Document:

Exhibit 10.29

 

$175,000,000

American Eagle Energy Corporation

11% Senior Secured Notes due 2019

PURCHASE AGREEMENT

 

August 13, 2014

 

GMP Securities L.P.

As Representative of the several

   Initial Purchasers named in Schedule I attached hereto

c/o GMP Securities L.P.

331 Madison Avenue

New York, NY 10017

 

Ladies and Gentlemen:

 

American Eagle Energy
Corporation, a Nevada corporation (the “Company”), proposes, upon the terms and conditions set forth
in this agreement (this “Agreement”), to issue and sell to GMP Securities L.P. (“GMP”)
and the other several initial purchasers named in Schedule I hereto (the “Initial Purchasers”), for whom
GMP is acting as representative (in such capacity, the “Representative”), $175,000,000 in aggregate principal
amount of its 11% senior secured notes due 2019 (the “Notes”). The Notes (i) will have terms and provisions
that are summarized in the Pricing Disclosure Package and Offering Memorandum (as defined below), and (ii) are to be issued pursuant
to an Indenture (the “Indenture”) to be entered into among the Company, the Guarantor (as defined below),
U.S. Bank National Association, as trustee (the “Trustee”) and U.S. Bank National Association, as collateral
agent (in such capacity, the “Collateral Agent”). The Company’s obligations under the Notes, including
the due and punctual payment of interest on the Notes, will be irrevocably and unconditionally guaranteed (the “Guarantee”)
by AMZG, Inc. (the “Guarantor”). As used herein, the term “Notes” shall include the Guarantee,
unless the context otherwise requires. This Agreement is to confirm the agreement concerning the purchase of the Notes from the
Company by the Initial Purchasers.

 

The Company and the
Guarantor are referred to collectively herein as the “Company Parties” and, individually, as a “Company
Party.”

 

1.          Purchase
and Resale of the Notes. The Notes will be offered and sold to the Initial Purchasers without registration under the Securities
Act of 1933, as amended (the “Securities Act”), in reliance on an exemption pursuant to Section 4(a)(2)
under the Securities Act. The Company Parties have prepared a preliminary offering memorandum, dated August 4, 2014 (the “Preliminary
Offering Memorandum”), a pricing term sheet substantially in the form attached hereto as Schedule II (the “Pricing
Term Sheet”) setting forth the terms of the Notes omitted from the Preliminary Offering Memorandum and certain other
information and an offering memorandum, dated August 13, 2014 (the “Offering Memorandum”), setting forth
information regarding the Company, the Guarantor, the Notes, the Exchange Notes (as defined below), the Guarantee and the Exchange
Guarantee (as defined below). The Preliminary Offering Memorandum, as supplemented and amended as of the Applicable Time (as defined
below), together with the Pricing Term Sheet and any of the documents listed on Schedule III(A) hereto are collectively referred
to as the “Pricing Disclosure Package.” The Company Parties hereby confirm that they have authorized
the use of the Pricing Disclosure Package and the Offering Memorandum in connection with the offering and resale of the Notes by
the Initial Purchasers. “Applicable Time” means 5:10 p.m. (New York City time) on the date of this Agreement.

 

    	 

    	 

    

 

Any reference to the
Preliminary Offering Memorandum, the Pricing Disclosure Package or the Offering Memorandum shall be deemed to refer to and
include the Company’s most recent Annual Report on Form 10-K and all subsequent documents filed with the United States Securities
and Exchange Commission (the “Commission”) pursuant to Section 13(a), 13(c) or 15(d) of the United States
Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or prior to the date of the Preliminary
Offering Memorandum, the Pricing Disclosure Package or the Offering Memorandum, as the case may be. Any reference to the Preliminary
Offering Memorandum, Pricing Disclosure Package or the Offering Memorandum, as the case may be, as amended or supplemented,
as of any specified date, shall be deemed to include any documents filed with the Commission pursuant to Section 13(a), 13(c) or
15(d) of the Exchange Act after the date of the Preliminary Offering Memorandum, Pricing Disclosure Package or the Offering Memorandum,
as the case may be, and prior to such specified date. All documents filed under the Exchange Act and so deemed to be included in
the Preliminary Offering Memorandum, Pricing Disclosure Package or the Offering Memorandum, as the case may be, or any amendment
or supplement thereto are hereinafter called the “Exchange Act Reports.”

 

You have advised the
Company that you will offer and resell (the “Exempt Resales”) the Notes purchased by you hereunder on
the terms set forth in each of the Pricing Disclosure Package and the Offering Memorandum, as amended or supplemented, solely (i)
to persons whom you reasonably believe to be “qualified institutional buyers” as defined in Rule 144A under the Securities
Act (“QIBs”), and (ii) outside the United States to certain persons who are not U.S. Persons (as defined
in Regulation S under the Securities Act (“Regulation S”)) (such persons, “Non-U.S. Persons”)
in offshore transactions in reliance on Regulation S. As used herein, the terms “offshore transaction” and “United
States” have the meanings assigned to them in Regulation S. Those persons specified in clauses (i) and (ii) are referred
to herein as “Eligible Purchasers.”

 

Holders (including
subsequent transferees) of the Notes will have the registration rights set forth in the registration rights agreement having substantially
the terms described in the Pricing Disclosure Package (the “Registration Rights Agreement”) among the
Company Parties and the Initial Purchasers to be dated the Closing Date (as defined herein), for so long as such Notes constitute
Transfer Restricted Securities (as defined in the Registration Rights Agreement). Pursuant to the Registration Rights Agreement,
the Company Parties will agree to file with the Commission under the circumstances set forth therein, a registration statement
under the Securities Act relating to the Company’s 11% senior secured notes due 2019 (the “Exchange Notes”)
and the Guarantor’s Exchange Guarantee (the “Exchange Guarantee”) to be offered in exchange for
the Notes and the Guarantee. Such portion of the offering is referred to as the “Exchange Offer.”

 

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As described in the
Offering Memorandum and the Indenture, the Notes will be secured by the liens on certain of the assets of the Company Parties (the
“Collateral”), pursuant to (i) a Guaranty and Collateral Agreement (the “Guaranty and Collateral
Agreement”) that will be entered into as of the Closing Date among the Company Parties, the Trustee and the Collateral
Agent, (ii) mortgages encumbering the interests of the Company Parties in certain real property, to be made and delivered by the
Company Parties as of the Closing Date (the “Mortgages”), (iii) one or more account control agreements
that will be entered into among the Company Parties, the Collateral Agent, and the applicable financial institutions (the “Control
Agreements”), and (iv) any supplements or other instruments or documents or agreements entered into, made or delivered
in connection with any of the foregoing or to secure any additional Collateral, in each case as each of the foregoing may from
time to time be amended (collectively, with the documents and instruments in (i) through (iii) of this paragraph, the (“Collateral
Documents”)). To the extent the Company enters into a senior credit facility, as contemplated by the Preliminary
Offering Memorandum, the Company Parties, the Collateral Agent and the administrative agent under the senior credit facility will
enter into an intercreditor agreement (the “Intercreditor Agreement”).

 

2.            Representations,
Warranties and Agreements of the Company Parties. The Company Parties, jointly and severally, each represent, warrant and agree
as follows:

 

(a)          When
the Notes and the Guarantee are issued and delivered pursuant to this Agreement, such Notes and Guarantee will not be of the same
class (within the meaning of Rule 144A under the Securities Act) as securities of the Company Parties that are listed on a national
securities exchange registered under Section 6 of the Exchange Act or that are quoted in a United States automated inter-dealer
quotation system.

 

(b)          Assuming
the accuracy of your representations and warranties in Section 3(b), the purchase and resale of the Notes pursuant hereto (including
pursuant to the Exempt Resales) are exempt from the registration requirements of the Securities Act.

 

(c)          No
form of general solicitation or general advertising within the meaning of Regulation D under the Securities Act (including, but
not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium
or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation
or general advertising) was used by the Company Parties, any of their affiliates or any of their representatives (other than you,
as to whom the Company Parties make no representation) in connection with the offer and sale of the Notes.

 

(d)          No
directed selling efforts within the meaning of Rule 902 under the Securities Act were used by the Company, the Guarantor or any
of their representatives (other than you, as to whom the Company Parties make no representation) with respect to Notes sold outside
the United States to Non-U.S. Persons, and the Company, any affiliate of the Company and any person acting on its or their behalf
(other than you, as to whom the Company Parties make no representation) has complied with and will implement the “offering
restrictions” required by Rule 902 under the Securities Act.

 

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(e)          Each
of the Preliminary Offering Memorandum, the Pricing Disclosure Package and the Offering Memorandum, each as of (x) its respective
date (or in the case of the Pricing Disclosure Package, as of the Applicable Time) and (y) the Closing Date, contains all the information
specified in, and meeting the requirements of, Rule 144A(d)(4) under the Securities Act.

 

(f)          Neither
of the Company Parties nor any other person acting on behalf of a Company Party has sold or issued any securities that would be
integrated with the offering of the Notes contemplated by this Agreement pursuant to the Securities Act, the rules and regulations
thereunder or the interpretations thereof by the Commission.

 

(g)          The
Preliminary Offering Memorandum, the Pricing Disclosure Package and the Offering Memorandum have been prepared by the Company Parties
for use by the Initial Purchasers in connection with the Exempt Resales. No order or decree preventing or suspending the use of
the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Offering Memorandum, or any order asserting that the
transactions contemplated by this Agreement are subject to the registration requirements of the Securities Act has been issued,
and no proceeding for that purpose has commenced or is pending or, to the knowledge of the Company Parties, is contemplated.

 

(h)          The
Offering Memorandum will not, as of its date or as of the Closing Date, contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that no representation or warranty is made as to information contained in or omitted from the Offering
Memorandum in reliance upon and in conformity with written information furnished to the Company through the Representative by or
on behalf of any Initial Purchaser specifically for inclusion therein, which information is specified in Section 8(e).

 

(i)          The
Pricing Disclosure Package did not, as of the Applicable Time, contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that no representation or warranty is made as to information contained in or omitted from the Pricing
Disclosure Package in reliance upon and in conformity with written information furnished to the Company through the Representative
by or on behalf of any Initial Purchaser specifically for inclusion therein, which information is specified in Section 8(e).

 

(j)          The
Company has not made any offer to sell or solicitation of an offer to buy the Notes that would constitute a “free writing
prospectus” (if the offering of the Notes were made pursuant to a registered offering under the Securities Act), as defined
in Rule 433 under the Securities Act (a “Free Writing Offering Document”) without the prior consent of
the Representative; any such Free Writing Offering Document the use of which has been previously consented to by the Initial Purchasers
is listed on Schedule III.

 

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(k)          Each
Free Writing Offering Document listed in Schedule III(B) hereto, when taken together with the Pricing Disclosure Package, did not,
as of the Applicable Time, contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation
or warranty is made as to information contained in or omitted from such Free Writing Offering Document listed in Schedule III(B)
hereto in reliance upon and in conformity with written information furnished to the Company through the Representative by or on
behalf of any Initial Purchaser specifically for inclusion therein, which information is specified in Section 8(e).

 

(l)          The
Exchange Act Reports, when they were or are filed with the Commission, conformed or will conform in all material respects to the
applicable requirements of the Exchange Act and the applicable rules and regulations of the Commission thereunder. The Exchange
Act Reports did not and will not, when filed with the Commission, contain an untrue statement of material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

(m)          Each
of the Company Parties has been duly organized, is validly existing and in good standing as a corporation under the laws of its
jurisdiction of organization and is duly qualified to do business and in good standing as a foreign corporation in each jurisdiction
in which its ownership or lease of property or the conduct of its businesses requires such qualification, except where the failure
to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the condition (financial or otherwise), results of operations, stockholders’ equity, properties, business or prospects
of the Company and its subsidiaries taken as a whole (a “Material Adverse Effect”). Each of the Company
Parties has all power and authority necessary to own or hold its properties and to conduct the businesses in which it is engaged.
The Company does not own or control, directly or indirectly, any corporation, association or other entity other than the subsidiaries
listed in Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the most recent fiscal year. None of the subsidiaries
of the Company (other than the Guarantor) is a “significant subsidiary” (as defined in Rule 405 under the Securities
Act).

 

(n)          The
Company has an authorized capitalization as set forth in each of the Pricing Disclosure Package and the Offering Memorandum, and
all of the issued shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable.
Except as set forth in the Pledge and Security Agreement, dated as of August 19, 2013, among the Company, AMZG, Inc., AEE Canada,
Inc., EERG Energy ULC, and Morgan Stanley Capital Group Inc., all of the issued shares of capital stock or other ownership interest
of each subsidiary of the Company have been duly authorized and validly issued, are fully paid and non-assessable and are owned
directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or claims, except for such liens, encumbrances,
equities or claims as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(o)          Each
of the Company Parties has all requisite corporate power and authority to execute, deliver and perform its obligations under the
Indenture. The Indenture has been duly and validly authorized by each Company Party, and upon its execution and delivery, assuming
due authorization, execution and delivery by the Trustee and the Collateral Agent, will constitute the valid and binding agreement
of the Company Parties, enforceable against each Company Party in accordance with its terms, except as such enforceability may
be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, and other laws relating to or affecting
creditors’ rights generally and by general equitable principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law)(collectively, the “Enforceability Exceptions”). The Indenture will
comply in all material respects with the requirements of the Trust Indenture Act of 1939 (the “Trust Indenture Act”).
The Indenture will conform in all material respects to the description thereof in each of the Pricing Disclosure Package and the
Offering Memorandum.

 

(p)          The
Company has all requisite corporate power and authority to execute, issue, sell and perform its obligations under the Notes. The
Notes have been duly authorized by the Company and, when duly executed by the Company in accordance with the terms of the Indenture,
assuming due authentication of the Notes by the Trustee, upon delivery to the Initial Purchasers against payment therefor in accordance
with the terms hereof, will be validly issued and delivered and will constitute valid and binding obligations of the Company entitled
to the benefits of the Indenture, enforceable against the Company in accordance with their terms, subject to the Enforceability
Exceptions. The Notes will conform in all material respects to the description thereof in each of the Pricing Disclosure Package
and the Offering Memorandum.

 

(q)          The
Company has all requisite corporate power and authority to execute, issue and perform its obligations under the Exchange Notes.
The Exchange Notes have been duly and validly authorized by the Company and, if and when issued and authenticated in accordance
with the terms of the Indenture and delivered in accordance with the Exchange Offer provided for in the Registration Rights Agreement,
will be validly issued and delivered and will constitute valid and binding obligations of the Company entitled to the benefits
of the Indenture, enforceable against the Company in accordance with their terms, subject to the Enforceability Exceptions.

 

(r)          The
Guarantor has all requisite corporate power and authority to execute, issue and perform its obligations under the Guarantee. The
Guarantee has been duly and validly authorized by the Guarantor, and when the Indenture is duly executed and delivered by the Guarantor
in accordance with its terms and upon the due execution, authentication and delivery of the Notes in accordance with the Indenture
and the issuance of the Notes in the sale to the Initial Purchasers contemplated by this Agreement, will constitute valid and binding
obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms, subject to the Enforceability Exceptions.
The Guarantee will conform in all material respects to the description thereof in each of the Pricing Disclosure Package and the
Offering Memorandum.

 

(s)          The
Guarantor has all requisite corporate power and authority to execute, issue and perform its obligations under the Exchange Guarantee.
The Exchange Guarantee has been duly and validly authorized by the Guarantor, and if and when executed and delivered by the Guarantor
in accordance with the terms of the Indenture and upon the due execution and authentication of the Exchange Notes in accordance
with the Indenture and the issuance and delivery of the Exchange Notes in the Exchange Offer contemplated by the Registration Rights
Agreement, will be validly issued and delivered and will constitute valid and binding obligation of the Guarantor, enforceable
against the Guarantor in accordance with its terms, subject to the Enforceability Exceptions.

 

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(t)          The
Company Parties have all requisite corporate power and authority to execute, deliver and perform their respective obligations under
the Registration Rights Agreement. The Registration Rights Agreement has been duly and validly authorized by each Company Party
and, when executed and delivered by the Company Parties in accordance with the terms hereof and thereof, will be validly executed
and delivered and (assuming the due authorization, execution and delivery thereof by you) will be the legally valid and binding
obligation of the Company Parties, enforceable against the Company Parties in accordance with its terms, subject to the Enforceability
Exceptions and, as to rights of indemnification and contribution, by principles of public policy. The Registration Rights Agreement
will conform in all material respects to the description thereof in each of the Pricing Disclosure Package and the Offering Memorandum.

 

(u)          The
Company Parties have all requisite corporate power and authority to execute, deliver and perform their respective obligations under
the Intercreditor Agreement, in the case of the Company, and each of the Collateral Documents to which they are party. Each of
the Collateral Documents has been duly authorized by each of the Company Parties, and the Intercreditor Agreement has been duly
authorized by the Company, and when executed by each Company Party, as applicable, and delivered by such Company Party, and assuming
due authorization, execution and delivery thereof by the other parties thereto, will constitute a valid and binding obligation
of such Company Party, enforceable against such Company Party in accordance with its terms, and, upon delivery of the applicable
Collateral Documents to the Collateral Agent, is sufficient to create valid security interests in and liens on the Collateral,
enforceable in accordance with its terms, except as enforcement thereof may be limited by the Enforceability Exceptions. The Collateral
Documents and the Intercreditor Agreement will conform in all material respects to the descriptions thereof in the Offering Memorandum.

 

(v)         Upon
the filing of the appropriate UCC financing statements and the taking of other actions, in each case as further described in the
Collateral Documents and in Notes, the liens on the rights of the Company Parties in the Collateral will be valid and perfected
security interests in all Collateral that can be perfected by the filing of a UCC-1 financing statement under the UCC as in effect
in any jurisdiction and the liens will have the priority described in the Offering Memorandum subject in priority only to the Permitted
Prior Liens and, to the extent applicable at such time, any Priority Liens (as each such term is defined in the Indenture), subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors’ rights and to general equity principles. As of the Settlement Date, the filing of all necessary UCC
financing statements in the proper filing offices and other filings and actions contemplated by the Guaranty and Collateral Agreement,
will have been duly made or taken and will be in full force and effect, in each case, to the extent required by the Guaranty and
Collateral Agreement. As of the Settlement Date, the Collateral Agent shall have possession and control of all Collateral for which
the Collateral Documents require such possession or control as of the Settlement Date. Upon the due execution and delivery of the
Mortgages, each of the Mortgages will be effective to create a trust or mortgage lien, as applicable, in favor of the Collateral
Agent in all the right, title and interest of the Company Parties in the Mortgaged Property described therein, subject in priority
only to liens permitted by the Indenture, and each such Mortgage, upon recording, will constitute constructive notice to third
parties of the lien of such Mortgage and each of the trust or mortgage liens, as applicable, will have the priority described in
the Offering Memorandum subject only to the Permitted Prior Liens.

 

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(w)          The
Company Parties have all requisite corporate power and authority to execute, deliver and perform their respective obligations under
this Agreement. This Agreement has been duly and validly authorized, executed and delivered by the Company Parties.

 

(x)          The
issue and sale of the Notes and the Guarantee, the execution, delivery and performance by the Company Parties of the Notes, the
Guarantee, the Exchange Notes, the Exchange Guarantee, the Indenture, the Registration Rights Agreement and this Agreement, the
application of the proceeds from the sale of the Notes as described under “Use of Proceeds” in each of the Pricing
Disclosure Package and the Offering Memorandum and the consummation of the transactions contemplated hereby and thereby, will not
(i) conflict with or result in a breach or violation of any of the terms or provisions of, impose any lien, charge or encumbrance
upon any property or assets of the Company or any of its subsidiaries (other than those created pursuant to the Indenture), or
constitute a default under, any indenture, mortgage, deed of trust, loan agreement, license, lease or other agreement or instrument
to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which
any of the property or assets of the Company or any of its subsidiaries is subject, (ii) result in any violation of the provisions
of the charter or by-laws (or similar organizational documents) of the Company or any of its subsidiaries, or (iii) result in any
violation of any statute or any judgment, order, decree, rule or regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their properties or assets.

 

(y)          No
consent, approval, authorization or order of, or filing, registration or qualification with any court or governmental agency or
body having jurisdiction over the Company or any of its subsidiaries or any of their properties or assets is required for the issue
and sale of the Notes and the Guarantee, the execution, delivery and performance by the Company Parties of the Notes, the Guarantee,
the Exchange Notes, the Exchange Guarantee, the Indenture, the Registration Rights Agreement and this Agreement, the application
of the proceeds from the sale of the Notes as described under “Use of Proceeds” in each of the Pricing Disclosure Package
and the Offering Memorandum and the consummation of the transactions contemplated hereby and thereby, except for (i) such consents,
approvals, authorizations, orders, filings, registrations or qualifications as may be required under state securities or Blue Sky
laws in connection with the purchase and distribution of the Notes by the Initial Purchasers, each of which has been obtained and
is in full force and effect, and (ii) the filing of a registration statement by the Company with the Commission pursuant to the
Securities Act as required by the Registration Rights Agreement.

