Document:

Unassociated Document

    EXHIBIT
      10.18

    

    FIRST
      AMENDMENT TO LEASE

    

    This
      First Amendment to the certain Lease dated September 23, 2004 (“Original Lease”)
      and described below, is made and entered into upon the 5th day of February,
      2007, by and between the parties and upon the terms and conditions hereinafter
      set forth. This Amendment shall serve to amend only the paragraphs listed below;
      all other terms and conditions of the Lease are hereby confirmed to be in full
      force and effect. This First Amendment to Lease must be executed by November
      30,
      2006 or it will expire and will be of no further effect.

    

    SECTION
      1.2 BASIC DATA.

    

      
        	
                Landlord: 

              	
                Robert
                  F. Tambone as Trustee of MAT Realty Trust 

                u/d/t
                  dated June 4, 1986 and recorded with the 

                Worcester
                  County Registry of Deeds

              
	 	 
	
                Landlord's
                  Original Address:
                  

              	
                c/o
                  Atlantic Tambone

              
	 	
                6
                  Kimball Lane, Suite 300

              
	 	
                Lynnfield,
                  MA 01940

              
	 	 
	
                Tenant:
                  

              	
                Viking
                  Systems, Inc.

              
	 	 
	
                Tenant's
                  Original Address:

              	
                134
                  Flanders Road

              
	 	
                Westborough,
                  MA

              
	 	 
	
                Guarantor:

              	
                NA

              

      

    

    

    Basic
      Rent:
      For the
      first, second and third year of the Term, the sum of One-Hundred Sixty Thousand
      Three Hundred Eighty ($160,380.00) Dollars per annum or $9.00 per square foot
      of
      Premises Rentable Area; as the same may be adjusted and/or abated pursuant
      to
      Section 12.1. If the Term of this Lease includes any partial calendar month
      after the Commencement Date and before the beginning of Lease Year 1, Basic
      Rent
      shall be payable during such partial calendar month at the rate applicable
      during Lease Year 1.

    

    Monthly
      Rent Payment:
      For
      Lease Year 1, 2 and 3, $13,365.00 per month

    

    Premises
      Rentable Area:
      Approximately 17,850 square feet located on the 1st floor of the
      Building.

    

    Permitted
      Uses: General
      office, exclusive however of an office use that would cause or result in the
      Premises being deemed "a place of public accommodation" as defined in the
      Americans with Disabilities Act of 1990, as amended (the "Disabilities
      Act").

    

    Tenant’s
      Proportionate Share:
      31.3%,
      as computed in accordance with the Percentage Share Computation.

    

    Initial
      Term: Three
      (3)
      years commencing on the Commencement Date and expiring at the close of the
      day
      immediately preceding the anniversary of the Commencement Date, except that
      if
      the Commencement Date shall be other than the first day of a calendar month,
      the
      expiration of the Initial Term shall be at the close of the day on the last
      day
      of the calendar month on which such anniversary date shall
      fall.

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    Security
      Deposit: $26,730.00
      - Two Months Rent 

    

    Parking:
      Non-exclusive
      use of 60 spaces in the Building parking lot, to be used in common with other
      tenants, guests, employees, invitees and others entitled to the use
      thereof.

     

    ARTICLE
      XV

    OPTIONS
      TO EXTEND

    

    15.1 TENANT'S
      OPTIONS.
      (a)
      Provided that, at the time of such exercise, this Lease is still in full force
      and effect without an Event of Default by Tenant and Tenant occupies at least
      seventy-five percent (75%) of the Rentable Area of the Premises for its own
      business purposes, Tenant shall have the right and options (the "Extension
      Options") to extend the Term of this Lease for One (1) extended term of Three
      (3) years (an "Extended Term"). The Extended Term shall commence on the day
      immediately succeeding the expiration date of the Initial Term, and shall end
      on
      the day immediately preceding the third anniversary of the first day of such
      Extended Term. Tenant shall exercise its Extension Option for the Extended
      Term
      by giving written notice to Landlord of its desire to do so not later than
      six
      (6) months prior to the expiration date of the Initial Term. The giving of
      such
      notice by Tenant shall automatically extend the Term of this Lease for the
      Extended Term, and no instrument of renewal need be executed. In the event
      that
      Tenant fails to give such notice to Landlord this Lease shall automatically
      terminate at the end of the Initial Term, and Tenant shall have no further
      option to extend the Term of this Lease. The Extended Term shall be on all
      the
      terms and conditions of this Lease, except (i) during any Extended Term, the
      extension provisions of this Section to the extent already exercised shall
      not
      be effective, (ii) that the Basic Rent in effect for the Extended Term shall
      be
      at the greater of (a) the then current Basic Rent during the last lease Year
      of
      the Initial Term and (b) the anticipated fair market rental rate for comparable
      buildings in the Westborough area for the Premises Rentable Area during the
      Extended Term (the "Prevailing Fair Market Base Rental Rate") determined as
      follows. Within twenty (20) days of Tenant's exercise of its Extension Option,
      Landlord agrees to provide Tenant with Landlord's determination ("Landlord's
      Determination") of the Fair Market Base Rental Rate. Any determination of the
      Fair Market Base Rental Rate, whether by Landlord or Tenant, shall include
      a
      statement of the elements of rent included in such determination (whether tenant
      improvement allowances, free rent, common area cost allowances, or otherwise)
      sufficient to permit a calculation of the effective rent for the
      Premises.

    

    (b) If
      Tenant
      does not agree with Landlord's Determination, provide Landlord with notice
      of
      its determination of the Fair Market Base Rental Rate ("Tenant's Determination")
      within twenty (20) days of Tenant's receipt of Landlord's Determination; if
      Tenant fails to provide Landlord on a timely basis with Tenant's notice to
      terminate as aforesaid or Tenant's Determination as set forth herein, Tenant
      will be deemed to have agreed to Landlord's Determination which then shall
      constitute the basis for determining the Base Rent for the Extended Term. Except
      as set forth in subparagraph (c) below, if Landlord's Determination and Tenant's
      Determination are different and Landlord and Tenant are unable to agree upon
      the
      Fair Market Base Rental Rate within thirty (30) days of Landlord's receipt
      of
      Tenant's Determination, the parties shall within fifteen (15) days after the
      end
      of such 30-day period, together appoint a mutually acceptable arbitrator or,
      if
      they are unable to agree upon such an arbitrator, shall apply to the American
      Arbitration Association for the designation of an arbitrator located in the
      Boston, Massachusetts metropolitan area to render a final determination of
      the
      Fair Market Base Rental Rate (the "Arbitrator"). Unless otherwise agreed by
      the
      parties, the Arbitrator shall be a real estate appraiser or consultant who
      shall
      be a M.A.I. member and who shall have at least fifteen (15) years continuous
      experience in the business of appraising commercial office buildings in the
      greater Boston area. The Arbitrator shall conduct such hearings and
      investigations as the Arbitrator shall deem appropriate and shall, within sixty
      (60) days after having been appointed, choose either the Landlord's
      Determination or Tenant's Determination, and that choice by the Arbitrator
      shall
      be final and binding upon Landlord and Tenant. The party whose Determination
      is
      not chosen shall pay all the fees and expenses of the Arbitrator. The Arbitrator
      shall not have the power to add to, modify or change any of the provisions
      of
      this Lease.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (c) In
      the
      event that the determination of the Fair Market Base Rental Rate set forth
      in
      the Landlord's Determination and Tenant's Determination shall differ by less
      than ten percent (10%) per rentable square foot per annum for each year during
      the Extended Term, then the Fair Market Base Rental Rate shall not be determined
      by arbitration, but, at Landlord’s election, shall instead be set by taking the
      average of the parties' Determinations.

    

    (d) If
      for
      any reason the Fair Market Base Rental Rate shall not have been determined
      prior
      to the commencement of the Extended Term, then, until the Fair Market Base
      Rental Rate shall have been finally determined, the Basic Rent shall remain
      the
      same as payable during the last year of the term immediately preceding such
      Extended Term. Upon final determination of the Fair Market Base Rental Rate,
      an
      appropriate adjustment to the Basic Rent shall be made reflecting such final
      determination and Landlord or Tenant, as the case may be, shall promptly refund
      or pay to the other any overpayment or deficiency, as the case may be, in the
      payment of Basic Rent from the commencement date of the Extended Term to the
      date of such final determination.

    

    (e) Time
      is
      of the essence of this Section 15. 1.

    

    ARTICLE
      XVI

    TENANT
      IMPROVEMENTS

    

    Landlord
      shall repaint the space and recarpet where there is existing carpet. Tenant
      shall be responsible for removing any furniture/cubicles in order for Landlord
      to install the carpet. 

    In
      addition, Landlord shall remove the conference room and adjacent office located
      in the office portion of the space. (See Attached Exhibit A)

    

    AMENDMENT:

    Replace
      Section 1.2 Basic Data in Original Lease with the following:

     

    SECTION
      1.2 BASIC DATA.

    

      
        	
                Landlord: 

              	
                Baltic
                  Westborough, LLC as successor to 

                Robert
                  F. Tambone as Trustee of MAT Realty Trust

              
	 	 
	
                Landlord's
                  Address:
                  

              	
                c/o
                  The Baltic Group, LLC

              
	 	
                2180
                  Mendon Road, Suite 11

              
	 	
                Cumberland,
                  RI 02864

              
	 	 
	
                Tenant:
                  

              	
                Viking
                  Systems, Inc.

              
	
                 

              	 
	
                Tenant's
                  Address:

              	
                134
                  Flanders Road

              
	 	
                Westborough,
                  MA

              
	 	 
	
                Guarantor:

              	
                NA

              

      

    

    

    Basic
      Rent:
      For the
      first, second and third year of the Extended Term, the sum of Two Hundred and
      Forty-Five Thousand Eight Hundred and Thirty-Five Dollars and 00/100
      ($245,835.00) per annum or $13.50 per square foot of Premises Rentable Area;
      as
      the same may be adjusted and/or abated pursuant to Section 12.1. If the Term
      of
      this Lease includes any partial calendar month after the Commencement Date
      and
      before the beginning of Lease Year 1, Basic Rent shall be payable during such
      partial calendar month at the rate applicable during Lease Year
      1.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    Monthly
      Rent Payment:
      For
      Lease Year 1, 2 and 3, $20,486.25 per month

    

    Premises
      Rentable Area:
      Approximately 18,210 of rentable square feet located on the 1st floor of the
      Building.

    

    Permitted
      Uses: General
      office, exclusive however of an office use that would cause or result in the
      Premises being deemed "a place of public accommodation" as defined in the
      Americans with Disabilities Act of 1990, as amended (the "Disabilities
      Act").

    

    Tenant’s
      Proportionate Share:
      31.95%,
      as computed in accordance with the Percentage Share Computation.

    

    Extended
      Term: Three
      (3)
      years commencing on October 1, 2007 and expiring at the close of the day on
      September 30, 2010.

    

    Security
      Deposit: $26,730.00
      - Two Months Rent 

    

    Parking:
      Non-exclusive
      use of 60 spaces in the Building parking lot, to be used in common with other
      tenants, guests, employees, invitees and others entitled to the use
      thereof.

     

    ARTICLE
      XV

    OPTIONS
      TO EXTEND

    

    15.1 TENANT'S
      OPTIONS.
      (a)
      Provided that, at the time of such exercise, this Lease is still in full force
      and effect without an Event of Default by Tenant and Tenant occupies at least
      seventy-five percent (75%) of the Rentable Area of the Premises for its own
      business purposes, Tenant shall have the right and option (the "Second Extension
      Option") to extend the Term of this Lease for One (1) extended term of Three
      (3)
      years ("Second Extended Term"). The Second Extended Term shall commence on
      the
      day immediately succeeding the expiration date of the Extended Term, and shall
      end on the day immediately preceding the third anniversary of the first day
      of
      such Extended Term. Tenant shall exercise its Second Extension Option for the
      Second Extended Term by giving written notice to Landlord of its desire to
      do so
      not later than six (6) months prior to the expiration date of the Initial Term.
      The giving of such notice by Tenant shall automatically extend the Term of
      this
      Lease and an instrument of renewal will be executed. In the event that Tenant
      fails to give such notice to Landlord this Lease shall automatically terminate
      at the end of the Extended Term, and Tenant shall have no further option to
      extend the Term of this Lease. The Extended Term shall be on all the terms
      and
      conditions of this Lease, except (i) during any Second Extended Term, the
      extension provisions of this Section to the extent already exercised shall
      not
      be effective, (ii) that the Basic Rent in effect for the Extended Term shall
      be
      at the greater of (a) the then current Basic Rent during the last lease Year
      of
      the Initial Term and (b) the anticipated fair market rental rate for comparable
      buildings in the Westborough area for the Premises Rentable Area during the
      Extended Term (the "Prevailing Fair Market Base Rental Rate") determined as
      follows. Within twenty (20) days of Tenant's exercise of its Extension Option,
      Landlord agrees to provide Tenant with Landlord's determination ("Landlord's
      Determination") of the Fair Market Base Rental Rate. Any determination of the
      Fair Market Base Rental Rate, whether by Landlord or Tenant, shall include
      a
      statement of the elements of rent included in such determination (whether tenant
      improvement allowances, free rent, common area cost allowances, or otherwise)
      sufficient to permit a calculation of the effective rent for the
      Premises.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (b) If
      Tenant
      does not agree with Landlord's Determination, provide Landlord with notice
      of
      its determination of the Fair Market Base Rental Rate ("Tenant's Determination")
      within twenty (20) days of Tenant's receipt of Landlord's Determination; if
      Tenant fails to provide Landlord on a timely basis with Tenant's notice to
      terminate as aforesaid or Tenant's Determination as set forth herein, Tenant
      will be deemed to have agreed to Landlord's Determination which then shall
      constitute the basis for determining the Base Rent for the Extended Term. Except
      as set forth in subparagraph (c) below, if Landlord's Determination and Tenant's
      Determination are different and Landlord and Tenant are unable to agree upon
      the
      Fair Market Base Rental Rate within thirty (30) days of Landlord's receipt
      of
      Tenant's Determination, the parties shall within fifteen (15) days after the
      end
      of such 30-day period, together appoint a mutually acceptable arbitrator or,
      if
      they are unable to agree upon such an arbitrator, shall apply to the American
      Arbitration Association for the designation of an arbitrator located in the
      Boston, Massachusetts metropolitan area to render a final determination of
      the
      Fair Market Base Rental Rate (the "Arbitrator"). Unless otherwise agreed by
      the
      parties, the Arbitrator shall be a real estate appraiser or consultant who
      shall
      be a M.A.I. member and who shall have at least fifteen (15) years continuous
      experience in the business of appraising commercial office buildings in the
      greater Boston area. The Arbitrator shall conduct such hearings and
      investigations as the Arbitrator shall deem appropriate and shall, within sixty
      (60) days after having been appointed, choose either the Landlord's
      Determination or Tenant's Determination, and that choice by the Arbitrator
      shall
      be final and binding upon Landlord and Tenant. The party whose Determination
      is
      not chosen shall pay all the fees and expenses of the Arbitrator. The Arbitrator
      shall not have the power to add to, modify or change any of the provisions
      of
      this Lease.

    

    (c) In
      the
      event that the determination of the Fair Market Base Rental Rate set forth
      in
      the Landlord's Determination and Tenant's Determination shall differ by less
      than ten percent (10%) per rentable square foot per annum for each year during
      the Extended Term, then the Fair Market Base Rental Rate shall not be determined
      by arbitration, but, at Landlord’s election, shall instead be set by taking the
      average of the parties' Determinations.

    

    (d) If
      for
      any reason the Fair Market Base Rental Rate shall not have been determined
      prior
      to the commencement of the Second Extended Term, then, until the Fair Market
      Base Rental Rate shall have been finally determined, the Basic Rent shall remain
      the same as payable during the last year of the term immediately preceding
      such
      Second Extended Term. Upon final determination of the Fair Market Base Rental
      Rate, an appropriate adjustment to the Basic Rent shall be made reflecting
      such
      final determination and Landlord or Tenant, as the case may be, shall promptly
      refund or pay to the other any overpayment or deficiency, as the case may be,
      in
      the payment of Basic Rent from the commencement date of the Second Extended
      Term
      to the date of such final determination.

    

    (e) Time
      is
      of the essence of this Section 15. 1.

    

    ARTICLE
      XVI

    TENANT
      IMPROVEMENTS

     

    Landlord
      shall repaint the Tenant’s stock room and clean room in a mutually agreeable
      color. In addition, Landlord shall have the stock room floors stripped, cleaned
      and polished. Landlord will have all tile floors stripped, cleaned, and
      polished. It shall be the Tenant’s responsibility to move all equipment, files,
      etc. from the impacted areas so as to not impact the work to be
      completed.

    

    It
      is further agreed and acknowledged that notwithstanding language contained
      in
      the Original Lease, that this lease shall now be treated as a gross lease with
      Tenant being responsible for the payment of its separately metered utilities
      and
      its proportionate share of any increases in base operating expenses and real
      estate taxes as outlined in Exhibit A attached hereto.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    It
      is hereby understood that the above listed paragraphs are the only paragraphs
      amended from the Original Lease. All other provisions of the original Lease
      unless amended
      hereby or by previous Amendments, are hereby confirmed to remain in full force
      and effect.

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this First Amendment to the Office Building Lease on
      the
      date first set forth above.

    

    WITNESS: 
      /s/ Holly Bradley             
Baltic
      Westborough, LLC

    

    

    By:
      /s/ Irene
      A.
      Schmitt                                     

    Irene
      A.
      Schmitt, Managing Partner

    The
      Baltic Group, LLC

    Managing
      Partner

    

    

    WITNESS: 
      /s/ John Kennedy           
Viking
      Systems, Inc.

    

    

    By:
      /s/ Joseph
      Warrino                                       

    Joseph
      Warrino

    VP
      and
      General Manager

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “A”

    

    134
      Flanders Road, Westborough, MA

     

    Base
      Operating Costs 

    for
      Leases written in 2006

    

    Operating
      Costs Per Square Foot

    

      
        	
                A:

              	
                OPERATING
                  EXPENSES

              	
                PER
                  SQUARE FOOT

              	 	 
	 	 	 	 	 
	 	
                INSURANCE:

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                ELECTRICITY
                  (Common Area):

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                WATER
                  & SEWER:

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                CONTRACT
                  CLEANING: (incl. windows)

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                SERVICE
                  SUPPLIES:

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                GROUNDS
                  CARE:

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                SNOW
                  REMOVAL:

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                TRASH
                  REMOVAL:

              	
                *

              	
                $

              	 
	 	 	 	 	 
	 	
                ELEVATOR
                  MAINTENANCE:

              	
                *

              	
                $

              	 
	 	 	 	
                 

              	 
	 	
                TOTAL
                  OPERATING EXPENSES

              	 	 	 
	 	 	
                *

              	
                $

              	
                Base
                  Operating Costs

              

      

    

     

    *
      Operating Expenses for the Calendar Year 2006 will be inserted when
      available.

    

    

    B: REAL
      ESTATE TAX 

    ** 
$  Base
      Real
      Estate Taxes

     

    **
      Real Estate Taxes for the Fiscal Year 2006 will be inserted when
      availableExhibit 10.1

     

    

     

    

    CREDIT
      AGREEMENT

    among

    WESTSIDE
      ENERGY PRODUCTION COMPANY, LP 

    and
      

    WESTSIDE
      ENERGY OPERATING COMPANY, LP

    as
      Borrowers,

    

    WESTSIDE
      ENERGY CORPORATION

    as
      Parent,

    

    

    SPINDRIFT
      PARTNERS, L.P., OR ITS DESIGNEE

    as
      Administrative Agent

    

    

    and

    

    

    The
      Lenders Party Hereto

    

    

    

    

    

     

    

    

    

    dated
      as of March 23, 2007

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    TABLE
      OF CONTENTS

    Page

    

    

    
      	
            
	 
	
              ARTICLE
                I. DEFINITIONS

              1.01 Certain
                Defined Terms. 

              1.02 Other Interpretive Provisions

              1.03 Accounting
                Principles                                                                             

              ARTICLE
                II. THE CREDIT

              2.01 Amounts
                and Terms of the Loan

              2.02 Borrowing
                Mechanics

              2.03 Prepayment

              2.04 Interest;
                Repayment

              2.05 Conversion

              2.06 Fees
                and Overriding Royalty Interests

              2.07 Computation
                of Fees and Interest

              2.08 Payments
                by Borrowers

              2.09 Increased
                Costs and Reduced Return

              2.10 Taxes

              2.11 Sharing
                of Payments

              ARTICLE
                III. SECURITY

              3.01 The
                Security

              3.02 Agreement
                to Deliver Security Documents

              3.03 Perfection
                and Protection of Security Interests and Liens

              3.04 Offset.

              ARTICLE
                IV. CONDITIONS PRECEDENT

              4.01 Conditions
                Precedent

              ARTICLE
                V. REPRESENTATIONS AND WARRANTIES

              5.01 Corporate
                Existence and Power

              5.02 Corporate
                Authorization; No Contravention

              5.03 Governmental
                Authorization

              5.04 Binding
                Effect

              5.05 Financial
                Condition

              5.06 Litigation

              5.07 No
                Default

              5.08 ERISA

              5.09 Margin
                Regulations

              5.10 Title
                to Properties

              5.11 Oil
                and Gas Reserves

              5.12 Hydrocarbon
                Interests

              5.13 Operator

              5.14 Intellectual
                Property; Licenses

              5.15 Taxes

              5.16 Environmental
                Matters

              5.17 Regulated
                Entities

              5.18 No
                Burdensome Restrictions

              5.19 Solvency

              5.20 Subsidiaries/Investments/Ownership

              5.21 Insurance

              5.22 Full
                Disclosure

              5.23 Capitalization

              5.24 Authorization
                of Conversion Shares.

              5.25 Material
                Contracts

              5.26 Fiscal
                Year

              5.27 Gas
                Balancing Agreements and Advance Payment Contracts

              5.28 Business;
                Compliance

              5.29 Marketing
                Arrangements.

              5.30 Right
                to Receive Payment for Future Production.

              5.31 Hedge
                Agreements.

              ARTICLE
                VI. AFFIRMATIVE COVENANTS

              6.01 Financial
                Statements; Other Information.

              6.02 Right
                of Inspection.

              6.03 Notice
                of Default.

              6.04 Public
                Information.

              6.05 Preservation
                of Corporate Existence, Etc.

              6.06 Maintenance
                of Property.

              6.07 Title
                Data.

              6.08 Insurance.

              6.09 Payment
                of Obligations.

              6.10 Compliance
                with Laws.

              6.11 Maintenance
                of Books and Records.

              6.12 Environmental
                Laws.

              6.13 Use
                of Proceeds.

              6.14 Further
                Assurances.

              6.15 Guaranties.

              6.16 Security
                Documents.

              ARTICLE
                VII. NEGATIVE COVENANTS

              7.01 Limitation
                on Liens.

              7.02 Sale
                of Property.

              7.03 Consolidations
                and Mergers.

              7.04 Loans
                and Investments.

              7.05 Limitation
                on Indebtedness.

              7.06 Transactions
                with Affiliates.

              7.07 Margin
                Stock.

              7.08 Contingent
                Obligations.

              7.09 Restricted
                Payments.

              7.10 Change
                in Business, Organization Documents, Name and Address.

              7.11 Accounting
                Changes.

              7.12 Restrictions
                of Pledges.

              7.13 Conversion.

              7.14 Hedge
                Agreement.

              7.15 Operating
                Leases.

              ARTICLE
                VIII. EVENTS OF DEFAULT

              8.01 Event
                of Default.

              8.02 Remedies.

              8.03 Set-off.

              8.04 Payments
                Set Aside.

              8.05 Rights
                Not Exclusive.

              8.06 Application
                of Funds.

              ARTICLE
                IX. ADMINISTRATIVE AGENT

               9.01 Appointment
                and Authorization.

              9.02 Delegation
                of Duties.

              9.03 Liability
                of Administrative Agent.

              9.04 Reliance
                by Administrative Agent.

              9.05 Notice
                of Default.

              9.06 Credit
                Decisions.

              9.07 Indemnification.

              9.08 Administrative
                Agent in Individual Capacity.

              9.09 Successor
                Administrative Agent.

              ARTICLE
                X. MISCELLANEOUS

              10.01 Amendments
                and Waivers.

              10.02 Notices.

              10.03 No
                Waiver; Cumulative Remedies.

              10.04 Survival
                of Representations and Warranties.

              10.05 Indemnity.

              10.06 Environmental
                Indemnification.

              10.07 Successors
                and Assigns

              10.08 Interest.

              10.09 Counterparts
                and Facsimile Signatures.

              10.10 Severability

              10.11 Third
                Party Beneficiaries

              10.12 USA
                Patriot Act Notice

              10.13 Governing
                Law

              10.14 Submission
                to Jurisdiction

              10.15 Waiver
                Of Jury Trial

              10.16 Amendment
                and Restatement

              10.17 Entire
                Agreement.

              10.18 Obligations
                Several.

              10.19 Taxes
                - Allocation

              10.20 General
                Release.

              10.21 NO
                ORAL AGREEMENTS

            

    

    

    

    

    APPENDIX

    

    Appendix
      I  Specific
      Terms, Fees and Conditions

    Appendix
      II  Collateral
      Properties

    Appendix
      III  North
      Properties

    

    SCHEDULES

    

    Schedule
      I  Security
      Documents

    Schedule
      II  [Reserved]

    Schedule
      5.06  Litigation

    Schedule
      5.12  Hydrocarbon
      Interests 

    Schedule
      5.20  Corporate
      Structure

    Schedule
      5.30  Production
      Matters

    Schedule
      7.01  Liens

    Schedule
      7.06  Transactions
      with Affiliates

    

    EXHIBITS

    

    Exhibit
      A  Form
      of
      Guaranty 

    Exhibit
      B  Form
      of
      Convertible Note

    Exhibit
      C
  Form
      of
      Notice of Capitalization/Conversion

    Exhibit
      D
  Form
      of
      Assignment of Overriding Royalty Interest

    
      
        
           

          Credit
            Agreement - Westside Energy Production Company, LP 

          Westside
            Energy Operating Company, LP  

          

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    CREDIT
      AGREEMENT

    

    This
      CREDIT AGREEMENT, dated as of March 23, 2007, is entered into by and among
      WESTSIDE
      ENERGY PRODUCTION COMPANY, LP,
      a Texas
      limited partnership (“Westside
      Production”),
      WESTSIDE
      ENERGY OPERATING COMPANY, LP,
      a Texas
      limited partnership (“Westside
      Operating”),
      Westside Production and Westside Operating are each a “Borrower”,
      and
      are collectively, jointly and severally, “Borrowers”,
      the
      undersigned Guarantors, the financial institutions from time to time parties
      hereto (each a “Lender”
and
      collectively, “Lenders”)
      and
SPINDRIFT
      PARTNERS, L.P.,
      a
      Delaware limited partnership, as a Lender and as administrative agent for
      Lenders (in such capacity, “Administrative
      Agent”).

    

    RECITALS

    

    A.  Borrowers,
      as borrowers, Westside Energy Corporation, a Nevada corporation (“Parent”),
      as a
      guarantor, and GasRock Capital LLC, as lender, have entered into that certain
      Advancing Term Credit Agreement dated as of March 17, 2006 (the “Existing
      Credit Agreement”);

    

    B.  GasRock
      Capital LLC
      has
      assigned to Administrative Agent and Lenders all of its rights and obligations
      under the Existing Credit Agreement pursuant to that certain Loan Purchase
      and
      Assignment Agreement by and among GasRock
      Capital LLC and Lenders
      dated as
      of March 23, 2007 (the “Assignment
      Agreement”).

    

    C.  Borrowers,
      Lenders and Administrative Agent desire to amend and restate the Existing Credit
      Agreement in its entirety as set forth herein; and

    

    D.  Lenders
      are willing to make Loans upon the terms and subject to the conditions set
      forth
      in this Agreement.

    

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

    ARTICLE
      I.  

     

    DEFINITIONS

     

    ·  Certain
      Defined Terms. 

     

    In
      addition to the terms defined in the preamble of this Agreement, the following
      terms have the following meanings herein:

     

    “Administrative
      Agent”
means
      the Administrative Agent so named in the preamble, and any successor
      thereto.

     

    “Advance
      Payment Contracts”
means
      any contract whereby any Loan Party either (a) receives or becomes entitled
      to receive (either directly or indirectly) any payment (an “Advance
      Payment”)
      to be
      applied toward payment of the purchase price of Hydrocarbons to be produced
      from
      Hydrocarbon Interests owned by any Loan Party and which Advance Payment is
      paid
      or to be paid in advance of actual delivery of such production to or for the
      account of the purchaser regardless of such production, or (b) grants an
      option or right of refusal to the purchaser to take delivery of such production
      in lieu of payment, and, in either of the foregoing instances, the Advance
      Payment is, or is to be, applied as payment in full for such production when
      sold and delivered or is, or is to be, applied as payment for a portion only
      of
      the purchase price thereof or of a percentage or share of such production;
      provided that inclusion of the standard “take or pay” provision in any gas sales
      or purchase contract or any other similar contract shall not, in and of itself,
      constitute such contract as an Advance Payment Contract for the purposes
      hereof.

     

    “Affiliate”
means,
      as to any Person, any other Person which, directly or indirectly, is in control
      of, is controlled by, or is under common control with, such Person. A Person
      shall be deemed to control another Person if the controlling Person possesses,
      directly or indirectly, the power to direct or cause the direction of the
      management and policies of the other Person, whether through the ownership
      of
      voting securities, by contract, or otherwise.

     

    “Agent-Related
      Person”
means
      Administrative Agent’s Affiliates, and the officers, directors, employees,
      agents, and attorneys-in-fact of Administrative Agent and its
      Affiliates.

     

    “Agreement”
means
      this Credit Agreement including all Appendices, Schedules and Exhibits attached
      hereto, as same may be amended in writing from time to time.

     

    “Alternative
      Financings”
has
      the
      meaning set forth under Subsection
      7.05(d).

     

    “Asset
      Disposition”
shall
      mean any direct or indirect sale, lease (other than an operating lease entered
      into in the ordinary course of business), transfer, issuance or other
      disposition, or a series of related sales, leases, transfers, issuances or
      dispositions that are part of a common plan, of any oil and gas property (each
      referred to for the purposes of this definition as a “disposition”) by a
      Borrower, including dispositions by means of a merger, consolidation or similar
      transactions, and farm-outs, production sales or other contracts, farm-in
      agreements, area of mutual interest agreements and other similar agreements.
      Notwithstanding the preceding, the following items shall not be deemed to be
      Asset Dispositions:

     

    (a) a
      disposition by one Borrower to another Borrower;

     

    (b) a
      disposition or abandonment of obsolete or worn out equipment or equipment that
      is no longer useful in the conduct of the business of the Borrowers and that
      is
      disposed of in each case in the ordinary course of business; and

     

    (c) a
      sale,
      transfer or abandonment (whether or not in the ordinary course of business)
      of
      oil and gas properties; provided that at the time of such sale, transfer or
      abandonment such oil and gas properties do not have associated with them any
      material Proved Reserves. 

     

    “Assignment
      Agreement”
has
      the
      meaning set forth in the recitals to this Agreement.

     

    “Available
      Advance Amount”
means,
      as of Closing, the Maximum Loan Amount minus
      all
      outstanding “Obligations”
(as
      defined in the Existing Credit Agreement) under the Existing Credit
      Agreement. 

     

    “Bankruptcy
      Code”
means
      the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et
      seq.).

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or other day on which commercial banks
      located in the city of Administrative Agent’s address, as set forth on
Appendix
      I
      hereto,
      are authorized or required by law to close.

     

    “Capital
      Lease”
means,
      when used with respect to any Person, any lease in respect of which any of
      the
      obligations of such Person thereunder constitute Capitalized Lease
      Obligations.

     

    “Capitalized
      Lease Obligations”
means,
      all obligations of such Person to pay rent or other amounts under any lease
      of
      (or other arrangement conveying the right to use) real or personal property,
      or
      a combination thereof, which obligations shall have been or should be, in
      accordance with GAAP, capitalized on the books of such Person.

     

    “Cash
      Equivalents”
means:
      (a) securities issued or fully guaranteed or insured by the United States
      Government or any agency thereof and backed by the full faith and credit of
      the
      United States having maturities of not more than twelve (12) months from the
      date of acquisition; (b) certificates of deposit, time deposits, Eurodollar
      time
      deposits, or bankers’ acceptances having in each case a tenor of not more than
      three (3) months from the date of acquisition issued by any U.S. commercial
      bank
      or any branch or agency of a non-U.S. commercial bank licensed to conduct
      business in the U.S. having combined capital and surplus of not less than Five
      Hundred Million Dollars ($500,000,000); and (c) commercial paper of an issuer
      rated at least A-2 by S&P or P-2 by Moody’s at the time of acquisition, and
      in either case having a tenor of not more than twelve (12) months.

     

    “Change
      of Control”
means
      (a) a purchase or acquisition, directly or indirectly, by any “person” or
“group” within the meaning of Section 13(d)(3) and 14(d)(2) of the Securities
      Exchange Act of 1934 (a “Group”),
      of
“beneficial ownership” (as such term is defined in Rule 13d-3 under the Exchange
      Act) of securities of Parent which, together with any securities owned
      beneficially by any “affiliates” or “associates” of such Group (as such terms
      are defined in Rule 12b-2 under the Exchange Act), shall represent more than
      fifty percent (50%) of the combined voting power of Parent's securities which
      are entitled to vote generally in the election of directors and which are
      outstanding on the date immediately prior to the date of such purchase or
      acquisition; or (b) a sale of all or substantially all of the assets of Westside
      Production or of the Borrowers taken as a whole to any Person or Group; or
      (c)
      the liquidation or dissolution of a Borrower; or (d) the withdrawal or removal
      of Westside Energy GP, L.L.C. as general partner of any of the Borrowers; or
      (e)
      the sale or transfer by the current owners thereof of the membership interests
      or voting rights with respect to the membership interests of Westside Energy
      GP,
      L.L.C. or of the ownership interests in any Borrower. 

