40-
<PAGE>   46

                              SEVEN SEAS PETROLEUM AUSTRALIA INC., a
                              Cayman Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS PETROLEUM PNG INC., a Cayman
                              Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS PETROLEUM ARGENTINA INC., a
                              Cayman Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS PETROLEUM MEDITERRANEAN
                              INC., a Cayman Islands exempted company limited
                              by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              SEVEN SEAS PETROLEUM TURKEY, INC., a
                              Cayman Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT

                                      -41-
<PAGE>   47

                              SEVEN SEAS PETROLEUM COLOMBIA INC., a
                              Cayman Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              PETROLINSON S.A.., a Panamanian corporation

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              GHK COMPANY COLOMBIA, an Oklahoma corporation

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              GUADUAS PIPELINE COMPANY, a Cayman
                              Islands exempted company limited by shares

                              By /s/  LARRY A. RAY
                                ------------------------------------------------
                                   Larry A. Ray, President

                              (the "Subsidiaries")

                              Notice Addresses:

                              Seven Seas Petroleum, Inc.
                              Attention: Larry A. Ray, President
                              5555 San Felipe, Suite 1700
                              Houston, Texas 77056
                              Telefacsimile: (713) 621-9770

                              and

                              McAfee & Taft
                              Attention: Gary Fuller
                              211 North Robinson
                              10th Floor
                              Oklahoma City, Oklahoma 73102
                              Telefacsimile: (405) 235-4439

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -42-
<PAGE>   48

                              CHESAPEAKE ENERGY CORPORATION,
                              an Oklahoma corporation

                              By /s/ AUBREY K. MCCLENDON
                                ------------------------------------------------
                                Aubrey K. McClendon, Chief Executive Officer

                              (the "Lender")

                              Notice Addresses:

                              Chesapeake Energy Corporation
                              Attention: Marcus C. Rowland
                              6100 North Western
                              Oklahoma City, Oklahoma  73118
                              Telefacsimile: (405) 879-9580

                              and

                              Commercial Law Group, P.C.
                              Attention: Ray Lees
                              2725 Oklahoma Tower
                              210 Park Avenue
                              Oklahoma City, Oklahoma  73102
                              Telefacsimile:  (405) 232-5553

SEVEN SEAS PETROLEUM, INC.
NOTE PURCHASE AND LOAN AGREEMENT
                                      -43-
<PAGE>   49

                                   EXHIBIT "A"

                                   (CEC Note)

                   TO BE PREPARED AND APPROVED BY THE PARTIES
                             SUBSEQUENT TO EXECUTION

<PAGE>   50
                            Exhibit B - Warrant No. 1

     Deliberately omitted; incorporated by reference to Exhibit 4(B) hereof.

<PAGE>   51

                                   EXHIBIT "C"

                         (Pledge and Security Agreement
                          Deed of Mortgage Over Shares
                              Collateral Agreement)

                   TO BE PREPARED AND APPROVED BY THE PARTIES
                            SUBSEQUENT TO EXECUTION.

<PAGE>   52

                   Exhibit D - Shareholder's Rights Agreement

     Deliberately omitted; incorporated by reference to Exhibit 4(C) hereof.

<PAGE>   53

                                   EXHIBIT "E"

                         (Registration Rights Agreement)

                   TO BE PREPARED AND APPROVED BY THE PARTIES
                            SUBSEQUENT TO EXECUTION.

<PAGE>   54

                                   EXHIBIT "F"

                         (Collateral Sharing Agreement)

                   TO BE PREPARED AND APPROVED BY THE PARTIES
                            SUBSEQUENT TO EXECUTION.

<PAGE>   55

                                   EXHIBIT "G"

                                 (Put Agreement)

                   TO BE PREPARED AND APPROVED BY THE PARTIES
                            SUBSEQUENT TO EXECUTION.

<PAGE>   56

                                  SCHEDULE 3.1

     List of jurisdictions in which the Corporation is duly qualified to do
                                    business.

                            Seven Seas Petroleum Inc.

                 Registered: Cayman Islands as of March 1, 2001

<PAGE>   57

                                  SCHEDULE 3.2

       List of subsidiaries that the Corporation directly owns 100% of the
          legal and beneficial capital equity and the jurisdictions in
            which the subsidiaries are organized and qualified to do
                                    business

<Table>
<Caption>
                                                                                                     OTHER JURISDICTIONS
                                                                                                          IN WHICH
                                                                         JURISDICTION OF               QUALIFIED TO DO
  NO.                         SUBSIDIARY                                  INCORPORATION                   BUSINESS
-------- ----------------------------------------------------- ------------------------------------- ----------------------
<S>     <C>                                                    <C>                                   <C>
   1     Seven Seas Petroleum Holdings Inc.                    Cayman Islands (Dormant)
   2     Seven Seas Petroleum Turkey Inc.                      British Colombia (Dormant)
   3     Seven Seas Resources Australia Inc.                   British Colombia (Dormant)
   4     Seven Seas Petroleum USA Inc.                         Delaware                              Texas
   5     Seven Seas Petroleum Australia Inc.                   Cayman Islands (Dormant)
   6     Seven Seas Petroleum PNG Inc.                         Cayman Island (Dormant)
   7     Seven Seas Petroleum Argentina Inc.                   Cayman Islands (Dormant)
   8     Seven Seas Petroleum Mediterranean Inc.               Cayman Islands (Dormant)
   9     Seven Seas Petroleum Turkey Inc.                      Cayman Islands (Dormant)
  10     Seven Seas Petroleum Colombia Inc.                    Cayman Island                         Colombia
  11     Petrolinson SA                                        Panama                                Colombia
  12     GHK Company Colombia                                  Oklahoma                              Colombia
  13     Guaduas Pipeline Company                              Cayman Islands (Dormant)
</Table>
<PAGE>   58

                                  SCHEDULE 3.6

              Options Issued Under Corporation's Stock Option Plan
                               As of July 6, 2001

<Table>
<Caption>
                                    GRANTED
            EXERCISE PRICE                          OUTSTANDING OPTIONS
                RANGE                                (NUMBER OF SHARES)
---------------------------------------        -----------------------------
<S>                                            <C>
             $1.06 - 1.94                                            317,134
             2.00 - 2.94                                             760,912
             3.00 - 3.94                                             727,105
             4.22 - 4.81                                             375,000
             6.16 - 7.13                                              10,000
             8.06 - 8.63                                             175,000
                 9.00                                              1,008,500
            10.70 - 10.90                                            629,000
                14.09                                                 18,000
            18.55 - 18.75                                            530,000
            Undetermined(1)                                          136,283
                                               -----------------------------
            TOTAL GRANTED                                          4,686,934
                                               =============================
         AVAILABLE FOR GRANT                                         669,954
                                               -----------------------------
            TOTAL OPTIONS                                          5,356,888
                                               =============================
</Table>

(1) Certain options were granted to the Corporation's directors and officers
that vest periodically during the course of the year. The exercise price of the
option is the average between the high and low trading prices of the
Corporation's stock on the day of vesting.
<PAGE>   59

                                  SCHEDULE 3.7

                List of each subsidiary's authorized, issued and
                    outstanding capital stock or other equity
                   interests along with the ownership of such
                         issued and outstanding shares.

<Table>
<Caption>
                                                                                              CAPITAL STOCK
                                                                             -----------------------------------------------
            SUBSIDIARY                                OWNER (100%)            AUTHORIZED       ISSUED       OUTSTANDING
-------------------------------------------- -------------------------       --------------- ----------- -------------------
<S>                                          <C>                             <C>             <C>         <C>
Seven Seas Petroleum Holdings Inc. (Cayman)  Seven Seas Petroleum Inc.               50,000           1                   1
Seven Seas Petroleum Turkey Inc. (B.C.)      Seven Seas Petroleum Inc.               10,000           1                   1
Seven Seas Resources Australia Inc. (B.C)    Seven Seas Petroleum Inc.               10,000           1                   1
Seven Seas Petroleum USA Inc.                Seven Seas Petroleum Inc.                1,000         100                 100
Seven Seas Petroleum Australia Inc.          Seven Seas Petroleum Inc.               50,000           1                   1
(Cayman)
Seven Seas Petroleum PNG Inc.                Seven Seas Petroleum Inc.               50,000           1                   1
(Cayman)
Seven Seas Petroleum Argentina Inc.          Seven Seas Petroleum Inc.               50,000           1                   1
(Cayman)
Seven Seas Petroleum Mediterranean Inc.      Seven Seas Petroleum Inc.               50,000           1                   1
(Cayman)
Seven Seas Petroleum Turkey, Inc. (Cayman)   Seven Seas Petroleum Inc.               50,000           1                   1
Seven Seas Petroleum Colombia Inc. (Cayman)  Seven Seas Petroleum Inc.               50,000           1                   1
Petrolinson S.A.                             Seven Seas Petroleum Inc.                5,000       5,000               5,000
(Panama)
GHK Company Colombia                         Seven Seas Petroleum Inc.              100,000       1,000               1,000
(Oklahoma)
Guaduas Pipeline Company                     Seven Seas Petroleum Inc.               50,000           1                   1
(Cayman)
</Table>

<PAGE>   60

                                  SCHEDULE 3.10

          LIST OF SEC DOCUMENTS THAT DO NOT COMPLY WITH THE SECURITIES
               EXCHANGE ACT OF 1933, AS AMENDED, AND THE EXCHANGE
                             ACT OF 1934, AS AMENDED

                                      NONE
<PAGE>   61

                                  SCHEDULE 3.12

  List of Debts, Liabilities or Obligations by the Company or its Subsidiaries

         1)       Accounts Payable - General expenditures - Estimate of $263,000
                  as of 7/3/01

         2)       Accounts Payable related to Dindal and Rio Seco contract areas
                  (includes El Segundo 5-S well) - Estimate of $1,810,610 as of
                  7/3/01

         3)       Accounts Payable related to Guaduas--La Dorada Pipeline -
                  Estimate of $816,000 as of 7/3/01

         4)       Association contract obligations - Dindal, Rio Seco,
                  Rosablanca, Deep Dindal, and Cristales

         5)       Any obligation of the Company or its subsidiaries under the
                  contracts listed as exhibits to the Company's Form 10-K for
                  the year ended December 31, 2001.

<PAGE>   62

                                  SCHEDULE 3.13

       List of a Sale, Transfer, or Lease of any of Company's Assets since
                                December 31, 2000

1)       Termination of Seven Seas interest in Tapir Association Contract

2)       Reorganization of the Company's subsidiaries, converting all second and
         third tier subsidiaries to first tier subsidiaries.

<PAGE>   63

                                  SCHEDULE 3.14

      List of Contracts, Leases, Agreements, Plans, Licenses, Arrangements,
                           Obligations or Commitments

1)       Dindal Association Contract, effective March 1993 as amended per the
         agreement attached hereto

2)       Rio Seco Association Contract, effective August 1995

3)       Rosablanca Association Contract, effective February 1998

4)       Deep Dindal Association Contract, effective April 2001

5)       Cristales Association Contract, effective April 2001

6)       Joint Operating Agreements related to the Dindal and Rio Seco
         association contracts, signed March 1996 with January 2001 amendments

7)       Lease for Corporate Headquarters office space in the Marathon Oil Tower
         in Houston, signed in April 1998 and amended in April 2001

8)       Lease agreements for Colombian operations office in the Teleport office
         tower in Bogota, Colombia. Currently eight agreements are in place,
         each with a year-long duration and a six-month advance notice of
         termination clause.

9)       Trust Indenture governing $110 million of senior subordinated notes,
         dated May 1998

10)      Exploration Agreement with Guaduas Oil Field partners, signed January
         2001

11)      Agreement with CIBC World Markets Corp. for service as the Company's
         financial advisor, dated March 2001

12)      Any contract, lease, agreement, obligation or commitment of the Company
         or its subsidiaries listed as an exhibit to the Company's Form 10-K as
         of 12/31/01

13)      Any and all contracts contemplated by this Agreement or in that certain
         term sheet dated April 20, 2001, specifically:

         a)       Pledge and Security Agreement
         b)       Deed of Charge over Shares Agreement (Colombian shares)

<PAGE>   64

c)       Collateral Agreement (Panamanian shares)
d)       Collateral Sharing Agreement
e)       Shareholders Rights Agreement
f)       Registration Rights Agreement
g)       Escrow Agreement - Subthrust Dindal Well Funds
h)       Escrow Agreement - Senior Subordinated Notes Interest Payments
i)       Series B Note Purchase Agreement
j)       Trust Indenture for Series A and B Notes
k)       Parent Guaranty Agreement
l)       Master Warrant Agreement
m)       Subscription Agreement
<PAGE>   65

                                  SCHEDULE 3.15

               List of Employee Benefit Plans or Related Policies

1)       Employment contract with Larry A. Ray, effective June 1997

2)       Employment contract with Todd Habliston, effective date December 1998
         (attached)

3)       Employment contract with Jeff McCloskey, effective date October 1998
         (attached)

4)       Employment contract with Claudia M. Vaca, effective November 1999
         through November 2000 (contract will continue month to month until
         either party terminates contract)

5)       Change of Control contracts with certain Seven Seas employees,
         including R. Lefaive (June 2001), R. Cunningham (February 2001), R.
         Parsons (February 2001), B. Sanchez (February 2001) (standard form
         attached)

6)       Self funded Dental reimbursement policy for Company employees and their
         eligible dependents - The Company has an unwritten policy of
         reimbursing Houston-based and expatriate employees for all dental
         expenses, excluding strictly cosmetic procedures.

7)       Health insurance policies for Company employees - Insurer: The
         Principal Financial Group

                               Summary of Benefits

         HEALTH INSURANCE - Seven Seas Petroleum Inc. participates in a
         Preferred Provider Organization (PPO) network established and
         administered by Principal Financial Group. All members and their
         dependents are eligible for coverage in the PPO plan. Member means any
         person who is an eligible employee of the policyholder. If any member
         or dependent is sick or injured, they are eligible for comprehensive
         medical and prescription drugs under the terms of the PPO network. This
         policy also covers vision expenses.

8)       Life insurance policies for Company employees - Insurer: The Principal
         Financial Group

                               Summary of Benefits

         MEMBER LIFE INSURANCE - To be eligible for insurance one must be a
         Member. A member is any person who is employed by the Policyholder on
         other than a temporary or part-time basis, and regularly scheduled to
         work for the Policyholder for at least 30 hours a week. The schedule of
         benefits for Member Life Insurance is equal to two (2) times the
         covered person's annual compensation. If the covered person shall die
         while insured for Member Life Insurance, the company will pay the
         covered person's beneficiary the Scheduled Benefit in force on the date
         of the covered person's death. If the beneficiary does not survive the
         covered person, the company will pay the estate, spouse, children,
         parents or other persons as provided in the group policy. The maximum
         schedule of benefit amount will not exceed

<PAGE>   66

         $600,000 or be less than $10,000. If the covered person is age 70 but
         less than 75, the Company will pay 65% of the scheduled benefit. If the
         covered person is age 75 and over, the Company will pay 45% of the
         scheduled benefits.

         In the case of Accidental Death and Dismemberment Insurance, the
         Company will pay a percentage of the injured person's Scheduled
         Benefit. Payment for loss of life will be to the injured person's
         beneficiary. Payment for any other loss will be to the injured person.

9)       Long Term Disability Insurance - Insurer: Fortis Benefits Insurance
         Company

                               Summary of Benefits

         GROUP LONG TERM DISABILITY INSURANCE - The policy pays a monthly
         benefit designed to partly replace income lost during periods of
         disability that result from injury, sickness, or pregnancy.

         A covered person who remains disabled during the qualifying period may
         become eligible to receive a monthly benefit based on monthly pay.
         These benefits are payable while the disability continues, or until the
         Maximum Benefit Period ends.

