Document:

exv10w13

Exhibit 10.13

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR
ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY
BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S
LICENSE NUMBER.

ASSIGNMENT OF ROYALTY INTEREST
EFFECTIVE AUGUST 1, 2009

	 	 	 	 	 
	THE STATE OF TEXAS

	 	§	 	 
	 

	 	§
	 	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF MOORE

	 	§	 	 

     THAT,
the undersigned, KEVIN AUDRAIN AND LORI AUDRAIN, husband and wife, doing business as
DRAIN OIL COMPANY, whose address is #3 Texoma Boulevard, Fritch, Texas 79036 (hereinafter called
“Assignor”), for and in consideration of Ten Dollars ($10.00) and other valuable consideration to
it in hand paid by NYTEX PETROLEUM, INC., a Delaware Corporation, with offices at 12222 Merit
Drive, Suite 1850, Dallas, Texas 75251 (hereinafter called “Assignee”), do hereby TRANSFER,
ASSIGN and CONVEY unto Assignee:

     2.34375% royalty interest (the “royalty interest”) in and to all the oil, gas, and other
minerals that may be produced, saved and marketed under and by virtue of the Oil and Gas Leases
(the “Leases”) described in the attached Exhibit “A”, and subject to the terms and conditions
contained herein.

     The royalty interest conveyed with respect to the Leases are subject to the terms and
provisions of the Leases, any present or future amendments or modifications thereto, and to any
transfer, assignment, contract or agreement to which said Leases may be subject as of the date
hereof.

The royalty interest assigned herein shall be free and clear of all costs and expenses whatsoever
of exploring, developing and operating the lands covered by the Leases, except ad valorem taxes
levied upon such royalty interest or the production attributable thereto, and except costs of
treating, compressing, gathering, transporting and dehydrating such production or rendering the
same merchantable.

     The royalty interest in said leases as herein conveyed to Assignee shall be subject to all
enforceable contracts affecting the said leases and wells, including agreements for the sale or
purchase of oil, gas and other hydrocarbons; processing agreements; division orders; unit
agreements; operating agreements; and other contracts and agreements arising out of, connected
with, or attributable to production from the said leases and wells.

     This
Assignment of Royalty Interest is subject to the terms and provisions of that certain
unrecorded letter agreement dated June 5, 2009, between Drain Oil Company and NYTEX Petroleum,
Inc., as heretofore amended and supplemented. Except as expressly provided in said unrecorded
letter agreement, operations on the leases covered hereby, and the extent and duration thereof,
shall be within the judgment and discretion of Assignee, its successors and assigns. It is
further agreed that the Assignor and Assignee will execute such further assurances as may be
requisite for the full and complete enjoyment of the royalty interest herein conveyed.

     All ad valorem taxes levied against said leases and wells shall be prorated and paid by the
parties hereto as of the Effective Date of this assignment. Assignee will be liable for and
agrees to pay all sales taxes or recording fees due as a result of this Assignment of Royalty
Interest.

     All covenants and agreements in this Assignment of Royalty Interest shall be binding and
inure to the benefit of the heirs, successors, and assigns of Assignor and Assignee; are covenants
running with the land; and are effective as stated, whether or not the covenants and agreements
are memorialized in assignments and other conveyances executed and delivered by the parties and
their respective heirs, successors, and assigns from time to time.

 

 

     This Assignment of Royalty Interest is executed and delivered to Assignee WITHOUT WARRANTY
OF TITLE EITHER EXPRESS OR IMPLIED, EXCEPT BY, THROUGH AND UNDER ASSIGNOR, BUT NOT OTHERWISE.

     This Assignment of Royalty Interest shall be effective, for all purposes as of 7:00 o’clock
a.m., August 1, 2009.

     EXECUTED by Assignor and accepted by Assignee on the dates shown below in their respective
acknowledgments, but to be effective as stated above. To facilitate the recording of this
instrument in the appropriate counties, this instrument may be executed in one or more multiple
counterparts, each of which shall be deemed an original document, and all of which when taken
together shall constitute a single instrument.