     

    “Closing”
means
      the date on which all conditions precedent set forth in Section
      4.01
      are
      satisfied or waived by Administrative Agent and Lenders.

     

    “Code”
means
      the Internal Revenue Code of 1986 and regulations promulgated
      thereunder.

     

    “Collateral”
means
      those certain Oil and Gas Properties of Borrowers and any Subsidiary thereof
      more particularly described on Appendix
      II
      attached
      hereto, plus all Oil and Gas attributable thereto, now existing or hereafter
      acquired.

     

    “Common
      Stock”
means
      common stock of Parent.

     

    “Contingent
      Obligation”
means,
      as to any Person without duplication, any direct or indirect liability of that
      Person with or without recourse, (a) with respect to any Indebtedness, dividend,
      letter of credit or other similar obligation (the “primary
      obligations”)
      of
      another Person (the “primary
      obligor”),
      including any Guaranty Obligation of that Person; (b) with respect to any Surety
      Instrument issued for the account of that Person or as to which that Person
      is
      otherwise liable for reimbursement of drawings or payments; or (c) to purchase
      any materials, supplies or other property from, or to obtain the services of,
      another Person if the relevant contract or other related document or obligation
      requires that payment for such materials, supplies or other property, or for
      such services, shall be made regardless of whether delivery of such materials,
      supplies or other property is ever made or tendered, or such services are ever
      performed or tendered. The amount of any Contingent Obligation shall, in the
      case of Guaranty Obligations, be deemed equal to the maximum stated or
      determinable amount of the primary obligation in respect of which such Guaranty
      Obligation is made or, if not stated or if indeterminable, the maximum
      reasonably anticipated liability in respect thereof, and in the case of other
      Contingent Obligations shall be equal to the maximum reasonably anticipated
      liability in respect thereof.

     

    “Contract
      Rate” has
      the
      meaning specified in Appendix
      I.

     

    “Contractual
      Obligation”
means,
      as to any Person, any provision of any security issued by such Person or of
      any
      agreement, undertaking, contract, indenture, mortgage, deed of trust or other
      instrument, document or agreement to which such Person is a party or by which
      it
      or any of its property is bound.

     

    “Conversion
      Option” has
      the
      meaning specified in Section
      2.05.

     

    “Conversion
      Price” has
      the
      meaning specified in Section
      2.05.
      

     

    “Conversion
      Shares” has
      the
      meaning specified in Section
      5.23.

     

    “Debtor
      Relief Laws”
means
      the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy,
      assignment for the benefit of creditors, moratorium, rearrangement,
      receivership, insolvency, reorganization, or similar debtor relief laws of
      the
      United States or other applicable jurisdictions from time to time in effect
      and
      affecting the rights of creditors generally.

     

    “Deed
      of Trust Assignment”
means
      the Assignment of Deed of Trust, Mortgage, Security Agreement, Financing
      Statement and Assignment of Production and Revenues dated as of the date hereof
      made by GasRock Capital LLC to Lenders in relation to the Deed of Trust (as
      defined in the Existing Credit Agreement).

     

    “Default”
means
      any event or circumstance which, with the giving of notice, the lapse of time,
      or both, would (if not cured or otherwise remedied during such time) constitute
      an Event of Default.

     

    “Default
      Rate”
has
      the
      meaning specified in Section
      2.04.

     

    “Dollars”,
      “dollars”
and
      “$”
each
      mean lawful money of the United States.

     

    “Environmental
      Claims”
means
      all claims by any Governmental Authority or other Person alleging potential
      liability or responsibility for violation of any Environmental Law, or for
      release or injury to the environment.

     

    “Environmental
      Complaint”
      means
      any complaint, summons, citation, notice, directive, order, claim, litigation,
      investigation, proceeding, judgment, letter or other communication from any
      federal, state or municipal authority or any other party against any Loan Party
      involving (a) a Hazardous Discharge from, onto or about any real property
      owned, leased or operated at any time by any Loan Party, (b) a Hazardous
      Discharge caused, in whole or in part, by any Loan Party or by any Person acting
      on behalf of or at the instruction of any Loan Party, or (c) any violation
      of any Environmental Law by any Loan Party. 

     

    “Environmental
      Laws”
means
      any law, statute, ordinance, rule, regulation, order or determination of any
      Governmental Authority (or other body exercising similar functions), affecting
      any real or personal property owned, operated or leased by any Loan Party or
      any
      other operation of any Loan Party in any way pertaining to health, safety or
      the
      environment, including all applicable health, safety and environmental laws
      and
      regulations, and further including (a) the Comprehensive Environmental
      Response, Compensation, and Liability Act of 1980, as amended by the Superfund
      Amendments and Reauthorization Act of 1986 (as amended from time to time, herein
      referred to as “CERCLA”),
      (b) the Resource Conservation and Recovery Act of 1976, as amended by the
      Used Oil Recycling Act of 1980, the Solid Waste Recovery Act of 1976, as amended
      by the Solid Waste Disposal Act of 1980, and the Hazardous and Solid Waste
      Amendments of 1984 (as amended from time to time, herein referred to as
“RCRA”),
      (c) the Safe Drinking Water Act, as amended, (d) the Toxic Substances
      Control Act, as amended, (e) the Clean Air Act, as amended, (f) the
      Occupational Safety and Health Act of 1970, as amended, (g) the laws, rules
      and regulations of any state having jurisdiction over any real or personal
      property owned, operated or leased by any Loan Party or any other operation
      of
      any Loan Party which relates to health, safety or the environment, as each
      may
      be amended from time to time, and (h) any federal, state or municipal laws,
      ordinances or regulations which may now or hereafter require removal of asbestos
      or other Hazardous Substances or impose any liability related to asbestos or
      other Hazardous Substances. The terms “petroleum”, “release” and “threatened
      release” have the meanings specified in CERCLA, and the terms “solid waste” and
“disposal” (or “disposed”) have the meanings specified in RCRA; provided,
      however, in the event either CERCLA or RCRA is amended so as to broaden the
      meaning of any term defined thereby, such broader meaning shall apply subsequent
      to the effective date of such amendment with respect to all provisions of this
      Agreement; and provided further that, to the extent the laws of the state in
      which any real or personal property owned, operated or leased by any Loan Party
      is located establish a meaning for “petroleum”, “release”, “solid waste” or
“disposal” which is broader than that specified in either CERCLA or RCRA, such
      broader meaning shall apply in so far as such broader meaning is applicable
      to
      the real or personal property owned, operated or leased by any such Loan Party
      and located in such state.

     

    “Environmental
      Liability”
means
      any liability, loss, fine, penalty, charge, Lien, damage, cost, or expense
      of
      any kind that results directly or indirectly, in whole or in part (a) from
      the
      violation of any Environmental Law, (b) from the release or threatened release
      of any Hazardous Substance, (c) from removal, remediation, or other actions
      in
      response to the release or threatened release of any Hazardous Substance, (d)
      from actual or threatened damages to natural resources, (e) from the imposition
      of injunctive relief or other orders, (f) from personal injury, death, or
      property damage which occurs as a result of any Loan Party’s use, storage,
      handling, or the release or threatened release of a Hazardous Substance, or
      (g)
      from any environmental investigation performed at, on, or for any real property
      owned by any Loan Party.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, and regulations promulgated
      thereunder.

     

    “ERISA
      Affiliate”
means
      any trade or business (whether or not incorporated) under common control with
      a
      Borrower within the meaning of Section 414(b), (c), (m) or (o) of the
      Code.

     

    “Event
      of Default”
means
      any of the events or circumstances specified in Section
      8.01.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended from time to time, and
      regulations promulgated thereunder.

     

    “Existing
      Credit Agreement”
means
      the Existing Credit Agreement so described in the recitals to this
      Agreement.

     

    “Existing Loan
      Documents”
means
      the Existing Credit Agreement, any note, guaranty, overriding royalty interest
      conveyance, security document and all other documents delivered pursuant to
      or
      in connection with the Existing Credit Agreement.

     

    “FRB”
means
      the Board of Governors of the Federal Reserve System, and any Governmental
      Authority succeeding to any of its principal functions.

     

    “GAAP”
means
      generally accepted accounting principles set forth from time to time in the
      opinions and pronouncements of the Accounting Principles Board and the American
      Institute of Certified Public Accountants and statements and pronouncements
      of
      the Financial Accounting Standards Board.

     

    “Gas
      Balancing Agreements”
means
      any agreement or arrangement whereby any Loan Party, or any other party having
      an interest in any Hydrocarbons to be produced from Hydrocarbon Interests in
      which any Loan Party owns an interest, has a right to take more than its
      proportionate share of production therefrom.

     

    “General
      Partner”
means
      Westside Energy GP, L.L.C., a Texas limited liability company.

     

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof,
      any
      central bank (or similar monetary or regulatory authority) thereof, any entity
      exercising executive, legislative, judicial, regulatory or administrative
      functions of or pertaining to government, and any corporation or other entity
      owned or controlled, through stock or capital ownership or otherwise, by any
      of
      the foregoing.

     

    “Guarantor”
means
      Parent, the General Partner and any Subsidiary that executes a Guaranty pursuant
      to Section
      6.15
      hereof.

     

    “Guaranty”
means
      a
      guaranty in the form of Exhibit
      A-1 or
      Exhibit A-2 attached
      hereto, as applicable, to
      be
      executed by each Guarantor (collectively, “Guaranties”).

     

    “Guaranty
      Obligations”
means
      with respect to any Indebtedness, dividend, letter of credit or other similar
      obligation (the “primary
      obligations”)
      of
      another Person (the “primary
      obligor”),
      including any obligation of that Person (a) to purchase, repurchase or otherwise
      acquire such primary obligations or any security therefor, (b) to advance or
      provide funds for the payment or discharge of any such primary obligation,
      or to
      maintain working capital or equity capital of the primary obligor or otherwise
      to maintain the net worth or solvency or any balance sheet item, level of income
      or financial condition of the primary obligor, (c) to purchase property,
      securities or services primarily for the purpose of assuring the owner of any
      such primary obligation of the ability of the primary obligor to make payment
      of
      such primary obligation, or (d) otherwise to assure or hold harmless the holder
      of any such primary obligation against loss in respect thereof.

     

    “Hazardous
      Discharge”
means
      any releasing, spilling, leaking, pouring, emitting, emptying, discharging,
      injecting, escaping, leaching, disposing or dumping of any Hazardous Substance
      from or onto any real property owned, leased or operated at any time by any
      Loan
      Party or any real property owned, leased or operated by any other
      party.

     

    “Hazardous
      Substance”
means
      any pollutant, toxic substance, hazardous waste, compound, element or chemical
      that is defined as hazardous, toxic, noxious, dangerous or infectious pursuant
      to any Environmental Law or which is otherwise regulated by any Environmental
      Law.

     

    “Hedge
      Agreements”
means
      all future contracts, forward contracts, swap, cap or collar contracts, option
      contracts, hedging contracts or other derivative contracts or similar agreements
      covering Oil and Gas commodities or prices or financial, monetary or interest
      rate instruments.

     

    “Highest
      Lawful Rate”
means,
      as of a particular date, the maximum nonusurious interest rate that under
      applicable federal and any applicable state law may then be contracted for,
      charged or received by Lenders in connection with the Obligations.

     

    “Hydrocarbons”
means
      oil, gas, casinghead gas, drip gasolines, natural gasoline, condensate,
      distillate, and all other liquid and gaseous hydrocarbons produced or to be
      produced in conjunction therewith, and all products, by-products and all other
      substances derived therefrom or the processing thereof.

     

    “Hydrocarbon
      Interests”
means
      leasehold and other interests in or under oil, gas and other liquid or gaseous
      hydrocarbon leases with respect to Oil and Gas located in or under those certain
      properties more particularly described in Appendix
      II,
      mineral
      fee interests, overriding royalty and royalty interests, net profit interests,
      production payment interests relating to Oil and Gas located in or under those
      certain properties more particularly described in Appendix
      II,
      including any beneficial, reserved or residual interest of whatever
      nature.

     

    “Immaterial
      Title Deficiencies”
means,
      with respect to Hydrocarbon Interests, defects or clouds on title, discrepancies
      in reported net revenue and working interest ownership percentages and other
      Liens, defects, discrepancies and similar matters which do not, individually
      or
      in the aggregate, affect Hydrocarbon Interests with a Recognized Value greater
      than four percent (4%) of the Recognized Value of all such Hydrocarbon
      Interests.

     

    “Indebtedness”
of
      any
      Person means, without duplication, (a) all indebtedness for borrowed money;
      (b)
      all obligations issued, undertaken or assumed as the deferred purchase price
      of
      property or services (other than trade payables entered into in the ordinary
      course of business on ordinary terms); (c) all non-contingent reimbursement
      or
      payment obligations with respect to Surety Instruments; (d) all obligations
      evidenced by notes, bonds, debentures or similar instruments, including
      obligations so evidenced incurred in connection with the acquisition of
      property, assets or businesses; (e) all indebtedness created or arising under
      any conditional sale or other title retention agreement, or incurred as
      financing, in either case with respect to property acquired by the Person (even
      though the rights and remedies of the seller or bank under such agreement in
      the
      event of default are limited to repossession or sale of such property)
      including, without limitation, production payments, net profit interests and
      other Hydrocarbon Interests subject to repayment out of future Oil and Gas
      production; (f) all obligations with respect to Capital Leases; (g) all
      indebtedness referred to in clauses (a) through (f) above secured by (or for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any Lien upon or in property (including accounts
      and contracts rights) owned by such Person, even though such Person has not
      assumed or become liable for the payment of such Indebtedness; and (i) all
      Guaranty Obligations in respect of indebtedness or obligations of others of
      the
      kinds referred to in clauses (a) through (g) above.

     

    “Indemnified
      Environmental Liabilities”
has
      the
      meaning specified in Section
      10.06.

     

    “Indemnified
      Liabilities”
has
      the
      meaning specified in Section
      10.05.

     

    “Indemnified
      Person”
has
      the
      meaning specified in Section
      10.05.

     

    “Insolvency
      Proceeding”
means
      (a) any case, action or proceeding relating to bankruptcy, reorganization,
      insolvency, liquidation, receivership, dissolution, winding up or relief of
      debtors, or (b) any general assignment for the benefit of creditors,
      composition, marshalling of assets for creditors, or other, similar arrangement
      in respect of its creditors generally or any substantial portion of its
      creditors; undertaken under U.S. Federal, state or foreign law, including the
      Bankruptcy Code.

     

    “IP
      Rights”
has
      the
      meaning specified in Section
      5.14.
      

     

    “IRS”
means
      the Internal Revenue Service, and any Governmental Authority succeeding to
      any
      of its principal functions under the Code.

     

    “Lender”
means
      each Person party hereto identified as a “Lender” on Appendix
      I
      hereto,
      and its successor and assigns, and “Lenders”
shall
      mean all Lenders collectively. 

     

    “Lender
      ORRI %”
has
      the
      meaning specified in Section
      2.06.

     

    “Lender’s
      Payment Office”
means,
      with respect to any Lender, the address set forth on Appendix
      I
      hereto,
      or such other address as such Lender or the Administrative Agent may from time
      to time specify. 

     

    “Lien”
means
      any security interest, mortgage, deed of trust, pledge, hypothecation,
      assignment, charge or deposit arrangement, encumbrance, lien (statutory or
      other) or preferential arrangement of any kind or nature whatsoever in respect
      of any property (including those created by, arising under or evidenced by
      any
      conditional sale or other title retention agreement and the interest of a lessor
      under a Capital Lease), any financing lease having substantially the same
      economic effect as any of the foregoing, or the filing of any financing
      statement naming the owner of the asset to which such Lien relates as debtor,
      under the Uniform Commercial Code or any comparable law and any contingent
      or
      other agreement to provide any of the foregoing.

     

    “Loans”
means
      the extensions of credit by Lenders in their Pro Rata Share of the Maximum
      Loan
      Amount to Borrowers.

     

    “Loan
      Documents”
means
      this Agreement, the Notes, the Registration Rights Agreement, any Guaranty,
      the
      ORRI Conveyance, the Security Documents, the Assignment Agreement, the Deed
      of
      Trust Assignment, the Release, the Notice of Borrowing and all other documents
      delivered to Administrative Agent or any Lender in connection
      herewith.

     

    “Loan
      Parties”
means
      collectively Borrowers, Parent and Guarantors, and "Loan
      Party"
      means
      each of the Parent, each of the Borrowers and each of the Guarantors,
      individually.

     

    “Majority
      Lenders”
means,
      at any time, Lenders holding at least sixty-six and two-thirds percent (66
      2/3%)
      of the Maximum Loan Amount.

     

    “Margin
      Stock”
means
      “margin stock” as such term is defined in Regulation T, U or X of the
      FRB.

     

    “Material
      Adverse Effect”
means
      (a) a material adverse change in, or a material adverse effect upon, the
      operations, business, properties or financial condition of the Loan Parties,
      taken as a whole; (b) a material impairment of the ability of the Loan Parties,
      taken as a whole, to perform under any Loan Document; or (c) a material adverse
      effect upon the legality, validity, binding effect or enforceability against
      any
      Loan Party of any Loan Document.

     

    “Material
      Contract”
means
      any contract or other arrangement to which any Loan Party is a party (other
      than
      the Loan Documents) for which breach, nonperformance or cancellation would
      reasonably be expected to have a Material Adverse Effect. 

     

    “Material
      Gas Imbalance”
means,
      with respect to all Gas Balancing Agreements to which any Loan Party is a party
      or by which any Hydrocarbon Interest owned by any Loan Party is bound, a net
      gas
      imbalance of Borrowers, individually or taken as a whole, owed to third parties
      in excess of five percent (5.0%) of engineered proved developed reserves. Gas
      imbalances will be determined based on written agreements, if any, specifying
      the method of calculation thereof.

     

    “Maximum
      Loan Amount”
means
      the amount set forth under Appendix
      I.

     

    “Mortgages”
means
      any mortgage, deed of trust, assignment of production, security agreement and
      financing statement from a Borrower to Administrative Agent (or any comparable
      instrument) and all supplements, assignments, amendments and restatements
      thereto (or any agreement in substitution therefor) which are executed and
      delivered to Administrative Agent pursuant to Article
      III
      of this
      Agreement.

     

    “Mortgaged
      Properties”
means
      the Oil and Gas Properties and such other properties upon which a Borrower
      has
      purported to grant a Lien in favor of Administrative Agent pursuant to the
      Mortgages.

     

    “Multiemployer
      Plan”
means
      a
“multiemployer
      plan,”
within
      the meaning of Section 4001(a)(3) of ERISA, to which a Borrower or any ERISA
      Affiliate makes, is making, or is obligated to make contributions or, during
      the
      preceding seven (7) calendar years, has made, or been obligated to make,
      contributions. 

     

    “Net
      Available Cash”
from
      an
      Asset Disposition shall mean cash payments received (including any Cash
      Equivalents or liquid securities or cash payments received by way of deferred
      payment of principal pursuant to a note or installment receivable or otherwise,
      but only as and when received, but excluding any other consideration received
      in
      the from of assumption by the acquiring person of debt or other obligations
      relating to the oil and gas properties that are the subject of such Asset
      Disposition or received in any other non-cash form) therefrom, in each case
      net
      of:

     

    (a) all
      legal, accounting, investment banking, title and recording tax expenses,
      commissions and other fees and expenses incurred, and all federal, state,
      provincial, foreign and local taxes required to be paid or accrued as a
      liability under GAAP as a consequence of such Asset Disposition;
      and

     

    (b) the
      deduction of appropriate amounts to be provided by the seller as a reserve,
      in
      accordance with GAAP, against any liabilities associated with the assets
      disposed of in such Asset Disposition and retained by the Borrowers after such
      Asset Disposition, provided, however, that such reserve amounts shall constitute
      Net Available Cash as soon as they have been released from such reserve.

     

    “North
      Properties”
means
      those certain Oil and Gas Properties of Borrowers and any Subsidiary thereof
      more particularly described on Appendix
      III
      attached
      hereto, plus all Oil and Gas attributable thereto, now existing or hereafter
      acquired.

     

    “Notes”
means
      the notes, substantially in the form of Exhibit
      B,
      issued
      by Borrowers hereunder to Lenders in their respective Pro Rata Share, including
      any amendment, modification, renewal or replacement of such promissory
      notes.

     

    “Notice
      of Capitalization/Conversion”
means
      a
      notice substantially in the form of Exhibit
      C
      hereto.

     

    “Obligations”
means
      the aggregate amount of all advances, debts, liabilities, obligations, covenants
      and duties of Borrowers or any other Loan Party arising under or evidenced
      by
      any Loan Document or owing by Borrowers or any other Loan Party to any Lender,
      Administrative Agent or any Indemnified Person, whether direct or indirect,
      absolute or contingent, due or to become due, now existing or hereafter arising
      under or evidenced by any Loan Document.

     

    “Off-Balance
      Sheet Liabilities”
means,
      with respect to any Person as of any date of determination thereof, without
      duplication and to the extent not included as a liability on the consolidated
      balance sheet of such Person and its Subsidiaries in accordance with GAAP:
      (a)
      with respect to any asset securitization transaction (including any accounts
      receivable purchase facility) (i) the unrecovered investment of purchasers
      or
      transferees of assets so transferred, and (ii) any other payment, recourse,
      repurchase, hold harmless, indemnity or similar obligation of such Person or
      any
      of its Subsidiaries in respect of assets transferred or payments made in respect
      thereof, other than limited recourse provisions that are customary for
      transactions of such type and that neither (x) have the effect of limiting
      the
      loss or credit risk of such purchasers or transferees with respect to payment
      or
      performance by the obligors of the assets so transferred nor (y) impair the
      characterization of the transaction as a true sale under applicable laws; (b)
      the monetary obligations under any financing lease or so-called “synthetic,” tax
      retention or off-balance sheet lease transaction which, upon the application
      of
      any Debtor Relief Law to such Person or any of its Subsidiaries, would be
      characterized as indebtedness; or (c) the monetary obligations under any sale
      and leaseback transaction which does not create a liability on the consolidated
      balance sheet of such Person and its Subsidiaries.

     

    “Oil
      and Gas”
means
      petroleum, natural gas and other related Hydrocarbons or minerals or any of
      them
      and all other substances produced or extracted in association
      therewith.

     

    “Oil
      and Gas Properties”
means,
      with respect to the properties more particularly described on Appendix
      II,
      any and
      all Hydrocarbon Interests now owned or hereafter acquired by a Borrower, or
      any
      Subsidiary thereof, and contracts executed in connection therewith and all
      tenements, hereditaments, appurtenances, and properties belonging, affixed
      or
      incidental to such Hydrocarbon Interests, including, without limitation, any
      and
      all property, real or personal, now owned or hereafter acquired by a Borrower
      or
      any Subsidiary thereof and situated upon or to be situated upon, and used,
      built
      for use, or useful in connection with the operating, working or developing
      of
      such Hydrocarbon Interests, including, without limitation, any and all petroleum
      and/or natural gas wells, structures, field separators, liquid extractors,
      plant
      compressors, pumps, pumping units, field gathering systems, tank and tank
      batteries, fixtures, valves, fittings, machinery and parts, engines, boilers,
      liters, apparatus, equipment, appliances, tools, implements, cables, wires,
      towers, tubing and rods, surface leases, rights-of-way, easements and
      servitudes, and all additions, substitutions, replacements for, fixtures and
      attachments to any and all of the foregoing owned directly or indirectly by
      a
      Borrower and its Subsidiaries.

     

    “Operating
      Lease”
means
      any lease, sublease, license or similar arrangement (other than a Capital Lease
      and other than leases with a primary term of one year or less or which can
      be
      terminated by the lessee upon notice of one year or less without incurring
      a
      penalty) pursuant to which a Person leases, subleases or otherwise is granted
      the right to occupy, take possession of, or use property whether real, personal
      or mixed; provided, that “Operating
      Lease”
shall
      not include oil, gas or mineral leases, easements, right of way grants, surface
      use agreements, and similar real property agreements entered into in the
      ordinary course of the oil and gas exploration and production
      business.

     

    “Operator”
means
      any operators, including, contract operators, of the Oil and Gas Properties
      (as
      such terms are generally understood in the oil and gas industry) and, includes,
      in any event, Westside Operating.

     

    “Organization
      Documents”
means,
      for any corporation: the articles of incorporation, the bylaws, any certificate
      of determination or instrument relating to the rights of the shareholders of
      such corporation, any shareholder rights agreement, and all applicable
      resolutions of the board of directors (or any committee thereof) of such
      corporation; for any limited liability company: the articles of organization,
      the regulations or operating agreement, certificate of organization and all
      applicable resolutions of the members of such company; and for any limited
      partnership: the certificate of limited partnership, the limited partnership
      agreement and all Organization Documents for its general partner as any of
      the
      foregoing have been amended or supplemented from time to time.

     

    “Other
      Taxes”
means
      any present or future mortgage tax, stamp or documentary taxes or any other
      excise or property taxes, charges or similar levies which arise from any payment
      made hereunder or from the execution, delivery or registration of, or otherwise
      with respect to, this Agreement or any other Loan Documents. 

     

    “Overriding
      Royalty Interests”
means
      the overriding royalty interests described in Subsection
      2.06(a).

     

    “ORRI
      Conveyance”
means
      any assignment of Overriding Royalty Interests in the form of Exhibit
      D
      hereto.

     

    “Parent”
means
      the Parent so named in the recitals to this Agreement.

     

    “Parent
      Guaranty”
means
      the Guaranty executed by Parent.

     

    ”Participant”
has
      the
      meaning specified in Section
      10.07.

     

    “Payment
      Date” means
      (i)
      March 15 and September 15 of each calendar year, commencing September 15, 2007,
      until the Termination Date, and (ii) the Termination Date.

     

    “Pension
      Plan”
means
      a
      pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA,
      other than a Multiemployer Plan, which a Borrower sponsors, maintains, or to
      which it makes, is making, or is obligated to make contributions, or in the
      case
      of a Multiemployer Plan (as described in Section 4064(a) of ERISA) has made
      contributions at any time during the immediately preceding five (5) plan
      years.

     

    “Permitted
      Consideration”
has
      the
      meaning set forth in Section
      7.02.
      

     

    “Permitted
      Liens”
has
      the
      meaning set forth in Section
      7.01.

     

    “Person”
means
      an individual, partnership, limited partnership, corporation, limited liability
      company, business trust, joint stock company, trust, unincorporated association,
      joint venture or Governmental Authority.

     

    “Plan”
means
      an employee benefit plan (as defined in Section 3(3) of ERISA) which is subject
      to ERISA, other than a Multiemployer Plan, and which a Borrower sponsors or
      maintains or to which a Borrower makes, is making, or is obligated to make
      contributions and includes any Pension Plan.

     

    “Principal
      Business”
means
      the business of the exploration for, development of, and the acquisition,
      production, gathering and upstream marketing of Oil and Gas.

     

    “Pro
      Rata Share”
means,
      as to any Lender at any time, the percentage set forth opposite its name on
      Appendix
      I
      hereto,
      as amended from time to time.

     

    “Proved
      Reserves”
has
      the
      meaning given to such term by the Society of Petroleum Engineers. 

     

    “Recognized
      Value”
means
      with respect to Hydrocarbon Interests, the discounted present value of the
      estimated net cash flow to be realized from the production of Hydrocarbons
      from
      such Hydrocarbon Interests.

     

    “Registration
      Rights Agreement”
means
      that certain Registration Rights Agreement of even date herewith between
      Borrowers, Parent and Lenders.

     

    “Regulation
      T”,
      “Regulation
      U”
and
      “Regulation
      X”
means
      Regulation T, Regulation U and Regulation X, respectively, of the
      FRB.

     

    “Related
      Fund”
means,
      with respect to any Lender that is a fund that invests (in whole or in part)
      in
      commercial loans, any other fund that invests (in whole or in part) in
      commercial loans and is managed by the same investment advisor as such Lender
      or
      by an Affiliate of such investment advisor.

     

    “Release”
means
      (i) the amended ISDA Master Agreement between Keybank National Association
      and
      Borrowers and (ii) the written consent of Keybank National Association to the
      transactions contemplated by the Assignment Agreement and the Deed of Trust
      Assignment, including the release of collateral in relation thereto.

     

    “Requirement
      of Law”
means,
      as to any Person, any law (statutory or common), treaty, rule or regulation
      or
      determination of an arbitrator or of a Governmental Authority, in each case
      applicable to or binding upon such Person or any of its property or to which
      such Person or any of its property is subject.

     

    “Reserves”
means
      those quantities of Oil and Gas which are anticipated to be commercially
      recovered from known accumulations from a given date forward including “Proved
      Reserves,” “Probable Reserves” and “Possible Reserves” as those reserves are
      denominated and determined in accordance with the methods commonly accepted
      by
      the Society of Petroleum Engineers for evaluating Oil and Gas
      reserves.

     

    “Responsible
      Officer”
means,
      with respect to any Loan Party, the president or such other individual
      designated as a Responsible Officer by the directors, managers, general partner
      or comparable governing body of such Loan Party.

     

    “SEC”
means
      the Securities and Exchange Commission.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Security
      Documents”
means
      the Mortgages, collateral assignments, security
      agreements, pledges, assignments, control agreements, and related financing
      statements listed on Schedule
      I
      as the
      same may be amended, supplemented or modified from time to time and any and
      all
      other instruments now or hereafter executed in connection with or as security
      for the payment of the Obligations.

     

    “Solvent”
means,
      as to any Person at any time, that (a) the fair value of all of the property
      of
      such Person is greater than the amount of such Person’s liabilities (including
      disputed, contingent and unliquidated liabilities) as such value is established
      and liabilities evaluated for purposes of Section 101(32) of the Bankruptcy
      Code; (b) the present fair saleable value of all of the property of such Person
      is not less than the amount that will be required to pay the probable liability
      of such Person on its debts as they become absolute and matured; (c) such Person
      does not intend to, and does not believe that it will, incur debts or
      liabilities beyond such Person’s ability to pay as such debts and liabilities
      mature; and (d) such Person is not engaged in a business or a transaction,
      and
      is not about to engage in a business or a transaction, for which such Person’s
      property would constitute unreasonably small capital.

     

    “Stated
      Maturity Date”
means
      the date set forth on Appendix
      I
      stated
      to be the maturity date for the Notes.

     

    “Subsidiary”
of
      a
      Person means any corporation, association, partnership, joint venture or other
      business entity of which more than 50% of the voting stock or other equity
      interests (in the case of Persons other than corporations), is owned or
      controlled directly or indirectly by the Person, or one or more of the
      Subsidiaries of the Person, or a combination thereof. Unless the context
      otherwise clearly requires, references herein to a “Subsidiary” refer to a
      Subsidiary of a Borrower.

     

    “Surety
      Instruments”
means
      all letters of credit (including standby), banker’s acceptances, bank
      guaranties, shipside bonds, surety bonds and similar instruments.

     

    “Taxes”
means
      any and all present or future taxes, levies, imposts, deductions, charges or
      withholdings, and all liabilities with respect thereto, excluding, in the case
      of each Lender and Administrative Agent, such taxes (including income taxes
      or
      franchise taxes) as are imposed on or measured by such Lender's or
      Administrative Agent's net income by the jurisdiction (or any political
      subdivision thereof) under the laws of which such Lender or Administrative
      Agent, as the case may be, is organized or maintains a lending office or is
      otherwise doing business.

     

    “Termination
      Date”
means
      the earlier of (a) the Stated Maturity Date, or (b) the date on which the Loans
      are due and payable in accordance with the provisions of this
      Agreement.

     

    “United
      States”
and
      “U.S.”
each
      means the United States of America.

     

    ·  Other
      Interpretive Provisions. 

     

    The
      meanings of defined terms are equally applicable to the singular and plural
      forms of the defined terms. Unless otherwise specified or the context clearly
      requires otherwise, the words “hereof”, “herein”, “hereunder” and similar words
      refer to this Agreement as a whole and not to any particular provision of this
      Agreement; and Subsection, Section, Schedule and Exhibit references are to
      this
      Agreement. The term “documents” includes any and all instruments, documents,
      agreements, certificates, indentures, notices and other writings, however
      evidenced. The term “including” is not limiting and means “including without
      limitation.” In the computation of periods of time from a specified date to a
      later specified date, the word “from” means “from and including”; the words “to”
and “until” each mean “to but excluding”, and the word “through” means “to and
      including.” Unless otherwise expressly provided herein, (a) references to
      agreements (including this Agreement) and other contractual instruments shall
      be
      deemed to include all subsequent amendments and other modifications thereto,
      but
      only to the extent such amendments and other modifications are not prohibited
      by
      the terms of any Loan Document, and (b) references to any statute or regulation
      are to be construed as including all statutory and regulatory provisions
      consolidating, amending, replacing, supplementing or interpreting the statute
      or
      regulation. The captions and headings of this Agreement are for convenience
      of
      reference only and shall not affect the interpretation of this Agreement. This
      Agreement and the other Loan Documents are the result of negotiations among
      and
      have been reviewed by counsel to Lenders, Administrative Agent and Borrowers,
      and are the products of all parties. Accordingly, they shall not be construed
      against Borrowers, Lenders, or Administrative Agent merely because of their
      involvement in the preparation thereof.

