Document:

Exhibit 10.2

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE
SECURITIES LAWS. ACCORDINGLY THIS NOTE MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS EXEMPT
UNDER PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT.

 

 

 

SECURED PROMISSORY NOTE

 

	$4,000,000.00	March 31, 2016

 

FOR VALUE RECEIVED,
Samson Oil and Gas USA, Inc., a Colorado Corporation ("Maker"), hereby promises to pay to Oasis Petroleum
North America LLC, a Delaware limited liability company ("Payee"), the sum of Four Million Dollars ($4,000,000),
pursuant to that certain Purchase and Sale Agreement, dated as of December 31, 2015 (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, the "Agreement") in accordance with the terms of this
promissory note (this “Note”).

 

1.Payment
of Principal. Maker shall pay the entire principal amount of this promissory note (this “Note”) on or before
March 31, 2017, or such later date as may subsequently be agreed upon in writing by Maker and Payee (the “Due Date”),
together with all accrued and unpaid interest thereon,.

 

2.Security.
The indebtedness evidenced by this Note is secured by that certain Mortgage, Assignment of As-Extracted Collateral, Security Agreement
and Fixture Filing (the “Security Document”), executed and delivered by Maker, encumbering Maker’s
property more particularly described therein (the “Collateral”), dated of even date herewith, and reference
is made thereto for rights as to acceleration of the indebtedness evidenced by this Note.

 

3.Interest.
The outstanding principal balance of this Note shall accrue interest at a fixed rate of ten percent (10%) per annum (determined
on a daily basis and for the actual number of days elapsed based upon a 365 or 366 day year, as the case may be), simple interest;
provided, however, that following an Event of Default, the outstanding principal balance of this Note shall bear interest as provided
in Section 8 of this Note. Accrued interest on this Note shall be paid on or before the Due Date.

 

4.Interest
Method of Payment; Application. All payments of principal (including any prepayments) of this Note shall be made on or
before the Due Date thereof by wire transfer of immediately available funds to such bank account as Payee may from time to time
designate in writing or, at Payee’s election, by a bank cashier’s check or other certified funds drawn on a United
States bank. Payments (including all prepayments) received by Payee on this Note shall be applied first to the payment of accrued
and unpaid interest and only thereafter to the outstanding principal balance of this Note.

 

5.Prepayment.

 

(a)Prior Notice
of Prepayment Required. If Maker elects to redeem or pre-pay all or any portion of this Note (hereinafter referred to as a
“prepayment”), Maker shall give prior notice of the prepayment to Payee.

 

     

     

    

 

(b)Notice to
Payee. The notice of prepayment shall state:

 

(i)the prepayment
date;

 

(ii)the prepayment
amount;

 

(iii)that this
Note or the portion thereof called for prepayment must be surrendered to Maker to collect the prepayment; and

 

(iv)that, unless
Maker defaults in making such prepayment, interest on this Note or the portion thereof called for prepayment ceases to accrue on
the prepayment date stated in the notice;

 

(c)Effect of
Notice of Prepayment. This Note when called for prepayment becomes irrevocably due and payable on the prepayment date for the
prepayment amount specified in the notice of prepayment.

 

6.Representations.
Maker hereby represents to Payee that as of the date hereof and for so long as any portion of the indebtedness payable hereunder
remain unpaid:

 

(a)The name and
address of Maker as they appear in this Note are the correct and exact legal name and present principal address of Maker.

 

(b)This Note, the
Security Document and each other document executed in connection herewith and therewith (i) has been duly authorized, executed
and delivered by Maker and is the legal, valid and binding obligation of Maker, enforceable in accordance with its terms, (ii)
does not violate, conflict with or result in a breach under any agreement, instrument, lease, restriction, obligation, law, rule,
regulation, or court or administrative order to which Maker or the Collateral is subject and (iii) does not require any license,
permit, authorization, filing or consent other than those that have already been made or obtained by Payee.

 

7.Delivery
of Notices.All notices, approvals, consents, correspondence or other communications required or desired to be given
hereunder shall be given in writing and shall be delivered by overnight courier, hand delivery or certified or registered mail,
postage prepaid, to the addresses set forth in the Agreement.

 

8.Events
of Default. The entire principal balance of this Note shall, at the option of Payee immediately be due and payable upon
the occurrence of one or more of the following events (each, an “Event of Default”): (i) default in the payment of
principal or interest on this Note when the same shall become due and payable; (ii) Maker’s material failure to comply with
any of the provisions of, or the material inaccuracy of any representation or warranty contained in, this Note, the Security Document
or any other document or instrument executed in connection herewith or therewith; (iii) Maker’s (A) application for, or consent
to, the appointment of a receiver, trustee or liquidator of Maker or of its property, (B) written admission of its insolvency or
its inability to pay its debts as they mature, or (C) general assignment of its assets for the benefit of creditors; (iii) Maker’s
filing of a voluntary petition in bankruptcy or a petition or an answer seeking reorganization, or an arrangement with creditors;
or (iv) the entry of a court order approving a bankruptcy petition filed against Maker against Maker that is not vacated or set
aside within thirty (30) days. Upon the occurrence of any one or more Events of Default (a) Payee may declare immediately due and
payable the entire unpaid principal amount hereof; (b) interest shall accrue on the outstanding principal balance at fifteen percent
(15%) per annum from the date of such Event of Default until the date the unpaid principal balance hereof is paid in full; and
(c) Maker shall pay all costs, fees and expenses, including, without limitation, reasonable attorneys’ fees and expenses,
paid or incurred by Payee in connection with collection of this Note, whether paid or incurred in connection with collection by
suit or otherwise.

 

     

     

    

 

9.Intercreditor.
Reference is made to the Subordination and Intercreditor Agreement dated as of March 31,
2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”),
among MUTUAL OF OMAHA BANK, as administrative agent for the First Lien Lenders (as defined therein), and OASIS PETROLEUM
NORTH AMERICA, LLC, as Second Lien Lender (as defined therein), and SAMSON OIL AND GAS USA, INC. Notwithstanding anything herein
to the contrary, the lien and security interest granted to the Second Lien Lender pursuant to this Agreement and the other Loan
Documents (as defined herein) and the exercise of any right or remedy by the Second Lien Lender and the other Secured Parties hereunder
are subject to the provisions of the Intercreditor Agreement. In the event of any conflict or inconsistency between the provisions
of the Intercreditor Agreement and this Agreement, the provisions of the Intercreditor Agreement shall control.

 

10.Miscellaneous.

 

(a) Maker
hereby: (i) waives demand, presentment, protest, notice of dishonor, suit against or joinder of any other person, and all other
requirements necessary to charge or hold Maker liable with respect to this Note; (ii) waives any right to immunity from any such
action or proceeding and waives any immunity or exemption of any property, wherever located, from garnishment, levy, execution,
seizure or attachment prior to or in execution of judgment, or sale under execution or other process for the collection of debts;
(iii) waives any right to interpose any set-off or non-compulsory counterclaim or to plead laches or any statute of limitations
as a defense in any such action or proceeding; (iv) irrevocably waives the right to direct the application of any and all payments
at any time hereafter received by Payee from or on behalf of Maker. Maker agrees that Payee shall have the continuing exclusive
right to apply any and all such payments against the then due and owing obligations of Maker in such order of priority as Payee
may deem advisable. 