 

(z)          The
historical financial statements (including the related notes and supporting schedules) included or incorporated by reference in
the Pricing Disclosure Package and the Offering Memorandum present fairly in all material respects the financial condition, results
of operations and cash flows of the entities purported to be shown thereby, at the dates and for the periods indicated, and have
been prepared in conformity with accounting principles generally accepted in the United States applied on a consistent basis throughout
the periods involved. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the
Pricing Disclosure Package and the Offering Memorandum fairly present the information called for in all material respects and have
been prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 

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(aa)         Hein
& Associates LLP (“Hein”), who have certified certain financial statements of the Company, whose
report appears in the Pricing Disclosure Package and the Offering Memorandum and who have delivered the initial letter referred
to in Section 7(f) hereof, are independent registered public accountants with respect to the Company and its subsidiaries within
the meaning of the Securities Act and the applicable rules and regulations adopted by the Commission and the Public Company Accounting
Oversight Board.

 

(bb)         The
Company and each of its subsidiaries maintain a system of internal control over financial reporting (as such term is defined in
Rule 13a-15(f) of the Exchange Act) that complies with the requirements of the Exchange Act and that has been designed by, or under
the supervision of, the Company’s principal executive and principal financial officers, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles in the United States. The Company and each of its subsidiaries maintains internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or
specific authorization, (ii) transactions are recorded as necessary to permit preparation of the Company’s financial statements
in conformity with accounting principles generally accepted in the United States and to maintain accountability for its assets,
(iii) access to the Company’s assets is permitted only in accordance with management’s general or specific authorization,
(iv) the recorded accountability for the Company’s assets is compared with existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. As of the date of the most recent balance sheet of the Company and its consolidated
subsidiaries reviewed or audited by Hein and the audit committee of the board of directors of the Company, there were no material
weaknesses in the Company’s internal controls and the interactive data in eXtensible Business Reporting Language included
or incorporated by reference in the Pricing Disclosure Package and the Offering Memorandum fairly present the information called
for in all material respects and have been prepared in accordance with the Commission's rules and guidelines applicable thereto.

 

(cc)         (i)
The Company and each of its subsidiaries maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e)
under the Exchange Act), (ii) such disclosure controls and procedures are designed to ensure that the information required to be
disclosed by the Company and its subsidiaries in the reports they file or submit under the Exchange Act is accumulated and communicated
to management of the Company and its subsidiaries, including their respective principal executive officers and principal financial
officers, as appropriate, to allow timely decisions regarding required disclosure to be made, and (iii) such disclosure controls
and procedures are effective in all material respects to perform the functions for which they were established.

 

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(dd)         Since
the date of the most recent balance sheet of the Company and its consolidated subsidiaries reviewed or audited by Hein and the
audit committee of the board of directors of the Company, (i) the Company has not been advised of or become aware of (A) any
significant deficiencies in the design or operation of internal controls, that could adversely affect the ability of the Company
or any of its subsidiaries to record, process, summarize and report financial data, or any material weaknesses in internal controls,
and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal
controls of the Company and each of its subsidiaries; and (ii) there have been no significant changes in internal controls or in
other factors that could significantly affect internal controls, including any corrective actions with regard to significant deficiencies
and material weaknesses.

 

(ee)         
There is and has been no failure on the part of the Company and any of the Company’s directors or officers, in their capacities
as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection
therewith.

 

(ff)         Except
as described in the Pricing Disclosure Package and the Offering Memorandum, since the date of the latest audited financial statements
included or incorporated by reference in the Pricing Disclosure Package and the Offering Memorandum, neither of the Company Parties
has (i) sustained any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered
by insurance, or from any labor disturbance or dispute or court or governmental action, order or decree, (ii) issued or granted
any securities, (iii) incurred any liability or obligation, direct or contingent, other than liabilities and obligations that were
incurred in the ordinary course of business, (iv) entered into any transaction not in the ordinary course of business, or (v) declared
or paid any dividend on its capital stock, and since such date, there has not been any change in the capital stock or long-term
debt of the Company Parties or any adverse change, or any development involving a prospective adverse change, in or affecting the
condition (financial or otherwise), results of operations, stockholders’ equity, properties, management, business or prospects
of the Company and its subsidiaries, taken as a whole, in each case except as could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(gg)         The
Company Parties have good and marketable title in fee simple to all real property and good and marketable title to all personal
property owned by them, in each case free and clear of all liens, encumbrances and defects, except such liens, encumbrances and
defects as are described in the Pricing Disclosure Package and the Offering Memorandum and such as do not materially affect the
value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company
Parties. All assets held under lease by the Company Parties are held by them under valid, subsisting and enforceable leases, with
such exceptions as do not materially interfere with the use made and proposed to be made of such assets by the Company Parties.

 

(hh)         The
Company and each of its subsidiaries have such permits, licenses, patents, franchises, certificates of need and other approvals
or authorizations of governmental or regulatory authorities (“Permits”) as are necessary under applicable
law to own their properties and conduct their businesses in the manner described in the Pricing Disclosure Package and the Offering
Memorandum, except for any of the foregoing that could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect. The Company and each of its subsidiaries have fulfilled and performed all of their obligations with respect to the Permits,
and no event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or results
in any other impairment of the rights of the holder of any such Permits, except for any of the foregoing that could not reasonably
be expected to have a Material Adverse Effect. Neither the Company, nor any of its subsidiaries has received notice of any revocation
or modification of any such Permits or has any reason to believe that any such Permits will not be renewed in the ordinary course.

 

    	10

    	 

    

 

(ii)         The
Company and each of its subsidiaries own or possess adequate rights to use all material patents, patent applications, trademarks,
service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, know-how, software, systems
and technology (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems
or procedures) necessary for the conduct of their respective businesses and have no reason to believe that the conduct of their
respective businesses will conflict with, and have not received any notice of any claim of conflict with, any such rights of others.

 

(jj)         There
are no legal or governmental proceedings pending to which the Company or any of its subsidiaries is a party or of which any property
or assets of the Company or any of its subsidiaries is the subject that could, in the aggregate, reasonably be expected to have
a Material Adverse Effect or could, in the aggregate, reasonably be expected to have a material adverse effect on the performance
by the Company Parties of the performance of their respective obligations under this Agreement, the Indenture, the Notes, the Guarantee,
the Registration Rights Agreement or the consummation of any of the transactions contemplated hereby. To the Company Parties’
knowledge, no such proceedings are threatened or contemplated by governmental authorities or others.

 

(kk)         Neither
the Company nor any of its subsidiaries (i) is in violation of its charter or by-laws (or similar organizational documents), (ii)
is in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant, condition or other obligation contained in any indenture, mortgage, deed of trust,
loan agreement, license or other agreement or instrument to which it is a party or by which it is bound or to which any of its
properties or assets is subject, or (iii) is in violation of any statute or any order, rule or regulation of any court or governmental
agency or body having jurisdiction over it or its property or assets or has failed to obtain any license, permit, certificate,
franchise or other governmental authorization or permit necessary to the ownership of its property or to the conduct of its business.

 

    	11

    	 

    

 

(ll)         The
Company and each of its subsidiaries (i) are, and at all times prior hereto were, in compliance with all laws, regulations, ordinances,
rules, orders, judgments, decrees, permits or other legal requirements of any governmental authority, including without limitation
any international, foreign, national, state, provincial, regional, or local authority, relating to pollution, the protection of
human health or safety, the environment, or natural resources, or to use, handling, storage, manufacturing, transportation, treatment,
discharge, disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”) applicable to such entity, which compliance includes, without limitation, obtaining, maintaining and complying
with all material permits and authorizations and approvals required by Environmental Laws to conduct their respective businesses,
and (ii) have not received notice or otherwise have knowledge of any actual or alleged violation of Environmental Laws, or
of any actual or potential liability for or other obligation concerning the presence, disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants. Except as described in the Pricing Disclosure Package and the Offering Memorandum,
(x) there are no proceedings that are pending, or known to be contemplated, against the Company or any of its subsidiaries under
Environmental Laws in which a governmental authority is also a party, other than such proceedings regarding which it is reasonably
believed no monetary sanctions of $100,000 or more will be imposed, (y) the Company and its subsidiaries are not aware of any issues
regarding compliance with Environmental Laws, including any pending or proposed Environmental Laws, or liabilities or other obligations
under Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants or contaminants, that could reasonably
be expected to have a material effect on the capital expenditures, earnings or competitive position of the Company and its subsidiaries,
and (z) none of the Company and its subsidiaries anticipates material capital expenditures relating to Environmental Laws.

 

(mm)         The
Company Parties have filed all federal, state, local and foreign tax returns required to be filed through the date hereof, subject
to permitted extensions, and have paid all taxes due, and no tax deficiency has been determined adversely to the Company Parties,
nor do the Company Parties have any knowledge of any tax deficiencies that have been, or could reasonably be expected to be asserted
against the Company Parties, that could, in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(nn)         Neither
of the Company Parties is and, after giving effect to the offer and sale of the Notes and the application of the proceeds therefrom
as described under “Use of Proceeds” in each of the Pricing Disclosure Package and the Offering Memorandum, will be,
an “investment company” or a company “controlled” by an “investment company” within the meaning
of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder.

 

(oo)         Ryder
Scott Company, L.P. (“Ryder Scott”), whose report appears in the Pricing Disclosure Package and the Offering
Memorandum and who has delivered the letter referred to in Section 7(i) hereof, was, as of the date of such report, and is, as
of the date hereof, an independent reserve engineer with respect to the Company.

 

(pp)         MHA
Petroleum Consultants LLC (“MHA”), whose report appears in the Pricing Disclosure Package and the Offering
Memorandum and who has delivered the letter referred to in Section 7(j) hereof, was, as of the date of such report, and is, as
of the date hereof, an independent reserve engineer with respect to the Company.

 

(qq)         The
Company and its affiliates have not taken, directly or indirectly, any action designed to or that has constituted or that could
reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company Parties
in connection with the offering of the Notes.

 

    	12

    	 

    

 

(rr)         Neither
the Company nor any of its subsidiaries, nor, to the knowledge of the Company Parties, any director, officer, agent, employee or
other person associated with or acting on behalf of the Company or any of its subsidiaries, has in the course of its actions for,
or on behalf of the Company or any of its subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic
government official, “foreign office” (as defined in the Foreign Corrupt Practices Act of 1977, as amended, and the
rules and regulations thereunder (collectively, the “FCPA”)) or employee from corporate funds; (iii)
violated or is in violation of any provision of the FCPA, the Bribery Act 2010 of the United Kingdom, as amended, or any other
applicable anti-corruption or anti-bribery laws or statutes; or (iv) made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any domestic government official, foreign official or employee; and the Company and its subsidiaries
and, to the knowledge of the Company Parties, the Company’s affiliates have conducted their respective businesses in compliance
with the FCPA, the Bribery Act 2010 of the United Kingdom, as amended, and any other applicable anti-corruption or anti-bribery
laws or statutes, and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected
to continue to ensure, continued compliance therewith.

 

(ss)         The
operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving
the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company
Parties, threatened.

 

(tt)         Neither
the Company nor any of its subsidiaries nor, to the knowledge of the Company Parties, any director, officer, agent, employee or
affiliate of the Company or any of its subsidiaries (i) is currently subject to or the target of any sanctions administered or
enforced by the Office of Foreign Assets Control of the U.S. Treasury Department, the U.S. Department of State, the United Nations
Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”);
or (ii) located, organized or resident in a country that is the subject of Sanctions (including, without limitation, Cuba, Iran,
North Korea, Sudan, and Syria); and the Company Parties will not directly or indirectly use the proceeds of the offering, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person, or in any country or territory, that currently is the subject or target of Sanctions
or in any other manner that will result in a violation by any person (including any person participating in the transaction whether
as an underwriter, advisor, investor or otherwise) of Sanctions. The Company and its subsidiaries have not knowingly engaged in
for the past five years, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any individual
or entity, or in any country or territory, that at the time of the dealing or transaction is or was the subject or target of Sanctions.

 

    	13

    	 

    

 

(uu)         The
section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical
Accounting Policies” set forth or incorporated by reference in the Preliminary Offering Memorandum contained in the Pricing
Disclosure Package and the Offering Memorandum accurately and fully describes (i) the accounting policies that the Company believes
are the most important in the portrayal of the Company’s financial condition and results of operations and that require management’s
most difficult, subjective or complex judgments; (ii) the judgments and uncertainties affecting the application of critical
accounting policies; and (iii) the likelihood that materially different amounts would be reported under different conditions or
using different assumptions and an explanation thereof.

 

(vv)         There
are no contracts or other documents that would be required to be described in a registration statement filed under the Securities
Act or filed as exhibits to a registration statement of the Company pursuant to Item 601(10) of Regulation S-K that have not been
described in the Pricing Disclosure Package and the Offering Memorandum. The statements made in the Pricing Disclosure Package
and the Offering Memorandum, insofar as they purport to constitute summaries of the terms of the contracts and other documents
that are so described, constitute accurate summaries of the terms of such contracts and documents in all material respects. Neither
the Company nor any of its subsidiaries has knowledge that any other party to any such contract or other document has any intention
not to render full performance as contemplated by the terms thereof.

 

(ww)         No
relationship, direct or indirect, that would be required to be described in a registration statement of the Company pursuant to
Item 404 of Regulation S-K, exists between or among the Company Parties or their respective subsidiaries, on the one hand, and
the directors, officers, stockholders, customers or suppliers of the Company Parties or their respective subsidiaries, on the other
hand, that has not been described in the Pricing Disclosure Package and the Offering Memorandum.

 

(xx)        No
labor disturbance by or dispute with the employees of the Company or any of its subsidiaries exists or, to the knowledge of the
Company Parties, is imminent that could reasonably be expected to have a Material Adverse Effect.

 

(yy)         The
statements made in the Pricing Disclosure Package and the Offering Memorandum under the captions “Business—Hydraulic
Stimulation,” “Business—Government Regulations,” “Certain Transactions with Related Parties,”
“Management,” “Description of Other Indebtedness” and “Plan of Distribution,” insofar as they
purport to constitute summaries of the terms of statutes, rules or regulations, legal or governmental proceedings or contracts
and other documents, constitute accurate summaries of the terms of such statutes, rules and regulations, legal and governmental
proceedings and contracts and other documents in all material respects.

 

(zz)         None
of the transactions contemplated by this Agreement (including, without limitation, the use of the proceeds from the sale of the
Notes), will violate or result in a violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder, including,
without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System.

 

    	14

    	 

    

 

(aaa)        The
Company and each of its subsidiaries carry, or are covered by, insurance from insurers of recognized financial responsibility in
such amounts and covering such risks as is adequate for the conduct of their respective businesses and the value of their respective
properties and as is customary for companies engaged in similar businesses in similar industries. All policies of insurance of
the Company and its subsidiaries are in full force and effect; the Company and each of its subsidiaries are in compliance with
the terms of such policies in all material respects; and neither the Company nor any of its subsidiaries has received notice from
any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be made in order
to continue such insurance. There are no claims by the Company or any of its subsidiaries under any such policy or instrument as
to which any insurance company is denying liability or defending under a reservation of rights clause; and neither the Company
nor any such subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost
that could not reasonably be expected to have a Material Adverse Effect.

 

(bbb)        The
Company has not taken any action or omitted to take any action (such as issuing any press release relating to any Notes without
an appropriate legend) which may result in the loss by any of the Initial Purchasers of the ability to rely on any stabilization
safe harbor provided by the Financial Services Authority under the Financial Services and Markets Act 2000.

 

(ccc)        (i)
Each “employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Security Act of 1974, as
amended (“ERISA”)) for which the Company or any member of its “Controlled Group” (defined
as any organization which is a member of a controlled group of corporations within the meaning of Section 414 of the Internal Revenue
Code of 1986, as amended (the “Code”)) would have any liability (each a “Plan”)
has been maintained in material compliance with its terms and with the requirements of all applicable statutes, rules and regulations
including ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the
Code, has occurred with respect to any Plan excluding transactions effected pursuant to a statutory or administrative exemption;
(iii) with respect to each Plan subject to Title IV of ERISA (A) no “reportable event” (within the meaning of Section
4043(c) of ERISA) has occurred or is reasonably expected to occur, (B) no “accumulated funding deficiency” (within
the meaning of Section 302 of ERISA or Section 412 of the Code), whether or not waived, has occurred or is reasonably expected
to occur, (C) the fair market value of the assets under each Plan exceeds the present value of all benefits accrued under such
Plan (determined based on those assumptions used to fund such Plan), and (D) neither the Company nor any member of its Controlled
Group has incurred, or reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan
or premiums to the Pension Benefit Guaranty Corporation in the ordinary course and without default) in respect of a Plan (including
a “multiemployer plan,” within the meaning of Section 4001(c)(3) of ERISA); and (iv) each Plan that is intended to
be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or by failure to act,
which would cause the loss of such qualification.

 

    	15

    	 

    

 

(ddd)        No
subsidiary of the Company is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making
any other distribution on such subsidiary’s capital stock or other ownership interests, from repaying to the Company any
loans or advances to such subsidiary from the Company or from transferring any of such subsidiary’s property or assets to
the Company or any other subsidiary of the Company, except as described in the Pricing Disclosure Package and the Offering Memorandum.

 

(eee)        The
statistical and market-related data included or incorporated by reference in the Pricing Disclosure Package and the Offering Memorandum
are based on or derived from sources that the Company believes to be reliable in all material respects.

 

(fff)        There
are no contracts, agreements or understandings between the Company or the Guarantor and any person granting such person the right
to require the Company or the Guarantor to file a registration statement under the Securities Act with respect to any securities
of the Company or the Guarantor owned or to be owned by such person or in any securities being registered pursuant to any other
registration statement filed by the Company or the Guarantor under the Securities Act.

 

(ggg)        There
are no contracts, agreements or understandings between the Company or the Guarantor and any person granting such person the right
to require the Company or the Guarantor to file a registration statement under the Securities Act with respect to any securities
of the Company or the Guarantor (other than the Registration Rights Agreement) owned or to be owned by such person or to require
the Company or the Guarantor to include such securities registered pursuant to the Registration Rights Agreement or in any securities
being registered pursuant to any other registration statement filed by the Company or the Guarantor under the Securities Act.

 

(hhh)        Neither
the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person (other than this
Agreement) that could give rise to a valid claim against any of them or the Initial Purchasers for a brokerage commission, finder’s
fee or like payment in connection with the offering and sale of the Notes.

 

(iii)        Neither
the Company nor any of its subsidiaries is in violation of or has received notice of any violation with respect to any federal
or state law relating to discrimination in the hiring, promotion or pay of employees, nor any applicable federal or state wage
and hour laws, nor any state law precluding the denial of credit due to the neighborhood in which a property is situated, the violation
of any of which could reasonably be expected to have a Material Adverse Effect.

 

(jjj)        The
statements set forth in each of the Pricing Disclosure Package and the Offering Memorandum under the caption “Description
of Notes,” insofar as they purport to constitute a summary of the terms of the Notes and the Guarantee and under the captions
“Certain U.S. Federal Income Tax Considerations,” “Certain Transactions with Related Parties,” “Description
of Other Indebtedness,” “Management” and “Plan of Distribution,” insofar as they purport to summarize
the provisions of the laws and documents referred to therein, are accurate summaries in all material respects.

 

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(kkk)        Immediately
after the consummation of transactions contemplated by this Agreement, the Company will be Solvent. As used in this paragraph,
the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market
value (or present fair saleable value) of the assets of the Company are not less than the total amount required to pay the probable
liabilities of the Company on its total existing debts and liabilities (including contingent liabilities) as they become absolute
and matured, (ii) the Company is able to realize upon its assets and pay its debts and other liabilities, contingent obligations
and commitments as they mature and become due in the normal course of business, (iii) assuming the sale of the Notes as contemplated
by this Agreement, the Pricing Disclosure Package and the Offering Memorandum, the Company is not incurring debts or liabilities
beyond its ability to pay as such debts and liabilities mature, (iv) the Company is not engaged in any business or transaction,
and is not about to engage in any business or transaction, for which its property would constitute unreasonably small capital after
giving due consideration to the prevailing practice in the industry in which the Company is engaged, and (v) the Company is not
a defendant in any civil action that would result in a judgment that the Company is or would become unable to satisfy. In computing
the amount of such contingent liabilities at any time, it is intended that such liabilities will be computed at the amount that,
in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

 

Any certificate signed
by any officer of a Company Party and delivered to the Representative or counsel for the Initial Purchasers in connection with
the offering of the Notes shall be deemed a representation and warranty by such Company Party, jointly and severally, as to matters
covered thereby, to each Initial Purchaser.

 

3.            Purchase
of the Notes by the Initial Purchasers, Agreements to Sell, Purchase and Resell. 

 

(a)          The
Company Parties, jointly and severally, hereby agree, on the basis of the representations, warranties, covenants and agreements
of the Initial Purchasers contained herein and subject to all the terms and conditions set forth herein, to issue and sell to the
Initial Purchasers and, upon the basis of the representations, warranties and agreements of the Company Parties herein contained
and subject to all the terms and conditions set forth herein, each Initial Purchasers agrees, severally and not jointly, to purchase
from the Company, at a purchase price of 96.059% of the principal amount thereof, the principal amount of Notes set forth opposite
the name of such Initial Purchaser in Schedule I hereto. The Company Parties shall not be obligated to deliver any of the
securities to be delivered hereunder except upon payment for all of the securities to be purchased as provided herein.