     

    ·  Accounting
      Principles. 

     

    Unless
      the context otherwise clearly requires, all accounting terms not expressly
      defined herein shall be construed, and all financial computations required
      under
      this Agreement shall be made in accordance with GAAP, consistently
      applied.

     

    References
      herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of
      Parent.

     

    ARTICLE
      II.  

     

    THE
      CREDIT

     

    ·  Amounts
      and Terms of the Loan. 

     

    Each
      Lender severally agrees, on the terms and conditions set forth herein, to make
      Loans to Borrowers in an aggregate principal amount up to such Lender’s Pro Rata
      Share of the Maximum Loan Amount. At Closing, each Lender severally agrees
      to
      advance to Borrowers in a single advance its respective Pro Rata Share of the
      Available Advance Amount and at Closing each Lender shall assume, by way of
      assignment from GasRock Capital LLC, its Pro Rata Share of the outstanding
      “Obligations” (as defined in the Existing Credit Agreement). The obligation of
      Borrowers to repay the Loans made by Lenders, together with interest accruing
      thereon, shall be evidenced by the Notes. If Borrowers pay or prepay any portion
      of the Loans under this Agreement, then such portion may not be re-borrowed.
      

     

    ·  Borrowing
      Mechanics.

     

    (a) Out
      of
      the borrowing to be made on the date of Closing, (i) $12,642,697.19 shall be
      borrowed and be disbursed to account number 3100026081 with PlainsCapital Bank,
      2911 Turtle Creek Boulevard, Dallas, Texas 75219, ABA 111322994, for further
      credit to Westside Energy Operating Company, LP, and (ii) $12,357,302.81 be
      borrowed and disbursed in accordance with Appendix
      I attached
      hereto and in accordance with the disbursement authorization dated as of even
      date herewith made by Borrowers in favor of Administrative Agent. 

     

    (b) Not
      later
      than 1:00 p.m. (Boston time) on the date of Closing, each Lender shall make
      available an amount equal to its Pro Rata Share of the aggregate amount to
      be
      borrowed hereunder on the date of Closing in immediately available funds to
      Administrative Agent at its address set forth on the signature page hereof.
      Unless Administrative Agent determines that any applicable condition specified
      in Article
      IV
      has not
      been satisfied, Administrative Agent will make the funds so received from
      Lenders available to Borrowers at Administrative Agent’s aforesaid address.

     

    ·  Prepayment. 

     

    In
      addition to mandatory repayments of the Notes under Section
      2.04,
      Borrowers may, at any time, prepay the Loans in full, or in minimum amounts
      of
      $100,000.00 or integral multiples thereof, plus accrued and unpaid interest
      to
      the date of such prepayment, without penalty or premium, upon irrevocable notice
      to the Administrative Agent of not less than five (5) Business Days.

     

    ·  Interest;
      Repayment. 

     

    (a) The
      outstanding principal amount under each of the Notes shall bear interest from
      Closing at a rate per annum equal to the lesser of (i) the Contract Rate, or
      (ii) the Highest Lawful Rate, and such interest shall be paid in arrears on
      each
      Payment Date to each Lender in its respective Pro Rata Share. Notwithstanding
      the foregoing, while any Event of Default exists, Borrowers shall pay interest
      (after, as well as before, entry of judgment thereon, to the extent permitted
      by
      law) on the outstanding principal amount of the Loans, at a rate per annum
      equal
      to the lesser of (x) the Highest Lawful Rate or (y) the Default Rate; set forth
      on Appendix
      I
      (the
“Default
      Rate”).

     

    (b) (i)
      On
      each Payment Date, Borrowers may pay, in immediately available funds, the full
      amount of the accrued but unpaid interest due on such Payment Date to each
      Lender in its respective Pro Rata Share; or (ii) if Borrowers elect not to
      pay
      the full amount of accrued but unpaid interest on such Payment Date, Borrowers
      shall give written notice to the Administrative Agent fifteen (15) days prior
      to
      such Payment Date of such decision stating the amount of accrued interest
      Borrowers elect not to pay in cash and each Lender shall then decide whether
      such accrued interest shall be: (A) satisfied by conversion to Common Shares
      as
      provided in Section
      2.05;
      or (B)
      capitalized, thereby increasing the original principal amount of the Loans
      by an
      amount equal to the amount of such capitalized interest, and all such
      capitalized interest shall accrue interest and be repaid in the same manner
      as
      the original principal amount of the Loans in accordance with Sections
      2.04(a) and
      (c).
      

     

    (c)
       On
      the
      Termination Date, Borrowers shall repay an amount equal to any outstanding
      principal under the Notes remaining on such date, together with all accrued
      but
      unpaid interest and outstanding expenses hereunder or under the Loan
      Documents.

     

    ·  Conversion.

     

    (a) Pursuant
      to Section
      2.04(b),
      if a
      Lender elects to convert all or a portion of the accrued but unpaid interest
      owed on a Payment Date after Closing, then, upon providing a Notice of
      Capitalization/Conversion to Borrowers, such accrued unpaid interest owing
      to
      such Lender shall be converted into fully paid and non-assessable shares of
      Common Stock (the “Conversion
      Option”).
      

     

    (b) Upon
      receipt of such Notice of Capitalization/Conversion, Borrowers shall (i)
      promptly send a copy of such notice to the Administrative Agent, and (ii) give
      effect promptly to the conversion requested by delivering or causing to be
      delivered to each such Lender, a certificate representing the number of shares
      of Common Stock owed each such Lender together
      with
      corresponding assignment or transfer powers duly executed in blank.

     

    (c) The
      Conversion Option shall be exercised on the terms set forth herein and in the
      Notes and at the conversion price set forth on Appendix
      I
      hereto
      (the “Conversion
      Price”),
      and
      the Obligations owing to such Lender shall be deemed to have been repaid by
      an
      amount equal to the number of shares received by such Lender times the
      Conversion Price.

     

    (d) No
      fractional shares or scrip representing fractional shares shall be transferred
      upon the exercise of the conversion rights provided herein. In lieu thereof,
      any
      such fractional share shall be rounded upward to a whole share.

     

    (e) Parent
      acknowledges the right of Lenders to utilize the Conversion Option and agrees
      to
      promptly do all acts and things, and will execute and file or record, as
      necessary, all instruments, documents or agreements necessary to effectuate
      the
      conversion as set forth above in this Section
      2.05
      and to
      issue and enable Borrowers to deliver to Lenders Common Stock as contemplated
      by
      this Section
      2.05.

     

    ·  Fees
      and Overriding Royalty Interests.

     

    (a) Overriding
      Royalty Interest.
      At
      Closing, Borrowers shall convey to each Lender pursuant to an instrument
      substantially in the form of Exhibit
      D
      hereto,
      its Pro Rata Share of an overriding royalty interest equal to the aggregate
      percentage of 8/8ths set forth on Appendix
      I
      hereto
      (the “Lender
      ORRI %”),
      proportionately reduced to Borrowers’ working interest, in and to all Oil and
      Gas produced, saved and marketed from the initial Mortgaged Properties.
      Notwithstanding anything to the contrary set forth herein, Section
      2.09
      and
Section
      2.10
      shall
      apply to neither the conveyance of this Pro Rata Share nor any payments
      thereunder. 

     

    (b) Other
      Fees.
      Borrowers shall pay such other fees at Closing as required under Section
      4.01(c) and
      as
      Borrowers shall be required to pay pursuant to any separate agreement between
      Borrowers and Administrative Agent or any of its Affiliates setting forth the
      compensation to be paid to Administrative Agent and/or its Affiliates in
      consideration of providing services in connection with the credit facilities
      provided pursuant hereto.

     

    (c) Fees
      Fully Earned.
      Borrowers agree that as of Closing all such fees and Overriding Royalty
      Interests as provided under this Section
      2.06 shall
      be
      fully earned. 

     

    ·  Computation
      of Fees and Interest. 

     

    All
      computations of interest for the Loans and all other computations of fees shall
      be made on the basis of actual days elapsed (including the first day but
      excluding the last day) and a calendar year consisting of 365 or 366 days,
      as
      applicable.

     

    ·  Payments
      by Borrowers.

     

    (a) All
      payments to be made by Borrowers shall be made to Administrative Agent, for
      the
      account of Lenders, without set-off, recoupment or counterclaim. Except as
      otherwise expressly provided herein, all payments by Borrowers shall be made
      to
      Administrative Agent at its Payment Office, and shall be made in dollars and
      in
      immediately available funds, no later than 11:00 a.m. (Central time) on the
      date
      due. Any payment received by Administrative Agent later than 11:00 a.m. (Central
      time) shall be deemed to have been received on the following Business Day and
      any applicable interest or fee shall continue to accrue.

     

    (b) Whenever
      any payment is due on a day other than a Business Day, such payment shall be
      made on the following Business Day, and such extension of time shall in such
      case be included in the computation of interest or fees, as the case may
      be.

     

    ·  Increased
      Costs and
      Reduced Return.

     

    If
      any
      Lender determines in good faith that as a result of the introduction of or
      any
      change in or in the interpretation of any Requirement of Law, or such Lender’s
      compliance therewith, in each case after the date hereof, there shall be any
      increase in the cost to such Lender of agreeing to make or making, funding
      or
      maintaining Loans, or a reduction in the amount received or receivable by such
      Lender in connection with any of the foregoing (excluding for purposes of this
      Section
      2.09
      any such
      increased costs or reduction in amount resulting from changes in the basis
      of
      taxation of overall net income or overall gross income by the United States
      or
      any foreign jurisdiction or any political subdivision of either thereof under
      the laws of which such Lender is organized or has its Lender’s Payment Office,
      or is otherwise doing business) then from time to time upon demand of such
      Lender (with a copy of such demand to the Administrative Agent), Borrowers
      shall
      pay to such Lender such additional amounts as will compensate such Lender for
      such increased cost or reduction.

     

    ·  Taxes.

     

    (a) Any
      and
      all payments by Borrowers hereunder or under the Notes shall be made free and
      clear of and without deduction for any and all present or future Taxes. If
      Borrowers shall be required by any Requirement of Law to deduct any Taxes from
      or in respect of any sum payable hereunder or under the Notes to Lenders, then
      (i) the sum payable shall be increased as may be necessary so that after
      making all required deductions (including deductions applicable to additional
      sums payable under this Section 2.10)
      Lenders
      receive an amount equal to the sum they would have received had no such
      deductions been made, (ii) Borrowers shall make such deductions, and (iii)
      Borrowers shall pay the full amount deducted to the relevant taxation authority
      or other authority in accordance with applicable law.

     

    (b) In
      addition, Borrowers agree to pay any Other Taxes.

     

    (c) Borrowers
      will indemnify Lenders for the full amount of Taxes or Other Taxes (including,
      without limitation, any Taxes or Other Taxes imposed by any jurisdiction on
      amounts payable under this
      Section 2.10)
      paid by
      Lenders or any liability (including penalties and interest) arising therefrom
      or
      with respect thereto, whether or not such Taxes or Other Taxes were correctly
      or
      legally asserted. This indemnification shall be made within five (5) days from
      the date any Lender makes written demand therefor. Lenders shall reasonably
      cooperate with Borrowers to obtain a refund of any Taxes or Other Taxes that
      were incorrectly withheld or paid (which for the avoidance of doubt shall not
      include an obligation on Lenders to request any information from or request
      any
      action to be taken by its beneficial owners) and Lenders shall pay such refund
      to Borrowers within 30 days after receipt thereof. 

     

    (d) Within
      30
      days after the date of any payment of Taxes, Borrowers will furnish to
      Administrative Agent at its address for notices set forth on Appendix
      I,
      the
      original or a certified copy of a receipt evidencing payment
      thereof.

     

    (e) Without
      prejudice to the survival of any other agreement of Borrower hereunder, the
      agreements and obligations of each Borrower contained in this Section 2.10
      shall
      survive the termination of the commitments under this Agreement and the payment
      in full of the Obligations.

     

    ·  Sharing
      of Payments. 

     

    If
      any
      Lender shall obtain on account of the Obligations, any payment (whether
      voluntary, involuntary, through the exercise of any right of set-off, or
      otherwise) or receive any Collateral in respect thereof in excess of the amount
      such Lender was entitled to receive pursuant to the terms hereof, such Lender
      shall immediately (a) notify Administrative Agent of such fact, and (b) purchase
      from the other Lenders such participations in the Loans made by them as shall
      be
      necessary to cause such purchasing Lender to share the excess payment according
      to the terms hereof; provided,
      however,
      that if
      all or any portion of such excess payment is thereafter recovered from the
      purchasing Lender, such purchase shall, to that extent, be rescinded and each
      other Lender shall repay to the purchasing Lender the purchase price paid
      therefor, together with an amount equal to such paying Lender’s ratable share
      (according to the proportion of (i) the amount of such paying Lender’s required
      repayment to (ii) the total amount so recovered from the purchasing Lender)
      of
      any interest or other amount paid or payable by the purchasing Lender in respect
      of the total amount so recovered. Borrowers agree that any Lender so purchasing
      a participation from another Lender may, to the fullest extent permitted by
      law,
      exercise all its rights of payment (including the right of set-off) with respect
      to such participation as fully as if such Lender were the direct creditor of
      Borrowers in the amount of such participation. Administrative Agent will keep
      records (which shall be conclusive and binding in the absence of manifest error)
      of participations purchased under this Section
      2.11
      and will
      in each case notify Lenders following any such purchases or
      repayments.

     

    ARTICLE
      III.  

     

    SECURITY

     

    ·  The
      Security. 

     

    The
      Obligations will be secured by a first and prior Lien on all of the Collateral,
      now or hereafter acquired. 

     

    ·  Agreement
      to Deliver Security Documents. 

     

    Borrowers
      agree to notify Administrative Agent in writing of any additional interests
      acquired by a Borrower or any Subsidiary in the Collateral (including in any
      proceeds thereof or in any property or interests acquired from such proceeds)
      or
      of any proceeds from the sale of any of the North Properties or of any
      additional property or interests acquired by a Borrower or any Subsidiary from
      the proceeds of a sale of any of the North Properties, and, if requested by
      Administrative Agent, to promptly deliver to Administrative Agent to further
      secure the Obligations, deeds of trust, mortgages, chattel mortgages, security
      agreements, financing statements, letters in lieu of production, and other
      Security Documents in form and substance satisfactory to Administrative Agent
      covering any such proceeds, properties or interests, for the purpose of
      granting, confirming, and perfecting first and prior Liens or security
      interests. Borrowers agree to use reasonable efforts to obtain a release of
      any
      prior Lien on any such proceeds, properties or interests. 

     

    ·  Perfection
      and Protection of Security Interests and Liens. 

     

    Loan
      Parties, as applicable, will from time to time deliver to Administrative Agent
      any financing statements, amendments, assignments and continuation statements,
      extension agreements and other documents, properly completed (and executed
      and/or acknowledged when required) by such Loan Parties in form and substance
      satisfactory to Administrative Agent, which Administrative Agent requests for
      the purpose of perfecting, confirming, or protecting any Liens or other rights
      in Collateral securing any Obligations. Loan Parties hereby authorize
      Administrative Agent to file, in any applicable jurisdiction where
      Administrative Agent deems it necessary, a financing statement or statements,
      and at the request of Administrative Agent, Loan Parties will join
      Administrative Agent in executing one or more financing statements pursuant
      to
      the applicable Uniform Commercial Code in form satisfactory to Administrative
      Agent, and will pay the cost of filing or recording such instrument, as a
      financing statement, in all public offices at any time and from time to time
      whenever filing or recording of any financing statement is deemed by
      Administrative Agent to be necessary.

     

    ·  Offset. 

     

    To
      secure
      the repayment of the Obligations, Loan Parties hereby grant Lenders a security
      interest, Lien, and right of offset, each of which shall be in addition to
      all
      other interests, Liens, and rights of Lenders at common law, under the Loan
      Documents or otherwise, and each of which shall be upon and against (a) any
      and
      all moneys, securities or other property (and the proceeds therefrom) of Loan
      Parties now or hereafter held or received by or in transit to Lenders from
      or
      for the account of Loan Parties, whether for safekeeping, custody, pledge,
      transmission, collection or otherwise, and (b) any other credits and claims
      of a
      Loan Party at any time existing against Lenders. Upon the occurrence of any
      Event of Default, each Lender is hereby authorized to foreclose upon, offset,
      appropriate, and apply, at any time and from time to time, without notice to
      Loan Parties, any and all items hereinabove referred to against the Obligations
      then due and payable.

     

    ARTICLE
      IV.  

     

    CONDITIONS
      PRECEDENT

     

    ·  Conditions
      Precedent. 

     

    The
      obligation of Lenders to make the Loans is subject to the condition that
      Administrative Agent shall have received the following, in form and substance
      satisfactory to Administrative Agent and Lenders:

     

    (a) Credit
      Agreement and Other Loan Documents.
      The
      Loan Documents, executed by each party thereto, and where appropriate, properly
      acknowledged and notarized;

     

    (b) Secretary’s
      Certificate.
      A
      certificate of the Secretary or Assistant Secretary of each Borrower and each
      Guarantor, or in the event that any such Person is a limited partnership, such
      Person’s general partner, certifying as of the Closing to: (i) resolutions of
      the board of directors or members of such Person or such Person’s general
      partner, as applicable, authorizing the transactions contemplated hereby; (ii)
      the names and genuine signatures of the Responsible Officers of such Person
      or
      such Person’s general partner, as applicable, authorized to execute, deliver and
      perform, as applicable, this Agreement, the Security Documents and all other
      Loan Documents to be delivered hereunder; (iii) the Organization Documents
      of
      such Person and, as applicable, such Person’s general partner, as in effect at
      Closing; (iv) the good standing certificate for such Person or such Person’s
      general partner, as applicable, from its state of incorporation, formation
      or
      organization, as applicable, evidencing its qualification to do business in
      such
      state as of a date no more than thirty (30) days prior to Closing; and (v)
      as
      applicable, certificate(s) of authority for such Person from foreign states
      wherein such Person conducts business, evidencing such Person’s qualification to
      do business in such state as of a date no more than thirty (30) days prior
      to
      Closing;

     

    (c) Payment
      of Fees.
      Payment
      by Borrowers of all accrued and unpaid fees, costs and expenses owed pursuant
      to
      this Agreement to the extent then due and payable at Closing including such
      fees
      set forth on Appendix
      I,
      including any such costs, fees and expenses arising under or referenced in
      Sections
      2.06
      and
10.05;
      

     

    (d) Opinions
      of Counsel.
      Opinions of Loan Parties’ counsel under New York law and Nevada law in form and
      substance satisfactory to Administrative Agent including, among other matters,
      the due formation, standing and authorization of the Loan Parties and as to
      the
      enforceability of the Loan Documents, perfection of the Security Documents,
      the
      authorized capitalization of Parent and choice of laws;

     

    (e) Additional
      Conditions Precedent.
      Borrowers shall deliver or cause to be delivered such additional documentation
      and such other conditions shall be satisfied as set forth on Appendix
      I
      hereto.

     

    ARTICLE
      V.  

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Each
      Loan
      Party represents and warrants to Administrative Agent and Lenders
      that:

     

    ·  Corporate
      Existence and Power. 

     

    Such
      Loan
      Party: (a) is validly existing and in good standing under the laws of the state
      of its incorporation, formation or organization, as applicable; (b) has the
      power and authority and all material governmental licenses, authorizations,
      consents and approvals to own its assets, carry on its business as currently
      conducted and to execute, deliver, and perform its obligations under the Loan
      Documents, (c) is duly qualified, is licensed and is in good standing under
      the
      laws of each jurisdiction where its ownership, lease or operation of property
      or
      the conduct of its business requires any such qualification or license; and
      (d)
      is in compliance in all material respects with all Requirements of
      Law.

     

    ·  Corporate
      Authorization; No Contravention. 

     

    The
      execution, delivery and performance by each Loan Party of this Agreement and
      each other Loan Document to which such Person is a party, have been duly
      authorized by all necessary corporate, partnership or limited liability company
      actions, as applicable, and do not and will not: (a) contravene the terms of
      any
      of that Person's Organization Documents; (b) conflict with or result in any
      breach or contravention of, or the creation of any Lien under, any document
      evidencing any Contractual Obligation to which such Person is a party or any
      order, injunction, writ or decree of any Governmental Authority to which such
      Person or its property is subject; or (c) violate any Requirement of
      Law.

     

    ·  Governmental
      Authorization. 

     

    No
      approval, consent, exemption, authorization, or other action by, or notice
      to,
      or filing with, any Governmental Authority is necessary or required in
      connection with the execution, delivery or performance by, or enforcement
      against, any Loan Party of this Agreement or any other Loan Document to which
      it
      is a party.

     

    ·  Binding
      Effect. 

     

    This
      Agreement and each other Loan Document to which each Loan Party is a party
      constitute the legal, valid and binding obligations of such Person to the extent
      it is a party thereto, enforceable against such Person in accordance with their
      respective terms, except as enforceability may be limited by applicable
      bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to
      enforceability.

     

    ·  Financial
      Condition. 

     

    (a) The
      audited annual financial statements contained in the most recent Form 10-K
      of
      Parent filed with the SEC (i) were prepared in accordance with GAAP consistently
      applied throughout the period covered thereby, except as otherwise expressly
      noted therein; (ii) fairly present in all material respects the financial
      condition of Parent and its Subsidiaries as of the date thereof and their
      results of operations for the period covered thereby in accordance with GAAP
      consistently applied throughout the period covered thereby, except as otherwise
      expressly noted therein; and (iii) show all material Indebtedness and other
      liabilities, direct or contingent, of Parent and its Subsidiaries as of the
      date
      thereof, including liabilities for taxes and material commitments.

     

    (b) The
      unaudited quarterly financial statements contained in the three latest Forms
      10-Q of Parent filed with the SEC (i) were prepared in accordance with GAAP
      consistently applied throughout the period covered thereby, except as otherwise
      expressly noted therein, and (ii) fairly present in all material respects the
      financial condition of the Parent and its Subsidiaries as of the date thereof
      and their results of operations for the period covered thereby, subject to
      the
      absence of footnotes and to normal year-end audit adjustments. 

     

    (c) As
      of the
      Closing, any and all events or circumstances that, either individually or in
      the
      aggregate, has had or would reasonably be expected to have a Material Adverse
      Effect have been described in Parent’s filings with the SEC.

     

    (d) As
      of the
      Closing, none of the Loan Parties have any Off-Balance Sheet
      Liabilities.

     

    ·  Litigation. 

     

    Except
      as
      described in Parent’s filings with the SEC or as otherwise described in
Schedule
      5.06,
      there
      are no material actions, suits, proceedings, claims or disputes pending, or
      to
      the knowledge of the Loan Parties, threatened at law, in equity, in arbitration
      or before any Governmental Authority, by or against any Loan Party, or any
      of
      their properties or revenues. No injunction, writ, temporary restraining order
      or any order of any nature has been issued by any court or other Governmental
      Authority purporting to enjoin or restrain the execution, delivery or
      performance of this Agreement or any other Loan Document, or directing that
      the
      transactions provided for herein or therein not be consummated as herein or
      therein provided.

     

    ·  No
      Default. 

     

    No
      Default or Event of Default exists or would be reasonably expected to result
      from the incurring of any Obligations by a Loan Party. As of Closing, no Loan
      Party is in default under or with respect to any Contractual Obligation in
      any
      respect which, individually or together with all such defaults, would reasonably
      be expected to have a Material Adverse Effect.

     

    ·  ERISA. 

     

    No
      Loan
      Party sponsors, maintains or contributes to, or has at any time in the preceding
      six (6) calendar years, sponsored, maintained or contributed to, any
      Multiemployer Plan.

     

    ·  Margin
      Regulations. 

     

    The
      proceeds of the Loans shall be used solely for the purposes set forth in and
      permitted by Section
      6.13.
      No Loan
      Party is generally engaged in the business of purchasing or selling Margin
      Stock
      or extending credit for the purpose of purchasing or carrying Margin
      Stock.

     

    ·  Title
      to Properties. 

     

    Except
      for Immaterial Title Deficiencies, each Loan Party has defensible title to
      its
      material Oil and Gas Properties. As of Closing, the Collateral is subject to
      no
      Liens, other than Permitted Liens. Appendix
      II
      is a
      full and complete list of all properties to which the Loan Parties have title
      in
      the Southeast and Southwest program areas and Appendix
      III
      is a
      full and complete list of all properties to which the Loan Parties have title
      in
      the North program area. 

     

    ·  Oil
      and Gas Reserves. 

     

    Except
      for Immaterial Title Deficiencies, each Loan Party is and will hereafter be
      the
      owner of the Reserves that it purports to own from time to time in and under
      the
      Oil and Gas Properties, together with the right to produce the same. Such Oil
      and Gas Properties are not subject to any Lien other than Permitted Liens.
      All
      Oil and Gas has been and will hereafter be produced, sold and delivered in
      accordance with all Requirements of Law; each Loan Party has complied and will
      comply with all material terms of each oil, gas and mineral lease comprising
      the
      Oil and Gas Properties and all other material Contractual Obligations related
      thereto. Nothing in this Section
      5.11
      shall
      prevent any such Loan Party from abandoning any well or forfeiting,
      surrendering, releasing or defaulting under any lease in the ordinary course
      of
      business which, in the opinion of such Loan Party, is in the best interest
      of
      such Loan Party, and such Loan Party is and will hereafter be in compliance
      with
      all obligations hereunder, unless such abandonment, forfeiture, surrender,
      release or default would result in a Material Adverse Effect. 

     

    ·  Hydrocarbon
      Interests.

     

    Subject
      to Section
      6.04,
      Schedule
      5.12
      contains
      a full and complete list of all Hydrocarbon Interests held by the Loan Parties
      and the “working interests” and the “net revenue interest” of the Loan Parties
      set forth therein. With the exception of Immaterial Title Deficiencies, all
      Hydrocarbon Interests are valid, subsisting, and in full force and effect,
      and
      all rentals, royalties, and other amounts due and payable in respect thereof
      have been duly paid, except where failure to so pay any such amounts could
      not
      reasonably be expected to have a Material Adverse Effect. Without regard to
      any
      consent or non-consent provisions of any joint operating agreement covering
      any
      Loan Party’s Hydrocarbon Interests, and with the exception of Immaterial Title
      Deficiencies, each Loan Party’s share of (a) the costs for each Hydrocarbon
      Interest is not greater than the decimal fraction set forth in Schedule
      5.12
      attached
      hereto, before and after payout, as the case may be, and described therein
      by
      the respective designations “working interests”, “WI”, “gross working interest”,
“GWI”, or similar terms, and (b) production from, allocated to, or attributed to
      each such Hydrocarbon Interest is not less than the decimal fraction set forth
      in Schedule
      5.12
      attached
      hereto, before and after payout, as the case may be, and described therein
      by
      the designations “net revenue interest,” “NRI,” or similar terms. There are no
      funds in respect of any well drilled in respect of each Hydrocarbon Interest
      described in Schedule
      5.12
      attached
      hereto being presently held in suspense, other than any such funds being held
      in
      suspense pending delivery of appropriate division orders. Each producing well
      in
      respect of each Hydrocarbon Interest described in Schedule
      5.12 has
      been drilled, bottomed, completed, and operated in compliance, in all material
      respects, with all Requirements of Law and no such well which is currently
      producing Hydrocarbons is subject to any penalty in production by reason of
      such
      well having produced in excess of its allowable production. 

     

    ·  Operator.

     

    To
      the
      extent Westside Operating is the Operator of the wells located on the Oil and
      Gas Properties, Westside Operating has obtained and is in compliance with all
      Requirements of Law, except where failure to comply is not reasonably expected
      to have a Material Adverse Effect. 

     

    ·  Intellectual
      Property; Licenses. 

     

    Each
      Loan
      Party owns, or possesses the right to use, all of the trademarks, service marks,
      trade names, copyrights, patents, patent rights, franchises, licenses and other
      intellectual property rights (collectively, “IP
      Rights”)
      that
      are reasonably necessary for the operation of their respective businesses.
      To
      the knowledge of the Loan Parties, none of their respective material IP Rights,
      slogans or advertising materials, products, processes, methods, substances,
      parts or other materials now employed by any Loan Party infringe in any material
      respect on any IP Rights or other material rights held by any other Person.
      No
      written claim or litigation regarding any of the foregoing is pending or, to
      the
      knowledge of the Loan Parties, threatened, which, either individually or in
      the
      aggregate, could reasonably be expected to have a Material Adverse
      Effect. 

     

    ·  Taxes.

     

    Parent
      has filed all Federal tax returns and reports required to be filed, or if not
      filed, for which an extension has been granted therefor, and has paid all
      Federal taxes, assessments, fees and other governmental charges levied or
      imposed upon its or its properties, income or assets otherwise due and payable,
      except those which are being contested in good faith by appropriate proceedings
      diligently conducted and for which adequate reserves have been provided in
      accordance with GAAP. Parent has filed all material state and other non-Federal
      tax returns and reports required to be filed, and has paid all state and other
      non-Federal taxes, assessments, fees and other governmental charges levied
      or
      imposed upon it or its properties, income or assets otherwise due and payable.
      To the knowledge of Parent, there is no proposed tax assessment against it
      that
      would, if made, reasonably be expected to have a Material Adverse
      Effect

     

    ·  Environmental
      Matters. 

     

    Each
      Loan
      Party conducts in the ordinary course of business a review of the effect of
      existing Environmental Laws, Environmental Claims and Environmental Complaints,
      if any, on its business, operations and properties, and such properties which
      it
      is acquiring or planning to acquire. No real or personal property owned or
      leased by any Loan Party and no operations conducted thereon, and no operations
      of any prior owner, lessee or operator of any such properties, is or has been
      in
      violation of any Environmental Law other than violations which neither
      individually nor in the aggregate will have or could be reasonably expected
      to
      have a Material Adverse Effect, nor is any such property or operation the
      subject of any existing, pending or, to Borrowers’ knowledge, threatened
      Environmental Complaint which could, individually or in the aggregate, have
      or
      be reasonably expected to have a Material Adverse Effect. All notices, permits,
      licenses, and similar authorizations, if any, required to be obtained or filed
      in connection with the ownership or operation of any and all real and personal
      property owned, leased or operated by any Loan Party, including notices,
      licenses, permits and authorizations required in connection with any past or
      present treatment, storage, disposal, or release of Hazardous Substances into
      the environment, have been duly obtained or filed except to the extent the
      failure to obtain or file such notices, licenses, permits and authorizations
      would not have or would not be reasonably expected to have a Material Adverse
      Effect. All Hazardous Substances, if any, generated at any and all real and
      personal property owned, leased or operated by any Loan Party have been
      transported, treated, and disposed of only by carriers maintaining valid permits
      under all Environmental Laws, and, to such Loan Party’s actual knowledge, the
      same is true as to periods of time prior to such Loan Party’s ownership, lease
      or operation. There have been no Hazardous Discharges by any Loan Party which
      were not in compliance with Environmental Laws other than Hazardous Discharges
      which would not, individually or in the aggregate, have or be reasonably
      expected to have a Material Adverse Effect and, to such Loan Party’s actual
      knowledge, the same is true as to any Hazardous Discharge on any real and
      personal property owned, leased or operated by any Loan Party during periods
      of
      time prior to such Loan Party’s ownership, lease or operation of such property.
      No Loan Party has actual knowledge of any contingent liability in connection
      with any Hazardous Discharges which could have or be reasonably expected to
      have
      a Material Adverse Effect. 

     

    ·  Regulated
      Entities. 

     

    No
      Loan
      Party is an “Investment Company” within the meaning of the Investment Company
      Act of 1940. No Borrower is subject to regulation under the Federal Power Act,
      the Interstate Commerce Act, any state public utilities code, or any other
      Federal or state statute or regulation limiting its ability to incur
      Indebtedness.

     

    ·  No
      Burdensome Restrictions. 

     

    No
      Loan
      Party is a party to or bound by any Contractual Obligation, or subject to any
      restriction in any Organization Document, or any Requirement of Law, which
      would
      reasonably be expected to have a Material Adverse Effect.

     

    ·  Solvency. 

     

    As
      of the
      date of Closing, each of the Loan Parties is Solvent.

     

    ·  Subsidiaries/Investments/Ownership. 

     

    As
      of the
      date of Closing the corporate structure of Parent and its Subsidiaries is as
      set
      out on Schedule
      5.20
      attached
      hereto. Except as set forth on Schedule
      5.20,
      no
      Borrower has Subsidiaries or equity investments in any other Person and Parent
      has no Subsidiaries and no equity investments in any other Person other than
      Borrowers and the Parent is the sole, legal and beneficial owner, directly
      or
      indirectly, of all interests in each of the Borrowers. 

     

    ·  Insurance. 

     

    Each
      Loan
      Party's interest in the Oil and Gas Properties and any other Collateral and
      the
      North Properties, is insured with financially sound and reputable insurance
      companies not Affiliates of a Borrower, in such amounts, with such deductibles
      and covering such risks as are customarily carried by companies engaged in
      similar businesses and owning similar properties in localities where such Loan
      Party’s properties are located. 

     

    ·  Full
      Disclosure. 