 

(b) Maker agrees
to pay any documentary stamp required with respect to the execution, delivery, performance or enforcement of this Note.

 

(c)This Note may
not be modified or amended except by a writing executed by Maker and Payee.

 

(d)Any consent
to an amendment or a waiver by Payee will bind Payee and every subsequent holder of this Note even if a notation of the consent
or waiver is not made on the Note.

 

(e)Any waiver by
Payee of Maker’s prompt and complete performance of, or default under, any provision of this Note shall not operate nor be
construed as a waiver of any subsequent breach or default.

 

(f)The failure
by Payee to exercise any right or remedy which Payee may possess hereunder shall not operate nor be construed as a bar to the exercise
of any such right or remedy upon the occurrence of any subsequent breach or default.

 

     

     

    

 

(g)No remedy conferred
hereby shall be exclusive of any other remedy referred to herein or therein or now or hereafter available at law, in equity, by
statute or otherwise.

 

(h)It is the intent
of Payee and Maker in the execution of this Note and the Security Documents to contract in strict compliance with applicable usury
law. In furtherance thereof, Payee and Maker stipulate and agree that none of the terms and provisions contained in this Note or
in any other Security Document shall ever be construed to create a contract to pay for the use, forbearance or detention of money,
interest at a rate in excess of the Maximum Rate; Maker shall not ever be obligated or required to pay interest on this Note at
a rate in excess of the Maximum Rate that may be lawfully charged under applicable law, and the provisions of this paragraph shall
control over all other provisions of this Note and any other Security Document which may be in apparent conflict herewith. Payee,
including each holder of this Note, expressly disavows any intention to charge or collect excessive unearned interest or finance
charges in the event the maturity of this Note is accelerated. If the maturity of this Note shall be accelerated for any reason
or if the principal of this Note is paid prior to the end of the term of this Note, and as a result thereof the interest received
for the actual period of existence of the Loan exceeds the amount of interest that would have accrued at the Maximum Rate, Payee
or other holder of this Note shall, at its option, either refund to Maker the amount of such excess or credit the amount of such
excess against the outstanding principal of this Note and thereby shall render inapplicable any and all penalties of any kind provided
by applicable law as a result of such excess interest. In the event that Lender or any other holder of this Note shall contract
for, charge or receive any amounts and/or any other thing of value which are determined to constitute interest which would increase
the effective interest rate on this Note to a rate in excess of the Maximum Rate, all such sums determined to constitute interest
in excess of the amount of interest at the Maximum Rate shall, upon such determination, at the option of the Payee or other holder
of this Note, be either immediately returned to Maker or credited against the outstanding principal of this Note, in which event
any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. By execution
of this Note Maker acknowledges that it believes the indebtedness and interest to be non-usurious and agrees that if, at any time,
Maker should have reason to believe that the indebtedness and interest is in fact usurious, it will give Payee or other holder
of this Note notice of such condition and Maker agrees that Payee or other holder shall have ninety (90) days in which to make
appropriate refund or other adjustment in order to correct such condition if in fact such exists. The term "applicable
law" as used in this Note shall mean the laws of the State of Texas or the laws of the United States, whichever laws
allow the greater rate of interest, as such laws now exist or may be changed or amended or come into effect in the future. The
term "Maximum Rate" means, with respect to Payee, the maximum nonusurious rate of interest that Payee is
permitted under applicable State of Texas law to contract for, take, charge, or receive with respect to similar indebtedness.

 

 

THIS NOTE AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF TEXAS (WITHOUT GIVING EFFECT TO TEXAS' PRINCIPLES OF CONFLICTS OF LAW) AND THE LAWS OF THE UNITED
STATES APPLICABLE TO TRANSACTIONS IN SUCH STATE. MAKER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY TEXAS
OR FEDERAL COURT SITTING IN HOUSTON, TEXAS (OR ANY COUNTY WHERE ANY PORTION OF THE PREMISES IS LOCATED) OVER ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OF THE LOAN DOCUMENTS.

 

     

     

    

 

EACH PARTY HERETO
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE OR ANY SECURITY DOCUMENT (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS PARAGRAPH.

 

THIS WRITTEN AGREEMENT
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.

 

 

[Signature page
follows.]

 

     

     

    

 

 

	 	SAMSON OIL AND GAS USA, INC.
	 	 
	 	 
	 	By:	/s/ Robyn Lamont
	 	Name:	Robyn Lamont, 
	 	 	Vice President and Chief Financial OfficerExhibit 10.3

Execution Version

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD AMENDMENT
TO CREDIT AGREEMENT (this “Amendment”), dated as of March 31, 2016, is among SAMSON OIL AND GAS
USA, INC., a Colorado corporation (“Borrower”), SAMSON OIL & GAS LIMITED, an Australian
public company (the “Parent”), SAMSON OIL AND GAS USA MONTANA, INC., a Colorado corporation (“Samson
Montana”, and together with the Parent, collectively, the “Guarantors”, and each, individually,
a “Guarantor”), the Lenders party hereto, and MUTUAL OF OMAHA BANK, as Administrative Agent for
the Lenders (in such capacity, “Administrative Agent”) and as L/C Issuer.

 

R E C I
T A L S

 

A.Borrower, the
financial institutions party thereto, and Administrative Agent are parties to a Credit Agreement dated as of January 27, 2014,
as amended by that certain First Amendment to Credit Agreement, dated as of November 24, 2014, and that certain Second
Amendment to Credit Agreement, dated as of May 13, 2015 (collectively, the “Original Credit Agreement”).

 

B.The parties desire
to amend the Original Credit Agreement as hereinafter provided.

 

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

 

1.Same Terms.
All terms used herein which are defined in the Original Credit Agreement shall have the same meanings when used herein, unless
the context hereof otherwise requires or provides. In addition, (a) all references in the Loan Documents to the “Credit
Agreement” or the “Agreement” shall mean the Original Credit Agreement, as amended by this Amendment,
as the same shall hereafter be amended from time to time, and (b) all references in the Loan Documents to the “Loan
Documents” shall mean the Loan Documents, as amended by this Amendment and the Modification Papers, as the same shall hereafter
be amended from time to time. In addition, the following terms have the meanings set forth below:

 

“Effective
Date” means the date when (a) all Lenders have executed this Amendment, and (b) the conditions set forth
in Section 2 of this Amendment have been complied with to the satisfaction of the Administrative Agent, unless waived
in writing by the Administrative Agent.

 

“Modification
Papers” means this Amendment and all of the other documents and agreements executed in connection with the transactions
contemplated by this Amendment.

