Document:

PURCHASE AND SALE AGREEMENT

                                     between

                         TIPPERARY OIL & GAS CORPORATION

                                    As Seller

                                       And

                           NANCE PETROLEUM CORPORATION

                                    As Buyer

                                      DATED

                                 APRIL 10, 2000

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                                TABLE OF CONTENTS

1.       Assets to be Sold and Purchased; Reservation of Surface Estate        1

2.       Purchase Price; and Taxes                                             2

3.       Warranties, Representations, and Covenants                            3

4.       Seller's Disclaimer of Warranties, Representations, and Covenants     5

5.       Certain Covenants of Seller Pending Closing                           6

6.       Due Diligence and Environmental Reviews                               7

7.       Certain Purchase Price Adjustments                                   12

8.       Record Retention Following Closing                                   13

9.       Conditions Precedent to the Obligations of Buyer                     13

10.      Conditions Precedent to the Obligations of Seller                    14

11.      Termination of Agreement                                             14

12.      The Closing                                                          15

13.      Certain Adjustments                                                  17

14.      Environmental Indemnity and Hazardous Substances                     18

15.      Commissions                                                          20

16.      Casualty Loss                                                        20

17.      Notices                                                              21

18.      Survival of Provisions                                               21

19.      Operations                                                           21

20.      Confidentiality Agreement                                            22

21.      Further Assurances                                                   22

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22.      Governing Law, and Venue                                             22

23.      Costs                                                                22

24.      Entire Agreement; Amendment; and Waiver                              22

25.      Section and Other Headings; and Construction                         22

26.      Severability                                                         23

27.      Attorney's Fee                                                       23

28.      Restrictions on Assignment                                           23

29.      Time of the Essence                                                  23

30.      Parties in Interest; Successors and Assigns                          23

31.      No Publicity                                                         23

32.      No Recording                                                         24

EXHIBIT A -                                Leases

EXHIBIT B -                                Wells and Allocated Value

EXHIBIT C -                                Quitclaim Assignment and Bill of Sale

EXHIBIT D -                                Preferential Rights

EXHIBIT D-1 -                              Officer's Certificate

EXHIBIT D-2 -                              Officer's Certificate

EXHIBIT E -                                Non-Foreign Affidavit

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                           PURCHASE AND SALE AGREEMENT

     This Purchase and Sale  Agreement  ("Agreement")  is entered into this 10th
day of April,  2000,  by and between  Tipperary Oil & Gas  Corporation,  a Texas
corporation  ("Seller"),  the address of which is 633 17th  Street,  Suite 1550,
Denver,  Colorado 80202, and Nance Petroleum Corporation,  a Montana corporation
("Buyer"),  the address of which is 550 North 31st Street,  Suite 500, Billings,
Montana 59101.

                                    RECITALS:

     A. Seller has certain oil and gas interests  that it wants to sell to Buyer
in accordance with the terms of this Agreement.

     B. Buyer wants to buy all of Seller's  right,  title,  and interest in said
oil and gas interests in accordance with the terms of this Agreement.

     NOW THEREFORE, for and in consideration of the terms of this Agreement, the
adequacy of which is hereby acknowledged, the parties agree as follows:

     1. Assets to be Sold and  Purchased;  Reservation  of Surface  Estate.  (a)
        -------------------------------------------------------------------
Subject  to and in  accordance  with the terms  hereof,  Seller  agrees to sell,
assign,  and convey to Buyer,  and Buyer agrees to purchase from Seller,  all of
Seller's  right,  title,  and  interest,  if any, in and to the  following  real
property,  fixtures,  and  personal  property,  but  only  insofar  as they  are
attributable   to  the  real  property   described  in  Exhibit  A  hereto  (the
"Property"):

          (i) any and  all  oil,  gas and  other  mineral  interests,  including
Seller's right, title, and interest,  if any, in all: (A) oil and gas leases and
any other mineral leases, (B) royalties and overriding royalties, (C) production
payments,  (D) net profits interests,  (E) reversionary  mineral interests,  (F)
unitization,  pooling, and communitization  agreements, and (G) declarations and
orders (including all units formed under orders,  rules,  regulations,  or other
official acts of any federal, state, or other authority having jurisdiction, and
voluntary unitization agreements, designations and declarations), subject to any
exceptions and reservations contained in Exhibit A;

          (ii) all fixtures,  equipment,  and other  personal  property,  to the
extent  relating  to the wells  described  in  Exhibit  B and their  appurtenant
production,   storage,  treating,   gathering,  and  transportation  facilities,
situated on the Property; and

          (iii) all  contracts;  lease  files;  abstracts  and  title  opinions;
production records;  well files;  permits and licenses;  accounting records (but
excluding all general financial accounting or tax accounting records that do not
pertain exclusively to the Property); electric logs and geological, geophysical,
engineering, and other technical data and records (subject to any contractual or
other restrictions relating to the transfer of such data and records); and other
files,  documents  and records that directly  relate to the  Property;  provided
however,  Seller may  retain  copies of any or all of the

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foregoing.  If  Seller  retains  any  such  copies,  they  shall be  treated  as
confidential  and  may be  disclosed  only  under  conditions  analogous  to the
exclusions from confidentiality set forth in the Confidentiality Agreement dated
January 20, 2000 between Seller and Buyer ("Confidentiality Agreement").

Seller's  interests,  if any,  in the  real  property,  fixtures,  and  personal
property  described  in  subsections  (i) and  (ii) are  sometimes  collectively
referred  to as "Oil  and Gas  Properties,"  or as an  "Oil  and Gas  Property".
Seller's  interests,  if any, in the Oil and Gas  Properties and in the personal
property  described in subsection  (iii) are sometimes  collectively  called the
"Assets."

     (b)  Notwithstanding  anything herein to the contrary,  Seller will reserve
unto itself all of its right,  title,  and interest in and to the surface estate
of the Property (to the extent of any surface  estate  interests  not created by
lease,  easement,  or  right-of-way),  and all rights of any  nature  whatsoever
appurtenant  or  otherwise  associated  therewith,  and such right,  title,  and
interest will not constitute any part of the Assets;  provided  however,  Seller
will grant Buyer the right to use the surface of the Oil and Gas  Properties for
purposes reasonably necessary or incidental to oil and gas operations on the Oil
and Gas Properties,  but Buyer shall protect, defend, indemnify, and hold Seller
harmless  from and against any and all Claims  (hereinafter  defined) or Damages
(hereinafter defined) resulting from such use.

     (c) Except for: (i) easements and rights-of-way of record, (ii) other third
party rights (if any) that could not reasonably be expected to have a materially
adverse  effect  on the  use of the  Assets,  and  (iii)  liens  for  taxes  and
assessments due but not yet payable, Seller warrants title to the Assets against
anyone claiming any interest therein arising by, through,  or under Seller,  but
Seller makes no other warranty, representation, or covenant, express or implied,
statutory or otherwise, as to title to the Assets.

     2.  Purchase  Price;  and  Taxes.  (a) The  purchase  price for the  Assets
         -----------------------------
("Purchase  Price") shall be Seven Million  Eight Hundred  Twenty-Five  Thousand
Dollars ($7,825,000) as adjusted as provided herein. The Purchase Price shall be
paid  at  the  Closing  (hereinafter  defined)  as  hereinafter  provided.  Said
$7,825,000, without regard to any adjustments, however, is sometimes referred to
herein as the "Base Purchase Price."

     (b) Upon  execution  of this  Agreement,  Buyer  shall pay to Seller  Seven
Hundred Eighty-Two Thousand Five Hundred Dollars ($782,500) ("Deposit") by check
drawn on a national bank in immediately  available funds. If for any reason said
check  should be  dishonored,  then at Seller's  option,  and in addition to any
other rights it may have, it may terminate this  Agreement.  If Buyer and Seller
consummate  the purchase and sale of the Assets,  the Deposit  shall be credited
against the Purchase Price. The Deposit shall be returned to Buyer:

          (i) only if:(A) Seller  refuses to consummate the purchase and sale of
the Assets and (B) such refusal would constitute a breach hereof, or

          (ii) only under the circumstances, if any, expressly set forth herein.

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If Buyer fails to consummate the transactions contemplated by this Agreement, or
if the  transactions  contemplated by this Agreement  otherwise fail to close on
the Closing  Date,  Seller shall retain the Deposit as liquidated  damages.  The
parties  agree that damages in such an event are  uncertain in amount and cannot
be  determined  with  reasonable  certainty  in advance,  that the amount of the
Deposit   constitutes   a  fair  and   reasonable   estimate   of  (and  is  not
disproportionate  to) actual  Damages such a breach  would  cause,  and is not a
penalty or an inducement to perform.

     (c) Buyer shall pay any and all sales, use, documentary, and transfer taxes
and fees imposed on this  transaction,  and shall pay all  recording  and filing
fees.

     3. Warranties, Representations, and Covenants. (a) Each party, as to itself
        -------------------------------------------
only, warrants, represents, and covenants to the other party that:

          (i) It is a corporation  duly organized,  legally existing and in good
standing  under  the laws of the  state of its  incorporation,  as first set out
above.

          (ii) It is  qualified to do business and is, or at Closing will be, in
good  standing  in each state in which the Oil and Gas  Properties  are  located
where  the laws of such  state  require  a  corporation  owning  the Oil and Gas
Properties located in such state to qualify to do business.

          (iii) It has full  power to enter  into and  perform  its  obligations
under this Agreement; the execution, delivery, and performance of this Agreement
and the  consummation  of the  transactions  contemplated  hereby have been duly
authorized by all requisite  corporate action;  and this Agreement has been duly
executed and delivered.

          (iv) This Agreement,  and the Assignment  (hereinafter  defined) to be
delivered at Closing, will, when executed,  delivered, and accepted,  constitute
its legal,  valid and binding  obligation,  enforceable  in accordance  with its
terms,  except as limited by  bankruptcy or other laws  applicable  generally to
creditor's rights and as limited by general equitable principles.

          (v)(A) There are no pending or threatened material suits,  actions, or
other proceedings to which it is a party that affect: (I) the Assets (including,
as to Seller, any actions challenging or pertaining to its title to any Assets),
or (II) the execution and delivery of this Agreement or the  consummation of the
transactions  contemplated  hereby,  and (B) it shall promptly  notify the other
party of any such material  suits,  actions,  or other  proceedings  as to which
after the date hereof it receives a written threat of assertion.

          (vi) It shall protect, defend,  indemnify, and hold harmless the other
party and its affiliates,  and their employees,  agents, successors and assigns,
from and with respect to any and all rights, claims,  demands, causes of action,
and legal,  administrative,  or arbitration proceedings, of any and every nature
(collectively,  "Claims"), and injuries, deaths, damages, and obligations of any
and  every  nature  resulting  from or that gave  rise to any  Claim,  including
liabilities,  losses, costs, penalties, expenses, judgments, fines, settlements,
interest,  reasonable  attorney's fees, and other related expenses of any nature
(collectively,   "Damages")   resulting   from  a  breach  of  its   warranties,

                                       3

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representations,  or covenants; provided however, that Damages shall not include
consequential, special, incidental, or punitive damages.
     (b) Seller warrants and represents to Buyer that:

          (i) Other than:

               (A)  requirements (if any) that consents to assignment of Assets,
or  waivers  of  preferential  rights to  purchase  Oil and Gas  Properties,  be
obtained from third parties, or

               (B)  requirements  to obtain  consents or approvals  from,  or to
submit  notices  to or  applications  to,  or  actions  that  must be taken  by,
governmental  entities  (in their  capacity  as lessors  of oil and gas  leases,
grantors of  rights-of-way,  or otherwise,  whether similar to or different from
the foregoing) in connection  with the sale or conveyance of oil and gas leases,
permits, or interests therein, or of rights or interests of the nature of any of
the  Assets,  if the same are  customarily  obtained  contemporaneously  with or
subsequent to such sale or conveyance, or

               (C) neither its execution and delivery of this Agreement, nor its
consummation of the transactions  contemplated  hereby,  nor its compliance with
the terms  hereof,  will violate or result in any default  under its articles of
incorporation  or by-laws,  or under any  agreement to which it is a party or by
which it is bound, or violate any Law (hereinafter  defined) applicable to it or
to the Assets.

          (ii)  It has not  received  notice  of any  Claims  (including  Claims
regarding environmental matters) pending or threatened against it arising out of
its ownership of the Assets that is material as to any such Asset,

          (iii) All wells on the property  that were operated by Seller but that
were  plugged  and  abandoned  prior to the  Effective  Date  were  plugged  and
abandoned in accordance  with good industry  practice and in compliance with all
Laws.

          (iv) To the best of Seller's knowledge,  and subject to the provisions
of this  subsection  (iv), the production and expense data, and any  supplements
thereto,  heretofore  furnished  or  caused to be  furnished  by Seller to Buyer
(sometimes referred to herein as "P&E Information"),  was substantially complete
and  correct  as of the  date of  such  delivery;  provided  however,  that  the
foregoing  applies  only  to  matters  of  fact,  and  does  not  apply  to  any
information, data, printouts, extrapolations,  projections, documentation, maps,
graphs, charts, or tables that reflect, depict, present,  portray, or represent,
or which are based upon or derived from, in whole or in part,  interpretation of
the P&E Information, including matters of geological, geophysical,  engineering,
or scientific interpretation.

          (v) To the  best  of  Seller's  knowledge:  (A)  it has  all  material
governmental  licenses and permits,  and has properly made all material  filings
necessary to obtain the permits and licenses, to own and operate the Assets, (B)
such  permits,  licenses,  and  filings  are in full  force and  effect,  (C) no
material violations exist regarding any such permits,  licenses or filings,  and
(D) no proceeding to challenge,  revoke, or limit any such permit,  license,  or
filing is pending or threatened.

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          (vi) To the best of Seller's knowledge: (A) it is not obligated by any
prepayment   arrangement  under  any  contract  for  the  sale  of  hydrocarbons
(including  take  or  pay  obligations,  hedging  or  forward  sale  or  similar
agreements,  or  production  payments  or any  other  arrangements)  to  deliver
hydrocarbons  from the Assets at some future  time  without  then or  thereafter
receiving full payment  therefor,  (B) there are no production  sales agreements
regarding the Assets  currently in effect that require more than sixty (60) days
prior  written  notice to  terminate,  and (C) there are no calls on  production
affecting the Assets.

          (vii) To the best of Seller's  knowledge,  there are no surface use or
access agreements  currently in force and effect that would materially interfere
with oil and gas operations on the Oil and Gas Properties.

          (viii) To best of Seller's knowledge,  no well listed on Exhibit B has
been  represented  by  its  operator,  either  in a  pending  authorization  for
expenditures or other written  proposal to other working  interest owners in any
such well, as presently needing to be plugged and abandoned.

     (c) Buyer warrants and represents to Seller that:

          (i)  It  is a  knowledgeable  and  experienced  purchaser,  owner  and
operator of oil and gas  properties,  has the  ability to  evaluate  oil and gas
properties,  and,  subject  to its  rights  under  Section 6, has been given the
opportunity to investigate and evaluate (and has investigated and evaluated) the
condition of the Assets to the extent it deems  necessary or appropriate  and is
acquiring the Assets based solely upon its own  investigation and evaluation and
for its own  account,  and not with a view to or the  intent to make a resale or
distribution within the meaning of the Securities Act of 1933 (and the rules and
regulations pertaining thereto) or a resale or distribution thereof in violation
of any other applicable securities laws.

          (ii)  With  regard to those  Assets  that it seeks to  operate,  it is
qualified to operate such Assets under the applicable  Laws of the  jurisdiction
in  which  such  Assets  are  located  and  under  the  Laws  of  all  governing
authorities,  or will become so  qualified  (and assumes the risk of becoming so
qualified) before operating such Assets.

          (iii) Neither its execution  and delivery of this  Agreement,  nor its
consummation of the transactions  contemplated  hereby,  nor its compliance with
the terms  hereof,  will violate or result in any default  under its articles of
incorporation  or by-laws,  or under any  agreement to which it is a party or by
which it is bound, or violate any Law applicable to it or to the Assets.

     4. Seller's Disclaimer of Warranties,  Representations,  and Covenants. (a)
        --------------------------------------------------------------------
WITH RESPECT TO THE ASSETS,  THIS AGREEMENT,  AND THE TRANSACTIONS  CONTEMPLATED
HEREBY, SELLER'S WARRANTIES AND REPRESENTATIONS AS EXPRESSLY SET OUT IN SECTIONS
1(c), 3, 5(a), and 5(c)(i) HEREOF AND IN THE ASSIGNMENT EXECUTED PURSUANT HERETO
ARE EXCLUSIVE AND IN LIEU OF ANY AND ALL OTHER WARRANTIES,  REPRESENTATIONS, AND
COVENANTS,  EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, AND SELLER DISCLAIMS ANY
AND ALL OTHER WARRANTIES, REPRESENTATIONS, AND COVENANTS.

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     (b) CONSISTENT  WITH AND NOT AS A LIMITATION ON SUBSECTION  (a), THE ASSETS
SHALL BE PURCHASED,  SOLD, AND CONVEYED "AS IS, WHERE IS", WITHOUT ANY WARRANTY,
REPRESENTATION,  OR  COVENANT,  EXPRESS  OR  IMPLIED,  STATUTORY  OR  OTHERWISE,
RELATING TO:

          (i) THE CONDITION, QUANTITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE
OR  ANY  PURPOSE,   CONFORMITY  TO  THE  MODELS  OR  SAMPLES  OF  MATERIALS,  OR
MERCHANTABILITY  OF  ANY  IMMOVABLE  PROPERTY,   MOVABLE  PROPERTY,   EQUIPMENT,
INVENTORY, MACHINERY, AND OTHER FIXTURES AND PERSONAL PROPERTY CONSTITUTING PART
OF THE ASSETS;

          (ii) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM REDHIBITORY VICES
OR DEFECTS OR OTHER VICES OR DEFECTS, WHETHER KNOWN OR UNKNOWN;

          (iii) ANY AND ALL IMPLIED  WARRANTIES,  REPRESENTATIONS,  OR COVENANTS
EXISTING UNDER APPLICABLE LAW NOW OR HEREAFTER IN EFFECT; AND

          (iv) EXCEPT AS PROVIDED  OTHERWISE IN THE SUBSECTION (a),  WITHOUT ANY
OTHER WARRANTY,  REPRESENTATION,  OR COVENANT,  EXPRESS OR IMPLIED, STATUTORY OR
OTHERWISE.