     

    None
      of
      the representations or warranties made by the Loan Parties in the Loan Documents
      as of the date such representations and warranties are made or deemed made,
      and
      none of the statements contained in any exhibit, report, written statement
      or
      certificate furnished by or on behalf of each Loan Party in connection with
      the
      Loan Documents (including the offering and disclosure materials delivered by
      or
      on behalf of each Loan Party to Administrative Agent prior to Closing), taken
      as
      a whole, contains any untrue statement of a material fact or omits any material
      fact required to be stated therein or necessary to make the statements made
      therein, in light of the circumstances under which they are made, not misleading
      as of the time when made or delivered.

     

    ·  Capitalization.

     

    (a) As
      of
      Closing, (i) the authorized capital stock of Parent consists solely of (A)
      fifty
      million (50,000,000) shares
      of
      Common Stock and (B) ten million (10,000,000) shares of preferred stock, (ii)
      twenty-one million four hundred sixty-one thousand nine hundred and nine
      (21,461,909) shares of Common Stock have been issued and are outstanding, and
      (iii) three million three hundred and ninety-six thousand six hundred and
      sixty-eight (3,396,668) shares
      of
      Common Stock have been reserved for issuance upon exercise of options, warrants
      and other performance awards (whether vested or unvested as of the date hereof),
      including without limitation, one million six hundred and sixty-six thousand
      six
      hundred and sixty-eight (1,666,668) shares of Common Stock reserved for issuance
      upon exercise of the Conversion Option (the “Conversion
      Shares”).
      All
      outstanding shares of Common Stock have been validly issued, are fully paid
      and
      non-assessable, were issued in compliance with the Securities Act and applicable
      state securities laws, and no capital stock of Parent is subject to, nor has
      been issued in violation of, any preemptive or similar rights.

     

    (b) Except
      as
      set forth in Subsection
      5.23(a),
      or as
      otherwise contemplated by this Agreement, there are outstanding (i) no shares
      of
      capital stock or other voting securities of Parent, (ii) no securities of Parent
      convertible into or exchangeable for shares of capital stock or other voting
      securities of Parent, or (iii) no subscriptions, options, warrants, calls,
      commitments, preemptive rights or other rights of any kind to acquire from
      Parent, and no obligation of Parent to issue or sell any shares of capital
      stock
      or other voting securities of Parent or any securities of Parent convertible
      into or exchangeable for such capital stock or voting securities. There are
      no
      outstanding contractual obligations of Parent to repurchase, redeem or otherwise
      acquire any shares of the capital stock of Parent, or any other securities
      of
      the type described in (i)-(iii) above. Except as provided in this Agreement,
      there are no restrictions upon the voting or transfer of any share of the
      capital stock or other voting securities of Parent pursuant to the Organization
      Documents of Parent or any agreement or other instrument to which Parent is
      a
      party. 

     

    ·  Authorization
      of Conversion Shares.

     

    At
      Closing, the Conversion Shares will be duly authorized, and, upon issuance
      thereof, will be validly issued, fully paid and non-assessable and not subject
      to, or issued in violation of, any preemptive or similar rights.
      

     

    ·  Material
      Contracts.

     

    The
      reports filed by Parent with the SEC contain a true, correct and complete list
      of all Material Contracts in effect as of Closing (other than this Agreement
      and
      the other Loan Documents) and except as described in such reports, all such
      Material Contracts are in full force and effect and no Loan Party is in default
      thereunder. 

     

    ·  Fiscal
      Year.

     

    Each
      Loan
      Party’s fiscal year is January 1 through December 31.

     

    ·  Gas
      Balancing Agreements and Advance Payment Contracts.

     

    On
      the
      date of this Agreement, (a) there is no Material Gas Imbalance, and (b) the
      aggregate amount of all Advance Payments received by any Loan Party under
      Advance Payment Contracts which have not been satisfied by delivery of
      production does not exceed $100,000.

     

    ·  Business;
      Compliance.

     

    Each
      Loan
      Party has performed and abided by all obligations required to be performed
      under
      each license, permit, order, authorization, grant, contract, agreement, or
      regulation to which such Loan Party is a party or by which such Loan Party
      or
      any of its assets are bound to the extent a failure to perform and abide by
      such
      obligations could have or be reasonably expected to have a Material Adverse
      Effect. 

     

    ·  Marketing
      Arrangements.

     

    (a)
      No
      Hydrocarbon Interest of any Loan Party is subject to any contractual or other
      arrangement (i) whereby payment for production is or can be deferred for a
      substantial period after the month in which such production is delivered (in
      the
      case of oil, not in excess of 60 days, and in the case of gas, not in excess
      of
      90 days) or (ii) whereby payments are made to a Loan Party other than by checks,
      drafts, wire transfer advises or other similar writings, instruments or
      communications for the immediate payment of money; (b) no Hydrocarbon Interest
      of any Loan Party is subject to any contractual or other arrangement for the
      sale, processing or transportation of production (or otherwise related to the
      marketing of production) which cannot be canceled on 180 days’ (or less) notice;
      (c) all contractual or other arrangements for the sale, processing or
      transportation of production (or otherwise related to the marketing of
      production) are bona fide arm’s length transactions made on the best terms
      reasonably available with third parties not affiliated with Loan Parties; and
      (d) each Loan Party is presently receiving a price for all production from
      (or
      attributable to) each Hydrocarbon Interest owned by it covered by a production
      sales contract or marketing contract that is computed in accordance with the
      terms of such contract, and no Loan Party is having deliveries of production
      from such Hydrocarbon Interest curtailed by any purchaser or transporter of
      production substantially below such property’s delivery capacity, except for
      curtailments caused (i) by an act or event of force majeure not reasonably
      within the control of and not caused by the fault or negligence of a Loan Party
      and which by the exercise of reasonable diligence such Loan Party is unable
      to
      prevent or overcome, and (ii) by routine maintenance requirements in the
      ordinary course of business. 

     

    ·  Right
      to Receive Payment for Future Production.

     

    Except
      as
      set forth in Schedule
      5.30,
      no Loan
      Party, nor any Loan Party’s predecessors in title, has received prepayments
      (including payments for gas not taken pursuant to “take or pay” or other similar
      arrangements) for any oil, gas or other hydrocarbons produced or to be produced
      from any Hydrocarbon Interests after the date hereof. Except as set forth in
      Schedule
      5.30,
      no
      Hydrocarbon Interest of any Loan Party is subject to any “take or pay”, gas
      imbalances or other similar arrangement (i) which can be satisfied in whole
      or
      in part by the production or transportation of gas from other properties or
      (ii)
      as a result of which production from any such Hydrocarbon Interest may be
      required to be delivered to one or more third parties without payment (or
      without full payment) therefor as a result of payments made, or other actions
      taken, with respect to other properties. No Hydrocarbon Interest of any Loan
      Party is subject at the present time to any regulatory refund obligation and,
      to
      the best of Loan Party’s knowledge, no facts exist which might cause the same to
      be imposed.

     

    ·  Hedge
      Agreements.

     

    No
      Loan
      Party is party to any Hedge Agreement other than the ISDA Master Agreement
      dated
      as of March 17, 2006 between Keybank National Association and Westside
      Production. 

     

    ARTICLE
      VI.  

     

    AFFIRMATIVE
      COVENANTS

     

    So
      long
      as the Loans or other Obligations shall remain unpaid or unsatisfied, unless
      the
      Majority Lenders waive compliance in writing:

     

    ·  Financial
      Statements; Other Information. 

     

    (a) The
      Loan
      Parties shall maintain a system of accounting established and administered
      in
      accordance with GAAP and deliver to Administrative Agent, with sufficient copies
      for each Lender, promptly upon its becoming publicly available, each financial
      statement, report, budget, notice or proxy statement sent by Parent to its
      shareholders generally and each regular or periodic report and any registration
      statement, prospectus or written communication (other than transmittal letters)
      in respect thereof filed by Parent with the SEC or any successor
      agency.

     

    (b) Subject
      to Section
      6.04,
      the
      Loan Parties shall deliver to Administrative Agent, with sufficient copies
      for
      each Lender, in form and detail reasonably satisfactory to Administrative
      Agent:

     

    (i) promptly
      upon receipt of same, any notice or other information received by any Loan
      Party
      indicating any actual or alleged (A) non-compliance with or violation of
      the requirements of any Environmental Law which could result in liability to
      any
      Loan Party for fines, clean up or any other remediation obligations or any
      other
      liability in excess of $250,000 in the aggregate; (B) release or threatened
      release of any Hazardous Discharge which release would impose on any Loan Party
      a duty to report to a Governmental Authority or to pay cleanup costs or to
      take
      remedial action under any Environmental Law which could result in liability
      to
      any Loan Party for Environmental Claims and other remediation obligations or
      any
      other liability in excess of $250,000 in the aggregate; or (C) the
      existence of any Lien arising under any Environmental Law securing any
      obligation to pay Environmental Claims or other remediation costs or any other
      liability in excess of $250,000 in the aggregate. Without limiting the
      foregoing, Parent and Borrower shall provide to Administrative Agent promptly
      upon receipt of same copies of all environmental consultants or engineers
      reports received by any Loan Party which would render the representations and
      warranties contained in Section
      5.16 untrue
      or
      inaccurate in any respect;

     

    (ii) in
      the
      event any notification is provided by any Loan Party to Administrative Agent
      pursuant to Section
      6.01(b)(i) hereof
      or
      Administrative Agent or any Lender otherwise learns of any event or condition
      under which any such notice would be required, then, upon request of the
      Majority Lenders, Parent and Borrowers shall, within ninety (90) days of such
      request, cause to be furnished to each Lender a report by an environmental
      consulting firm acceptable to Administrative Agent and Majority Lenders, stating
      that a review of such event, condition or circumstance has been undertaken
      (the
      scope of which shall be acceptable to Administrative Agent and Majority Lenders)
      and detailing the findings, conclusions, and recommendations of such consultant.
      Borrowers shall bear all expenses and costs associated with such review and
      updates thereof, as well as all remediation or curative action recommended
      by
      any such environmental consultant; and

     

    (iii) from
      time
      to time such additional information regarding the financial position or business
      of each Loan Party as Administrative Agent, at the request of any Lender, may
      reasonably request.

     

    ·  Right
      of Inspection. 

     

    Loan
      Parties will permit any officer, employee or agent of Administrative Agent
      or
      any Lender to visit and inspect any of the assets of any Loan Party, examine
      each Loan Party’s books of record and accounts, take copies and extracts
      therefrom, and discuss the affairs, finances and accounts of each Loan Party
      with any of such Loan Party’s officers, accountants and auditors, all upon
      reasonable advance notice and at such reasonable times and as often as
      Administrative Agent or any Lender may desire, all at the expense of Borrowers;
      provided, that, prior to the occurrence of an Event of Default, neither
      Administrative Agent nor any Lender will require any Loan Party to incur any
      unreasonable expense as a result of the exercise by Administrative Agent or
      any
      Lender of its rights pursuant to this Section
      6.02.

     

    ·  Notice
      of Default. 

     

    Each
      Borrower shall, subject to Section
      6.04,
      promptly notify Administrative Agent and Lenders of the occurrence of any
      Default or Event of Default, and of the occurrence or existence of any event
      or
      circumstance that would reasonably be expected to become a Default or Event
      of
      Default or of any material breach or default under any Material Contract. Each
      notice under this sub-section shall be accompanied by a written statement by
      a
      Responsible Officer setting forth details of the occurrence referred to therein,
      and stating what action the Loan Parties propose to take with respect thereto
      and at what time.  

     

    ·  Public
      Information.

     

    (a) Notwithstanding
      anything to the contrary contained herein, the Loan Parties hereby agree and
      acknowledge that Administrative Agent and Lenders generally do not wish to
      receive material non-public information with respect to the Parent or its
      securities or the other Loan Parties. The Loan Parties hereby agree that, unless
      otherwise consented to by Administrative Agent and Lenders, (i) no information
      provided or made available to Administrative Agent and/or Lenders (including,
      without limitation, information provided on Schedules and Appendices hereto)
      shall contain any material non-public information about the Loan Parties, (ii)
      all such information about the Loan Parties made available or provided hereunder
      to Administrative Agent and Lenders shall be conspicuously marked “PUBLIC”,
      which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently
      on the first page thereof, (iii) by marking such information about the Loan
      Parties “PUBLIC”, the Loan Parties shall be deemed to have authorized
      Administrative Agent and Lenders to treat such information as not containing
      any
      material non-public information with respect to the Parent or its securities
      for
      purposes of United States Federal and state securities laws. 

     

    (b) If
      any
      Loan Party is required pursuant to the provisions of this Agreement or
      Administrative Agent or any Lender requests any Loan Party to provide
      information to Administrative Agent and/or Lenders and such Loan Party believes
      that such information may contain material non-public information about Parent
      or its securities or the other Loan Parties, such Loan Party shall inform
      Administrative Agent and the relevant Lender(s) of such fact (without disclosing
      the information in question) and Administrative Agent and/or the relevant
      Lender(s) shall upon such notice instruct such Loan Party whether or not it
      wishes to receive the non-public information. If Administrative Agent and/or
      Lender elects to receive such non-public information, then the Loan Parties
      shall so disclose such information and the first sentence of Section
      6.04(c)
      shall
      not apply to the disclosure of such non-public information. 

     

    (c) The
      Loan
      Parties further agree that, should the Loan Parties, despite the preceding
      provisions of this Section
      6.04,
      either
      through inadvertence or otherwise, make available to Administrative Agent and
      Lenders, without their prior written consent, any material information which
      at
      such time is not publicly available, such information shall immediately
      thereafter be disclosed to the public by the Loan Parties and to the SEC by
      the
      filing of a Form 8-K. Each Loan Party acknowledges that Administrative Agent
      and
      Lenders will rely on the foregoing when transacting in the securities of
      Parent.

     

    ·  Preservation
      of Corporate Existence, Etc. 

     

    Each
      Loan
      Party shall:

     

    (a) preserve
      and maintain in full force and effect its separate, legal existence, and
      maintain its good standing under the laws of its state or jurisdiction of
      incorporation or organization, as applicable; 

     

    (b) preserve
      and maintain in full force and effect all governmental rights, privileges,
      qualifications, permits, licenses and franchises reasonably necessary for the
      normal conduct of its business; 

     

    (c) preserve
      or renew all of its registered patents, trademarks, trade names and service
      marks, the non-preservation of which could reasonably be expected to have a
      Material Adverse Effect; and

     

    (d) Parent
      shall maintain the trading of its capital stock on an exchange acceptable to
      the
      Lenders.

     

    ·  Maintenance
      of Property. 

     

    For
      those
      Oil and Gas Properties for which a Loan Party is the designated operator per
      the
      joint operating agreement, each Loan Party shall operate, maintain and develop
      such Oil and Gas Properties, including maintenance of equipment which is used
      in
      the operation of its business, pursuant to the reasonable and prudent operator
      standard. Each Loan Party shall make all payments and otherwise perform all
      obligations in respect of all leases of real property to which any Loan Party
      is
      a party, except where the failure to do so could not reasonably be expected
      to
      have a Material Adverse Effect.

     

    ·  Title
      Data. 

     

    In
      addition to any other information required to be delivered under this Agreement,
      the Loan Parties shall, upon request of Majority Lenders, cause to be delivered
      to Administrative Agent such title opinions and other information regarding
      title to Hydrocarbon Interests and Oil and Gas Properties owned by any Loan
      Party as are appropriate to determine the status thereof; provided however,
      that
      Lenders may not require Loan Parties to furnish title opinions unless (i) an
      Event of Default has occurred and is continuing, or (ii) Majority Lenders have
      reason to believe that there is a defect in or Lien upon such Loan Party’s title
      to such Hydrocarbon Interest or Oil and Gas Property that is not a Permitted
      Lien.

     

    ·  Insurance. 

     

    Each
      Loan
      Party shall maintain, with financially sound and reputable independent insurers,
      insurance with respect to its properties and business against loss or damage
      of
      the kinds customarily insured against by Persons engaged in the same or similar
      business, of such types and in such amounts as are customarily carried under
      similar circumstances which insurance shall name Administrative Agent, as
“additional insured” and as a “loss payee”, as applicable. 

     

    ·  Payment
      of Obligations. 

     

    Each
      Loan
      Party shall pay and discharge as the same shall become due and payable, all
      of
      its material obligations and liabilities, including: (a) all tax liabilities,
      assessments and governmental charges or levies upon it or its properties or
      assets, unless the same are being contested in good faith; (b) all lawful claims
      which, if unpaid, would by law become a Lien upon its property, including
      without limitation full and prompt payment of all royalties, joint interest
      billings and mechanics and materialmens expenses, except to the extent the
      same
      are being contested in good faith; and (c) all Indebtedness, as and when due
      and
      payable, but subject to any subordination provisions contained in any instrument
      or agreement evidencing such indebtedness.

     

    ·  Compliance
      with Laws. 

     

    Each
      Loan
      Party shall comply in all material respects with all Requirements of Law of
      any
      Governmental Authority, including, without limitation, all disclosure
      requirements of the SEC, having jurisdiction over it or its business except
      such
      as may be contested in good faith or as to which a bona fide dispute may exist
      and shall obtain and renew all permits required under any Environmental Laws
      and
      necessary for its operations and properties and conduct any investigation,
      study, sampling and testing, and undertake any cleanup, removal, remedial or
      other action necessary to remove and clean up all Hazardous Substances from
      any
      of its properties to the extent required by Environmental Laws.

     

    ·  Maintenance
      of Books and Records. 

     

    Each
      Loan
      Party shall maintain proper books of record and account, in which full, true
      and
      correct entries in conformity with GAAP consistently applied shall be made
      of
      all of its financial transactions and matters involving its assets and business.
      

     

    ·  Environmental
      Laws. 

     

    Each
      Loan
      Party shall conduct its operations and keep and maintain its property in
      compliance with all Environmental Laws.

     

    ·  Use
      of Proceeds. 

     

    Borrowers
      shall use the proceeds of the Loans as provided on Appendix
      I. 

     

    ·  Further
      Assurances. 

     

    Each
      Loan
      Party shall promptly cure any defects in the creation and issuance of the Notes
      and the execution and delivery of this Agreement, the Security Documents, any
      Guaranty, or any other instruments referred to or mentioned herein or therein
      to
      which such Person is a party. Borrowers, at their expense, will promptly do
      all
      acts and things, and will execute and file or record, all instruments reasonably
      requested by Administrative Agent or any Lender, to establish, perfect, maintain
      and continue the perfected security interests of Administrative Agent in or
      the
      Lien of Administrative Agent on the Collateral. Borrowers will pay the
      reasonable costs and expenses of all filings and recordings and all searches
      deemed necessary by Administrative Agent to establish and determine the validity
      and the priority of the Liens created or intended to be created by the Security
      Documents; and each Loan Party shall satisfy all other claims and charges which
      in the reasonable opinion of Administrative Agent might prejudice, impair or
      otherwise affect any of the Collateral or any Lien thereon in favor of
      Administrative Agent.

     

    ·  Guaranties. 

     

    At
      Closing, Parent and each Subsidiary of each Borrower, if any, shall execute
      and
      deliver a Guaranty to guaranty Borrowers’ Obligations.

     

    ·  Security
      Documents. 

     

    Each
      Loan
      Party shall promptly execute and deliver to Administrative Agent such Security
      Documents as may be required pursuant to Section
      3.02.

     

    ARTICLE
      VII.  

     

    NEGATIVE
      COVENANTS

     

    So
      long
      as the Loans or any other Obligation shall remain unpaid or unsatisfied, unless
      the Majority Lenders waive compliance in writing:

     

    ·  Limitation
      on Liens. 

     

    No
      Borrower shall directly or indirectly, make, create, incur, assume or suffer
      to
      exist any Lien upon or with respect to any part of its property, whether now
      owned or hereafter acquired, other than the following (“Permitted
      Liens”):

     

    (a) any
      Lien
      created under any Loan Document;

     

    (b) Liens
      consented to in writing by Majority Lenders;

     

    (c) Liens
      scheduled on Schedule
      7.01;

     

    (d) Liens
      for
      taxes, fees, assessments or other governmental charges which are not delinquent
      or remain payable without penalty, or to the extent that non-payment thereof
      is
      permitted by Section
      6.10;

     

    (e) carriers’,
      warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
      similar Liens and contractual Liens granted to operators and non-operators
      under
      oil and gas operating agreements arising in the ordinary course of business
      securing obligations which are not delinquent or remain payable without penalty
      or which are being contested in good faith;

     

    (f) Liens
      consisting of pledges or deposits required in the ordinary course of business
      in
      connection with workers’ compensation, unemployment insurance and other social
      security legislation;

     

    (g) Liens
      securing (i) the non-delinquent performance of bids, trade contracts (other
      than
      for borrowed money), statutory obligations, (ii) Contingent Obligations, Surety
      Instruments (other than those providing credit support for borrowed money),
      and
      (iii) other non-delinquent obligations of a like nature; in each case, incurred
      in the ordinary course of business;

     

    (h) easements,
      rights-of-way, restrictions, defects or other exceptions to title and other
      similar encumbrances incurred in the ordinary course of business which, in
      the
      aggregate, are not substantial in amount, are not incurred to secure
      Indebtedness, and which do not in any case materially detract from the value
      of
      the property subject thereto or interfere with the ordinary conduct of a
      Borrower’s business;

     

    (i) Liens
      arising solely by virtue of any statutory or common law provision relating
      to
      banker’s liens, rights of set-off or similar rights and remedies as to deposit
      accounts or other funds maintained with a creditor depository institution;
      provided that (i) such deposit account is not a dedicated cash collateral
      account and is not subject to restrictions against access by a Borrower, and
      (ii) a Borrower maintains (subject to such right of set off) dominion and
      control over such account(s).

     

    (j) royalties,
      overriding royalties, reversionary interests, net revenue interests, production
      payments and similar burdens on production existing as of the date acquired
      by a
      Borrower, provided that such burdens do not reduce such Borrower’s net revenue
      interest in the Oil and Gas Properties burdened thereby below the net revenue
      interest with respect to such property on the date hereof; 

     

    (k) operating
      agreements, gathering agreements, processing agreements, sales contracts or
      other arrangements for the sale of Oil and Gas, and other agreements customary
      in the oil and gas business for producing, processing, transporting, and
      marketing Oil and Gas; and

     

    (l) Liens
      on
      property other than the Collateral securing the obligations of the Loan Parties
      pursuant to a Hedge Agreement permitted pursuant to Section
      7.14.

     

    ·  Sale
      of Property. 

     

    (a) Borrowers
      shall not sell, assign, convey or otherwise transfer any oil and gas property,
      other than any of the North Properties (it being noted that in the case of
      a
      sale, assignment, conveyance or other transfer of any of the North Properties,
      the Loan Parties shall comply with the provisions of Section
      3.02),
      unless
      (i) consideration equal to the fair market value of such oil and gas property
      sold is received, (ii) the sale is an arm’s length transaction, and (iii) all of
      the consideration received consists of cash, Cash Equivalents, liquid securities
      or oil and gas properties in connection with exchanges of such property pursuant
      to Section 1031 of the Code (“Permitted
      Consideration”);
      provided, however, that Borrowers may receive property that does not constitute
      Permitted Consideration so long as the aggregate fair market value of all
      property received pursuant to this proviso shall not exceed ten percent (10.0%)
      of the Recognized Value of Borrowers’ oil and gas properties. 

     

    (b) Borrowers
      shall be obligated to prepay the Obligations in an amount equal to 100% of
      the
      Net Available Cash from such Asset Disposition, unless Borrowers notify
      Administrative Agent in writing that they intend to invest such Net Available
      Cash in property that will be used in the oil and gas business of the Borrowers
      and such Net Available Cash is so invested within 180 days following the receipt
      of such Net Available Cash, after which time such Net Available Cash, if it
      has
      not been so invested, shall be immediately prepaid.

     

    ·  Consolidations
      and Mergers. 

     

    No
      Loan
      Party shall (i) merge, except that so long as no Default or Event of Default
      exists, Loan Parties may consummate mergers between or among any of the Loan
      Parties, (ii) consolidate, or (iii) convey, transfer, lease or otherwise dispose
      of (whether in one transaction or in a series of transactions) all or
      substantially all of its assets (whether now owned or hereafter acquired) to
      or
      in favor of any Person.

     

    ·  Loans
      and Investments. 

     

    No
      Loan
      Party shall create any direct or indirect Subsidiary, unless (i) no Default
      or
      Event of Default exists, (ii) such Subsidiary executes and delivers to
      Administrative Agent a Guaranty, and (iii) Liens are promptly granted over
      all
      of the assets of such Subsidiary and over the shares or other ownership
      interests of such Subsidiary to secure the Obligations. Further, no Loan Party
      shall divest themselves of any material assets by transferring them to any
      future Subsidiary or by entering into a partnership, joint venture or similar
      arrangement, or purchase or acquire or make any commitment therefor, any capital
      stock, equity interest, or any obligations or other securities of, or any
      interest in, any Person, or make or commit to make any advance, loan, extension
      of credit or capital contribution to or any other investment in, any Person
      including any Affiliate of a Borrower or acquire, in a single transaction or
      a
      series of transactions, all or substantially all of the assets of any Person
      or
      all or substantially all of the assets comprising a division of any Person,
      except for: (a) investments in Cash Equivalents; (b) extensions of credit
      in the nature of accounts receivable or notes receivable arising from the sale
      or lease of goods or services in the ordinary course of business; (c) extensions
      of credit or other advances made in the ordinary course of business in the
      estimation of anticipated travel or other reimbursable expenses to any
      employees, officers, directors, Administrative Agent or Lenders; (d) loans,
      advances or investments by a Loan Party to any other Loan Party; (e)
      acquisitions of oil and gas properties to be used in the Oil and Gas business
      of
      the Borrowers; and (f) other loans, advances, acquisitions or investments
      (except as set forth in the first sentence hereof) not to exceed in the
      aggregate $100,000 at any time.

     

    ·  Limitation
      on Indebtedness. 

     

    No
      Loan
      Party shall create, incur, assume, suffer to exist, or otherwise become or
      remain directly or indirectly liable with respect to any Indebtedness or
      Off-Balance Sheet Liabilities, except: 

     

    (a) Indebtedness
      incurred pursuant to the Loan Documents, 

     

    (b) Indebtedness
      consisting of Contingent Obligations permitted pursuant to Section
      7.08;
      

     

    (c) current
      liabilities, taxes and assessments incurred in the ordinary course of business;
      

     

    (d) Indebtedness
      in favor of third parties (i) on terms and conditions first offered to Lenders
      that Majority Lenders have declined to provide to Borrowers, (ii) Majority
      Lenders have consented to such Indebtedness from such third party lender, which
      consent shall not be unreasonably withheld, (iii) at the time of incurring
      such
      Indebtedness, no Default or Event of Default shall exist or would result from
      the incurrence of such Indebtedness after giving effect to the incurrence of
      such Indebtedness when included with Borrowers’ existing Indebtedness, (iv) such
      Indebtedness does not have any scheduled amortization prior to two years after
      the Termination Date and (v) such Indebtedness shall be subordinated to the
      Obligations pursuant to an intercreditor agreement between Administrative Agent,
      Lenders and any such third party lender on terms and conditions reasonably
      satisfactory to Administrative Agent and Lenders (“Alternative
      Financings”);

     

    (e) Indebtedness
      permitted under Section
      7.04;
      and

     

    (f) Indebtedness
      other than as described under the preceding clauses (a) - (e) in the aggregate
      amount not to exceed $150,000. 

     

    ·  Transactions
      with Affiliates. 

     

    Except
      as
      may be set forth on Schedule
      7.06 and
      except for transactions by and among the Loan Parties, no Loan Party shall
      enter
      into any transaction with or make any payment or transfer to any Affiliate
      of a
      Borrower, except in the ordinary course of business and upon fair and reasonable
      terms no less favorable to such Loan Party than would be obtained in a
      comparable arm’s-length transaction with a Person not an Affiliate of a
      Borrower. No Loan Party shall, without the prior written consent of
      Administrative Agent, enter into any transaction with or make any payment or
      transfer to any officer, director, partner or equity owner of a Loan Party,
      except in the ordinary course of business and upon fair and reasonable terms
      no
      less favorable to such Loan Party than would be obtained in a comparable
      arm’s-length transaction with a Person who is not an officer, director, partner
      or equity owner of a Loan Party. 

     

    ·  Margin
      Stock. 

     

    Borrowers
      shall not use any portion of the proceeds of the Loans, directly or indirectly,
      (a) to purchase or carry Margin Stock, (b) to repay or otherwise refinance
      Indebtedness of Borrowers or others incurred to purchase or carry Margin Stock,
      (c) to extend credit for the purpose of purchasing or carrying any Margin Stock,
      or (d) to acquire any security in any transaction that is subject to Section
      13
      or 14 of the Exchange Act.

     

    ·  Contingent
      Obligations. 

     

    No
      Loan
      Party shall create, incur, assume or suffer to exist any Contingent Obligations
      except: (a) endorsements for collection or deposit in the ordinary course of
      business; and (b) obligations under fidelity bonds issued for the account of
      any
      Loan Party’s obligations to indemnify or make whole any surety and similar
      agreements incurred in the ordinary course of business.

     

    ·  Restricted
      Payments. 

     

    No
      Loan
      Party shall purchase, redeem or otherwise acquire for value any membership
      interests, partnership interests, capital accounts, shares of its capital stock
      or any warrants, rights or options to acquire such membership interests,
      partnership interests or shares, now or hereafter outstanding from its members,
      partners or stockholders and will not declare or pay any distribution, dividend,
      return capital to its members, partners or stockholders, or make any
      distribution of assets to its stockholders, members or partners or make any
      voluntary prepayment of any Indebtedness (other than Indebtedness incurred
      under
      any Loan Document). Further, notwithstanding Section
      6.09,
      during
      such time as a Default or Event of Default exists, no Loan Party shall make
      any
      payments to any creditor of such Loan Party, other than (i) payments on the
      Obligations, and (ii) payments to trade creditors or employees in its ordinary
      course of business. 

     

    ·  Change
      in Business, Organization Documents, Name and Address. 

     

    No
      Loan
      Party shall engage in any business or activity other than the Principal
      Business. No Loan Party shall materially amend, supplement or modify its
      Organization Documents without the prior written consent of Administrative
      Agent
      or otherwise amend, supplement or modify such Organization Documents without
      thirty (30) days prior advance written notice to Administrative Agent. No Loan
      Party shall change its name or principal business address without thirty (30)
      days prior advance written notice to Administrative Agent. No Loan Party shall
      make any change to its capital structure which could be reasonably expected
      to
      have a Material Adverse Effect. 

     

    ·  Accounting
      Changes. 

     

    No
      Loan
      Party shall make any significant change in its accounting treatment or reporting
      practices, except as required by GAAP or the rules and regulations of the SEC,
      or change its fiscal year.

     

    ·  Restrictions
      of Pledges. 

     

    No
      Loan
      Party shall enter into any contract or agreement which restricts such Person’s
      ability to (a) pledge any or all of its assets or, (b) in the case of any
      Subsidiary of a Borrower, distribute any or all of its funds or assets to such
      Borrower; provided, however, nothing contained in this Section
      7.12
      shall
      prohibit a Loan Party from entering into any of the Loan Documents.

     

    ·  Conversion. 

     

    Parent
      will not, by amendment of its Organization Documents or through any
      recapitalization, reorganization, reclassification, transfer of assets,
      consolidation, merger, dissolution, issue or sale of securities or any other
      voluntary action, avoid or seek to avoid the observance or performance of any
      of
      the terms to be observed or performed hereunder by Parent, but will at all
      times
      in good faith assist in the carrying out of all the provisions of Section
      2.05
      hereof
      and in the taking of all such action as may be reasonably necessary or
      appropriate in order to protect the rights of Lenders against impairment.

     

    ·  Hedge
      Agreement. 

     

    No
      Loan
      Party shall be party to or otherwise enter into any Hedge Agreement that (i)
      covers notional volumes in excess of 75% of the anticipated production volumes
      attributable to Proved Reserves of the Loan Parties during the period such
      hedge
      arrangement is in effect and (ii) is longer than three (3) years in duration;
      provided that a Loan Party may enter into a Hedge Agreement consisting solely
      of
      a floor price (i.e. floor, or put option). 

     

    ·  Operating
      Leases.

     

    No
      Loan
      Party will incur, become, or remain liable under any Operating Lease which
      would
      cause the aggregate amount of all payments to be made by any Loan Party under
      such Operating Lease in any fiscal year to be greater than
      $250,000.

     

    ARTICLE
      VIII.  

     

    EVENTS
      OF DEFAULT

     

    ·  Event
      of Default. 

