Document:

Exhibit 10.3

 

AMENDMENT AND CONSENT NO. 5 TO REVOLVING
CREDIT AGREEMENT

 

AMENDMENT  AND CONSENT NO. 5 (this “Amendment and
Consent”), dated as of May 8, 2008, among FH PARTNERS LLC, a Texas
limited liability company (the “Borrower”), the financial institutions
which are parties to the Agreement hereinafter referred to (each a “Lender”
and collectively, the “Lenders”), and BANK OF SCOTLAND, as agent for the
Lenders (in such capacity, the “Agent”) under the Revolving Credit
Agreement, dated as of August 26, 2005, among the Borrower, the Lenders
and the Agent (as
heretofore amended or otherwise modified, the “Agreement”).

 

W  I  T  N  E
S  S  E  T  H:

 

WHEREAS, the Borrower has requested (i) that
the Lenders amend the Agreement to delete Section 8A(a)(ii) thereof
and (ii) that the Lenders consent to waive compliance with the
requirements of such Section for the fiscal quarter ended March 31,
2008; and

 

WHEREAS, the Lenders are willing to consent to the foregoing on
and subject to the terms hereof;

 

NOW, THEREFORE, it is agreed:

 

1.  Definitions.  All terms used herein which are defined in
the Agreement (including, to the extent any such terms are to be added or
amended by this Amendment and Consent, as if such terms were already added or
amended by this Amendment and Consent, unless the context shall otherwise
indicate) shall have the same meanings when used herein unless otherwise
defined herein.  All references to
Sections in this Amendment and Consent shall be deemed references to Sections
in the Agreement unless otherwise specified.

 

2.  Effect of Amendment.  As used in the Agreement (including all
Exhibits thereto), the Notes and the other Loan Documents and all other
instruments and documents executed in connection with any of the foregoing, on and subsequent to the Amendment
Closing Date (as hereinafter defined), any reference to the Agreement shall
mean the Agreement as amended hereby.

 

3.  Representations.  In order to induce the Agent and the Lenders
to execute this Amendment and Consent, the Borrower hereby represents, warrants
and covenants to the Agent and the Lenders as of the date hereof and (if
different) as of the Amendment Closing Date (which representations, warranties
and covenants shall survive the execution, delivery and effectiveness of this
Amendment and Consent) as follows:

 

(a)           No Default or Event
of Default exists.

 

 

1

 

(b)           Each representation
and warranty made by Borrower and each other Loan Party in the Loan Documents
is true and correct.

 

(c)           The execution and
delivery of this Amendment and Consent by the Borrower and the consummation of
the transactions contemplated herein have been duly authorized by all necessary
corporate action.

 

(d)           This Amendment and
Consent is the legal, valid and binding obligation of the Borrower, enforceable
in accordance with its terms subject, as to enforceability, to applicable
bankruptcy, insolvency, reorganization and similar laws affecting the
enforcement of creditors’ rights generally and to general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).

 

(e)           No Material Adverse
Change has occurred since June 30, 2007.

 

4.  Requests.  Borrower hereby requests that the Lenders (a) waive
any Event of Default resulting from the failure of the Borrower to comply with
the terms of Section 8A(a)(ii) of the Agreement and (b) agree to
an amendment of the Agreement to remove Section 8A(a)(ii) therefrom.

 

5.  Consent to Waiver.  In reliance upon the representations, warranties
and agreements set forth herein, the Agent and the Lenders hereby consent to
waive any Event of Default resulting from the failure of the Borrower to comply
with the terms of Section 8A(a)(ii) of the Agreement for the fiscal
quarter ended March 31, 2008.

 

6.  Amendment.  In reliance upon the representations,
warranties and agreements set forth herein, as of the date hereof, the
Agreement is hereby amended by amending and restating in its entirety Section 8A(a)(ii) thereof
to read as follows:

 

                                “(ii) [Intentionally deleted];”

 

7.  Effectiveness.  This Amendment and Consent shall become
effective when each of the following conditions have been fulfilled to the
satisfaction of the Agent (or waived by the Agent).

 

(a)           Signed Copies.  The Borrower, the Lenders and the Agent shall
have executed a copy hereof and delivered the same to the Agent at 565 Fifth
Avenue, New York, New York 10017 (Attention:  Loan Documentation) or such other place
directed by the Agent.

 

(b)           Guarantor’s
Consent.  Each Guarantor shall have
executed a confirming consent, substantially in the form attached hereto as
Annex A or otherwise satisfactory to the Agent (a “Confirming Consent”),
and delivered the same to the Agent at 565 Fifth Avenue, New York, New York
10017 (Attention:  Loan Documentation) or such other
place directed by the Agent.

 

(c)           No Defaults.  No Default or Event of Default shall exist.

 

 

2

 

(d)           Accuracy of
Representations.  Each representation
and warranty made by the Borrower and each other Loan Party in the Agreement
and the other Loan Documents shall be true and correct in all material respects
as of the Amendment Closing Date with the same effect as though made at and as
of such date (except for those that specifically speak as of a prior date).

 

8.  Ratification and Release.  The Borrower does hereby remise, release and
forever discharge the Agent and the Lenders and each of their respective
affiliates, successors, officers, directors, employees, counsel and agents, past
and present, and each of them, of and from any and all manner of actions, and
causes of action, suits, debts, dues, accounts, bonds, covenants, contracts,
agreements, judgments, claims and demands whatsoever in law or in equity, which
against the Agent, the Lenders or any of their respective affiliates,
successors, officers, directors, employees, counsel or agents, or any one or
more of them, the Borrower ever had, now has, or hereafter can, shall or may
have for or by reason of any cause, matter or thing that occurred or did not
occur on or prior to the Amendment Closing Date with respect to the Agreement,
this Amendment and Consent or any Security Document or other Loan Document, any
previous version hereof or thereof or any proposed amendment or waiver hereof
or thereof.

 

9.  Limited Nature of Amendments and Waivers.
 The amendments and waivers set forth
herein are limited precisely as written and shall not be deemed to prejudice
any right or rights which the Agent or the Lenders may now have or may have in
the future under or in connection with the Agreement or any of the other Loan
Documents. Except as expressly consented to herein, the terms and provisions of
the Agreement and all other Loan Documents remain in full force and effect.

 

10.  Governing Law.  THIS AMENDMENT AND CONSENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO CHOICE OF LAW DOCTRINE THAT WOULD RESULT IN THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION.

 

11.  Writings Only.  THIS AMENDMENT AND CONSENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT
TO THE MATTERS COVERED HEREBY AND THEREBY AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.

 

THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

 

12.  Counterparts.  This Amendment and Consent may be executed in
any number of counterparts, and by the different parties on the same or
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all of which together shall constitute one and
the same agreement.  

 

3

 

Telecopied
signatures hereto and to the Confirming Consent shall be of the same force and
effect as an original of a manually signed copy.

 

13.  Headings.  The descriptive headings of the various
provisions of this Amendment and Consent are inserted for convenience of
reference only and shall not be deemed to affect the meaning or construction of
any of the provisions hereof.

 

[Signature
page follows.]

 

4

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment and Consent to be duly executed and delivered by their
respective duly authorized officers.

 

 

	
   

  	
  BANK
  OF SCOTLAND,

  Individually and as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  

  
	
   

  	
   

  	
  Title:  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FH
  PARTNERS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  

  
	
   

  	
   

  	
  Title:  

  
					

 

 

 

 

[Signature
Page to Amendment and Consent No. 5 to Revolving Credit Agreement]

 

 

 

Annex A

 

CONFIRMING CONSENT

 

                Reference is hereby made to the foregoing Amendment
and Consent No. 5 dated as of May 8, 2008 (the “Amendment and
Consent”) to the Revolving Credit Agreement dated as of August 26,
2005 among the Borrower, the Lenders and the Agent; said agreement, as amended
and modified by the Amendment and Consent and from time to time hereafter
further amended or otherwise modified, the “Amended  Agreement”.

 

                Each Guarantor hereby consents to the terms and provisions
of the Amendment and Consent and confirms and acknowledges that:

 

(a) 
its obligations under the Loan Documents to which it is a party remain in full
force and effect and the terms “Obligations” and “Secured Obligations” used in
such Loan Documents include all Obligations of the Borrower under the Amended
Agreement; and

 

                (b)  its consent and acknowledgement hereunder
is not required under the terms of such Loan Documents and any failure to
obtain its consent or acknowledgment to any subsequent amendment to the
Agreement or the Amended Agreement or any of the other Loan Documents will not
affect the validity of its obligations under the aforesaid Loan Documents or
any other Loan Document, and this consent and acknowledgement is being
delivered for purposes of form only.

 

                Capitalized
terms used herein and not otherwise defined have the same meanings as in the
Amended Agreement.  This Consent is dated
as of the Amendment Closing Date (as defined in the Amendment and Consent).

 

	
  FIRSTCITY FINANCIAL
  CORPORATION    

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice President

  
	
   

  
	
   

  
	
  FIRSTCITY COMMERCIAL
  CORPORATION 

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice President

  
	
   

  
	
   

  
	
  FIRSTCITY EUROPE
  CORPORATION 

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice President

  

 

 

 

	
   

  
	
  FIRSTCITY HOLDINGS
  CORPORATION 

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice President

  
	
   

  
	
   

  
	
  FIRSTCITY INTERNATIONAL
  CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice President

  
	
   

  
	
   

  
	
  FIRSTCITY MEXICO, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice President

  
	
   

  
	
   

  
	
  FIRSTCITY SERVICING
  CORPORATION 

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  James
  C. Holmes

  
	
   

  	
  Title:  Executive
  Vice PresidentExhibit 10.1

 

ASSET
PURCHASE AND SALE AGREEMENT

 

by and
between

 

NGS SUB.
CORP.

(SELLER)

 

and

 

MWM
ENERGY, LLC

(BUYER)

 

Dated:
FEBRUARY 15, 2008

 

 

	
  ARTICLE 1. - DEFINITIONS

  	
  1

  
	
  1.1.

  	
  “Definitions”

  	
  1

  
	
  1.2.

  	
  “Accounting Referee”

  	
  1

  
	
  1.3.

  	
  “Aggregate Defect Basket”

  	
  1

  
	
  1.4.

  	
  “Agreement”

  	
  1

  
	
  1.5.

  	
  “Allocated Value”

  	
  1

  
	
  1.6.

  	
  “Assets”

  	
  2

  
	
  1.7.

  	
  “Assumed Obligations”

  	
  2

  
	
  1.8.

  	
  “Benefit Plan”

  	
  2

  
	
  1.9.

  	
  “Business Day”

  	
  2

  
	
  1.10.

  	
  “Buyer”

  	
  2

  
	
  1.11.

  	
  “Buyer Group”

  	
  3

  
	
  1.12.

  	
  “Buyer’s Credits”

  	
  3

  
	
  1.13.

  	
  “Casualty Loss”

  	
  3

  
	
  1.14.

  	
  “Certificate”

  	
  3

  
	
  1.15.

  	
  “Claims”

  	
  3

  
	
  1.16.

  	
  “Closing”

  	
  3

  
	
  1.17.

  	
  “Closing Date”

  	
  3

  
	
  1.18.

  	
  “Company”

  	
  3

  
	
  1.19.

  	
  “Confidentiality Agreement”

  	
  3

  
	
  1.20.

  	
  “Defect Value”

  	
  3

  
	
  1.21.

  	
  “Defensible Title”

  	
  3

  
	
  1.22.

  	
  “Effective Time”

  	
  3

  
	
  1.23.

  	
  “Encumbrance”

  	
  3

  
	
  1.24.

  	
  “Environmental
  Deductible”

  	
  3

  
	
  1.25.

  	
  “Environmental Defect”

  	
  3

  
	
  1.26.

  	
  “Environmental Defect
  Notice Date”

  	
  4

  
	
  1.27.

  	
  “Environmental
  Obligations”

  	
  4

  
	
  1.28.

  	
  “Escrow Agreement”

  	
  5

  
	
  1.29.

  	
  “Escrow Deposit”

  	
  5

  
	
  1.30.

  	
  “Excluded Assets”

  	
  5

  
	
  1.31.

  	
  “Final Settlement” and “Final Settlement Statement”

  	
  6

  
	
  1.32.

  	
  “Governmental Authority” and “Final Settlement
  Statement”

  	
  6

  
	
  1.33.

  	
  “Hydrocarbons”

  	
  6

  
	
  1.34.

  	
  “Inventory Hydrocarbons”

  	
  6

  
	
  1.35.

  	
  “Leases”

  	
  6

  
	
  1.36.

  	
  “Material”

  	
  6

  
	
  1.37.

  	
  “Material Adverse Effect”

  	
  6

  
	
  1.38.

  	
  “Material Contracts”

  	
  7

  
	
  1.39.

  	
  “Permitted Encumbrances”

  	
  7

  
	
  1.40.

  	
  “Person”

  	
  7

  
	
  1.41.

  	
  “Plugging and Abandonment Obligations”

  	
  7

  
	
  1.42.

  	
  “Preferential Purchase Rights”

  	
  7

  
	
  1.43.

  	
  “Purchase Price”

  	
  8

  
	
  1.44.

  	
  “Real Property, Personal Property and Incidental
  Rights”

  	
  8

  
	
  1.45.

  	
  “Retained Obligations”

  	
  9

  

 

i

 

	
  1.46.

  	
  “Seller’s Credits”

  	
  9

  
	
  1.47.

  	
  “Seller Group”

  	
  9

  
	
  1.48.

  	
  “Shares”

  	
  9

  
	
  1.49.

  	
  “Scheduled Interests” or “Scheduled Interest”

  	
  9

  
	
  1.50.

  	
  “Tax” or “Taxes”

  	
  10

  
	
  1.51.

  	
  “Taxing Authority”

  	
  10

  
	
  1.52.

  	
  “Tax Return”

  	
  10

  
	
  1.53.

  	
  “Third Party Interests”

  	
  10

  
	
  1.54.

  	
  “Title Defect”

  	
  10

  
	
  1.55.

  	
  “Title Defect Deductible”

  	
  10

  
	
  1.56.

  	
  “Title Defect Notice Date”

  	
  10

  
	
  1.57.

  	
  “Title Defect Property”

  	
  10

  
	
  1.58.

  	
  “Well” or “Wells”

  	
  10

  
	
  ARTICLE 2. - AGREEMENT TO PURCHASE AND SELL 

  	
  10

  
	
  ARTICLE 3. - PURCHASE PRICE AND PAYMENT 

  	
  10

  
	
  3.1.

  	
  Purchase Price

  	
  10

  
	
  3.2.

  	
  Escrow Deposit

  	
  11

  
	
  3.3.

  	
  Adjustments to Purchase Price

  	
  11

  
	
  3.4.

  	
  Manner of Payment

  	
  12

  
	
  3.5.

  	
  Final Settlement Statement

  	
  13

  
	
  3.6.

  	
  Post Closing Revenues

  	
  13

  
	
  3.2.

  	
  Post Closing Expenses

  	
  14

  
	
  3.8.

  	
  Purchase Price Allocation

  	
  14

  
	
  ARTICLE 4. - SELLER’S REPRESENTATIONS AND WARRANTIES 

  	
  14

  
	
  ARTICLE 5. - BUYER’S REPRESENTATIONS AND WARRANTIES 

  	
  19

  
	
  ARTICLE 6. - ACCESS TO INFORMATION AND INSPECTIONS 

  	
  20

  
	
  6.1.

  	
  Title Files

  	
  20

  
	
  6.2.

  	
  Other Files

  	
  21

  
	
  6.3.

  	
  Confidentiality Agreement

  	
  21

  
	
  6.4.

  	
  Inspections

  	
  21

  
	
  6.5.

  	
  No Warranty or Representation on Seller’s
  Information

  	
  21

  
	
  ARTICLE 7. - ENVIRONMENTAL MATTERS AND ADJUSTMENTS 

  	
  22

  
	
  ARTICLE 8. - TITLE DEFECTS AND ADJUSTMENTS 

  	
  23

  
	
  8.1.

  	
  Definitions

  	
  23

  
	
  (a)

  	
  “Allocated Value”

  	
  23

  
	
  (b)

  	
  “Defensible Title”

  	
  23

  
	
  (c)

  	
  “Title Defect”

  	
  24

  
	
  (d)

  	
  “Title Defect Property”

  	
  25

  
	
  (e)

  	
  “Permitted Encumbrances”

  	
  25

  
	
  8.2.

  	
  Notice of Title Defects

  	
  26

  
	
  8.3.

  	
  Title Defect Adjustment

  	
  27

  
	
  8.4.

  	
  Environmental Defect and Title Defect Values

  	
  27

  
	
  8.5.

  	
  Title Warranty

  	
  29

  
	
  ARTICLE 9. - DISCLAIMERS 

  	
  29

  
	
  9.1.

  	
  Disclaimer – Representations and Warranties

  	
  29

  
	
  9.2.

  	
  Statements and Information

  	
  30

  

 

ii

 

	
  ARTICLE 10. - PREFERENTIAL PURCHASE RIGHTS

  	
  30

  
	
  10.1.

  	
  Actions and Consents

  	
  30

  
	
  ARTICLE 11. - COVENANTS

  	
  31

  
	
  11.1.

  	
  Conduct of Operations

  	
  31

  
	
  11.2.

  	
  Limitations on Seller’s Covenants Pending Closing

  	
  32

  
	
  11.3.

  	
  Conduct of Company Business

  	
  32

  
	
  11.4.

  	
  Return of Information

  	
  33

  
	
  ARTICLE 12. - CLOSING CONDITIONS 

  	
  33

  
	
  12.1.

  	
  Seller’s Closing Conditions

  	
  33

  
	
  12.2.

  	
  Buyer’s Closing Conditions

  	
  34

  
	
  ARTICLE 13. - CLOSING

  	
  35

  
	
  13.1.

  	
  Closing

  	
  35

  
	
  13.2.

  	
  Seller’s Closing Obligations

  	
  35

  
	
  13.3.

  	
  Buyer’s Closing Obligations

  	
  36

  
	
  13.4.

  	
  Joint Closing Obligations

  	
  36

  
	
  ARTICLE 14. —LIMITATIONS ON WARRANTIES

  	
  36

  
	
  14.1.

  	
  Limitations on Warranties and Remedies

  	
  36

  
	
  14.2.

  	
  Waiver of Trade Practices Acts

  	
  37

  
	
  ARTICLE 15. - CASUALTY LOSS AND CONDEMNATION

  	
  38

  
	
  ARTICLE 16. - REMEDIES

  	
  38

  
	
  16.1.

  	
  Seller’s Remedies

  	
  38

  
	
  16.2.

  	
  Buyer’s Remedies

  	
  39

  
	
  16.3.

  	
  Other Remedies

  	
  39

  
	
  16.4.

  	
  Effect of Termination

  	
  39

  
	
  16.5.

  	
  Limitations on Damages

  	
  39

  
	
  ARTICLE 17. - ASSUMPTION AND INDEMNITY

  	
  39

  
	
  17.1.

  	
  Assumed Obligations; Pre-Closing Liabilities

  	
  39

  
	
  17.2.

  	
  Buyer’s Indemnity

  	
  40

  
	
  17.3.

  	
  Seller’s Indemnity

  	
  40

  
	
  17.4.

  	
  Stipulation Regarding Express Negligence And Fault

  	
  40

  
	
  17.5.

  	
  Broker or Finder’s Fee

  	
  41

  
	
  17.6.

  	
  Litigation

  	
  41

  
	
  17.7.

  	
  Insurance, Taxes

  	
  41

  
	
  17.8.

  	
  Waiver of Certain Damages

  	
  41

  
	
  17.9.

  	
  Extent of Indemnification

  	
  41

  
	
  17.10.

  	
  Disclaimer of Application of Anti-Indemnity Statutes

  	
  41

  
	
  17.11.

  	
  Waiver of Right to Rescission

  	
  42

  
	
  17.12.

  	
  Indemnity Claims

  	
  42

  
	
  ARTICLE 18. - MISCELLANEOUS

  	
  43

  
	
  18.1.

  	
  Receivables and other Excluded Funds

  	
  43

  
	
  18.2.

  	
  Arbitration

  	
  43

  
	
  18.3.

  	
  Public Announcements

  	
  44

  
	
  18.4.

  	
  Filing and Recording of Assignments, etc.

  	
  45

  
	
  18.5.

  	
  Further Assurances and Records

  	
  45

  
	
  18.6.

  	
  Notices

  	
  46

  
	
  18.7.

  	
  Incidental Expenses

  	
  47

  

 

iii

 

	
  18.8.

  	
  Waiver

  	
  47

  
	
  18.9.

  	
  Binding Effect; Assignment

  	
  48

  
	
  18.10.

  	
  Taxes

  	
  48

  
	
  18.11.

  	
  Audits

  	
  49

  
	
  18.12.

  	
  Like-Kind Exchanges

  	
  49

  
	
  18.13.

  	
  Governing Law

  	
  49

  
	
  18.14.

  	
  Entire Agreement

  	
  49

  
	
  18.15.

  	
  Severability

  	
  50

  
	
  18.16.

  	
  Exhibits and Schedules

  	
  50

  
	
  18.17.

  	
  Delivery of Files After Closing

  	
  50

  
	
  18.18.

  	
  Survival

  	
  50

  
	
  18.19.

  	
  Subsequent Adjustments

  	
  50

  
	
  18.20.

  	
  Counterparts

  	
  51

  
	
  18.21.

  	
  Subrogation

  	
  51

  
	
  18.22.

  	
  Suspended Monies

  	
  51

  
	
  18.23.

  	
  Change of Name

  	
  51

  
	
  18.24.

  	
  Replacement of Bonds, Letters of Credit and Guarantees

  	
  51

  
	
  18.25.

  	
  No Third-Party Beneficiaries

  	
  51

  
	
  18.26.

  	
  Time of Performance

  	
  52

  

 

iv

 

EXHIBITS

 

	
  Exhibit “A-1”

  	
  Leases

  
	
  Exhibit “A-2”

  	
  Wells

  
	
  Exhibit “A-3”

  	
  Contracts
  and Other Agreements

  
	
  Exhibit “A-4”

  	
  Right-of
  Ways, Easements and Surface Leases

  
	
  Exhibit “A-5”

  	
  Surface
  Estates

  
	
  Exhibit “B”

  	
  Escrow
  Agreement

  
	
  Exhibit “C”

  	
  Allocated
  Values

  
	
  Exhibit “D”

  	
  Assignment,
  Conveyance and Bill of Sale

  
	
  Exhibit “E-1”

  	
  [Intentionally
  Deleted]

  
	
  Exhibit “F”

  	
  Litigation

  
	
  Exhibit “G”

  	
  Gas and
  Oil Imbalances

  
	
  Exhibit “H”

  	
  Consents
  to Assign and Preferential Rights to Purchase and Burdens

  
	
  Exhibit “I”

  	
  Non-Foreign
  Affidavit

  
	
  Exhibit “J”

  	
  Certificate

  

 

SCHEDULES

 

	
  Schedule
  1.28(j)

  	
  Excluded
  Assets

  
	
  Schedule
  4.13(e)

  	
  Company
  Liabilities

  
	
  Schedule
  4.19

  	
  Company
  Banks/Financial Institutions

  
	
  Schedule
  4.23

  	
  Company
  Initial Contracts

  

 

v

 

ASSET
PURCHASE AND SALE AGREEMENT

 

This Asset Purchase and
Sale Agreement (“Agreement”), dated as of February 15,
2008, is by and between NGS Sub. Corp.,
a Delaware corporation, whose address is 2500 City West Boulevard, Suite 1300,
Houston, Texas 77042 (“Seller”),
and MWM Energy, LLC, a Texas limited
liability company (“Buyer”),
whose address is 114 30th
Avenue South, Nashville, Tennessee  37212. 
Seller and Buyer are sometimes together referred to herein individually
as a “Party” or collectively as “Parties.”

 

R E C I T
A L S

 

WHEREAS, Seller
owns certain oil and gas leasehold interests and related assets more fully
described on the exhibits hereto;

 

WHEREAS, Seller
owns all of the shares of Four Star Development Corporation as more fully
described herein;

 

WHEREAS, Seller
desires to sell and Buyer desires to acquire these interests, related assets,
and shares on the terms and conditions hereinafter provided;

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth, Seller
and Buyer hereby agree as follows:

 

ARTICLE
1. - DEFINITIONS

 

1.1.                            “Definitions” 
In this Agreement, capitalized terms have the meanings provided in this
Section, unless defined elsewhere in this Agreement.  All defined terms include both the singular
and the plural of such terms.  All
references to Sections refer to Sections in this Agreement and all references
to Exhibits or Schedules refer to Exhibits or Schedules attached to and made a
part of this Agreement.  When the term “herein”
is used in this Agreement, reference is made to the entire Agreement and not to
any particular Section or subparagraph of a Section.  The word “including” shall mean including
without limitation.

 

1.2.                            “Accounting Referee” 
means the accounting firm of KPMG, or such other nationally recognized
United States based accounting firm as is mutually agreed upon by the Parties,
together with any experts such firm may require in order to settle a particular
dispute.

 

1.3.                            “Aggregate Defect Basket” shall be as defined in Section 7.4.

 

1.4.                            “Agreement” shall mean this Asset Purchase and Sale
Agreement between Seller and Buyer.

 

1.5.                            “Allocated Value” shall mean the dollar amount allocated to
each Scheduled Interest as set forth on Exhibit “C.”

 

1

 

1.6.                            “Assets” shall mean the following described
assets and properties (except to the extent constituting Excluded Assets):

 

(a)                                  the Leases;

 

(b)                                 the Real Property, Personal Property and
Incidental Rights;

 

(c)                                  the Inventory Hydrocarbons; and

 

(d)                                 the Shares.

 

1.7.                            “Assumed Obligations” shall mean with respect to the Assets:

 

(a)                                  the Plugging and Abandonment Obligations;

 

(b)                                 all Environmental Obligations, whether
related to, or arising from, events occurring before or after the Effective
Date, except those specifically included in the definition of “Retained
Obligations”;

 

(c)                                  all obligations with respect to gas
production, sales or imbalances with third parties;

 

(d)                                 except as otherwise provided in this
Agreement, including the Seller’s obligations to indemnify, all other
liabilities, duties, and obligations that arise out of the ownership, operation
or use of the Assets after the Effective Time, including, but not limited to,
the payment of all operating expenses and capital expenditures relating to the
Assets, all liabilities, duties, and obligations, express or implied, imposed
upon Seller herein under the provisions of the Leases and any and all
assignments, subleases, farmout agreements, assignments of overriding royalty,
joint operating agreements, easements, rights-of-way, and all other contracts,
agreements and instruments affecting the Leases, or the premises covered
thereby, whether recorded or unrecorded, whether or not identified on the
Exhibits or schedules attached hereto and under all applicable laws, rules,
regulations, orders and ordinances.

 

1.8.                            “Benefit Plan”  means: (a) each “employee
benefit plan,” as such term is defined in Section 3(3) of ERISA, (b) each
plan that would be an “employee benefit plan”, as such term is defined in Section 3(3) of
ERISA, if it were subject to ERISA, such as foreign plans and plans for
directors, (c) each stock bonus, stock ownership, stock option, stock
purchase, stock appreciation rights, phantom stock, or other equity-based plan,
and (d) each bonus or incentive compensation plan, or other compensation
agreement, contract or arrangement.

 

1.9.                            “Business Day”  means a Day, except
Saturday, Sunday and Days when federally chartered banks in the United States
are required to be closed.

 

1.10.                     “Buyer”  “Buyer” has the meaning set
forth in the introductory paragraph.

 

2

 

1.11.                     “Buyer Group”  “Buyer Group” means Buyer
and its officers, directors, agents, representatives, consultants and
employees.

 

1.12.                     “Buyer’s Credits” shall be as defined in Section 3.3(b).

 

1.13.                     “Casualty Loss” shall be as defined in Article 15.

 

1.14.                     “Certificate”  means a document in the form
of Exhibit “J”.

 

1.15.                     “Claims” shall be as defined in Section 17.2.

 

1.16.                     “Closing” shall be as defined in Section 13.1.

 

1.17.                     “Closing Date” shall be as defined in Section 13.1.

 

1.18.                     “Company” shall mean Four Star Development
Corporation, a Louisiana corporation.

 

1.19.                     “Confidentiality Agreement”
shall be as
defined in Section 6.3.

 

1.20.                     “Defect Value” shall be as defined in Section 8.4.

 

1.21.                     “Defensible Title” shall be as defined in Section 8.1(b).

 

1.22.                     “Effective Time” shall mean 7:00 a.m., Central
Standard Time, on February 1, 2008.

 

1.23.                     “Encumbrance” shall mean any lien, security interest,
pledge, charge or encumbrance.

 

1.24.                     “Environmental Deductible” shall mean any lien, security interest,
pledge, charge or encumbrance.

 

1.25.                     “Environmental Defect” shall mean:

 

(a)                                  a condition or activity with respect to a
Scheduled Interest that is in material violation, or reasonably likely to
materially violate, any federal, state or local statute, or any rule, order,
ruling or regulation entered, issued or made by any court, administrative
agency, or other governmental body or entity, federal, state, or local, or any
arbitrator (“Environmental Law”), or
surface or mineral lease obligation, whether an express or implied obligation,
relating to natural resources, conservation, the environment, or the emission,
release, storage, treatment, disposal, transportation, handling or management
of industrial or solid waste, hazardous waste, hazardous or toxic substances,
chemicals or pollutants, petroleum, including crude oil, natural gas, natural
gas liquids, or liquefied natural gas, and any wastes associated with the
exploration and production of oil and gas (“Regulated
Substances”); or

 

3

 

(b)                                 the presence of Regulated Substances in
the soil, groundwater, or surface water in, on, at or under a Scheduled Interest
in any manner or quantity which is required to be remediated by Environmental
Law or by any applicable action or guidance levels or other standards published
by any governmental agency with jurisdiction over the Assets, or by a surface
or mineral lease obligation, whether an express or implied obligation.  Buyer and Seller agree that for a condition
to be in violation of any statute or regulation it shall not be necessary that
Seller shall be under notice of violation from a federal or state regulatory
agency or lessor.

 

The Parties agree
and acknowledge that (i) Buyer will be provided an opportunity to examine
the Assets for potential naturally occurring radioactive materials (“NORM”), and any potential obligations with respect
to NORM, and (ii) that the presence of NORM on any of the Assets may not
be raised by Buyer as the subject of an Environmental Defect.

 

1.26.                     “Environmental Defect Notice
Date” shall
be as defined in Section 7.1.

 

1.27.                     “Environmental Obligations” shall mean all liabilities, obligations,
expenses (including, without limitation, all attorneys’ fees), fines,
penalties, costs, claims, suits or damages (including natural resource damages)
of any nature, associated with the Assets, and attributable to or resulting
from:

 

(a)                                  pollution or contamination of soil,
surface water, groundwater or air, on, in, by, from or under the Assets or
lands in the vicinity thereof, and any other contamination of or adverse effect
upon the environment;

 

(b)                                 underground injection activities and
waste disposal;

 

(c)                                  clean-up responses, remedial, control or
compliance costs, including the required cleanup or remediation of spills,
pits, lakes, ponds, or lagoons, including any subsurface or surface pollution
caused by such spills, pits, lakes, ponds, or lagoons;

 

(d)                                 noncompliance with applicable land use,
permitting, surface disturbance, licensing or notification requirements,
including those in a surface or mineral lease, whether an express or implied
obligation;

 

(e)                                  violation of any federal, state or local
Environmental Law or land use law, or surface or mineral lease obligation,
whether an express or implied obligation;

 

(f)                                    any other violation which could qualify
as an Environmental Defect (without being limited to Scheduled Interests); and

 

(g)                                 any and all indemnity obligations of
Seller with respect to the above, along with any and all Claims against Seller
for indemnity with respect to the above, under, pursuant to or arising from any
acquisition, purchase and sale or other agreement.

