Document:

EX-10.3

 Exhibit 10.3 

EXCHANGE AGREEMENT 

dated as of January 3, 2022 

by and among 
 ABRAXAS
PETROLEUM CORPORATION 
 and 

AG ENERGY FUNDING, LLC 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	Article I	  

	
	PURCHASE; CLOSING	  

			
	 Section 1.1
	 	Exchange; and Subsequent Funding	  	 	2	 
	 Section 1.2
	 	Closing	  	 	2	 
	 Section 1.3
	 	Closing Conditions	  	 	3	 
	
	Article II	  

	
	REPRESENTATIONS AND WARRANTIES	  

			
	 Section 2.1
	 	Representations and Warranties of the Company	  	 	5	 
	 Section 2.2
	 	Representations and Warranties of the Purchaser	  	 	17	 
	
	Article III	  

	
	COVENANTS	  

			
	 Section 3.1
	 	Filings; Other Actions	  	 	21	 
	 Section 3.2
	 	Conduct of the Business	  	 	21	 
	 Section 3.3
	 	Negative Covenants	  	 	22	 
	 Section 3.4
	 	Corporate Actions - Certificate	  	 	24	 
	 Section 3.5
	 	State Securities Laws	  	 	24	 
	 Section 3.6
	 	PSA; First Lien Release Agreement	  	 	24	 
	 Section 3.7
	 	Takeover Statutes	  	 	24	 
	 Section 3.8
	 	Board Size	  	 	24	 
	 Section 3.9
	 	Management Incentive Program	  	 	24	 
	
	Article IV	  

	
	ADDITIONAL AGREEMENTS	  

			
	 Section 4.1
	 	Legend	  	 	25	 
	 Section 4.2
	 	Tax Matters	  	 	25	 
	
	Article V	  

	
	MISCELLANEOUS	  

			
	 Section 5.1
	 	Survival; Limitations on Liability	  	 	26	 
	 Section 5.2
	 	Expenses	  	 	26	 
	 Section 5.3
	 	Amendment; Waiver	  	 	26	 
	 Section 5.4
	 	Counterparts	  	 	26	 

							
	 Section 5.5
	 	Governing Law; Submission to Jurisdiction	  	 	27	 
	 Section 5.6
	 	WAIVER OF JURY TRIAL	  	 	27	 
	 Section 5.7
	 	Notices	  	 	27	 
	 Section 5.8
	 	Entire Agreement	  	 	28	 
	 Section 5.9
	 	Assignment	  	 	28	 
	 Section 5.10
	 	Interpretation; Other Definitions	  	 	29	 
	 Section 5.11
	 	Interpretation; Captions	  	 	33	 
	 Section 5.12
	 	Severability	  	 	33	 
	 Section 5.13
	 	No Third Party Beneficiaries	  	 	33	 
	 Section 5.14
	 	Public Announcements	  	 	33	 
	 Section 5.15
	 	Specific Performance	  	 	34	 
	 Section 5.16
	 	Termination	  	 	34	 
	 Section 5.17
	 	Effects of Termination	  	 	35	 
	 Section 5.18
	 	Non-Recourse	  	 	35	 

  

			
	Schedule 1:	  	Purchaser Claims
	Schedule 2:	  	Resignations
	Schedule 3:	  	Nominees
	Exhibit A:	  	Form of Series A Preferred Stock Certificate of Designations
	Exhibit B:	  	Form of Assignment and Assumption Agreement

  
 ii 

 INDEX OF DEFINED TERMS 

 

			
	 Term
	  	 Location of Definition

	Affiliate	  	5.10(k)
	Agreement	  	Preamble
	Assignment and Assumption Agreement	  	1.2(b)(ii)
	Articles of Incorporation	  	2.1(c)(ii)
	Anti-Money Laundering Laws	  	2.1(z)
	Bakken Sale	  	Recitals
	Beneficial Ownership/Beneficially Own	  	5.10(l)
	Board of Directors	  	1.3(a)
	business day	  	5.10(i)
	Bylaws	  	2.1(c)(ii)
	Capitalization Date	  	2.1(a)(ii)
	Certificate	  	Recitals
	Claims	  	Recitals
	Closing	  	1.2(a)
	Closing Date	  	1.2(a)
	Code	  	2.1(x)
	Common Stock	  	2.1(b)(i)
	Company	  	Preamble
	Company Material Adverse Effect	  	5.10(m)
	Company Stock Awards	  	2.1(b)(i)
	Company Subsidiary	  	2.1(a)(ii)
	control/controlled by/under common control with	  	5.10(k)
	Environmental Laws	  	2.1(w)
	Equity Securities	  	5.10(n)
	ERISA	  	2.1(x)
	ERISA-Subject Plan	  	2.1(x)
	Exchange	  	1.1
	Exchange Act	  	2.1(f)
	Expense Reimbursement Amount	  	5.2
	First Lien Release Agreement	  	Recitals
	GAAP	  	2.1(f)(iii)
	Governmental Entity	  	2.1(c)(iv)
	Hazardous Substance	  	5.10(q)
	Investment Company Act	  	2.1(o)
	Knowledge of the Company	  	5.10(r)
	Law	  	5.10(s)
	Lien	  	5.10(t)
	Lime Rock	  	Recitals
	Multiemployer Plan	  	2.1(x)
	Non-Recourse Party	  	5.18
	Organizational Documents	  	2.1(c)(ii)
	Party or Parties	  	Preamble

  
 iii 

			
	 Term
	  	 Location of Definition

	Term	  	Location of Definition
	Permits	  	2.1(m)
	Person	  	5.10(j)
	Plan	  	2.1(b)(i)
	Preferred Stock	  	Recitals
	PSA	  	Recitals
	Purchaser	  	Preamble
	Representatives	  	5.10(v)
	Reserve Report	  	2.1(s)
	Sanctions	  	2.1(bb)(i)
	SEC	  	2.1(f)(i)
	SEC Documents	  	2.1(f)(i)
	Second Lien Forbearance	  	Recitals
	Securities Act	  	2.1(d)
	Seller	  	Recitals
	Stock Consideration	  	1.1(a)
	Subsidiary	  	2.1(a)(ii)
	Tax or Taxes	  	5.10(z)
	Tax Return	  	5.10(aa)
	Transaction Documents	  	5.10(bb)
	Transfer	  	5.10(cc)
	Treasury Regulation	  	5.10(cc)
	Voting Debt	  	2.1(b)(ii)

  
 iv 

 EXCHANGE AGREEMENT, dated as of January 3, 2022
(this “Agreement”), by and among Abraxas Petroleum Corporation, a Nevada corporation (the “Company”), and AG Energy Funding, LLC, a Delaware limited liability company
(the “Purchaser” and each of the Company and the Purchaser referred to herein as a “Party” and together, the “Parties”). 

RECITALS: 
 WHEREAS, the
Company has entered into a Purchase and Sale Agreement (as it may be amended or supplemented from time to time, the “PSA” and, the transactions contemplated thereby, the “Bakken Sale”), by
and among the Company (as the “Seller” thereto), Lime Rock Resources V, L.P., a Delaware limited partnership (“Lime Rock”), pursuant to which the Company will sell to and Lime Rock will purchase
certain Assets (as defined in the PSA) relating to the Company’s business in the Bakken Formation in North Dakota; 
 WHEREAS, the
Company has entered into (a) that certain Settlement and Lien Release Agreement, dated as of the date hereof, by and among the Company, the lenders and the administrative agent under the First Lien Debt Agreement (as defined below) and certain
hedge contract counterparties pursuant to which the administrative agent has agreed to release its liens and security interests arising under the First Lien Debt Agreement and (ii) the lenders and hedge counterparties under the First Lien Debt
Agreement and the related secured hedge contracts have agreed to terminate the First Lien Debt Agreement and related loan documents and release any remaining obligations upon payment of the Release Amount (as defined in such Settlement and Lien
Release Agreement) (the “First Lien Release Agreement”) and (b) that certain Amendment No. 2 to Forbearance Agreement, dated as of the date hereof, with the lenders and administrative agent under the Second Lien
Debt Agreement (as defined below) (such Amendment, together with Forbearance Agreement to which it relates, the “Second Lien Forbearance”). 

WHEREAS, in connection with and pursuant to this Agreement, the Seller will issue and sell Series A Preferred Stock of the Seller; 

WHEREAS, in connection with the completion of the Bakken Sale and the Exchange (as defined below), the Company proposes to issue to the
Purchaser shares of its preferred stock, par value $0.01 per share, designated as “Series A Preferred Stock” (the “Preferred Stock”), having the terms set forth in the Certificate of Designation
(the “Certificate”) in the form attached to this Agreement as Exhibit A, in exchange for the transfer to the Company by Purchaser of all its claims outstanding under the Second Lien Debt (the
“Claims”), which such claims will thereafter automatically be deemed paid and satisfied in full, discharged, terminated, released and cancelled for all purposes under the Second Lien Debt Agreement, subject to the terms and
conditions set forth in this Agreement; 
 WHEREAS, capitalized terms used in this Agreement have the meanings set forth in
Section 5.10 or such other Section indicated in the preceding Index of Defined Terms. 
 NOW, THEREFORE, in
consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the Parties agree as follows: 

 ARTICLE I 

PURCHASE; CLOSING 

Section 1.1 Exchange; and Subsequent Funding. 

(a) Upon the terms and conditions set forth herein, at the Closing, the Purchaser shall transfer to the Company, and the Company shall acquire
from the Purchaser, all of the Claims held by the Purchaser in exchange for the issuance by the Company of 685,505 shares of Series A Preferred Stock (the “Stock Consideration”) to the Purchaser (the
“Exchange”), and effective upon such Exchange, all of the Claims in favor of the Purchaser shall automatically be deemed paid and satisfied in full, discharged, terminated, released and cancelled for all purposes under the
Second Lien Credit Agreement. Subject to the other terms and conditions of this Agreement, the Exchange will occur immediately following (a) the consummation of the transactions contemplated by the PSA and (b) the consummation of the
transactions contemplated by the First Lien Release Agreement. 
 (b) At any time following the Closing, the Purchaser may (in its sole
discretion), but only with the approval of the Company’s disinterested directors, make a cash contribution to the Company in an aggregate amount not to exceed $12,000,000.00, and in exchange therefor the Tier One Preference Amount (as defined
in the Certificate) of the shares of Preferred Stock held by Purchaser will be increased as provided in the Certificate. 
 Section 1.2
Closing. 
 (a) Subject to the terms and conditions hereof, the closing of the Exchange (the “Closing”)
shall be held at the offices of Simpson Thacher & Bartlett LLP, 600 Travis Street, Suite 5400, Houston, Texas 77002, at 8:00 a.m. Houston time on the date of the closing of the transactions contemplated by the PSA, or at such other
time and place as the Company and the Purchaser agree (the “Closing Date”). 
 (b)
In addition and subject to the satisfaction or waiver on the Closing Date of the conditions to the Closing in Section 1.3, at the Closing: 

(i) the Company will (A) cause the number of shares of Stock Consideration to be registered in the name of Purchaser (or
its Affiliate designee) with the transfer agent of the Company in book-entry form and (B) deliver to the Purchaser all other documents, instruments and writings required to be delivered by the Company to
the Purchaser pursuant to this Agreement or otherwise required in connection herewith; and 
 (ii) the Purchaser will
(A) deliver to the Company an Assignment and Assumption Agreement, in the form attached hereto as Exhibit B (the “Assignment and Assumption Agreement”), duly executed by Purchaser, pursuant to which Purchaser will
assign the Claims to the Company at the Closing, (B) fully, completely and irrevocably release all of its Liens, claims and other encumbrances on the assets of the Company that relate to the Second Lien Debt and (B) deliver to the Company
all other documents, instruments and writings required to be delivered by the Purchaser to the Company pursuant to this Agreement. 
  

  
 2 

 Section 1.3 Closing Conditions. 

(a) The obligations of the Purchaser, on the one hand, and the Company, on the other hand, to effect the Closing is subject to the satisfaction
or, to the extent permitted by applicable Law, waiver by the Purchaser and the Company (acting at the direction of the board of directors of the Company (the “Board of Directors”)) at or prior to the Closing of the following
conditions: 
 (i) no temporary restraining order, preliminary or permanent injunction or other judgment or order issued by
any Governmental Entity and no Law shall be in effect restraining, enjoining, making illegal or otherwise prohibiting the consummation of the transactions contemplated by this Agreement or the other Transaction Documents; and 

(ii) the closing of the transactions contemplated by the PSA and the First Lien Release Agreement shall have occurred in
accordance with their terms (subject to any amendments, supplements, waivers or other modifications thereto that are permitted by Section 3.6(c) or otherwise consented to in writing by the Purchaser) (provided, however, that a Party may
not rely on the failure of any such closing to have occurred as a condition to its obligations hereunder if such closing shall not have occurred due to the breach by such Party (or any of its Affiliates) of its obligations under the PSA, the First
Lien Release Agreement or the Second Lien Forbearance, as applicable). 
 (b) The obligations of the Purchaser to effect the Closing are also
subject to the satisfaction or, to the extent permitted by applicable Law, waiver by the Purchaser at or prior to the Closing of the following conditions: 

(i) (A) the representations and warranties of the Company set forth in Section 2.1 hereof (other
than Sections 2.1(a), 2.1(b), 2.1(c), 2.1(e), 2.1(j) and 2.1(q)) shall be true and correct in all respects (without regard to any materiality or Company Material Adverse Effect qualifiers
set forth therein) as of the date of this Agreement and as of the Closing Date as though made on and as of such date (except to the extent that such representation or warranty speaks to an earlier date, in which case each of such earlier date)
except where the failure of such representations and warranties to be so true and correct would not, individually or in the aggregate, have a Company Material Adverse Effect, and (B) the representations and warranties of the Company set forth
in Sections 2.1(a), 2.1(b), 2.1(c), 2.1(e), 2.1(j) and 2.1(q) shall be true in all respects as of the date of this Agreement and as of the Closing Date as though made on and as of such
date (except to the extent that such representation or warranty speaks to an earlier date, in which case as of such earlier date); 

(ii) the Company shall have performed in all material respects its obligations required to be performed by it pursuant to this
Agreement at or prior to the Closing; 
 (iii) the Purchaser shall have received a certificate signed on behalf of the
Company by a senior executive officer certifying to the effect that the conditions set forth in Section 1.3(b)(i), (ii) and (viii) have been satisfied; 

  
 3 

 (iv) the Company shall have delivered a certificate signed on behalf of the
Company by a senior executive officer certifying to the effect that the conditions set forth in Section 1.3(a)(ii) have been satisfied; 

(v) the Purchaser shall have received from the Company a certificate of the Secretary of State of the State of Nevada, dated
within two (2) business days prior to the Closing Date, to the effect that the Company is in good standing in the State of Nevada; 

(vi) the Purchaser shall have received a certificate signed on behalf of the Company by the secretary certifying (x) as to
the Articles of Incorporation and Bylaws of the Company, (y) that the Company has adopted and filed the Certificate with the Secretary of State of the State of Nevada and (z) that the Certificate is in full force and effect; 

(vii) the Purchaser shall have received from the Company duly signed resignations, effective as of the Closing from the members
of the Board of Directors named on Schedule 2; 
 (viii) since the date of this Agreement, no Company Material Adverse Effect
shall have occurred; 
 (ix) the Company shall have reimbursed the Purchaser for its Expense Reimbursement Amount as required
pursuant to Section 5.2; and 
 (x) the Company shall have delivered, or caused to be delivered, to
the Purchaser all of the items described in Section 1.3(b). 
 (c) The obligation of the Company to effect the
Closing is also subject to the satisfaction or, to the extent permitted by applicable Law, waiver by the Company (acting at the direction of the Board of Directors) at or prior to the Closing of the following conditions: 

(i) the representations and warranties of the Purchaser set forth in Section 2.2 hereof shall be true
and correct in all material respects as of the date of this Agreement and as of the Closing Date as though made on and as of such date (except to the extent that such representation or warranty speaks of an earlier date, in which case such
representation or warranty shall be true and correct in all material respects as of such date); 
 (ii) the Purchaser shall
have performed in all material respects its obligations required to be performed by it pursuant to this Agreement at or prior to the Closing; 

(iii) the Company shall have received a certificate signed on behalf of the Purchaser by a senior executive officer (or
equivalent) thereof certifying to the effect that the conditions set forth in Section 1.3(c)(i) and (ii) have been satisfied by the Purchaser; and 

(iv) the Purchaser shall have delivered, or caused to be delivered, to the Company all of the items described in
Section 1.3(c). 