     

    Any
      of
      the following shall constitute an “Event
      of Default”:

     

    (a) Non-Payment.
      A Loan
      Party fails to pay when due, any amount of principal or, within three Business
      Days of when due, any interest of any Loan or any fee or other amount payable
      by
      Borrowers hereunder or under any other Loan Document; or

     

    (b) Representation
      or Warranty.
      Any
      representation or warranty by any Loan Party made or deemed made herein, in
      any
      other Loan Document, or which is contained in any certificate, document or
      financial or other statement by any Loan Party or any Responsible Officer,
      furnished at any time under this Agreement, or in or under any other Loan
      Document, is incorrect in any material respect on or as of the date made or
      deemed made; or

     

    (c) Specific
      Defaults.
      Any
      Loan Party fails to perform, observe or comply with any term, covenant or
      agreement applicable to such Loan Party in any of Subsection
      6.05(a),
      Section
      6.15
      or
Article
      VII;
      or

     

    (d) Other
      Defaults.
      Any
      Loan Party fails to perform, observe or comply with any other term or covenant
      contained in this Agreement other than as identified under Subsections
      8.01(a), (b)
      or
(c)
      or any
      other Loan Document to the extent not covered under Subsections
      8.01(a), (b)
      or
(c)
      of this
      Agreement, and such failure shall continue unremedied for a period of thirty
      (30) days after the earlier of (i) the date upon which a Responsible Officer
      knew or reasonably should have known of such failure or (ii) the date upon
      which
      written notice thereof is given to Borrowers by Administrative Agent or any
      Lender; or

     

    (e) Cross-Default.
      Any
      Loan Party (i) fails to make any payment when due (whether by scheduled
      maturity, required prepayment, acceleration, demand, or otherwise) in respect
      of
      any Indebtedness or Contingent Obligation having an aggregate principal amount
      (including undrawn committed or available amounts and including amounts owing
      to
      all creditors under any combined or syndicated credit arrangement) of more
      than
      $200,000 and such failure continues after the applicable grace or notice period,
      if any, specified in the relevant document on the date of such failure; or
      (ii)
      fails to perform, observe or comply with any other condition or covenant, or
      any
      other event shall occur or condition exist, under any agreement or instrument
      relating to any such Indebtedness or Contingent Obligation, if the effect of
      such failure, event or condition is to cause, or to permit the holder or holders
      of such Indebtedness or beneficiary or beneficiaries of such Indebtedness (or
      a
      trustee or agent on behalf of such holder or holders or beneficiary or
      beneficiaries) to cause such Indebtedness to be declared to be due and payable
      prior to its stated maturity, or such Contingent Obligation to become payable
      or
      cash collateral in respect thereof to be demanded; or (iii) any Indebtedness
      or
      Contingent Obligations of the Loan Parties on an aggregate basis in excess
      of
      $200,000 shall be declared due and payable prior to its stated maturity or
      cash
      collateral is demanded in respect of such Contingent Obligations;
      or

     

    (f) Insolvency;
      Voluntary Proceedings.
      Any
      Loan Party (i) generally fails to pay, or admits in writing its inability to
      pay, its debts as they become due, subject to applicable grace periods, if
      any,
      whether at stated maturity or otherwise; (ii) commences any Insolvency
      Proceeding with respect to itself; (iii) commences any action for the
      appointment of a receiver, trustee, custodian, conservator, liquidator,
      mortgagee in possession (or agent therefor), or other similar Person for itself
      or a substantial portion of its property or business; or (iv) takes any action
      to effectuate or authorize any of the foregoing; or

     

    (g) Involuntary
      Proceedings.
      (i) Any
      involuntary Insolvency Proceeding is commenced or filed against any Loan Party
      or any writ, judgment, warrant of attachment, execution or similar process,
      is
      issued or levied against all or a substantial part of any Loan Party’s
      properties, and any such proceeding or petition shall not be dismissed, or
      such
      writ, judgment, warrant of attachment, execution or similar process shall not
      be
      released, vacated or fully bonded within sixty (60) days after commencement,
      filing or levy; (ii) any Loan Party admits the material allegations of a
      petition against it or any of its Subsidiaries in any Insolvency Proceeding,
      or
      an order for relief is ordered in any Insolvency Proceeding; or (iii) any Loan
      Party acquiesces in the appointment of a receiver, trustee, custodian,
      conservator, liquidator, mortgagee in possession (or agent therefor), or other
      similar Person for itself or a substantial portion of its property or business;
      or

     

    (h) Monetary
      Judgments.
      One or
      more judgments, orders, decrees or arbitration awards is entered against any
      Loan Party involving in the aggregate a liability (to the extent not covered
      by
      independent third-party insurance as to which the insurer does not dispute
      coverage) as to any single or related series of transactions, incidents or
      conditions in excess of $250,000, and the same shall remain unsatisfied,
      unvacated and unstayed pending appeal for a period of thirty (30) days after
      the
      entry thereof; or

     

    (i) Loss
      of Permit.
      Any
      Governmental Authority revokes or fails to renew any material license, permit
      or
      franchise of any Loan Party, or any Loan Party for any reason loses any material
      license, permit or franchise, or suffers the imposition of any restraining
      order, escrow, suspension or impound of funds in connection with any proceeding
      (judicial or administrative) with respect to any material license, permit or
      franchise; or

     

    (j) Change
      of Control.
      There
      occurs any Change of Control;

     

    (k) Dissolution.
      Any
      order, judgment or decree shall be entered against any Loan Party decreeing
      the
      dissolution or split up of such Loan Party and such order shall remain
      undischarged or unstayed for a period in excess of thirty (30) days;
      or

     

    (l) Invalidity
      of Loan Documents.
      Any
      Guaranty shall be terminated or the Loan Documents, or any of them, after
      delivery thereof, shall for any reason, except to the extent permitted by the
      terms thereof, cease to be in full force and effect and valid, binding and
      enforceable in accordance with their terms, or, with respect to the Security
      Documents, cease to create a valid and perfected Lien or security interest,
      as
      the case may be, of the priority required thereby on any of the Collateral
      purported to be covered thereby, except to the extent permitted by the terms
      of
      this Agreement, or any Loan Party shall so state in writing; or

     

    (m) Environmental
      Liabilities.
      Any
      Loan Party shall incur Environmental Liabilities which, individually or in
      the
      aggregate, exceed $250,000.

     

    ·  Remedies. 

     

    If
      any
      Event of Default occurs and is continuing, Administrative Agent and/or Lenders
      shall:

     

    (a) exercise
      all rights and remedies available to them under the Loan Documents or applicable
      law, including declaring the Obligations immediately due and payable, without
      presentment, demand, protest, notice of intention to accelerate, notice of
      acceleration or any other notice of any kind, all of which are hereby expressly
      waived by Loan Parties, and 

     

    (b) Notwithstanding
      the foregoing, upon the occurrence of any event specified in Subsection
      8.01(f),
      or
      (g),
      the
      unpaid principal amount of the Loans and all interest and other amounts as
      aforesaid shall automatically become due and payable without further act of
      Lenders.

     

    ·  Set-off. 

     

    In
      addition to any rights and remedies of Administrative Agent and Lenders provided
      by law, if an Event of Default exists, each Lender and Administrative Agent
      is
      authorized at any time and from time to time, without prior notice to any Loan
      Party, any such notice being waived by each Loan Party to the fullest extent
      permitted by law, set off and apply any and all deposits (general or special,
      time or demand, provisional or final) at any time held by, and other
      indebtedness at any time owing by such Lender or Administrative Agent to or
      for
      the credit or the account of any Loan Party against any and all Obligations
      owing to such Lender or Administrative Agent, now or hereafter existing,
      irrespective of whether such Lender or Administrative Agent shall have made
      demand under this Agreement or any Loan Document and although such Obligations
      may be contingent or unmatured. 

     

    ·  Payments
      Set Aside. 

     

    To
      the
      extent that any Loan Party makes a payment to any Lender or Administrative
      Agent, or any Lender or Administrative Agent exercises its right of set-off,
      and
      such payment or the proceeds of such set-off or any part thereof are
      subsequently invalidated, declared to be fraudulent or preferential, set aside
      or required (including pursuant to any settlement entered into by such Lender
      or
      Administrative Agent in its sole discretion) to be repaid to a trustee, receiver
      or any other party, in connection with any Insolvency Proceeding or otherwise,
      then to the extent of such recovery the obligation or part thereof originally
      intended to be satisfied shall be revived and continued in full force and effect
      as if such payment had not been made or such set-off had not
      occurred.

     

    ·  Rights
      Not Exclusive. 

     

    The
      rights provided for in this Agreement and the other Loan Documents are
      cumulative and are not exclusive of any other rights, powers, privileges or
      remedies provided by law or in equity, or under any other instrument, document
      or agreement now existing or hereafter arising.

     

    ·  Application
      of Funds.

     

    After
      the
      exercise of remedies provided for in Section
      8.02
      (or
      after the Loans have automatically become immediately due and payable), any
      amounts received on account of the Obligations shall be applied by
      Administrative Agent in the following order:

     

    (a) First,
      to
      payment of that portion of the Obligations constituting fees, indemnities,
      expenses and other amounts (including fees, charges and disbursements of counsel
      to Administrative Agent) payable to Administrative Agent in its capacity as
      such;

     

    (b) Second,
      to payment of that portion of the Obligations constituting fees, indemnities,
      expenses and other amounts (other than principal and interest) then due and
      payable to Lenders (including fees, charges and disbursements of counsel to
      the
      respective Lenders), ratably among them in proportion to their respective Pro
      Rata Shares;

     

    (c) Third,
      to
      payment of that portion of the Obligations constituting accrued and unpaid
      interest on the Loans and other Obligations, ratably among Lenders in proportion
      to their respective Pro Rata Shares;

     

    (d) Fourth,
      to payment of that portion of the Obligations constituting unpaid principal
      of
      the Loans, ratably among Lenders in proportion to their respective Pro Rata
      Shares; and

     

    (e) Last,
      the
      balance, if any, after all of the Obligations have been indefeasibly paid in
      full, to Borrowers or as otherwise required by any Requirement of
      Law.

     

    ARTICLE
      IX.  

     

    ADMINISTRATIVE
      AGENT

     

    ·  Appointment
      and Authorization. 

     

    Each
      Lender hereby irrevocably (subject to Section
      9.09)
      appoints, designates and authorizes Administrative Agent to take such action
      on
      its behalf under the provisions of this Agreement and each other Loan Document
      and to exercise such powers and perform such duties as are expressly delegated
      to it by the terms of this Agreement or any other Loan Document, together with
      such powers as are reasonably incidental thereto. Notwithstanding any provision
      to the contrary contained elsewhere in this Agreement or in any other Loan
      Document, Administrative Agent shall have only such duties or responsibilities,
      as expressly set forth herein, Administrative Agent shall not have or be deemed
      to have any fiduciary relationship with any Lender, and no implied covenants,
      functions, responsibilities, duties, obligations or liabilities shall be read
      into this Agreement or any other Loan Document or otherwise exist against
      Administrative Agent.

     

    ·  Delegation
      of Duties. 

     

    Administrative
      Agent may execute any of its duties under this Agreement or any other Loan
      Document by or through agents, employees or attorneys-in-fact and shall be
      entitled to advice of counsel concerning all matters pertaining to such duties.
      Administrative Agent shall not be responsible for the negligence or misconduct
      of any agent or attorney-in-fact that it selects with reasonable
      care.

     

    ·  Liability
      of Administrative Agent. 

     

    Neither
      the Administrative Agent nor any of the Agent-Related Persons shall (a) be
      liable for any action taken or omitted to be taken by any of them under or
      in
      connection with this Agreement or any other Loan Document or the transactions
      contemplated hereby or thereby (except for its own gross negligence or willful
      misconduct), or (b) be responsible in any manner to any Lender or any Affiliate
      of any Lender for any recital, statement, representation or warranty made by
      any
      Loan Party or any Affiliate of a Loan Party, or any officer thereof, contained
      in this Agreement or in any other Loan Document, or in any certificate, report,
      statement or other document referred to or provided for in, or received by
      Administrative Agent under or in connection with, this Agreement or any other
      Loan Document, or the validity, effectiveness (other than the Administrative
      Agent’s or such Agent-Related Person’s own due execution and delivery),
      genuineness, enforceability or sufficiency of this Agreement or any other Loan
      Document, or for any failure of any Loan Party or any other party to any Loan
      Document to perform its obligations hereunder or thereunder. Neither the
      Administrative Agent nor any Agent-Related Person shall be under any obligation
      to any Lender to ascertain or to inquire as to the observance or performance
      of
      any of the agreements contained in, or conditions of, this Agreement or any
      other Loan Document, or to inspect the properties, books or records of any
      Loan
      Party or any Affiliate of any Loan Party.

     

    ·  Reliance
      by Administrative Agent.

     

    (a) Administrative
      Agent shall be entitled to rely, and shall be fully protected in relying, upon
      any writing, resolution, notice, consent, certificate, affidavit, letter,
      telegram, electronic mail, facsimile, telex or telephone message, statement
      or
      other document or conversation believed by it to be genuine and correct and
      to
      have been signed, sent or made by the proper Person or Persons, and upon advice
      and statements of legal counsel, independent accountants and other experts
      selected by Administrative Agent. Administrative Agent shall be fully justified
      in failing or refusing to take any action under this Agreement or any other
      Loan
      Document unless it shall first receive such advice or concurrence of Lenders
      as
      it deems appropriate and, if it so requests, it shall first be indemnified
      to
      its satisfaction by Lenders and their Affiliates against any and all liability
      and expense which may be incurred by it by reason of taking or continuing to
      take any such action. Administrative Agent shall in all cases be fully protected
      in acting, or in refraining from acting, under this Agreement or any other
      Loan
      Document in accordance with a request or consent of Lenders and such request
      and
      any action taken or failure to act pursuant thereto shall be binding upon all
      Lenders.

     

    (b) For
      purposes of determining compliance with the conditions specified in Section 4.01,
      each
      Lender that has made available to Borrowers its Pro Rata Share of the Maximum
      Loan Amount shall be deemed to have consented to, approved or accepted or to
      be
      satisfied with, each document or other matter either sent by Administrative
      Agent to such Lender for consent, approval, acceptance or satisfaction, or
      required thereunder to be consented to or approved by or acceptable or
      satisfactory to Lender as a condition precedent to such Loans, as
      applicable.

     

    ·  Notice
      of Default. 

     

    Administrative
      Agent shall not be deemed to have knowledge or notice of the occurrence of
      any
      Default or Event of Default, unless Administrative Agent shall have received
      written notice from a Lender or Borrowers referring to this Agreement,
      describing such Default or Event of Default and stating that such notice is
      a
“notice
      of default”.
      Administrative Agent will notify Lenders of its receipt of any such notice.
      Subject to Subsection
      9.04(a),
      Administrative Agent shall take such action with respect to such Default or
      Event of Default as may be requested by any Lender; provided,
      however,
      that
      unless and until Administrative Agent has received any such request,
      Administrative Agent may (but shall not be obligated to) take such action,
      or
      refrain from taking such action, with respect to such Default or Event of
      Default as it shall deem advisable or in the best interest of
      Lenders.

     

    ·  Credit
      Decisions. 

     

    Each
      Lender acknowledges that neither the Administrative Agent nor any of the
      Agent-Related Persons has made any representation or warranty to it, and that
      no
      act by Administrative Agent or any Agent-Related Person hereafter taken,
      including any review of the affairs of Borrowers, shall be deemed to constitute
      any representation or warranty by the Administrative Agent or any Agent-Related
      Person to any Lender. Each Lender represents to Administrative Agent that it
      has, independently and without reliance upon Administrative Agent or any
      Agent-Related Person and based on such documents and information as it has
      deemed appropriate, made its own appraisal of and investigation into the
      business, prospects, operations, property, financial and other condition and
      creditworthiness of Borrowers, and all applicable bank regulatory laws relating
      to the transactions contemplated hereby, and made its own decision to enter
      into
      this Agreement and to extend credit to Borrowers hereunder. Each Lender also
      represents that it will, independently and without reliance upon Administrative
      Agent or any Agent-Related Person and based on such documents and information
      as
      it shall deem appropriate at the time, continue to make its own credit analysis,
      appraisals and decisions in taking or not taking action under this Agreement
      and
      the other Loan Documents, and to make such investigations as it deems necessary
      to inform itself as to the business, prospects, operations, property, financial
      and other condition and creditworthiness of Borrower. Except for notices,
      reports and other documents expressly herein required to be furnished to Lenders
      by Administrative Agent, Administrative Agent shall not have any duty or
      responsibility to provide any Lender with any credit or other information
      concerning the business, prospects, operations, property, financial and other
      condition or creditworthiness of Borrowers which may come into the possession
      of
      Administrative Agent or any of the Agent-Related Persons.

     

    ·  Indemnification. 

     

    Whether
      or not the transactions contemplated hereby are consummated, Lenders and any
      Affiliates of Lenders shall indemnify upon demand Administrative Agent and
      Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrowers
      and without limiting the obligation of Borrowers to do so), pro rata according
      to each respective Lender’s Pro Rata Share, Administrative Agent and each
      Agent-Related Person from and against any and all Indemnified Liabilities
      INCLUDING SUCH INDEMNIFIED LIABILITIES AS MAY ARISE OR BE CAUSED BY THE
      NEGLIGENCE, SOLE, JOINT, CONCURRENT, COMPARATIVE OR OTHERWISE OF ADMINISTRATIVE
      AGENT OR SUCH AGENT-RELATED PERSONS; provided, however, that no Lender shall
      be
      liable for the payment to Administrative Agent or any Agent-Related Persons
      of
      any portion of such Indemnified Liabilities to the extent the same arise from
      (i) the gross negligence or willful misconduct of Administrative Agent or any
      Agent-Related Person or (ii) a claim or action asserted by Administrative Agent
      or one or more Agent-Related Persons. Without limitation of the foregoing,
      each
      Lender shall reimburse Administrative Agent upon demand for its ratable share
      of
      any costs or out-of-pocket expenses (including attorney costs) incurred by
      Administrative Agent in connection with the preparation, execution, delivery,
      administration, modification, amendment or enforcement (whether through
      negotiations, legal proceedings or otherwise) of, or legal advice in respect
      of
      rights or responsibilities under, this Agreement, any other Loan Document,
      or
      any document contemplated by or referred to herein, to the extent that
      Administrative Agent is not reimbursed for such expenses by or on behalf of
      Borrowers. The undertaking in this Section
      9.07
      shall
      survive the payment of all Obligations hereunder and the resignation or
      replacement of Administrative Agent.

     

    ·  Administrative
      Agent in Individual Capacity. 

     

    Spindrift
      Partners, L.P. is Administrative Agent hereunder solely for administrative
      purposes and has no commitment, other than in its capacity as Lender hereunder,
      to lend to Borrowers under the terms of this Agreement. Notwithstanding the
      above, Administrative Agent, in its individual capacity, may from time to time
      engage in any kind of activity with Borrowers or any Affiliate thereof as though
      Administrative Agent were not Administrative Agent hereunder and without notice
      to or consent of Lenders. Lenders acknowledge that, pursuant to such activities,
      Administrative Agent or its Affiliates may receive information regarding
      Borrowers (including information that may be subject to confidentiality
      obligations in favor of Borrowers) and acknowledge that Administrative Agent
      and
      the Agent-Related Persons shall be under no obligation to provide such
      information to them. With respect to its Loans, Administrative Agent, in its
      individual capacity as Lender, shall have the same rights and powers under
      this
      Agreement as any other Lender and may exercise the same as though it were not
      Administrative Agent.

     

    ·  Successor
      Administrative Agent. 

     

    Administrative
      Agent may resign as Administrative Agent upon thirty (30) days notice to
      Lenders. If Administrative Agent resigns under this Agreement, Lenders, with
      the
      consent of the Borrowers, shall appoint from among Lenders a successor
      administrative agent in the same capacity as the retiring Administrative Agent
      for Lenders. If no successor administrative agent is appointed prior to the
      effective date of the resignation of such retiring Administrative Agent, such
      retiring Administrative Agent may appoint, with the consent of the Borrowers
      and
      after consulting with Lenders, a successor administrative agent from among
      Lenders. Upon the acceptance of its appointment as successor administrative
      agent hereunder, such successor administrative agent shall succeed to all the
      rights, powers and duties of the retiring Administrative Agent and the term
      “Administrative
      Agent”
shall
      mean such successor administrative agent and the retiring Administrative Agent’s
      appointment, powers and duties as Administrative Agent shall be terminated.
      After any retiring Administrative Agent’s resignation hereunder as
      Administrative Agent, the provisions of this Article
      IX
      and
Sections
      10.05
      and
10.06
      shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was Administrative Agent under this Agreement. If no successor administrative
      agent has accepted appointment as Administrative Agent in the same capacity
      as
      the retiring Administrative Agent by the date which is 30 days following a
      retiring Administrative Agent’s notice of resignation, the retiring
      Administrative Agent shall either withdraw its resignation or may appoint as
      a
      successor administrative agent a commercial bank organized under the laws of
      the
      United States of America or of any State thereof.

     

    ARTICLE
      X.  

     

    MISCELLANEOUS

     

    ·  Amendments
      and Waivers. 

     

    No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document, and no consent with respect to any departure by any Loan Party
      therefrom, shall be effective unless the same shall be in writing and signed
      by
      Administrative Agent, the Majority Lenders and the Loan Parties and then any
      such waiver or consent shall be effective only in the specific instance and
      for
      the specific purpose for which given, provided
      however,
      that no
      such amendment waiver or consent shall:

     

    (a)  postpone
      any date fixed by this Agreement or any other Loan Document for any payment
      of
      any part of the Obligations;

     

    (b)  reduce
      the principal of, or the rate of interest specified herein on, the Loans, any
      fess or other amounts payable hereunder or under any other Loan Document without
      the written consent of each Lender directly affected thereby;

     

    (c)  change
      the pro rata sharing among Lenders as contemplated herein without the written
      consent of each Lender;

     

    (d)  change
      any provision of this Section or the definition of Majority
      Lenders;

     

    (e)  change
      Section
      10.07
      in a
      manner that would impose any additional restrictions on the ability of any
      Lender to assign or sell participations in any of its rights or obligations
      under this Agreement;

     

    (f)  release
      any material Guarantor from its Guaranty without the written consent of each
      Lender; or

     

    (g)  release
      all or substantially all of the Collateral without the written consent of each
      Lender.

     

    ·  Notices.

     

    (a) Subject
      to the limitations set forth in Subsection
      10.02(d)
      below,
      Borrowers are authorized to receive on behalf of all Loan Parties all notices
      from Administrative Agent or any Lender at the address, facsimile number and
      electronic mail address for Borrowers set out on Appendix
      I;
      and all
      notices to the Administrative Agent and any Lender shall be sent to
      Administrative Agent’s and such Lender’s address, facsimile number and
      electronic mail address set forth on Appendix
      I.

     

    (b) All
      notices, requests, consents and other communications required or permitted
      hereunder or under any other Loan Document shall be in writing and mailed,
      faxed, delivered, or (subject to Subsection
      10.02(d)
      below)
      transmitted by electronic mail, to the address, facsimile number, or electronic
      mail address specified for notices; or, as directed to Borrowers, Administrative
      Agent or Lenders to such other address as shall be designated by such Person
      in
      a written notice to the other parties, and as directed to any other party,
      at
      such other address as shall be designated by such party in a written notice
      to
      Borrowers, Administrative Agent and Lenders.

     

    (c) All
      such
      notices, requests, consents and communications shall be deemed to be given
      or
      made, and shall be effective, upon the earlier to occur of (i) actual receipt
      by
      the intended recipient or (ii) (A) if delivered by hand or by courier, when
      signed for by the intended recipient or an authorized representative of such
      recipient; (B) if delivered by mail, the third Business Day after the date
      on
      which such mail, postage prepaid was deposited in the U.S. mail; (C) if
      delivered by facsimile, when transmitted in legible form by facsimile machine;
      and (D) if delivered by electronic mail or via internet or intranet websites
      (which form of delivery is subject to the provisions of Subsection
      10.02(d)
      below),
      when delivered; provided,
      however,
      that
      notices and other communications to Administrative Agent or any Lender shall
      not
      be effective until actually received by Administrative Agent or such
      Lender.

     

    (d) Electronic
      mail and internet and intranet websites may be used only to distribute routine
      communications, such as financial statements and other information, and to
      distribute Loan Documents for execution by the parties hereto, and shall not
      be
      recognized for any other purpose.

     

    (e) Any
      agreement of Administrative Agent or any Lender herein to receive certain
      notices by telephone, electronic mail, or facsimile is solely for the
      convenience and at the request of the Loan Parties. Administrative Agent and
      Lenders shall be entitled to rely on the authority of any Person purporting
      to
      be a Person authorized by such Loan Party to give such notice and neither
      Administrative Agent nor Lenders shall have any liability to any Loan Party
      on
      account of any action taken or not taken by Administrative Agent or any Lender
      in reliance upon such telephonic or facsimile notice. The obligation of
      Borrowers to repay the Loans shall not be affected in any way or to any extent
      by any failure by Administrative Agent or any Lender to receive written
      confirmation of any telephonic or facsimile notice or the receipt by
      Administrative Agent or such Lender of a confirmation which is at variance
      with
      the terms understood by Administrative Agent or such Lender to be contained
      in
      the telephonic or facsimile notice.

     

    ·  No
      Waiver; Cumulative Remedies. 

     

    No
      failure to exercise and no delay in exercising, on the part of Administrative
      Agent or any Lender, any right, remedy, power or privilege hereunder, shall
      operate as a waiver thereof; nor shall any single or partial exercise of any
      right, remedy, power or privilege hereunder preclude any other or further
      exercise thereof or the exercise of any other right, remedy, power or privilege.
      The rights, remedies and privileges herein provided are cumulative and not
      exclusive of any rights, remedies and privileges provided by law. 

     

    ·  Survival
      of Representations and Warranties.

     

    All
      representations and warranties made in this Agreement and in any other Loan
      Document or other documents delivered pursuant hereto or thereto in connection
      herewith or therewith shall survive the execution and delivery hereof and
      thereof. Such representations and warranties have been or will be relied upon
      by
      Administrative Agent and each Lender, regardless of any investigation made
      by
      Administrative Agent or Lender or on their behalf and notwithstanding that
      Administrative Agent or any Lender may have had notice or knowledge of any
      Default at the time of Closing, and shall continue in full force and effect
      as
      long as any Obligation shall remain unpaid or unsatisfied.

     

    ·  Indemnity. 

     

    Whether
      or not the transactions contemplated hereby are consummated, the Loan Parties,
      jointly and severally, shall indemnify and hold Administrative Agent, Lenders,
      and each of their Affiliates, officers, directors, employees, counsel, agents
      and attorneys-in-fact (each, an “Indemnified
      Person”)
      harmless from and against any and all liabilities, obligations, losses, damages,
      penalties, actions, judgments, suits, costs, charges, expenses and disbursements
      (including attorneys’ fees and expenses) of any kind or nature whatsoever which
      may at any time (including at any time following repayment of the Loans) be
      imposed on, incurred by or asserted against any Indemnified Person in any way
      relating to or arising out of this Agreement and/or any document contemplated
      by
      or referred to herein (including any consents, amendments, waivers or other
      modifications to this Agreement and/or such other documents), or the
      transactions contemplated hereby, or any action taken or omitted by any
      Indemnified Person under or in connection with any of the foregoing, including
      with respect to any investigation, litigation or proceeding (including any
      Insolvency Proceeding or appellate proceeding) related to or arising out of
      this
      Agreement or the Loans or the use of the proceeds thereof, whether or not any
      Indemnified Person is a party thereto (all the foregoing, collectively, the
      “Indemnified
      Liabilities”),
      provided, that no Loan Party shall have any obligation hereunder to any
      Indemnified Person with respect to Indemnified Liabilities to the extent same
      arise from the gross negligence, in whole or in part, including without
      limitations, those claims which result from the sole, joint, concurrent or
      comparative gross negligence or willful misconduct of such Indemnified Person
      as
      determined by a final judgment rendered by a court of competent jurisdiction,
      or
      that arise solely by reason of claims among Indemnified Persons. The agreements
      in this Section shall survive payment of all other Obligations. 

     

    ·  Environmental
      Indemnification.

     

     

     

    In
      addition to the indemnifications hereunder and under any other Loan Documents,
      the Loan Parties, jointly and severally, shall indemnify, protect and hold
      each
      Indemnified Person harmless from and against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, claims,
      proceedings, costs, expenses (including, without limitation, all attorneys’ fees
      and legal expenses whether or not suit is brought) and disbursements of any
      kind
      or nature whatsoever which may at any time be imposed on, incurred by, or
      asserted against such Indemnified Person, with respect to or as a direct or
      indirect result of the violation by any Loan Party of any Environmental Law;
      or
      with respect to or as a direct or indirect result of any Loan Party's use,
      generation, manufacture, production, storage, release, threatened release,
      discharge, disposal or presence in connection with the Mortgaged Properties
      of a
      hazardous substance including, without limitation, (a) all damages of any such
      use, generation, manufacture, production, storage, release, threatened release,
      discharge, disposal or presence, or (b) the costs of any reasonably required
      or
      necessary environmental investigation, monitoring, repair, cleanup or
      detoxification and the preparation and implementation of any closure, remedial
      or other plans (all the foregoing, collectively, the “Indemnified
      Environmental Liabilities”).
      Each
      Loan Party agrees to indemnify and hold each Indemnified Person harmless as
      provided in this Section
      10.06,
      provided,
      that no Loan Party shall have any obligation hereunder to any Indemnified Person
      with respect to Indemnified Environmental Liabilities to the extent same arise
      from the gross negligence, in whole or in part, including without limitations,
      those claims which result from the sole, joint, concurrent or comparative gross
      negligence or willful misconduct of such Indemnified Person as determined by
      a
      final judgment rendered by a court of competent jurisdiction.
      The
      provisions of and undertakings and indemnification set forth in this
Section
      10.06
      shall
      survive (x) the satisfaction and payment of the Obligations and termination
      of
      this Agreement, and (y) the release of any Liens securing the Obligations or
      the
      extinguishment of such Liens by foreclosure or action in lieu thereof. It shall
      not be a defense to the indemnification obligations set forth in this
Section
      10.06
      that the
      act, omission, event or circumstance did not constitute a violation of any
      Environmental Law at the time of its existence or occurrence. 

     

    ·  Successors
      and Assigns

     

    . 

     

    (a) The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns, except that
      no
      Loan Party may assign or transfer any of its rights or obligations under this
      Agreement without the prior written consent of Majority Lenders. Any Lender
      may
      at any time assign or sell participations in all, or any ratable part of, the
      Loans and the other rights and obligations of such Lender hereunder to one
      or
      more of its Affiliates and/or to one or more Related Funds. No Lender may assign
      or sell participations in all, or any ratable part of, the Loans and the other
      rights and obligations of such Lender hereunder to any party other than its
      Affiliates or Related Funds without the written consent of Borrowers.
      Notwithstanding anything to the contrary contained herein, Lenders shall at
      all
      times be entitled to transfer and/or assign their respective Overriding Royalty
      Interests and their rights or obligations under their respective ORRI
      Conveyance, provided, however, that Lenders shall be responsible for any costs,
      expenses or fees attributable to any such transfer and/or assignment of their
      respective Overriding Royalty Interests and their rights or obligations under
      their respective ORRI Conveyance. 

     

    (b)
       In
      the
      case of a sale of a participation as permitted by Section
      10.07(a)
      to one
      or more Persons (each a “Participant”),
      the
      selling Lender remains a “Lender” under the Loan Documents, the Participant does
      not become a “Lender” under the Loan Documents, and the selling Lender’s
      obligations under the Loan Documents remain unchanged. The selling Lender
      remains solely responsible for the performance of its obligations and remains
      the holder of its share of the outstanding Loans for all purposes under the
      Loan
      Documents. Borrowers and Administrative Agent shall continue to deal solely
      and
      directly with the selling Lender in connection with that Lender’s rights and
      obligations under the Loan Documents, and each Lender must retain the sole
      right
      and responsibility to enforce due Obligations of Borrowers and/or any other
      Loan
      Party. Participants have no rights under the Loan Documents except certain
      voting rights as provided below. Subject to the following, each Lender may
      obtain (on behalf of its Participants) the benefits of Sections
      2.09 and
      2.10
      with
      respect to all participations in its part of the Obligations outstanding from
      time to time so long as Borrowers are not obligated to pay any amount in excess
      of the amount that would be due to that Lender under Sections
      2.09 and
      2.10 calculated
      as though no participations have been made. No Lender may sell any participating
      interest under which the Participant has any rights to approve any amendment,
      modification, or waiver of any Loan Document except in respect of any such
      amendment, modification or waiver described in Section
      10.01(a)
      or
10.01(b).
      To the
      extent permitted by law, each Participant shall also be entitled to the benefits
      of Section
      3.04
      as
      though it were a Lender, provided such Participant agrees to be subject to
      Section
      2.11
      as
      though it were a Lender. 

     

    (c) Any
      assignment made by a Lender pursuant to Section
      10.07(a)
      shall be
      evidenced by an assignment and assumption agreement in form and substance
      acceptable to Administrative Agent (which shall receive a copy thereof), and,
      except in the case of an assignment of the entire amount of the assignor
      Lender’s Loan at the time owing to it, the amount of the Loan so assigned shall
      not be less than $100,000 unless each of Administrative Agent and, so long
      as no
      Event of Default has occurred and is continuing, each Borrower otherwise
      consents (each such consent not to be unreasonably withheld or delayed). The
      “effective date” in each such assignment and assumption agreement must (unless a
      shorter period is agreeable to Borrowers and Administrative Agent) be at least
      five (5) Business Days after it is executed and delivered by the assignor Lender
      and the assignee to Administrative Agent and Borrowers for acceptance. Once
      that
      assignment and assumption agreement is accepted by Administrative Agent and
      Borrowers, then, from and after the “effective date” stated in it
      (1) assignee automatically becomes a party to this Agreement and, to the
      extent provided in that assignment and assumption agreement, has the rights
      and
      obligations of a Lender under the Loan Documents, (2) the assignor Lender,
      to the extent provided in that assignment and assumption agreement, is released
      from its obligations under this Agreement and, in the case of an assignment
      and
      assumption agreement covering all of the remaining portion of the assignor
      Lender’s rights and obligations under the Loan Documents, that Lender ceases to
      be a party to the Loan Documents, (3) Borrowers shall execute and deliver
      to the assignor Lender and the assignee the appropriate Notes in accordance
      with
      this Agreement following the transfer, and upon delivery of such Notes, the
      assignor Lender shall return to Borrowers all Notes previously delivered to
      that
      Lender under this Agreement, and (4) Appendix I
      is
      automatically deemed to be amended to reflect the name, address, fax number,
      and
      Pro Rata Share of the assignee, and Administrative Agent shall prepare and
      circulate to Borrowers and Lenders an amended Appendix I
      reflecting those changes.