         If a disabled person receives benefits from other sources, we may
         reduce the benefits payable under the policy. There are also certain
         disabilities for which benefits are not paid or are limited.

         The policy includes a conversion privilege. If a covered person's Long
         Term Disability Insurance ends, it may be possible to convert to a
         conversion policy with no health exam.

10)      Any stock option plans listed as an exhibit to the Company's Form 10-K
         for the year ended December 31, 2000

11)      Contribution to Texas Workers' Compensation Fund and any other employee
         benefit plan as defined in the Agreement that is a state, federal, or
         other governmental jurisdiction requirement

12)      Retirement Plan: On January 1, 1996, the Company adopted a 401(k) plan
         to provide employees with an opportunity to increase their retirement
         savings by making tax-deductible contributions from their salaries into
         the plan. The Company does not make any contribution to the retirement
         plan.

13)      Personnel Policy: Seven Seas has not adopted a formal personnel policy
         to date. Except as specified in individual employment contracts, the
         Company does not have a formal vacation policy.
<PAGE>   67

                                  SCHEDULE 3.16

                    List of Arrangements with Related Parties

1)       Seven Seas loan to Larry A. Ray, President and Chief Operating Officer
         of Seven Seas. This principal amount of this loan is $200,000, bears a
         6.06% interest rate and is due November 1, 2002.

2)       Administrative Services Agreement with The GHK Corporation, a private
         company owned by Robert A. Hefner III, Chairman and Chief Executive
         Officer of Seven Seas. Seven Seas recognized expenses related to this
         agreement of $21,000, $21,000 and $28,000 in 2000, 1999 and 1998,
         respectively. Seven Seas also pays certain miscellaneous costs incurred
         by The GHK Corporation on behalf of Seven Seas. The Company reimbursed
         GHK $23,000, $31,000 and $0.1 million in 2000, 1999, and 1998,
         respectively, for such costs.

3)       Executive Aircraft Agreement with The GHK Corporation. Seven Seas has
         entered into an agreement with The GHK Corporation for the use of The
         GHK Corporation's executive aircraft to transport Seven Seas executives
         and employees on certain business travel. Under this agreement, Seven
         Seas pays The GHK Corporation the lesser of the cost of a first class
         airline ticket or the total actual expenses for each specific flight.
         The Company had $24,000, $57,000 and $31,000 in such expenses during
         2000, 1999 and 1998, respectively.

4)       Stillwater Loan Agreement - Robert A. Hefner guaranteed this loan and
         received $62,500 in remuneration for the guarantee.

5)       McAfee & Taft, A Professional Corporation, serves as Seven Seas'
         corporate counsel. Gary F. Fuller is a shareholder of McAfee & Taft and
         has been a member of Seven Seas' board of directors since 1997. The
         Company incurred expenses from McAfee & Taft in the amounts of
         $499,340, $267,368 and $45,955 in 2000, 1999 and 1998, respectively.

<PAGE>   68

                                  SCHEDULE 3.18

                  LIST OF INSURANCE POLICIES AND PENDING CLAIMS

<Table>
<Caption>
                              TYPE OF INSURANCE                             POLICY NUMBER
--------------------------------------------------------------------     --------------------
<S>                                                                      <C>
Foreign Workers' Compensation                                            CXC037912
Foreign General Liability/Hired / Non-owned Automobile                   CXC037912
Texas Workers' Compensation                                              TSF-001071312
Commercial General Liability/ Hired /Non-owned Automobile/ Property      35392096PHA
Director & Officers Liability                                            DO978A1A00
Special Contingency Risk                                                 OE49375
Energy Package                                                           WCE8121
Group Long Term Disability Insurance                                     G 3500348
Principal Financial Group Medical Insurance                              BC98472 A-1
</Table>

                                 PENDING CLAIMS

Seven Seas and one of its officers and directors, Robert A. Hefner III, has been
sued by four former Seven Seas officers and directors in DeCort, et al. v. Seven
Seas Petroleum Inc., et al., Cause No. 2000-50498, District Court of Harris
County, Texas, 133rd Judicial District. Plaintiffs recently dismissed from the
case Larry A. Ray, a current officer and director, and Breene M. Kerr, a former
director. Plaintiffs allege that Seven Seas failed to obtain extensions of time
in which plaintiffs could exercise certain stock options granted to them, and
that the defendants induced them to enter into separation agreements with Seven
Seas that they would not have entered into but for Seven Seas' agreement to
obtain an extension of the time for plaintiffs to exercise their stock options.
The plaintiffs filed the case October 2, 2000, seeking damages in excess of $13
million. The Company has responded, and the case is in the process of discovery.
The Company has filed a counterclaim against two plaintiffs for breaching their
fiduciary duties in connection with certain employment agreements that they
caused the Company to enter into. A trial is scheduled for late August 2001.
Seven Seas intends to vigorously defend the case. There is a claim filed against
the Directors and Officers Liability insurance policy in excess of $100,000.
<PAGE>   69

                                  SCHEDULE 3.19

        LIST OF ACTIONS, SUITS, PROCEEDINGS OR INVESTIGATIONS PENDING OR
         THREATENED AGAINST OR AFFECTING THE COMPANY OR ANY SUBSIDIARIES
                            DURING THE LAST TWO YEARS

HEIRS OF NICOLAS BELTRAN FRANCO

Two of our subsidiaries, Petrolinson, S.A. and GHK Colombia, along with the
former owner of Petrolinson, S.A., Norman Rowlinson and the heirs of Howard
Thomas Corrigan, are defendants in a lawsuit that was filed in Santa Fe de
Bogota, Colombia in 1998. The plaintiffs are the heirs of Nicolas Beltran
Franco. The plaintiffs have two claims. First, they claim that a de facto
company existed between Nicolas Beltran Franco and the defendants concerning the
Dindal and Rio Seco association contract areas. Second, they claim that before
the Dindal and Rio Seco association contracts were executed, the de facto
company conducted exploration works in the Dindal and Rio Seco association
contract areas. The plaintiffs claim they have the right to participate in
income earned from the Dindal and Rio Seco association contract areas. None of
the plaintiffs are party to the association contracts. However, they are seeking
50% of the income generated by the de facto company they claim existed. It is
not clear what percentage of the Dindal and Rio Seco association contract areas
are covered by the plaintiffs' claims. Our Colombian counsel, Raisbeck, Lara,
Rodriguez and Rueda, members of the law firm of Baker and McKenzie, believe that
if this claim is litigated the chances of the plaintiffs succeeding are remote.

SURFACE LOCATION

A lawsuit was filed by the landowner of the El Segundo 1 surface location to
cancel the Company's surface lease. The Company responded to this claim on
November 4, 1999, and has vigorously defended this claim. Examinations regarding
the claim were held in September 2000, and the probatory stage of the matter was
closed on March 21, 2001. Final allegations were presented on April 16, 2001.
The Company's Colombian legal counsel, Gamba, Barrera, Arriaga y Asociados, has
advised the Company that, on the basis of the claims asserted, it is unlikely
that it will lose the lawsuit.

NOTEHOLDER CLAIM

A claim has been brought against Seven Seas by one of the noteholders in
connection with the Special Notes issued on August 7, 1997. The claim, which is
against Seven Seas and Yorkton Securities Inc., alleges that the noteholder was
not initially advised of the right of Seven Seas to convert the debentures into
units of common shares and warrants. The claim also alleges that there were
errors in the methodology of effecting conversion pursuant to the indenture
between Seven Seas and Montreal Trust Company of Canada dated August 7, 1997
such that the conversion was not effective. The plaintiff in the claim is
seeking damages against Seven Seas in the amount of $340,000 for negligent
misrepresentation and breach of contract or alternatively, for an order
directing Seven Seas to exchange the units currently held by the plaintiff into
a note in the amount of $340,000 payable on July 24, 2002 with interest payable
thereon at a rate of 6% per annum or directing Seven Seas to reimburse the
plaintiff in the amount of $340,000 for the purchase price of the Special Notes.
Seven Seas believes it has meritorious defenses and intends to take appropriate
steps to defend the action vigorously.

FORMER MANAGEMENT

Seven Seas and one of its officers and directors, Robert A. Hefner III, has been
sued by four former Seven Seas officers and directors in DeCort, et al. v. Seven
Seas Petroleum Inc., et al., Cause No. 2000-50498, District Court of Harris
County, Texas, 133rd Judicial District. Plaintiffs recently dismissed from the
case Larry A. Ray, a current officer and director, and Breene M. Kerr, a former
director. Plaintiffs allege that Seven Seas failed to obtain extensions of time
in which plaintiffs could exercise certain stock options granted to them, and
that the defendants induced them to enter into separation agreements with Seven
Seas that they would not have entered into but for Seven Seas' agreement to
obtain an extension of the time for plaintiffs to exercise their stock options.
The plaintiffs filed the case October 2, 2000, seeking damages in excess of $13
million. The Company has responded, and the case is in the process of discovery.
The Company has filed a counterclaim against two plaintiffs for breaching their
fiduciary duties in connection with certain employment agreements that they
caused the Company to enter into. A trial is scheduled for late August, 2001.
Seven Seas intends to vigorously defend the case.

<PAGE>   70

                                                      SCHEDULE 3.19 CONTINUED...

FORMER EMPLOYEE

A lawsuit has been filed against GHK Company Colombia in the Bogota labor court
by a former employee who claims that he incurred $1.6 million in expenses in
connection with a criminal action filed against him in Guaduas. Our Colombian
legal counsel has advised us that it is unlikely that we will lose the lawsuit
due to the fact that, upon his departure from service, the plaintiff
acknowledged that GHK had paid in full all monies owed.

WAYNE LEWIS

Wayne Lewis filed a labor suit against GHK on September 15, 2000, attempting to
prove the existence of a fixed term employment contract for the period between
September 8, 1998 and September 8, 2001. Consequently his pretensions are the
payment of severance, severance interests, vacations, service premium,
indemnification for unilateral termination of the employment contract and a
penalty for the unearned salaries since the unilateral termination of the
contract. GHK answered the claim opposing the pretensions made, based on the
settlement signed in the USA. The proceeding was closed by the Court during the
first hearing, since the lawyer acting as informal agent for the plaintiff was
not timely ratified. The recommendation is to have a settlement between Lewis
and GHK in front of a Colombian Labor Court, in order to prevent future
litigation.

ENVIRONMENTAL PENALTY

On June 8, 1998, the Ministry of Environment required our subsidiary, GHK
Company Colombia, to perform some remedial work on the El Segundo 6-E location
and access road. GHK Company Colombia performed the work, and thereafter
reported to the Ministry of Environment that all the work had been completed. In
various site visits, ministry officials have confirmed that the alleged
violations have been properly remedied. On July 8, 1999, GHK Company Colombia
filed all the documentation, which confirmed total compliance to the
requirements.

In March 2000, we paid a fine of approximately $223,000 to the Ministry of
Environment in connection with a resolution issued against GHK Colombia by the
Ministry of Environment in which it declared GHK Company Colombia to be in
violation of a 1997 decree in connection with the construction of the El Segundo
7-E well location. We have filed an appeal for a reversal of the resolution. We
believe that we have corrected the environmental violations claimed by the
Ministry of Environment; however, the appeal process can take up to two years.
The El Segundo 7-E location has been restored and we currently have no drilling
activities planned at this location.

<PAGE>   71

                                  SCHEDULE 3.23

      LIST OF FACTS OR CIRCUMSTANCES RESULTING IN A MATERIAL ADVERSE CHANGE
                     IN DECEMBER 31, 2001 RESERVE ESTIMATES

                                      NONE
<PAGE>   72
                                 SCHEDULE 3.25

     LIST OF FACTS OR CIRCUMSTANCES RESULTING IN A MATERIAL ADVERSE CHANGE
                     IN DECEMBER 31, 2001 RESERVE ESTIMATES

                                      NONE<PAGE>   1
               FIRST AMENDMENT TO NOTE PURCHASE AND LOAN AGREEMENT

         THIS FIRST AMENDMENT TO NOTE PURCHASE AND LOAN AGREEMENT is made
effective the 9th day of July, 2001, between SEVEN SEAS PETROLEUM INC., a Cayman
Islands exempted company limited by shares (the "Corporation"), all of the
Corporation's Subsidiaries (as hereafter defined) and CHESAPEAKE ENERGY
CORPORATION, an Oklahoma corporation (the "Lender").

                                   WITNESSETH:

         WHEREAS, the Corporation, the Subsidiaries and the Lender executed that
certain Note Purchase and Loan Agreement dated effective July 9, 2001, (the
"Agreement"), providing for a credit facility made available by the Lender to
the Corporation in the original principal amount of TWENTY- TWO MILLION FIVE
HUNDRED THOUSAND DOLLARS ($22,500,000.00); and

         WHEREAS, the Corporation, the Subsidiaries and the Lender desire to
modify the terms of the Agreement to correctly designate the exhibits and
schedules to the Agreement, subject to the terms and conditions contained in the
Agreement as amended by this First Amendment to Note Purchase and Loan Agreement
(the "Amendment").

         NOW, THEREFORE, in consideration of the mutual covenants among the
parties hereto and the benefits realized therefrom by the Corporation, the
Subsidiaries and the Lender, the parties hereby agree as follows:

1. Defined Terms. Except as otherwise defined herein, all terms defined in the
Agreement will have the same meaning herein as such terms are defined in the
Agreement.

2. Extension of Closing Date. The date July 23, 2001, in clause (b) of paragraph
2 of the Agreement is hereby deleted and the date July 24, 2001, is hereby
substituted therefore.

3. Amendment of Exhibit "B". The form of Warrants attached to the Agreement as
Exhibit "B" is hereby deleted and the form of Warrants attached hereto as
Exhibit "B" is hereby substituted therefor.

4. Addition of Remaining Exhibits. The following exhibits to the Agreement which
were not finalized are added as follows: (a) the form of CEC Note attached
hereto as Exhibit "A" is hereby added to the Agreement as Exhibit "A"; (b) the
forms comprising the Pledge Agreement attached hereto as Exhibit "C" are hereby
added to the Agreement as Exhibit "C"; (c) the form of Registration Agreement
attached hereto as Exhibit "E" is hereby added to the Agreement as Exhibit "E";
(d) the form of Collateral Sharing Agreement attached hereto as Exhibit "F" is
hereby added to the Agreement as Exhibit "F"; and (e) the form of Loan Purchase
Agreement attached hereto as Exhibit "G" is hereby added to the Agreement as
Exhibit "G".

5. Post Closing Actions. Under the terms of the Agreement the Corporation is
required among other things to (the "Deferred Post Closing Requirements"): (a)
amend the articles of incorporation,

SEVEN SEAS PETROLEUM INC.
FIRST AMENDMENT-NOTE PURCHASE AGREEMENT

<PAGE>   2

other formation documents and governance documents for each of the Subsidiaries
as required under paragraph 5.15 of the Agreement, which the parties have agreed
will be modified as provided in Schedule "1" attached as a part hereof; and (b)
establish controlled deposit accounts as contemplated by paragraphs 5.14 of the
Agreement. The Corporation has advised that due to timing considerations the
Deferred Post Closing Requirements cannot be completed prior to the Closing Date
and subject to the terms and conditions herein the Lender has agreed to waive
the Deferred Post Closing Requirements as a condition to closing the CEC Loan.
Notwithstanding the foregoing, the Corporation and the Subsidiaries agree to
comply with the Deferred Post Closing Requirements on or before the date which
is forty-five (45) days after the Closing Date. The parties expressly agree that
the Lender does not waive any other conditions to the Closing except as
expressly provided herein, that the Lender does not waive any covenants
(including those that impact the Deferred Post Closing Requirements), that the
obligation of the Corporation and the Subsidiaries to perform the Deferred Post
Closing Requirements is only deferred and that failure to perform such
obligations on or before the specified date will constitute an event of Default
under the Agreement, the Note and the Related Documents.