  
 4 

 ARTICLE II 

REPRESENTATIONS AND WARRANTIES 

Section 2.1 Representations and Warranties of the Company. Except as set forth in a correspondingly identified Company Disclosure
Schedule attached hereto (provided, that any item disclosed in any particular section of the Company Disclosure Schedule attached hereto shall be deemed to be disclosed with respect to any other section to the extent it is reasonably apparent
on the face of such disclosure that it applies to such other section), the Company represents and warrants to the Purchaser as of the date hereof and as of the Closing Date as follows: 

(a) Organization and Authority. 

(i) The Company is a corporation duly organized and validly existing under the Laws of the State of Nevada, has all requisite
power and authority to own its properties and conduct its business as presently conducted in the manner described in the SEC Documents and is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing
of property or the conduct of its business requires it to be so qualified and where failure to be so qualified would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. True and accurate copies of the
Articles of Incorporation and Bylaws, each as in effect as of the date of this Agreement, have been made available to the Purchaser prior to the date hereof. 

(ii) As of the close of business on January 2, 2022 (the “Capitalization Date”), the
Company owns, directly or indirectly, interests in the Company Subsidiaries as set forth on Section 2.1(a)(ii) of the Company Disclosure Schedule. Such ownership interests have been duly authorized and validly issued in
accordance with the Organizational Documents of each Company Subsidiary and are fully paid (to the extent required under those documents), and the Company owns, directly or indirectly, such ownership interests free and clear of all Liens (except
restrictions under any applicable state or foreign securities Laws). Each Company Subsidiary is duly organized and validly existing under the Laws of its jurisdiction of organization, has all requisite power and authority to own its properties and
conduct its business as presently conducted and is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified and where failure
to be so qualified would, individually or in the aggregate, reasonably be expected to be material to the Company. Except as set forth in Section 2.1(a)(ii) of the Company Disclosure Schedule, the Company does not own any
Equity Security or other equity interest in any Person. As used herein, “Subsidiary” means, with respect to any Person, any corporation, partnership, joint venture, limited liability company or other entity (x) of which
such Person or a subsidiary of such Person is a general partner or (y) of which a majority of the voting securities or other voting interests, or a majority of the securities or other interests of which having by their terms ordinary voting
power to elect a majority of the board of directors or Persons performing similar functions with respect to such entity, is directly or indirectly owned by such Person and/or one or more subsidiaries thereof; and “Company
Subsidiary” means any Subsidiary of the Company. 

  
 5 

 (b) Capitalization; Indebtedness. 

(i) The authorized capital stock of the Company consists of 20,000,000 shares of common stock, par value $0.01 per share of the
Company (the “Common Stock”), and 1,000,000 shares of Preferred Stock. As of the Capitalization Date, there were 8,420,599 shares of Common Stock outstanding and no shares of Preferred Stock outstanding or designated as a
series. As of the close of business on the Capitalization Date, (A) 2,100,000 shares of Common Stock have been reserved for issuance under the Abraxas Petroleum Corporation Amended and Restated 2005 Employee Long-Term Equity Incentive Plan, as
amended (the “Plan”), and 1,699,972 shares of Common Stock remain available pursuant to the Plan for award as Stock Options, Restricted Stock Awards, and Performance Based Restricted Stock (collectively,
the “Company Stock Awards”) and (B) no shares of Common Stock were held by the Company in its treasury. All of the issued and outstanding shares of Common Stock have been duly authorized and validly issued in
accordance with applicable securities Laws and are fully paid, nonassessable and free of preemptive rights, with no personal liability attaching to the ownership thereof. From the Capitalization Date through and as of the date of this Agreement, no
other shares of Common Stock or Preferred Stock have been issued. The Company does not have outstanding shareholder purchase rights or “poison pill” or any similar arrangement in effect. Except as set forth on
Section 2.1(b)(i) of the Company Disclosure Schedules, there are no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the Equity Securities of, or other
equity or voting interest in, the Company or any Company Subsidiary to which the Company or any Company Subsidiary is a party or is bound. 

(ii) No bonds, debentures, notes or other indebtedness having the right to vote on any matters on which the stockholders of the
Company may vote (“Voting Debt”) are issued and outstanding. As of the date of this Agreement, except (A) pursuant to the surrender of shares to the Company or the withholding of shares by the Company to cover Tax
withholding obligations under the Company Stock Awards, (B) as set forth in Section 2.1(b)(i) and (C) the Company does not have and is not bound by any outstanding options, preemptive rights, rights of first
offer, registration rights, warrants, calls, commitments or other rights or agreements calling for the purchase or issuance of, or securities or rights convertible into, or exchangeable for, any shares of Common Stock or any other equity securities
of the Company or Voting Debt or any securities representing the right to purchase or otherwise receive any shares of capital stock of the Company (including any rights plan or agreement). The Company has no outstanding obligations to provide
registration rights to any Person with respect to any Equity Securities of the Company or any of its subsidiaries. 
 (iii)
Immediately following the Closing, except as set forth on Schedule 2.1(b)(iii), the Company and its subsidiaries will not have any obligations in respect of indebtedness for borrowed money. 

  
 6 

 (c) Authorization. 

(i) The Company has the corporate power and authority to enter into this Agreement and the other Transaction Documents and to
carry out its obligations hereunder and thereunder. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and the consummation of the transactions contemplated hereby and thereby have been duly
authorized by the Board of Directors. This Agreement has been, and (as of the Closing) the other Transaction Documents will be, duly and validly executed and delivered by the Company and, assuming due authorization, execution and delivery by the
Purchaser, is, and (as of the Closing) each of the other Transaction Documents will be, a valid and binding obligation of the Company enforceable against the Company in accordance with its terms (except as enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar Laws of general applicability relating to or affecting creditors’ rights or by general equity principles). Other than the filing of the Certificate with the
Secretary of State of the State of Nevada, no other corporate proceedings are necessary for the execution and delivery by the Company of this Agreement or the other Transaction Documents, the performance by it of its obligations hereunder or
thereunder or the consummation by it of the transactions contemplated hereby or thereby. 
 (ii) Neither the Company nor any
Company Subsidiary is (a) in violation of any of the terms, conditions or provisions of (i) the amended and restated articles of incorporation of the Company (the “Certificate of Incorporation”) or amended and
restated bylaws of the Company, as amended (the “Bylaws”), or the certificate of incorporation, charter, bylaws or other governing instrument of any Company Subsidiary (together with the Certificate of Incorporation and
the Bylaws, the “Organizational Documents”), (b) in violation of any Law, statute, ordinance, rule, regulation, permit, or franchise applicable to it or of any judgment, ruling, order, writ, injunction or decree of
any Governmental Entity having jurisdiction over the Company or any Company Subsidiary or any of their any respective properties or assets or (c) in breach, default (or an event which, with notice or lapse of time or both, would constitute such
a default) or violation in the performance of any obligation, agreement, covenant or condition contained in any note, bond, debenture, or any other evidence of indebtedness or in any agreement, indenture, lease or other agreement or instrument to
which the Company or any Company Subsidiary is a Party or by which the Company or any Company Subsidiary or any of their respective properties or assets are bound, which breach, default or violation would, if continued, reasonably be expected to be
material to the Company. 
 (iii) None of the issuance and sale by the Company of the Stock Consideration, the application of
the proceeds thereof, the execution, delivery and performance by the Company of this Agreement or the other Transaction Documents, the consummation of the transactions contemplated hereby or thereby, nor compliance by the Company with any of the
provisions hereof or thereof, will (subject only to the filing of the Certificate with the Secretary of State of the State of Nevada), (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or require consent under, or result
in the creation of any Lien upon any of 

  
 7 

 
properties or assets of the Company or any Company Subsidiary under (i) any of the terms, conditions or provisions of their respective Organizational Documents or (ii) any note, bond,
mortgage, indenture, deed of trust, license, loan agreement, lease, agreement or other instrument or obligation to which the Company or any Company Subsidiary is a Party or by which it may be bound, or to which the Company or any Company Subsidiary
or any of the properties or assets of the Company or any Company Subsidiary may be subject, or (B) violate any Law, statute, ordinance, rule, regulation, permit, franchise or any judgment, ruling, order, writ, injunction or decree applicable to
the Company or any Company Subsidiary or any of their respective properties or assets, except in the case of clauses (A)(ii) and (B) for such violations, conflicts and breaches as would not, be material to the
Company. 
 (iv) Neither the execution and delivery of this Agreement or the other Transaction Documents nor the consummation
of the transactions contemplated hereby and thereby, either alone or in connection with any other event, will (i) accelerate the timing of vesting, funding or payment, or give rise to any payment or increase the amount or value, of any
compensation or benefits to any current or former director, officer, employee or other individual service provider of the Company or any Company Subsidiary or under the Plan, (ii) directly or indirectly cause any of the Company or any Company
Subsidiary to transfer or set aside any assets to fund any benefits under the Plan or limit or restrict the right to merge, amend, terminate or transfer the assets of the Plan on or following the Closing, or (iii) give rise to payments or
benefits (whether in cash, property or the vesting of property) that would be nondeductible to the payor under Section 280G of the Code or that would result in an excise Tax on any recipient under Section 4999 of the Code. 

(v) Other than the securities or “Blue Sky” Laws of the various states, the filing of the Certificate with the
Secretary of State of the State of Nevada, no notice to, registration, declaration or filing with, exemption or review by, or authorization, order, consent or approval of, any court, administrative agency or commission or other governmental or
arbitral body or authority or instrumentality, whether federal, state, local or foreign, and any applicable industry self-regulatory organization (each, a “Governmental Entity”),
nor expiration or termination of any statutory waiting period, is necessary for the consummation by the Company of the transactions contemplated by this Agreement or the other Transaction Documents. 

(d) Sale of Securities. Assuming the accuracy of the representations and warranties of the Purchaser contained in
Section 2.2, the issuance and sale of the Stock Consideration to the Purchaser pursuant to this Agreement is exempt from the registration and prospectus delivery requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and the rules and regulations promulgated thereunder, and neither the Company nor, to the Knowledge of the Company, any person acting on its behalf, has taken nor will take any action hereafter
that would cause the loss of such exemption. Without limiting the foregoing, neither the Company nor to the Knowledge of the Company any other Person authorized by the Company to act on its behalf, has engaged in a general solicitation or general
advertising (within the meaning of Regulation D of the Securities Act) of investors with respect to offers or sales of the Stock Consideration and neither the Company nor, to the Knowledge of the Company, any Person acting on its behalf has
made any offers or sales of any security or solicited any offers to buy any security, 

  
 8 

 
under circumstances that would cause the offering or issuance of Stock Consideration under this Agreement to be integrated with prior offerings by the Company for purposes of the Securities Act
that would result in none of Regulation D or any other applicable exemption from registration under the Securities Act to be available, nor will the Company take any action or steps that would cause the offering or issuance of the Stock
Consideration under this Agreement to be integrated with other offerings. 
 (e) Status of Securities. The shares of Stock
Consideration have been duly authorized by all necessary corporate action. When issued against receipt of the consideration therefor as provided in this Agreement, such Stock Consideration will be validly issued, fully paid and nonassessable, will
not subject the holders thereof to personal liability, will not be subject to preemptive rights of any other stockholder of the Company, and will effectively vest in the Purchaser good and marketable title to all such securities, be free and clear
of all Liens, except restrictions imposed by the Securities Act, the Certificate and any applicable state or foreign securities Laws. The respective rights, preferences, privileges and restrictions of the Preferred Stock and the Common Stock are as
stated in the Articles of Incorporation (including the Certificate) or as otherwise provided by the mandatory provisions of Chapter 78 of the Nevada Revised Statutes, as amended (the “Nevada Act”). 

(f) SEC Documents; Financial Statements. 

(i) The Company has filed all required reports, proxy statements, forms, and other documents with the U.S. Securities and
Exchange Commission (the “SEC”) since December 31, 2018 (collectively, the “SEC Documents”). Each of the SEC Documents, as of its respective date complied as to form in all material
respects with the requirements of the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, and the rules and regulations of the SEC promulgated thereunder
applicable to such SEC Documents, and, except to the extent that information contained in any SEC Document has been revised or superseded by a later filed SEC Document filed and publicly available prior to the date of this Agreement, none of the SEC
Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading. 
 (ii) The Company (A) has implemented and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are reasonably designed to ensure that material information relating to the Company, including its consolidated Subsidiaries, is accumulated and communicated to
management of the Company, including its principal executive officers and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure to be made and for the preparation of the Company’s filings with the
SEC, (B) has ensured such disclosure controls and procedures are effective in all material respects to perform the functions for which they were established to the extent required by Rule 13a- 15 of
the Exchange Act and (C) has disclosed, based on its most recent evaluation prior to the date of this Agreement, to the Company’s outside auditors and the audit committee of the Board of Directors (I) any significant deficiencies and
material weaknesses in the design or operation of internal controls over financial reporting (as defined in Rule 13a- 15(f) under 

  
 9 

 
the Exchange Act) that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information and (II) any fraud, whether or not
material, that involves management or other employees who have a significant role in the Company’s internal controls over financial reporting. 

(iii) The financial statements of the Company and its consolidated Subsidiaries contained or incorporated by reference in the
SEC Documents (including the related notes and supporting schedule) (A) complied as to form in all material respects in with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, in each
case as of the date such SEC Document was filed, (B) have been prepared in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except as may be
indicated in such financial statements or the notes thereto or as permitted by Regulation S-X) and (C) fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows of the Company and its consolidated Subsidiaries for the periods then ended (subject, in the case of unaudited statements, to
normal recurring audit adjustments). 
 (iv) Since the date of the most recent balance sheet of the Company audited by the
Company’s auditor, the interactive data in eXtensible Business Reporting Language included or incorporated by reference in the SEC Documents fairly presents the information called for in all material respects and has been prepared in accordance
with the SEC’s rules and guidelines applicable thereto in all material respects. 
 (g) Undisclosed Liabilities. Except for
(i) those liabilities that are reflected or reserved for in the consolidated financial statements of the Company included in its Quarterly Report on Form 10-Q for the nine months ended
September 30, 2021, (ii) liabilities incurred since September 30, 2021 in the ordinary course of business (including incremental borrowings under the Company’s revolving credit facility) and (iii) liabilities incurred
pursuant to the transactions contemplated by this Agreement and the other Transaction Documents, the Company and the Company Subsidiaries do not have any material liabilities or obligations of any nature whatsoever (whether accrued, absolute,
contingent or otherwise) that are required to be reflected in the Company’s financial statements in accordance with GAAP. 
 (h)
Independent Registered Public Accounting Firm. ADKF, P.C., which has audited the financial statements contained or incorporated by reference in the SEC Documents, is an independent registered public accounting firm with respect to the Company
and the consolidated Company Subsidiaries within the meaning of the Securities Act and the applicable rules and regulations thereunder adopted by the Commission and the Public Company Accounting Oversight Board (United States). ADKF, P.C. has not
resigned or been dismissed as independent registered public accountants of the Company and the consolidated Company Subsidiaries as a result of or in connection with any disagreement with the Company or any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure. 

