Document:

STOCK PURCHASE AGREEMENT

 

This Stock Purchase
Agreement (the "Agreement") is made as of the 19th day of August, 2011 by and among Michael Bongiovanni,
an individual resident of the State of North Carolina with the address at 19720 Jetton Road, 3rd Floor, Cornelius,
NC 28031 ("Seller") and James Dale, an individual resident of the State of New York with the address at 234 5th
Avenue, Suite 415, New York, NY (“Buyer”).

 

 

RECITALS

 

A.             
Seller is the owner of 2,560,000 shares of Common Stock of BMX DEVELOPMENT CORP (“BMXD”), a Florida corporation,
quoted on the FINRA’s Over-the-Counter Bulletin Board quotation market under the symbol, “BMXD”.

 

B.              
For valuable consideration and upon the terms and conditions set forth herein, Seller desires to sell and transfer Buyer
2,560,000 shares of Common Stock of BMXD (the “Shares”), and Buyer desires to purchase and acquire the Shares from
Seller.

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter set forth, the parties hereto mutually
agree as follows:

 

AGREEMENT

 

1.     
Purchase and Sale of Shares. Subject to the terms and conditions hereof, Seller will transfer to Buyer, and Buyer
will acquire from Seller, the Shares for the cash payment of One Hundred Twenty Five Thousand dollars ($125,000.00) (the "Purchase
Price").

 

2.     
Delivery of the Purchase Price. The Purchase Price shall be paid as follows:

 

2.1            
Upon receiving the certificate of the Shares, Buyer shall deliver to Seller a cash payment of One Hundred Twenty Five Thousand
dollars ($125,000.00). The cash shall be delivered from the escrow account of Greentree Financial Group, Inc. 

 

3.
Delivery. Upon signing this Agreement, Seller shall deliver to Buyer a stock certificate representing the Shares registered
in name of Seller and such other documentation, including without limitation a fully executed stock power, necessary to immediately
transfer that certificate into the Buyer’s name.

 

4.Representations
and Warranties of Seller. Seller hereby represents and warrants to Buyer as follows:

 

4.1Authority.
Seller is an individual owning 100% of the Shares made the subject herein. This Agreement, when executed and delivered by Seller,
will constitute a valid and legally binding obligation of the Seller, enforceable in accordance with its terms, except as may
be limited to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to
or involving creditors' rights.

 

4.2Title
to Shares. Seller owns beneficially and of record, free and clear of any lien, option or other encumbrance, and has full power
and authority to convey, free and clear of any lien or encumbrance, the Shares and upon delivery of the Purchase Price for such
Shares as provided in this Agreement, Seller will convey to Buyer or at his direction to others, good and valid title thereto,
free and clear of any lien or other encumbrance.

 

 

5.
Representations and Warranties of Buyer. Buyer hereby represents and warrants to Seller as follows:

 

5.1Authorization.
This Agreement, when executed and delivered by Buyer, will constitute a valid and legally binding obligation of the Buyer, enforceable
in accordance with its terms, except as may be limited to applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws or equitable principles relating to or involving creditors' rights.

 

5.2Authority
to Execute and Perform Agreement. Buyer has the full legal right and power and all authority and approvals. If any, required to
enter into, execute and deliver this Agreement and to perform fully Buyers’ obligations hereunder. This Agreement has been
duly executed and delivered by Buyer and is a valid and binding obligation, enforceable in accordance with its terms, except as
may be limited to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating
to or involving creditors' rights. The execution and delivery by Buyer of this Agreement and the performance by Buyer of this
Agreement in accordance with its terms and conditions will not (i) require the approval or consent of any federal, state, local
or other governmental or regulatory body or the approval or consent of any other person; (ii) conflict with or result in any breach
or violation of any of the terms and conditions of, (or with notice or lapse of time or both, conflict with or result in any breach
or violation of any of the terms and conditions of) any judgment or decree applicable to him of the Shares or any instrument,
contract or other agreement to which Buyer is a party.

 

 

6.
Miscellaneous.

 

6.1Governing
Law. This Agreement shall be governed in all respects by the laws of the State of Florida.

 

6.2Survival.
The representations, warranties, covenants, and agreements made herein shall survive any investigation made by any party hereto
and the closing of the transactions contemplated hereby.

 

6.3Successors
and Assigns. Except as otherwise expressly provided herein, and the provision hereof shall inure to the benefit of and be binding
upon the successors, assigns, heirs, executors, administrators of the parties hereto and all subsequent holders of the Shares.

 

6.4.Related
Agreements. This Agreement relates to and is in furtherance of that certain agreement between BMX D, Pancahe LLC, and the members
of Panache dated August , 2010 (the “Panache Agreement”) and is to be read, applied and interpreted consistently with
the Panache Agreement. To the extent there is any differences between the provisions of the two, the terms of the Panache Agreement
shall contro.

 

6.5Entire
Agreement/Amendment. This Agreement, along with the Panache Agreement, and the other documents and agreements delivered pursuant
hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.
This Agreement may only be amended in writing signed by the Seller and the holders of a majority of the outstanding Shares sold
hereunder.

 

 

6.6Notices.
Except as otherwise provided all notices and other communications require or permitted hereunder shall be in writing and shall
be mailed by first-class mail, postage prepaid, addressed to their respective addresses as provided by Buyer and Seller or to
such other address as each may have furnished to the others in writing.

 

6.7Expenses.
Whether or not the transactions contemplated hereby are consummated, each party shall pay its own expenses in connection with
the transaction.

 

6.8Waiver
of Breach or Default. Neither Buyer nor Seller shall waive any right, power or remedy accruing hereunder unless such waiver is
in writing signed by the party to be charged. The waiver of any breach or default hereunder shall not constitute the waiver of
any other breach or default. All remedies under this Agreement or by law or otherwise afforded to Buyer or Seller shall be cumulative
and not alternative.

 

6.9Titles
and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year herein above first written.

 

 

 

SELLER:

 

MICHAEL
BONGIOVANNI (INDIVIDUAL)

 

 

By:
/s/ Michael Bongiovanni

Michael
Bongiovanni

 

 

BUYER:

 

JAMES
DALE (INDIVIDUAL)

 

 

/s/
James Dale

James DaleEX-10.1

Exhibit 10.1

DOUBLE EAGLE PETROLEUM CO.

Common Stock

(par value $0.10 per share)

At Market Issuance Sales Agreement

August 23, 2011

McNicoll, Lewis & Vlak LLC

1251 Avenue of the Americas, 41st Floor

New York, NY 10020

Ladies and Gentlemen:

Double Eagle Petroleum Co., a Maryland corporation (the “Company”), confirms its
agreement (this “Agreement”) with McNicoll, Lewis & Vlak LLC (the “MLV”), as
follows:

1. Issuance and Sale of Shares. The Company agrees that, from time to time during the
term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue
and sell through MLV, shares (the “Placement Shares”) of the Company’s common stock, par
value $0.10 per share (the “Common Stock”); provided however, that in no event shall the
Company issue or sell through MLV such number of Shares that (a) would cause the Company to not
satisfy the eligibility requirements for use of Form S-3 (including Instruction I.B.6. thereof),
(b) exceeds the number of shares of Common Stock registered on the effective Registration Statement
(as defined below) pursuant to which the offering is being made, or (c) exceeds the number of
authorized but unissued shares of the Company’s Common Stock (the lesser of (a), (b), and (c), the
“Maximum Amount”). Notwithstanding anything to the contrary contained herein, the parties
hereto agree that compliance with the limitations set forth in this Section 1 on the amount of
Placement Shares issued and sold under this Agreement shall be the sole responsibility of the
Company and that MLV shall have no obligation in connection with such compliance. The issuance and
sale of Placement Shares through MLV will be effected pursuant to the Registration Statement (as
defined below) filed by the Company and declared effective by the Securities and Exchange
Commission (the “Commission”), although nothing in this Agreement shall be construed as
requiring the Company to use the Registration Statement to issue Common Stock.

The Company has filed with the Commission, in accordance with the provisions of the Securities
Act of 1933, as amended (the “Securities Act”), and the rules and regulations thereunder
(the “Securities Act Regulations”), a registration statement on Form S-3 (File No.
333-163292), including a base prospectus, relating to certain securities, including the Placement
Shares to be issued from time to time by the Company, and which incorporates by reference documents
that the Company has filed or will file in accordance with the provisions of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
thereunder (the “Exchange Act Regulations”). The Company has prepared a prospectus
supplement specifically relating to the Placement Shares (the “Prospectus Supplement”) to
the base prospectus included as part of such registration statement. The Company will furnish to
MLV, for use by MLV, copies of the prospectus included as part of such registration statement, as
supplemented by the Prospectus Supplement, relating to the Placement Shares. Except where the
context otherwise requires, such registration statement, including all documents filed as part
thereof or incorporated by reference therein, and including any information contained in a
Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under
the Securities Act Regulations or deemed to be a part of such registration statement pursuant to
Rule 430B of the Securities Act Regulations, is herein called the “Registration Statement.”
The base prospectus, including all documents incorporated therein by reference, included in the
Registration Statement, as it may be supplemented by the Prospectus Supplement, in the form in
which such prospectus and/or Prospectus Supplement have most recently been filed by the Company
with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together with the
then issued Issuer Free Writing Prospectus(es), is herein called the “Prospectus.” Any
reference herein to the Registration Statement, the Prospectus or any amendment or supplement
thereto shall be deemed to refer to and include the documents incorporated by reference therein,
and any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the
Registration Statement or the Prospectus shall be deemed to refer to and include the filing after
the execution hereof of any document with the Commission deemed to be incorporated by reference
therein (the “Incorporated Documents”).

For purposes of this Agreement, all references to the Registration Statement, the Prospectus
or to any amendment or supplement thereto shall be deemed to include the most recent copy filed
with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if
applicable, the Interactive Data Electronic Application system when used by the Commission
(collectively, “EDGAR”).

2. Placements. Each time that the Company wishes to issue and sell Placement Shares
hereunder (each, a “Placement”), it will notify MLV by email notice (or other method
mutually agreed to in writing by the Parties) of the number of Placement Shares, the time period
during which sales are requested to be made, any limitation on the number of Placement Shares that
may be sold in any one Trading Day (as defined below) and any minimum price below which sales may
not be made (a “Placement Notice”), the form of which is attached hereto as Schedule
1. The Placement Notice shall originate from any of the individuals from the Company set forth
on Schedule 3 (with a copy to each of the other individuals from the Company listed on such
schedule), and shall be addressed to each of the individuals from MLV set forth on Schedule
3, as such Schedule 3 may be amended from time to time. The Placement Notice shall be
effective immediately upon receipt by MLV unless and until (i) MLV declines to accept the terms
contained therein for any reason, in its sole discretion, (ii) the entire amount of the Placement
Shares thereunder have been sold, (iii) the Company suspends or terminates the Placement Notice or
(iv) the Agreement has been terminated under the provisions of Section 13. The amount of any
discount, commission or other compensation to be paid by the Company to MLV in connection with the
sale of the Placement Shares shall be calculated in accordance with the terms set forth in
Schedule 2. It is expressly acknowledged and agreed that neither the Company nor MLV will
have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until
the Company delivers a Placement Notice to MLV and MLV does not decline such Placement Notice
pursuant to the terms set forth above within one Business Day (as defined herein), and then only
upon the terms specified therein and herein. In the event of a conflict between the terms of this
Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.