 

Notwithstanding any
provision of this Agreement to the contrary, “Environmental 

 

4

 

Obligations” shall
not include Plugging and Abandonment Obligations (including with respect to
NORM).

 

1.28.                     “Escrow Agreement” shall be defined in Section 3.2.

 

1.29.                     “Escrow Deposit” shall be as defined in Section 3.2.

 

1.30.                     “Excluded Assets” shall mean the following:

 

(a)                                  (i) all trade credits, accounts
receivable, notes receivable and other receivables attributable to Seller’s
interest in the Assets with respect to any period of time prior to the
Effective Time; (ii) all deposits, cash, checks in process of collection,
cash equivalents and funds attributable to Seller’s interest in the Assets with
respect to any period of time prior to the Effective Time; and (iii) all
proceeds, benefits, income or revenues accruing with respect to the Assets
prior to the Effective Time;

 

(b)                                 all corporate, financial, and tax records
of Seller, and those records subject to attorney/client privilege; however,
Buyer shall be entitled to receive copies of any tax records which directly
relate to any Assumed Obligations, or which are necessary for Buyer’s
ownership, administration, or operation of the Assets;

 

(c)                                  all claims and causes of action of Seller
arising from acts, omissions or events, or damage to or destruction of the
Asset, occurring prior to the Effective Time; provided, however, Seller shall
transfer to Buyer all claims and causes of action of Seller against prior
owners of the Assets or third parties for Environmental Obligations that are
not Retained Obligations;

 

(d)                                 except as otherwise provided in Article 15,
all rights, titles, claims and interests of Seller relating to the Assets prior
to the Effective Time (i) under any policy or agreement of insurance or
indemnity; (ii) under any bond; or (iii) to any insurance or
condemnation proceeds or awards;

 

(e)                                  all Hydrocarbons produced from or
attributable to the Assets with respect to all periods prior to the Effective
Time, together with all proceeds from or of such Hydrocarbons, except the
Inventory Hydrocarbons and the unsold inventory of gas plant products, if any,
attributable to the Leases as of the Effective Time;

 

(f)                                    claims of Seller for refund of or loss
carry forwards with respect to production, windfall profit, severance, ad
valorem or any other taxes attributable to any period prior to the Effective
Time, or income or franchise taxes;

 

(g)                                 all amounts due or payable to Seller as
adjustments or refunds under any contracts or agreements (including take-or-pay
claims) affecting the Assets with respect to any period prior to the Effective
Time;

 

(h)                                 all amounts due or payable to Seller as
adjustments to insurance premiums 

 

5

 

related to the
Assets with respect to any period prior to the Effective Time;

 

(i)                                     all proceeds, benefits, income or
revenues accruing (and any security or other deposits made) with respect to the
Assets, and all accounts receivable attributable to the Assets, prior to the
Effective Time; and

 

(j)                                     all of Seller’s intellectual property,
including, but not limited to, proprietary computer software, patents, trade
secrets, copyrights, names, marks and logos.

 

(k)                                  the Assets identified on Schedule
1.28(j).

 

1.31.                     “Final Settlement” and “Final Settlement
Statement” shall be as defined in Section 3.5.

 

1.32.                     “Governmental Authority” shall Governmental Authority” means any
federal, state, local, municipal or other governments; any governmental,
regulatory or administrative agency, commission, body or other authority
exercising or entitled to exercise any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power; and any court or
governmental tribunal

 

1.33.                     “Hydrocarbons” shall mean crude oil, natural gas,
casinghead gas, condensate, sulphur, natural gas liquids and other liquid or
gaseous hydrocarbons, and shall also refer to all other minerals of every kind
and character which may be covered by or included in the Leases and Assets.

 

1.34.                     “Inventory Hydrocarbons” shall mean all merchantable oil and
condensate (for oil or liquids in storage tanks, being only that oil or liquids
physically above the top of the inlet connection into such tanks) produced from
or attributable to the Leases prior to the Effective Time which have not been
sold by Seller and are in storage at the Effective Time.

 

1.35.                     “Leases” shall mean, except to the extent
constituting Excluded Assets, any and all interests owned by Seller in and to
the oil, gas and/or mineral leases set forth on Exhibit “A-1,”
including any overriding royalty interests, net profit interests, working
interests, reversionary interests, and any other interests of Seller in said
oil, gas and/or mineral leases, or the lands covered by said Leases.

 

1.36.                     “Material” shall be as defined in Section 7.1.

 

1.37.                     “Material Adverse Effect”  “Material Adverse Effect”
means an event or circumstance that (a) results in a material adverse
effect on the business, Assets, financial condition, or results of operations
of the Company taken as a whole or (b) makes impossible the consummation
of the transactions contemplated by this Agreement; provided, however, that any
actual change or changes in reserves (including any reclassification or
recalculation of reserves in the ordinary course of business) or in the prices
of Hydrocarbons, ordinary wear and tear and any change in condition of the
Assets for production of Hydrocarbons through normal depletion or other
mechanical failure (including the watering-out of any well, 

 

6

 

collapsed casing or sand
infiltration of any well), general economic conditions or local, regional,
national or international industry or economic conditions (including changes in
applicable Laws and changes in financial or market conditions) shall be deemed
not to constitute a “Material Adverse Effect.”

 

1.38.                     “Material Contracts”  “Material Contracts” has the
meaning set forth in Section 4.23.

 

1.39.                     “Permitted Encumbrances” shall be as defined in Section 8.1(e).

 

1.40.                     “Person”  means an individual, group,
partnership, corporation, limited liability company, trust or other entity.

 

1.41.                     “Plugging and Abandonment
Obligations” shall
mean the responsibility and liability, including but not limited to Claims for
damages and/or other relief, for the following plugging and abandonment
obligations related to the Assets, regardless of whether they are attributable
to the ownership or operation of the Assets before or after the Effective Time:

 

(a)                                  the necessary and proper plugging,
replugging and abandonment of all Wells, whether plugged and abandoned before
or after the Effective Time;

 

(b)                                 the necessary and proper removal,
abandonment, and disposal of all platforms, structures, pipelines, equipment,
movables, immovables, abandoned property and junk located on or comprising part
of the Assets;

 

(c)                                  to the extent allowed by the applicable
authorized governmental body and the owners of the property affected, the
necessary and proper capping and burying of all associated flow lines located
on or comprising part of the Assets;

 

(d)                                 the necessary and proper restoration of
the Assets and/or the property covered by the Assets or upon which the Assets
are located, both surface, surface water, groundwater, waterbottom and subsurface,
to such condition as may be required by applicable laws, regulation or
contract;

 

(e)                                  any necessary clean-up or disposal of
Assets contaminated by NORM as may be required by applicable laws, regulation
or contract;

 

(f)                                    all obligations arising from contractual
requirements and demands made by authorized governmental bodies or parties
claiming an interest in the Assets and/or the property covered by the Assets or
upon which the Assets are located; and

 

(g)                                 any and all indemnity obligations of
Seller with respect to the above, along with any and all Claims against Seller
for indemnity with respect to the above, under, pursuant to or arising from any
acquisition, purchase and sale or other agreement.

 

1.42.                     “Preferential Purchase Rights” shall be as defined in Section 10.1(b).

 

7

 

1.43.                     “Purchase Price” shall be as defined in Section 3.1.

 

1.44.                     “Real Property, Personal
Property and Incidental Rights” shall mean all right, title and interest of Seller in
and to or derived from the following insofar as the same do not constitute
Excluded Assets and are attributable to, appurtenant to, incidental to, or used
for the operation of the Leases:

 

(a)                                  all fee interests and surface estate
interests described on Exhibit “A-5”;

 

(b)                                 all easements, rights-of-way, surface
leases, permits, licenses, servitudes or other interests relating to the use of
the surface, including but not limited to those described on Exhibit “A-4,”
or in instruments described in Exhibit “A-3”;

 

(c)                                  all Wells, along with all equipment and
other personal property, inventory, spare parts, tools, fixtures, pipelines,
dehydration facilities, platforms, tank batteries, appurtenances, and
improvements situated upon the Leases or lands pooled or unitized therewith as
of the Effective Time and used or held for use in connection with the
development or operation of the Leases or the production, treatment, storage,
compression, processing or transportation of Hydrocarbons from or in the Wells
or the Leases or lands pooled or unitized therewith including, but not limited
to those described on Exhibit “A-2”;

 

(d)                                 all unit agreements, orders and decisions
of state and federal regulatory authorities establishing units, joint operating
agreements, enhanced recovery and injection agreements, farmout agreements and
farmin agreements, options, drilling agreements, exploration agreements,
assignments of operating rights, working interests, subleases and rights above
or below certain footage depths or geological formations, to the extent same is
attributable to the Assets, as of the Effective Time, including but not limited
to those described on Exhibit “A-3”;

 

(e)                                  all contracts, agreements, and title
instruments to the extent attributable to and affecting the Assets in existence
at Closing, including all Hydrocarbon sales, purchase, gathering,
transportation, treating, marketing, exchange, processing, disposal and
fractionating contracts, joint operating agreements, including but not limited
to those described on Exhibit “A-3”;

 

(f)                                    originals of all lease files, land files,
well files, production records, division order files (including paysheets and
supporting files), abstracts, title opinions, and contract files, insofar as
the same are directly related to the Leases, including, without limitation, all
geological, information
and data, to the extent that such data is not subject to any third party
restrictions, but excluding Seller’s proprietary interpretations of same; and

 

(g)                                 the Company books, records and files of
Four Star Development Corporation, including but not limited to, permits,
licenses, corporate records, minute book, contracts, title records, tax records
relating solely to the business of the Company, financial, engineering and
safety records.

 

8

 

1.45.                     “Retained Obligations” shall mean:

 

(a)                                  any
Environmental Obligation of any nature related to the Excluded Assets;

 

(b)                                 all
Environmental Obligations of any nature that relate to or arise from events
occurring as of the date NGS acquired the Assets through the Closing Date.

 

(c)                                  Claims for personal injury or wrongful death
occurring prior to the Effective Time;

 

(d)                                 responsibility to any governmental agency
for any offsite storage and disposal by Seller, prior to the Effective Time, of
hazardous materials produced from the Assets, and stored or disposed of, on, in
or below any property which does not form a part of the Assets, for which and
to the extent that remediation is required by any environmental or conservation
law in effect as of the Effective Time; for purposes of this subpart “(d),” “offsite
storage and disposal” shall not include the seepage, leakage or other migration
of hazardous materials from the property forming part of the Assets to other
lands;

 

(e)                                  responsibility and liability for the
litigation and threatened litigation listed on Exhibit “F,” and the
Claims thereunder; and

 

(f)                                    except as otherwise provided in this
Agreement, all other liabilities, duties, and obligations that arise out of the
ownership, operation or use of the Assets prior to the Effective Time,
including, but not limited to, the payment of all operating expenses and
capital expenditures relating to the Assets, all liabilities, duties, and
obligations, express or implied, imposed upon Seller herein under the
provisions of the Leases and any and all assignments, subleases, farmout
agreements, assignments of overriding royalty, joint operating agreements,
easements, rights-of-way, and all other contracts, agreements and instruments affecting
the Leases, or the premises covered thereby, whether recorded or unrecorded,
whether identified or not on the Exhibits or Schedules attached hereto and
under all applicable laws, rules, regulations, orders and ordinances.

 

1.46.                     “Seller’s Credits” shall be as defined in Section 3.3(a).

 

1.47.                     “Seller Group”  means (a) Seller and
its officers, directors, agents, representatives, consultants and employees,
and (b) Seller’s Parent and Affiliates and their officers, directors,
agents, representatives, consultants and employees.

 

1.48.                     “Shares” shall mean all of the issued and
outstanding capital stock of Four Star Development Corporation, a Louisiana
Corporation.

 

1.49.                     “Scheduled Interests” or “Scheduled
Interest”  shall
mean that portion of the Assets attributable to the Leases or Wells identified
on Exhibits “A-1” and “A-2” and having a value greater than $0.00.

 

9

 

1.50.                     “Tax” or “Taxes” means all income, profits, franchise,
withholding, ad valorem, employment, social security, disability, occupation,
property, severance and excise taxes, together with any interest and penalties
with respect thereto, imposed by or on behalf of any Taxing Authority.

 

1.51.                     “Taxing Authority” means, with
respect to any Tax, the governmental entity or political subdivision thereof
that imposes such Tax, and the agency (if any) charged with the collection of
such Tax for such entity or subdivision, including any governmental or
quasi-governmental entity or agency that imposes, or is charged with
collecting, social security or similar charges or premiums.

 

1.52.                     “Tax Return” means any
return, declaration, report, claim for refund, or information return or
statement relating to Taxes, including any schedule or attachment thereto.

 

1.53.                     “Third Party Interests” shall be as defined in Section 10.1(c).

 

1.54.                     “Title Defect” shall be as defined in Section 8.1(c).

 

1.55.                     “Title Defect Deductible” shall be as defined in Section 8.3(a).

 

1.56.                     “Title Defect Notice Date”  shall be as defined in Section 8.2.

 

1.57.                     “Title Defect Property”  shall be as defined in Section 8.1(d).

 

1.58.                     “Well” or “Wells” shall  refer to all wells located
on the Assets, or lands pooled or unitized therewith, including but not limited
to those listed on Exhibit “A-2” attached hereto, whether or not
such wells are producing, active or inactive, plugged and abandoned,
temporarily abandoned, shut-in, injection, disposal, water supply or otherwise.

 

ARTICLE
2. - AGREEMENT TO PURCHASE AND SELL

 

Subject to the
terms and conditions of this Agreement, Seller agrees to sell and convey to
Buyer and Buyer agrees to purchase and pay for the Assets and to assume the
Assumed Obligations.

 

ARTICLE
3. - PURCHASE PRICE AND PAYMENT

 

3.1.                            Purchase Price.

 

Subject to
adjustment as set forth below, the Purchase Price for the Assets shall be  Four
Million Five Hundred Thousand and No/100 dollars ($4,500,000.00), allocated
among the Scheduled Interests as provided in Section 3.8.

 

10

 

3.2.                            Escrow Deposit.

 

Immediately upon
the execution hereof, Buyer shall tender to Wells Fargo Bank, N.A.  (the “Bank”), by wire transfer, the Escrow Deposit in
the amount of One Hundred Thousand and No/100 dollars ($100,000.00) (the “Escrow
Deposit”). The Escrow Deposit will be placed in an interest-bearing account with
the Bank in accordance with the escrow agreement that is attached hereto as Exhibit “B” (the “Escrow Agreement”). 
In the event the transaction contemplated hereby is consummated in
accordance with the terms hereof, the Escrow Deposit and any accrued interest,
shall be applied to the Purchase Price to be paid by Buyer at Closing, in
accordance with Section 3.3(b). 
In the event this Agreement is terminated by the Buyer or Seller in
accordance with Article 16 below, the Escrow Deposit and any
accrued interest, shall be returned to Buyer or retained by the Seller as
provided for herein. In the event the Escrow Deposit is not received by the Bank by the close of business
on the first Business Day after the execution of this Agreement, this Agreement
shall be null and void, and the Parties shall have no further obligation to
each other hereunder.

 

3.3.                            Adjustments to Purchase
Price.

 

The Purchase Price
for the Assets shall be adjusted as follows with all such amounts being
determined in accordance with generally accepted accounting principals and
Council of Petroleum Accountants Society (COPAS) standards:

 

(a)                                  The Purchase Price shall be adjusted
upward by the following (“Seller’s Credits”):

 

(1)                                  the value of (i) all Inventory
Hydrocarbons, such value to be based upon the existing contract price for crude
oil in effect as of the Effective Time, less severance taxes, transportation
fees and other fees deducted by the purchaser of such oil, such oil to be
measured at the Effective Time by the operators of the Assets;

 

(2)                                  the amount of all direct expenditures,
production expenses, operating expenses, capital expenses, and all other
expenditures attributable to the Assets and incurred and paid by or on behalf
of Seller in the ordinary course of owning and/or operating the Assets and
attributable to the period from the Effective Time to the Closing Date, provided, however, this provision shall be subject to Section 11.1
after the execution of the Agreement through the Closing Date;

 

(3)                                  an amount equal to all prepaid expenses
that are actually paid by or on behalf of Seller prior to the Initial Closing
Date in the ordinary course of owning and/or operating the Assets as heretofore
owned and/or operated and attributable to the Assets and allocable to any
period after the Effective Time;

 

(4)                                  an amount equal to the sum of any upward
adjustments provided elsewhere in this Agreement; and

 

11

 

(5)                                  any other amount agreed upon by Seller
and Buyer in writing prior to Closing.

 

(b)                                 The Purchase Price shall be adjusted
downward by the following (“Buyer’s Credits”):

 

(1)                                  the amount of gross proceeds received by
or credited to Seller that are attributable to the sale of any Hydrocarbon
production from the Assets for any period of time after the Effective Time net
of all applicable production related taxes and royalties paid by or on behalf
of Seller;

 

(2)                                  the amount of all unpaid ad valorem,
property, production, excise, severance and similar taxes and assessments (but
not including income taxes), which taxes and assessments become due and payable
or accrue to the Assets prior to the Effective Time, which amount shall, where
possible, be computed based upon the tax rate and values applicable to the tax
period in question; otherwise, the amount of the adjustment under this
paragraph shall be computed based upon such taxes assessed against the
applicable portion of the Assets for the immediately preceding tax period just
ended;

 

(3)                                  the Escrow Deposit, and all accrued
interest thereon;

 

(4)                                  an amount equal to the sum of any
downward adjustments provided elsewhere in this Agreement; and

 

(5)                                  any other amount agreed upon by Seller
and Buyer in writing prior to Closing.

 

(c)                                  Seller shall prepare and deliver to
Buyer, at least five (5) business days prior to Closing, Seller’s estimate
of the adjusted Purchase Price to be paid at Closing, together with a
preliminary statement setting forth Seller’s estimate of the amount of each adjustment
to the Purchase Price to be made pursuant to this Section 3.3.  The Parties shall negotiate in good faith and
attempt to agree on such estimated adjustments prior to Closing.  In the event any estimated adjustment amounts
are not agreed upon prior to Closing, the estimate of the adjusted Purchase
Price for purposes of Closing shall be calculated based on Seller’s and Buyer’s
agreed upon estimated adjustments and Seller’s good faith estimate of any
disputed amounts (and any such disputes shall be resolved by the Parties in
connection with the resolution of the Final Settlement Statement).

 

3.4.                            Manner of Payment.

 

At Closing, Buyer
shall pay Seller the Adjusted Purchase Price by wire transfer of immediately
available funds pursuant to Seller’s written instructions.  At Closing, the Buyer and Seller shall give
joint instructions to the Bank to disburse the Escrow Deposit to the Buyer,
together with all accrued interest, in payment of the Purchase Price as adjusted
hereinabove.

 

12

 

3.5.                            Final Settlement Statement.

 

As soon as
reasonably practicable, but in no event later than ninety (90) days after the
Closing Date, Seller will deliver to Buyer a final settlement statement (the “Final
Settlement Statement”) setting forth the actual adjustments to the Purchase
Price pursuant to Section 3.3. 
As soon as reasonably practicable, but in no event later than thirty
(30) Days after Buyer receives the Final Settlement Statement, Buyer may
deliver to Seller a written report containing any changes that Buyer proposes
to be made to such statement.  Such
changes shall be specified in reasonable detail with reasonable supporting
documentation.  Any changes not so
specified shall be deemed waived, and Seller’s determinations shall
prevail.  If Buyer fails to timely
deliver the written report to Seller containing changes Buyer proposes to be
made to the Final Settlement Statement, the statement as delivered by Seller
will be deemed to be correct and will be final and binding on the Parties and
not subject to further audit or arbitration. 
As soon as reasonably practicable, but in no event later than fifteen
(15) Days after Seller receives Buyer’s written report, the Parties shall meet
and undertake to agree on the final adjustments to the Final Settlement
Statement.  If the Parties fail to agree
on the final adjustments within the fifteen (15) Day period, either Party may
submit the disputed items to the Accounting Referee for resolution.  The Parties shall direct the Accounting
Referee to resolve the disputes within thirty (30) Days after having the
relevant materials submitted for review. 
The decision of the Accounting Referee will be binding on and
non-appealable by the Parties.  The fees
and expenses associated with the Accounting Referee will be borne equally by
the Parties.  Any amounts owed by one
Party to the other as a result of the Final Settlement Statement will be paid
within five (5) Business Days after the date when the amounts are agreed
upon by the Parties or the Parties receive a decision of the Accounting
Referee, and the items included in the Final Settlement Statement will be final
and binding between the Parties and not subject to further audit or
arbitration.

 

3.6.                            Post-Closing Revenues.

 

Except as expressly
provided otherwise in this Agreement, Buyer will promptly pay to Seller any and
all amounts received after Closing (but prior to the finalization of the Final
Settlement Statement) by Buyer or the Company (to the extent not accounted for
in the Preliminary Settlement Statement) that are attributable to the Assets or
the business or the operations of the Company prior to the Effective Time or
that are attributable to the Excluded Assets. 
Except as expressly provided otherwise in this Agreement, Seller will
pay to Buyer any and all amounts received after Closing (but prior to the
finalization of the Final Settlement Statement) by Seller (to the extent not
accounted for in the Preliminary Settlement Statement) that are attributable to
the Assets or the business or the operations of the Company on and after the
Effective Time.  The Party responsible
for the payment of amounts received shall reimburse the other Party within five
(5) Business Days after the end of the month in which such amounts were
received by the Party responsible for payment and such amounts shall not be
taken into account for purposes of the Final Settlement Statement.  Notwithstanding the foregoing, this Section 3.6
shall not apply to amounts received prior to Closing if such amounts are included
in the Preliminary Settlement Statement. 
Such amounts 

 

13

 

(to the extent the
same differ from estimates in the Preliminary Settlement Statement) will be
accounted for in the Final Settlement Statement.

 

3.7.                            Post-Closing Expenses.

 

Except as
expressly provided otherwise in this Agreement, Seller will promptly reimburse
Buyer for any and all costs and expenses paid after Closing (but prior to the
finalization of the Final Settlement Statement) by Buyer or the Company (to the
extent not accounted for the Preliminary Settlement Statement) that are
attributable to the Assets or the business or the operations of the Company
prior to the Effective Time or that are attributable to the Excluded Assets.  Except as provided otherwise in this
Agreement, Buyer will reimburse Seller for any and all costs and expenses paid
after Closing (but prior to the finalization of the Final Settlement Statement)
by Seller (to the extent not accounted for in the Preliminary Settlement
Statement) that are attributable to the Assets or the business or the
operations of the Company on and after the Effective Time.  The Party responsible for the payment of such
costs and expenses shall reimburse the other Party within five (5) Business
Days after the end of the month in which the applicable invoice and proof of
payment of such invoice were received by the Party responsible for payment and
such amounts shall not be taken into account for purposes of the Final
Settlement Statement.  Notwithstanding
the foregoing, this Section 3.7 shall not apply to amounts paid
prior to Closing if such amounts are included, in whole or in part, in the
Preliminary Settlement Statement.  Such
amounts (to the extent the same differ from the estimates in the Preliminary
Settlement Statement) will be accounted for in the Final Settlement Statement.

 

3.8.                            Purchase Price Allocations.

 

Seller and Buyer
agree to (i) allocate the Purchase Price as to the Scheduled Interests in
accordance with the allocation schedule attached as Exhibit “C”
hereto (the “Allocated Values”), (ii) treat and report the transactions
contemplated by this Agreement in all respects consistent with Exhibit “C”
for purposes of any Taxes, and (iii) not take any action inconsistent with
such obligations.  Seller and Buyer shall
duly prepare and timely file such reports and information returns as may be
prescribed under Section 1060 of the Code, including Form 8594, and
any similar returns or reports required under other applicable Law, to report
the allocation of the Purchase Price in accordance with Exhibit “C.”

 

ARTICLE
4. - SELLER’S REPRESENTATIONS AND WARRANTIES

 

Seller represents
and warrants to Buyer as of the date hereof, and the Closing Date that:

 

4.1.                            Seller is a corporation
duly organized, validly existing and in good standing under the Laws of the
state of Delaware and has all requisite corporate power and authority to own
the Assets owned by Seller.  Seller is
duly licensed or qualified to do business as a foreign corporation and is in
good standing in the State of Louisiana.

 

4.2.                            Seller has all requisite power and
authority to carry on its business as 

 

14

 

presently
conducted, to enter into this Agreement and the other documents and agreements
contemplated hereby, and to perform its obligations under this Agreement and
the other documents and agreements contemplated hereby. Effective as of
Closing, the consummation of the transactions contemplated by this Agreement
will not violate, nor be in conflict with, any provision of its governing
documents or any agreement or instrument to which it is a party or by which it
is bound (except any provision contained in agreements customary in the oil and
gas industry relating to (1) the Preferential Purchase Rights (defined
below) as to all or any portion of the Assets; (2) required consents to
transfer and related provisions; (3) any other third-party approvals or
consents contemplated herein), or any judgment, decree, order, statute, rule,
or regulation applicable to Seller.

 

4.3.                            This Agreement, and all documents and
instruments required hereunder to be executed and delivered by Seller at
Closing, constitute legal, valid and binding obligations of Seller in
accordance with its respective terms, subject to applicable bankruptcy and
other similar laws of general application with respect to creditors.

 

4.4.                            There are no bankruptcy, reorganization
or receivership proceedings pending, being contemplated by, or to the actual
knowledge of Seller threatened against Seller.

 

4.5.                            The execution, delivery and performance
(effective as of Closing) of this Agreement, and the transaction contemplated
hereunder has been duly and validly authorized by all requisite authorizing
action, corporate, partnership or otherwise, on the part of Seller.

 

4.6.                            Except for a) any consents or approvals contained on any Leases, and b) any
change of control provisions or other applicable transfer restrictions in any
contracts to which the Company is a party or is bound, Seller’s execution and
delivery of this Agreement and the other documents and agreements contemplated
hereby, to which it is a party and the consummation of the transactions
contemplated by this Agreement by it shall not:

 

(i)                                     conflict with or require the consent of any Person under any of the terms,
conditions or provisions of the organizational documents of Seller or of the
Company;

 

(ii)                                  violate any provision of, or require any filing, consent or approval under,
any Laws applicable to Seller or the Company except (in each case) where such
violation or the failure to make or obtain such filing, consent or approval
would not have a Material Adverse Effect;

 

(iii)                               conflict with, result in a breach of, constitute a default under or
constitute an event that with notice or lapse of time, or both, would
constitute a default under, accelerate or permit the acceleration of the
performance required by, or require any consent, authorization, approval, or
change of control or similar payment under any Material Contract, except where
such conflict, breach or default would not have a Material Adverse Effect; or

 

(iv)                              result in the creation or imposition of any lien or Encumbrance upon one or
more of the Scheduled Interests or Shares except for the Permitted Encumbrances
and except where such lien or Encumbrance would not have a Material Adverse
Effect.

 

15

 

4.7.                            Seller has not incurred any obligation or
liability, contingent or otherwise, for brokers’ or finders’ fees in connection
with this Agreement and the transaction provided herein.

 

4.8.                            Other than as set forth in Exhibit “F,”
there are no claims, investigations, demands, actions, suits, or
administrative, legal or arbitration proceedings (including condemnation,
expropriation, or forfeiture proceedings) pending or, to the knowledge of
Seller, threatened against Seller, the Company, or any Asset: (i) seeking
to prevent the consummation of the transactions contemplated hereby, or (ii) which,
individually or in the aggregate, would have a Material Adverse Effect on the
Assets.

 

4.9.                            The transfer of the Assets to Buyer will
not violate at the Closing Date any covenants or restrictions imposed on Seller
by any bank or other financial institution in connection with a mortgage or
other instrument, and will not result in the creation or imposition of a lien
on any portion of the Assets.

 

4.10.                     The authorized equity securities of the Company consist of the Shares.  The Shares constitute all of the issued and
outstanding capital stock of the Company. 
The Shares have been duly authorized and validly issued and are fully
paid and, to the extent provided by applicable Law, nonassessable.  Seller owns all of the Shares free and clear
of any security interests, Claims, restrictions on transfer, options, warrants,
purchase rights, conversion rights, and exchange rights, and there are no other
contracts or commitments that could require Seller to sell, transfer, or
otherwise dispose of the Shares, other than this Agreement.  There are no voting trusts, proxies, or other
agreements or understandings with respect to the voting of the Shares.

 

4.11.                     Except as disclosed by Seller in writing, to Seller’s
knowledge, it is in material compliance with all laws, rules, regulations and
orders pertaining to such Scheduled Interest, including Environmental Laws.

 

4.12.                     To Seller’s knowledge, the Company has all
governmental permits necessary for the operation of the Scheduled Interest and
is not in material default under any permit, license or agreement relating to
the operation and maintenance of the Scheduled Interest.

 

4.13.                     (a)                                  The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Louisiana.  The Company has full corporate power and
authority to own, lease or otherwise hold the any assets it owns, leases or
otherwise holds and conduct its business in the manner presently conducted

 

(b)                                 Seller has delivered to Buyer true and complete copies of the
organizational documents of the Company.

 

(c)                                  Except as
set forth on Schedule 4.13(e), as of the Closing Date, the Company has
no liabilities that would be required to be reflected on a balance sheet
(including the footnotes thereto) of the Company prepared in accordance with
GAAP, other than current liabilities incurred in the ordinary course of
business with respect to the Assets.

 

16

 

(d)                                 The books of account, minute books, and other records of the Company, which
have been or will be made available to Buyer prior to Closing, are complete and
correct and accurately reflect all meetings held of, and Company action taken
by, the directors, officers and any committees thereof.

 

(e)                                  The Company is an Operator in good standing with the Louisiana Office of
Conservation, Department of Natural Resources, with full authority to carry on
its business as it is currently conducted, and as it will be conducted as of
the Closing Date.

 

4.14.                     (a)                                  Effective as of the Closing Date, Seller warrants Defensible Title to the
Scheduled Interests shown in Exhibits “A-1” and “A-2” and to the other
Assets unto Buyer against every Person whomsoever lawfully claiming or to claim
the same or any part thereof by, through or under Seller, but not otherwise,
subject, however, to the Permitted Encumbrances and to any matters properly
filed of record in the Parish wherein the property is located.

 

(b)                                 The tangible personal property comprising the Assets is in a condition
generally sufficient to operate the Assets as currently operated.  The Assets are free and clear of all
encumbrances other than Permitted Encumbrances.

 

4.15.                     Except as set forth on Exhibit “H,” to
Seller’s knowledge, there are no waivers, consents to assign, approvals or
similar rights owned by third parties and required in connection with the
conveyance of the Assets from Seller to Buyer.

 

4.16.                     Except as set forth on Exhibit “H,” to
Seller’s knowledge, there are no rights of first refusal, preferential rights,
preemptive rights or contracts, or other commitments or understandings of a
similar nature to which Seller is a part or to which the Assets are subject.

