Document:

Lease Acquisition and Development Agreement

 Exhibit 10.49 

 
  
 LEASE ACQUISITION AND DEVELOPMENT AGREEMENT 
 BY AND BETWEEN 

TRIGON ENERGY PARTNERS LLC 

AND 
 CEU EAGLE FORD, LLC 
   

 

DATED MAY 4, 2010 

 
  

 TABLE OF CONTENTS 

 

							
	Article I DEFINITIONS; INTERPRETATION	  	 	1	  
			
	 1.1
	    	Defined Terms	  	 	1	  
			
	 1.2
	    	Interpretation	  	 	6	  
		
	Article II GENERAL PROVISIONS	  	 	7	  
			
	 2.1
	    	Preliminary Phase	  	 	7	  
			
	 2.2
	    	Activities within the AMI	  	 	10	  
			
	 2.3
	    	Relationship of Parties	  	 	10	  
		
	Article III PROPERTY RELATED OBLIGATIONS	  	 	10	  
			
	 3.1
	    	Properties and Interests within the AMI	  	 	10	  
			
	 3.2
	    	Acreage within and without of the AMI	  	 	12	  
		
	Article IV SEISMIC RELATED OBLIGATIONS	  	 	12	  
			
	 4.1
	    	Seismic Projects	  	 	12	  
			
	 4.2
	    	Acquisition of Third Party Seismic Data	  	 	13	  
			
	 4.3
	    	Non-Consent Provisions	  	 	13	  
			
	 4.4
	    	Ownership of Seismic Data	  	 	13	  
		
	Article V DRILLING RELATED OBLIGATIONS	  	 	14	  
			
	 5.1
	    	Drilling Operator	  	 	14	  
			
	 5.2
	    	Proposals to Drill Wells	  	 	14	  
			
	 5.3
	    	Drilling, Completion and Other Elections	  	 	15	  
			
	 5.4
	    	Prospect Relinquishment	  	 	15	  
		
	Article VI TERM; TERMINATION	  	 	15	  
			
	 6.1
	    	Term	  	 	15	  
			
	 6.2
	    	Termination	  	 	15	  
			
	 6.3
	    	Survival of Joint Operating Agreement(s)	  	 	16	  
		
	Article VII FORCE MAJEURE	  	 	17	  
		
	Article VIII CONFIDENTIALITY	  	 	17	  
			
	 8.1
	    	Confidentiality of Each Party’s Information	  	 	17	  
			
	 8.2
	    	Restrictions on Use	  	 	18	  
			
	 8.3
	    	Violations	  	 	18	  
		
	Article IX RESTRICTIONS ON DATA	  	 	18	  
			
	 9.1
	    	Restrictions on Data	  	 	18	  

  
 i 

							
	Article X ASSIGNMENT	 	 	19	  
			
	 10.1
	    	Assignment of Agreement	 	 	19	  
			
	 10.2
	    	Tag-Along Rights	 	 	19	  
		
	Article XI DISPUTE RESOLUTION	 	 	20	  
			
	 11.1
	    	Dispute; Mutual Resolution	 	 	20	  
			
	 11.2
	    	Mandatory and Binding Arbitration	 	 	20	  
			
	 11.3
	    	No Waiver; Preservation of Remedies	 	 	21	  
			
	 11.4
	    	Statute of Limitations	 	 	21	  
			
	 11.5
	    	Scope of Award and Modification or Vacation of Award	 	 	21	  
			
	 11.6
	    	Other Matters	 	 	22	  
		
	Article XII Representation and Warranties	 	 	22	  
			
	 12.1
	    	Representations and Warranties of Trigon	 	 	22	  
			
	 12.2
	    	Representations and Warranties of CEU	 	 	23	  
		
	Article XIII MISCELLANEOUS	 	 	24	  
			
	 13.1
	    	Entire Agreement; Amendment and Waiver	 	 	24	  
			
	 13.2
	    	Severability	 	 	24	  
			
	 13.3
	    	Governing Law	 	 	24	  
			
	 13.4
	    	Notices	 	 	24	  
			
	 13.5
	    	Binding Effect	 	 	25	  
			
	 13.6
	    	Headings	 	 	25	  
			
	 13.7
	    	Legal Representation of the Parties	 	 	25	  
			
	 13.8
	    	Electronic Transmission	 	 	25	  
			
	 13.9
	    	Multiple Counterparts	 	 	26	  

 List of Exhibits: 

 

			
	 Exhibit
	    	Counties in Eagle Ford
	 Exhibit
	    	Area of Mutual Interest
	 Exhibit
	    	Joint Operating Agreement
	 Exhibit
	    	Assignment
	 Exhibit
	    	Confidentiality Agreement
	 Exhibit
	    	Excluded Mineral Interest Parties
	 Exhibit
	    	Lease Agreement

  
 ii 

 LEASE ACQUISITION AND DEVELOPMENT AGREEMENT 

This Lease Acquisition and Development Agreement (this “Agreement”) is made and entered as of May 4, 2010 (the
“Effective Date”), by and between Trigon Energy Partners LLC, a Delaware limited liability company (“Trigon”), and CEU Eagle Ford, LLC, a Delaware limited liability company (“CEU”). CEU and Trigon are referred to
herein individually as “Party” and jointly as “Parties”. 
 WITNESSETH: 

A. Trigon is a newly formed limited liability company that is raising equity capital to fund the acquisition and development of oil and
gas mineral leases in the Eagle Ford Shale play, within the counties located within the State of Texas identified on Exhibit 0 attached hereto (the “Eagle Ford”). 

B. CEU desires to acquire leases in the Eagle Ford with Trigon and to develop the properties covered by those leases on the terms and
conditions set forth herein. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties hereby agree as follows: 
 ARTICLE I 

DEFINITIONS; INTERPRETATION 
 1.1 Defined Terms. Each term defined in this Section 1.1, when used in this Agreement, has the meaning indicated below. 

(a) “AAA” shall have the meaning ascribed thereto in Section 11.2. 

(b) “Accepted CA” shall have the meaning ascribed thereto in Section 8.1(d). 

(c) “Acquiring Party” shall have the meaning ascribed thereto in Section 3.1(a). 

(d) “Additional Interest” shall have the meaning ascribed thereto in Section 3.2. 

(e) “AFE” shall have the meaning ascribed thereto in the Joint Operating Agreement. 

(f) “Affiliate” shall have the meaning ascribed thereto in Section 10.1. 

(g) “Agreement” shall have the meaning as ascribed thereto in the introductory paragraph. 

(h) “AMI” shall mean the area depicted on Exhibit 0, as modified from time to time in accordance
with the terms and provisions of this Agreement or by mutual agreement of the Parties. In the event that there is no Equity Commitment Date by the Equity Deadline, the Parties agree that on the 45th day following the Equity Deadline the AMI shall be reduced to an

 
area consisting of the Phase One Properties, plus a one-half mile halo around each Phase One Property. 
 (i) “AMI Election Notice” shall have the meaning ascribed thereto in Section 3.1(a). 
 (j) “Applicable Law” shall mean all existing and future applicable laws, rules, regulations, statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and
interpretations by, any governmental authority, and applicable judgments, decrees, injunctions, writs, orders or like action of any court, arbitrator or other administrative, judicial or quasi-judicial tribunal or agency of competent jurisdiction
(including those pertaining to health, safety or the environment). 
 (k) “Approved Assignment” shall have the meaning
ascribed thereto in Section 2.1(b). 
 (l) “Business Day” means each day which is not a day on which banks in
Houston, Texas are generally authorized or obligated, by law or executive order, to close. 
 (m) “Committed Capital”
shall have the meaning ascribed thereto in Section 2.1(a). 
 (n) “CEU” shall have the meaning ascribed thereto
in the introductory paragraph. 
 (o) “CEU Base Capital” shall have the meaning ascribed thereto in Section
2.1(a). 
 (p) “CEU Equity Percentage” shall have the meaning ascribed thereto in Section 2.1(d).

 (q) “CEU Funded Capital” shall have the meaning ascribed thereto in Section 2.1(a). 

(r) “CEU Returned Capital” shall have the meaning ascribed thereto in Section 2.1(d). 

(s) “CEU’s AMI Interest” shall have the meaning ascribed thereto in Section 2.1(d). 

(t) “Data” shall mean all geophysical, geological and engineering studies, engineering reports, other data and information and
all studies, maps, evaluations or reports derived therefrom (regardless of the form or medium in which displayed or stored), which studies, reports, data, information, maps and evaluations are used or useful in the acquisition, interpretation,
exploration or development of interests in oil and gas properties. 
 (u) “Dispute” shall have the meaning ascribed
thereto in Section 11.1. 

  
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 (v) “Effective Date” shall have the meaning ascribed thereto in the introductory
paragraph. 
 (w) “Election Percentage” shall mean with respect to the any properties or interests subject to the AMI
provisions of Section 3.1, an undivided percentage interest of the Acquiring Party’s interest in such properties or interests equal to CEU’s AMI Interest. 
 (x) “Equity Commitment Date” shall have the meaning ascribed thereto in Section 2.1(c). 
 (y) “Equity Deadline” shall mean September 30, 2010; provided, however, that if Trigon is actively working on a term sheet with a Funder as of such date, then the Equity Deadline shall be
extended until the transaction contemplated by such term sheet closes or is terminated; provided that, in no event will the Equity Deadline extend beyond October 31, 2010. 

(z) “Excluded Mineral Interest Owners” shall have the meaning ascribed thereto in Section 3.1(c). 

(aa) “Family Tree” shall have the meaning ascribed thereto in Section 3.1(c) 

(bb) “Funded Capital” shall have the meaning ascribed thereto in Section 2.1(a). 

(cc) “Funder” shall have the meaning ascribed thereto in Section 2.1(c). 

(dd) “Funder Agreement” shall have the meaning ascribed thereto in Section 2.1(c). 

(ee) “Funder Equity Commitment” shall have the meaning ascribed thereto in Section 2.1(d). 

(ff) “Funder Notice” shall have the meaning ascribed thereto in Section 2.1(c). 

(gg) “Geological Data” shall mean any Data, other than Seismic Data. 

(hh) “Hydrocarbon Interests” shall have the meaning ascribed thereto in Section 3.1(a). 

(ii) “Individual Joint Operating Agreement” shall have the meaning ascribed thereto in the definition of Joint Operating
Agreement in Section 1.1(mm). 
 (jj) “Initial Assignments” shall have the meaning ascribed thereto in Section
2.1(b). 
 (kk) “Initial Interest” shall have the meaning ascribed thereto in Section 10.2. 

(ll) “Initial Well” shall mean, with respect to a Prospect Area, the first well to be drilled and completed within the Prospect
Area or a substitute, twin, replacement, sidetrack or other well drilled as a replacement for any Initial Well if an Initial Well does not reach its 

  
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objective depth due to mechanical problems, blowout, severe loss of circulation or other problems which make it impossible to reach the objective depth, or impossible to complete. 

(mm) “Joint Operating Agreement” shall mean the Model Form Operating Agreement (A.A.P.L. Form 610-1989, as amended by the
Parties) attached hereto as Exhibit 0; provided, however, that to the extent a third party joint operating agreement exists with respect to any interests of the properties within the AMI, such term shall mean such third party joint
operating agreement. The Joint Operating Agreement shall from the Effective Date forward, to the extent a third party joint operating agreement does not then currently exist covering any interests of the Parties within the AMI, be applicable to and
cover all of the jointly owned lands, leases, wells and interests within the AMI (“Master Joint Operating Agreement”); provided, however, if a Prospect Area is proposed within the AMI, the Parties shall execute an individual Joint
Operating Agreement which shall be applicable to and cover all of the lands within the Prospect Area and the Initial Well for the Prospect Area (“Individual Joint Operating Agreement”). If the Parties execute an Individual Joint Operating
Agreement, the Master Joint Operating Agreement shall terminate as to the lands, leases, wells and interests covered by the Individual Joint Operating Agreement. Among other things, the Parties acknowledge and agree that the Joint Operating
Agreement will include a fixed rate overhead charge of $150,000 for each horizontal well spudded, which charge shall be in lieu of any obligation to cover general and administrative costs (but not other COPAS costs reflected in the Joint Operating
Agreement) of the operator. 
 (nn) “Lease Acquisition Costs” shall mean (i) in the case of a new lease entered
into with the lessor, lease bonuses, third-party landman fees, third-party broker costs and other reasonable and customary third-party costs and expenses incurred to acquire oil, gas and other hydrocarbon properties and interests, including leases
and options, and (ii) in the case of an existing lease acquired from a party other than the lessor, the purchase price for such lease. Such costs shall not include any allocation of overhead or general and administrative expenses. 

(oo) “Management Equity Commitment” shall have the meaning ascribed thereto in Section 2.1(d). 

(pp) “Master Joint Operating Agreement” shall have the meaning ascribed thereto in the definition of Joint Operating Agreement
in Section 1.1(mm). 
 (qq) “Material Default” shall have the meaning ascribed thereto in Section 6.2.

 (rr) “Non-Acquiring Party” shall have the meaning ascribed thereto in Section 3.1 

(ss) “Party” and “Parties” shall have the meaning ascribed thereto in the introductory paragraph. 

(tt) “Person” shall mean any individual, corporation, partnership, limited liability company, joint venture, association,
joint-stock company, trust, unincorporated organization, governmental authority, or any other entity. 
 (uu) “Phase
One” shall have the meaning ascribed thereto in Section 2.1(a). 

  
 4 

 (vv) “Phase One Properties” shall mean all of the oil, gas and other hydrocarbon
properties and interests, including leases and options, purchased by the Parties in the AMI during Phase One. 
 (ww)
“Phase Two” shall have the meaning ascribed thereto in Section 2.1(c). 
 (xx) “Proposal Date” shall
have the meaning ascribed thereto in Section 4.1(b). 
 (yy) “Prospect Area” shall mean, with respect to each
Initial Well drilled during the term hereof, the Prospect Area established pursuant to Section 5.2. 
 (zz)
“Relevant Interest” shall mean, with respect to any property or prospect, each Party’s working interest share of such property or prospect. Prior to the Equity Commitment Date, the Relevant Interest of each Party in the Phase One
Properties shall be 90% as to CEU and 10% as to Trigon. After the Equity Commitment Date, (i) in the case of the Phase One Properties, CEU’s Relevant Interest shall be equal to CEU’s AMI Interest and Trigon’s Relevant Interest
shall be an amount equal to 100% less CEU’s AMI Interest, and (ii) in the case any other properties in the AMI, each Party’s Relevant Interest shall be determined based upon the interest in such properties acquired by each Party.

 (aaa) “Relevant Interest Notice” shall have the meaning ascribed thereto in Section 2.1(d). 

(bbb) “Representative” and “Representatives” shall have the meaning ascribed thereto in Section 2.1(i).

 (ccc) “Required Funder Commitment” shall have the meaning ascribed thereto in Section 2.1(c). 

(ddd) “Seismic Data” shall mean geophysical data and information (regardless of the form or medium in which displayed or
stored) that is acquired and processed to yield a two-dimensional or three-dimensional picture of the subsurfaces and shall include reprocessed data and all derivatives or products of or enhancements to such data or information. 

(eee) “Seismic Project” shall mean a project within the AMI to acquire permits, options, leases, geological and 2-D or 3-D
geophysical data and information or to conduct other 2-D or 3-D exploration activity. 
 (fff) “Seismic Project
Budget” shall have the meaning ascribed thereto in Section 4.1(d). 
 (ggg) “Seismic Threshold Amount”
shall have the meaning ascribed thereto in Section 4.3(b). 
 (hhh) “Selling Party” shall have the meaning
ascribed thereto in Section 10.2. 
 (iii) “Shoot Area” shall mean the area within the shoot outline for a
Seismic Project. 

  
 5 

 (jjj) “Trigon” shall have the meaning ascribed thereto in the introductory
paragraph. 
 (kkk) “Trigon Base Capital” shall have the meaning ascribed thereto in Section 2.1(a).