3. Sale of Placement Shares by MLV.

(a) Subject to the provisions of this Agreement, MLV, for the period specified in the
Placement Notice, will use its commercially reasonable efforts consistent with its normal trading
and sales practices and applicable state and federal laws, rules and regulations and the rules of
the Nasdaq Global Select Market (the “Exchange”), to sell the Placement Shares up to the
amount specified, and otherwise in accordance with the terms of such Placement Notice. MLV will
provide written confirmation to the Company no later than the opening of the Trading Day (as
defined below) immediately following the Trading Day on which it has made sales of Placement Shares
hereunder setting forth the number of Placement Shares sold on such day, the compensation payable
by the Company to MLV pursuant to Section 2 with respect to such sales, and the Net
Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by
MLV (as set forth in Section 5(b)) from the gross proceeds that it receives from such
sales. Subject to the terms of the Placement Notice, MLV may sell Placement Shares by any method
permitted by law deemed to be an “at the market” offering as defined in Rule 415 of the Securities
Act Regulations, including without limitation sales made directly on the Exchange, on any other
existing trading market for the Common Stock or to or through a market maker (an “At The Market
Offering”). Subject to the terms of a Placement Notice, MLV may also sell Placement Shares in
privately negotiated transactions at market prices prevailing at the time of sale or at prices
related to such prevailing market prices, subject to prior written approval by the Company.
“Trading Day” means any day on which Common Stock are purchased and sold on the Exchange.
The Company acknowledges and agrees that (i) there can be no assurance that MLV will be successful
in selling Placement Shares, (ii) MLV will incur no liability or obligation to the Company or any
other person or entity if it does not sell Placement Shares for any reason other than a failure by
MLV to use its commercially reasonable efforts consistent with its normal trading and sales
practices and applicable law and regulations to sell such Placement Shares as required under this
Agreement and (iii) MLV shall be under no obligation to purchase Placement Shares on a principal
basis pursuant to this Agreement, except as otherwise agreed by MLV and the Company.

(b) During the term of this Agreement, neither MLV nor any of its affiliates or subsidiaries
shall engage in (i) any short sale of any security of the Company or (ii) any sale of any security
of the Company that MLV does not own or any sale which is consummated by the delivery of a security
of the Company borrowed by, or for the account of, MLV. Neither MLV nor any of its affiliates or
subsidiaries, shall engage in any proprietary trading or trading for MLV’s (or its affiliates’ or
subsidiaries’) own account.

4. Suspension of Sales. The Company or MLV may, upon notice to the other party in
writing (including by a single email correspondence to all of the individuals of the other Party
set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any
of the individuals to whom the notice is sent, other than via auto-reply) or by telephone
(confirmed immediately by verifiable facsimile transmission or email correspondence to each of the
individuals of the other Party set forth on Schedule 3), suspend any sale of Placement
Shares; provided, however, that such suspension shall not affect or impair any party’s obligations
with respect to any Placement Shares sold hereunder prior to the receipt of such notice. Each of
the parties agrees that no such notice under this Section 4 shall be effective against any other
party unless it is made to one of the individuals named on Schedule 3 hereto, as such
Schedule may be amended from time to time.

5. Settlement.

(a) Settlement of Placement Shares. Unless otherwise specified in the applicable
Placement Notice, settlement for sales of Placement Shares will occur on the third (3rd)
Trading Day (or such earlier day as is industry practice for regular-way trading) following the
date on which such sales are made (each, a “Settlement Date”). The amount of proceeds to
be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the
“Net Proceeds”) will be equal to the aggregate sales price received by MLV, after deduction
for (i) MLV’s commission, discount or other compensation for such sales payable by the Company
pursuant to Section 2 and Schedule 2 hereof, and (ii) any transaction fees imposed by any
governmental or self-regulatory organization in respect of such sales.

(b) Delivery of Placement Shares. On or before each Settlement Date, the Company
will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold
by crediting MLV’s or its designee’s account (provided MLV shall have given the Company written
notice of such designee at least one Business Day prior to the Settlement Date) at The Depository
Trust Company through its Deposit and Withdrawal at Custodian System (“DWAC”) or by such
other means of delivery as may be mutually agreed upon by the parties hereto which in all cases
shall be freely tradable, transferable, registered shares in good deliverable form. On each
Settlement Date, MLV will deliver the related Net Proceeds in same day funds to an account
designated by the Company on, or prior to, the Settlement Date. Provided that MLV furnishes to the
Company (or its transfer agent as directed by the Company) an accurate listing of the accounts to
which Placement Shares are to be transferred at least one Trading Day prior to the Settlement Date,
the Company agrees that if the Company, or its transfer agent (if applicable), defaults in its
obligation to deliver Placement Shares on a Settlement Date, in addition to and in no way limiting
the rights and obligations set forth in Section 10(a) hereto, it will (i) hold MLV harmless against
any loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred,
arising out of or in connection with such default by the Company or its transfer agent (if
applicable) and (ii) pay to MLV any commission, discount, or other compensation to which it would
otherwise have been entitled absent such default.

(c) Limitations on Offering Size. Under no circumstances shall the Company cause or
request the offer or sale of any Placement Shares if, after giving effect to the sale of such
Placement Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this
Agreement would exceed the lesser of (A) together with all sales of Placement Shares under this
Agreement, the Maximum Amount, and (B)  the amount authorized from time to time to be issued and
sold under this Agreement by the Company’s board of directors, a duly authorized committee thereof
or a duly authorized executive committee, and notified to MLV in writing. Under no circumstances
shall the Company cause or request the offer or sale of any Placement Shares pursuant to this
Agreement at a price lower than the minimum price authorized from time to time by the Company’s
board of directors, a duly authorized committee thereof or a duly authorized executive committee,
and notified to MLV in writing.

6. Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with MLV that as of the date of this Agreement and as of each Applicable Time (as
defined below), unless such representation, warranty or agreement specifies a different time or
time:

(a) Registration Statement and Prospectus. The Company and, assuming no act or
omission on the part of MLV that would make such statement untrue, the transactions contemplated by
this Agreement meet the requirements for and comply with the conditions for the use of Form S-3
under the Securities Act. The Registration Statement has been filed with the Commission and has
been declared effective under the Securities Act. The Prospectus Supplement will name MLV as the
agent in the section entitled “Plan of Distribution.” The Company has not received, and has no
notice of, any order of the Commission preventing or suspending the use of the Registration
Statement, or threatening or instituting proceedings for that purpose. The Registration Statement
and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415
under the Act and comply in all material respects with said Rule. Any statutes, regulations,
contracts or other documents that are required to be described in the Registration Statement or the
Prospectus or to be filed as exhibits to the Registration Statement have been so described or
filed. Copies of the Registration Statement, the Prospectus, and any such amendments or
supplements and all documents incorporated by reference therein that were filed with the Commission
on or prior to the date of this Agreement have been delivered, or are available through EDGAR, to
MLV and its counsel. The Company has not distributed and, prior to the later to occur of each
Settlement Date and completion of the distribution of the Placement Shares, will not distribute any
offering material in connection with the offering or sale of the Placement Shares other than the
Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined below)
to which MLV has consented. The Common Stock is currently listed on the Exchange under the trading
symbol “DBLE”. Except as disclosed in the Registration Statement, including the Incorporated
Documents, the Company has not, in the 12 months preceding the date hereof, received notice from
the Exchange to the effect that the Company is not in compliance with the listing or maintenance
requirements. Except as disclosed in the Registration Statement, including the Incorporated
Documents, or the Prospectus, the Company has no reason to believe that it will not in the
foreseeable future continue to be in compliance with all such listing and maintenance requirements.

(b) No Misstatement or Omission. The Registration Statement, when it became
effective, and the Prospectus, and any amendment or supplement thereto, on the date of such
Prospectus or amendment or supplement, conformed and will conform in all material respects with the
requirements of the Securities Act. At each Settlement Date, the Registration Statement and the
Prospectus, as of such date, will conform in all material respects with the requirements of the
Securities Act. The Registration Statement, when it became or becomes effective, did not, and will
not, contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. The Prospectus and any
amendment and supplement thereto, on the date thereof and at each Applicable Time (defined below),
did not or will not include an untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading. The documents incorporated by reference in the Prospectus or any Prospectus
Supplement did not, and any further documents filed and incorporated by reference therein will not,
when filed with the Commission, contain an untrue statement of a material fact or omit to state a
material fact required to be stated in such document or necessary to make the statements in such
document, in light of the circumstances under which they were made, not misleading. The foregoing
shall not apply to statements in, or omissions from, any such document made in reliance upon, and
in conformity with, information furnished to the Company by MLV specifically for use in the
preparation thereof.

(c) Conformity of Incorporated Documents with Exchange Act. The Incorporated
Documents, when such documents were or are filed with the Commission under the Exchange Act,
conformed or will conform in all material respects with the requirements of the Exchange Act.

(d) Financial Information. The consolidated financial statements of the Company
included or incorporated by reference in the Registration Statement and the Prospectus, together
with the related notes and schedules, complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the Commission with respect
thereto as in effect as of the time of filing. Such financial statements have been prepared in
accordance with U.S. generally accepted accounting principles, consistently applied, during the
periods involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all material respects
the consolidated financial position of the Company and the Subsidiaries as of the dates indicated
and the results of operations and cash flows of the Company and the Subsidiaries for the periods
specified (subject, in the case of unaudited statements, to normal year-end audit adjustments which
will not be material, either individually or in the aggregate); the other financial data with
respect to the Company and the Subsidiaries contained or incorporated by reference in the
Registration Statement and the Prospectus are accurately and fairly presented and prepared on a
basis consistent with the financial statements and books and records of the Company and the
Subsidiaries; there are no financial statements (historical or pro forma) that are required to be
included or incorporated by reference in the Registration Statement, or the Prospectus that are not
included or incorporated by reference as required; the Company does not have any material
liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not
described in the Registration Statement (including the exhibits thereto), and the Prospectus which
are required to be described in the Registration Statement or the Prospectus (including Exhibits
thereto and Incorporated Documents); and all disclosures contained or incorporated by reference in
the Registration Statement and the Prospectus regarding “non-GAAP financial measures” (as such term
is defined by the rules and regulations of the Commission) comply in all material respects with
Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the
extent applicable.

(e) Conformity with EDGAR Filing. The Prospectus delivered to MLV for use in
connection with the sale of the Placement Shares pursuant to this Agreement will be identical to
the versions of the Prospectus created to be transmitted to the Commission for filing via EDGAR,
except to the extent permitted by Regulation S-T.

(f) Organization. The Company and each of its Subsidiaries are, and will be, duly
organized, validly existing as a corporation and in good standing under the laws of their
respective jurisdictions of organization. The Company and each of its Subsidiaries are, and will
be, duly licensed or qualified as a foreign corporation for transaction of business and in good
standing under the laws of each other jurisdiction in which their respective ownership or lease of
property or the conduct of their respective businesses requires such license or qualification, and
have all corporate power and authority necessary to own or hold their respective properties and to
conduct their respective businesses as described in the Registration Statement and the Prospectus,
except where the failure to be so qualified or in good standing or have such power or authority
would not, individually or in the aggregate, have a material adverse effect or would reasonably be
expected to have a material adverse effect on the assets, business, operations, earnings,
properties, condition (financial or otherwise), prospects, stockholders’ equity or results of
operations of the Company and the Subsidiaries (as defined below) taken as a whole, or prevent or
materially interfere with consummation of the transactions contemplated hereby (a “Material
Adverse Effect”).

(g) Subsidiaries. The subsidiaries set forth on Schedule 4 (collectively, the
“Subsidiaries”), are the Company’s only significant subsidiaries (as such term is defined
in Rule 1-02 of Regulation S-X promulgated by the Commission). Except as set forth in the
Registration Statement and in the Prospectus, the Company owns, directly or indirectly, all of the
equity interests of the Subsidiaries free and clear of any lien, charge, security interest,
encumbrance, right of first refusal or other restriction, and all the equity interests of the
Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and
similar rights.