     (c)  CONSISTENT  WITH BUT NOT AS A LIMITATION ON  SUBSECTIONS  (a) AND (b),
SELLER IS SELLING  AND BUYER IS BUYING THE ASSETS  WITH ALL  DEFECTS  AND FAULTS
(LATENT OR  APPARENT)  AND IT ASSUMES  THE RISK THAT  ADVERSE  PAST,  PRESENT OR
FUTURE PHYSICAL CONDITIONS MAY NOT HAVE BEEN REVEALED BY ITS INVESTIGATIONS.

     5. Certain Covenants of Seller Pending Closing. Between the date hereof and
        --------------------------------------------
the Closing Date:

     (a)  Seller  will give  Buyer,  its  attorneys  and other  representatives,
subject to the  provisions of the  Confidentiality  Agreement and subject to any
restrictions  on access to the Assets  imposed by  agreements by which Seller is
bound,  access at all  reasonable  times to: (i) the  Assets  and (ii)  Seller's
records and files  relating to the Assets (which records and files include those
relating to title, division orders, wells,  production,  accounting,  marketing,
equipment  inventories,  and  production,   severance  and  ad  valorem  taxes).
Notwithstanding  the  foregoing,  Seller shall not be obligated to provide Buyer
with  access  to any files or  records  that  Seller  considers  proprietary  or
confidential  to it or that it  cannot  legally  provide  to Buyer  without,  in
Seller's opinion,  breaching or risking a breach of confidentiality  agreements.
All such files and records are being made available to Buyer  (whether  pursuant
to this  Section or  otherwise)  as an  accommodation,  and without  warranty or
covenant,  express or implied,  statutory or  otherwise,  as to the accuracy and
completeness of such materials;

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provided however, that notwithstanding the foregoing,  Seller represents that to
the  best of its  knowledge,  all  such  files  and  records  are  substantially
complete.

     (b) To the extent Seller is the operator of any Oil and Gas Properties,  it
will continue such operation in the ordinary  course of its business;  and where
it is not the  operator  of any Oil and Gas  Properties,  it will  continue  its
actions as a non-operator  in the ordinary  course of its business.  Seller will
not sell or dispose of any portion of the Assets without Buyer's prior consent.

     (c)(i)  Seller  represents  that to the  best of its  knowledge,  the  only
preferential  purchase  rights  that exist with  respect to its  interest in the
Assets are listed in Exhibit D. Seller will use reasonable  efforts,  consistent
with industry  practices in transactions of this type, to identify all rights to
require that  consents to  assignment  of any Assets be obtained,  and the third
parties  holding any of such rights.  In attempting  to identify the  foregoing,
however,  Seller shall not be obligated  to review  anything  other than its own
records.  Seller will request,  from the third parties  listed in Exhibit D and,
with  respect  to  the  aforementioned  third  parties  so  identified  (and  in
accordance with the documents creating such rights), waivers of the preferential
rights to purchase and  requirements  that  consents to  assignment  be obtained
which were so identified.  Seller shall have no obligation  hereunder other than
to so attempt to identify such requirements for consents to assignment and to so
request waivers of such consents and of preferential  purchase rights, but shall
have no obligation to obtain such waivers or consents.

          (ii) If the holder of a preferential  right to purchase an Asset fails
or refuses to give such waiver and  instead  exercises  such right,  Seller will
tender to such  holder (at a price  equal to the amount  specified  in Exhibit B
hereto for the wells located on such Asset and for the units in which such Asset
participates,  reduced appropriately,  as determined by Seller, if less than the
entire  Asset  should be  tendered,  unless it is  determined  that a greater or
lesser  price  is  required)  the  interest  in  the  Asset   affected  by  such
preferential  right.  If such  interest in such Asset is  actually  sold to such
holder,  it will be excluded from the  transaction  contemplated  hereby and the
Purchase  Price  will be  reduced  by the  amount  paid to Seller by the  holder
exercising such right.

     (d)  Notwithstanding  anything in this Section to the contrary:  (i) Seller
may take any action  prohibited  by this Section if reasonably  necessary  under
emergency  conditions,  provided  that Buyer is notified as soon as  practicable
thereafter;  (ii)  except to the extent a "Defect" (  hereinafter  defined)  may
result  therefrom,  Seller shall have no  liability  to Buyer for any  incorrect
payment of delay rentals,  royalties,  shut-in  royalties or similar payments or
for any failure to make such payments; and (iii) Seller=s failure to comply with
any of the  requirements of this Section shall not be deemed a default by Seller
hereunder or entitle Buyer to not close the  transactions  contemplated  hereby,
unless such failure has a materially  adverse  impact on the value of the Assets
taken as a whole.

     6. Due Diligence  and  Environmental  Reviews.  (a)(i) To the extent deemed
        -------------------------------------------
appropriate  by Buyer,  it may  conduct,  at its sole cost and risk,  such title
examinations  and,  subject to any  restrictions  to which Seller is bound,  any
other reasonable  examinations and  investigations as it may choose with respect
to the Assets; provided however,  environmental  examinations and investigations
shall be governed by  subsection  (b). If as a result of such  examinations  and
investigations  Buyer  identifies any matters that  constitute  Defects,  and if
there are any Defects that

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Buyer is unwilling to waive,  Buyer must notify Seller of such Defects  ("Defect
Notice") promptly following its discovery of such Defects, but in no event later
than April 24, 2000  ("Defect  Date").  Buyer may not give notice of any Defects
after the Defect Date, and must accept all Defects, if any, discovered after the
Defect Date.

          (ii) To be effective,  a Defect Notice must include: (A) a description
of  the  Property   affected,   (B)  a  description  of  the  particular  matter
constituting  the  alleged  Defect,  (C) such  supporting  documents  reasonably
necessary for Seller to determine if a Defect actually  exists,  and (D) Buyer's
good faith  estimate of the amount by which the alleged Defect reduces the value
attributed to the  Property.  Alleged  Defects for which Buyer  provides a valid
Defect Notice prior to the Defect Date are herein called "Asserted Defects."

          (iii) Except for Asserted  Defects,  all matters that might  otherwise
constitute  a Defect are waived for all  purposes  hereof.  With  respect to any
Asserted  Defect,  Seller  shall have the right but not the  obligation  to: (A)
attempt to cure it prior to Closing,  (B) require  that the Closing  take place,
deposit in an escrow account the portion of the Purchase Price paid by Buyer and
attributable to the Asset having the Asserted  Defect,  and attempt to cure such
Asserted  Defect  within sixty (60) days after the Closing,  and Seller=s  right
under this clause (B) may be exercised at any time before the Closing  Date;  or
(C) elect not to cure the  Asserted  Defect  and adjust  the  Purchase  Price as
provided Section 7.

          (iv) With respect to any Oil and Gas  Property,  if a title opinion or
any  other  materials  reviewed  by Buyer  indicates  Seller  has a Net  Revenue
Interest  (hereinafter defined) greater than that specified on Exhibit B without
a corresponding  proportionate  increase in the Operating Interest  (hereinafter
defined),  then Buyer shall promptly inform Seller of the same, but in any event
at least five (5) days prior to the Closing.  If Seller or Buyer  determine that
Seller is entitled to a Net Revenue  Interest in any Asset in excess of that set
forth on Exhibit B ("NRI Increase"), notice shall promptly be given to the other
party, and the adjustments to be made under Section 7 shall include  adjustments
which are the subject of such notice.

     (b)(i)(A) To the extent,  if any,  that Seller has the right to grant Buyer
the right to do so,  Buyer may,  upon at least four (4) day's  notice to Seller,
enter upon the Oil and Gas Properties to conduct an environmental  assessment of
the  Assets at  Buyer's  sole cost and risk.  (B)  Consistent  with but not as a
limitation on the foregoing,  Buyer shall protect,  defend,  indemnify, and hold
Seller and anyone else owning an interest in the Oil and Gas Properties harmless
from  and  against  any  Claims  and  Damages  resulting  from the  presence  or
activities of Buyer or its agents on the Oil and Gas Properties in the course of
conducting its assessment activities.

          (ii) In conducting  its  assessment,  and subject to  subsection  (i),
Buyer may enter upon the Oil and Gas Properties,  without disrupting  operations
thereon,  and inspect the same,  conduct soil and water tests and  borings,  and
generally conduct such tests, examinations,  investigations,  and studies as may
be necessary or appropriate for the  preparation of appropriate  engineering and
other reports in relation to the Oil and Gas Properties,  their  condition,  and
the presence of Hazardous Substances  (hereinafter defined). Any such assessment
shall be  concluded  no later than  April 24,  2000  ("Environmental  Assessment
Date"). If there are any Oil and Gas Properties as to which Seller does not have
the right to grant Buyer the right to conduct an assessment,  then no later than

                                       8

<PAGE>

the  Environmental  Assessment Date, or if as a result of Buyer's  environmental
assessment  any particular Oil and Gas Property is determined to be in violation
of environmental  Laws, then Buyer may notify Seller that Buyer wants to exclude
such Asset from this Agreement (and such notice,  if and to the extent regarding
a violation of environmental  Laws,  shall provide in reasonable  detail the Law
that was  violated,  the manner in which such Law was violated,  and  sufficient
information  to  substantiate  the  violation),  in which event said Oil and Gas
Property  shall be excluded and the Purchase  Price shall be reduced,  with such
reduction  in the  Purchase  Price  being  determined  in  the  same  manner  as
reductions  for  Asserted  Defects  under  Section  7.  After the  Environmental
Assessment  Date:  (A) Buyer may not  request  that any Oil and Gas  Property be
excluded from this  Agreement,  and (B) Buyer shall be deemed to have  inspected
the Oil and Gas  Properties  or waived its right to  inspect  the Assets for all
purposes and satisfied itself as to their physical and environmental  condition,
both  surface  and  subsurface,   including,  but  not  limited  to,  conditions
specifically  related  to  the  presence,  release,  or  disposal  of  Hazardous
Substances.

          (iii)(A) Buyer shall provide  Seller with a copy of any  environmental
assessment and other reports,  and all supporting data and other  documentation,
promptly  upon  completion  of the  assessment.  Buyer  shall  keep  any data or
information  acquired by such  examinations  and the results of all  analyses of
such data and information  strictly  confidential and shall not disclose them to
anyone  without  Seller's  prior  written  approval,  which need not be given of
Seller.

               (B) The consent  required by subsection  (A) shall not apply to a
disclosure to a  governmental  agency that Buyer believes upon written advice of
counsel is required by Law;  provided however,  that in such event,  Buyer shall
give notice to Seller  (which  notice shall  describe in a  reasonably  detailed
manner the legal  grounds on which such  advice is based) at least ten (10) days
prior to making such disclosure,  and shall take into account any comments Buyer
may  receive  from  Seller.  Seller  shall have the right to contest the need to
disclose any such information,  and Buyer shall protect, defend,  indemnify, and
hold Seller  harmless from any Claims or Damages  resulting  from any disclosure
that was not required by Law.

     (c) As used  herein,  "Defect"  means any matter,  other than a  "Permitted
Encumbrance" (hereinafter defined), which causes one or more of the following to
be a correct statement:

          (i)  Seller's  ownership  of an Asset is such that,  with respect to a
well or unit listed on Exhibit B, such ownership: (A) is insufficient to entitle
it to receive a decimal  share of the oil, gas and other  hydrocarbons  produced
from,  or allocated  to, such well or unit that is at least equal to the decimal
share set  forth on  Exhibit  B in the  column  "Net  Revenue  Interest"  or (B)
obligates it to bear a decimal share of the cost of operating  such well or unit
("Operating  Interest") greater than the decimal share set forth on Exhibit B in
the  column  "Operating  Interest"  without  a  proportionate  increase  in  the
corresponding Net Revenue Interest set forth on such Exhibit;

          (ii)  Seller's  ownership  of an Oil and Gas Property is subject to an
outstanding and valid  mortgage,  deed of trust,  other lien or encumbrance,  or
other  adverse claim or  imperfection  in title,  which if asserted  would cause
either subsection (i)(A) or (i)(B) to be a correct statement; or

          (iii) Seller's  represented amount of any gas imbalances is materially
inaccurate.

                                       9

<PAGE>

     (d) As used herein,  "Permitted  Encumbrance" shall mean any and all of the
following:

          (i) The conditions, restriction, exceptions, reservations, limitations
and all other terms  contained in the agreements and instruments in the chain of
title that  creates or  reserves to Seller its  interest in any Asset,  provided
that the same do not reduce Seller's Net Revenue  Interest in the affected Asset
to less than that set forth on Exhibit B;

          (ii) Royalties,  overriding  royalties  (including those  specifically
described on Exhibit A), division  orders,  reversionary  interests,  production
payments,  net profits  interests and similar burdens  affecting any Oil and Gas
Property if the net cumulative  effect of such burdens does not reduce  Seller's
Net  Revenue  Interest  in the  affected  Asset to less  than  that set forth on
Exhibit B;

          (iii) Preferential  rights to purchase,  requirements that third party
consents be obtained for assignments,  and agreements of a similar nature,  with
respect  to  which  waivers  or  consents  shall  have  been  obtained  from the
appropriate  parties,  or the appropriate  time period for asserting such rights
shall have expired without an exercise of such rights;

          (iv) Liens for taxes and  assessments  which are not yet delinquent or
which are being  contested by Seller in good faith and for which Seller  retains
responsibility;

          (v) Rights existing under applicable Laws (including  statutory liens)
or operating  agreements  or similar  contracts,  pursuant to which liens may be
asserted  against the Assets,  but  excluding  liens and other  rights that have
actually been asserted  unless Seller disputes the validity of such liens or the
amount  claimed to be owed in connection  therewith and for which Seller retains
responsibility,  or such  lien or other  right is not  enforceable  against  the
interest of Seller;

          (vi) Conventional rights of reassignment requiring ninety (90) days or
less notice to the holder of such rights;

          (vii) Easements,  rights-of-way,  servitudes,  permits, surface leases
and other rights in respect to surface operations,  pipelines,  logging, canals,
ditches,  reservoirs or the like;  conditions,  covenants or other restrictions;
easements for streets,  alleys,  highways,  pipelines,  telephone  lines,  power
lines, railways and other easements or rights-of-way on, over or with respect of
any Asset  which do not  materially  and  adversely  affect  the Asset  affected
thereby or its current use;

          (viii)  Any   obligations   or  duties   affecting  an  Asset  to  any
municipality or public authority with respect to any franchise,  grant,  license
or permit and all applicable Laws of any governmental authority;

          (ix) All  requirements  to obtain  consents or approvals  from,  or to
submit  notices  to or  applications  to,  or  actions  that  must be taken  by,
governmental  entities  (in their  capacity  as lessors  of oil and gas  leases,
grantors of  rights-of-way,  or otherwise,  whether similar to or different from
the foregoing) in connection  with the sale or conveyance of oil and gas leases,
permits, or interests

                                       10

<PAGE>

therein,  or of rights or interests  of the nature of any of the Assets,  if the
same are customarily obtained  contemporaneously with or subsequent to such sale
or conveyance;

          (x)  Existing  operating  agreements,  unit  agreements,  gas purchase
contracts and any and all other  agreements  that are typical in the oil and gas
exploration,  development,  production or extraction business or in the business
of processing of gas and gas  condensate  or  production  for the  extraction of
proper  products  therefrom,  to the  extent  that the same do not:  (A)  reduce
Seller's Net Revenue  Interest in the affected Asset to less than that set forth
on Exhibit B, or (B) increase Seller's  Operating Interest in the affected Asset
to greater than set forth on Exhibit B without a  proportionate  increase in the
corresponding Net Revenue Interest set forth on such Exhibit;

          (xi) Any other defect or imperfection in title which would customarily
be waived by a reasonable person engaged in the business of owning and operating
oil and gas properties; and

          (xii) Any other matter waived or deemed to be waived by Buyer pursuant
to the provisions of subsection (a).

     (e) With respect to all Assets conveyed to Buyer hereunder:

          (i) BUYER SHALL BE DEEMED TO HAVE:  (A)  INSPECTED,  OR TO HAVE WAIVED
ITS RIGHT TO INSPECT,  THE ASSETS FOR ALL PURPOSES,  AND (B) SATISFIED ITSELF AS
TO THEIR  PHYSICAL AND  ENVIRONMENTAL  CONDITION,  BOTH SURFACE AND  SUBSURFACE,
INCLUDING CONDITIONS SPECIFICALLY RELATED TO THE PRESENCE,  RELEASE, OR DISPOSAL
OF SOLID WASTES, ASBESTOS, OTHER MANMADE FIBERS, NATURALLY OCCURRING RADIOACTIVE
MATERIALS,  AND  OTHER  HAZARDOUS  SUBSTANCES  IN,  ON, OR UNDER THE OIL AND GAS
PROPERTIES AS OF THE DEFECT DATE.

          (ii) BUYER SHALL BE DEEMED TO HAVE RELIED SOLELY ON ITS OWN INSPECTION
OF THE  ASSETS,  AND AS  PROVIDED  IN SECTION 4,  SELLER IS SELLING AND BUYER IS
BUYING ALL ASSETS "AS IS, WHERE IS."  CONSISTENT WITH BUT NOT AS A LIMITATION ON
THE  FOREGOING,  EXCEPT AS MAY OTHERWISE BE EXPRESSLY  PROVIDED  HEREIN,  SELLER
MAKES NO WARRANTY REPRESENTATION,  OR COVENANT, EXPRESS OR IMPLIED, STATUTORY OR
OTHERWISE,  AS TO THE ACCURACY OR  COMPLETENESS OF ANY DATA,  REPORTS,  RECORDS,
PROJECTIONS,  INFORMATION,  OR OTHER  MATERIALS  NOW,  HERETOFORE,  OR HEREAFTER
FURNISHED  OR MADE  AVAILABLE  TO  BUYER  IN  CONNECTION  WITH  THIS  AGREEMENT,
INCLUDING PRICING ASSUMPTIONS OR QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF
ANY)  ATTRIBUTABLE  TO THE ASSETS OR THE ABILITY OR  POTENTIAL  OF THE ASSETS TO
PRODUCE  HYDROCARBONS OR THE ENVIRONMENTAL  CONDITION OF THE ASSETS OR ANY OTHER
MATERIALS  FURNISHED OR MADE  AVAILABLE TO BUYER BY OR ON BEHALF OF SELLER.  ANY
AND ALL  SUCH  DATA,  REPORTS,  RECORDS,  PROJECTIONS,  INFORMATION,  AND  OTHER
MATERIALS  FURNISHED BY OR ON BEHALF OF SELLER TO BUYER ARE PROVIDED TO BUYER AS
A

                                       11

<PAGE>

CONVENIENCE  AND SHALL NOT CREATE OR GIVE RISE TO ANY LIABILITY OF OR AGAINST
SELLER;  ANY CONCLUSIONS,  IMPLICATIONS,  OR INFERENCES DRAWN THEREFROM SHALL BE
THE RESULT OF BUYER'S OWN INDEPENDENT  REVIEW; AND ANY RELIANCE ON OR USE OF THE
SAME SHALL BE AT BUYER'S SOLE RISK.