	 	 	 	 	 
	 	ASSIGNOR:

 	 
	 	/s/ Kevin Audrain
 	 
	 	Kevin Audrain d/b/a Drain Oil Company 	 
	 
	 	 	 
	 	/s/ Lori Audrain
 	 
	 	Lori Audrain d/b/a Drain Oil Company 	 
	 
	 	ASSIGNEE:

NYTEX PETROLEUM, INC.

 	 
	 	By:  	/s/ Jason Lacewell
 	 
	 	 	Jason Lacewell 	 
	 	 	Vice President 	 
	 

ACKNOWLEDGMENTS

	 	 	 
	THE STATE OF TEXAS

	 	§
	COUNTY OF MOORE

	 	§

     This instrument was acknowledged before me on 1 day of Sept, 2009, by KEVIN
AUDRAIN and LORI AUDRAIN.

MY COMMISSION EXPIRES:

	 	 	 	 	 
	 	 	 
	 	/s/ Carolyn Mathews
 	 
	 	Notary Public in and for the State of Texas 	 
	 

	 	 	 
	THE STATE OF TEXAS

	 	§
	COUNTY OF DALLAS

	 	§

     This instrument was acknowledged before me on this 24th day of August, 2009, by JASON
LACEWELL, as Vice President of NYTEX PETROLEUM, INC., a Delaware Corporation.

MY COMMISSION EXPIRES: 03-04-2012

	 	 	 	 	 
	 	 	 
	 	/s/ Chelsea Heller Gehring
 	 
	 	Notary Public in and for the State of Texas 	 
	 

2

 

EXHIBIT “A”

Attached to and made a part of Assignment of Royalty Interest
effective August 1, 2009, from DRAIN OIL COMPANY, Assignor, to NYTEX
PETROLEUM, INC., Assignee

     Oil, Gas and Mineral Lease dated July 23, 1971, from Gladys Smith et al, as Lessors, to
Richome Oil and Gas Company, as Lessee, recorded in Volume 232, Page 297, of the Deed Records of
Moore County, Texas and covering the Southwest quarter of Section No. 32, Block PMC, EL&RR Co.
Survey, Moore County, Texas

     Oil,
Gas and Mineral Lease dated July 23, 1971, from A. E. Herrmann Corporation, as Lessor, to
Richome Oil and Gas Company, as Lessee, recorded in Volume 232, Page 294, of the Deed Records of
Moore County, Texas and covering the Southwest quarter of Section No. 32, Block PMC, EL&RR Co.
Survey, Moore County, Texas

3exv10w14

			
	
	 	Exhibit 10.14
	 	 	 
	September 15th, 2009
	 	CONFIDENTIAL MEMO

Mr. Monty Vogler

Bluff Creek Petroleum LLC

4625 North 1st Street

Abilene, Texas 79603

	Re: 	 	Purchase Offer — Letter of Intent w/ Oil Price Clause

Dear Mr. Vogler:

NYTEX Petroleum, Inc. (NYTEX) is pleased to offer to purchase 100% working interest in
certain oil and gas leases of Bluff Creek Petroleum LLC (Bluff Creek) consisting of
eight producing oil leases and three undeveloped leases in Jones County, Texas. The
terms and conditions of the offer are as follows:

	 	1.	 	The list of Bluff Creek oil and gas leases to be purchased
are 100% working interest in the leasehold acreage in total and existing
production from all the wellbores (producing & non-producing) in:

	 	 	 	 	 
	 	 	RRC
	 	 	LEASE
	BLUFF CREEK LEASE NAME	 	ID
	HALL, A.D.
	 	 	20284	 
	KISER
	 	 	29606	 
	KISER
	 	 	30121	 
	KISER “A”
	 	 	29459	 
	KISER “B”
	 	 	30029	 
	REYNOLDS
	 	 	29182	 
	REYNOLDS, ELBERT
	 	 	22812	 
	RIGGS
	 	 	29748	 

	 	•	 	The three undeveloped, undrilled leases included in
this purchase offer are the R. Doty, B.J. Doty and Markham leases.

	 	2.	 	NYTEX purchases 100% ownership in all lease and well
equipment, tank batteries,
SWD pumps and equipment — any and all lease and well equipment in these 11
total leases.
	 
	 	3.	 	At closing, Bluff Creek will transfer operations making NYTEX
the ‘Operator of
Record’ in actively managing the production and project development plans.
Such transference of operations on the subject leases to NYTEX will be effectuated
by Bluff Creek and NYTEX executing Texas Railroad P-4 change of operatorship forms.