(h) No Violation or Default. Neither the Company nor any of its Subsidiaries is
(i) in violation of its charter or by-laws or similar organizational documents; (ii) 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 or condition contained in any
indenture, mortgage, deed of trust, loan agreement 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 are
subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of
any court or arbitrator or governmental or regulatory authority, except, in the case of each of
clauses (ii) and (iii) above, for any such violation or default that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect. Except as described in
the Prospectus, the Prospectus Supplement or the Incorporated Documents, to the Company’s
knowledge, no other party under any material contract or other agreement to which it or any of its
Subsidiaries is a party is in default in any respect thereunder where such default would reasonably
be expected to have a Material Adverse Effect.

(i) No Material Adverse Change. Subsequent to the respective dates as of which
information is given in the Registration Statement and the Prospectus, there has not been (i) any
Material Adverse Effect, or any development involving a prospective Material Adverse Effect, in or
affecting the business, properties, management, financial, condition (financial or otherwise),
results of operations, or prospects of the Company and the Subsidiaries taken as a whole, (ii)
other than this Agreement and the transactions contemplated hereby, any transaction which is
material to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability,
direct or contingent (including any off-balance sheet obligations), incurred by the Company or any
Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any
material change in the capital stock (other than (a) as a result of the sale of Placement Shares,
(b) as described in a proxy statement filed on Schedule 14A or a Registration Statement on Form S-4
and otherwise publicly announced, or (c) changes in the number of outstanding shares of Common
Stock of the Company due to the issuance of shares upon the exercise or conversion of securities
exercisable for, or convertible into, shares of Common Stock outstanding on the date hereof, or the
vesting of restricted stock units outstanding on the date hereof) or outstanding long-term
indebtedness of the Company) or outstanding long-term indebtedness of the Company or any of its
Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the capital
stock of the Company or any Subsidiary, other than in each case above (A) in the ordinary course of
business, (B) as otherwise disclosed in the Registration Statement or Prospectus (including any
document deemed incorporated by reference therein), or (C) where such matter, item, change, or
development would not make the statements in the Registration Statement or the Prospectus contain
an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading;

(j) Capitalization. The issued and outstanding shares of capital stock of the Company
have been validly issued, are fully paid and non-assessable and, other than as disclosed in the
Registration Statement or the Prospectus, are not subject to any preemptive rights, rights of first
refusal or similar rights. The Company has an authorized, issued and outstanding capitalization as
set forth in the Registration Statement and the Prospectus as of the dates referred to therein
(other than the grant of additional options under the Company’s existing stock option plans, or
changes in the number of outstanding Common Stock of the Company due to the issuance of shares upon
the exercise or conversion of securities exercisable for, or convertible into, Common Stock
outstanding on the date hereof or as a result of the issuance of Placement Shares) and such
authorized capital stock conforms to the description thereof set forth in the Registration
Statement and the Prospectus. Except as disclosed in or contemplated by the Registration Statement
or the Prospectus, as of the date referred to therein, the Company did not have outstanding any
options to purchase, or any rights or warrants to subscribe for, or any securities or obligations
convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares
of capital stock or other securities.

(k) Authorization; Enforceability. The Company has full legal right, power and
authority to enter into this Agreement and perform the transactions contemplated hereby. This
Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and
binding agreement of the Company enforceable in accordance with its terms, except to the extent
that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ rights generally and by general equitable principles and (ii) the
indemnification and contribution provisions of Section 11 hereof may be limited by federal or state
securities laws and public policy considerations in respect thereof.

(l) Authorization of Placement Shares. The Placement Shares, when issued and
delivered pursuant to the terms approved by the board of directors of the Company or a duly
authorized committee thereof, or a duly authorized executive committee, against payment therefor as
provided herein, will be duly and validly authorized and issued and fully paid and nonassessable,
free and clear of any pledge, lien, encumbrance, security interest or other claim (other than any
pledge, lien, encumbrance, security interest or other claim arising from an act or omission of MLV
or a purchaser), including any statutory or contractual preemptive rights, resale rights, rights of
first refusal or other similar rights, and will be registered pursuant to Section 12 of the
Exchange Act. The Placement Shares, when issued, will conform in all material respects to the
description thereof set forth in or incorporated into the Prospectus.

(m) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or any governmental or regulatory authority is
required for the execution, delivery and performance by the Company of this Agreement, and the
issuance and sale by the Company of the Placement Shares as contemplated hereby, except for such
consents, approvals, authorizations, orders and registrations or qualifications as may be required
under applicable state securities laws or by the by-laws and rules of the Financial Industry
Regulatory Authority (“FINRA”) or the Exchange in connection with the sale of the Placement
Shares by MLV.

(n) No Preferential Rights. Except as set forth in the Registration Statement or the
Prospectus, (i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under
the Securities Act (each, a “Person”), has the right, contractual or otherwise, to cause
the Company to issue or sell to such Person any Common Stock or shares of any other capital stock
or other securities of the Company (other than upon the exercise of options or warrants to purchase
Common Stock or upon the exercise of options that may be granted from time to time under the
Company’s stock option plans), (ii) no Person has any preemptive rights, rights of first refusal,
or any other rights (whether pursuant to a “poison pill” provision or otherwise) to purchase any
Common Stock or shares of any other capital stock or other securities of the Company from the
Company which have not been duly waived with respect to the offering contemplated hereby, (iii)  no
Person has the right to act as an underwriter or as a financial advisor to the Company in
connection with the offer and sale of the Common Stock, and (iv) no Person has the right,
contractual or otherwise, to require the Company to register under the Securities Act any Common
Stock or shares of any other capital stock or other securities of the Company, or to include any
such shares or other securities in the Registration Statement or the offering contemplated thereby,
whether as a result of the filing or effectiveness of the Registration Statement or the sale of the
Placement Shares as contemplated thereby or otherwise.

(o) Independent Public Accountant. Hein & Associates LLP (the “Accountant”),
whose report on the consolidated financial statements of the Company is filed with the Commission
as part of the Company’s most recent Annual Report on Form 10-K filed with the Commission and
incorporated into the Registration Statement, are and, during the periods covered by their report,
were independent public accountants within the meaning of the Securities Act and the Public Company
Accounting Oversight Board (United States). To the Company’s knowledge, the Accountant is not in
violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the
“Sarbanes-Oxley Act”) with respect to the Company.

(p) Enforceability of Agreements. To the Company’s knowledge, all agreements between
the Company and third parties expressly referenced in the Prospectus, other than such agreements
that have expired by their terms or whose termination is disclosed in documents filed by the
Company on EDGAR, are legal, valid and binding obligations of the Company enforceable in accordance
with their respective terms, except to the extent that (i) enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally and by general equitable principles and (ii) the indemnification provisions of certain
agreements may be limited be federal or state securities laws or public policy considerations in
respect thereof, except for any unenforceability that, individually or in the aggregate, would not
unreasonably be expected to have a Material Adverse Effect.

(q) No Litigation. Except as set forth in the Registration Statement or the
Prospectus, there are no legal, governmental or regulatory actions, suits or proceedings pending,
nor, to the Company’s knowledge, any legal, governmental or regulatory investigations, to which the
Company or a Subsidiary is a party or to which any property of the Company or any of its
Subsidiaries is the subject that, individually or in the aggregate, if determined adversely to the
Company or any of its Subsidiaries, would reasonably be expected to have a Material Adverse Effect
or materially and adversely affect the ability of the Company to perform its obligations under this
Agreement (collectively, the “Actions”); to the Company’s knowledge, no such Actions are
threatened or contemplated by any governmental or regulatory authority or threatened by others
that, individually or in the aggregate, if determined adversely to the Company or any of its
Subsidiaries, would reasonably be expected to have a Material Adverse Effect; or and (i) there are
no current or pending legal, governmental or regulatory investigations, actions, suits or
proceedings that are required under the Act to be described in the Prospectus that are not
described in the Prospectus including any Incorporated Document; and (ii) there are no contracts or
other documents that are required under the Securities Act to be filed as exhibits to the
Registration Statement that are not so filed.

(r) Licenses and Permits. Except as set forth in the Registration Statement or the
Prospectus, the Company and each of its Subsidiaries possess or have obtained, all licenses,
certificates, consents, orders, approvals, permits and other authorizations issued by, and have
made all declarations and filings with, the appropriate federal, state, local or foreign
governmental or regulatory authorities that are necessary for the ownership or lease of their
respective properties or the conduct of their respective businesses as described in the
Registration Statement and the Prospectus (the “Permits”), except where the failure to
possess, obtain or make the same would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Except as disclosed in the Registration Statement or
the Prospectus, neither the Company nor any of its Subsidiaries have received written notice of any
proceeding relating to revocation or modification of any such Permit or has any reason to believe
that such Permit will not be renewed in the ordinary course, except where the failure to obtain any
such renewal would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

(s) Market Capitalization. As of the close of trading on the Exchange on the Trading
Day immediately prior to the date of this Agreement, the aggregate market value of the outstanding
voting and non-voting common equity (as defined in Securities Act Rule 405) of the Company held by
persons other than affiliates of the Company (pursuant to Securities Act Rule 144, those that
directly, or indirectly through one or more intermediaries, control, or are controlled by, or are
under common control with, the Company)  (the “Non-Affiliate Shares”), was approximately
$[•] million (calculated by multiplying (x) the price at which the common equity of the Company was
last sold on the Exchange on the Trading Day immediately prior to the date of this Agreement times
(y) the number of Non-Affiliate Shares).

(t) No Material Defaults. Neither the Company nor any of the Subsidiaries has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or more
long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect. The Company has not filed a report pursuant to Section 13(a) or
15(d) of the Exchange Act since the filing of its last Annual Report on Form 10-K, indicating that
it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or more
long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

(u) Certain Market Activities. Neither the Company, nor any of the Subsidiaries, nor
any of their respective directors, officers or controlling persons has taken, directly or
indirectly, any action designed, or that has constituted or might reasonably be expected to cause
or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Placement Shares.

(v) Broker/Dealer Relationships. Neither the Company nor any of the Subsidiaries or
any related entities (i) is required to register as a “broker” or “dealer” in accordance with the
provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries,
controls or is a “person associated with a member” or “associated person of a member” (within the
meaning set forth in the FINRA Manual).

(w) No Reliance. The Company has not relied upon MLV or legal counsel for MLV for any
legal, tax or accounting advice in connection with the offering and sale of the Placement Shares.

(x) Taxes. The Company and each of its Subsidiaries have filed all federal, state,
local and foreign tax returns which have been required to be filed and paid all taxes shown thereon
through the date hereof, to the extent that such taxes have become due and are not being contested
in good faith, except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect. Except as otherwise disclosed in or contemplated by the Registration
Statement or the Prospectus, no tax deficiency has been determined adversely to the Company or any
of its Subsidiaries which has had, or would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. The Company has no knowledge of any federal, state or other
governmental tax deficiency, penalty or assessment which has been or might be asserted or
threatened against it which could have a Material Adverse Effect.