 

4.17.                     No Hydrocarbons produced or to be produced from the
Leases are subject to any gas sales contracts other than those identified on Exhibit “A-4”
and, no third party has any call upon, option to purchase, take-or-pay
obligations, dedication rights or similar rights with respect to the
Hydrocarbons produced to be produced from Seller’s interest in the Leases,
except as described on Exhibit “A-4”.

 

4.18.                     Except as set forth on Exhibit “G,” there
are no oil or gas production imbalances with respect to the Leases.

 

4.19.                     Schedule 4.19 sets forth the name of
each financial institution in which the Company has borrowing or investment
agreements, deposit or checking accounts or safe deposit boxes and the types of
those arrangements and accounts, including, as applicable, names in which
accounts or boxes are held, the account or box numbers and the name of each
Person authorized to draw thereon or have access thereto.

 

4.20.                     The Company does not have any
employees.  On and after the Closing, the
Company will not have any severance arrangements, change in control payments or
agreements, termination agreements or employment agreements, in each case with
respect to employees to the extent employed prior to the Closing.

 

17

 

4.21.                     On and after the Closing, the
Company  shall not sponsor,
maintain, contribute to or have any liability to or with respect to any Benefit
Plan that existed prior to the Closing or any former employee to the extent
employed prior to the Closing.

 

4.22.                     (a)                                  With respect to the
Assets, Seller has not entered into, or is not subject to, any agreements,
consents, orders, decrees, judgments, license or permit conditions, or other
directives of any Governmental Authority in existence as of the date of this
Agreement based on any Environmental Laws that relate to the future use of any
of the Assets and that require any change in the present conditions of any of
the Assets.

 

(b)                                 Except as set forth in Exhibit “F”, Seller has not received
written notice from any Person of any release, disposal, event, condition,
circumstance, activity, practice or incident concerning any land, facility,
asset or property included in the Assets that interferes with or prevents
compliance by Seller with any Environmental Law or the terms of any license or
permit issued pursuant thereto which would have a Material Adverse Effect.

 

(c)                                  To Seller’s knowledge, all material reports, studies, written notices from
environmental Governmental Authorities, tests, analyses, and other documents
specifically addressing environmental matters related to Seller’s ownership or
operation of the Assets, which are in Seller’s possession, have been made
available to Buyer.

 

4.23.                     Material Contracts.

 

(a)                            Each of the contracts of the type described below to which the Company is a
party other than any such Contracts constituting Excluded Assets (collectively,
the “Material Contracts”) are set forth on Schedule 4.23:

 

(i)                                     any Contract that can reasonably be expected to result in aggregate
payments by the Company of more than Ten Thousand Dollars ($10,000) during the
current or any subsequent fiscal year of the Company (based solely on the terms
thereof and without regard to any expected increase in volumes or revenues);

 

(ii)                                  any Contract that can reasonably be expected to result in aggregate
revenues to the Company of more than Ten Thousand Dollars ($10,000) during the
current or any subsequent fiscal year of the Company (based solely on the terms
thereof and without regard to any expected increase in volumes or revenues);

 

(iii)                               any indenture, mortgage, loan, credit or sale-leaseback or similar Contract
that can reasonably be expected to result in aggregate payments by the Company
of more than Ten Thousand Dollars ($10,000) during the current or any
subsequent fiscal year of the Company;

 

(iv)                              any Contract that constitutes a lease (other than an oil and gas lease),
under which the Company is the lessor or the lessee of real or personal
property which lease cannot be terminated by the Company without penalty upon
sixty (60) Days or less notice and involves an annual base rental of more than
Ten Thousand Dollars ($10,000); and

 

18

 

(v)                                 any Contract with the Parent or an Affiliate of Seller that will not be
terminated prior to Closing.

 

(b)                                 Except as set forth on Schedule 4.23 and except for such matters
that would not have a Material Adverse Effect, the Material Contracts are in
full force and effect in accordance with their respective terms, there exist no
defaults thereunder by Seller or the Company or, to Seller’s Knowledge, by any
other Person that is a party to such Material Contracts and no event has
occurred that with notice or lapse of time or both would constitute any default
under any such Contract by the Company or, to Seller’s Knowledge, any other
Person who is a party to such Material Contract.  Prior to the execution of this Agreement,
Seller has furnished or made available to Buyer copies of each Material
Contract and all amendments thereto.

 

ARTICLE
5. - BUYER’S REPRESENTATIONS AND WARRANTIES

 

Buyer represents
and warrants to Seller as of the date hereof, and the Closing Date that:

 

5.1                               Buyer is a
Texas limited liability company duly organized, validly existing and in good
standing under the Laws of the State of Texas and has all requisite corporate
power and authority to own the Assets. 
Buyer as of the Closing Date will be duly licensed or qualified to do
business as a foreign corporation and is in good standing in the State of
Louisiana.

 

5.2                               Buyer has all requisite power and
authority to carry on its business as presently conducted, to enter into this
Agreement and the other documents and agreements contemplated hereby, and to
perform its obligations under this Agreement and the other documents and
agreements contemplated hereby.  The
consummation of the transactions contemplated by this Agreement will not
violate, nor be in conflict with, any provision of Buyer’s articles of
incorporation, partnership agreement(s), by-laws or governing documents or any
agreement or instrument to which it is a party or by which it is bound, or any
judgment, decree, order, statute, rule, or regulation applicable to Buyer;

 

5.3                               The execution,
delivery and performance of this Agreement and the transactions contemplated
hereunder have been duly and validly authorized by all requisite authorizing
action, corporate, partnership or otherwise, on the part of Buyer;

 

5.4                               This Agreement,
and all documents and instruments required hereunder to be executed and
delivered by Buyer at Closing, constitute legal, valid and binding obligations
of Buyer in accordance with their respective terms, subject to applicable
bankruptcy and other similar laws of general application with respect to
creditors;

 

5.5                               There are no
bankruptcy, reorganization or receivership proceedings pending, being
contemplated by, or to the actual knowledge of Buyer threatened against Buyer;

 

19

 

5.6                               Buyer has not
incurred any obligation or liability, contingent or otherwise, for brokers’ or
finders’ fees in connection with this Agreement and the transaction provided
herein;

 

5.7                               Buyer has, or
by Closing will have, the financial resources to close the transaction
contemplated by this Agreement, and pay to Seller the Purchase Price;

 

5.8                               Buyer
acknowledges the existence of the claims and suits described in Exhibit “F”
and that these claims and suits are Permitted Encumbrances as set forth in Section 8.1(e).  Buyer further acknowledges that Buyer has, or
by Closing will have, legal counsel of its choice fully review those claims and
suits identified on Exhibit “F.” 
Buyer further acknowledges to Seller that Buyer has inspected the Real
Property and Personal Property, as defined in Section1.44, and that any
operating deficiencies present have been incorporated into the negotiated
Purchase Price.

 

5.9                               Buyer is
acquiring the Interests for its own account for use in its trade or business
and not with a view toward any sale or distribution thereof, nor with any
present intention of making a distribution thereof within the meaning of the
Securities Act of 1933, as amended, and the rules and regulations
thereunder, any applicable state blue sky Laws or other applicable securities
Laws; and

 

5.10                        Buyer is sophisticated in the evaluation, purchase, ownership and
operation of oil and gas properties and related facilities.  In making its decision to enter into this
Agreement and to consummate the transaction contemplated herein, Buyer has
relied or shall rely solely on its own independent investigation and evaluation
of the Assets including the environmental and physical condition of the
Assets.  Prior
to entering into this Agreement, Buyer was advised by and has relied solely on
its own expertise and legal, tax, reservoir engineering, accounting, and other
professional counsel concerning this Agreement, the Assets and the value
thereof;  Buyer
has no Knowledge of any fact that results in the breach of any representation,
warranty or covenant of Seller given hereunder.

 

ARTICLE
6. - ACCESS TO INFORMATION AND INSPECTIONS

 

6.1.                            Title Files.

 

Promptly after the
execution of this Agreement and until the Closing Date, Seller shall permit
Buyer and its representatives at reasonable times during normal business hours
to examine, in Seller’s offices at their actual location, all abstracts of
title, title opinions, title files, ownership maps, lease files, assignments,
division orders, payout statements, title curative, other title materials and
agreements pertaining to the Assets as requested by Buyer, insofar as the same
may now be in existence and in the possession of Seller.  No warranty of any kind is made by Seller as
to the information so supplied, and Buyer agrees that any conclusions drawn
therefrom are the result of its own independent review and judgment.

 

20

 

6.2.         Other Files.

 

Promptly after the
execution of this Agreement and until the Closing Date, Seller shall permit
Buyer and its representatives at reasonable times during normal business hours
to examine, in Seller’s offices at their actual location, all production, well,
regulatory, engineering and geological information, accounting information,
environmental information, inspections and reports, and other information,
files, books, records, and data pertaining to the Assets as requested by Buyer,
insofar as the same may now be in existence and in the possession of Seller,
excepting economic evaluations and Seller’s proprietary interpretations of
same, reserve reports and any such information that is subject to
confidentiality agreements or to the attorney/client and work product
privileges.  No warranty of any kind is
made by Seller as to the information so supplied, and Buyer agrees that any
conclusions drawn therefrom are the result of its own independent review and
judgment.

 

6.3.         Confidentiality Agreement.

 

All information
made available to Buyer by Seller pursuant to the terms of this Agreement shall
be maintained confidential by Buyer until Closing. The information protected by
such confidentiality obligation does not include any information that (i) at
the time of disclosure is generally available to and known by the public (other
than as a result of a disclosure by Buyer), or which after such disclosure
comes into the public domain through no fault of Buyer or its representatives,
or (ii) is or was available to Buyer on a nonconfidential basis, or (iii) is
already known to Buyer, as evidenced by Buyer’s written records, at the time of
its disclosure by Seller to Buyer.  Buyer
may disclose the information or portions thereof to those employees, agents or
representatives of Buyer who need to know such information for the purpose of
assisting Buyer in connection with its performance of this Agreement. Further,
in the event that Buyer is requested or required (by deposition, interrogatory,
request for documents, subpoena, civil investigative demand or similar process)
to disclose any of the information, Buyer shall provide Seller with prompt
written notice of such request or requirement, so that Seller may seek such
protective order or other appropriate remedy as it may desire.  Buyer shall further take reasonable steps to
ensure that Buyer’s employees, consultants and agents comply with the
provisions of this Section 6.3.

 

6.4.         Inspections.

 

Promptly after the
execution of this Agreement and until Closing, Seller, subject to any necessary
third-party operator approval, shall permit Buyer and its representatives at
reasonable times and at their sole risk, cost and expense, to conduct
reasonable inspections of the Assets for all purposes, including any Environmental
Defects.  The provisions of the
Confidentiality Agreement are hereby incorporated herein and adopted by
reference and shall apply to any such inspections of the Assets.

 

6.5.         No Warranty or
Representation on Seller’s Information.

 

EXCEPT AS
SET FORTH IN THIS AGREEMENT, SELLER MAKES NO WARRANTY OR REPRESENTATION,
EXPRESS OR IMPLIED, WITH RESPECT

 

21

 

TO THE
ACCURACY, COMPLETENESS, OR MATERIALITY OF THE INFORMATION, RECORDS, AND DATA
NOW, HERETOFORE, OR HEREAFTER MADE AVAILABLE TO BUYER IN CONNECTION WITH THE
ASSETS OR THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY DESCRIPTION OF THE
ASSETS, QUALITY OR QUANTITY OF HYDROCARBON RESERVES, IF ANY, PRODUCTION RATES,
RECOMPLETION OPPORTUNITIES, DECLINE RATES, GAS BALANCING INFORMATION,
ALLOWABLES OR OTHER REGULATORY MATTERS, POTENTIAL FOR PRODUCTION OF
HYDROCARBONS FROM THE ASSETS, OR ANY OTHER MATTERS CONTAINED IN OR OMITTED FROM
ANY OTHER MATERIAL FURNISHED TO BUYER BY SELLER.  ANY AND ALL SUCH DATA, INFORMATION AND
MATERIAL FURNISHED BY SELLER IS PROVIDED AS A CONVENIENCE ONLY AND ANY RELIANCE
ON OR USE OF SAME IS AT BUYER’S SOLE RISK.

 

ARTICLE
7. - ENVIRONMENTAL MATTERS AND ADJUSTMENTS

 

7.1.         Upon execution of and
pursuant to the terms of this Agreement, Buyer shall have the right, at
reasonable times during normal business hours, to conduct its investigation
into the status of the physical and environmental condition of the Assets.  If, in the course of conducting such
investigation, Buyer discovers that any Scheduled Interest is subject to a
material Environmental Defect, Buyer may raise such material Environmental
Defect in the manner set forth hereafter. 
For purposes hereof, the term “material” shall mean that the Buyer’s
good faith estimate, supported by documentation, of the cost of remediating any
single Environmental Defect, or the net reduction in value of the Scheduled
Interest affected by such Environmental Defect, whichever is lesser, exceeds a
Ten Thousand And No/100 dollars ($10,000.00) threshold amount, and the sum of
all material Environmental Defects in excess of each threshold exceeds Fifty
Thousand And No/100 dollars ($50,000.00) (the “Environmental
Deductible”). No later than 5:00 p.m. Central Standard Time on
Friday, February 22, 2008 (the “Environmental Defect
Notice Date”), Buyer shall notify Seller in writing specifying
such Environmental Defects, if any, the Scheduled Interests affected thereby,
and Buyer’s good faith estimate of the costs of remediating such defects, or
the net reduction in value of the Scheduled Interests affected by such defects,
whichever is lesser, together with supporting documentation.  Seller may, but shall be under no obligation
to, correct at its own cost and expense such defects on or before the Closing
Date, in which case there shall be no reduction to the Purchase Price.  Prior to Closing, Buyer and Seller shall
treat all information regarding any environmental conditions as confidential,
whether material or not, and shall not make any contact with any governmental
authority or third party regarding same without the written consent of the
other party unless required by law.

 

7.2.         If Buyer fails to notify
Seller prior to or on the Environmental Defect Notice Date of any Environmental
Defects, all defects, whether known or unknown, will be deemed waived for
purposes of adjustments pursuant to this Article 7, the Parties
shall proceed with Closing, Seller shall be under no obligation to correct the
defects, and Buyer shall assume the risks, liability and obligations associated
with such defects.

 

22

 

7.3.         In the event any
Environmental Defect, for which notice has been timely given as provided
hereinabove, remains uncured as of Closing, Seller, at its sole option, shall, (i) agree
to cure or remediate any Environmental Defect within a reasonable time after
Closing not to exceed one hundred eighty (180) and without any reduction to the
Purchase Price in a manner acceptable to both Parties, or (ii) reduce the
Purchase Price by the amount of the Defect Value as determined pursuant to Section 8.4,
subject to application of the Environmental Deductible described in Section 7.1
and the Aggregate Defect Basket described in Section 7.4.

 

7.4.         The Parties agree
that adjustments to the Purchase Price under this Article 7 and Article 8
shall only occur to the extent that the aggregate Defect Value for the
Environmental Defects and Title Defects, collectively, exceed One Hundred
Thirty Five Thousand and No/100 dollars ($135,000.00) (the “Aggregate
Defect Basket”) after taking the applicable Environmental or
Title Deductible into account.  For the
avoidance of doubt and by way of example only, if the sum of the material
Environmental Defects less the aggregate threshold for each Environmental
Defect is One Hundred Fifty Thousand dollars ($150,000.00) and the sum of all
Title Defects less the aggregate threshold for each Title Defect is One Hundred
Thousand dollars ($100,000.00), the total adjustment to the Purchase Price
would be One Hundred Fifteen Thousand dollars ($115,000.00) [being One Hundred
Fifty Thousand dollars ($150,000.00) for the Environmental Defects, plus One
Hundred Thousand dollars ($100,000.00) for the Title Defects, minus One Hundred
Thirty Five Thousand And No/100 dollars ($135,000.00) for the Aggregate Defect
Basket].

 

7.5.         In the event any
adjustment to the Purchase Price is made due to an Environmental Defect raised
by Buyer, the Parties shall proceed with Closing, Seller shall be under no
obligation to correct the Environmental Defect, and the Environmental Defect
shall become an Assumed Obligation of Seller.

 

ARTICLE
8. - TITLE DEFECTS AND ADJUSTMENTS

 

8.1.         Definitions.

 

For purposes
hereof, the terms set forth below shall have the meanings assigned thereto.

 

(a)           “Allocated
Value” shall mean the dollar amount allocated to each Scheduled
Interest as set forth on Exhibit “C.”

 

(b)           “Defensible
Title”, subject to and except for the Permitted Encumbrances (as
hereinafter defined), means:

 

(1)           As to the Leases, such title
held by Seller and reflected by appropriate documentation properly filed in the
official records of the parish in which the Lease or Leases are located that (a) entitles
Seller and will entitle Buyer, after Closing, to own and receive and retain,
without suspension, reduction or termination, payment of revenues for not less
than a net revenue interest of at least that reflected on 

 

23

 

Exhibit “A-2”  of all oil and gas produced, saved and marketed from or
attributable to the Wells listed, excluding Permitted Encumbrances; (b) obligates
Seller, and will obligate Buyer after Closing, to bear not more than the
working interest percentage of the costs and expenses reflected on Exhibit “A-2”  as to the Wells listed, without a corresponding
proportionate increase in the net revenue interest for such Well; (c) the
Leases are free and clear of any liens, claims or encumbrances of any kind or
character as of the Closing, except Permitted Encumbrances; and (d) the Seller
is not in default under a material provision of any Lease or other contract or
agreement affecting the Leases;

 

(2)           As to personal property
included in the Assets, record title to such property is free and clear of any
liens, claims or encumbrances of any kind or character as of the Closing,
except Permitted Encumbrances; and

 

(3)           As to all other Assets,
(a) such Assets are free and clear of any liens, claims or encumbrances of
any kind or character as of the Closing; and (b) the Seller is not in
default under a material provision of any Lease, operating agreement, or other
contract or agreement affecting the Assets.

 

(c)           “Title
Defect” shall mean (i) any matter which causes Seller to
have less than Defensible Title to any of the Scheduled Interests as of the
Closing Date, or (ii) any matter that causes one or more of the following
statements to be untrue, except for Permitted Encumbrances:

 

(1)           Seller has not received
written notice from any governmental authority or any other person (including
employees) claiming any violation of any law, rule, regulation, ordinance,
order, decision or decree of any governmental authority with respect to the
Scheduled Interests.

 

(2)           Seller, or the Operator
of a Scheduled Interest, has complied in all material respects with the
provisions and requirements of all orders, regulations and rules issued or
promulgated by governmental authorities having jurisdiction with respect to the
Scheduled Interests and has filed for and obtained all governmental
certificates, permits and other authorizations necessary for Seller’s current
operation of the Scheduled Interests other than permits, consents and
authorizations required for the sale and transfer of the Assets to Buyer;

 

(3)           Seller has not
materially defaulted or materially violated any agreement to which Seller is a
party or any obligation to which Seller is bound affecting or pertaining to the
Scheduled Interests other than as disclosed hereunder or on any exhibit
attached hereto;

 

(4)           The Leases attributable
to the Scheduled Interests are in full force and effect; and

 

24

 

(5)           All taxes, rentals,
royalties, operating costs and expenses, and other costs and expenses related
to the Scheduled Interests which are due from or are the responsibility of
Seller have been paid.

 

(d)           “Title Defect Property” shall mean any Scheduled
Interest or portion thereof burdened by a Title Defect.

 

(e)           “Permitted Encumbrances” shall mean any of the
following matters:

 

(1)           defects in the early
chain of title consisting of failure to recite marital status or the omission
of succession or heirship proceedings;

 

(2)           defects or
irregularities arising out of uncancelled mortgages, judgments or liens, the
inscriptions of which, on their face, have expired as a matter of law prior to
the Effective Time, or prior unreleased oil and gas leases which, on their
face, expired more than ten (10) years prior to the Effective Time and
have not been maintained in force and effect by production or operations
pursuant to the terms of such leases;

 

(3)           tax liens and operator’s
liens for amounts not yet due and payable, or those that are being contested in
good faith by Seller in the ordinary course of business;

 

(4)           to the extent any of
the following do not materially diminish the value of, or impair the conduct of
operations on, any of the Assets and do not impair Seller’s right to receive
the revenues attributable thereto: (i) easements, rights-of-way,
servitudes, permits, surface leases and other rights in respect of surface
operations, pipelines, grazing, hunting, fishing, logging, canals, ditches,
lakes, reservoirs or the like, (ii) easements for streets, alleys,
highways, pipelines, telephone lines, power lines, railways and other similar
rights-of-way, on, over or in respect of property owned or leased by Seller or
over which Seller owns rights of way, easements, permits or licenses, and (iii) the
terms and conditions of all leases, agreements, orders, instruments and
documents pertaining to the Assets;

 

(5)           all lessors’ royalties,
overriding royalties, net profits interests, carried interest, production
payments, reversionary interests and other burdens on or deductions from the
proceeds of production if the net cumulative effect of such burdens or
deductions does not reduce the net revenue interest of Seller in any Well
affected thereby to the extent that Seller will not be able to deliver to Buyer
at Closing, a net revenue interest of at least that reflected on Exhibit “A-2”
of all oil and gas produced, saved and marketed from or attributable to the
unitized sand or other sands listed from the Wells listed, or impair the right
to receive revenues attributable thereto;

 

(6)           preferential rights to
purchase and required third party consents to assignments and similar agreements
with respect to which waivers or consents are

 

25

 

obtained from the
appropriate parties, or the appropriate time period for asserting the rights
has expired without an exercise of the rights prior to the Closing Date;

 

(7)           Required third-party
consents to the assignment of the Leases, which Seller has previously
requested, but not obtained, and the lessor of any such lease or holder of any
such right has not prior to the execution of this Agreement objected to such
assignment or notified Seller in writing of such objection obligation.

 

(8)           all rights to consent
by, required notices to, filings with, or other actions by governmental
entities in connection with the sale or conveyance of oil and gas leases or
interests if they are customarily obtained subsequent to the sale or
conveyance;

 

(9)           defects or
irregularities of title arising out of events or transactions which have been
barred by limitations or by acquisitive or liberative prescription;

 

(10)         rights reserved to or
vested in any municipality or governmental, statutory or public authority to
control or regulate any of the Assets in any manner, and all applicable laws, rules and
orders of governmental authority;

 

(11)         any encumbrance or other
matter (whether or not constituting a Title Defect) expressly waived in writing
by Buyer or listed on Exhibit “F”;

 

(12)         the litigation and
threatened litigation, and any Claims thereunder, as listed on Exhibit “F.”

 

8.2.         Notice of Title
Defects.

 

No later than 5:00 p.m.
Central Standard Time on Friday, February 15, 2008 (the “Title Defect Notice Date”), Buyer may provide Seller
written notice of any Title Defect along with a description of those matters
which, in Buyer’s reasonable opinion, constitute Title Defects and setting
forth in detail Buyer’s calculation of the value for each Title Defect.  Seller may elect, at its sole cost and
expense, but without obligation, to cure all or any portion of such Title
Defects prior to Closing, in a manner acceptable to both Parties, in which case
no reduction in the Purchase Price shall be made.  Buyer’s failure to deliver to Seller such
notice on or before the Title Defect Notice Date shall be deemed a waiver by
Buyer of all Title Defects, known or unknown, that Seller does not have notice
of from Buyer on such date.  Any defect
or deficiency concerning Seller’s title to the Scheduled Interests not asserted
by Buyer on or prior to the Title Defect Notice Date shall be deemed waived by
Buyer for purposes of any adjustment to the Purchase Price, the Parties shall
proceed with Closing, Seller shall be under no obligation to correct the
defects, and Buyer shall assume the risks, liability and obligations associated
with such defects.  However, such waiver
shall not effect or impair the warranties of Seller set forth in Section 8.5
or the indemnity obligations of Seller as set forth in Article 17.

 

26

 

8.3.         Title Defect
Adjustment.

 

(a)           In the event any Title
Defect, for which notice has been timely given as provided hereinabove, remains
uncured as of Closing, Seller may elect to (i) cure such Title Defect by
indemnifying Buyer against any damages, claims or expenses that may arise out
of such Title Defect, subject to the provisions of Section 8.3(b) below,
with no reduction in the Purchase Price; or (ii) reduce the Purchase Price
by an amount equal to the Defect Value as determined pursuant to Section 8.4,
to the extent that each individual Title Defect exceeds a Ten Thousand And
No/100 dollar ($10,000.00) threshold, and the sum of all individual Title
Defects in excess of each threshold amount exceeds Forty Five Thousand And
No/100 dollars ($45,000.00) (the “Title Defect Deductible”)
and the Aggregate Defect Basket described in Section 7.4.  Should Seller elect either alternative “(i)”
(indemnity) or “(ii)” (price reduction) in this Section 8.3(a),
those Assets affected by the Title Defect shall be transferred to Buyer at
Closing.

 

(b)           The following
provisions shall apply to an election by Seller under the second sentence of Section 8.3(a) to
cure a Title Defect by indemnifying Buyer with regard to such Title Defect:

 

(1)           Seller’s indemnity
shall be limited to a period of two (2) years from the Effective Time.

 

(2)           In no event shall Seller’s
indemnity exceed the amount of the Defect Value as determined under Section 8.4
hereof.

 

(3)           Seller’s indemnity
shall be freely transferable by Buyer to its successors and assigns of the
Assets affected by such Title Defect, including without limitation, any lender
to Buyer and any purchaser of such Assets, whether directly from Buyer or
through any foreclosure proceeding; and

 

(4)           If the Defect Value, as
determined under Section 8.4 hereof, individually or in the
aggregate, for one or more Title Defects to be covered by the Seller’s
indemnity exceeds Seven Hundred Fifty Thousand and No/100 dollars ($750,000.00)
(after application of the appropriate deductible(s) and without
application of the Aggregate Defect Basket provided for in Section 7.4),
Seller shall have no right under to indemnify Buyer with regard to such Title
Defects without Buyer’s consent.

 

(c)           In the event any
adjustment to the Purchase Price is made due to a Title Defect raised by Buyer,
the Parties shall proceed with Closing, Seller shall be under no obligation to
correct such defect, and such defect shall become an Assumed Obligation of
Buyer.

 

8.4.         Environmental Defect
and Title Defect Values.

 

Upon timely
delivery of notice of an Environmental Defect and/or a Title Defect, Buyer and Seller
shall use their best efforts to agree on the validity and value of the claim
for

 

27

 

the purpose of
making any adjustment to the Purchase Price based on the provisions herein (“Defect Value”). 
Notwithstanding anything to the contrary set forth herein, the Defect
Value and any related adjustment to the Purchase Price shall in no event exceed
the Allocated Value of the affected Scheduled Interest.  In determining the Defect Value of an
Environmental Defect or a Title Defect, it is the intent of the Parties to
include, to the extent possible, only that portion of the Scheduled Interests,
whether an undivided interest, separate interest or otherwise, materially and
adversely affected by the defect.  The following
guidelines shall be followed by the Parties in establishing the Defect Value of
any Environmental Defect or Title Defect for the purpose of adjusting the
Purchase Price if the validity of the claim is agreed to by the Parties and
proper notice has been timely given, subject to (i) application of the
appropriate deductibles as set forth in this Agreement for Environmental
Defects and Title Defects, and (ii) application of the Aggregate Defect
Basket requirement as set forth in Section 7.4 for Environmental
Defects and Title Defects:

 

(a)           If the Title Defect is
based on a difference in net revenue interest or expense interest from that
shown on Exhibit “C” for the affected Scheduled Interest, then the
Purchase Price shall be proportionately reduced or increased as the case may
be.

 

(b)           If the Environmental
Defect or Title Defect is liquidated in amount (for example, but not limited
to, a lien, encumbrance, charge or penalty), then the adjustment to the
Purchase Price shall be the lesser of (1) the sum necessary to be paid to
the obligee to remove the defect from the Scheduled Interest, or (2) the
decrease in the fair market value (determined as set forth below) of the
Scheduled Interest as a result of the defect.

 

(c)           If the Environmental
Defect or Title Defect represents an obligation or burden upon the affected
Scheduled Interest for which the economic detriment is not liquidated but can
be estimated with reasonable certainty as agreed to by the Parties, the
adjustment to the Purchase Price shall be the sum necessary to compensate Buyer
at Closing for the adverse economic effect which the Environmental Defect or
Title Defect will have on the affected Scheduled Interest.  This sum shall be the lesser of the cost of remediating
the defect, or the decrease in the fair market value (determined as set forth
below) of the Scheduled Interest as a result of the defect.  The fair market value determination shall be
made by the Parties in good faith taking into account all relevant factors,
including, but not limited to, the following:

 

(1)           the Allocated Value of
the Scheduled Interest affected by the Environmental or Title Defect;

 

(2)           the productive status
of the affected Scheduled Interest (i.e., proved developed producing, etc.) and
the net present value of the future income expected to be produced therefrom;

 

(3)           if the Title Defect
represents only a possibility of title failure, the probability that such
failure will occur; and

 

(4)           the economic effect of
the Environmental Defect or Title Defect.

 

28

 

(d)           If the Defect Value
cannot be determined using the above guidelines, and if the Parties cannot
otherwise agree on the amount of an adjustment to the Purchase Price, or if the
validity of the claim as to an Environmental Defect or Title Defect cannot be
agreed upon, then the Closing shall include the Asset(s) affected
thereby.  If the validity of the claim is
in dispute, there shall be no adjustment to the Purchase Price at Closing.  If the Defect Value of the claim is in
dispute, the Purchase Price at Closing shall be adjusted by Seller’s good faith
estimate of the Defect Value.  In either
case, Buyer shall have the right, exercisable within ninety (90) days after the
Closing Date, to refer the disputed matter to arbitration in accordance with Section 18.2.  Subject to the terms of Section 18.2,
the decision of the arbitrator regarding any dispute as to the validity or
Defect Value of an Environmental Defect or a Title Defect Dispute shall be
final as between the Parties, provided in no event shall the Defect Value of
the disputed Environmental Defect or Title Defect exceed the Allocated Value of
the affected Scheduled Interest.

 

8.5.         Title Warranty.

 

SELLER
SHALL CONVEY SELLER’S INTERESTS IN AND TO THE ASSETS TO BUYER AS PROVIDED IN
THE FORM OF ASSIGNMENT, CONVEYANCE AND BILL OF SALE ATTACHED AS EXHIBIT
“D” HERETO (THE “CONVEYANCE”). 
THE CONVEYANCE SHALL BE MADE WITHOUT WARRANTY OF TITLE, EITHER EXPRESS,
IMPLIED, STATUTORY OR OTHERWISE, AND WITHOUT RECOURSE, EVEN AS TO THE RETURN OF
THE PURCHASE PRICE OR OTHER CONSIDERATION, EXCEPT THAT, SUBJECT TO THE
PERMITTED ENCUMBRANCES, SELLER SHALL WARRANT TITLE TO THE ASSETS AGAINST ALL
CLAIMS, LIENS, BURDENS AND ENCUMBRANCES ARISING BY, THROUGH OR UNDER SELLER,
BUT NOT OTHERWISE AND NOT WITH RESPECT TO ANY IMPAIRMENT OR FAILURE OF TITLE
RELATED TO ANY LACK OF PRODUCTION IN PAYING QUANTITIES.  THE CONVEYANCE SHALL BE MADE WITH FULL
SUBSTITUTION AND SUBROGATION TO BUYER IN AND TO ALL COVENANTS AND WARRANTIES BY
OTHERS HERETOFORE GIVEN OR MADE TO SELLER WITH RESPECT TO THE ASSETS.