Dallas office: 12222 Merit Drive, Suite 1850  •  Dallas. Texas 75251  •  Phone: 972•770•4700•  Fax: 972•770• 4701
 

N.Y. office N. Y. Mercantile Bldg.  •  One North End Ave. Suite 1301  •  N.Y., N.Y. 10282  •  Phone: 212•766•5995 • Fax: 212•766•2424

 

	 	4.	 	At closing NYTEX will pay a cash payment to Bluff Creek Petroleum LLC of
$5,000,000.
	 
	 	5.	 	Within fifteen business days of both parties signing this Purchase Offer,
and upon
NYTEX’s confirmation of lease operating costs for the leases to be acquired
averaging $10,000 per month or less, NYTEX will pay a $50,000 cash payment as
earnest money to Bluff Creek which shall count toward the $5,000,000 total purchase
price. Such fifteen day time period, includes five business days in which Bluff Creek
makes available to NYTEX the relevant data for NYTEX to verify historical revenues
and lease operating expenses for the leases to be acquired, and if the lease operating
costs exceed an average of $10,000 per month, NYTEX will revise its offer price
accordingly.
	 
	 	6.	 	Within ninety days of both parties signing this Purchase Offer, NYTEX
will complete
its full due diligence for the leasehold, wellbores and equipment to be acquired
herein. If for some reason during the due diligence process an incurable title defect
is
discovered after NYTEX has delivered the earnest money described in Paragraph 5
above, Bluff Creek will return the earnest money to NYTEX.
	 
	 	7.	 	OIL PRICE VARIANCE CLAUSE — This Letter of Intent is tied to a given
NYMEX
(Plains Marketing, LP) WTI spot price as a basis ($64.75 on 9/14/09) — if there is any
variance over 10% plus or minus this basis price, then either Bluff Creek or NYTEX
has the option & right to re-evaluate this Contract offer price for the 11 oil leases.
This clause protects both parties from excessive price volatility during the term of
this
letter agreement and during the due diligence process.
	 
	 	8.	 	Upon mutual agreement and execution by both parties of this Purchase
Offer,
NYTEX will begin a due diligence period during which Bluff Creek will make
available its accounting books, production and workover records, title opinions and
leases to NYTEX at mutually agreeable times at the offices of Bluff Creek
Petroleum..
	 
	 	9.	 	During the due diligence period, a mutually agreeable Purchase and Sale
Agreement
will be prepared for execution on or before the closing date of December
15th,
2009.
	 
	 	10.	 	The Purchase and Sale Agreement that will be prepared shall provide that
Monty G.
Vogler shall have the first right of refusal to purchase the leases should NYTEX, its
successors or assigns ever elect to offer the leases for sale at any time in the
future, so
long as any of the leases have an open wellbore.
	 
	 	11.	 	NYTEX, its successors or assigns agree to provide Monty G. Vogler in a
timely
manner, with a copy of all logs, well site analysis, formation sample description and
perforation intervals pertaining to all new wells drilled on the leases.

NYTEX plans to work out a mutually agreeable plan where Bluff Creek is contracted for certain
administrative services such as invoicing, production reporting, RRC filing reporting and

 

permitting. Contract period will be at least 90 days during the initial ‘transition’ period, and
can be extended to a longer term as agreed upon by both parties.

NYTEX would also like to contract Mr. Vogler for part time consulting services (operations,
production maintenance) at a mutually agreeable consulting rate for the 90 day initial
‘transition’ period, and can be extended to a longer term as agreed upon by both
parties.

If the terms and conditions of this Purchase Offer are acceptable to you, please so indicate by
signing in the space provided below.

	 	 	 	 	 
	Respectfully submitted,

 	 	 
	/s/ Michael Galvis
 	 	 
	NYTEX Petroleum, Inc. 	 	 
	Michael Galvis

President and CEO 	 	 
	 

	 	 	 	 	 
	AGREED TO AND ACCEPTED BY: 	/s/ Monty Vogler
 	 	 
	 	Monty Vogler, Bluff Creek Petroleum LLC 	 	 
	 	 	 
	 

Date: September 15th                      ,2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]