(y) Title to Real and Personal Property. The Company and each of its Subsidiaries has
(i) good and defensible title to all of its oil and gas properties (including oil and gas wells,
producing leasehold interests and appurtenant personal property), title investigations having been
carried out by the Company or each of its Subsidiaries consistent with the reasonable practice in
the oil and gas industry in the areas in which the Company and each of its Subsidiaries operate,
and (ii) good and marketable title to all other real and personal property owned by the Company and
each of its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except
such as are described in the Registration Statement and Prospectus or such as do not materially
affect the value of the properties of the Company and its Subsidiaries, considered as one
enterprise, and do not interfere in any material respect with the use made and proposed to be made
of such properties by the Company and its Subsidiaries, considered as one enterprise; and all of
the leases, subleases, mining usufructs and concessions under which the Company or any of its
Subsidiaries holds or uses properties described in the Registration Statement and Prospectus are in
full force and effect, with such exceptions as would not reasonably be expected to have a Material
Adverse Effect, and neither the Company nor any of its Subsidiaries has any notice of any material
claim of any sort that has been asserted by anyone adverse to the rights of the Company or its
Subsidiaries under any of the leases, subleases, mining usufructs and concessions mentioned above,
or affecting or questioning the rights of the Company or any Subsidiary thereof to the continued
possession or use of the leased or subleased premises or the premises granted by mining usufructs
and concessions that would reasonably be expected to have a Material Adverse Effect. The working
interests in oil, gas and mineral leases or mineral interests which constitute a portion of the
real property held by the Company reflect in all material respects the right of the Company and
each of its Subsidiaries to explore, develop or receive production from such real property, and the
care taken by the Company and each of its Subsidiaries with respect to acquiring or otherwise
procuring such leases or mineral interests was generally consistent with standard industry
practices in the areas in which the Company and its Subsidiaries operate for acquiring or procuring
leases and interests therein to explore for, develop or produce hydrocarbons. The Company and each
of its Subsidiaries have such consents, easements, rights-of-way or licenses from any person
(“rights-of-way”) as are necessary to enable the Company and each of its Subsidiaries to
conduct its business in the manner described in the Registration Statement and the Prospectus,
subject to such qualifications as may be set forth in the Registration Statement and the
Prospectus, and except for such rights-of-way the lack of which would not have, individually or in
the aggregate, a Material Adverse Effect.

(z) Intellectual Property. Except as set forth in the Registration Statement or the
Prospectus, to the Company’s knowledge, the Company and its Subsidiaries own or possess adequate
enforceable rights to use all patents, patent applications, trademarks (both registered and
unregistered), service marks, trade names, trademark registrations, service mark registrations,
copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures) (collectively, the
“Intellectual Property”), necessary for the conduct of their respective businesses as
conducted as of the date hereof, except to the extent that the failure to own or possess adequate
rights to use such Intellectual Property would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; except as disclosed in writing to MLV, the Company and
any of its Subsidiaries have not received any written notice of any claim of infringement or
conflict which asserted Intellectual Property rights of others, which infringement or conflict, if
the subject of an unfavorable decision, would result in a Material Adverse Effect; there are no
pending, or to the Company’s knowledge, threatened judicial proceedings or interference proceedings
challenging the Company’s or its Subsidiaries’ rights in or to or the validity of the scope of any
of the Company’s or its Subsidiaries’ patents, patent applications or proprietary information; no
other entity or individual has any right or claim in any of the Company’s or its Subsidiaries’
patents, patent applications or any patent to be issued therefrom by virtue of any contract,
license or other agreement entered into between such entity or individual and the Company or a
Subsidiary or by any non-contractual obligation, other than by written licenses granted by the
Company or a Subsidiary; the Company and its Subsidiaries have not received any written notice of
any claim challenging the rights of the Company or a Subsidiary in or to any Intellectual Property
owned, licensed or optioned by the Company or such Subsidiary which claim, if the subject of an
unfavorable decision would result in a Material Adverse Effect.

(aa) Environmental Laws. Except as set forth in the Registration Statement or the
Prospectus, the Company and its Subsidiaries (i) are in compliance with any and all applicable
federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the
protection of human health and safety, the environment or hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and are
in compliance with all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses as described in the Registration
Statement and the Prospectus; and (iii) have not received notice of any actual or potential
liability for the investigation or remediation of any disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii)
or (iii) above, for any such failure to comply or failure to receive required permits, licenses,
other approvals or liability as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

(bb) Disclosure Controls. The Company and each of its Subsidiaries maintain systems
of internal accounting controls designed to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company is not aware of any
material weaknesses in its internal control over financial reporting (other than as set forth in
the Prospectus). Since the date of the latest audited financial statements of the Company included
in the Prospectus, there has been no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting (other than as set forth in the Prospectus). The Company
has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and
15d-15) for the Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company and each of its Subsidiaries is made known to the
certifying officers by others within those entities, particularly during the period in which the
Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, is being
prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s
controls and procedures as of a date within 90 days prior to the filing date of the Form 10-K for
the fiscal year most recently ended (such date, the “Evaluation Date”). The Company
presented in its Form 10-K for the fiscal year most recently ended the conclusions of the
certifying officers about the effectiveness of the disclosure controls and procedures based on
their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of
Regulation S-K under the Securities Act). To the knowledge of the Company, the Company’s “internal
controls over financial reporting” and “disclosure controls and procedures” are effective.

(cc) Sarbanes-Oxley. Except as set forth in the Registration Statement or Prospectus,
there is and has been no failure on the part of the Company or, to the knowledge of the Company,
any of the Company’s directors or officers, in their capacities as such, to comply with any
applicable provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated
thereunder. Each of the principal executive officer and the principal financial officer of the
Company (or each former principal executive officer of the Company and each former principal
financial officer of the Company as applicable) has made all certifications required by Sections
302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements and
other documents required to be filed by it or furnished by it to the Commission. For purposes of
the preceding sentence, “principal executive officer” and “principal financial officer” shall have
the meanings given to such terms in the Sarbanes-Oxley Act.

(dd) Finder’s Fees. Neither the Company nor any of the Subsidiaries has incurred any
liability for any finder’s fees, brokerage commissions or similar payments in connection with the
transactions herein contemplated, except as may otherwise exist with respect to MLV pursuant to
this Agreement.

(ee) Labor Disputes. No labor disturbance by or dispute with employees of the Company
or any of its Subsidiaries exists or, to the knowledge of the Company, is threatened which would
reasonably be expected to result in a Material Adverse Effect

(ff) Investment Company Act. Neither the Company nor any of the Subsidiaries is or,
after giving effect to the offering and sale of the Placement Shares, will be an “investment
company” or an entity “controlled” by an “investment company,” as such terms are defined in the
Investment Company Act of 1940, as amended (the “Investment Company Act”).

(gg) Operations. The operations of the Company and its Subsidiaries are and have been
conducted at all times in compliance with applicable financial record keeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions to which the Company or its Subsidiaries are subject, 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”), except as would not reasonably be expected to result in a Material Adverse
Effect; 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, threatened.

(hh) Off-Balance Sheet Arrangements. There are no transactions, arrangements and
other relationships between and/or among the Company, and/or, to the knowledge of the Company, any
of its affiliates and any unconsolidated entity, including, but not limited to, any structural
finance, special purpose or limited purpose entity (each, an “Off Balance Sheet
Transaction”) that could reasonably be expected to affect materially the Company’s liquidity or
the availability of or requirements for its capital resources, including those Off Balance Sheet
Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of
Financial Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required
to be described in the Prospectus which have not been described as required.

(ii) Underwriter Agreements. The Company is not a party to any agreement with an
agent or underwriter for any other “at-the-market” or continuous equity transaction.

(jj) ERISA. Except as set forth in the Registration Statement or the Prospectus, to
the knowledge of the Company, (i) each material employee benefit plan, within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
that is maintained, administered or contributed to by the Company or any of its affiliates for
employees or former employees of the Company and any of its Subsidiaries has been maintained in
material compliance with its terms and the requirements of any applicable statutes, orders, rules
and regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as
amended (the “Code”); (ii) no prohibited transaction, within the meaning of Section 406 of
ERISA or Section 4975 of the Code, has occurred which would result in a material liability to the
Company with respect to any such plan excluding transactions effected pursuant to a statutory or
administrative exemption; and (iii) for each such plan that is subject to the funding rules of
Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in
Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the
assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds
the present value of all benefits accrued under such plan determined using reasonable actuarial
assumptions other than, in the case of (i), (ii) and (iii) above, as would not reasonably be
expected to have a Material Adverse Effect.

(kk) Margin Rules. Neither the issuance, sale and delivery of the Placement Shares
nor the application of the proceeds thereof by the Company as described in the Registration
Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System or any other regulation of such Board of Governors.

(ll) Insurance. Except as set forth in the Registration Statement or the Prospectus,
the Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and
covering such risks as the Company and each of its Subsidiaries reasonably believe are adequate for
the conduct of their properties and as is customary for companies of similar size engaged in
similar businesses in similar industries.

(mm) No Improper Practices. (i) Except as set forth in the Registration Statement or
the Prospectus, neither the Company nor, to the Company’s knowledge, the Subsidiaries, nor to the
Company’s knowledge, any of their respective executive officers has, in the past five years, made
any unlawful contributions to any candidate for any political office (or failed fully to disclose
any contribution in violation of law) or made any contribution or other payment to any official of,
or candidate for, any federal, state, municipal, or foreign office or other person charged with
similar public or quasi-public duty in violation of any law or of the character required to be
disclosed in the Prospectus; (ii) no relationship, direct or indirect, exists between or among the
Company or, to the Company’s knowledge, any Subsidiary or any affiliate of any of them, on the one
hand, and the directors, officers and stockholders of the Company or, to the Company’s knowledge,
any Subsidiary, on the other hand, that is required by the Securities Act to be described in the
Registration Statement and the Prospectus that is not so described; (iii) no relationship, direct
or indirect, exists between or among the Company or any Subsidiary or any affiliate of them, on the
one hand, and the directors, officers, stockholders or directors of the Company or, to the
Company’s knowledge, any Subsidiary, on the other hand, that is required by the rules of FINRA to
be described in the Registration Statement and the Prospectus that is not so described; (iv) except
as described in the Prospectus, there are no material outstanding loans or advances or material
guarantees of indebtedness by the Company or, to the Company’s knowledge, any Subsidiary to or for
the benefit of any of their respective officers or directors or any of the members of the families
of any of them; and (v) the Company has not offered, or caused any placement agent to offer, Common
Stock to any person with the intent to influence unlawfully (A) a customer or supplier of the
Company or any Subsidiary to alter the customer’s or supplier’s level or type of business with the
Company or any Subsidiary or (B) a trade journalist or publication to write or publish favorable
information about the Company or any Subsidiary or any of their respective products or services,
and, (vi) neither the Company nor any Subsidiary nor, to the Company’s knowledge, any employee or
agent of the Company or any Subsidiary has made any payment of funds of the Company or any
Subsidiary or received or retained any funds in violation of any law, rule or regulation
(including, without limitation, the Foreign Corrupt Practices Act of 1977), which payment, receipt
or retention of funds is of a character required to be disclosed in the Registration Statement or
the Prospectus.

(nn) Status Under the Securities Act. The Company was not and is not an ineligible
issuer as defined in Rule 405 under the Securities Act at the times specified in Rules 164 and 433
under the Act in connection with the offering of the Placement Shares.

(oo) No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer
Free Writing Prospectus, as of its issue date and as of each Applicable Time (as defined in
Section 24 below) through the completion of any Placement for which such Issuer Free
Writing Prospectus is used or deemed used, did not, does not and will not include any information
that conflicted, conflicts or will conflict with the information contained in the Registration
Statement or the Prospectus, including any incorporated document deemed to be a part thereof that
has not been superseded or modified. The foregoing sentence does not apply to statements in or
omissions from any Issuer Free Writing Prospectus based upon and in conformity with written
information furnished to the Company by MLV specifically for use therein.