 

(b)          Each
of the Initial Purchasers, severally and not jointly, hereby represents and warrants to the Company that it will offer the Notes
for sale upon the terms and conditions set forth in this Agreement and in the Pricing Disclosure Package. Each of the Initial Purchasers,
severally and not jointly, hereby represents and warrants to, and agrees with, the Company, on the basis of the representations,
warranties and agreements of the Company Parties, that such Initial Purchaser: (i) is a QIB with such knowledge and experience
in financial and business matters as are necessary in order to evaluate the merits and risks of an investment in the Notes; (ii)
in connection with the Exempt Resales, will solicit offers to buy the Notes only from, and will offer to sell the Notes only to,
Eligible Purchasers in accordance with this Agreement and on the terms contemplated by the Pricing Disclosure Package; and (iii)
will not engage in any directed selling efforts within the meaning of Rule 902 under the Securities Act, in connection with the
offering of the Notes. The Initial Purchasers have advised the Company that they will offer the Notes to Eligible Purchasers at
a price initially equal to 99.059% of the principal amount thereof, plus accrued interest, if any, from the date of issuance of
the Notes. Such price may be changed by the Initial Purchasers at any time without notice.

 

    	17

    	 

    

 

(c)          The
Initial Purchasers have not nor, prior to the later to occur of (A) the Closing Date and (B) completion of the distribution of
the Notes, will not, use, authorize use of, refer to or distribute any material in connection with the offering and sale of the
Notes other than (i) the Preliminary Offering Memorandum, the Pricing Disclosure Package, the Offering Memorandum, (ii) any written
communication that contains either (x) no “issuer information” (as defined in Rule 433(h)(2) under the Securities Act)
or (y) “issuer information” that was included (including through incorporation by reference) in the Preliminary Offering
Memorandum or any Free Writing Offering Document listed on Schedule III hereto, (iii) the Free Writing Offering Documents listed
on Schedule III hereto, (iv) any written communication prepared by such Initial Purchaser and approved by the Company in writing,
or (v) any written communication relating to or that contains the terms of the Notes or other information that was included (including
through incorporation by reference) in the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Offering Memorandum.

 

Each of the Initial Purchasers
understands that the Company and, for purposes of the opinions to be delivered to the Initial Purchasers pursuant to Sections 7(c),
7(d) and 7(e) hereof, counsel to the Company and counsel to the Initial Purchasers, will rely upon the accuracy and truth of the
foregoing representations, warranties and agreements, and the Initial Purchasers hereby consent to such reliance.

 

4.           Delivery
of the Notes and Payment Therefor. Delivery to the Initial Purchasers of and payment for the Notes shall be made at the office
of Latham & Watkins LLP, Houston, Texas at 9:00 A.M., Houston time, on August 27, 2014 (the “Closing Date”).
The place of closing for the Notes and the Closing Date may be varied by agreement between the Initial Purchasers and the Company.

 

The Notes will be delivered
to the Initial Purchasers, or the Trustee as custodian for The Depository Trust Company (“DTC”), against
payment by or on behalf of the Initial Purchasers of the purchase price therefor by wire transfer in immediately available funds
to an account designated by the Company, by causing DTC to credit the Notes to the account of the Initial Purchasers at DTC. The
Notes will be evidenced by one or more global securities in definitive form and will be registered in the name of Cede & Co.
as nominee of DTC. The Notes to be delivered to the Initial Purchasers shall be made available to the Initial Purchasers in Houston,
Texas for inspection and packaging not later than 9:00 A.M., Houston time, on the Closing Date.

 

5.           Agreements
of the Company Parties. The Company Parties, jointly and severally, agree with each of the Initial Purchasers as follows:

 

(a)          The
Company Parties will furnish to the Initial Purchasers, without charge, within one business day of the date of the Offering Memorandum,
such number of copies of the Offering Memorandum as may then be amended or supplemented as they may reasonably request.

 

    	18

    	 

    

 

(b)          The
Company Parties will prepare the Offering Memorandum in a form approved by the Initial Purchasers and will not make any amendment
or supplement to the Pricing Disclosure Package or to the Offering Memorandum of which the Initial Purchasers shall not previously
have been advised or to which they shall reasonably object after being so advised.

 

(c)          The
Company Parties consent to the use of the Pricing Disclosure Package and the Offering Memorandum in accordance with the securities
or Blue Sky laws of the jurisdictions in which the Notes are offered by the Initial Purchasers and by all dealers to whom Notes
may be sold, in connection with the offering and sale of the Notes.

 

(d)          If,
at any time prior to completion of the distribution of the Notes by the Initial Purchasers to Eligible Purchasers, any event occurs
or information becomes known that, in the judgment of the Company Parties or in the opinion of counsel for the Initial Purchasers,
should be set forth in the Pricing Disclosure Package or the Offering Memorandum so that the Pricing Disclosure Package or the
Offering Memorandum, as then amended or supplemented, does not include any untrue statement of material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or if it is necessary to supplement or amend the Pricing Disclosure Package or the Offering Memorandum in order
to comply with any law, the Company Parties will forthwith prepare an appropriate supplement or amendment thereto, and will expeditiously
furnish to the Initial Purchasers and dealers a reasonable number of copies thereof.

 

(e)          Neither
Company Party will make any offer to sell or solicitation of an offer to buy the Notes that would constitute a Free Writing Offering
Document without the prior consent of the Representative, which consent shall not be unreasonably withheld or delayed. If at any
time following issuance of a Free Writing Offering Document any event occurred or occurs as a result of which such Free Writing
Offering Document conflicts with the information in the Preliminary Offering Memorandum, the Pricing Disclosure Package or the
Offering Memorandum or, when taken together with the information in the Preliminary Offering Memorandum, the Pricing Disclosure
Package or the Offering Memorandum, includes an untrue statement of a material fact or omits to state any material fact necessary
in order to make the statements therein, in the light of the circumstances then prevailing, not misleading, as promptly as practicable
after becoming aware thereof, the Company will give notice thereof to the Initial Purchasers through the Representative and, if
requested by the Representative, will prepare and furnish without charge to each Initial Purchaser a Free Writing Offering Document
or other document which will correct such conflict, statement or omission.

 

(f)          Promptly
from time to time to take such action as the Initial Purchasers may reasonably request to qualify the Notes for offering and sale
under the securities or Blue Sky laws of such jurisdictions as the Initial Purchasers may request and to comply with such laws
so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete
the distribution of the Notes; provided that in connection therewith the Company shall not be required to (i) qualify as
a foreign corporation in any jurisdiction in which it would not otherwise be required to so qualify, (ii) file a general consent
to service of process in any such jurisdiction, or (iii) subject itself to taxation in any jurisdiction in which it would not otherwise
be subject.

 

    	19

    	 

    

 

(g)          For
a period commencing on the date hereof and ending on the 180th day after the date of the Offering Memorandum, the Company Parties
agree not to, directly or indirectly, (i) offer for sale, sell, or otherwise dispose of (or enter into any transaction or device
that is designed to, or would be expected to, result in the disposition by any person at any time in the future of) any debt securities
of the Company substantially similar to the Notes or securities convertible into or exchangeable for such debt securities of the
Company, or sell or grant options, rights or warrants with respect to such debt securities of the Company or securities convertible
into or exchangeable for such debt securities of the Company, (ii) enter into any swap or other derivatives transaction that transfers
to another, in whole or in part, any of the economic benefits or risks of ownership of such debt securities of the Company, whether
any such transaction described in clause (i) or (ii) above is to be settled by delivery of debt securities of the Company or other
securities, in cash or otherwise, (iii) file or cause to be filed a registration statement, including any amendments, with respect
to the registration of debt securities of the Company substantially similar to the Notes or securities convertible, exercisable
or exchangeable into debt securities of the Company, or (iv) publicly announce an offering of any debt securities of the Company
substantially similar to the Notes or securities convertible or exchangeable into such debt securities, in each case without the
prior written consent of the Representative, on behalf of the Initial Purchasers, except in exchange for the Exchange Notes and
the Exchange Guarantee in connection with the Exchange Offer.

 

(h)          So
long as any of the Notes are outstanding, the Company Parties will furnish at their expense to the Initial Purchasers, and, upon
request, to the holders of the Notes and prospective purchasers of the Notes, the information required by Rule 144A(d)(4) under
the Securities Act (if any).

 

(i)          The
Company Parties will apply the net proceeds from the sale of the Notes to be sold by it hereunder substantially in accordance with
the description set forth in the Pricing Disclosure Package and the Offering Memorandum under the caption “Use of Proceeds.”

 

(j)          The
Company Parties and their affiliates will not take, directly or indirectly, any action designed to or that has constituted or that
reasonably could be expected to cause or result in the stabilization or manipulation of the price of any security of the Company
Parties in connection with the offering of the Notes.

 

(k)          The
Company Parties will use their best efforts to permit the Notes to be eligible for clearance and settlement through DTC.

 

(l)          The
Company Parties will not, and will not permit any of their respective affiliates (as defined in Rule 144 under the Securities Act)
to, resell any of the Notes that have been acquired by any of them, except for Notes purchased by the Company or any of its affiliates
and resold in a transaction registered under the Securities Act.

 

(m)          The
Company Parties agree not to sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as
defined in the Securities Act) that would be integrated with the sale of the Notes in a manner that would require the registration
under the Securities Act of the sale to the Initial Purchasers or the Eligible Purchasers of the Notes.

 

    	20

    	 

    

 

(n)          In
connection with any offer or sale of the Notes, the Company Parties will not engage, and will cause their respective affiliates
and any person acting on their behalf (other than, in any case, the Initial Purchasers and any of their respective affiliates,
as to whom the Company Parties make no covenant) not to engage (i) in any form of general solicitation or general advertising (within
the meaning of Regulation D of the Securities Act) or any public offering within the meaning of Section 4(a)(2) of the Securities
Act in connection with any offer or sale of the Notes and/or (ii) in any directed selling effort with respect to the Notes within
the meaning of Regulation S under the Securities Act, and to comply with the offering restrictions requirement of Regulation S
of the Securities Act.

 

(o)          The
Company Parties agree to comply with all the terms and conditions of the Registration Rights Agreement and all agreements set forth
in the representation letters of the Company Parties to DTC relating to the approval of the Notes by DTC for “book entry”
transfer.

 

(p)          The
Company Parties will do and perform all things required or necessary to be done and performed under this Agreement by them prior
to the Closing Date, and to satisfy all conditions precedent to the Initial Purchasers’ obligations hereunder to purchase
the Notes.

 

6.           Expenses.
Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company Parties,
jointly and severally, agree to pay all expenses, costs, fees and taxes incident to and in connection with: (a) the preparation,
printing, filing and distribution of the Preliminary Offering Memorandum, the Pricing Disclosure Package and the Offering Memorandum
(including, without limitation, financial statements and exhibits and one or more versions of the Preliminary Offering Memorandum
and the Offering Memorandum for distribution in Canada, including in the form of a Canadian “wrapper” (including related
fees and expenses of Canadian counsel to the Initial Purchasers)) and all amendments and supplements thereto (including the fees,
disbursements and expenses of the Company Parties’ accountants and counsel and of Latham & Watkins LLP, counsel to the
Initial Purchasers); (b) the preparation, printing (including, without limitation, word processing and duplication costs) and delivery
of this Agreement, the Indenture, the Registration Rights Agreement, the Collateral Documents, all Blue Sky memoranda and all other
agreements, memoranda, correspondence and other documents printed and delivered in connection therewith and with the Exempt Resales
(including the fees, disbursements and expenses of the Company Parties’ counsel and of Latham & Watkins LLP, counsel
to the Initial Purchasers); (c) the issuance and delivery by the Company of the Notes and by the Guarantor of the Guarantee and
any taxes payable in connection therewith; (d) the qualification of the Notes and the Exchange Notes for offer and sale under the
securities or Blue Sky laws of the several states and any foreign jurisdictions as the Initial Purchasers may designate (including,
without limitation, the reasonable fees and disbursements of the Initial Purchasers’ counsel relating to such registration
or qualification); (e) the furnishing of such copies of the Preliminary Offering Memorandum, the Pricing Disclosure Package and
the Offering Memorandum, and all amendments and supplements thereto, as may be reasonably requested for use in connection with
the Exempt Resales; (f) the preparation of certificates for the Notes (including, without limitation, printing and engraving thereof);
(g) the approval of the Notes by DTC for “book-entry” transfer (including fees and expenses of counsel for the Initial
Purchasers); (h) the rating of the Notes and the Exchange Notes; (i) the obligations of the Trustee or the Collateral Agent, and
any of their respective agents or counsel in connection with the Indenture, the Notes, the Guarantee, the Exchange Notes and the
Exchange Guarantee; (j) the performance by the Company Parties of their other obligations under this Agreement; and (k) all travel
expenses (including expenses related to chartered aircraft) of each Initial Purchaser and the Company’s officers and employees
and any other expenses of each Initial Purchaser and the Company in connection with attending or hosting meetings with prospective
purchasers of the Notes, and expenses associated with any electronic road show.

 

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7.           Conditions
to Initial Purchasers’ Obligations. The respective obligations of the Initial Purchasers hereunder are subject to the
accuracy, when made and on and as of the Closing Date, of the representations and warranties of the Company Parties contained herein,
to the performance by the Company Parties of their respective obligations hereunder, and to each of the following additional terms
and conditions:

 

(a)          The
Initial Purchasers shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Pricing Disclosure
Package, any Free Writing Offering Document or the Offering Memorandum, or any amendment or supplement thereto, contains an untrue
statement of a fact which, in the opinion of Latham & Watkins LLP, counsel to the Initial Purchasers, is material or omits
to state a fact which, in the opinion of such counsel, is material and is necessary in order to make the statements therein, in
the light of the circumstances then prevailing, not misleading.

 

(b)          All
corporate proceedings and other legal matters incident to the authorization, form and validity of this Agreement, the Notes, the
Guarantee, the Exchange Notes, the Exchange Guarantee, the Registration Rights Agreement, the Indenture, the Pricing Disclosure
Package and the Offering Memorandum, and all other legal matters relating to this Agreement and the transactions contemplated hereby
shall be reasonably satisfactory in all material respects to counsel for the Initial Purchasers, and the Company Parties shall
have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such
matters.

 

(c)          Baker
Hostetler LLP shall have furnished to the Initial Purchasers its written opinion, as counsel to the Company Parties, addressed
to the Initial Purchasers and dated the Closing Date, in form and substance reasonably satisfactory to the Initial Purchasers,
substantially in the form of Exhibit A hereto.

 

(d)          Lathrop
& Gage LLP, North Dakota and Montana counsel, shall have furnished to the Initial Purchasers its written opinion, as special
counsel to the Company Parties, addressed to the Initial Purchasers and dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers, substantially in the form of Exhibit B hereto.

 

(e)          The
Initial Purchasers shall have received from Latham & Watkins LLP, counsel for the Initial Purchasers, such opinion or opinions
and negative assurance letter, dated the Closing Date, with respect to the issuance and sale of the Notes, the Pricing Disclosure
Package, the Offering Memorandum and other related matters as the Initial Purchasers may reasonably require, and the Company shall
have furnished to such counsel such documents and information as such counsel reasonably requests for the purpose of enabling them
to pass upon such matters.

 

    	22

    	 

    

 

(f)          At
the time of execution of this Agreement, the Initial Purchasers shall have received from Hein a letter, in form and substance satisfactory
to the Initial Purchasers, addressed to the Initial Purchasers and dated the date hereof (i) confirming that they are independent
registered public accountants with respect to the Company and its subsidiaries within the meaning of the Securities Act and the
applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight Board and are in compliance
with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission
and (ii) stating, as of the date hereof (or, with respect to matters involving changes or developments since the respective dates
as of which specified financial information is given in the Pricing Disclosure Package, as of a date not more than three days prior
to the date hereof), the conclusions and findings of such firm with respect to the financial information and (iii) covering such
other matters as are ordinarily covered by accountants’ “comfort letters” to underwriters in connection with
registered public offerings.

 

(g)          With
respect to the letter of Hein referred to in the preceding paragraph and delivered to the Initial Purchasers concurrently with
the execution of this Agreement (the “initial letter”), the Company shall have furnished to the Initial
Purchasers a “bring-down letter” of such accountants, addressed to the Initial Purchasers and dated the Closing Date
(i) confirming that they are independent registered public accountants with respect to the Company and its subsidiaries within
the meaning of the Securities Act and the applicable rules and regulations adopted by the Commission and the Public Company Accounting
Oversight Board and are in compliance with the applicable requirements relating to the qualification of accountants under Rule
2-01 of Regulation S-X of the Commission, (ii) stating, as of the Closing Date (or, with respect to matters involving changes or
developments since the respective dates as of which specified financial information is given in each of the Pricing Disclosure
Package or the Offering Memorandum, as of a date not more than three days prior to the date of the Closing Date), the conclusions
and findings of such firm with respect to the financial information and other matters covered by the initial letter, and (iii)
confirming in all material respects the conclusions and findings set forth in the initial letter.

 

(h)          Since
the date of the latest audited financial statements included or incorporated by reference in the Pricing Disclosure Package and
the Offering Memorandum, (i) neither the Company nor any of its subsidiaries shall have sustained any loss or interference with
its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court
or governmental action, order or decree, or (ii) there shall not have been any change in the capital stock or long-term debt of
the Company or any of its subsidiaries or any change, or any development involving a prospective change, in or affecting the condition
(financial or otherwise), results of operations, stockholders’ equity, properties, management, business or prospects of the
Company and its subsidiaries, taken as a whole, the effect of which, in any such case described in clause (i) or (ii), is, individually
or in the aggregate, in the judgment of the Representative, so material and adverse as to make it impracticable or inadvisable
to proceed with the offering, sale or the delivery of the Notes being delivered on the Closing Date on the terms and in the manner
contemplated in the Pricing Disclosure Package and the Offering Memorandum.

 

    	23

    	 

    

 

(i)          At
the time of execution of this Agreement, the Initial Purchasers shall have received from Ryder Scott an initial letter (the “initial
Ryder Scott letter”), in form and substance satisfactory to the Initial Purchasers, addressed to the Initial Purchasers
and dated the date hereof and a subsequent letter dated as of the Closing Date, which such letter shall cover the period from any
initial Ryder Scott letter to the Closing Date, confirming that they are independent with respect to the Company and stating the
conclusions and findings of such firm with respect to oil and natural gas reserve estimates of the Company as is customary to initial
purchasers in connection with similar transactions.

 

(j)          At
the time of execution of this Agreement, the Initial Purchasers shall have received from MHA an initial letter (the “initial
MHA letter”), in form and substance satisfactory to the Initial Purchasers, addressed to the Initial Purchasers and
dated the date hereof and a subsequent letter dated as of the Closing Date, which such letter shall cover the period from any initial
MHA letter to the Closing Date, confirming that they are independent with respect to the Company and stating the conclusions and
findings of such firm with respect to oil and natural gas reserve estimates of the Company as is customary to initial purchasers
in connection with similar transactions.

 

(k)          The
Company Parties shall have furnished or caused to be furnished to the Initial Purchasers dated as of the Closing Date a certificate
of the Chief Executive Officer and Chief Financial Officer of the Company and the Guarantor, or other officers satisfactory to
the Initial Purchasers, as to such matters as the Representative may reasonably request, including, without limitation, a statement:

 

(i)          That
the representations, warranties and agreements of the Company Parties in Section 2 are true and correct on and as of the Closing
Date, and the Company has complied with all its agreements contained herein and satisfied all the conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date;

 

(ii)         That
they have examined the Pricing Disclosure Package and the Offering Memorandum, and, in their opinion, (A) the Pricing Disclosure
Package, as of the Applicable Time, and the Offering Memorandum, as of its date and as of the Closing Date, did not and do not
contain any untrue statement of a material fact and did not and do not omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading and (B) since the date of the Pricing Disclosure
Package and the Offering Memorandum, no event has occurred which should have been set forth in a supplement or amendment to the
Pricing Disclosure Package and the Offering Memorandum; and

 

(iii)        To
the effect of Section 7(h) (provided that no representation with respect to the judgment of the Representative need be made)
and Section 7(l).

 

    	24

    	 

    

 

(l)          Subsequent
to the earlier of the Applicable Time and the execution and delivery of this Agreement there shall not have occurred any of the
following: (i) downgrading shall have occurred in the rating accorded the Company’s debt securities by any “nationally
recognized statistical rating organization,” as that term is used by the Commission in Section 15E under the Exchange Act,
or (ii) such organization shall have publicly announced that it has under surveillance or review, with possible negative implications,
its rating of any of the Company’s debt securities.