6. Representations, Warranties and Covenants. In order to induce the Lender to
enter into this Amendment to modify the Agreement, the Corporation and
Subsidiaries hereby represent, warrant and covenant that:

   6.1 No Default. Each of the representations and warranties set forth in the
       Agreement and in this Amendment are true and correct on and as of the
       date of execution of this Amendment with the same effect as if such
       representations and warranties had been made on and as of the date of
       execution hereof and no event of Default has occurred or is continuing.

   6.2 Authorization. The Corporation and each of the Subsidiaries is duly
       authorized to execute and deliver this Amendment and is and will continue
       to be duly authorized to borrow monies and to perform such party's
       obligations under the Agreement and the Related Agreements. The
       Corporation and the Subsidiaries have duly taken all corporate action
       necessary to authorize the execution and delivery of this Amendment and
       to authorize the performance of the obligations of Corporation and the
       Subsidiaries hereunder.

   6.3 No Conflicts. Except for those which have been obtained, no consent,
       approval, authorization or order of any court or governmental authority
       or third party is required in connection with the execution and delivery
       by the Corporation of this Amendment or to consummate the transactions
       contemplated hereby.

   6.4 Binding Effect. When duly executed and delivered, this Amendment and the
       Agreement will each be a legal and binding obligation of Corporation and
       the Subsidiaries, enforceable in accordance with its terms, except as
       limited by bankruptcy, insolvency or similar laws of general application
       relating to the enforcement of creditors' rights and by equitable
       principles of general application.

SEVEN SEAS PETROLEUM INC.
FIRST AMENDMENT-NOTE PURCHASE AGREEMENT

                                     - 2 -

<PAGE>   3

7. Supersession. It is agreed and understood between the Corporation, the
Subsidiaries and the Lender that: (a) except to the extent the Agreement and
Related Agreements are amended by this Amendment, such documents will remain in
full force and effect and unabated and will govern all obligations throughout
the term of the Agreement and this Amendment; (b) the Agreement together with
all amendments thereto and all Related Agreements are incorporated herein by
reference and made a part of this Amendment and the Corporation and the
Subsidiaries hereby adopt, confirm and reaffirm each and every representation,
warranty, covenant and obligation set forth in the Agreement and the Related
Agreements as fully as if each of such matters were restated and set forth in
this Amendment; (c) the Agreement as amended by this Amendment and the Related
Agreements supersede any and all prior agreements entered into between the
Corporation, the Subsidiaries and the Lender; and (d) whenever the Agreement,
the Related Agreements or any agreement or document executed in connection
therewith refer to the Agreement it is intended that such reference is to the
Agreement as amended by this Amendment.

8. Default. The Corporation, the Subsidiaries and the Lender agree that any
breach by the Corporation or the Subsidiaries of any of the terms or conditions
of the Agreement as amended by this Amendment will constitute an event of
Default under the Agreement.

9. Counterparts. This Amendment may be executed in multiple counterparts, each
of which will be an original instrument, but all of which will constitute one
agreement.

10. Governing Law. This Amendment will be governed by and construed in
accordance the laws of the State of Oklahoma and any applicable laws of the
United States of America in all respects, including construction, validity and
performance.

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed effective as of the date first above written.

                                SEVEN SEAS PETROLEUM INC., a Cayman
                                Islands exempted company limited by shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                (the "Corporation")

                                SEVEN SEAS PETROLEUM HOLDINGS INC.,
                                a Cayman Islands exempted company limited by
                                shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

SEVEN SEAS PETROLEUM INC.
FIRST AMENDMENT-NOTE PURCHASE AGREEMENT
                                     - 3 -

<PAGE>   4

                                SEVEN SEAS PETROLEUM TURKEY INC., a
                                British Columbia corporation

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS RESOURCES AUSTRALIA  INC.,
                                a British Columbia corporation

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS PETROLEUM USA INC., a
                                Delaware corporation

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS PETROLEUM AUSTRALIA INC.,
                                a Cayman Islands exempted company limited by
                                shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS PETROLEUM PNG INC., a
                                Cayman Islands exempted company limited by
                                shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS PETROLEUM ARGENTINA INC.,
                                a Cayman Islands exempted company limited by
                                shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

SEVEN SEAS PETROLEUM INC.
FIRST AMENDMENT-NOTE PURCHASE AGREEMENT
                                     - 4 -

<PAGE>   5

                                SEVEN SEAS PETROLEUM
                                MEDITERRANEAN  INC., a Cayman Islands
                                exempted company limited by shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS PETROLEUM TURKEY, INC., a
                                Cayman Islands exempted company limited by
                                shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                SEVEN SEAS PETROLEUM COLOMBIA INC.,
                                a Cayman Islands exempted company limited by
                                shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                PETROLINSON S.A., a Panamanian corporation

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                GHK COMPANY COLOMBIA, an Oklahoma
                                corporation

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                GUADUAS PIPELINE COMPANY, a Cayman
                                Islands exempted company limited by shares

                                By /s/ LARRY A. RAY
                                  ----------------------------------------------
                                  Larry A. Ray, President

                                (the "Subsidiaries")

SEVEN SEAS PETROLEUM INC.
FIRST AMENDMENT-NOTE PURCHASE AGREEMENT
                                     - 5 -

<PAGE>   6

                                CHESAPEAKE ENERGY CORPORATION,
                                an Oklahoma corporation

                                By /s/ TOM L. WARD
                                  ----------------------------------------------
                                  Tom L. Ward, President

                                (the "Lender")

SEVEN SEAS PETROLEUM INC.
FIRST AMENDMENT-NOTE PURCHASE AGREEMENT
                                     - 6 -

<PAGE>   7
                 Description of Changes to Governance Documents
          Under Paragraph 5.15 of the Note Purchase and Loan Agreement
               First Amendment to Note Purchase and Loan Agreement

A. Incorporation of primary negative covenants from the Agreement. - Insert the
following in each of the formation documents and any appropriate governance
documents.

1. Certain Limitations. Notwithstanding anything to the contrary that may be
contained in this Amended and Restated Certificate of Incorporation, for as long
as Seven Seas Petroleum Inc.'s (the "Parent") 12% Senior Secured Note due 2004
dated July 23, 2001, and executed by the Parent in favor of Chesapeake Energy
Corporation ("CEC") in the aggregate amount of TWENTY TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS ($22,500,000.00) (the "Senior Secured Note") remains
outstanding, the Corporation will not authorize or approve any of the following
actions without the prior written consent of CEC, as Lender under that certain
Note Purchase and Loan Agreement dated July 9, 2001, as amended from time to
time:

          1.1  Mergers. Merge, consolidate or combine with any person (other
               than with or into the Parent or any other wholly-owned subsidiary
               of the Parent) or undertake any share exchange of any of the
               Corporation's capital stock.

          1.2  Sale of Assets. Except for the sale of oil, gas or other
               hydrocarbons in the ordinary course of business and the sale of
               obsolete equipment, sell, lease or otherwise dispose of any
               assets in one or a series of related transactions that represent
               five percent (5%) or more of the greater of the Corporation's
               assets or income. In addition, the Corporation will not sell,
               grant or enter into any production payment or similar arrangement
               whether volumetric or dollar denominated.

          1.3  Liquidations. Liquidate, dissolve or effect a recapitalization or
               reorganization in any form of transaction, except by merger or
               consolidation not prohibited under paragraph 1.1 of this section.

          1.4  Charter Amendments. Make any amendment to the Corporation's
               corporate governance documents including, but not limited to, an
               amendment increasing or decreasing the number of directors
               constituting the Board, increasing the authorized capital stock
               of the Corporation or changing its corporate domicile.

          1.5  Liens. Grant, create, assume or permit to continue in existence
               any lien, security interest or encumbrance on any asset of the
               Corporation other than liens for taxes not yet due and payable,
               involuntary liens for obligations not yet due or contested in
               good faith and similar encumbrances.

          1.6  Non Dividend Distributions. Make any distributions on any of the
               Corporation's capital stock or redeem, purchase or otherwise
               acquire any of the Corporation's equity securities except: (a)
               cash dividends; or (b) as expressly permitted or required to be
               permitted by the Indenture covering the Parent's $110,000,000
               12.5% Senior Notes due 2005.

                                                                 Schedule "1""
                                                               Page 1 of 2 Pages

<PAGE>   8

          1.7  Stock. Issue any additional capital stock of the Corporation.

B. Authorized Capital. - Modify all formation documents to reduce the authorized
capital stock and equity interests to the stock or interests that are
outstanding.

C. Governance Matters. - Modify any governance provisions reasonably requested
by the Lender with respect to the pledge of the stock and the exercise of the
Lender's remedies.

                                                                 Schedule "1""
                                                               Page 2 of 2 Pages
<PAGE>   9

                           Exhibit A - Promissory Note

     Deliberately omitted; incorporated by reference to Exhibit 4(A) hereof.

<PAGE>   10

                            Exhibit B - Warrant No. 1

     Deliberately omitted; incorporated by reference to Exhibit 4(B) hereof.

<PAGE>   11

                                  July 23, 2001

                            SEVEN SEAS PETROLEUM INC
                                 (as Mortgagor)

                          CHESAPEAKE ENERGY CORPORATION
                                 (as Mortgagee)

                          -----------------------------

                           LEGAL MORTGAGE OVER SHARES

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

<PAGE>   12

THIS DEED OF MORTGAGE ("Deed of Mortgage") is made as of July 23,2001

BETWEEN

(1)      SEVEN SEAS PETROLEUM INC., a Cayman Islands exempted company limited by
         shares, the registered office of which is at Walker House, Mary Street,
         George Town, Grand Cayman, Cayman Islands (the "Mortgagor"); and

(2)      CHESAPEAKE ENERGY CORPORATION, an Oklahoma corporation, whose principal
         place of business is at 6100 North Western Avenue, Oklahoma City,
         Oklahoma, 73118 (the "Mortgagee") as Collateral Agent under the
         Collateral Sharing Agreement (as hereinafter defined) for itself and
         United States Trust Company of New York, ("Trustee") under that certain
         Indenture dated July 23, 2001 (the "Indenture"), pursuant to which the
         Trustee is trustee for the holders of the Mortgagor's 12% Senior
         Secured Series A Notes (the "Series A Notes") and the Mortgagor's 12%
         Senior Secured Series B Notes (the "Series B Notes").

WHEREAS

(A)      Pursuant to a Note Purchase and Loan Agreement dated as of July 9, 2001
         (the "Note Purchase and Loan Agreement") the Mortgagee agreed to
         advance to the Mortgagor the sum of Twenty-two Million Five Hundred
         Thousand United States Dollars (US$22,500,000.00), evidenced by a 12%
         Senior Secured Note due 2004 in the principal amount of TWENTY-TWO
         MILLION FIVE HUNDRED THOUSAND DOLLARS ($22,500,000.00) (the "CEC Note")
         subject to the terms and conditions stated in: (a) the Note Purchase
         and Loan Agreement; (b) the CEC Note; (c) the detachable Warrants to
         purchase twelve million six hundred twelve thousand one hundred forty
         (12,612,140) shares of the Mortgagor's ordinary shares (the
         "Warrants"); (d) the Shareholder's Rights Agreement dated July 23, 2001
         between the Mortgagor and the Mortgagee (the "Shareholder's
         Agreement"); (e) the Registration Rights Agreement dated July 23, 2001
         between the Mortgagor and the Mortgagee (the "Registration Agreement");
         (f) the Security Agreement dated July 23, 2001 between the Mortgagor
         and the Mortgagee as Collateral Agent for itself and the Trustee (the
         "Security Agreement"); (g) certain other Deeds of Mortgage Over Shares
         of the subsidiaries of the Mortgagor other than the Company dated July
         23, 2001 (the "Other Deeds of Mortgage"); (h) the Collateral Sharing
         and Agency Agreement dated as of July 23, 2001 between the Mortgagee
         and the Trustee pursuant to which the Mortgagee agrees to act as
         collateral agent for itself and the Trustee (the "Collateral Sharing
         Agreement"); and (i) any and all other documents and instruments
         executed and delivered in connection with the Note Purchase and Loan
         Agreement, the Indenture and any of the other documents executed in
         connection with the Note Purchase and Loan Agreement or the Indenture.

(B)      Upon satisfaction of certain conditions set forth in the Note Purchase
         and Loan Agreement, the CEC Note, the Warrants, and the other Related
         Agreements, the CEC Note issued under the Note Purchase and Loan
         Agreement may be exchanged by the Mortgagee in part for ordinary shares
         of the Mortgagor.

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

<PAGE>   13

(C)      The Note Purchase and Loan Agreement was executed on the agreement that
         the Mortgagor shall enter into this mortgage over shares in the capital
         of [NAME OF SUBSIDIARY], a [Cayman Islands company, the registered
         office of which is at [__________], [George Town, Grand Cayman, Cayman
         Islands][ a company organized under the laws of Panama][an Oklahoma
         corporation].

(D)      The Mortgagor has agreed to secure the Secured Amounts (as defined
         below) by entering into this Deed of Mortgage, as well as the other
         Financing Documents (as defined below).

IT IS AGREED as follows

1.       INTERPRETATION

         1.1      Except where the context otherwise requires, words and
                  expressions defined in the Note Purchase and Loan Agreement or
                  the recitals above shall have the same meaning where used
                  herein and the further words and expressions set out below
                  shall have the following meanings;

                  ACTIVE SUBSIDIARIES means Seven Seas Petroleum USA Inc., a
                  Delaware corporation, Seven Seas Petroleum Colombia Inc., a
                  Cayman Islands company, Petrolinson SA, a Panamanian
                  corporation, and GHK Company Colombia, an Oklahoma
                  corporation.

                  COLLATERAL AGENT means the Mortgagee as collateral agent under
                  the certain Collateral Sharing Agreement;

                  COMPANY means the company specified in Schedule 1;

                  ENFORCEMENT NOTICE means an enforcement notice served by the
                  Mortgagee on the Mortgagor pursuant to the terms of this Deed
                  of Mortgage;

                  FINANCING DOCUMENTS means the Note Purchase and Loan
                  Agreement, the Indenture, the CEC Note, the Series A Notes,
                  the Series B Notes, the Security Agreement, the Other Deeds of
                  Mortgage, this Deed of Mortgage, the Related Agreements, the
                  Collateral Sharing Agreement and any and all other documents
                  and instruments executed and delivered in connection with the
                  Note Purchase and Loan Agreement or the Indenture.

                  INACTIVE SUBSIDIARIES means Seven Seas Petroleum Holdings
                  Inc., a Cayman Islands company, Seven Seas Petroleum Turkey
                  Inc., a British Colombia corporation, Seven Seas Resources
                  Australia Inc., a British Colombia corporation, Seven Seas
                  Petroleum Australia Inc., a Cayman Islands company, Seven Seas
                  Petroleum PNG Inc., a Cayman Islands company, Seven Seas
                  Petroleum Argentina, a Cayman Islands company, Seven Seas
                  Mediterranean Inc., a Cayman Islands company, Seven Seas
                  Petroleum Turkey Inc., a Cayman Islands company, and Guaduas
                  Pipeline Company, a Cayman Islands company.

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       2
<PAGE>   14

                  INDENTURE means the Indenture for the Series A Notes and the
                  Series B Notes as referred to in paragraph (2) above.