(pp) No Conflicts. Neither the execution of this Agreement, nor the issuance,
offering or sale of the Placement Shares, nor the consummation of any of the transactions
contemplated herein and therein, nor the compliance by the Company with the terms and provisions
hereof and thereof will conflict with, or will result in a breach of, any of the terms and
provisions of, or has constituted or will constitute a default under, or has resulted in or will
result in the creation or imposition of any lien, charge or encumbrance upon any property or assets
of the Company pursuant to the terms of any contract or other agreement to which the Company may be
bound or to which any of the property or assets of the Company is subject, except (i) such
conflicts, breaches or defaults as may have been waived and (ii) such conflicts, breaches and
defaults that would not reasonably be expected to have a Material Adverse Effect; nor will such
action result (x) in any violation of the provisions of the organizational or governing documents
of the Company, or (y) in any material violation of the provisions of any statute or any order,
rule or regulation applicable to the Company or of any court or of any federal, state or other
regulatory authority or other government body having jurisdiction over the Company, except where
such violation would not reasonably be expected to have a Material Adverse Effect.

(qq)  (i) The Company represents that, neither the Company nor any of its Subsidiaries
(collectively, the “Entity”) or any director, officer, employee, agent, affiliate or
representative of the Entity, is a government, individual, or entity (in this paragraph (tt),
“Person”) that is, or is owned or controlled by a Person that is:

(A)  the subject of any sanctions administered or enforced by the U.S.
Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the
United Nations Security Council (“UNSC”), the European Union (“EU”),
Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority
(collectively, “Sanctions”), nor

(B)  located, organized or resident in a country or territory that is the
subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran,
North Korea, Sudan and Syria).

(ii)  The Entity represents and covenants that it 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:

(A)  to fund or facilitate any activities or business of or with any Person or
in any country or territory that, at the time of such funding or facilitation, is
the subject of Sanctions; or

(B)  in any other manner that will result in a violation of Sanctions by any
Person (including any Person participating in the offering, whether as underwriter,
advisor, investor or otherwise).

(iii)  The Entity represents and covenants that, except as detailed in the Prospectus, for
the past 5 years, it has not knowingly engaged in, is not now knowingly engaged in, and will not
engage in, any dealings or transactions with any Person, or in any country or territory, that at
the time of the dealing or transaction is or was the subject of Sanctions.

(rr) Stock Transfer Taxes. On each Settlement Date, all stock transfer or other taxes
(other than income taxes) which are required to be paid in connection with the sale and transfer of
the Placement Shares to be sold hereunder will be, or will have been, fully paid or provided for by
the Company and all laws imposing such taxes will be or will have been fully complied with in all
material respects.

(ss) Reserve Reports. The information underlying the estimates of the Company’s
reserves that was supplied to Netherland, Sewell & Associates, Inc. (the “Reserve
Engineers”) for the purposes of preparing the reserve reports and estimates of the proved
reserves of the Company disclosed in the Registration Statement and the Prospectus, including
production and costs of operation, was true and correct in all material respects on the dates such
estimates were made, and such information was supplied and was prepared in all material respects in
accordance with customary industry practices. Other than normal production of the reserves, the
impact of changes in prices and costs, and fluctuations in demand for oil and natural gas, and
except as disclosed in the Registration Statement and the Prospectus, the Company is not aware of
any facts or circumstances that would in the aggregate result in a material adverse change in the
aggregate net proved reserves, or the aggregate present value or the standardized measure of the
future net cash flows therefrom, as described in the Registration Statement and the Prospectus and
as reflected in the reports the Reserve Engineers prepared with regard to the proved reserves of
the Company and each of its Subsidiaries, considered as one enterprise. The estimates of such
proved reserves and standardized measure as described in the Registration Statement and the
Prospectus and reflected in the reports referenced therein have been prepared in all material
respects in a manner that complies with the applicable requirements of the rules under the
Securities Act with respect to such estimates.

Any certificate signed by an officer of the Company and delivered to MLV or to counsel for MLV
pursuant to or in connection with this Agreement shall be deemed to be a representation and
warranty by the Company, as applicable, to MLV as to the matters set forth therein.

7. Covenants of the Company. The Company covenants and agrees with MLV that:

(a) Registration Statement Amendments. After the date of this Agreement and during
any period in which a Prospectus relating to any Placement Shares is required to be delivered by
MLV under the Securities Act (including in circumstances where such requirement may be satisfied
pursuant to Rule 172 under the Securities Act) (the “Prospectus Delivery Period”), (i) the
Company will notify MLV promptly of the time when any subsequent amendment to the Registration
Statement, other than documents incorporated by reference, has been filed with the Commission
and/or has become effective or any subsequent supplement to the Prospectus has been filed and of
any request by the Commission for any amendment or supplement to the Registration Statement or
Prospectus or for additional information, (ii) the Company will not file any amendment or
supplement to the Registration Statement or Prospectus relating to the Placement Shares or a
security convertible into the Placement Shares unless a copy thereof has been submitted to MLV
within a reasonable period of time before the filing and MLV has not objected thereto (provided,
however, that the failure of MLV to make such objection shall not relieve the Company of any
obligation or liability hereunder, or affect MLV’s right to rely on the representations and
warranties made by the Company in this Agreement and provided, further, that the only remedy MLV
shall have with respect to the failure to by the Company to obtain such consent shall be to cease
making sales under this Agreement) and the Company will furnish to MLV at the time of filing
thereof a copy of any document that upon filing is deemed to be incorporated by reference into the
Registration Statement or Prospectus, except for those documents available via EDGAR; and (iii) the
Company will cause each amendment or supplement to the Prospectus to be filed with the Commission
as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the
case of any document to be incorporated therein by reference, to be filed with the Commission as
required pursuant to the Exchange Act, within the time period prescribed (the determination to file
or not file any amendment or supplement with the Commission under this Section 7(a), based on the
Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

(b) Notice of Commission Stop Orders. The Company will advise MLV, promptly after it
receives notice or obtains knowledge thereof, of the issuance or threatened issuance by the
Commission of any stop order suspending the effectiveness of the Registration Statement, of the
suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction,
or of the initiation or threatening of any proceeding for any such purpose; and it will promptly
use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its
withdrawal if such a stop order should be issued. The Company will advise MLV promptly after it
receives any request by the Commission for any amendments to the Registration Statement or any
amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus or for additional
information related to the offering of the Placement Shares or for additional information related
to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus.

(c) Delivery of Prospectus; Subsequent Changes. During the Prospectus Delivery
Period, the Company will comply with all requirements imposed upon it by the Securities Act, as
from time to time in force, and to file on or before their respective due dates all reports and any
definitive proxy or information statements required to be filed by the Company with the Commission
pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act.
If the Company has omitted any information from the Registration Statement pursuant to Rule 430A
under the Act, it will use its best efforts to comply with the provisions of and make all requisite
filings with the Commission pursuant to said Rule 430A and to notify MLV promptly of all such
filings. If during such period any event occurs as a result of which the Prospectus as then
amended or supplemented would include an 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 then
existing, not misleading, or if during such period it is necessary to amend or supplement the
Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly
notify MLV to suspend the offering of Placement Shares during such period and the Company will
promptly amend or supplement the Registration Statement or Prospectus (at the expense of the
Company) so as to correct such statement or omission or effect such compliance; provided, however,
that the Company may delay any such amendment or supplement if, in the judgment of the Company, it
is in the best interests of the Company to do so.

(d) Listing of Placement Shares. During any period in which the Prospectus relating
to the Placement Shares is required to be delivered by MLV under the Securities Act with respect to
the offer and sale of the Placement Shares, the Company will use its reasonable best efforts to
cause the Placement Shares to be listed on the Exchange and to qualify the Placement Shares for
sale under the securities laws of such jurisdictions as MLV reasonably designates and to continue
such qualifications in effect so long as required for the distribution of the Placement Shares;
provided, however, that the Company shall not be required in connection therewith to qualify as a
foreign corporation or dealer in securities or file a general consent to service of process in any
jurisdiction.

(e) Delivery of Registration Statement and Prospectus. The Company will furnish to
MLV and its counsel (at the expense of the Company) copies of the Registration Statement, the
Prospectus (including all documents incorporated by reference therein) and all amendments and
supplements to the Registration Statement or Prospectus that are filed with the Commission during
any period in which a Prospectus relating to the Placement Shares is required to be delivered under
the Securities Act (including all documents filed with the Commission during such period that are
deemed to be incorporated by reference therein), in each case as soon as reasonably practicable and
in such quantities as MLV may from time to time reasonably request and, at MLV’s request, will also
furnish copies of the Prospectus to each exchange or market on which sales of the Placement Shares
may be made; provided, however, that the Company shall not be required to furnish any document
(other than the Prospectus) to MLV to the extent such document is available on EDGAR.

(f) Earnings Statement. The Company will make generally available to its security
holders as soon as practicable, but in any event not later than 15 months after the end of the
Company’s current fiscal quarter, an earnings statement covering a 12-month period that satisfies
the provisions of Section 11(a) and Rule 158 of the Securities Act.

(g) Use of Proceeds. The Company will use the Net Proceeds as described in the
Prospectus in the section entitled “Use of Proceeds.”

(h) Notice of Other Sales. Without the prior written consent of MLV, the Company will
not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or
otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this
Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights
to purchase or acquire, Common Stock during the period beginning on the fifth (5th) Trading Day
immediately prior to the date on which any Placement Notice is delivered to MLV hereunder and
ending on the fifth (5th) Trading Day immediately following the final Settlement Date with respect
to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been
terminated or suspended prior to the sale of all Placement Shares covered by a Placement Notice,
the date of such suspension or termination); and will not directly or indirectly in any other
“at-the-market” or continuous equity transaction offer to sell, sell, contract to sell, grant any
option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered
pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock,
warrants or any rights to purchase or acquire, Common Stock prior to the termination of this
Agreement; provided, however, that such restrictions will not be required in connection with the
Company’s issuance or sale of (i) Common Stock, options to purchase Common Stock or Common Stock
issuable upon the exercise of options, pursuant to any employee or director stock option or
benefits plan, stock ownership plan or dividend reinvestment plan (but not Common Stock subject to
a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now in
effect or hereafter implemented; (ii) Common Stock issuable upon conversion of securities or the
exercise of warrants, options or other rights in effect or outstanding, and disclosed in filings by
the Company available on EDGAR or otherwise in writing to MLV and (iii) Common Stock, or securities
convertible into or exercisable for Common Stock, offered and sold in a privately negotiated
transaction to vendors, customers, strategic partners or potential strategic partners who are
qualified institutional buyers and not more than three persons that are “accredited investors”
within the meaning of such term under paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of Rule
501 under the Securities Act and otherwise conducted in a manner so as not to be integrated with
the offering of Common Stock hereby.

(i) Change of Circumstances. The Company will, at any time during the pendency of a
Placement Notice advise MLV promptly after it shall have received notice or obtained knowledge
thereof, of any information or fact that would alter or affect in any material respect any opinion,
certificate, letter or other document required to be provided to MLV pursuant to this Agreement.

(j) Due Diligence Cooperation. The Company will cooperate with any reasonable due
diligence review conducted by MLV or its representatives in connection with the transactions
contemplated hereby, including, without limitation, providing information and making available
documents and senior corporate officers, during regular business hours and at the Company’s
principal offices or such other location mutually agreed by the parties, as MLV may reasonably
request.

(k) Required Filings Relating to Placement of Placement Shares. The Company agrees
that on such dates as the Securities Act shall require, the Company will (i) file a prospectus
supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities
Act (each and every filing under Rule 424(b), a “Filing Date”), which prospectus supplement
will set forth, within the relevant period, the amount of Placement Shares sold through MLV, the
Net Proceeds to the Company and the compensation payable by the Company to MLV with respect to such
Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to each
exchange or market on which such sales were effected as may be required by the rules or regulations
of such exchange or market.