 

2.Amendments
to Original Credit Agreement. On the Effective Date, the Original Credit Agreement shall be deemed to be amended as follows:

 

(a)The
following definitions in Section 1.01 of the Original Credit Agreement shall be amended to read in their entireties as follows:

 

    	 

     

    

 

“‘Applicable
Rate’ means, from time to time, with respect to any Base Rate Loan or Eurodollar Rate Loan, or with respect to the
Letter of Credit fee and the commitment fee payable hereunder, as the case may be, the rate per annum set forth below based upon
the Leverage Ratio, as set forth in the most recent Compliance Certificate received by Administrative Agent pursuant to Section
7.02(a):

 

	Pricing 

Level	Leverage Ratio	Eurodollar 

Loans and 

Letter of 

Credit Fee	Base Rate

Loans	Commitment

 Fee Rate
	1	≤ 2.50 to 1.00	3.00%	1.25%	0.50%
	2	> 2.50 to 1.00 but ≤ 3.00 to 1.00	4.00%	1.75%	0.50%
	3	> 3.00 to 1.00 but ≤ 3.50 to 1.00	4.50%	2.00%	0.50%
	4	> 3.50 to 1.00 but ≤ 4.00 to 1.00	5.00%	2.25%	0.50%
	5	> 4.00 to 1.00 but ≤ 4.50 to 1.00	5.50%	2.50%	0.25%
	6	> 4.50 to 1.00	6.00%	2.75%	0.25%

 

For the
period beginning on the Third Amendment Effective Date through the date a Compliance Certificate is delivered for the fiscal quarter
ending June 30, 2016, the Applicable Rate shall be set at Pricing Level 6. Upon Borrower’s delivery of a Compliance Certificate
pursuant to Section 7.02(a), the Applicable Rate shall automatically be adjusted as set forth in the schedule above, such
automatic adjustment to take effect as of the first Business Day following the date a Compliance Certificate is delivered; provided,
however, in the event Borrower fails to timely deliver a Compliance Certificate as required by Section 7.02(a), the
Applicable Rate shall be automatically set at Pricing Level 6 in the schedule above (such automatic adjustment to take effect on
the first Business Day following the date such Compliance Certificate was required to have been delivered under Section 7.02(a))
until delivery of a Compliance Certificate indicating an adjustment to the Applicable Rate is applicable, such adjustment to take
effect automatically as of the first Business Day following delivery of such Compliance Certificate

 

If, as
a result of any restatement of or other adjustment to the financial statements of Borrower or for any other reason (including without
limitation, late delivery of a Compliance Certificate), Borrower or Administrative Agent determines that either (a) the Leverage
Ratio as calculated by Borrower as of any applicable date was inaccurate and a proper calculation of such ratio would have resulted
in higher pricing for such period or (b) such Compliance Certificate (which may have been delivered untimely) indicates a Leverage
Ratio that would have resulted in a higher pricing for such period, Borrower shall promptly and retroactively be obligated to pay
to Administrative Agent for the account of the Lenders an amount equal to the excess of the amount of interest and fees that should
have been paid for such period over the amount of interest and fees actually paid for such period; provided, however,
if the proper calculation thereof would have resulted in lower pricing for such period, neither Administrative Agent nor any Lender
shall have any obligation to recalculate such interest or fees or to repay any interest or fees to Borrower.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 2

     

    

 

 

‘Eurodollar
Rate’ means for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the rate
determined by Administrative Agent to be the London interbank offered rate as administered by ICE Benchmark Administration (or
any other Person that takes over the administration of such rate) that appears on pages LIBOR01 or LIBOR02 of the Reuters screen
that displays such rate (or any successor thereto) for deposits in Dollars (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period; provided that if such rate appearing on such screen or page shall be less than
zero, such rate shall be deemed to be zero for purposes of this Agreement. If such rate is not available at such time for any reason,
Administrative Agent shall determine such rate as the average of quotations for three (3) major New York money center banks of
whom Administrative Agent shall inquire as the "London Interbank Offered Rate" for deposits in U.S. Dollars at approximately
11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period.

 

‘Test
Period’ means, at any time, the four consecutive fiscal quarters of Borrower then last ended (in each case taken
as one accounting period) for which financial statements have been or are required to be delivered pursuant to this Agreement;
provided, however, for purposes of the calculation of EBITDAX and interest expense for the Test Period ending June
30, 2016, such amounts shall be annualized by taking the results of the fiscal quarter ending June 30, 2016, and multiplying them
by four (4); for the Test Period ending September 30, 2016, such amounts shall be annualized by taking the results of the two (2)
fiscal quarters ending September 30, 2016, and multiplying them by two (2); and for the Test Period ending December 31, 2016, such
amounts shall be annualized by taking the results of the three (3) fiscal quarters ending December 31, 2016, and multiplying them
by four (4) and dividing them by three (3).”

 

(b)The
following definitions shall be added to Section 1.01 of the Original Credit Agreement in appropriate alphabetical order:

 

“‘Available
Commitment’ means, as of any date of determination thereof, the difference between (a) the Commitment on such date,
minus (b) the Outstanding Amount of Loans and L/C Obligations on such date.

 

‘Equity
Transaction’ means a transaction or series of transactions whereby one or more financial institutions or other third
parties who qualify as “accredited investors” under applicable Securities Laws contributes capital to and receives
Equity Interests in Borrower, which (a) results in aggregate net cash proceeds to Borrower of not less than $5,000,000, and (b)
is on terms and conditions and pursuant to documentation acceptable to Administrative Agent.

 

‘Excess
Cash Flow’ means, with respect to Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP,
as of any applicable date of determination thereof for the calendar month then ended, an amount equal to (a) cash receipts for
such calendar month, minus (b) lease operating expenses paid during such calendar month, minus (c) consolidated cash
interest expense paid during such calendar month, minus (d) amounts actually paid in cash in respect of production taxes
and total federal, state, local and foreign income, and similar taxes for such calendar month, minus (e) the aggregate amount
of all regularly scheduled principal payments or prepayments of Indebtedness made by Borrower and its Subsidiaries during such
calendar month, minus (f) to the extent permitted under Section 8.07, general and administrative expenses paid during
such calendar month.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 3

     

    

 

‘Excess
Cash Flow Report’ means a report, in form and substance satisfactory to Administrative Agent, certified by a Responsible
Officer of Borrower setting forth, in reasonable detail, the calculation of Excess Cash Flow for the previous month and the basis
therefor.

 

‘Leverage
Ratio’ means, with respect to Borrower and its Subsidiaries on a consolidated basis determined in accordance with
GAAP, as of any applicable date and for any applicable period of determination thereof, the ratio of (a) Total Funded Debt on such
date, to (b) EBITDAX for such period.

 

‘Liquidity’
means, with respect to Borrower and its Subsidiaries on a consolidated basis as of any applicable date of determination thereof,
the sum of (a) unrestricted cash and Cash Equivalents, plus (b) the Available Commitment.

 

‘Oasis’
means Oasis Petroleum North America LLC, a Delaware limited liability company, and its successors and assigns and any future holder
of the Oasis Note.

 

‘Oasis
Acquisition Agreement’ means that certain Purchase and Sale Agreement, dated as of January 31, 2016, between Borrower
and Oasis, as the same has been or may be amended, restated, supplemented or otherwise modified from time to time.