 (lll) “Trigon Funded Capital” shall have the meaning ascribed thereto in Section 2.1(a). 

1.2 Interpretation. In this Agreement, unless a clear contrary intention appears: 

(a) the singular number includes the plural number and vice versa; 

(b) reference to any Person includes such Person’s successors and assigns but only if such successors and assigns are not prohibited
by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually; 
 (c) reference to a gender includes the other gender; 
 (d) reference to any
agreement (including this Agreement), document or instrument means, unless specifically provided otherwise, such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof;

 (e) reference to any Applicable Law means, unless specifically provided otherwise, such Applicable Law, as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and reference to any Section or other provision of any Applicable Law means, unless specifically
provided otherwise, that Section provision of such Applicable Law, as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder; 

(f) reference in this Agreement to any Article, Section, or Exhibit means such Article or Section hereof or Exhibit hereto;

 (g) “hereunder”, “hereof”, “hereto” and words of similar import shall be deemed references to
this Agreement as a whole and not to any particular Article, Section or other provision thereof; 
 (h)
“including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding such term; 
 (i) “or” is not exclusive; and 
 (j) relative to the determination of
any period of time, “from” means “from and including” and “to” means “to but excluding”. 

  
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 ARTICLE II 

GENERAL PROVISIONS 
 2.1 Preliminary Phase. 
 (a) CEU shall commit $22,500,000 (the “CEU
Base Capital”) and Trigon shall commit $2,500,000 (the “Trigon Base Capital”), for a total commitment of the Parties of $25,000,000 in the aggregate (the “Committed Capital”), for the acquisition of oil, gas and other
hydrocarbon interests, including leases, within the AMI from the date hereof until the Equity Commitment Date (such period being referred to herein as “Phase One”). The interests to be acquired and the terms of each acquisition, including
lease terms, shall be proposed by Trigon; provided however, during Phase One no interest within the AMI shall be acquired by Trigon, or any Affiliate of Trigon, or any other party affiliated with Trigon, without the prior consent of CEU. All leases
shall provide that they can be assigned to CEU (or a CEU affiliate designated in advance of signing the lease) without the prior consent of the lessor, unless CEU (in its sole discretion) otherwise agrees in writing. No party affiliated with Trigon
shall retain any interest or receive any fee or compensation in connection with such acquisitions. CEU shall promptly deliver to Trigon 90% of the Lease Acquisition Costs related to any Phase One Property, and Trigon shall fund the remaining 10% of
such Lease Acquisition Costs. In no event shall CEU be required to deliver to Trigon an amount in excess of 90% of the Committed Capital during Phase One. All amounts funded by CEU during Phase One shall be used solely for the purpose of acquiring
Phase One Property or for Seismic Projects or Seismic Data in which CEU has elected to participate pursuant to Article IV. In connection with any funding request, Trigon shall provide CEU, at least five (5) Business Days in advance
of funding, a detailed statement reflecting the interests acquired or to be acquired with such funds and all Lease Acquisition Costs to be paid with such funds. In no event shall CEU be required to fund its share of any Lease Acquisition Costs more
than one (1) Business Day in advance of the acquisition of the applicable Phase One Property. The total amount advanced by CEU during Phase One, whether for Lease Acquisition Costs or for a Seismic Project or Seismic Data, is referred to as the
“CEU Funded Capital” and the total amount advanced by Trigon during Phase One, whether for Land Acquisition Costs or for a Seismic Project or Seismic Data, is referred to as the “Trigon Funded Capital”. The sum of the CEU Funded
Capital and the Trigon Funded Capital is referred to herein as the “Funded Capital”. 
 (b) All Phase One Property
will be acquired in the name of Trigon (or an affiliate of Trigon), who shall initially hold such property in trust for the benefit of CEU as to its 90% interest therein. Trigon, or its affiliate, as applicable, shall promptly execute and deliver an
assignment (collectively, the “Initial Assignments”), in form and substance substantially similar to Exhibit 0, (the “Approved Assignment”), assigning to CEU its 90% interest in each Phase One Property. Trigon will
file the Initial Assignments of record and shall promptly notify CEU of such filing and provide a copy of the recorded Assignment to CEU, all at CEU’s sole cost and expense. 

(c) CEU acknowledges that Trigon does not have sufficient funds for the development of the Phase One Properties and that Trigon will be
seeking equity capital from one or more institutional funders (collectively, a “Funder”) to fund such activities. The date on which Trigon enters into a definitive written agreement with a Funder (a “Funder Agreement”) with
respect to the capitalization of such acquisition and development activities, in a minimum 

  
 7 

 
amount equal to the Required Funder Commitment, is herein referred to as the “Equity Commitment Date” and the period beginning on the Equity Commitment Date and continuing for the term
of this Agreement is referred to herein as “Phase Two.” Trigon shall keep CEU fully informed as to the status of its negotiations with the Funder, the principal terms of such funding, and the timing of the Equity Commitment Date. Within
one Business Day following the Equity Commitment Date, Trigon shall deliver written notice (the “Funder Notice”) to CEU of the Equity Commitment Date, the Funder Equity Commitment and the Management Equity Commitment. For purposes of this
Agreement, the “Required Funder Commitment” shall mean an amount equal to the lesser of (i)$65 million, less the Management Equity Commitment (as defined hereinafter), or (ii) $60 million. 

(d) On or before fifteen (15) days following CEU’s receipt of the Funder Notice, CEU shall deliver written notice (the
“Relevant Interest Notice”) to Trigon specifying CEU’s AMI Interest, the amount of the CEU Funded Capital and the amount of the CEU Returned Capital. Within three (3) Business Days of receiving the Relevant Interest Notice,
Trigon shall pay to CEU, in cash or other immediately available funds, an amount equal to (i) the CEU Funded Capital, multiplied by (ii) (A) the difference between 0.90 and CEU’s AMI Interest (expressed as a decimal), divided by
(B) 0.90 (the “CEU Returned Capital”). For instance, if the CEU Funded Capital is $22.5 million and CEU’s AMI Interest is 10%, Trigon would pay to CEU $20 million. For purposes of this Agreement: 

(i) the “CEU Equity Percentage” shall mean a fractional interest (expressed as a percentage) determined by
dividing the CEU Base Capital, by the sum of (A) the Committed Capital, (B) the amount of equity capital that the Funder has agreed to contribute to the capital of Trigon in accordance with, and subject to the terms and provisions of, the
Funder Agreement (the “Funder Equity Commitment”) and (C) any additional amounts that the management of Trigon agrees to contribute to the capital of Trigon in accordance with, and subject to the terms and provisions of, the Funder
Agreement (the “Management Equity Commitment,” which shall not include any amounts contributed by Trigon’s management to fund the Trigon Funded Capital); and 

(ii) “CEU’s AMI Interest” shall mean a fractional interest (expressed as a percentage) that is specified by
CEU in the Relevant Interest Notice, which amount shall not be less than zero percent (0%) and shall not be more than the greater of: (A) ten percent (10%), and (B) the lesser of (y) the CEU Equity Percentage, or (z) twenty-five
percent (25%). 
 (e) Upon receipt of the CEU Returned Capital, CEU shall assign an interest in the Phase One Properties to
Trigon, such that CEU retains only its Relevant Interest. The assignments contemplated hereby shall occur as soon as reasonably practical following payment of the CEU Returned Capital and shall be made pursuant to an Assignment in form and substance
substantially similar to the Approved Assignment. 
 (f) After the Equity Commencement Date, acreage acquisitions by the Parties
within the AMI shall be covered by Article III. 
 (g) If Trigon shall fail to enter into a Funder Agreement by the Equity
Deadline, for a minimum equity commitment by the Funder equal to the Required Funder 

  
 8 

 
Commitment, then the Parties shall cause the Phase One Properties and any related Seismic Data, if any, to be sold. The Parties will jointly work to market the Phase One Properties and Seismic
Data, if any, to potential buyers. The net proceeds from the sale will be distributed 90% to CEU and 10% to Trigon. If (i) the Parties receive a written, bona fide, third party offer for the purchase of the Phase One Properties for cash or
other immediately available funds, at a price that equals or exceeds the Funded Costs for the Phase One Properties plus the Parties’ costs for Seismic Projects or Seismic Data, which offer is not subject to any terms or conditions other than
customary terms and conditions for the purchase of non-producing oil and gas interests, that Trigon is willing to accept, and CEU elects not to sell its interest in the Phase One Properties pursuant to such offer and (ii) the offeror is
unwilling to purchase only Trigon’s 10% interest in the Phase One Properties at the offer price (proportionately reduced for Trigon’s interest), Trigon shall have the right to cause CEU to buy its interest in the Phase One Properties at
the offer price (proportionately reduced for Trigon’s interest) and CEU shall be obligated to purchase Trigon’s interest in the Phase One Properties at such price, payable in cash or other immediately available funds. 

(h) If, within 180 days of the Equity Commitment Date, Trigon elects to sell or market for sale any of its interest in the Phase One
Properties, whether in one or multiple transactions, and the aggregate purchase price for such properties exceeds an amount equal to the CEU Returned Capital related to such properties plus the Trigon Funded Capital related to such
properties, then Trigon shall pay to CEU, out of the aggregate net sale proceeds for such properties, 90% of such excess. If such a sale or sales by Trigon within the 180-day period includes properties other than Phase One Properties, the purchaser
shall allocate the purchase price for the properties being acquired from Trigon between the Phase One Properties and the other properties. If CEU does not agree with the purchase price allocation by the purchaser, then it shall have the preferential
right to buy the Phase One Properties from Trigon at the purchase price allocated by the purchaser, in which case the provisions of this Section 2.1(h) shall apply to the amounts paid by CEU for the Phase One Properties. CEU shall
exercise its preferential right to buy, if at all, within 10 Business Days after receiving written notice from Trigon that it has executed a contract for sale and the purchaser’s purchase price allocation. If CEU fails to timely exercise its
preferential right to buy hereunder, Trigon shall be free to sell the Phase One Properties to the purchaser pursuant to the terms and conditions of the contract and the purchaser’s purchase price allocation shall be binding on the Parties for
purposes of calculating the payments due to CEU under this Section 2.1(h). 
 (i) Each of Trigon and CEU shall
designate in writing an individual (each a “Representative” and together the “Representatives”) who will be the primary contact person associated with the administration of this Agreement. During Phase Two, the Representatives
will meet on a regular basis and in any event no less frequently than once each calendar quarter to review the current status of the various projects, budgets and other matters involving the interests of the parties. The Representatives will use
their best efforts to schedule any such meetings to shortly follow any similar meetings that Trigon may be having with the Funder. During the term of this Agreement, Trigon shall, in addition to other information and reports contemplated hereby,
provide CEU with monthly updates of the well production database (Aries file) and well completion database and with quarterly updates of the structure and net pay isopach and the cross sections for prospective acreage, and scouting maps covering the
AMI. 

  
 9 

 2.2 Activities within the AMI. During the term of this Agreement, Trigon and CEU
agree that their activities and operations within the AMI will be governed by the terms and provisions of this Agreement and, where not prevented by an existing third party joint operating agreement, the Master Joint Operating Agreement and any
applicable Individual Joint Operating Agreements. If there is a conflict between the terms of this Agreement and the terms of the applicable Joint Operating Agreement, the terms of this Agreement shall control the rights and obligations of the
Parties. 
 2.3 Relationship of Parties. This Agreement is not intended to create, nor shall the same be construed as
creating, any mining partnership, commercial partnership or other partnership, fiduciary relationship or joint venture. Rather, it is the intent and purpose of this Agreement to establish a relationship which will be limited to the acquisition,
evaluation, development, exploration and operation of the lands, leases, wells and interests within the AMI. Further, it is the intent of the Parties that the liabilities of each of the Parties shall be several and not joint or collective. None of
the Parties shall be considered to have a fiduciary relationship with any other party and, subject to the terms hereof, each Party shall be entitled to act in its own self interest in dealing with the subject matter of this Agreement. 

ARTICLE III 
 PROPERTY RELATED OBLIGATIONS 
 3.1 Properties and Interests within the
AMI. 
 (a) It is not the intention of the Parties hereto to restrict, limit or discourage a Party to this Agreement from
acquiring or making an offer to acquire (i.e., by purchase, trade, exchange, farm-in or other similar transaction) additional oil, gas and other hydrocarbon properties and interests, including leases and options (herein referred to
“Hydrocarbon Interests”), within the AMI; provided, however, that if a Party or any of its Affiliates (the “Acquiring Party”) acquires any Hydrocarbon Interests within the AMI after the Effective Date and on or before the earlier
of (i) June 1, 2013, (ii) the date that the Parties have jointly acquired Hydrocarbon Interests covering 60,000 or more of net mineral acres in the AMI or (iii) the date that the Parties have incurred $120 million in Lease
Acquisition Costs for jointly owned Hydrocarbon Interests within the AMI, the Acquiring Party shall provide written notice within thirty (30) days of such acquisition to the other Party (the “Non-Acquiring Party”). The written notice
shall contain full particulars concerning the acquisition and include a copy of any written agreement that relates to such acquisition, including the terms of the acquisition and the Lease Acquisition Costs associated with the acquisition. Upon
request by the Non-Acquiring Party, the Acquiring Party shall promptly make available for inspection in the Acquiring Party’s offices all reasonably available information related to the Hydrocarbon Interests to be acquired, including all
reasonably available title, environmental, geological, geophysical and well data and information. The Acquiring Party shall provide the Non-Acquiring Party, at the Non-Acquiring Party’s sole cost and expense, copies of all information
reasonably requested by the Non-Acquiring Party. The Non-Acquiring Party shall have a period of thirty (30) days after the later of (i) the receipt of the notice from the Acquiring Party and (ii) the date all information requested by
the Non-Acquiring Party was made available, in which to elect to purchase, on the same terms and conditions as the Acquiring Party, an undivided interest in the Hydrocarbon Interests so acquired equal to the Election Percentage. Such election shall
be exercised by delivering written notice thereof (the “AMI Election Notice”) to the Acquiring Party within such 30-day period, 

  
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which notice shall specify the property to which such notice relates and shall be accompanied by cash or other immediately available funds equal to the Acquiring Party’s Lease Acquisition
Costs for such property times the Election Percentage. Upon receipt of the AMI Election Notice and the Non-Acquiring Party’s funds related to such notice, the Acquiring Party shall assign the Non-Acquiring Party the Election Percentage of the
Acquiring Party’s interest in the Hydrocarbon Interests so acquired, using the same form of conveyance that was used to convey the acquired properties to the Acquiring Party, but containing a special warranty of title. Failure by the
Non-Acquiring Party to timely deliver an AMI Election Notice (accompanied by the Acquiring Party’s applicable share of the Lease Acquisition Costs for the property to which the notice relates) shall constitute a waiver by the Non-Acquiring
Party of its right to purchase the interest in the properties acquired by the Acquiring Party. 
 (b) During the first six
months of Phase Two, the Parties anticipate that they will be actively acquiring additional Hydrocarbon Interests, including leases and options, within the AMI. Trigon will keep CEU informed of its lease acquisition activities and will provide CEU
with all reasonably available information related to the properties under consideration, including lease terms, all reasonably available title, environmental, geological, geophysical and well data and information for such properties. CEU shall not
be required to acquire any interest in any such properties, but if CEU desires to acquire an interest equal to the Election Percentage, it shall pay the Election Percentage of the Lease Acquisition Costs on or before the date that any amounts are
paid to the lessor and a failure to do so shall constitute an election not to acquire any interest in such property, provided Trigon has delivered CEU at least ten (10) Business Days prior written notice of such property acquisition together
with a statement of the Lease Acquisition Costs for such acquisition. Should Trigon fail to deliver such notice, the provisions of Section 3.1(a) shall apply to such acquisition. For any properties and interests acquired by CEU in accordance
with this Section 3.1(b), Trigon shall promptly assign CEU the Election Percentage of Trigon’s interest in the properties so acquired using the same form of conveyance that was used to convey the acquired properties to Trigon, but containing a
special warranty of title. 
 (c) During Phase One, the provisions of this Section 3.1 shall not apply to any Hydrocarbon
Interests acquired by The Family Tree Oil & Gas Corporation (“Family Tree”), an Affiliate of Trigon, from those Persons (or their family members) and corresponding properties listed on Exhibit 0 (the “Excluded Mineral
Interests”); provided, however that, in the event any Hydrocarbon Interests acquired by Family Tree during Phase One includes any Excluded Mineral Interest that is not already subject to an existing oil and gas lease, Family Tree shall lease
such minerals to Trigon pursuant to a lease agreement in form substantially similar to that attached hereto as Exhibit 0, in which case CEU shall have the rights set forth in Section 3.1(b) with respect to such lease. By its signature on
the signature page hereof, Family Tree hereby acknowledges and agrees to be bound by the terms and provisions of this Section 3.1 and represents and warrants that Exhibit 0 describes (i) all Persons who were contacted by Family Tree
prior to the Effective Date for the purpose of acquiring Hydrocarbon Interests, the corresponding property owned by such Persons as to which Family Tree has made inquiry, including the County in which such property is located and its approximate
location, if available, and (ii) a description of all oil, gas or other mineral leases acquired by Family Tree within the AMI prior to the Effective Date. 