 

(m)          The
Collateral Agent shall have received, and the Representative shall have received a copy of:

 

(i)          appropriately
completed copies, which have been duly authorized for filing by the appropriate person, of UCC-1 financing statements or equivalent
filings naming each Company Party as debtor and the Collateral Agent as the secured party covering the Collateral to be filed under
the UCC of all jurisdictions as may be necessary to perfect the security interests of the Collateral Agent in any Collateral held
by either Company Party to the extent that such security interests can be perfected by the filing of a UCC-1 financing statement,
securing the obligations of the Company Parties with respect to the Notes;

 

(ii)         appropriately
completed copies, which have been duly authorized for filing by the appropriate person, of UCC-3 termination statements or equivalent
filings, if any, necessary to terminate existing UCC-1 financing statements filed to perfect liens (other than Permitted Prior
Liens) of any person in any Collateral held by any Company Party;

 

(iii)        certified
copies of UCC Requests for Information or copies (Form UCC-11), or a similar search report certified by a party acceptable to the
Collateral Agent, dated a date reasonably prior to the Closing Date, listing all effective UCC-1 financing statements which name
any Company Party (under its present name and any previous names) as the debtor, together with copies of such financing statements
(none of which shall cover any Collateral described in any Collateral Document, other than such UCC-1 financing statements that
evidence Permitted Prior Liens or liens referred to in the UCC-3 termination statements to be delivered); and

 

(iv)        such
other documents with respect to any Collateral held by any Company Party as the Collateral Agent may reasonably request pursuant
to the execution and delivery of the Guaranty and Collateral Agreement.

 

(n)          The
Representative shall be satisfied that (i) the liens on the Collateral granted in favor of the Collateral Agent for the benefit
of the holders of the Notes and the Guarantees are of the priority described in the Offering Memorandum; and (ii) no lien or other
encumbrance exists on any of the Collateral other than the liens created under the Collateral Documents in favor of the Collateral
Agent for the benefit of the holders of the Notes and the Guarantee and the Permitted Prior Liens, in each case, subject in priority
to the Permitted Prior Liens and liens to be released simultaneously with the consummation of the transactions contemplated hereby.

 

    	25

    	 

    

 

(o)          At
the Closing Date, all the parties thereto shall have executed and delivered, and the Representative shall have received an original
copy of, each of the Collateral Documents and the Intercreditor Agreement, each of which agreements shall have, in all material
respects, the terms and conditions as described in the Offering Memorandum.

 

(p)          The
Notes shall be eligible for clearance and settlement through DTC.

 

(q)          The
Company Parties shall have executed and delivered the Registration Rights Agreement, and the Initial Purchasers shall have received
an original copy thereof, duly executed by the Company Parties.

 

(r)          The
Company Parties, the Trustee and the Collateral Agent shall have executed and delivered the Indenture, and the Initial Purchasers
shall have received an original copy thereof, duly executed by the Company Parties, the Trustee and the Collateral Agent.

 

(s)          Subsequent
to the earlier of the Applicable Time and the execution and delivery of this Agreement there shall not have occurred any of the
following: (i) (A) trading in securities generally on any securities exchange that has registered with the Commission under Section
6 of the Exchange Act (including the New York Stock Exchange, NYSE MKT, The NASDAQ Global Select Market, The NASDAQ Global Market
or The NASDAQ Capital Market), or (B) trading in any securities of the Company on any exchange or in the over-the-counter market,
shall, in the case of either (A) or (B), have been suspended or materially limited or the settlement of such trading generally
shall have been materially disrupted or minimum prices shall have been established on any such exchange or such market by the Commission,
by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a general moratorium on commercial
banking activities shall have been declared by federal or state authorities, (iii) the United States shall have become engaged
in hostilities, there shall have been an escalation in hostilities involving the United States or there shall have been a declaration
of a national emergency or war by the United States, or (iv) there shall have occurred such a material adverse change in general
economic, political or financial conditions, including, without limitation, as a result of terrorist activities after the date
hereof (or the effect of international conditions on the financial markets in the United States shall be such), or any other calamity
or crisis either within or outside the United States, in each case, as to make it, in the judgment of the Representative, impracticable
or inadvisable to proceed with the offering, sale or delivery of the Notes being delivered on the Closing Date on the terms and
in the manner contemplated in the Offering Memorandum or that, in the judgment of the Representative, could materially and adversely
affect the financial markets or the markets for the Notes and other debt securities.

 

(t)          There
shall exist at and as of the Closing Date no condition that would constitute a default (or an event that with notice or the lapse
of time, or both, would constitute a default) under the Indenture.

 

(u)          On
or prior to the Closing Date, the Company Parties shall have furnished to the Initial Purchasers such further certificates and
documents as the Initial Purchasers may reasonably request.

 

    	26

    	 

    

 

All opinions, letters,
evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions
hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers.

 

8.           Indemnification
and Contribution.

 

(a)          The
Company Parties hereby agree, jointly and severally, to indemnify and hold harmless each Initial Purchaser, its affiliates, directors,
officers and employees and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, from and against any loss, claim, damage or liability, joint or several, or any action in
respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of
Notes), to which such Initial Purchaser, affiliate, director, officer, employee or controlling person may become subject, under
the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i)
any untrue statement or alleged untrue statement of a material fact contained (A) in any Free Writing Offering Document, the Preliminary
Offering Memorandum, the Pricing Disclosure Package or the Offering Memorandum or in any amendment or supplement thereto, (B) in
any Blue Sky application or other document prepared or executed by the Company or the Guarantor (or based upon any written information
furnished by the Company or the Guarantor) specifically for the purpose of qualifying any or all of the Notes under the securities
laws of any state or other jurisdiction (any such application, document or information being hereinafter called a “Blue
Sky Application”), or (C) in any materials or information provided to investors by, or with the approval of, the
Company or the Guarantor in connection with the marketing of the offering of the Notes (“Marketing Materials”),
including any road show or investor presentations made to investors by the Company (whether in person or electronically), or (ii)
the omission or alleged omission to state in any Free Writing Offering Document, the Preliminary Offering Memorandum, the Pricing
Disclosure Package or the Offering Memorandum, or in any amendment or supplement thereto, or in any Blue Sky Application or in
any Marketing Materials, any material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, and shall reimburse each Initial Purchaser and each such affiliate, director, officer,
employee or controlling person promptly upon demand for any legal or other expenses reasonably incurred by such Initial Purchaser,
affiliate, director, officer, employee or controlling person in connection with investigating or defending or preparing to defend
against any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that
the Company Parties shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises
out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary
Offering Memorandum, the Pricing Disclosure Package or Offering Memorandum, or in any such amendment or supplement thereto, or
in any Blue Sky Application or in any Marketing Materials, in reliance upon and in conformity with written information concerning
such Initial Purchaser furnished to the Company through the Representative by or on behalf of any Initial Purchaser specifically
for inclusion therein, which information consists solely of the information specified in Section 8(e). The foregoing indemnity
agreement is in addition to any liability that the Company Parties may otherwise have to any Initial Purchaser or to any affiliate,
director, officer, employee or controlling person of such Initial Purchaser.

 

    	27

    	 

    

 

(b)          Each
Initial Purchaser, severally and not jointly, hereby agrees to indemnify and hold harmless the Company, the Guarantor, each of
their respective officers and employees, each of their respective directors and affiliates, and each person, if any, who controls
the Company or the Guarantor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any loss, claim, damage or liability, joint or several, or any action in respect thereof, to which the Company, the Guarantor
or any such director, officer, affiliate, employee or controlling person may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue
statement of a material fact contained (A) in any Free Writing Offering Document, Preliminary Offering Memorandum, the Pricing
Disclosure Package or the Offering Memorandum or in any amendment or supplement thereto, (B) in any Blue Sky Application, or (C)
in any Marketing Materials, or (ii) the omission or alleged omission to state in any Free Writing Offering Document, Preliminary
Offering Memorandum, the Pricing Disclosure Package or the Offering Memorandum, or in any amendment or supplement thereto, or in
any Blue Sky Application or in any Marketing Materials any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written
information concerning such Initial Purchaser furnished to the Company through the Representative by or on behalf of such Initial
Purchaser specifically for inclusion therein, which information is limited to the information set forth in Section 8(e). The foregoing
indemnity agreement is in addition to any liability that any Initial Purchaser may otherwise have to the Company, the Guarantor
or any such director, officer, affiliate, employee or controlling person.

 

    	28

    	 

    

 

(c)          Promptly
after receipt by an indemnified party under this Section 8 of notice of any claim or the commencement of any action, the indemnified
party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying
party in writing of the claim or the commencement of that action; provided, however, that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have under paragraphs (a) or (b) above except to the extent
it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure and; provided,
further, that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified
party otherwise than under paragraphs (a) or (b) above. If any such claim or action shall be brought against an indemnified party,
and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the
extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel
reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election
to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section
8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than
reasonable costs of investigation; provided, however, that the Initial Purchasers shall have the right to employ
counsel to represent jointly the Initial Purchasers and their respective directors, officers, employees and controlling persons
who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Initial Purchasers
against the Company Parties under this Section 8, if (i) the Company Parties and the Initial Purchasers shall have so mutually
agreed; (ii) the Company Parties have failed within a reasonable time to retain counsel reasonably satisfactory to the Initial
Purchasers; (iii) the Initial Purchasers and their respective directors, officers, employees and controlling persons shall have
reasonably concluded, based on the advice of counsel, that there may be legal defenses available to them that are different from
or in addition to those available to the Company Parties; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Initial Purchasers or their respective directors, officers, employees or controlling persons, on the
one hand, and the Company Parties, on the other hand, and representation of both sets of parties by the same counsel would present
a conflict due to actual or potential differing interests between them, and in any such event the fees and expenses of such separate
counsel shall be paid by the Company Parties and the Company Parties shall no longer have the right to assume the defense of any
such claim or action. No indemnifying party shall (x) without the prior written consent of the indemnified parties (which consent
shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether
or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding
and does not include a statement as to, or an admission of fault, culpability or a failure to act by or on behalf of any indemnified
party, or (y) be liable for any settlement of any such action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with the consent of the indemnifying party or if there be a final judgment of the plaintiff
in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss
or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated
by Section 8(a) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without
its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid
request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request or disputed
in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement.

 

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(d)          If
the indemnification provided for in this Section 8 shall for any reason be unavailable to or insufficient to hold harmless an indemnified
party under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof, referred
to therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in such
proportion as shall be appropriate to reflect the relative benefits received by the Company Parties, on the one hand, and the Initial
Purchasers, on the other, from the offering of the Notes, or (ii) if the allocation provided by clause (i) above is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above
but also the relative fault of the Company Parties, on the one hand, and the Initial Purchasers, on the other, with respect to
the statements or omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any
other relevant equitable considerations. The relative benefits received by the Company Parties, on the one hand, and the Initial
Purchasers, on the other, with respect to such offering shall be deemed to be in the same proportion as the total net proceeds
from the offering of the Notes purchased under this Agreement (before deducting expenses) received by the Company Parties, on the
one hand, and the total discounts and commissions received by the Initial Purchasers with respect to the Notes purchased under
this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Notes under this Agreement as set
forth on the cover page of the Offering Memorandum. The relative fault shall be determined by reference to whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied
by the Company Parties, or the Initial Purchasers, the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such statement or omission. For purposes of the preceding two sentences, the net proceeds
deemed to be received by the Company shall be deemed to be also for the benefit of the Guarantor, and information supplied by the
Company shall also be deemed to have been supplied by the Guarantor. The Company Parties and the Initial Purchasers agree that
it would not be just and equitable if contributions pursuant to this Section 8(d) were to be determined by pro rata allocation
(even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that does not
take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result
of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 8(d) shall be deemed to
include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8(d), no Initial Purchaser
shall be required to contribute any amount in excess of the amount by which the net proceeds from the sale to Eligible Purchasers
of the Notes initially purchased by it exceeds the amount of any damages that such Initial Purchaser has otherwise paid or become
liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute as provided in
this Section 8(d) are several in proportion to their respective purchase obligations and not joint.

 

(e)          The
Initial Purchasers severally confirm and the Company Parties acknowledge and agree that the statements with respect to the offering
of the Notes by the Initial Purchasers set forth in the second, seventh, eighth and ninth paragraphs of the section entitled “Plan
of Distribution” in the Pricing Disclosure Package and the Offering Memorandum are correct and constitute the only information
concerning such Initial Purchasers furnished in writing to the Company Parties by or on behalf of the Initial Purchasers specifically
for inclusion in the Preliminary Offering Memorandum, the Pricing Disclosure Package and the Offering Memorandum or in any amendment
or supplement thereto or in any Blue Sky Application or in any Marketing Materials.

 

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9.            Defaulting
Initial Purchasers.

 

(a)          If,
on the Closing Date, any Initial Purchaser defaults in its obligations to purchase the Notes that it has agreed to purchase under
this Agreement, the remaining non-defaulting Initial Purchasers may in their discretion arrange for the purchase of such Notes
by the non-defaulting Initial Purchasers or other persons satisfactory to the Company on the terms contained in this Agreement.
If, within 36 hours after any such default by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the
purchase of such Notes, then the Company shall be entitled to a further period of 36 hours within which to procure other persons
satisfactory to the non-defaulting Initial Purchasers to purchase such Notes on such terms. In the event that within the respective
prescribed periods, the non-defaulting Initial Purchasers notify the Company that they have so arranged for the purchase of such
Notes, or the Company notifies the non-defaulting Initial Purchasers that it has so arranged for the purchase of such Notes, either
the non-defaulting Initial Purchasers or the Company may postpone the Closing Date for up to seven full business days in order
to effect any changes that in the opinion of counsel for the Company or counsel for the Initial Purchasers may be necessary in
the Pricing Disclosure Package, the Offering Memorandum or in any other document or arrangement, and the Company agrees to promptly
prepare any amendment or supplement to the Pricing Disclosure Package or the Offering Memorandum that effects any such changes.
As used in this Agreement, the term “Initial Purchaser” includes, for all purposes of this Agreement unless the context
requires otherwise, any party not listed in Schedule I hereto that, pursuant to this Section 9, purchases Notes that a defaulting
Initial Purchaser agreed but failed to purchase.

 

(b)          If,
after giving effect to any arrangements for the purchase of the Notes of a defaulting Initial Purchaser or Initial Purchasers by
the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such
Notes that remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Notes, then the Company
shall have the right to require each non-defaulting Initial Purchaser to purchase the principal amount of Notes that such Initial
Purchaser agreed to purchase hereunder plus such Initial Purchaser's pro rata share (based on the principal amount
of Notes that such Initial Purchaser agreed to purchase hereunder) of the Notes of such defaulting Initial Purchaser or Initial
Purchasers for which such arrangements have not been made; provided that the non-defaulting Initial Purchasers shall not
be obligated to purchase more than 110% of the aggregate principal amount of Notes that they agreed to purchase on the Closing
Date pursuant to the terms of Section 3.

 

(c)          If,
after giving effect to any arrangements for the purchase of the Notes of a defaulting Initial Purchaser or Initial Purchasers by
the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such
Notes that remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the Notes, or if the Company shall
not exercise the right described in paragraph (b) above, then this Agreement shall terminate without liability on the part of the
non-defaulting Initial Purchasers. Any termination of this Agreement pursuant to this Section 9 shall be without liability on the
part of the Company Parties, except that the Company Parties will continue to be liable for the payment of expenses as set forth
in Sections 6 except that the provisions of Section 8 shall not terminate and shall remain in effect.

 

(d)          Nothing
contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to the Company Parties or any non-defaulting
Initial Purchaser for damages caused by its default.

 

10.          Termination.
The obligations of the Initial Purchasers hereunder may be terminated by the Initial Purchasers by notice given to and received
by the Company prior to delivery of and payment for the Notes if, prior to that time, any of the events described in Sections 7(h),
7(l) or 7(s) shall have occurred or if the Initial Purchasers shall decline to purchase the Notes for any reason permitted under
this Agreement.

 

    	31

    	 

    

 

11.           Notices,
etc. All statements, requests, notices and agreements hereunder shall be in writing, and:

 

(a)          if
to any Initial Purchasers, shall be delivered or sent by hand delivery, mail, overnight courier or facsimile transmission to GMP
Securities L.L.C., 331 Madison Ave., 12th Floor, New York City, New York 10017, Attention: Debt Capital Markets (Fax: (416) 943-6160),
with a copy to Latham & Watkins LLP, 811 Main Street, Suite 3700, Houston, Texas 77002, Attention: David J. Miller (Fax: (713)
546-5401); or

 

(b)          if
to the Company Parties, shall be delivered or sent by hand delivery, mail, overnight courier or facsimile transmission to American
Eagle Energy Corporation, 2549 W. Main Street, Suite 202, Littleton, Colorado, 80120, Attention: Marty Beskow (Fax: (303) 798-5767),
with a copy to Baker Hostetler LLP, 600 Anton Blvd., Suite 900, Costa Mesa, California 92626, Attention: Randolf W. Katz (Fax:
(714) 966-8802).

 

Any such statements,
requests, notices or agreements shall take effect at the time of receipt thereof.

 

12.          Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the Initial Purchasers,
the Company Parties and their respective successors. This Agreement and the terms and provisions hereof are for the sole benefit
of only those persons, except that the representations, warranties, indemnities and agreements of the Company Parties contained
in this Agreement shall also be deemed to be for the benefit of affiliates, directors, officers and employees of the Initial Purchasers
and each person or persons, if any, controlling any Initial Purchaser within the meaning of Section 15 of the Securities Act. Nothing
in this Agreement is intended or shall be construed to give any person, other than the persons referred to in this Section 12,
any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.

 

13.         Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of the Company Parties and the Initial
Purchasers contained in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall survive
the delivery of and payment for the Notes and shall remain in full force and effect, regardless of any termination of this Agreement
or any investigation made by or on behalf of any of them or any person controlling any of them.

 

14.         Definition
of the Terms “Business Day,” “Affiliate,” and “Subsidiary.” For purposes of this Agreement,
(a) “business day” means any day on which the New York Stock Exchange, Inc. is open for trading, and (b) “affiliate”
and “subsidiary” have the meanings set forth in Rule 405 under the Securities Act.

 

15.         Governing
Law & Venue. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be
governed by and construed in accordance with the laws of the State of New York. Each Company Party and each of the Initial
Purchasers agree that any suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in any State or U.S. federal court in The City of New York and County of New York, and waives any objection
that such party may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the exclusive
jurisdiction of such courts in any suit, action or proceeding.

 

    	32

    	 

    

 

16.         Waiver
of Jury Trial. The Company and each of the Initial Purchasers hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.

 

17.         No
Fiduciary Duty. The Company Parties acknowledge and agree that in connection with this offering, or any other services the
Initial Purchasers may be deemed to be providing hereunder, notwithstanding any preexisting relationship, advisory or otherwise,
between the parties or any oral representations or assurances previously or subsequently made by the Initial Purchasers: (a) no
fiduciary or agency relationship between the Company Parties and any other person, on the one hand, and the Initial Purchasers,
on the other, exists; (b) the Initial Purchasers are not acting as advisors, expert or otherwise, to the Company Parties, including,
without limitation, with respect to the determination of the purchase price of the Notes, and such relationship between the Company
Parties, on the one hand, and the Initial Purchasers, on the other, is entirely and solely commercial, based on arms-length negotiations;
(c) any duties and obligations that the Initial Purchasers may have to the Company Parties shall be limited to those duties and
obligations specifically stated herein; (d) the Initial Purchasers and their respective affiliates may have interests that differ
from those of the Company Parties; and (e) the Company Parties have consulted their own legal and financial advisors to the extent
they deemed appropriate. The Company Parties hereby waive any claims that the Company Parties may have against the Initial Purchasers
with respect to any breach of fiduciary duty in connection with the Notes.

 

18.         Counterparts.
This Agreement may be executed in one or more counterparts and, if executed in more than one counterpart, the executed counterparts
shall each be deemed to be an original but all such counterparts shall together constitute one and the same instrument.

 

19.         Headings.
The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.

 

    	33

    	 

    

 

If the foregoing correctly
sets forth the agreement among the Company Parties and the Initial Purchasers, please indicate your acceptance in the space provided
for that purpose below.

 

	 	Very truly yours,
	 	 
	 	American Eagle Energy Corporation
	 	 	 
	 	By:	/s/ Brad Colby  
	 	Name:  Brad Colby
	 	Title:  President
	 	 
	 	AMZG, Inc.
	 	 	 
	 	By:	/s/ Brad Colby
	 	Name:  Brad Colby
	 	Title:  President

 

[Purchase Agreement Signature Page]

 

    	 

    	 

    

 

	Accepted:	 
	 	 
	GMP Securities L.P.	 
	Canaccord Genuity Inc.	 
	Global Hunter Securities, LLC	 
	Johnson Rice & Company L.L.C.	 
	 	 