(l) Representation Dates; Certificate. On the date of this Agreement and each time
the Company:

(i) files the Prospectus relating to the Placement Shares or amends or supplements (other
than a prospectus supplement relating solely to an offering of securities other than the
Placement Shares) the Registration Statement or the Prospectus relating to the Placement
Shares by means of a post-effective amendment, sticker, or supplement but not by means of
incorporation of documents by reference into the Registration Statement or the Prospectus
relating to the Placement Shares;

(ii) files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A
containing amended financial information or a material amendment to the previously filed
Form 10-K);

(iii) files its quarterly reports on Form 10-Q under the Exchange Act; or

(iv) files a current report on Form 8-K containing amended financial information (other than
information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure
pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as
discontinued operations in accordance with Statement of Financial Accounting Standards No.
144) under the Exchange Act;

(Each date of filing of one or more of the documents referred to in clauses (i) through (iv)
shall be a “Representation Date.”)

the Company shall furnish MLV (but in the case of clause (iv) above only if MLV reasonably
determines that the information contained in such Form 8-K is material) with a certificate, in the
form attached hereto as Exhibit 7(l). The requirement to provide a certificate under this Section
7(l) shall be waived for any Representation Date occurring at a time at which no Placement Notice
is pending, which waiver shall continue until the earlier to occur of the date the Company delivers
a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation
Date) and the next occurring Representation Date; provided, however, that such waiver shall not
apply for any Representation Date on which the Company files its annual report on Form 10-K.
Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares
following a Representation Date when the Company relied on such waiver and did not provide MLV with
a certificate under this Section 7(l), then before the Company delivers the Placement Notice or MLV
sells any Placement Shares, the Company shall provide MLV with a certificate, in the form attached
hereto as Exhibit 7(l), dated the date of the Placement Notice.

(m) Legal Opinion. On or prior to the date of the first Placement Notice given
hereunder, the Company shall cause to be furnished to MLV written opinions of Faegre & Benson LLP
(“Company Counsel”), or other counsel reasonably satisfactory to MLV, in form and substance
satisfactory to MLV. Thereafter, within five (5) Trading Days of each Representation Date with
respect to which the Company is obligated to deliver a certificate in the form attached hereto as
Exhibit 7(l) for which no waiver is applicable, the Company shall cause to be furnished to MLV a
written letter of Company Counsel, in form and substance satisfactory to MLV, to the effect that
MLV may continue to rely on the opinion previously delivered.

(n) Comfort Letter. On or prior to the date of the first Placement Notice given
hereunder and within five (5) Trading Days of each Representation Date, other than pursuant to
Section 7(l)(iii), with respect to which the Company is obligated to deliver a certificate in the
form attached hereto as Exhibit 7(l) for which no waiver is applicable, the Company shall cause its
independent accountants to furnish MLV a letter, dated as of such date (the “Comfort
Letter”), (i) confirming that they are an independent registered public accounting firm within
the meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions and
findings of such firm with respect to the financial information and other matters ordinarily
covered by accountants’ “comfort letters” to underwriters in connection with registered public
offerings (the first such letter, the “Initial Comfort Letter”) and (iii) updating the
Initial Comfort Letter with any information that would have been included in the Initial Comfort
Letter had it been given on such date and modified as necessary to relate to the Registration
Statement and the Prospectus, as amended and supplemented to the date of such letter.

(o) Market Activities. The Company will not, directly or indirectly, (i) take any
action designed to cause or result in, or that constitutes or might reasonably be expected to
constitute, the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of Common Stock or (ii) sell, bid for, or purchase Common Stock in
violation of Regulation M, or pay anyone any compensation for soliciting purchases of the Placement
Shares other than MLV.

(p) Investment Company Act. The Company will conduct its affairs in such a manner so
as to reasonably ensure that neither it nor any of its Subsidiaries will be or become, at any time
prior to the termination of this Agreement, an “investment company,” as such term is defined in the
Investment Company Act.

(q) No Offer to Sell. Other than an Issuer Free Writing Prospectus approved in
advance by the Company and MLV in its capacity as agent hereunder, neither MLV nor the Company
(including its agents and representatives, other than MLV in their capacity as such) will, directly
or indirectly, make, use, prepare, authorize, approve or refer to any Issuer Free Writing
Prospectus relating to the Placement Shares to be sold by MLV as agent hereunder.

(r) Sarbanes-Oxley Act. The Company and the Subsidiaries will maintain and keep
accurate books and records reflecting their assets and maintain internal accounting controls in a
manner designed 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 and including those policies and procedures that (i) pertain to the
maintenance of records that in reasonable detail accurately and fairly reflect the transactions and
dispositions of the assets of the Company, (ii) provide reasonable assurance that transactions are
recorded as necessary to permit the preparation of the Company’s consolidated financial statements
in accordance with generally accepted accounting principals, (iii) that receipts and expenditures
of the Company are being made only in accordance with management’s and the Company’s directors’
authorization, and (iv) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that could have a material
effect on its financial statements. The Company and the Subsidiaries will maintain such controls
and other procedures, including, without limitation, those required by Sections 302 and 906 of the
Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to ensure that
information required to be disclosed by the Company in the reports that it files or submits under
the Exchange Act is recorded, processed, summarized and reported, within the time periods specified
in the Commission’s rules and forms, including, without limitation, controls and procedures
designed to ensure that information required to be disclosed by the Company in the reports that it
files or submits under the Exchange Act is accumulated and communicated to the Company’s
management, including its principal executive officer and principal financial officer, or persons
performing similar functions, as appropriate to allow timely decisions regarding required
disclosure and to ensure that material information relating to the Company or the Subsidiaries is
made known to them by others within those entities, particularly during the period in which such
periodic reports are being prepared.

8. Representations and Covenants of MLV. MLV represents and warrants that it is duly
registered as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and
regulations of each state in which the Placement Shares will be offered and sold, except such
states in which MLV is exempt from registration or such registration is not otherwise required.
MLV shall continue, for the term of this Agreement, to be duly registered as a broker-dealer under
FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the
Placement Shares will be offered and sold, except such states in which MLV is exempt from
registration or such registration is not otherwise required, during the term of this Agreement. MLV
will comply with all applicable law and regulations in connection with the Placement Shares,
including but not limited to Regulation M.

9. Payment of Expenses.

(a) The Company will pay all expenses incident to the performance of its obligations under
this Agreement, including (i) the preparation, filing, including any fees required by the
Commission, and printing of the Registration Statement (including financial statements and
exhibits) as originally filed and of each amendment and supplement thereto and each Free Writing
Prospectus, in such number as MLV shall deem necessary, (ii) the printing and delivery to MLV of
this Agreement and such other documents as may be required in connection with the offering,
purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation, issuance and
delivery of the certificates, if any, for the Placement Shares to MLV, including any stock or other
transfer taxes and any capital duties, stamp duties or other duties or taxes payable upon the sale,
issuance or delivery of the Placement Shares to MLV, (iv) the fees and disbursements of the
counsel, accountants and other advisors to the Company, (v) the reasonable fees and disbursements
of outside counsel to MLV, up to a maximum amount of $25,000, (vi)  the fees and expenses of the
transfer agent and registrar for the Common Stock, (vii) the filing fees incident to any review by
FINRA of the terms of the sale of the Placement Shares, and (viii) the fees and expenses incurred
in connection with the listing of the Placement Shares on the Exchange.

(b) If Placement Shares having aggregate proceeds of $10.0 million or more have not been
offered and sold under this Agreement by May 31, 2012 (or such earlier date at which the Company
terminates this Agreement), the Company shall reimburse MLV for its reasonable out-of-pocket
expenses, including the reasonable fees and disbursements of outside counsel for MLV incurred by
it in connection with the transactions contemplated by this Agreement. The amount of expenses
reimbursable shall be calculated by multiplying a fraction, whereby the numerator is $10.0 million
less the aggregate amount of proceeds from the number of Placement Shares sold by May 31,
2012, and the denominator is $10.0 million, times the total amount of out-of-pocket expenses (less
any amount paid under Section 9(a)(v)); provided, however, that in no event shall the Company’s
reimbursement obligations pursuant to this Section 9(b) exceed $25,000.

(c) If this Agreement is terminated by MLV in accordance with the provisions of Section 13(a)
hereof, the Company shall reimburse MLV for all of its out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for MLV (less any amounts paid under clauses (a) or
(b) above) provided, however, that in no event shall the Company’s reimbursement obligations
pursuant to this Section 9(c) exceed $25,000.

10. Conditions to MLV’s Obligations. The obligations of MLV hereunder with respect to
a Placement will be subject to the continuing accuracy and completeness of the representations and
warranties made by the Company herein, to the due performance by the Company of its obligations
hereunder, to the completion by MLV of a due diligence review satisfactory to it in its reasonable
judgment, and to the continuing satisfaction (or waiver by MLV in its sole discretion) of the
following additional conditions:

(a) Registration Statement Effective. The Registration Statement shall have become
effective and shall be available for the sale of all Placement Shares contemplated to be issued by
any Placement Notice.

(b) No Material Notices. None of the following events shall have occurred and be
continuing: (i) receipt by the Company of any request for additional information from the
Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or
supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or
any other federal or state governmental authority of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by
the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; or (iv) the occurrence of any event that makes any
material statement made in the Registration Statement or the Prospectus or any material document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, the Prospectus or documents
so that, in the case of the Registration Statement, it will not contain any materially untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading and, that in the case of the Prospectus, it
will not contain any materially untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

(c) No Misstatement or Material Omission. MLV shall not have advised the Company that
the Registration Statement or Prospectus, or any amendment or supplement thereto, contains an
untrue statement of fact that in MLV’s reasonable opinion is material, or omits to state a fact
that in MLV’s opinion is material and is required to be stated therein or is necessary to make the
statements therein not misleading.

(d) Material Changes. Except as contemplated in the Prospectus, or disclosed in the
Company’s reports filed with the Commission, there shall not have been any material adverse change,
on a consolidated basis, in the authorized capital stock of the Company or any Material Adverse
Effect, or any development that could reasonably be expected to cause a Material Adverse Effect.

(e) Legal Opinion. MLV shall have received the opinions of Company Counsel required
to be delivered pursuant Section 7(m) on or before the date on which such delivery of such opinions
are required pursuant to Section 7(m).

(f) Comfort Letter. MLV shall have received the Comfort Letter required to be
delivered pursuant Section 7(n) on or before the date on which such delivery of such letter is
required pursuant to Section 7(n).

(g) Representation Certificate. MLV shall have received the certificate required to
be delivered pursuant to Section 7(l) on or before the date on which delivery of such certificate
is required pursuant to Section 7(l).

(h) No Suspension. Trading in the Common Stock shall not have been suspended on the
Exchange, and the Common Stock shall not have been delisted from the Exchange.

(i) Other Materials. On each date on which the Company is required to deliver a
certificate pursuant to Section 7(l), the Company shall have furnished to MLV such appropriate
further information, certificates and documents as MLV may reasonably request. All such opinions,
certificates, letters and other documents will be in compliance with the provisions hereof. The
Company will furnish MLV with such conformed copies of such opinions, certificates, letters and
other documents as MLV shall reasonably request.

(j) Securities Act Filings Made. All filings with the Commission required by Rule 424
under the Securities Act to have been filed prior to the issuance of any Placement Notice hereunder
shall have been made within the applicable time period prescribed for such filing by Rule 424.

(k) Approval for Listing. The Placement Shares shall either have been approved for
listing on the Exchange, subject only to notice of issuance, or the Company shall have filed an
application for listing of the Placement Shares on the Exchange at, or prior to, the issuance of
any Placement Notice.

(l) No Termination Event. There shall not have occurred any event that would permit
MLV to terminate this Agreement pursuant to Section 13(a).