  
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 3.2 Acreage within and without of the AMI. If an acquisition of properties or
interests by the Acquiring Party covers properties that are both within and outside the AMI, the Acquiring Party shall only be obligated, in accordance with the provisions of Section 3.1, to offer to the Non-Acquiring Party the properties that
are located within the AMI. In such event, the Acquiring Party will in good faith provide the Non-Acquiring Party with a reasonable and supportable allocation of the costs attributable to the acquired properties located within the AMI, which
allocation shall be agreed to by the Parties or submitted for dispute resolution in accordance with the provisions of Article XI. The allocation of costs shall be based upon the good faith allocations based on fair market value. The Non-Acquiring
Party’s right to elect to acquire the oil and gas properties and interests hereunder shall be limited to properties located within the AMI. 
 ARTICLE IV 
 SEISMIC RELATED OBLIGATIONS 

4.1 Seismic Projects. 
 (a) During the term of this Agreement, Trigon may propose a Seismic Project to CEU; provided that, Trigon may not propose any Seismic Project for 3-D geophysical data during Phase One. Any and all
proposals of a Seismic Project shall be made in writing (and, at the request of CEU, shall include a technical presentation) and shall include, but not be limited to, the following information: 

(i) a defined geological and geophysical objective; 

(ii) the general exploratory objectives of the Seismic Project, including a description of the Shoot Area and the shoot
outline; 
 (iii) the equipment, shooting parameters, and methods to be used for the acquisition of the data;

 (iv) the estimated costs of permits, surface damages, options and/or leases to be acquired ; 

(v) the estimated costs, the anticipated commencement date, and the anticipated completion date of the Seismic Project;
and 
 (vi) any other relevant information. 

(b) In the case of a Seismic Project proposed by Trigon, (i) the project may be approved by CEU as proposed, (ii) CEU may
recommend changes to the proposal, or (iii) CEU may elect not to participate in such project. Within thirty (30) days of the date that the proposal is delivered to CEU (the “Proposal Date”), CEU shall provide Trigon with written
notice of CEU’s (x) intention to proceed with the project as proposed, (y) election not to proceed with the project, or (z) counter-proposal for the project; provided, however, that a failure to provide Trigon with a notice
within such 30-day period shall constitute an election to not participate in the Seismic Project as proposed. In the event that CEU submits a counter-proposal, the Parties shall promptly attempt to mutually agree on the parameters to be contained

  
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in a final Seismic Project. If the Parties are unable to agree on the parameters to be contained in a final Seismic Project within forty-five (45) days after the Proposal Date, the Seismic
Project proposed by Trigon shall be deemed adopted and CEU shall have five days after notice from Trigon to either approve or reject such project. 
 (c) In the case of any jointly approved Seismic Project, Trigon shall be responsible for the management of all seismic operations of the Parties within the AMI including, but not limited to (i) the
acquisition of seismic permits, seismic data and initial data processing for each Seismic Project undertaken by the Parties, (ii) the scheduling and selecting of contractors and seismic data processors and (iii) conducting the day to day
support activities including land, geotechnical guidance, seismic acquisition, liability mitigation. 
 (d) If CEU elects to
participate in a proposed Seismic Project, Trigon shall establish a budget detailing the costs and expenses to be incurred in connection with such Seismic Project (the “Seismic Project Budget”), which Seismic Project Budget may be amended
by the Parties from time to time. Approval by a Party of a Seismic Project shall bind such Party to pay such Party’s Relevant Interest of all costs and expenses incurred in connection with such Seismic Project to the extent of the Seismic
Project Budget. 
 4.2 Acquisition of Third Party Seismic Data. The Parties contemplate that certain third party Seismic
Data packages will be purchased after the Effective Date. Trigon shall determine the Seismic Data to be acquired and submit the details of such package to CEU; provided that, Trigon may not propose to acquire any Seismic Data package for 3-D
geophysical data during Phase One. If CEU approves the purchase of such Seismic Data package, the Parties shall share the costs of such Seismic Data based upon their Relative Interests in the properties covered by the Seismic Data. 

4.3 Non-Consent Provisions. 
 (a) If CEU does not elect to participate in a Seismic Project under Section 4.1 or does not approve the acquisition of a Seismic Data package under Section 4.2 and Trigon elects to proceed with such
Seismic Project or the acquisition of such Seismic Data package, then, in the case of any well drilled within the Shoot Area of a Seismic Project or within the area covered by the Seismic Data, Trigon shall recover 150% of CEU’s share of the
costs associated with (i) such Seismic Project (based upon CEU’s Relevant Interest in the properties covered by the Shoot Area), or (ii) such Seismic Data package (based upon CEU’s Relevant Interest in the properties covered by
the Seismic Data), in each case out of sales of production from the first three wells (one-third per well) drilled in the Shoot Area or in the area covered by the Seismic Data, as the case may be, in which CEU participates, but only to the extent
such wells are drilled after the completion of the Seismic Project or the acquisition of the Seismic Data, as the case may be. 

(b) The non-consent provisions of this Section 4.3 shall only apply to the first $4 million in the aggregate (the “Seismic Threshold
Amount”) in costs incurred by Trigon for Seismic Projects or for the acquisition of Seismic Data. 
 4.4 Ownership of
Seismic Data. Except as otherwise provided in this Section 4.4, the Parties shall jointly own all Seismic Data acquired within the AMI and each Party shall be 

  
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entitled to a copy of all Seismic Data; provided, however, that in the event (i) Trigon proposes a Seismic Project or to acquire Seismic Data and CEU does not participate in such Seismic
Project or approve the acquisition of such Seismic Data, and (ii) the non-consent cost recovery provisions of Section 4.3(a) do not apply to such Seismic Project or Seismic Data because the costs incurred by the Parties on Seismic Projects or
for Seismic Data have previously exceeded the Seismic Threshold Amount, then CEU shall have no rights with respect to any Seismic Data resulting from such Seismic Project or acquisition. In the event any third-party Seismic Data is licensed by
Trigon, Trigon will secure a joint license for CEU if available at no additional cost. If not available, CEU shall not jointly own, or be entitled to a copy of, such Seismic Data but Trigon shall use its best efforts to secure rights in the license
agreement for CEU, its consultants and prospective purchasers to view such Seismic Data. In all cases, CEU shall have the right to view such Seismic Data in Trigon’s offices. 

ARTICLE V 
 DRILLING RELATED OBLIGATIONS 
 5.1 Drilling Operator. 

(a) Where not prevented by an existing third party joint operating agreement, Trigon shall be designated as operator under the terms of
the Individual Joint Operating Agreement for any and all wells commenced by the Parties within the AMI; provided that, no Party shall have any obligations as operator under a Joint Operating Agreement until an Initial Well has been proposed for a
Prospect Area; and provided further that the Party owning the largest Relevant Interest within a Prospect Area shall have the right to remove the operator, with or without cause, and to designate a replacement operator. 

(b) With respect to any drilling operations to be commenced hereunder, the Party designated as operator herein shall commence drilling
operations as promptly as possible after the approval of the relevant AFE (and in any event within 120 days after such approval or such earlier time as may be necessary to maintain any leases within the AMI). 

(c) Each AFE shall be accompanied by the following information: 

(i) scouting map with surface and bottom hole of proposed well and all immediate offset wells; 

(ii) indication of whether the AFE is for the first well in a Prospect Area (i.e., an Initial Well) or increased
density well; 
 (iii) outline of proposed Prospect Area and drilling unit; 

(iv) copy of permit - if filed; 
 (v) economics for most-likely, low and high cases; and 
 (vi) arb
line down well path – if 3D available. 
 5.2 Proposals to Drill Wells. 

  
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 (a) During the term of this Agreement, drilling proposals may be made by either Party in
accordance with the provisions of the applicable Joint Operating Agreement. 
 (b) If either Party recommends the drilling of a
well and third parties would have the right to participate in the drilling of the proposed well, the proposal shall first be made only to the Parties to this Agreement. 
 (c) A drilling proposal for an Initial Well shall specify the Prospect Area for such well, which shall be the drilling unit related to such well, not to exceed 640 acres (plus a variance of up to 10%).

 5.3 Drilling, Completion and Other Elections. The provisions of the Joint Operating Agreement shall govern the
procedures for making elections to participate in the costs of a proposed well, other subsequent operations, proposed completion operations or in proposed optional operations. If a third-party joint operating agreement is in effect and does not
contain the same in or out elections as are contained in the Master Joint Operating Agreement with regard to the Initial Well drilled in any Project Area, then no later than the second Business Day prior to the end of the time period for a Party to
elect to participate in the drilling of the Initial Well under such third party joint operating agreement, a Party hereto that intends to elect not to participate in the Initial Well will offer to convey its interest in the Project Area for such
Initial Well to the other Party provided the other Party elects to participate in such Initial Well to the extent of both Parties interest. Such conveyance shall be at no cost to the participating Party, except as contemplated by Section 5.4.

 5.4 Prospect Relinquishment. 
 (a) If a Party elects not to participate in an Initial Well, the non-participating Party shall relinquish to the other Party, at no cost, all of its oil, gas and other hydrocarbon properties and
interests, including leases, permits and options, in the Prospect Area for that Initial Well, as to all depths from the surface to 100 feet beneath the deepest stratigraphic interval penetrated by the Initial Well; provided, however, that if the
Initial Well is not spudded within the time period contemplated by Section 5.1(b), and drilled to its target depth or the target formation with due diligence, then no relinquishment shall occur hereunder. 

(b) If a Party elects not to participate in any well other than an Initial Well the non-participating Party shall be subject to the
nonconsent provisions in the Joint Operating Agreement on a well-by-well basis for any remaining wells drilled in the relevant Prospect Area. 
 ARTICLE VI 
 TERM; TERMINATION 

6.1 Term. This Agreement shall terminate when the properties jointly owned by the Parties within the AMI are seventy-five percent
(75%) developed or at such earlier time as Trigon or CEU disposes of all of its respective interest in the properties subject to this Agreement. 
 6.2 Termination. In the event of a Material Default by any Party, the non-defaulting Party shall have the right to terminate this Agreement by delivering a notice of termination to the 

  
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defaulting Party, which termination will occur ninety (90) days following the defaulting Party’s receipt of such notice. For purposes of the foregoing, a “Material Default”
shall mean each of the following events, after thirty (30) days’ notice and failure to cure except in the case of a default pursuant to Section 6.2(b) which shall require no advance notice): 

(a) in the case of either Party, if such Party is in material breach of its obligations under this Agreement; 

(b) in the case of either Party, upon the following: 

(i) any decree or order for relief in respect to such Party is entered under any bankruptcy, reorganization, receivership,
compromise, arrangement, insolvency, readjustment or debt, dissolution or liquidation or similar law, whether now or hereafter in effect, of any jurisdiction; 
 (ii) such Party petitions or applies to any tribunal for, or consents to, the appointment of, or taking possession by, a trustee, receiver, custodian, liquidator or similar official of such Party, or of
any substantial part of the assets of such Party or commences a voluntary case under the bankruptcy law of any jurisdiction; 
 (iii) any such petition or application is filed, or any such proceedings are commenced, against such Party and such Party by any act indicates its approval thereof, consent thereto or acquiescence
therein, or an order, judgment or decree is entered appointing any such trustee, receiver, custodian, liquidator or similar official, or approving the petition in any such proceedings, and such order, judgment or decree remains unstayed and in
effect for more than sixty (60) days; or 
 (iv) any order, judgment or decree is entered in any proceedings
against such Party decreeing the dissolution of such Party and such order, judgment or decree remains unstayed and in effect for more than sixty (60) days. 
 6.3 Survival Following Termination. Notwithstanding the foregoing, the following shall survive the termination of this Agreement and shall be binding upon any successor and assign to the
Party’s interests within the AMI: 
 (a) All applicable Joint Operating Agreements. 

(b) At the non-defaulting Party’s election, all provisions of Article III, Article VIII and
Article IX. 
 (c) In the event either party disposes of all of its interest in the properties subject to this Agreement,
at the disposing party’s election, all provisions of Article III, but only to the extent the purchaser agrees to be bound by the terms of Article III. 

(d) In the event either party disposes of all of its interest in the properties subject to this Agreement, at the non-disposing
party’s election, all provisions of Article VIII and Article IX. 

  
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 ARTICLE VII 

FORCE MAJEURE 
 If any Party is rendered unable, wholly or in part, by force majeure to carry out its obligations under this Agreement, other than the obligation to make money payments, that Party shall give the other
Party prompt written notice of the force majeure event with reasonably full particulars concerning the same; thereupon, the obligations of the Party giving the notice, so far as they are affected by the force majeure, shall be suspended during, but
no longer than, the continuance thereof. The affected Party shall use all reasonable diligence to remove the force majeure event as quickly as practicable; provided, however, no Party shall be required against its will to settle any labor dispute.
For the purpose of this Agreement, the term force majeure shall mean an act of the public enemy, war, terrorism, blockade, public riot, lightning, fire, storm, flood, explosion, governmental action, governmental delay (including delays for
environmental assessments and environmental impact statements), restraint or inaction, unavailability or failure of equipment, and any other cause, whether of the kind specifically enumerated herein or not, which is not reasonably within the control
of the Party claiming force majeure. 
 ARTICLE VIII 

CONFIDENTIALITY 
 8.1 Confidentiality of Each Party’s Information. Each of the Parties covenants and agrees that it will not, and it will use its best efforts to cause its Affiliates not to, unless authorized
in writing by the other Party, disclose to any Person and shall hold in the strictest of confidence any sole and separate (as opposed to jointly owned) confidential or proprietary information of the other Party, whether of a technical, financial,
commercial or other nature, except: 
 (a) to such Party’s officers, directors, employees, attorneys, accountants, and
other professionals to whom, and only to the extent that, such disclosure is necessary in furtherance of the purposes of this Agreement; provided, however, that the disclosing Party shall be responsible for ensuring that such Persons comply with the
confidentiality and non-use undertakings in this Article VIII and shall take reasonable precautions to ensure such compliance whether by agreement, establishment of internal regulations, or otherwise; 

(b) to the extent required by Applicable Law, but in the event of any proposed disclosure the Party from which disclosure is required or
sought shall seek the assistance of the other Party to protect information in which such other Party has an interest to the extent reasonably possible under the circumstances; 
 (c) to the extent that the disclosing Party can establish that the information: (i) was generally available in the public domain, provided such availability was not the result of a violation of this
Agreement; (ii) was lawfully obtained from a source under no obligation of confidentiality, directly or indirectly, to the Party opposing the disclosure; (iii) was disclosed to the general public with the written approval of the Party
opposing the disclosure; or (iv) was in the files, records or knowledge of the Party proposing disclosure prior to the initial disclosure to such Party by the other Party; 

(d) to any Person or Persons considering acquiring all or any portion of a Party’s interest in any project, prospect, property or
well, in which event a Party shall be 

  
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permitted to disclose the confidential or proprietary information relevant to such project, prospect, property or well to the Person or Persons considering acquiring such interest, and then only
if the Person or Persons to whom the disclosure is made is bound by a confidentiality agreement, in substantially the form attached hereto as Exhibit 0 (the “Accepted CA”); and 

(e) to a bank, commercial lender or other financing party, including potential equity investors, in connection with a loan transaction or
other financing agreement, or equity investment with the disclosing Party; provided that the Person to whom the disclosure is made is bound by a confidentiality agreement in substantially the form of the Accepted CA. 