	By: GMP Securities L.P., as Authorized Representative
	 	 
	By:	/s/ Ross Prokopy	 
	    Name:  Ross Prokopy	 
	    Title:  Managing Director	 

 

[Purchase Agreement Signature Page]

 

    	 

    	 

    

 

SCHEDULE I

 

	 	 	Principal	 
	 	 	Amount of	 
	 	 	Notes	 
	 	 	to be	 
	Initial Purchasers	 	Purchased	 
	GMP Securities L.P..	 	$	122,500,000	 
	Canaccord Genuity Inc..	 	 	17,500,000	 
	Global Hunter Securities, LLC.	 	 	17,500,000	 
	Johnson Rice & Company L.L.C.	 	 	17,500,000	 
	Total	 	$	175,000,000	 

 

    	 

    	 

    

 

Schedule
II

 

 

 

American Eagle Energy Corporation

US$175,000,000 11.000% Senior Secured
Notes due 2019

 

August 13, 2014

 

Pricing Supplement

 

Pricing Supplement dated August 13, 2014
to the Preliminary Offering Memorandum dated August 4, 2014 (the “Preliminary Offering Memorandum”) of
American Eagle Energy Corporation (the “Company”). This Pricing Supplement is qualified in its entirety
by reference to the Preliminary Offering Memorandum. The information in this Pricing Supplement supplements the Preliminary Offering
Memorandum and supersedes the information in the Preliminary Offering Memorandum to the extent it is inconsistent with the information
in the Preliminary Offering Memorandum. Capitalized terms used in this Pricing Supplement but not defined have the meanings given
them in the Preliminary Offering Memorandum.

 

	Issuer	American Eagle Energy Corporation
	 	 
	Title of Securities	11.000% Senior Secured Notes due 2019
	 	 
	Aggregate Principal Amount	US$175,000,000
	 	 
	Use of Proceeds	Estimated net proceeds to the Company from the offering will be approximately $167.6 after deducting the initial purchasers’ discounts and commissions and estimated fees. The Company expects to use the net proceeds to repay its existing credit facility in full, with the remainder to be used for general corporate purposes.
	 	 
	Distribution	144A/Regulation S with registration rights
	 	 
	Maturity Date	September 1, 2019
	 	 
	Issue Price	99.059%
	 	 
	Coupon	11.000%
	 	 
	Yield to Maturity	11.250%
	 	 
	Benchmark Treasury	1.625% due July 31, 2019
	 	 
	Spread to Benchmark Treasury	966.94 basis points
	 	 
	Interest Payment Dates	March 1 and September 1 of each year, beginning on March 1, 2015
	 	 
	Ratings*	Caa1 (Moody’s)/ CCC (S&P)
	 	 
	Trade Date	August 13, 2014

 

 

 

    	 

    	 

    

 

	Settlement Date	
        August 27, 2014 (T+10)

         

        We expect that delivery of the Notes will be made against payment
        therefor on or about the 10th business day following the date of confirmation of orders with respect to the Notes (this settlement
        cycle being referred to as “T+10”). Under Rule 15c6-1 of the Commission under the Exchange Act, trades in the secondary
        market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise.
        Accordingly, purchasers who wish to trade the Notes before the Notes are delivered will be required, by virtue of the fact that
        the Notes initially will settle in T+10, to specify an alternative settlement cycle at the time of any such trade to prevent a
        failed settlement. Purchasers of the Notes who wish to trade the Notes before their delivery should consult their own advisor.

	 	 
	Make-Whole Redemption	Make-whole redemption at Treasury Rate + 50 basis points prior to September 1, 2016
	 	 
	Optional Redemption	On or after September 1, 2016, at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest, if any, on the Notes redeemed during the twelve-month period indicated beginning on September 1 of the years indicated below:

 

	 	Year	 	Price	 	 
	 	 	 	 	 	 
	 	2016	 	108.250	%	 
	 	 	 	 	 	 
	 	2017	 	105.500	%	 
	 	 	 	 	 	 
	 	2018 and thereafter	 	100.000	%	 

 

	Equity Clawback	Up to 35% at 111.000% prior to September 1, 2016
	 	 
	Change of Control	101% plus accrued and unpaid interest
	 	 
	Security	The notes and related note guarantee will be secured by a first-priority security interest (subject to certain permitted liens, including liens securing the new senior credit facility to the extent of the value of the collateral secured thereby) on substantially all oil and natural gas properties and other assets, subject to certain exceptions. 
	 	 
	Sole Book-Running Manager	GMP Securities L.P. 
	 	 
	Co-Managers	
        Canaccord Genuity Inc.

        Global Hunter Securities, LLC

        Johnson Rice & Company L.L.C.

	 	 
	CUSIP Numbers	
        Rule 144A: 02554F AA0

         

        Regulation S: U02564 AA7

 

 

 

    	 

    	 

    

 

	ISIN Numbers	
        Rule 144A: US02554FAA03

         

        Regulation S: USU02564AA70

	 	 
	Denominations	Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof

 

*Note: A securities rating is not a recommendation
to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

 

 

This material is strictly confidential
and has been prepared by the Issuer solely for use in connection with the proposed offering of the securities described in the
Preliminary Offering Memorandum. This material is personal to each offeree and does not constitute an offer to any other person
or the public generally to subscribe for or otherwise acquire the securities. Please refer to the Preliminary Offering Memorandum
for a complete description.

 

The securities have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), and are being offered only to (1) “qualified
institutional buyers” as defined in Rule 144A under the Securities Act and (2) outside the United States to non-U.S. persons
in compliance with Regulation S under the Securities Act, and this communication is only being distributed to such persons.

 

This communication is not an offer to sell the securities
and it is not a solicitation of an offer to buy the securities in any jurisdiction to any person to whom it is unlawful to make
such offer or soliciation in such jurisdiction.

 

 

 

    	 

    	 

    

 

SCHEDULE III

 

A.           None.

 

B.           None.

 

    	 

    	 

    

 

Exhibit A

 

Company Counsel Opinion

 

Based on and subject
to the assumptions to be stated in our opinion letter, and subject to the qualifications and limitations to be stated in our opinion
letter, we are of the opinion that:

 

		(1)	Each Company Party is validly existing and in good
standing as a corporation under the laws of the State of Nevada and is duly qualified to do business and in good standing as a
foreign corporation in each jurisdiction and as of the dates listed above in paragraphs [__], [__],[__],[__] and [__] of this
opinion letter. Each Company Party has the requisite corporate power and authority under Chapter 78 of the Nevada Revised Statutes
(the “Nevada General Corporation Law”), the Company Articles, the Guarantor Articles, the Company Bylaws, and
the Guarantor Bylaws necessary to own or hold its properties and to conduct the business in which it is engaged as described in
the Pricing Disclosure Package and the Offering Memorandum.

 

		(2)	No registration under the Securities Act of the Notes
or the Guarantee, and no qualification of the Indenture under the Trust Indenture Act with respect thereto, is required for the
sale of the Notes and the Guarantee to you as contemplated by the Purchase Agreement or for the initial resale of Notes by you
in the Exempt Resales, assuming (i) the accuracy of the Initial Purchasers’ representations in the Purchase Agreement and
(ii) the accuracy of the Company Parties’ representations in the Agreement.

 

		(3)	Each Company Party has all requisite corporate power
and authority under the Nevada General Corporation Law, the Company Articles, the Guarantor Articles, the Company Bylaws, and
the Guarantor Bylaws to execute, deliver, and perform its respective obligations under the Purchase Agreement, the Registration
Rights Agreement, and the Indenture.

 

	(4)	The Purchase Agreement has been duly authorized, executed, and delivered by each Company Party.

 

		(5)	The Indenture has been duly authorized by all necessary
corporate action of each Company Party and has been duly executed and delivered by each Company Party. The Indenture, including
the Guarantee contained therein, is the legally valid and binding agreement of each Company Party, enforceable against it in accordance
with its terms.

 

		(6)	Each of the Collateral Documents and the Intercreditor
Agreement has been duly authorized by all necessary corporate action of each Company Party and has been duly executed and delivered
by each Company Party. Each of the Collateral Documents (other than the Mortgages) and the Intercreditor Agreement is the legally
valid and binding obligation of each Company Party, enforceable against it in accordance with their terms.

 

		(7)	The Notes have been duly authorized by all necessary
corporate action of the Company and, when executed, issued and authenticated in accordance with the terms of the Indenture and
delivered to and paid for by you in accordance with the terms of the Purchase Agreement, will be the legally valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms.

 

    	Exhibit A-1

    	 

    

 

		(8)	The Guarantee has been duly authorized by all necessary
corporate action of the Guarantor and, when the Notes have been executed, issued and authenticated in accordance with the terms
of the Indenture and delivered to and paid for by you in accordance with the terms of the Purchase Agreement, will be the legally
valid and binding obligations of the Guarantor, enforceable against the Guarantor in accordance with its terms.

 

		(9)	The Exchange Notes have been duly authorized by the
Company, and the Guarantee of the Exchange Notes has been duly authorized by the Guarantor.

 

		(10)	The Registration Rights Agreement has been duly authorized,
executed and delivered by each Company Party and is the legally valid and binding agreement of each Company Party, enforceable
against such Company Party in accordance with its terms.

 

		(11)	The Mortgages, solely to the extent governed by the
laws of the State of New York, are enforceable against each Company Party in accordance with their respective terms; provided,
however, that we express no opinion with respect to any provisions of the Mortgages pertaining to the enforceability of
any security interest, pledge, lien, mortgage, or other similar interest in real property that purport to be created by the Mortgages,
the exercise of remedies provided by the laws of any state (other than the State of New York) in which the Mortgaged Property
(as defined in the Mortgages) is located, the foreclosure of the Mortgages with respect to any Mortgaged Property constituting
real property or rights, titles, interests and estates therein, the appointment of receiver with respect to any Mortgaged Property
constituting real property or rights, titles, interests and estates therein, or other in rem
type actions with respect to any Mortgaged Property constituting real property or rights, titles, interests and estates
therein.

 

		(12)	The execution and delivery of the Notes, the Guarantee,
the Exchange Notes, the Exchange Guarantee, the Indenture, the Registration Rights Agreement and the Purchase Agreement and the
issuance and sale of the Notes by the Company and the Guarantee by the Guarantor, in each case to you and the other Initial Purchasers
pursuant to the Purchase Agreement, do not on the date hereof:

 

		(i)	violate the Company Articles, the Company Bylaws,
the Guarantor Articles, or the Guarantor Bylaws; or

 

		(ii)	result in the breach of or a default under any of
the agreements of the Company Parties filed as exhibits to the periodic reports filed by the Company with the Commission pursuant
to the Exchange Act that are listed in (a) Schedule 1 hereto or (b) Schedule 2 hereto; or

 

		(iii)	violate (a) the Nevada General Corporation Law or
any federal statute, rule, or regulation or (b) any court or governmental orders, writs, judgments, or decrees, applicable, in
the case of either (a) or (b), to the Company Parties; or

 

    	Exhibit A-2

    	 

    

 

		(iv)	require any consents, approvals, or authorizations
to be obtained by the Company Parties from, or any registrations, declarations or filings to be made by the Company Parties with,
any governmental authority under the Nevada General Corporation Law or any federal statute, rule, or regulation applicable to
any Company Party that have not been obtained or made;

 

except in the case of clauses
(ii)(b) or (iii)(b) above, for such breach, default, or violation that would not, individually or in the aggregate, be reasonably
expected to have a material adverse effect on the financial condition, business, or results of operations of the Company Parties,
taken as a whole.

 

		(13)	The provisions of the Collateral Documents are sufficient
to create in favor of the Collateral Agent, for the benefit of itself and the holders of the Notes, a security interest in the
right, title, and interest of each Company Party in and to the Collateral (as defined in the Collateral Documents) described therein
in which a security interest can be created exclusively under Article 9 of the Uniform Commercial Code as in effect in the State
of New York (the “New York UCC”). Upon the due execution and delivery of the Collateral Documents by the parties
thereto, a security interest in favor of the Collateral Agent, for the benefit of itself and the holders of the Notes, attaches
to the right, title, and interest of each Company Party in and to the Collateral described in the Collateral Documents in which
a security interest can be created under Article 9 of the New York UCC.

 

		(14)	The provisions of the Pledge Agreement are sufficient
to create in favor of the Collateral Agent, for the benefit of itself and the holders of the Notes, a security interest in the
right, title, and interest of each Company Party in and to the Collateral (as defined in the Pledge Agreement) described therein
in which a security interest can be created exclusively under Article 9 of the New York UCC. Upon the due execution and delivery
of the Pledge Agreement by the parties thereto, a security interest in favor of the Collateral Agent, for the benefit of itself
and the holders of the Notes, attaches to the right, title, and interest of the each Company Party in and to the Collateral described
in the Pledge Agreement in which a security interest can be created under Article 9 of the New York UCC.

 

		(15)	When the UCC-1 Financing Statements are duly filed
in the office of the Secretary of State of the State of Nevada and all required filing fees are paid, the UCC-1 Financing Statements
will be sufficient to perfect a security interest in favor of the Collateral Agent, for the benefit of itself and the holders
of the Notes, in the right, title, and interest of each Company Party in and to the Collateral described in the Collateral Documents
and the UCC-1 Financing Statements in which a security interest may be perfected under Article 9 of the Uniform Commercial Code
as in effect in the State of Nevada (the “Nevada UCC”) by filing financing statements in the office of the
Secretary of State of the State of Nevada.

 

    	Exhibit A-3

    	 

    

 

		(16)	Upon the delivery to the Collateral Agent in the State
of New York of certificates evidencing each pledged equity interest (as described in the Guaranty and Collateral Agreement) constituting
a “certificated security” (as defined in Section 8-102(a) of the New York UCC), together with a stock power executed
in blank with respect thereto, and assuming the Collateral Agent was without notice of any adverse claim (as such term is used
in Section 8-102(a) of the New York UCC) prior to taking possession, the Collateral Agent will possess a perfected security interest
in such pledged equity interest evidenced by the certificates so delivered to the extent that an interest can be perfected therein
by the possession of such certificated securities in the State of New York. Upon the due execution and delivery of the Mortgages
by the parties thereto, a security interest in favor of the Collateral Agent, for the benefit of itself and the holders of the
Notes, attaches to the right, title, and interest of each Company Party in and to the Collateral described in the Mortgages in
which a security interest can be created under Article 9 of the New York UCC and solely to the extent the New York UCC is applicable
thereto.

 

		(17)	Under the Nevada UCC, the execution and delivery by
the parties thereto of each Control Agreement is sufficient to perfect the security interest of the Collateral Agent in each deposit
account of the Company Parties identified on Exhibit A of each respective Control Agreement.

 

		(18)	The transactions contemplated by the Purchase Agreement
do not violate Regulations T, U, or X of the Board of Governors of the Federal Reserve System.

 

		(19)	No Company Party is, and after giving effect to the
offer and sale of the Notes and the application of the proceeds therefrom as described under “Use of Proceeds” in
each of the Pricing Disclosure Package and the Offering Memorandum, will be, an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended,
and the rules and regulations of the Commission thereunder.

 

		(20)	The statements contained in the Pricing Disclosure
Package and the Offering Memorandum under the caption “Description of Notes,” insofar as they purport to constitute
a summary of the terms of the Indenture, the Notes, the Registration Rights Agreement and the Guarantee, are accurate in all material
respects.

 

		(21)	The statements contained in the Pricing Disclosure
Package and the Offering Memorandum under the captions “Business—Hydraulic Stimulation,” “Business—Government
Regulations,” “Certain Transactions with Related Parties,” “Management,” and “Description
of Other Indebtedness,” insofar as they purport to constitute summaries of the terms of statutes, rules, or regulations,
legal and governmental proceedings, or contracts and other documents, constitute accurate summaries of the terms of such statutes,
rules, and regulations, legal and governmental proceedings, and contracts and other documents in all material respects.

 

		(22)	Based solely upon a review on August [__], 2014 of
certificates representing outstanding shares of capital stock of, and stock transfer records for, AMZG, Inc., all of the outstanding
shares of capital stock of AMZG, Inc. were owned of record on that date by the Company.

 

		(23)	To our knowledge, there are no legal or governmental
proceedings pending to which the Company or any of its subsidiaries is a party or of which any property or assets of the Company
or any of its subsidiaries is the subject that could, in the aggregate, reasonably be expected to have a Material Adverse Effect;
and to our knowledge, no such proceedings are threatened or contemplated by governmental authorities or others.

 

    	Exhibit A-4

    	 

    

 

		(24)	The statements contained in the Pricing Disclosure
Package and the Offering Memorandum under the caption “Certain U.S. Federal Income Tax Considerations,” insofar as
they purport to constitute summaries of matters of United States federal tax law and regulations or legal conclusions with respect
thereto, constitute accurate summaries of the matters described therein in all material respects.

 

In rendering such opinions,
we may state that we express no opinion as to the laws of any jurisdiction other than the respective laws of the State of Nevada
and the State of New York and the law of the United States of America, in each case as applicable and in effect on the date hereof,
and that our opinions are limited to those laws, rules, regulations, and judicial decisions that, in our experience, are normally
applicable to transactions of the type contemplated by the Purchase Agreement and that we have deemed necessary to render the opinions
contained herein.

 

We shall also furnish
to the Initial Purchasers a written statement1 addressed to the Initial Purchasers
and dated the Closing Date, to the effect that (y) we have acted as counsel to the Company in connection with the sale to GMP Securities
L.P. and the several Initial Purchasers for whom GMP Securities L.P. is acting as representative by the Company of $175,000,000
in aggregate principal amount of the Notes and the Guarantee by the Guarantor pursuant to the Purchase Agreement, and (z) based
on our participation, review, and reliance as described in our opinion letter, no facts came to our attention that caused us to
believe that:

 

(a)          the
Pricing Disclosure Package, as of the Applicable Time, contained an untrue statement of a material fact or omitted to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; or

 

(b)          the
Offering Memorandum, as of its date or as of the Closing Date, contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading,

 

except that in each case we shall express
no opinion with respect to the financial statements (or related notes or schedules thereto) or other financial or accounting data
or oil and natural gas reserve information contained or incorporated by reference in or omitted from the Pricing Disclosure Package
and the Offering Memorandum. The foregoing opinions and statement shall be qualified by a statement to the effect that we are not
passing upon and we do not assume any responsibility for the accuracy, completeness, or fairness of the statements contained in
the Pricing Disclosure Package or the Offering Memorandum, including the documents incorporated by reference therein, and we make
no representation that we have independently verified the accuracy, completeness, or fairness of such statements, except to the
extent set forth in paragraphs (13), (14) and (17) above.

 

 

1
To be delivered in a separate negative assurance letter.

 

    	Exhibit A-5

    	 

    

 

Exhibit B

 

North Dakota and Montana Counsel Opinion

 

August __, 2014

 

GMP Securities
L.P., as representative for the initial purchasers

331 Madison Avenue, 12th Floor

New York, New York 10017

 

		Re:	Mortgage - Collateral Real Estate Mortgage, Deed of Trust, Indenture, Security Agreement, Fixture
Filing, As-Extracted Collateral Filing, Financing Statement and Assignment of Production dated as of August ___, 2014, together
with all schedules and exhibits in respect thereof ("Mortgages"), by American Eagle Energy Corporation, a Nevada
corporation and AMZG, Inc., a Nevada corporation, collectively “Mortgagors” (collectively referred to hereinafter as
the "Companies") for the benefit of U.S. Bank National Association, as trustee and collateral agent under that certain
indenture dated [____________], 2014 governing the [_________]$ Senior Secured Notes due 2019 of American Eagle Energy Corporation.

 

Ladies and Gentlemen:

 

We have acted as special
North Dakota and Montana counsel for the Companies, in connection with the form of the Mortgages and the UCC-1 Financing Statements
as well as the UCC-1A Financing Statements described on Schedule 1 attached hereto (along with the Indenture, collectively
the "Transaction Documents"). The Mortgages are attached hereto on Schedule 2, with the Certificates of Good Standing
for the Companies set forth on Schedule 3. In rendering the opinions set forth herein, we have examined originals or executed copies
of the Transaction Documents. Capitalized terms used but not defined in this opinion letter (this "Opinion") or
on Schedules 1, 2 and 3 hereto have the meanings given them in the Mortgages.

 

We have also examined
original counterparts or photostatic or certified copies of all other instruments, agreements, certificates, records and other
documents (whether of the Companies, their officers, directors, shareholders, and managers, public officials, or other persons)
which we have considered relevant to the opinions hereinafter expressed. In making this examination we have assumed, with respect
to all documents which we have examined: the genuineness of all signatures thereon, the authenticity of all documents submitted
to us as copies, and the authenticity of the originals of such copies. We have also assumed that each natural person executing
the Transaction Documents has the legal, mental and age capacity to do so. As to certain questions of fact material to such opinions
we have, where such facts were not otherwise verified or established, relied upon the representations of the Companies set forth
in or otherwise incorporated in the Transaction Documents.