 

‘Oasis
Note’ means that certain Secured Promissory Note, dated as of the Third Amendment Effective Date, executed and delivered
by Borrower to Oasis in the original principal amount of $4,000,000, as the same may be amended, restated, supplemented or otherwise
modified from time to time in accordance with this Agreement.

 

‘Oasis
Subordination Agreement’ means that certain Subordination and Intercreditor Agreement, dated as of the Third Amendment
Effective Date, among Administrative Agent, Borrower, and Oasis, as amended, restated, supplemented or otherwise modified from
time to time.

 

‘Senior
Funded Debt’ means, as of any date of determination thereof, with respect to Borrower and its Subsidiaries on a consolidated
basis and without duplication, all outstanding liabilities for borrowed money and other interest-bearing liabilities, including
current and long term liabilities owed to Lenders but excluding Indebtedness evidenced by the Oasis Note.

 

‘Senior
Leverage Ratio’ means, with respect to Borrower and its Subsidiaries on a consolidated basis determined in accordance
with GAAP, as of any applicable date and for any applicable period of determination thereof, the ratio of (a) Senior Funded Debt
on such date, to (b) EBITDAX for such period.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 4

     

    

 

‘Third
Amendment’ means that certain Third Amendment to Credit Agreement, dated as of the Third Amendment Effective Date,
among Borrower, the Lenders party thereto, and Administrative Agent.

 

‘Third
Amendment Effective Date’ means March 31, 2016.

 

‘Total
Funded Debt’ means, as of any date of determination thereof, with respect to Borrower and its Subsidiaries on a consolidated
basis and without duplication, all outstanding liabilities for borrowed money and other interest-bearing liabilities, including
current and long term liabilities owed to Lenders.

 

‘Trailing
Period Basis’ shall mean, with respect to the computation of any amount or ratio as of any date of determination
(such date referred to herein as the ‘Test Date’), (a) if the Test Date occurs during the period beginning
April 30, 2016 through and including March 31, 2017, a calculation based on the period beginning April 1, 2016 through and including
the Test Date, divided by the number of calendar months within such period, multiplied by 12, and (b) if the Test Date occurs after
March 31, 2017, such amount or ratio shall be calculated based on the 12-month period most recently ended.”

 

(c)Section
2.04(b) of the Original Credit Agreement shall be amended and restated to read in its entirety as follows:

 

“(b)If
for any reason (including without limitation those arising from the Borrowing Base Reduction (as defined in the Third Amendment)
or a reduction of the Borrowing Base described in Section 4.05) the Total Outstandings at any time exceed the total Commitments
then in effect, Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal
to such excess; provided, however, that Borrower shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 2.04(b) unless there remains any such excess after the prepayment in full of the Loans; and provided
further, however, that the provisions of Section 4.06 shall control in the event that the reason for such excess
is due to the redetermination of the Borrowing Base pursuant to Section 4.02 or Section 4.03.”

 

(d)Section
2.04 of the Original Credit Agreement shall be amended to add a new Section 2.04(d) thereto to read in its entirety as follows:

 

“(d)On
the fifteenth day of each calendar month, Borrower shall prepay the Loans in an amount equal to 50% of Excess Cash Flow for the
previous calendar month, as reflected in the Excess Cash Flow Report. To effectuate the payment required under this Section
2.04(d), Mutual of Omaha, as the depository bank, shall, and Borrower hereby authorizes Mutual of Omaha to, initiate debit
entries to any and all accounts held by Borrower or any Subsidiary thereof with Mutual of Omaha and to debit such payment amount
from such accounts. This authorization to initiate debit entries shall remain in full force and effect until Administrative Agent
terminates such arrangement. Borrower represents that Borrower or a Subsidiary thereof, or any one or more of them, is and will
be the owner(s) of all funds in such accounts. Borrower, for itself and its Subsidiaries, acknowledges that (i) such debit entries
may cause an overdraft of such accounts which may result in Mutual of Omaha’s refusal to honor items drawn on such accounts
until adequate deposits are made to such account, and (ii) if a debit is not made the payment may be late or past due.”

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 5

     

    

 

(e)The
first sentence in Section 4.03 of the Original Credit Agreement shall be amended to read in its entirety as follows:

 

“Special determinations
of the Borrowing Base may be requested by Borrower not more than one time per calendar year or by Administrative Agent at the direction
of Lenders not more than two times per calendar year.”

 

(f)Article
V of the Original Credit Agreement shall be amended to add a new Section 5.03 thereto to read in its entirety as follows:

 

“5.03.
Additional Conditions to Credit Extensions after the Third Amendment Effective Date. The obligation of each Lender to
honor any Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type, or a
continuation of Eurodollar Rate Loans) at any time after the Third Amendment Effective Date is further subject to the condition
precedent that after giving effect to the Credit Extension so requested, Borrower shall have Liquidity of at least (a) during the
period from the Third Amendment Effective Date to December 30, 2016, $1,500,000, and (b) on December 31, 2016 and thereafter, $2,500,000,
in each case as reflected in the most recent financial statements of Borrower delivered to Administrative Agent pursuant to Section
7.01(b).”

 

(g)Section
7.01(b) of the Original Credit Agreement shall be amended and restated to read in its entirety as follows:

 

“(b)as
soon as available, but in any event within thirty (30) days after the end of each calendar month (commencing with the calendar
month ended March 31, 2016), (i) (A) a consolidated balance sheet of Parent, Borrower and its Subsidiaries as at the end of such
calendar month, and the related consolidated statements of income or operations, shareholders' equity and cash flows for such calendar
month and for the portion of the fiscal year then ended, or (B) if Parent owns any Material Non-Cash Assets and Administrative
Agent so requires in its sole discretion, a consolidated balance sheet of Borrower and its Subsidiaries as at the end of such calendar
month, and the related consolidated statements of income or operations, shareholders' equity and cash flows for such calendar month
and for the portion of the fiscal year then ended, and (ii) if any Material Domestic Subsidiary exists, a consolidating balance
sheet of Borrower and its Material Domestic Subsidiaries as at the end of such calendar month, and the related consolidating statements
of income or operations, shareholders' equity and cash flows for such calendar month and for the portion of the fiscal year then
ended, in each case, all in reasonable detail, such consolidated statements delivered pursuant to clause (i) above to be
certified by a Responsible Officer of Borrower as fairly presenting the financial condition, results of operations, shareholders'
equity and cash flows of Parent (if applicable), Borrower and its Subsidiaries in accordance with GAAP, subject only to normal
year-end audit adjustments and the absence of footnotes and such consolidating statements delivered pursuant to clause (ii)
above, if applicable, to be certified by a Responsible Officer of Borrower to the effect that such statements are fairly stated
in all material respects when considered in relation to the consolidated financial statements of Borrower and its Subsidiaries.”

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 6

     

    

 

(h)Section
7.02(d) of the Original Credit Agreement shall be amended by deleting the phrase “forty-five (45) days” therein and
inserting the phrase “thirty (30) days” in lieu thereof.