     7. Certain  Purchase Price  Adjustments.  (a) If in connection with the due
        -------------------------------------
diligence  review  under  Section 6 either:  Asserted  Defects are  presented to
Seller and Seller is unable or unwilling to cure such Asserted  Defects prior to
the Closing,  Buyer has elected to treat an Oil and Gas  Property  affected by a
casualty  loss as if it was an Oil  and Gas  Property  affected  by an  Asserted
Defect, or an NRI Increase occurs, then:

          (i) Buyer and Seller shall,  with respect to each Oil and Gas Property
affected by such matters, attempt to agree upon an appropriate adjustment to the
Purchase Price to account for such matters; and

          (ii) With  respect to each Oil and Gas  Property as to which Buyer and
Seller are unable to agree upon appropriate  adjustment with respect to all such
matters affecting such Oil and Gas Property:

               (A) If the Asserted  Defect is a mortgage,  deed of trust,  lien,
encumbrance or other charge which is undisputed  and liquidated in amount,  then
the adjustment  shall be the amount  necessary to be paid to remove the Asserted
Defect from the affected Asset;

               (B) If there is:  (I) an  Asserted  Defect or NRI  Increase  that
represents  a  discrepancy  between  the Net  Revenue  Interest  that  Seller is
entitled  to  receive  from any Asset  and the Net  Revenue  Interest  stated on
Exhibit B, and (II) an Operating Interest change  proportionate to the change in
the Net Revenue  Interest  resulting  from the Asserted  Defect or NRI Increase,
then the amount of the adjustment shall be the product of the value allocated to
such  Asset as set  forth on  Exhibit  B  ("Allocated  Value")  multiplied  by a
fraction, the numerator of which shall be the change in the Net Revenue Interest
and the  denominator  of which  shall be the Net Revenue  Interest  set forth on
Exhibit B;

               (C) If the Asserted Defect represents an obligation, encumbrance,
burden,  discrepancy  or charge  upon or other  defect in title to the  affected
Asset of a type not described in subsections  (A) or (B), the adjustment  amount
shall be determined  by taking into account the Allocated  Value of the Asset so
affected,  the portion of the Asset affected by the Asserted  Defect,  the legal
effect of the Asserted  Defect,  the potential  economic  effect of the Asserted
Defect  over the  life of the  affected  Asset  and such  other  factors  as are
necessary to make a proper evaluation of the value of the Asserted Defect;

               (D) Notwithstanding any other provision contained herein: (I) the
aggregate  reduction  attributable to the effect of all Asserted Defects related
to a given Asset shall not exceed the  Allocated  Value of such Asset unless the
Asserted  Defect is of the nature  described in subsections (A) or (C), in which
event the reduction shall be of the nature  described in subsections

                                       12

<PAGE>

(A) or (C),  even if it exceeds the Allocated  Value of such Asset;  and (II) no
reduction  shall be made with respect to an Asserted Defect if the diminution in
the Allocated  Value  regarding such Asset  resulting  therefrom  regarding said
asset will not exceed One Thousand Dollars ($1,000.00); and

               (E) If the parties cannot agree upon an appropriate adjustment in
light of the factors set forth above,

then,  subject to subsection  (b)(ii),  Seller may elect to exclude such Oil and
Gas Property from the transaction  contemplated  hereby,  and the Purchase Price
will be reduced by the Allocated  Value of the wells located on such Oil and Gas
Property and the units in which such Oil and Gas Property participates.

     (b)(i) If the aggregate  Purchase Price  reduction which would result under
subsection (a) does not exceed One Hundred Thousand Dollars ($100,000), then the
Purchase  Price shall not be  adjusted,  and none of the Oil and Gas  Properties
which would be excluded by such procedure shall be excluded.

          (ii) If the aggregate  Purchase Price reduction exceeds $100,000,  the
Purchase Price shall be adjusted by the total amount of such  reduction.  If the
Purchase  Price  increase  which  would  result  under  subsection  (a)  exceeds
$100,000,  the  Purchase  Price shall be  adjusted  by the total  amount of such
increase.

     (c) If the aggregate  amount of all Purchase  Price  reductions  under this
Agreement,  regardless  of the reason for such  reductions,  exceeds ten percent
(10%) of the Base Purchase  Price,  either party may terminate this Agreement by
giving  notice  to the  other  party  within  ten  (10)  days of the date it was
determined  that the  Purchase  Price would exceed said 10%, in which event this
Agreement shall terminate and the Deposit shall be returned to Buyer.  Upon such
termination,  the  parties  shall have no  further  obligations  to one  another
hereunder (other than the  indemnification  obligations  under Sections 3(a)(vi)
and 6(b), and the  obligations  under Sections 11(c), 15 and 20 - 27, which will
survive such termination).

     8. Record  Retention  Following  Closing.  If the  purchase and sale of the
        --------------------------------------
Assets is  consummated,  then for a period of seven (7) years from the  closing,
Buyer shall save and retain, and give Seller access at all reasonable times upon
reasonable  notice,  to all files and records  (including all computer  records)
delivered  by  or on  behalf  of  Seller  in  connection  with  the  transaction
contemplated  hereby,  and shall permit  Seller to make copies of any such files
and  records.  Consistent  with but not as a  limitation  on Section  30, if the
Assets are subsequently transferred by Buyer, Buyer shall take all action in its
contractual  arrangements relating to such transfer necessary to allow Seller to
have continued access to all such files and records.

     9. Conditions  Precedent to the Obligations of Buyer. Buyer's obligation to
        --------------------------------------------------
purchase the Assets is subject to each of the following conditions being met:

     (a) Each and  every  warranty  and  representation  of  Seller  under  this
Agreement shall be true and accurate in all material respects as of Closing, the
same as if made at Closing,  except as to changes  specifically  contemplated by
this Agreement or waived by Buyer.

                                       13

<PAGE>

     (b) Seller  shall have  complied in all material  respects  (or  compliance
shall have been waived by Buyer) with each and every  covenant  required by this
Agreement to be performed by Seller prior to or at the Closing.

     (c) No suit, action or other proceedings shall, on the date of Closing,  be
pending,  or  threatened  in writing,  before any court or  governmental  agency
seeking to restrain,  prohibit,  or obtain damages or other relief in connection
with the consummation of the transactions contemplated by this Agreement.

     (d) Any and all other  conditions  precedent  in  Buyer's  favor  have been
satisfied or waived.

     10. Conditions Precedent to the Obligations of Seller.  Seller's obligation
         --------------------------------------------------
to sell the Assets is subject to each of the following conditions being met:

     (a) Each  and  every  warranty  and  representation  of  Buyer  under  this
Agreement shall be true and accurate in all material respects as of Closing, the
same as if made at Closing,  except as to changes  specifically  contemplated by
this Agreement or waived by Seller.

     (b) Buyer shall have complied in all material respects (or compliance shall
have been  waived by  Seller)  with each and  every  covenant  required  by this
Agreement to be performed by Buyer prior to or at the Closing.

     (c) No suit, action or other proceedings shall, on the date of Closing,  be
pending,  or  threatened  in writing,  before any court or  governmental  agency
seeking to restrain,  prohibit,  or obtain damages or other relief in connection
with the consummation of the transactions contemplated by this Agreement.

     (d) Any and all other  conditions  precedent  in  Seller's  favor have been
satisfied or waived.

     11. Termination of Agreement. (a) If: (i) any condition precedent set forth
         -------------------------
in Section 9 to Buyer's  obligation  to purchase the Assets is not  satisfied or
waived as of the Closing Date, or if the Closing does not occur on or before May
9, 2000 ("Termination Date"), and (ii) Buyer is not in breach of its obligations
hereunder, then Buyer may terminate this Agreement upon seven (7) days notice to
Seller,  and  Seller  shall  promptly  return the  Deposit  to Buyer.  Upon such
termination,  the  parties  shall have no  further  obligations  to one  another
hereunder (other than the  indemnification  obligations  under Sections 3(a)(vi)
and 6(b), and the obligations  under subsection (c) and Sections 15 and 20 - 27,
which will survive such termination).

     (b) If: (i) any  condition  precedent  set forth in Section 10 to  Seller's
obligation to sell the Assets is not satisfied or waived as of the Closing Date,
or if the Closing  does not occur on or before the  Termination  Date,  and (ii)
Seller is not in breach of its obligations hereunder (unless Buyer shall also be
in  breach  of its  Obligations  hereunder),  then  Seller  may  terminate  this
Agreement  upon  seven (7) days  notice to Buyer,  and Seller  shall  return the
Deposit to Buyer only if the termination was based solely on Section 10(c). Upon
such termination,  the parties shall have no further  obligations to one another
hereunder (other than the  indemnification  obligations  under Sections 3(a)(vi)
and

                                       14

<PAGE>

6(b),  and the  obligations  under  subsection  (c) and Sections 15 and 20 - 27,
which will survive such termination).

     (c) Upon  termination  of this  Agreement  under  subsection (a) or (b), or
under Section 7(c),  Seller may sell the Assets (or any portion  thereof) to any
other party without any  limitation  under or by reason of this  Agreement,  and
Buyer may not seek to enjoin any such sale. Promptly following Seller's request,
Buyer  shall:  (i) execute any  instrument  requested  by Seller to evidence the
termination  of Buyer's  right to acquire the Assets,  and (ii) return to Seller
all data and other information (and all copies thereof) furnished to Buyer by or
on behalf of Seller in connection with this transaction.

     12. Closing;  and Post-Closing  Matters.  (a)(i) The closing ("Closing") of
         ------------------------------------
the transaction  contemplated  hereby shall take place in the offices of Seller,
in Denver,  Colorado,  on May 3, 2000, at 10:00 a.m.  Mountain  Time, or at such
other date and time as Buyer and Seller may agree ("Closing Date").

                  (ii) At least five (5) business  days before the Closing Date,
Seller shall submit to Buyer a proposed statement ("Closing  Statement") setting
forth the  proposed  Purchase  Price,  based on the  adjustments  for which this
Agreement  provides.  At least two (2)  business  days before the Closing  Date,
Buyer shall  deliver to Seller a written  report  proposing and  explaining  any
changes to the Closing  Statement;  provided  however,  if Buyer fails to timely
deliver  such  report,  Seller's  Closing  Statement  shall be the basis for the
Purchase  Price.  If Buyer timely  delivers such report,  Seller and Buyer shall
make every reasonable effort to agree upon an acceptable Purchase Price prior to
Closing,  but if the  parties  fail to reach such  Agreement,  then at  Seller's
election:  Seller's  estimation  of the  adjustments  shall be employed  for the
purpose of Closing,  the Closing shall occur, and differences  shall be resolved
after the Closing.

     (b) At the Closing, Seller shall:

          (i) execute,  acknowledge  and deliver to Buyer an Assignment and Bill
of Sale  ("Assignment")  of the Assets, in the form attached hereto as Exhibit C
(with Exhibits A and B hereto being attached  thereto),  effective as to runs of
oil and  deliveries of gas as of 7:00 a.m.,  Mountain  Standard Time on March 1,
2000 ("Effective Date");

          (ii) execute and deliver to Buyer  letters in lieu of transfer  orders
(or similar documents), in form acceptable to both parties;

          (iii) execute and deliver to Buyer an affidavit or other certification
(as permitted by the Internal Revenue Code of 1986) having the form and language
as  Exhibit E  attached  hereto,  to the  effect  that  Seller is not a "foreign
person"  within the  meaning  of Section  1445 (or  similar  provisions)  of the
Internal Revenue Code of 1986; and

          (iv) provide Buyer with Seller's Officer  Certificate  having the form
and language of Exhibit D-1 attached hereto.

     (c) At the Closing, Buyer shall:

                                       15

<PAGE>

          (i) deliver to the Seller by wire  transfer in  immediately  available
funds,  to an  account  designated  by Seller in a bank  located  in the  United
States, an amount equal to the Purchase Price minus the Deposit,  as such amount
may be adjusted in accordance with the terms hereof;

          (ii) with respect to Assets operated by Seller, execute and deliver to
Seller  appropriate  evidence  reflecting  change of  operator  as  required  by
applicable  authorities  and such  evidence as Seller may require  that Buyer is
qualified with such authorities to succeed Seller as operator; and

          (iii) provide Seller with Buyer's Officer  Certificate having the form
and language of Exhibit D-2 attached hereto.

     (d) Within five (5) days after  Closing,  Seller will  deliver to Buyer the
records and other materials described in Section 1(a).

     (e) Following the Closing,  with respect to each Oil and Gas Property as to
which Seller is disbursing proceeds of production  attributable to other parties
entitled thereto, Seller shall:

          (i)  continue to collect  proceeds of  production  during the month in
which Closing occurs and be responsible for making disbursements,  in accordance
with  its  normal  procedures  (and at  normal  times),  of such  proceeds  from
production so collected to the parties  entitled to same, with any proceeds from
production thereafter collected by Seller to be promptly forwarded to Buyer (who
shall thereafter account for same to the parties entitled thereto), and

          (ii) deliver to Buyer:  (A) a copy of its proceeds  distribution  list
(but Seller makes no warranties or  representations,  express or implied,  as to
the  accuracy of such list) for each such Asset  (which  list shall  include the
name,  address,  social security or tax number, and applicable share of proceeds
from  production for each party to whom Seller is disbursing  such proceeds with
respect  to such  Asset),  (B) a list of all  parties  for whom it is holding in
suspense  proceeds  from  production,  (C) a list of all  parties for whom it is
holding  in any  advance  payments  made by other  working  interest  owners for
operations  to be  conducted  on the  Assets,  and (D) a check  (which  shall be
delivered  within 30 days after the end of the month in which Closing occurs) in
an amount equal to all suspended funds and advance payments.  Following delivery
of the materials referred to in this subsection,  Buyer shall be responsible for
all  disbursements  of proceeds from  production  (including  suspense and other
disbursements  attributable  to periods  prior to the  Effective  Date) and such
disbursement  activities  shall be included in the matters which Buyer  assumes,
and  indemnifies  Seller  with  respect to,  hereunder,  except that Buyer shall
neither  assume  responsibility,   nor  indemnify  Seller,  for  any  penalties,
interest, or attorney's fees attributable to such suspense funds insofar as such
relate to periods prior to the Effective Date.

     (f) All  production  attributable  to Seller's  interest in the Oil and Gas
Properties,  and all proceeds from the sale thereof, including proceeds from the
sale of any oil in  storage  above the  pipeline  connection,  and any  accounts
receivable  balances  and any  related  Claims  and  Damages,  any of which  are
attributable  to  production  prior to the Effective  Date,  shall be and remain
Seller's

                                       16

<PAGE>

property. All such production therefrom, and all proceeds from the sale
thereof,  attributable  to production  after the Effective Date shall be Buyer's
property.

     (g) Buyer shall  execute,  acknowledge  and file the  Assignment for record
immediately  upon  receipt  thereof  and will  furnish  to  Seller a copy of the
recorded  document  promptly after Buyer's  receipt of such recorded  instrument
from the clerk in each county or parish in which the Assignment is recorded.  In
addition, where applicable, Buyer and Seller shall execute any forms required to
effect a change of operator for all wells conveyed herein.

     (h)(i) Following the Closing, Buyer shall:

               (A) Promptly take all actions  necessary to succeed Seller as the
party to any leases, rights-of-way, contracts, bonds, permits, licenses, and any
other  instrument,   and  to  all  duties,   obligations,   and  liabilities  to
individuals,  private entities, or governmental authorities, with respect to the
Assets to which Seller was a party or by which it was bound,

               (B) Assume and fully perform all of Seller's duties, obligations,
and liabilities to individuals,  private entities, or governmental  authorities,
with  respect to the Assets to which Seller was a party or by which it was bound
on and  after the  Effective  Date,  including  duties,  liabilities,  and other
obligations imposed by any leases,  rights-of-way,  contracts,  bonds,  permits,
licenses,  and any other  instrument  to which Seller was a party or by which it
was bound to the extent such accrued on or after the effective date, and

               (C) Protect, defend, indemnify, and hold Seller harmless from any
and all Claims and Damages with respect

to the  foregoing  provisions of this  subsection  (i) except to the extent such
Claims or Damages arise from: (I) actions taken by Seller prior to the Effective
Date,  or (II) a failure of Seller to take  actions  required by Law or contract
prior to the Effective Date; provided further, that consistent with but not as a
limitation on the foregoing,  any and all obligations regarding the plugging and
abandonment of any wells on the Oil and Gas  Properties  shall be Buyer's rather
than Seller's obligation.

          (ii) At Seller's request, which may be made subsequent to the Closing,
Buyer shall promptly execute a document  confirming  Buyer's  assumption of such
duties,  liabilities,  and other  obligations under subsection (i), but Seller's
failure to request such a document shall not affect  Buyer's  assumption of such
duties, liabilities, and obligations.

          (iii) Notwithstanding subsections (i) or any other provision hereof to
the contrary,  responsibility for all Claims and Damages regarding environmental
matters shall be governed by Sections 6 and 14.

     13. Certain Adjustments.  (a) Appropriate adjustments shall be made between
         --------------------
Buyer and Seller so that:

          (i) all expenses  (including royalty,  overriding  royalty,  and other
payments based on production)  attributable  to Seller's  interest in the Assets
that are  incurred  in the  ownership  and  operation  of the Assets  before the
Effective  Date will be borne by Seller and all  proceeds  payable

                                       17

<PAGE>

to  Seller  for  its  interest  in the  Assets  (net of  applicable  production,
severance,  and  similar  taxes)  from the sale of oil,  gas and other  minerals
produced therefrom before the Effective Date will be received by Seller, and

          (ii) all  expenses  attributable  to  Seller's  interest in the Assets
which are incurred in the ownership and operation of the Assets on and after the
Effective Date will be borne by Buyer and all proceeds payable to Seller for its
interest in the Assets (net of  applicable  production,  severance,  and similar
taxes) from the sale of oil, gas and other  minerals  produced  therefrom on and
after the Effective Date will be received by Buyer.

     (b) In making  the  adjustments  under  subsection  (a):  (i) oil which was
produced from the Oil and Gas Properties  and which was, on the Effective  Date,
stored in tanks located on the Oil and Gas Properties (or located  elsewhere but
used by Seller to store oil produced  from the Oil and Gas  Properties  prior to
delivery to oil  purchasers) and above pipeline  connections  shall be deemed to
have been produced before the Effective Date, and (ii) ad valorem taxes assessed
with respect to the taxing period in which the Effective Date falls,  regardless
of the basis on which such taxes are  computed,  shall be prorated  based on the
number of days in such  period  which  fall on each side of the  Effective  Date
(with the day on which the  Effective  Date  falls  being  counted in the period
after the Effective Date), and shall, where the current year's taxes are not yet
known,  be based on the  previous  year's  taxes.  Each party shall bear its own
local, state or federal income tax liabilities.