 

THE
PARTIES AGREE THAT THE EXISTENCE OF ANY SUCH IMBALANCES SHALL NOT BE DEEMED A
TITLE DEFECT.

 

ARTICLE
9. - DISCLAIMERS

 

9.1.         Disclaimer —
Representations and Warranties.  Buyer acknowledges and
agrees that, except as otherwise expressly provided in Article 4,
neither Seller nor Seller’s parent makes any representation or warranty,
express, statutory, implied or otherwise with respect to the Company and the
Assets.  Except as otherwise expressly
provided in Article 4, Seller, for itself and its Parent, hereby
expressly disclaims any and all representations and warranties associated with
the Company, or the Assets express, statutory, implied or otherwise, including
any representation or warranty

 

29

 

regarding:  (a) title
(except as provided in Section 8.5, (b) any costs, expenses,
revenues, receipts, accounts receivable, or accounts payable, (c) any
contractual, economic or financial information and data associated with the
Company, or the Assets, (d) the continued financial viability or
productivity of the Company or the Assets or transportability of product, (e) the
environmental or physical condition of the Assets, (f) any federal, state,
local or tribal income or other Tax consequences associated with the Company
and the Assets, (g) the absence of patent or latent defects, (h) the
state of repair of the Assets, (i) merchantability or conformity to
models, (j) any rights of any member of Buyer Group under appropriate Laws
to claim diminution of consideration or return of the purchase price, (k) freedom
from patents, copyright or trademark infringement, (l) fitness for a
particular purpose, and (m)  production rates, recompletion opportunities,
decline rates, gas balancing information or the quality, quantity or volume of
the reserves of Hydrocarbons, if any, attributable to the Assets.

 

9.2.         Disclaimer
– Statements and Information.  Seller expressly disclaims
any and all representations and warranties, except as otherwise expressly
provided in Article 4, associated with the quality, accuracy,
completeness or materiality of the information, data and materials furnished
(whether electronically, orally, by video, in writing or any other medium, by
compact disk, in any data room, or otherwise) at any time to Buyer Group
associated with transactions contemplated by this Agreement, including,
information, data or materials regarding: 
(a) title to the Assets, (b) costs, expenses, revenues,
receipts, accounts receivable or accounts payable associated with the Company
and the Assets, (c) contractual, economic or financial information
associated with the Company, the Assets , (d) the continued financial
viability or productivity of the Company or the Assets, or transportability of
product, (e) the environmental or physical condition of the Assets, (f) federal,
state, local or tribal income or other Tax consequences associated with the
Company, the Assets, (g) the absence of patent or latent defects, (h) the
state of repair of the Assets, (i) any warranty regarding merchantability
or conformity to models, (j) any rights of any member of Buyer Group under
appropriate Laws to claim diminution of consideration or return of the purchase
price, (k) any warranty of freedom from patent, copyright or trademark
infringement, (l) warranties existing under applicable Law now or
hereafter in effect, (m) any warranty regarding fitness for a particular
purpose and (n) production rates, recompletion opportunities, decline
rates, gas balancing information or the quality, quantity or volume of the
reserves of Hydrocarbons, if any, attributable to the Assets.

 

ARTICLE
10. - PREFERENTIAL PURCHASE RIGHTS

AND
CONSENTS OF THIRD PARTIES

 

10.1.       Actions and Consents.

 

(a)           Seller and Buyer agree
that each shall use all reasonable efforts to take or cause to be taken all
such action as may be necessary to consummate and make effective the
transactions provided in this Agreement and to assure that it will not be under
any material corporate, legal, or contractual restriction that could prohibit
or delay the timely consummation of such transaction.

 

30

 

(b)           Seller shall notify all
holders of (i) preferential rights to purchase the Assets (“Preferential Purchase Rights”), (ii) rights of
consent to the assignment, or (iii) rights of approval to the assignment
of the Assets, and of such terms and conditions of this Agreement to which the
holders of such rights are entitled. 
Seller shall promptly notify Buyer if any Preferential Purchase Rights
are exercised, any consents or approvals denied, or if the requisite period has
elapsed without said rights having been exercised or consents or approvals
having been received.  If prior to
Closing, any such Preferential Purchase Rights are timely and properly
exercised, or Seller is unable to obtain a necessary consent or approval prior
to Closing, the interest or part thereof so affected shall be eliminated from
the Assets and the Purchase Price reduced by the portion of the Purchase Price
allocated to such interest or part thereof as provided in Exhibit “C.”  If any additional Preferential Purchase
Rights are discovered after Closing, or if a third party Preferential Purchase
Rights holder alleges improper notice, then Buyer agrees to cooperate with
Seller in giving effect to any such valid third party Preferential Purchase
Rights.  In the event any such valid
third party preferential purchase rights are validly exercised after Closing,
Buyer’s sole remedy against Seller shall be return by Seller to Buyer of that
portion of the Purchase Price allocated under Exhibit “C” to the
portion of the assets on which such rights are exercised and lost by Buyer to
such third party.  The Parties agree that
the Allocated Values for properties subject to Preferential Purchase Rights
shall be the sole responsibility of Buyer, and Buyer agrees to indemnify and
hold Seller harmless from all liability and claims related to the
reasonableness of such values.

 

(c)           With respect to any
portion of the Assets for which a Preferential Purchase Right has not been
asserted prior to Closing or a consent or other approval to assign has not been
granted (other than Permitted Encumbrances) and for which the time for election
to exercise such Preferential Purchase Right or to grant such consent has not
expired, Closing with respect to the portion of the Assets subject to such
outstanding obligations will be deferred (the “Third
Party Interests”). Closing with respect to all other Assets will
proceed as provided in this Agreement, but the Base Purchase Price delivered to
Seller at Closing will be reduced by the Allocated Value of the Third Party
Interests.  In the event that within
ninety (90) days after Closing any such Preferential Purchase Right is waived
or consent or approval is obtained or the time for election to purchase or to
deliver a consent or approval passes (such that under the applicable documents,
Seller may sell the affected Third Party Interest to Buyer), then the Closing
with respect to the applicable portion of the Third Party Interests will
proceed promptly. If such waivers, consents or approvals as are necessary are
not received by Seller within the applicable ninety (90) day period, Seller
shall retain such Third Party Interests and the Parties shall have no further
obligation to each other with respect thereto.

 

ARTICLE
11. - COVENANTS

 

11.1.       Conduct of Operations.

 

(a)           From and after the date
of execution of this Agreement and until the Closing, and subject to Section 11.2
and the constraints of applicable operating and other agreements,

 

31

 

Seller shall
operate, manage, and administer or cause the operation, management and
administration of the Assets as a reasonable and prudent operator and in a good
and workmanlike manner consistent with its past practices, and shall carry on
its business with respect to the Assets in substantially the same manner as
before execution of this Agreement. 
Prior to Closing, Seller shall use all reasonable efforts to preserve in
full force and effect all Leases, operating agreements, easements,
rights-of-way, permits, licenses, and agreements which relate to the Assets in
which Seller owns an interest, and shall perform all obligations of Seller in
or under all such agreements relating to the Assets; provided, however, Buyer’s
sole remedy for Seller’s breach of its obligations under this Section 11.1(a) shall
be limited to the amount of that portion of the Purchase Price allocated in Exhibit “C”
to that portion of the Assets affected by such breach.  Seller shall, except for emergency action
taken in the face of serious risk to life, property, or the environment (1) submit
to Buyer, for prior written approval, all requests for operating or capital
expenditures and all proposed contracts and agreements relating to the Assets
which involve individual commitments of more than twenty-five thousand dollars
($25,000.00); (2) consult with, inform, and advise Buyer regarding all
material matters concerning the operation, management, and administration of
the Assets; (3) obtain Buyer’s written approval prior to voting under any
operating, unit, joint venture, partnership or similar agreement; and (4) not
approve or elect to go nonconsent as to any proposed well or plug and abandon
or agree to plug and abandon any Well without Buyer’s prior written
approval.  On any matter requiring Buyer’s
approval under this Section 11.1(a), Buyer shall respond within
five (5) days to Seller’s request for approval, and failure of Buyer to
respond to Seller’s request for approval within such time shall release Seller
from the obligation to obtain Buyer’s approval before proceeding on such
matter.  With respect to emergency
actions taken by Seller in the face of serious risk to life, property, or the
environment, without prior approval of Buyer pursuant to the provisions above,
Seller will advise Buyer of its actions as promptly as reasonably possible and
consult with Buyer as to any further related actions.

 

(b)           Seller shall promptly
notify Buyer of any suit, lessor demand action, or other proceeding before any
court, arbitrator, or governmental agency and any cause of action which relates
to the Assets or which might result in impairment or loss of Seller’s interest
in any portion of the Assets or which might hinder or impede the operation of
the Assets.

 

11.2.       Limitations on Seller’s
Covenants Pending Closing.

 

To the extent
Seller is not the operator of any of the Assets, the obligations of Seller in Section 11.1
concerning operations or activities which normally or pursuant to existing
contracts are carried out or performed by the operator, shall be construed to
require only that Seller use all reasonable efforts (without being obligated to
incur any expense or institute any cause of action) to cause the operator of
such Assets to take such actions or render such performance as would a
reasonable prudent operator and within the constraints of the applicable
operating agreements and other applicable agreements.

 

11.3.       Conduct of Company
Business.

 

Except as set forth in Schedule 4.23,
as provided in the Material Contracts, required by Law or Order, as otherwise
would not have a Material Adverse Effect or as specifically

 

32

 

contemplated by this Agreement, from the date of this Agreement until
the Closing Date, Seller shall cause the Company to, unless Buyer shall
otherwise consent in writing (which consent shall not be unreasonably withheld
or delayed):

 

(i)            operate only in the usual, regular and ordinary
manner consistent with past practice, and use its commercially reasonable
efforts to preserve its present business operations and organization;

 

(ii)           maintain books, accounts and records in the usual,
regular and ordinary manner, on a basis consistent with prior years, and comply
in all material respects with all contractual and other obligations;

 

(iii)          comply in all material respects with all applicable
Laws and Orders to which it is subject;

 

(iv)          not acquire by merger, consolidation, purchase of
stock or assets, or otherwise, any Person;

 

(v)           except in the ordinary course of business under
existing lines of credit, not create, incur or assume any debt for borrowed
money;

 

(vi)          not make any material election with respect to Taxes;

 

(vii)         not amend or modify its organizational documents;

 

(viii)        not incur any capital expenditures in excess of Ten
Thousand Dollars ($10,000) except in case of emergency or as may otherwise be
required to prevent injury or damage to persons, property or the environment;
and

 

(ix)           not agree to take any action or actions prohibited by
any of the foregoing clauses (i) through (ix).

 

11.4.       Return of Information.  In the event
of termination of this Agreement, Buyer shall promptly, and in any event,
within ten (10) Days of such termination, return or cause to be returned
to Seller all documents and other materials obtained from or on behalf of
Seller in connection with the transactions contemplated hereby and shall keep
confidential any such information, all in accordance with the provisions of Section 6.3.

 

ARTICLE
12. - CLOSING CONDITIONS

 

12.1.       Seller’s Closing
Conditions.

 

The obligations of
Seller under this Agreement are subject, at the option of Seller, to the
satisfaction, at or prior to the Closing, of the following conditions:

 

(a)           All representations and
warranties of Buyer contained in this Agreement shall be true, accurate, and
not misleading in all material respects at and as of the Closing as if

 

33

 

such
representations and warranties were made at and as of the Closing, and Buyer
shall have performed, satisfied and complied with all agreements and covenants required
by this Agreement to be performed, satisfied and complied with by Buyer at or
prior to the Closing;

 

(b)           The execution,
delivery, and performance of this Agreement and the transactions contemplated
thereby have been duly and validly authorized by all necessary action,
corporate, partnership or otherwise, on the part of Buyer, and an officer’s
certificate of Buyer confirming the same;

 

(c)           All necessary consents
of and filings with any state or federal governmental authority or agency
relating to the consummation of the transactions contemplated by this Agreement
shall have been obtained, accomplished or waived, except to the extent that
such consents and filings are normally obtained, accomplished or waived after
Closing; and

 

(d)           As of the Closing Date,
no suit, action or other proceeding (excluding any such matter initiated by
Seller) shall be pending or threatened before any court or governmental agency
seeking to restrain Seller or prohibit the Closing or seeking damages against
Seller as a result of the consummation of this Agreement.

 

12.2.       Buyer’s Closing
Conditions.

 

The obligations of
Buyer under this Agreement are subject, at the option of Buyer, to the
satisfaction, at or prior to the Closing, of the following conditions:

 

(a)           All representations and
warranties of Seller contained in this Agreement shall be true, accurate, and
not misleading in all material respects at and as of the Closing as if such
representations and warranties were made at and as of the Closing, and Seller
shall have performed, satisfied and complied with all agreements and covenants
required by this Agreement to be performed, satisfied and complied with by
Seller at or prior to the Closing;

 

(b)           The execution,
delivery, and performance of this Agreement and the transactions contemplated
thereby have been duly and validly authorized by all necessary action,
corporate, partnership or otherwise, on the part of Seller, and an officer’s
certificate of Seller confirming the same;

 

(c)           All necessary consents
of and filings with any state or federal governmental authority or agency
relating to the consummation of the transactions contemplated by this Agreement
shall have been obtained, accomplished or waived, except to the extent that
such consents and filings are normally obtained, accomplished or waived after
Closing; and

 

(d)           As of the Closing Date,
no suit, action or other proceeding (excluding any such matter initiated by
Buyer) shall be pending or threatened before any court or governmental agency
seeking to restrain Buyer or prohibit the Closing or seeking damages against
Buyer as a result of the consummation of this Agreement.

 

34

 

ARTICLE
13. - CLOSING

 

13.1.       Closing.

 

The closing of
this transaction (the “Closing”)
shall be held at the offices of Adams and Reese, LLP located at 1221 McKinney, Suite 4400,
Houston, Texas  77010 on March 3,
2008 at 10:00 a.m. Central Standard Time, or at such earlier date or place
as the Parties may agree in writing (herein called “Closing
Date”).  Time is of the
essence and the Closing Date shall not be extended unless by written agreement
of the Parties.  Any extension of the
Closing Date shall also extend the Effective Date to March 1, 2008,
without any corresponding change in the Purchase Price.  On or before five (5) business days
prior to Closing, Buyer and Seller shall use their best efforts to provide each
other copies of all closing documents.

 

13.2.       Seller’s Closing
Obligations.

 

At Closing, except
to the extent comprising the Excluded Assets, Seller shall deliver to Buyer the
following:

 

(a)           the Assignment,
Conveyance and Bill of Sale substantially in the form attached as Exhibit “D,”
and such other documents as may be reasonably necessary to convey all of Seller’s
interest in the Assets (except the Shares) 
to Buyer in accordance with the provisions hereof, executed by Seller;

 

(b)           two (2) non-foreign
affidavit executed by an authorized officer of Seller in the form attached as Exhibit “J”;

 

(c)           copies of all
third-party waivers, consents, approvals, permits and actions obtained;

 

(d)           exclusive possession of
the Assets;

 

(e)           letters-in-lieu of
transfer orders in form acceptable to Seller and Buyer;

 

(f)            resignations of the
board of directors and officers of the Company;

 

(g)           two (2) originals
of the Certificate executed by an officer of the Seller;

 

(h)           two (2) originals
of resolutions of Seller’s authorizing bodies authorizing the transactions
contemplated by this Agreement (including designation of the Persons authorized
to execute this Agreement on behalf of Seller and the Operative Documents to
which it is a party); and

 

(i)            Stock Power and stock
certificate representing all outstanding and issued capital stock of the
Company.

 

35

 

13.3.       Buyer’s Closing
Obligations.

 

At Closing, Buyer
shall deliver to Seller the following:

 

(a)           the Purchase Price, as
adjusted, by wire transfer in immediately available funds to a bank account
designated, in writing, by Seller;

 

(b)           the Assignment,
Conveyance and Bill of Sale substantially in the form attached as Exhibit “D”
executed by Buyer;

 

(c)           two (2) originals of the Certificate executed by an authorized officer
or an attorney-in-fact of Buyer; and

 

(d)           two (2) originals of resolutions of a Secretary’s
certificate of Buyer certifying resolutions of Buyer’s Board of Directors
authorizing the transactions contemplated by this Agreement (including
designation of the Persons authorized to execute this Agreement on behalf of
Buyer)

 

13.4.       Joint Closing Obligations.

 

Both Parties at
Closing shall execute a Settlement Statement evidencing the amount actually
wire transferred and all adjustments to the Purchase Price taken into account
at Closing.  All events of Closing shall
each be deemed to have occurred simultaneously with the other, regardless of
when actually occurring and each shall be a condition precedent to the other.

 

ARTICLE
14. –LIMITATIONS ON WARRANTIES

AND
REMEDIES/DTPA-UTPCPL WAIVER

 

14.1.       Limitations on
Warranties and Remedies.

 

THE
EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER CONTAINED IN THIS AGREEMENT
ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY
REPRESENTATION OR WARRANTY WITH RESPECT TO THE QUALITY, QUANTITY OR VOLUME OF
THE RESERVES, IF ANY, OF OIL, GAS OR OTHER HYDROCARBONS IN OR UNDER THE LEASES,
OR THE ENVIRONMENTAL CONDITION OF THE ASSETS. 
THE ITEMS OF PERSONAL PROPERTY, EQUIPMENT, IMPROVEMENTS, FIXTURES AND
APPURTENANCES CONVEYED AS PART OF THE ASSETS ARE SOLD HEREUNDER “AS IS,
WHERE IS, AND WITH ALL FAULTS” AND NO WARRANTIES OR REPRESENTATIONS OF ANY KIND
OR CHARACTER, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONDITION, ARE GIVEN BY OR
ON BEHALF OF SELLER.  IT IS UNDERSTOOD
AND AGREED THAT PRIOR TO CLOSING BUYER SHALL

 

36

 

HAVE
INSPECTED THE ASSETS FOR ALL PURPOSES AND HAS SATISFIED ITSELF AS TO THEIR
PHYSICAL AND ENVIRONMENTAL CONDITION, BOTH SURFACE AND SUBSURFACE, AND THAT
BUYER ACCEPTS SAME IN ITS “AS IS, WHERE IS AND WITH ALL FAULTS” CONDITION.  BUYER HEREBY WAIVES ALL WARRANTIES, EXPRESS
OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONDITION, OR CONFORMITY
TO SAMPLES.

 

BUYER
EXPRESSLY WAIVES THE WARRANTY OF FITNESS FOR INTENDED PURPOSES OR GUARANTEE
AGAINST HIDDEN OR LATENT REDHIBITORY VICES UNDER LOUISIANA LAW, INCLUDING
LOUISIANA CIVIL CODE ARTICLES 2520 THROUGH 2548, AND THE WARRANTY IMPOSED BY
LOUISIANA CIVIL CODE ARTICLE 2475; BUYER WAIVES ALL RIGHTS IN REDHIBITION
PURSUANT TO LOUISIANA CIVIL CODE ARTICLE 2520, ET SEQ; BUYER ACKNOWLEDGES THAT
THIS EXPRESS WAIVER IS A MATERIAL AND INTEGRAL PART OF THIS SALE AND THE
CONSIDERATION THEREOF; AND BUYER ACKNOWLEDGES THAT THIS WAIVER HAS BEEN BROUGHT
TO THE ATTENTION OF BUYER AND EXPLAINED IN DETAIL AND THAT BUYER HAS
VOLUNTARILY AND KNOWINGLY CONSENTED TO THIS WAIVER OF WARRANTY OF FITNESS
AND/OR WARRANTY AGAINST REDHIBITORY VICES AND DEFECTS FOR THE ABOVE DESCRIBED
PROPERTY.

 

14.2.       Waiver of Trade Practices Acts.

 

(a)           It is the intention of the parties that Buyer’s rights and remedies
with respect to this transaction and with respect to all acts or practices of
Seller, past, present or future, in connection with this transaction shall be
governed by legal principles other than the Texas Deceptive Trade Practices—Consumer
Protection Act, Tex. Bus. & Com. Code Ann. § 17.41 et seq. (the “DTPA”)
or the Louisiana unfair trade practices and consumer protection law, La. R.S.
51:1402, et seq. (the “UTPCPL”).  As
such, Buyer hereby waives the applicability of the DTPA and the UTPCPL to this
transaction and any and all duties, rights or remedies that might be imposed by
the DTPA and/or the UTPCPL, whether such duties, rights and remedies are
applied directly by the DTPA or the UTPCPL itself or indirectly in connection
with other statutes; provided, however,
Buyer does not waive § 17.555 of the DTPA. 
Buyer acknowledges, represents and warrants that it is purchasing the
goods and/or services covered by this Agreement for commercial or business use;
that it has knowledge and experience in financial and business matters that
enable it to evaluate the merits and risks of a transaction such as this; that
it is not in a significantly disparate bargaining position with Seller, and
that Buyer has been represented by legal counsel in the negotiation of this
Agreement and the terms of this particular provision.

 

(b)           Buyer expressly
recognizes that the price for which Seller has agreed to perform its
obligations under this Agreement has been predicated upon the inapplicability
of the DTPA and the UTPCPL and this waiver of the DTPA and the UTPCPL.  Buyer further recognizes that

 

37

 

Seller, in
determining to proceed with the entering into of this Agreement, has expressly
relied on this waiver and the inapplicability of the DTPA and the UTPCPL.

 

ARTICLE 15. - CASUALTY LOSS AND CONDEMNATION

 

If, prior to the
Closing, all or any portion of the Scheduled Interests is destroyed by fire or
other casualty or if any portion of the Assets shall be taken by condemnation
or under the right of eminent domain (all of which are herein called “Casualty Loss” and limited to property damage or
taking only), Buyer and Seller must agree prior to Closing either (i) to
delete that portion of the Scheduled Interests which is subject to the Casualty
Loss from the Assets, and the Purchase Price shall be reduced by the value
allocated to the deleted interest as set out in Exhibit “C,” or (ii) for
Buyer to proceed with the purchase of such Scheduled Interests, notwithstanding
any such destruction or taking (without reduction of the Purchase Price) in
which case Seller shall pay, at the Closing, to Buyer all sums paid to Seller
by third parties by reason of the destruction or taking of such Scheduled
Interests and shall assign, transfer and set over unto Buyer all insurance
proceeds received by Seller as well as all of the right, title and interest of
Seller in and to any claims, causes of action, unpaid proceeds or other
payments from third parties arising out of such destruction or taking.  If the Allocated Value of that portion of the
Scheduled Interests affected by the Casualty Loss as shown on Exhibit “C”
exceeds Seven Hundred Fifty Thousand and No/100 dollars ($750,000.00), Buyer
and Seller shall each have the right to terminate this Agreement upon written
notification to the other, the transaction shall not close and thereafter
neither Buyer nor Seller shall have any liability or further obligations to the
other hereunder.  In the event of such
termination, Seller shall return the Escrow Deposit to Buyer, without interest.  Prior to Closing, Seller shall not voluntarily
compromise, settle or adjust any amounts payable by reason of any Casualty Loss
without first obtaining the written consent of Buyer.

 

ARTICLE
16. - REMEDIES

 

16.1.       Seller’s Remedies.

 

If Seller and
Buyer close the transaction contemplated by this Agreement on or before the
Closing Date, as it may be extended in accordance herewith, the Escrow Deposit
and any accrued interest will be applied to the Purchase Price and the amount
due from Buyer at Closing will be reduced by the amount of the Escrow Deposit.  If the transaction contemplated by this
Agreement does not close on or before the Closing Date, as it may be extended
in accordance herewith, because (a) Seller is unable, unwilling or refuses
to close, or because (b) a condition to Buyer’s obligation to close, as
set forth in Section 12.2, is not satisfied or waived, or because (c) Buyer
terminates this Agreement under the provisions of Article_15, or as
elsewhere provided for and allowed in this Agreement, unless Buyer chooses the
remedy of specific performance, if applicable, as set forth in Section 16.2,
Seller will provide Buyer with written authorization to disburse the Escrow
Deposit, with accrued interest, within five (5) days following the later
of the Closing Date or any extension thereof in accordance with the provisions
of this Agreement.  If for any reason
other than those set forth in subparagraphs (a), (b) and (c) above,
Buyer fails, refuses or is unable to close the transaction contemplated by this
Agreement on or before the Closing Date, as it may be extended in accordance
herewith, Seller shall retain the Escrow Deposit together with any

 

38

 

accrued interest
as a liquidated damage and not as a penalty, and terminate this Agreement, as
Seller’s sole and exclusive remedies for such default, all other remedies
(except as expressly retained in Section 16.3) being expressly
waived by Seller.

 

16.2.       Buyer’s Remedies.

 

Upon failure of
Seller to comply herewith by the Closing Date, as it may be extended in
accordance herewith, Buyer, at its sole option and in addition to any other
remedies it may have at law or equity, may (i) enforce specific
performance, or (ii) terminate this Agreement.  In the event Buyer elects to terminate this
Agreement as set forth above, Seller shall immediately return the Escrow
Deposit to Buyer, without interest.

 

16.3.       Other Remedies.

 

Notwithstanding
the foregoing, termination of this Agreement shall not prejudice or impair
Buyer’s obligations under Section 6.3 (and the Confidentiality
Agreement referenced therein).  The
prevailing Party in any legal proceeding brought under or to enforce this
Agreement shall be additionally entitled to recover court costs and reasonable
attorneys’ fees from the non-prevailing Party. 
Notwithstanding the provisions of Sections 16.1 and 16.2, the
remedy of mediation and arbitration provided in Section 8.4(d) shall
be the exclusive remedy for the matters provided for in such Section.

 

16.4.       Effect of Termination.

 

In the event of
termination of this Agreement under this Article 16, the
transaction shall not close and neither Buyer nor Seller shall have any further
obligations, remedies, liabilities, rights or duties to the other hereunder,
except as expressly provided herein.

 

16.5.       Limitations
on Damages.

 

Notwithstanding
any other provision contained elsewhere in this Agreement to the contrary, the
Parties acknowledge that this Agreement does not authorize one Party to sue for
or collect from the other Party its own punitive damages, or its own
consequential or indirect damages in connection with this Agreement and the
transactions contemplated hereby and each Party expressly waives for itself and
on behalf of its affiliates, any and all Claims it may have against the other
Party for its own such damages in connection with this Agreement and the
transactions contemplated hereby.

 

ARTICLE
17. - ASSUMPTION AND INDEMNITY

 

17.1.       Assumed Obligations;
Pre-Closing Liabilities.

 

Upon and after
Closing, Buyer shall own the Assets, together with all the rights, duties,
obligations, and liabilities accruing after Closing, including the Assumed
Obligations and Buyer’s indemnity obligations hereunder.  Buyer agrees to assume and pay, perform,
fulfill and discharge all Assumed Obligations and Buyer’s indemnity
obligations.  Seller

 

39

 

agrees to retain
and pay, perform, fulfill and discharge all Retained Obligations, and Seller’s
indemnity obligations.

 

17.2.       Buyer’s Indemnity.

 

BUYER
AGREES TO INDEMNIFY, DEFEND AND HOLD SELLER, SELLER’S GROUP AND SELLER’S
EMPLOYEES, OFFICERS AND DIRECTORS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, LOSSES, DAMAGES, PUNITIVE DAMAGES, COSTS, EXPENSES, CAUSES OF ACTION
OR JUDGMENTS OF ANY KIND OR CHARACTER INCLUDING, WITHOUT LIMITATION, ANY
INTEREST, PENALTY, REASONABLE ATTORNEYS’ FEES AND OTHER COSTS AND EXPENSES
INCURRED IN CONNECTION THEREWITH OR THE DEFENSE THEREOF (COLLECTIVELY THE “CLAIMS”), WITH RESPECT TO ALL
LIABILITIES AND OBLIGATIONS OR ALLEGED OR THREATENED LIABILITIES AND
OBLIGATIONS CAUSED BY, RELATED TO, ATTRIBUTABLE TO, OR ARISING OUT OF THE
ASSUMED OBLIGATIONS.  THE DEFENSE AND
INDEMNITY OBLIGATIONS PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF
THE SOLE OR PARTIAL OR COMPARATIVE OR CONCURRENT OR OTHER FAULT, NEGLIGENCE OR
STRICT, PRE-EXISTING OR OTHER LIABILITY ON THE PART OF SELLER.  ADDITIONALLY, THE DEFENSE AND INDEMNITY
OBLIGATIONS PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF THE NATURE
OF THE OBLIGATIONS OF SELLER, BE THEY IN TORT, CONTRACT, QUASI-CONTRACT,
STATUTORY, OR OTHERWISE.

 

17.3.       Seller’s Indemnity.

 

SELLER
AGREES TO INDEMNIFY, DEFEND AND HOLD BUYER AND BUYER’S EMPLOYEES, OFFICERS AND
DIRECTORS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS WITH RESPECT TO ALL
LIABILITIES AND OBLIGATIONS OR ALLEGED OR THREATENED LIABILITIES AND
OBLIGATIONS CAUSED BY, RELATED TO, ATTRIBUTABLE TO, OR ARISING OUT OF THE
RETAINED OBLIGATIONS.  THE DEFENSE AND
INDEMNITY OBLIGATIONS PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF
THE SOLE OR PARTIAL OR COMPARATIVE OR CONCURRENT OR OTHER FAULT, NEGLIGENCE OR
STRICT, PRE-EXISTING OR OTHER LIABILITY ON THE PART OF BUYER.  ADDITIONALLY, THE DEFENSE AND INDEMNITY
OBLIGATIONS PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF THE NATURE
OF THE OBLIGATIONS OF BUYER, BE THEY IN TORT, CONTRACT, QUASI-CONTRACT,
STATUTORY, OR OTHERWISE.

 

17.4.       Stipulation Regarding
Express Negligence And Fault.

 

THE
PARTIES HERETO BOTH AGREE AND STIPULATE THAT THEY HAVE ACTUAL KNOWLEDGE OF ALL
INDEMNITY PROVISIONS HEREIN, THAT THEY ARE FAMILIAR WITH THE EXPRESS NEGLIGENCE
TEST, THAT

 

40

 

THIS
DEFENSE AND INDEMNIFICATION AGREEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE
TEST, THAT THE PARTIES CLEARLY INTEND TO TRANSFER THE RISK OF LOSS FOR THE
INDEMNITEE’S NEGLIGENCE, FAULT AND OTHER LIABILITIES AND OBLIGATIONS AS SET
FORTH ABOVE TO BUYER, AND THAT THESE INDEMNIFICATION PROVISIONS ARE
CONSPICUOUS.

 

17.5.       Broker or Finder’s Fee.

 

Each Party hereby
agrees to indemnify and hold the other harmless from and against any claim for
a brokerage or finder’s fee or commission in connection with this Agreement or
the transactions contemplated by this Agreement to the extent such claim arises
from or is attributable to the actions of such indemnifying Party, including,
without limitation, any and all losses, damages, punitive damages, attorneys’
fees, costs and expenses of any kind or character arising out of or incurred in
connection with any such claim or defending against the same.

 

17.6        Litigation.             Seller shall
retain responsibility and liability for the litigation and threatened
litigation listed on Exhibit “F,” and the Claims thereunder, except
as provided in this Section 17.6.

 

17.7.       Insurance, Taxes.  The amount of
any Claims for which any party is entitled to indemnification under this
Agreement shall be reduced by any corresponding (a)  tax benefit created
or generated or (b)  insurance proceeds realized by such party if a claim
were properly pursued under the relevant insurance arrangements.