     

    ·  Interest.

     

    (a) It
      is the
      intention of the parties hereto to comply with applicable usury laws;
      accordingly, notwithstanding any provision to the contrary in this Agreement,
      the Notes or in any of the other Loan Documents securing the payment hereof
      or
      otherwise relating hereto, in no event shall this Agreement, the Notes or such
      other Loan Documents require the payment or permit the payment, taking,
      reserving, receiving, collection, or charging of any sums constituting interest
      under applicable laws, if any, which exceed the maximum amount permitted by
      such
      laws. If any such excess interest is called for, contracted for, charged, taken,
      reserved, or received in connection with the Loans evidenced by the Notes or
      in
      any of the Loans Documents securing the payment thereof or otherwise relating
      thereto, or in any communication by Administrative Agent, Lenders or any other
      person to a Borrower or any other person, or in the event all or part of the
      principal or interest thereof shall be prepaid or accelerated, so that under
      any
      of such circumstances or under any other circumstance whatsoever the amount
      of
      interest contracted for, charged, taken, reserved, or received on the amount
      of
      principal actually outstanding from time to time under the Notes shall exceed
      the maximum amount of interest permitted by applicable usury laws, then in
      any
      such event it is agreed as follows: (i) the provisions of this paragraph shall
      govern and control, (ii) neither Borrowers nor any other person or entity now
      or
      hereafter liable for the payment and performance of the Obligations shall be
      obligated to pay the amount of such interest to the extent such interest is
      in
      excess of the maximum amount of interest permitted by applicable usury laws,
      (iii) any such excess which is or has been received notwithstanding this
      paragraph shall be credited against the then unpaid principal balance of the
      Notes or, if the Notes have been or would be paid in full, refunded to
      Borrowers, and (iv) the provisions of this Agreement, the Notes and the other
      Loan Documents securing the payment hereof and otherwise relating hereto, and
      any communication to Borrower, shall immediately be deemed reformed and such
      excess interest reduced, without the necessity of executing any other document,
      to the Highest Lawful Rate allowed under applicable laws as now or hereafter
      construed by courts having jurisdiction hereof or thereof. Without limiting
      the
      foregoing, all calculations of the rate of the interest contracted for, charged,
      taken, reserved, or received in connection with the Notes or this Agreement
      which are made for the purpose of determining whether such rate exceeds the
      Highest Lawful Rate shall be made to the extent permitted by applicable laws
      by
      amortizing, prorating, allocating and spreading during the period of the full
      term of the Loans, including all prior and subsequent renewals and extensions,
      all interest at any time contracted for, charged, taken, reserved, or received.
      The terms of this paragraph shall be deemed to be incorporated in every document
      and communication relating to the Notes, the Loans or any other Loan
      Document.

     

    (b) If
      the
      Contract Rate exceeds the Highest Lawful Rate, then the Contract Rate shall
      be
      limited to the Highest Lawful Rate, but any subsequent reductions in the
      Contract Rate shall not reduce the interest rate thereon below the Highest
      Lawful Rate until the total amount of accrued interest equals the amount of
      interest that would have accrued if Contract Rate had always been in effect.
      If
      at the Termination Date the total interest paid or accrued is less than the
      interest that would have accrued if the Contract Rate had always been in effect,
      then, at that time and to the extent permitted by law, Borrowers shall pay
      an
      amount equal to the difference between: (i) the lesser of the amount of
      interest that would have accrued if the Contract Rates had always been in effect
      and the amount of interest that would have accrued if the Highest Lawful Rate
      had always been in effect; and (ii) the amount of interest actually paid or
      accrued on the Notes.

     

    (c) To
      the
      extent that the interest rate laws of the State of Texas are applicable to
      the
      Loans, the applicable interest rate ceiling is the indicated (weekly) ceiling
      from time to time in effect under Texas Finance Code §303.001, as limited by
      Texas Finance Code §303.009, and to the extent that this Agreement is deemed an
“open end account” as such term is defined in Texas Finance Code
§301.002(a)(14), Lenders retain the right to modify the interest rate in
      accordance with applicable law.

     

    ·  Counterparts
      and Facsimile Signatures. 

     

    This
      Agreement may be executed in any number of separate counterparts, each of which,
      when so executed, shall be deemed an original, and all of said counterparts
      taken together shall be deemed to constitute but one and the same instrument.
      The Loan Documents may be transmitted and/or signed by facsimile or “pdf”. The
      effectiveness of any such documents and signatures shall, subject to applicable
      law, have the same force and effect as manually-signed originals and shall
      be
      binding on all Loan Parties; Administrative Agent and any Lender may also
      require that any such documents and signatures be confirmed by a manually-signed
      original thereof; provided, however, that the failure to request or deliver
      the
      same shall not limit the effectiveness of any facsimile or “pdf” document or
      signature.

     

    ·  Severability

     

    . 

     

    The
      illegality or unenforceability of any provision of this Agreement or any
      instrument or agreement required hereunder shall not in any way affect or impair
      the legality or enforceability of the remaining provisions of this Agreement
      or
      any instrument or agreement required hereunder.

     

    ·  Third
      Party Beneficiaries

     

    . 

     

    This
      Agreement and the other Loan Documents are made and entered into for the sole
      protection and legal benefit of the Loan Parties, Administrative Agent and
      Lenders, and their permitted successors and assigns, and no other Person shall
      be a direct or indirect legal beneficiary of, or have any direct or indirect
      cause of action or claim in connection with, this Agreement or any of the other
      Loan Documents.

     

    ·  USA
      Patriot Act Notice

     

    . 

     

    Lenders
      hereby notify the Loan Parties that pursuant to the requirements of the USA
      Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
      (the “Act”),
      they
      are required to obtain, verify and record information that identifies the Loan
      Parties, which information includes the name and address of the Loan Parties
      and
      other information that will allow Lenders to identify the Loan Parties in
      accordance with the Act.

     

    ·  Governing
      Law

     

    . 

     

    Except
      as
      expressly otherwise set forth in any Loan Document, this Agreement and the
      other
      Loan Documents shall be governed by, construed and interpreted in accordance
      with, the laws of the State of New York, except to the extent that federal
      laws
      of the United States of America apply.

     

    ·  Submission
      to Jurisdiction

     

    . 

     

    With
      respect to any and all disputes arising hereunder, or under the Notes, the
      Security Documents, the other Loan Documents, or any of the other instruments
      and documents executed in connection herewith or therewith not settled, each
      Loan Party, Administrative Agent and Lenders hereby irrevocably and
      unconditionally:

     

    (a) submits
      for itself and its property in any legal action or proceeding relating to this
      Agreement, the Notes and any document to which it is a party, or for recognition
      and enforcement of any judgment in respect of any thereof, to the non-exclusive
      general jurisdiction of the courts of the State of New York, the courts of
      the
      United States of America for the Southern District of New York, and appellate
      courts from any thereof;

     

    (b) consents
      that any such action or proceeding may be brought in such courts, and waives
      any
      objection that it may now or hereafter have to the venue of any such action
      or
      proceeding in any such court (except to the extent applicable rules of procedure
      provide venue lies exclusively in another jurisdiction), or that such action
      or
      proceeding was brought in an inconvenient court and agrees not to plead or
      claim
      the same;

     

    (c) agrees
      that service of process in any such action or proceeding may be effected by
      mailing a copy thereof by registered or certified mail (or any substantially
      similar form and mail), postage prepaid, to it at its address specified in
      Appendix
      I
      hereof;

     

    (d) agrees
      that nothing herein shall affect the right to effect service of process in
      any
      other manner permitted by law or shall limit the right to sue in any other
      jurisdiction;

     

    (e) agrees
      that service upon it or its authorized agent shall, to the fullest extent
      permitted by law, constitute valid and effective personal service upon it,
      as
      the case may be, and that the failure of any such authorized agent to give
      any
      notice of such service to it shall not impair or affect in any way the validity
      of such service or any judgment rendered in any action or proceeding based
      thereon; and

     

    (f) waives,
      to the fullest extent permitted by applicable law, any objection, including
      any
      objection to the laying of venue or based on the grounds of forum non conveniens,
      which
      it may now or hereafter have to the bringing of any action or proceeding in
      such
      jurisdiction in respect of this agreement or any document related
      hereto.

     

    ·  Waiver
      Of Jury Trial

     

    . 

     

    Each
      Loan
      Party waives, to the fullest extent permitted by applicable law, its rights
      to a
      trial by jury of any claim or cause of action based upon or arising out of
      or
      related to this Agreement, the Notes, the Security Documents, the other Loan
      Documents, or the transactions contemplated hereby or thereby, in any action,
      proceeding or other litigation of any type brought by any of the parties against
      any other party or any Indemnified Person, or assignee thereof, whether with
      respect to contract claims, tort claims, or otherwise. Each Loan Party, to
      the
      fullest extent permitted by applicable law, agrees that any such claim or cause
      of action shall be tried by a court trial without a jury. Without limiting
      the
      foregoing, to the fullest extent permitted by applicable law, each Loan Party
      further agrees that its respective right to a trial by jury is waived by
      operation of this Section as to any action, counterclaim or other proceeding
      which seeks, in whole or in part, to challenge the validity or enforceability
      of
      this Agreement or the other Loan Documents or any provision hereof or thereof.
      This waiver shall apply to any subsequent amendments, renewals, supplements
      or
      modifications to this Agreement and the other Loan Documents.

     

    ·  Amendment
      and Restatement

     

    . 

     

    The
      parties hereto agree that as of Closing: (a) the Obligations (as defined in
      this
      Agreement) represents, among other things, the restatement, renewal, amendment,
      extension, and modification of the “Obligations”
      (as
      defined in the Existing Credit Agreement); (b) this Agreement is intended to,
      and does hereby, restate, renew, extend, amend, modify, supersede, and replace
      the Existing Credit Agreement in its entirety; (c) the Notes executed pursuant
      to the Existing Credit Agreement remain in full force and effect to evidence
      the
      Obligations; (d) the Security Documents executed pursuant to the Existing Credit
      Agreement remain in full force and effect to secure the Obligations; (e) each
      Guaranty executed pursuant to the Existing Credit Agreement remains in full
      force and effect to guaranty the Obligations; and (f) the entering into and
      performance of their respective obligations under this Agreement (and any other
      Loan Document executed in connection herewith) and the transactions evidenced
      hereby (and thereby, as applicable) do not constitute a novation nor shall
      they
      be deemed to have terminated, extinguished, or discharged the “Obligations”
under
      the Existing Credit Agreement or the other Existing Loan Documents (or the
      collateral security therefor), all of which “Obligations”
and
      Collateral shall continue under and be governed by this Agreement and the other
      Loan Documents, except as provided otherwise herein.

     

    ·  Entire
      Agreement. 

     

    This
      Agreement, together with the other Loan Documents, embodies the entire agreement
      and understanding among the Loan Parties, Administrative Agent and Lenders
      and
      supersedes all prior or contemporaneous agreements and understandings of such
      Persons, verbal or written, relating to the subject matter hereof and thereof.
      Each Loan Document was drafted with the joint participation of the respective
      parties thereto and shall be construed neither against nor in favor of any
      party, but rather in accordance with the fair meaning thereof. 

     

    ·  Obligations
      Several. 

     

    The
      obligations of Lenders hereunder are several and no Lender shall be responsible
      for the obligations of any other Lender. Nothing contained herein or in any
      other Loan Document, and no action taken by Lenders pursuant hereto or thereto,
      shall be deemed to constitute Lenders as a partnership, an association, a joint
      venture or any other kind of entity. The amounts payable at any time hereunder
      to each Lender shall be a separate and independent debt, and each Lender shall
      be entitled to protect and enforce its rights hereunder and it shall not be
      necessary for any other Lender to be joined as an additional party in any
      proceeding for such purpose. 

     

    ·  Taxes
      - Allocation

     

    The
      parties hereto acknowledge and agree that (1) the Loan and the Overriding
      Royalty Interests constitute an “investment unit” as set forth in Section 1273
      of the Code; (2) as soon as practicable after the Closing the parties hereto
      shall reasonably cooperate in allocating the $25,000,000.00 loan amount between
      the Loan and the Overriding Royalty Interests in accordance with their relative
      fair market values as required by Section 1273 of the Code; and (3) they will
      be
      bound by this allocation for all tax purposes pursuant to Treasury Regulation
§
1.1273-2(h).

     

    ·  General
      Release.

     

    Borrowers
      hereby remise, release, acquit, satisfy and forever discharge Administrative
      Agent and Lenders, their respective agents, employees, officers, directors,
      attorneys and all others acting or purporting to act on behalf of or at the
      direction of Administrative Agent or Lenders, of and from any and all manner
      of
      actions, causes of action, suit, debts, accounts, covenants, contracts,
      controversies, agreements, variances, damages, judgments, claims and demands
      whatsoever, in law or in equity, which any of such parties ever had, now have
      or
      can, shall or may at any time have against GasRock Capital LLC and which
      Borrowers, by reason of the assignment effected pursuant to the Assignment
      Agreement, would purport to make or claim against Administrative Agent or
      Lenders. Without limiting the generality of the foregoing, Borrowers waive
      and
      affirmatively agree not to allege or otherwise pursue against Administrative
      Agent or Lenders any defenses, affirmative defenses, counterclaims, claims,
      causes of action, setoffs or other rights such party does, shall or may have
      as
      of the date hereof, against GasRock Capital LLC, including, but not limited
      to,
      the rights to contest: (a) the right of Administrative Agent or Lenders to
      exercise their respective rights and remedies described in this Agreement or
      any
      Loan Document; (b) any provision of this Agreement or any Loan Document;
      (c) the Liens granted by the Loan Documents; or (d) any conduct of
      Administrative Agent or Lenders. 

     

    ·  NO
      ORAL AGREEMENTS

     

    . 

     

    THIS
      WRITTEN AGREEMENT, TOGETHER WITH THE OTHER WRITTEN LOAN DOCUMENTS EXECUTED
      IN
      CONNECTION HEREWITH, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND
      MAY
      NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
      AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
      PARTIES.

     

    

     

    Remainder
      of Page Intentionally Left Blank

    Signature
      Pages Follow.

    

     

    
      
        
           

          10246832.11 Credit
            Agreement - Westside Energy Production Company, LP 

          Westside
            Energy Operating Company, LP  

          

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered by their proper and duly authorized officers as of the
      day and year first above written.

    

    BORROWERS:

    

    

    
      	
              WESTSIDE
                ENERGY PRODUCTION COMPANY, LP,

            
	
              a
                Texas limited partnership

            
	 
	
              By: Westside
                Energy GP, L.L.C.,

            
	
              a
                Texas limited liability company and its general partner

            
	 
	 
	
              By:
                      

            
	
              Name:
                      

            
	
              Title:
                      

            

    

    

    

    
      	
              WESTSIDE
                ENERGY OPERATING COMPANY, LP,

            
	
              a
                Texas limited partnership

            
	 
	
              By: Westside
                Energy GP, L.L.C.,

            
	
              a
                Texas limited liability company and its general partner

            
	 
	 
	
              By:
                      

            
	
              Name:
                      

            
	
              Title:
                      

            

    

    

    

    

    PARENT:

    

    
      	
              WESTSIDE
                ENERGY CORPORATION,

            
	
              a
                Nevada corporation

            
	 
	
              By:
                      

            
	
              Name:
                      

            
	
              Title:
                      

            

    

    

    

    

    
      
         

        Credit
          Agreement

        Westside
          Energy Production Company, LP &  Westside
          Energy Operating Company, LP  

        

        Page
          of
          3 Signature Pages

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ADMINISTRATIVE
      AGENT:

    

    
      	
              SPINDRIFT
                PARTNERS, L.P.,

            
	
              a
                Delaware limited partnership

            
	 
	
              By:
                Wellington Management Company, LLP,

            
	
              as
                Investment Advisor 

            
	 
	
              By:
                      

            
	
              Name:
                Steven M. Hoffman 

            
	
              Title:
                Vice President and Counsel

            

    

    

    

    

    LENDERS:

    

    

    
      	
              SPINDRIFT
                PARTNERS, L.P.,

            
	
              a
                Delaware limited partnership

            
	 
	
              By:
                Wellington Management Company, LLP,

            
	
              as
                Investment Advisor

            
	 
	
              By:
                      

            
	
              Name:
                Steven M. Hoffman 

            
	
              Title:
                Vice President and Counsel

            

    

    

    

    
      	
              SPINDRIFT
                INVESTORS (BERMUDA) L.P.,

            
	
              a
                Bermuda limited partnership

            
	 
	
              By:
                Wellington Management Company, LLP,

            
	
              as
                Investment Advisor

            
	 
	
              By:
                      

            
	
              Name:
                Steven M. Hoffman 

            
	
              Title:
                Vice President and Counsel

            

    

    

     

    
      	
              PLACER
                CREEK PARTNERS, L.P.,

            
	
              a
                Delaware limited partnership 

            
	 
	
              By:
                Wellington Management Company, LLP,

            
	
              as
                Investment Advisor

            
	 
	
              By:
                      

            
	
              Name:
                Steven M. Hoffman 

            
	
              Title:
                Vice President and Counsel

            

    

    

    

    

    
      	
              PLACER
                CREEK INVESTORS (<?xml:namespace prefix = st1 ns =
                "urn:schemas-microsoft-com:office:smarttags" />BERMUDA) L.P.,<?xml:namespace
                prefix = o ns = "urn:schemas-microsoft-com:office:office"
                />

            
	
              a
Bermuda
                limited
                partnership

            
	
               

            
	
              By:
                Wellington Management Company,
                LLP,

            
	
              as
                Investment Advisor

            
	
               

            
	
               

            
	
              By:
                                                                 
                

            
	
              Name:
                Steven M.
                Hoffman 

            
	
              Title:
                Vice President
                and
                Counsel

            

    

    

    

    
      
        
           

          Credit
            Agreement

          Westside
            Energy Production Company, LP &  Westside
            Energy Operating Company, LP  

          

          Page
            of
            3 Signature Pages

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    APPENDIX
      I
      -
SPECIFIC
      TERMS, FEES AND CONDITIONS

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    This
      Appendix
      I
      is
      attached to and made a part of the Credit Agreement. All capitalized terms
      not
      otherwise defined in this Appendix
      I
      are
      defined in the Credit Agreement.

    

    Administrative
      Agent:     Address
      for Notices:

    

    Spindrift
      Partners, L.P.   Attn:
      Peter Ryan

    Phone:
       (617)
      790-7535  C/o
      Wellington Management Company, LLP 

    Fax:
       (617)
      204-7535  75
      State
      Street

    Email:
       seclaw@wellington.com  Boston,
      MA 02109

    

    Payment
      Office:

     

    Citibank
      NY

    ABA#:
      021000089

    A/C
      Ref:
      Morgan Stanley, NY

    Sub
      A/C
      Ref: FAO Spindrift Partners, LP

    Sub
      A/C#:
      038-02069    Cash
      A/C#: 388-90774

    

    Lenders:      Address
      for Notices: 

    

    Spindrift
      Partners, L.P.   Attn:
      Peter Ryan

    Phone:
       (617)
      790-7535  C/o
      Wellington Management Company, LLP 

    Fax:
       (617)
      204-7535  75
      State
      Street

    Email:
       seclaw@wellington.com  Boston,
      MA 02109

    

    Payment
      Office:

     

    Citibank
      NY

    ABA#:
      021000089

    A/C
      Ref:
      Morgan Stanley, NY

    Sub
      A/C
      Ref: FAO Spindrift Partners, LP

    Sub
      A/C#:
      038-02069    Cash
      A/C#: 388-90774

    

    Address
      for Notices:

    

    Spindrift
      Investors (Bermuda) L.P.  Attn:
      Peter Ryan   

    Phone:
       (617)
      790-7535  C/o
      Wellington Management Company, LLP 

    Fax:
       (617)
      204-7535  75
      State
      Street

    Email:
       seclaw@wellington.com  Boston,
      MA 02109

    

    Payment
      Office:

     

    Citibank
      NY

    ABA#:
      021000089

    A/C
      Ref:
      Morgan Stanley, NY

    Sub
      A/C
      Ref: FAO Spindrift Investors (Bermuda), LP

    Sub
      A/C#:
      038-03055    Cash
      A/C#: 388-90774

    

    Address
      for Notices:

    

    Placer
      Creek Partners, L.P.   Attn:
      Peter Ryan

    Phone:
       (617)
      790-7535  C/o
      Wellington Management Company, LLP 

    Fax:
       (617)
      204-7535  75
      State
      Street

    Email:
       seclaw@wellington.com  Boston,
      MA 02109

    

    Payment
      Office:

     

    Chase
      Manhattan Bank, NY

    ABA#:
      021000021

    A/C
      Ref:
      f/a/o Goldman Sachs & Co., NY

    Security
      A/C#: 002-36440-4

    Cash
      A/C#: 930-1-011483

    

    Address
      for Notices:

    

    Placer
      Creek Investors (Bermuda) L.P.   Attn:
      Peter Ryan

    Phone:
       (617)
      790-7535  C/o
      Wellington Management Company, LLP 

    Fax:
       (617)
      204-7535  75
      State
      Street

    Email:
       seclaw@wellington.com  Boston,
      MA 02109

    

    Payment
      Office:

     

    Chase
      Manhattan Bank, NY

    ABA#:
      021000021

    A/C
      Ref:
      f/a/o Goldman Sachs & Co., NY

    Security
      A/C#: 002-36439-6

    Cash
      A/C#: 930-1-011483

     

    Borrowers:
            Principal
      Address:

    

    Westside
      Energy Production Company, LP  Attn:
      Douglas G. Manner 

    Phone:
       (214)
      522-8990  3131
      Turtle Creek Blvd., Suite 1300 

    Fax:
       (469)
      916-1401  Dallas,
      TX 75219

    Email:
       dmanner@westsideenergy.com 

    

    Westside
      Energy Operating Company, LP  Attn:
      Douglas G. Manner 

    Phone:
       (214)
      522-8990  3131
      Turtle Creek Blvd., Suite 1300 

    Fax:
       (469)
      916-1401  Dallas,
      TX 75219

    Email:
       dmanner@westsideenergy.com 

    

    

    Parent:

    

    Westside
      Energy Corporation  Attn:
      Douglas G. Manner 

    Phone:
       (214)
      522-8990  3131
      Turtle Creek Blvd., Suite 1300 

    Fax:
       (469)
      916-1401  Dallas,
      TX 75219

    Email:
       dmanner@westsideenergy.com 

    

    Current
      Directors of Parent:

    

    Jimmy
      D.
      Wright

    Douglas
      G. Manner

    Keith
      D.
      Spickelmier

    Craig
      S.
      Glick

    Herbert
      C. Williamson, III    

    John
      T.
      Raymond

    

    1. LOAN
      TERMS

    

    A. Lenders
      and Pro Rata Share:

    

    (i)
      Spindrift Partners, L.P.  37%

    

    (ii)
      Spindrift Investors (Bermuda) L.P.   43.8%

     

    (iii)
      Placer Creek Partners, L.P.  9.5%

    

    (iv)
      Placer Creek Investors (Bermuda) L.P.  9.7%

    

    Total:
        100%

    

    B. Maximum
      Loan Amount - (Section
      1.01):
       $25,000,000.00

    

    C. Stated
      Maturity Date - (Section
      1.01):   March
      23,
      2009

    

    D. Pricing
      -
      (Section
      2.04)

    

    (i) Contract
      Rate:  10%

    

    (ii) Default
      Rate:  12%

    

    

    
      	 	
              E.

            	
              Conversion
                - (Section
                2.05)

            

    

    

    (i) Conversion
      Price:

    

    The
      greater of the following: (a) $3.00
      per
      share; or (b) the average closing price of the Common Stock for the ten (10)
      trading days ending one (1) day prior to the applicable Payment
      Date

    

    
      	 	
              F.

            	
              Fees
                and Overriding Royalty Interests - (Section
                2.06)

            

    

    

    Lender
      ORRI %:   3%
      of
      8/8ths, proportionately reduced to Borrowers’ working interest

    

    G. Estimated
      transaction costs and expenses - (Section
      10.05)  $291,493,54

    

    H. Use
      of
      Proceeds - (Section
      6.13) 

    

    Borrowers
      shall use the proceeds of the Loans (i) to finance development activities;
      and
      (ii) for general corporate purposes. 

    

     

    2. ADDITIONAL
      CLOSING CONDITIONS
      (Subsection
      4.01(e)):

    

    A. Evidence
      satisfactory to Administrative Agent that all existing Indebtedness owed to
      GasRock Capital LLC under the Existing Credit Agreement and certain Liens
      securing the same have been duly assigned and transferred to Administrative
      Agent and Lenders.

    

    B.
       Evidence
      satisfactory to Administrative Agent that all consents, licenses and approvals
      of any Governmental Authority or any other Person required in connection with
      the execution, delivery and performance by each Loan Party and the validity
      against such Loan Party of the Loan Documents to which it is a party have been
      obtained and are in full force and effect. 

    

    C. A
      certificate of a Responsible Officer of each Loan Party certifying that, as
      of
      the Closing, (a) all representations and warranties of the Loan Parties in
      the
      Loan Documents are true and correct, (b) no Default or Event of Default exists
      or would result from the consummation of the transactions contemplated by the
      Loan Documents, (c) no Material Adverse Effect has occurred since the last
      day
      of the period covered by the Parent’s last filed Form 10Q and (d) no material
      non-public information with respect to the Parent or its securities or the
      other
      Loan Parties has been disclosed to Administrative Agent or Lenders in connection
      with the transactions closing on the date of Closing. 

    

    D.
       Administrative
      Agent shall be satisfied with the amount, types and terms and conditions of
      all
      insurance maintained by the Loan Parties, and Lenders shall have received
      endorsements naming Administrative Agent, on behalf of Lenders, as an additional
      insured or loss payee, as the case may be, under all insurance policies to
      be
      maintained with respect to the properties of the Loan Parties forming part
      of
      the Collateral.

    

    E. Receipt
      by Administrative Agent of reports and other information in form, scope and
      substance reasonably satisfactory to Administrative Agent, regarding
      environmental matters relating to the North Properties and the Oil and Gas
      Properties.

    

    F.
       Receipt
      by Administrative Agent of such UCC search reports as Administrative Agent
      shall
      require, prepared as of a date satisfactory to Administrative Agent, conducted
      in such jurisdictions and reflecting such names as Administrative Agent shall
      request. 

    

    G. The
      transactions contemplated by this Agreement and the other Loan Documents shall
      be permitted under all Requirements of Law.

    

    H. No
      litigation, arbitration or similar proceeding shall be pending which calls
      into
      question the validity or enforceability of this Agreement and/or the other
      Loan
      Documents. 

    

    I. Administrative
      Agent and Lenders shall have completed satisfactory due diligence review of
      the
      assets, liabilities, business, operations and condition (financial or otherwise)
      of Parent and its Subsidiaries.

    

    J. Receipt
      by Administrative Agent of any such title materials (including, without
      limitation, title opinions), satisfactory to Administrative Agent, as
      Administrative Agent may require in relation to the Oil and Gas Properties,
      the
      North Properties and the Hydrocarbon Interests. 

    

    K. Receipt
      by Administrative Agent of any other such assurances, certificates, documents,
      consents or opinions as Administrative Agent or the Majority Lenders reasonably
      require. 

    

    L. Receipt
      by Administrative Agent of Letters in Lieu of Transfer Orders, duly executed
      in
      blank by Westside Production, in a number and a form and substance satisfactory
      to Administrative Agent. 

    

    2. POST
      CLOSING CONDITIONS

    

    [None]

    

    

    
      
        
           

            Appendix
            I -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    APPENDIX
      II - COLLATERAL PROPERTIES

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    This
      Appendix
      II
      is
      attached to and made a part of the Credit Agreement. All capitalized terms
      not
      otherwise defined in this Appendix
      II
      are
      defined in the Credit Agreement.

    

    
      	
              COUNTY

            	
              LESSOR

            	
              LESSEE

            	
              DATE

            	
              VOLUME

            	
              PAGE

            
	 	 	 	 	 	 
	
              Brown

            	
              Cason,
                Virginia

            	
              River
                Oil & Gas, LLC 

            	
              3/21/2005

            	
              1575

            	
              456

            
	
              Comanche

            	
              Cason,
                Virginia

            	
              River
                Oil & Gas, LLC 

            	
              3/21/05

            	
              858

            	
              44

            
	
              Comanche

            	
              Chapman,
                James and Donna

            	
              River
                Oil & Gas, LLC 

            	
              3/3/05

            	
              857

            	
              319

            
	
              Comanche

            	
              Chapman,
                Margaret Modet

            	
              River
                Oil & Gas, LLC 

            	
              3/10/05

            	
              857

            	
              323

            
	
              Comanche

            	
              Cox,
                James

            	
              River
                Oil & Gas, LLC 

            	
              3/19/05

            	
              859

            	
              340

            
	
              Comanche

            	
              Davis,
                Fred S. and Betty June

            	
              River
                Oil & Gas, LLC 

            	
              3/11/05

            	
              857

            	
              228

            
	
              Comanche

            	
              Eilers,
                Melvin

            	
              River
                Oil & Gas, LLC 

            	
              3/4/05

            	
              859

            	
              344

            
	
              Comanche

            	
              Graham,
                Roy and Judy

            	
              River
                Oil & Gas, LLC 

            	
              3/22/05

            	
              858

            	
              344

            
	
              Comanche

            	
              Hall,
                Danny

            	
              River
                Oil & Gas, LLC 

            	
              3/10/05

            	
              856

            	
              452

            
	
              Comanche

            	
              Hart,
                W. Joseph

            	
              River
                Oil & Gas, LLC 

            	
              3/31/05

            	
              858

            	
              351

            
	
              Comanche

            	
              Holmsley,
                W.L. (Bill)

            	
              River
                Oil & Gas, LLC 

            	
              3/11/05

            	
              857

            	
              220

            
	
              Comanche

            	
              Hurt,
                Robert and Pamela

            	
              River
                Oil & Gas, LLC 

            	
              3/15/05

            	
              857

            	
              232

            
	
              Comanche

            	
              Hyatt

            	
              River
                Oil & Gas, LLC 

            	
              3/27/05

            	
              858

            	
              356

            
	
              Comanche

            	
              Pax,
                Gina and Sonya

            	
              River
                Oil & Gas, LLC 

            	
              3/31/05

            	
              858

            	
              360

            
	
              Comanche

            	
              Reed,
                Billie and Grady

            	
              River
                Oil & Gas, LLC 

            	
              3/27/05

            	
              859

            	
              459

            
	
              Comanche

            	
              Shelton,
                H. Lynn

            	
              River
                Oil & Gas, LLC 

            	
              3/12/05

            	
              859

            	
              59

            
	
              Comanche

            	
              Shelton,
                Marlene

            	
              River
                Oil & Gas, LLC 

            	
              3/12/05

            	
              859

            	
              54

            
	
              Comanche

            	
              Shelton,
                Tammy L.

            	
              River
                Oil & Gas, LLC 

            	
              3/12/05

            	
              859

            	
              64

            
	
              Comanche

            	
              Swindle,
                Jim

            	
              River
                Oil & Gas, LLC 

            	
              3/8/05

            	
              858

            	
              740

            
	
              Comanche

            	
              Womack,
                Jack T.

            	
              River
                Oil & Gas, LLC 

            	
              3/29/05

            	
              858

            	
              348

            
	
              Coryell

            	
              Barron,
                James G.

            	
              River
                Oil & Gas, LLC 

            	
              2/10/2005

            	
              185

            	
              181

            
	
              Coryell

            	
              Locke,
                Milburn and Jerry

            	
              River
                Oil & Gas, LLC 

            	
              3/8/2005

            	
              180

            	
              882

            
	
              Coryell

            	
              Locke,
                Milburn and Jerry

            	
              River
                Oil & Gas, LLC 

            	
              3/11/2005

            	
              180

            	
              881

            
	
              Ellis

            	
              Bing,
                Mary

            	
              Westside
                Energy Corporation

            	
              7/8/2004

            	
              2054

            	
              716

            
	
              Ellis

            	
              Botello,
                Tomas

            	
              Westside
                Energy Corporation

            	
              12/11/2004

            	
              2103

            	
              1071

            
	
              Ellis

            	
              Bridges,
                Bobby and Stephanie

            	
              Westside
                Energy Corporation

            	
              7/7/2005

            	
              2149

            	
              2465

            
	
              Ellis

            	
              Brigma,
                Fred

            	
              Westside
                Energy Corporation

            	
              7/19/2004

            	
              2054

            	
              455

            
	
              Ellis

            	
              Cockerham,
                Bruce

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              2065

            	
              232

            
	
              Ellis

            	
              Cockerham,
                E.A.

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
               2209

            	
               2360

            
	
              Ellis

            	
              Cockerham,
                Herman

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              2065

            	
              218

            
	
              Ellis

            	
              Cockerham,
                J.T.