11. Indemnification and Contribution.

(a) Company Indemnification. The Company agrees to indemnify and hold harmless MLV,
its partners, members, directors, officers, employees and agents and each person, if any, who
controls MLV within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act as follows:

(i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
joint or several, arising out of or based upon any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement (or any amendment thereto), or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading, or arising out of any untrue statement or alleged untrue
statement of a material fact included in any related Issuer Free Writing Prospectus or the
Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom
of a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

(ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission; provided that any such settlement is effected with the written consent of
the Company, which consent shall not unreasonably be delayed or withheld; and

(iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel), reasonably incurred in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or
(ii) above,

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made solely in reliance upon and in conformity with written
information furnished to the Company by MLV expressly for use in the Registration Statement (or any
amendment thereto), or in any related Issuer Free Writing Prospectus or the Prospectus (or any
amendment or supplement thereto).

(b) MLV Indemnification. MLV agrees to indemnify and hold harmless the Company and
its directors and each officer of the Company who signed the Registration Statement, and each
person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act or (ii) is controlled by or is under common control with the
Company against any and all loss, liability, claim, damage and expense described in the indemnity
contained in Section 11(c), as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Registration Statement (or any amendments
thereto) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in
conformity with information relating to MLV and furnished to the Company in writing by MLV
expressly for use therein.

(c) Procedure. Any party that proposes to assert the right to be indemnified under
this Section 11 will, promptly after receipt of notice of commencement of any action against such
party in respect of which a claim is to be made against an indemnifying party or parties under this
Section 11, notify each such indemnifying party of the commencement of such action, enclosing a
copy of all papers served, but the omission so to notify such indemnifying party will not relieve
the indemnifying party from (i) any liability that it might have to any indemnified party otherwise
than under this Section 11 and (ii) any liability that it may have to any indemnified party under
the foregoing provision of this Section 11 unless, and only to the extent that, such omission
results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such
action is brought against any indemnified party and it notifies the indemnifying party of its
commencement, the indemnifying party will be entitled to participate in and, to the extent that it
elects by delivering written notice to the indemnified party promptly after receiving notice of the
commencement of the action from the indemnified party, jointly with any other indemnifying party
similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to
the indemnified party, and after notice from the indemnifying party to the indemnified party of its
election to assume the defense, the indemnifying party will not be liable to the indemnified party
for any legal or other expenses except as provided below and except for the reasonable costs of
investigation subsequently incurred by the indemnified party in connection with the defense. The
indemnified party will have the right to employ its own counsel in any such action, but the fees,
expenses and other charges of such counsel will be at the expense of such indemnified party unless
(1) the employment of counsel by the indemnified party has been authorized in writing by the
indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel)
that there may be legal defenses available to it or other indemnified parties that are different
from or in addition to those available to the indemnifying party and a conflict or potential
conflict exists (based on advice of counsel to the indemnified party) between the indemnified party
and the indemnifying party (in which case the indemnifying party will not have the right to direct
the defense of such action on behalf of the indemnified party) or (3) the indemnifying party has
not in fact employed counsel to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases the reasonable fees,
disbursements and other charges of counsel will be at the expense of the indemnifying party or
parties. It is understood that the indemnifying party or parties shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm admitted to practice in such
jurisdiction at any one time for all such indemnified party or parties. All such fees,
disbursements and other charges will be reimbursed by the indemnifying party promptly after the
indemnifying party receives a written invoice relating to fees, disbursements and other charges in
reasonable detail. An indemnifying party will not, in any event, be liable for any settlement of
any action or claim effected without its written consent. No indemnifying party shall, without the
prior written consent of each indemnified party, settle or compromise or consent to the entry of
any judgment in any pending or threatened claim, action or proceeding relating to the matters
contemplated by this Section 11 (whether or not any indemnified party is a party thereto), unless
such settlement, compromise or consent (1) includes an unconditional release of each indemnified
party from all liability arising out of such litigation, investigation, proceeding or claim and
(2) 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.

(d) Contribution. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in the foregoing paragraphs of this Section
11 is applicable in accordance with its terms but for any reason is held to be unavailable from the
Company or MLV, the Company and MLV will contribute to the total losses, claims, liabilities,
expenses and damages (including any investigative, legal and other expenses reasonably incurred in
connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim
asserted, but after deducting any contribution received by the Company from persons other than MLV,
such as persons who control the Company within the meaning of the Securities Act, officers of the
Company who signed the Registration Statement and directors of the Company, who also may be liable
for contribution) to which the Company and MLV may be subject in such proportion as shall be
appropriate to reflect the relative benefits received by the Company on the one hand and MLV on the
other hand. The relative benefits received by the Company on the one hand and MLV on the other
hand shall be deemed to be in the same proportion as the total net proceeds from the sale of the
Placement Shares (before deducting expenses) received by the Company bear to the total compensation
received by MLV (before deducting expenses) from the sale of Placement Shares on behalf of the
Company. If, but only if, the allocation provided by the foregoing sentence is not permitted by
applicable law, the allocation of contribution shall be made in such proportion as is appropriate
to reflect not only the relative benefits referred to in the foregoing sentence but also the
relative fault of the Company, on the one hand, and MLV, on the other hand, with respect to the
statements or omission that resulted in such loss, claim, liability, expense or damage, or action
in respect thereof, as well as any other relevant equitable considerations with respect to such
offering. Such relative fault shall be determined by reference to, among other things, 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 or MLV, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and MLV agree that it would not be just and equitable if
contributions pursuant to this Section 11(d) were to be determined by pro rata allocation 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,
liability, expense, or damage, or action in respect thereof, referred to above in this Section
11(d) shall be deemed to include, for the purpose of this Section 11(d), any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim to the extent consistent with Section 11(c) hereof.
Notwithstanding the foregoing provisions of this Section 11(d), MLV shall not be required to
contribute any amount in excess of the commissions received by it under this Agreement and no
person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 11(d), any person who controls a party
to this Agreement within the meaning of the Securities Act, and any officers, directors, partners,
employees or agents of MLV, will have the same rights to contribution as that party, and each
officer and director of the Company who signed the Registration Statement will have the same rights
to contribution as the Company, subject in each case to the provisions hereof. Any party entitled
to contribution, promptly after receipt of notice of commencement of any action against such party
in respect of which a claim for contribution may be made under this Section 11(d), will notify any
such party or parties from whom contribution may be sought, but the omission to so notify will not
relieve that party or parties from whom contribution may be sought from any other obligation it or
they may have under this Section 11(d) except to the extent that the failure to so notify such
other party materially prejudiced the substantive rights or defenses of the party from whom
contribution is sought. Except for a settlement entered into pursuant to the last sentence of
Section 11(c) hereof, no party will be liable for contribution with respect to any action or claim
settled without its written consent if such consent is required pursuant to Section 11(c) hereof.

12. Representations and Agreements to Survive Delivery. The indemnity and
contribution agreements contained in Section 11 of this Agreement and all representations and
warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of
their respective dates, regardless of (i) any investigation made by or on behalf of MLV, any
controlling persons, or the Company (or any of their respective officers, directors or controlling
persons), (ii) delivery and acceptance of the Placement Shares and payment therefor or (iii) any
termination of this Agreement.

13. Termination.

(a) MLV may terminate this Agreement, by notice to the Company as hereinafter specified, at
any time (1) if there has been, since the time of execution of this Agreement or since the date as
of which information is given in the Prospectus, any Material Adverse Effect, or any development
that has occurred that is reasonably likely to have a Material Adverse Effect has occurred or, in
the sole judgment of MLV, is material and adverse and makes it impractical or inadvisable to market
the Placement Shares or to enforce contracts for the sale of the Placement Shares, (2) if there has
occurred any material adverse change in the financial markets in the United States or the
international financial markets, any outbreak of hostilities or escalation thereof or other
calamity or crisis or any change or development involving a prospective change in national or
international political, financial or economic conditions, in each case the effect of which is such
as to make it, in the judgment of MLV, impracticable or inadvisable to market the Placement Shares
or to enforce contracts for the sale of the Placement Shares, (3) if trading in the Common Stock
has been suspended or limited by the Commission or the Exchange, or if trading generally on the
Exchange has been suspended or limited, or minimum prices for trading have been fixed on the
Exchange, (4) if any suspension of trading of any securities of the Company on any exchange or in
the over-the-counter market shall have occurred and be continuing, (5) if a major disruption of
securities settlements or clearance services in the United States shall have occurred and be
continuing, or (6) if a banking moratorium has been declared by either U.S. Federal or New York
authorities. Any such termination shall be without liability of any party to any other party
except that the provisions of Section 9 (Expenses) (insofar as it applies to unsatisfied
obligations), Section 11 (Indemnification), Section 12 (Survival of Representations), Section 18
(Applicable Law; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain
in full force and effect notwithstanding such termination. If MLV elects to terminate this
Agreement as provided in this Section 13(a), MLV shall provide the required notice as specified in
Section 14 (Notices).

(b) (i) The Company shall have the right, by giving ten (10) days notice as hereinafter
specified, to terminate this Agreement in its sole discretion at any time after the date of this
Agreement. (ii) If MLV declines any commercially reasonable Placement Notice pursuant to clause
(i) of Section 2 of this Agreement, then the Company shall have the right to terminate this
Agreement by giving written notice of termination to MLV. Any such termination pursuant to this
Section 13(b) shall be effective immediately upon a delivery of a termination notice by the Company
to MLV. Any such termination shall be without liability of any party to any other party except that
the provisions of Section 9 (insofar as it applies to unsatisfied obligations), Section 11, Section
12, Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such
termination.

(c) MLV shall have the right, by giving ten (10) days notice as hereinafter specified, to
terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any
such termination shall be without liability of any party to any other party except that the
provisions of Section 9 (insofar as it applies to unsatisfied obligations), Section 11, Section 12,
Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such
termination.

(d) Unless earlier terminated pursuant to this Section 13, this Agreement shall automatically
terminate upon the earlier to occur of (i) the two (2) year anniversary of the date hereof or (ii)
the issuance and sale of all of the Placement Shares through MLV on the terms and subject to the
conditions set forth herein except that the provisions of Section 9 (insofar as it applies to
unsatisfied obligations), Section 11, Section 11, Section 12, Section 18 and Section 19 hereof
shall remain in full force and effect notwithstanding such termination.

(e) This Agreement shall remain in full force and effect unless terminated pursuant to
Sections 13(a), (b), (c), or (d) above or otherwise by mutual agreement of the parties; provided,
however, that such termination by mutual agreement shall in all cases be deemed to provide that
Section 9 (insofar as it applies to unsatisfied obligations), Section 11, Section 12, Section 18
and Section 19 shall remain in full force and effect notwithstanding such termination. Upon
termination of this Agreement, the Company shall not have any liability to MLV for any discount,
commission or other compensation with respect to any Shares not otherwise sold by MLV under this
Agreement.

(f) Any termination of this Agreement shall be effective on the date specified in such notice
of termination; provided, however, that such termination shall not be effective until the close of
business on the date of receipt of such notice by MLV or the Company, as the case may be. If such
termination shall occur prior to the Settlement Date for any sale of Placement Shares, such
Placement Shares shall settle in accordance with the provisions of this Agreement.

14. Notices. All notices or other communications required or permitted to be given by
any party to any other party pursuant to the terms of this Agreement shall be in writing, unless
otherwise specified, and if sent to MLV, shall be delivered to:

McNicoll, Lewis & Vlak LLC

1251 Avenue of the Americas, 41st Floor

New York, NY 10020

Attention: General Counsel

Facsimile: (212) 542-5870

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

Holme Roberts & Owen, LLP

1700 Lincoln Street, Suite 4100

Denver, CO 80203

Attention: Garth B. Jensen, Esq.

Facsimile: (303) 866-0368

	 	 	and if to the Company, shall be delivered to:

Double Eagle Petroleum Co.