 

17.8.       Waiver of
Certain Damages.  Each of the Parties expressly waives and agrees not
to, and to cause the members of the Buyer Group in the case of Buyer and the
members of the Seller Group in the case of Seller not to, seek indirect,
consequential, punitive or exemplary damages or damages for lost profits of any
kind with respect to any dispute arising under, related to, or in connection
with this Agreement or breach hereof (except such damages that are payable to a
third party with respect to a third party claim for which any Person is seeking
indemnification hereunder).  The Parties
agree that no indemnified Person shall be entitled to any such damages under
this Agreement.

 

17.9.       Extent
of Indemnification.  Without limiting or enlarging the
scope of the indemnification, disclaimer and assumption obligations set forth
in this Agreement, to the fullest extent permitted by Law, an indemnified
Person shall be entitled to indemnification hereunder in accordance with the
terms hereof, regardless of whether the indemnifiable loss giving rise to any
such indemnification obligation is the result of the sole, active, passive,
concurrent or comparative negligence, strict liability or other legal fault or
violation of any Law of or by any such indemnified Person.  Buyer and Seller acknowledge that this
statement complies with the express negligence rule and is conspicuous.

 

17.10.     Disclaimer of Application
of Anti-Indemnity Statutes.  The Parties acknowledge and agree
that the provisions of any anti-indemnity statute relating to

 

41

 

oilfield services and associated activities shall not be
applicable to this Agreement or the transactions contemplated hereby.

 

17.11.     Waiver
of Right to Rescission.  Seller and Buyer acknowledge that
the payment of money, as limited by the terms of this Agreement, shall be
adequate compensation for breach of any representation, warranty, covenant or
agreement contained herein or for any other claim arising in connection with or
with respect to the transactions contemplated in this Agreement.  As the payment of money shall be adequate
compensation, Buyer and Seller waive any right to rescind this Agreement or any
of the transactions contemplated hereby.

 

17.12.     Indemnity Claims.

 

From and after
Initial Closing, any demand for indemnity hereunder shall be made by written
notice, together with a written description of any Claims asserted stating the
nature and basis of such Claim and, if ascertainable, the amount thereof.  The Party upon whom notice is served shall
have a period of twenty (20) days after receipt of such notice within which to
respond thereto or, in the case of an underlying demand which requires a
shorter time for response, then within such shorter period as specified in such
notice (the “Notice Period”).  If the Party upon whom notice is served
denies liability or fails to provide the defense for any Claim, the other Party
may defend or compromise the Claim as it deems appropriate.  If the Party upon whom notice is served
accepts liability and responsibility for the defense of any Claim, it shall so
notify the other Party as soon as is practicable prior to the expiration of the
Notice Period and undertake the defense or compromise of such Claim with
counsel selected by the Party accepting such liability.  If the Party on whom notice is served
undertakes the defense or compromise of such Claim, the other Party shall be
entitled, at its own expense, to participate in such defense.  No compromise or settlement of any Claim
shall be made without reasonable notice to the other Party, and without the
prior written approval of the other Party, which approval shall not be
unreasonably withheld or delayed.  No
such approval shall be withheld if such compromise or settlement includes a
general and complete release of the other Party, its successors, assigns,
Affiliates and their respective Representatives in respect of the matter, with
prejudice, and with no express or written admission of liability on the part of
the other Party, its Affiliates and their respective Representatives, and is
without cost or liability and has no constraints on the future conduct of its
or their respective businesses. Buyer and Seller acknowledge that their
obligations to indemnify, defend and hold the other Party and its Affiliates
harmless under this Agreement include obligations to pay the attorneys’ fees
and court and arbitral costs incurred by the other Party and its Affiliates in
defending said Claims, regardless of the merits of said Claims, where the Party
to whom notice is served hereunder denies liability or fails to provide the
defense for any said Claim.           Seller
and Buyer shall have the right at all times to participate, at their sole cost,
in the preparation for any defense, hearing or trial related to the indemnities
set forth in this Agreement, as well as the right to appear on their own behalf
or to retain separate counsel to represent them at any such hearing or trial.

 

42

 

ARTICLE
18. - MISCELLANEOUS

 

18.1.       Receivables and other
Excluded Funds.

 

Buyer shall be
under no obligation to collect on behalf of Seller any receivables or other
funds included in the Excluded Assets above. 
With respect to receivables, Buyer shall be free to treat the interests
of any party with a delinquent receivable in any manner deemed appropriate by
Buyer.

 

18.2.       Arbitration.

 

Unless expressly provided otherwise in this
Agreement, any and all claims or causes of action arising out of or relating to
this Agreement must be resolved through the use of binding arbitration using
three (3) arbitrators, in accordance with the Commercial Arbitration Rules of
the AAA, as supplemented to the extent necessary to determine any procedural
appeal questions by the Federal Arbitration Act (Title 9 of the United States
Code).  If there is any inconsistency
between this Article and the Commercial Arbitration Rules or the
Federal Arbitration Act, the terms of this Article shall control the
rights and obligations of the Parties. 
If there is more than one (1) Arbitrable Dispute that involves the
same facts and parties as the facts and parties with respect to which an
arbitration has been initiated pursuant to this Agreement, such disputes shall
be consolidated into the first arbitration initiated pursuant to this
Agreement.  No other arbitration shall be
consolidated with any arbitration initiated pursuant to this Agreement without
the agreement of the Parties or parties thereto.  Arbitration may be initiated by a Party (“Claimant”)
serving written notice on the other Party (“Respondent”) that the Claimant has
referred the Arbitrable Dispute to binding arbitration.  Claimant’s notice initiating binding
arbitration must describe in reasonable detail the nature of the Arbitrable
Dispute and the facts and circumstances relating thereto and identify the
arbitrator Claimant has appointed. 
Respondent shall respond to Claimant within thirty (30) Days after
receipt of Claimant’s notice, identifying the arbitrator Respondent has appointed.  If Respondent fails for any reason to name an
arbitrator within the thirty (30) Day period, Claimant shall name the
arbitrator for Respondent’s account.  The
two (2) arbitrators so chosen shall select a third arbitrator (who must
have not less than seven (7) years experience as a lawyer in the energy
industry) within thirty (30) Days after the second arbitrator has been
appointed.  If the two arbitrators are
unable to agree on a third arbitrator within thirty (30) Days from the date the
second arbitrator has been appointed, then a third arbitrator shall be selected
by the AAA office in Houston, Texas, with due regard given to the selection
criteria above and input from the Parties and other arbitrators.  The AAA shall select the third arbitrator not
later than ninety (90) Days from initiation of arbitration.  In the event AAA should fail to select the
third arbitrator within ninety (90) Days from initiation of arbitration, then
either Party may petition the Chief United States District Judge for the
Southern District of Texas to select the third arbitrator.  Due regard shall be given to the selection
criteria above and input from the Parties and other arbitrators.  Claimant shall pay the compensation and
expenses of the arbitrator named by or for it, and Respondent shall pay the
compensation and expenses of the arbitrator named by or for it.  Claimant and Respondent shall each pay
one-half of the compensation and expenses of the third arbitrator.  All arbitrators must be neutral parties who
have never been officers, directors or employees of the Parties or any of their
Affiliates.  Unless expressly provided
otherwise in this Agreement, the two (2)

 

43

 

arbitrators named by the Parties must have not less than seven (7) years
experience in the energy industry, and must have a formal education or training
in the area of dispute resolution.  The
hearing shall be conducted in Houston, Texas and commence within sixty (60)
Days after the selection of the third arbitrator.  The Parties and the arbitrators should
proceed diligently and in good faith in order that the award may be made as
promptly as possible.  The arbitrators
shall determine the Arbitrable Disputes of the Parties and render a final award
in accordance with the substantive Law of the State of Texas, excluding the
conflicts provisions of such Law.  The
arbitrators shall render their decision on or before sixty (60) Days following
the completion of the hearing.  The
arbitrator’s decision shall be in writing and set forth the reasons for the
award and shall include an award of costs to the prevailing party, including
without limitation reasonable attorneys’ fees and disbursements.  All statutes of limitations and defenses
based upon passage of time applicable to any Arbitrable Dispute (including any
counterclaim or setoff) shall be interrupted by the filing of the arbitration
and suspended while the arbitration is pending. 
The terms hereof shall not create or limit any obligations of a Party to
defend, indemnify, or hold harmless another Party against court proceedings or
other Claims.  In order to prevent
irreparable harm, the arbitrators shall have the power to grant temporary or
permanent injunctive or other equitable relief. 
A Party may, notwithstanding any other provision of this Agreement, seek
temporary injunctive relief from any court of competent jurisdiction; provided
that the Party seeking such relief shall (if arbitration has not already been
commenced) simultaneously commence arbitration. 
Such court-ordered relief shall not continue more than ten (10) Days
after the appointment of the arbitrators and in no event for longer than sixty
(60) Days.  Except as provided in the
Federal Arbitration Act, the decision of the arbitrators shall be binding on
and non-appealable by the Parties.  Each
Party agrees that any arbitration award against it may be enforced in any court
of competent jurisdiction and that any Party may authorize any such court to
enter judgment on the arbitrators’ decisions. 
The arbitrators may not grant or award indirect, consequential, punitive
or exemplary damages or damages for lost profits.

 

18.3.       Public Announcements.

 

The Parties hereto
agree that prior to Closing, each may publicly disclose the principal terms of
this Agreement following its execution, provided that prior to making any
public announcement or statement with respect to the transaction contemplated
by this Agreement, the Party desiring to make such public announcement or
statement shall consult with the other Party hereto and exercise its best
efforts to (i) agree upon the text of a joint public announcement or
statement to be made by both of such Parties; or (ii) obtain written
approval of the other Party hereto to the text of a public announcement or
statement to be made solely by Seller or Buyer, as the case may be.  Nothing contained in this paragraph shall be
construed to require either Party to obtain approval of the other Party hereto
to disclose information with respect to the transaction contemplated by this
Agreement to any state or federal governmental authority or agency to the
extent (i) required by applicable law or by any applicable rules,
regulations or orders of any governmental authority or agency having
jurisdiction; or (ii) necessary to comply with disclosure requirements of
the American Stock Exchange or other recognized exchange or over the counter,
and applicable securities laws.

 

44

 

18.4.       Filing and Recording of
Assignments, etc.

 

Buyer shall be
solely responsible for all filings and the prompt recording of assignments and
other documents related to the transfer of the Assets as contemplated hereunder
and for all fees connected therewith, and Buyer shall furnish certified copies
of all such filed and/or recorded documents to Seller.  Seller shall not be responsible for any loss
to Buyer because of Buyer’s failure to file or record documents correctly or
promptly.  Buyer shall promptly file all
appropriate forms, declarations or bonds with federal and state agencies
relative to its assumption of operations and Seller shall cooperate with Buyer
in connection with such filings.  Buyer
shall also comply with all notice provisions contained in the Leases or otherwise
applicable to the transfer of the Assets.

 

18.5.       Further Assurances and
Records.

 

(a)           After the Closing, each
of the Parties will execute, acknowledge and deliver to the other such further
instruments, and take such other action, as may be reasonably requested in
order to more effectively assure to said Party all of the respective
properties, rights, titles, interests, estates, and privileges intended to be
assigned, delivered or inuring to the benefit of such Party in consummation of
the transactions contemplated hereby. 
Without limiting the foregoing, in the event Exhibits “A-1”
through “A-5” incorrectly or insufficiently describe or reference an
interest intended to be conveyed hereby, Seller agrees to, within twenty (20)
days of Seller’s receipt of Buyer’s written request, together with supporting
documentation satisfactory to Seller, correct such Exhibit and/or execute
an amended assignment or other appropriate instruments necessary to transfer
the property or interest intended to be conveyed hereby to Buyer.

 

(b)           Buyer agrees to maintain
the files and records of Seller that are acquired pursuant to this Agreement
for seven (7) years after Closing. 
Buyer shall provide Seller and its representatives reasonable access to
and the right to copy such files and records for the purposes of (i) preparing
and delivering any accounting provided for under this Agreement and adjusting,
prorating and settling the charges and credits provided for in this Agreement; (ii) complying
with any law, rule or regulation affecting Seller’s interest in the Assets
prior to the Closing Date; (iii) preparing any audit of the books and
records of any third party relating to Seller’s interest in the Assets prior to
the Closing Date, or responding to any audit prepared by such third parties; (iv) preparing
tax returns; (v) responding to or disputing any tax audit; or (vi) asserting,
defending or otherwise dealing with any claim or dispute under this Agreement
or as to the Assets.

 

(c)           Buyer agrees that
within thirty (30) days after Closing or within thirty (30) days after
operations are actually transferred, whichever is later, it will remove or
cause to be removed its signs and the names and marks used by Seller and all
variations and derivatives thereof and logos relating thereto from the Assets
and will not thereafter make any use whatsoever of such names, marks and logos.

 

(d)           To the extent not
obtained or satisfied as of Closing, Seller agrees to continue to use all
reasonable efforts, but without any obligation to incur any cost or expense in

 

45

 

connection
therewith, and to cooperate with Buyer’s efforts to obtain for Buyer (i) access
to files, records and data relating to the Assets in the possession of third
parties; and (ii) access to wells constituting a part of the Assets
operated by third parties for purposes of inspecting same.

 

(e)           Buyer shall comply with
all current and subsequently amended applicable laws, ordinances, rules, and
regulations applicable to the Assets and shall promptly obtain and maintain all
permits required by governmental authorities in connection with the Assets.

 

18.6.       Notices.

 

Except as
otherwise expressly provided herein, all communications required or permitted
under this Agreement shall be in writing and may be given by personal delivery,
facsimile, US mail (postage prepaid), or commercial delivery service, and any
communication hereunder shall be deemed to have been duly given and received
when actually delivered to the address of the Parties to be notified as set
forth below and addressed as follows:

 

	
  If
  to Seller, as follows:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NGS
  Sub. Corp.

  	
   

  	
   

  
	
   

  	
  2500 City West
  Blvd, Suite 1300

  	
   

  	
   

  
	
   

  	
  Houston, Texas
  77042

  	
   

  	
   

  
	
   

  	
  Attention: Robert
  S. Herlin, President

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  713-935-0199

  
	
   

  	
  Confirm:

  	
  713-935-0122

  
	
   

  	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Mark
  A. Mathews

  	
   

  	
   

  
	
   

  	
  Adams and Reese
  LLP

  	
   

  	
   

  
	
   

  	
  4400 One Houston
  Center

  	
   

  	
   

  
	
   

  	
  1221 McKinney

  	
   

  	
   

  
	
   

  	
  Houston, Texas
  77010

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  713-652-5152

  
	
   

  	
  Confirm:

  	
  713-652-5151

  
	
   

  	
   

  	
   

  	
   

  
	
  If
  to Buyer, as follows:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MWM Energy, LLC

  	
   

  	
   

  
	
   

  	
  114 30th Avenue South

  	
   

  	
   

  
	
   

  	
  Nashville, Tennessee 37212

  	
   

  	
   

  
	
   

  	
  Attention: Stephen
  F. Moore, CEO

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  615-340-5391

  
	
   

  	
  Confirm:

  	
  615-340-5389

  
						

 

46

 

	
   

  	
  With copies to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gary Wadkins

  	
   

  	
   

  
	
   

  	
  5100 Sweetbriar Lane, Suite 121

  	
   

  	
   

  
	
   

  	
  Tyler, Texas 75703

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  903-534-6005

  
	
   

  	
  Confirm:

  	
  903-534-2944

  
						

 

	
   

  	
  RR Advisors, LLC

  	
   

  	
   

  
	
   

  	
  21 Waterway, Suite 300

  	
   

  	
   

  
	
   

  	
  The Woodlands, Texas
  77380

  	
   

  	
   

  
	
   

  	
  Attention:

  	
  W. Mark Meyer

  
	
   

  	
  Facsimile:

  	
  214-871-8644

  
	
   

  	
  Confirm:

  	
  832-287-8523

  
					

 

	
   

  	
  Charles Robert Bone

  	
   

  	
   

  
	
   

  	
  Bone McAllester Norton
  PLLC

  	
   

  	
   

  
	
   

  	
  511 Union Street, Suite 1600

  	
   

  	
   

  
	
   

  	
  Nashville, Tennessee
  37219

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  615-238-6301

  
	
   

  	
  Confirm:

  	
  615-238-6301

  
					

 

Provided, however,
that any notice required or permitted under this Agreement will be effective if
given verbally within the time provided, so long as such verbal notice is
followed by written notice thereof in the manner provided herein within
twenty-four (24) hours following the end of such time period.  Any Party may, by written notice so delivered
to the other, change the address to which delivery shall thereafter be made.

 

18.7.       Incidental Expenses.

 

Buyer shall bear
and pay (i) all state or local government sales, transfer, gross proceeds,
or similar taxes incident to or caused by the transfer of the Assets to Buyer, (ii) all
documentary, transfer and other state and local government taxes incident to
the transfer of the Assets to Buyer; and (iii) all filing, recording or
registration fees for any assignment or conveyance delivered hereunder.  Each Party shall bear its own respective
expenses incurred in connection with the negotiation and Closing of this
transaction, including its own consultants’ fees, attorneys’ fees, accountants’
fees, and other similar costs and expenses.

 

18.8.       Waiver.

 

Any of the terms,
provisions, covenants, representations, warranties or conditions hereof may be
waived only by a written instrument executed by the Party waiving
compliance.  Except as otherwise
expressly provided in this Agreement, the failure of any Party at any time or
times to require performance of any provision hereof shall in no manner affect
such Party’s right to enforce the same. 
No waiver by any Party of any condition, or of the breach of any term,
provision, covenant, representation or warranty contained in this

 

47

 

Agreement, whether
by conduct or otherwise, in any one or more instances, shall be deemed to be or
construed as a further or continuing waiver of any such condition or breach or
a waiver of any other condition or of the breach of any other term, provision,
covenant, representation or warranty.

 

18.9.       Binding Effect;
Assignment.

 

All the terms,
provisions, covenants, obligations, indemnities, representations, warranties
and conditions of this Agreement shall be covenants running with the land and
shall inure to the benefit of, and be binding upon, and shall be enforceable
by, the parties hereto and their respective successors and assigns.  The rights of Buyer under this Agreement to
acquire the Assets are personal and this Agreement may not be assigned or
transferred by Buyer to any other party, firm, corporation or other entity,
without the prior, express and written consent of Seller, and such consent may
be withheld for any reason, including convenience.  Any attempt to assign this Agreement by Buyer
over the objection or without the express written consent of the Seller shall
be absolutely void.  Seller may condition
its consent to assign this Agreement on Buyer providing Seller with an
appropriate guarantee of its assignee’s performance.  Any subsequent transfer of this Agreement or
of all or any part of the Assets shall be made expressly subject to the terms
and provisions of this Agreement.  In the
event Buyer sells, assigns or otherwise transfers all or a portion of the
Assets, (i) this Agreement shall remain in effect between Buyer and Seller
as to all the Assets regardless of such sale, assignment or transfer (and Buyer
shall not be thereby released, but shall remain obligated hereunder), (ii) Buyer
shall require its successors and assigns expressly to assume its duties,
responsibilities and obligations under this Agreement, to the extent related or
applicable to the Assets or the portion thereof acquired by them, but such
assumption shall not release Buyer from any such assumed obligations, and (iii) Buyer
shall obtain Seller’s prior written consent. 
Any sale, assignment or other transfer of the Leases or other Assets
shall also contain such other language as is necessary to satisfy the terms and
provisions of such Leases or the agreements applicable to such Assets.

 

18.10.     Taxes.

 

(a)           Seller and Buyer agree
that this transaction may be subject to the reporting requirement of Section 1060
of the Internal Revenue Code of 1986, as amended, and that, therefore, IRS Form 8594,
Asset Acquisition Statement, will be filed for this transaction.  The Parties will confer and cooperate in the
preparation and filing of their respective forms to reflect a consistent
reporting of the agreed upon allocation.

 

(b)           Seller shall be
responsible for all state, local and federal property, ad valorem, excise, and
severance taxes attributable to or arising from the ownership or operation of
the Assets prior to the Effective Time. 
Buyer shall be responsible for all property and severance taxes
attributable to or arising from the ownership or operation of the Assets after
the Effective Time.  Any Party which pays
such taxes for the other Party shall be entitled to prompt reimbursement upon
evidence of such payment.  Each Party
shall be responsible for its own federal and state income taxes, if any, as may
result from this transaction.

 

48

 

(c)           If this transaction is
determined to result in state sales or transfer taxes, Buyer shall be solely responsible
for any and all such taxes due on the Assets acquired by Buyer by virtue of
this transaction.  If Buyer is assessed
such taxes, Buyer shall promptly remit same to the taxing authority.  If Seller is assessed such taxes, Buyer shall
reimburse Seller for any such taxes paid by Seller to the taxing authority.

 

18.11.     Audits.

 

It is expressly
understood and agreed that Seller retains its right to receive its
proportionate share of the proceeds from any audits relating to activities
prior to the Effective Time, and Seller shall likewise pay its share of any
costs attributable to the period prior to the Effective Time resulting from any
such audits.

 

18.12.     Like-Kind Exchanges.

 

Seller  may elect to engage in a “like-kind
exchange” under Section 1031 of the Internal Revenue Code of 1986, as
amended, and the Treasury Regulations promulgated thereunder (collectively, the
“1031 Rules”) with the Assets as “replacement property” under the 1031
Rules.  If Seller so elects, and at
Seller’s reasonable request, Buyer shall perform such actions and execute such
documents as Seller believes to be necessary or appropriate to facilitate
Seller’s exchange transaction; provided however that (i) Seller agrees to
hold Buyer harmless from and against any expenses or liability for performing
such actions or executing such documents and (ii) Seller shall not be
permitted to assign any of its obligations under this Agreement in connection
with any such transaction.

 

18.13.     Governing Law.

 

THIS AGREEMENT
SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS OTHERWISE
APPLICABLE TO SUCH DETERMINATIONS. 
JURISDICTION AND VENUE WITH RESPECT TO ANY DISPUTES ARISING HEREUNDER
SHALL BE PROPER ONLY IN HARRIS COUNTY, TEXAS.

 

18.14.     Entire Agreement.

 

This Agreement
embodies the entire agreement between the Parties and replaces and supersedes
all prior agreements, arrangements and understandings related to the subject
matter hereof, whether written or oral. 
No other agreement, statement, or promise made by any Party, or to any
employee, officer or agent of any Party which is not contained in this
Agreement shall be binding or valid. 
This Agreement may be supplemented, altered, amended, modified or revoked
by a writing only, signed by the Parties hereto.  The headings herein are for convenience only
and shall have no significance in the interpretation hereof.  The Parties stipulate and agree that this
Agreement shall be deemed and considered for all purposes, as prepared through
the joint efforts of the Parties, and shall not be construed

 

49

 

against one Party
or the other as a result of the preparation, submittal or other event of
negotiation, drafting or execution thereof.

 

18.15.     Severability.

 

If any provision
of this Agreement is found by a court of competent jurisdiction to be invalid
or unenforceable, that provision will be deemed modified to the extent
necessary to make it valid and enforceable, and if it cannot be so modified, it
shall be deemed deleted and the remainder of the Agreement shall continue and
remain in full force and effect.

 

18.16.     Exhibits and Schedules.

 

All Exhibits
attached to this Agreement, and the terms of those Exhibits and Schedules which
are referred to in this Agreement, are made a part hereof and incorporated
herein by reference.

 

18.17.     Delivery of Files After
Closing.

 

The Assets set out
in Section 1.44 shall be made available to Buyer within ten (10) business
days after the Closing Date at a location to be specified by Seller.  Any transportation, postage, or delivery
costs from Seller’s offices shall be at Buyer’s sole cost, risk and expense.

 

18.18.     Survival.

 

Unless otherwise
specifically provided in this Agreement, all of the covenants, representations,
warranties, and agreements of or by the Parties hereto shall not survive the
Closing Date, provided, however, (i) the
representations and warranties of the Parties set forth in Articles 4 and 5
shall survive the Closing for a period of ninety (90) days after the Closing
Date, and (ii) the indemnity obligation between the Parties contained in Article 17
and the Arbitration provisions contained in Section 18.2 shall
survive Closing without limit.

 

18.19.     Subsequent Adjustments.

 

Regardless of the
date set for the Final Settlement, Buyer and Seller agree that their intent is
to allow for the earliest practical forwarding of revenue and reimbursement of
expenses between them, and Seller and Buyer recognize that either may receive
funds or pay expenses after the Final Settlement Date which are properly the
property or obligation of the other. 
Therefore, upon receipt of net proceeds or payment of net expenses due
to or payable by the other Party hereto, whichever occurs first, Seller or
Buyer, as the case may be, shall submit a statement to the other Party hereto
showing the relevant items of income and expense with supporting documentation.
Payment of any net amount due by Seller or Buyer, as the case may be, on the
basis thereof shall be made within ten (10) days of receipt of the
statement.

 

50

 

18.20.     Counterparts.

 

This Agreement may
be executed in any number of counterparts, and each and every counterpart shall
be deemed for all purposes one (1) agreement.

 

18.21.     Subrogation.

 

To the fullest
extent allowed by law and the applicable agreements with third parties, Seller
grants Buyer a right of subrogation in all claims or rights Seller may have
against third parties to the extent they relate to the Assumed Obligations.

 

18.22.     Suspended Monies.

 

Except as provided
in Section 3.5, at Closing, Seller shall deliver to Buyer the
monies held in suspense by Seller for the account of third parties, or relate
to a title dispute or question as to ownership, along with any documentation in
Seller’s possession or available to Seller in support of such suspended
funds.  Except as provided in Section 3.5,
any additional monies of this nature received by Seller after Closing shall be
remitted to Buyer within one hundred twenty (120) days after the Closing
hereof.  At Closing, Buyer shall assume
the obligation for the payment of these monies.

 

18.23.     Change of Name.

 

As
promptly as practicable, but in any case within thirty (30) days after the Closing
Date, Buyer shall eliminate the names “NGS Sub. Corp.”, “Evolution Petroleum
Corporation,” or “Natural Gas Systems, Inc.” and any variants of these
names from the Assets acquired pursuant to this Agreement and, except with
respect to such grace period for eliminating existing usage, shall have no
right to use any logos, trademarks or trade names belonging to Seller, its
parent or any of its Affiliates.

 

18.24.     Replacement of Bonds, Letters of Credit and Guarantees.

 

The
parties understand that none of the bonds, letters of credit and guarantees, if
any, posted by Seller with Governmental Bodies and relating to the Assets may
be transferable to Buyer.  Promptly
following Closing, Buyer shall obtain, or cause to be obtained in the name of
Buyer, replacements for such bonds, letters of credit and guarantees, to the
extent such replacements are necessary to permit the cancellation of the bonds,
letters of credit and guarantees posted by Seller or to consummate the
transactions contemplated by this Agreement.

 

18.25.     No Third-Party Beneficiaries.

 

Nothing
in this Agreement shall entitle any Person other than Buyer and Seller to any
Claims, remedy or right of any kind, except as to those rights expressly
provided to Seller Indemnitees and Buyer Indemnitees (provided, however, any
claim for indemnity hereunder on behalf of a Seller Indemnitee or a Buyer
Indemnitee must be made and administered by a Party to this Agreement).

 

51

 

18.26.     Time of Performance.: Time is of the
essence in the performance of this Agreement.

 

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

 

	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
  NGS SUB. CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Robert
  S. Herlin

  
	
   

  	
   

  	
     Robert
  S. Herlin, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
  MWM ENERGY, LLC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/W.
  Mark Meyer

  
	
   

  	
   

  	
  W.
  Mark Meyer, Chairman

  
				

 

52

 

Exhibit “A-1”

 

Attached
hereto and made a part of that certain

Asset
Purchase and Sale Agreement dated February 15, 2008,

by
and between NGS Sub. Corp., as Seller, and

MWM
Energy, LLC, as Buyer

 

LEASES

 

Being the following oil and gas leases described in that certain Act of
Sale and Assignment dated September 2, 2004 from Atkins Production, Inc.,
et al to NGS Sub. Corp., as recorded in Book 291, Page 179 of the
Conveyance Records of LaSalle Parish, Louisiana, more fully described as
follows, to-wit:

 

1.                                       Oil, gas and mineral lease executed by
William E. Zimmerman in favor of W.S. Ezell of date April 18, 1925,
recorded at Oil and Gas Lease Book 3, Page 14, Registry 1333 of the
records of LaSalle Parish, Louisiana, insofar
as the said lease covers the following described property, to-wit: The
Northeast Quarter of the Southwest Quarter of Section 25, Township 10
North, Range 1 East, LaSalle Parish, Louisiana.

 

Lexington – Zimmerman #1 – 100’ North and 226’ West from the SE Corner
of NE/4 of Section 25, Township 10 North, Range 1 East, LaSalle Parish,
Louisiana

Lexington – Zimmerman #2 – 440’ North and 100’ West
from the SE Corner of NE/4 of SW/4 of Section 25, Township10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #3 – 669’ North and 115’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #4– 490’North and 290’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #5– 327’ North and 430’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #6– 100’ North and 630’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #7– 300’ North and 630’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #8– 387’ North and 788’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
I East, LaSalle Parish, Louisiana

Lexington – Zimmerman #14– 505’ South and 1217’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #15– 345’ South and 1095’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #16– 100’ South and 1135’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #17– 258’ South and 552’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #18– 245’ South and 300’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
I East, LaSalle Parish, Louisiana

 

2.                                  (Hardtner “A” Lease) Oil, gas and mineral
lease executed by the Urania Lumber Company in favor of Southern Carbon Company
of date January 23, 1923, and recorded at Oil and Gas 

 

1

 

Lease Book 2, Page 449, Registry 069784 of the
records of LaSalle Parish, Louisiana, insofar
as the said lease covers the following described property to-wit: The Southeast
Quarter of the Southeast Quarter of Section 7, Township 10 North, Range 2 East, LaSalle Parish,
Louisiana.

 

3.                                  (Hardtner “C” Lease) Oil, gas and mineral
lease executed by the Urania Lumber Company in favor of S.M. Collins and A.
Gibbons of date November 27, 1922, recorded at Oil and Gas Lease Book 2, Page 18,
Registry 06608 of the records of LaSalle Parish, Louisiana, insofar as the said lease covers the following
described property, to-wit: That portion of the Northwest Quarter of the
Northeast Quarter of Section 18, Township 10 North, Range 2 East, lying
south and east of the Iron Mountain Railway Company railroad.

 

4.                                     (Urania  A, B, C and Hardtner-Edenborn lease) Oil, gas and mineral lease
executed by Q.T. Hardtner, Jr., et al, in favor of Ed Alexander of date October 26,
1972, recorded at Oil and Gas Lease Book 36, Page 392, Registry 91253 of
the records of LaSalle Parish, Louisiana, insofar
as the above described lease covers the following described property, to-wit:

 

Township 10 North – Range 2
East

 

Section 19:

 

NE/4 of NW/4 of NE/4;

NW/4 of SE/4 of NW/4 of NE/4;

SE/4 of SE/4 of NW/4 of NE/4;

NW/4 of SW/4 of NE/4;

NW/4 of NE/4 of NW/4 of SE/4;

NE/4 of NE/4 of NW/4 of SE/4;

SE/4 of NE/4 of NW/4 of SE/4;

SW/4 of SW/4 of NW/4 of E/4;

S/2 of NW/4 of SE/4 of NE/4;

SW/4 of NE/4 of SE/4 of NE/4;

NE/4 of SW/4 of NE/4 of SE/4;

E/2 of SW/4 of NE/4;

SW/4 of SE/4 of NW/4 of NE/4;

NW/4 of SW/4 of NE/4 of SE/4;

NE/4 of SW/4 less the NW/4;

NW/4 of NW/4 of SE/4 of SW/4;

SW/4 of SE/4 of NW/4 of NE/4.