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              2065

            	
              222

            
	
              Ellis

            	
              Coffey,
                Barbara

            	
              Westside
                Energy Corporation

            	
              7/13/2004

            	
              2061

            	
              1169

            
	
              Ellis

            	
              Crow,
                David

            	
              Westside
                Energy Corporation

            	
              8/27/2004

            	
              2065

            	
              2019

            
	
              Ellis

            	
              Crow,
                Thomas

            	
              Westside
                Energy Corporation

            	
              8/27/2004

            	
              2065

            	
              2014

            
	
              Ellis

            	
              Crow,
                Thomas & Beverly

            	
              Westside
                Energy Corporation

            	
              2/3/2004

            	
              2021

            	
              2172

            
	
              Ellis

            	
              Daniel,
                Ronnie

            	
              Westside
                Energy Corporation

            	
              7/23/2004

            	
              2057

            	
              1925

            
	
              Ellis

            	
              Eubank,
                David

            	
              Westside
                Energy Corporation

            	
              7/14/2004

            	
              2054

            	
              708

            
	
              Ellis

            	
              Eubank,
                James

            	
              Westside
                Energy Corporation

            	
              7/14/2004

            	
              2064

            	
              593

            
	
              Ellis

            	
              Eubank,
                Obie

            	
              Westside
                Energy Corporation

            	
              7/8/2004

            	
              2054

            	
              712

            
	
              Ellis

            	
              Goble,
                Onah June

            	
              Westside
                Energy Corporation

            	
              7/27/2004

            	
              2061

            	
              1173

            
	
              Ellis

            	
              Goble,
                Onah/Black, Ann

            	
              Westside
                Energy Corporation

            	
              7/26/2004

            	
              2061

            	
              1178

            
	
              Ellis

            	
              Grantham,
                David

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              2065

            	
              2024

            
	
              Ellis

            	
              Hidlebaugh,
                Jerry

            	
              Westside
                Energy Corporation

            	
              7/1/2004

            	
              2065

            	
              212

            
	
              Ellis

            	
              Irvin,
                Allie & Opal

            	
              Westside
                Energy Corporation

            	
              2/16/2006

            	
               2201

            	
              722

            
	
              Ellis

            	
              Irvin,
                Maureen

            	
              Westside
                Energy Corporation

            	
              7/20/2004

            	
              2054

            	
              2485

            
	
              Ellis

            	
              McClure,
                David

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              2068

            	
              784

            
	
              Ellis

            	
              Reynolds
                Trust

            	
              Westside
                Energy Corporation

            	
              7/8/2005

            	
              2149

            	
              2460

            
	
              Ellis

            	
              Reynolds,
                Phillip

            	
              Westside
                Energy Corporation

            	
              7/8/2005

            	
              2149

            	
              2455

            
	
              Ellis

            	
              Shelton,
                Thomas

            	
              Westside
                Energy Corporation

            	
              2/3/2004

            	
              2030

            	
              2033

            
	
              Ellis

            	
              Southall,
                Janice

            	
              Westside
                Energy Corporation

            	
              6/28/2005

            	
              2140

            	
              2144

            
	
              Ellis

            	
              Stiles,
                HM

            	
              Westside
                Energy Corporation

            	
              7/7/2004

            	
              2068

            	
              829

            
	
              Ellis

            	
              Stiles,
                WF

            	
              Westside
                Energy Corporation

            	
              7/7/2004

            	
              2068

            	
              833

            
	
              Ellis

            	
              Stiles,
                WF & HM

            	
              Westside
                Energy Corporation

            	
              7/7/2004

            	
              2068

            	
              825

            
	
              Ellis

            	
              Swindell,
                Jim

            	
              Westside
                Energy Corporation

            	
              4/23/2004

            	
              2030

            	
              2028

            
	
              Ellis

            	
              Ward,
                David (et al)

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              2065

            	
              213

            
	
              Ellis

            	
              Wilemon,
                Jane & Dave

            	
              Westside
                Energy Corporation

            	
              8/6/2005

            	
              2149

            	
              2450

            
	
              Ellis

            	
              Wilson
                Et AL

            	
              Westside
                Energy Corporation

            	
              8/16/2005

            	
              2155

            	
              30

            
	
              Ellis

            	
              Wilson,
                Billy J

            	
              Westside
                Energy Corporation

            	
              8/16/2005

            	
              2057

            	
              1934

            
	
              Ellis

            	
              Wilson,
                Billy J

            	
              Westside
                Energy Corporation

            	
              8/24/2004

            	
              2065

            	
              227

            
	
              Ellis

            	
              Wilson,
                Joe C

            	
              Westside
                Energy Corporation

            	
              7/1/2005

            	
              2140

            	
              2154

            
	
              Ellis

            	
              Wilson,
                B J

            	
              Westside
                Energy Corporation

            	
              7/3/2004

            	
              2057

            	
              1934

            
	
              Ellis

            	
              Wilson,
                E B

            	
              Westside
                Energy Corporation

            	
              7/13/2004

            	
              2057

            	
              1916

            
	
              Hamilton

            	
              Anglin,
                Larry

            	
              River
                Oil & Gas LLC

            	
              1/14/2005

            	
              381

            	
              763

            
	
              Hamilton

            	
              Barron,
                James G.

            	
              River
                Oil & Gas LLC

            	
              2/10/2005

            	
              388

            	
              184

            
	
              Hamilton

            	
              Bishop,
                Dennis & Laurie

            	
              River
                Oil & Gas LLC

            	
              9/17/2004

            	
              377

            	
              153

            
	
              Hamilton

            	
              Bruce,
                Stephanie

            	
              River
                Oil & Gas LLC

            	
              10/10/2004

            	
              379

            	
              898

            
	
              Hamilton

            	
              Caldwell
                2J Ranch LTD

            	
              River
                Oil & Gas LLC

            	
              1/8/2005

            	
              381

            	
              321

            
	
              Hamilton

            	
              Chapman,
                George

            	
              River
                Oil & Gas LLC

            	
              2/8/2005

            	
              382

            	
              190

            
	
              Hamilton

            	
              Davidson,
                Jack

            	
              River
                Oil & Gas LLC

            	
              9/29/2004

            	
              378

            	
              877

            
	
              Hamilton

            	
              Day,
                Billie

            	
              River
                Oil & Gas LLC

            	
              3/24/2005

            	
              385

            	
              401

            
	
              Hamilton

            	
              Eilers,
                Melvin

            	
              River
                Oil & Gas LLC

            	
              3/4/2005

            	
              383

            	
              610

            
	
              Hamilton

            	
              Eilers,
                William

            	
              River
                Oil & Gas LLC

            	
              3/4/2005

            	
              383

            	
              509

            
	
              Hamilton

            	
              Ervin,
                James

            	
              River
                Oil & Gas LLC

            	
              9/22/2004

            	
              379

            	
              902

            
	
              Hamilton

            	
              Falkenstein,
                Janice

            	
              River
                Oil & Gas LLC

            	
              12/17/2004

            	
              380

            	
              780

            
	
              Hamilton

            	
              Gault,
                Cheryl

            	
              River
                Oil & Gas LLC

            	
              4/28/2005

            	
              387

            	
              653

            
	
              Hamilton

            	
              Glover,
                George

            	
              River
                Oil & Gas LLC

            	
              1/27/2005

            	
              382

            	
              186

            
	
              Hamilton

            	
              Harper,
                Karry

            	
              River
                Oil & Gas LLC

            	
              3/23/2005

            	
              387

            	
              653

            
	
              Hamilton

            	
              Headley,
                Jim

            	
              River
                Oil & Gas LLC

            	
              3/8/2005

            	
              383

            	
              521

            
	
              Hamilton

            	
              Henderson,
                William L

            	
              River
                Oil & Gas LLC

            	
              11/11/2004

            	
              379

            	
              894

            
	
              Hamilton

            	
              Henderson,
                W.L.

            	
              River
                Oil & Gas LLC

            	
              11/24/2004

            	
              379

            	
              890

            
	
              Hamilton

            	
              Hopper,
                Craig and Melinda

            	
              River
                Oil & Gas LLC

            	
              3/10/2005

            	
              384

            	
              268

            
	
              Hamilton

            	
              Hopper,
                W.J.

            	
              River
                Oil & Gas LLC

            	
              3/10/2005

            	
              384

            	
              273

            
	
              Hamilton

            	
              Hunt,
                Robert Earl

            	
              River
                Oil & Gas LLC

            	
              4/7/2005

            	
              384

            	
              658

            
	
              Hamilton

            	
              Hutto,Leonard

            	
              River
                Oil & Gas LLC

            	
              2/10/2005

            	
              383

            	
              614

            
	
              Hamilton

            	
              Ising,
                Paul Carl

            	
              River
                Oil & Gas LLC

            	
              1/27/2005

            	
              381

            	
              814

            
	
              Hamilton

            	
              Kennedy,
                Donald

            	
              River
                Oil & Gas LLC

            	
              3/5/2005

            	
              385

            	
              517

            
	
              Hamilton

            	
              Kohler
                Family Trust

            	
              River
                Oil & Gas LLC

            	
              5/4/2005

            	
              385

            	
              711

            
	
              Hamilton

            	
              Laird,
                Patricia

            	
              River
                Oil & Gas LLC

            	
              2/11/2005

            	
              382

            	
              831

            
	
              Hamilton

            	
              Lingle,
                JC Jr.

            	
              River
                Oil & Gas LLC

            	
              2/8/2005

            	
              382

            	
              115

            
	
              Hamilton

            	
              Massingill,
                Mildred

            	
              River
                Oil & Gas LLC

            	
              2/7/2005

            	
              382

            	
              119

            
	
              Hamilton

            	
              Mayfield,
                Elsie

            	
              River
                Oil & Gas LLC

            	
              1/31/2005

            	
              382

            	
              123

            
	
              Hamilton

            	
              Oglesby,
                Joe Vern & James

            	
              River
                Oil & Gas LLC

            	
              2/15/2005

            	
              384

            	
              278

            
	
              Hamilton

            	
              Petree,
                E, etal

            	
              River
                Oil & Gas LLC

            	
              10/26/2004

            	
              380

            	
              600

            
	
              Hamilton

            	
              Pietzsch,
                J

            	
              Westside
                Energy Corporation

            	
              9/1/2004

            	
              376

            	
              818

            
	
              Hamilton

            	
              Ragsdale,
                Garland

            	
              River
                Oil & Gas LLC

            	
              10/25/2004

            	
              379

            	
              906

            
	
              Hamilton

            	
              Ragsdale,
                Etals

            	
              River
                Oil & Gas LLC

            	
              11/5/2004

            	
              378

            	
              881

            
	
              Hamilton

            	
              Ray,
                Lewis

            	
              Westside
                Energy Corporation

            	
              9/15/2004

            	
              392

            	
              805

            
	
              Hamilton

            	
              Swindle,
                Jim

            	
              River
                Oil & Gas LLC

            	
              3/8/2005

            	
              386

            	
              713

            
	
              Hamilton

            	
              Tinsley,
                Kenny

            	
              Westside
                Energy Corporation

            	
              8/24/2004

            	
              377

            	
              157

            
	
              Hamilton

            	
              Weiner
                Farmont

            	
              River
                Oil & Gas LLC

            	
              3/30/2005

            	
              386

            	
              167

            
	
              Hamilton

            	
              Wilson,
                Mrs. Alton (Lurine)

            	
              River
                Oil & Gas LLC

            	
              1/14/2005

            	
              381

            	
              767

            
	
              Hamilton

            	
              Wilson,
                Judy

            	
              River
                Oil & Gas LLC

            	
              12/29/2004

            	
              381

            	
              759

            
	
              Hamilton

            	
              Wolf
                Trust

            	
              River
                Oil & Gas LLC

            	
              5/5/2005

            	
              386

            	
              174

            
	
              Hill

            	
              Allen,
                Richard L. & Sandra L.

            	
              Associated
                Resources, Inc.

            	
              4/18/2006

            	
              1421

            	
              103

            
	
              Hill

            	
              Amos,
                Rita

            	
              River
                Oil & Gas LLC

            	
              2/25/2005

            	
              1337

            	
              784

            
	
              Hill

            	
              Bailey,
                George Jr. (et al)

            	
              Associated
                Resources, Inc.

            	
              1/24/2006

            	
              1415

            	
              19

            
	
              Hill

            	
              Bailey,
                George, Jr.

            	
              Associated
                Resources, Inc.

            	
              1/24/2006

            	
              1415

            	
              16

            
	
              Hill

            	
              Ball,
                Alice, etal

            	
              Westside
                Energy Corporation

            	
              8/6/2004

            	
              1302

            	
              571

            
	
              Hill

            	
              Ball,
                Randell

            	
              Westside
                Energy Corporation

            	
              8/6/2004

            	
              1302

            	
              575

            
	
              Hill

            	
              Bayless

            	
              Westside
                Energy Corporation

            	
              10/11/2004

            	
              1317

            	
              649

            
	
              Hill

            	
              Bearden
                H

            	
              Westside
                Energy Corporation

            	
              8/6/2004

            	
              1304

            	
              325

            
	
              Hill

            	
              Bearden,
                H & Robert

            	
              Westside
                Energy Corporation

            	
              8/6/2004

            	
              1302

            	
              563

            
	
              Hill

            	
              Bearden,
                H, etal

            	
              Westside
                Energy Corporation

            	
              8/6/2004

            	
              1302

            	
              567

            
	
              Hill

            	
              Blasor,
                June Gordon

            	
              Westside
                Energy Corporation

            	
              3/3/2004

            	
              1278

            	
              597

            
	
              Hill

            	
              Bond,
                Bill & Ramsey, Susan

            	
              Associated
                Resources, Inc.

            	
              2/4/2006

            	
              1419

            	
              159

            
	
              Hill

            	
              Bowman,
                D, etux

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              599

            
	
              Hill

            	
              Brent,
                Cindy

            	
              River
                Oil & Gas LLC

            	
              3/1/2005

            	
              1337

            	
              792

            
	
              Hill

            	
              Bridges,
                Helen

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              607

            
	
              Hill

            	
              Brooks,
                Doris M.

            	
              Associated
                Resources, Inc.

            	
              9/24/2005

            	
              1421

            	
              43

            
	
              Hill

            	
              Brown,
                Lucretia, etal

            	
              Westside
                Energy Corporation

            	
              5/18/2004

            	
              1287

            	
              297

            
	
              Hill

            	
              Burris,
                Tommy Joe & Loretta Faye

            	
              Associated
                Resources, Inc.

            	
              9/17/2005

            	
              1415

            	
              40

            
	
              Hill

            	
              Campbell,
                Raymond III & Sarah C.

            	
              Associated
                Resources, Inc.

            	
              8/31/2005

            	
              1419

            	
              168

            
	
              Hill

            	
              Carter,
                Karl

            	
              Associated
                Resources, Inc.

            	
              2/22/2006

            	
              1422

            	
              37

            
	
              Hill

            	
              Carter,
                Karl

            	
              Associated
                Resources, Inc.

            	
              2/22/2006

            	
              1422

            	
              35

            
	
              Hill

            	
              Christian,
                LaVerne

            	
              Associated
                Resources, Inc.

            	
              3/9/2006

            	
              1419

            	
              162

            
	
              Hill

            	
              Cockerham,
                E.A.

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              595

            
	
              Hill

            	
              Cockerham,
                Herman

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1306

            	
              246

            
	
              Hill

            	
              Cockerham,
                Herman

            	
              Westside
                Energy Corporation

            	
              8/24/2005

            	
              1373

            	
              250

            
	
              Hill

            	
              Cockerham,
                J.T.

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1306

            	
              236

            
	
              Hill

            	
              Cockerham,
                K.G.

            	
              Westside
                Energy Corporation

            	
              9/2/2005

            	
              1371

            	
              569

            
	
              Hill

            	
              Cole,
                Deborah Ann

            	
              Associated
                Resources, Inc.

            	
              11/20/2005

            	
              1415

            	
              49

            
	
              Hill

            	
              Cole,
                Elizabeth A. Living Trust

            	
              Associated
                Resources, Inc.

            	
              11/20/2005

            	
              1415

            	
              47

            
	
              Hill

            	
              Cole,
                Glenn Ray & Kelly

            	
              Associated
                Resources, Inc.

            	
              11/20/2005

            	
              1421

            	
              159

            
	
              Hill

            	
              Cornerston
                Land, Ltd.

            	
              Associated
                Resources, Inc.

            	
              9/27/2005

            	
              1415

            	
              581

            
	
              Hill

            	
              Cottingame,
                Florence

            	
              Westside
                Energy Corporation

            	
              2/23/2004

            	
              1278

            	
              602

            
	
              Hill

            	
              Crawford,
                Bobby

            	
              River
                Oil & Gas LLC

            	
              2/25/2005

            	
              1333

            	
              671

            
	
              Hill

            	
              Cunningham,
                Joe Richard & Mary Ann

            	
              Associated
                Resources, Inc.

            	
              9/16/2005

            	
              1415

            	
              579

            
	
              Hill

            	
              Dido
                Trust No. 1

            	
              Associated
                Resources, Inc.

            	
              9/1/2005

            	
              1415

            	
              51

            
	
              Hill

            	
              Duncan,
                Talmage A. & Lynda J.

            	
              Associated
                Resources, Inc.

            	
              8/17/2005

            	
              1420

            	
              848

            
	
              Hill

            	
              Edwards,
                Betty Carroll Wills

            	
              Associated
                Resources, Inc.

            	
              11/13/2005

            	
              1422

            	
              16

            
	
              Hill

            	
              Elliott,
                Gloria

            	
              Associated
                Resources, Inc.

            	
              2/18/2006

            	
              1420

            	
              846

            
	
              Hill

            	
              Erickson,
                J. Bernard, etal

            	
              Westside
                Energy Corporation

            	
              3/16/2004

            	
              1278

            	
              566

            
	
              Hill

            	
              Everett,
                Dianna

            	
              Associated
                Resources, Inc.

            	
              3/10/2006

            	
              1422

            	
              14

            
	
              Hill

            	
              Everett,
                Jeannine

            	
              Associated
                Resources, Inc.

            	
              3/9/2006

            	
              1419

            	
              164

            
	
              Hill

            	
              Ferguson,
                Ann Hollace

            	
              Associated
                Resources, Inc.

            	
              10/23/2005

            	
              1415

            	
              37

            
	
              Hill

            	
              Galiga,
                P T, Est

            	
              Westside
                Energy Corporation

            	
              7/12/2004

            	
              1293

            	
              761

            
	
              Hill

            	
              Gordon,
                Eric

            	
              Westside
                Energy Corporation

            	
              6/14/2004

            	
              1287

            	
              126

            
	
              Hill

            	
              Gray,
                R B, Est

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              591

            
	
              Hill

            	
              Green,
                Jim

            	
              Westside
                Energy Corporation

            	
              3/12/2004

            	
              1278

            	
              591

            
	
              Hill

            	
              Greenhill,
                James Donald

            	
              Associated
                Resources, Inc.

            	
              9/16/2005

            	
              1415

            	
              599

            
	
              Hill

            	
              Greenhill,
                Travis Wayne

            	
              Associated
                Resources, Inc.

            	
              9/16/2005

            	
              1415

            	
              575

            
	
              Hill

            	
              Greenhill,
                William David

            	
              Associated
                Resources, Inc.

            	
              9/16/2005

            	
              1415

            	
              573

            
	
              Hill

            	
              Gregory,
                J.C. & Wilma

            	
              Associated
                Resources, Inc.

            	
              9/28/2005

            	
              1421

            	
              34

            
	
              Hill

            	
              Hagan,
                Guy D. & Phyliss W.

            	
              Associated
                Resources, Inc.

            	
              4/20/2006

            	
              1421

            	
              112

            
	
              Hill

            	
              Harris,
                Stephanie

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1313

            	
              568

            
	
              Hill

            	
              Hoelscher,
                Alan

            	
              Associated
                Resources, Inc.

            	
              2/27/2006

            	
              1422

            	
              26

            
	
              Hill

            	
              Hoelscher,
                Albert, Jr.

            	
              Associated
                Resources, Inc.

            	
              2/23/2006

            	
              1420

            	
              850

            
	
              Hill

            	
              Hoelscher,
                Phillip

            	
              Associated
                Resources, Inc.

            	
              3/1/2006

            	
              1419

            	
              186

            
	
              Hill

            	
              Huegrich,
                James

            	
              Westside
                Energy Corporation

            	
              3/30/2004

            	
              1278

            	
              571

            
	
              Hill

            	
              Hulen,
                Cathy

            	
              River
                Oil & Gas LLC

            	
              2/25/2005

            	
              1337

            	
              788

            
	
              Hill

            	
              Johnson,
                Bryan

            	
              Westside
                Energy Corporation

            	
              3/6/2004

            	
              1278

            	
              561

            
	
              Hill

            	
              Johnson,
                James

            	
              Westside
                Energy Corporation

            	
              3/31/2004

            	
              1278

            	
              576

            
	
              Hill

            	
              Johnston,
                Marty

            	
              River
                Oil & Gas LLC

            	
              2/23/2005

            	
              1334

            	
              474

            
	
              Hill

            	
              Jones,
                Gus G. Jr.

            	
              Associated
                Resources, Inc.

            	
              9/15/2005

            	
              1424

            	
              351

            
	
              Hill

            	
              Jones,
                Gus G. Sr. & Gwendolyn

            	
              Associated
                Resources, Inc.

            	
              9/15/2005

            	
              1424

            	
              329

            
	
              Hill

            	
              Jones,
                Gwendolyn E.

            	
              Associated
                Resources, Inc.

            	
              9/15/2005

            	
              1424

            	
              340

            
	
              Hill

            	
              Key,
                Michael, etux

            	
              Westside
                Energy Corporation

            	
              6/29/2004

            	
              1293

            	
              582

            
	
              Hill

            	
              Kimmel,
                James C. & Sue N.

            	
              Associated
                Resources, Inc.

            	
              9/28/2005

            	
              1421

            	
              63

            
	
              Hill

            	
              Knott,
                W

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              587

            
	
              Hill

            	
              Lambert,
                Tony D.

            	
              Associated
                Resources, Inc.

            	
              4/24/2006

            	
              1419

            	
              166

            
	
              Hill

            	
              Langford,
                Edward

            	
              Westside
                Energy Corporation

            	
              3/25/2004

            	
              1278

            	
              586

            
	
              Hill

            	
              Lee,
                Samantha

            	
              Associated
                Resources, Inc.

            	
              2/18/2006

            	
              1415

            	
              35

            
	
              Hill

            	
              Martin,
                Elizabeth

            	
              Associated
                Resources, Inc.

            	
              4/24/2006

            	
              1421

            	
              82

            
	
              Hill

            	
              Martin,
                William B. (Trust)

            	
              Associated
                Resources, Inc.

            	
              9/14/2005

            	
              1421

            	
              6

            
	
              Hill

            	
              McClure,
                David

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              583

            
	
              Hill

            	
              McCullars,
                James Roderic & R. Deene

            	
              Associated
                Resources, Inc.

            	
              9/16/2005

            	
              1415

            	
              577

            
	
              Hill

            	
              Miller,
                Jana K. (Kubitza)

            	
              Westside
                Energy Corporation

            	
              10/15/2004

            	
              1318

            	
              447

            
	
              Hill

            	
              Montgomery
                Petroleum, Inc.

            	
              Associated
                Resources, Inc.

            	
              3/6/2006

            	
              1421

            	
              1

            
	
              Hill

            	
              Nelis,
                Gary L. & Karen J.

            	
              Associated
                Resources, Inc.

            	
              9/18/2005

            	
              1424

            	
              317

            
	
              Hill

            	
              Ott,
                Reba Nell

            	
              Associated
                Resources, Inc.

            	
              3/6/2006

            	
              1420

            	
              844

            
	
              Hill

            	
              Parvin,
                Judy (sulivan)

            	
              Westside
                Energy Corporation

            	
              2/23/2005

            	
              1333

            	
              666

            
	
              Hill

            	
              Petty,
                Wynelle

            	
              River
                Oil & Gas LLC

            	
              2/23/2005

            	
              1333

            	
              670

            
	
              Hill

            	
              Pharris,
                Miriam

            	
              Westside
                Energy Corporation

            	
              3/22/2004

            	
              1278

            	
              609

            
	
              Hill

            	
              Primula
                Inv, Ltd

            	
              Westside
                Energy Corporation

            	
              1/17/2005

            	
              1355

            	
              720

            
	
              Hill

            	
              Primula
                Inv, Ltd

            	
              Westside
                Energy Corporation

            	
              7/8/2005

            	
              1385

            	
              414

            
	
              Hill

            	
              Ramsaur,
                Carol

            	
              Associated
                Resources, Inc.

            	
              9/29/2005

            	
              1415

            	
              601

            
	
              Hill

            	
              Reece,
                Ruth

            	
              Westside
                Energy Corporation

            	
              6/23/2004

            	
              1291

            	
              748

            
	
              Hill

            	
              Richardson,
                Ronnie E. & Bobbie S.

            	
              Associated
                Resources, Inc.

            	
              4/12/2006

            	
              1421

            	
              150

            
	
              Hill

            	
              Seedorf,
                Arthur & Edna

            	
              Associated
                Resources, Inc.

            	
              9/30/2005

            	
              1421

            	
              22

            
	
              Hill

            	
              Sellars,
                Dean Turner

            	
              Associated
                Resources, Inc.

            	
              3/27/2006

            	
              1424

            	
              302

            
	
              Hill

            	
              Sellars,
                John Patrick

            	
              Associated
                Resources, Inc.

            	
              2/9/2006

            	
              1421

            	
              72

            
	
              Hill

            	
              Sellars,
                William A., Jr.

            	
              Associated
                Resources, Inc.

            	
              2/24/2006

            	
              1421

            	
              92

            
	
              Hill

            	
              Shephard,
                Victoria

            	
              Westside
                Energy Corporation

            	
              4/29/2004

            	
              1341

            	
              803

            
	
              Hill

            	
              Showers,
                James A. & Smith, Stephen N.

            	
              Associated
                Resources, Inc.

            	
              9/14/2005

            	
              1421

            	
              9

            
	
              Hill

            	
              Siddons,
                Julia, etal

            	
              Westside
                Energy Corporation

            	
              4/29/2004

            	
              1284

            	
              511

            
	
              Hill

            	
              Slowiak,
                Lenard

            	
              Westside
                Energy Corporation

            	
              5/4/2004

            	
              1285

            	
              528

            
	
              Hill

            	
              Smith,
                Jodi S.

            	
              Associated
                Resources, Inc.

            	
              2/9/2006

            	
              1424

            	
              304

            
	
              Hill

            	
              Snider,
                Roger

            	
              Westside
                Energy Corporation

            	
              6/29/2004

            	
              1294

            	
              206

            
	
              Hill

            	
              Spriggs,
                William A.

            	
              Associated
                Resources, Inc.

            	
              9/24/2005

            	
              1421

            	
              53

            
	
              Hill

            	
              Sumner,
                Charles

            	
              Associated
                Resources, Inc.

            	
              1/23/2006

            	
              1421

            	
              140

            
	
              Hill

            	
              Tharpe,
                Louie G. & Annie C.

            	
              Associated
                Resources, Inc.

            	
              9/20/2005

            	
              1415

            	
              38

            
	
              Hill

            	
              Tyra,
                Michael W.

            	
              Associated
                Resources, Inc.

            	
              4/24/2006

            	
              1421

            	
              121

            
	
              Hill

            	
              Underwood,
                Wanda

            	
              Associated
                Resources, Inc.

            	
              2/18/2006

            	
              1415

            	
              33

            
	
              Hill

            	
              Wakefield,
                Claude

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              603

            
	
              Hill

            	
              Walker,
                Brian

            	
              Associated
                Resources, Inc.

            	
              5/9/2006

            	
              1424

            	
              306

            
	
              Hill

            	
              Walker,
                Tommy & Anne

            	
              Associated
                Resources, Inc.

            	
              5/9/2006

            	
              1422

            	
              41

            
	
              Hill

            	
              Ward,
                Donald (et al)

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1306

            	
              241

            
	
              Hill

            	
              Watson,
                William L.

            	
              Associated
                Resources, Inc.

            	
              8/30/2005

            	
              1115

            	
              30

            
	
              Hill

            	
              Webb,
                Sydney P. 

            	
              Associated
                Resources, Inc.

            	
              3/27/2006

            	
              1420

            	
              842

            
	
              Hill

            	
              Williford,
                Tony

            	
              Westside
                Energy Corporation

            	
              4/6/2004

            	
              1278

            	
              581

            
	
              Hill

            	
              Wilson,
                Joe

            	
              Westside
                Energy Corporation

            	
              8/18/2004

            	
              1302

            	
              579

            
	
              Hill

            	
              Wood,
                Kim & Brice

            	
              Westside
                Energy Corporation

            	
              9/30/2005

            	
              1385

            	
              1407

            
	
              Hill

            	
              Wood,
                Sandra Lynn

            	
              Associated
                Resources, Inc.

            	
              2/28/2006

            	
              1415

            	
              28

            
	
              Lampasas

            	
              Clary,
                Harold

            	
              River
                Oil & Gas, LLC 

            	
              2/1/2005

            	
              408

            	
              58

            
	
              Lampasas

            	
              Day,
                Billie

            	
              River
                Oil & Gas, LLC 

            	
              3/24/2005

            	
              409

            	
              504

            
	
              Lampasas

            	
              Kennedy,
                Donald

            	
              River
                Oil & Gas, LLC 

            	
              3/5/2005

            	
              408

            	
              139

            
	
              Lampasas

            	
              Lee,
                Alvis P.

            	
              River
                Oil & Gas, LLC 

            	
              4/18/2005

            	
              409

            	
              131

            
	
              Mills

            	
              Bufe,
                Marla

            	
              River
                Oil & Gas, LLC 

            	
              3/10/2005

            	
              269

            	
              874

            
	
              Mills

            	
              Casbeer,
                Lula

            	
              River
                Oil & Gas, LLC 

            	
              3/23/2005

            	
              269

            	
              902

            
	
              Mills

            	
              Circle
                T Trust

            	
              River
                Oil & Gas, LLC 

            	
              3/17/2005

            	
              269

            	
              870

            
	
              Mills

            	
              Clary,
                Frances D.

            	
              River
                Oil & Gas, LLC 

            	
              3/22/2005

            	
              269

            	
              886

            
	
              Mills

            	
              Conner,
                Ruby

            	
              River
                Oil & Gas, LLC 

            	
              4/27/2005

            	
              271

            	
              549

            
	
              Mills

            	
              Cox,
                EJ

            	
              River
                Oil & Gas, LLC 

            	
              3/19/2005

            	
              270

            	
              214

            
	
              Mills

            	
              Cox,
                James 

            	
              River
                Oil & Gas, LLC 

            	
              3/19/2005

            	
              270

            	
              222

            
	
              Mills

            	
              Cox,
                James Daniel

            	
              River
                Oil & Gas, LLC 

            	
              3/19/2005

            	
              274

            	
              966

            
	
              Mills

            	
              Day,
                Billie

            	
              River
                Oil & Gas, LLC 

            	
              3/24/2005

            	
              270

            	
              441

            
	
              Mills

            	
              Duncan,
                Dale

            	
              River
                Oil & Gas, LLC 

            	
              3/22/2005

            	
              270

            	
              137

            
	
              Mills

            	
              Daniel,
                B.F.

            	
              River
                Oil & Gas, LLC 

            	
              3/27/2005

            	
              270

            	
              717

            
	
              Mills

            	
              Daniel,
                F.B.

            	
              River
                Oil & Gas, LLC 

            	
              5/9/2005

            	
              271

            	
              149

            
	
              Mills

            	
              Demoss,
                Donald

            	
              River
                Oil & Gas, LLC 

            	
              3/19/2005

            	
              270

            	
              445

            
	
              Mills

            	
              Eilers,
                Melvin

            	
              River
                Oil & Gas, LLC 

            	
              3/4/2005

            	
              270

            	
              424

            
	
              Mills

            	
              Elliot,
                Dorothy

            	
              River
                Oil & Gas, LLC 

            	
              3/19/2005

            	
              269

            	
              898

            
	
              Mills

            	
              Ellsworth,
                Barbara

            	
              River
                Oil & Gas, LLC 

            	
              3/31/2005

            	
              270

            	
              459

            
	
              Mills

            	
              Ellsworth,
                Barbara and John

            	
              River
                Oil & Gas, LLC 

            	
              3/31/2005

            	
              270

            	
              449

            
	
              Mills

            	
              Ethridge,
                James

            	
              River
                Oil & Gas, LLC 

            	
              3/22/2005

            	
              271

            	
              50

            
	
              Mills

            	
              Gault,
                Cheryl

            	
              River
                Oil & Gas, LLC 

            	
              4/28/2005

            	
              271

            	
              371

            
	
              Mills

            	
              Gibbard,
                William P.

            	
              River
                Oil & Gas, LLC 

            	
              5/10/2005

            	
              271

            	
              54

            
	
              Mills

            	
              Goulart,
                Dixie

            	
              River
                Oil & Gas, LLC 

            	
              4/28/2005

            	
              271

            	
              29

            
	
              Mills

            	
              Grelle,
                C.W.

            	
              River
                Oil & Gas, LLC 

            	
              3/4/2005

            	
              269

            	
              583

            
	
              Mills

            	
              Guill,
                Darla and William

            	
              River
                Oil & Gas, LLC 

            	
              4/28/2005

            	
              271

            	
              40

            
	
              Mills

            	
              Hamilton,
                Jack

            	
              River
                Oil & Gas, LLC 

            	
              3/24/2005

            	
              270

            	
              988

            
	
              Mills

            	
              Harper
                Family Trust

            	
              River
                Oil & Gas, LLC 

            	
              3/23/2005

            	
              269

            	
              894

            
	
              Mills

            	
              Harper,
                Karry

            	
              River
                Oil & Gas, LLC 

            	
              3/23/2005

            	
              269

            	
              890

            
	
              Mills

            	
              Harris,
                Mary Ann Priddy

            	
              River
                Oil & Gas, LLC 

            	
              3/8/2005

            	
              269

            	
              858

            
	
              Mills

            	
              Hopper,
                Craig and Melinda

            	
              River
                Oil & Gas, LLC 

            	
              3/10/2005

            	
              269

            	
              878

            
	
              Mills

            	
              Hopper,
                W.J.