  
 10 

 (i) No Restrictions. Except as described in the Organizational Documents, there are
no restrictions upon the voting or transfer of any Equity Securities of the Company or the Company Subsidiaries. 
 (j) Brokers and
Finders. Except for Petrie Partners Securities, LLC, the fees and expenses of which will be paid by the Company, neither the Company nor any of the Company Subsidiaries or any of their respective officers, directors, employees or agents has
employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no broker or finder has acted directly or indirectly for the Company in connection with this Agreement,
the other Transaction Documents or the transactions contemplated hereby and thereby. 
 (k) Litigation. There is no action, suit,
proceeding, claim, injunction or investigation pending or, to the Knowledge of the Company, threatened against, nor any outstanding judgment, order or decree against, the Company or any of the Company Subsidiaries before or by any Governmental
Entity which, if adversely determined, would reasonably be expected to be material to the Company or which challenge the validity of any of the Transaction Documents or the right of the Company to enter into the Transaction Documents or consummate
the transactions contemplated hereby or thereby. 
 (l) Taxes. 

(i) Each of the Company and the Company Subsidiaries has filed all income and other material Tax Returns, and such Tax Returns
are true, accurate and complete in all material respects; 
 (ii) All income and other material Taxes owed by the Company and
the Company Subsidiaries which are or have become due have been timely paid in full, except for those which are being contested in good faith and in respect of which adequate reserves with respect thereto are maintained in accordance with GAAP; 

(iii) There is no material deficiency proposed or assessed with respect to any Taxes or Tax Returns of the Company or a Company
Subsidiary; 
 (iv) Neither the Company nor any of the Company Subsidiaries have executed any waiver of any statute of
limitations on the assessment or collection of any material Tax that remains outstanding; 
 (v) There is no pending audit,
suit, proceeding, claim, examination or other administrative or judicial proceedings ongoing, pending, or, to the Knowledge of the Company, threatened or proposed with respect to any material Taxes of the Company or any of the Company Subsidiaries;

 (vi) Neither the Company nor any Company Subsidiary has received written notice from a taxing authority in a jurisdiction
where it does not file a Tax Return claiming that it is subject to material Tax in that jurisdiction; 

  
 11 

 (vii) There are no Liens for material Taxes against the property of the
Company or any Company Subsidiary except for Permitted Liens; 
 (viii) The Company and each Company Subsidiary has complied
with all Tax withholding and deposit requirements in all material respects; 
 (ix) Neither the Company nor a Company
Subsidiary has engaged in any “listed transaction” within the meaning of Treasury Regulation Section 1.6011-4(b); and 

(x) Neither the Company nor any Company Subsidiary has made an election under Section 965(h) of the Code. 

(m) Permits and Licenses. The Company and the Company Subsidiaries possess all certificates, authorizations, franchises, licenses,
consents and permits issued by appropriate Governmental Entities (collectively, “Permits”) necessary or material to the conduct of their respective businesses in the manner described in the SEC Documents, except where
the failure to have obtained the same would not, individually or in the aggregate, reasonably be expected to have be material to the Company. The Company and the Company Subsidiaries are in compliance with the terms and conditions of all such
Permits and no default under any such Permits has occurred, except where the failure to so comply would not, individually or in the aggregate, reasonably be expected to be material to the Company, and have not received any notice of proceedings
relating to the revocation, suspension, termination or modification of any Permits that, if determined adversely to the Company or any the Company Subsidiaries, would, individually or in the aggregate, reasonably be expected to be material to the
Company. No consent from any Governmental Entity will be required for any Permit in connection with the due execution, delivery and performance by the Company of this Agreement and the consummation of the Exchange. 

(n) Fairness Opinion. Petrie Partners Securities, LLC has delivered an opinion to the Board of Directors, dated as of the date hereof,
that the Exchange is fair from a financial point of view to the Company. 
 (o) Investment Company Act. The Company and each of the
Company Subsidiaries is not and after giving effect to the Exchange, will not be (i) an “investment company” as defined in the United States Investment Company Act of 1940, as amended (the “Investment Company
Act”), or (ii) a “business development company” (as defined in Section 2(a)(48) of the Investment Company Act). 

(p) Compliance with Laws. The Company and Company Subsidiaries are, and during the prior three years have been, in compliance in all
material respects with all applicable Laws relating to the properties and assets of the Company and the Company Subsidiaries and the business of the Company and Company Subsidiaries. To the Knowledge of the Company as of the date of this Agreement,
neither the Company nor any of the Company Subsidiaries is being investigated for any material violation of any applicable Law relating to the properties and assets of the Company and the Company Subsidiaries and the business of the Company and
Company Subsidiaries. 

  
 12 

 (q) Absence of Changes. Since December 31, 2018, excluding matters
disclosed in the Company’s SEC Documents (other than disclosures in the “Risk Factors” sections thereof or any disclosures therein that are cautionary, predictive or forward-looking in nature), there has not been any Company Material
Adverse Effect. 
 (r) Compliance with Sarbanes-Oxley. There is and has been no failure
on the part of the Company and any of the Company’s directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002, as amended, and the rules and
regulations promulgated in connection therewith applicable to the Company. 
 (s) Title to Interests. The Company
and the Company Subsidiaries have (i) Good and Marketable Title to all of their material interests in their producing oil and gas properties forming the basis for the reserves in the Company’s reserve report as of
December 31, 2020 filed with the SEC on May 7, 2021 (the “Reserve Report”) and to all of their material interests in non-producing oil and gas properties, title
investigations having been carried out by the Company and the Company Subsidiaries, as applicable, in accordance with the general practice in the oil and gas industry, (ii) good and indefeasible title to all other real property owned by them
that is material to the Company and the Company Subsidiaries, taken as a whole, and (iii) good and valid title to all personal property owned by them that is material to the Company and the Company Subsidiaries, taken as a whole, in each case
free and clear of all Liens, encumbrances and defects, except such Liens, encumbrances and defects as do not materially interfere with the use made and proposed to be made of such property by the Company or the Company Subsidiaries. Except as would
not reasonably be expected to have a Company Material Adverse Effect, all proceeds from the sale of the Company’s and Company Subsidiaries’ share of oil, condensate, gas, casinghead gas and other liquid or gaseous hydrocarbons being
produced from the Company’s and Company Subsidiaries’ respective oil and gas properties are currently being paid in full to the Company or the Company Subsidiaries, as applicable, by the Purchaser thereof on a timely basis, and none of
such proceeds from such hydrocarbons produced from the Company’s oil and gas properties that are operated by the Company or an Affiliate of the Company is currently being held in suspense by such purchaser or any other Party. Neither the
Company nor any Company Subsidiary has granted any net profits interests or overriding royalty interests in respect of the oil and gas properties other than (x) to the extent reflected in the Reserve Report or (y) as were granted in the
ordinary course of business and consistent with industry practice and would not, individually or in the aggregate, be material to the Company. 

(t) Intellectual Property. The Company and the Company Subsidiaries own or possess adequate rights to use all material patents, patent
applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, know-how, software, systems and technology (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or procedures) necessary to conduct their businesses, except as would not, individually or in the aggregate, reasonably be expected to be material to the Company. 

(u) Labor and Employment Matters. The Company and Company Subsidiaries are in compliance in all material respects with all applicable
Laws relating to employment and employment practices, terms and conditions of employment and wages and hours, and are not engaged in any unfair labor practice. Neither the Company nor any Company Subsidiary has any material liability with respect to
misclassification of any Person as an independent contractor, temporary employee, leased employee or any other servant or agent compensated other than through reportable wages (as an employee) paid by the Company or any Company Subsidiary. No labor
dispute with the employees of the Company or any Company Subsidiary exists, or, to the Knowledge of the Company, is imminent or threatened that could reasonably be expected to be material to the Company. 

  
 13 

 (v) Insurance. Each of the Company and the Company Subsidiaries carry, or are covered
by, insurance from insurers of recognized financial responsibility in such amounts and covering such risks as is reasonably adequate for the conduct of their respective businesses and the value of their respective properties and as is customary for
companies engaged in similar businesses in similar industries. All policies of insurance of the Company and the Company Subsidiaries are in full force and effect; the Company and the Company Subsidiaries are in compliance with the terms of such
policies in all material respects; there are no claims by the Company or any of the Company Subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause;
and none of the Company or any of the Company Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business. 
 (w) Environmental Laws. (a) (i) Neither the Company nor any of the Company Subsidiaries is
in violation of, and does not have any liability under, any federal, state, local or non-U.S. statute, Law, rule, regulation, ordinance, code, other requirement or rule of Law or decision or order of any
domestic or foreign governmental agency, governmental body or court, relating to pollution, to the use, handling, transportation, treatment, storage, discharge, disposal or release of Hazardous Substances, to the protection or restoration of the
environment or natural resources, to occupational health and safety including as such relates to exposure to Hazardous Substances, and to natural resource damages (collectively, “Environmental Laws”), (ii) to the
Knowledge of the Company, neither the Company nor any of the Company Subsidiaries own, occupy, operate or use any real property contaminated with Hazardous Substances, (iii) neither the Company nor any of the Company Subsidiaries is conducting
or funding any investigation, remediation, remedial action or monitoring of actual or suspected Hazardous Substances in the environment, (iv) to the Knowledge of the Company, neither the Company nor any of the Company Subsidiaries is liable or
allegedly liable for any release or threatened release of Hazardous Substances, including at any off-site treatment, storage or disposal site in violation of Environmental Law, (v) neither the Company nor
any the Company Subsidiaries is subject to any pending, or to the Knowledge of the Company threatened, claim by any Governmental Entity or person arising under Environmental Laws or relating to Hazardous Substances, and (vi) the Company and the
Company Subsidiaries have received and are in compliance with all, and have no liability under any, Permits, licenses, authorizations, identification numbers or other approvals required under applicable Environmental Laws for the operation of their
business as presently conducted, except in each case covered by clauses (i)–(vi) such as would not, individually or in the aggregate, reasonably be expected to be material to the Company; (b) to the Knowledge of the Company
and the Company Subsidiaries there are no facts or circumstances that would reasonably be expected to result in a violation of, liability under, or claim pursuant to any Environmental Law that would reasonably be expected to be material to the
Company; and (c) in the ordinary course of its business, the Company and the Company Subsidiaries periodically evaluate the effect, including associated costs and liabilities, of Environmental Laws on the business, properties, results of
operations and financial condition of the Company, and, on the basis of such evaluation, the Company and the Company Subsidiaries have reasonably concluded that such Environmental Laws will not, individually or in the aggregate, reasonably be
expected to have a Company Material Adverse Effect. 

  
 14 

 (x) ERISA Compliance. Except, in each case, for any such matter as would not,
individually or in the aggregate, reasonably be expected be material to the Company (i) each “employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)) for which the Company or any of the Company Subsidiaries would have any liability (each an “ERISA-Subject Plan”) has been
maintained in material compliance with its terms and with the requirements of all applicable statutes, rules and regulations including ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); (ii) no
prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any ERISA-Subject Plan excluding transactions effected pursuant to a
statutory or administrative exemption; (iii) with respect to each ERISA- Subject Plan subject to Title IV of ERISA (A) no “reportable event” (within the meaning of Section 4043(c)
of ERISA) has occurred or is reasonably expected to occur, (B) no ERISA- Subject Plan is or is reasonably expected to be “at risk” status (within the meaning of Section 430 of the Code or
Section 303 of ERISA) (C) there has been no filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any ERISA-Subject Plan or the receipt by the Company or any of the Company Subsidiaries from the PBGC or the plan administrator of any notice relating to the intention to terminate any
ERISA-Subject Plan or ERISA-Subject Plans or to appoint a trustee to administer any ERISA-Subject Plan, (D) no conditions
contained in Section 303(k)(1)(A) of ERISA for imposition of a Lien shall have been met with respect to any ERISA- Subject Plan and (E) neither the Company nor any of the Company Subsidiaries has
incurred, or reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the ERISA-Subject Plan or premiums to the Pension Benefit Guaranty Corporation in the ordinary
course and without default) in respect of an ERISA-Subject Plan (including a “multiemployer plan,” within the meaning of Section 4001(c)(3) of ERISA) (“Multiemployer
Plan”); (iv) no Multiemployer Plan is, or is expected to be, “insolvent” (within the meaning of Section 4245 of ERISA), in “reorganization” (within the meaning of Section 4241 of ERISA), or in
“endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 304 of ERISA); and (v) each ERISA-Subject Plan that is intended to be qualified
under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification. 

(y) Illegal Payments. Neither the Company nor any of the Company Subsidiaries or, to the Knowledge of the Company, any director,
officer, agent, employee, representative or other Person associated with or acting on behalf of the Company or any of the Company Subsidiaries, has taken or will take any action in furtherance of an offer, payment, promise to pay, or authorization
or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any “government official” including any officer or employee of a government or
government-owned or controlled entity or of a public international organization, or any Person acting in an official capacity for or on behalf of any of the foregoing, or any political Party or Party official
or candidate for political office to influence official action or secure an improper advantage; and the Company and the Company Subsidiaries have conducted their businesses in compliance with applicable
anti-corruption Laws and have instituted and maintain and will continue to maintain policies and procedures designed to promote and achieve compliance with such Laws and with the representation and warranty
contained herein. 

  
 15 

 (z) Anti-Money Laundering Laws. The
operations of the Company and the Company Subsidiaries are and have been conducted at all times in compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act of 1970, as amended by
Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering
statutes of jurisdictions where the Company and the Company Subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity
(collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any Governmental Entity or any arbitrator involving the Company or any
Company Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the Knowledge of the Company, threatened. 

(aa) Non-Competition. Neither the Company nor any Company Subsidiary is a party to any agreement
that would limit the ability of the Purchaser or any of its Affiliates to compete in any line of business or with any Person or in any geographic area or during any period of time. 

(bb) Economic Sanctions. 

(i) Neither the Company nor any of the Company Subsidiaries, nor any director, officer, or employee thereof, nor, to the
Knowledge of the Company, any agent, Affiliate or representative of the Company or any of the Company Subsidiaries, is a Person that is, or is owned or controlled by a Person that is: (A) the subject of any sanctions administered or enforced by
the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC), the United Nations Security Council (UN), the European Union (EU), Her Majesty’s Treasury (UK HMT), the Swiss Secretariat of Economic Affairs (SECO), the Hong Kong
Monetary Authority (HKMA), the Monetary Authority of Singapore (MAS), or other relevant sanctions authority (collectively, “Sanctions”), nor (B) located, organized or resident in a country or territory that is the
subject of Sanctions (including, without limitation, Crimea, Burma/Myanmar, Cuba, Iran, North Korea, Sudan and Syria). 

(ii) Neither the Company nor any of the Company Subsidiaries will, directly or indirectly, use the proceeds of the sale of the
PSA or the Exchange, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person: (A) to fund or facilitate any activities or business of or with any Person or in any country or
territory that, at the time of such funding or facilitation, is the subject of Sanctions; or (B) in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as
underwriter, advisor, investor or otherwise). 

  
 16 

 (iii) For the past five (5) years, the Company and the Company
Subsidiaries have not knowingly engaged in, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject
of Sanctions. 
 (cc) No Additional Representations. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES MADE BY THE COMPANY IN THIS
SECTION 2.1, NEITHER THE COMPANY NOR ANY OTHER PERSON MAKES (AND THE PURCHASER HEREBY ACKNOWLEDGES AND AGREES ON BEHALF OF ITSELF AND ITS AFFILIATES AND REPRESENTATIVES THAT IT HAS NOT RELIED UPON) ANY EXPRESS OR IMPLIED
REPRESENTATION OR WARRANTY WITH RESPECT TO THE STOCK CONSIDERATION OR THE COMPANY OR ANY OF THE COMPANY SUBSIDIARIES OR THEIR RESPECTIVE BUSINESSES, OPERATIONS, ASSETS, LIABILITIES, CONDITION OR PROSPECTS, AND THE COMPANY HEREBY DISCLAIMS ANY SUCH
OTHER REPRESENTATIONS OR WARRANTIES. IN PARTICULAR, WITHOUT LIMITING THE FOREGOING DISCLAIMER, NEITHER THE COMPANY NOR ANY OTHER PERSON MAKES OR HAS MADE ANY REPRESENTATION OR WARRANTY TO THE PURCHASER, OR ANY OF ITS AFFILIATES OR REPRESENTATIVES
WITH RESPECT TO (I) ANY FINANCIAL PROJECTION, FORECAST, ESTIMATE, BUDGET OR PROSPECT INFORMATION RELATING TO THE COMPANY OR ANY OF THE COMPANY SUBSIDIARIES OR THEIR RESPECTIVE BUSINESS, OR EXCEPT FOR THE REPRESENTATIONS AND
WARRANTIES MADE BY THE COMPANY IN THIS SECTION 2.1, ANY ORAL OR WRITTEN INFORMATION PRESENTED TO THE PURCHASER OR ANY OF ITS AFFILIATES OR REPRESENTATIVES IN THE COURSE OF THEIR DUE DILIGENCE INVESTIGATION OF THE COMPANY, THE
NEGOTIATION OF THIS AGREEMENT OR IN THE COURSE OF THE TRANSACTIONS CONTEMPLATED HEREBY. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, NOTHING IN THIS AGREEMENT SHALL LIMIT THE RIGHT OF THE PURCHASER TO RELY ON THE REPRESENTATIONS, WARRANTIES,
COVENANTS AND AGREEMENTS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY CERTIFICATE DELIVERED HEREUNDER, NOR WILL ANYTHING IN THIS AGREEMENT OPERATE TO LIMIT ANY CLAIM BY THE PURCHASER FOR FRAUD. 