 

5.                                (New Pendarvis lease) Oil, gas and mineral
lease from W.P. Pendarvis in favor of M.H. O’Hara, W.B. Letson, W.T. Murray,
and W.L. Fort, dated August 16, 1923, recorded at Oil and Gas Lease Book
2, Page 74 of the records of LaSalle Parish, Louisiana, insofar and only insofar as the said lease covers and
applies from the surface of the earth to 100’ below the top of the Wilcox
Group, and insofar and only insofar as the above described lease covers and
affects one acre in the form of a square around the following wells:

 

2

 

Monroe Well Service – La. Petr. Assoc. - W.P.
Pendarvis No. I – SN 193828 – located 145’ N and 415’ W from South Quarter
Corner of Section 26, T10N – R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 2 – SN 193829 – located 345’ N and 415’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 3 – SN 193830 – located 545’ N and 415’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 4 – SN 193831 – located 745’ N and 415’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 5 – SN 193832 – located 790’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 6 – SN 193833 – located 590’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1 E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 7 – SN 193834 – located 390’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 8 – SN 193835 – located 190’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1 E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 10 – SN 193837 – located 435.14’ N and 15’ W from South
Quarter Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 11 – SN 193838 – located 635.14’ N and 15’ W from South
Quarter Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 12 – SN 194758 – located 345’ N and 170’ E from the S/Q/C of
Sec. 26, T10N, R1E, LaSalle Parish, Louisiana.

Monroe Well Service – Beaver – Pendarvis No. I –
(SN 193250) – located 1218’ N and 369’ W from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service – Beaver – Pendarvis No. 2 –
(SN 193251) – located 1218’ N and 169’ W from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 3
- (SN 193252) - located 818’ N and 320’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 4
- (SN 193253) - located 618’ N and 411’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 6
- (SN 193255) - located 100’ N and 301’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 7
- (SN 194757) - located 444’ N and 345’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 9
- (SN 194759) - located 545’ N and 165’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 10
- (SN 194760) - located 765’ N and 140’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 11
- (SN 194761) - located 970’ N and 175’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 12
- (SN 194762) - located 870’ N and 30’ W from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 13
- (SN 194763) - located 1085’ N and 8’ W from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

 

3

 

Monroe Well Service - Beaver - Pendarvis No. 14
- (SN 194764) - located 1020’ N and 200’ W from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

 

6.                                  (Old Pendarvis lease) Oil, gas and mineral
lease from W.P. Pendarvis in favor of M.H. O’Hara, W.B. Letson, W.T. Murray,
and W.L. Fort, dated August 16, 1923, recorded at Oil and Gas Lease Book
2, Page 74 of the records of LaSalle Parish, Louisiana, INSOFAR AND ONLY INSOFAR as said lease covers and
affects one acre in the form of a square around each of the following wells:

 

Pendarvis No. 3 - SN 010281 - located 640’ N
and 712’ W from SE/C of SW/4 of SE/4 of Section 26, T1ON - R1E, LaSalle
Parish, Louisiana

 

Pendarvis No. 4 - SN 010331 - located 85’ N and
827’ W from SE/C of SW/4 of SE/4 of Section 26, T1ON - RIE, LaSalle
Parish, Louisiana

 

7.                                  Oil, gas and mineral lease dated May 24,
1979, recorded in Oil and Gas Book 43, Page 750, Registry 142221 of the
records of LaSalle Parish, Louisiana, executed by Missouri Pacific Railroad,
Lessor, in favor of Charles B. Bice, Lessee; insofar
and only insofar as said lease covers and affects the following:

 

SSS Mopac No. 8, (SN 183703), located in the
center of Lot 10 Block 1 of the original Town of Tullos, being 356’ North and
17’ West from the East Quarter Corner of Section 26 Township 10 North,
Range 1 West.

 

8.                                 Oil, Gas and Mineral Lease from Tremont
Lumber Company to Jackie D. Nelson, dated May 20, 1968, recorded in Oil
and Gas Book 31, Page 729, insofar as
said lease covers the Southwest Quarter of Northwest Quarter of Section 30,
Township 10 North, Range 2 East, LaSalle Parish, Louisiana, from the ground to
the base of the Wilcox Formation.

 

9.                                 Oil, Gas and Mineral Lease dated November 5,
1975, recorded November 11, 1975, in Oil, Gas and Mineral Lease Record
Book 67, Page 367, records of Winn Parish, Louisiana, executed by C.S.
Meredith, et al, Lessors, unto J.B. Stafford, Lessee, covering and affecting:

 

Southeast Quarter of Northwest Quarter (SE/4 of
NW/4), Section 6, Township 10 North, Range 1 East, Winn Parish, Louisiana,
and INSOFAR as said lease covers and affects
down to the base of the Wilcox, together with a like interest in all oil and/or
gas well located upon said lease.

 

10.                                 Oil, Gas and Mineral Lease executed by C.S.
Meredith, curator for Betty Lou Meredith to and in favor of Atkins Production, Inc.,
a Louisiana Corporation, dated May 15, 1989, recorded in Conveyance Book
124 at Page 66, records of Winn Parish, Louisiana covering and affecting
the following described property, to-wit:

 

The Southeast Quarter of Northwest Quarter of Section 6,
Township 10 North, Range 1 East, Winn Parish, Louisiana.

 

4

 

11.                               Oil, Gas and Mineral Lease executed by Monroe
Well Service, Delaware to and in favor of SSM Partnership, dated June 21,
1990, recorded in Conveyance Book 127 at Page 636 records of Winn Parish,
Louisiana, INSOFAR AND ONLY INSOFAR as said
lease covers and affects one acre in the from of a square (with the well in the
center thereof) around each of the following 8 wells in the NW/4 of Section 5,
Township 10 North, Range 1 East, Winn Parish, Louisiana.

 

SSS Drilling Asso. Tremont No. 1 – SN 182799 –
located 940’ N and 100’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 2 – SN 182800 – located 1021’ N and
451’ E from the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 3 – SN 182801 – located 920’ N and
77’ E of the SW corner of the SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 4 – SN 182802 –
located 620’ N and 855’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 5 – SN 182803 – located 294’ N and
895” E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 6 – SN 182804 –
located 104’ N and 821’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 7 – SN 182805 – located 105’ N and
1020’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 8 – SN 184928 –
located 100’N and 517’ E of the SW corner of SW/4 of NW/4 of said Section 5
being 8 acres situated in the South half of the NW/4 of Section 5, T1ON,
R1E.

 

12.                            (Old Universal D lease) Oil, Gas and Mineral
Lease dated October 22, 1943 from Urania Lumber Company in Favor of
M&W Oil Company, which lease is recorded in Book 11 at Page 284 of the
conveyance records of LaSalle Parish, Louisiana and covers:

 

One acre in the form of a square (with the well as the center thereof)
around each of the following three wells; the SSM – Urania Lumber Company #D-1
Well, SN 115191, located 100 feet South and 100 feet West of the Northeast
Corner of the SE/4 of NE/4 of NE/4, Section 24, TI ON – R1E; SSM – Urania
Lumber Company #D-2 Well, SN 115192, located 100 feet South and 540 feet West
of the Northeast Corner of the NE/4 of NE/4 of said Section 24, SSM-Urania
Lumber Company D-3 well, SN 115468, being three acres situated in the SE/4 of
NE/4 of NE/4, Section 24 T1 ON – R1E, LaSalle Parish, Louisiana, and INSOFAR as said lease covers a depth down to 1600 feet

 

13.                            (Old Universal C lease) Oil, Gas and Mineral
Lease dated June 12, 1941 from the Urania Lumber Company in favor of
Willis C. Martin and M.E. Waldron, which lease is recorded in Book 9 at Page 249
of the conveyance records of LaSalle Parish, Louisiana and covers:

 

One acre in the form of a square (with the well as
the center thereof) around each of the following three wells; SSM – Urania
Lumber Company #C-2 Well, SN 115773, located 100 feet North and 100 feet East
of the Southwest corner of the NW/4 of NW/4 of NW/4 Section 19, T1ON –
R2E; SSM- Urania Lumber Company#C-5 Well, SN 115986, located 340 feet South and
100 feet East of the Northwest Corner of said Section 19, C-4 well, SN
116282, being three acres situated in the NW/4 of NW/4 of NW/4, Section 19,
T1ON – R2E, LaSalle Parish, Louisiana and INSOFAR
as said lease covers a depth down to 1600’

 

5

 

14.                            (Old Universal A lease) Oil, Gas and Mineral
lease dated October 22, 1943 from the Urania Lumber Company in favor of
M&W Oil Company, which lease is recorded in Book 11 at Page 284 of the
conveyance records of LaSalle Parish, Louisiana and covers:

 

One acre in the form of a square (with the well as
the center thereof) around each of the following wells; SSM – Urania Lumber
Company #A-2 Well, SN 114278, located 545 feet South and 545 feet West of the
Northeast Corner of Section 24, T1ON-R1E; SSM – Urania Lumber Company #A-2
Well SN 114442, located 300 feet West and 100 feet North of the Southeast
Corner of the NE/4 of NE/4 of NE/4 of said Section 24; SSM – Urania Lumber
Company 14A-5 Well SN 114534 located 345 feet South and 100 feet West of the
Northeast Corner of said Section 24, being three acres situated in the
NE/4 of NE/4 of NE/4, Section 24, TION-R1E, LaSalle Parish, Louisiana and INSOFAR as said lease covers a depth down to 1600 feet

 

15.                            (MDP Lease) Lease dated September 28, 1949, recorded
in Oil and Gas Lease Book 14, Page 127, records of LaSalle Parish, Louisiana,
executed by Walter Herbert, Lessor, in favor of John T. Cupples, Lessee, INSOFAR and ONLY INSOFAR as said lease covers and
effects:

 

Lot 3 of Block 2, Original Town of Tullos,
containing the Monroe Drilling Maxwell No. 1 well, Serial Number 179671,
Monroe Drilling Maxwell No. 2 well, SN 179672 located 174 feet North and
359 feet West from the East Quarter Corner of Section 26, Township 10
North, Range 1 East, LaSalle Parish, Louisiana, and Lot 5 of Block 2, Original
Town of Tullos, containing the Monroe Drilling Maxwell No. 2 well, SN
179672 North and 424 feet West from the East Quarter Corner of Section 26,
Township 10 North, Range 1 East, LaSalle Parish, Louisiana.

 

16.                            (Shemen SWD) Oil, Gas and Mineral Lease executed by Urania
Lumber Company in favor of Willis C. Martin and M.E. Waldron of date June 12,
1941, recorded at Oil and Gas Lease Book 9, Page 249 of the records of
LaSalle Parish, Louisiana, INSOFAR AND ONLY
INSOFAR as said lease covers a depth from the surface of the Earth down to a
depth of 1600 feet, and INSOFAR AND ONLY INSOFAR as the above described lease
covers and affects one acre in the form of a square around the following wells:

 

Urania Lumber Co., SWD #1, SN-971328, 100’ S of NE/C Section 24,
T10N, R1E

 

17.                           Oil, Gas and Mineral Lease executed by the
Urania Lumber Company in favor of M&W Oil Company of date October 22,
1943, recorded at Oil and Gas Lease Book 11, Page 284 of the records of
LaSalle Parish, Louisiana, INSOFAR AND ONLY
INSOFAR as said lease covers a depth from the surface of the Earth down to a
depth of 1600 feet, and INSOFAR AND ONLY INSOFAR as the above described lease
covers and affects one acre in the form of a square around the following wells:

 

(Urania Lumber Co. – Shemen
lease)

 

Monroe Well Service – Shemen – Urania Lumber Co. No. 1
- (SN 191712) – located 362’ N and 507’ W from the SE/C of NE/4 of NE/4 of Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania Lumber Co. No. 2
- (SN 191713) – located 162’ N and 507’ W from the SE/C of NE/4 of NE/4 of Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

 

6

 

Monroe Well Service – Shemen – Urania Lumber Co. No. 3
(SN 191714) – located 362’ N and 307’ W from the SE/C of NE/4 of NE/4 of Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

 

(Urania A – Shemen lease)

 

Monroe Well Service – Shemen – Urania “A” No. 1
- (SN 191709) – located 559’ S and 78’ W from the NE/C Section 24, T 10 N,
R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania “A” No. 2
- (SN 191784) – located 369’ S and 351’ W from the NE/C Section 24, T 10
N, R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania “A” No. 6
- (SN 191788) – located 131’ S and 100’ W from the NE/C Section 24, T 10
N, R 1 E, LaSalle Parish, Louisiana

 

18.                            Oil, Gas and Mineral Lease executed by the
Urania Lumber Company in favor of Willis C. Martin and M.E. Waldron of date June 12,
1941, recorded at Oil and Gas Lease Book 9, Page 249 of the records of
LaSalle Parish, Louisiana, INSOFAR AND ONLY
INSOFAR as said lease covers a depth from the surface of the Earth down to a
depth of 1600 feet, and INSOFAR AND ONLY INSOFAR as the above described lease
covers and affects one acre in the form of a square around the following wells:

 

Monroe Well Service – Shemen – Urania “C” No. 1
(SN 191783) – located 131’ S and 100’ E from the NW/C Section 19, T 10 N,
R 2 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania “C” No 2 - (SN
191779) – located 359’ S and 302’ E from the NW/C Section 19, T 10 N, R 2
E, LaSalle Parish, Louisiana

 

19.                            (LPO) Oil, Gas and Mineral Lease executed by
Louisiana Pacific Corporation to and in favor of Atkins Production, Inc.,
dated February 27, 1990, recorded under file number 144131 in Conveyance
Book 174, Page 631 of the records of LaSalle Parish, Louisiana. Covering
and affecting the following property as described:

 

Northeast Quarter of Northeast Quarter of Section 13,
Township 10 North, Range 1 East

 

20.                            (LPO) Oil, Gas and Mineral Lease executed by
William Dows Blake, et al, to and in favor of Atkins Production, Inc.,
dated February 1, 1990, recorded under file number 144130 in Conveyance
Book 174, Page 628 of the records of LaSalle Parish, Louisiana. Covering
and affecting the following property as described:

 

Northeast Quarter of the Northeast Quarter (NE/4 of
NE/4), Section 13, Township 10 North, Range 1 East.

 

21.                            (Silver City SWD) Urania E SWD #1, Serial #971269, located 192’ South and
1210’ East from the Center of Section 19, TI ON, R2E, LaSalle Parish,
Louisiana, along with all related Salt Water Disposal Equipment.

 

Hartner A SWD #1, Serial #971237, located 374’ North
and 998’ West from the SE corner of Section 7, T1ON, R2E, LaSalle Parish,
Louisiana.

 

22.                                 (WP Pendarvis-La Petro lease) Pendarvis SWD
Well #1, Serial #971428, located in Section 26, T1ON, RIE, LaSalle Parish,
Louisiana

 

7

 

23.                            (Miles Heirs and Miles Essex leases) That
certain oil, gas and mineral lease executed by D.F. Miles, et al, in favor of
Essex Drilling Co., Inc., dated February 14, 1984, as recorded in Oil
and Gas Lease Book 61 at Page 302 of the records of LaSalle Parish,
Louisiana;

 

That certain oil, gas and mineral lease executed by D.F. Miles, et al,
in favor of Essex Drilling Co., Inc., dated March 22, 1984, as
recorded in Oil and Gas Lease Book 61 at Page 405 of the records of
LaSalle Parish, Louisiana;

 

That certain oil, gas and mineral lease executed by
William J. Miles, et al, in favor of Essex Drilling Co., Inc., dated as
per acts recorded in Oil and Gas Lease Book 60, Pages 688 and 733; and Oil
and Gas Lease Book 61, Pages 39, 41, 43, 45, 47, 49, 51, 53, 55, 57, 185,
187, 189, 242 and 260 of the records of LaSalle Parish, Louisiana;

 

Insofar as said leases cover and affect the following
described lands in LaSalle Parish, Louisiana, to-wit:

 

Begin at the NE Corner of the NW/4 of NW/4 of Section 25,
T10N, R1E, and run thence South 0 degrees 12’ West 533.9 feet for the point of
beginning; run thence South 0 degrees 12’ West 376 feet; run thence north 87
degrees 41’ West 391.7 feet to an iron pipe in the center of the
Columbia-Alexandria Road; run thence South 38 degrees 28’ West 278.5 feet to an
iron pipe in the center of said road; run thence north 61 degrees 37’ West 29
feet to an iron pipe on an old rail fence line on the property line of F.J.
Miles; run north 16 degrees 44’ East 402 feet to an iron pipe; run thence north
51 degrees 58’ West 10 feet to an iron pipe; run thence North 16 degrees 44’
East 184 feet to an iron pipe on the line of the old Kendrick Gin Lot; run
thence North 89 degrees 25’ East 424.7 feet to the point of beginning.

 

That certain oil, gas and mineral lease dated August 25, 1983,
from William Julious Miles to Essex Drilling Co., Inc., as recorded in Oil
and Gas Lease Book 60 at Page 688 of the records of LaSalle Parish,
Louisiana;

 

That certain oil, gas and mineral lease dated September 6, 1983,
from Edna Miles Gatherer and Lillie Mae Miles Little to Essex Drilling Co., Inc.,
as recorded in Oil and Gas Lease Book 60 at Page 733 of the records of
LaSalle Parish, Louisiana. Co-Lessors’ Agreements identified with the Edna
Miles Gatherer, et al. Lease as recorded in Oil and Gas Lease Book 61 at Pages 39,
41, 43, 45, 47, 49, 51, 53, 55, 57, 185, 187, 189, 242 and 260;

 

Insofar as said leases cover and affect the following
described lands in LaSalle Parish, Louisiana, to-wit:

 

A tract of land in the W/2 NW/4 of Section 25, Township 10 North,
Range 1 East, described as beginning at the SWC of lands owned by W.T. Bass on
the East side of the Missouri Pacific right-of-way, running South along the
right-of-way 224 yards, run thence East 106 yards, run thence North 224 yards
to the SEC of the W.T. Bass, run thence West 106 yards to the point of beginning.

 

8

 

Oil,
gas and mineral lease dated August 16, 1983, from Frank Doughty, Chairman
of the Board for the LaSalle State Bank in Favor of Russell A, Flowers, husband
of Sally Ann Flowers, as recorded in Oil and Gas Lease Book 60 at Page 745
of the records of LaSalle Parish, Louisiana

 

Insofar as said lease covers the following described lands in
LaSalle Parish, Louisiana, to-wit:

 

Lots
1, 2, 3 and 4 of Block 2, and Lot 4 of Block 12 of the Urania Lumber Company
Addition to the Town of Tullos, LaSalle Parish, Louisiana, or 728 West and 803
North from SEC of SW/4 NW/4 of Section 25, Township 10 North, Range I
East, LaSalle Parish, Louisiana.

 

Being the following Oil,
Gas and Mineral Leases described in that certain Assignment of Oil, Gas and
Mineral Leases dated December 28, 2004 from Atkins Production, Inc.
to Natural Gas Systems Corporation, as recorded in Conveyance Book 294, Page 455
of the records of LaSalle Parish, Louisiana, more fully described as follows,
to-wit:,

 

24.           Oil, Gas and Mineral lease executed by Southern
Heritage Bank in favor of Atkins Production, Inc. dated October 8,
2004, recorded at Conveyance Book 292, Page 99 of the records of LaSalle
Parish, Louisiana

 

Oil, Gas and Mineral
Lease executed by the Town of Tullos in favor of Atkins Production, Inc.
as recorded December 9, 2004 at Conveyance Book 293, Page 330 of the
records of LaSalle Parish, Louisiana.

 

Insofar as said leases
cover and affect Lots 1, 2, 3 and 4 of Block 2 and Lot 4 of Block 12 of the
Urania Lumber Company Addition to the Town of Tullos, LaSalle Parish,
Louisiana.

 

Being the following Oil,
Gas and Mineral Leases described in that certain Assignment of Oil, Gas and
Mineral Leases dated June 22, 2005 from Atkins Production, Inc. to
NGS SUB. Corp. as recorded under Registry Number 191278 and in Conveyance Book
149, Page 438 of the records of Winn Parish, Louisiana, more fully
described as follows, to-wit:

 

25.           Oil, Gas and Mineral Lease dated May 23, 2005
from Cornelia Pray, et al to Atkins Production, Inc., as recorded in
Conveyance Book 149, Page 424 of the records of Winn Parish, Louisiana

 

26.           Oil, Gas and Mineral Lease dated May 23, 2005
from Priscilla Long Bedgood to Atkins Production, Inc., as recorded in
Conveyance Book 149, Page 428 of the records of Winn Parish, Louisiana

 

9

 

27.           Oil, Gas and Mineral Lease dated May 23, 2005
from Cynthia Brown Beauchamp to Atkins Production, Inc., as recorded in
Conveyance Book 149, Page 432 of the records of Winn Parish, Louisiana

 

28.           Oil, Gas and Mineral Lease dated March 22, 2005
from Brandon R. Hawkins and Brandy Coburn Hawkins to Atkins Production, Inc.,
as recorded in Conveyance Book 149, Page 436 of the records of Winn
Parish, Louisiana

 

Being the following oil
and gas leases described in that certain Act of Sale and Assignment dated February 1,
2005 from Chadco, Inc., et al to NGS Sub. Corp., as recorded in Book 294, Page 333
of the Conveyance Records of LaSalle Parish, Louisiana, more fully described as
follows, to-wit:

 

29.           Oil, gas and mineral lease executed by
William C. Pringle, et al, in favor of E.R. Waller dated August 26, 1936,
recorded in Oil and Gas Lease Book W, Page 449-A, Registry #23478, records
of LaSalle Parish, Louisiana, covering lands in Lot 15, Section 26,
Township 10 North, Range I East, LaSalle Parish, Louisiana.

 

30.           Oil, gas and mineral lease executed by
Russell A. Flowers, et ux, in favor of Sara Productions, dated June 6,
1995, recorded in Conveyance Book 220, Page 252, Registry #159489, records of LaSalle Parish, Louisiana,
covering the following described property, to-wit:

 

Section 26, Township 10 North, Range 1 East

 

Lot 4, Block 10, original Town of Tullos, in the NE/4
of SE/4.

Lot 1
of Russell Flowers Subdivision being a re-subdivision of Lot 3 of Block 13 of
the Original Town of Tullos, in the NE/4 of SE/4.

Lot 2
of the Russell Flowers Subdivision being a re-subdivision of Lot 3 of Block 13
of the original Town of Tullos, in the NE/4 of the SE/4.

Lot 3
of the Russell Flowers Subdivision being a re-subdivision of Lot 3 of Block 13
of the original Town of Tullos, in the NE/4 of the SE/4.

Lot 4 of the Russell Flowers Subdivision, in the SE/4
of the SE/4.

Lot 5 of the Russell Flowers Subdivision, in the SE/4
of the SE/4.

 

31.         Oil, gas and mineral lease executed by
The Urania Lumber Co. Ltd., in favor of Southern Carbon Company, dated January 23,
1923, recorded in Oil and Gas Lease Book 2, Page 449, Registry #6978,
records of LaSalle Parish, Louisiana, as the said lease covers the following
described property, to-wit:

 

The
specific acreage in the SE/4 of SE/4, of Section 7, Township 10 North,
Range 2 East, LaSalle Parish, Louisiana.

 

INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS ONE (1) ACRE
IN A SQUARE SURROUNDING THE FOLLOWING WELLS, TO-WIT:

 

Hardtner
A No. 3, SN186514; located 270’ N & 516’W from SE corner of Sec.
7

 

10

 

Hardtner
A No. 4, SN186515; located 105’ N & 630’ W from SE corner of Sec.
7

Hardtner
A No. 5, SN186516; located 320’ N & 305’ W from SE corner of Sec.
7

Hardtner
A No. 6, SN186517; located 105’ N & 206’ W from SE corner of Sec.
7

Hardtner
A No. 11, SN187940; located 670’ N & 500’ W from SE corner of
Sec.7

Hardtner
A No. 12, SN187871; located 670’ N & 702’W from SE corner of Sec.
7

Hardtner
A No. 13, SN187872 located 275’ N & 740’ W from SE corner of Sec
7.

Hardtner
A No. 15, SN187874; located 862’ N & 452’ W from SE corner of
Sec.7

Hardtner
A No. 16, SN187875 located 618’ N & 897’ W from SE corner of Sec.
7

Hardtner
A No. 17, SN187876; loc. 395’ N & 908’ W from SE corner of Sec 7

Hardtner
A No. 18, SN187877; loc. 217’ N & 1001’ W from SE corner of Sec.
7

Hardtner
A No. 28, SN188202; loc. 100’ N & 1167’ W from SE corner of Sec.
7

 

32.           Oil, gas and mineral lease executed by
Willie Green Bradford, et ux, in favor of Russell A. Flowers, dated May 18,
1981, recorded in Oil and Gas Lease Book 48, Page 703, Registry #114379,
records of LaSalle Parish, Louisiana, covering lands in the SE/4 of
the SE/4 of Section 26, Township 10 North, Range 1 East, LaSalle Parish,
Louisiana.

 

33.           Oil, gas and mineral lease executed by
Board of Levee Commissioners Tensas Basin Levee District, in favor of Max W.
Maxwell dba M &  M Oil
Properties, dated May 19, 1969, recorded in Oil and Gas Lease Book 32, Page 683,
Registry #8289, records of LaSalle Parish, Louisiana, the following described
property located in the NW/4 of NE/4, of Section 26, Township 10 North,
Range 1 East, LaSalle Parish, Louisiana,

 

INSOFAR AND ONLY INSOFAR AS the said lease covers and affects
one (1) acre in the form of a square (with the well as the center hereof)
around the following drillsite locations:

 

Tensas
Basin Levee District No. 1, SN134605; located 345’ S 380’ E of NW corner
of NW/4 of NE/4 of Section 26, Township10 North, Range I East, LaSalle
Parish, Louisiana.

Tensas
Basin Levee District No. 3, SN 178732; located 120’ S & 180’ E
from NW corner of Section 26, Township10 North, Range 1 East, LaSalle
Parish, Louisiana.

Tensas
Basin Levee District SWD No.2, SN990623; located 196’ South & 113’
East of NW/C of the NW/4 of NE/4 of Section 26, Township 10 North, Range 1
East, LaSalle Parish, Louisiana.

 

34.       Oil, gas and mineral lease executed by
Tremont Lumber Company, in favor of Arkansas Fuel Oil Company, dated May 1,
1947, recorded in Oil and Gas Lease Book 13, Page 88, records of LaSalle
Parish, Louisiana,

 

INSOFAR AND ONLY INSOFAR as the following wells on a
sub-lease 100’ in a circle around each:

 

Tremont
B. No. 1, SN187623; located 189.9’ FNL & 892.8’ FEL of SW/4 of
NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 3, SN187822; located 307.2’ FNL & 27.1’ FEL of SW/4 of
NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle Parish,
LaTremont B. No. 4, SN187824; located 404’ FNL & 405.2’ FEL of
SW/4 of NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle
Parish, La.

Tremont
B. No. 5, SN188181; located 1131’ FEL & 604’ FNL of SE/4 of NE/4
of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 6, SN189535; located 678.8’ NWL & 420.2’ FSL of SW/4 of
NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

 

11

 

Tremont
B. SWD No. 1, SN187820; located 193.3’ FNL & 889.3’ FEL of SW/4
of NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle Parish,
La.

Tremont
B. No. 7, SN189696; located 1276’ FEL & 1022’ FNL of SE/4 of NE/4
of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 8, SN 191205; located 443’ FEL & 109’ FNL of SE/4 of NE/4
of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 9, SN 191207; located 202.1’ FNL & 355.4’ FWL of SE/4 of
NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 10, SN178262; located 656’ North & 471’ East of SW/C of
NE/4 of Section 25, Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 12, SN182291; located 382’ South and 100’ West of NE/C of Section 25,
Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 13, SN182292; located 321’ South & 356’ West of NE/C of Section 25,
Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 14, SN 182295; located 383’ South & 546’ West of NE/C of Section 25,
Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 15, SN182296; located 100’ South & 200’ East of NW/C of
NE/4 of NE/4, of Section 25, Township 10 North, Range 1, East, LaSalle
Parish, La

Tremont
B. No. 16, SN183884; located 378’ South & 749’ West of NE/C of Section 25,
Township 10 North, Range 1, East, LaSalle Parish, La.

Tremont
B. No. 17, SN183885; located 210’ South & 863’ West of NE/C of Section 25,
Township 10 North, Range 1, East, LaSalle Parish, La.

 

35.           Oil, gas and mineral lease executed by
Roberta Stewart Taylor, in favor of Russell Flowers, dated October 7,
1991, recorded in Conveyance Book 190, Page 195, Registry #149263 records
of LaSalle Parish, Louisiana covering lands located in Lot 15 of the original
Town of Tullos, Section 26, Township 10 North, Range 1 East, LaSalle
Parish, Louisiana.

 

36.          Oil, gas and mineral lease executed by
Southern Heritage Bank, in favor of Marvin Douglas Murphrey, dated October 18,
1993, recorded in Conveyance Book 206, Page 280, Registry #154486, records
of LaSalle Parish, Louisiana, covering Lots 2, 3 and 4 of Block 6 of the
Russell addition to Tullos, Louisiana, and a strip of land adjacent thereto
located in the SE/C of Section 26, Township 10 North, Range 1 East,
LaSalle Parish, Louisiana.

 

37.          Oil, gas and mineral lease executed by Anadarko
Land Corp., et al, in favor of Chadco, Inc., dated February 1, 2003,
recorded in Conveyance Book 278, Page 318, Registry #187644, records of
LaSalle Parish, Louisiana, covering the following described property, to-wit:

 

Township 10 North, Range 1 East, Section 26:

 

Lots
8, 10 and 12 of Block 17, Town of Tullos, LaSalle Parish, Louisiana. Lots 2, 6,
8 and 10 of Block 20, Town of Tullos, LaSalle Parish, Louisiana.

 

38.          Oil, gas and mineral lease executed by
Lane Capps, et al, in favor of Chadco, Inc., dated May 28, 2004,
recorded in Oil and Gas Lease Book 289, Page 496, Registry #193577,
records of LaSalle Parish, Louisiana, covering the following described
property, to-wit: One (1) acre, more or less, located in the original Town
of Tullos, situated in Section 25, Township 10 North, Range 1 East,
LaSalle Parish, Louisiana.

 

12

 

39.          Oil, gas and mineral lease executed by
Tremont Lumber Company, in favor of Arthur W. Sour, Jr., dated May 31,
1966, recorded in Oil and Gas Lease Book 28, Page 553, Registry #75957,
records of LaSalle Parish, Louisiana, covering lands in Section 26,
Township 10 North, Range 1 East, LaSalle Parish, Louisiana,

 

INSOFAR AND ONLY INSOFAR as the said lease covers the
following described property, to-wit:

 

Moore &
Munger Hydrocarbons, Inc., S.T. Holland #1 and S.T. Holland #2, Lot 10,
Block 6, Tremont Addition to Tullos, LA., as located in the SE/4 of the NW/4 of
Section 25, Town 10 North, Range 1 East, LaSalle Parish, Louisiana.