 

(i)Section
7.02 of the Original Credit Agreement shall be amended by (i) deleting the word “and” at the end of clause (k) thereof,
(ii) renumbering clause (l) as clause (n), and (iii) adding a new clause (l) and clause (m) thereto to read in their entirety as
follows:

 

“(l)within
thirty (30) days after the end of each calendar month, a report setting forth all accounts payable of Borrower as of the end of
such calendar month, such report to show the age of such accounts and such other information as Administrative Agent shall reasonably
request;

 

(m)within
fifteen (15) days after the end of each calendar month, an Excess Cash Flow Report; and”

 

(j)Section
7.12 of the Original Credit Agreement shall be amended and restated to read in its entirety as follows:

 

7.12.Financial
Covenants.

 

(a)Current
Ratio. Maintain on a consolidated basis, as of the end of each fiscal quarter of Borrower, a Current Ratio of at least 1.00
to 1.00.

 

(b)Leverage
Ratio. Maintain a Leverage Ratio, for any Test Period ending during the following periods, commencing with the Test Period
ending March 31, 2016, of not greater than the amount set forth below during the corresponding period below:

 

	Test Period Ending	Maximum Ratio
	March 31, 2016 through September 30, 2016	5.75 to 1.00
	December 31, 2016	5.00 to 1.00
	March 31, 2017 through June 30, 2017	4.75 to 1.00
	September 30, 2017 and thereafter	4.00 to 1.00

 

(c)Senior
Leverage Ratio. Maintain a Senior Leverage Ratio, for any Test Period ending during the following periods, commencing with
the Test Period ending March 31, 2016, of not greater than the amount set forth below during the corresponding period below:

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 7

     

    

 

	Test Period Ending	Maximum Ratio
	March 31, 2016 through June 30, 2016	4.25 to 1.00
	September 30, 2016	4.00 to 1.00
	December 31, 2016 and thereafter	3.75 to 1.00

 

(d)Interest
Coverage Ratio. Maintain on a consolidated basis an Interest Coverage Ratio of at least 2.50 to 1.00. This ratio shall be calculated
at the end of each Test Period.

 

(e)Minimum
Liquidity. Maintain a minimum Liquidity, as of the end of each calendar month, of not less than (i) for the period commencing
with the calendar month ending June 30, 2016 through December 30, 2016, $1,500,000 and (ii) for the calendar month ending December
31, 2016 and each calendar month thereafter, $2,500,000.

 

(k)Article
VII of the Original Credit Agreement shall be amended by adding a new Section 7.22 and Section 7.23 thereto to read in their entirety
as follows:

 

“7.22.Required
Swap Contracts. Within 5 Business Days of the Third Amendment Effective Date, enter into and thereafter maintain at all
times Swap Contracts entered into for the purpose and effect of fixing prices on oil or gas expected, as of any day, to be produced
(a) which are for combined durations of not less than twenty-four (24) months, (b) in which the aggregate monthly production covered
by all such contracts (determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable
to Administrative Agent) for any single month does not in the aggregate equal an amount which is less than 75% of the aggregate
Projected Oil and Gas Production anticipated to be sold in the ordinary course of business for such month, and (c) which otherwise
comply with Section 8.09(a) and are otherwise on terms acceptable to Administrative Agent in its sole discretion.

 

7.23Capital
Transactions.

 

(a)On
or before August 31, 2016, Borrower shall deliver to Administrative Agent a true and correct copy of Borrower’s prospectus
or comparable disclosure document for an Equity Transaction.

 

(b)On
or before September 30, 2016, Borrower shall have received aggregate net cash proceeds of not less than $5,000,000 from an Equity
Transaction.”

 

(l)Section
8.01 of the Original Credit Agreement shall be amended by (i) deleting the word “and” at the end of clause (n) thereof,
(ii) adding the word “and” at the end of clause (o) thereof, and (iii) adding a new clause (p) thereto to read in its
entirety as follows:

 

“(p)Liens
securing the Oasis Note; provided, that (i) such Liens securing such Indebtedness are subordinate to the Liens securing
the Obligations, this Agreement and the other Loan Documents pursuant to the Oasis Subordination Agreement, and (ii) such Liens
do not encumber any property of Borrower or any Subsidiary other than the properties acquired under the Oasis Acquisition Agreement;”

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 8

     

    

 

(m)Section
8.03 of the Original Credit Agreement shall be amended by (i) deleting the word “and” at the end of clause (f) thereof,
(ii) deleting the period at the end of clause (g) thereof and inserting “; and” in lieu thereof, and (iii) adding a
new clause (h) thereto to read in its entirety as follows:

 

“(h)Indebtedness
owed to Oasis under the Oasis Note so long as the aggregate amount thereof does not exceed $4,000,000, plus accrued but unpaid
interest in accordance with the Oasis Note as in effect on the Third Amendment Effective Date; provided, however, that such
Indebtedness is subordinate to the Obligations under this Agreement and the other Loan Documents pursuant to the Oasis Subordination
Agreement.”

 

(n)Section
8.07 of the Original Credit Agreement shall be amended and restated to read in its entirety as follows:

 

“8.07.Limitation
on General and Administrative Expenses. Permit Borrower's general and administrative expenses for the operation of all
of its oil and gas properties (either direct or payable to outside operators or agents) as determined in accordance with GAAP and
Council of Petroleum Accountants Societies procedures, and all salaries, bonuses, withdrawals, distributions, consulting and professional
fees and other forms of compensation, and all other overhead, to exceed $3,000,000 in the aggregate in any 12-month period. For
purposes of this Section 8.07, general and administrative expenses shall be calculated on a Trailing Period Basis.”

 

(o)Section
8.12 of the Original Credit Agreement shall be amended and restated to read in its entirety as follows:

 

“8.12.Burdensome
Agreements. Enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that (a) limits
the ability (i) of any Subsidiary to make Restricted Payments to Borrower or any Guarantor or to otherwise transfer property to
Borrower or any Guarantor, (ii) of any Subsidiary to Guarantee the Indebtedness of Borrower or (iii) of Borrower or any Subsidiary
to create, incur, assume or suffer to exist Liens on property of such Person; or (b) requires the grant of a Lien to secure an
obligation of such Person if a Lien is granted to secure another obligation of such Person; provided, however, that
the foregoing clause (a)(iii) shall not prohibit any negative pledge incurred or provided (x) in favor of any holder of
Indebtedness permitted under Section 8.03(g) solely to the extent any such negative pledge relates to the property financed
by or the subject of such Indebtedness or (y) in favor of Oasis solely to the extent any such negative pledge relates to the property
acquired pursuant to the Oasis Acquisition Agreement and does not prohibit the grant of a Lien in favor of Administrative Agent.”

 

(p)Article
VIII of the Original Credit Agreement shall be amended by adding a new Section 8.18 thereto to read in its entirety as follows:

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 9

     

    

 

“8.18.Payment
of Principal or Interest or Amendment of Subordinated Debt.