     (c) As soon as practicable  after  Closing,  but in any event within ninety
(90) days  thereafter,  Seller  shall  prepare  and  submit to Buyer a  proposed
statement  ("Final  Statement"),  which shall show the final  calculation of the
Purchase Price ("Final  Settlement  Price"),  based on the adjustments for which
this  Agreement  provides.  As soon  as  possible  after  receipt  of the  Final
Statement, but in any event within thirty (30) days after receipt thereof, Buyer
shall deliver to Seller a written report  containing the changes,  if any, which
Buyer proposes being made to the Final  Statement;  provided  however,  if Buyer
fails to  timely  deliver  such  report,  Seller's  Final  Statement  and  Final
Settlement Price shall conclusively be deemed accurate, and such Final Statement
shall be the basis for the  Final  Settlement  Price.  In the event  that  Buyer
submits a response,  the parties shall exercise all reasonable  efforts to agree
with  respect  to the  amounts  due not later  than  ninety  (90) days after the
Closing,  but in any event prior to September 1, 2000.  After  agreement  upon a
Final  Settlement  Price  setting  forth the amount by which the Purchase  Price
shall be  adjusted  (either  upward or  downward),  the amount due shall be paid
within  five  (5)  business  days  thereafter  by the  party  owing  the same in
immediately  available funds.  Amounts due and payable hereunder,  but which are
not paid when due,  shall bear interest at the rate of one and one-half  percent
per month, compounded monthly, or the maximum amount permitted by law, whichever
is less.

     14. Environmental  Indemnity and Hazardous Substances.  (a) Notwithstanding
         --------------------------------------------------
anything herein to the contrary  except  subsection (c), with respect to the Oil
and Gas Properties,  upon Closing, Buyer: (i) waives, releases, remises, acquits
and  forever   discharges,   (ii)  releases  and   relinquishes   any  right  of
contribution,  reimbursement,  indemnification,  or other  rights  of a  similar
nature,  (iii)  assumes  all  liability  for,  and (iv) shall  protect,  defend,
indemnify,  and hold harmless,  Seller and its affiliates,  and their employees,
agents,  successors and assigns, from and with respect to any and all Claims and
Damages  (including  Corrective Action Costs (hereinafter  defined),  monitoring
costs (including  reasonable capital and operating costs),  remediation studies,
and natural

                                       18

<PAGE>

resource  damages)  that may at any  time  arise on  account  of,  or in any way
arising out of, or in connection  with:  (I) the known or unknown  environmental
condition of the Oil and Gas  Properties,  including  any Releases  (hereinafter
defined), and (II) any violation of any federal,  state, or local law (including
statutory and case law), rule, regulation,  ordinance,  permit,  license, order,
judgment,  injunction,  writ,  or  decree  of any  nature  (collectively  "Law")
relating  to the  protection  of  health  or  the  environment,  whether  or not
attributable  to  Seller's  activities  or  the  activities  of  third  parties,
regardless  of whether or not  Seller  was or is aware of such  activities,  and
regardless of whether or not the condition  (including any Release) or violation
occurred before or after the Effective Date.

     (b) As used in this Agreement, the following definitions shall apply:

          (i) "Hazardous  Substances" means any substance or material defined or
designated as hazardous or toxic waste,  hazardous or toxic material,  hazardous
or  toxic  substance,  or  other  similar  term,  by  any  Law  relating  to the
environment  (which Laws include the Federal Resource  Conservation and Recovery
Act of 1976; Federal Comprehensive  Environmental  Response,  Compensation,  and
Liability Act of 1980;  Federal Clean Air Act;  Federal Clean Water Act; Federal
Water Pollution  Control Act; Federal  Insecticide,  Fungicide,  and Rodenticide
Act;  and similar  state Laws in effect as of the relevant  dates,  as such Laws
were or are amended from time to time).

          (ii)  "Releases"  means  any  spilling,   leaking,  pumping,  pouring,
emitting, emptying,  discharging,  injecting,  depositing,  releasing, escaping,
leaching,   dumping  or  disposing  of  Hazardous  Substances  or  non-hazardous
substances  (to the extent the Law  requires  the  removal of the same) into the
atmosphere,  soil, surface water, subsurface strata,  groundwater,  or otherwise
into the  environment,  including  the  abandonment  or  discarding  of barrels,
containers,  tanks,  or other  receptacles  containing or previously  containing
Hazardous Substances.

          (iii)  "Corrective  Action" means,  to the extent required by Law, any
expenditures or activities taken to monitor and, if required,  abate,  clean up,
remove,  treat,  cover or in any other way  remediate  a Release  at,  from,  or
emanating to the Oil and Gas Properties.

          (iv)  "Corrective  Action  Costs"  includes  any and all: (A) costs or
expenses  that arise  directly  from or in connection  with the  performance  of
Corrective  Action,  including  removal,  remediation  or  cleanup  costs,  site
investigation and assessment costs, consultants costs, attorneys fees and expert
fees,  government  oversight and response costs,  penalties,  liens,  interests,
fines,  assessments,  and charges, and (B) any payment of any third party Claims
or Damages (including any federal, state or local government agency) arising out
of or relating to a Release at or from the Oil and Gas Properties.

     (c)(i) If Buyer  within one (1) year after the  Closing:  (A)  discovers  a
violation of an environmental Law that occurred prior to the Effective Date with
respect to any Oil and Gas  Property  and such  violation  was not  disclosed by
Seller to Buyer prior to the Closing,  (B) notifies  Seller (such that notice is
actually  received  by Seller  within  said one (1) year  period) in  reasonable
detail  of the Law that  was  violated  and the  manner  in  which  such Law was
violated,  (C) includes with such notice sufficient  information to substantiate
the violation of such Law, and (D) includes in such notice a reasonable range of
alternative  dates and times for  scheduling a meeting in Denver,  Colorado,  to
take

                                       19

<PAGE>

place within two weeks after the notice was given, to discuss how to address the
violation,  then the  provisions of subsections  (ii) and (iii) shall apply.  No
notice  shall be  effective  unless it complies  with  clauses (A) - (D) of this
subsection.  Buyer shall have the burden of proving that such violation occurred
prior to the  Effective  Date and was not  disclosed by Seller to Buyer prior to
the Closing.

          (ii) At the meeting  referenced in  subsection  (i), the parties shall
discuss  how to remedy the  violation.  Such  approaches  may  include:  (A) the
performance  by  Seller  of  Corrective  Action,  and the  payment  by Seller of
Corrective  Action Costs,  to remedy the  violation,  or (B) the  performance by
Buyer of Corrective Action, and the payment by Buyer of Corrective Action Costs,
coupled with an adjustment in the Purchase Price, and with Buyer otherwise being
responsible  for the violation in accordance  with subsection (a) without regard
to this subsection (c).

          (iii)(A)  If within  sixty  (60) days  following  Seller's  receipt of
Buyer's notice the parties cannot agree on how to remedy the violation specified
in the notice, this Agreement shall be rescinded as to each Oil and Gas Property
as to which the parties  were unable to so agree.  Consistent  with but not as a
limitation on the foregoing,  in such event, and within said 60 day period:  (I)
Buyer  shall  reconvey  each  such Oil and Gas  Property  to Seller by a special
warranty  conveyance,  with such  conveyance to be effective as of the Effective
Date,  (II)  Buyer  shall  account  for  and pay to  Seller  all  proceeds  from
production (net of reasonable expenses) attributable to the period subsequent to
the Effective Date,  provided however,  if and to the extent any such production
was not sold in an arm's length  transaction at generally  prevailing prices for
like  production  from the  Williston  Basin,  the amount to be paid by Buyer to
Seller shall be an amount equal to that which would have been received in such a
transaction,  and (III) Seller shall pay Buyer an amount equal to the  Allocated
Value. Notwithstanding the rescission,  however, Seller shall not be required to
pay Buyer for any capital  improvements made by or on behalf of Buyer to the Oil
and Gas  Property.  Neither  party  shall be  obligated  to pay the other  party
interest (which shall be at the rate specified in Section 13) on amounts owed to
the other party, if such amounts owed are paid within said 60 days.

               (B)  As to  any  Oil  and  Gas  Property  reconveyed  under  this
subsection, Buyer shall grant Seller, without any

further  consideration,  any and all  easements  and  rights-of-way  that may be
necessary or reasonably  convenient  for Seller to access or perform  Corrective
Action with regard to such property.

     (d) Nothing  herein  shall limit a party's  right to seek  contribution  or
reimbursement  from any  non-affiliated  third party who may be responsible  for
Corrective  Action  or  Corrective  Action  Costs,  or for any  other  Claims or
Damages.

     15.  Commissions.  Seller shall  indemnify and hold Buyer harmless from and
          ------------
against any and all Claims and  Damages  arising  out of or  resulting  from any
agreement,  arrangement  or  understanding  alleged  to have been made by, or on
behalf of, Seller with any broker or finder in connection with this Agreement or
the  transaction  contemplated  hereby,  and (b). Buyer shall indemnify and hold
harmless  Seller from and against any and all Claims and Damages  arising out of
or resulting from any agreement,  arrangement or  understanding  alleged to have
been made by, or

                                       20

<PAGE>

on behalf of, Buyer with any broker or finder in connection  with this Agreement
or the transaction contemplated hereby.

     16.  Casualty Loss. In the event of damage by fire or other casualty to the
          --------------
Assets  prior to the  Closing,  this  Agreement  shall  remain in full force and
effect, and in such event, unless Buyer and Seller shall otherwise agree:

     (a) as to each such Asset so damaged  that is an Oil and Gas  Property,  at
Buyer's election  either:  (i) such Asset shall be treated as if it were subject
to an Asserted  Defect,  and the  procedure  provided  for in Section 6 shall be
applicable  thereto,  or (ii) the Purchase  Price will not be  adjusted,  but if
Seller is entitled to make any claims under any insurance policy with respect to
such  damage,  Seller  shall,  at Seller's  election,  either  collect (and when
collected,  or at the Closing,  whichever  last occurs,  pay over to Buyer),  or
assign  to Buyer  (at the  Closing)  (subject  to  Buyer's  review  of  Seller's
insurance policy relating to the loss), such claims, and

     (b) as to each such Asset so damaged  that is not an Oil and Gas  Property,
at Seller's election it shall either collect for (and when collected,  or at the
Closing,  whichever last occurs,  pay over to Buyer), or assign to Buyer (at the
Closing), subject to Buyer's review of Seller's insurance policy that relates to
the loss,  any and all insurance  claims  relating to such loss, and Buyer shall
take title to the Asset affected by such loss without  reduction of the Purchase
Price.

     17. Notices. All notices, demands or communications  ("Notices") under this
         --------
Agreement  shall be in writing and shall be  addressed to the party as set forth
below.  All Notices shall be given by: (i) personal  delivery,  (ii)  electronic
communication,  provided  the  transmitting  device  used by the Party  provides
documentary confirmation of receipt, (iii) first class mail, postage prepaid, or
(iv) a nationally  recognized  overnight  courier service.  All Notices shall be
effective  and shall be  deemed  delivered  (i) if by  personal  delivery  or by
overnight  courier,  on the date of delivery if delivered on or before 4:30 p.m.
on such day;  otherwise,  it shall be deemed to have been  delivered on the next
business day following delivery, (ii) if by electronic communication, on the day
of receipt unless received after 4:30 p.m., in which event it shall be deemed to
have been received on the next business day following  receipt of the electronic
communication,  and  (iii) if  solely  by mail,  on the first to occur or actual
receipt. A party may change its address by Notice to the other party.

If to Seller:

         Tipperary Oil & Gas Corporation
         633 17th Street, Suite 1550
         Denver, Colorado   80202
         Attention: Jeff T. Obourn
         Telephone No: (303) 293-9379
         Facsimile No.:  (303) 292-3428

                                       21

<PAGE>

If to Buyer:

         Nance Petroleum
         P.O. Box 7168
         Billings, Montana   59103
         Attention: Ron Santi
         Telephone No: (406) 245-6248
         Facsimile No.:  (406) 245-9106

     18. Survival of Provisions.  The parties' respective  covenants  (including
         -----------------------
indemnification  obligations) that are to be performed after the Closing or that
may otherwise be applicable  following the Closing,  and the parties' respective
warranties and representations (and disclaimers of warranties,  representations,
and  covenants),  shall  survive  the  Closing  and  shall  not  merge  into the
Assignment  or into  any  other  documents  or  other  instruments  executed  in
connection herewith.  Consistent with, but not as a limitation on the foregoing,
the parties' respective obligations under Sections 6(a)(iii) and 7(a)(ii)(E) (to
the extent the same are, by mutual  agreement,  not  performed at Closing),  and
Sections 2(c), 3, 4, 5(c)(ii),  6(b)(i)(A), 6(e), 8, 11(c), 12(d), 12(e), 12(h),
13(c),  14, 15, 17, 18, 20 - 27, 30, and 32 shall  survive  the  Closing and the
delivery of the Assignment.

     19.  Operations.  Subject  to the  terms  and  provisions  of any  existing
          -----------
agreements covering the Assets, Seller agrees to turn over to Buyer, at Closing,
the  operations  of those Assets for which it is currently  serving as operator.
Seller shall take all reasonable  actions necessary to attempt to cause Buyer to
become successor operator as contemplated herein.

     20.  Confidentiality   Agreement.   The  Confidentiality   Agreement  shall
          ----------------------------
terminate  only if and after Closing  occurs and the  Assignment is executed and
delivered.

     21. Further  Assurances.  Without further  consideration,  each party shall
         --------------------
take  such  further  actions  and  execute  such  further  documents  as  may be
reasonably  requested by the other party in order to effectuate  the purpose and
intent  of this  Agreement,  including  (if  Closing  occurs)  division  orders,
transfer orders and other documents.

     22.  Governing Law, and Venue.  (a) This Agreement  shall be: (i) deemed to
          -------------------------
have been negotiated,  executed, and performed in Colorado, and (ii) governed by
and  interpreted in accordance  with the laws of Colorado,  except to the extent
its laws would otherwise apply the laws of another jurisdiction.

     (b)  Exclusive  venue for the  resolution  of any disputes  regarding  this
Agreement shall be in a state or federal court of competent jurisdiction sitting
in Colorado.  If and to the extent  Buyer does not have a  registered  agent for
service of process in Colorado, then for purposes hereof, service of process may
be accomplished in the manner of service upon the Colorado Secretary of State or
in such other  manner as may be provided by law for  service  upon  corporations
that are required to have a registered  agent in Colorado but that do not have a
registered agent.

                                       22

<PAGE>

     23. Costs. Except as may be expressly provided otherwise herein, each party
         ------
shall bear its own costs and expenses in  connection  with the  negotiation  and
performance of this Agreement.

     24. Entire  Agreement;  Amendment;  and Waiver.  (a) This Agreement,  which
         -------------------------------------------
includes any and all exhibits,  contains the entire  understanding and agreement
of the parties and supersedes all prior  agreements and  understandings  between
the parties relating to the subject matter hereof.

     (b) No  amendment  or  modification  to this  Agreement  shall be effective
unless be in writing and signed by all parties.

     (c) No waiver by a party of any breach by the other party of any  provision
of this Agreement shall be deemed a waiver of any preceding or succeeding breach
of the same or any other  provisions  hereof.  No such waiver shall be effective
unless in writing and then only to the extent expressly set forth in writing.

     25. Section and Other  Headings;  and  Construction.  The section and other
         ------------------------------------------------
headings  contained in this  Agreement are for reference  only and have no legal
significance.  The use of  pronouns is generic and they shall mean any gender as
appropriate.  The terms "include",  "including," or similar terminology shall be
construed  as  meaning  without  limitation  as to the  nature  or  scope of the
referenced  matters.  The terms  "herein" or "hereof,"  or similar  terminology,
shall be construed as referring to this  Agreement  rather than only the section
in which such term appears. References to subsections shall refer to the section
or subsection in which they appear, unless otherwise noted. This Agreement shall
be deemed to have been drafted by both  parties,  and therefore the rule against
construing   ambiguities   against  the  party  drafting  a  contract  shall  be
inapplicable to this Agreement.

     26. Severability.  If any provision of this Agreement is held to be invalid
         -------------
or  unenforceable  in  whole  or in  part  in any  relevant  jurisdiction,  such
provision, only to the extent invalid or unenforceable,  shall be severable from
this  Agreement,  and the other  provisions  of this  Agreement  (along with the
provision at issue,  to the extent that it would be valid and  enforceable,  and
such provision shall be deemed to be so reformed) shall remain in full force and
effect  in such  jurisdiction  and the  remaining  provisions  hereof  shall  be
liberally  construed to carry out the purpose and intent of this Agreement.  The
invalidity  or  unenforceability,  in whole or in part, of any provision of this
Agreement  in any  relevant  jurisdiction  shall  not  affect  the  validity  or
enforceability  of such  provision  in any  other  jurisdiction,  nor  shall the
invalidity or  unenforceability  of any provision of this Agreement with respect
to any Person  affect the  validity or  enforceability  of such  provision  with
respect to any other Person.

     27.  Attorney's Fees. If litigation is commenced  between the parties,  the
          ----------------
prevailing  party  shall be  entitled  to  recover  from  the  other  party  all
reasonable  attorney fees and costs. The prevailing party shall include: a party
who  dismisses  an action in  exchange  for sums  allegedly  due;  the party who
received performance from the other party for an alleged breach of contract or a
desired remedy where the performance is substantially equal to the relief sought
in an action;  or the party  determined to be the prevailing party by a court of
law.

                                       23

<PAGE>

     28.  Restrictions on Assignment.  Neither party may assign its rights under
          ---------------------------
this Agreement and any such  assignment in violation of this provision  shall be
void; provided however,  that  notwithstanding the foregoing,  Seller may assign
its rights under this  Agreement to a subsidiary or other  affiliate  subject to
Buyer's approval, which may not be unreasonably withheld.

     29. Time of the Essence.  Time is of the essence of this Agreement.  If the
         --------------------
last day permitted for the  performance  of any act required or permitted  under
this  Agreement  falls on a  Saturday,  Sunday,  or  holiday,  the time for such
performance shall be extended to the next succeeding business day.

     30. Parties in Interest;  Successors and Assigns.  This Agreement  shall be
         ---------------------------------------------
binding upon and inure to the benefit of and be  enforceable  by the  successors
and permitted assigns of Seller or Buyer.  Nothing in this Agreement is intended
to confer  upon any other  person or entity any rights or  remedies  under or by
reason of this Agreement.