 

40.           Oil, gas and mineral lease executed by
Richard L. Walsh, et ux, in favor of Walter W. Heard, Jr., dated September 8,
1958, recorded in Oil and Gas Lease Book 20, Page 216, Registry #59119,
records of LaSalle Parish, Louisiana, covering three (3) lots located in
the original Town of Tullos, Louisiana, located in the SW/4 of the NE/4 of Section 26
Township 10 North, Range 1 East, LaSalle Parish, Louisiana.

 

41.           Oil, gas and mineral lease executed by
Johnny C. Maxwell, Jr., in favor of Len White, dated June 24, 1992,
recorded in Conveyance Book 194, Page 155, Registry 150724, records of
LaSalle Parish, Louisiana, covering Lots 1, 2 and 3 of the Urania Lumber
Company Addition to the Town of Tullos, LaSalle Parish, Louisiana

 

42.           Oil, gas and mineral lease executed by
Thelma W. Allbritton, et al, in favor of Chadco, Inc., dated June 23,
1993, recorded in Conveyance Book 204, Page 151, Registry #153940,
records of LaSalle Parish, Louisiana; and

 

Oil,
gas and mineral lease executed by Gerald J. Wright in favor of Chadco, Inc.,
dated June 29, 1993, recorded in Conveyance Book 204, Page 156,
Registry #153941, records of LaSalle Parish, Louisiana; and

 

Oil,
gas and mineral lease executed by Herman.Wright, in favor of Chadco. Inc.,
dated July 20, 1993, recorded in Conveyance Book 204, Page 160,
Registry 4153942, records of
LaSalle Parish, Louisiana;

 

Said
leases covering three (3) lots located in the Town of Tullos, in the SE/4
of the SE/4 of Section 26, Township 10 North, Range 1 East.

 

43.           Oil, gas and mineral lease executed by
Lacey Leon Tullos, in favor of Milton Galoob, dated September 10, 1979,
recorded in Oil and Gas Lease Book 44, Page 401, Registry #109233, records of LaSalle Parish, Louisiana,
covering lands in Section 26, Township 10 North, Range 1 East.

 

44.           Oil, gas and mineral lease executed by
Tensas Basin Levee District, in favor of Alfred S. Black, Trustee, dated June 14,
1955, recorded in Oil and Gas Lease Book 17, Page 574, Registry #53780,
records of LaSalle Parish, Louisiana, covering Lot 2 or Tract. NW1/4 of NE/4 of

 

13

 

Section 26, Township 10 North, Range 1 East,
containing 28.54 acres, more or less, situated in LaSalle Parish, Louisiana.

 

45.           Oil, gas and mineral lease executed by
Thomas Clarence Long, in favor of M.E. McGaugh, dated June 17, 1958,
recorded in Oil and Gas Lease Book 20, Page 23, Registry #58398, records
of LaSalle Parish, Louisiana, and Correction to Description, executed by Thomas
Clarence Long, in favor of M.E. McGaugh, dated March 11, 1959, recorded in
Oil and Gas Lease Book 20, Page 480; Registry #60095, covering lands in
the original Town of Tullos, located in Section 26, Township 10 North,
Range 1 East.

 

46.           Oil, gas and mineral lease executed by
Missouri Pacific Railroad Company, in favor of Warren B. Melton, dated December 20,
1960, recorded in Oil and Gas Lease Book 22, Page 195, Registry #63943,
records of LaSalle Parish, Louisiana, covering Lots 2, 4, 6, 10 and 12; Block
18, Lots 2, 6, 8 and 10; Block 20 and all of Fractional Block H, all in the
Townsite of Tullos, located in Section 26, Township 10 North, Range 1
East. LaSalle Parish, Louisiana.

 

47.           Oil, gas and mineral lease executed by
Alene Atnip Holmes, in favor of ZAD, Inc., dated May 22, 1998,
recorded in Conveyance Book 244, Page 99, Registry #169627, records of
LaSalle Parish, Louisiana, covering lands in Lots 11 and 12, Block 1, Holmes
and Adams addition to Town of Tullos and Lot A of original Town of Tullos as
per plat in Conveyance Book M, Page 166, LaSalle Parish, Louisiana, Section 25,
Township 10 North, Range 1 East.

 

48.           Oil, gas and mineral lease executed by
A.P. Kyle, et al, in favor of J.L. Ferguson, dated February 23, 1926,
recorded in Oil and Gas Lease Book 3, Page 175, Registry #3407, records of
LaSalle Parish, Louisiana, covering lands in Lot Eight (8) of Block one (1) of
Holmes and Adams Addition to the Town of Tullos in LaSalle Parish, Louisiana,
according to the new plat of said Town of Tullos, in Section 25, Township
10 North, Range 1 East.

 

49.           Oil, gas and mineral lease executed by
Georgia-Pacific Corporation, in favor of Ed Alexander, dated September 13,
1972, recorded in Oil and Gas Lease Book 36, Page 388, Registry #91252,
records of LaSalle Parish, Louisiana; and

 

Oil,
gas and mineral lease executed by Q.T. Hardtner, Jr., Agent, et al, in
favor of Ed Alexander, dated October 26, 1972, recorded in Oil and Gas
Lease Book 36, Page 392, Registry #91253, records of LaSalle Parish,
Louisiana,

 

Both
of the above leases covering lands all in Section 19 Township 10 North,
Range 2 East,

 

INSOFAR AND ONLY INSOFAR AS SAID LEASES COVER AND AFFECT ONE (1) ACRE
IN THE FORM OF A SQUARE AROUND THE FOLLOWING WELLS, TO-WIT:

 

LTF-Urania
No. 6, SN 193625; located 1606’ S & 495’ E from NW/C of NE/4 of Section 19,
T10N, R2E.

 

14

 

50.           Oil, gas and mineral lease executed by
Harry R. Brinkley, et al, in favor of C.A. McCartney, dated September 15,
1980, recorded in Oil and Gas Lease Book 96, Page 236, Registry #115261,
records of Winn Parish, Louisiana; and

 

Oil,
gas and mineral lease executed by Harry R. Brinkley, et al, in favor of C.A.
McCartney, dated April 20, 1981, recorded in Oil and Gas Lease Book 97, Page 20,
Registry #115676, records of Winn Parish, Louisiana; and
Oil, gas and mineral lease executed by Harry R. Brinkley, et al, in favor of
Chadco, Inc., dated January 15, 1990, recorded in Oil and Gas Lease
Book 127, Page 90, Registry #145329, records of Winn Parish, Louisiana;

 

All of
the above leases covering lands located in the NW/4 of NE/4 of Section 30.
Township 11 North, Range I West, Winn Parish, Louisiana.

 

INSOFAR AND ONLY INSOFAR AS said leases cover and affect one (1) acre
in the form of a square (with the well in the center thereof) around each of
the following 8 wells:

 

Brinkley
Heirs LTF No. 1, SN186324; located 100’ N & 100’ E from SW/C of
NW/4 of NW/4 of NE/4, Section 30, T11N, R1W.

Brinkley
Heirs LTF SWD No. 2, SN186325; located 300’ N & 100’ E from SW/C
of NW/4 of NW/4 of NE/4, Section 30, T11N RI W.

Brinkley
Heirs LTF No. 3, SN186326; located 500’ N & 100’ E from SW/C of
NW/4 of NW/4 of NE/4, Section 30, T11N, RI W.

Brinkley
Heirs LTF No. 4, SN 186327; located 375’ N & 375’ W from SE/C of
NW/4 of NW/4 of NE/4, Section 30, T1 IN, RI W.

Brinkley
Heirs LTF No. 5, SN186328; located 100’ N & 150’ W from SE/C of
NW/4 of NW/4 of NE/4, Section 30, T11N, R1W.

Brinkley
Heirs LTF No. 6, SN186329; located 300’ N & 150’ W from SE/C of
NW/4 of NW/4 of NE/4, Section 30, T11N, R1W.

Brinkley
Heirs LTF No. 7, SN187021; located 500’ N & 488’ E from SW/C of
NW/4 of NW/4 of NE/4, Section 30, TI 1N, R1W.

Brinkley
Heirs LTF No. 8, SN187179; located 560’ N & 294’ E from SW/C of
NW/4 of NW/4 of NE/4, Section 30, T11N, RI W.

 

51.           Oil, gas and mineral lease executed by Mrs. Bonnie
Bartley, et ux, in favor of W.O. Weaver, dated November 12, 1959, recorded
in Oil and Gas Lease Book 18, Page 67, Registry #6731, records of Winn
Parish, Louisiana, covering lands located in the SE/4 of SE/4 of Section 20,
Township 11 North, Range 1 West, Winn Parish, Louisiana.

 

52.           Oil, gas and mineral lease executed by
Judge Jones, in favor of W.O. Weaver, dated June 30, 1959, recorded in Oil
and Gas Lease Book 17, Page 299, Registry #6582, records of Winn Parish,
Louisiana, covering the NE/4 of SE/4 of Section 20, Township 11 North,
Range 1 West, Winn Parish, Louisiana.

 

53.           Oil, gas and mineral lease executed by
Jewel Taylor, et al, in favor of Frontier, Inc., dated September 20,
1990, recorded in Oil and Gas Lease Book 128, Page 498, Registry #147837,
records of Winn Parish, Louisiana, covering all that portion of the N 1/3 of
NE/4 of SE/4 of Section 20, T1N, R1W, Winn Parish, Louisiana.

 

15

 

Lease acquired by NGS SUB Corporation

 

54.           Oil and Gas Lease dated December 2,
2005 from the LP Mineral Owners to NGS SSUB. Corporation, as recorded in
Conveyance Book 300, Page 708 of the records of LaSalle Parish, Louisiana.

 

55.           Oil and Gas Lease dated December 5,
2005 from William D. Blake, as Agent and Attorney-In-Fact for Henry E. Blake,
et al, to NGS Sub Corporation, as recorded in Conveyance Book 300, Page 713
of the records of LaSalle Parish, Louisiana.

 

56.           Oil, Gas and Mineral Lease dated December 1, 2005
from Lane Capps and Sherry Capps Cannon to NGS SUB. Corp., as recorded in
Conveyance Book 300, Page 39 of the records of LaSalle Parish, Louisiana.

 

16

 

Exhibit “A-2”

 

Attached to and made a part of that certain

Asset Purchase and Sale Agreement dated February 15, 2008

by and between NGS Sub. Corp., as Seller, and

MWM Energy, LLC, as Buyer

 

WELLS

 

	
   

  	
   

  	
  Serial

  	
   

  	
  LUW

  	
   

  	
   

  	
   

  	
  Well

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  No.

  	
   

  	
  Code

  	
   

  	
  Well Name

  	
   

  	
  No.

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  	
  Comments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Ag Oil - Capps Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  173393

  	
   

  	
  037481

  	
   

  	
  Ag Oil -
  Capps

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83333

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  173394

  	
   

  	
  037481

  	
   

  	
  Ag Oil -
  Capps

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.83333

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Ag-Oil MOPAC Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  166837

  	
   

  	
  037288

  	
   

  	
  Ag-Oil MOPAC

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  misnamed in Sonris as Bice-Mopac #1

  	
   

  
	
  4

  	
   

  	
  171065

  	
   

  	
  037288

  	
   

  	
  Ag-Oil MOPAC

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  171066

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  171067

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  171069

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  171070

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  171068

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC
  SWD

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Atkins B Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  159038

  	
   

  	
  037633

  	
   

  	
  Atkins B

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.81250

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  160179

  	
   

  	
  037633

  	
   

  	
  Atkins B

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.81250

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B Bartley Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  77088

  	
   

  	
  010224

  	
   

  	
  B Bartley

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  77089

  	
   

  	
  010224

  	
   

  	
  B Bartley

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  83034

  	
   

  	
  010224

  	
   

  	
  B Bartley

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  89960

  	
   

  	
  010224

  	
   

  	
  B Bartley

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  

 

1

 

	
  16

  	
   

  	
  125107

  	
   

  	
  010224

  	
   

  	
  B Bartley

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bradford Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  175684

  	
   

  	
  037857

  	
   

  	
  Bradford

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  182138

  	
   

  	
  037857

  	
   

  	
  Bradford

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  199462

  	
   

  	
  037857

  	
   

  	
  Bradford

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  990616

  	
   

  	
  037857

  	
   

  	
  Bradford SWD

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Brinkley Heirs LTF Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  186324

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  186326

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  186327

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  186328

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  186329

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  187021

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  187179

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  186325

  	
   

  	
   

  	
   

  	
  Brinkley
  Heirs LTF SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  173495

  	
   

  	
  037681

  	
   

  	
  Brinkley
  Heirs N

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Flowers, Russell Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  197897

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  197898

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  199021

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  199022

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
  Sonris records not updated from prior transfers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gates Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  168176

  	
   

  	
  036775

  	
   

  	
  Gates

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  35

  	
   

  	
  168341

  	
   

  	
   

  	
   

  	
  Gates SWD

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hardtner (Atkins) A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  990145

  	
   

  	
  007087

  	
   

  	
  Hardtner A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  37

  	
   

  	
  990146

  	
   

  	
  007087

  	
   

  	
  Hardtner A

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  38

  	
   

  	
  149552

  	
   

  	
  007087

  	
   

  	
  Hardtner A

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

2

 

	
  39

  	
   

  	
  153621

  	
   

  	
  007087

  	
   

  	
  Hardtner A

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  971237

  	
   

  	
  007087

  	
   

  	
  Hardtner A
  SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hartdner (Atkins) C Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  19746

  	
   

  	
  007089

  	
   

  	
  Hardtner C

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  107472

  	
   

  	
  007089

  	
   

  	
  Hardtner C

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  153622

  	
   

  	
  007089

  	
   

  	
  Hardtner C

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hardtner (Chadco) A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  186438

  	
   

  	
  040289

  	
   

  	
  Hardtner A

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
  Sonris records not updated for transfer from Atkins/Phoenix

  	
   

  
	
  45

  	
   

  	
  186514

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  186515

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  186516

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  186517

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  187871

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  187872

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  187873

  	
   

  	
  040289

  	
   

  	
  Hardtner A

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
  Sonris records not updated for transfer from Atkins/Phoenix

  	
   

  
	
  52

  	
   

  	
  187875

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  187876

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  187877

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  18

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  188134

  	
   

  	
  040289

  	
   

  	
  Hardtner A

  	
   

  	
  20

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
  Sonris records not updated for transfer from Atkins/Phoenix

  	
   

  
	
  56

  	
   

  	
  188202

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  28

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  187940

  	
   

  	
  7087

  	
   

  	
  Hardtner A

  	
   

  	
  29

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  187874

  	
   

  	
  7087

  	
   

  	
  Hardtner A
  15 SWD

  	
   

  	
  15

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Holland, ST Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  186412

  	
   

  	
  040355

  	
   

  	
  Holland, ST

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  187825

  	
   

  	
  040355

  	
   

  	
  Holland, ST

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  61

  	
   

  	
  971390

  	
   

  	
   

  	
   

  	
  SSM SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Holmes, WL Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  62

  	
   

  	
  154696

  	
   

  	
  034641

  	
   

  	
  Holmes, WL

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  63

  	
   

  	
  154738

  	
   

  	
  034641

  	
   

  	
  Holmes, WL

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  64

  	
   

  	
  154737

  	
   

  	
  034641

  	
   

  	
  Holmes, WL

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J Jones Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  65

  	
   

  	
  77712

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  66

  	
   

  	
  77885

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  67

  	
   

  	
  80893

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  68

  	
   

  	
  80331

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  69

  	
   

  	
  82292

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  70

  	
   

  	
  82778

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  71

  	
   

  	
  83229

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  72

  	
   

  	
  204917

  	
   

  	
  010223

  	
   

  	
  J Jones

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  73

  	
   

  	
  972679

  	
   

  	
  010223

  	
   

  	
  J Jones SWD

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J Jones A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74

  	
   

  	
  212912

  	
   

  	
  046565

  	
   

  	
  J Jones A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  75

  	
   

  	
  212913

  	
   

  	
  046565

  	
   

  	
  J Jones A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  76

  	
   

  	
  83979

  	
   

  	
  046565

  	
   

  	
  J Jones A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kyle-Davis Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  77

  	
   

  	
  9400

  	
   

  	
  007688

  	
   

  	
  Kyle-Davis

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  La Pacific O Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  78

  	
   

  	
  154412

  	
   

  	
  039847

  	
   

  	
  LA PACIFIC O

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  79

  	
   

  	
  156342

  	
   

  	
  039847

  	
   

  	
  LA PACIFIC O

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  80

  	
   

  	
  155943

  	
   

  	
  039847

  	
   

  	
  LA PACIFIC O

  	
   

  	
  2D

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  81

  	
   

  	
  156839

  	
   

  	
  039847

  	
   

  	
  LA PACIFIC O
  SWD

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  La Pacific Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  82

  	
   

  	
  150510

  	
   

  	
  034425

  	
   

  	
  La Pacific

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  83

  	
   

  	
  150771

  	
   

  	
  034425

  	
   

  	
  La Pacific

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  84

  	
   

  	
  154606

  	
   

  	
  034425

  	
   

  	
  La Pacific

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  154605

  	
   

  	
  034425

  	
   

  	
  La Pacific
  SWD

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

	
  86

  	
   

  	
  009597

  	
   

  	
  009751

  	
   

  	
  Urania Voltz

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  87

  	
   

  	
  059103

  	
   

  	
  009751

  	
   

  	
  Urania Voltz

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  88

  	
   

  	
  148110

  	
   

  	
  009751

  	
   

  	
  Urania Voltz

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  89

  	
   

  	
  175370

  	
   

  	
  009751

  	
   

  	
  Urania Voltz

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  90

  	
   

  	
  175371

  	
   

  	
  009751

  	
   

  	
  Urania Voltz

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  91

  	
   

  	
  096703

  	
   

  	
  009751

  	
   

  	
  Urania Voltz

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  La Salle St Bank Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  92

  	
   

  	
  190522

  	
   

  	
  040711

  	
   

  	
  LASALLE ST
  BANK

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  93

  	
   

  	
  190558

  	
   

  	
  040711

  	
   

  	
  LASALLE ST
  BANK

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Loe, Glen D Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  94

  	
   

  	
  196405

  	
   

  	
  041637

  	
   

  	
  Loe, Glen D

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  95

  	
   

  	
  196406

  	
   

  	
  041637

  	
   

  	
  Loe, Glen D

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  96

  	
   

  	
  197043

  	
   

  	
  041637

  	
   

  	
  Loe, Glen D

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  97

  	
   

  	
  197330

  	
   

  	
  041637

  	
   

  	
  Loe, Glen D

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long, CO Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  98

  	
   

  	
  146924

  	
   

  	
  033544

  	
   

  	
  Long , CO

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  99

  	
   

  	
  153135

  	
   

  	
  033544

  	
   

  	
  Long , CO

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  153170

  	
   

  	
  033544

  	
   

  	
  Long , CO

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  101

  	
   

  	
  153171

  	
   

  	
  033544

  	
   

  	
  Long , CO

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  102

  	
   

  	
  153346

  	
   

  	
  033544

  	
   

  	
  Long , CO

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long, Mary Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  103

  	
   

  	
  146886

  	
   

  	
  033540

  	
   

  	
  Long, Mary

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  104

  	
   

  	
  153134

  	
   

  	
  033540

  	
   

  	
  Long, Mary

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long, TC Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  105

  	
   

  	
  71148

  	
   

  	
  007906

  	
   

  	
  Long, TC

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  106

  	
   

  	
  165436

  	
   

  	
  No LUW

  	
   

  	
  Long, TC

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite.

  dnr.state.la.us

  /sundown/cart

  _prod/cart_co

  n_wellinfo2?

  p_wsn=17248

  0%20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5

 

	
  107

  	
   

  	
  163343

  	
   

  	
   

  	
   

  	
  Maxwell SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Meredith C, SK Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  108

  	
   

  	
  183009

  	
   

  	
  039273

  	
   

  	
  Meredith C,
  SK

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  109

  	
   

  	
  183012

  	
   

  	
  039273

  	
   

  	
  Meredith C,
  SK

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  110

  	
   

  	
  183013

  	
   

  	
  039273

  	
   

  	
  Meredith C,
  SK

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  111

  	
   

  	
  154273

  	
   

  	
  034685

  	
   

  	
  Meredith,
  Cecil

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MILES HEIRS Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  112

  	
   

  	
  191214

  	
   

  	
  040915

  	
   

  	
  MILES HEIRS

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  113

  	
   

  	
  191251

  	
   

  	
  040915

  	
   

  	
  MILES HEIRS

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MILES - AG OIL EJ Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  114

  	
   

  	
  172482

  	
   

  	
  037360

  	
   

  	
  MILES-AG
  OIL-EJ

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  115

  	
   

  	
  172483

  	
   

  	
  037360

  	
   

  	
  MILES-AG
  OIL-EJ

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  116

  	
   

  	
  172480

  	
   

  	
  037360

  	
   

  	
  MILES-AG
  OILEJ SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite.

  dnr.state.la.us

  /sundown/car

  t_prod/cart_c

  on_wellinfo2

  ?p_wsn=172

  480%20

  	
   

  	
   

  	
   

  	
  Miles Essex Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  117

  	
   

  	
  190736

  	
   

  	
  040778

  	
   

  	
  MILES-ESSEX

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  118

  	
   

  	
  190783

  	
   

  	
  040778

  	
   

  	
  MILES-ESSEX

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MDP Maxwell Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  119

  	
   

  	
  179671

  	
   

  	
  038553

  	
   

  	
  MDP MAXWELL

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  120

  	
   

  	
  179672

  	
   

  	
  038553

  	
   

  	
  MDP MAXWELL

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MOP Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  121

  	
   

  	
  91994

  	
   

  	
  016494

  	
   

  	
  Missouri
  Pacific RR

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  122

  	
   

  	
  83963

  	
   

  	
  012886

  	
   

  	
  MOP #1 SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

6

 

	
  123

  	
   

  	
  183703

  	
   

  	
  039526

  	
   

  	
  MOPAC SSS

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Morrison, James Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  124

  	
   

  	
  176677

  	
   

  	
  038190

  	
   

  	
  Morrison, James

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Maxwell, JC M80 Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  125

  	
   

  	
  170664

  	
   

  	
  037215

  	
   

  	
  Maxwell, JC M80

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  126

  	
   

  	
  171769

  	
   

  	
  037215

  	
   

  	
  Maxwell, JC M80

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  127

  	
   

  	
  171770

  	
   

  	
  037215

  	
   

  	
  Maxwell, JC M80

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pendarvis Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  128

  	
   

  	
  193250

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  129

  	
   

  	
  193251

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  130

  	
   

  	
  193252

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  131

  	
   

  	
  193253

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  132

  	
   

  	
  193255

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  133

  	
   

  	
  194757

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  134

  	
   

  	
  194759

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  135

  	
   

  	
  194760

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  10

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  136

  	
   

  	
  194761

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  137

  	
   

  	
  194762

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  138

  	
   

  	
  194763

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  139

  	
   

  	
  194764

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  140

  	
   

  	
  10281

  	
   

  	
  008680

  	
   

  	
  PENDARVIS A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  141

  	
   

  	
  10331

  	
   

  	
  008680

  	
   

  	
  PENDARVIS A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  142

  	
   

  	
  971428

  	
   

  	
   

  	
   

  	
  PENDARVIS A SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pendarvis LaPetro Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  143

  	
   

  	
  193828

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  144

  	
   

  	
  193829

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  145

  	
   

  	
  193830

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  146

  	
   

  	
  193831

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  147

  	
   

  	
  193832

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  148

  	
   

  	
  193833

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  149

  	
   

  	
  193834

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  150

  	
   

  	
  193835

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  

 

7

 

	
  151

  	
   

  	
  193837

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  10

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  152

  	
   

  	
  193838

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  153

  	
   

  	
  194758

  	
   

  	
  041572

  	
   

  	
  Pendarvis - La Petro

  	
   

  	
  12
  SWD

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite.

  dnr.state.la.u

  s/sundown/ca

  rt_prod/cart_

  con_wellinfo

  2?p_wsn=97

  1428%20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pringle Heirs Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  154

  	
   

  	
  158868

  	
   

  	
  035563

  	
   

  	
  Pringle Heirs

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.81250

  	
   

  	
   

  	
   

  
	
  155

  	
   

  	
  162747

  	
   

  	
  035563

  	
   

  	
  Pringle Heirs SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  156

  	
   

  	
  19432

  	
   

  	
  035563

  	
   

  	
  Pringle SWD

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PV 80 MILES TB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  157

  	
   

  	
  172920

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  158

  	
   

  	
  172922

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  159

  	
   

  	
  172923

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  160

  	
   

  	
  172924

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  161

  	
   

  	
  172925

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  162

  	
   

  	
  172926

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  163

  	
   

  	
  174930

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  164

  	
   

  	
  182489

  	
   

  	
  039369

  	
   

  	
  JRB MAXWELL

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PV 80 - MOPAC Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  165

  	
   

  	
  172927

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  166

  	
   

  	
  172928

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  167

  	
   

  	
  172929

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  168

  	
   

  	
  172930

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  169

  	
   

  	
  174030

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  170

  	
   

  	
  174029

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tensas BLD Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  171

  	
   

  	
  134605

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  172

  	
   

  	
  178732

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

8

 

	
  173

  	
   

  	
  183525

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  174

  	
   

  	
  178731

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  175

  	
   

  	
  990623

  	
   

  	
  031228

  	
   

  	
  Tensas BLD SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tensas BLD A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  176

  	
   

  	
  59321

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  177

  	
   

  	
  64687

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  178

  	
   

  	
  153875

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  179

  	
   

  	
  153876

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  180

  	
   

  	
  182387

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tremont B Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  181

  	
   

  	
  187623

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  182

  	
   

  	
  187822

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  183

  	
   

  	
  187824

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  184

  	
   

  	
  188181

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  185

  	
   

  	
  189535

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  186

  	
   

  	
  189696

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  187

  	
   

  	
  191207

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  188

  	
   

  	
  178262

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  10

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  189

  	
   

  	
  182059

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  190

  	
   

  	
  182291

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  191

  	
   

  	
  182292

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  192

  	
   

  	
  182295

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  193

  	
   

  	
  182296

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  15

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  194

  	
   

  	
  183884

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  195

  	
   

  	
  187820

  	
   

  	
  043930

  	
   

  	
  Tremont B SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  196

  	
   

  	
  191205

  	
   

  	
   

  	
   

  	
  Tremont B

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
  P&A
  but remains on SONRIS

  	
   

  
	
  197

  	
   

  	
  183885

  	
   

  	
   

  	
   

  	
  Tremont B

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
  P&A
  but remains on SONRIS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tremont SSS Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  198

  	
   

  	
  182799

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  199

  	
   

  	
  182800

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

9

 

	
  200

  	
   

  	
  182801

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  201

  	
   

  	
  182802

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  202

  	
   

  	
  182803

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  203

  	
   

  	
  182804

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  204

  	
   

  	
  182805

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  205

  	
   

  	
  184928

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  206

  	
   

  	
  990137

  	
   

  	
  009660

  	
   

  	
  Tullos, Frank

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no
  lease or production

  	
   

  
	
  207

  	
   

  	
  203730

  	
   

  	
  009660

  	
   

  	
  Tullos, Frank

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no
  lease or production

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  208

  	
   

  	
  214541

  	
   

  	
  047519

  	
   

  	
  URANIA

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  209

  	
   

  	
  214542

  	
   

  	
  047519

  	
   

  	
  URANIA

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  210

  	
   

  	
  127062

  	
   

  	
  040908

  	
   

  	
  URANIA LBR CO A

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  211

  	
   

  	
  127414

  	
   

  	
  040908

  	
   

  	
  URANIA LBR CO A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  Sonris
  records not updated for transfer from Atkins

  	
   

  
	
  212

  	
   

  	
  127415

  	
   

  	
  040908

  	
   

  	
  URANIA LBR CO A

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  213

  	
   

  	
  126926

  	
   

  	
  040908

  	
   

  	
  URANIA LBR CO A

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  214

  	
   

  	
  127417

  	
   

  	
  040908

  	
   

  	
  URANIA LBR CO A

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite.

  dnr.state.la.u

  s/sundown/ca

  rt_prod/cart_

  con_wellinfo

  2?p_wsn=97

  1269%20

  	
   

  	
   

  	
   

  	
  Urania B Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  215

  	
   

  	
  127264

  	
   

  	
  040909

  	
   

  	
  URANIA LBR CO B

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  216

  	
   

  	
  127418

  	
   

  	
  040909

  	
   

  	
  URANIA LBR CO B

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  Sonris records not
  updated for transfer from Atkins

  	
   

  
	
  217

  	
   

  	
  214543

  	
   

  	
  047519

  	
   

  	
  URANIA

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

10

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania C TB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  218

  	
   

  	
  127389

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  219

  	
   

  	
  128428

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  220

  	
   

  	
  128427

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  221

  	
   

  	
  121694

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  222

  	
   

  	
  125446

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  223

  	
   

  	
  134419

  	
   

  	
  029323

  	
   

  	
  HARDTNER-EDENBORN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  224

  	
   

  	
  128374

  	
   

  	
  040909

  	
   

  	
  URANIA LBR
  CO B

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  225

  	
   

  	
  128336

  	
   

  	
  040909

  	
   

  	
  URANIA LBR
  CO B SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  226

  	
   

  	
  971269

  	
   

  	
   

  	
   

  	
  URANIA LBR
  CO E SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania
  LTF Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  227

  	
   

  	
  187028

  	
   

  	
  040144

  	
   

  	
  Urania, LTF

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  228

  	
   

  	
  193625

  	
   

  	
  040144

  	
   

  	
  Urania, LTF

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite.

  dnr.state.la.u

  s/sundown/ca

  rt_prod/cart_

  con_wellinfo

  2?p_wsn=97

  1269%20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania
  Shemen  TB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  229

  	
   

  	
  191712

  	
   

  	
  041167

  	
   

  	
  URANIA-SHEMEN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  230

  	
   

  	
  191713

  	
   

  	
  041167

  	
   

  	
  URANIA-SHEMEN

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  231

  	
   

  	
  191714

  	
   

  	
  041167

  	
   

  	
  URANIA-SHEMEN

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  232

  	
   

  	
  115191

  	
   

  	
  040839

  	
   

  	
  URANIA LBRCO
  D

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  233

  	
   

  	
  115192

  	
   

  	
  040839

  	
   

  	
  URANIA LBRCO
  D

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  234

  	
   

  	
  115468

  	
   

  	
  040839

  	
   

  	
  URANIA LBRCO
  D

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  235

  	
   

  	
  191709

  	
   

  	
  041134

  	
   

  	
  URANIA
  A-SHEMEN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  236

  	
   

  	
  191784

  	
   

  	
  041134

  	
   

  	
  URANIA
  A-SHEMEN

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  237

  	
   

  	
  191783

  	
   

  	
  041135

  	
   

  	
  URANIA
  C-SHEMEN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  238

  	
   

  	
  191779

  	
   

  	
  041135

  	
   

  	
  URANIA
  C-SHEMEN

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  239

  	
   

  	
  114278

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  240

  	
   

  	
  114442

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  241

  	
   

  	
  114534

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  242

  	
   

  	
  115773

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

11

 

	
  243

  	
   

  	
  116282

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  244

  	
   

  	
  115986

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  245

  	
   

  	
  971328

  	
   

  	
   

  	
   

  	
  URANIA LBR
  CO SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  246

  	
   

  	
  191788

  	
   

  	
  041134

  	
   

  	
  URANIA
  A-SHEMEN SWD

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania
  Stenco Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  247

  	
   

  	
  126642

  	
   

  	
  026661

  	
   

  	
  URANIA-STENCO

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  248

  	
   

  	
  33328

  	
   

  	
  026661

  	
   

  	
  URANIA-STENCO

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Walsh
  Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  249

  	
   

  	
  72539

  	
   

  	
  009846

  	
   

  	
  Walsh

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  White ,
  Mike Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  250

  	
   

  	
  189448

  	
   

  	
  040597

  	
   

  	
  White, Mike

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Wright ,
  WE Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  251

  	
   

  	
  175340

  	
   

  	
  037484

  	
   

  	
  Wright, WE

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  252

  	
   

  	
  173245

  	
   

  	
  037484

  	
   

  	
  Wright, WE

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  253

  	
   

  	
  174438

  	
   

  	
  037484

  	
   

  	
  Wright, WE

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Zimmerman
  Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  254

  	
   

  	
  990136

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  255

  	
   

  	
  43888

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  256

  	
   

  	
  53293

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  257

  	
   

  	
  58021

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  258

  	
   

  	
  62964

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  18

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  259

  	
   

  	
  66344

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  19

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  260

  	
   

  	
  68370

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  20

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  261

  	
   

  	
  77368

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  22

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  262

  	
   

  	
  86436

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  23

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  263

  	
   

  	
  40901

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  A-4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

12

 

	
   

  	
   

  	
  http://sonlite.

  dnr.state.la.u

  s/sundown/ca

  rt_prod/cart_

  con_wellinfo

  2?p_wsn=99

  0136%20

  	
   

  	
   

  	
   

  	
  Zimmerman , Lex Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  264

  	
   

  	
  187003

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  265

  	
   

  	
  187004

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  266

  	
   

  	
  187007

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  267

  	
   

  	
  187008

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  268

  	
   

  	
  187010

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  269

  	
   

  	
  187011

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  270

  	
   

  	
  187012

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  271

  	
   

  	
  187236

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  272

  	
   

  	
  187237

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  15

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  273

  	
   

  	
  187238

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  274

  	
   

  	
  187239

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  275

  	
   

  	
  187240

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN, Lex

  	
   

  	
  18

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  276

  	
   

  	
  236125

  	
   

  	
  40143

  	
   

  	
  Zimmerman,
  Lex

  	
   

  	
  19

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  277

  	
   

  	
  187009

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex  SWD

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  278

  	
   

  	
  973077

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex SWD

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

13

 

Exhibit “A-3”

 

Attached to and made a part of that certain

Asset Purchase and Sale Agreement dated February 15, 2008

by and between NGS Sub. Corp., as Seller, and

MWM Energy, LLC, as Buyer.