Section 2.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the Company as
follows: 
 (a) Organization and Authority. The Purchaser is duly organized, validly existing and in good standing under the Laws of
the jurisdiction of its organization, is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified and where failure to be so
qualified would be reasonably expected to materially and adversely affect the Purchaser’s ability to perform its obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis, and the Purchaser has the
corporate or other power and authority and governmental authorizations to own its properties and assets and to carry on its business as it is now being conducted, except where the failure to have such power or authority would not reasonably be
expected, individually or in the aggregate, to materially impair the Purchaser’s ability to effect the transactions contemplated hereby. 

  
 17 

 (b) Authorization. 

(i) The Purchaser has the corporate or other power and authority to enter into this Agreement and the other Transaction
Documents to which it is or will be a party and to carry out its obligations hereunder and thereunder. The execution, delivery and performance by the Purchaser of this Agreement and the other Transaction Documents to which the Purchaser is or will
be a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all requisite action on the part of the Purchaser, and no further approval or authorization by any of its stockholders, partners,
members or other equity owners, as the case may be, is required. Each of this Agreement and the other Transaction Documents to which the Purchaser is or will be a party have been duly and validly executed and delivered by the Purchaser and assuming
due authorization, execution and delivery by the Company, is a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms (except as enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer and similar Laws of general applicability relating to or affecting creditors’ rights or by general equity principles). 

(ii) The Purchaser is not (a) in violation of any of the terms, conditions or provisions of its certificate of formation,
(b) in violation of any Law, statute, ordinance, rule, regulation, permit, or franchise applicable to it or of any judgment, ruling, order, writ, injunction or decree of any Governmental Entity having jurisdiction over the Purchaser or any of
its properties or assets or (c) in breach, default (or an event which, with notice or lapse of time or both, would constitute such a default) or violation in the performance of any obligation, agreement, covenant or condition contained in any
note, bond, debenture, or any other evidence of indebtedness or in any agreement, indenture, lease or other agreement or instrument to which the Purchaser is a Party or by which the Purchaser or any of its properties or assets are bound, which
breach, default or violation in the case of clauses (b) or (c) would, if continued, reasonably be expected to expected to materially and adversely affect the Purchaser’s ability to perform its obligations
under this Agreement or consummate the transactions contemplated hereby on a timely basis. 
 (iii) Neither the execution,
delivery and performance by the Purchaser of this Agreement or the other Transaction Documents to which it is or will be a party, nor the consummation of the transactions contemplated hereby and thereby, nor compliance by the Purchaser with any of
the provisions hereof or thereof, will (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the
termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of any Lien upon any of the properties or assets of the Purchaser under any of the terms, conditions or
provisions of (i) its governing instruments or (ii) any note, bond, mortgage, indenture, deed of trust, license, loan agreement, lease, agreement or other instrument or obligation to which the Purchaser is a Party or by which it may be
bound, or to which the Purchaser or any of the properties or assets of the Purchaser may be subject, or (B) subject to compliance with the statutes and regulations referred to in the next paragraph, violate any Law, statute, ordinance, rule or
regulation, permit, concession, grant, franchise or any judgment, ruling, order, writ, 

  
 18 

 
injunction or decree applicable to the Purchaser or its properties or assets except in the case of clauses (A)(ii) and (B) for such violations, conflicts and
breaches as would not reasonably be expected to materially and adversely affect the Purchaser’s ability to perform its obligations under this Agreement or the other Transaction Documents to which it is or will be a party or consummate the
transactions contemplated hereby or thereby on a timely basis. 
 (iv) No notice to, registration, declaration or filing
with, or review by, or authorization, written exemption or qualification, order, permit, waiver, license, consent or approval of, any Governmental Entity, is required to be made or obtained by the Purchaser or any of its Affiliates, nor is the
expiration or termination of any statutory waiting period, necessary in connection with, the execution, delivery and performance of this Agreement and the other Transaction Documents by the Purchaser and the consummation by the Purchaser of the
transactions contemplated by this Agreement or the other Transaction Documents to which it is or will be a party. 
 (c) Exchange for
Investment. The Purchaser acknowledges that the Stock Consideration has not been registered under the Securities Act or under any state securities Laws. The Purchaser (i) acknowledges that it is acquiring the Stock Consideration pursuant to
an exemption from registration under the Securities Act solely for investment with no present intention to distribute any of such Stock Consideration to any Person in violation of applicable securities Laws, (ii) will not sell or otherwise
dispose of any of the Stock Consideration, except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities Laws, (iii) has such knowledge and experience in financial and
business matters and in investments of this type that it is capable of evaluating the merits and risks of its investment in the Stock Consideration and of making an informed investment decision, (iv) is an “accredited investor”
(as that term is defined by Rule 501 of the Securities Act) and (v) (A) has been furnished with or has had full access to all the information that it considers necessary or appropriate to make an informed investment decision with
respect to the Stock Consideration, (B) has had an opportunity to discuss with management of the Company the intended business and financial affairs of the Company and to obtain information (to the extent the Company possessed such information
or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to it or to which it had access and (C) can bear the economic risk of (x) an investment in the Stock Consideration indefinitely and
(y) a total loss in respect of such investment. The Purchaser has such knowledge and experience in business and financial matters so as to enable it to understand and evaluate the risks of and form an investment decision with respect to its
investment in the Stock Consideration and to protect its own interest in connection with such investment. 
 (d) Brokers and Finders.
Neither the Purchaser nor any of its Affiliates or any of their respective officers, directors, employees or agents have employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or
finder’s fees, and no broker or finder has acted directly or indirectly for the Purchaser, in connection with this Agreement or the transactions contemplated hereby. 

  
 19 

 (e) Ownership. As of the date of this Agreement, neither the Purchaser nor any of its
Affiliates (other than any portfolio company with respect to which the Purchaser is not the Party exercising control over investment decisions) are the owners of record of shares of Common Stock or securities convertible into or exchangeable for
Common Stock. 
 (f) No Public Market. The Purchaser understands that no public market now exists for the Stock Consideration, and
that the Company has made no assurances that a public market will ever exist for the Stock Consideration. 
 (g) Claims. (i) The
Purchaser (A) is the beneficial owner of the aggregate principal amount of the Claims set forth directly across from its name on Schedule 1, or (B) has, with respect to the beneficial owners of such Claims, (1) sole investment or
voting discretion with respect thereto, (2) full power and authority to vote on and consent to matters concerning such Claims or to exchange, assign, and transfer such Claims and (3) full power and authority to bind or act on the behalf
of, such beneficial owners and (ii) other than this Agreement and the other Transaction Documents to which it is a party, the Purchaser is not party to or bound by any contract, option or other arrangement or understanding with respect to the
purchase, sale, delivery, transfer, gift, pledge, hypothecation, encumbrance, assignment or other disposition or acquisition (including by operation of law) of any Claims (or any rights or interests of any nature whatsoever in or with respect to any
Claims), or as to voting, agreeing or consenting (or abstaining therefrom) with respect to any amendment to or waiver of any terms of, or taking any action whatsoever with respect to the Claims. 

(h) Non-Reliance. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES MADE BY THE COMPANY IN
SECTION 2.1, THE PURCHASER HEREBY ACKNOWLEDGES AND AGREES ON BEHALF OF ITSELF AND ITS AFFILIATES AND REPRESENTATIVES THAT IT HAS NOT RELIED UPON ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WITH RESPECT TO THE STOCK
CONSIDERATION OR THE COMPANY OR ANY OF THE COMPANY SUBSIDIARIES OR THEIR RESPECTIVE BUSINESSES, OPERATIONS, ASSETS, LIABILITIES, CONDITION OR PROSPECTS, INCLUDING WITH RESPECT TO (I) ANY FINANCIAL PROJECTION, FORECAST, ESTIMATE,
BUDGET OR PROSPECT INFORMATION RELATING TO THE COMPANY OR ANY OF THE COMPANY SUBSIDIARIES OR THEIR RESPECTIVE BUSINESS, OR (II) ANY ORAL OR WRITTEN INFORMATION PRESENTED TO THE PURCHASER OR ANY OF ITS AFFILIATES OR REPRESENTATIVES
IN THE COURSE OF ITS DUE DILIGENCE INVESTIGATION OF THE COMPANY, THE NEGOTIATION OF THIS AGREEMENT OR IN THE COURSE OF THE TRANSACTIONS CONTEMPLATED HEREBY. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, NOTHING IN THIS AGREEMENT SHALL LIMIT THE
RIGHT OF THE PURCHASER TO RELY ON THE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY CERTIFICATE DELIVERED HEREUNDER, NOR WILL ANYTHING IN THIS AGREEMENT OPERATE TO LIMIT ANY CLAIM BY THE
PURCHASER FOR FRAUD. 

  
 20 

 ARTICLE III 

COVENANTS 

Section 3.1 Filings; Other Actions. 

(a) From the date hereof until the Closing, the Purchaser, on the one hand, and the Company, on the other hand, will cooperate and consult with
the other and use commercially reasonable efforts to prepare and file all necessary documentation, to effect all necessary applications, notices, petitions, filings and other documents, and to obtain all necessary Permits, consents, orders,
approvals and authorizations of, or any exemption by, all third parties and Governmental Entities, and the expiration or termination of any applicable waiting period, required, necessary or advisable to consummate the transactions contemplated by
this Agreement and the other Transaction Documents. Each of the Company and the Purchaser shall execute and deliver both before and after the Closing such further certificates, agreements and other documents and take such other actions as the other
Party may reasonably request to consummate or implement such transactions or to evidence such events or matters. The Company and the Purchaser hereby acknowledge and agree that no approvals or authorizations of, filings or registrations with, or
notifications to, or expiration or termination of any applicable waiting period, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended is required
prior to Closing to consummate the Exchange. 
 (b) The Purchaser and the Company will have the right to review in advance, and to the extent
practicable each will consult with the other, in each case subject to applicable Law relating to the exchange of information, all the information relating to such other Party, and any of their respective Affiliates, which appears in any filing made
with, or written materials submitted to, any third Party or any Governmental Entity in connection with the transactions contemplated by this Agreement. In exercising the foregoing right, the Parties agree to act reasonably and as promptly as
practicable. Each Party hereto agrees to keep the other Party apprised of the status of matters referred to in this Section 3.1. The Purchaser shall promptly furnish the Company, and the Company shall promptly furnish the
Purchaser, to the extent permitted by applicable Law, with copies of material written communications received by it or any of the Company Subsidiaries from, or delivered by any of the foregoing to, any Governmental Entity in respect of the
transactions contemplated by this Agreement. 
 (c) Notwithstanding anything to the contrary in this Agreement, nothing in this
Section 3.1 shall require the Purchaser or any of its Affiliates to (i) hold separate or divest or refrain from acquiring, investing in or otherwise dealing in any property, assets, facilities, business, or equity or
(ii) commit on behalf of itself or any of its Affiliates to any conduct remedies or any amendment, modification or termination of any existing, or entering into any new, contracts with any third parties. 

Section 3.2 Conduct of the Business. 

(a) During the period commencing on the date of this Agreement and ending on the Closing Date, each of the Company and the Company Subsidiaries
will conduct its business in the ordinary course of business and will use commercially reasonable efforts to preserve intact its existence and business organization, Permits, goodwill and present business relationships with all material customers,
suppliers, licensors, distributors and others having significant business relationships with the Company or any Company Subsidiary. During such period, the Company shall provide reasonably prompt written notice to the Purchaser regarding any
material adverse developments in respect of the foregoing. 

  
 21 

 (b) During the period commencing on the date of this Agreement and ending on the Closing
Date, the Company shall promptly provide the Purchaser with all information with respect to the PSA (and the transactions contemplated therein) as reasonably requested by the Purchaser and generally keep the Purchaser reasonably informed of the
status of the transactions contemplated by the PSA promptly as practicable, including providing (i) reasonably prompt oral and written notice of all material developments with respect thereto and (ii) to the extent not duplicative with
preceding clause (i), true, correct and complete copies of (A) any material written notice given by the Company under the PSA to another Party thereto and (B) any material written notice received by the Company
under the PSA from the other parties thereto. 
 Section 3.3 Negative Covenants. From the date of this Agreement through the
Closing, the Company and the Company Subsidiaries shall not, without the prior written consent of the Purchaser: 
 (a) declare, or make
payment in respect of, any dividend or other distribution upon any shares of capital stock of the Company; 
 (b) amend the Articles of
Incorporation, Bylaws or any other Organizational Documents of the Company Subsidiaries other than any amendments pursuant to this Agreement; 

(c) form any new Subsidiary or joint venture; 

(d) (i) sell, assign, transfer, lease or dispose of any properties, rights or assets of the Company or any Company Subsidiary other than the
sale of hydrocarbons in the ordinary course of business or as expressly contemplated by the PSA or (ii) purchase, acquire or invest in any other business or Person (whether by merger, consolidation, share exchange, business combination,
recapitalization, asset or equity acquisition, customer contract purchase, division purchase or otherwise) or enter into any transaction for or acquire any assets, rights, business, securities or other properties of any other Person; 

(e) except pursuant to this Agreement, effect any merger, consolidation, recapitalization, reclassification, equity interest split, combination
or similar change in the capitalization of the Company or the Company Subsidiaries; 
 (f) enter into any contract, arrangement or agreement
that is material to the Company; 
 (g) increase the compensation or benefits payable, or to become payable to, any employee or former
employee, director or individual service providers of the Company, other than increases in salaries and wages and target annual cash bonuses as part of annual merit increases in the ordinary course of business; 

  
 22 

 (h) except as otherwise required by Law, (i) grant any increase in compensation or
benefits to any officer, employee, individual consultant or director of the Company or any Company Subsidiary, (ii) adopt, enter into, amend or terminate any Multiemployer Plan or any plan, agreement, program, policy or other arrangement that
would be a Multiemployer Plan if it were in existence as of the date hereof or any labor contract or voluntarily recognize a labor union, works council or similar organization; (iii) grant any bonus to any current or former officer, employee,
individual consultant or director of the Company or any Company Subsidiary, including any retention, stay or change-in-control bonus, (iv) hire or terminate the
employment of any officer or senior employee of the Company or any Company Subsidiary, other than terminations for “cause”, (v) grant any severance or termination pay to any officer, employee, individual consultant or director of the
Company or any Company Subsidiary, (vi) grant any equity or equity-based awards; (vii) loan or advance money (other than (A) advances for business expenses made in the ordinary course of business that are immaterial in amount,
individually and in the aggregate and (B) advances made in connection with any Multiemployer Plan that is intended to meet the requirements of a “qualified plan” under Section 401(a) of the Code) or other property to any current
or former officer, employee, individual consultant or director of the Company or any Company Subsidiary; or (viii) take any action to accelerate the vesting or payment of or to fund any benefit or payment to any of current or former officer,
employee, individual consultant or director of the Company or any Company Subsidiary; 
 (i) liquidate (either partially or completely),
dissolve or otherwise wind up the affairs of the Company or the Company Subsidiaries; 
 (j) repurchase, redeem or otherwise acquire any
outstanding Equity Securities of the Company or the Company Subsidiaries; 
 (k) mortgage, pledge or subject to a Lien any of the of the
Company’s or the Company Subsidiaries’ assets, rights or properties except for Permitted Liens; 
 (l) incur, assume or guarantee
any indebtedness or make any loans to or invest in any Person; 
 (m) settle or compromise any material action, suit or proceeding with
respect to Company or its properties or assets; 
 (n) authorize, issue, sell, assign, transfer, pledge or grant options, warrants or other
rights to purchase any Equity Securities of the Company or the Company Subsidiaries or authorize or propose the issuance, sale, assignment, transfer, pledge or grant of Equity Securities of the Company or the Company Subsidiaries, other than the
authorization and issuance of (i) the Stock Consideration and (ii) the issuance of Common Stock issued as consideration for the Bakken Sale; 

(o) take any action that would reasonably be expected to have a material adverse effect on the Company’s ability to perform its
obligations under this Agreement and the other Transaction Documents; or 
 (p) agree or commit to take any action described in this
Section 3.3. 