                  MORTGAGED PROPERTY means the Original Securities and all and
                  any other shares, securities, rights, moneys and property for
                  the time being mortgaged or charged to the Mortgagee pursuant
                  to Clause 2;

                  NOTE PURCHASE AND LOAN AGREEMENT means the facility referred
                  to in recital A as amended from time to time;

                  ORIGINAL SECURITIES means the securities listed in Schedule 1
                  which are all registered in the name of the Mortgagor and
                  following execution of this Deed of Mortgage will be
                  transferred into the name of the Mortgagee or its nominee as
                  Collateral Agent;

                  OTHER DEEDS OF MORTGAGE means each Legal Mortgage Over Shares
                  between Mortgagor and Mortgagee delivered concurrently
                  herewith or hereafter delivered;

                  RELATED AGREEMENTS means the Warrants, the warrants granted to
                  the holders of the Series A Notes, the Shareholder's
                  Agreement, the Registration Agreement and any other documents
                  or instruments executed in connection with any of the
                  foregoing;

                  SECURED AMOUNTS means all and any amounts of any kind now or
                  in the future, actual or contingent, due and payable by the
                  Mortgagor to the Mortgagee under the CEC Note and to the
                  Trustee for the benefit of the holders of the Series A Notes
                  or the Series B Notes or under or in connection with this Deed
                  of Mortgage or the other Financing Documents and references to
                  the Secured Amounts include references to any part of them;
                  and

                  SECURITY INTEREST means any mortgage, charge, pledge, lien,
                  encumbrance, right of set off or any security interest,
                  howsoever created or arising.

         1.2      In this Deed of Mortgage:

                  (a)      references to the Mortgagor or the Mortgagee include
                           references to any person for the time being deriving
                           title under each of them respectively;

                  (b)      references to this Deed of Mortgage and the Financing
                           Documents are references to the same as from time to
                           time varied, supplemented or amended in any manner or
                           respect whatsoever;

                  (c)      references to the Original Securities or to the
                           Mortgaged Property include references to any property
                           included in such term;

                  (d)      "mortgage" includes a transfer or assignment by way
                           of mortgage;

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       3
<PAGE>   15

                  (e)      Unless the context otherwise indicates, words
                           importing the singular shall include the plural and
                           vice versa, and the use of the neuter, masculine, or
                           feminine gender is for convenience only and shall be
                           deemed to mean and include the neuter, masculine or
                           feminine gender; and

                  (f)      Clause headings are for ease of reference only.

2.       COVENANT TO PAY SECURED AMOUNTS AND CHARGE

         2.1      The Mortgagor covenants with the Mortgagee for the benefit of
                  the Mortgagee and the Trustee that it shall, whether or not
                  the Mortgagor shall have received an Enforcement Notice in
                  accordance with this Deed of Mortgage or notice of demand in
                  respect of the Secured Amounts, pay and discharge any moneys
                  and liabilities in respect of the Secured Amounts whatsoever
                  which are now or at any time hereafter may be due, owing or
                  payable by the Mortgagor in any currency, actually or
                  contingently, solely and/or jointly and/or severally with
                  another or others, as principal or surety on any account
                  whatsoever pursuant to this Deed of Mortgage or the other
                  Financing Documents or as a consequence of any breach,
                  non-performance, disclaimer or repudiation by the Mortgagor of
                  any of its obligations, covenants, representations or
                  warranties under this Deed of Mortgage, the other Financing
                  Documents or otherwise.

         2.2      The Mortgagor hereby transfers absolutely by way of mortgage
                  to the Mortgagee as a continuing security for the payment and
                  discharge of the Secured Amounts, all its rights, title,
                  interest and benefit, present and future in, to and under:

                  (a)      the Original Securities; and

                  (b)      all other securities and all rights, monies
                           (including, without limitation, dividends) and
                           property whatsoever which may from time to time at
                           any time be derived from, accrued on or be offered in
                           respect of the Original Shares whether by way of
                           redemption, exchange, conversion, rights, bonus,
                           capital reorganisation or otherwise howsoever.

3.       CONTINUING AND PRIMARY SECURITY

         3.1      This Deed of Mortgage shall be a continuing security, and
                  shall be in addition to and shall not affect any continuing
                  liens or other Security Interests to which the Mortgagee is or
                  will be otherwise entitled over the Mortgaged Property, which
                  liens and other Security Interests shall remain in force
                  independently of this Deed of Mortgage.

         3.2      The Original Securities and other Mortgaged Property are
                  hereby mortgaged to the Mortgagee as primary and not as
                  collateral security.

         3.3      The Mortgagor's liability hereunder shall not be discharged or
                  impaired by:

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       4
<PAGE>   16

                  (a)      the existence or validity of any other security taken
                           by the Mortgagee in relation to the Financing
                           Documents or any enforcement of or failure to enforce
                           or the release of any such security;

                  (b)      any amendment to or variation of the Financing
                           Documents or any security relating to the Financing
                           Documents or any assignment thereof or hereof;

                  (c)      any release of or granting of time or any other
                           indulgence to the Mortgagor or any third party;

                  (d)      any invalidity, irregularity, unenforceability,
                           imperfection or avoidance of or any defect in any
                           security granted by, or any obligations of, the
                           Mortgagor or any other person hereunder or under the
                           Financing Documents or any amendment to or variation
                           thereof or of any other document or security
                           comprised therein;

                  (e)      the insolvency, liquidation, bankruptcy or
                           dissolution (or proceedings analogous thereto) of the
                           Mortgagor, the Company or any other person or the
                           appointment of a receiver or administrative receiver
                           or administrator (whether by administration order or
                           otherwise) or trustee or similar officer of any of
                           the assets of the Mortgagor, the Company or any other
                           person or the occurrence of any circumstances
                           whatsoever affecting the Mortgagor, or any other
                           person's liability to discharge its obligations under
                           the Financing Documents;

                  (f)      any release, renewal, exchange or realisation of any
                           security or obligation provided under or by virtue of
                           this Deed of Mortgage or the other Financing
                           Documents or the provision of any further security to
                           the Mortgagee at any other time; or

                  (g)      any other act, event, neglect or omission which would
                           or might but for this clause operate to impair or
                           discharge the Mortgagor's liability hereunder.

         3.4      Any release, compromise or discharge of the obligations of the
                  Mortgagor shall be deemed to be made subject to the condition
                  that it will be void if any payment or security which the
                  Mortgagee may receive or have received is set aside or proves
                  invalid for whatever reason.

         3.5      Rights may be exercised and demands may be made under this
                  Deed of Mortgage from time to time, and the liabilities and
                  obligations of the Mortgagor and the rights and security or
                  other consideration contained in this Deed of Mortgage may be
                  exercised and enforced, irrespective of

                  (a)      whether any demands, steps or proceedings are being
                           or have been taken against the Mortgagor or any third
                           party; or

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       5
<PAGE>   17

                  (b)      whether or in what order any security to which the
                           Mortgagee may be entitled in respect of the Secured
                           Amounts is enforced.

4.       WARRANTIES AND UNDERTAKING

         4.1      The Mortgagor represents and warrants to the Mortgagee and
                  undertakes that:

                  (a)      it is the absolute legal and beneficial owner of all
                           of the Original Securities free of all Security
                           Interests, encumbrances, trusts, equities, proxies
                           and claims whatsoever (save under this Deed of
                           Mortgage or the other Financing Documents) and that
                           all of the Original Securities are fully paid up and
                           are non-assessable;

                  (b)      except as limited by the Financing Documents,
                           Mortgagor has the full legal and unlimited right to
                           vote the Original Securities in its sole discretion;

                  (c)      the Original Securities constitute 100% of the issued
                           and outstanding equity capital of the Company and are
                           all currently registered in the name of the Mortgagor
                           (subject to the registration of the Original
                           Securities in the name of the Mortgagee as Collateral
                           Agent concurrently with the execution and delivery of
                           this Deed of Mortgage);

                  (d)      the Mortgagor and the Company are duly incorporated
                           and in good standing under the respective laws of the
                           jurisdiction in which each of them is incorporated
                           and the Mortgagor has and will at all times have the
                           necessary power to enter into and perform its
                           obligations under this Deed of Mortgage and has duly
                           authorized the execution and delivery of this Deed of
                           Mortgage;

                  (e)      the Company is an exempted company under the laws of
                           the Cayman Islands and neither this Deed of Mortgage
                           or the transfer of the Original Securities to the
                           Mortgagee is subject to any stamp or other tax under
                           the laws of the Cayman Islands and this Deed of
                           Mortgage is capable of being enforced without being
                           subject to any stamp or other tax under the laws of
                           the Cayman Islands;

                  (f)      pursuant to amendments to the articles of association
                           within 45 days after the date of this Agreement, the
                           Company will not be permitted to issue any equity
                           capital other than the Original Securities;

                  (g)      the Company has no contractual or other business
                           relationship with any Inactive Subsidiary;

                  (h)      No Inactive Subsidiary has any operations, assets or
                           liabilities, direct, indirect or contingent;

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       6
<PAGE>   18

                  (i)      the Mortgagor holds no rights or Security Interests
                           with respect to present or future revenues and
                           assets, tangible or intangible, relating to the
                           exploration, development, production, transportation
                           and sale of petroleum in and from the Republic of
                           Colombia, directly, by assignment, or otherwise,
                           except as a shareholder of companies whose shares are
                           pledged to Mortgagee pursuant to the Financing
                           Documents;

                  (j)      this Deed of Mortgage constitutes its legal, valid,
                           binding and enforceable obligation and is a first
                           priority security interest over the Mortgaged Shares
                           effective in accordance with its terms;

                  (k)      the execution, delivery, observance and performance
                           by the Mortgagor of this Deed of Mortgage will not
                           require the Mortgagor to obtain any licenses,
                           consents or approvals and will not result in any
                           violation to the best of the Mortgagor's knowledge,
                           of any law, statute, ordinance, rule or regulation
                           applicable to it or any other agreements;

                  (l)      the Company is not a party or otherwise bound to any
                           employment, management or other agreement, the effect
                           of which would be to limit the ability of the
                           Mortgagee to manage the Company upon an event of
                           Default under the Financing Documents or give rise to
                           any payment or penalty to terminate any such
                           arrangement;

                  (m)      it has obtained all the necessary authorizations and
                           consents to enable it to enter into this Mortgage and
                           the necessary authorizations and consents will remain
                           in full force and effect at all times during the
                           existence of the security constituted by this Deed of
                           Mortgage;

                  (n)      the execution, delivery, observance and performance
                           by the Mortgagor of the Deed of Mortgage will not
                           constitute an event of default or trigger any
                           enforcement under any Security Interest in the
                           Mortgagor's assets nor will it result in the creation
                           of any Security Interest over or in respect of the
                           present or future assets of the Company;

                  (o)      the Mortgagor has fully disclosed in writing to the
                           Mortgagee all facts relating to the Mortgagor and the
                           Company which the Mortgagor knows or should
                           reasonably know and which are material for disclosure
                           to the Mortgagee in the context of the Financing
                           Documents; and

                  (p)      no agreement to which the Mortgagor or the Company or
                           its Colombian branch is a party, or law, decree or
                           regulation to which either is subject, including
                           without limitation any agreement with Empresa
                           Colombiana de Petroleos or imposition by the Ministro
                           de Minas y Energia de Colombia or any other
                           instrumentality of the Republic of Colombia requires
                           the consent of any such person to the execution,
                           delivery or performance of this Deed of Mortgage and
                           the other Financing Documents and each obligation and
                           covenant contained herein and therein.

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       7
<PAGE>   19

         4.2      The Mortgagor undertakes that, for so long as any Secured
                  Amounts remain outstanding:

                  (a)      the Mortgagor shall pay to the Mortgagee, upon
                           demand, the amount of all reasonable expenses which
                           the Mortgagee may incur in, about or with a view to
                           perfecting or enforcing this security or otherwise in
                           connection with this security;

                  (b)      the Mortgagor shall promptly pay (and shall indemnify
                           the Mortgagee on demand against) all calls,
                           installments and other payments which may be made or
                           become due in respect of the Mortgaged Property and
                           so that, in the event of default by the Mortgagor,
                           the Mortgagee may do so on behalf of the Mortgagor
                           and clause 4.2(a) shall apply accordingly;

                  (c)      to the extent any Mortgaged Property is at any time
                           not vested in the Mortgagee or its nominee as
                           Collateral Agent the Mortgagor shall forthwith and
                           from time to time deposit with the Mortgagee all
                           certificates and other documents of title relating to
                           the Mortgaged Property and signed share transfer
                           forms;

                  (d)      the Mortgagor will maintain the Company as an
                           exempted company under the laws of the Cayman Islands
                           so that the transactions or enforcement actions
                           contemplated hereunder will be capable of being
                           completed without incurrence of any stamp or other
                           tax under the laws of the Cayman Islands;

                  (e)      the Mortgagor will not permit the Company to enter
                           into or become bound by any employment, management or
                           other agreement, the effect of which would be to
                           limit the ability of the Mortgagee to manage the
                           Company upon an event of Default under the Financing
                           Documents or give rise to any payment or penalty to
                           terminate any such arrangement;

                  (f)      the Mortgagor will not permit any Inactive Subsidiary
                           to conduct operations or own any asset or incur any
                           liability, direct, indirect or contingent;

                  (g)      Mortgagor will not permit the Company to engage in
                           any transaction, contractual or otherwise, with any
                           affiliate of Mortgagor except with Mortgagor and
                           Active Subsidiaries and as may otherwise be permitted
                           by the Financing Documents; provided however, that in
                           no event shall the Company engage in any transaction,
                           contractual or otherwise, with an Inactive
                           Subsidiary;

                  (h)      the Mortgagor shall deliver to the Mortgagee undated
                           letters of resignation executed by all persons now or
                           hereafter serving as Directors of the Company from
                           time to time, which letters the Mortgagee shall be
                           entitled

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       8
<PAGE>   20

                           to date and cause to be given immediate effect as of
                           the date of an Enforcement Notice;

                  (i)      the Mortgagor shall forthwith sign, seal, deliver and
                           complete all transfers, renunciations, proxies
                           (including irrevocable proxies if the Mortgagee so
                           requests) mandates, assignments, deeds and documents
                           and do all acts and things which the Mortgagee may,
                           in its absolute discretion, at any time and from time
                           to time specify for enabling or assisting the
                           Mortgagee:

                           (i)      to perfect or improve its title to and
                                    security over the Mortgaged Property
                                    including, without limitation, obtaining
                                    such approvals or consents to the rights and
                                    remedies granted to the Mortgagee herein as
                                    the Mortgagee requests in the Mortgagee's
                                    sole discretion;

                           (ii)     to vest the Mortgaged Property (including
                                    without limitation the registration thereof
                                    in the applicable share registry) in the
                                    Mortgagee or its nominee or nominees as
                                    Collateral Agent as of the date of execution
                                    of this Deed of Mortgage;

                           (iii)    to exercise (or enable its nominee or
                                    nominees to exercise) any rights or powers
                                    attaching to the Mortgaged Property;

                           (iv)     after the service of an Enforcement Notice
                                    to sell or dispose of the Mortgaged
                                    Property; or

                           (v)      otherwise to enforce any of the rights of
                                    the Mortgagee under or in connection with
                                    this Deed of Mortgage;

                  (j)      the Mortgagor shall not (without the written consent
                           of the Mortgagee):

                           (i)      create or permit to exist over all or part
                                    of the Mortgaged Property (or any interest
                                    therein) any Security Interest (other than
                                    created or expressly permitted to be created
                                    under this Deed of Mortgage or under other
                                    Financing Documents) whether ranking prior
                                    to, pari passu with or behind the security
                                    contained in this Deed of Mortgage;

                           (ii)     sell, transfer or otherwise dispose of the
                                    Mortgaged Property or any interest therein
                                    or attempt or agree to so dispose;

                           (iii)    permit any person other than the Mortgagee
                                    or its nominee to be registered as or become
                                    the holder of the Mortgaged Property as
                                    Collateral Agent; or

                           (iv)     vote in favour of a resolution or amend,
                                    modify or change the memorandum and articles
                                    of association of the Company or

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       9
<PAGE>   21

                                    authorize the issuance by the Company of any
                                    shares or any other equity security.