     31. No  Publicity.  Prior to closing,  neither Buyer nor Seller shall issue
         --------------
any  publicity or press release  concerning  this  Agreement or the  transaction
contemplated  hereby without the other party's prior written consent unless,  in
the written  opinion of a party's legal counsel,  such disclosure is required by
applicable law or other  applicable  rules or  regulations  of any  governmental
authority or stock exchange and such publicity or press release contains no more
than the minimum information necessary to comply therewith. This provision shall
not replace or restrict any provision in any prior agreement between the parties
affecting confidentiality or the disclosure of information about the Assets.

     32. No  Recording.  This  Agreement  shall not be recorded by either  party
         --------------
without the prior consent of the other party.

         IN WITNESS WHEREOF, this Agreement is executed by the parties hereto on
the date set forth above.

SELLER:                                          BUYER:

TIPPERARY OIL & GAS CORPORATION                  NANCE PETROLEUM CORPORATION

By:/s/ DAVID L. BRADSHAW                         By:/s/ ROBERT L. NANCE
   ---------------------                            -------------------
Name:  David L. Bradshaw                         Name:  Robert L. Nance
Title: President & CEO                           Title: President & CEO

                                       24

<PAGE>

                                                     Purchase and Sale Agreement
                                         Between TIPPERARY OIL & GAS CORPORATION
                                                 and NANCE PETROLEUM CORPORATION

                                   EXHIBIT "C"
                                   -----------

                           ASSIGNMENT AND BILL OF SALE
                           ---------------------------

     THIS ASSIGNMENT AND BILL OF SALE  ("Assignment"),  dated April 28, 2000, is
between Tipperary Oil & Gas Corporation,  a Texas corporation ("Assignor"),  the
address of which is 633 17th Street,  Suite 1550,  Denver,  Colorado 80202,  and
Nance Petroleum Corporation, a Montana corporation ("Assignee"),  the address of
which is 550 North 31st Street, Suite 500, Billings, Montana 59101.

                                    RECITALS:

     A. The parties entered into that certain  Purchase and Sale Agreement dated
April   10,  2000  ("Agreement"),  pursuant  to which  Assignor  agreed to sell,
assign,  and convey,  and Assignee agreed to purchase the hereinafter  described
Assets.

     B. The  parties  have  consummated  the  purchase  and  sale of the  Assets
pursuant to the Agreement,  and this  Assignment is being executed and delivered
pursuant thereto.

     NOW  THEREFORE,  for good  and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1. Conveyance and Reservation.  (a) Assignor does hereby sell,  assign, and
convey unto Assignee the following described  properties,  rights and interests,
but only to the  extent  related  to the real  property  described  in Exhibit A
("Property"):

          (i) All of Assignor's right, title, and interest,  if any, in all oil,
gas  and  other  mineral  interests,  including  Assignor's  right,  title,  and
interest,  if any, in all: (A) oil and gas leases and any other mineral  leases,
(B) royalties and overriding royalties, (C) production payments, (D) net profits
interests,  (E) reversionary  mineral interests,  (F) unitization,  pooling, and
communitization agreements, and (G) declarations and orders (including all units
formed under orders, rules, regulations,  or other official acts of any federal,
state,  or  other  authority  having  jurisdiction,  and  voluntary  unitization
agreements,  designations  and  declarations),  subject  to any  exceptions  and
reservations contained in Exhibit A;

          (ii) All of Assignor's  right,  title,  and  interest,  if any, in all
fixtures,  equipment, and other personal property, to the extent relating to the
wells  described  in  Exhibit  B  and  their  appurtenant  production,  storage,
treating,  gathering, and transportation  facilities,  situated on the Property;
and

          (iii) all  contracts;  lease  files;  abstracts  and  title  opinions;
production records;  well files;  permits and licenses;  accounting records (but
excluding all general financial accounting or tax

                                       1

<PAGE>

accounting  records that do not pertain  exclusively to the Property);  electric
logs and geological,  engineering, and other technical data and records (subject
to any contractual or other  restrictions  relating to the transfer of such data
and records); and other files, documents and records that directly relate to the
Property.

     (b) Assignor's interest,  if any, in the assets described in subsection (a)
is herein sometimes collectively called the "Assets."

     (c) Assignor excepts and reserves from this  Assignment,  and reserves unto
itself,  all of its right,  title,  and interest in and to the surface estate of
the  Property  (to the extent of any  surface  estate  interests  not created by
lease,  easement,  or  right-of-way)  and all  rights of any  nature  whatsoever
appurtenant  or  otherwise  associated  therewith,  and such right,  title,  and
interest does not constitute any part of the Assets; provided however,  Assignor
grants  Assignee  the right to use the  surface  of the  Property  for  purposes
reasonably  necessary or incidental  to oil and gas  operations on the Property,
but Assignee shall protect,  defend,  indemnify, and hold Assignor harmless from
and against  any and all Claims  (hereinafter  defined) or Damages  (hereinafter
defined) resulting from such use.

     (d) Except for: (i) easements and rights-of-way of record, (ii) other third
party rights (if any) that could not reasonably be expected to have a materially
adverse  affect  on the  use of the  Assets,  and  (iii)  liens  for  taxes  and
assessments  due but not yet  payable,  Assignor  warrants  title to the  Assets
against  anyone  claiming any interest  therein  arising by,  through,  or under
Assignor,  but Assignor makes no other  warranty,  representation,  or covenant,
express or implied, statutory or otherwise, as to title to the Assets.

     (e) As of the  effective  date hereof,  Assignee  assumes all of Assignor's
duties, liabilities and obligations relating to the Assets to which Assignor was
a party or by which  it was  bound on and  after  the  date  hereof,  and  shall
protect,  defend,  indemnify, and hold Assignor harmless from any and all Claims
and Damages  with respect  thereto,  except to the extent such Claims or Damages
arise from: (i) actions taken by Assignor prior to the effective date hereof, or
(ii) a failure of Assignor to take actions required by Law (hereinafter defined)
or contract prior to the effective date hereof.

     2. Disclaimer of Warranties. (a) Except as provided in Section 1(d) hereof,
Assignor makes no warranty,  representation, or covenant, express or implied, as
to  its  title  to  the  Assets,   and   Assignor   makes  no  other   warranty,
representation, or covenant, express or implied, with respect to the Assets.

     (b) CONSISTENT  WITH AND NOT AS A LIMITATION ON SUBSECTION  (a), THE ASSETS
ARE  HEREBY  PURCHASED,  SOLD,  AND  CONVEYED  "AS IS,  WHERE IS",  WITHOUT  ANY
WARRANTY,   REPRESENTATION,  OR  COVENANT,  EXPRESS  OR  IMPLIED,  STATUTORY  OR
OTHERWISE, RELATING TO:

          (i) THE CONDITION, QUANTITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE
OR  ANY  PURPOSE,   CONFORMITY  TO  THE  MODELS  OR  SAMPLES  OF  MATERIALS,  OR
MERCHANTABILITY  OF  ANY  IMMOVABLE  PROPERTY,   MOVABLE

                                       2

<PAGE>

PROPERTY,  EQUIPMENT,  INVENTORY,  MACHINERY,  AND OTHER  FIXTURES  AND PERSONAL
PROPERTY CONSTITUTING PART OF THE ASSETS;

          (ii) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM REDHIBITORY VICES
OR DEFECTS OR OTHER VICES OR DEFECTS, WHETHER KNOWN OR UNKNOWN; AND

          (iii) ANY AND ALL IMPLIED  WARRANTIES,  REPRESENTATIONS,  OR COVENANTS
EXISTING UNDER APPLICABLE LAW NOW OR HEREAFTER IN EFFECT.

     (c) CONSISTENT WITH BUT NOT AS A LIMITATION ON SUBSECTIONS (a) AND (b):

          (i)  ASSIGNOR  IS SELLING  AND  ASSIGNEE IS BUYING THE ASSETS WITH ALL
DEFECTS AND FAULTS  (LATENT OR  APPARENT)  AND IT ASSUMES THE RISK THAT  ADVERSE
PAST,  PRESENT OR FUTURE  PHYSICAL  CONDITIONS MAY NOT HAVE BEEN REVEALED BY ITS
INVESTIGATIONS, AND

          (ii) ASSIGNOR MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED,
STATUTORY OR OTHERWISE, AS TO THE ACCURACY OR COMPLETENESS OF ANY DATA, REPORTS,
RECORDS,  PROJECTIONS,  INFORMATION,  OR  OTHER  MATERIALS  NOW  HERETOFORE,  OR
HEREAFTER  FURNISHED  OR MADE  AVAILABLE  TO  ASSIGNEE IN  CONNECTION  HEREWITH,
INCLUDING PRICING ASSUMPTIONS OR QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF
ANY)  ATTRIBUTABLE  TO THE ASSETS OR THE ABILITY OR  POTENTIAL  OF THE ASSETS TO
PRODUCE  HYDROCARBONS OR THE ENVIRONMENTAL  CONDITION OF THE ASSETS OR ANY OTHER
MATERIALS FURNISHED OR MADE AVAILABLE TO ASSIGNEE BY OR ON BEHALF OF ASSIGNOR.

     3. Environmental  Indemnity and Hazardous  Substances.  (a) Notwithstanding
anything  herein to the  contrary,  with  respect to the Assets,  Assignee:  (i)
waives,  releases,  remises,  acquits and forever discharges,  (ii) releases and
relinquishes any right of contribution, reimbursement, indemnification, or other
rights of a similar  nature,  (iii)  assumes all  liability  for, and (iv) shall
protect, defend, indemnify, and hold harmless,  Assignor and its affiliates, and
their employees,  agents,  successors and assigns,  from and with respect to any
and all rights, claims, demands, causes of action, and legal, administrative, or
arbitration proceedings,  of any and every nature (collectively,  "Claims"), and
injuries, deaths, damages, or obligations of any and every nature resulting from
or that gave rise to any Claim, including liabilities, losses, costs, penalties,
expenses,  judgments, fines, settlements,  interest, reasonable attorney's fees,
Corrective  Action Costs  (hereinafter  defined),  monitoring  costs  (including
reasonable  capital  and  operating  costs),  remediation  studies,  and natural
resource  damages  and  other  related  expenses  of any  nature  (collectively,
"Damages")  (provided  however,  that Damages  shall not include  consequential,
special,  incidental, or punitive damages) that may at any time arise on account
of,  or in any way  arising  out of,  or in  connection  with:  (I) the known or
unknown   environmental   condition  of  the  Assets,   including  any  Releases
(hereinafter  defined),  and (II) any violation of any federal,  state, or local
law (including  statutory and case law), rule,  regulation,  ordinance,  permit,
license,   order,   judgment,

                                       3
<PAGE>

injunction,  writ, or decree of any nature  (collectively "Law") relating to the
protection  of  health  or  the  environment,  whether  or not  attributable  to
Assignor's activities or the activities of third parties,  regardless of whether
or not Assignor was or is aware of such activities, and regardless of whether or
not the condition  (including any Release) or violation occurred before or after
the effective date hereof.

     (b) As used herein, the following definitions shall apply:

          (i) "Hazardous  Substances" means any substance or material defined or
designated as hazardous or toxic waste,  hazardous or toxic material,  hazardous
or  toxic  substance,  or  other  similar  term,  by  any  Law  relating  to the
environment  (which Laws include the Federal Resource  Conservation and Recovery
Act of 1976; Federal Comprehensive  Environmental  Response,  Compensation,  and
Liability Act of 1980;  Federal Clean Air Act;  Federal Clean Water Act; Federal
Water Pollution  Control Act; Federal  Insecticide,  Fungicide,  and Rodenticide
Act;  and similar  state Laws in effect as of the relevant  dates,  as such Laws
were or are amended from time to time).

          (ii)  "Releases"  means  any  spilling,   leaking,  pumping,  pouring,
emitting, emptying,  discharging,  injecting,  depositing,  releasing, escaping,
leaching,   dumping  or  disposing  of  Hazardous  Substances  or  non-hazardous
substances  (to the extent the Law  requires  the  removal of the same) into the
atmosphere,  soil, surface water, subsurface strata,  groundwater,  or otherwise
into the  environment,  including  the  abandonment  or  discarding  of barrels,
containers,  tanks,  or other  receptacles  containing or previously  containing
Hazardous Substances.

          (iii)  "Corrective  Action" means,  to the extent required by Law, any
expenditures or activities taken to monitor and, if required,  abate,  clean up,
remove,  treat,  cover or in any other way  remediate  a Release  at,  from,  or
emanating to the Assets.

          (iv)  "Corrective  Action  Costs"  includes  any and all: (A) costs or
expenses  that arise  directly  from or in connection  with the  performance  of
Corrective  Action,  including  removal,  remediation  or  cleanup  costs,  site
investigation and assessment costs, consultants costs, attorneys fees and expert
fees,  government  oversight and response costs,  penalties,  liens,  interests,
fines,  assessments,  and charges, and (B) any payment of any third party Claims
or Damages (including any federal, state or local government agency) arising out
of or relating to a Release at or from the Assets.

     (c)(i) If Assignee within one (1) year after the date hereof: (A) discovers
a violation of an  environmental  Law that occurred  prior to the Effective Date
hereof with  respect to any  Property and such  violation  was not  disclosed by
Assignor to Assignee prior to the date hereof,  (B) notifies Assignor (such that
notice is  actually  received by  Assignor  within said one (1) year  period) in
reasonable  detail of the Law that was violated and the manner in which such Law
was  violated,   (C)  includes  with  such  notice  sufficient   information  to
substantiate  the  violation  of such Law,  and (D)  includes  in such  notice a
reasonable  range of  alternative  dates and times for  scheduling  a meeting in
Denver,  Colorado, to take place within two weeks after the notice was given, to
discuss how to address the violation,  then the  provisions of subsections  (ii)
and (iii) shall  apply.  No notice shall be  effective  unless it complies  with
clauses (A) - (D) of this subsection.  Assignee shall have the burden

                                       4

<PAGE>

of proving that such  violation  occurred prior to the Effective Date hereof and
was not disclosed by Assignor to Assignee prior to the date hereof.

          (ii) At the meeting  referenced in  subsection  (i), the parties shall
discuss  how to remedy the  violation.  Such  approaches  may  include:  (A) the
performance  by Assignor of  Corrective  Action,  and the payment by Assignor of
Corrective  Action Costs,  to remedy the  violation,  or (B) the  performance by
Assignee of Corrective  Action, and the payment by Assignee of Corrective Action
Costs,  coupled with an  adjustment  in the purchase  price,  and with  Assignee
otherwise being  responsible for the violation in accordance with subsection (a)
without regard to this subsection (c).

          (iii)(A) If within  sixty (60) days  following  Assignor's  receipt of
Assignee's  notice  the  parties  cannot  agree on how to remedy  the  violation
specified in the notice,  this Agreement  shall be rescinded as to each Property
as to which the parties  were unable to so agree.  Consistent  with but not as a
limitation on the foregoing,  in such event, and within said 60 day period:  (I)
Assignee  shall  reconvey each such  Property to Assignor by a special  warranty
conveyance,  with such  conveyance  to be  effective  as of the  effective  time
hereof,  (II)  Assignee  shall account for and pay to Assignor all proceeds from
production (net of reasonable expenses) attributable to the period subsequent to
the  effective  time  hereof,  provided  however,  if and to the extent any such
production was not sold in an arm's length  transaction at generally  prevailing
prices for like  production from the Williston  Basin,  the amount to be paid by
Assignee  to  Assignor  shall be an amount  equal to that which  would have been
received in such a transaction,  and (III) Assignor shall pay Assignee an amount
equal to the Allocated Value, as defined in the Agreement.  Notwithstanding  the
rescission,  however,  Assignor  shall not be required to pay  Assignee  for any
capital  improvements made by or on behalf of Assignee to the Property.  Neither
party shall be obligated to pay the other party  interest on amounts owed to the
other party, if such amounts owed are paid within said 60 days.

               (B) As to any Property reconveyed under this subsection, Assignee
shall grant Assignor, without any further

consideration,  any and all easements and rights-of-way that may be necessary or
reasonably  convenient for Assignor to access or perform  Corrective Action with
regard to such property.

     (d) Nothing  herein  shall limit a party's  right to seek  contribution  or
reimbursement  from any  non-affiliated  third party who may be responsible  for
Corrective  Action  or  Corrective  Action  Costs,  or for any  other  Claims or
Damages.

     4. Subject to  Agreement.  This  Assignment  is subject to the terms of the
Agreement,  which terms are incorporated  herein by this reference,  survive the
execution  and  delivery of this  Agreement,  and are  binding on  Assignor  and
Assignee and their respective successors and assigns.

     5.  Counterparts.  This Assignment may be executed in several  counterparts
all of which are identical,  except that, to facilitate recordation,  in certain
counterparts  hereof,  only that  portion  of Exhibit A that  contains  specific
descriptions  of  assets  located  in the  recording  jurisdiction  in which the
particular  counterpart  is to be recorded are included,  and other  portions of
Exhibit A are included by reference only. All such  counterparts  together shall
constitute  one and the same  instrument.  Complete  copies  of this  Assignment
containing the entire Exhibit A have been retained by Assignor and Assignee.

                                       5

<PAGE>

     IN WITNESS WHEREOF,  this Assignment has been executed and delivered on the
date first set out above, but effective as to runs of oil and deliveries of gas,
and for all other purposes,  as of 7:00 a.m., local time at the locations of the
Assets, on March 1, 2000.

ASSIGNOR:                                        ASSIGNEE:

TIPPERARY OIL & GAS CORPORATION                  NANCE PETROLEUM CORPORATION

By:/s/ DAVID L. BRADSHAW                         By:/s/ ROBERT L. NANCE
   ---------------------                            -------------------
Name:  David L. Bradshaw                         Name:  Robert L. Nance
Title: President & CEO                           Title: President & CEO

                                       6

<PAGE>

                                        ASSIGNOR:

ATTEST:                                 TIPPERARY OIL & GAS CORPORATION

By:/s/ ELAINE R. TREECE                 By:/s/ JEFF T. OBOURN
   --------------------                    ------------------
Name:Elaine R. Treece                   Name:Jeff T. Obourn
Title:Corporate Secretary               Title:Sr. Vice President - Operations

                                        ASSIGNEE:

                                        NANCE PETROLEUM CORPORATION

                                        By:/s/ RONALD B. SANTI
                                           -------------------
                                        Name:Ronald B. Santi
                                        Title:Attorney in Fact

                                 ACKNOWLEDGMENTS

STATE OF COLORADO          )
                           ) ss
City and County of Denver  )

     On this 28th day of April,  2000, before me, a Notary Public of said state,
duly commissioned and sworn,  appeared David L. Bradshaw,  known to me to be the
person whose name is subscribed to the within  instrument as President and Chief
Executive Officer of TIPPERARY OIL & GAS CORPORATION,  a Texas corporation,  and
acknowledged to me that such corporation executed the same.