            	
              River
                Oil & Gas, LLC 

            	
              3/10/2005

            	
              269

            	
              882

            
	
              Mills

            	
              Hoyer
                Family Living Trust

            	
              River
                Oil & Gas, LLC 

            	
              3/29/2005

            	
              270

            	
              967

            
	
              Mills

            	
              Hoyer,
                Thomas and Marjorie

            	
              River
                Oil & Gas LLC

            	
              3/23/2005

            	
              270

            	
              975

            
	
              Mills

            	
              Hunt,
                J.D.

            	
              River
                Oil & Gas LLC

            	
              4/21/2005

            	
              270

            	
              721

            
	
              Mills

            	
              Hunt,
                Michael

            	
              River
                Oil & Gas LLC

            	
              4/19/2005

            	
              271

            	
              45

            
	
              Mills

            	
              Lee,
                Alvis P.

            	
              River
                Oil & Gas, LLC 

            	
              4/18/2005

            	
              270

            	
              708

            
	
              Mills

            	
              Mann,
                John

            	
              River
                Oil & Gas LLC

            	
              3/15/2005

            	
              270

            	
              713

            
	
              Mills

            	
              McCasland,
                Virgina

            	
              River
                Oil & Gas LLC

            	
              4/5/2005

            	
              270

            	
              979

            
	
              Mills

            	
              Meier,
                Milton

            	
              River
                Oil & Gas LLC

            	
              3/22/2005

            	
              270

            	
              133

            
	
              Mills

            	
              Miles,
                Barry

            	
              River
                Oil & Gas LLC

            	
              3/24/2005

            	
              270

            	
              399

            
	
              Mills

            	
              Miles,
                Charles

            	
              River
                Oil & Gas LLC

            	
              3/24/2005

            	
              270

            	
              403

            
	
              Mills

            	
              Miles,
                Charles & Barry

            	
              River
                Oil & Gas LLC

            	
              3/24/2005

            	
              270

            	
              407

            
	
              Mills

            	
              Miles,
                Ruby

            	
              River
                Oil & Gas LLC

            	
              3/24/2005

            	
              270

            	
              411

            
	
              Mills

            	
              Norwood,
                E.E.

            	
              River
                Oil & Gas LLC

            	
              4/5/2005

            	
              270

            	
              395

            
	
              Mills

            	
              Owens,
                Gail & Davis

            	
              River
                Oil & Gas LLC

            	
              4/14/2005

            	
              270

            	
              454

            
	
              Mills

            	
              Owens,
                Lee

            	
              River
                Oil & Gas LLC

            	
              4/14/2005

            	
              270

            	
              419

            
	
              Mills

            	
              Partin,
                J.C.

            	
              River
                Oil & Gas LLC

            	
              3/27/2005

            	
              270

            	
              218

            
	
              Mills

            	
              Pax,
                Melvin

            	
              River
                Oil & Gas LLC

            	
              3/29/2005

            	
              270

            	
              428

            
	
              Mills

            	
              Priddy,
                Jerry

            	
              River
                Oil & Gas LLC

            	
              3/8/2005

            	
              269

            	
              866

            
	
              Mills

            	
              Roberts,
                George and Carolyn

            	
              River
                Oil & Gas LLC

            	
              3/11/2005

            	
              269

            	
              862

            
	
              Mills

            	
              Schwartz,
                Paul

            	
              River
                Oil & Gas LLC

            	
              3/22/2005

            	
              270

            	
              415

            
	
              Mills

            	
              Seilheimer,
                Dawn

            	
              River
                Oil & Gas LLC

            	
              3/4/2005

            	
              269

            	
              587

            
	
              Mills

            	
              Seilheimer,
                Dawn

            	
              River
                Oil & Gas LLC

            	
              3/4/2005

            	
              269

            	
              600

            
	
              Mills

            	
              Seilheimer,
                Dawn

            	
              River
                Oil & Gas LLC

            	
              3/4/2005

            	
              269

            	
              592

            
	
              Mills

            	
              Seilheimer,
                Oliver

            	
              River
                Oil & Gas LLC

            	
              3/4/2005

            	
              269

            	
              596

            
	
              Mills

            	
              Shelton,
                H. Lynn

            	
              River
                Oil & Gas, LLC 

            	
              3/12/2005

            	
              270

            	
              151

            
	
              Mills

            	
              Shelton,
                Marlene

            	
              River
                Oil & Gas, LLC 

            	
              3/12/2005

            	
              270

            	
              142

            
	
              Mills

            	
              Shelton,
                Tammy L. 

            	
              River
                Oil & Gas, LLC 

            	
              3/12/2005

            	
              270

            	
              147

            
	
              Mills

            	
              Soules,
                Bobbie Jeane

            	
              River
                Oil & Gas LLC

            	
              3/24/2005

            	
              269

            	
              910

            
	
              Mills

            	
              Stahnke,
                Clyde

            	
              River
                Oil & Gas LLC

            	
              5/10/2005

            	
              271

            	
              154

            
	
              Mills

            	
              Stahnke,
                Robert

            	
              River
                Oil & Gas LLC

            	
              4/19/2005

            	
              270

            	
              983

            
	
              Mills

            	
              Stanley,
                Nina Ernestine

            	
              River
                Oil & Gas LLC

            	
              4/7/2005

            	
              270

            	
              432

            
	
              Mills

            	
              Usrey,R
                W

            	
              River
                Oil & Gas LLC

            	
              3/5/2005

            	
              269

            	
              604

            
	
              Mills

            	
              Wadkins,
                Terry

            	
              River
                Oil & Gas LLC

            	
              4/27/2005

            	
              271

            	
              35

            

    

    

    

    

    
      
        
           

            Appendix
            II -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    APPENDIX
      III - NORTH PROPERTIES

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    This
      Appendix
      III
      is
      attached to and made a part of the Credit Agreement. All capitalized terms
      not
      otherwise defined in this Appendix
      III
      are
      defined in the Credit Agreement.

    

    
      	
              COUNTY

            	
              LESSOR

            	
              LESSEE

            	
              DATE

            	
              VOLUME

            	
              PAGE

            
	 	 	 	 	 	 
	
              Cooke

            	
              Block,
                Richard and Susan

            	
              Zebra
                Investments, Inc.

            	
              7/12/2005

            	
              1391

            	
              457

            
	
              Cooke

            	
              Christian,
                Fred (Executor)

            	
              Kelly
                K. Buster

            	
              6/17/2005

            	
              1381

            	
              567

            
	
              Cooke

            	
              Elam,
                Lois M.

            	
              Kelly
                K. Buster

            	
              4/25/2005

            	
              1372

            	
              691

            
	
              Cooke

            	
              Gribble,
                Jay (et ux)

            	
              Vicars
                Oil & Gas, LLC

            	
              6/27/2000

            	
              1111

            	
              123

            
	
              Cooke

            	
              Kirby,
                Vernon J., Jr. (et ux)

            	
              Kelly
                K. Buster

            	
              11/29/2004

            	
              1346

            	
              315

            
	
              Cooke

            	
              Rosson,
                Arthur and Gwendolyn

            	
              Walter
                Exploration

            	
              7/12/2000

            	
              1103

            	
              136

            
	
              Cooke

            	
              Smith,
                Ruth Malcolm

            	
              Walter
                Exploration

            	
              5/16/2000

            	
              1096

            	
              12

            
	
              Cooke

            	
              Wilson,
                Bonnie (et al)

            	
              Walter
                Exploration

            	
              7/12/2000

            	
              1103

            	
              132

            
	
              Denton

            	
              Fortenberry,
                Blake

            	
              Kelly
                K. Buster

            	
              9/15/2003

            	
              #2003-185338

            	 
	
              Denton

            	
              Fortenberry,
                Charlotte Marie

            	
              Kelly
                K. Buster

            	
              9/15/2003

            	
              #2003-185333

            	 
	
              Denton

            	
              Fortenberry,
                Leslie

            	
              Kelly
                K. Buster

            	
              9/15/2003

            	
              #2003-185337

            	 
	
              Denton

            	
              Fortenberry,
                Leslie

            	
              Kelly
                K. Buster

            	
              9/15/2003

            	
              #2003-185336

            	 
	
              Denton

            	
              Richardson,
                Rebecca Long

            	
              Kelly
                K. Buster

            	
              9/15/2003

            	
              #2003-185335

            	 
	
              Denton

            	
              Richardson,
                Rebecca Long

            	
              Kelly
                K. Buster

            	
              9/15/2003

            	
              #2003-185334

            	 
	
              Denton

            	
              Frye,
                William L. Frye (et ux)

            	
              Superior
                P&E, LLC

            	
              9/20/2001

            	
              4994

            	
              2982

            
	
              Denton

            	
              JJP
                Gas Venture

            	
              Enexco,
                Inc.

            	
              4/18/2002

            	
              5146

            	
              961

            
	
              Denton

            	
              Marsden,
                John Michale (et ux)

            	
              Argyle
                Resources, Inc.

            	
              4/25/2001

            	
              4845

            	
              943

            
	
              Denton

            	
              Monroe,
                Mary Ann

            	
              Superior
                P&E, LLC

            	
              9/20/2001

            	
              4994

            	
              2989

            
	
              Denton

            	
              Pruett,
                Edwin

            	
              Westside
                Energy, LP

            	
              6/3/2003

            	
              Doc
                #2004-33441

            
	
              Denton

            	
              Rhoades,
                Joe W.

            	
              Mark
                Jaehne, Trustee

            	
              10/22/2003

            	
              Doc
                #2003-192861

            
	
              Montague

            	
              Barcus,
                Bill J.

            	
              V.W.
                Hutson

            	
              3/9/2005

            	
              313

            	
              453

            
	
              Montague

            	
              Barcus,
                Netha Ann

            	
              V.W.
                Hutson

            	
              3/9/2005

            	
              313

            	
              447

            
	
              Montague

            	
              Beaver,
                Judy

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              310

            	
              698

            
	
              Montague

            	
              Bledsoe,
                Billie Ruth

            	
              V.W.
                Hutson

            	
              4/13/2005

            	
              317

            	
              709

            
	
              Montague

            	
              Bradford,
                Nancy H.

            	
              V.W.
                Hutson

            	
              3/8/2005

            	
              317

            	
              695

            
	
              Montague

            	
              Braswell,
                Paul B.

            	
              Kelly
                K. Buster

            	
              7/8/2004

            	
              291

            	
              179

            
	
              Montague

            	
              Bower,
                Betty Jean

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              309

            	
              900

            
	
              Montague

            	
              Christian,
                Fred (Executor)

            	
              Kelly
                K. Buster

            	
              6/17/2005

            	
              310

            	
              751

            
	
              Montague

            	
              Dunn,
                Clarence H.

            	
              V.W.
                Hutson

            	
              7/6/2004

            	
              291

            	
              323

            
	
              Montague

            	
              Elam,
                Lois M.

            	
              Kelly
                K. Buster

            	
              4/25/2005

            	
              320

            	
              368

            
	
              Montague

            	
              Five
                Ns, Ltd. d/b/a Running N Ranch

            	
              EBS
                Partners Production Co., LP

            	
              9/14/2005

            	
              331

            	
              653

            
	
              Montague

            	
              Five
                Ns, Ltd. d/b/a Running N Ranch

            	
              Joe
                Bob Smith

            	
              1/14/2004

            	
              274

            	
              621

            
	
              Montague

            	
              Gray,
                Glenn W. and Ava H.

            	
              D
                and J Resources, Inc.

            	
              3/31/2005

            	
              314

            	
              436

            
	
              Montague

            	
              Gulledge,
                Robin Lea

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              309

            	
              891

            
	
              Montague

            	
              Hawk,
                Carolyn and Joel

            	
              Kelly
                K. Buster

            	
              2/15/2005

            	
              320

            	
              356

            
	
              Montague

            	
              Hayden,
                Betty Lou

            	
              V.W.
                Hutson

            	
              3/3/2005

            	
              318

            	
              111

            
	
              Montague

            	
              Hood,
                Hugh

            	
              V.W.
                Hutson

            	
              3/3/2005

            	
              318

            	
              109

            
	
              Montague

            	
              Howard,
                Phil and Andra

            	
              Jacob
                Warnock

            	
              7/22/2005

            	
              322

            	
              711

            
	
              Montague

            	
              Howell,
                Ralph H.

            	
              V.W.
                Hutson

            	
              3/8/2005

            	
              313

            	
              455

            
	
              Montague

            	
              Huff,
                John N., II

            	
              V.W.
                Hutson

            	
              3/8/2005

            	
              312

            	
              751

            
	
              Montague

            	
              Little,
                Carol

            	
              Kelly
                K. Buster

            	
              2/15/2005

            	
              320

            	
              364

            
	
              Montague

            	
              Littell,
                H. Arthur (Trustee)

            	
              Kelly
                K. Buster

            	
              4/29/2004

            	
              289

            	
              232

            
	
              Montague

            	
              Littell,
                Linda

            	
              Kelly
                K. Buster

            	
              2/15/2005

            	
              320

            	
              360

            
	
              Montague

            	
              Mann,
                Hoyt A.

            	
              Kelly
                K. Buster

            	
              5/21/2005

            	
              286

            	
              936

            
	
              Montague

            	
              Maxwell,
                Johnny Ray (et ux)

            	
              V.W.
                Hutson

            	
              12/23/2004

            	
              307

            	
              514

            
	
              Montague

            	
              McKinzie,
                Birt Leana

            	
              Kelly
                K. Buster

            	
              6/27/2005

            	
              328

            	
              688

            
	
              Montague

            	
              Mitchell,
                Daile Mitchell (et ux)

            	
              V.W.
                Hutson

            	
              1/24/2005

            	
              310

            	
              751

            
	
              Montague

            	
              Morton,
                Mari-Kathryn

            	
              Kelly
                K. Buster

            	
              7/8/2004

            	
              291

            	
              183

            
	
              Montague

            	
              Moss,
                Bill L.

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              311

            	
              513

            
	
              Montague

            	
              Moss,
                James R.

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              309

            	
              889

            
	
              Montague

            	
              Nunneley,
                Jerry Dale and Raenell

            	
              Jacob
                Warnock

            	
              6/22/2005

            	
              322

            	
              708

            
	
              Montague

            	
              Nunneley,
                Jerry Dale and Raenell

            	
              Jacob
                Warnock

            	
              6/22/2005

            	
              322

            	
              714

            
	
              Montague

            	
              Pettigrew,
                Susan Lynette 

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              310

            	
              205

            
	
              Montague

            	
              Reed,
                Norma Ellen

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              311

            	
              901

            
	
              Montague

            	
              Reeves,
                Dixie

            	
              Kelly
                K. Buster

            	
              9/25/2004

            	
              299

            	
              11

            
	
              Montague

            	
              Rudy,
                George F.

            	
              V.W.
                Hutson

            	
              2/4/2005

            	
              309

            	
              903

            
	
              Montague

            	
              Seay,
                Glenn

            	
              Kelly
                K. Buster

            	
              6/27/2005

            	
              328

            	
              696

            
	
              Montague

            	
              Seay,
                Hardy Lee, Jr.

            	
              Kelly
                K. Buster

            	
              6/27/2005

            	
              328

            	
              692

            
	
              Montague

            	
              Steed,
                Jerri

            	
              V.W.
                Hutson

            	
              3/9/2005

            	
              314

            	
              704

            
	
              Montague

            	
              Stedco
                Partnership

            	
              Kelly
                K. Buster

            	
              6/22/2004

            	
              289

            	
              229

            
	
              Montague

            	
              Summers,
                Stanley M. (et ux)

            	
              V.W.
                Hutson

            	
              1/14/2005

            	
              307

            	
              546

            
	
              Montague

            	
              Wells,
                J.M.

            	
              Kelly
                K. Buster

            	
              10/13/2004

            	
              299

            	
              872

            
	
              Montague

            	
              Whittington,
                Roberta W.

            	
              EBS
                Partners Production Co., LP

            	
              11/30/2005

            	
              341

            	
              20

            
	
              Montague

            	
              Whittington,
                Roberta W. (et al)

            	
              EBS
                Partners Production Co., LP

            	
              11/30/2005

            	
              341

            	
              21

            
	
              Montague

            	
              Winborn,
                Mary Ellen

            	
              V.W.
                Hutson

            	
              3/3/2005

            	
              318

            	
              107

            
	
              Shelby

            	
              Allar
                Company Corporation

            	
              L.
                Lee Kidd

            	
              7/29/2002

            	
              950

            	
              608

            
	
              Shelby

            	
              BGS
                Foundation, Inc.

            	
              Trant
                L. Kidd

            	
              7/30/2002

            	
              950

            	
              622

            
	
              Shelby

            	
              Barbe,
                Bobbie Ann

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              329

            
	
              Shelby

            	
              Bentsen,
                Mary Margaret

            	
              Trant
                L. Kidd

            	
              12/2/2002

            	
              953

            	
              279

            
	
              Shelby

            	
              Borders,
                Gene

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              308

            
	
              Shelby

            	
              Bradshaw,
                Edward Lee and Curtis

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              333

            
	
              Shelby

            	
              Bradshaw,
                J.T.

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              337

            
	
              Shelby

            	
              Bradshaw,
                K.P.

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              321

            
	
              Shelby

            	
              Bradshaw,
                Opal (et al)

            	
              L.
                Lee Kidd

            	
              1/14/2000

            	
              875

            	
              356

            
	
              Shelby

            	
              Bradshaw,
                Paul Jefferson

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              340

            
	
              Shelby

            	
              Bradshaw,
                Walter Eugene

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              325

            
	
              Shelby

            	
              Cochran,
                Julia J.

            	
              L.
                Lee Kidd

            	
              1/15/2000

            	
              875

            	
              347

            
	
              Shelby

            	
              Fountain,
                Bobby Joe and Iletha

            	
              L.
                Lee Kidd

            	
              1/11/2000

            	
              875

            	
              312

            
	
              Shelby

            	
              Harris,
                H.B., Jr.

            	
              Trant
                L. Kidd

            	
              12/10/2002

            	
              953

            	
              275

            
	
              Shelby

            	
              Harris,
                L.M., Jr.

            	
              Trant
                L. Kidd

            	
              7/31/2002

            	
              947

            	
              278

            
	
              Shelby

            	
              Haley,
                Mary Elizabeth

            	
              L.
                Lee Kidd

            	
              1/13/2000

            	
              875

            	
              350

            
	
              Shelby

            	
              Johnson,
                Joan

            	
              Trant
                L. Kidd

            	
              8/2/2002

            	
              950

            	
              282

            
	
              Shelby

            	
              Jones,
                Dalton S.

            	
              L.
                Lee Kidd

            	
              1/13/2000

            	
              875

            	
              315

            
	
              Shelby

            	
              Jones,
                Joe L.

            	
              L.
                Lee Kidd

            	
              1/13/2000

            	
              875

            	
              318

            
	
              Shelby

            	
              Kimbro,
                Bill

            	
              Trant
                L. Kidd

            	
              8/2/2002

            	
              954

            	
              177

            
	
              Shelby

            	
              Kimbro,
                Curtis

            	
              Trant
                L. Kidd

            	
              8/2/2002

            	
              947

            	
              282

            
	
              Shelby

            	
              Kimbro,
                Kate

            	
              Trant
                L. Kidd

            	
              8/2/2002

            	
              947

            	
              285

            
	
              Shelby

            	
              McLean,
                Carroll Rather

            	
              Trant
                L. Kidd

            	
              7/25/2002

            	
              950

            	
              618

            
	
              Shelby

            	
              Ralph,
                Ann

            	
              Trant
                L. Kidd

            	
              12/2/2002

            	
              953

            	
              270

            
	
              Shelby

            	
              Rather,
                Gordon S.

            	
              Trant
                L. Kidd

            	
              7/25/2002

            	
              950

            	
              620

            
	
              Shelby

            	
              Rector,
                Jo Ruth

            	
              Trant
                L. Kidd

            	
              7/25/2002

            	
              950

            	
              612

            
	
              Shelby

            	
              Sanders,
                Daliah

            	
              L.
                Lee Kidd

            	
              1/20/2000

            	
              875

            	
              344

            
	
              Shelby

            	
              Watson,
                Mittie B. and Billy M.

            	
              L.
                Lee Kidd

            	
              1/13/2000

            	
              875

            	
              353

            
	
              Wise

            	
              Balthrop,
                Maggie Sue

            	
              EBS
                Oil & Gas Partners, LLC

            	
              7/21/2003

            	
              1309

            	
              129

            
	
              Wise

            	
              Barnes,
                Kim Cassity

            	
              EBS
                Oil & Gas Partners, LLC

            	
              6/30/2003

            	
              1308

            	
              156

            
	
              Wise

            	
              Barnett,
                Patricia Joyce

            	
              Kelly
                K. Buster

            	
              6/17/2004

            	
              1442

            	
              503

            
	
              Wise

            	
              Cassity,
                Gary

            	
              EBS
                Oil & Gas Partners, LLC

            	
              6/30/2003

            	
              1308

            	
              148

            
	
              Wise

            	
              Cassity,
                Glenn

            	
              EBS
                Oil & Gas Partners, LLC

            	
              6/30/2003

            	
              1308

            	
              152

            
	
              Wise

            	
              Forman,
                Elbert Ray

            	
              Kelly
                K. Buster

            	
              11/15/2003

            	
              1367

            	
              675

            
	
              Wise

            	
              Forman,
                Kathleen B.

            	
              Kelly
                K. Buster

            	
              11/15/2003

            	
              1367

            	
              661

            
	
              Wise

            	
              Fortenberry,
                Henry

            	
              Kelly
                K. Buster

            	
              9/1/2003

            	
              1356

            	
              853

            
	
              Wise

            	
              Fortenberry,
                Janet

            	
              Kelly
                K. Buster

            	
              9/1/2003

            	
              1355

            	
              441

            
	
              Wise

            	
              Fortenberry,
                Jim B. (et al)

            	
              EBS
                Oil & Gas Partners, LLC

            	
              8/15/2003

            	
              1321

            	
              380

            
	
              Wise

            	
              Johnston,
                Joye

            	
              EBS
                Oil & Gas Partners, LLC

            	
              1/15/2004

            	
              1389

            	
              658

            
	
              Wise

            	
              Knight,
                Randy Jack

            	
              EBS
                Oil & Gas Partners, LLC

            	
              1/15/2004

            	
              1391

            	
              573

            
	
              Wise

            	
              Knox,
                Martha R. (et vir)

            	
              EBS
                Oil & Gas Partners, LLC

            	
              10/8/2003

            	
              1352

            	
              131

            
	
              Wise

            	
              Lindley,
                Bobbylea Fortenberry

            	
              EBS
                Oil & Gas Partners, LLC

            	
              8/15/2003

            	
              1321

            	
              370

            
	
              Wise

            	
              Morris,
                Virginia Mae

            	
              EBS
                Oil & Gas Partners, LLC

            	
              1/15/2004

            	
              1387

            	
              651

            
	
              Wise

            	
              Pruett,
                Harold Ray

            	
              Kelly
                K. Buster

            	
              11/15/2003

            	
              1367

            	
              654

            
	
              Wise

            	
              Skinner,
                Dwight D. (et al)

            	
              EBS
                Oil & Gas Partners, LLC

            	
              9/2/2003

            	
              1331

            	
              52

            
	
              Wise

            	
              Swingler,
                Anna Forman

            	
              Kelly
                K. Buster

            	
              11/15/2003

            	
              1367

            	
              668

            
	
              Wise

            	
              Woodruff,
                Carl (et ux)

            	
              EBS
                Oil & Gas Partners, LLC

            	
              10/18/2003

            	
              1348

            	
              873

            

    

    

    

    
      	 	
              WELLS:

            
	 	 
	
              Cooke

            	
              Christian
                #1A

            
	 	
              56.00%
                Working Interest

            
	 	
              43.12%
                Net Revenue Interest

            
	 	
              3.00%
                Overriding Royalty Interest

            
	 	 
	
              Cooke

            	
              Elam
                #1 

            
	 	
              73.00%
                Working Interest

            
	 	
              56.21%
                Net Revenue Interest

            
	 	
              1.00%
                Overriding Royalty Interest

            
	 	 
	
              Cooke

            	
              Gribble
                #1

            
	 	
              16.00%
                Working Interest

            
	 	
              12.48%
                Net Revenue Interest

            
	 	 
	
              Cooke

            	
              Kirby
                #1

            
	 	
              56.00%
                Working Interest

            
	 	
              43.12%
                Net Revenue Interest

            
	 	
              1.00%
                Overriding Royalty Interest

            
	 	 
	
              Cooke

            	
              Smith
                #1

            
	 	
              47.50%
                Working Interest

            
	 	
              38.00%
                Net Revenue Interest

            

    

    

    
      	 	 
	
              Denton

            	
              C.
                Fortenberry #1, #2, #3, #4, #5,

            
	 	
              #6,
                #7 and #8

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Denton

            	
              Lucille
                Pruett #1

            
	 	
              75.00%
                Working Interest

            
	 	
              60.00%
                Net Revenue Interest

            
	 	 
	
              Denton

            	
              Lucille
                Pruett #2H and #3

            
	 	
              100.00%
                Working Interest

            
	 	
              80.00%
                Net Revenue Interest

            
	 	 
	
              Denton

            	
              Marsden
                #1

            
	 	
              19.25%
                Working Interest

            
	 	
              14.0150%
                Net Revenue Interest

            
	 	 
	
              Denton

            	
              Monroe
                #1

            
	 	
              30.00%
                Working Interest

            
	 	
              23.8944%
                Net Revenue Interest

            

    

    

    
      	
              Montague

            	
              Arthur
                Littell #1

            
	 	
              27.00%
                Working Interest

            
	 	
              21.60%
                Net Revenue Interest

            
	 	 
	
              Montague

            	
              Christian
                #1A

            
	 	
              56.00%
                Working Interest

            
	 	
              43.12%
                Net Revenue Interest

            
	 	
              3.00%
                Overriding Royalty Interest

            
	 	 
	
              Montague

            	
              Dunn
                #1

            
	 	
              14.00%
                Working Interest

            
	 	
              10.78%
                Net Revenue Interest

            
	 	 
	
              Montague

            	
              Elam
                #1

            
	 	
              73.00%
                Working Interest

            
	 	
              56.21%
                Net Revenue Interest

            
	 	
              1.00%
                Overriding Royalty Interest

            
	 	 
	
              Montague

            	
              Hawk-Littell
                #1

            
	 	
              41.67%
                Working Interest

            
	 	
              33.336%
                Net Revenue Interest

            
	 	 
	
              Montague

            	
              Mitchell
                #1

            
	 	
              59.00%
                Working Interest

            
	 	
              44.84%
                Net Revenue Interest

            
	 	
              1.00%
                Overriding Royalty Interest

            
	 	 
	
              Montague

            	
              Nunneley
                #1

            
	 	
              52.00%
                Working Interest

            
	 	
              39.52%
                Net Revenue Interest

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Montague

            	
              Phillips
                #1

            
	 	
              12.00%
                Working Interest

            
	 	
              9.24%
                Net Revenue Interest

            
	 	 
	
              Montague

            	
              Summers
                #1

            
	 	
              52.00%
                Working Interest

            
	 	
              39.52%
                Net Revenue Interest

            
	 	
              1.00%
                Overriding Royalty Interest

            
	 	 
	
              Montague

            	
              Whittington
                #1

            
	 	
              47.00%
                Working Interest

            
	 	
              35.72%
                Net Revenue Interest

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Montague

            	
              Williams
                Estate #1

            
	 	
              64.00%
                Working Interest

            
	 	
              48.64%
                Net Revenue Interest

            
	 	
              2.00%
                Overriding Royalty Interest

            

    

    

    
      	
              Shelby

            	
              Gene
                Borders #1

            
	 	
              19.813%
                Working Interest

            
	 	
              14.860%
                Net Revenue Interest

            

    

    

    
      	
              Wise

            	
              Balthrop
                #1

            
	 	
              12.5%
                Working Interest

            
	 	
              10.00%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Balthrop
                #2

            
	 	
              15.50%
                Working Interest

            
	 	
              12.40%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Barnett
                (Patricia) #1

            
	 	
              17.00%
                Working Interest

            
	 	
              13.60%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Cassity
                #1

            
	 	
              12.50%
                Working Interest

            
	 	
              10.00%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Foreman
                #1

            
	 	
              22.50%
                Working Interest

            
	 	
              17.775%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Fortenberry
                #1

            
	 	
              13.50%
                Working Interest

            
	 	
              10.53%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Henry
                Fortenberry #1

            
	 	
              3.125%
                Working Interest

            
	 	
              2.34375%
                Net Revenue Interest

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Wise

            	
              Henry
                Fortenberry #2, #3, #4, #5, #6

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Wise

            	
              Janet
                Fortenberry #1 and #2

            
	 	
              3.125%
                Working Interest

            
	 	
              2.34375%
                Net Revenue Interest

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Wise

            	
              Janet
                Fortenberry #3, #4, #5, #6, #7

            
	 	
              2.00%
                Overriding Royalty Interest

            
	 	 
	
              Wise

            	
              Knight
                #1

            
	 	
              6.458%
                Working Interest

            
	 	
              5.344%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Knight
                #2, #3 and #4

            
	 	
              5.00%
                Working Interest

            
	 	
              3.75%
                Net Revenue Interest

            
	 	
              .05%
                Overriding Royalty Interest

            
	 	 
	
              Wise

            	
              Knight
                #5, #6 and #7

            
	 	
              .05%
                Overriding Royalty Interest

            
	 	 
	
              Wise

            	
              Lindley
                #1 and #2

            
	 	
              20.00%
                Working Interest

            
	 	
              15.60%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Pruett
                #1 and #2

            
	 	
              14.00%
                Working Interest

            
	 	
              10.92%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Skinner
                #1

            
	 	
              18.00%
                Working Interest

            
	 	
              14.22%
                Net Revenue Interest

            
	 	 
	
              Wise

            	
              Woodruff
                #1

            
	 	
              18.50%
                Working Interest

            
	 	
              14.80%
                Net Revenue Interest

            

    

    

    

    

    
      
        
           

            Appendix
            III -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      I - SECURITY DOCUMENTS

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    1. Oil
      and Gas Properties

    

    
      	 	
              A.

            	
              Deed
                of Trust, Mortgage, Security Agreement, Assignment of Production,
                Fixture
                Filing and Financing Statement covering Borrowers’ Oil and Gas Properties
                located in:

            

    

    

    County     State

    

    Brown     Texas

    Comanche   
Texas

    Coryell     Texas

    Ellis     Texas

    Hamilton    Texas

    Hill     Texas

    Lampasas    Texas

    Mills     Texas

    

    

    2. Financing
      Statements

    

    For
      Westside Production:

     

    Jurisdiction:  Secretary
      of State of Texas

    

     

    

    
      
        
           

            Schedule
            I -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      II - [RESERVED]

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    

    

    
      
        
           

            Schedule
            II -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      5.06 - LITIGATION

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    

    None.

    
      
        
           

            Schedule
            5.06 -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      5.12 - HYDROCARBON INTERESTS

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    

    Primula
      #1H

    

    50.00%
      Working Interest 

    

    38.75%
      Net Revenue Interest

    
      
        
           

            Schedule
            5.12 -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      5.20 - CORPORATE STRUCTURE

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    

    WESTSIDE
      ENERGY CORPORATION

    
      WESTSIDE
        ENERGY

      CORPORATION

      (NEVADA)
CORPORATE
      STRUCTURE 

     

    
      

        WESTSIDE
          ENERGY CORPORATION (NEVADA)

         

        WESTSIDE
          ENERGY GP LLC (TEXAS) (100% OWNED)

         

        WESTSIDE
          ENERGY PRODUCTION COMPANY, LP (TEXAS) (F/K/A EBS) (99.9% LP 

            INTEREST
          OWNED BY PARENT; 0.1% GP INTEREST OWNED BY WEGP)

         

        WESTSIDE
          ENERGY OPERATING COMPANY, LP (TEXAS) (F/K/A EBS) (99.9% LP     

                  INTEREST
          OWNED BY PARENT; 0.1% GP INTEREST OWNED BY WEGP)

         

         

         

         

         

        WESTSIDE
          LEASES JOA

         

    

    
      
        
           

            Schedule
            5.20 -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      5.30 - PRODUCTION MATTERS

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    

    

    None.

    
      
        
           

            Schedule
            5.30 -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      7.01 - LIENS

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    Deed
      of
      Trust, Mortgage, Security Agreement, Financing Statement, and Assignment of
      Production and Revenues, dated as of March 23, 2007, by and among, Westside
      Energy Production Company, LP, as Mortgagor and KeyBank National Association,
      as
      Mortgagee.

    

    

    

    

    
      
        
           

            Schedule
            7.01 -- Credit Agreement

          Westside
            Energy Production Company, LP & Westside Energy Operating Company,
            LP  

          Page 

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      7.06 - TRANSACTIONS WITH AFFILIATES

    

    CREDIT
      AGREEMENT 

    

    dated
      as
      of March 23, 2007

    between
      Spindrift Partners, L.P. (the “Administrative
      Agent”),

    the
      Lenders party thereto,

    Westside
      Energy Production Company, LP 

    and

    Westside
      Energy Operating Company, LP (“Borrowers”)

    

    

    

    None.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]