  
 23 

 Section 3.4 Corporate Actions—Certificate. Prior to the Closing, the
Company shall file in the office of the Secretary of State of the State of Nevada the Certificate in the form attached to this Agreement as Exhibit A, with such changes thereto as may be agreed to by the Purchaser and
approved by the Board of Directors. 
 Section 3.5 State Securities Laws. Prior to the Closing, the Company shall use
commercially reasonable efforts to (a) obtain all necessary Permits and qualifications, if any, or secure an exemption therefrom, required by any state or country prior to the offer and sale of the Stock Consideration and (b) cause such
authorization, approval, Permit or qualification to be effective as of the Closing. 
 Section 3.6 PSA; First Lien Release
Agreement. 
 (a) The Company has made available to the Purchaser a true, correct and complete copy of the PSA and the First Lien Release
Agreement (including any amendments thereto). 
 (b) None of the Company or Company Subsidiaries is Party to or bound by any agreement with
the Company’s counterparties to the PSA and the First Lien Release Agreement (or any of their respective Affiliates) that would modify any of the Company’s rights under the PSA or First Lien Release Agreement that has not been made
available to the Purchaser. 
 (c) At or prior to the Closing, without the prior written consent of the Purchaser, the Company shall not make
or agree to make any amendments, supplements, waivers or other modifications to any provision of the PSA or the First Lien Release Agreement in a manner that would be adverse to the Company or the Purchaser or terminate the PSA or the First Lien
Release Agreement without the prior written consent of the Purchaser. 
 Section 3.7 Takeover Statutes(a) . The Company shall
(a) take all actions necessary so that no Takeover Statute is or becomes applicable to the transactions contemplated by this Agreement or the other Transaction Documents and (b) if any such Takeover Statute is or becomes applicable to the
transactions contemplated by this Agreement or the other Transaction Documents, take all action necessary so that the transactions contemplated by this Agreement or the other Transaction Documents may be consummated as promptly as practicable on the
terms contemplated hereby and thereby and otherwise to eliminate or minimize the effect of such Takeover Statute on the transactions contemplated by this Agreement or the other Transaction Documents. 

Section 3.8 Board Size(a) . Immediately following the Closing, the Company and the Board of Directors shall take all actions
necessary to (i) increase the size of the Board of Directors by one (1) director (totaling five (5) directors on the Board of Directors) and (ii) appoint the individuals set forth in Schedule 3 hereto as members of the Board of
Directors. 
 Section 3.9 Management Incentive Program(a) . Promptly after Closing, Purchaser shall cause the Board of Directors
to consider implementation of an appropriate Management Incentive Program for the Company’s executives and other personnel. 

  
 24 

 ARTICLE IV 

ADDITIONAL AGREEMENTS 

Section 4.1 Legend. 

(a) The Purchaser agrees that all certificates or other instruments representing the Stock Consideration subject to this Agreement will bear a
legend substantially to the following effect: 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
 (b) Upon request of the Purchaser, upon receipt by the Company of
an opinion of counsel reasonably satisfactory to the Company to the effect that such legend is no longer required under the Securities Act and applicable state Laws, the Company shall promptly cause the legend to be removed from any certificate for
any Stock Consideration to be transferred in accordance with the terms of this Agreement. The Purchaser acknowledges that the Stock Consideration has not been registered under the Securities Act or under any state securities Laws and agrees that it
will not sell or otherwise dispose of any of the Stock Consideration, except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities Laws. 

(c) In the event that the Stock Consideration is uncertificated, the Company shall give notice of such legend in accordance with applicable
Law. 
 Section 4.2 Tax Matters. The Company and its paying agent shall be entitled to withhold Taxes on all payments or deemed
payments and constructive distributions, on the Stock Consideration to the extent required by Law. The Company and its paying agent shall be entitled to satisfy any required withholding Tax on non-cash
payments (including deemed payments) through a sale of all or a portion of the shares the Purchaser receives as a dividend, from cash dividends subsequently paid or credited to the Purchaser or through a sale of all or a portion of the Common Stock
or otherwise owns. The Company shall use commercially reasonable efforts to notify each holder of Stock Consideration prior to any such withholding, and the Parties shall take any commercially reasonable actions as may be necessary to reduce or
otherwise minimize such withholding. On or prior to the Closing, the Purchaser (or any transferee thereof) shall deliver to the Company or its paying agent a duly executed, valid and properly completed Internal Revenue Service Form W-9 certifying as to a complete exemption from backup withholding. The Company shall not treat the Preferred Stock as preferred stock within the meaning of Section 305 of the Code. 

  
 25 

 ARTICLE V 

MISCELLANEOUS 

Section 5.1 Survival; Limitations on Liability. The representations and warranties of the Company contained in this Agreement
shall survive for a period of twenty four (24) months following the Closing, except (i) the representations and warranties contained in Sections 2.1(a), 2.1(b), 2.1(c), 2.1(e) and
2.1(j), which will survive indefinitely, (ii) the representations and warranties contained in Section 2.1(l), which will survive until the expiration of the applicable statute of limitations, plus
sixty (60) days, and (iii) Sections 2.2(a) and 2.2(b)(i), which will survive indefinitely. All of the covenants or other agreements of the Company to be performed at or prior to the Closing shall survive
for a period of twenty four (24) months following the Closing. All of the other covenants or agreements of the Parties contained in this Agreement shall survive indefinitely until fully performed or performance is no longer required. For
purposes of clarity, all covenants for which performance is required on or prior to Closing shall terminate and shall not survive Closing. The Company shall not be liable hereunder to the Purchaser or any other Person for any punitive, exemplary,
treble, special, indirect, incidental or consequential damages (including any loss of earnings or profits). 
 Section 5.2
Expenses. Each of the Parties will bear and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated pursuant to this Agreement; provided, however, that the Company shall, upon the
earlier of Closing or termination of this Agreement in accordance with Section 5.16 (other than a termination of this Agreement pursuant to Section 5.16(e)), reimburse the Purchaser for the
reasonable, documented out-of-pocket expenses incurred by the Purchaser in connection with the transactions contemplated pursuant to this Agreement (the amount of such
expenses, the “Expense Reimbursement Amount”). 
 Section 5.3 Amendment; Waiver. This Agreement may
be amended, supplemented or modified only by a written instrument duly executed by each Party. No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The conditions to each Party’s obligation to consummate the Closing are for the sole benefit of such Party and may be waived
by such Party in whole or in part to the extent permitted by applicable Law. No waiver of any Party to this Agreement, as the case may be, will be effective unless it is in a writing (electronic mail to suffice) signed by a duly authorized officer
of the waiving Party that makes express reference to the provision or provisions subject to such waiver. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Law. 

Section 5.4 Counterparts. For the convenience of the Parties, this Agreement may be executed in any number of separate
counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement. Executed signature pages to this Agreement may be delivered by facsimile or other means of
electronic transmission and such facsimiles or other means of electronic transmission will be deemed as sufficient as if actual signature pages had been delivered. 

  
 26 

 Section 5.5 Governing Law; Submission to Jurisdiction. This Agreement will be
governed by and construed in accordance with the Laws of the State of New York, without giving effect to any choice or conflict of law provision or rule (whether in the State of New York or any other jurisdiction) that would cause the application of
the Laws of any jurisdiction other than the State of New York. The Parties hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the district courts located in the State of New York, or in the event (but only in
the event) that such court shall not have subject matter jurisdiction, any federal court of the United States or other state court located in the State of New York, for any actions, suits or proceedings arising out of or relating to this Agreement
and the transactions contemplated hereby. Each Party to this Agreement hereby irrevocably waives any defense in any such action, suit or proceeding that it is not personally subject to the jurisdiction of the above named courts and to the fullest
extent permitted by applicable Law, that the action, suit or proceeding in any such court is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. 

Section 5.6 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 5.7 Notices.
Any notice, request, instruction or other document to be given hereunder by any Party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally or by telecopy, electronic mail
or facsimile, upon confirmation of receipt (it being understood that the Parties agree to provide confirmation of receipt immediately upon the receipt of any notice by telecopy, electronic mail or facsimile), (b) on the first business day
following the date of dispatch if delivered by a recognized next-day courier service, or (c) on the third business day following the date of mailing if delivered by registered or certified mail, return
receipt requested, postage prepaid. The Purchaser agrees that any notice required or permitted by this Agreement or under the Articles of Incorporation (including the Certificate), the Bylaws, the Nevada Act or other applicable Law may be given to
the Purchaser at the address or by means of electronic transmission as set forth below The Purchaser further agrees to notify the Company of any change to the Purchaser’s electronic mail address, and further agrees that the provision of such
notice to the Company shall constitute the consent of the Purchaser to receive notice at such electronic mail address. In the event that the Company is unable to deliver notice to the Purchaser at the electronic mail address so provided by the
Purchaser, the Purchaser shall, within two (2) business days after a request by the Company, provide the Company with a valid electronic mail address to which the Purchaser consents to receive notice at such electronic mail address. All notices
hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice. 

If to the Purchaser: 
 AG Energy
Funding, LLC 
 245 Park Avenue, 26th Floor 

New York, NY 10167 
 Attn: Scott
McMurtry; Damon Putman; Daniel Baddeloo 

  
 27 

 E-mail: smcmurtry@angelogordon.com;
dputman@angelogordon.com; 
 dbaddeloo@angelogordon.com 

with a copy to (which copy shall not constitute notice): 

Simpson Thacher & Bartlett LLP 

425 Lexington Avenue 
 New York,
New York 10017 
 Attention: Nicholas Baker 

Email: NBaker@stblaw.com 
 -and-

 Simpson Thacher & Bartlett LLP 

600 Travis Street, Suite 5400 

Houston, Texas 77002 

Attention: Shamus Crosby 

Email: Shamus.Crosby@stblaw.com 
  

	 	(a)	 If to the Company: 

Abraxas Petroleum Corporation 

18803 Meisner Drive 
 San
Antonio, TX 78258 
 Attn: Robert L.G. Watson 

E-mail: bwatson@abraxaspetroleum.com 

with a copy to (which copy shall not constitute notice): 

Dykema Gossett PLLC 
 112 East
Pecan Street, Suite 1800 
 San Antonio, TX 78205 

Attn: James B. Smith, Jr. 
 E-mail: jsmith@dykema.com 
 Section 5.8 Entire Agreement. This Agreement (including the
Exhibits and schedules hereto) and the Company Disclosure Schedule constitute the entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, among the Parties, with
respect to the subject matter hereof. 
 Section 5.9 Assignment. Neither this Agreement, nor any of the rights, interests or
obligations hereunder shall be assigned by either of the Parties (whether by operation of law or otherwise) without the prior written consent of the other Party, provided, however, that the Purchaser may assign its rights, interests
and obligations under this Agreement, in whole or in part, to one or more of its Affiliates; provided, that in order for such assignment to be effective, the assignee shall agree in writing to be bound by the provisions of this
Agreement; provided further, that no such assignment will relieve the Purchaser of its obligations hereunder prior to the Closing. 

  
 28 

 Section 5.10 Interpretation; Other Definitions. Wherever required by the context
of this Agreement, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine and neutral genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer to such
agreement, document or instrument as amended, supplemented or modified from time to time. All article, section, paragraph or clause references not attributed to a particular document shall be references to such parts of this Agreement, and all
exhibit, annex and schedule references not attributed to a particular document shall be references to such exhibits, annexes and schedules to this Agreement. In addition, the following terms are ascribed the following meanings: 

(a) the word “or” is not exclusive; 

(b) the words “including,” “includes,” “included” and
“include” are deemed to be followed by the words “without limitation”; 
 (c) the terms
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision; 

(d) the terms “Dollars” and “$” mean United States Dollars, unless otherwise noted; 

(e) references herein to any Person shall include such Person’s heirs, executors, personal representatives, administrators, successors and
assigns; provided, however, that nothing contained in this clause (e) is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; 

(f) references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity; 

(g) with respect to the determination of any period of time, the word “from” means “from and including” and
the words “to” and “until” each means “to but excluding”; 
 (h)
“extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and such phrase does not mean simply “if”; 

(i) the term “business day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a
day on which banking institutions in the State of New York generally are authorized or required by Law or other governmental action to close; and 

(j) the term “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 

  
 29 

 (k) “Affiliate” means, with respect to any Person, any other Person
that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. Notwithstanding the foregoing, for purposes of this Agreement, (a) the
Company and the Company Subsidiaries, on the one hand, and the Purchaser, on the other, shall not be considered Affiliates, (b) with respect to the Purchaser, any other investment fund, investment account or investment company that is managed,
advised or sub-advised by the same investment advisor as the Purchaser or by an Affiliate of such investment advisor, shall be considered controlled by, and an Affiliate of, the Purchaser and (c) no
portfolio company (as such term is customarily used in the private equity industry) of the Purchaser or any of its Affiliates shall be considered or otherwise deemed to be an Affiliate thereof (other than for purposes of
Section 2.1(aa) and Section 3.1(c)). 
 (l) “Company Disclosure
Schedules” means the disclosure schedule prepared by the Company attached to this Agreement. 
 (m) “Company Material
Adverse Effect” shall mean any event, condition, change, development, circumstance or set of facts that, individually or in the aggregate with any other such events, changes, developments, or occurrence, (i) has had or would
reasonably be expected to have a material adverse effect on the business, condition (financial or otherwise), assets, liabilities, properties, prospects or results of operations of the Company and the Company Subsidiaries, taken as a whole or
(ii) materially impairs the ability of the Company to perform its obligations under this Agreement; provided, however, that in the case of clause (i) above, the term “Company Material Adverse Effect”
shall not include effects (except, in the case of clauses (A), (B), (C), (D), (E) and (G) below, to the extent such effects have a disproportionate materially adverse impact on the
business of the Company and the Company Subsidiaries relative to the businesses of other persons operating in the same industry and geographic area in which the Company and the Company Subsidiaries operate) resulting from (A) general changes in
oil and gas prices; (B) general changes in economic or political conditions or markets; (C) changes in condition or developments (including changes in applicable Law) generally applicable to the oil and gas industry; (D) acts of God,
including storms and natural disasters; (E) the outbreak or escalation of hostilities involving the United States, the declaration by the United States of a national emergency or war, civil unrest or similar disorder or terrorist acts;
(F) any occurrence, condition, change, event or effect resulting from or relating to the announcement or pendency of the transactions contemplated this Agreement and the other Transaction Documents; (G) any change in GAAP, or in the
interpretation thereof; (H) any occurrence, condition, change, event or effect resulting from compliance by the Company with the terms of this Agreement or the PSA; (I) any change in the credit rating and/or outlook of any of the Company,
the Company Subsidiaries or any of their securities (except that the underlying causes of any such changes may be considered in determining whether a Company Material Adverse Effect has occurred); (J) changes in the market price or trading
volume of the Company’s securities (except that the underlying causes of any such changes may be considered in determining whether a Company Material Adverse Effect has occurred); (K) any failure of the Company to meet any internal or
external projections, forecasts or estimates of revenue or earnings for any period (except that the underlying causes of any such failures may be considered in determining whether a Company Material Adverse Effect has occurred) and (L) any
action taken by the Purchaser or any of its Affiliates, other than as required by this Agreement, or actions expressly permitted by this Agreement or taken with the written consent of the Purchaser. 