         Witness my hand and official seal.

                                              /s/ MICHELLE R. S. SULLIVAN
                                              ---------------------------
                                              Michelle R. S. Sullivan
                                              Notary Public, State of Colorado

                                              My commission expires:12-19-02

STATE OF MONTANA            )
                            ) ss
County of Yellowstone       )

     On this 28th day of April,  2000, before me, a Notary Public of said state,
duly  commissioned  and sworn,  appeared Robert L. Nance,  known to me to be the
person whose name is subscribed to the within  instrument as President and Chief
Executive Officer of NANCE PETROLEUM  CORPORATION,  a Montana  corporation,  and
acknowledged to me that such corporation executed the same.

         Witness my hand and official seal.

                                              /s/ STEVEN D. HART
                                              ------------------
                                              Steven D. Hart
                                              Notary Public, State of Montana

                                              My commission expires:6-28-00

                                       7

<PAGE>

                                                     Purchase and Sale Agreement
                                         Between TIPPERARY OIL & GAS CORPORATION
                                                 and NANCE PETROLEUM CORPORATION

                                   EXHIBIT "D"
                                   -----------

                               PREFERENTIAL RIGHTS
                               -------------------

NEGOTIATED WELLS WITH PREF RIGHTS IN THE JOA
--------------------------------------------

MONTANA
-------

BIDEGARAY B, C3 WSW
NORBY 2

RIDGELAWN DUPEROW UNIT
SHINY 30-42

SORENSEN B 1, C2, D3
STEINBEISSER A 3
WHITNEY A1, B2, C3

NORTH DAKOTA
------------

FELLAND, HELLEN E 1-30
GREEN, B A  #1-5
LINDVIG 10-21

NORBY, HENRY 1-20
SULLIVAN 3-29

                                       1

<PAGE>

                                                     Purchase and Sale Agreement
                                         Between TIPPERARY OIL & GAS CORPORATION
                                                 and NANCE PETROLEUM CORPORATION

                                  EXHIBIT "D-1"
                                  -------------

                              OFFICER'S CERTIFICATE
                              ---------------------

         TIPPERARY OIL & GAS CORPORATION,  a Texas corporation  ("Seller"),  the
address of which is 633 17th Street,  Suite 1550,  Denver,  Colorado 80202, with
respect  to that  certain  Purchase  and Sale  Agreement  dated  April 10,  2000
("Agreement"),  between  Seller  and  Nance  Petroleum  Corporation,  a  Montana
corporation ("Buyer"), hereby certifies that: (i) Seller has materially complied
with and performed all obligations  pertaining to Seller,  to be performed prior
to the  Closing,  except  for those  waived by Buyer,  and (ii) all of  Seller's
warranties and  representations  in the Agreement  remain true and correct as of
the date hereof, the same as if made as of the date hereof.

         Executed as of this 3rd day of May, 2000.

                                          SELLER:

                                          TIPPERARY OIL & GAS CORPORATION

                                          By:/s/ DAVID L. BRADSHAW
                                             ---------------------
                                             David L. Bradshaw
                                             President & Chief Executive Officer

                                       1

<PAGE>

                                                     Purchase and Sale Agreement
                                         Between TIPPERARY OIL & GAS CORPORATION
                                                 and NANCE PETROLEUM CORPORATION

                                  EXHIBIT "D-2"
                                  -------------

                              OFFICER'S CERTIFICATE
                              ---------------------

         NANCE  PETROLEUM  CORPORATION,  a Montana  corporation  ("Buyer"),  the
address  of which  is 550  North  31st  Street,  Suite  500,  Billings,  Montana
59101,with  respect to that certain  Purchase and Sale Agreement dated April 10,
2000 ( "Agreement"),  between Buyer and TIPPERARY OIL & GAS CORPORATION, a Texas
corporation  ("Seller"),  the address of which is 633 17th  Street,  Suite 1550,
Denver, Colorado 80202, hereby certifies that: (i) Buyer has materially complied
with and performed all obligations pertaining to Buyer, to be performed prior to
the  Closing,  except  for  those  waived  by  Seller,  and (ii) all of  Buyer's
warranties and  representations  in the Agreement  remain true and correct as of
the date hereof, the same as if made as of the date hereof.

         Executed as of this 3rd day of May, 2000.

                                          BUYER:
                                          NANCE PETROLEUM CORPORATION

                                          By:/s/ ROBERT L. NANCE
                                             -------------------
                                             Robert L. Nance
                                             President & Chief Executive Officer

                                       1

<PAGE>

                                                     Purchase and Sale Agreement
                                         Between TIPPERARY OIL & GAS CORPORATION
                                                 and NANCE PETROLEUM CORPORATION

                                   EXHIBIT "E"
                                   -----------

                              NON-FOREIGN AFFIDAVIT
                              ---------------------
                        Exemption from Withholding of Tax
                        ---------------------------------
                                       for
                                       ---
                  Dispositions of U.S. Real Property Interests
                  --------------------------------------------

     Section 1445 of the Internal  Revenue Code  provides that a transferee of a
U.S.  real property  interest  must withhold tax if the  transferor is a foreign
person.  To inform  Nance  Petroleum  Corporation  that  withholding  tax is not
required upon the disposition of U.S. real property interests by Tipperary Oil &
Gas Corporation, the undersigned hereby certifies the following:

1.   Tipperary  Oil &  Gas  Corporation  is  not a  nonresident  alien,  foreign
     corporation,  foreign  partnership,  foreign  trust,  or foreign estate for
     purposes of U.S. income tax;

2.   That  taxpayer  identifying  number of Tipperary Oil & Gas  Corporation  is
     75-1446759; and

3.   The office  address of the  financial  headquarters  of Tipperary Oil & Gas
     Corporation is 633 17th Street, Suite 1550, Denver, Colorado 80202.

     Tipperary Oil & Gas Corporation  understands that this certification may be
disclosed to the Internal Revenue Service by Nance Petroleum  Corporation or its
affiliates or parent,  and that any false  statement  contained  herein could be
punished by fine, imprisonment, or both.

     Under   penalties  of  perjury,   I  declare  that  I  have  examined  this
certification and, to the best of my knowledge and belief, it is true,  correct,
complete, and further declare I have authority to sign this document.

TIPPERARY OIL & GAS CORPORATION

By:/s/ DAVID L. BRADSHAW
   ---------------------
   David L. Bradshaw
   President & Chief Executive Officer

     SUBSCRIBED  AND SWORN TO by said  David L.  Bradshaw  before me this day of
May, 2000, to certify which witness my hand and seal of office.

                                  /s/ PHYLLIS KAJIWARA
                                  --------------------
                                  Phyllis Kajiwara
                                  Notary Public in and for the State of Colorado

                                  My commission expires:7-31-02

                                       1REGISTRATION RIGHTS AGREEMENT

                            Dated as of June 14, 2000

                                     between

                          DYNAMIC MATERIALS CORPORATION

                                       and

                                   SNPE, INC.

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I DEFINITIONS 1

ARTICLE II REGISTRATION RIGHTS.................................................4

   SECTION 2.1. Registration on Demand.........................................4
      2.1.1.    Demand.........................................................4
      2.1.2.    Shelf Registration.............................................4
      2.1.3.    Registration Statement Form....................................4
      2.1.4.    Effective Registration Statement...............................5
      2.1.5.    Limitations on Registration on Demand, Shelf Registrations.....5
      2.1.6.    Holder's Ability to Withdraw Registration Statement............5
      2.1.7.    Selection of Underwriter.......................................6
      2.1.8.    Registration of Other Securities...............................6
      2.1.9.    Suspension.....................................................6

   SECTION 2.2. Incidental Registration........................................6

   SECTION 2.3. Registration Procedures........................................7

   SECTION 2.4. Expenses......................................................11

   SECTION 2.5. Marketing Restrictions........................................12

   SECTION 2.6. Termination of Rights.........................................13

   SECTION 2.7. Rule 144......................................................13

   SECTION 2.8. Indemnification...............................................14

ARTICLE III CHANGES IN COMPANY COMMON STOCK...................................18

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY......................19

ARTICLE V BENEFITS OF AGREEMENT...............................................20

ARTICLE VI MISCELLANEOUS......................................................20

   SECTION 6.1.  Notices......................................................20

   SECTION 6.2.  Waivers; Amendments..........................................20

   SECTION 6.3.  Governing Law................................................21

   SECTION 6.4.  Survival of Agreements; Representations and
                 Warranties, etc..............................................21

   SECTION 6.5.  Covenants to Bind Successors and Assigns.....................21

   SECTION 6.6.  Severability.................................................21

   SECTION 6.7.  Section Headings.............................................21

   SECTION 6.8.  Counterparts.................................................21

   SECTION 6.9.  Termination..................................................22

   SECTION 6.10. Complete Agreement...........................................22

   SECTION 6.11. No Inconsistent Agreements...................................22

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement"),  dated as of June 14,
2000, is made and entered into by and between Dynamic Materials  Corporation,  a
Delaware  corporation  (the "Company"),  and SNPE, Inc., a Delaware  corporation
(the "Holder").

     WHEREAS,  the  Company  is  issuing  to the  Holder,  on the  date  hereof,
2,109,091  shares (the  "Shares") of Common  Company  stock of the Company,  par
value  $.05 per share  (the  "Company  Common  Stock"  (as  defined in the Stock
Purchase  Agreement)) pursuant to a Stock Purchase Agreement dated as of January
20, 2000 between the Company and the Holder,  as amended by  Amendment  No. 1 to
the Stock Purchase  Agreement,  dated as of April 20, 2000 (the "Stock  Purchase
Agreement"); and

     WHEREAS,  concurrently  with the  issuance  of the  Shares,  the Company is
entering into this Agreement to define the rights that exist among the Holder on
the one hand, and the Company, on the other, with respect to the registration of
the Registrable Securities (as defined herein);

     WHEREAS,  contemporaneously with the purchase of the Shares under the Stock
Purchase  Agreement,  the Holder will  purchase  from the Company a  Convertible
Subordinated Note (the "Note") in the aggregate  principal amount of $1,200,000,
convertible into additional shares of Company Common Stock ("Additional Shares")
(collectively,  the Shares and Additional  Shares are the "Company  Shares") and
having such other terms as the parties have agreed (collectively,  the 2,109,091
Shares of Company Common Stock and the Additional  Shares are referred to herein
as the "Shares");

     NOW,  THEREFORE,  in consideration  of the mutual premises,  agreements and
covenants hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     For  purposes  of this  Agreement,  the  following  terms  shall  have  the
following respective meanings (each such meaning to be equally applicable to the
singular and plural forms thereof):

     "Additional Shares" has the meaning set forth in the third "WHEREAS" clause
of this Agreement.

     "Agreement" means this Registration Rights Agreement.

     "Commission"  shall mean the  Securities and Exchange  Commission,  and any
other similar or successor agency of the United States federal government at the
time administering the Securities Act or the Securities Exchange Act.

     "Company" has the meaning assigned such term in the preamble hereto.

     "Company  Common  Stock" has the meaning  set forth in the first  "WHEREAS"
Clause.

     "Company Shares" has the meaning set forth in the third "WHEREAS" clause.

     "Demand" has the meaning assigned such term in Section 2.1.1.

     "Demand Holder" has the meaning assigned such term in Section 2.1.1.

     "Holder"  has  the  meaning  assigned  such  term in the  preamble  to this
Agreement.

     "Holder of Registrable Securities" shall mean a person who owns Registrable
Securities  or has the present  right to acquire  such  Registrable  Securities,
whether or not such  acquisition has actually been effected and disregarding any
legal restrictions upon the exercise of such right.

     "NASD" means the National Association of Securities Dealers, Inc.

     "Notice Holder" has the meaning assigned such term in Section 2.1.1.

     "Prospectus"  means the prospectus  (including any preliminary  prospectus)
included  in any  Registration  Statement,  as  amended or  supplemented  by any
prospectus supplement with respect to the terms of the offering, registering for
sale any of the Registrable  Securities and all other amendments and supplements
to  the  Prospectus,  including  post-effective  amendments,  and  all  material
incorporated by reference in such Prospectus.

     "Registrable  Securities"  means  the  Shares  and  the  Additional  Shares
received upon exercise of the option to convert any equity securities into which
such Shares and the  Additional  Shares may be exchanged  after giving effect to
the terms of any  reorganization,  recapitalization,  merger,  consolidation  or
otherwise by any successor corporation to the Company, and which common stock or
other equity securities have ordinary voting power for the election of directors
(or equivalent);  provided, that any security's status as a Registrable Security
shall cease when the  registration  rights with respect to such  security  shall
have terminated pursuant to Section 2.6.

     "Registration  Statement" means any  registration  statement of the Company
which  registers  for  sale  under  the  Securities  Act any of the  Registrable
Securities  pursuant  to  the  provisions  of  this  Agreement,   including  the
Prospectus,  all amendments  and  supplements  to such  Registration  Statement,
including  post-effective   amendments,  all  exhibits  and  all  documents  and
information incorporated by reference in such Registration Statement.

     "Requisite Holder" means the holder, at anytime, of the outstanding Company
Shares  representing  more  than  50% of the  aggregate  number  of  Registrable
Securities at the time outstanding.

     "Rule  144" means Rule 144 under the  Securities  Act,  as such Rule may be
amended from time to time, or any similar rule or regulation  hereafter  adopted
by the Commission.

     "Securities Act" shall mean the Securities Act of 1933, as amended,  or any
similar  United States  federal  statute,  and the rules and  regulations of the
Commission thereunder, all as the same shall be in effect at the time.

     "Securities  Exchange Act" shall mean the Securities  Exchange Act of 1934,
as amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

     "Shares"  has the meaning set forth in the Third  "Whereas"  clause of this
Agreement.

     "Shelf Demand" has the meaning set forth in Section 2.1.2.

     "Shelf Registration" has the meaning set forth in Section 2.1.2.

                                   ARTICLE II

                               REGISTRATION RIGHTS

     SECTION 2.1. Registration on Demand.

     2.1.1.  Demand.  For a  period  of five  years  following  the date of this
Agreement,  upon the written  request (a "Demand") of any Holder of  Registrable
Securities representing,  in the aggregate, at least 50% of the Company Share or
the right to acquire  50% of the  Company  Share on a  fully-diluted  basis (the
"Notice Holder") that the Company effect the  registration  under the Securities
Act of the number or the percentage of Registrable  Securities  specified by the
Demand  Holder,  the  Company  shall  deliver  notice  thereof to all Holders of
Registrable  Securities  requesting that they specify,  by written notice to the
Company delivered within five (5) business days following receipt of such notice
from the Company, the number of Registrable Securities they desire to include in
such registration (each such holder providing such notice a "Demand Holder") and
the Company  shall,  subject to the provisions  hereof,  use its best efforts to
effect,  as soon as practicable  and in any event within 120 days after a Demand
is received from the Notice Holder, the registration under the Securities Act of
the Registrable  Securities  which the Company has been so requested to register
by the Demand Holder; Thereafter, the Company's obligation hereunder shall be to
use its best efforts to effect the  registration of the Registrable  Securities;
provided,  that the Company shall not have to effect more than two Demands under
this Section 2.1.1.

     2.1.2. Shelf Registration.  At any time that the Company is eligible to use
a short-form  registration  statement for registering securities for sale to the
public at large,  the Demand  Holders may, at their option,  request (the "Shelf
Demand")  that any  registration  statement  effected  pursuant  to a Demand  be
effected  on a  delayed  or  continuous  basis,  pursuant  to Rule 415 under the
Securities Act (the "Shelf Registration").  The Company agrees to keep effective
such  registration  statement  (the "Shelf  Registration  Statement")  until the
earlier of (i) such date as of which all the  Registrable  Securities  under the
Shelf  Registration  Statement have been disposed of in the manner  described in
such  registration  statement,  and (ii) 180 days  after the date on which  such
Shelf Registration Statement is declared effective.

     2.1.3.  Registration  Statement Form.  Registrations under this Section 2.1
shall be on such  appropriate  registration  form of the  Commission as shall be
selected by the  Company.  The Company  shall  include in any such  registration
statement all information  which,  in the opinion of counsel to the Company,  is
required to be included.

     2.1.4. Effective Registration  Statement. A registration requested pursuant
to this  Section  2.1 shall not be deemed  to have been  effected  (i)  unless a
registration statement with respect thereto has become effective,  (ii) if after
it has become effective, such registration is interfered with by any stop order,
injunction or other order or requirement of the Commission or other governmental
agency  or court for any  reason  not  attributable  to the  Holder  and has not
thereafter become effective,  or (iii) if the conditions to closing specified in
the  underwriting  agreement,  if any,  entered  into in  connection  with  such
registration  are not satisfied or waived,  other than by reason of a failure on
the  part of the  Holder  or (iv) if a  Shelf  Registration  Statement,  if such
registration statement has not been kept effective until the earlier of (A) such
date as of which all of the Registrable Securities under such Shelf Registration
Statement  have been  disposed of in the manner  described in such  registration
statement  and (B) 180 days  after  the date on which  such  Shelf  Registration
Statement is declared effective.

     2.1.5.  Limitations on Registration  on Demand,  Shelf  Registrations.  The
Company  shall not be  required  to prepare  and file a  registration  statement
pursuant  to this  Section  2.1 which  would  become  effective  within 180 days
following the effective date of a registration statement (other than pursuant to
registrations  on Form S-4 or Form S-8 or any successor  form or other forms not
available for  registering  securities for sale to the public at large) filed by
the Company with the Commission pertaining to an underwritten public offering of
convertible  debt  securities  or equity  securities  for cash and,  unless such
registration is solely for the account of the Company,  the Holders are afforded
the opportunity to include Registrable  Securities in such registration pursuant
to Section 2.2. Notwithstanding anything in this Section 2.1 to the contrary, in
no event shall the Company be required to effect in the aggregate, more than two
long-form demand registrations pursuant to this Section 2.1.

     2.1.6. Holder's Ability to Withdraw Registration Statement. The Holder of a
majority of the Registrable Securities to be included in such registration shall
have the right to request  that the  Company not have a  registration  statement
filed pursuant to a Demand  declared  effective.  If the Demand Holder elects to
pay or reimburse the Company for the Company's  out-of-pocket  expenses incurred
in connection  with such  registration,  such withdrawn  registration  statement
shall not be counted for purposes of the requests for registration to which such
Demanding Holder is entitled pursuant to Section 2.1.5 hereof.