                           (v)      except as otherwise permitted by the
                                    Financing Documents permit the Company to
                                    transfer, assign, dispose of or encumber any
                                    rights or interests of the Company, direct
                                    or indirect, with respect to petroleum
                                    exploration, development, production,
                                    transportation, sale or other disposition or
                                    with respect to any association or other
                                    contract under which the Company has such
                                    rights or interests;

                           (vi)     permit the Company to grant any Security
                                    Interest in, or otherwise encumber, any of
                                    its assets, tangible or intangible, except
                                    as may be expressly permitted by the
                                    Financing Documents;

                           (vii)    permit the Company to make any distribution
                                    or payment to or for the benefit of
                                    Mortgagor, whether directly or otherwise, if
                                    the effect of that distribution or payment
                                    is to render the Company insolvent or unable
                                    to pay its obligations as they mature; or

                           (viii)   take any other action that would have as its
                                    effect a breach of a Financing Document.

                  (k)      to the extent received by the Mortgagor, it shall
                           forward to the Mortgagee all notices, reports,
                           accounts and other documents relating to the
                           Mortgaged Property or which are sent to the holders
                           of any of the Mortgaged Property as soon as they are
                           received;

                  (l)      no further shares or equity securities of any kind in
                           the Company (or any options or other rights with
                           respect thereto) will be issued and the authorized
                           shares shall at no time exceed the issued shares;

                  (m)      at any time after the service of an Enforcement
                           Notice, it shall exercise all voting and other rights
                           and powers which may at any time be exercisable by
                           the holder of the Mortgaged Property as the Mortgagee
                           may in its absolute discretion direct, it being
                           understood that the Mortgagee has reserved the right
                           to exercise all such voting rights directly for any
                           proper purpose, including without limitation the
                           immediate removal of Directors of the Company and
                           their replacement;

                  (n)      the Mortgagor shall not take or accept any Security
                           Interest from the Company or, in relation to the
                           Secured Amounts, from any third party, without first
                           obtaining the Mortgagee's written consent or permit
                           any Security Interest to be granted by the Company to
                           any third party, except as may be expressly permitted
                           by the Financing Documents;

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       10
<PAGE>   22

                  (o)      the Mortgagor shall not prove in a liquidation or
                           winding up of the Company in competition with the
                           Mortgagee for any amount whatsoever owing to the
                           Mortgagee by the Mortgagor on any account whatsoever;
                           and

                  (p)      the Mortgagor shall not claim payment whether
                           directly or by set-off, lien, counterclaim or
                           otherwise of any amount which may be or has become
                           due to the Mortgagor by the Company.

5.       POWER OF ATTORNEY

         5.1      The Mortgagor hereby irrevocably and by way of security for
                  the payment by it of the Secured Amounts and the performance
                  of its obligations under this Deed of Mortgage appoints the
                  Mortgagee as its true and lawful attorney (with full power to
                  appoint substitutes and to subdelegate) on behalf of the
                  Mortgagor and in the Mortgagor's own name or otherwise, at any
                  time and from time to time, to sign, seal, deliver and
                  complete all transfers, renunciations, proxies, mandates,
                  assignments, deeds and documents and do all acts and things
                  which the Mortgagee may, in its sole and absolute discretion,
                  consider to be necessary or advisable to perfect or improve
                  its security over the Mortgaged Property or to give proper
                  effect to the intent and purposes of this Deed of Mortgage or,
                  after delivery of an Enforcement Notice to enable or assist in
                  any way in the exercise of any power of sale of the Mortgaged
                  Property (whether arising under this Deed of Mortgage or
                  implied by statute or otherwise).

6.       ENFORCEMENT

         6.1      The Mortgagee may at any time after the occurrence of an event
                  of Default (as defined in the Note Purchase and Loan
                  Agreement) which has not been timely cured but including,
                  without limitation, the breach of any representation, warranty
                  or covenant contained in this Deed of Mortgage and the other
                  Financing Documents) serve an Enforcement Notice on the
                  Mortgagor. Unless and until the Mortgagee shall have served an
                  Enforcement Notice, but not thereafter: (a) Mortgagee agrees
                  to the fullest extent permitted by applicable law that the
                  Mortgagor has the right to receive payment of any and all cash
                  dividends distributed in respect of the Original Securities
                  and all other securities which may from time to time at any
                  time be derived from the Original Securities; and (b) appoints
                  Mortgagor as Mortgagee's agent and proxy to vote all of the
                  securities described in clause (a) above and exercise all
                  rights and privileges attributable to such securities as
                  permitted under applicable law. Prior to default, if the
                  Mortgagee shall receive any dividend or money described in
                  clause (a) above, the Mortgagee shall receive the same as
                  agent for Mortgagor and upon receipt shall promptly pay or
                  remit the same, without reduction, to Mortgagor. At the
                  request of Mortgagor, Mortgagee shall give such reasonable
                  assurances, confirmations and advice to any third party as may
                  be necessary for Mortgagor to enjoy the full benefit of the
                  rights and privileges described in clauses (a) and (b) above.

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       11
<PAGE>   23

         6.2      If the Mortgagee shall serve an Enforcement Notice, the
                  Mortgagee shall, without prejudice to any other right or
                  remedy available hereunder or under applicable law, forthwith
                  become entitled:

                  (a)      solely and exclusively to exercise all voting rights
                           attaching to the Mortgaged Property or any thereof
                           and shall exercise such rights in such manner as the
                           Mortgagee may in its absolute discretion determine;
                           and/or

                  (b)      solely and exclusively to exercise any and all other
                           rights and/or powers and/or discretions of the
                           Mortgagor in, to and under the Mortgaged Property
                           pursuant to the constitutional documents of the
                           Company; and/or

                  (c)      to receive and retain all dividends and other
                           distributions made on or in respect of the Mortgaged
                           Property or any thereof and any such dividends and
                           other distributions received by the Mortgagor after
                           such time shall be held in trust by the Mortgagor for
                           the Mortgagee and be paid or transferred to the
                           Mortgagee on demand; and/or

                  (d)      without notice to, or further consent or concurrence
                           by, the Mortgagor to sell the Mortgaged Property or
                           any part thereof by such method, at such place and
                           upon such terms as the Mortgagee may in its absolute
                           discretion determine, with power to postpone any such
                           sale and in any such case the Mortgagee may exercise
                           any and all rights attaching to the Mortgaged
                           Property as the Mortgagee in its discretion may
                           determine and without being answerable for any loss
                           occasioned by such sale or resulting from
                           postponement thereof or the exercise of such rights;
                           upon any sale of the Mortgaged Property or any part
                           thereof the purchaser thereof shall not be bound to
                           see or enquire whether the power of sale of the
                           Mortgagee has arisen in the manner herein provided
                           and the sale shall be deemed to be within the power
                           of the Mortgagee and the receipt of the Mortgagee for
                           the purchase money shall effectively discharge the
                           purchaser of the Mortgaged Property, or any part
                           thereof, who shall not be concerned or be in any way
                           answerable therefor; and/or

                  (e)      to appoint a receiver in respect of the Mortgaged
                           Property and the provisions of Clause 7 shall apply
                           thereto.

         6.3      The Mortgagee shall not be liable for any loss or damage
                  occasioned by any sale or disposal of the Mortgaged Property
                  (or interest therein) or arising out of the exercise of or
                  failure to exercise any of its powers under this Deed of
                  Mortgage or for any neglect or default to pay any instalment
                  or accept any offer or notify the Mortgagor of any such matter
                  or for any other loss of any nature whatsoever in connection
                  with the Mortgaged Property.

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       12
<PAGE>   24

7.       MORTGAGEE'S RIGHTS AS TO MORTGAGED PROPERTY

         If the Mortgagee shall serve an Enforcement Notice, the Mortgagee
         shall, without prejudice to any other right or remedy available
         hereunder or under applicable law, forthwith become entitled:

         7.1      solely and exclusively to exercise all voting rights attaching
                  to the Mortgaged Property or any thereof and shall exercise
                  such rights in such manner as the Mortgagee may in its
                  absolute discretion determine; and/or

         7.2      solely and exclusively to exercise all other rights and/or
                  powers and/or discretions of the Mortgagor in, to and under
                  the Mortgaged Property pursuant to the memorandum and articles
                  of association of the Company; and/or

         7.3      to receive and retain all dividends and other distributions
                  made on or in respect of the Mortgaged Property or any thereof
                  and any such dividends and other distributions received by the
                  Mortgagor after such time shall be held in trust by the
                  Mortgagor for the Mortgagee and be paid or transferred to the
                  Mortgagee on demand to be applied towards the discharge of the
                  Secured Obligations; and/or

         7.4      without notice to, or further consent or concurrence by, the
                  Mortgagor to sell or otherwise dispose of the Mortgaged
                  Property or any part thereof by such method, at such place and
                  upon such terms as the Mortgagee may in its absolute
                  discretion determine, with power to postpone any such sale and
                  in any such case the Mortgagee may exercise any and all rights
                  attaching to the Mortgaged Property as the Mortgagee in its
                  absolute discretion may determine and without being answerable
                  for any loss occasioned by such sale or resulting from
                  postponement thereof or the exercise of such rights; and/or

         7.5      to date and deliver the documents delivered to it pursuant to
                  this Mortgage as it considers appropriate and to take all
                  steps not already taken to register the Mortgaged Property in
                  the name of the Mortgagee or its nominee or nominees as
                  Collateral Agent and to assume control as registered owner of
                  the Mortgaged Property.

8.       OTHER SECURITY

         8.1      This security is in addition to and shall not affect or be
                  merged in any bills, notes, guarantees, indemnities,
                  undertakings, Security Interests, or other security whatsoever
                  which the Mortgagee may hold now or hereafter in connection
                  with the Financing Documents or the obligations of any other
                  person liable for any of the Secured Amounts.

9.       FURTHER PROVISIONS

         9.1      (a)      This security is in addition to, and shall neither be
                           merged in, nor in any way exclude or prejudice, any
                           other Security Interest or right of recourse

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       13
<PAGE>   25

                           or other right whatsoever which the Mortgagee may now
                           or at any time hereafter hold or have (or would apart
                           from this security hold or have) as regards the
                           Mortgagor or any other, person in respect of the
                           Secured Amounts.

                  (b)      The powers which this Deed of Mortgage confer on the
                           Mortgagee are cumulative, without prejudice to its
                           powers under the general law, and may be exercised as
                           often as the Mortgagee thinks appropriate; the
                           Mortgagee may, in connection with the exercise of its
                           powers, join or concur with any person in any
                           transaction, scheme or arrangement whatsoever; and
                           the Mortgagor acknowledges that the respective powers
                           of the Mortgagee shall in no circumstances whatsoever
                           be suspended, waived or otherwise prejudiced by
                           anything other than an express waiver or variation in
                           writing.

                  (c)      The rights of the Mortgagee in relation to the
                           Mortgaged Property and the recovery of the Secured
                           Amounts (whether arising under this Deed of Mortgage,
                           the other Financing Documents or under the general
                           law) shall not be capable of being waived or varied
                           otherwise than by an express waiver or variation in
                           writing; and in particular any failure to exercise or
                           any delay in exercising any of such rights shall not
                           operate as a waiver or variation of that or any other
                           such right; any defective or partial exercise of any
                           such right shall not preclude any other or further
                           exercise of that or any other such right; and no act
                           or course of conduct or negotiation on its part or on
                           its behalf shall in any way preclude it from
                           exercising any such right or constitute a suspension
                           or any variation of any such right.

                  (d)      If any of the provisions of this Deed of Mortgage
                           becomes invalid, illegal or unenforceable in any
                           respect under any law, the validity, legality and
                           enforceability of the remaining provisions shall not
                           in any way be affected or impaired.

                  (e)      In any proceedings relating to this Deed of Mortgage
                           a statement as to any amount due to the Mortgagee or
                           the Trustee under the Financing Documents which is
                           certified as being correct by an officer or agent of
                           the Mortgagee shall, save in the case of manifest
                           error, be conclusive evidence that such amount is in
                           fact due and payable.

         9.2      Assignment

                  9.2.1    This Deed of Mortgage shall be binding upon and inure
                           to the benefit of each party hereto and its
                           successors in title and permitted assigns.

                  9.2.2    The Mortgagor shall not be entitled to assign or
                           transfer any of its rights, benefits or obligations
                           hereunder without the prior written consent of the
                           Mortgagee.

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       14
<PAGE>   26

                  9.2.3    The Mortgagee may assign or transfer all or any part
                           of its rights, benefits or obligations under this
                           Deed of Mortgage to any other person which is its
                           successor under the Financing Documents. Where the
                           Mortgagee assigns or transfers its obligations or any
                           part thereof, the Mortgagor shall execute such
                           documents as the Mortgagee may specify to release the
                           Mortgagee to the extent of the assignment or transfer
                           or with a view to perfecting such assignment or
                           transfer, or where necessary, shall execute further
                           security documentation in favour of the assignee or
                           transferee in like form to this Deed of Mortgage.

         9.3      Release of Security

                  Upon final and unconditional repayment of the Secured Amounts
                  in full and provided that no event of Default has occurred,
                  the Mortgagee shall promptly assign the Mortgaged Property to
                  the Mortgagor free of all Security Interests, encumbrances,
                  trusts, equities and claims whatsoever imposed by the
                  Mortgagee and the Mortgagee shall forthwith sign, seal,
                  deliver and complete all transfers, renunciations, proxies,
                  mandates, assignments, deeds and documents and do all acts and
                  things which the Mortgagor may reasonably specify to vest all
                  of the Mortgaged Property in the name of the Mortgagor or its
                  nominee.

         9.4      This Deed of Mortgage is governed by, and shall be construed
                  in accordance with, the laws of the Cayman Islands.

         9.5      (a)      The parties agree that the courts of the Cayman
                           Islands are to have exclusive jurisdiction to settle
                           any disputes which may arise in connection with the
                           legal relationships established by this Deed of
                           Mortgage (including, without limitation, claims for
                           set-off or counterclaim) or otherwise arising in
                           connection with this Deed of Mortgage.

                  (b)      The parties irrevocably waive any objections on the
                           grounds of venue of forum non conveniens or any
                           similar grounds.

                  The parties irrevocably consent to service of process by mail
                  or in any other manner permitted by the relevant law.

10.      NOTICES, ENGLISH LANGUAGE

         (a)      Each notice or other communication to be given or made
                  hereunder shall be in the English language and shall, unless
                  otherwise stated be made in writing as provided below.

         Any notice or other communication or document to be made or delivered
         by one person to another pursuant to this Deed of Mortgage shall
         (unless that other person has by fifteen days' written notice to the
         other specified another address and/or fax or telex number) be made or
         delivered to that other person at the following address, fax or telex
         number:

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       15
<PAGE>   27

                  The Mortgagor:

                           SEVEN SEAS PETROLEUM INC.
                                    5555 San Felipe, Suite 1700
                                    Houston, Texas 77056
                                    Attention: Larry A. Ray
                                    Fax No. (713) 621-9770

                           The Mortgagee:

                           CHESAPEAKE ENERGY CORPORATION
                                    6100 North Western Avenue
                                    Oklahoma City, Oklahoma 73118
                                    Attention: M. Rowland
                                    Fax No. (405) 879-9580

                  and shall be deemed to have been made or delivered when such
                  communication or document has been dispatched and the
                  appropriate answer back received (in the case of any
                  communication made by telex) or sent by fax to the fax number
                  of the party set out herein and when receipt is confirmed by
                  facsimile or telephone (in the case of any communication by
                  fax) or (in the case of any communication made by letter) when
                  left at that address or, as the case may be, three days after
                  being deposited in the post first class postage prepaid in an
                  envelope addressed to it at that address; Provided that any
                  communication or document to be made or delivered to the
                  Mortgagee shall be effective only when received by the
                  Mortgagee.