 

(a)Make
or offer to make any optional or voluntary redemption of or otherwise optionally or voluntarily redeem (whether in whole or in
part), or make any principal or interest payment on, any Indebtedness evidenced by the Oasis Note, except as permitted under the
Oasis Subordination Agreement and except that, so long as no Default or Event of Default exists or would result therefrom, Borrower
may make optional prepayments of the Indebtedness under the Oasis Note; or

 

(b)Amend,
modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms
of any document evidencing or executed in connection with the Indebtedness evidenced by the Oasis Note unless permitted pursuant
to the terms of the Oasis Subordination Agreement.”

 

(q)Section
9.01 of the Original Credit Agreement is hereby amended by (i) deleting the word “or” at the end of clause (k) thereof,
(ii) deleting the period after the end of clause (l) thereof and inserting “; or” in lieu thereof, and (iii) adding
a new clause (m) thereto to read in its entirety as follows:

 

“(m)Oasis
Subordination Agreement. The Oasis Subordination Agreement 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 its terms against Borrower,
any other party thereto (other than Administrative Agent) or the holder of the Indebtedness subordinated thereby or shall be repudiated
by any of them, or cause the payment of the Indebtedness under the Oasis Note to be senior or pari passu in right to the payment
of the Obligations under this Agreement, or any payment is made by Borrower or any other Loan Party in violation of the terms of
the Oasis Subordination Agreement.”

 

(r)Schedule 2.01
attached to the Original Credit Agreement is hereby replaced with Schedule 2.01 attached to this Amendment. 

 

(s)Exhibit
C attached to the Original Credit Agreement is hereby replaced with Exhibit C attached to this Amendment.

 

3.Borrowing
Base.

 

(a)As
of the Effective Date, the Borrowing Base is hereby increased to $30,500,000, and the Monthly Reduction Amount is hereby reaffirmed
at $0.

 

(b)The
Borrowing Base shall automatically reduce to $20,500,000 on June 30, 2016 (the “Borrowing Base Reduction”);
provided that the Borrowing Base Reduction shall not count against the number of special determinations permitted under
Section 4.03 of the Credit Agreement; and provided further that the Borrowing Base Reduction shall be in addition to the scheduled
redeterminations of the Borrowing Base pursuant to Section 4.02 of the Credit Agreement, regardless of whether any scheduled redetermination
occurs prior to, concurrently with or after the Borrowing Base Reduction.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 10

     

    

 

(c)For
the avoidance of doubt, the parties hereto agree that the increase of the Borrowing Base pursuant to Section 3(a) hereof
shall constitute the April 30, 2016 scheduled redetermination of the Borrowing Base pursuant to Section 4.02 of the Credit Agreement.

 

(d)The
Borrowing Base, as increased, and the Monthly Reduction Amount, as reaffirmed, will remain in effect until next adjusted but pursuant
to the provisions of Article IV of the Original Credit Agreement.

 

4.Conditions
Precedent. The obligations, agreements and waivers of Lenders as set forth in this Amendment are subject to the satisfaction
(in the opinion of Administrative Agent), unless waived in writing by Administrative Agent, of each of the following conditions
(and upon such satisfaction, this Amendment shall be deemed to be effective as of the Effective Date):

 

(a)Third
Amendment to Credit Agreement. This Amendment shall be in full force and effect.

 

(b)Oasis
Acquisition Documents. Administrative Agent shall have received (i) a true and complete executed copy of the Oasis Acquisition
Agreement and each of the other acquisition documents for such transaction (the “Oasis Acquisition Documents”);
(ii) original counterparts or copies, certified as true and complete, of the assignments, deeds and leases for all of the properties
subject to the Oasis Acquisition Documents; and (iii) such other related documents and information as Administrative Agent shall
have reasonably requested with respect to the transaction contemplated by the Oasis Acquisition Documents.

 

(c)Acquisition
Certificate. Administrative Agent shall have received a certificate of Borrower certifying (i) that Borrower is concurrently
consummating the acquisition contemplated by the Oasis Acquisition Documents and all material conditions precedent thereto have
been satisfied in all material respects by all of the parties thereto; (ii) as to the amount of the final purchase price for the
properties subject to the Oasis Acquisition Documents after giving effect to all adjustments as of the closing date as contemplated
by the Oasis Acquisition Documents and specifying, by category, the amount of such adjustment; (iii) that attached thereto is a
true and complete list of all of the properties subject to the Oasis Acquisition Documents which are being acquired by Borrower;
(iv) that attached thereto is a true and complete list of properties subject to the Oasis Acquisition Documents which have been
excluded from the acquisition pursuant to the terms of the Oasis Acquisition Documents, specifying with respect thereto the basis
of exclusion as (1) title defect, (2) preferential purchase right, (3) environmental, (4) casualty loss, or (5) other (which is
to be explained); (v) that attached thereto is a true and complete list of all properties subject to the Oasis Acquisition Documents
for which any seller has elected to cure a title defect, specifying the nature of that title defect and the time frame within which
it is expected to be cured; (vi) that attached thereto is a true and complete list of all properties subject to the Oasis Acquisition
Documents for which any seller has elected to remediate an adverse environmental condition; and (vii) that attached thereto is
a true and complete list of all properties subject to the Oasis Acquisition Documents which are currently pending final decision
by a third party regarding purchase of such property in accordance with any preferential right.

 

(d)Oil
and Gas Mortgages. Borrower shall have mortgaged to Administrative Agent for the ratable benefit of the Secured Parties
the properties acquired by the Oasis Acquisition Documents pursuant to the terms of one or more Oil and Gas Mortgages. In connection
therewith, Administrative Agent shall have received evidence satisfactory to it that all Liens against such properties have been
released or terminated and that arrangements satisfactory to Administrative Agent have been made for recording and filing of such
releases. In addition, if requested by Administrative Agent, Borrower shall have provided Administrative Agent with a Property
Certificate and a Reconciliation Schedule with respect to the properties being acquired by the Oasis Acquisition Documents.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 11

     

    

 

(e)Title
Information. Borrower shall have delivered to Administrative Agent title information and data reasonably acceptable to
Administrative Agent relating to title to the Mineral Interests in the properties being acquired pursuant to the Oasis Acquisition
Documents. These title assurances shall include a Title Indemnity Agreement, and such post-closing title work, if any, as Administrative
Agent may request.

 

(f)Oasis
Subordination Agreement. The Oasis Subordination Agreement shall have been duly executed by each of the parties thereto,
and shall be in full force and effect.

 

(g)Legal
Opinion. Administrative Agent shall have received an opinion of counsel to Borrower acceptable to Administrative Agent,
addressed to Administrative Agent and each Lender, as to the matters set forth in Exhibit E to the Original Credit Agreement and
such other matters concerning Borrower, this Amendment, and the other Loan Documents as Administrative Agent may request and in
form and substance satisfactory to Administrative Agent.

 

(h)Authorization
Certificate. Borrower shall have executed and delivered to Administrative Agent a certificate (the “Authorization
Certificate”), in form and substance satisfactory to Administrative Agent, authorizing the execution, delivery and
performance by Borrower of the Modification Papers.

 

(i)Borrowing
Base Increase Fee. Borrower shall have paid to Administrative Agent a fee of $115,000.

 

(j)Fees
and Expenses. Administrative Agent shall have received payment of all out-of-pocket fees and expenses (including reasonable
attorneys’ fees and expenses) incurred by Administrative Agent in connection with the preparation, negotiation and execution
of the Modification Papers.