8.2 Restrictions on Use. Each of the Parties covenants and agrees for itself and its respective Affiliates and its and their
respective successors and assigns that it shall not use any proprietary or confidential information of the other Party, except in furtherance of the activities contemplated by this Agreement or as otherwise expressly permitted by this Agreement.
Each Party shall cause its and its Affiliates, officers, directors, employees, attorneys, accountants and agent to also abide by such restrictions on the use of such information and shall be responsible for any failure of such persons to do so.

 8.3 Violations. Each Party agrees that any violation of the obligations of confidentiality and non-use set forth
herein would be likely to be highly injurious to the other Party. The Parties consent and agree that if a Party violates any of the provisions of this Article VIII, the non-disclosing Party may be entitled, in addition to any other
rights and remedies that it may have, including money damages, to apply to any court of law or equity of competent jurisdiction for specific performance and for injunctive or other relief in order to enforce or prevent any continuing violation of
the provisions hereof. 
 ARTICLE IX 
 RESTRICTIONS ON DATA 
 9.1 Restrictions on Data. All Data which is
acquired for the joint account of the Parties shall be owned equally by the Parties in accordance with the terms of this Agreement and shall be kept confidential for so long as any obligations remain outstanding under this Article IX. No Party may
disclose, transfer, sell, exchange or otherwise convey any jointly acquired Data to any Person except as provided hereinbelow. 

(a) Data acquired jointly by the Parties during the term of this Agreement shall only be disclosed, transferred, sold, exchanged or
otherwise conveyed as follows: 
 (i) to such Party’s officers, directors, employees, attorneys,
accountants, and other professionals to whom, and only to the extent that, such disclosure is necessary in furtherance of the purposes of this Agreement or in connection with a proposed sale, financing or equity raise; provided, however, that the
disclosing Party shall be responsible for ensuring that such Persons comply with the confidentiality and non-use undertakings in this Article IX and shall take reasonable precautions to ensure such compliance whether by agreement, establishment of
internal regulations, or otherwise; 

  
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 (ii) If a Party desires to sell down all or any portion of its interest in
any project, prospect, property or well, such Party shall only be permitted to disclose the Data relevant to such project, prospect, property or well to the Person or Persons considering acquiring such interest, and then only if the Person or
Persons to whom the disclosure is made is bound by a confidentiality agreement, in substantially the form of the Accepted CA. 
 (iii) Either Party may disclose jointly acquired Data to a bank, commercial lender or other financing party, including potential equity investors, in connection with a loan transaction or other financing
agreement or equity investment with such Party and may pledge its Relevant Interest in or to such Data as collateral security in connection with any such loan or financing agreement; provided that the Person to whom the disclosure is made is bound
by a confidentiality agreement, in substantially the form of the Accepted CA. 
 (iv) By mutual agreement of the
Parties. 
 (b) No Party may transfer to any Person any jointly owned Geological Data for so long as the property to which such
Geological Data relates is within the AMI. Thereafter such Geological Data may be transferred without restriction, except as otherwise governed by this Agreement); provided, however, that either Party may transfer an interest in Geological Data to a
purchaser from such Party of property in the AMI. 
 ARTICLE X 

ASSIGNMENT 

10.1 Assignment of Agreement. The terms and conditions contained in this Agreement are personal in nature and this Agreement shall
not be assignable, in whole or in part, by either Party without the prior written consent of the other Party, which shall not be unreasonably withheld; provided, however, that each Party may assign any or all of its rights under this Agreement to an
Affiliate of such Party without the consent of the other Party, but such assignment shall not release the assigning Party from any of its obligations under this Agreement. For purposes of this provision, “Affiliate” means any entity which
directly or indirectly controls, is controlled by, or is under common control with the assigning Party. The term “control” (including the terms “controlled by” and “under common control with”) as used in the preceding
sentence means the possession, directly or indirectly, of the power to direct and cause the direction of management and policies of an entity. In no event will Constellation Energy Partners LLC be deemed an Affiliate of CEU. 

10.2 Tag-Along Rights. If a Party (the “Selling Party”) that owns a majority interest in the properties within the AMI
receives a bona fide offer to purchase its interest in the properties and the Selling Party desires to accept such offer, the Selling Party shall notify the other Party in writing (the “Tag Along Notice”) of all of the material terms and
conditions of such offer at least thirty (30) days prior to any proposed sale including (i) the name of the proposed purchaser, (ii) the interests to be sold (the “Initial Interest”), (iii) if applicable, any additional
interest that the proposed transferee is willing to purchase contemporaneously with the acquisition of the Initial Interest (the “Additional Interest” and, together with the Initial Interest, the “Maximum Interest”),
(iv) the amount and type of consideration to be paid by the proposed purchaser and (v)

  
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the expected location and date of the closing of such sale. If the other Party wishes to participate in the proposed sale by the Selling Party, the other Party must so notify the Selling Party in
writing not more than 10 Business Days after the date or receipt of the Tag Along Notice, failing which the other Party shall not be entitled to participate in such proposed sale and shall relinquish any and all rights to participate therein. Such
written notice shall include the amount of interest in the properties to be sold that the other Party wishes to sell, such amount not to exceed the product of (1) the Maximum Interest multiplied by (2) a fraction, the numerator of
which shall be the Selling Party’s Relevant Interest in the properties to be sold and the denominator of which is the sum of the Selling Party’s Relevant Interest in the properties to be sold and the other Party’s Relevant Interest in
the properties to be sold, it being the intent of the Parties that, in connection with any sale by a Selling Party that the other Party shall have the right to sell all or a portion of its interests in the properties being sold, proportionately with
the Selling Party based upon their respective interests in the properties being sold, notwithstanding that an election to do so may reduce the interest to be sold by the Selling Party. In the event the other Party elects to participate in the
proposed sale the other Party shall fully cooperate with the Selling Party in connection with such sale and shall take all actions reasonably requested by the Selling Party (including executing and delivering a purchase agreement, on terms similar
to those by which the Selling Party will be bound, with the purchaser) in connection with such sale. Notwithstanding the foregoing, in the event the Tag Along Notice does not include a fully executed purchase and sale agreement or, if subsequent to
the receipt of a copy of the Tag Along Notice together with a fully executed copy of the Purchase and Sale Agreement, the purchase and sale agreement is amended by the Selling Party and the proposed purchaser, the Selling Party shall deliver to the
other Party a subsequent Tag Along Notice together with a fully executed copy of the purchase and sale agreement or the amendment to the purchase and sale agreement and, if the other Party wishes to change its election to participate or not
participate in the proposed sale by the Selling Party, the other Party shall so notify the Selling Party in writing not more than 10 Business Days after the date or receipt of the subsequent Tag Along Notice, failing which the other Party shall not
be entitled to change its prior election to participate or not participate in such proposed sale. 
 ARTICLE XI

 DISPUTE RESOLUTION 
 11.1 Dispute; Mutual Resolution. The Parties will attempt in good faith to mutually resolve any and all disagreements, controversies or claims arising out of, relating to or in connection with this
Agreement (including any modifications or amendments thereof) or the scope, breach, termination, interpretation or validity thereof (“Dispute”). 
 11.2 Mandatory and Binding Arbitration. Any and all Disputes which cannot be resolved through the mutual agreement of the Parties shall be resolved by mandatory and binding arbitration administered
by the American Arbitration Association (the “AAA”) in accordance with the terms of this Article XI and its Commercial Arbitration Rules. In the event of any inconsistency between this Article XI and such rules, this Article XI shall
control. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction. 

  
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 11.3 No Waiver; Preservation of Remedies. Neither any provision of this Article XI
nor the exercise of any rights under this Article XI shall limit the right of any Party to employ other remedies, including, without limitation, (1) foreclosing against any real or personal property collateral or other security by the exercise
of a power of sale under a deed of trust, mortgage, or other security agreement or instrument, or Applicable Law, (2) exercising self-help remedies (including set-off rights) or (3) obtaining provisional or ancillary remedies such as
injunctive relief, sequestration, attachment, garnishment, or the appointment of a receiver from a court having jurisdiction before, during, or after the pendency of any arbitration. The institution and maintenance of an action for judicial relief
or pursuit of provisional or ancillary remedies or exercise of self-help remedies shall neither constitute a waiver of the right of any Party, including the plaintiff therein, to submit the Dispute to arbitration nor render inapplicable the
compulsory arbitration provisions hereof. Without limitation of the foregoing, the Parties shall be entitled to the benefits of each and all of the remedies and assistance provided for by Applicable Law. 

11.4 Statute of Limitations. All statutes of limitation that would otherwise be applicable shall apply to any arbitration
proceeding. 
 11.5 Scope of Award and Modification or Vacation of Award. The arbitrators shall resolve all Disputes in
accordance with the applicable substantive law. Any arbitrators shall be practicing attorneys licensed to practice law in the State of Texas and shall be knowledgeable in the subject matter of the Dispute. With respect to a Dispute in which the
claim or amount in controversy does not exceed $1,000,000, a single arbitrator (who shall have authority to render a maximum award of $1,000,000, including all damages of any kind but excluding costs and fees) shall be chosen and shall decide the
Dispute. With respect to a Dispute in which the claim or amount in controversy exceeds $1,000,000, the Dispute shall be decided by a majority vote of three (3) arbitrators, who shall be chosen as follows: (i) each Party shall elect an
arbitrator, in such Party’s sole discretion; and (ii) each of the arbitrators so elected shall mutually agree on a third arbitrator. The arbitrators may grant any remedy or relief that the arbitrators deem just and equitable and within the
scope of this Article XI. The arbitrators may also grant such ancillary relief as is necessary to make effective the award. In all arbitration proceedings in which the amount in controversy exceeds $1,000,000, in the aggregate, the Parties
shall have in addition to the limited statutory right to seek vacation or modification of any award pursuant to the Applicable Law, the right to seek vacation or modification of any award that is based in whole, or in part, on an incorrect ruling of
law; provided, however, that any such application for vacation or modification of an award based on an incorrect ruling of law must be filed in a court having jurisdiction over the Dispute within thirty 30 days from the date the award is rendered.
The arbitrator’s findings of fact shall be binding on all Parties and shall not be subject to further review except as otherwise allowed by Applicable Law. 

  
 21 

 11.6 Other Matters. To the maximum extent practicable, an arbitration proceeding
hereunder shall be concluded within 180 days of the filing of the Dispute with the AAA. All arbitration proceedings shall be conducted in Houston, Texas in the English language. Arbitrators shall be empowered to impose sanctions and to take such
other actions as the arbitrators deem necessary to the same extent a judge could do pursuant to the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure and Applicable Law. This Article XI constitutes the entire agreement of
the Parties with respect to its subject matter and supersedes all prior discussions, arrangements, negotiations, and other communications on dispute resolution. The provisions of this Article XI shall survive any termination, amendment, or
expiration of this Agreement, unless the Parties otherwise expressly agree in writing. To the extent permitted by Applicable Law, the arbitrator shall have the power to award recovery of all costs and fees (including attorneys’ fees,
administrative fees and arbitrators’ fees) to the prevailing Party. This Article XI may be amended, changed, or modified only by the express provisions of a writing which specifically refers to this Article XI and which is signed by all the
Parties hereto. If any term, covenant, condition or provision of this Article XI is found to be unlawful or invalid or unenforceable, such illegality or invalidity or unenforceability shall not affect the legality, validity or enforceability of the
remaining parts of this Article XI, and all such remaining parts hereof shall be valid and enforceable and have full force and effect as if the illegal, invalid or unenforceable part had not been included. Each Party agrees to keep all Disputes and
arbitration proceedings strictly confidential, except for disclosures of information required in the ordinary course of business of the Parties or by Applicable Law. 
 ARTICLE XII 
 REPRESENTATION AND WARRANTIES 

12.1 Representations and Warranties of Trigon. Trigon represents and warrants to CEU as follows: 

(a) Trigon is a limited liability company duly organized and in good standing under the laws of the State of Delaware and is qualified to
do business in Texas. Trigon has all requisite power and authority to carry on its business as presently conducted and to execute, deliver, and perform this Agreement and carry out the transactions contemplated under this Agreement. 

(b) The execution and delivery by Trigon of this Agreement, the consummation of the transactions set forth herein and the performance by
Trigon of its obligations hereunder have been duly and validly authorized by all requisite limited liability company action on the part of Trigon and will not (i) violate, or conflict with, any provision of Trigon’s governing documents, or
any provision of any statute, rule or regulation applicable to Trigon or any material lease, contract, agreement, instrument or obligation to which Trigon is a party or by which Trigon is bound, or (ii) violate, or conflict with any judgment,
decree or order applicable to Trigon. 
 (c) This Agreement has been duly authorized, executed and delivered by Trigon. All
instruments required to be delivered by Trigon pursuant to this Agreement shall be duly authorized, executed and delivered by Trigon. This Agreement and all documents executed by Trigon in connection with this Agreement shall constitute legal, valid
and binding obligations of Trigon, enforceable against Trigon in accordance with their terms, subject to the effects of 

  
 22 

 
bankruptcy, insolvency, reorganization, moratorium and similar laws from time to time in effect, as well as general principles of equity. 

(d) There are no unsatisfied judgments or injunctions issued by a court of competent jurisdiction or other governmental agency
outstanding against Trigon that would be reasonably expected to materially interfere with Trigon’s ability to enter into this Agreement or consummate the transactions contemplated under this Agreement. 

(e) Trigon has incurred no obligation or liability, contingent or otherwise, for brokers’ or finders’ fees for which CEU shall
have any obligation or liability. 
 (f) There are no bankruptcy, insolvency, reorganization or receivership proceedings filed
or served on Trigon, pending against Trigon or being contemplated by Trigon, or to Trigon’s knowledge, threatened against Trigon. 
 (g) Trigon (i) is not entering into this Agreement with the intent to hinder, delay or defraud creditors, (ii) is solvent, (iii) will not become insolvent as a result of the transactions
contemplated by this Agreement, (iv) is capable of paying its debts as they mature, and (v) is receiving a reasonably equivalent value in exchange for the obligations set forth herein. 

12.2 Representations and Warranties of CEU. CEU represents and warrants to Trigon as follows: 

(a) CEU is a limited liability company duly organized and in good standing under the laws of the State of Delaware. CEU has all requisite
power and authority to carry on its business as presently conducted and to execute, deliver, and perform this Agreement and carry out the transactions contemplated under this Agreement. 

(b) The execution and delivery by CEU of this Agreement, the consummation of the transactions set forth herein and the performance by CEU
of its obligations hereunder have been duly and validly authorized by all requisite limited liability company action on the part of CEU and will not (i) violate, or conflict with, any provision of CEU’s governing documents, or any
provision of any statute, rule or regulation applicable to CEU or any material lease, contract, agreement, instrument or obligation to which CEU is a party or by which CEU is bound, or (ii) violate, or conflict with any judgment, decree or
order applicable to CEU. 
 (c) This Agreement has been duly authorized, executed and delivered by CEU. All instruments required
to be delivered by CEU pursuant to this Agreement shall be duly authorized, executed and delivered by CEU. This Agreement and all documents executed by CEU in connection with this Agreement shall constitute legal, valid and binding obligations of
CEU, enforceable against CEU in accordance with their terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws from time to time in effect, as well as general principles of equity. 