 

    	Exhibit B-1

    	 

    

 

In addition, for all
purposes of this opinion, we have assumed, without verification of the truth or accuracy of the same, the following: (i) the Companies
are corporations that are duly organized, validly existing and in good standing under the laws of the State of Nevada; (ii) the
Companies have all requisite power and authority to execute and deliver each Transaction Document and to perform its obligations
thereunder; (iii) the Companies have duly authorized, executed and delivered each Transaction Document; (iv) the Companies are
in good standing and duly authorized to do business in each state (other than North Dakota and Montana) where such authorization
is required; (v) the execution and delivery by the Companies of each Transaction Document and the performance of its obligations
thereunder will not conflict with, result in a breach or violation of, or constitute a default under: (A) any of the terms, provisions
or conditions of the articles or certificate of incorporation or bylaws or other similar constituent documents of the Companies,
or (B) any statute, law, (other than any North Dakota or Montana statute or law) regulation, rule, judgment, writ, injunction,
decree, order or ruling of any court or governmental authority binding on the Companies; (vi) the factual accuracy of all
legal descriptions and information set forth in Exhibit "A" attached to the Mortgages; (vii) the accuracy as to all factual
matters set forth in the Transaction Documents; (viii) that all conditions precedent to the effectiveness of the Transaction Documents
have been satisfied or waived; (ix) there is no action, claim, suit, litigation, proceeding or governmental investigation pending
or threatened against or affecting the Companies that relate to any of the transactions described in or contemplated by the Transaction
Documents; (x) legally sufficient consideration exists with respect to each party to the Transaction Documents; (xi) solely with
respect to the opinions in paragraphs 4 and 5 below, the Companies have all material licenses, authorizations, consents and approvals
required to own, lease and operate the Mortgaged Property and to conduct the business and activities contemplated in the Transaction
Documents; (xii) the Companies have “rights” in the Mortgaged Property or the power to transfer rights in the Mortgaged
Property to Mortgagee in accordance with N.D.C.C. 41-09-13 and MCA 30-9A-203, and the Companies and Mortgagee have given “value”
within the meaning of N.D.C.C. 41-09-13 and MCA 30-9A-203; (xiii) the portions of the lands consisting of goods that are or are
to become fixtures with respect to the Mortgaged Property are and will be located on the real property described in the Mortgages
as Mortgaged Property; (xiv) the Companies have record title to and/or other interests in each item of real property and personal
property comprising the Mortgaged Property in which a security interest is purported to be granted under the Mortgages; and (xv)
the Mortgagee has "control" of all Mortgaged Property which requires control for perfection of the security interest
in such collateral pursuant to the UCC.

 

Based upon the foregoing, we
are of the opinion that:

 

1.          Based
upon the Certificates set forth on Schedule 3, the Companies are in good standing on the date of this opinion in the States of
North Dakota and Montana, and are authorized to conduct their business in such states.

 

2.          The
Mortgages constitute the legal, valid and binding agreements of the Companies, enforceable against the Companies in accordance
with their terms.

 

    	Exhibit B-2

    	 

    

 

3.          Upon
filing of the Mortgages in each of the proper recorder’s offices for the counties in North Dakota and Montana where the Mortgaged
Property is located, with the North Dakota Department of Trust Lands, Minerals Management Division, and the Trust Land Management
Division, Montana Department of Natural Resources and Conservation, in case of oil and gas leases covering mineral interests owned
by the State of North Dakota or Montana (hereinafter "state mineral interests") and filing of the Mortgages with
the proper office of the Bureau of Land Management to the extent any portion of the Mortgaged Property involves oil and gas leases
covering mineral interests owned by the United States of America (hereinafter "federal mineral interests"), the
form of the Mortgages are legally sufficient to create a valid security interest in the Mortgaged Property in favor of Mortgagee,
a valid mortgage Lien on all of the Companies’ rights, titles and interests in that portion of the Mortgaged Property constituting
real property described in the Mortgages as being mortgaged thereby and a valid security interest on As-Extracted Collateral related
to the Mortgaged Property located in the county in which the Mortgaged Property is situated and on all fixtures located on the
real property described as Mortgaged Property in the Mortgages to which a security interest may attach under the Uniform Commercial
Code as enacted in the State of North Dakota and Montana (the "UCC") to secure the Indebtedness. After the recording
and filing of the Mortgages and the proper filing of the UCC-1 Financing Statements and the UCC-1A Financing Statements with the
proper offices and payment of all requisite recording and filing fees, the Lien created by the Mortgages shall be properly recorded
and perfected.

 

4.          Except
for any which have previously been obtained or completed and further, except with respect to the filing of the Mortgages (i) in
each county in the State of North Dakota and Montana where any portion of the Mortgaged Property covered by the Mortgages is located;
(ii) with the applicable office of the North Dakota Department of Trust Lands, Minerals Management Division and the Trust Land
Management Division, Montana Department of Natural Resources and Conservation, to the extent any of the Mortgaged Property covers
state mineral interests; and (iii) with the applicable office of the Bureau of Land Management to the extent any of the Mortgaged
Property covers federal mineral interests and the related filing of the UCC-1 Financing Statements and the UCC-1A Financing Statements
with each of the proper filing offices, no consent or approval by, or notification of any filing with any North Dakota or Montana
state court or governmental authority is or was required pursuant to North Dakota or Montana state law for the execution and delivery
by the Companies of the Transaction Documents or for the consummation of the transactions contemplated thereby.

 

5.          The
execution and delivery by Companies of the Mortgages, and the performance of their obligations thereunder, does not violate any
material law of the State of North Dakota or Montana or any material rule or regulation of any governmental authority or agency
of the State of North Dakota or Montana which is normally applicable to transactions like those provided for in the Mortgages;
provided, however, we otherwise express no opinion about any rule or regulation of any governmental authority or agency of the
State of North Dakota or Montana applicable to, or any license or permit in connection with, the business conducted by the Companies.

 

6.          No
state or local mortgage recording tax, stamp tax, transfer tax or other fee, tax or governmental charge is required to be paid
in the State of North Dakota or Montana in connection with the execution, delivery, filing or recording of the Mortgages, other
than filing and recording fees that must be paid in connection with the filings and recordings of the Mortgages set forth in opinion
paragraph 3 above.

 

    	Exhibit B-3

    	 

    

 

7.          The
acceptance of the Mortgages by Mortgagee, its possession and retention of its rights thereunder, and its presentation of such instruments
for filing and recording as described in paragraph 3 above will not, in and of themselves, require Mortgagee to pay or otherwise
subject Mortgagee to any recording tax, fee or other charge directly or indirectly related to the recording of the Mortgages except
for the customary fee charged by each filing or recording office on a per-page or per-instrument basis.

 

8.          The
form of the descriptions of the Mortgaged Property contained in Exhibit A to the Mortgages is legally sufficient for the purposes
of applicable recording, filing and registration laws of the State of North Dakota and Montana, including for purposes of providing
constructive notice to third parties; provided that we express no opinion as to the accuracy or completeness of any such descriptions.

 

The opinions set forth
above are subject to the following qualifications, comments and exceptions:

 

1.          This
opinion is limited in all respects to the laws of the State of North Dakota, Montana and applicable federal law.

 

2.          Except
as expressly set forth herein, we have made no independent investigation as to the accuracy or completeness of any representation,
warranty, data or other information, written, oral or electronic, made or furnished in connection with the Transaction Documents,
or otherwise, and we have assumed that neither the Transaction Documents nor any other information furnished to us contains any
untrue statement of a material fact or omits to state a material fact necessary to make the statement made therein not misleading.

 

3.          References
herein to our "knowledge" refers to the present, conscious and actual knowledge of lawyers in this firm currently engaged
in providing services to the Companies, and does not imply that we have conducted a general review of our files or other factual
investigation (beyond the examination of the Transaction Documents) relating to the Companies or that any other lawyers in this
firm have been consulted with respect to their knowledge regarding any matter referred to herein. No inference as to the extent
of our knowledge should be drawn from the fact of our representation of the Companies or otherwise.

 

4.          In
rendering this opinion, we have assumed, with your permission and without verification:

 

i.            that
each of the Transaction Documents is enforceable against Mortgagee;

 

ii.           that
the proceeds of the loans or advances made pursuant to the Mortgages will be received by the Companies and used for legitimate
business purposes of the Companies and not for the individual benefit of any person; and

 

iii.          that
any foreclosure sale of property in which the Mortgages grant a lien or security interest will comply with applicable laws governing
foreclosure of liens and security interests and with the terms set forth in the Mortgages.

 

    	Exhibit B-4

    	 

    

 

5.          We
express no opinion as to the following:

 

iv.           the
title to any property described or referred to in the Mortgages, UCC-1 Financing Statements and/or UCC-1A Financing Statements;

 

v.            the
accuracy of the description of any property that the Mortgages, UCC-1 Financing Statements and/or UCC-1A Financing Statements purport
to describe;

 

vi.           the
existence of any Liens in favor of persons other than Mortgagee, in or against any property described in the Mortgages, UCC-1 Financing
Statements and/or UCC-1A Financing Statements;

 

vii.          the
priority of the Liens set out in the Mortgages, UCC-1 Financing Statements and/or UCC-1A Financing Statement; and

 

viii.         the
attachment or enforceability of any security interest in any commercial tort claims or any proceeds of collateral.

 

6.          The
enforceability of the Transaction Documents may be limited by applicable laws relating to bankruptcy, insolvency, reorganization,
receivership, arrangement, fraudulent transfers and conveyances, moratorium or redemption, by other laws relating to or affecting
generally the enforcement of creditors’ rights, or the collection of debtors’ obligations, or by the valid exercise
of the sovereign powers of the United States or any other governmental entity.

 

7.          The
enforceability of the Transaction Documents, including but not limited to the enforceability of any and all rights of acceleration
and rights to payment on demand contained therein, is subject to and may be affected by general principles of equity (regardless
of whether enforcement is sought in proceedings in equity or at law) and the public policies of the United States or any other
governmental entity, and the courts have inherent authority to deny enforcement of any provision thereof on equitable or public
policy grounds.

 

8.          We
express no opinion as to the enforceability of any provisions requiring the payment of any premium, penalty, liquidated damages
or other charge in connection with any prepayment of the Indebtedness.

 

9.          We
express no opinion regarding the treatment of the transactions contemplated by the Transaction Documents under any laws relating
to securities.

 

10.         We
express no opinion with respect to the availability of the remedy of specific performance, appointment of a receiver or an injunction,
or other remedies requiring the exercise of judicial discretion, or as to the effect of any provisions in the Transaction Documents
which purport to entitle Mortgagee to any such remedy as a matter of right.

 

    	Exhibit B-5

    	 

    

 

11.         This
opinion is subject to the effect of the provisions of the UCC and other laws of any state having jurisdiction that relate to, prohibit,
restrict, limit or otherwise affect (i) the rights and remedies available to secured creditors, and (ii) the waiver or variation
by agreement of debtors’ rights under the UCC or other applicable laws.

 

12.         The
enforceability of the Transaction Documents may be subject to an implied covenant of good faith and fair dealing, and the exercise
by Mortgagee of its rights thereunder may be limited by standards of commercial reasonableness.

 

13.         Certain
provisions of the Transaction Documents may be invalid or unenforceable, in whole or in part, but the inclusion of such provisions
does not affect the overall validity of any of the Transaction Documents or preclude (i) the enforcement of the obligations of
the Companies as provided in the Transaction Documents, (ii) the acceleration of the obligations of the Companies to repay such
principal and pay such interest upon a material default or (iii) the foreclosure in accordance with applicable law and pursuant
to the terms of the Mortgages and Transaction Documents, upon a material default.

 

14.         Without
limiting the generality of any of the paragraphs above, we express no opinion as to the enforceability of any provisions in the
Transaction Documents the enforceability of which is conditioned, under applicable law, on their being reasonable or not manifestly
unreasonable or meeting some other subjective standard, or as to the enforceability of any such provisions which, or which purport
to (i) provide for liquidated damages, an increased rate of interest or any other charge in the event of a default; (ii) treat
personal property not physically attached to real estate as part of the real property encumbered by the Mortgages; (iii) treat
goods which have become "fixtures," as defined in Article 9 Section 102 of the UCC as personal property; (iv) waive the
right to notice of acceleration of maturity; (v) authorize entry by Mortgagee without judicial process on any real property, the
sale by Mortgagee of mortgaged real property without judicial process, or other self help remedies for default; (vi) provide for
the payment of a prepayment or yield maintenance premium or penalty, or, to the extent the same may be regarded as a penalty, any
other fee, compensation or liquidated damages, upon any prepayment of principal, whether by acceleration, realization upon collateral,
voluntary prepayment or otherwise; (vii) bind any party to submit to the jurisdiction of any court; (viii) confer jurisdiction
on, or deny jurisdiction to, any court, or authorize any person to confess a judgment against the Companies; (ix) waive any right
to trial by jury, right of set off, right to interpose counterclaims or cross claims, or right to object to venue or assert forum
non-conveniens; (x) provide for indemnification of any person against (A) loss, liability, damage, expense or claims arising under
any environmental laws or (B) consequences of such person’s own actions or omissions to act; (xi) grant Mortgagee or any
other person the power to sign the Companies’ names or otherwise act on behalf of the Companies; (xii) provide for the reinstatement
of terminated liens; (xiii) provide that Mortgagee may sell any personal property collateral without first repossessing it; (xiv)
prevent Mortgagee from waiving rights by delaying or omitting to exercise them, or prevent Mortgagee, by acquiescing in or waiving
one default, from waiving any subsequent default; (xv) render legally effective service of process in a manner not authorized by
applicable law or court rule; (xvi) provide for severance of invalid or unenforceable provisions of any of the Transaction Documents
and for enforcement of the balance of such document; (xvii) prevent amendment of any of the Transaction Documents orally or by
course of conduct; (xviii) require, as a condition to the assertion of a claim or defense based on an action or omission of the
Companies, that notice of that action or omission be given to Mortgagee promptly or within the specified time; or (xix) generally
relieve Mortgagee from liability for any action or omission amounting to gross negligence or willful misconduct.

 

    	Exhibit B-6

    	 

    

 

15.         We
express no opinion as to the accuracy or completeness of any warranty or representation made in any of the Transaction Documents.

 

16.         Any
provisions of the Transaction Documents that purport to cover property to be acquired in the future or to secure indebtedness in
excess of the original principal amount of the Indebtedness (other than reasonable amounts advanced to protect and preserve the
property encumbered by the Mortgage as specifically set forth therein) may not be enforceable as against the rights of intervening
third parties.

 

17.         We
do not opine with respect to any environmental matters generally, and you are specifically advised that we have not examined or
looked into the existence or absence of any hazardous or toxic materials on the Mortgaged Property nor the applicability to or
compliance by the Companies or the Mortgaged Property with any statutes, regulations or policies of any private entity or public
governmental authority having jurisdiction over such matters. Further, we have not reviewed any environmental reports relating
to the Mortgaged Property. We also do not opine with respect to any zoning or land use laws.

 

This opinion
is rendered solely for the benefit of Mortgagee and its legal counsel, and all of their successors and assigns. No copies of this
Opinion may be delivered or furnished to any other party nor may all or portions of this Opinion be quoted, circulated or referred
to in any other document without our prior written consent, except that copies of this Opinion may be provided to any party entitled
to rely upon this Opinion or to any regulatory agency having supervisory authority over any party entitled to rely upon this Opinion,
and except that this Opinion may be used in connection with the assertion of a defense as to which this Opinion is relevant and
necessary or in response to a court order.

 

    	Exhibit B-7Exhibit 10.30

  

Execution Version

 

REGISTRATION
RIGHTS AGREEMENT

by and among

American Eagle Energy Corporation,

 

the Guarantors
party hereto,

and

GMP Securities L.P.,

 

as representative of the Initial Purchasers

 

Dated as of August 27, 2014

 

    	 

    	 

    

  

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of August 27, 2014, by and among American Eagle
Energy Corporation, a Nevada corporation (the “Company”), the entities listed on Schedule A hereto
(collectively, the “Guarantors”), and GMP Securities L.P., as representative of the initial purchasers
listed on Schedule I to the Purchase Agreement (as defined below) (each an “Initial Purchaser” and, collectively,
the “Initial Purchasers”), each of whom has agreed to purchase $175,000,000 aggregate principal amount
of the Company’s 11.0% Senior Secured Notes due 2019 (the “Initial Notes”), fully and unconditionally
guaranteed by the Guarantors (the “Guarantees”) pursuant to the Purchase Agreement (as defined below).
The Initial Notes and the Guarantees are herein collectively referred to as the “Initial Securities.”

 

This Agreement is made
pursuant to the Purchase Agreement, dated August 13, 2014 (the “Purchase Agreement”), by and among the
Company, the Guarantors and the Initial Purchasers (i) for the benefit of the Initial Purchasers and (ii) for the benefit of the
Holders from time to time of Initial Securities, including the Initial Purchasers. In order to induce the Initial Purchasers to
purchase the Initial Securities, the Company has agreed to provide the registration rights set forth in this Agreement.

 

The parties hereby
agree as follows:

 

SECTION 1.      Definitions.
As used in this Agreement, the following capitalized terms shall have the following meanings:

 

Advice:
As defined in the last paragraph of Section 6(c) hereof.

 

Affiliate:
As defined in Rule 144 promulgated by the Commission.

 

Agreement: As
defined in the preamble hereto.

 

Blackout Period:
As defined in the last paragraph of Section 4(a) hereof.

 

Broker-Dealer:
Any broker or dealer registered under the Exchange Act.

 

Business Day:
Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which banking institutions or trust companies located
in New York, New York are authorized or obligated to be closed.

 

Closing Date:
The date of this Agreement.

 

Commission:
The Securities and Exchange Commission.

  

    	 

    	 

    

  

Consummate:
A registered Exchange Offer shall be deemed “Consummated” for purposes of this Agreement upon the occurrence of
(i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange
Securities to be issued in the Exchange Offer, (ii) the maintenance of such Registration Statement continuously effective and the
keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof, and
(iii) the delivery by the Company to the Registrar under the Indenture of Exchange Securities in the same aggregate principal amount
as the aggregate principal amount of Initial Securities that were properly tendered by Holders thereof pursuant to the Exchange
Offer.

 

controlling person:
As defined in Section 8(a) hereof.

 

Exchange Act:
The Securities Exchange Act of 1934, as amended.

 

Exchange Date:
The date that Exchange Securities are delivered by the Company to the Registrar under the Indenture of Exchange Securities in the
same aggregate principal amount as the aggregate principal amount of Initial Securities that were tendered by Holders thereof pursuant
to the Exchange Offer.

 

Exchange Deadline:
As defined in Section 3(b) hereof.

 

Exchange Offer:
An offer registered under the Securities Act by the Company and the Guarantors pursuant to a Registration Statement pursuant
to which the Company offers the Holders of all outstanding Transfer Restricted Securities the opportunity to exchange all such
outstanding Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate principal amount equal
to the aggregate principal amount of the Transfer Restricted Securities tendered in such exchange offer by such Holders with terms
that are identical in all respects to the Transfer Restricted Securities (except that Exchange Securities will not contain transfer
restrictions or terms with respect to any increase in annual interest rate as described herein).

 

Exchange Offer
Registration Statement: The Registration Statement relating to the Exchange Offer, including the related Prospectus,
as defined in Section 3(a) hereof.

 

Exchange Offer
Registration Statement Effectiveness Target Date: As defined in Section 3(a) hereof.

 

Exchange Offer
Registration Statement Suspension Period: As defined in Section 3(c) hereof.

 

Exchange Securities:
The 11.0% Senior Secured Notes due 2019, of the same series under the Indenture as the Initial Securities, to be issued to
Holders in exchange for Transfer Restricted Securities pursuant to this Agreement.

 

FINRA:
The Financial Industry Regulatory Authority, Inc.

 

Guarantees:
As defined in the preamble hereto.

 

Guarantors:
As defined in the preamble hereto.

  

    	-2-

    	 

    

  

Holder:
As defined in Section 2(b) hereof.

 

Indemnified Holder:
As defined in Section 8(a) hereof.

 

Indenture:
The Indenture, dated as of August 27, 2014, by and among the Company, the Guarantors and the Trustee, pursuant to which the
Initial Securities and the Exchange Securities are to be issued, as such Indenture is amended or supplemented from time to time
in accordance with the terms thereof.

 

Initial Notes:
As defined in the preamble hereto.

 

Initial Placement:
The issuance and sale by the Company of the Initial Securities to the Initial Purchasers pursuant to the Purchase Agreement.

 

Initial Purchaser:
As defined in the preamble hereto.

 

Initial Securities:
As defined in the preamble hereto.

 

Person:
An individual, partnership, corporation, limited liability company, trust, unincorporated organization or other legal entity,
or a government or agency or political subdivision thereof.

 

Prospectus:
The prospectus included in a Registration Statement, as amended or supplemented by any prospectus supplement and by all other
amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus.

 

Purchase Agreement:
As defined in the preamble hereto.

 

Registration
Default: As defined in Section 5 hereof.

 

Registration
Statement: Any Exchange Offer Registration Statement or Shelf Registration Statement, which is filed pursuant to
the provisions of this Agreement, in each case, including the Prospectus included therein, all amendments and supplements thereto
(including post-effective amendments) and all exhibits and material incorporated by reference therein.

 

Securities Act:
The Securities Act of 1933, as amended.

 

Shelf Filing
Deadline: As defined in Section 4(a) hereof.

 

Shelf Registration
Effectiveness Target Date: As defined in Section 4(a)(y) hereof.

 

Shelf Registration
Statement: As defined in Section 4(a)(x) hereof.

 

Special Interest:
As defined in Section 5 hereof.

  

    	-3-

    	 

    

  

Transfer Restricted
Securities: Each Initial Security, until the earliest to occur of: (a) the date on which such Initial Security is
exchanged by a Person other than a Broker-Dealer for an Exchange Security in the Exchange Offer; (b) following the exchange by
a Broker-Dealer in the Exchange Offer of an Initial Security for an Exchange Security, the date on which such Exchange Security
is sold to a purchaser who receives from such Broker-Dealer on or prior to the date of such sale a copy of the prospectus contained
in the Exchange Offer Registration Statement; (c) the date on which such Initial Security has been effectively registered under
the Securities Act and disposed of in accordance with the Shelf Registration Statement; and (d) the date on which such Initial
Security is actually sold pursuant to Rule 144; provided that an Initial Security will not cease to be a Transfer Restricted
Security for purposes of the Exchange Offer by virtue of this clause (d).