 

5.Release.
To induce the Administrative Agent and the Lenders to enter into this Amendment, each of Borrower and Guarantors warrants and represents
that as of the Effective Date, there are no claims or offsets or defenses or counterclaims to the obligations of such Person under
the Loan Documents to which such Person is a party, and in accordance therewith, each of Borrower and Guarantors:

 

(a)Waives
any and all such claims, offsets, defenses or counterclaims, whether known or unknown, arising under the Loan Documents prior to
the Effective Date; and

 

(b)Releases
and discharges the Administrative Agent and the Lenders and their officers, directors, employees, agents, shareholders, affiliates
and attorneys (the “Released Parties”) from any and all obligations, indebtedness, liabilities, claims,
rights, causes of action or other demands whatsoever, whether known or unknown, suspected or unsuspected, in law or equity, which
such Person ever had, now have or claim to have or may have against any Released Parties arising prior to the Effective Date and
from or in connection with the Loan Documents or the transactions contemplated thereby, except those resulting from the gross negligence
or willful misconduct of the Released Parties.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 12

     

    

 

6.Certain
Representations. Each of Borrower and Guarantors represents and warrants that, as of the Effective Date: (a) each
Loan Party has full power and authority to execute the Modification Papers to which it is a party and such Modification Papers
constitute the legal, valid and binding obligation of such Loan Party enforceable in accordance with their terms, except as enforceability
may be limited by general principles of equity and applicable bankruptcy, insolvency, reorganization, moratorium, and other similar
laws affecting the enforcement of creditors’ rights generally; and (b) no authorization, approval, consent or other
action by, notice to, or filing with, any Governmental Authority or other Person is required for the execution, delivery and performance
by each Loan Party thereof. In addition, each of Borrower and Guarantors represents that after giving effect to this Amendment
all representations and warranties contained in the Original Credit Agreement and the other Loan Documents to which such Person
is a party are true and correct in all material respects (provided that any such representations or warranties that are, by their
terms, are requalified by reference to materiality shall be true and correct without regard to such materiality standard) on and
as of the Effective Date as if made on and as of such date except to the extent that any such representation or warranty expressly
relates solely to an earlier date, in which case such representation or warranty is true and correct in all material respects (or
true and correct without regard to such materiality standard, as applicable) as of such earlier date.

 

7.No Further
Amendments. Except as previously amended in writing or as amended hereby, the Original Credit Agreement shall remain unchanged
and all provisions shall remain fully effective between the parties hereto.

 

8.Acknowledgments
and Agreements. Each of Borrower and Guarantors (a) acknowledges that on the date hereof all outstanding Obligations are
payable in accordance with their terms, and (b) waives any defense, offset, counterclaim or recoupment with respect thereto. Borrower,
Guarantors, Administrative Agent, L/C Issuer and each Lender do hereby adopt, ratify and confirm the Original Credit Agreement,
as previously amended in writing and as amended hereby, and acknowledge and agree that the Original Credit Agreement, as previously
amended in writing and as amended hereby, is and remains in full force and effect. Each of Borrower and Guarantors acknowledges
and agrees that its liabilities and obligations under the Original Credit Agreement, as previously amended in writing and as amended
hereby, and under the other Loan Documents, are not impaired in any respect by this Amendment. Any breach of any representations,
warranties and covenants under this Amendment shall be Default or an Event of Default, as applicable, under the Original Credit
Agreement.

 

9.Limitation
on Agreements. The modifications set forth herein are limited precisely as written and shall not be deemed (a) to
be a consent under or a waiver of or an amendment to any other term or condition in the Original Credit Agreement or any of the
Loan Documents, or (b) to prejudice any right or rights that Administrative Agent now has or may have in the future under
or in connection with the Original Credit Agreement and the other Loan Documents, each as amended hereby, or any of the other documents
referred to herein or therein. The Modification Papers shall constitute Loan Documents for all purposes.

 

10.Confirmation
of Security. Each of Borrower and Guarantors hereby confirms and agrees that all of the Collateral Documents that presently
secure the Obligations shall continue to secure, in the same manner and to the same extent provided therein, the payment and performance
of the Obligations as described in the Original Credit Agreement as modified by this Amendment.

 

11.Counterparts.
This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original,
but all of which constitute one instrument. In making proof of this Amendment, it shall not be necessary to produce or account
for more than one counterpart thereof signed by each of the parties hereto. Delivery of an executed counterpart of this Amendment
by facsimile or other electronic means shall be deemed effective as delivery of a manually executed counterpart.

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 13

     

    

 

12.Incorporation
of Certain Provisions by Reference. The provisions of Section 11.15 of the Original Credit Agreement captioned
“Governing Law, Jurisdiction; Etc.” and Section 11.16 of the Original Credit Agreement captioned “Waiver
of Right to Trial by Jury” are incorporated herein by reference for all purposes.

 

13.Entirety,
Etc. This Amendment and the other Modification Papers and all of the other Loan Documents embody the entire agreement between
the parties. THIS AMENDMENT AND ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
AMONG THE PARTIES.

 

 

[This space is left intentionally
blank. Signature pages follow.]

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Page 14

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment to be effective as of the date and year first above written.

 

	 	BORROWER:
	 	 
	 	SAMSON OIL AND GAS USA, INC.
	 	 
	 	 
	 	By:	/s/ Robyn Lamont
	 	 	Robyn Lamont
	 	 	Vice President and Chief Financial Officer
	 	 	 

 

	 	GUARANTORS:
	 	 
	 	SAMSON OIL & GAS LIMITED
	 	 
	 	 
	 	By:	/s/ Robyn Lamont
	 	 	Robyn Lamont
	 	 	Chief Financial Officer
	 	 	 

 

	 	SAMSON OIL AND GAS USA MONTANA, INC.
	 	 
	 	 
	 	By:	/s/ Robyn Lamont
	 	 	Robyn Lamont
	 	 	Vice President and Chief Financial Officer
	 	 	 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Signature Page

     

    

 

 

	 	ADMINISTRATIVE AGENT:
	 	 
	 	MUTUAL OF OMAHA BANK,
	 	as Administrative Agent
	 	 
	 	 
	 	By:	/s/ Keith Miller
	 	Name:	Keith Miller
	 	Title:	Senior Energy Lender
	 	 	 

 

	 	LENDERS:
	 	 
	 	MUTUAL OF OMAHA BANK
	 	 
	 	 
	 	By:	/s/ Keith Miller
	 	Name:	Keith Miller
	 	Title:	Senior Energy Lender
	 	 	 

 

 

    	THIRD AMENDMENT TO CREDIT AGREEMENT– Signature Page

     

    

 

SCHEDULE 2.01

APPLICABLE PERCENTAGES, MAXIMUM CREDIT AMOUNTS,

and ALLOCATIONS OF INITIAL BORROWING BASE

 

	Lender	Applicable 

Percentage	Maximum Credit 

Amount	Allocation of 

Borrowing Base
	Mutual of Omaha Bank	100.000000000%	$50,000,000	$30,500,000
	 	 	 	 
	Total	100.000000000%	$50,000,000	$30,500,000

 

 

    	SCHEDULE 2.01 – Solo Page

     

    

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date: __________, 201__

 

To:Mutual of Omaha Bank, as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to
that certain Credit Agreement, dated as of January 27, 2014 (as amended, restated, extended, supplemented or otherwise modified
in writing from time to time, the "Agreement"; the terms defined therein being used herein as therein defined),
among Samson Oil and Gas USA, Inc., a Colorado corporation ("Borrower"), the Lenders from time to time
party thereto, and Mutual of Omaha Bank, as Administrative Agent and L/C Issuer.