11.      COUNTERPARTS

This Deed of Mortgage may be executed in any number of counterparts and all such
counterparts taken together shall be deemed to constitute one and the same
instrument.

IN WITNESS WHEREOF this Deed of Mortgage has been executed and delivered as a
Deed the day and year first above written.

EXECUTED AS A DEED by                             )
the duly authorised representative                )
of SEVEN SEAS PETROLEUM INC.,                     )
in the presence of:                               )

EXECUTED AS A DEED by                             )
the duly authorised representative                )
of CHESAPEAKE ENERGY CORPORATION                  )
as Collateral Agent                               )
in the presence of:                               )

SEVEN SEAS PETROLEUM INC.
LEGAL MORTGAGE OVER SHARES

                                       16
<PAGE>   28

SCHEDULE 1

ORIGINAL SECURITIES

Company: ________________, a __________________ with its registered office at:

<Table>
<Caption>
Amount or number of
Original Securities                    Description of Original Securities
-------------------                    ----------------------------------
<S>                                   <C>
[____]                                 Shares of [        ] par value
</Table>

                                       17
<PAGE>   29
                        DEPOSIT ACCOUNT CONTROL AGREEMENT

                          SOUTHWEST BANK OF TEXAS, N.A.

THIS DEPOSIT ACCOUNT CONTROL AGREEMENT (this "Agreement") is made and entered
into as of July 23, 2001, by SEVEN SEAS PETROLEUM, INC., a Cayman Islands
exempted company limited by shares (the "Debtor"), having its principal office
at 5555 San Felipe, Suite 1700, Houston, Texas 77056, CHESAPEAKE ENERGY
CORPORATION, an Oklahoma corporation having an office at 6100 North Western,
Oklahoma City, Oklahoma 73118 ("Chesapeake"), as collateral agent for: (a)
itself as "Lender" under that certain Note Purchase and Loan Agreement dated
July 9, 2001; and (b) U.S. Trust Company of Texas, N.A. (the "Trustee") as
trustee under that certain Indenture dated July 23, 2001, between the Debtor and
the Trustee (the "Creditor") and Southwest Bank of Texas, N.A. ("Bank").

WHEREAS, Bank holds the deposit accounts set forth on schedule 1 attached hereto
for Debtor (the "Accounts"). Debtor has granted Creditor a security interest in
each of the Accounts and Creditor, Debtor and Bank are entering into this
Agreement to perfect Creditor's security interest in each of the Accounts.

                                    AGREEMENT

     In consideration of the foregoing, Bank, Debtor and Creditor agree as
follows:

         1. THE ACCOUNTS. Bank represents and warrants to Creditor that (a)
Schedule 1 is a complete and accurate statement of each of the Accounts as of
the date hereof; (b) Bank has not agreed with any party, other than Debtor and
Creditor, to comply with instructions concerning any of the Accounts; and (c)
Bank does not know of any claim to or interest in any of the Accounts, other
than the interests of Creditor and Debtor and any claim of Bank permitted under
Section 2 of this Agreement.

         2. PRIORITY OF LIEN. Bank waives any encumbrances, claims and rights of
setoff (or recoupment) it may have against any of the Accounts and agrees that,
except with respect to payment of its fees under the deposit agreement between
Debtor and Bank ("Customer Agreement"), it will not assert any banker's lien,
encumbrance, claim or setoff against any of the Accounts.

         3. CONTROL. Bank will comply with instructions, including, but not
limited to, instructions to close each of the Accounts and transmit the balances
of each of the Accounts to Creditor, given by Creditor concerning any of the
Accounts without the consent of Debtor. Neither Bank nor Debtor will agree with
any other person to comply with instructions concerning any of the Accounts
given by any person other than Debtor or Creditor.

         4. DEBTOR'S AUTHORITY TO WITHDRAW. Bank may comply with Debtor's
instructions concerning each of the Accounts until Creditor notifies Bank that
Creditor is exercising exclusive control over each of the Accounts. After
Creditor notifies Bank of Creditor's exclusive control, Bank shall stop
complying with any instructions given by the

<PAGE>   30

Debtor. Bank has no liability to Creditor for following Debtor's instructions
before Creditor notifies Bank of Creditor's exclusive control.

         5.  STATEMENTS AND CONFIRMATIONS. Bank will send copies of all
statements and other correspondence concerning each of the Accounts to Creditor
at Creditor's address at the top of this Agreement, to the attention of Marcus
C. Rowland, Executive Vice President.

         6.  RESPONSIBILITY OF BANK. Bank has no liability to Debtor for
complying with Creditor's notice of exclusive control or complying with
instructions concerning the Accounts given by Creditor. This Agreement does not
create any obligation or duty of Bank other than those expressly set forth
herein.

         7.  TAX REPORTING. All income, gain, expense and loss recognized in the
Accounts shall be reported to all taxing authorities under Debtor's name and
taxpayer identification number.

         8.  CUSTOMER AGREEMENT. The terms of this Agreement will prevail if
this Agreement conflicts with any other agreement between Bank and Debtor,
including, but not limited to, the Customer Agreement. Irrespective of any term
of the Customer Agreement, the Uniform Commercial Code of Texas shall govern the
Accounts.

         9.  TERMINATION. The obligations of Bank under this Agreement shall
continue until Creditor has notified Bank that Bank is released from further
obligation to comply with Creditor's instructions concerning the Accounts.

         10. THIS AGREEMENT. This Agreement is the entire agreement of the
parties with respect to the subject matter of this Agreement and supersedes and
discharges all prior agreements (written or oral) and negotiations and all
contemporaneous oral agreements concerning this subject matter.

         11. AMENDMENTS. No amendment, modification or termination of this
Agreement or waiver of any right shall be binding on any party unless it is in
writing and is signed by the party to be charged.

         12. SEVERABILITY. If any term of this Agreement is invalid or
unenforceable, the remainder of this Agreement shall be construed as if such
invalid or unenforceable term were omitted.

         13. SUCCESSORS. The terms of this Agreement are binding upon, and inure
to the benefit of, the parties and their respective successors or heirs and
personal representatives.

         14. NOTICES. Any notice or other communication required or permitted to
be given under this Agreement shall be in writing and deemed to have been
properly given when delivered in person, or when sent by telecopy or other
electronic means and electronic confirmation of error-free receipt is received
or 2 days after being sent by certified or registered United States mail, return
receipt requested, postage prepaid, addressed in the case of mail or electronic
transmission or delivered in the case of personal delivery to the party at the
address set

                                      -2-
<PAGE>   31

forth next to such party's name at the top of this Agreement. Any party may
change that party's address for notices in the manner set forth above.

         15. CHOICE OF LAW. This Agreement shall be governed by the internal
laws of the State of Texas.

         IN WITNESS WHEREOF, the parties hereto have executed or caused this
Agreement to be executed under seal as of the date and year first written above.

                                 SOUTHWEST BANK OF TEXAS, N.A.

                                 By
                                   ---------------------------------------------

                                 CHESAPEAKE ENERGY CORPORATION

                                 By
                                   ---------------------------------------------

                                 SEVEN SEAS PETROLEUM, INC.

                                 By
                                   ---------------------------------------------

                                      -3-
<PAGE>   32

                                  SCHEDULE "1"

<Table>
<S>                                             <C>
                 1. DEPOSIT ACCOUNT NO.         9159611
                 2. DEPOSIT ACCOUNT NO.         159611
                 3. DEPOSIT ACCOUNT NO.         172391
                 4. DEPOSIT ACCOUNT NO.         323241
                 5. DEPOSIT ACCOUNT NO.         323349
                 6. DEPOSIT ACCOUNT NO.         323276
                 7. DEPOSIT ACCOUNT NO.         323462
</Table>

                                       -4-

<PAGE>   33

                        DEPOSIT ACCOUNT CONTROL AGREEMENT

                              FIDELITY INVESTMENTS

         THIS DEPOSIT ACCOUNT CONTROL AGREEMENT (this "Agreement") is made and
entered into as of July 23, 2001, by SEVEN SEAS PETROLEUM, INC., a Cayman
Islands exempted company limited by shares (the "Debtor"), having its principal
office at 5555 San Felipe, Suite 1700, Houston, Texas 77056, CHESAPEAKE ENERGY
CORPORATION, an Oklahoma corporation having an office at 6100 North Western,
Oklahoma City, Oklahoma 73118 ("Chesapeake"), as collateral agent for: (a)
itself as "Lender" under that certain Note Purchase and Loan Agreement dated
July 9, 2001; and (b) U.S. Trust Company of Texas, N.A. (the "Trustee") as
trustee under that certain Indenture dated July 23, 2001, between the Debtor and
the Trustee (the "Creditor") and Fidelity Investments ("Fidelity").

         WHEREAS, Fidelity holds Deposit Account No. 503276347 for Debtor (the
"Account"). Debtor has granted Creditor a security interest in the Account and
Creditor, Debtor and Fidelity are entering into this Agreement to perfect
Creditor's security interest in the account.

                                    AGREEMENT

         In consideration of the foregoing, Fidelity, Debtor and Creditor agree
as follows:

         1. THE ACCOUNT. Fidelity represents and warrants to Creditor that (a)
Schedule 1 is a complete and accurate statement of the Account as of the date
hereof, (b) Fidelity has not agreed with any party, other than Debtor and
Creditor, to comply with instructions concerning the Account and Fidelity does
not know of any claim to or interest in the Account, other than the interests of
Creditor and Debtor and any claim of Fidelity permitted under Section 2.

         2. PRIORITY OF LIEN. Fidelity waives any encumbrances, claims and
rights of setoff (or recoupment) it may have against the Account and agrees
that, except with respect to payment of its fees under the deposit agreement
between Debtor and Fidelity ("Customer Agreement"), it will not assert any
banker's lien, encumbrance, claim or setoff against the Account.

         3. CONTROL. Fidelity will comply with instructions, including, but not
limited to, instructions to close the Account and transmit the Account balance
to Creditor, given by Creditor concerning the Account without the consent of
Debtor. Neither Fidelity nor Debtor will agree with any other person to comply
with instructions concerning the Account given by any person other than Debtor
or Creditor.

         4. DEBTOR'S AUTHORITY TO WITHDRAW. Fidelity may comply with Debtor's
instructions concerning the Account until Creditor notifies Fidelity that
Creditor is exercising exclusive control over the Account. After Creditor
notifies Fidelity of Creditor's exclusive control, Fidelity shall stop complying
with any instructions given by the Debtor. Fidelity has no liability to Creditor
for following Debtor's instructions before Creditor notifies Fidelity of
Creditor's exclusive control.

<PAGE>   34

         5.  STATEMENTS AND CONFIRMATIONS. Fidelity will send copies of all
statements and other correspondence concerning the Account to Creditor at
Creditor's address at the top of this Agreement, to the attention of Marcus C.
Rowland, Executive Vice President.

         6.  RESPONSIBILITY OF FIDELITY. Fidelity has no liability to Debtor for
complying with Creditor's notice of exclusive control or complying with
instructions concerning the Account given by Creditor. This Agreement does not
create any obligation or duty of Fidelity other than those expressly set forth
herein.

         7.  TAX REPORTING. All income, gain, expense and loss recognized in the
Account shall be reported to all taxing authorities under Debtor's name and
taxpayer identification number.

         8.  CUSTOMER AGREEMENT. The terms of this Agreement will prevail if
this Agreement conflicts with any other agreement between Fidelity and Debtor,
including, but not limited to, the Customer Agreement. Irrespective of any term
of the Customer Agreement, the Uniform Commercial Code of Texas shall govern the
Account.

         9.  TERMINATION. The obligations of Fidelity under this Agreement shall
continue until Creditor has notified Fidelity that Fidelity is released from
further obligation to comply with Creditor's instructions concerning the
Account.

         10. THIS AGREEMENT. This Agreement is the entire agreement of the
parties with respect to the subject matter of this Agreement and supersedes and
discharges all prior agreements (written or oral) and negotiations and all
contemporaneous oral agreements concerning this subject matter.

         11. AMENDMENTS. No amendment, modification or termination of this
Agreement or waiver of any right shall be binding on any party unless it is in
writing and is signed by the party to be charged.

         12. SEVERABILITY. If any term of this Agreement is invalid or
unenforceable, the remainder of this Agreement shall be construed as if such
invalid or unenforceable term were omitted.

         13. SUCCESSORS. The terms of this Agreement are binding upon, and inure
to the benefit of, the parties and their respective successors or heirs and
personal representatives.

         14. NOTICES. Any notice or other communication required or permitted to
be given under this Agreement shall be in writing and deemed to have been
properly given when delivered in person, or when sent by telecopy or other
electronic means and electronic confirmation of error-free receipt is received
or 2 days after being sent by certified or registered United States mail, return
receipt requested, postage prepaid, addressed in the case of mail or electronic
transmission or delivered in the case of personal delivery to the party at the
address set forth next to such party's name at the top of this Agreement. Any
party may change that party's address for notices in the manner set forth above.

                                       -2-
<PAGE>   35

         15. CHOICE OF LAW. This Agreement shall be governed by the internal
laws of the State of Texas.

                  IN WITNESS WHEREOF, the parties hereto have executed or caused
this Agreement to be executed under seal as of the date and year first written
above.

                                FIDELITY INVESTMENTS

                                By
                                  ----------------------------------------------

                                CHESAPEAKE ENERGY CORPORATION

                                By
                                  ----------------------------------------------

                                SEVEN SEAS PETROLEUM, INC.

                                By
                                  ----------------------------------------------

                                      -3-
<PAGE>   36

                 Escrow Agreement - Existing Indenture Interest

    Deliberately omitted; incorporated by reference to Exhibit 10(G) hereof.

<PAGE>   37

                     Escrow Agreement - Sub-Thrust Test Well

     Deliberately omitted; incorporated by reference to Exhibit 10(H) hereof.

<PAGE>   38

                               Security Agreement

    Deliberately omitted; incorporated by reference to Exhibit 10(C) hereof.

<PAGE>   39

                    Exhibit E - Registration Rights Agreement

     Deliberately omitted; incorporated by reference to Exhibit 4(D) hereof.

<PAGE>   40
                     COLLATERAL SHARING AND AGENCY AGREEMENT

         THIS COLLATERAL SHARING AND AGENCY AGREEMENT (this "Agreement") is made
effective the 23rd day of July, 2001, among CHESAPEAKE ENERGY CORPORATION, an
Oklahoma corporation ("Chesapeake"), U.S. TRUST COMPANY OF TEXAS, N.A., as
trustee under that certain Indenture dated as of July 23, 2001 (the "Trustee"
and collectively with Chesapeake, the "Lenders"), and CHESAPEAKE ENERGY
CORPORATION, an Oklahoma corporation in its capacity as collateral agent under
this Agreement (the "Collateral Agent").

                                   WITNESSETH:

         WHEREAS, Chesapeake and Seven Seas Petroleum Inc., a Cayman Islands
exempted company limited by shares (the "Company"), have entered into that
certain Note Purchase and Loan Agreement dated July 9, 2001 (the "Loan
Agreement"), pursuant to which Chesapeake purchased from the Company a 12%
Senior Secured Note due 2004 in the principal amount of TWENTY-TWO MILLION FIVE
HUNDRED THOUSAND DOLLARS ($22,500,000.00) (the "Chesapeake Note"); and

         WHEREAS, the Trustee and the Company have entered into that certain
Indenture dated July 23, 2001 (the "Indenture"), pursuant to which the Trustee
is trustee for the holders of the Company's 12% Senior Secured Series B Notes
which will be paid with the proceeds from and/or exchanged for the Company's 12%
Senior Secured Series A Notes in the aggregate principal amount of TWENTY-TWO
MILLION FIVE HUNDRED THOUSAND DOLLARS ($22,500,000.00) (the "Senior Notes" and,
together with the Chesapeake Note, the "Notes"); and

         WHEREAS, Chesapeake and the Company have entered into those certain
collateral security agreements described on Schedule "1" attached hereto and
made a part hereof (the "Collateral Agreements"), pursuant to which the Company
has pledged to Chesapeake, as collateral agent, the collateral described in
Schedule "2" attached hereto and made a part hereof (the "Collateral") and
granted Chesapeake, as collateral agent, a first priority security interest in
the Collateral;

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties agree as follows:

1. Referenced Agreement. This Agreement is the "Collateral Sharing Agreement"
referred to in any of the Collateral Agreements. Although all parties to the
Collateral Agreements have notice of the terms and provisions of this Agreement,
none of such parties (other than the Lenders), or any other entity or person,
shall have any rights, as third party beneficiary or otherwise, by, through or
under this Agreement and no agreement, statement or provision of this Agreement
shall be used by any person or entity, except the Lenders, for any purpose
whatsoever.