1675 Broadway, Suite 2200

Denver, Colorado 80202

Attention: Kurtis Hooley

Facsimile: (303) 794-8485

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

Faegre & Benson LLP

1700 Lincoln Street, Suite 3200

Denver, Colorado 80203

Attention: Douglas R. Wright, Esq.

Facsimile: (303) 607-3600

Each party to this Agreement may change such address for notices by sending to the parties to
this Agreement written notice of a new address for such purpose. Each such notice or other
communication shall be deemed given (i) when delivered personally or by verifiable facsimile
transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business
Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next
Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the
Business Day actually received if deposited in the U.S. mail (certified or registered mail, return
receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall
mean any day on which the Exchange and commercial banks in the City of New York are open for
business.

An electronic communication (“Electronic Notice”) shall be deemed written notice for
purposes of this Section 14 if sent to the electronic mail address specified by the receiving party
under separate cover. Electronic Notice shall be deemed received at the time the party sending
Electronic Notice receives confirmation of receipt by the receiving party. Any party receiving
Electronic Notice may request and shall be entitled to receive the notice on paper, in a
nonelectronic form (“Nonelectronic Notice”), which shall be sent to the requesting party
within ten (10) days of receipt of the written request for Nonelectronic Notice.

15. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the Company and MLV and their respective successors and the affiliates, controlling
persons, officers and directors referred to in Section 11 hereof. References to any of the parties
contained in this Agreement shall be deemed to include the successors and permitted assigns of such
party. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and permitted assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement. Neither party may assign its rights or obligations under this Agreement without
the prior written consent of the other party.

16. Adjustments for Stock Splits. The parties acknowledge and agree that all
share-related numbers contained in this Agreement shall be adjusted to take into account any share
consolidation, stock split, stock dividend, corporate domestication or similar event effected with
respect to the Placement Shares.

17. Entire Agreement; Amendment; Severability. This Agreement (including all
schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) constitutes
the entire agreement and supersedes all other prior and contemporaneous agreements and
undertakings, both written and oral, among the parties hereto with regard to the subject matter
hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written
instrument executed by the Company and MLV. 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 as written by a court of competent jurisdiction, then such provision shall be given
full force and effect to the fullest possible extent that it is valid, legal and enforceable, and
the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or
unenforceable term or provision was not contained herein, but only to the extent that giving effect
to such provision and the remainder of the terms and provisions hereof shall be in accordance with
the intent of the parties as reflected in this Agreement.

18. GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. THE COMPANY 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.

19. CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH
OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION
CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR
PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT
SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT,
ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS
AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY
THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN
EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD
AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO
LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

20. Use of Information. MLV may not use any information gained in connection with this
Agreement and the transactions contemplated by this Agreement, including due diligence, to advise
any party with respect to transactions not expressly approved by the Company. MLV acknowledges that
any information gained in connection with this Agreement and the transactions contemplated by this
Agreement are subject to confidentiality and other restrictions pursuant to the Confidentiality
Agreement between the parties and agrees to abide by the terms of the Confidentiality Agreement.

21. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed Agreement by one party to the other may be made by electronic
(pdf) or facsimile transmission.

22. Effect of Headings.

The section and Exhibit headings herein are for convenience only and shall not affect the
construction hereof.

23. Permitted Free Writing Prospectuses.

The Company represents, warrants and agrees that, unless it obtains the prior consent of MLV,
which shall not be unreasonably withheld, conditioned or delayed, and MLV represents, warrants and
agrees that, unless it obtains the prior consent of the Company, it has not made and will not make
any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus,
or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to
be filed with the Commission. Any such free writing prospectus consented to by MLV or by the
Company, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.”
The Company represents and warrants that it has treated and agrees that it will treat each
Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433,
and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free
Writing Prospectus, including timely filing with the Commission where required, legending and
record keeping. For the purposes of clarity, the parties hereto agree that all free writing
prospectuses, if any, listed in Exhibit G hereto are Permitted Free Writing Prospectuses.

24. Absence of Fiduciary Relationship.

The Company acknowledges and agrees that:

(a) MLV is acting solely as agent in connection with the public offering of the Placement
Shares and in connection with each transaction contemplated by this Agreement and the process
leading to such transactions, and no fiduciary or advisory relationship between the Company or any
of its respective affiliates, stockholders (or other equity holders), creditors or employees or any
other party, on the one hand, and MLV, on the other hand, has been or will be created in respect of
any of the transactions contemplated by this Agreement, irrespective of whether or not MLV has
advised or is advising the Company on other matters, and MLV has no obligation to the Company with
respect to the transactions contemplated by this Agreement except the obligations expressly set
forth in this Agreement;

(b) it is capable of evaluating and understanding, and understands and accepts, the terms,
risks and conditions of the transactions contemplated by this Agreement;

(c) MLV has not provided any legal, accounting, regulatory or tax advice with respect to the
transactions contemplated by this Agreement and it has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate;

(d) it is aware that MLV and its affiliates are engaged in a broad range of transactions which
may involve interests that differ from those of the Company and MLV has no obligation to disclose
such interests and transactions to the Company by virtue of any fiduciary, advisory or agency
relationship or otherwise; provided that MLV hereby agrees not to engage in any such transaction
which would cause its interests, to MLV’s knowledge, to be in direct conflict with the best
interests of the Company; and

(e) it waives, to the fullest extent permitted by law, any claims it may have against MLV for
breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of
Placement Shares under this Agreement and agrees that MLV shall not have any liability (whether
direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim
or to any person asserting a fiduciary duty claim on its behalf or in right of it or the Company,
employees or creditors of Company, other than in respect of MLV’s obligations under this Agreement
and to keep information provided by the Company to MLV and MLV’s counsel confidential to the extent
not otherwise publicly-available.

25. Definitions.

As used in this Agreement, the following terms have the respective meanings set forth below:

“Applicable Time” means (i) each Representation Date and (ii) the time of each sale of
any Placement Shares pursuant to this Agreement.

“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as
defined in Rule 433, relating to the Placement Shares.

“Rule 163,” “Rule 164,” “Rule 172,” “Rule 405,” “Rule
415,” “Rule 424,” “Rule 424(b),” “Rule 430B,” and “Rule 433”
refer to such rules under the Securities Act Regulations.

All references in this Agreement to financial statements and schedules and other information
that is “contained,” “included” or “stated” in the Registration Statement or the Prospectus (and
all other references of like import) shall be deemed to mean and include all such financial
statements and schedules and other information that is incorporated by reference in the
Registration Statement or the Prospectus, as the case may be.

All references in this Agreement to the Registration Statement, the Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the
Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing
Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not
required to be filed with the Commission) shall be deemed to include the copy thereof filed with
the Commission pursuant to EDGAR; and all references in this Agreement to “supplements” to the
Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials
prepared in connection with any offering, sale or private placement of any Placement Shares by MLV
outside of the United States.

1

If the foregoing correctly sets forth the understanding between the Company and MLV, please so
indicate in the space provided below for that purpose, whereupon this letter shall constitute a
binding agreement between the Company and MLV.

Very truly yours,

	 	 	 
	DOUBLE EAGLE PETROLEUM CO.
	 
	By:
	 	/s/ Kurtis Hooley

	 	 	 

	 	 	Name: Kurtis Hooley

	 	 	Title: Sr. VP and Chief Financial Officer

	 	 	ACCEPTED as of the date first-above written:

	 	 	 
	MCNICOLL, LEWIS & VLAK LLC
	 
	By:
	 	/s/ Patrice McNicoll

	 	 	 

	 	 	Name: Patrice McNicoll

	 	 	Title: Chief Executive Officer

SCHEDULE 1

FORM OF PLACEMENT NOTICE

	 	 	 
	From:

To:

	 	Double Eagle Petroleum Co.

McNicoll, Lewis & Vlak LLC

	 	 	 
	Attention: Patrice McNicoll

	Subject:

	 	At Market Issuance—Placement Notice

Gentlemen:

Pursuant to the terms and subject to the conditions contained in the At Market Issuance Sales
Agreement between Double Eagle Petroleum Co., a Maryland corporation (the “Company”) and
McNicoll, Lewis & Vlak LLC (“MLV”), dated August 23, 2011, the Company hereby requests that
MLV sell up to        shares of the Company’s Common Stock, $0.10 par value per share, at a
minimum market price of $    per share, during the time period beginning [month, day, time] and
ending [month, day, time]. The maximum number of shares that can be sold in any one Trading Day is
     .

SCHEDULE 2

Compensation

The Company shall pay to MLV in cash, upon the settlement of each sale of Placement Shares
pursuant to this Agreement, an amount equal to 3.0% of the gross proceeds from each such sale of
Placement Shares.

SCHEDULE 3

Notice Parties

	 	 	 
	The Company

	 	

	 

	 	

	Kurtis Hooley

Ashley Jenkins

	 	

	MLV

	 	

	 

	 	

	Patrice McNicoll

Randy Billhardt

Ryan Loforte

John Ray

	 	

SCHEDULE 4

Subsidiaries

Eastern Washakie Midstream, LLC

Petrosearch Energy Corporation

EXHIBIT 7(l)

Form of Representation Date Certificate

This Officers Certificate (this “Certificate”) is executed and delivered in connection with
Section 7(l) of the At Market Issuance Sales Agreement (the “Agreement”), dated August 23,
2011, and entered into between Double Eagle Petroleum Co. (the “Company”) and McNicoll,
Lewis & Vlak LLC. All capitalized terms used but not defined herein shall have the meanings given
to such terms in the Agreement

The undersigned, a duly appointed and authorized officer of the Company, having made
reasonable inquiries to establish the accuracy of the statements below and having been authorized
by the Company to execute this certificate on behalf of the Company, hereby certifies as follows:

1. As of the date of this Certificate, (i) the Registration Statement does not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein not misleading and (ii) neither the
Registration Statement nor the Prospectus contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading and (iii) no
event has occurred as a result of which it is necessary to amend or supplement the Prospectus in
order to make the statements therein not untrue or misleading for (i) and (ii) to be true.

2. Each of the representations and warranties of the Company contained in the Agreement were
true and correct in all material respects when originally made, and, except for those
representations and warranties that speak solely as of a specific date, are true and correct as of
the date of this Certificate.

3. Except as waived by MLV in writing, each of the covenants required to be performed by the
Company in the Agreement on or prior to the date of the Agreement, this Representation Date, and
each such other date prior to the date hereof as set forth in the Agreement, has been duly, timely
and fully performed in all material respects and each condition required to be complied with by the
Company on or prior to the date of the Agreement, this Representation Date, and each such other
date prior to the date hereof as set forth in the Agreement has been duly, timely and fully
complied with in all material respects.

4. Subsequent to the date of the most recent financial statements in the Prospectus, and
except as described in the Prospectus, including Incorporated Documents, there has been no material
adverse change.

5. No stop order suspending the effectiveness of the Registration Statement or of any part
thereof has been issued, and no proceedings for that purpose have been instituted or are pending or
threatened by any securities or other governmental authority (including, without limitation, the
Commission).

6. No stop order suspending the effectiveness of (a) the Registration Statement or of
any part thereof or (b) the qualification or registration of the Placement Shares under the
securities or Blue Sky laws of any jurisdiction has been issued, and, to the Company’s
knowledge, no proceedings for that purpose have been instituted or are pending or threatened
by any securities or other governmental authority (including, without limitation, the
Commission).

The undersigned has executed this Officer’s Certificate as of the date first written above.

	 
	DOUBLE EAGLE PETROLEUM CO.

	By: /s/Kurtis Hooley

	 

	Name: Kurtis Hooley

	Title: Sr. Vice President, Chief Financial Officer

2

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