  
 30 

 (n) “Equity Securities” means the equity securities of the Company,
including shares of Common Stock and Preferred Stock. 
 (o) “First Lien Agent” means Société
Générale in its capacity as administrative agent under the First Lien Debt Agreement, together with any successors thereto 

(o) “First Lien Debt Agreement” means the Third Amended and Restated Credit Agreement dated as of June 11, 2014,
by and among the Company, the financial institutions party thereto as Lenders (as defined therein), the Issuing Lender (as defined therein), and the First Lien Agent, as amended, supplemented or otherwise modified from time to time. 

(p) “Good and Marketable Title” means title that: (i) with respect to the oil and gas properties, is deducible of
record from the records of the applicable county; (ii) does not materially restrict the ability of the Company to use the properties as currently intended; and (iii) is free and clear of all Liens, except for Permitted Liens. 

(q) “Hazardous Substance” means (A) petroleum and petroleum products, by-
products or breakdown products, radioactive materials, asbestos containing materials, polychlorinated biphenyls and mold, and (B) any other chemical, material or substance defined or regulated as toxic or hazardous or as a pollutant,
contaminant or waste under Environmental Laws. 
 (r) “Knowledge of the Company” means the actual knowledge (after
reasonable inquiry) of the managers of the Company with direct supervisory responsibility for the matters in question. 
 (s)
“Law” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance, code, order, edict, decree, rule, regulation, ruling or requirement issued,
enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity, including any international, foreign, national, state, provincial, regional, or local authority, relating to pollution, the
protection of occupational health and workplace safety, the environment, or natural resources, or to use, handling, storage, manufacturing, transportation, treatment, discharge, disposal or release of hazardous or toxic substances or wastes,
pollutants or contaminants applicable to such entity, which compliance includes, without limitation, obtaining, maintaining and complying with all permits and authorizations and approvals required by such to conduct its business. 

(t) “Lien” means any mortgage, claim, deed of trust, pledge, hypothecation lien, license, charge, adverse ownership
claim or interest, option, right of way, easement, restriction on transfer, including right of first refusal, encumbrance, encroachment, financing statement, hypothecation, security interest, easement, plat restriction or deed restriction. 

  
 31 

 (u) “Permitted Liens” means (i) Liens for taxes that are not
yet due and payable or the amount or validity of which is being contested in good faith through (if then appropriate) appropriate proceedings and for which adequate reserves under GAAP have been established in the financial statements of the Company
and its consolidated Subsidiaries; (ii) mechanics’, operators’, statutory and similar liens arising or incurred in the ordinary course of business of the Company that are not yet due and payable; (iii) operating agreements, unit
agreements, unitization and pooling designations and declarations, gathering and transportation agreements, processing agreements, gas, oil and liquids purchase, sale and exchange agreements and other contracts, agreements and installments that do
not materially interfere with the operation of the oil and gas properties; (iv) easements, surface leases and rights, plat restrictions, pipelines, grazing, logging, canals, ditches, reservoirs, telephone lines, power lines, railways and
similar encumbrances that do not materially interfere with the operation of the oil and gas properties or materially impair the value thereof; and (v) Liens, charges, encumbrances and irregularities in the chain of title which, because of
remoteness in or passage of time, statutory cure periods, marketable title acts or other similar reasons, have not materially affected or interrupted, and are not reasonably expected to materially affect or interrupt, the claimed ownership of the
Party or the receipt of production revenues from the oil and gas properties affected thereby. 
 (v)
“Representatives” means, with respect to any Person, such Person’s directors, officers, employees, agents, consultants and advisors. 

(w) “Second Lien Debt” means that certain Term Loan Credit Agreement, dated as of November 13, 2019, by and among
the Company, the financial institutions party thereto as Lenders, and Angelo Gordon Energy Servicer, LLC, as administrative agent, as amended, supplemented or otherwise modified from time to time. 

(x) “Second Lien Debt Agreement” means that certain Term Loan Credit Agreement, dated as of November 13, 2019, by
and among the Company, the financial institutions party thereto as Lenders, and Angelo Gordon Energy Servicer, LLC, as administrative agent. 

(y) “Takeover Statutes” means any “business combination,” “control share acquisition,” “fair
price,” “moratorium” or other takeover or anti-takeover statute or similar Law. 
 (z) “Tax” or
“Taxes” means (a) any federal, state, provincial, local, foreign or other tax (including any income tax, franchise tax, capital gains tax, gross receipts tax, value- added tax,
surtax, estimated tax, excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax, property tax, withholding tax or payroll tax), and any related fine, penalty or interest, imposed, assessed or collected by or under the authority of any
governmental body, whether disputed or not, and (b) any liability for the payment of amounts with respect to payment of a type described in clause (a), including (i) as a result of being a member of an affiliated, consolidated,
combined or unitary group (including pursuant to Treasury Regulation 1.1502- 6(b)), (ii) as a result of succeeding to such liability as a result of merger, conversion or asset transfer, and
(iii) as a result of any obligation under any Tax sharing, Tax allocation, Tax indemnity or similar agreement or arrangement. 
 (aa)
“Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto and any amendment thereof. 

(bb) “Transaction Documents” means this Agreement, the Certificate, the First Lien Release Agreement, the Second Lien
Forbearance, and the PSA (and the other documents or instruments contemplated to be executed by the Company or any of its subsidiaries pursuant to the foregoing). 

  
 32 

 (cc) “Treasury Regulation” means the regulations promulgated under
the Code, by the United States Department of the Treasury, as such regulations may be amended from time to time. All references herein to specific sections of the regulations shall be deemed also to refer to any corresponding provisions of
succeeding regulations, and any reference to temporary regulations shall be deemed also to refer to any corresponding provisions of final regulations. 

Section 5.11 Interpretation; Captions. The article, section, paragraph and clause captions herein are for convenience of reference
only, do not constitute part of this Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation
against the party drafting an instrument or causing any instrument to be drafted. The Company Disclosure Schedule and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were
set forth verbatim herein. Whenever this Agreement refers to a number of days, such number of days shall refer to calendar days unless business days are specified. If business days are specified and the day the action is to be taken is not a
business day, such action shall be valid if taken on the next successive business day. 
 Section 5.12 Severability. If any
provision of this Agreement or the application thereof to any Person (including the officers and directors the Parties hereto) or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to Persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated
thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon
a suitable and equitable substitute provision to effect the original intent of the Parties. 
 Section 5.13 No Third Party
Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any Person other than (i) the Parties (and their permitted assigns) and (ii) each Non-Recourse
Party pursuant to this Section 5.13 and Section 5.18, any benefit right or remedies. 

Section 5.14 Public Announcements. Any initial press release with respect to this Agreement and the transactions contemplated
hereby shall be mutually agreed upon by the Company and the Purchaser. Thereafter, the Company and the Purchaser shall consult with each other and provide each other with the opportunity to review and comment upon any press release or other public
statements with respect to the transactions contemplated hereby or this Agreement and the Company and the Purchaser shall not, and shall cause their respective Affiliates not to, issue any such other press release or other public statements prior to
such consultation, except as may be required by applicable Law, in which case the Party proposing to issue such press release or make such public announcement shall use commercially reasonable efforts to consult in good faith with the other Party
and provide the other Party with an opportunity to review and comment on the content of the proposed disclosure, which comments such Party shall consider in good faith, acting reasonably, before issuing any such press release or making any such
public announcement; 

  
 33 

 
provided that no Party will issue any press release or other public statement that attributes comments to the other Party statement (or portion thereof) without the prior written approval
of the other Party. Notwithstanding the foregoing, and for the avoidance of doubt: (i) the Parties may disclose the transactions contemplated hereby to the indirect and direct equity holders, partners and prospective partners or equity holders
of any Party and its Affiliates provided that such recipients agree to maintain the information with the same confidentiality protections as the disclosing Party, (ii) the Parties may disclose the transactions contemplated hereby to
Governmental Entities in connection with obtaining any approvals required under Section 2.1(c)(iv) and (iii) the direct or indirect equityholders of the Purchaser and their respective Affiliates may disclose
information about the subject matter of this Agreement in connection with their normal fund raising, marketing, informational or reporting activities. 

Section 5.15 Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement and the transactions contemplated hereby were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that, without the necessity of posting bond or other undertaking (any
requirement for which all Parties hereby waives), the Parties shall be entitled to specific performance of the terms hereof, this being in addition to any other remedies to which they are entitled at law or equity, and in the event that any action
or suit is brought in equity to enforce the provisions of this Agreement, no Party will allege, and each Party hereby waives the defense or counterclaim, that there is an adequate remedy at law. A Party shall be entitled to an injunction or
injunctions to prevent breaches of any covenants, agreements or obligations contained in this Agreement and, in the event that any action is brought in equity to enforce such covenants or agreements, neither Party shall allege, and each Party hereby
waives the defense or counterclaim, that there is an adequate remedy at law. 
 Section 5.16 Termination. Subject to
Section 5.1, this Agreement will survive the Closing so long as any shares of Stock Consideration are outstanding. Prior to the Closing, this Agreement may only be terminated: 

(a) by mutual written agreement of the Company and the Purchaser; 

(b) by either Party, upon written notice to the other Party in the event that the Closing shall not have occurred on or before January 14,
2022 (the “Outside Date”); provided, however that the right to terminate this Agreement pursuant to this Section 5.16(b) shall not be available to any Party whose failure to fulfill any
obligations under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date; 

(c) by either the Company or the Purchaser as to itself if a United States court of competent jurisdiction shall permanently enjoin the
consummation of the Exchange and such injunction shall be final and non-appealable; 
 (d) without
any action by either Party, if the PSA, First Lien Release Agreement, or Second Lien Forbearance is terminated in accordance with its terms at any time prior to the Closing; 

  
 34 

 (e) by notice given by the Company to the Purchaser, if the Company is not then in material
breach of any provision of this Agreement and if there have been one or more material inaccuracies in or material breaches of one or more representations, warranties, covenants or agreements made by the Purchaser in this Agreement such that the
conditions in Section 1.3(c)(i) or Section 1.3(c)(ii) would not be satisfied by the Outside Date (other than through the Company’s failure to comply with its obligations under this Agreement)
and which have not been cured by the Purchaser thirty (30) days after receipt by the Purchaser of written notice from the Company requesting such inaccuracies or breaches to be cured (or any shorter period of time that remains between the date
the Company provides written notice of such violation or breach and the Outside Date); or 
 (f) by notice given by the Purchaser to the
Company, if the Purchaser is not then in material breach of any provision of this Agreement and if there have been one or more material inaccuracies in or material breaches of one or more representations, warranties, covenants or agreements made by
the Company in this Agreement such that the conditions in Section 1.3(b)(i) or 1.3(b)(ii) would not be satisfied by the Outside Date (other than through the Purchaser’s failure to comply with its obligations
under this Agreement) and which have not been cured by the Company within thirty (30) days after receipt by the Company of written notice from the Purchaser requesting such inaccuracies or breaches to be cured (or any shorter period of time
that remains between the date the Purchaser provides written notice of such violation or breach and the Outside Date). 
 Section 5.17
Effects of Termination. Subject to Sections 3.3 and 5.2, in the event of any termination of this Agreement in accordance with Section 5.16, no Party (or any of its Affiliates) shall
have any liability or obligation to the other Party (or any of its Affiliates) under or in respect of this Agreement, except to the extent of (A) any liability arising from any breach by such Party of its obligations of this Agreement arising
prior to such termination and (B) any fraud or intentional or willful breach of this Agreement. In the event of any such termination, this Agreement shall become void and have no effect, and the transactions contemplated hereby shall be
abandoned without further action by the Parties, in each case, except (x) as set forth in the preceding sentence and (y) that the provisions of Section 3.3 and this Article V shall remain
in full force and effect and shall survive any termination of this Agreement. None of the Parties or any of their respective Affiliates shall have any liability with respect to any representation, warranty, covenant or agreement from and after the
time that such representation or warranty ceases to survive hereunder. 
 Section 5.18
Non-Recourse. This Agreement may only be enforced against, and any claims or causes of action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or
performance of this Agreement may only be made against the entities that are expressly identified as Parties, including entities that become a Party after the date hereof or that agree in writing for the benefit of the Company to be bound by the
terms of this Agreement applicable to the Purchaser, and then only with respect to the specific obligations set forth in this Agreement applicable to such Party, and no former, current or future equityholders, controlling Persons, directors,
officers, employees, agents or Affiliates of any Party hereto or any former, current or future equityholder, controlling Person, director, officer, employee, general or limited partner, member, manager, agent or Affiliate of any of the foregoing
(each, a “Non-Recourse Party”) shall have any liability for any obligations or liabilities of the Parties to this Agreement

  
 35 

 
or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, the transactions contemplated hereby or in respect of any representations made or alleged to be
made in connection herewith. Without limiting the rights of any Party against the other Party, in no event shall any Party or any of its Affiliates seek to enforce this Agreement against, make any claims for breach of this Agreement against, or seek
to recover monetary damages from, any Non-Recourse Party. To the extent permitted by Law, each Party hereby (i) waives and releases all such claims, causes of action, liabilities and other obligations
against any such Non-Recourse Parties, (ii) waives and releases any and all claims, causes of action, rights, remedies, demands or actions that may otherwise be available to avoid or disregard the entity
form of a Party or otherwise impose the liability of a Party on any Non-Recourse Party, whether granted by law or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham,
single business enterprise, piercing the veil, unfairness, undercapitalization or otherwise, and (iii) disclaims any reliance upon any Non-Recourse Parties with respect to the performance of this
Agreement, the other Transaction Documents and any representation or warranty made in, in connection with or as an inducement hereto or thereto. 

[Signature Page Follows.] 

  
 36 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized officers of the Parties as of the date first herein above written. 
  

			
	ABRAXAS PETROLEUM CORPORATION
		
	By:	 	 /s/ Robert L. G. Watson

	Name:	 	Robert Watson
	Title:	 	Chief Executive Officer

 [Signature Page to Exchange Agreement] 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized officers of the Parties as of the date first herein above written. 
  

			
	AG ENERGY FUNDING, LLC
		
	By:	 	 /s/ Todd Dittmann

	Name:	 	Todd Dittmann
	Title:	 	Authorized Signatory

  
 [Signature Page to
Exchange Agreement]EX-10.4

 Exhibit 10.4 

Execution Version 

AMENDMENT NO. 2 TO FORBEARANCE AGREEMENT 

This Amendment No. 2 to Forbearance Agreement (this “Agreement”) dated as of January 3, 2022, is among Abraxas
Petroleum Corporation, a Nevada corporation (the “Borrower”), the undersigned Guarantors (the “Guarantors”), the undersigned Lenders (as defined below), and Angelo Gordon Energy Servicer, LLC, as Administrative
Agent for the Lenders (in such capacity, the “Administrative Agent”). 
 INTRODUCTION 

A. The Borrower, the financial institutions party thereto as Lenders (the “Lenders”), and the Administrative Agent have
entered into the Term Loan Credit Agreement dated as of November 13, 2019 (as amended, supplemented or otherwise modified, the “Credit Agreement”). 

B. Reference is made to that certain Term Loan Guaranty Agreement made by the Guarantors in favor of the Administrative Agent dated as of
November 13, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified, the “Guaranty”). 