 

Trust Indenture
Act: The Trust Indenture Act of 1939, as amended.

 

Trustee:
U.S. Bank National Association.

 

Underwritten
Registration or Underwritten Offering: A registration in which securities of the Company are sold to an underwriter
for reoffering to the public.

 

SECTION 2.      Securities
Subject to this Agreement.

 

(a)      Transfer
Restricted Securities. The securities entitled to the benefits of this Agreement are the Transfer Restricted Securities.

 

(b)     Holders of
Transfer Restricted Securities. A Person is deemed to be a holder of Transfer Restricted Securities (a “Holder”)
whenever such Person owns Transfer Restricted Securities.

 

SECTION 3.      Registered
Exchange Offer.

 

(a)Unless the Exchange
Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth in Section 6(a) hereof
have been complied with), the Company and the Guarantors shall (i) cause to be filed with the Commission on or prior to 180 days
after the Closing Date a Registration Statement under the Securities Act relating to the Exchange Securities (other than Transfer
Restricted Securities acquired by any Broker-Dealer directly from the Company) and the Exchange Offer (the “Exchange
Offer Registration Statement”), (ii) use all commercially reasonable efforts to cause such Exchange Offer Registration
Statement to be declared effective by the Commission on or prior to 270 days after the Closing Date (the “Exchange
Offer Registration Statement Effectiveness Target Date”), (iii) in connection with the foregoing, file (A) all pre-effective
amendments to such Exchange Offer Registration Statement as may be necessary in order to cause such Exchange Offer Registration
Statement to become effective, (B) if applicable, a post-effective amendment to such Exchange Offer Registration Statement pursuant
to Rule 430A under the Securities Act and (C) cause all necessary filings in connection with the registration and qualification
of the Exchange Securities to be made under the state securities or blue sky laws of such jurisdictions as are necessary to permit
Consummation of the Exchange Offer; provided that in connection therewith the Company shall not be required to (x) qualify
as a foreign corporation in any jurisdiction in which it would not otherwise be required to so qualify, (y) file a general consent
to service of process in any such jurisdiction, or (z) subject itself to taxation in any jurisdiction in which it would not otherwise
be subject, and (iv) upon the effectiveness of such Exchange Offer Registration Statement, (A) commence the Exchange Offer and
(B) use all commercially reasonable efforts to Consummate the Exchange Offer on or prior to 30 Business Days, or longer, if required
by applicable securities laws, after the date on which the Exchange Offer Registration Statement was declared effective by the
Commission. The Exchange Offer shall be on the appropriate form permitting registration of the Exchange Securities to be offered
in exchange for the Transfer Restricted Securities (other than Transfer Restricted Securities acquired by any Broker-Dealer directly
from the Company) and to permit resales of Transfer Restricted Securities held by Broker-Dealers as contemplated by Section 3(c)
hereof.

  

    	-4-

    	 

    

  

(b)The Company
and the Guarantors shall cause the Exchange Offer Registration Statement to be effective continuously and shall keep the Exchange
Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate
the Exchange Offer; provided, however, that in no event shall such period be less than 20 Business Days after the date notice
of the Exchange Offer is mailed or otherwise delivered to the Holders. The Company shall cause the Exchange Offer to comply with
all applicable federal and state securities laws. No securities other than the Exchange Securities shall be included in the Exchange
Offer Registration Statement. The Company and the Guarantors shall use all commercially reasonable efforts to cause the Exchange
Offer to be Consummated on or prior to 30 Business Days, or longer, if required by applicable securities laws, after the date on
which the Exchange Offer Registration Statement was declared effective by the Commission (such day herein referred to as the “Exchange
Deadline”).

 

(c)The Company
shall indicate in a “Plan of Distribution” section contained in the Prospectus forming a part of the Exchange Offer
Registration Statement that any Broker-Dealer who holds Initial Securities that are Transfer Restricted Securities that were acquired
for its own account as a result of market-making activities or other trading activities (other than Transfer Restricted Securities
acquired directly from the Company), may exchange such Initial Securities pursuant to the Exchange Offer; however, such Broker-Dealer
may be deemed to be an “underwriter” within the meaning of the Securities Act and must, therefore, deliver a prospectus
meeting the requirements of the Securities Act in connection with any resales of the Exchange Securities received by such Broker-Dealer
in the Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by such Broker-Dealer of the Prospectus
contained in the Exchange Offer Registration Statement. Such “Plan of Distribution” section shall also contain all
other information with respect to such resales by Broker-Dealers that the Commission may require in order to permit such resales
pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of Initial
Securities held by any such Broker-Dealer except to the extent required by the Commission.

 

    	-5-

    	 

    

  

The Company and the
Guarantors shall use commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective,
supplemented and amended as required by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available
for resales of Transfer Restricted Securities acquired by Broker-Dealers for their own accounts as a result of market-making activities
or other trading activities, and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time to time, for a period ending on the earlier of (i) 180
days from the date on which the Exchange Offer Registration Statement is declared effective by the Commission and (ii) the date
on which a Broker-Dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities;
provided that the Company may for a period (the “Exchange Offer Registration Statement Suspension Period”)
of up to 45 days in any three-month period, not to exceed 90 days in any calendar year, determine that the Exchange Offer Registration
Statement is not usable under the circumstances relating to corporate developments, public filings with the Commission and similar
events, and suspend the use of the Prospectus that is a part of the Exchange Offer Registration Statement.

 

The Company shall provide
sufficient copies of the latest version of such Prospectus to Broker-Dealers promptly upon request at any time during such 180-day
(or shorter as provided in the foregoing sentence) period in order to facilitate such resales.

 

SECTION 4.      Shelf
Registration.

 

(a)      Shelf Registration.
If (i) the Company and the Guarantors are not (a) required to file an Exchange Offer Registration Statement or (b) permitted
to consummate the Exchange Offer for the Initial Securities; or (ii) with respect to any Holder of Transfer Restricted Securities
that is not an Affiliate of the Issuer or Guarantors (A) such Holder is prohibited by applicable law or Commission policy from
participating in the Exchange Offer, (B) such Holder may not resell the Exchange Securities acquired by it in the Exchange Offer
to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement is
not appropriate or available for such resales by such Holder, or (C) such Holder is a Broker-Dealer and holds Initial Securities
acquired directly from the Company or the Guarantor or one of their Affiliates, then, upon such Holder’s written request
to the Company on or prior to the 20th Business Day following Consummation of the Exchange Offer, the Company and the Guarantors
shall (1) if permitted by law and Commission policy, cause the Transfer Restricted Securities of such Holder to be reissued in
a form that does not bear any restrictive legends relating to the Securities Act and does not have a restrictive CUSIP number so
that such Transfer Restricted Securities may be sold to the public in accordance with Rule 144 under the Securities Act by a person
that is not an Affiliate of the Issuer or any of the Guarantors where no conditions of Rule 144 are then applicable (other than
the holding period requirement in paragraph (d)(1)(ii) of Rule 144 so long as such holding period requirement is satisfied at such
time of such reissue) and (2) in the event the Company cannot or does not comply with the provisions of the foregoing clause within
20 Business Days of the later of (I) the date of receipt by the Issuer of such notice of such Holder and (II) the first to occur
of the Exchange Date and the Exchange Deadline (such later date being a “Shelf Filing Deadline”), then
the Company and the Guarantors shall:

 

(x)as
promptly as practicable cause to be filed a shelf registration statement pursuant to Rule 415 under the Securities Act, which may
be an amendment to the Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”)
on or prior to the Shelf Filing Deadline, which Shelf Registration Statement shall provide for resales of all Transfer Restricted
Securities, the Holders of which shall have provided the information required pursuant to Section 4(b) hereof; and

 

    	-6-

    	 

    

  

(y)use
all commercially reasonable efforts to (A) file such Shelf Registration Statement with the Commission on or prior to 30 days after
the Shelf Filing Deadline and (B) to cause such Shelf Registration Statement to be declared effective by the Commission on or before
the 90th day after the Shelf Filing Deadline (or if such 90th day is not a Business Day, the next succeeding Business Day) (the
“Shelf Registration Effectiveness Target Date”).

 

Each of the Company
and the Guarantors shall keep any such Shelf Registration Statement continuously effective, supplemented and amended as required
by the provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales of Initial
Securities by the Holders of Transfer Restricted Securities by the Holders entitled to the benefit of this Section 4(a), and to
ensure that it conforms in all material respects with the requirements of this Agreement, the Securities Act and the policies,
rules and regulations of the Commission as announced from time to time, for a period of one year following the effective date of
such Shelf Registration Statement (or such shorter period that will terminate when all the Initial Securities covered by such Shelf
Registration Statement have been sold pursuant to such Shelf Registration Statement or may be sold without a restrictive legend
pursuant to Rule 144 under the Securities Act or any successor rule). Each of the Company and the Guarantors shall be deemed not
to have used commercially reasonable efforts to keep the Shelf Registration Statement effective during the requisite period if
any of the Company or the Guarantors voluntarily takes any action that would result in Holders of Transfer Restricted Securities
covered thereby not being able to offer and sell such Transfer Restricted Securities during that period, unless (X) such action
is required by applicable law or Commission policy; or (Y) such action is taken by any of the Company or Guarantors in good faith
and for valid business reasons (not including avoidance of the Company or the Guarantors obligations hereunder) including, but
not limited to, the acquisition or divestiture of assets, so long as the Company and the Guarantors promptly thereafter comply
with the requirements of the last paragraph of Section 6(c) hereof (the period during which the Shelf Registration Statement is
not available under clauses (X) or (Y) above, the “Blackout Period”). The Blackout Period shall not exceed
45 days in any three-month period or 90 days in any twelve-month period.

 

(b)       Provision
by Holders of Certain Information in Connection with the Shelf Registration Statement. No Holder of Transfer Restricted Securities
may include any of its Transfer Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and
until such Holder furnishes to the Company in writing, within ten Business Days after receipt of a request therefor, such information
as the Company may reasonably request for use in connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. Each Holder as to which any Shelf Registration Statement is being effected agrees to furnish promptly
to the Company all information required to be disclosed in order to make the information previously furnished to the Company by
such Holder not materially misleading.

  

    	-7-

    	 

    

  

SECTION 5.     Special
Interest. If (i) the Company and the Guarantors fail to file either (A) an Exchange Offer Registration Statement prior to the
Exchange Deadline or (B) the Shelf Registration Statement prior to the Shelf Deadline, (ii) either (A) the Exchange Offer Registration
Statement filed by the Company is not declared effective by the Commission prior to the Exchange Offer Registration Statement Effectiveness
Target Date or (B) the Shelf Registration Statement filed by the Company is not declared effective by the Commission prior to the
Shelf Registration Effectiveness Target Date, (iii) the Exchange Offer is not Consummated on or prior to 30 Business Days after
the Exchange Offer Registration Statement Effectiveness Target Date or (iv) a Shelf Registration Statement applicable to the Transfer
Restricted Securities required to be filed by the terms of this Agreement is declared effective (or automatically becomes effective)
as required but thereafter fails to remain effective or becomes unusable in connection with resales for more than 30 calendar days,
excluding any Blackout Period (each such event referred to in clauses (i) through (iv) above, a “Registration Default”),
the Company hereby agree that the interest rate borne by the Transfer Restricted Securities shall be increased by 0.25% per annum
for the first 90-day period immediately following the Exchange Deadline and by an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case for the period of occurrence of the Registration Default, up to a maximum Special Interest
rate of 1.00% per annum thereafter (“Special Interest”), until the earlier of the consummation of the
Exchange Offer and such time as no Registration Default is in effect, plus such additional amount of time as is required under
the last sentence of Section 6(c), upon which Special Interest will cease to accrue and the interest rate on the Transfer Restricted
Securities will revert to the original rate; provided, however, that, if after the date such Special Interest ceases to
accrue, another Registration Default occurs, Special Interest will again commence accruing pursuant to the foregoing provisions.
In no event will Special Interest accrue under more than one of the foregoing clauses (i), (ii) and (iii) at any one time; provided,
however, that the amount of Special Interest accruing on the Transfer Restricted Securities shall not exceed, in any event,
1.00% per annum. The obligations of the Company and the Guarantors to pay Special Interest as set forth in this Section 5 shall
be the sole and exclusive remedy of the Holders for any Registration Default.

 

All obligations of
the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted
Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations
with respect to such security shall have been satisfied in full.

  

    	-8-

    	 

    

  

SECTION 6.      Registration
Procedures.

 

(a)       Exchange
Offer Registration Statement. In connection with the Exchange Offer, the Company and the Guarantors shall comply with all of
the applicable provisions of Section 6(c) hereof, shall use commercially reasonable efforts to effect such exchange to permit the
sale of Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof. As
a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer Restricted
Securities shall furnish, upon the request of the Company, prior to the Consummation thereof, a written representation to the Company
(which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that
(A) it is not an affiliate (within the meaning of Rule 405 under the Securities Act) of the Company or the Guarantors, (B) it is
not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in, a
distribution (within the meaning of the Securities Act) of the Exchange Securities to be issued in the Exchange Offer and (C) it
is acquiring the Exchange Securities in its ordinary course of business. In addition, all such Holders of Transfer Restricted Securities
shall otherwise cooperate in the Company’s preparations for the Exchange Offer. Each Holder hereby acknowledges and agrees
that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the securities to be acquired
in the Exchange Offer (1) could not under Commission policy as in effect on the date of this Agreement rely on the position of
the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation
(available May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar
no-action letters, and (2) must comply with the registration and prospectus delivery requirements of the Securities Act in connection
with a secondary resale transaction and that such a secondary resale transaction should be covered by an effective registration
statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K if the
resales are of Exchange Securities obtained by such Holder in exchange for Initial Securities acquired by such Holder directly
from the Company.

 

(b)       Shelf Registration
Statement. In connection with any Shelf Registration Statement, each of the Company and the Guarantors shall comply with all
the provisions of Section 6(c) hereof and shall use commercially reasonable efforts to effect such registration to permit the sale
of the Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof, and
pursuant thereto each of the Company and the Guarantors will as expeditiously as possible, when required, prepare and file with
the Commission a Registration Statement relating to the registration on any appropriate form under the Securities Act, which form
shall be available for the sale of the Transfer Restricted Securities in accordance with the intended method or methods of distribution
thereof.

 

(c)       General Provisions.
In connection with any Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of
Transfer Restricted Securities (including, without limitation, any Registration Statement and the related Prospectus required to
permit resales of Initial Securities by Broker-Dealers), each of the Company and the Guarantors shall:

 

(i)      use
commercially reasonable efforts to keep such Registration Statement continuously effective and provide all requisite financial
statements (including, if required by the Securities Act or any regulation thereunder, financial statements of the Guarantors)
for the period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event that would cause any such Registration
Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and
usable for resale of Transfer Restricted Securities during the period required by this Agreement, the Company shall file promptly
an appropriate amendment to such Registration Statement (or file with the Commission a document to be incorporated by reference
into the Registration Statement), in the case of clause (A), correcting any such misstatement or omission, and, in the case of
either clause (A) or (B), use commercially reasonable efforts to cause such amendment to be declared effective and such Registration
Statement and the related Prospectus to become usable for their intended purposes as soon as practicable thereafter, subject to
the provisions applicable to Exchange Offer Registration Statement Suspension Periods and Blackout Periods and the last paragraph
hereof;

  

    	-9-

    	 

    

 

(ii)     prepare
and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement as may be necessary
to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as applicable, or such
shorter period as will terminate when all Transfer Restricted Securities covered by such Registration Statement have been sold;
cause the Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule
424 under the Securities Act, and to comply fully with the applicable provisions of Rules 424, 430A and 430B under the Securities
Act in a timely manner; and comply in all material respects with the provisions of the Securities Act with respect to the disposition
of all securities covered by such Registration Statement during the applicable period in accordance with the intended method or
methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus;

 

(iii)     in
the case of a Shelf Registration Statement, advise the underwriters, if any, and selling Holders promptly and, if requested by
such Persons, to confirm such advice in writing, (A) when the Prospectus or any prospectus supplement or post-effective amendment
has been filed, and, with respect to any Registration Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or supplements to the
Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Securities Act or of the suspension by any state securities commission of
the qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding
for any of the preceding purposes, and (D) of the existence of any fact or the happening of any event that makes any statement
of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated
by reference therein untrue, or that requires the making of any additions to or changes in the Registration Statement or the Prospectus
in order to make the statements therein (with respect to the Prospectus, in light of the circumstances under which they were made)
not misleading. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement,
or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption
from qualification of the Transfer Restricted Securities under state securities or blue sky laws, each of the Company and the Guarantors
shall use commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time;

  

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(iv)     in
the case of a Shelf Registration Statement, furnish without charge to each of the Initial Purchasers, each selling Holder named
in any Registration Statement if so requested by such Holder, and each underwriter, if any, before filing with the Commission,
copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration
Statement or Prospectus (including all documents incorporated by reference after the initial filing of such Registration Statement),
which documents will be subject to the review and comment of such Holders and underwriters in connection with such sale, if any,
for a period of at least five Business Days, and the Company will not file any such Registration Statement or Prospectus or any
amendment or supplement to any such Registration Statement or Prospectus (including all such documents incorporated by reference)
to which an Initial Purchaser of Transfer Restricted Securities covered by such Registration Statement or the underwriters, if
any, shall reasonably object in writing within five Business Days after the receipt thereof (such objection to be deemed timely
made upon confirmation of telecopy transmission within such period); provided, that this clause (iv) shall not apply to
any filing by the Company of any annual report on Form 10-K, quarterly report on Form 10-Q or Current Report on Form 8-K with respect
to matters unrelated to the Initial Securities, the Transfer Restricted Securities and the Exchange Securities and the offering
or exchange therefor. The objection of an Initial Purchaser or an underwriter, if any, shall be deemed to be reasonable if such
Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains a material misstatement
or omission;

 

(v)      in
the case of a Shelf Registration Statement, make available during normal business hours for inspection by the Initial Purchasers,
the managing underwriters, if any, participating in any disposition pursuant to such Registration Statement and any attorney or
accountant retained by such Initial Purchasers or any of the underwriters, all financial and other records, pertinent corporate
documents and properties of each of the Company and the Guarantors and cause the Company’s and the Guarantors’ officers,
directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney or accountant
in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof (and each
such Person shall agree that it will keep such information confidential and not disclose any such records, documents, properties
or information unless (A) the disclosure of such records, documents, properties or information is, in the opinion of counsel to
such Person, necessary to avoid or correct a misstatement or omission in such Registration Statement, (B) the release of such records,
documents, properties or information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, (C)
the records, documents, properties or information in such records is public or has been made generally available to the public
other than as a result of a disclosure or failure to safeguard by such Person or (D) disclosure of such records, documents, properties
or information is, in the opinion of counsel for any such Person, necessary or advisable in connection with any action, claim,
suit or proceeding, directly or indirectly, involving such Person and arising out of, based upon, related to, or involving this
Agreement, or any transaction contemplated hereby or arising hereunder) and prior to its effectiveness and to participate in meetings
with investors to the extent requested by the managing underwriters, if any, if in connection with the Underwritten Offering of
Transfer Restricted Securities of an aggregate principal amount of $100,000,000 or greater;

  

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(vi)      in
connection with an Underwritten Offering, if requested by any selling Holders or the underwriters, if any, promptly incorporate
in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information
as such selling Holders and underwriters, if any, may reasonably request to have included therein, including, without limitation,
information relating to the “Plan of Distribution” of the Transfer Restricted Securities, information with respect
to the principal amount of Transfer Restricted Securities being sold to such underwriters, the purchase price being paid therefor
and any other terms of the offering of the Transfer Restricted Securities to be sold in such offering; and make all required filings
of such prospectus supplement or post-effective amendment as soon as practicable after the Company are notified of the matters
to be incorporated in such prospectus supplement or post-effective amendment, subject to the provisions applicable to the Exchange
Offer Registration Statement Suspension Periods and Blackout Periods and the last paragraph hereof;

 

(vii)     in
the case of a Shelf Registration Statement, furnish to each Initial Purchaser, each selling Holder if requested and each of the
underwriters, if any, without charge, at least one copy of the Registration Statement, as first filed with the Commission, and
of each amendment thereto, including financial statements and schedules, but without all documents incorporated by reference therein
or exhibits thereto (including exhibits incorporated therein by reference), unless requested;

 

(viii)    in
the case of a Shelf Registration Statement, deliver to each selling Holder if requested and each of the underwriters, if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such
Persons reasonably may request; each of the Company and the Guarantors hereby consents to the use of the Prospectus and any amendment
or supplement thereto by each of the selling Holders and each of the underwriters, if any, in connection with the offering and
the sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto;

 