(d) There are no unsatisfied judgments or injunctions issued by a court of competent jurisdiction or other governmental agency
outstanding against CEU that would be reasonably expected to materially interfere with CEU’s ability to enter into this Agreement or consummate the transactions contemplated under this Agreement. 

  
 23 

 (e) CEU has incurred no obligation or liability, contingent or otherwise, for brokers’
or finders’ fees for which CEU shall have any obligation or liability. 
 (f) There are no bankruptcy, insolvency,
reorganization or receivership proceedings filed or served on CEU, pending against CEU or being contemplated by CEU, or to CEU’s knowledge, threatened against CEU. 
 (g) CEU (i) is not entering into this Agreement with the intent to hinder, delay or defraud creditors, (ii) is solvent, (iii) will not become insolvent as a result of the transactions
contemplated by this Agreement, (iv) is capable of paying its debts as they mature, and (v) is receiving a reasonably equivalent value in exchange for the obligations set forth herein. 

ARTICLE XIII 
 MISCELLANEOUS 
 13.1 Entire Agreement; Amendment and Waiver. This
Agreement, together with all Appendices, Exhibits or Schedules attached hereto and thereto and all agreements and instruments to be executed and delivered by the Parties pursuant hereto and thereto, contains the entire agreement between the Parties
relating to the subject matter hereof and supersedes any other prior agreement or arrangement and understanding between the Parties regarding the subject matter of this Agreement. No representation, warranty, covenant, obligation, promise,
inducement or statement of intention has been made by any of the Parties which is not expressed in this Agreement. This Agreement may be amended or changed only by written instrument duly executed by all the Parties thereto, and any amendment or
change which is not so documented shall not be effective as to the Parties. Except as expressly provided herein to the contrary, provisions of this Agreement may be waived only by the Party thereto entitled to the benefit thereof by evidencing such
waiver in writing, executed by such Party. Except to the extent waiver or satisfaction is deemed to exist by the express terms of this Agreement, the failure of any Party hereto to enforce at any time any of the provisions of this Agreement shall in
no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof or the right of any Party thereafter to enforce each and every provision. No waiver of any breach of this Agreement
shall be held to be a waiver of any other or subsequent breach. 
 13.2 Severability. This Agreement is intended to be
performed in accordance with and only to the extent permitted by all applicable legal requirements. If any provision of this Agreement or the application thereof to any Person or circumstance shall for any reason and to any extent, be invalid or
unenforceable, then the performance of such offending provision shall be excused by the Parties hereto, but the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby, but
rather shall be enforced to the greatest extent permitted by law. 
 13.3 Governing Law. This Agreement shall be governed
by, and construed in accordance with, the substantive federal laws of the United States and the internal laws of the State of Texas (principles of conflict of laws excluded). 
 13.4 Notices. Any and all notices, requests, consents or other communications permitted or required to be given under the terms of this Agreement shall be in writing and shall 

  
 24 

 
be deemed received (a) if given by electronic transmission (as defined in Section 13.8), when transmitted if transmitted on a business day and during normal business hours of the
recipient, and otherwise on the next business day following transmission, (b) if given by certified mail, return receipt requested, postage prepaid, three business days after being deposited in the United States mails and (c) if given by
Federal Express or other overnight carrier service or other means, when received or personally delivered. The mailing address and facsimile number of each of the Parties is as follows, which address and number may be changed by notice given in the
manner provided in this Section 13.4: 
  

			
	 If to CEU:
  

CEU Eagle Ford, LLC
 c/o Constellation Energy
      Commodities Group,
Inc.
 Four Houston Center
 1221 Lamar St., Suite 750
 Houston, TX 77010

Attn: Joseph Joyce
 Email:Joseph.Joyce@constellation.com
 Fax: (713) 652-5596

 
	  	 If to Trigon:
  

Trigon Energy Partners LLC
 900 W.
Parkwood
 Friendswood, TX 77546
 Attn:
L. Mackie Cannon
 Email: mcannon@ticdenver.com
 Fax: (281) 317-8221

	 with a copy to:
  

Constellation Energy Commodities Group, Inc.
 111 Market Place, Suite 500
 Baltimore, MD 21202

Attn: General Counsel
 Fax: (410) 468-3499
	  	

 13.5 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of
the Parties hereto and their respective successors and permitted assigns. 
 13.6 Headings. The headings in this
Agreement are inserted for convenience and identification only and are not intended to describe, interpret, define, or limit the scope, extent, or intent of this Agreement or any provision hereof. 

13.7 Legal Representation of the Parties. This Agreement was negotiated by the Parties with the benefit of legal representation
and any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any Party shall not apply to any construction or interpretation hereof or thereof. 

13.8 Electronic Transmission. Each of the Parties hereto agrees that (i) any consent or signed document transmitted by
electronic transmission shall be treated in all manner and respects as an original written document, (ii) any such consent or document shall be considered to have the same binding and legal effect as an original document and (iii) at the
request of any Party hereto, any such consent or document shall be re-delivered or re-executed, as appropriate, by the relevant Party or Parties in its original form. Each of the Parties further agrees that they 

  
 25 

 
will not raise the transmission of a consent or document by electronic transmission as a defense in any proceeding or action in which the validity of such consent or document is at issue and
hereby forever waives such defense. For purposes of this Agreement, the term “electronic transmission” means any form of communication not directly involving the physical transmission of paper, that creates a record that may be retained,
retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process. 
 13.9 Multiple Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original, but all of which shall constitute but one instrument. 

[Signatures on Following Page] 

  
 26 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written. 
  

			
	TRIGON:
	
	Trigon Energy Partners LLC
		
	By:	 	 /s/ L.M. Cannon

	Name:	 	L.M. Cannon
	Title:	 	Manager
	
	CEU:
	
	CEU Eagle Ford, LLC
		
	By:	 	 /s/ Stu Rubenstein

	Name:	 	Stu Rubenstein
	Title:	 	Chief Operating Officer

 For purposes of
acknowledging and agreeing to the terms and provisions of Article III: 
  

			
	The Family Tree Oil & Gas Corporation
		
	By:	 	 /s/ Michael Dykes

	Name:	 	 Michael Dykes

	Title:	 	Secretary

 [Signature Page to Lease
Acquisition and Development Agreement] 

 Exhibit A 
 Counties in Eagle Ford 
 The following Texas counties: 

        Zavalla 
         Dimmitt 

        Webb 
         Frio 

        LaSalle 
         Atascosa 

        McMullen 
         Duval 

        Live Oak 
         Wilson 

        Karnes 
         Bee 

        Gonzales 
         DeWitt 

        Goliad 
         Victoria 

        LavacaExploration and Development Agreement

 EXHIBIT 10.50 
 EXPLORATION AND DEVELOPMENT AGREEMENT 
 WITH AREA OF MUTUAL INTEREST 

EAST NESSON PROJECT 
 MOUNTRAIL COUNTY, NORTH DAKOTA 
 This Exploration and Development Agreement with
Area of Mutual Interest (this “Agreement”) dated effective as of the 1st day of January, 2007 (the “Effective Date”), is by and between Slawson Exploration Company, Inc., a Kansas corporation, whose principal place of business is
727 North Waco, Suite 400, Wichita, Kansas 67203 (hereafter “SECI”), and Chandler Energy, LLC, 475 17th Street, Suite 1210, Denver, Colorado 80202 (hereafter “Participant”). 

Whereas, SECI has acquired certain oil and gas leases and options covering lands within the East Nesson Project Area located In Mountrail
County, North Dakota which is described on Exhibit “A” attached hereto, said Area being hereafter referred to as the “Project Area”. 
 Whereas, Participant wishes to participate with SECI in the evaluation, leasing, drilling, and development of the Project Area pursuant to the provisions of this Agreement and the agreements through which
SECI acquires leasehold rights within the Project Area. 
 Now therefore, the parties hereto, for the mutual promises contained
herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, do hereby contract and agree as follows: 

1. Participation Interest: By execution of this Agreement, Participant agrees to participate with a 10% working Interest ownership
(“Participation Interest”) in the exploration and development of the Project Area and agrees to pay Its Participation Interest share of all costs Incurred In the Project Area pursuant to the terms set out herein. Participant agrees that
any Interest acquired from SECI by Participant shall be specifically subject to the terms of the leases, options, farm-in options, seismic options and other agreements by which leasehold interests are acquired in the Project Area by SECI.

 2. Advanced Expenses: Upon execution of this Agreement, Participant shall remit its Participation Interest share, as calculated in
Paragraph 6 below of Six Million Dollars ($6.000.000) to be applied toward expenditures by SECI for the acquisition of leasehold within the Project Area. In a like manner, SECI will continue to request additional amounts to cover amounts it
reasonably expects to incur for ongoing leasehold acquisition expenditures within the Project Area. SECI shall invoice Participant for its share of the advance, and Participant will have fifteen (15) business days from receipt of such invoice
in which to remit payment of such invoice or notify SECI in writing of its election to withdraw from participation in the Project Area. Failure to remit this advance payment on or before the end of such fifteen-day period will be deemed an election
to withdraw from the Project Area and Participant shall not be entitled to any further leasehold acquired unless the payment is made within five (5) business days of a second and final notice of the advance payment. Participant will be entitled
to its Participation 

  
 1 

 
Interest share of any leases acquired with funds billed to and paid by Participant pursuant to this paragraph. 
 As to leasehold costs other than bonus, brokerage or option payments incurred in any month during which Participant was participating in leasehold expenditures, for any portion of that month, Participant
will be responsible for advancing its share (as set for the Paragraph 6 hereof) of such costs, regardless of the status of Participant at the time of billing. Upon Participant’s withdrawal from future acquisitions within the Project Area,
Participant will not be responsible for such leasehold costs beginning with costs incurred in the month following Participant’s withdrawal, unless such costs are attributable to leasehold previously earned by Participant. 

Participant’s participation under this Agreement is limited to Participant’s expenditure of a net $750.000.00, inclusive of advanced expenses,
for leasehold acquisition (bonus, lease, maintenance and brokerage combined). After Participant’s net expenditure of $750,000.00, Participant may withdraw from future acreage acquisitions, but may only do so in writing by giving thirty
(30) days advance written notice to SECI of Participants intent to withdraw from the acquisition of additional leasehold rights, otherwise Participant shall continue and shall be responsible for Its proportionate share of costs up lo and until
the date said written notice is given to SECI. 
 3. Participation Following Withdrawal: Should Participant elect, or deemed to have
elected to withdraw from the Project Area, Participant will not be entitled to participate in any future acquisitions of leasehold. However, Participant will be entitled to participate in any lease extension, renewal or acquisition of new leasehold
interest covering only those leases in which Participant has earned an interest hereunder, as well as participate in subsequent drilling with its Participation Interest share of those earned leases. Participant will have twenty (20) days from
receipt of a notice of lease extension, renewal or new acquisition to either: 1) participate in the acquisition as to its proportionate share; or 2) elect not to participate in the acquisition. Failure to make a written election within twenty
(20) days shall be deemed an election to not participate in the acquisition. 
 In the event Participant and SECI drill a well in a spacing
unit in which leases are owned by Participant, Participant shall be only entitled to participate in any contractual agreements for the acquisition of leasehold interest covering only those contracts entered into during the time in which Participant
is participating hereunder, as well as participate in subsequent drilling with its Participation Interest share under those agreements. If Participant elects to participate in such contracts or agreements under this paragraph, Participant shall pay
the leasehold and drilling costs associated with the provisions of the contractual agreements in accordance with the terms of this Agreement. Participant shall not be entitled to participate in any future contractual agreements for the acquisition
of leasehold Interests entered into after Participant has elected or has been deemed to withdraw from this Agreement, provided, however, if a third party gives support for the drilling of a well in which Participant is participating and no acreage
is being earned in the spacing unit for the well being drilled, then Participant shall have the right to participate in the support earned at the Participation Interest of Participant in the earning well, subject to reduction as provided for herein.

  
 2 

 4. Reconciliation of Advanced Costs: SECI will reconcile advance payments made by Participant with
actual costs incurred for lease acquisitions made pursuant to this Agreement on a semi-annual basis, if Participant withdraws or is deemed to have withdrawn from participation in the Project Area, then a reconciliation will be provided within ninety
(90) days from the effective date of the withdrawal, and any advanced funds which are not used for lease acquisition expenses for leases earned by Participant will be refunded to Participant. The Parties agree that at such time as lease
acquisitions within the Project Area are approximately ninety percent (90%) complete, SECI will no longer be required to submit requests for advance funds, and Participant will be required to participate with any future acquisitions within the
Project Area in accordance with the terms hereof. 
 5. Geophysical and Geological Data: Participant shall own in proportion to its
Participation Interest to the extent permitted under any data acquisition or license agreement and shall have access to review all geophysical and exploration data acquired by SECI within the Project Area and to the extent permitted under any data
acquisition or license agreement and upon request by Participant, Participant may obtain copies and files at their own expense, for use in its offices under terms of strict confidentiality for the benefit of Participant. Participant agrees to
participate for its proportionate interest share of costs in any new seismic data acquisition operated by SECI plus an amount equal to five percent 5% of Participant’s share of all costs. Geological and geophysical data may be acquired if at
least 65% working interest of the total participants in the Project Area, whose interest is derived from SECI, approve such acquisition program. Participant agrees to participate for its proportionate interest in any new seismic data acquisition in
which SECI is not the operator. Participant shall not be charged for SECI Internal G&A for review, acquisition and interpretation of geological or geophysical data. Upon request, SECI will review with Participant any maps or data on the Project
Area which SECI develops relative to the exploration and development of the Project Area. Any data made available to Participant shall be held by Participant on a confidential basis and not sold, traded, or disclosed to any third party either
directly or indirectly, without the express written consent of SECI, which consent shall not be unreasonably withheld but may be withheld to protect the rights of SECI, Participant or other parties participating in the acquisition of the data. Prior
to the acquisition of new seismic data under this paragraph, SECI shall proposed the program to Participant and the other parties who may be involved in the acquisition, giving the particulars of the seismic program, cost involved and the estimated
time of expenditures to acquire the data. SECI shall also, at Participants written request, furnish updates on the program and related expenses. 
 6. Participation Terms: 
 a. Land and Lease costs. Participant agrees to pay its
Participation Interest share plus an amount equal to fifty percent (50%) of Participant’s share of all costs incurred for the acquisition of the leases and lease options set out on Exhibit “B” attached hereto, including, but not
limited to lease bonus, brokerage charges, acquisition title costs and other miscellaneous costs and fees directly attributable to such leases, exclusive of drilling and division order title opinions. It being the intention of the parties that
Participant shall pay for the continuing title costs on a promoted basis, only as to those leases listed on Exhibit “B”. In the event of title failure or other reasons that prevent SECI from acquiring a lease described on Exhibit
“B”, Participant will be credited for all charges inclusive of the promote. As to those leases committed and acquired after 

  
 3 

 
February 16, 2007 and not included on Exhibit “B”, Participant agrees to pay its Participation Interest share plus an amount equal to twenty-five percent (25%) of
Participant’s share of all costs incurred for the acquisition of leases and lease options, (excluding those leases listed on Exhibit “B” hereto) including, but not limited to lease bonus, brokerage charges, title costs and other
miscellaneous costs and fees directly attributable to the Project Area exclusive of drilling and division order title opinions. Participant will pay its Participation Interest share of all delay rental payments made on leases earned by Participant
within the Project Area. 
 For the purposes herein, committed leases are those leases that have been mailed out but not acquired, with the
verbal intent of SECI to acquire, and confirmation of lessor to lease, the leasehold on specific lands in the Project Area to SECI. Further, pursuant to Paragraph 2 herein, SECI has estimated the cost of the leases on Exhibit “B” to be
$550,000 inclusive of the promote for Participant’s Participation Interest share of expenses associated with the leasehold on Exhibit “B”. The remaining monies in the amount of $50,000 are deemed to be an advance for ongoing leasing.

 b. Other Costs. Except as otherwise stated herein, Participant shall pay, on an actual cost basis, its Participation Interest share of
operating expenses incurred in the Project Area or chargeable under the applicable Joint Operating Agreement to operations for wells within the Project Area in which Participant elects to participate pursuant to the provisions of this Agreement, or
in which Participant is obligated to participate by the execution of this Agreement. 
 7. Backin: SECI hereby reserves unto itself a ten
percent (10%) backin working interest, proportionately reduced by Participant’s gross working interest in each drillsite spacing unit, after payout of each “Well Package” drilled in the Project Area. Upon payout of each Well
Package, SECI shall have the right, but not the obligation to receive from Participant a proportionate 10% backin working interest in the drillsite spacing unit or pooled unit for each well in the Well Package and the equipment appurtenant thereto.
For the purposes of this Paragraph 6, “Well Package” shall mean an accumulation of up to the first four (4) consecutive wells drilled under the terms of this Agreement in which Participant elects to participate. Should payout be
reached as to the wells in a Well Package prior to the spudding of the four wells being drilled in the Well Package, then only the wells that have spudded will be included in the Well Package at payout shall be deemed to comprise the Well Package.
It being the intention when payout occurs, only those wells in the package shall be counted for payout and new Well Packages shall be formed for subsequent four (4) well packages under the terms of this paragraph. 