2. Governing Agreement. Anything in the Collateral Agreements or the Notes to
the contrary notwithstanding, the rights of the Lenders, as such rights affect
the Lenders inter se, in connection with the Collateral and under the Collateral
Agreements and the Notes are subject to this Agreement.

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.

<PAGE>   41

3. Appointment of Collateral Agent. Each of the Lenders hereby irrevocably
designates and appoints Chesapeake as such Lender's Collateral Agent and each
Lender irrevocably authorizes the Collateral Agent, in such capacity, to take
such action on its behalf under the provisions of this Agreement and the
Collateral Agreements and to exercise such powers and perform such duties as are
expressly delegated to the Collateral Agent by the terms of this Agreement and
the Collateral Agreements, together with such other powers as are reasonably
incidental thereto. Chesapeake agrees to act as Collateral Agent for the Lenders
to the extent provided under the Collateral Agreements, all on the terms and
conditions set forth in this Agreement. In its capacity as Collateral Agent,
Chesapeake is herein and in the Collateral Agreements sometimes called the
"Collateral Agent." Notwithstanding any provision to the contrary elsewhere in
this Agreement or in the Collateral Agreements, the Collateral Agent will have
no duties or responsibilities, except those expressly set forth herein, will
have no fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities will be read
into this Agreement or any of the Collateral Agreements or otherwise exist
against the Collateral Agent. The Collateral Agent may resign upon thirty (30)
days' written notice to the Lenders and in such event the Lenders shall promptly
appoint a successor Collateral Agent mutually acceptable to Chesapeake and the
Trustee.

4. Undertaking of Collateral Agent. The Collateral Agent, by itself or through
any nominee or designee party to any Collateral Agreement or through other
agents appointed to act on behalf of the Collateral Agent, as the case may be,
is hereby authorized and hereby undertakes to take all actions and exercise all
powers specifically delegated to the Collateral Agent by the terms hereof and of
the Collateral Agreements, together with all such powers as shall be reasonably
incidental thereto, and to hold the Collateral pro rata for the benefit of the
Lenders in accordance with their respective Specified Percentage. As used in
this Agreement: (a) "Indebtedness" means the principal balance of each of the
Notes plus interest, fees, expenses and any Additional Amounts (as defined in
the Indenture or the Chesapeake Note) in connection with the Notes, the Loan
Agreement, the Indenture, the Collateral Agreements and the other documents
executed in connection therewith (collectively, the "Debt Documents") and any
and all additional obligations of the Company to the Lenders arising under or
pursuant to the Debt Documents; and (b) "Specified Percentage" means as of the
date of any determination thereof, the amount of such Lender's Indebtedness
divided by the aggregate Indebtedness owing to both Lenders.

5. Capacity of Collateral Agent. The relationship between the Collateral Agent
and the Lenders is and shall be that of principal and agent only, and nothing
herein shall be construed to constitute the Collateral Agent a trustee for a
holder of any of the Indebtedness or of a participation therein, nor to impose
on the Collateral Agent duties and obligations other than those expressly
provided for herein and in the Collateral Agreements or as the Lenders shall
otherwise jointly direct. Each Lender, their respective successors and assigns
and each subsequent holder of any of the Indebtedness by its acceptance thereof,
agrees that the Collateral Agent and any nominee, designee, trustee or agent
acting for the Collateral Agent will be indemnified (to the extent not
reimbursed by the Company) with the first proceeds from the Collateral from and
against any and all losses, claims, damages, liabilities, and expenses which may
be imposed on, incurred by, or asserted against the Collateral Agent, or any
such nominee, designee, trustee or agent, in any way related to or arising out
of its status as Collateral Agent under this Agreement or any of the Collateral
Agreements or in any way related to or arising out of any such nominee,
designee, trustee or agent so acting for the Collateral Agent, except any such
losses, claims, damages, liabilities, or expenses resulting from the

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 2 -

<PAGE>   42

gross negligence or willful misconduct of the Collateral Agent or any such
nominee, designee, trustee or agent.

6. Reliance by Collateral Agent. The Collateral Agent will be entitled to rely,
and will be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed by
the Collateral Agent to be genuine and correct and to have been signed, sent or
made by the proper person or persons and upon advice and statements of legal
counsel (including counsel to the Company), independent accountants and other
experts selected by the Collateral Agent. The Collateral Agent will be fully
justified in failing or refusing to take any action under this Agreement or any
of the Debt Documents unless it shall first receive such advice or concurrence
of the Lenders as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense that may
be incurred by the Collateral Agent by reason of taking or continuing to take
any such action.

7. Non-reliance on Collateral Agent. Each Lender expressly acknowledges that
neither the Collateral Agent nor any of its respective officers, directors,
employees, agents, attorneys-in-fact or affiliates have made any representations
or warranties to such Lender and that no act by the Collateral Agent hereafter
taken, including any review of the affairs of the Company or any affiliate shall
be deemed to constitute any representation or warranty by the Collateral Agent
to any Lender. Each Lender represents to the Collateral Agent that it has not
relied on the Collateral Agent or any other Lender in making its decision to
enter into this Agreement and the Debt Documents to which it is a party. The
Collateral Agent will not have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of
the Company or any affiliate of the Company that may come into the possession of
the Collateral Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.

8. Collateral Agent's Individual Capacity. The Collateral Agent and its
affiliates may make loans to and generally engage in any kind of business with
the Company and its affiliates as though the Collateral Agent were not an agent
hereunder. The Collateral Agent will have the same rights and powers under this
Agreement and the Debt Documents to which it is a party as any Lender and may
exercise the same as though it were not the Collateral Agent, and the terms
"Lender" and "Lenders" shall include the Collateral Agent in its individual
capacity.

9. Proceeds of Collateral. Any proceeds of the Collateral obtained by the
Collateral Agent from time to time shall be distributed by the Collateral Agent
to the Lenders in accordance with their respective Specified Percentage for
application pursuant to the Collateral Agreements. Any expenses incurred by the
Collateral Agent, or by any of its nominees, designees, trustees or agents,
including, without limitation, reasonable attorneys' fees and legal expenses, in
connection with its enforcement of or foreclosure under the Collateral
Agreements, or any of them, shall (to the extent not otherwise paid by the
Company) be borne pro rata by the Lenders on the basis of their respective
Specified Percentage.

10. Care of Collateral. The Collateral Agent shall exercise the same degree of
care in handling the Collateral as the Collateral Agent would exercise in
handling similar transactions wholly for the Collateral Agent's own account.
Neither the Collateral Agent, the Lenders nor any director, officer, employee,
nominee, designee, trustee or agent of either the Collateral Agent or the
Lenders (the

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 3 -

<PAGE>   43

"Lender Parties"), however, will be liable for action taken or omitted by any of
them hereunder or under the Collateral Agreements in connection with the
administration, enforcement and collection of the Notes or the Collateral
Agreements and the rights and remedies of the Collateral Agent and the Lenders
thereunder, except for their own willful misconduct or gross negligence. In
addition, none of the Lender Parties will be responsible for: (a) any recitals,
warranties or representations in the Collateral Agreements; (b) the execution,
genuineness, validity, effectiveness or enforceability of the Collateral
Agreements or the Collateral; or (c) any action taken or omitted pursuant to any
communication or document which they believe in good faith to be genuine or to
have been presented by a proper person. Each of the Lender Parties will be
entitled conclusively, without liability therefor, to rely upon advice of
counsel concerning legal matters. The Collateral Agent will not be under any
obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement or any of the Debt Documents, or to inspect the properties, books or
records of the Company.

11. Defaults; Realization of Collateral. Upon the occurrence of an event of
Default under the Loan Agreement or the Indenture which is not cured or waived
in accordance with the terms thereof, the Collateral Agent will forthwith take
such steps as it may deem appropriate or useful to realize upon the Collateral.

12. Further Assurances. Each Lender agrees to do such further acts and things
and to execute and deliver such additional agreements, powers and instruments,
as the Collateral Agent may reasonably request to carry into effect the terms,
provisions and purposes of this Agreement, or to better assure and confirm unto
the Collateral Agent its respective rights, powers and remedies hereunder, or to
facilitate the realization of the Collateral by the Collateral Agent.

13. Notices of Default. If any Lender at any time shall acquire actual knowledge
of any default under the Loan Agreement, the Indenture or any of the Collateral
Agreements, such Lender will promptly give notice thereof to the other Lender.

14. Amendment and Termination. This Agreement may be amended or terminated by
the Lenders, acting together, at any time (without the consent of the Company or
any other person) but will otherwise remain in full force and effect until the
payment in full of the Notes or the other termination of the Collateral
Agreements.

15. Payments. Each of the Lenders agree that the Lenders will share all payments
received from realization on any of the Collateral with each other Lender in
accordance with each Lender's Specified Percentage at the time of receipt of
such payments.

16. Notices. Any notice, demand or communication required or permitted to be
given by any provision of this Agreement will be in writing and will be deemed
to have been given and received when delivered personally or by telefacsimile to
the party designated to receive such notice, or on the date following the day
sent by overnight courier, or on the third (3rd) business day after the same is
sent by certified mail, postage and charges prepaid, directed to the addresses
of the parties set forth on the signature pages hereto or to such other or
additional addresses as any party might designate by written notice to the other
parties.

17. Governing Law; Severability. This Agreement will be governed by and
construed in

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 4 -

<PAGE>   44

accordance with the internal laws of the State of Oklahoma. If any provision of
this Agreement is prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

18. Successors and Assigns. This Agreement will be binding upon and will inure
to the benefit of the all permitted successors and assigns of the parties.

         IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year first above written.

                                   CHESAPEAKE ENERGY CORPORATION,
                                   an Oklahoma corporation

                                   By
                                     ----------------------------------------
                                   Name:  Jennifer M. Grigsby
                                          -----------------------------------
                                   Title:  Corporate Secretary
                                           ----------------------------------

                                   (the "Collateral Agent and a "Lender")

                                   Notice Addresses:

                                   Chesapeake Energy Corporation
                                   Attention: Marcus C. Rowland
                                   6100 North Western
                                   Oklahoma City, Oklahoma  73118
                                   Telefacsimile: (405) 879-9580

                                   and

                                   Commercial Law Group, P.C.
                                   Attention: Ray Lees
                                   2725 Oklahoma Tower
                                   210 Park Avenue
                                   Oklahoma City, Oklahoma  73102
                                   Telefacsimile:  (405) 232-5553

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 5 -

<PAGE>   45

                                   U.S. TRUST COMPANY OF TEXAS, N.A.

                                   By
                                     ----------------------------------------
                                   Name
                                       --------------------------------------
                                   Title
                                        -------------------------------------

                                   (the "Trustee" and a "Lender")

                                   Notice Address:

                                   U.S. Trust Company of Texas, N.A.
                                   Attention: Corporate Trust Division
                                   2001 Ross Avenue, Suite 2700
                                   Dallas, Texas 75201
                                   Telefacsimile: (214) 754-1303

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 6 -

<PAGE>   46

                                  SCHEDULE "1"
                              COLLATERAL AGREEMENTS

1.       Security Agreement dated effective July 23, 2001 between the Company
         and the Collateral Agent.

2.       Deposit Account Control Agreement dated effective July 23, 2001 among
         the Company, the Collateral Agent and Southwest Bank of Texas, N.A.

3.       Deposit Account Control Agreement dated effective July 23, 2001 among
         the Company, the Collateral Agent and Fidelity Investments.

4.       Escrow Agreement (Existing Indenture Interest) dated effective July 23,
         2001 among the Company, the Collateral Agent and Southwest Bank of
         Texas, N.A.

5.       Escrow Agreement (Sub-Thrust Test Well) dated effective July 23, 2001
         among the Company, the Collateral Agent and Southwest Bank of Texas,
         N.A.

6.       Legal Mortgages Over Shares dated effective July 23, 2001 between the
         Company and the Collateral Agent.

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 7 -

<PAGE>   47

                                  SCHEDULE "2"
                                   COLLATERAL

1.       All of the issued and outstanding shares of capital stock and all
         proceeds, products, additions to, replacements of, substitutions for
         and accessions with respect thereto of:

                  1.1      Seven Seas Petroleum Holdings Inc. (CI)
                  1.2      Seven Seas Petroleum Turkey Inc. (BC)
                  1.3      Seven Seas Resources Australia Inc. (BC)
                  1.4      Seven Seas Petroleum USA Inc. (DA)
                  1.5      Seven Seas Petroleum Australia Inc. (CI)
                  1.6      Seven Seas Petroleum PNG Inc. (CI)
                  1.7      Seven Seas Petroleum Argentina  Inc. (CI)
                  1.8      Seven Seas Petroleum Mediterranean  Inc. (CI)
                  1.9      Seven Seas Petroleum Turkey  Inc. (CI)
                  1.10     Seven Seas Petroleum Colombia  Inc. (CI)
                  1.11     Petrolinson SA (Pan)
                  1.12     GHK Company Colombia (OK)
                  1.13     Guaduas Pipeline Company (CI)

2.       The following collateral covered pursuant to the Security Agreement:

                  2.1      All of the Company's Accounts of any kind whether now
                           existing or hereafter arising; all Escrow and Deposit
                           Accounts; all chattel papers, documents and
                           instruments relating to the Accounts and the Escrow
                           and Deposit Accounts; and all rights now or hereafter
                           existing in and to all security agreements, leases,
                           and other contracts securing or otherwise relating to
                           any Accounts, Escrow and Deposit Accounts or any such
                           chattel papers, documents and instruments;

                  2.2      All of the Company's Equipment in all of its forms,
                           whether now owned or hereafter acquired and wherever
                           located; all parts thereof and all accessions or
                           additions thereto, whether now owned or hereafter
                           acquired;

                  2.3      All of the Company's general intangibles of any kind
                           whether now existing or hereafter arising (herein
                           called the "General Intangibles"); all chattel
                           papers, documents and instruments relating to the
                           General Intangibles; and all rights now or hereafter
                           existing in and to all security agreements, leases,
                           licenses, permits, patents, trademarks, copyrights,
                           distribution agreements and contracts securing or
                           otherwise relating to any General Intangibles or any
                           such chattel papers, documents and instruments and
                           all of the Company's lien rights against other
                           persons whether statutory, contractual or by common
                           law;

                  2.4      All of the Company's Inventory in all of its forms,
                           whether now owned or

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 8 -

<PAGE>   48

                           hereafter acquired and wherever located, and all
                           accessions or additions thereto and products thereof,
                           whether now owned or hereafter acquired;

                  2.5      Without in any way limiting or modifying the
                           foregoing in any respect, all of the Company's goods,
                           chattels, business records, contracts, contract
                           rights, advertising agreements, tax refunds,
                           documents of title, fixtures, insurance policies and
                           proceeds, patents, trademarks, service marks, logos,
                           trade names, copyrights and applications therefor,
                           licenses, licensing fees, permits, approvals,
                           consents, certificates, stock, surveys, engineering
                           reports, tools, landscaping, machinery, furniture,
                           furnishings, business machines, appliances, vehicles,
                           trailers, rolling stock, deposits, security deposits,
                           money, securities, claims, demands, causes of action,
                           refunds, rebates, income and all other tangible and
                           intangible real, personal or mixed property whether
                           now owned or hereafter acquired;

                  2.6      Any additional properties or assets from time to time
                           delivered to or deposited with the Collateral Agent
                           as security for the Secured Indebtedness or otherwise
                           pursuant to the terms of this Agreement; and

                  2.7      All proceeds, products, additions to, replacements
                           of, substitutions for and accessions of any and all
                           of the items described in subparagraphs 2.1, 2.2,
                           2.3, 2.4, 2.5 and 2.6 hereof.