     2.1.7.  Selection of Underwriter.  If a registration under this Section 2.1
is  effected  in  connection  with an  underwritten  offering,  the  Holder of a
majority of the Registrable Securities to be included in such registration shall
select a managing  underwriter or underwriters of recognized  national  standing
reasonably acceptable to the Company to administer the offering.

     2.1.8.  Registration of Other  Securities.  A registration  statement filed
pursuant to the request of the Demand Holder may,  subject to the  provisions of
Section 2.5 hereof,  include (i)  Registrable  Securities of Holder not making a
demand  pursuant to this  Section 2.1 and (ii) other  securities  of the Company
with  respect to which  registration  rights  have been  granted and may include
securities of the Company being sold for the account of the Company.

     2.1.9.  Suspension.   The  Company  may  delay,  suspend  or  withdraw  the
registration of the Registrable Securities required pursuant to this Section 2.1
or the  preparation  or  furnishing  of a  supplemental  or  amended  prospectus
pursuant to Section  2.3(i) for a period not  exceeding  120 days if the Company
shall in good faith  determine that any such  registration  would interfere with
any pending financing transaction of the Company or would require the Company to
include  disclosure  that would  reasonably  be expected  to have a  detrimental
effect on any  proposal,  negotiations  or plan by the  Company to engage in any
acquisition or disposition of assets or any merger, consolidation, tender offer,
reorganization  or similar  transaction,  or any other material  corporate event
contemplated by the Company.  In addition,  the Company shall not be required to
register Registrable  Securities on a date on which, under the general rules and
regulations of the Commission as advised by counsel,  the inclusion therein,  by
incorporation or by reference,  of financial statements of the Company contained
in the annual or quarterly  report of the Company most  recently  filed with the
Commission would not be permitted, provided that this exception shall not permit
delay or  suspension  of  registration  beyond the  filing of the next  required
annual or quarterly filing under the Securities Exchange Act.

     SECTION 2.2. Incidental Registration. If the Company, at any time or on any
one or more  occasions  after the date of this  Agreement,  proposes to register
(other than  pursuant  to Section  2.1) any of its equity  securities  under the
Securities  Act for sale to the  public,  whether for its own account or for the
account of other security  holders or both (other than pursuant to registrations
on Form S-4 or Form S-8 or any  successor  form or other forms not available for
registering  securities for sale to the public at large), the Company shall give
not less  than 30 days'  nor more  than 90 days'  prior  written  notice to each
Holder of  Registrable  Securities  of its  intention to do so. Upon the written
request  of any  Holder of  Registrable  Securities  given  within 20 days after
receipt of such notice from the  Company,  the Company will use its best efforts
to  cause  the  Registrable  Securities  requested  to  be  registered  to be so
registered  under the  Securities  Act. A request  pursuant to this  Section 2.2
shall state the number of Registrable  Securities requested to be registered and
the intended method of distribution thereof. In connection with any registration
subject to this  Section  2.2,  the Holder  shall enter into such  underwriting,
lock-up and other agreements, and shall execute and complete such questionnaires
and other documents, as are customary in a secondary offering. The Company shall
have the right to terminate or withdraw any  registration  initiated by it under
this Section 2.2 prior to the effectiveness of such registration  whether or not
any  Holder  has  elected  to  include  any  securities  in  such  registration.
Notwithstanding any other provision of this Agreement,  if the representative of
the underwriters advises the Company in writing that marketing factors require a
limitation on the number of shares to be  underwritten,  the number of shares to
be included in the underwriting or registration  shall be allocated as set forth
in Section 2.5 hereof.

     No  registration  effected under this Section 2.2 shall relieve the Company
of its obligation to effect the registration required under Section 2.1.

     SECTION 2.3. Registration  Procedures.  In connection with the registration
of any Registrable  Securities,  the Company shall effect such  registrations to
permit the sale of such  Registrable  Securities in accordance with the intended
method or methods of disposition thereof, and pursuant thereto the Company shall
as expeditiously as possible:

          (a)  prepare  and file  with the  Commission  within  the time  limits
     prescribed herein a Registration  Statement with respect to such securities
     and use its best  efforts to cause such  Registration  Statement  to become
     effective and remain effective as provided herein;

          (b)  prepare  and  file  with  the  Commission   such  amendments  and
     post-effective   amendments  to  each  Registration  Statement  as  may  be
     necessary  and use its best  efforts  to keep such  Registration  Statement
     continuously effective;  cause the related Prospectus to be supplemented by
     any required  Prospectus  supplement,  and as so  supplemented  to be filed
     pursuant to Rule 424 (or any similar  provisions  then in force)  under the
     Securities  Act; and comply with the provisions of the Securities  Act, the
     Securities  Exchange Act and the rules and  regulations  of the  Commission
     promulgated  thereunder applicable to it with respect to the disposition of
     all securities  covered by such Registration  Statement as so amended or in
     such Prospectus as so supplemented; the Company shall not be deemed to have
     used its best efforts to keep a registration  statement  effective during a
     period if it voluntarily  takes any action that results in a  participating
     Holder's  not being able to sell such  Registrable  Securities  during such
     period,  unless such action (i) is required under applicable law or (ii) is
     determined  in good faith by the Board of Directors of the Company to be in
     the Company's best interest;

          (c) notify the Holders of Registrable Securities and underwriters,  if
     any, promptly (but in any event within two business days), and confirm such
     notice in writing,  (i) when a Prospectus or any  Prospectus  supplement or
     post-effective   amendment   has  been  filed,   and,  with  respect  to  a
     Registration Statement or any post-effective  amendment,  when the same has
     become  effective,  (ii)  of  the  issuance  (or,  to  the  Company's  best
     knowledge, the threat or contemplation) by the Commission of any stop order
     suspending the effectiveness of such Registration Statement or of any order
     preventing  or  suspending  the use of any  preliminary  prospectus  or the
     initiation of any proceedings for that purpose, and (iii) of the receipt by
     the  Company of any  notification  with  respect to the  suspension  of the
     qualification or exemption from  qualification of a Registration  Statement
     or any of the Registrable Securities for offer or sale in any jurisdiction,
     or the initiation or threatening of any proceeding for such purpose;

          (d) use every  reasonable  effort to prevent the issuance of any order
     suspending the  effectiveness  of a Registration  Statement or of any order
     preventing  or  suspending  the  use  of a  Prospectus  or  suspending  the
     qualification  (or exemption from  qualification) of any of the Registrable
     Securities for sale in any jurisdiction,  and, if any such order is issued,
     to obtain the withdrawal of any such order at the earliest possible moment;

          (e)  furnish  to each  seller  and to each duly  authorized  broker or
     underwriter  of  each  seller  such  number  of  authorized   copies  of  a
     Prospectus,  including  copies of a preliminary  Prospectus,  in conformity
     with the  requirements  of the  Securities  Act,  and such other  customary
     documents as such seller,  broker or underwriter may reasonably  request in
     order to facilitate the public sale or other disposition of the Registrable
     Securities owned by such seller;

          (f) use its best efforts to register or qualify (and to keep each such
     registration and  qualification  effective,  including through new filings,
     renewals or amendments,  during the period such  registration  statement is
     required to be kept effective) the securities  covered by such Registration
     Statement under such securities or blue sky laws of such  jurisdictions  as
     each seller shall reasonably  request,  and do any and all other reasonable
     acts and things which may be necessary  under such  securities  or blue sky
     laws to  enable  such  seller  to  consummate  the  public  sale  or  other
     disposition in such jurisdictions of the Registrable  Securities to be sold
     by such seller,  except that the Company  shall not for any such purpose be
     required to qualify to do business as a foreign corporation,  or to consent
     to the  jurisdiction  of  any  court  or  subject  itself  to  suit  in any
     jurisdiction wherein it is not qualified;

          (g)  before  filing  the  Registration   Statement  or  Prospectus  or
     amendments or  supplements  thereto,  furnish to counsel for each Holder of
     Registrable  Securities  included in such Registration  Statement copies of
     all such documents  proposed to be filed,  all of which shall be subject to
     the review and comment of such  counsel in the  exercise of its  reasonable
     judgment;

          (h) use its best efforts to cause such Registrable  Securities covered
     by such  Registration  Statement to be registered  with or approved by such
     other governmental agencies or authorities exercising jurisdiction over the
     Company as may be  necessary  to enable  the  seller or sellers  thereof to
     consummate the disposition of such Registrable Securities;

          (i) notify each seller of any such Registrable  Securities  covered by
     such Registration Statement, at any time when a Prospectus relating thereto
     is required to be  delivered  under the  Securities  Act, of the  Company's
     becoming aware that the Prospectus included in such Registration Statement,
     as then in effect, includes an untrue statement of a material fact or omits
     to state any material  fact  required to be stated  therein or necessary to
     make the statements  therein, in the light of the circumstances under which
     they were made,  not  misleading,  and, at the written  request of any such
     seller,  promptly prepare and furnish to such seller and each underwriter a
     reasonable  number  of  copies  of a  Prospectus  supplemented  or  amended
     (whereupon  all previous  versions of the  Prospectus  shall not be used by
     such seller or underwriter and shall be promptly returned to the Company or
     destroyed)  so that,  as  thereafter  delivered to the  purchasers  of such
     Registrable  Securities,  such  Prospectus  shall  not  include  an  untrue
     statement of a material  fact or omit to state a material  fact required to
     be stated therein or necessary to make the statements therein, in the light
     of the circumstances under which they were made, not misleading;

          (j)  comply  with  all  applicable   rules  and   regulations  of  the
     Commission,  and make generally  available to its security holders, as soon
     as reasonably practicable,  an earnings statement covering the period of at
     least  twelve  consecutive  months  beginning  with  the  first  day of the
     Company's   first  calendar   quarter  after  the  effective  date  of  the
     Registration   Statement,   which  earnings  statement  shall  satisfy  the
     provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

          (k) use its best  efforts  to cause  all such  Registrable  Securities
     covered  by such  Registration  Statement  to be  listed  or  quoted on the
     principal   securities   exchange   (including  NASDAQ)  on  which  similar
     securities  issued by the Company are then listed or quoted, if the listing
     or quoting of such Registrable Securities is then permitted under the rules
     of such exchange;

          (l) provide a transfer  agent and registrar  for all such  Registrable
     Securities  covered  by such  Registration  Statement  not  later  than the
     effective date of such Registration Statement;

          (m) cooperate with the selling  Holders of Registrable  Securities and
     the underwriters, if any, to facilitate the timely preparation and delivery
     of  certificates  representing  Registrable  Securities  to be sold,  which
     certificates  shall  not bear any  restrictive  legends;  and  enable  such
     Registrable Securities to be issued in such denominations and registered in
     such names as the underwriters,  if any, or holders may reasonably  request
     at least two business days prior to any sale of Registrable Securities in a
     firm commitment underwritten public offering, or at least ten business days
     prior to any other such sale;

          (n) enter into such reasonable and customary agreements  (including an
     underwriting  agreement  containing,  among other  things,  indemnification
     arrangements  in  customary  form)  and  take  such  other  reasonable  and
     customary actions as the Requisite Holder shall reasonably request in order
     to  expedite  or  facilitate  the  registration  and  disposition  of  such
     Registrable Securities;

          (o) obtain an opinion from the Company's  counsel and a "cold comfort"
     letter from the Company's  independent public accountants in customary form
     and covering such matters as are  customarily  covered by such opinions and
     "cold comfort" letters;

          (p) upon execution and delivery of such confidentiality  agreements as
     the Company shall reasonably  request (which  agreements shall not restrict
     any such person's  obligations  under  applicable  securities  laws),  make
     available  for  inspection  by any  seller of such  Registrable  Securities
     covered by such Registration Statement, by any underwriter participating in
     any disposition to be effected pursuant to such Registration  Statement and
     by any attorney,  accountant or other agent  retained by any such seller or
     any such  underwriter,  pertinent  financial and other  records,  pertinent
     corporate documents and properties of the Company,  and cause the Company's
     officers,  directors  and  employees to supply all  information  reasonably
     requested by any such seller, underwriter, attorney, accountant or agent in
     connection with such Registration Statement,  all as necessary to conduct a
     reasonable investigation within the meaning of Section 11 of the Securities
     Act; and

          (q) permit any Holder of Registrable  Securities which Holder,  in the
     sole reasonable judgment of such Holder,  exercised in good faith, might be
     deemed to be a  controlling  person of the Company to  participate  through
     counsel  in  the  preparation  of  such  Registration   Statement  and,  if
     specifically  requested by such counsel, in discussions between the Company
     and  the  Commission  or  its  staff  with  respect  to  such  Registration
     Statement,  to require the  insertion  therein of  material,  furnished  in
     writing,  which in the  written  opinion of such  counsel is  necessary  to
     include in order to avoid a likelihood of potential  liability for any such
     Holder of Registrable Securities or such counsel.

     If any  such  Registration  Statement  refers  to any  Holder  by  name  or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (i) the  insertion  therein of  language,  in form and
substance  satisfactory  to such Holder,  to the effect that the holding by such
Holder of such  securities  is not to be construed as a  recommendation  by such
Holder of the investment quality of the Company's securities covered thereby and
that such  holding  does not imply that such  Holder  will assist in meeting any
future  financial  requirements  of the Company,  or (ii) in the event that such
reference  to such  Holder by name or  otherwise  is not in the  judgment of the
Company,  as advised by counsel,  required by the  Securities Act or any similar
federal  statute or any state "blue sky" or  securities  law then in force,  the
deletion of the reference to such Holder.

     SECTION 2.4. Expenses. All expenses incurred in effecting the registrations
(whether or not such registrations are consummated) provided for in this Article
II, including  without  limitation all  registration  and filing fees,  printing
expenses,  fees and  disbursements  of counsel for the Company,  expenses of any
audits incident to or required by any such registration  (including the costs of
any comfort  letter) and expenses of complying  with the  securities or blue sky
laws of any jurisdictions  pursuant to Subsection  2.3(f) hereof,  the costs and
expenses  associated with the filing required to be made by the NASD (including,
if applicable,  the fees and expenses of any "qualified independent underwriter"
and its  counsel as may be required  by the rules and  regulations  of the NASD,
provided  such  fees and  expenses  are not paid by the  underwriter),  transfer
taxes, fees of transfer agents and registrars, costs of insurance (but excluding
underwriting  discounts and commissions to the extent they relate to Registrable
Securities),  duplicating  fees,  delivery  expenses,  and expenses  incurred in
connection with the listing of the securities on any securities exchange,  shall
be paid by the  Company,  and the  Company  shall  pay all  reasonable  fees and
disbursements  of one counsel for the Holder of  Registrable  Securities for the
performance  of the normal  and  customary  functions  of  counsel  for  selling
shareholders in each such registration.

     SECTION  2.5.  Marketing  Restrictions.  If (i) any  Holder  of  Shares  or
Registrable  Securities  requests  registration of Registrable  Securities under
Section  2.1  or  2.2,  (ii)  the  offering  proposed  to  be  made  is to be an
underwritten public offering and (iii) the managing  underwriters of such public
offering  furnish a written  opinion that the total amount of  securities  to be
included in such offering  would exceed the maximum  amount of  securities  (the
"Maximum  Amount")  (as  specified in such  opinion)  which can be marketed at a
price reasonably related to the then current market value of such securities and
without materially and adversely affecting such offering, then the rights of the
Company,  the  Holder  of  Registrable  Securities  and  the  holders  of  other
securities  having the right to include such securities in such  registration to
participate in such offering shall be as follows:

          If such  registration  shall have been  proposed (A) by the Company or
     (B) by the holders of other  securities  of the Company  exercising  demand
     registration  rights, in the case of (A): (i) the Company shall be entitled
     to participate  in such  registration  first;  (ii) then the Holders of the
     Registrable   Securities   under  this  Agreement   shall  be  entitled  to
     participate;  (iii) then the holders of other securities (pro rata based on
     the number of  securities  held by each  other  security  holder)  shall be
     entitled to  participate;  and,  in the case of (B),  (i) if the demand was
     proposed by the holders of other securities registrable, holders shall have
     the first  priority  to  participate  in such  registration,  (ii) then the
     Holders of the Registrable Securities under this Agreement,  and (iii) then
     the other  security  holders of the Company (in each case,  pro rata within
     each such group of security holders, based on the number of securities held
     by each  such  security  holder).  If such  registration  shall  have  been
     requested  by the  Demand  Holder of  Registrable  Securities  pursuant  to
     Section 2.1  hereof,  (i) such Holder of  Registrable  Securities  shall be
     entitled to participate in such registration (ii) then the holders of other
     registrable   Securities   shall  be  entitled  to   participate   in  such
     registration  (pro rata based on the number of securities held by each such
     security  holder);  and  then  (iii)  the  Company  shall  be  entitled  to
     participate  in such  registration,  in each  case  with  further  pro rata
     allocations  to the extent any such person has  requested  registration  of
     fewer  securities  than such person is entitled to have  registered so that
     the number of  securities  to be  included  in such  registration  will not
     exceed the Maximum Amount;

and no securities  (issued or unissued) other than those registered and included
in the underwritten offering shall be offered for sale or other disposition in a
transaction  which would  require  registration  under the  Securities  Act (but
excluding any issuance of shares pursuant to  registrations  on Form S-4 or Form
S-8 or any successor form or other forms not available for  registering  capital
stock for sale to the public at large) until the expiration of 90 days after the
effective date of the  Registration  Statement in which  Registrable  Securities
were  included  pursuant  to  Section  2.2  or  such  shorter  period  as may be
acceptable to the Company and the Holder of the Registrable Securities

     SECTION  2.6.   Termination  of  Rights.   Notwithstanding   the  foregoing
provisions of this Article II, the rights to registration  shall terminate as to
any particular Registrable Securities when (a) a Registration Statement covering
such  Registrable  Securities has been declared  effective and such  Registrable
Securities have been disposed of in accordance with such effective  Registration
Statement,  (b)  written  opinion(s),   to  the  effect  that  such  Registrable
Securities  may  be  sold  without  registration  under  the  Securities  Act or
applicable state law and without restriction as to the volume and timing of such
sale,  shall  have  been  received  from  counsel  for  the  Company  reasonably
acceptable to the Holder of a majority of such Registrable Securities, (c) after
five years from the date of this  Agreement or (d) such  Registrable  Securities
have been sold through a broker,  dealer or underwriter in a public distribution
or  a  public  securities   transaction  in  which  the  transferee  receives  a
certificate without a restrictive legend.

     SECTION 2.7.  Rule 144. The Company  shall file the reports  required to be
filed by it under the  Securities  Act and the  Securities  Exchange Act and the
rules and  regulations  promulgated  thereunder  and so long as the  Company  is
obligated to file periodic reports under the Securities  Exchange Act, will take
such further  actions as any Holder of  Registrable  Securities  may  reasonably
request,  all to the extent  required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act within
the  limitations of the exemption  provided by Rule 144. Upon the request of any
Holder of  Registrable  Securities,  the Company  shall deliver to such Holder a
written statement as to whether it has complied with such requirements.