“Payout” as used herein shall mean the recovery by Participant from the proceeds of the sale of production from wells in the Well Package
drilled hereunder (less applicable taxes, landowner’s royalty, overriding royalty, including the overriding royalty granted herein, and other burdens, if any), of all costs incurred by Participant in drilling, testing, completing and equipping
the wells through the tanks (including gas sales lines and all other surface equipment) lease bonus costs, seismic costs allocated to a Well Package by the mutual consent of SECI and Participant and all other costs incurred in operating said wells
during the recovery period, including the applicable promote. 

  
 4 

 Upon recovery of such costs as provided above, SECI shall notify Participant in writing of payout and in the
event, SECI elects to receive an assignment of the backin interest, the assignment shall be effective at 7:00 A.M. on the first day of the month following the month in which payout occurred. SECI and Participant agree to execute such formal
assignments or other instruments as may be reasonably necessary to evidence the terms of this provision. 
 8. Drilling Proposals: SECI
will develop a drilling program focusing on a logical development of the Project Area. SECI will generally be responsible for initiating well proposals to Participant and other parties participating; however, any party who/which owns an interest in
the lease(s) within the unit on which the well is to be proposed may recommend to SECI the drilling of a well. If SECI receives a well recommendation from Participant relative to a proposed location and SECI does not initiate a well proposal
comparable to that received from Participant for circulation to all participants within thirty (30) days of receipt of Participant’s drilling recommendation, then Participant may initiate a proposal relative to such proposed site.

 A well shall be proposed by the Parties by mailing to all working interest owners a proposal identifying the location of the well to be
drilled, the estimated spud date, the objective(s) to be tested, the geological and/or geophysical basis for the proposed well, and an Authority for Expenditure (“AFE”). Parties receiving this well proposal will have twenty (20) days
from the date of receipt to elect to either (1) participate as to their working interest in the proposed drilling venture, or (2) elect not to participate in the proposed drilling venture. Elections shall be made in writing to the party
proposing the well. Failure to timely elect shall be deemed to constitute an election not to participate in the proposed drilling venture. Any Participant electing not to participate in the well shall forfeit all rights within the drill site section
plus the 8 sections cornering or adjoining the drill site section (as to acreage located outside the boundary of an existing spacing unit on which a producing or drilling well is located, or on which a well has been proposed hereunder, and in which
Participant has elected to participate) and shall reassign to SECI, all such leasehold working interest which it owns in the drill site section plus the 8 sections cornering or adjoining the drill site section at no cost to SECI. Notwithstanding the
foregoing, however, in order for any such forfeiture to occur and be binding on the non-participating Participant, SECI must commence, or cause to be commenced and pursue with due diligence the operation set out in proposal within a period of ninety
(90) days after the date of the expiration of the election period. 
 Except for participation elections and penalties resulting from those
elections on the well which are governed by the prior paragraph, the drilling of the well and any subsequent well and well proposals on the same spacing unit shall be governed by the Joint Operating Agreement, (“JOA”), attached hereto as
Exhibit “C”, with the Contract Area for such operating agreement being the spacing unit in which the well is drilled. In the event of a conflict between the terms of this Agreement and the JOA, the terms of this Agreement shall prevail.

 9. Funding Obligation - Well Costs: As to each well in which Participant has elected to participate pursuant to this Agreement,
Participant agrees to pay its proportionate share plus an amount equal to five percent (5%) of Participant’s share of that amount of completed well costs or through a frac, whichever is the latter. Participant shall make payment to SECI
within fifteen (15) days of receipt of such notice or five (5) days prior to the projected spud date of a well, 

  
 5 

 
whichever is the latter, to assure prompt payment of the drilling contractor. In the event the drilling contractor for a well requires that certain costs be prepaid into the drilling
contractor’s escrow account prior to spud, the above said notice may require Participant and SECI to make the above said payment to an escrow account. Failure to timely make such payment or to make payment within fifteen (15) days
following receipt of written notice of failure to make such payment shall constitute, at the non-defaulting Party’s election, an election by the defaulting Party not to participate in the well. The non-defaulting Party, at its option, may
either declare the defaulting Party to be a non-participating Party in the well or require payment of the amount due from the defaulting Party based upon the election on the well previously made by the defaulting party. 

To the extent possible under any existing agreements, SECI shall offer to Participant the right to participate for its proportionate Participation
Interest in any interest forfeited to SECI under this Paragraph 9 from other participants in the spacing unit for a well. Participant’s participation shall be on the terms contained in this Agreement. 

10. Net Revenue Interest: Participant shall acquire from SECI a delivered net revenue in all leasehold acquired in the Project Area equal to the
delivered net revenue acquired by SECI, less an overriding royalty Interest of 3%. Notwithstanding the foregoing, Participant shall not receive a delivered net revenue of less than 77% unless the delivered net revenue received by SECI is less than
77%, in which case the leasehold will be assigned to Participant at the same delivered net revenue received by SECI. 
 11. Leasehold:
SECI shall be responsible for acquiring leases by direct purchase and/or pursuant to option agreements or other contractual agreements and shall, assign to Participant its Participation Interest in said lease(s) immediately after the first sales
from a producing well on the spacing unit for the leases to be assigned unless otherwise requested in writing by Participant for good cause. SECI shall be responsible for maintenance of leases within the Project Area and shall timely remit lease
payments, rental and option extensions when due, and comply with the other obligations of the lease(s) and option agreements on behalf of Participant. SECI shall not be liable for either direct or consequential damages resulting from SECI’s
failure to timely make lease payment, rental or extension payment absent a showing of gross negligence, willful misconduct or wanton disregard of responsibilities in the failure to make such payment. In the event Participant elects to participate in
the lease payment, rental or option extension, Participant agrees to bear its proportionate share of any such payment incurred by SECI in its behalf. 
 12. Billings: Except as otherwise provided above, billings attributable to Participant’s interest in leases and operated wells shall be billed and payable pursuant to the accounting provisions
of the applicable JOA. 
 13. AMI: There will be no Area of Mutual Interest for this Agreement. Both Participant and SECI agree that the
leasehold acquisition and seismic data acquisition, if any, shall be conducted within the Nesson play in Mountrail County, North Dakota. 
 14.
Term: The terms of this Agreement shall bind the Parties as to activities on the leasehold acquired pursuant to this Agreement for a period of sixty (60) months from the date of this

  
 6 

 
Agreement, or so long as an applicable JOA remains in effect within the boundaries of a spacing unit. 
 15. Notices: All notices required hereunder shall be considered given when delivered personally, or when received by facsimile or US Mail, properly addressed as follows: 

Slawson Exploration Company, Inc. 
 727 North
Waco. Suite 400 
 Wichita, KS 67203 

Phone: (316) 263-3201 
 Fax:
(316) 268-0702 
 Chandler Energy, LLC 
 475 17th Street, Suite 1210 
 Denver, CO 80202 

Phone: 303-297-2028 
 Fax: 303-297-2196

 Collis P. Chandler [Chandler@chandlerenergy.net] 
 16. Nature of Agreement: The liabilities of the parties shall be several and not joint or collective and each party shall be responsible only for its share of the costs and liabilities incurred as
provided hereunder. It is not the purpose or intention of this Agreement to create any partnership, mining partnership, or association, and neither this Agreement nor the operations hereunder shall be construed or considered as creating any such
legal relationship. 
 17. Marketing: The Operator shall be responsible for marketing 100% of the production from the wells drilled
pursuant to this Agreement, and shall account to Participant for its proportionate share thereof. Participant, however, shall have the right to take and market its production in kind, but in doing so shall also assume the obligations of disbursing
revenue to royalty and any others burden to its interest. 
 18. Operations: SECI will be the operator of the Project Area, including
drilling and production phases of spacing units. In the event multiple third party working interest owners exist in a proposed spacing unit for a well, Participant shall nominate SECI as operator for the spacing unit. If SECI shall elect not to
participate in a proposed well, then the parties in the spacing unit for the well shall elect a new operator for the drilling of the well. 

19. Miscellaneous Provisions: 
 a.
Subject to the other provisions of this Agreement, this Agreement, and all provisions hereof, shall inure to the benefit of, and be binding upon, not only the parties hereto, but their respective heirs, successors, and assigns. The leasehold rights
and contractual rights acquired herein by Participant shall not be transferred, sold or assigned without the express written consent of SECI, which shall not be unreasonably withheld. If Participant, after receiving a recorded leasehold assignment,
encumbers, hypothecates, mortgages, or pledges any or all interests so acquired from SECI, Participant nevertheless expressly agrees that SECI has a first and prior right of lien and 

  
 7 

 
offset against any revenues payable to Participant to the extent of any delinquent and unpaid expenses then and thereafter owned to SECI, and Participant expressly agrees that such first and
prior right of lien and offset will be preserved in favor of SECI in any documents executed by Participant which create an encumbrance. 
 b.
The paragraph headings of this Agreement are inserted for convenience only, and should not be considered a part of this Agreement or used in its interpretation. 
 c. The parties hereto agree that all disputes between them arising out of, or in connection with, this Agreement shall be resolved by arbitration as provided herein. This agreement to arbitrate shall be
conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association. If available, the panel used shall be selected from arbitrators having at least 10 years of oil and gas experience and employed by American Arbitration
Association and the decision of the arbitrators shall be the final and binding on all parties. All arbitration shall be undertaken pursuant to the Federal Arbitration Act, where applicable, and the decision of the arbitrators shall be enforceable in
any court of competent jurisdiction. 
 The parties involved in the arbitration agree that, within 30 days of the notice of arbitration, each
party shall submit to the arbitration panel, their respective desired outcome of the arbitration, together with supporting data that was used in developing the outcome. The arbitration panel will hold hearings during which the parties may submit
additional evidence. The arbitration panel will then be required to adopt one parties’ desired outcomes and the panel will not have discretion to alter the desired outcome selected. 
 This Agreement shall be governed by and construed in accordance with the laws of the State of Kansas. 
 d. The provisions of this Agreement are intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the
legality or validity of the remainder of this Agreement. 
 e. This Agreement constitutes the entire understanding of the parties in respect to
the subject matter hereof, in lieu of any prior agreement, and no amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing and signed by the party(ies) for whom/which it is sought to be enforced.

  
 8 

 Executed effective as of the day and year first above written. 

 

			
	Participant:
	Chandler Energy, LLC
		
	By:	 	/s/ Collis P. Chandler
		 	Collis P. Chandler
	
	Slawson Exploration Company, Inc.
		
	By:	 	/s/ Robert Todd Slawson
		 	Robert Todd Slawson

  
 9 

 EXHIBITS 

 

			
	 Exhibit
	  	 Description

		
	A	  	East Nesson Project Area
		
	B	  	Lease Schedule
		
	C	  	1) Vertical Joint Operating Agreement
		  	2) Horizontal Joint Operating Agreement

  
 7 

 

 

 East Nesson Project Area 
 Exhibit A 

 EXHIBIT ‘B’ 

NORTH STANLEY TREND PROSPECT 
 MOUNTRAIL COUNTY, ND 
  

																			
	 No.
	  	 TWP RGE
	  	Sec.	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	  	Mailout	 
	001	  	T156N-90W	  	8	  	SW 1/4SE 
1/4	  	 	655	  	  	 	*	  	  			
		  		  	17	  	Lot 1(15.00), NW 1/4NE 1/4,
S 1/2NE 1/4, SE 1/4, W 1/2	  				  				  			
	002	  	T157N-91W	  	17	  	E 1/2NE 
1/4	  	 	616.3	  	  	 	*	  	  			
		  		  	19	  	NE 1/4,
NE 1/4SE 1/4, Lot 6(24.50)	  				  				  			
		  		  	20	  	NW 1/4,
N 1/2SW 1/4, Lot 1(33.80), Lot 2(38.00)	  				  				  			
	003	  	T157N-91W	  	18	  	Lots 3(38.58) 4(38.70), E 1/2SW 
1/4	  	 	557.28	  	  	 	*	  	  			
		  	T157N-92W	  	1	  	SE 1/4	  				  				  			
		  		  	12	  	SE 1/4,
S 1/2NE 1/4	  				  				  			
	004	  	T157N-91W	  	17	  	All	  	 	1,277.74	  	  	 	*	  	  			
		  		  	18	  	E 1/2NE 1/4,
SE 1/4	  				  				  			
		  		  	19	  	Lots 1(38.81), 2(38.93), E 1/2NW 
1/4	  				  				  			
		  		  	20	  	SE 1/4	  				  				  			
		  	T157N-92W	  	24	  	E 1/2NE 
1/4	  				  				  			
	005	  	T157N-91W	  	14	  	S 1/2	  	 	1,120.00	  	  	 	*	  	  			
		  		  	15	  	S 1/2	  				  				  			
		  		  	20	  	NE 1/4	  				  				  			
		  		  	21	  	N 1/2	  				  				  			
	005A	  	T157N-91W	  	14	  	S 1/2	  				  	 	*	  	  			
		  		  	15	  	S 1/2	  				  				  			
		  		  	20	  	NE 1/4	  				  				  			
		  		  	21	  	N 1/2	  				  				  			
	006	  	T157N-91W	  	1	  	S 1/2S 
1/2	  	 	484.06	  	  	 	*	  	  			
		  		  	12	  	W 1/2E 
1/2	  				  				  			
		  		  	11	  	a 4.06 A Tract	  				  				  			
	006A	  	T157N-91W	  	1	  	S 1/2S 
1/2	  				  	 	*	  	  			
		  		  	12	  	W 1/2E 1/4,
SW 1/4	  				  				  			
	006B	  	T157N-91W	  	1	  	S 1/2S 
1/2	  				  	 	*	  	  			
		  		  	12	  	W 1/2E 1/2,
SW 1/4	  				  				  			
	007	  		  		  	Lost to competition	  				  				  			
							