COLLATERAL SHARING AND AGENCY AGREEMENT
SEVEN SEAS PETROLEUM INC.
                                      - 9 -

<PAGE>   49

                             LOAN PURCHASE AGREEMENT

                  THIS AGREEMENT is entered into effective July 23, 2001, among
CHESAPEAKE ENERGY CORPORATION, an Oklahoma corporation ("Chesapeake"), ROBERT A.
HEFNER III, an individual ("Hefner"), and RAMIIILAJ, A LIMITED PARTNERSHIP, an
Oklahoma limited partnership ("Ramiiilaj").

                                   BACKGROUND

                  WHEREAS, Chesapeake, Seven Seas Petroleum Inc., a Cayman
Islands exempted company limited by shares (the "Borrower") and all of the
subsidiaries of the Borrower entered into that certain Note Purchase Agreement
and Loan Agreement (the "Loan Agreement") which provides for the extension of
credit (the "CEC Loan") by Chesapeake to the Borrower in the amount of
Twenty-Two Million Five Hundred Thousand Dollars ($22,500,000.00) as evidenced
by that certain promissory note of even date herewith (the "Note") and the
related issuance of warrants (the "Warrants") to purchase up to Twelve Million
Six Hundred Twelve Thousand One Hundred Forty (12,612,140) of the Borrower's
ordinary shares, representing twenty percent (20%) of the outstanding ordinary
shares of the Borrower on a fully diluted basis;

                  WHEREAS, Hefner and Ramiiilaj (jointly and severally, the
"Hefner Parties") are affiliates of the Borrower and under the terms of the Loan
Agreement agreed with others to purchase the Borrower's 12% Series B Senior
Secured Notes (the "Series B Notes") in the amount of Twenty-Two Million Five
Hundred Thousand Dollars ($22,500,000.00) as a condition to Chesapeake's
obligation to extend the Loan;

                  WHEREAS, under the terms of the Loan Agreement, the Borrower
was required to offer (the "Rights Offering") to the Borrower's stockholders the
right to purchase an approximate pro rata share of the Corporation's Series A
Senior Secured Notes due 2004 in the aggregate principal amount of Twenty-Two
Million Five Hundred Thousand Dollars ($22,500,000.00) (the "Series A Notes")
coupled with detachable warrants to purchase the Borrower's ordinary shares all
on terms substantially similar to the terms of the Loan Agreement with the
proceeds to be used to redeem all of the Series B Notes;

                  WHEREAS, to the extent that the Series A Notes are not fully
subscribed for in the Rights Offering, the holders of the Series B Notes are
required to exchange all of such parties' Series B Notes for Series A Notes and
the related warrants; and

                  WHEREAS, in order to induce Chesapeake to enter into and
perform the Loan Agreement the Hefner Parties agreed at Chesapeake's request as
provided herein to purchase a portion of the CEC Loan (together with a pro rata
portion of the Warrants) to the extent necessary to cause the principal amount
of the Series A Notes and the CEC Loan held by the Hefner Parties to equal up to
a minimum amount of Ten Million Dollars ($10,000,000.00).

                  NOW THEREFORE, in consideration of the premises and the mutual
covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

SEVEN SEAS PETROLEUM INC.                                           Exhibit "G"
LOAN PURCHASE AGREEMENT                                       Page 1 of 6 Pages

<PAGE>   50

1. Purchase Agreement. Subject to the terms and conditions of this Agreement and
in consideration of Chesapeake entering into and performing the terms of the
Loan Agreement, the Hefner Parties hereby unconditionally and irrevocably agree
to purchase from Chesapeake a portion of the unpaid principal balance of the CEC
Loan (the "Purchased Portion") equal to the lesser of: (a) the principal portion
of the CEC Loan requested by Chesapeake to be purchased by the Hefner Parties as
provided in this Agreement; or (b) Ten Million Dollars ($10,000,000.00) reduced
by the principal amount of the Series A Notes held by the Hefner Parties. In
addition to the Purchased Portion of the CEC Loan to be purchased by the Hefner
Parties pursuant to the foregoing sentence, the Hefner Parties will purchase all
accrued and unpaid interest attributable to the Purchased Portion as of the
Closing Date (as hereinafter defined). In addition, to the extent that the
Hefner Parties actually purchase any portion of the CEC Loan under this
Agreement, Chesapeake agrees that simultaneously with such purchase Chesapeake
will convey to the Hefner Parties a portion of the Warrants equal to the
Purchased Portion divided by Twenty-Two Million Five Hundred Thousand Dollars
($22,500,000.00), rounded to the nearest whole Warrant.

2. Purchase Price. The purchase price of the Purchased Portion of the CEC Loan
will be the amount equal to the Purchased Portion, plus any accrued and unpaid
interest on the Purchased Portion plus any unpaid sums expended by Chesapeake in
connection with the CEC Loan (the "Purchase Price"). The Purchase Price will be
paid by the Hefner Parties in immediately available United States Dollars on the
day of closing of the purchase of the Purchased Portion.

3. Sale Procedure. Notice of the exercise by Chesapeake of its rights hereunder
to sell the Purchased Portion to the Hefner Parties and the consummation of such
sale will be performed as follows:

         3.1      Notices. On consummation of the purchase of the Series A Notes
                  by the Hefner Parties in the Rights Offering, the Hefner
                  Parties shall notify Chesapeake (the "Offer Notice") as to the
                  completion of the Rights Offering and the principal amount of
                  the Series A Notes purchased by the Hefner Parties for their
                  own account (excluding any Series A Notes held as agent for
                  any other parties). Chesapeake shall have fifteen (15) days
                  after receipt of the Offer Notice (the "Option Period") to
                  elect to require the Hefner Parties to purchase a portion of
                  the CEC Loan as above provided. Chesapeake election shall be
                  made by giving written notice (the "Election Notice") to the
                  Hefner Parties within the Option Period. The Election Notice
                  shall specify (i) the amount of the Purchased Portion and (ii)
                  a date for the Closing (hereafter defined), which shall not be
                  sooner than two (2) days nor later than five (5) days after
                  the Election Notice is given.

         3.2      Closing. The consummation of the purchase and sale of the
                  Purchased Portion and the portion of the Warrants to the
                  Hefner Parties (the "Closing") will be held at the offices of
                  Commercial Law Group, P.C., 210 Park Avenue, Suite 2725,
                  Oklahoma City, Oklahoma, at 10:00 A.M. on the date specified
                  by Chesapeake in the Election Notice (the "Closing Date").

         3.3      Deliveries. At the Closing, Chesapeake will deliver to the
                  Hefner Parties: (1) a participation certificate evidencing the
                  Purchased Portion of the CEC Loan or such

SEVEN SEAS PETROLEUM INC.                                           Exhibit "G"
LOAN PURCHASE AGREEMENT                                       Page 2 of 6 Pages

<PAGE>   51

                  other evidence as is reasonably acceptable to the parties
                  evidencing the Hefner Parties' ownership of the Purchased
                  Portion; and (b) the required portion of the Warrants. The
                  Hefner Parties will deliver to Chesapeake in immediately
                  available funds the Purchase Price. The parties hereby agree:
                  (x) the Purchased Portion and the Warrants to be assigned
                  under this Agreement will be assigned "AS IS WHERE IS" without
                  any representation, warranty, recourse or liability in any
                  event; (y) to use reasonable efforts to cause the Borrower to
                  issue a separate warrant agreement for the warrants to be
                  assigned to the Hefner Parties; and (z) in the event that a
                  separate warrant agreement is not issued, to take such actions
                  as may be reasonable for Chesapeake to hold the Warrants to be
                  assigned hereunder as agent for the Hefner Parties.

4. Voting Agreement. Under the terms of the Shareholders Rights Agreement of
even date herewith among Chesapeake and the Borrower, Chesapeake has the right
to request representation on the Borrower's board of directors by persons
designated by Chesapeake. In the event that Chesapeake exercises such rights,
each of the Hefner Parties agrees to take all action necessary including, but
not limited to, the voting of such Hefner Party's capital stock, the execution
of written consents, the calling of special meetings, the removal of directors,
the filling of vacancies on the Borrower's board of directors, the waiving of
notice and the attending of meetings, so as to cause Chesapeake's designees to
be voted or appointed to the Borrower's board of directors. The foregoing
expressly includes causing the foregoing actions to be taken or performed by any
affiliates of the Hefner Parties. Notwithstanding the foregoing, Hefner shall
not be required to take any action that, in the opinion of counsel, would
violate his fiduciary duties to the Borrower and its shareholders.

5. Miscellaneous. It is further agreed as follows:

         5.1      Default. The parties agree that a violation by any party of
                  the terms of this Agreement cannot be adequately measured or
                  compensated in money damages and that any breach or threatened
                  breach of this Agreement by a party to this Agreement would do
                  irreparable injury to the non-breaching party. The parties,
                  therefore, agree that in the event of any breach or threatened
                  breach by a party to this Agreement of the terms and
                  conditions set forth in this Agreement, the non-breaching
                  party will be entitled, in addition to any and all other
                  rights and remedies that it may have in law or in equity, to
                  apply for and obtain injunctive relief requiring the breaching
                  party to be restrained from any such breach, or threatened
                  breach or to refrain from a continuation of any actual breach.

         5.2      Headings. The section headings in, and the table of contents
                  of, this Agreement are for convenience of reference only and
                  are not part of the substance of this Agreement. References in
                  this Agreement to paragraphs are references to the paragraphs
                  of this Agreement unless otherwise specified.

         5.3      Severability. The parties to this Agreement expressly agree
                  that it is not their intention to violate any public policy,
                  law, statutory or common law rules or the regulations or
                  decisions of any governmental or regulatory body. If any
                  provision of this Agreement is judicially or administratively
                  interpreted or construed as being in

SEVEN SEAS PETROLEUM INC.                                           Exhibit "G"
LOAN PURCHASE AGREEMENT                                       Page 3 of 6 Pages

<PAGE>   52

                  violation of any such policy, law, rule, regulation or
                  decision, the provision causing such violation will be
                  inoperative (and in lieu thereof there will be inserted such
                  provision as may be valid and consistent with the intent of
                  the parties under this Agreement) and the remainder of this
                  Agreement, as amended, will remain binding upon the parties to
                  this Agreement, unless the inoperative provision would cause
                  enforcement of the remainder of this Agreement to be
                  inequitable under the circumstances.

         5.4      Notices. Any notice, demand or communication required or
                  permitted to be given by any provision of this Agreement will
                  be in writing and will be deemed to have been given and
                  received when delivered personally or by telefacsimile to the
                  party designated to receive such notice, or on the date
                  following the day sent by overnight courier, or on the third
                  (3rd) business day after the same is sent by certified mail,
                  postage and charges prepaid, directed to the addresses of the
                  parties set forth below or to such other address as each party
                  may designate for itself by like notice:

<Table>
<S>                                          <C>
                  To Chesapeake:             Chesapeake Energy Corporation
                                             Attention: Marcus C. Rowland
                                             6100 North Western
                                             Oklahoma City, Oklahoma  73118
                                             Telefacsimile: (405) 879-9580

                                             with a copy to

                                             Commercial Law Group, P.C.
                                             Attention: Ray Lees
                                             2725 Oklahoma Tower
                                             210 Park Avenue
                                             Oklahoma City, Oklahoma  73102
                                             Telefacsimile:  (405) 232-5553

                  To the Hefner Parties:     Mr. Robert A. Hefner III
                                             Ramiiilaj, A Limited Partnership
                                             c/o Robert S. May
                                             6305 Waterford Blvd., Suite 470
                                             Oklahoma City, Oklahoma 73118
                                             Telefacsimile:  (405) 858-9898

                                             with copy to:

                                             Gary F. Fuller
                                             McAfee & Taft, A Professional Corporation
                                             10th Floor, Two Leadership Square
                                             211 North Robinson
                                             Oklahoma City, Oklahoma 73102
                                             Telefacsimile:  (405) 235-0439
</Table>

SEVEN SEAS PETROLEUM INC.                                           Exhibit "G"
LOAN PURCHASE AGREEMENT                                       Page 4 of 6 Pages
<PAGE>   53

         5.5      Successors. This Agreement will be binding upon and inure to
                  the benefit of the parties and their respective successors and
                  permitted assigns.

         5.6      Remedies. The failure of any party to enforce any right or
                  remedy under this agreement, or to enforce any such right or
                  remedy promptly, will not constitute a waiver thereof, nor
                  give rise to any estoppel against such party, nor excuse any
                  other party from its obligations under this Agreement. Any
                  waiver of any such right or remedy by any party must be in
                  writing and signed by the party against which such waiver is
                  sought to be enforced, will be narrowly construed only as a
                  waiver of the particular matter stated to be waived, and will
                  not constitute a continuing waiver.

         5.7      Survival. All warranties, representations and covenants made
                  by any party in this Agreement or in any certificate or other
                  instrument delivered by such party or on its behalf under this
                  Agreement will be considered to have been relied upon by the
                  party to which it is delivered and will survive the execution
                  of this Agreement, regardless of any investigation made by
                  such party or on its behalf. All statements in any such
                  certificate or other instrument will constitute warranties and
                  representations under this Agreement.

         5.8      Fees. If any party institutes an action or proceeding against
                  any other party relating to the provisions of this Agreement
                  or any default hereunder, the unsuccessful party to such
                  action or proceeding will reimburse the successful party
                  therein for the reasonable expenses of attorneys' fees and
                  disbursements and litigation expenses incurred by the
                  successful party.

         5.9      Counterparts. This Agreement may be executed in any number of
                  counterparts, which will individually and collectively
                  constitute one agreement.

         5.10     CHOICE OF LAW. THIS AGREEMENT WILL BE GOVERNED BY AND
                  INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
                  OF OKLAHOMA APPLICABLE TO AN AGREEMENT EXECUTED, DELIVERED AND
                  PERFORMED THEREIN WITHOUT GIVING EFFECT TO THE CHOICE-OF-LAW
                  RULES THEREOF OR ANY OTHER PRINCIPLE THAT COULD REQUIRE THE
                  APPLICATION OF THE SUBSTANTIVE LAW OF ANY OTHER JURISDICTION.

                  IN WITNESS HEREOF, the parties have executed this Agreement
effective as of the date first above written.

                                 CHESAPEAKE ENERGY CORPORATION,
                                 an Oklahoma corporation

                                 By
                                   --------------------------------------------
                                   Aubrey K. McClendon, Chief Executive Officer
                                   ("Chesapeake")

SEVEN SEAS PETROLEUM INC.                                           Exhibit "G"
LOAN PURCHASE AGREEMENT                                       Page 5 of 6 Pages

<PAGE>   54

                                 ----------------------------------------------
                                 ROBERT A. HEFNER III, individually

                                 RAMIIILAJ, A LIMITED PARTNERSHIP, a Texas
                                 limited partnership

                                 By:  Hefner Investment Company,
                                      an Oklahoma corporation,
                                      sole general partner

                                      By
                                        ---------------------------------------
                                        Robert A. Hefner III, President

SEVEN SEAS PETROLEUM INC.                                           Exhibit "G"
LOAN PURCHASE AGREEMENT                                       Page 6 of 6 Pages

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