 

The undersigned Responsible
Officer hereby certifies as of the date hereof that he/she is the  of Borrower, and that, as such, he/she is authorized
to execute and deliver this Compliance Certificate (this "Certificate") to Administrative Agent on the
behalf of Borrower, and that:

 

[Use following paragraph 1 for fiscal
year-end financial statements]

 

1.Attached hereto
as Schedule 1 are the year-end audited financial statements required by Section 7.01(a) of the Agreement for
the fiscal year of Borrower ended as of the above date, together with the report and opinion of an independent certified public
accountant required by such section.

 

[Use following paragraph 1 for month-end
financial statements]

 

1.Attached hereto
as Schedule 1 are the unaudited financial statements required by Section 7.01(b) of the Agreement for the calendar
month ended as of the above date. Such financial statements fairly present the financial condition, results of operations and cash
flows of Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end
audit adjustments and the absence of footnotes.

 

2.The undersigned
has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision,
a detailed review of the transactions and condition (financial or otherwise) of Borrower during the accounting period covered by
the attached financial statements.

 

3.A review of the
activities of Borrower during such fiscal period has been made under the supervision of the undersigned with a view to determining
whether during such period Borrower performed and observed all its Obligations under the Loan Documents, and

 

[select one:]

 

[to the knowledge
of the undersigned during such period, Borrower performed and observed each covenant and condition of the Loan Documents applicable
to it, and no Default has occurred and is continuing.]

 

    	EXHIBIT C – Page 1

     

    

 

--or--

 

[the following covenants
or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

 

4.The representations
and warranties of Borrower contained in Article VI of the Agreement, and/or any representations and warranties of Borrower
or any other Loan Party that are contained in any of the Loan Documents, are true and correct on and as of the date hereof, except
to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Certificate, the representations and warranties contained in subsections (a),
(b) and (c) of Section 6.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 7.01 of the Agreement, including the statements in connection with which
this Certificate is delivered.

 

5.The financial
covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate on and as of the date
of this Certificate.

 

IN WITNESS WHEREOF,
the undersigned has executed this Certificate as of ___________________, 20___.

 

 

 

 

	 	SAMSON OIL AND GAS USA, INC.
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 

 

 

    	EXHIBIT C – Page 2

     

    

 

For the Month/Year
ended ___________________ ("Statement Date")

 

SCHEDULE 2

to the Compliance Certificate

($ in 000's)

 

	I.	Section 7.12(a) –
Current Ratio.1	 
	 	A.	Current Assets (including Borrowing Base availability, but excluding any non-cash mark-to-market value associated with Swap Contracts pursuant to ASC 815):	$                
	 	B.	Current Liabilities (excluding current maturities of the Obligations and any non-cash mark-to-market liability associated with Swap Contracts pursuant to ASC 815):	$                
	 	C.	Current Ratio (Line I.A ÷ Line I.B):	________ to 1.00
	 	Minimum Required:	1.00 to 1.00
	II.	Section 7.12(b) –
Leverage Ratio.2	 
	 	A.	Total Funded Debt (all
    outstanding liabilities for borrowed money 

plus other interest-bearing liabilities, including current and long-term
    liabilities):	$                
	 	B.	 	EBITDAX	 
	 	 	1.	net income:	$                
	 	 	2.	less non-cash revenue or expense associated with Swap Contracts from ASC 815:	($                )
	 	 	3.	less extraordinary or non-recurring gains and other extraordinary or non-recurring income:	($                )
	 	 	4.	plus consolidated interest expense:	$                
	 	 	5.	plus income taxes:	$                
	 	 	6.	plus depletion, depreciation and amortization:	$                
	 	 	7.	plus other non-cash charges	$                
	 	 	8.	plus exploration charges	$                
	 	 	9.	Total EBITDAX:	$                
	 	C.	Leverage Ratio (Line II.A ÷ Line II.B.9):	________ to 1.00

 

 

1
For quarterly Compliance Certificate.

2
For quarterly Compliance Certificate.

 

    	EXHIBIT C – Page 3

     

    

  

	 	Maximum Permitted:	 
	 	Test Period ending March 31, 2016 through September 30, 2016	5.75 to 1.00
	 	Test Period ending December 31, 2016	5.00 to 1.00
	 	Test Period ending March 31, 2017 through June 30, 2017	4.75 to 1.00
	 	Test Period ending September 30, 2017 and thereafter	4.00 to 1.00
	III.	Section 7.12(c) – Senior Leverage Ratio.3	 
	 	A.	Senior Funded Debt (all outstanding liabilities for borrowed money

plus other interest-bearing liabilities, including current and long-term liabilities, minus Indebtedness evidenced by the Oasis Note):	$                
	 	B.	EBITDAX (Line II.B.9 above):	$                
	 	C.	Senior Leverage Ratio (Line III.A ÷ Line III. B)	________ to 1.00
	 	Maximum Permitted:	 
	 	Test Period ending March 31, 2016 through June 30, 2016	4.25 to 1.00
	 	Test Period ending September 30, 2016	4.00 to 1.00
	 	Test Period ending December 31, 2016 and thereafter	3.75 to 1.00
	IV.	Section 7.12(d) –
Interest Coverage Ratio.4	 
	 	A.	EBITDAX (Line II.B.9 above):	$                
	 	B.	Cash interest expense:	$                
	 	C.	Interest Coverage Ratio (Line IV.A ÷ Line IV.B):	________ to 1.00
	 	Minimum Required:	2.50 to 1.00
	V.	Section 7.12(e) –
Liquidity.5	 
	 	A.	Unrestricted cash and Cash Equivalents:	$                
	 	B.	Available Commitment (Commitment, less Outstanding Amount of Loans and L/C Obligations):	$                
	 	C.	Liquidity (Line V.A. + Line V.B.):	$                
	 	Minimum Required:	 
	 	Calendar month ending June 30, 2016 through December 30, 2016:	$1,500,000
	 	Calendar month ending December 31, 2016 and thereafter	$2,500,000
	VI.	Section 8.07 – General
    and Administrative Expenses6	 
	 	A.	General and administrative expenses (calculated on a Trailing Period Basis):	$                
	 	Maximum Permitted:	$3,000,000

  

 

3
For quarterly Compliance Certificate.

4
For quarterly Compliance Certificate.

5
For monthly Compliance Certificate.

6
For monthly Compliance Certificate.

 

 

    	EXHIBIT C – Page 4

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