	008	  		  		  	Lost to competition	  				  				  			
							
	009	  	T156N-91W	  	2	  	SW 1/4	  	 	1,120.00	  	  	 	*	  	  			
		  	T157N-90W	  	28	  	SW 1/4NE 
1/4	  				  				  			
		  	T157N-91W	  	12	  	SE 1/4SE 
1/4	  				  				  			
		  		  	13	  	N 1/2N 1/2,
S 1/2NE 1/4, SW 1/4NW 1/4, N 1/2S 1/2	  				  				  			
		  		  	14	  	N 1/2	  				  				  			
		  	158N-91W	  	20	  	S 1/2NE 
1/4	  				  				  			
		  		  	21	  	SW 1/4SW 
1/4	  				  				  			
	009A	  	157N-91W	  	12	  	SE 1/4SE 
1/4	  				  	 	*	  	  			
		  		  	13	  	N 1/2N 1/2,
S 1/2NE 1/4, SW 1/4NW 1/4, N 1/2S 1/2	  				  				  			
		  		  	14	  	N 1/2	  				  				  			
							
	010	  	T157N-90W	  	30	  	Lot 4(39.47)	  	 	999.05	  	  	 	*	  	  			
		  		  	31	  	Lot 1(39.58)	  				  				  			
		  	T157N-91W	  	23	  	NE 1/4NE 1/4,
SE 1/4, NW 1/4NE 1/4, S 1/2NE 1/4	  				  				  			
		  		  	24	  	SW 1/4NW 1/4,
W 1/2SW 1/4	  				  				  			
		  		  	25	  	SW 1/4,
W 1/2NW 1/4, S 1/2SE 1/4	  				  				  			
		  		  	26	  	NE 1/4	  				  				  			
	011	  	T157N-91W	  	21	  	SE 1/4	  	 	160	  	  	 	*	  	  			
	012	  	T152N-91W	  	9	  	Lot 8(30.92), S 1/2SE 1/4
(Southern Play)	  	 	492.61	  	  	 	*	  	  			
		  		  	10	  	Lots 5(30.88), 6(30.81), S 1/2SW 
1/4	  				  				  			
		  		  	16	  	N 1/2NE 1/4,
NW 1/4	  				  				  			
	012A	  	T152N-91W	  	9	  	S 1/2SE 1/4
(Southern Play)	  				  	 	*	  	  	 	Mailout	  
		  		  	16	  	NW 1/4,
N 1/2NE 1/4	  				  				  			

 EXHIBIT ‘B’ 

NORTH STANLEY TREND PROSPECT 
 MOUNTRAIL COUNTY, ND 
  

																			
	 No.
	  	 TWP RGE
	  	Sec.	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	  	Mailout	 
	013	  	T157N-91W	  	10	  	N 1/2SE 
1/4	  	 	720	  	  	 	*	  	  			
	013A	  	T157N-91W	  	10	  	N 1/2SE 
1/4	  				  	 	*	  	  			
		  		  	11	  	S 1/2	  				  				  			
		  		  	16	  	W 1/2	  				  				  			
	013B	  	T157N-91W	  	10	  	N 1/2SE 
1/4	  				  	 	*	  	  			
		  		  	11	  	S 1/2	  				  				  			
		  		  	16	  	W 1/2	  				  				  			
	014	  	T157N-91W	  	26	  	S 1/2	  	 	480	  	  	 	*	  	  			
		  		  	35	  	E 1/2NE 1/4,
NW 1/4SW 1/4, SW 1/4SE 1/4	  				  				  			
	015	  	T157N-90W	  	7	  	SE 1/4	  	 	160	  	  	 	*	  	  			
	016	  	T157N-90W	  	25	  	E 1/2SW 
1/4	  	 	80	  	  	 	*	  	  			
	017	  	T157N-90W	  	26	  	SE 1/4	  	 	160	  	  	 	*	  	  			
	018	  	T158N-90W	  	5	  	W 1/2SW 
1/4	  	 	80	  	  	 	*	  	  			
	019	  	T158N-90W	  	6	  	E 1/2SE 
1/4	  	 	80	  	  	 	*	  	  			
	020	  	T158N-90W	  	30	  	Lot 4(37.81)	  	 	37.81	  	  	 	*	  	  			
	021	  	T158N-90W	  	31	  	Lots 1,2,3,4, NE 1/4SW 
1/4	  	 	191.36	  	  	 	*	  	  			
	022	  	T158N-91W	  	2	  	S 1/2	  	 	320	  	  	 	*	  	  			
	023	  	T158N-91W	  	9	  	SE 1/4	  	 	160	  	  	 	*	  	  			
	024	  	T158N-91W	  	12	  	NE 1/4	  	 	160	  	  	 	*	  	  			
	025	  	T158N-91W	  	20	  	SW 1/4	  	 	160	  	  	 	*	  	  			
	026	  	T158N-91W	  	21	  	SW 1/4 less a tract of 16.75 acres	  	 	143.25	  	  	 	*	  	  			
	027	  	T158N-91W	  	22	  	E 1/2SW 1/4,
W 1/2SE 1/4	  	 	160	  	  	 	*	  	  			
	028	  	T158N-91W	  	25	  	S 1/2SE 
1/4	  	 	80	  	  	 	*	  	  			
	029	  	T158N-91W	  	26	  	S 1/2SE 1/4,
SW 1/4	  	 	240	  	  	 	*	  	  			
	030	  	T158N-91W	  	27	  	NW 1/4 less 6.25 acres	  	 	153.75	  	  	 	*	  	  			
	031	  	T158N-91W	  	28	  	NW 1/4	  	 	160	  	  	 	*	  	  			
	032	  	T158N-91W	  	29	  	S 1/2	  	 	320	  	  	 	*	  	  			
	033	  	T158N-91W	  	29	  	N 1/2	  	 	320	  	  	 	*	  	  			
	034	  	T158N-91W	  	31	  	E 1/2	  	 	320	  	  	 	*	  	  			
	035	  	T158N-91W	  	34	  	SE 1/4 less 6.35 acres	  	 	153.38	  	  	 	*	  	  			
	036	  	T158N-91W	  	35	  	N 1/2NE 1/4,
W 1/2	  	 	400	  	  	 	*	  	  			
							
	037	  	T155N-90W	  	35	  	All	  	 	934.6	  	  	 	*	  	  			
		  	T156N-90W	  	9	  	W 1/2NW 1/4,
NW 1/4SW 1/4, Lot 1(22.00)	  				  				  			
		  	T157N-91W	  	19	  	E 1/2SW 1/4,
NW 1/4SE 1/4, Lot 5(32.60)	  				  				  			
	038	  	T152N-91W	  	29	  	NW 1/4 (Southern Play)	  	 	160	  	  	 	*	  	  			
	039	  	T157N-91W	  	21	  	SW 1/4	  	 	320	  	  	 	*	  	  			
		  		  	22	  	SW 1/4NE 1/4,
SE 1/4NW 1/4, N 1/2NW 1/4	  				  				  			
	040	  	T152N-91W	  	28	  	SE 1/4 (Southern Play)	  	 	160	  	  	 	*	  	  			
	040A	  	T152N-91W	  	28	  	SE 1/4 (Southern Play)	  				  	 	*	  	  			
							
	041	  	T152N-91W	  	19	  	NE 1/4 less Outlots 2,3, SE 1/4 less Outlot 1	  	 	483.27	  	  	 	*	  	  			
		  		  	20	  	N 1/2NW 1/4,
NW 1/4NE 1/4, SW 1/4NW 1/4
(Southern)	  				  				  			
		  		  	30	  	E 1/2NE 1/4
less Outlot 1, E 1/2W 1/2NE 1/4,	  				  				  			
		  		  		  	NW 1/4NW 
1/4NE 1/4, E 1/2NW 
1/4SW 1/4NE 1/4,	  				  				  			
		  		  		  	E 1/2SW 
1/4NW 1/4NE 1/4 less Outlot 2	  				  				  			
	042	  	T152N-91W	  	21	  	SW 1/4 (Southern Play)	  	 	160	  	  	 	*	  	  			
	042A	  	T152N-91W	  	21	  	SW 1/4 (Southern Play)	  				  	 	*	  	  			
	042B	  	T152-91W	  	21	  	SW 1/4 (Southern Play)	  				  	 	*	  	  			
							
	043	  	T152N-91W	  	20	  	SE 1/4 (Southern Play)	  	 	640	  	  	 	*	  	  			
		  		  	28	  	W 1/2	  				  				  			
		  		  	29	  	NE 1/4	  				  				  			
	043A	  	T152N-91W	  	20	  	SE 1/4 (Southern Play)	  				  	 	*	  	  			
	043B	  	T152N-91W	  	28	  	NW 1/4 (Southern Play)	  				  	 	*	  	  			
	043C	  	T152N-91W	  	29	  	NE 1/4 (Southern Play)	  				  	 	*	  	  			
							
	043D	  	T152N-91W	  	28	  	NW 1/4 (Southern Play)	  				  	 	*	  	  			
	043E	  	T152N-91W	  	20	  	SE 1/4 (Southern Play)	  				  	 	*	  	  			
	043F	  	T152N-91W	  	29	  	NE 1/4 (Southern Play)	  				  	 	*	  	  			
	043G	  	T152-91W	  	20	  	SE 1/4 (Southern Play)	  				  	 	*	  	  	 	Mailout	  
		  		  	28	  	NW 1/4	  				  				  			
		  		  	29	  	NE 1/4	  				  				  			
	043H	  	T152-91W	  	20	  	SE 1/4 (Southern Play)	  				  	 	*	  	  	 	Mailout	  
		  		  	28	  	NW 1/4	  				  	 	*	  	  			
		  		  	29	  	NE 1/4	  				  	 	*	  	  			
	044	  	T152N-91W	  	7	  	Lots 7(26.18), 8(31.07), 9(31.07), 11(33.82)	  	 	496.5	  	  	 	*	  	  			
		  		  		  	SE 1/4SW 1/4,
S 1/2SE 1/4 (Southern Play)	  				  				  			
		  		  	18	  	Lots 1(33.83), 2(33.76), E 1/2NW 
1/4	  				  				  			

 EXHIBIT ‘B’ 

NORTH STANLEY TREND PROSPECT 
 MOUNTRAIL COUNTY, ND 
  

																	
	 No.
	  	 TWP RGE
	  	Sec.	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	  	Mailout
		  		  	19	  	Lots 1(33.50), 33.28), NE 1/4NW 
1/4	  				  				  	
	045	  	T152N-91W	  	20	  	SW 1/4 (Southern Play)	  	 	160	  	  	 	*	  	  	
	045A	  	T152N-91W	  	20	  	SW 1/4 (Southern Play)	  				  	 	*	  	  	
							
	046	  	T152-91W	  	21	  	SW 1/4 (Southern Play)	  	 	320	  	  	 	*	  	  	
		  		  	28	  	NE 1/4	  				  				  	
	047	  	T152-91W	  	16	  	SW 1/4 (Southern Play)	  	 	160	  	  	 	*	  	  	Mailout
	047A	  	T152-91W	  	16	  	SW 1/4 (Southern Play)	  				  	 	*	  	  	Mailout
	047B	  	T152-91W	  	16	  	SW 1/4 (Southern Play)	  				  	 	*	  	  	Mailout
	048	  	T152-91W	  	9	  	Lots 2(14.58), 3(14.54), 4(14.50), (Southern Play)	  	 	216.46	  	  	 	*	  	  	
		  		  		  	5(30.96), 6(30.94), 7(30.94), S 1/2SW 1/4	  				  				  	
	048A	  	T152-91W	  	9	  	Lots 2(14.58), 3(14.54), 4(14.50), (Southern Play)	  				  	 	*	  	  	Mailout
		  		  		  	5(30.96), 6(30.94), 7(30.94),
S 1/2SW 1/4	  				  				  	
	048B	  	T152N-91W	  	9	  	Lots 2(14.58), 3(14.54), 4(14.50), (Southern Play)	  				  	 	*	  	  	Mailout
		  		  		  	5(30.96), 6(30.94), 7(30.94),
S 1/2SW 1/4	  				  				  	
	049	  	T152-91W	  	27	  	W 1/2NW 1/4,
NE 1/4NW 1/4, W 1/2SE 1/4NW 1/4 (Southern
Play)	  	 	780	  	  	 	*	  	  	Mailout
		  		  	33	  	NE 1/4	  				  				  	
		  	T151-92W	  	7	  	SE 1/4	  				  				  	
		  		  	17	  	N 1/2	  				  				  	
	050	  	T152N-91W	  	7	  	Lots 3(14.47), 4(14.45), 5(14.43),
S 1/2NE 1/4	  	 	617.83	  	  	 	*	  	  	Mailout
		  		  	8	  	Lot 4(14.48), NW 1/4 (Southern Play)	  				  				  	
		  		  	17	  	E 1/2	  				  				  	
	050A	  	T152N-91W	  	7	  	Lots 3(14.47), 4(14.45), 5(14.43), S 1/2NE 1/4	  	 	617.83	  	  	 	*	  	  	Mailout
		  		  	8	  	Lot 4(14.48), NW 1/4 (Southern Play)	  				  				  	
		  		  	17	  	E 1/2	  				  				  	
	050B	  	T152N-91W	  	7	  	Lots 3(14.47), 4(14.45), 5(14.43),
S 1/2NE 1/4	  	 	617.83	  	  	 	*	  	  	Mailout
		  		  	8	  	Lot 4(14.48), NW 1/4	  				  				  	
		  		  	17	  	E 1/2 (Southern Play)	  				  				  	

 EXHIBIT ‘B’ (Continued) 

PARSHALL PROSPECT 

MOUNTRAIL COUNTY, ND 
  

																									
	 Lease ID
	  	 Lessor
	  	Exp. Date	 	  	TWP RGE	 	 	 Sec.
	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	 	 Mailout

	MT 002	  	Waldock, James and Daniel Waldock, both married	  	 	*	  	  	 	152N-89W	  	 	32	  	NW 1/4	  	 	1120.00	  	  	 	*	  	 	
		  	 men dealing in their sole and separate property
	  				  	 
	151N-90W
	  
	 	25 	  	 NE 1/4 
	  				  				 	
		  		  				  				 	29	  	S 1/2	  				  				 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
		  		  				  				 	33	  	NW 1/4	  				  				 	
									
	MT 002A	  	Waldock, Catherine	  	 	*	  	  	 	152N-89W	  	 	32	  	NW 1/4	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	NE 1/4, less a 2.52 acre ROW tract	  				  				 	
		  		  				  				 	29	  	SW 1/4	  				  				 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 002B
	  	Waldock, Jean	  	 	*	  	  	 	152N-89W	  	 	 32
	  	 NW 1/4
	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	NE 1/4, less a 2.52 acre ROW tract	  				  				 	
		  		  				  				 	29	  	SW 1/4	  				  				 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	MT 002C	  	Waldock, Richard	  	 	*	  	  	 	152N-89W	  	 	32	  	NW 1/4	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	NE 1/4, less a 2.52 acre ROW tract	  				  				 	
		  		  				  				 	29	  	 SW 1/4
	  				  				 	
		  		  				  				 	30	  	 SE 1/4
	  				  				 	
		  		  				  				 	32	  	 NW 1/4
	  				  				 	
									
	MT 002D	  	Bjelland, Monica	  	 	*	  	  	 	152N-89W	  	 	32	  	 NW 1/4
	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	 NE 1/4, less a 2.52 acre ROW tract
	  				  				 	
		  		  				  				 	29	  	SW 1/4	  				  				 	
		  		  				  				 	30	  	 SE 1/4
	  				  				 	
		  		  				  				 	32	  	 NW 1/4
	  				  				 	
									
	MT 002E	  	Matsch, Rita	  	 	*	  	  	 	152N-89W	  	 	32	  	 NW 1/4
	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	NE 1/4, less a 2.52 acre ROW tract	  				  				 	
		  		  				  				 	29	  	 SW 1/4
	  				  				 	
		  		  				  				 	30	  	 SE 1/4
	  				  				 	
		  		  				  				 	32	  	 NW 1/4
	  				  				 	
									
	MT 002F	  	Waldock, John	  	 	*	  	  	 	152N-89W	  	 	32	  	 NW 1/4 
	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	 NE 1/4, less a 2.52 acre ROW tract
	  				  				 	