C. Reference is further made to that certain Forbearance Agreement dated as of March 31, 2021 among the Borrower, the Guarantors, the
Lenders party thereto, and the Administrative Agent, as amended by the Agreement, Amendment to Forbearance Agreement, and Amendment No. 4 to Credit Agreement, dated as of April 28, 2021, among the Borrower, the Guarantors, the Lenders
party thereto, and the Administrative Agent (as so amended, the “Forbearance Agreement”), pursuant to which the Lenders party thereto agreed to temporarily forbear from exercising certain remedies against the Borrower and the other
Loan Parties with respect to the Specified Events of Default (as defined in the Forbearance Agreement). 
 D. Reference is further made to
that certain Notice of Default and Reservation of Rights, dated April 16, 2021 (the “Notice of Default”), delivered by the Administrative Agent to the Borrower, informing the Borrower of certain Existing Events of Default (as
defined in the Notice of Default), accelerating all Obligations under, and as defined in, the Credit Agreement, and reserving all rights of the Administrative Agent and the Lenders. 

E. The Borrower has requested, and the Administrative Agent and the Lenders have agreed, subject to the terms and conditions set forth herein,
to (i) continue the temporary forbearance period under the Forbearance Agreement, and (ii) amend certain other terms of the Forbearance Agreement. 

F. The Borrower and the Guarantors wish to reaffirm their guarantees of and Liens supporting the Obligations. 

G. The Administrative Agent, the Lenders, and the lenders under the Revolving Credit Agreement (the “Revolving Lenders”) and
Société Générale, as administrative agent under the Revolving Credit Agreement (the “RBL Agent”) have agreed to support the sale of the Assets (as defined in the Asset Purchase Agreement between the
Borrower and Lime Rock Resources V, L.P. (the “Buyer”), in the form of Exhibit A hereto (with any modifications thereto as are reasonably acceptable to the Administrative Agent and the Lenders) (the “APA”))
to the Buyer, on the terms and conditions set forth herein and the APA. 
 H. Subject to the terms and conditions set forth herein, the
Administrative Agent and the Lenders have agreed to release their liens and security interests on the Assets in connection with the consummation of the transactions contemplated thereby and hereby. 

 I. The Revolving Lenders and Swap Counterparties (as defined in the Revolving Credit
Agreement) have agreed that if the transactions contemplated by the APA are consummated and the Net Sale Proceeds (defined below) and other cash of the Borrower are applied to the 1L Obligations in accordance with the terms hereof, among other
conditions precedent, the Revolving Lenders and Swap Counterparties will settle, extinguish and forever release 100% of the remaining 1L Obligations, on and subject to the terms and conditions set forth in the Settlement and Lien Release Agreement
(defined below). 
 THEREFORE, the Borrower, the Guarantors, the Administrative Agent, and the undersigned Lenders hereby agree as follows:

 Section 1. Definitions; References. All capitalized terms not otherwise defined in this Agreement that are defined in the
Credit Agreement shall have the meanings assigned to such terms by the Credit Agreement. 
 Section 2. Amendments to Forbearance
Agreement. 
 (a) The first paragraph of Section 2(b) of the Forbearance Agreement is hereby amended by replacing “May 6,
2021” with “January 14, 2022”. 
 (b) The definition of “Forbearance Termination Event” set forth in
Section 2(b) of the Forbearance Agreement is hereby amended by deleting “and” from the end of clause (viii), replacing the period at the end of clause (ix) with “;” and inserting the following new clauses (x), (xi),
(xii), (xiii) and (xiv) thereto: 
 (x) the APA shall fail to be fully-executed and in full force and effect on or
before January 14, 2022; 
 (xi) the Closing Date (as defined in the APA) does not occur on or before
January 14, 2022; 
 (xii) either of the Borrower or the Buyer (x) terminates the APA for any reason before
the consummation of the transactions contemplated therein or (y) refuses to consummate or otherwise abandons the transactions contemplated under the APA before January 14, 2022; and 

(xiii) the Revolving Lenders, the Swap Counterparties or the RBL Agent exercise any rights or remedies against the Borrower
or its assets as a result of Events of Default under and as defined in the Revolving Credit Agreement; and 
 (xiv)
the Settlement and Lien Release Agreement (as defined in the Second Forbearance Amendment) is amended, modified, supplemented, or the terms thereof waived, or is terminated or no longer in full force and effect. 

(c) The following definitions are hereby added: 

  
 -2- 

 “Closing Date Claims Amount” means, as calculated before the
application of payments to the outstanding 1L Obligations pursuant to Section 3(a)(v)(c) of the Second Forbearance Amendment, (i) the aggregate outstanding principal amount of the Advances under the Revolving Credit
Agreement as of the Closing Date (as defined in the APA), plus (ii) the aggregate outstanding principal amount of the Swap Termination Amounts (as defined in the Second Forbearance Amendment) as of the Closing Date; provided that, for
purposes of calculating clause (ii) of the definition of Closing Date Claims Amount, in calculating the aggregate Hedge Termination Claims, the claims arising under the EWB Hedge Contract (as defined in the Second Forbearance Amendment) shall
not exceed the EWB Hedge Contract Cap (as defined in the Second Forbearance Amendment). 
 “EWB Hedge Contract
Cap” means $3,500,000. 
 “Second Forbearance Amendment” means Amendment
No. 2 to Forbearance Agreement, dated as of January 3, 2022, among the Borrower, the Guarantors party thereto, the Lenders party thereto and the Administrative Agent. 

“Specified Hedge Contracts” means the following Hedge Contracts: (i) the ISDA Master Agreement dated as of
June 21, 2007, between the Borrower and Société Générale (together with any amendments or modifications thereto and any schedules and exhibits thereto and confirmations thereunder), (ii) the ISDA Master Agreement
dated as of January 4, 2017, between the Borrower and Associated Bank, National Association (together with any amendments or modifications thereto and any schedules and exhibits thereto and confirmations thereunder), (iii) the ISDA Master
Agreement dated as of April 17, 2019, between the Borrower and East West Bank (together with any amendments or modifications thereto and any schedules and exhibits thereto and confirmations thereunder, the “EWB Hedge
Contract”), and (iv) the ISDA Master Agreement dated as of December 2, 2019, between the Borrower and Morgan Stanley Capital Group Inc. (together with any amendments or modifications thereto and any schedules and exhibits thereto
and confirmations thereunder). 
 “Swap Termination Amounts” means all unpaid termination amounts in respect of any
Specified Hedge Contract (including, without limitation, all amounts payable by the Borrower to a Swap Counterparty resulting from any consensual termination or unwind of transactions under any Specified Hedge Contract). 

(d) A new “Exhibit A” is hereby attached to the Forbearance Agreement in the form of Exhibit A hereto. 

Section 3. Sale Transaction. 

a) Without limitation of Section 2(b) of the Forbearance Agreement (as amended hereby) and notwithstanding anything
to the contrary in Credit Agreement or any other Loan Document, the Borrower hereby agrees that: 
  

	 	(i)	 it shall (x) execute the APA on or before January 14, 2022 and (y) deliver a copy of the fully
executed APA to the Administrative Agent promptly after execution thereof; 

  

	 	(ii)	 it shall not agree or otherwise consent to any amendment, restatement, supplement, modification or replacement
of the APA without the prior written consent of the Administrative Agent; 

  
 -3- 

	 	(iii)	 it shall consummate the transactions contemplated by the APA on or before January 14, 2022;

  

	 	(iv)	 100% of the proceeds of the sale of the Assets paid to the Borrower (or its subsidiaries) on the Closing Date
plus the amount of any Deposit (as defined below) (the “Net Sale Proceeds”), but not to exceed the Distribution Cap referenced below, shall be immediately deposited in a deposit account designated by the RBL Agent to the Borrower in
writing before the Closing Date; 

  

	 	(v)	 on the Closing Date, the Borrower shall apply the Net Sale
Proceeds plus, solely to the extent such Net Sale Proceeds are insufficient, cash on the Borrower’s balance sheet in excess of $2,000,000, to repay the 1L Obligations in the following order: 

 

	 	(a)	 first, to all accrued and unpaid interest at the default rate specified in the Revolving Credit Agreement on
the 1L Obligations outstanding as of the Closing Date (including, without limitation, all accrued and unpaid interest on the Swap Termination Amounts at the rate equal to the interest rate applicable to Reference Rate Advances under and as defined
in the Revolving Credit Agreement plus the Default Amount (as defined in the Revolving Credit Agreement); 

  

	 	(b)	 second, to all reasonable and documented professional fees of the RBL Agent and the Revolving Lenders for which
invoices are delivered no later than one Business Day prior to the Closing Date and which are due and payable as provided in the Settlement and Lien Release Agreement or the Revolving Credit Agreement as of the Closing Date; and

  

	 	(c)	 last, to repay outstanding principal of the Advances under the Revolving Credit Agreement and the Hedge
Termination Claims in accordance with the Revolving Credit Agreement; provided that, the aggregate amount to be paid under this clause (c) shall not exceed the product of the Closing Date Claims Amount multiplied by 95% (the
“Distribution Cap”); and 

  

	 	(vi)	 on the Closing Date, if the amount received by the RBL Agent under clause (c) above is less than the
Distribution Cap, the Borrower shall, or shall cause one or more of its Affiliates to, pay to the RBL Agent the difference between the amount received by the RBL Agent under clause (c) above and the Distribution Cap. 

b) The Administrative Agent and the Lenders hereby agree that, on the Closing Date and subject to the RBL Agent’s receipt of the Net Sale
Proceeds (not to exceed the Distribution Cap), the Administrative Agent and the Lenders shall fully, completely and irrevocably release all of their Liens, claims and other encumbrances on the Assets such that the Buyer shall obtain such Assets free
and clear of all Liens, claims and encumbrances of the Administrative Agent and the Lenders. 
 c) Without limitation of the Liens granted
by the Borrower to the Administrative Agent under the Security Agreement, in consideration of the forbearances and other accommodations granted by the Administrative Agent and the Lenders hereunder and under the Forbearance Agreement and as
collateral security for the prompt and complete payment and performance when due of all Obligations, the Borrower hereby assigns, pledges, and grants to the Administrative Agent, for the benefit of the Secured Parties, subject to the priorities set
forth in the Intercreditor Agreement, a lien on and continuing security interest in all the Borrower’s right, title and interest in, to and under, the following items, whether now owned or hereafter acquired by the Borrower and wherever located
and whether now owned or hereafter existing or 

  
 -4- 

 
arising: the APA, any escrow agreement entered into between the Buyer and Seller in connection with the APA, any deposit made by the Buyer in favor of the Seller in connection with the APA (any
such depost, the “Deposit”), and all proceeds and products of any and all of the foregoing and all other payments now or hereafter due and payable with respect to, and guarantees and supporting obligations relating to, any and all
of the foregoing and, to the extent not otherwise included, all payments of any indemnity, warranty or guaranty in respect to any of the foregoing. The Borrower shall use commercially reasonable efforts to cause the account in which the Deposit is
maintained during the escrow period to be subject to an account control agreement in favor of the RBL Agent and Administrative Agent. 
 d)
If the APA is terminated and the Borrower is entitled to retain the Deposit, if any, in accordance with the terms of the APA, the Borrower shall cause the full amount of such Deposit to be delivered to the RBL Agent immediately upon the release of
such Deposit from escrow and the Borrower hereby agrees that the RBL Agent may apply the full amount of such Deposit to the outstanding 1L Obligations in accordance with the terms of such document as in effect on the date hereof. 

e) The Borrower and each Guarantor hereby agree that, following the occurrence of the Closing Date under the Settlement and Lien Release
Agreement and the related transfer of claims to the Lenders, they shall, immediately upon receipt, cause all sale proceeds and any other amounts received by them under or in respect of the APA after the Closing Date to be delivered to the
Administrative Agent, and the Borrower hereby agrees that the Administrative Agent may apply the full amount thereof first to any remaining 1L Obligations until the 1L Obligations are paid in full in cash and then to the outstanding Obligations
until such amounts are paid in full in cash. 
 Section 4. Reaffirmation of Liens and Guaranty. Each of the Borrower and each
Guarantor (i) is party to certain Security Instruments securing and supporting the Borrower’s and Guarantors’ obligations under the Loan Documents, (ii) represents and warrants that according to their terms the Security
Instruments will continue in full force and effect to secure the Borrower’s and Guarantors’ obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified, and (iii) acknowledges, represents, and
warrants that the liens and security interests created by the Security Instruments and this Agreement are valid and subsisting and create an Acceptable Security Interest in the Collateral to secure the Borrower’s and Guarantors’
obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified. Each Guarantor hereby ratifies, confirms, and acknowledges that its obligations under the Guaranty are in full force and effect and that such
Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, of all of the Obligations. Each Guarantor hereby acknowledges that its
execution and delivery of this Agreement do not indicate or establish an approval or consent requirement by such Guarantor under the Guaranty in connection with the execution and delivery of amendments, modifications or waivers to the Credit
Agreement, the Notes or any of the other Loan Documents. 
 Section 5. Representations and Warranties. Each of the Borrower and
each Guarantor represents and warrants to the Administrative Agent and the Lenders that: 
 (a) the representations and warranties set forth
in the Credit Agreement, the Guaranties and in the other Loan Documents (other than Section 7.14(b) of the Credit Agreement or any other representation and warranty relating solely to the existence of a Default or Event of Default that is
untrue due to the existence of the Specified Events of Default) are true and correct in all material respects as of the date of this Agreement (except to the extent such representations and warranties relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material respects as of such earlier date); provided, that such materiality qualifier shall not apply if such representation or warranty is already subject to a
materiality qualifier in the Credit Agreement or such other Loan Document; 

  
 -5- 

 (b) (i) the execution, delivery, and performance of this Agreement are within the corporate,
limited liability company or other power and authority of the Borrower or such Guarantor, as applicable, and have been duly authorized by appropriate proceedings and (ii) this Agreement constitutes a legal, valid, and binding obligation of the
Borrower or such Guarantor, as applicable, enforceable against the Borrower or such Guarantor in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of
creditors generally and general principles of equity; 
 (c) as of the effectiveness of this Agreement and after giving effect hereto, no
Default or Event of Default (other than the Specified Events of Default) has occurred and is continuing; 
 (d) as of the date of this
Agreement, the Borrower is justly and truly indebted in the following amounts, without defense, offset, counterclaim or recoupment, and which amounts constitute 1L Obligations (the “Hedge Close Out Amounts”): (i) the Close-out Amount (as defined in the MS Hedge Contract) owed by the Borrower in respect of the Hedge Contract between the Borrower and Morgan Stanley, dated December 2, 2019 (the “MS Hedge
Contract”) is $7,336,578.34; (ii) the Termination Amount (as defined in that certain letter agreement between the Borrower and Société Générale dated April 15, 2021) owed by the Borrower in respect of the
termination of the transactions under the Hedge Contract between the Borrower and Société Générale, dated June 21, 2007, is $597,015.87; and (iii) the aggregate amount owed by the Borrower to Associated Bank,
National Association in respect of the termination of the transactions under the Hedge Contract between the Borrower and Associated Bank, National Association, dated January 4, 2017, is $88,745.60, in each case of (i) – (iii) plus accrued
and unpaid interest at the applicable rate and in accordance with the terms of the Agreement, Joinder, Amendment to Forbearance Agreement and Amendment No. 11 to Credit Agreement dated as of April 28, 2021 by and among the Borrower, the
Guarantors, the RBL Agent and the Revolving Lenders (such interest, the “Hedge Close Out Amount Interest”); and 
 (e) as
of the date of this Agreement, the outstanding principal amount of the Advances under the Revolving Credit Agreement is $71,399,869.44, the amount of accrued and unpaid interest on such principal amount is $51,349.23, and the amount of accrued and
unpaid Hedge Close Out Amount Interest is $461,694.69. Other than the amounts described in this clause (e), the immediately preceding clause (d) and the reasonable professional fees payable under the Revolving Credit Agreement, there are no
additional 1L Obligations outstanding as of the date of this Agreement. 
 Section 6. Effectiveness. This Agreement shall become
effective and enforceable against the parties hereto, upon the occurrence of the following conditions precedent (such date being the “Effective Date”): 

(a) The Administrative Agent shall have received multiple original counterparts, as requested by the Administrative Agent, of this Agreement
duly and validly executed and delivered by duly authorized officers of the Borrower, the Guarantors, the Administrative Agent and each Lender. 