(ix)       in
the case of a Shelf Registration Statement, enter into such customary agreements (including an underwriting agreement in form,
scope and substance as is customary in underwritten offerings of debt securities similar to the Transfer Restricted Securities,
as may be appropriate in the circumstances), and make such representations and warranties, and take all such other actions in connection
therewith as is customary in offerings of debt securities similar to the Transfer Restricted Securities in order to expedite or
facilitate the disposition of the Transfer Restricted Securities pursuant to any Registration Statement contemplated by this Agreement,
all to such extent as may be reasonably requested by any Initial Purchaser or by any Holder of Transfer Restricted Securities or
underwriter in connection with any sale or resale pursuant to any Registration Statement contemplated by this Agreement; and, whether
or not an underwriting agreement is entered into and whether or not the registration is an Underwritten Registration, each of the
Company and the Guarantors shall:

  

    	-12-

    	 

    

  

(A)      furnish
to each Initial Purchaser, each selling Holder and each underwriter, if any, in such substance and scope as they may request and
as are customarily made by issuers to underwriters in primary underwritten offerings, upon the effectiveness of the Shelf Registration
Statement:

 

(1)      a
certificate, dated the date of effectiveness of the Shelf Registration Statement signed by (x) the Chief Executive Officer, President
or any Vice President and (y) the principal financial or accounting officer of each of the Company and the Guarantors confirming,
as of the date thereof, the matters set forth in Section 7(k) of the Purchase Agreement (to the extent applicable) and such other
matters as such parties may reasonably request;

 

(2)      an
opinion, dated the date of effectiveness of the Shelf Registration Statement, as the case may be, of counsel for the Company and
the Guarantors, covering the matters set forth in Exhibit A to the Purchase Agreement and such other matter as such parties may
reasonably request, and in any event including a statement to the effect that such counsel has participated in conferences with
officers and other representatives of the Company and the Guarantors, representatives of the independent registered public accounting
firm for the Company and the Guarantors, representatives of the underwriters, if any, and counsel to the underwriters, if any,
in connection with the preparation of such Shelf Registration Statement and the related Prospectus and have considered the matters
required to be stated therein and the statements contained therein, although such counsel has not independently verified the accuracy,
completeness or fairness of such statements; and that such counsel advises that, on the basis of the foregoing, no facts came to
such counsel’s attention that caused such counsel to believe that the Shelf Registration Statement, at the time such Shelf
Registration Statement or any post-effective amendment thereto became effective, contained an untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or
that the Prospectus contained in such Registration Statement as of its date contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. Without limiting the foregoing, such counsel may state further that such counsel assumes no responsibility
for, and has not independently verified, the accuracy, completeness or fairness of the financial statements, notes and schedules
and other financial, accounting and reserve data included in any Shelf Registration Statement contemplated by this Agreement or
the related Prospectus;

  

    	-13-

    	 

    

  

(3)      a
customary comfort letter, dated the date of effectiveness of the Shelf Registration Statement, from the Company’s independent
registered public accounting firm, in the customary form and covering matters of the type customarily requested to be covered in
comfort letters by underwriters in connection with primary underwritten offerings, and covering or affirming the matters set forth
in the comfort letters delivered pursuant to Section 7(f) of the Purchase Agreement, without exception, provided that to
be an addressee of the comfort letter, if requested by the applicable accounting firm, each Initial Purchaser, underwriter and
selling Holder may be required to confirm that it is in the category of person to whom a comfort letter may be delivered in accordance
with applicable accounting literature; and

 

(4)      a
customary comfort letter, dated the date of effectiveness of the Shelf Registration Statement, from any of the Company’s
independent petroleum engineers whose reports are referenced in the Shelf Registration Statement or any document incorporated by
reference into the Shelf Registration Statement, in the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in connection with primary underwritten offerings.

 

(B)      set
forth in full or incorporate by reference in the underwriting agreement, if any, the indemnification provisions and procedures
of Section 8 hereof with respect to all parties to be indemnified pursuant to said Section; and

 

(C)      deliver
such other documents and certificates as may be reasonably requested by such parties to evidence compliance with Section 6(c)(ix)(A)
hereof and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company
or any of the Guarantors pursuant to this Section 6(c)(ix), if any.

 

If at any time the representations
and warranties of the Company and the Guarantors contemplated in Section 6(c)(ix)(A)(1) hereof cease to be true and correct, the
Company or the Guarantors shall so advise the Initial Purchasers and the underwriters, if any, and each selling Holder promptly
and, if requested by such Persons, shall confirm such advice in writing;

 

(x)      in
the case of a Shelf Registration Statement, prior to any public offering of Transfer Restricted Securities pursuant to a Shelf
Registration Statement, cooperate with the selling Holders, the underwriters, if any, and their respective counsel in connection
with the registration and qualification of the Transfer Restricted Securities under the state securities or blue sky laws of such
jurisdictions as the selling Holders or underwriters, if any, may reasonably request and do any and all other acts or things necessary
or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration
Statement; provided, however, that none of the Company nor the Guarantors shall be required to register or qualify as a
foreign entity where it is not then so qualified or to take any action that would subject it to the service of process in suits
or to taxation in any jurisdiction where it is not then so subject;

 

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(xi)      shall
issue, upon the request of any Holder of Initial Securities covered by the Exchange Offer Registration Statement, in connection
with the Consummation of the Exchange Offer and in accordance with the Indenture, Exchange Securities having an aggregate principal
amount equal to the aggregate principal amount of Initial Securities surrendered to the Company by such Holder in exchange therefor;

 

(xii)     in
connection with an Underwritten Offering, cooperate with the selling Holders and the underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive
legends; and enable such Transfer Restricted Securities to be in such denominations and registered in such names as the Holders
or the underwriters, if any, may request at least two Business Days prior to any sale of Transfer Restricted Securities made by
such Holders or underwriters;

 

(xiii)    in
the case of a Shelf Registration Statement, use commercially reasonable efforts to cause the Transfer Restricted Securities covered
by the Registration Statement to be registered with or approved by such other domestic governmental agencies or authorities as
may be necessary to enable the seller or sellers thereof or the underwriters, if any, to consummate the disposition of such Transfer
Restricted Securities, subject to the proviso contained in Section 6(c)(x) hereof;

 

(xiv)    if
any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or have occurred, prepare a supplement or post-effective
amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading, subject to the provisions applicable to Exchange Offer
Registration Statement Suspension Periods and Blackout Periods and the last paragraph hereof;

 

(xv)     provide
a CUSIP number for all Exchange Securities not later than the effective date of the Registration Statement covering such Exchange
Securities and provide the Trustee under the Indenture with printed certificates for such Exchange Securities which are in a form
eligible for deposit with the Depository Trust Company and take all other action reasonably necessary to ensure that all such Exchange
Securities are eligible for deposit with the Depository Trust Company;

 

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(xvi)     cooperate
and assist in any filings required to be made with the FINRA and in the performance of any due diligence investigation by any underwriter
(including any “qualified independent underwriter” as that term is defined within the rules and regulations of the
FINRA) that is required to be retained in accordance with the rules and regulations of the FINRA;

 

(xvii)    otherwise
use commercially reasonable efforts to comply in all material respects with all applicable rules and regulations of the Commission,
and make generally available to its security holders, as soon as reasonably practicable, a consolidated earnings statement meeting
the requirements of Rule 158 under the Securities Act (which need not be audited) for the twelve-month period (A) commencing at
the end of any fiscal quarter in which Transfer Restricted Securities are sold to underwriters in a firm commitment or best efforts
Underwritten Offering or (B) if not sold to underwriters in such an offering, beginning with the first month of the Company’s
first fiscal quarter commencing after the effective date of the Registration Statement;

 

(xviii)   cause
the Indenture to be qualified under the Trust Indenture Act not later than the effective date of the first Registration Statement
required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of the Initial Securities
to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of
the Trust Indenture Act; and to execute and use commercially reasonable efforts to cause the Trustee to execute, all documents
that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable
such Indenture to be so qualified in a timely manner; and

 

(xix)      in
the case of a Shelf Registration Statement, cause all Transfer Restricted Securities covered by such Shelf Registration Statement
to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then
listed if requested by the Holders of a majority in aggregate principal amount of Initial Securities or the managing underwriters,
if any.

 

Each Holder agrees
by acquisition of a Transfer Restricted Security that, upon receipt of any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof or any Exchange Offer Registration Statement Suspension Period described in
Section 3(c) or any Blackout Period described in Section 4(a) hereof, such Holder will forthwith discontinue disposition of Transfer
Restricted Securities pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xiv) hereof, or until it is advised in writing (the “Advice”)
by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings
that are incorporated by reference in the Prospectus. If so directed by the Company, each Holder will deliver to the Company (at
the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of receipt of such notice. In the event the Company shall
give any such notice, the time period regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof,
as applicable, shall be extended by the number of days during the period from and including the date of the giving of such notice
pursuant to Section 6(c)(iii)(D) hereof or notice of any Exchange Offer Registration Statement Suspension Period and Blackout Period
to and including the date when each selling Holder covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xiv) hereof or shall have received the Advice.

  

    	-16-

    	 

    

  

SECTION 7.      Registration
Expenses.

 

(a)      All expenses
incident to the Company’s and the Guarantors’ performance of or compliance with this Agreement will be borne by the
Company and the Guarantors, jointly and severally, regardless of whether a Registration Statement becomes effective, including,
without limitation: (i) all registration and filing fees and expenses (including filings made by any Initial Purchaser or Holder
with the FINRA (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its counsel
that may be required by the rules and regulations of the FINRA)); (ii) all fees and expenses of compliance with federal securities
and state securities or blue sky laws; (iii) all expenses of printing (including printing certificates for the Exchange Securities
to be issued in the Exchange Offer and printing of Prospectuses), if any, messenger and delivery services and telephone; (iv) all
fees and disbursements of counsel and local counsel for the Company, the Guarantors and, subject to Section 7(b) hereof, the Holders
of Transfer Restricted Securities; (v) all fees and disbursements of independent registered public accounting firms of the Company
and the Guarantors (including the expenses of any special audit and comfort letters required by or incident to such performance);
(vi) all application and filing fees in connection with listing the Exchange Securities on a securities exchange or automated quotation
system pursuant to the requirements thereof; and (vii) all fees and disbursements of the Trustee and its counsel; provided
that all underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of a Holder’s
Transfer Restricted Securities pursuant to a Shelf Registration Statement shall be the responsibility of each Holder.

 

Each of the Company
and the Guarantors will, in any event, bear its internal expenses (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of
any Person, including special experts, retained by the Company or the Guarantors.

 

(b)      In connection
with any Shelf Registration Statement required by this Agreement, the Company and the Guarantors, jointly and severally, will reimburse
the Initial Purchasers and the Holders of Transfer Restricted Securities being registered pursuant to the Shelf Registration Statement,
as applicable, for the reasonable fees and disbursements of not more than one counsel, who shall be Latham & Watkins LLP or
such other counsel as may be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for
whose benefit such Registration Statement is being prepared.

  

    	-17-

    	 

    

 

SECTION 8.      Indemnification.

 

(a)      The Company
and the Guarantors, jointly and severally, agree to indemnify and hold harmless (i) each Holder and (ii) each Person, if any, who
controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons
referred to in this clause (ii) being hereinafter referred to as a “controlling person”) and (iii) the
respective officers, directors, partners, employees, representatives and agents of any Holder or any controlling person (any Person
referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”),
to the fullest extent lawful, from and against any and all losses, claims, damages or liabilities (or actions in respect thereof)
including, without limitation, and as incurred, reimbursement of each such Indemnified Holder for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim damage, liability or action, joint or several,
directly or indirectly arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained
in any Registration Statement or Prospectus (or any amendment or supplement thereto), or any omission or alleged omission to state
therein a material fact required to be stated therein (in the case of the Registration Statement or any amendment or supplement
thereto) or necessary to make the statements therein (with respect to the Prospectus, in light of the circumstances under which
they were made) not misleading, except insofar as such losses, claims, damages, liabilities or actions are caused by an untrue
statement or omission or alleged untrue statement or omission that is made in reliance upon and in conformity with information
relating to any of the Holders furnished in writing to the Company by any of the Holders expressly for use therein. This indemnity
agreement shall be in addition to any liability which the Company or any of the Guarantors may otherwise have.

 

In case any action
or proceeding (including any governmental or regulatory investigation or proceeding) shall be brought or asserted against any of
the Indemnified Holders with respect to which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder
(or the Indemnified Holder controlled by such controlling person) shall promptly notify the Company and the Guarantors in writing;
provided, however, that the failure to give such notice shall not relieve the Company or any of the Guarantors of their
respective obligations pursuant to this Agreement. Such Indemnified Holder shall have the right to employ its own counsel in any
such action and the fees and expenses of such counsel shall be paid, as incurred, by the Company and the Guarantors (regardless
of whether it is ultimately determined that an Indemnified Holder is not entitled to indemnification hereunder). The Company and
the Guarantors shall not, in connection with any one such action or proceeding or separate but substantially similar or related
actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for such
Indemnified Holders, which firm shall be reasonably designated by the Holders. The Company and the Guarantors shall not be liable
to any indemnified party for any settlement or compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether
or not the indemnified parties are actual or potential parties to such claim, action, suit or proceeding) unless such settlement,
compromise or consent is consented to by the Company and the Guarantors in writing. The Company and the Guarantors shall not, without
the prior written consent of each Indemnified Holder (which shall not be unreasonably withheld, delayed, denied or conditioned),
settle or compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, claim,
litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any Indemnified
Holder is a party thereto), unless such settlement, compromise, consent or termination (i) includes an unconditional release of
each Indemnified Holder from all liability arising out of such action, claim, litigation or proceeding and (ii) does not include
any statements as to or any findings of fault, culpability or failure to act by or on behalf of any indemnified party.

 

    	-18-

    	 

    

  

(b)      Each Holder
agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors and their respective directors, officers
of the Company and the Guarantors who sign a Registration Statement, and any Person controlling (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) the Company or any of the Guarantors, and the respective officers,
directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from
the Company and the Guarantors to each of the Indemnified Holders, but only with respect to claims and actions based on information
relating to such Holder furnished in writing by such Holder expressly for use in any Registration Statement or Prospectus (or any
amendment or supplement thereto). In case any action or proceeding shall be brought against the Company, the Guarantors or their
respective directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of
Transfer Restricted Securities, such Holder shall have the rights and duties given the Company and the Guarantors, and the Company,
the Guarantors, their respective directors and officers and such controlling person shall have the rights and duties given to each
Holder by the preceding paragraph. This indemnity agreement shall be in addition to any liability that the Holders of Transfer
Restricted Securities may otherwise have.

 

(c)      If the indemnification
provided for in this Section 8 is unavailable to an indemnified party under Section 8(a) or (b) hereof (other than by reason of
exceptions provided in those Sections) in respect of any losses, claims, damages, liabilities or actions referred to therein, then
each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable
by such indemnified party as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect
the relative benefits received by the Company and the Guarantors, on the one hand, and the Holders, on the other hand, from the
Initial Placement (which in the case of the Company and the Guarantors shall be deemed to be equal to the total gross proceeds
to the Company and the Guarantors from the Initial Placement and in the case of the Holders shall be deemed to be equal to the
total discount received by such Holder with respect to the Initial Securities), the amount of Special Interest which did not become
payable as a result of the filing of the Registration Statement resulting in such losses, claims, damages, liabilities or actions,
and such Registration Statement, or if such allocation is not permitted by applicable law, the relative fault of the Company and
the Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements or omissions which resulted
in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative fault of the
Company and the Guarantors on the one hand and of the Indemnified Holder on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or any of the Guarantors, on the one hand, or the Indemnified Holders,
on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and actions
referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 8(a) hereof,
any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action
or claim.

 

    	-19-

    	 

    

  

The Company, the Guarantors
and each Holder agree that it would not be just and equitable if contribution pursuant to this Section 8(c) were determined by
pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable
by an indemnified party as a result of the losses, claims, damages, liabilities or actions referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions
of this Section 8, none of the Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate,
any amount in excess of the amount by which the total discount received by such Holder with respect to the Initial Securities exceeds
the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’
obligations to contribute pursuant to this Section 8(c) are several in proportion to the respective principal amount of Initial
Securities held by each of the Holders hereunder and not joint.

 

SECTION 9.       Rule
144A. Each of the Company and the Guarantors hereby agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding, if the Company is no longer required to file reports under the Exchange Act, to make available upon request
to any Holder or beneficial owner of Transfer Restricted Securities in connection with any sale thereof and any prospective purchaser
of such Transfer Restricted Securities from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under
the Securities Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A under the Securities
Act.

 

SECTION 10.    Participation
in Underwritten Registrations. No Holder may participate in any Underwritten Registration hereunder unless such Holder (a)
agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any underwriting arrangements approved
by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all reasonable questionnaires, powers
of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such underwriting
arrangements.

  

    	-20-

    	 

    

  

SECTION 11.   Selection
of Underwriters. The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who desire to do
so may sell such Transfer Restricted Securities in an Underwritten Offering. In any such Underwritten Offering, the investment
bankers and managing underwriter(s) that will administer such offering will be selected by the Holders of a majority in aggregate
principal amount of the Transfer Restricted Securities included in such offering; provided, however, that such investment
banker(s) and managing underwriters must be reasonably satisfactory to the Company.

 

SECTION 12.    Miscellaneous.

 

(a)      No Inconsistent
Agreements. Each of the Company and the Guarantors will not on or after the date of this Agreement enter into any agreement
with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts
with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s or any of the Guarantors’ securities under any agreement in
effect on the date hereof.

 

(b)      Adjustments
Affecting the Securities. The Company will not take any action, or permit any change to occur, with respect to the Initial
Securities that would materially and adversely affect the ability of the Holders to Consummate any Exchange Offer.

 

(c)      Amendments
and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company has (i) in the case of Section 5 hereof and this Section 12(c)(i),
obtained the written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case of all other provisions
hereof, obtained the written consent of Holders of a majority of the outstanding principal amount of Transfer Restricted Securities
(excluding any Transfer Restricted Securities held by the Company or its Affiliates). Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose securities are being tendered
pursuant to the Exchange Offer and that does not affect directly or indirectly the rights of other Holders whose securities are
not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount
of Transfer Restricted Securities being tendered or registered; provided, however, that, with respect to any matter that
directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of GMP
Securities L.P., as representative of the Initial Purchasers, with respect to which such amendment, qualification, supplement,
waiver, consent or departure is to be effective.

 

(d)      Notices.
All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class
mail (registered or certified, return receipt requested), electronic transmission, or air courier guaranteeing overnight delivery:

 

    	-21-

    	 

    

  

(i)      if
to a Holder, at the address set forth on the records of the Trustee under the Indenture, with a copy to the Trustee under the Indenture;
and

 

(ii)      if to
the Company:

 

			American Eagle Energy Corporation

2549 W. Main Street, Suite 202

Littleton, Colorado 80120

(fax: 303-795-5767)

Attention: Marty Beskow

 

With copies
(which shall not constitute notice) to:

 

Baker Hostetler LLP

600 Anton Blvd., Suite 900

Costa Mesa, California 92626

(fax: 714-966-8802)

Attention: Randolf Katz, Esq.

 

Roberts & Olivia, LLC

2060 Broadway, Suite 250

Boulder, Colorado 80302

(fax: 720-210-5447)

Attention: William Roberts, Esq.

 

(iii)      if
to the Initial Purchasers:

 

GMP Securities L.P.

331 Madison Avenue

New York, New York 10017

(fax: (416) 943-6160)

Attention: Debt Capital Markets

 

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

 

Latham & Watkins LLP

811 Main Street, Suite 3700

Houston, Texas 77002

(fax: (713) 546-5401)

Attention: David J. Miller, Esq.

 

All such notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days
after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if faxed;
and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

  

    	-22-

    	 

    

  

Copies of all such
notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address
specified in the Indenture.

 

(e)      Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties,
including, without limitation, and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities;
provided, however, that this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a Holder
unless and to the extent such successor or assign acquired Transfer Restricted Securities from such Holder.

 

(f)      Counterparts.
This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(g)      Headings.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(h)      Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICTS OF LAW RULES THEREOF.

 

(i)       Severability.
In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be affected or impaired thereby.

 

(j)       Entire Agreement.
This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration
rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such subject matter.

   

[Signature pages follow]

  

    	-23-

    	 

    

  

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.

 

	 	American Eagle Energy Corporation
	 	 
	 	By:	/s/ Brad Colby
	 	 	Name:   Brad Colby
	 	 	Title:     President
	 	 
	 	AMZG, Inc.
	 	 
	 	By:	/s/ Brad Colby
	 	 	Name:   Brad Colby
	 	 	Title:     President

  

[Signature Page to Registration Rights Agreement]

  

    	 

    	 

    

  

The foregoing Registration
Rights Agreement is hereby confirmed and accepted as of the date first above written:

  

GMP SECURITIES L.P.

 

	By	/s/ Ross Prokopy	 
		Name: Ross Prokopy	 
		Title:   Managing Director	 

 

For itself and as Representative of the
several Initial Purchasers named in Schedule I of the Purchase Agreement.

 

[Signature Page to Registration Rights Agreement]

 

    	 

    	 

    

  

SCHEDULE A

 Guarantors

 

AMZG, Inc., a Nevada corporation

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