		  		  				  				 	29	  	 SW 1/4
	  				  				 	
		  		  				  				 	30	  	 SE 1/4
	  				  				 	
		  		  				  				 	32	  	 NW 1/4
	  				  				 	
									
	MT 002G	  	Forrest, Mary E., and Harland Forrest,	  	 	*	  	  	 	152N-89W	  	 	32	  	NW 1/4	  	 	160.00	  	  	 	*	  	 	
		  	wife and husband	  				  				 		  		  				  				 	
									
	MT 002H	  	Loan, Marilyn	  	 	*	  	  	 	152N-89W	  	 	32	  	 NW 1/4 
	  	 	717.48	  	  	 	*	  	 	
		  		  				  	 	151N-90W	  	 	25	  	 NE 1/4, less a 2.52 acre ROW tract
	  				  				 	
		  		  				  				 	29	  	  
 SW 1/4
	  				  				 	
		  		  				  				 	30	  	 SE 1/4
	  				  				 	
		  		  				  				 	32	  	 NW 1/4
	  				  				 	
									
	MT 009	  	Bartelson, John O., a widower, John H. Bartleson, Jr.	  	 	*	  	  	 	151N-89W	  	 	19	  	NE 1/4	  	 	1440.28	  	  	 	*	  	 	
		  	a single man, and Janice B. Anderson aka Janice	  				  	 	151N-90W	  	 	2	  	Lot 1(40.13), Lot 2(40.15),
S 1/2NE 1/4, SE 1/4	  				  				 	
		  	K. Anderson aka Janice Anderson a married woman	  				  				 	13	  	 NW 1/4 
	  				  				 	
		  		  				  				 	14	  	All	  				  				 	
		  		  				  				 	34	  	NW 1/4	  				  				 	
									
	MT 010	  	Brendle, Ralph A. Revocable Living Trust dated	  	 	*	  	  	 	151N-91W	  	 	10	  	S 1/2NE 
1/4	  	 	1040.00	  	  	 	*	  	 	
		  	7/1/05. Ralph A. Brendle. Trustee	  				  				 	11	  	N 1/2	  				  				 	
		  		  				  				 	12	  	NE 1/4	  				  				 	
		  		  				  	 	152N-80W	  	 	 29
	  	NW 1/4	  				  				 	
		  		  				  				 	32	  	S 1/2NE 
1/4, NW 1/4, N 1/4SW 
1/4	  				  				 	
									
	MT 010A	  	Brendle, V. Gail. Revocable Living Trust dated	  	 	*	  	  	 	151N-91W	  	 	10	  	S 1/2NE 
1/4	  	 	80.00	  	  	 	*	  	 	
		  	7/1/05. V. Gail. Brendle, Trustee	  				  				 		  		  				  				 	
									
	MT 010B	  	Youlsos, Gail	  	 	*	  	  	 	151N-91W	  	 	12	  	NE 1/4	  	 	160	  	  	 	*	  	 	mailout
									
	MT 014	  	Kuehn, Jon E. a married man dealing in his sole	  	 	*	  	  	 	151N-90W	  	 	1	  	Lot 2(40.05), SE 1/4, S 1/2NE 1/4,
less a 3.80 acre tract, a 1.83 acre	  	 	420.79	  	  	 	*	  	 	
		  	and separate property	  				  				 		  	tract, a 0.13 acre tract, and a 12.13 acre tract, Lot 3(40.07)	  				  				 	
		  		  				  				 		  	less a 1.77 acre tract, Lot 4(40.13),
S 1/2NW 1/4	  				  				 	
									
	 MT 021
	  	Hoinzen, Robert, individually and as Trustee of the	  	 	*	  	  	 	152N-89W	  	 		  	The N 1/2 of the following described tract:	  	 	96.48	  	  	 	*	  	 	
		  	Margery I. Heinzon Trust dated March 8, 2008	  				  				 	5	  	S 1/2NE 1/4,
Lots 1(58.44), 2(58.62)	  				  				 	
									
	MT 021A	  	 Ackerman, Kay L.
	  	 	*	  	  	 	152N-89W	  	 		  	The N 1/2 of the following described tract:	  	 	96.48	  	  	 	*	  	 	
		  		  				  				 	5	  	S 1/2NE 1/4
Lots 1(58.44), 2(58.52)	  				  				 	
									
	MT 026	  	Braaflat, DuWayne and Dons V. Braaflat	  	 	*	  	  	 	152N-89W	  	 	2	  	Lots 3(57.35), 4(57.26), S 1/2NW 
1/4	  	 	983.4	  	  	 	*	  	 	
		  	husband and wife	  				  				 	3	  	SW 1/4	  				  				 	
		  		  				  				 	9	  	NW 1/4	  				  				 	
		  		  				  				 	10	  	NW 1/4	  				  				 	
		  		  				  				 	13	  	NE 1/4	  				  				 	
		  		  				  	 	152N-88W	  	 	6	  	Lots 8(33.47), 7(33.63), E 1/4SW 
1/4	  				  				 	
									
	MT 026A	  	Braaflat, Craig and Joy R. Braaflat	  	 	*	  	  	 	152N-89W	  	 	 2
	  	 Lots 3(57.35), 4(57.25), S 1/2NW 1/4 
	  	 	234.12	  	  	 	*	  	 	
		  	husband and wife	  				  				 	3	  	SW 1/2	  				  				 	
		  		  				  				 	8	  	NE 1/4	  				  				 	
		  		  				  				 	10	  	NW 1/4	  				  				 	
		  		  				  				 	19	  	Lot 1(34.12), NE 1/4NW 
1/4	  				  				 	
									
		  		  				  				 		  		  				  				 	
	MT 026B	  	Boe, Kenneth and Bonnie Boe, husband and wife	  	 	*	  	  	 	152N-89W	  	 	 9
	  	NW 1/4	  	 	160.00	  	  	 	*	  	 	
		  	and Shirley Engeeden, a widow (heirs of Bertha	  				  				 		  		  				  				 	
		  	Johnson, deceased)	  				  				 		  		  				  				 	
									
	MT 027	  	Duff Family Trust UAD 8/20/97, Edwin Ramend	  	 	*	  	  	 	152N-89W	  	 	3	  	Lots 1 & 2, S 1/2NE 
1/4	  	 	194.26	  	  	 	*	  	 	
		  	Duff and Lillian Emily Duff as Trustee	  				  				 		  		  				  				 	
									
	MT 027A	  	Duff, Robert C., a married man dealing in his sole	  	 	*	  	  	 	152N-89W	  	 	3	  	Lots 1 & 2, S 1/2NE 
1/4	  	 	194.28	  	  	 	*	  	 	
		  	and separate property	  				  				 		  		  				  				 	

 EXHIBIT ‘B’ (Continued) 

PARSHALL PROSPECT 

MOUNTRAIL COUNTY, ND 
  

																									
	 Lease ID
	  	 Lessor
	  	Exp. Date	 	  	TWP RGE	 	 	 Sec.
	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	 	 Mailout

									
	MT 027B	  	Duff. Dolphine Ann, Individually and as Trustee of the Richard M. Duff Revocable Trust	  	 	*	  	  	 	152N-89W	  	 	3	  	Lots 1 & 2, S 
1/2NE 1/4	  	 	184.28	  	  	 	*	  	 	
									
	MT 027C	  	Duff, Donald R. and Shirley K. Duff, husband and wife	  	 	*	  	  	 	152N-99W	  	 	3	  	Lots 1 & 2, S 1/2NE 
1/4	  	 	184.28	  	  	 	*	  	 	

 EXHIBIT ‘B’ (Continued) 

PARSHALL PROSPECT 

MOUNTRAIL COUNTY, ND 
  

 

																									
	 Lease ID
	  	 Lessor
	  	Exp. Date	 	  	TWP RGE	 	 	 Sec.
	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	 	 Mailout

	 MT 029
	  	Andes, Robert Jr. and Sharon Andes,	  	 	*	  	  	 	152N-89W	  	 	20	  	NW 1/4	  	 	160.00	  	  	 	*	  	 	
		  	husband and wife	  				  				 		  		  				  				 	
									
	 MT 030
	  	 Nelson, Wallace L and Mary Ann Nelson
	  	 	*	  	  	 	151N-90W	  	 	27	  	SE 1/4	  	 	639.52	  	  	 	*	  	 	
		  	husband and wife	  				  	 
	151N-89W
	  
	 	 4
	  	SW 1/4	  				  				 	
		  		  				  				 	5	  	Lots 3(39.90), 4(39.88), S 1/2NW 
1/4	  				  				 	
		  		  				  				 	8	  	Lots 1(39.86), 2(39.90), S 1/2NE 
1/4	  				  				 	
									
	 MT 031
	  	Nelson, Wallace L And Mary Ann Nelson	  	 	*	  	  	 	152N-89W	  	 	1	  	Lots 1(57.81), 2(57.75), S 1/2NE 
1/4,SE 1/4	  	 	570.94	  	  	 	*	  	 	
		  	husband and wife	  				  				 	12	  	Lots 1(13.92), 2(13.82), NE 1/4, Lots 3(13.82), 4(13.82)	  				  				 	
									
	 MT 032
	  	Nelson, Wallace L. Life Estate	  	 	*	  	  	 	152N-89W	  	 	14	  	NE 1/4	  	 	180.00	  	  	 	*	  	 	
									
	 MT 033
	  	Williamson, Wade F. Aka Wade F. Williamson Jr.	  	 	*	  	  	 	151N-89W	  	 	6	  	Lots 3(39.94), 4(34.89), 5(34.78), 6(34.62), 7(34.47)	  	 	925.23	  	  	 	*	  	 	
		  	and Cynthia J. Williamson husband and wife	  				  				 		  	SE 1/4NW 1/4,
E 1/2SW 1/4	  				  				 	
		  	Helen H. WiIliamson Res, Trust	  				  				 	7	  	Lots 1(34.46), 2(34.80), less a 2.51 A Tr., E 1/2NW 1/4	  				  				 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
		  		  				  				 	33	  	NW 1/4	  				  				 	
									
	 MT 033B
	  	Anderson, Carol L. and Edward D. Andersen aka	  	 	*	  	  	 	151N-89W	  	 	6	  	Lots 3(39.94), 4(34.89),
5(34.78).SE 1/4NW 1/4	  	 	149.61	  	  	 	*	  	 	
		  	Edward Anderson, wife and husband	  				  				 		  		  				  				 	
									
	 MT 033C
	  	Vorwerk, James A.	  	 	*	  	  	 	151N-89W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	459.09	  	  	 	*	  	 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 033D
	  	Vorwark, Nancy	  	 	*	  	  	 	151N-89W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	469.09	  	  	 	*	  	 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 033E
	  	Larson, Lots	  	 	*	  	  	 	151N-89W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	469.09	  	  	 	*	  	 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 033F
	  	Schroeder, Dorothv J.	  	 	*	  	  	 	151N-89W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	469.09	  	  	 	*	  	 	
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
		  		  				  				 		  		  				  				 	
									
	 MT 033G
	  	Vorwerk, Harold G,	  	 	*	  	  	 	151N-89W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	469.09	  	  	 	*	  	 	
		  		  				  				 	  
 30
	  	  
 SE 1/4
	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 033H
	  	Vorwerk, Wesley	  	 	*	  	  	 	151N-88W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	469.09	  	  	 	*	  	 	mailout
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 033I
	  	Zialicke, Esther	  	 	*	  	  	 	151N-89W	  	 	6	  	Lot 6(34.62), 7(34.47), E 1/2SW 
1/4	  	 	469.09	  	  	 	*	  	 	mailout
		  		  				  				 	30	  	SE 1/4	  				  				 	
		  		  				  				 	32	  	NW 1/4	  				  				 	
									
	 MT 034
	  	Braaflat Craig and Joy R. Braaflat husband and wife	  	 	*	  	  	 	152N-89W	  	 	18	  	E 1/2SW 
1/4	  	 	80.00	  	  	 	*	  	 	
									
	 MT 035
	  	Waldock, Benedict Joseph, a widower	  	 	*	  	  	 	152N-89W	  	 	32	  	NW 1/4	  	 	320.00	  	  	 	*	  	 	
		  		  				  	 	151N-80W	  	 	20	  	SE 1/4	  				  				 	
									
	 MT 035A
	  	Schoepf, Valene, formerly Valene Waldock and	  	 	*	  	  	 	152N-89W	  	 	32	  	NW 1/4	  	 	160.00	  	  	 	*	  	 	
		  	Michael Schoepf, wife and husband	  				  				 		  		  				  				 	
									
	 MT 038
	  	Bergemann, William G. as A-in-F for Olive	  	 	*	  	  	 	151N-89W	  	 	6	  	SE 1/4	  	 	160.00	  	  	 	*	  	 	
		  	Bergermann, a widow	  				  				 		  		  				  				 	
									
	 MT 038
	  	Risen Limited Partnership, a ND Limited Partnership	  	 	*	  	  	 	152N-89W	  	 	30	  	Lots 1(34.28), 2(34.33), E 1/2NW 1/4,
NE 1/4	  	 	308.81	  	  	 	*	  	 	
									
	 MT 039
	  	WaLdock, Tom and Joyce Waldock 	  	 	*	  	  	 	151N-91W	  	 	23	  	E 1/2W 1/2NW 1/4,SE 1/4	  	 	1152.10	  	  	 	*	  	 	
		  		  				  				 	24	  	NE 1/4,E 
1/2NW 1/4,SW 1/4	  				  				 	
		  		  				  	 	151N-90W	  	 	19	  	Lots 1(35.88), 2(36.12), E 1/2NW,
NW 1/4SE 1/4, NE 1/4, E 1/2SE 1/4, NE 1/4	  				  				 	
		  		  				  				 	20	  	W 1/2SE 
1/4	  				  				 	
									
	 MT 039A
	  	Illene Msek	  	 	*	  	  	 	151N-91W	  	 	13	  	SE 1/4,
E 1/2SW 1/4	  				  	 	*	  	 	
		  		  				  				 	23	  	E 1/2W 1/2,
E 1/2W 1/2NW 1/4, SE 1/4	  				  				 	
		  		  				  				 	24	  	E 1/2NW 1/4,
SW 1/4	  				  				 	
									
	 MT 040
	  	Waldock, Joe	  	 	*	  	  	 	151N-91W	  	 	12	  	NW 1/4	  	 	1497.58	  	  	 	*	  	 	
		  		  				  				 	13	  	E 1/4,
E 1/2SW 1/4	  				  				 	
		  		  				  				 	14	  	 W 1/2NE 1/4,
SE 1/4
	  				  				 	
		  		  				  				 	23	  	 E 1/2W 1/2
	  				  				 	
		  		  				  	 	151N-90W	  	 	 18
	  	 NW 1/4
	  				  				 	
		  		  				  				 	18	  	Lot 3(35.91), 4(35.92), E 1/2SW, 
1/4	  				  				 	
		  		  				  				 	19	  	Lot 3(38.24)	  				  				 	
		  		  				  				 	20	  	W 1/2SE 
1/4	  				  				 	
		  		  				  				 	29	  	NE 1/4	  				  				 	
									
	 MT 041
	  	Waldock, Benedict	  	 	*	  	  	 	151N-91W	  	 	13	  	NE 1/4	  	 	160	  	  	 	*	  	 	

 EXHIBIT ‘B’ (Continued) 

SECI DIRECT LEASES 

MOUNTRAIL COUNTY, ND 
  

																			
	 No.
	  	 TWP RGE
	  	 Sec.
	  	 Legal Description
	  	Gross
Acres	 	  	Net
Acres	 	  	Mailout	 
		  	 T153N-88W
	  	9	  	SE/4	  	 	160	  	  	 	*	  	  			

 [Confidential treatment has been requested with respect to the omitted portions of this exhibit. This copy omits
information subject to a confidentiality request filed with the Securities and Exchange Commission. Omissions are designated with the character [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission along with the request for confidential treatment.]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]