     SECTION  2.8.  Indemnification.  In the  event of any  registration  of any
Registrable Securities under the Securities Act pursuant to this Agreement,  the
Company  will,  and hereby does,  indemnify  and hold  harmless,  to the fullest
extent  permitted by law, the seller of any  Registrable  Securities  covered by
such Registration  Statement,  its directors and officers or general and limited
partners (and the directors and officers thereof) and each other person, if any,
who  controls  such seller  within the meaning of the  Securities  Act (each,  a
"Person"), against any and all losses, claims, damages or liabilities,  joint or
several,  and  expenses  (including  fees of counsel and any amounts paid in any
settlement  approved by the Company (which  approval  shall not be  unreasonably
withheld  or  delayed))  to which  such  Person  may  become  subject  under the
Securities Act, common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions or proceedings,  whether commenced or threatened,  in
respect  thereof),  or  expenses  arise out of or are based  upon (i) any untrue
statement  or alleged  untrue  statement  of a material  fact  contained  in any
Registration  Statement under which such  securities  were registered  under the
Securities  Act or the omission or alleged  omission to state therein a material
fact required to be stated therein or necessary to make the  statements  therein
not  misleading,  (ii) any untrue  statement  or alleged  untrue  statement of a
material  fact  contained  in  any  preliminary,  final  or  summary  Prospectus
(together with the documents incorporated by reference therein or filed with the
Commission in  connection  therewith)  and any  amendment  thereof or supplement
thereto,  or the omission or alleged  omission to state  therein a material fact
required  to be stated  therein  or  necessary  in order to make the  statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading  or (iii) any  violation  by the Company of any federal or state law,
rule or regulation  applicable to the Company and relating to action required of
or inaction by the Company in  connection  with any such  registration,  and the
Company will reimburse such Person on demand for any legal or any other expenses
incurred by it in  connection  with  investigating  or defending  any such loss,
claim, liability,  action or proceeding;  provided that the Company shall not be
liable to any such  Person in any such case to the  extent  that any such  loss,
claim,  damage,  liability  (or  action  or  proceeding,  whether  commenced  or
threatened,  in respect  thereof) or expense  arises out of or is based upon (i)
any untrue statement or alleged untrue statement or omission or alleged omission
made in such Registration  Statement or amendment thereof or supplement  thereto
or in any such preliminary,  final or summary Prospectus in reliance upon and in
conformity with information  furnished to the Company in writing by or on behalf
of any such seller or any such director,  officer,  general or limited  partner,
underwriter,  independent  underwriter,  director  or officer or partner of such
underwriter or independent underwriter or controlling person,  expressly for use
in the  preparation  thereof or (ii) the  failure of any such seller or any such
director,  officer,  general  or  limited  partner,   underwriter,   independent
underwriter  or  controlling  person,  to  comply  with  any  legal  requirement
applicable  to it to  deliver  a copy  of a  Prospectus  or any  supplements  or
amendments  thereto after the Company has made such documents  available to such
Persons. Such indemnity and reimbursement of expenses shall remain in full force
and effect following the transfer of such securities by such seller.

          (a)  The  Company,   as  a  condition  to  including  any  Registrable
     Securities in any  Registration  Statement  filed in  accordance  with this
     Agreement, shall have received an undertaking reasonably satisfactory to it
     from  the  prospective  seller  of  such  Registrable  Securities  and  any
     underwriter or independent underwriter,  to indemnify and hold harmless (in
     the same  manner and to the same  extent as set forth in  paragraph  (a) of
     this Section 2.8) the Company and its  directors and officers and all other
     prospective  sellers  and their  directors,  officers,  general and limited
     partners  and  respective  controlling  Persons  (within the meaning of the
     Securities  Act) with respect to any  statement or alleged  statement in or
     omission  or  alleged  omission  from  such  Registration  Statement,   any
     preliminary,   final  or  summary  Prospectus  contained  therein,  or  any
     amendment or supplement  thereto, if such statement or alleged statement or
     omission or information has been furnished in writing to the Company or its
     representative by or on behalf of such seller or underwriter  expressly for
     use in the preparation of such Registration Statement,  preliminary,  final
     or summary Prospectus or amendment or supplement;  provided,  however, that
     the aggregate  amount which any such seller or prospective  seller shall be
     required to pay pursuant to such undertaking shall be limited to the amount
     of  the  net  proceeds  received  by  such  Person  upon  the  sale  of the
     Registrable  Securities pursuant to the Registration  Statement giving rise
     to such  claim.  Such  indemnity  shall  remain in full  force  and  effect
     following the transfer of such securities by such seller.

          (b)  As  soon  as  possible  after  receipt  by an  indemnified  party
     hereunder of written notice of the commencement of any action or proceeding
     with respect to which a claim for  indemnification  may be made pursuant to
     this  Section  2.8,  such  indemnified  party  will,  if a claim in respect
     thereof is to be made against an indemnifying party, give written notice to
     the latter of the commencement of such action; provided that the failure of
     any  indemnified  party to give notice as provided herein shall not relieve
     the indemnifying party of its obligations under the preceding paragraphs of
     this  Section  2.8,  except to the extent  that the  indemnifying  party is
     actually  prejudiced  by such failure to give notice.  If any such claim or
     action shall be brought against an indemnified  party,  and it shall notify
     the indemnifying party thereof, the indemnifying party shall be entitled to
     participate  therein,  and, to the extent that it wishes,  jointly with any
     other similarly notified  indemnifying party, to assume the defense thereof
     with counsel  reasonably  satisfactory to the indemnified  party;  provided
     that the  indemnifying  party shall not be entitled to so participate or so
     assume the defense if, in the indemnified  party's reasonable  judgment,  a
     conflict of interest  between the  indemnified  party and the  indemnifying
     party  exists or may exist in respect of such claim.  After notice from the
     indemnifying  party to such indemnified party of its election to assume the
     defense of such claim or action, the indemnifying party shall not be liable
     to the  indemnified  party  under this  Section  2.8 for any legal or other
     expenses  subsequently incurred by the indemnified party in connection with
     the defense thereof unless the indemnifying  party has failed to assume the
     defense of such claim or to employ counsel reasonably  satisfactory to such
     indemnified  party;  provided that the  indemnified  parties shall have the
     right to employ one counsel (in each case together with  appropriate  local
     counsel)  (such  counsel to be  selected by the Holder of a majority of the
     Registrable  Securities  included in such  registration)  to represent such
     indemnified parties if, in such indemnified parties' reasonable judgment, a
     conflict of interest  between the indemnified  parties and the indemnifying
     parties exists or may exist in respect of such claim, and in that event the
     fees and expenses of such separate counsel shall be paid as incurred by the
     indemnifying  party;  and  provided,  further,  that if, in the  reasonable
     judgment of any of the indemnified  parties, a conflict of interest between
     such  indemnified  parties,  and any other  indemnified  parties  exists in
     respect of such  claim,  such  indemnified  parties  shall be  entitled  to
     additional  counsel  or  counsels  and  the  indemnifying  party  shall  be
     obligated  to pay the fees  and  expenses  of such  additional  counsel  or
     counsels.  No  indemnifying  party will consent to entry of any judgment or
     enter into any settlement which does not include as an  unconditional  term
     thereof the giving by the claimants or plaintiffs to such indemnified party
     of an unconditional  release from all liability in respect to such claim or
     litigation.  No  indemnifying  party  will be  liable  for  any  settlement
     effected  without its prior  written  consent,  which  consent  will not be
     unreasonably withheld or delayed.

          (c)  Indemnification  similar  to  that  specified  in  the  preceding
     paragraphs of this Section 2.8 (with  appropriate  modifications)  shall be
     given by the Company and each seller of Registrable Securities with respect
     to any required registration or other qualification of securities under any
     state securities and "blue sky" laws.

          (d)  If  the  indemnification  provided  for in  this  Section  2.8 is
     unavailable or  insufficient  to hold harmless an  indemnified  party under
     Section 2.8(a) or (b) of this Agreement, then each indemnifying party shall
     contribute  to the amount  paid or payable by such  indemnified  party as a
     result of the losses, claims, damages or liabilities referred to in Section
     2.8(a) or (b) in such  proportion as is appropriate to reflect the relative
     fault of the indemnifying  party on the one hand and the indemnified  party
     on the other hand in connection with statements or omissions which resulted
     in such  losses,  claims,  damages  or  liabilities,  as well as any  other
     relevant equitable  considerations.  The relative fault shall be determined
     by reference to, among other things,  whether the untrue or alleged  untrue
     statement of a material fact or other omission or alleged omission to state
     a material fact relates to information  supplied by the indemnifying  party
     or the  indemnified  party and the  parties'  relative  intent,  knowledge,
     access to  information  and  opportunity  to correct or prevent such untrue
     statements or omission.  The parties hereto agree that it would not be just
     and equitable if  contributions  pursuant to this Section 2.8(d) were to be
     determined  by pro rata  allocation  or by any other  method of  allocation
     which does not take account of the equitable  considerations referred to in
     the  first  sentence  of  this  Section  2.8(d).  The  amount  paid  by  an
     indemnified party as a result of the losses, claims, damages or liabilities
     referred to in the first sentence of this Section 2.8(d) shall be deemed to
     include any legal or other expenses reasonably incurred by such indemnified
     party in  connection  with  investigating  or defending any action or claim
     (which shall be limited as provided in Section  2.8(c) if the  indemnifying
     party has assumed the  defense of any such  action in  accordance  with the
     provisions  thereof) which is the subject of this Section 2.8(d). No person
     guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
     of the Securities  Act) shall be entitled to  contribution  from any person
     who was not guilty of such  fraudulent  misrepresentation.  Promptly  after
     receipt by an indemnified  party under this Section 2.8(d) of notice of the
     commencement  of any action  against such party in respect of which a claim
     for  contribution  may be made  against an  indemnifying  party  under this
     Section 2.8(d),  such indemnified party shall notify the indemnifying party
     in writing of the  commencement  thereof if the notice specified in Section
     2.8(c) has not been given with  respect to such action;  provided  that the
     omission  so to  notify  the  indemnifying  party  shall  not  relieve  the
     indemnifying  party from any liability which it may have to any indemnified
     party otherwise  under this Section  2.8(d),  except to the extent that the
     indemnifying  party is actually  prejudiced by such failure to give notice.
     Notwithstanding  anything  in  this  Section  2.8(d)  to the  contrary,  no
     indemnifying  party (other than the Company) shall be required  pursuant to
     this  Section  2.8(d) to  contribute  any amount in excess of the  proceeds
     received by such indemnifying party from the sale of Registrable Securities
     in the offering to which the losses,  claims, damages or liabilities of the
     indemnified parties relate.

          (e) The  provisions  of this  Section  2.8 shall be in addition to any
     other rights to indemnification or contribution which any indemnified party
     may have  pursuant  to law or contract  and shall  remain in full force and
     effect  following  the transfer of the  Registrable  Securities by any such
     party.

                                  ARTICLE III

                         CHANGES IN COMPANY COMMON STOCK

     If, and as often as, there is any change in the Company  Common Stock or of
any other  securities into which such Company Common Stock has been converted or
changed or by way of a  combination  or  reclassification,  or through a merger,
consolidation,  reorganization  or  recapitalization,  or by  any  other  means,
appropriate adjustment shall be made in the provisions hereof so that the rights
and  privileges  granted hereby to the Holder shall continue with respect to the
Registrable Securities as so changed.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The  Company  represents  and  warrants  to the  Holder of the  Registrable
Securities as of the date of this Agreement as follows:

          (a) Due Authorization. The execution, delivery and performance of this
     Agreement by the Company has been duly authorized by all requisite action.

     (b) Binding Obligation. This Agreement has been duly executed and delivered
by the Company and  constitutes the legal,  valid and binding  obligation of the
Company.

     (c) No Violation. The execution, delivery and performance of this Agreement
and the consummation of the transactions  contemplated  herein by the Company do
not  violate any  provision  of law,  any order of any court or other  agency of
government,  any organizational  document of the Company or any provision of any
material indenture, agreement or other instrument to which the Company or any of
its properties or assets is bound,  or conflict  with,  result in a breach of or
constitute  (with due notice or lapse of time or both) a default  under any such
indenture, agreement or other instrument or result in the creation or imposition
of any lien,  charge or  encumbrance  of any nature  whatsoever  upon any of the
properties or assets of the Company which violation, conflict, breach or default
or lien, charge, restriction or encumbrance would have a material adverse effect
on the business,  condition (financial or otherwise) or results of operations of
the Company taken as a whole.

     (d)  Government  Action.  No action has been taken and no statute,  rule or
regulation or order has been enacted, no injunction,  restraining order or order
of any  nature  has  been  issued  by a  federal  or state  court  of  competent
jurisdiction  and no action,  suit or proceeding is pending against or affecting
or  threatened  against,  the  Company  before  any court or  arbitrator  or any
governmental body, agency or official which, if adversely  determined,  would in
any manner draw into question the validity of this Agreement. Other than filings
required  with the  Commission  and under state  securities  laws,  no action or
approval by, or filing or registration with, any court or governmental agency or
body is required for the consummation of the  transactions  contemplated by this
Agreement by the Company.

                                   ARTICLE V

                              BENEFITS OF AGREEMENT

     The  obligations  of the Company  under this  Agreement  shall inure to the
benefit of, and be  enforceable  by, the Holder and its  successors  and assigns
without any further action on the part of any party hereto.

                                   ARTICLE VI

                                  MISCELLANEOUS

     SECTION  6.1.   Notices.   All  notices,   requests,   consents  and  other
communications  provided  for herein  shall be in writing and shall be effective
upon  delivery  in  person,  faxed or  telecopied,  or  mailed by  certified  or
registered  mail,  return  receipt  requested,  postage  pre-paid,  addressed as
follows:

          (i) if to the Company,  to Dynamic  Materials  Corporation,  551 Aspen
     Ridge Drive, Lafayette,  Colorado 80026, Attention:  Secretary,  fax: (303)
     604-1897;  with a copy to John McCabe,  Esq.,  Davis,  Graham & Stubbs LLP,
     4410 Arapahoe  Avenue,  Suite 200,  Boulder,  Colorado  80303,  fax:  (303)
     893-1379;

          (ii) if to the Holder or any other Holder of  Registrable  Securities,
     at such  address as may have been  furnished  to the  Company in writing by
     such Holder;

or, in any case, at such other address or addresses as shall have been furnished
in writing to the Company (in the case of a Holder of Registrable Securities) or
to the  Holder  of  Registrable  Securities  (in  the  case of the  Company)  in
accordance with the provisions of this paragraph.

     SECTION  6.2.  Waivers;  Amendments.  No  failure or delay of any Holder of
Registrable Securities or the Company in exercising any power or right hereunder
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any such  right or  power,  or any  abandonment  or  discontinuance  of steps to
enforce such a right or power, preclude any other or further exercise thereof or
the exercise of any other right or power. The rights and remedies of such Holder
and the Company are cumulative and not exclusive of any rights or remedies which
it would  otherwise  have.  The  provisions  of this  Agreement  may be amended,
modified or waived with (and only with) the written consent of the Company and a
majority of the Holders of  Registrable  Securities  outstanding  (exclusive  of
Registrable  Securities then owned by the Company or any subsidiary thereof). No
notice or demand on the  Company in any case shall  entitle  the  Company to any
other or  further  notice or  demand  in  similar  or other  circumstances.  The
foregoing notwithstanding, this Agreement may not be amended in a manner adverse
to the rights of any Holder without the consent of such Holder.

     SECTION 6.3. Governing Law. This Agreement shall be construed in accordance
with  and  governed  by the laws of the  State of  Delaware  without  regard  to
principles of conflicts of law.

     SECTION 6.4. Survival of Agreements;  Representations and Warranties,  etc.
All warranties,  representations  and covenants made by the Company herein or in
any  certificate  or  other  instrument  delivered  by it or on  its  behalf  in
connection  with this Agreement  shall be considered to have been relied upon by
the Holder of Registrable Securities and shall continue in full force and effect
so long as this Agreement is in effect regardless of any  investigation  made by
such Holder.  All statements in any such  certificate or other  instrument shall
constitute representations and warranties hereunder.

     SECTION 6.5.  Covenants to Bind Successors and Assigns.  All the covenants,
stipulations,  promises  and  agreements  in this  Agreement  contained by or on
behalf of the parties hereto shall bind their successors and assigns, whether so
expressed or not.

     SECTION  6.6.  Severability.  In case  any  one or  more of the  provisions
contained in this Agreement shall be invalid,  illegal or  unenforceable  in any
respect,  the validity,  legality and enforceability of the remaining provisions
contained  herein  and  therein  shall not in any way be  affected  or  impaired
thereby.  The parties shall endeavor in good faith  negotiations  to replace the
invalid,  illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible  to that of the  invalid,  illegal or
unenforceable provisions.

     SECTION 6.7.  Section  Headings.  The section  headings used herein are for
convenience  of reference  only,  are not part of this  Agreement and are not to
affect the construction of or be taken into  consideration in interpreting  this
Agreement.

     SECTION 6.8. Counterparts.  This Agreement may be executed in any number of
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

     SECTION 6.9.  Termination.  The  obligations of the Company to register the
Registrable Securities hereunder shall terminate in accordance with the terms of
this Agreement.

     SECTION 6.10. Complete Agreement.  This document and the documents referred
to herein contain the complete  agreement  between the parties and supersede any
prior  understandings,  agreements or representations by or between the parties,
written or oral, which may have related to the subject matter hereof in any way,
and any other  agreements or  understandings  as to securities  registration  or
similar rights among the parties hereto are hereby terminated.

     SECTION 6.11. No Inconsistent  Agreements.  The Company has not previously,
and will not hereafter,  enter into any agreement with respect to its securities
with any person which grants such person  rights that are  inconsistent  with or
superior to the rights granted to the Holder in this Agreement.

<PAGE>

     IN WITNESS WHEREOF,  the parties hereto have entered into this Agreement as
of the date first set forth above.

DYNAMIC MATERIALS CORPORATION

By: /s/ Joseph Allwein
    -------------------------
    Name:  Joseph Allwein
    Title: President

SNPE, Inc.                                      WITNESS
                                                SNPE, S.A.

By: /s/ Bernard Fontana                         By: /s/ Michel Philippe
    -------------------------                       ----------------------------
    Name:  Bernard Fontana                          Name:  Michel Philippe
    Title: President                                Title: Senior Vice President
                                                           of Financial and
                                                           Legal Affairs

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