(b) The representations and warranties in this Agreement shall be true and correct before and after giving effect to this Agreement (other
than Section 7.14(b) of the Credit Agreement or any other representation and warranty relating solely to the existence of a Default or Event of Default that is untrue due to the existence of the Specified Events of Default). 

  
 -6- 

 (c) No Default or Event of Default (other than the Specified Events of Default) shall have
occurred and be continuing. 
 (d) No event that would constitute a Forbearance Termination Event (as such term is amended hereby) shall
have occurred and be continuing as of the Effective Date. 
 (e) (i) The Administrative Agent shall have received a copy of a fully executed
settlement and lien release agreement dated as of the date hereof with respect to the Revolving Credit Agreement among the Borrower, the other Loan Parties, the RBL Agent, the Revolving Lenders and the Swap Counterparties, which shall
(A) provide for the release of the Liens of the Revolving Lenders and the RBL Agent on the Assets upon the consummation of the transactions contemplated by the APA and the RBL Agent’s receipt of the Net Sale Proceeds on the Closing Date,
(B) provide for the full and final settlement and release of all 1L Obligations and claims under the Revolving Credit Agreement, the other related loan documents and the Specified Hedge Contracts, and (C) otherwise be in a form
satisfactory to the Administrative Agent (the “Settlement and Lien Release Agreement”) and (ii) the Settlement and Lien Release Agreement shall be effective or shall become effective on the Effective Date substantially
simultaneously with this Agreement. 
 (f) The Administrative Agent shall have received such other certificates, documents, instruments and
agreements as the Administrative Agent may reasonably request in connection herewith. 
 (g) The Borrower shall have paid all other costs,
expenses, and fees which have been invoiced and are payable pursuant to Section 12.04 of the Credit Agreement or any other written agreement. 

(h) The APA shall have been executed by the Borrower and the Buyer and shall be in full force and effect. 

Section 7. Acknowledgments and Agreements. 

(a) Cooperation. 
 (i)
The Borrower hereby covenants and agrees that it shall and shall cause each of its Subsidiaries, and shall use commercially reasonable efforts to cause each of their respective officers, directors, employees and advisors to (i) cooperate fully
with the Administrative Agent in connection with its review, analysis, and evaluation of the Borrower’s and its Subsidiaries’ financial affairs, finances, financial conditions, business, and operations (including historical financial
information and projections) and (ii) cooperate fully with the Administrative Agent, the Lenders, and their respective designees in furnishing information reasonably available to the Borrower and its Subsidiaries as and when requested by the
Administrative Agent, the Lenders, and their respective designees, including, without limitation, the Borrower’s and its Subsidiaries’ financial affairs, finances, financial condition, business, and operations. 

(ii) The Borrower shall provide the Administrative Agent at least two business days’ notice of any proposed amendment, restatement,
supplement, modification or replacement of the Settlement and Lien Release Agreement, and shall not agree or otherwise consent to any amendment, restatement, supplement, modification or replacement of the Settlement and Lien Release Agreement
without the prior written consent of the Administrative Agent. 
 (b) Requested Information. At the reasonable request of the
Administrative Agent, the Lenders, and their respective designees, subject to privilege and other confidentiality requirements, the Borrower hereby agrees that it shall use its commercially reasonable efforts to cause the chief executive officer,
the chief financial officer, and such other officers, directors, employees, and advisors of the Borrower to make themselves available to discuss any matters regarding the Borrower’s or any Subsidiary’s

  
 -7- 

 
financial affairs, finances, financial condition, business, and operations, all upon reasonable notice during normal business hours to fully disclose to the Administrative Agent, the Lender, and
their respective designees all information reasonably requested by the Administrative Agent, the Lenders, and their respective designees regarding the foregoing. 

(c) Default Interest. Each Loan Party acknowledges that during such time as any Event of Default exists, the Obligations shall bear
interest at the rate then applicable to such Loans pursuant to the Credit Agreement, plus 3%, as set forth in Section 3.02(c) of the Credit Agreement (such incremental 3% amount, the “Default Amount”). By delivery of the Notice
of Default, the Administrative Agent gave notice to each Loan Party that the applicable rate with respect to interest charged under the Loan Documents shall be increased by the Default Amount beginning April 16, 2021, in accordance with
Section 3.02(c) of the Credit Agreement. 
 (d) Obligations. Each Loan Party acknowledges that on the date hereof all
outstanding Obligations are payable in accordance with their terms (including the accrual of the interest at the rate set forth in clause (c) above), and each Loan Party waives any defense, offset, counterclaim or recoupment, in each
case existing on the date hereof, with respect to such Obligations. Each Loan Party, the Administrative Agent, and each other party hereto does hereby adopt, ratify, and confirm the Forbearance Agreement, as amended hereby, and acknowledges and
agrees that each of the Credit Agreement, and the Forbearance Agreement, as amended hereby, is and remains in full force and effect, and each Loan Party acknowledges and agrees that its respective liabilities and obligations under the Credit
Agreement, the Forbearance Agreement, as amended hereby, the Guaranty and the Security Instruments are not impaired in any respect by this Agreement. 

(e) Professional Advisors. Administrative Agent has engaged and retained Simpson Thacher & Bartlett LLP as legal counsel and
Borrower expressly agrees to reimburse Administrative Agent for all fees, costs and expenses incurred by Administrative Agent whether before or after the date hereof as a result of such engagements as provided in Section 12.04 of the Credit
Agreement. 
 (f) Other Defaults; Strict Performance; Course of Dealing. The description of the Specified Events of Default in the
Forbearance Agreement, as amended hereby, is based upon the information provided to the Lenders on or prior to the date hereof and shall not be deemed to exclude the existence of any other Defaults or Events of Default. The failure of the Lenders to
give notice to any Loan Party of any such other Defaults, Events of Default, or termination events is not intended to be nor shall be a waiver thereof. Each Loan Party hereby agrees and acknowledges that (i) the Secured Parties
require and will require strict performance by the Loan Parties of all of their respective obligations, agreements and covenants contained in the Credit Agreement, the Forbearance Agreement, as amended hereby (including without limitation with
respect to each of the Forbearance Termination Events), and the other Loan Documents (including any action or circumstance which is prohibited or limited during the existence of a Default or Event of Default), and no inaction or action by any
Secured Party regarding any Default or Event of Default (including, but not limited to, the Specified Events of Default) is intended to be or shall be a waiver thereof, and (ii) the Loan Parties shall remain bound by the terms and
conditions of the Forbearance Agreement, as amended hereby (including without limitation with respect to each of the Forbearance Termination Events), in all respects. Each Loan Party hereby also agrees and acknowledges that no course of dealing and
no delay in exercising any right, power, or remedy conferred to any Secured Party in the Credit Agreement or in any other Loan Documents or now or hereafter existing at law, in equity, by statute, or otherwise shall operate as a waiver of or
otherwise prejudice any such right, power, or remedy. 

  
 -8- 

 (g) Reservation of Rights. For the avoidance of doubt, each Loan Party hereby also
agrees and acknowledges that the forbearance provided under the Forbearance Agreement, as amended by Section 2 above, shall not operate as a waiver of or otherwise prejudice any of the rights and remedies of the
Administrative Agent and the Lenders as to the Specified Events of Default or otherwise, other than as expressly provided in the Forbearance Agreement, as amended by Section 2 above. The Administrative Agent and the Lenders
hereby expressly reserve all of their rights, remedies, and claims under the Loan Documents. Nothing in this Agreement shall constitute a waiver or relinquishment of (i) any Default or Event of Default under any of the Loan Documents, including
but not limited to, the Specified Events of Default, (ii) any of the agreements, terms or conditions contained in any of the Loan Documents, (iii) any rights or remedies of the Administrative Agent or any Lender with respect to the Loan
Documents, or (iv) the rights of the Administrative Agent or any Lender to collect the full amounts owing to them under the Loan Documents. 

(h) This Agreement. From and after the Effective Date, the Forbearance Agreement remains in full force and effect and all references to
the Forbearance Agreement shall mean the Forbearance Agreement as amended by this Agreement. This Agreement is a Loan Document for the purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach of the
representations, warranties, and covenants under this Agreement shall be an automatic Event of Default, as applicable, under the Credit Agreement unless waived by the Lenders. 

(i) Further Loans and Continuations and Conversions. The Borrower and each other party hereto hereby acknowledges and
agrees that (i) existing Loans may not be continued as, or be converted into, Eurodollar Rate Loans, and (ii) no Lender shall have any obligation to make additional Loans.  

(j) Lenders’ Rights. The Lenders, except as expressly set forth in the Forbearance Agreement, as amended by this Agreement,
(A) expressly retain and reserve all their rights and remedies available to them at any time (including, without limitation, (i) the right to set off and apply any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by any Lender to or for the credit or the account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower and any other Loan Party now or hereafter
existing under the Credit Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under the Credit Agreement or such other Loan Document and although such obligations may be unmatured, and
(ii) the right to engage additional counsels and other advisors at the Borrower’s expense and without any further notice, except for the notice, if any, required under the Credit Agreement or applicable law; and (B) do not waive the
Specified Events of Default or agree to forbear from any rights or remedies with respect thereto; any such waiver or forbearance, or any extension of the forbearance provided hereunder, if done, would only be effective to the extent, and subject to
terms and conditions, set forth in a separate written instrument executed and delivered by all the Lenders or the Required Lenders, as required under the Credit Agreement. 

(k) Tolling of Statute of Limitations. The Borrower and Guarantors acknowledge and agree that the running of any statutes of limitation
or doctrine of laches applicable to any claims or causes of action that the Administrative Agent or the Lenders may be entitled to take or bring in order to enforce their rights and remedies against any Loan Party (or any of its respective assets)
is, to the fullest extent permitted by law, tolled and suspended during the period from the Effective Date until the Forbearance Termination Date. 

(l) Deposit Accounts and Securities Accounts. Notwithstanding any other term of the Credit Agreement, during the Forbearance Period, no
Loan Party shall open a deposit account or securities account, or instruct that any deposit account or securities account is maintained for its benefit without the prior written consent of the Administrative Agent. 

  
 -9- 

 (m) Hedge Terminations and Payments. The Borrower agrees that, until the Forbearance
Termination Date, the Borrower shall not, nor shall it permit any of its Subsidiaries, to make any payment (other than monthly hedge settlement payments in the ordinary course of business) in respect of any Hedge Contract, including any Hedge
Contract that has been subject to a Hedge Termination. Notwithstanding any other term of the Credit Agreement, a termination of a Hedge Contract shall not be deemed to be a breach of any term of the Credit Agreement (including without limitation
Section 8.12 thereof) so long as no enforcement action is taken or litigation is brought in connection with such termination or any other action is taken to collect amounts owing under such Hedge Contract in connection with such termination.

 (n) Mandatory Prepayments. For the avoidance of doubt, all parties agree and acknowledge that the mandatory prepayment
requirements set forth in Section 3.05 of the Credit Agreement remain in full force and effect. 
 Section 8.
RELEASE. For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Loan Party hereby, for itself and its successors and assigns, fully and without reserve, releases, acquits, and forever
discharges each Secured Party, its respective successors and assigns, officers, directors, employees, representatives, trustees, attorneys, agents and each other Related Party of such Secured Party (collectively the “Released
Parties” and individually a “Released Party”) from any and all actions, claims, demands, causes of action, judgments, executions, suits, debts, liabilities, costs, damages, expenses or other obligations
of any kind and nature whatsoever, direct and/or indirect, at law or in equity, whether now existing or hereafter asserted, whether absolute or contingent, whether due or to become due, whether disputed or undisputed, whether known or unknown
(INCLUDING, WITHOUT LIMITATION, ANY OFFSETS, REDUCTIONS, REBATEMENT, CLAIMS OF USURY OR CLAIMS WITH RESPECT TO THE NEGLIGENCE OF ANY RELEASED PARTY) (collectively, the “Released Claims”), for or because of any matters
or things occurring, existing or actions done, omitted to be done, or suffered to be done by any of the Released Parties, in each case, on or prior to the Effective Date and are in any way directly or indirectly arising out of or in any way
connected to any of this Agreement, the Credit Agreement, any other Loan Document, or any of the transactions contemplated hereby or thereby (collectively, the “Released Matters”). Each Loan Party, by execution hereof,
hereby acknowledges and agrees that the agreements in this Section 8 are intended to cover and be in full satisfaction for all or any alleged injuries or damages arising in connection with the
Released Matters herein compromised and settled. Each Loan Party hereby further agrees that it will not sue any Released Party on the basis of any Released Claim released, remised and discharged by the Loan Parties pursuant to this
Section 8. In entering into this Agreement, each Loan Party consulted with, and has been represented by, legal counsel and expressly disclaim any reliance on any representations, acts or
omissions by any of the Released Parties and hereby agrees and acknowledges that the validity and effectiveness of the releases set forth herein do not depend in any way on any such representations, acts and/or omissions or the accuracy,
completeness or validity hereof. The provisions of this Section 8 shall survive the termination of this Agreement, the Credit Agreement and the other Loan Documents, the payment in full of the
Obligations. 
 Section 9. Choice of Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York. 
 Section 10. WAIVER OF JURY TRIAL. EACH PARTY TO THIS
AGREEMENT HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON  

  
 -10- 

 
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO
THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 Section 11. Miscellaneous. 

(a) Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original.
Delivery of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof. 

(b) NO ORAL AGREEMENT. THIS AGREEMENT, THE CREDIT AGREEMENT, AS AMENDED BY THIS AGREEMENT, THE FORBEARANCE AGREEMENT, AS
AMENDED BY THIS AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES. 
 (c) Payment of Expenses. The Borrower agrees to pay or reimburse the Administrative Agent for
all of its costs and expenses incurred in connection with this Agreement, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the fees, charges and disbursements of counsel to
the Administrative Agent. 
 (d) Severability. If any provision of this Agreement is held to be illegal, invalid or
unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 (e) Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 (f)
Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Forbearance Agreement, nor consent to any departure by the Borrower or any Subsidiary therefrom, shall in any event be effective unless the same shall be
in writing and signed by the Lenders and the Borrower, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

[The remainder of this page has been left blank intentionally.] 

  
 -11- 

 EXECUTED as of the date first set forth above. 

 

			
	BORROWER:
	
	ABRAXAS PETROLEUM CORPORATION
		
	By:	 	 /s/ Steve Harris

	Name:	 	Steve Harris
	Title:	 	Vice President and Chief Financial Officer
	
	GUARANTORS:
	
	ABRAXAS PROPERTIES INCORPORATED
		
	By:	 	 /s/ Steve Harris

	Name:	 	Steve Harris
	Title:	 	Vice President, Treasurer and Assistant Secretary
	
	SANDIA OPERATING CORP.
		
	By:	 	 /s/ Steve Harris

	Name:	 	Steve Harris
	Title:	 	Vice President, Treasurer and Assistant Secretary
	
	RAVEN DRILLING, LLC
		
	By:	 	 /s/ Steve Harris

	Name:	 	Steve Harris
	Title:	 	Vice President, Treasurer and Assistant Secretary

 [Signature Page to Forbearance – Abraxas Petroleum Corporation] 

							
	ADMINISTRATIVE AGENT:	 		 	ANGELO GORDON ENERGY SERVICER, LLC
				
		 		 	By:	 	 /s/ Todd Dittmann

		 		 	Name:	 	Todd Dittmann
		 		 	Title:	 	Authorized Person
			
	LENDER:	 		 	 AG ENERGY FUNDING, LLC
 ON BEHALF OF
SERIES 17 AND SERIES 20

				
		 		 	By:	 	 /s/ Todd Dittmann

		 		 	Name:	 	Todd Dittmann
		 		 	Title:	 	Authorized Person

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]