 

CONTRACTS AND OTHER AGREEMENTS

 

1.               Pumping Service Contract by and between NGS
Sub Corp. and Carl Bruce

 

2.               Pumping Service Contract by and between NGS
Sub Corp. and Sumrall Pumper Service

 

3.               Pumping Service Contract by and between NGS
Sub Corp. and James W. Sumrall II

 

4.               Pumping Service Contract by and between NGS Sub
Corp. and Lance Coleman

 

5.               Salt Water Disposal Contract by and between
NGS Sub Corp. and Page Development, LLC for use of the Hardtner A SWD #2

 

6.               Verbal agreement for salt water disposal by
Donnie Morrow into Bradford SWD

 

7.               Verbal agreement for salt water disposal by
Quentin Sagdahl into Bradford SWD

 

8.               Verbal agreement for salt water disposal by
AJ  & J Thornton into Urania SWD

 

1

 

Exhibit “A-4”

 

Attached to and made a part of that certain

Asset Purchase and Sale Agreement dated February 15, 2008

by and between NGS Sub. Corp., as Seller, and

MWM Energy, LLC, as Buyer

 

Right-of-Ways,
Easements and Surface Leases

 

NONE

 

1

 

Exhibit “A-5”

 

Attached to and made a part of that certain

Asset Purchase and Sale Agreement dated February 15, 2008

by and between NGS Sub. Corp., as Seller, and

MWM Energy, LLC, as Buyer

 

SURFACE ESTATES

 

FEE LAND

 

TRACT I:

 

Lots
1, 3, 5, Block 16, Lots 1, 3, 9, 11, Block 21, and Lots 1, 3, 5, 7, 9, 11,
Block 23 of the Original Town of Tullos, Section 26, Township 10 North,
Range 1 East, LaSalle Parish, Louisiana

 

TRACT II:

 

A
certain parcel of land thirty (30) feet square, situated in the Southwest
corner of property described hereinbelow, with well described below situated
thereon.

 

Monroe
Well Service/SSM – SWD #1, serial #971390, Section 25, Township 10 North,
Range 2 East, Tullos-Urania Field, LaSalle Parish, Louisiana.

 

Tracts
I and II, being the same land described in that certain Act of Sale and
Assignment dated September 2, 2004 from Atkins Production, Inc. to
NGS Sub. Corp., as recorded in Book 291, Page 179 of the Conveyance Books
of LaSalle Parish, Louisiana.

 

1

 

Exhibit “B”

 

Attached to and made a part of that certain

Asset Purchase and Sale Agreement dated February 15, 2008

by and between NGS Sub. Corp., as Seller, and

MWM Energy, LLC, as Buyer

 

ESCROW ACCOUNT AGREEMENT

 

This Escrow Agreement (“Escrow Agreement”) is entered into as of the 15th
day of  February, 2008 by and among NGS
Sub. Corp. (‘Seller”), MWM Energy, LLC (“Buyer”), and together with Seller,
sometimes referred to individually as Party and collectively as the “Parties”)
and Wells Fargo Bank, N.A. (“Escrow Agent”).

 

The Parties hereby appoint the Escrow Agent as their escrow agent for
the purposes set forth herein, and the Escrow Agent hereby accepts such
appointment under the terms and conditions set forth herein.

 

Now, therefore, the Buyer, Seller and Escrow Agent agree as follows:

 

1.             Concurrent with the execution hereof by all
Parties and Escrow Agent, Buyer shall deposit into escrow with the Escrow Agent
by wire transfer of immediately available funds the sum of One Hundred Thousand
And No/100 Dollars ($100,000.00) (the “Escrow Deposit”) to be held by Escrow
Agent in an interest bearing Money Market Deposit Account as set forth in Schedule
1  at Wells Fargo Bank, N.A. (“Escrow
Account”) representing an initial deposit by the Buyer for the purchase of oil
and gas producing properties from the Seller.  
The Escrow Agent shall hold the Escrow Deposit, together with all
interest accrued thereon (collectively, the “Escrow Funds”) as directed herein.

 

2.             The Escrow Agent shall, promptly upon receipt
of the Escrow Deposit deliver a facsimile acknowledgement substantially in the
form set forth in Schedule 2, to the Seller and Buyer, acknowledging
receipt of each such deposit.

 

3.             The Escrow Agent is hereby authorized and
directed to hold the Escrow Funds in the Escrow Account (“Escrow Account”) in
accordance with the terms and provisions hereof, and to disburse the Escrow
Fund as may be authorized and directed, and only as authorized and directed, by
an Approval for Disbursement signed by each of Seller and Buyer substantially
in the form attached hereto as Exhibit “A” and made a part hereof (“Disbursement
Letter”).  The Escrow Agent shall
disburse the Escrow Fund within one (1) Business Day following receipt of
the Disbursement Letter.  “Business Day”
shall mean any day other than a Saturday, Sunday or any other day on which the
Escrow Agent located at the notice address set forth in Paragraph 9
below is authorized or required by law or executive order to remain closed.

 

4.             Notwithstanding anything to the contrary, if
Seller and Buyer cannot agree on how the Escrow Fund should be disbursed in
accordance with this Escrow Agreement and the PSA, then upon a Final
Determination (as defined below) with respect to any such disbursement, either
Seller or Buyer may submit an Approval for Disbursement signed by such Party
substantially in the form attached hereto as Exhibit “B” and made a
part hereof (“Final Determination Disbursement Request”).  The Escrow Agent shall disburse the Escrow
Funds within one (1) Business Day following receipt of the Final
Determination Disbursement Request.  A “Final
Determination” shall mean a final non-appealable judgment of a court of
competent jurisdiction pursuant to the terms of the PSA.  The Escrow Agent shall act on such Final
Determination Disbursement Request without further question or the Escrow Agent
may file an interpleader action in any court of competent jurisdiction, and
upon the filing thereof, the Escrow Agent shall be relieved of all liability as
to the Escrow Funds and shall be entitled to recover attorneys’ fees, expenses
and other costs incurred in commencing and maintaining any such interpleader
action.

 

Escrow Agreement

(7/19/07 – Vers. 1)

 

 

5.             Each of the Parties and the Escrow Agent
agree that the following provisions shall control with respect to the rights,
duties, liabilities, privileges and immunities of the Escrow Agent:

 

(a)           The Escrow Agent is not a party to and is not bound by, or charged with
notice of (except as provided in Paragraph (11)), any agreement out
of which the escrow arrangement contemplated hereby may arise.  The Escrow Agent is acting hereunder as a
depository only, and is not responsible or liable in any manner whatsoever for
the sufficiency, correctness, genuineness or validity of any instrument or
other written instructions, including the Disbursement Letter or the Final
Determination Disbursement Request, given to the Escrow Agent pursuant to this
Escrow Agreement.

 

(b)           The Escrow Funds held in the Escrow Account shall not be subject to any
right of set-off or claim which the Escrow Agent may have from time to time
against either Seller or Buyer.

 

(c)           In carrying out and performing its duties under this Escrow Agreement,
the Escrow Agent shall not incur any liability to anyone for any damages,
losses, or expenses with respect to the establishment and administration of the
Escrow Account hereunder, except for its willful misconduct or gross
negligence, and accordingly the Escrow Agent shall not incur any liability with
respect to:

 

(1)           Any
action taken or omitted to be taken in good faith upon the advice of the Escrow
Agent’s counsel given with respect to any questions relating to the duties and
responsibilities of the Escrow Agent under this Escrow Agreement. The Escrow
Agent shall be under no duty to inquire into or investigate the validity,
accuracy or content of any such document, notice, instruction or request.  The Escrow Agent shall have no duty to
solicit any payments which may be due it or the Escrow Funds.  The Escrow Agent shall not be liable for any
action taken or omitted by it in good faith except to the extent that a final
adjudication pursuant to Paragraph 11 below determines that the Escrow
Agent’s gross negligence or willful misconduct was the primary cause of any
loss to either of the Parties.  In the
event the Escrow Agent shall be uncertain as to its duties or rights hereunder,
it shall be entitled to refrain from taking any action and its sole obligation
shall be to keep safely all property held in escrow until it shall be directed
otherwise either in writing by each of the Buyer and Seller or in a Final
Determination.  Anything in this Escrow
Agreement to the contrary notwithstanding, in no event shall the Escrow Agent
be liable for special, indirect or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Escrow
Agent has been advised of the likelihood of such loss or damage and regardless
of the form of action. No party to this Escrow Agreement shall be liable to any
other party for losses due to, or if it is unable to perform its obligations
under the terms of this Escrow Agreement because of, acts of God, fire, war,
terrorism, floods, strikes, electrical outages, equipment or transmission
failure, or other causes reasonably beyond its control.

 

(2)           Any action taken or omitted to be taken in reliance upon the
Disbursement Letter, the Final Determination Disbursement Request, or any other
instrument or written instructions signed by Seller and Buyer.

 

(3)           Any instructions received by the Escrow Agent pursuant to the
Disbursement Letter, the Final Determination Disbursement Request or the
accuracy, validity, or propriety of any such instructions or any statement
therein.  The Escrow Agent shall be under
no duty or obligation to make any inquiry about or verify the authenticity of
any signature on any letter or document received pursuant to this Escrow
Agreement, including the Disbursement Letter, the Final Determination
Disbursement Request, or the authority of the person purporting to have signed
said document.

 

Escrow Agreement

(2/18/08 – Vers. 1)

 

3

 

(d)           Seller and Buyer jointly and severally agree to indemnify, defend and
hold harmless the Escrow Agent and its directors, officers, agents and
employees (the “indemnitees”) against any and all losses, claims, damages,
liabilities and expenses, including reasonable costs of investigation and fees
and payments to outside counsel, which may be imposed upon or incurred by the
Escrow Agent in connection with the acceptance of its appointment hereunder,
the establishment and administration of the Escrow Account hereunder, or the
performance of any of its duties hereunder, except as may be caused by the
gross negligence or willful misconduct by or on the part of the Escrow Agent or
any indemnitee.  Promptly after receipt
by the Escrow Agent or any indemnitee of service of process for the
commencement of any action the Escrow Agent will, if a claim with respect
thereto is to be made against any of the Parties, notify the Parties of the
commencement of such action. The Parties hereto acknowledge that the foregoing
indemnities shall survive the resignation or removal of the Escrow Agent or the
termination of this Escrow Agreement.

 

(e)           The Escrow Agent may seek the advice of legal counsel concerning any
matter relating to its duties hereunder, and it shall incur no liability in
acting in accordance with the opinion and instructions of such counsel.

 

(f)                            (1)           The
Escrow Agent may resign and be discharged from its duties or obligations
hereunder by giving thirty (30) days advance notice in writing of such
resignation to the Parties specifying a date when such resignation shall take
effect.  Any corporation or association
into which the Escrow Agent may be merged or converted or with which it may be
consolidated, or any corporation or association to which all or substantially
all the escrow business of the Escrow Agent’s corporate trust line of business
may be transferred, shall be the Escrow Agent under this Escrow Agreement
without further act.  Escrow Agent’s sole
responsibility after such thirty (30) day notice period expires shall be to
hold the Escrow Funds (without any obligation to reinvest the same) and to
deliver the same to a designated substitute escrow agent, if any, or in
accordance with the directions of a final order or judgment of a court of
competent jurisdiction, at which time of delivery Escrow Agent’s obligations
hereunder shall cease and terminate.  If
the Parties have failed to appoint a successor escrow agent prior to the
expiration of thirty (30) days following receipt of the notice of resignation,
the Escrow Agent may petition any court of competent jurisdiction for the
appointment of a successor escrow agent or for other appropriate relief, and
any such resulting appointment shall be binding upon the Parties.

 

(2)           The Parties, acting together, may at any time
replace the Escrow Agent hereunder by giving notice to such effect and the
details of a successor escrow agent to the Escrow Agent.  Within ten (10) days of receipt of such
notice and details, the Escrow Agent shall transfer the Escrow Funds to the
successor escrow agent.

 

6.             The Escrow Agent’s fee of $2,000.00 shall be
paid equally by the Seller and Buyer at the time this Agreement is delivered to
Escrow Agent.  The Buyer further agrees
to reimburse Escrow Agent upon demand for all expenses incurred in connection
with this Escrow Agreement, including without limitation, Escrow Agent’s
service fees for all services performed in connection with this Escrow
Agreement as described in its applicable fee and information schedule.  This provision shall survive the termination
of this Agreement.

 

7.

a.     Each of the Parties represents that its correct Taxpayer
Identification Number (“TIN”) assigned by the Internal Revenue Service (“IRS”)
is set forth on the signature page hereof. 
All income earned by the Escrow Agent on funds invested pursuant to this
Escrow Agreement shall be reportable as

 

4

 

income to the Internal Revenue Service or any applicable State Revenue
Department, as income of the Buyer.  Any
tax returns or reports required to be prepared and filed on behalf of or by the
Escrow Funds will be prepared and filed by Buyer and the Escrow Agent shall
have no responsibility for the preparation and/or filing or any tax return with
respect to any income earned by the Escrow Funds.  In addition, any tax or other payments
required to be made pursuant to such tax return or filing will be paid by
Buyer.  Escrow Agent shall have no
responsibility for such payment.  Any
payment by the Escrow Agent under this Escrow Agreement shall by made without
any deduction or withholding for or on account of any taxes or other amounts.

 

b.     Prior to closing, the Buyer and Seller shall
provide the Escrow Agent with certified tax identification numbers by
furnishing appropriate forms W-9 or W-8 and such other forms and documents that
the Escrow Agent may request.   The
parties understand that if such tax reporting documentation is not provided and
certified to the Escrow Agent, the Escrow Agent may be required by the Internal
Revenue Code of 1986, as amended, and the Regulations promulgated thereunder,
to withhold a portion of any interest or other income earned on the investment
of the Escrow Funds.

 

c.     To the extent that the Escrow Agent becomes
liable for the payment of any taxes in respect of income derived from the
investment of the Escrow Funds, the Escrow Agent shall satisfy such liability
to the extent possible from the Escrow Funds. 
The Parties, jointly and severally, shall indemnify, defend and hold the
Escrow Agent harmless from and against any tax, late payment, interest, penalty
or other cost or expense that may be assessed against the Escrow Agent on or
with respect to the Escrow Funds and the investment thereof unless such tax,
late payment, interest, penalty or other expense was directly caused by the
gross negligence or willful misconduct of the Escrow Agent.  The indemnification provided by this Section 7(c) is
in addition to the indemnification provided in Section 5(d) and shall
survive the resignation or removal of the Escrow Agent and the termination of
this Escrow Agreement.

 

8.             This Escrow Agreement shall remain in force
and effect until the earlier of (i) the disbursement by the Escrow Agent
of the Escrow Funds in accordance with the Disbursement Letter or the Final
Determination Disbursement Request, or (ii) the resignation of the Escrow
Agent as Escrow Agent and the delivery to a successor specified by the Parties
of the Escrow Agreement, the Escrow Funds and any other related instruments or
documents.  Notwithstanding the
foregoing, if a an arbitration is pending challenging Seller’s right to the
Escrow Funds, or otherwise alleging a dispute as to the distribution of the
Escrow Funds, and provided the Escrow Agent has received written notice thereof
and a copy of all pleadings filed as of the date of such notice, the Escrow
Agent shall maintain such funds under the further provisions of this Escrow
Agreement until an award or decision is entered or the Parties otherwise
mutually agree in writing.

 

9.             All notices, requests and instructions
permitted or required to be given under the terms of this Escrow Agreement
shall be in writing, and may be served by personal delivery by certified US
mail addressed to the party to be notified, postage prepaid, return receipt
requested or by facsimile transmission. 
Notice deposited in the mail in the manner hereinabove described shall
be deemed to have been given and received on the date of the delivery as shown
on the return receipt.  Notice sent by
facsimile transmission shall be deemed to have been given if the recipient
confirms via telephone or facsimile its receipt of such notice to the
sender.  Notice served in any other
manner shall be deemed to have been given and received only if and when
actually received by the addressee.

 

5

 

If to Seller:

 

NGS Sub. Corp.

2500
City West Blvd, Suite 1300

Houston,
Texas 77042

Attention:
Robert S. Herlin, President

Facsimile:      713-935-0199

Telephone:     713-935-0122

 

6

 

With a copy to:

 

Adams
and Reese LLP

1221
McKinney, Suite 4400

Houston,
Texas 77010

Attention:       Mr. Mark A. Mathews

Telephone:     (713) 308-0158

Telecopy:       (713)
652-5152

 

If to Buyer:

 

MWM Energy, LLC

114 30th Avenue South

Nashville, Tennessee  37212

Attention: Stephen F. Moore, CEO

Facsimile:      615-340-5391

Telephone:     615-340-5389

 

If
to Escrow Agent:

Wells Fargo Bank, N.A.

1021
Main Street, Suite 2403

MAC:  T5017-241

Houston,
Texas  77002

Attention:
Josie Hixon

Telephone:     (713) 289-3469

Telecopy:
      (713) 289-3488

 

The Parties’ and the Escrow Agent’s respective addresses may be changed
by the appropriate Party or entity so notifying the other Party or entity in
the manner provided above.

 

10.           This Escrow Agreement and all instruments executed in accordance
herewith shall be governed by and interpreted in accordance with the laws of
the State of Texas, without regard to conflict of law rules that would
direct application of the laws of another jurisdiction.

 

11.           Any claim, counterclaim, demand, cause of action, dispute, or any other
controversy arising out of or relating to this Escrow Agreement solely between
the Buyer and Seller or in any way relating to the subject matter of this
Escrow Agreement (each a “Dispute”) shall be resolved by binding arbitration by
the Parties hereto.  A Dispute shall be
resolved through arbitration regardless of whether the Dispute involves claims
that this Escrow Agreement is unlawful, unenforceable, void, or voidable or
involves claims under state or federal statutory or common law.  The validity, construction and interpretation
of this Escrow Agreement to arbitrate, and all other procedural aspects of the
arbitration conducted pursuant hereto shall be decided by the arbitrators.  Any Party hereto may commence an arbitration
proceeding by transmitting written notice to the other Parties hereto pursuant
to the notice provisions of Paragraph (k) of this Escrow Agreement
and to the AAA regional office associated with the Location, of such party’s
demand for arbitration with respect to such party’s cause of action or claim
that is a Dispute (the “Demand for Arbitration”).  Any arbitration under this Escrow Agreement
shall be conducted in accordance with the Commercial Arbitration Rules (the
“Rules”) of the American Arbitration Association (“AAA”).  In resolving any Dispute, the arbitrators
shall refer to the governing law as specified in the first sentence of this

 

7

 

Paragraph
(11).  THE
ARBITRATORS SHALL NOT BE EMPOWERED TO AWARD, AND SHALL NOT AWARD, PUNITIVE,
EXEMPLARY, MULTIPLE, TREBLE, CONSEQUENTIAL, INDIRECT, AND SPECIAL DAMAGES,
REGARDLESS OF THE NATURE OF THE CAUSE OF ACTION, INCLUDING WITHOUT LIMITATION,
BREACH OF CONTRACT, TORT, AND NEGLIGENCE. 
EACH OF THE PARTIES AND THE ESCROW AGENT WAIVES ANY RIGHT THAT SUCH
PARTY OR ENTITY MAY HAVE TO RECOVER SUCH DAMAGES FROM ANY OTHER PARTY OR
ENTITY.  The arbitration shall be held in
Harris County, Texas (the “Location”). 
If the parties hereto initiate multiple arbitration proceedings, the
subject matters of which are related by common questions of law or fact and
which could result in conflicting awards or obligations, then all such
proceedings may be consolidated into a single arbitral proceeding.  Unless otherwise agreed by the parties to the
Dispute, the Dispute shall be decided by a panel of three (3) neutral
arbitrators selected as follows.  If
there are only two (2) parties to the Dispute, then each party to the
Dispute shall appoint one (1) arbitrator within thirty (30) days of the
filing of the arbitration, and the two arbitrators so appointed shall select
the presiding arbitrator within thirty (30) days after the latter of the two
arbitrators has been appointed by the parties to the Dispute.  If a party to the Dispute fails to appoint
its party-appointed arbitrator or if the two party-appointed arbitrators cannot
reach an agreement on the presiding arbitrator within the applicable time
period, then the AAA shall serve as the appointing authority and shall appoint
the remainder of the three arbitrators not yet appointed.  If the arbitration is to be conducted by
three arbitrators and there are more than two parties to the Dispute, then
within thirty (30) days of the filing of the arbitration, all claimants shall
jointly appoint one arbitrator and all respondents shall jointly appoint one
arbitrator, and the two arbitrators so appointed shall select the presiding
arbitrator within thirty (30) days after the latter of the two arbitrators has
been appointed by the parties to the Dispute. 
In the event of a dispute concerning the alignment of the parties to the
Dispute, such dispute shall be resolved by the AAA as the administrative
authority.  If  either of the Parties is not a party to the
Dispute, it will not appoint an arbitrator. 
If the parties to the Dispute agree in writing, the Dispute may be decided
by a single arbitrator who shall be specified in such written agreement between
or among the parties to the Dispute.  The
arbitrators may award interim measures or injunctive relief, which may be
enforced by the arbitrators or by a court of law. The arbitration award issued
by the arbitrators shall be final and binding. 
The award shall be required to be in writing, stating the amount of the
award, and if applicable the amount of attorneys’ fees and costs.  Any litigation relating to or arising under
this Paragraph (11) must be brought in the state or federal courts
sitting in the Location.  The Parties
further hereby waive any right to a trial by jury with respect to any lawsuit
or judicial proceeding arising or relating to this Escrow Agreement.  Any arbitration award may be enforced by the
state or federal courts of Texas or by any court of competent subject matter
jurisdiction (including but not limited to any jurisdiction in which a party to
the Dispute holds or keeps assets).  The
parties hereto agree that service of process may be accomplished according to
the notice procedures of Paragraph (k) or by any other means
authorized by applicable law.  The
parties hereto agree to waive any objection they may have to service of process
if accomplished according to the procedures of Paragraph (k).  The arbitrators are authorized to award costs
of the arbitration in its award, including without limitation (i)  the
reasonable fees and expenses of the arbitrators; (ii) the reasonable costs
of assistance required by the tribunal, including its experts; (iii) the
reasonable fees and expenses of the administrator; (iv) the reasonable
costs for legal representation of a successful party to the Dispute, including
attorneys’ fees, expert witness fees, out of pocket costs and other reasonable
expenses; and (v) any such reasonable costs incurred in connection with an
application for interim measures or emergency relief and to allocate those
costs between the parties to the Dispute. 
The award shall include pre-judgment interest at a rate to be determined
by the arbitrators (not to exceed the maximum amount permitted by law) from the
date of the breach or default.  Interest
shall accrue until the date the award is paid in full.  Any arbitration (including a settlement resulting
from an award, documents exchanged or produced during an arbitration
proceeding, and memorials, briefs or other documents prepared for the
arbitration) shall be confidential and may not be disclosed by the parties
hereto, their employees, officers, directors, counsel, consultants, and expert
witnesses, except (i) in a legal proceeding to enforce rights under this Paragraph
(11), (ii) in response to a subpoena or legal process, but only after
giving the other parties hereto reasonable notice in advance for them to take
steps to preserve the confidentiality of the material, (iii) by agreement
of the parties hereto or (iv) as required by applicable law or any
applicable stock exchange.  A breach of
this Paragraph (11) shall not void any settlement or award.  If any provision of Paragraph (11) is
found by a court to be unenforceable or unlawful, then it shall be severed from
this Escrow Agreement and the remaining terms shall be enforced as written.

 

8

 

12.           This Escrow Agreement shall be binding upon and inure to the benefit of
the Parties and the Escrow Agent, and their respective successors and assigns.

 

13.           In the event a Disbursement Letter or Final Determination Disbursement
Request is given, the Escrow Agent is authorized to seek confirmation of such
instructions by telephone call-back to the person or persons designated on Schedule
3 hereto, and the Escrow Agent may rely upon the confirmation of anyone
purporting to be the person or persons so designated.  Each Disbursement Letter or Final
Determination Disbursement Request shall be executed by an authorized
signatory, a list of such authorized signatories is set forth on Schedule 3.  The undersigned is authorized to certify that
the signatories on Schedule 3 are authorized signatories.  The persons and telephone numbers for
call-backs may be changed only in a writing actually received and acknowledged
by the Escrow Agent.  The Escrow Agent
and the beneficiary’s bank in any funds transfer may rely solely upon any
account numbers or similar identifying numbers provided by Seller or Buyer to
identify (i) the beneficiary, (ii) the beneficiary’s bank, or (iii) an
intermediary bank.  The Escrow Agent may
apply any of the escrowed funds for any payment order it executes using any
such identifying number, even when its use may result in a person other than
the beneficiary being paid, or the transfer of funds to a bank other than the
beneficiary’s bank or an intermediary bank designated.  The
parties to this Escrow Agreement acknowledge that these security procedures are
commercially reasonable.

 

14.           The provisions of this Escrow Agreement may be waived, altered, amended
or supplemented, in whole or in part, only by a writing signed by the Parties
and Escrow Agent.  This Escrow Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. All signatures of the Parties and of the Escrow Agent may be
transmitted by facsimile, and such facsimile will, for all purposes, be deemed
to be the original signature of such Party or entity whose signature it
reproduces, and will be binding upon such Party or entity.

 

15.           In the event that any portion of the Escrow Funds shall be attached,
garnished or levied upon by any court order, or the delivery thereof shall be
stayed or enjoined by an order of a court, or any order, judgment or decree
shall be made or entered by any court order affecting the Escrow Funds, the
Escrow Agent is hereby expressly authorized, in its sole discretion, to obey
and comply with all writs, orders or decrees so entered or issued, which it is
advised by legal counsel of its own choosing is binding upon it, whether with
or without jurisdiction, and in the event that the Escrow Agent obeys or
complies with any such writ, order or decree it shall not be liable to any of
the Parties or to any other person, firm or corporation, by reason of such
compliance notwithstanding such writ, order or decree be subsequently reversed,
modified, annulled, set aside or vacated.

 

9

 

IN WITNESS WHEREOF, the Parties and the Escrow Agent have executed this Escrow Agreement
as of the date set forth above.

 

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  MWM ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  TIN:

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  NGS SUB CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  TIN:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESCROW AGENT:

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

10

 

Schedule 1

 

Agency
and Custody Account Direction

For Cash
Balances

Wells
Fargo Money Market Deposit Accounts

 

Direction to use the
following Wells Fargo Money Market Deposit Accounts for Cash Balances for the
escrow account or accounts (the “Account”) established under the Escrow
Agreement to which this Exhibit A is attached.

 

You are hereby directed
to deposit, as indicated below, or as I shall direct further in writing from
time to time, all cash in the Account(s) in the following money market
deposit account of Wells Fargo Bank, National Association (Bank):

 

Wells Fargo Money
Market Deposit Account (MMDA)

 

I understand that amounts
on deposit in the MMDA are insured, subject to the applicable rules and
regulations of the Federal Deposit Insurance Corporation (FDIC), in the basic
FDIC insurance amount of $100,000 per depositor, per insured bank. This
includes principal and accrued interest up to a total of $100,000.   I understand that deposits in the MMDA are
not secured.

 

I acknowledge that I have
full power to direct investments of the Account(s).

 

I understand that I may
change this direction at any time and that it shall continue in effect until
revoked or modified by me by written notice to you.

 

 

	
   

  	
   

  	
   

  
	
  Authorized
  Representative,

  	
   

  	
  Authorized Representative,

  
	
  NGS Sub. Corp.

  	
   

  	
  MWM Energy, LLC

  
	
   

  	
   

  	
   

  
	
  Date: February 15,
  2008

  	
   

  	
  Date: February 15,
  2008

  

 

Schedule 1

 

Schedule 2

 

FORM OF ESCROW AGENT’S
ACKNOWLEDGEMENT

 

TO:

 

	
  NGS Sub Corp.

  	
   

  	
  MWM Energy, LLC

  
	
  2500 City West
  Blvd

  	
   

  	
  114 30th Avenue South

  
	
  Suite 1300

  	
   

  	
  Nashville, Tennessee 37212

  
	
  Houston, Texas
  77042

  	
   

  	
  Attention: Stephen F. Moore, CEO

  
	
  Attention:
  Robert S. Herlin, President

  	
   

  	
  Facsimile:

  	
  615-340-5391

  
	
  Facsimile:713-935-0199

  	
   

  	
  Telephone:

  	
  615-340-5389

  
	
  Telephone:     713-935-0122

  	
   

  	
   

  

 

REFERENCE:

 

Escrow Agreement
dated as of the 15th day of February, 2008  (“Escrow Agreement”) by and among NGS Sub
Corp. (“Seller”), MWM Energy, LLC (“Buyer”) and Wells Fargo Bank, N.A. (“Escrow
Agent”) pursuant to which an escrow account designated as the               account
bearing Account Number                     
(the “Escrow Account”) has been established.

 

ACKNOWLEDGEMENT:

 

In our capacity as
Escrow Agent under the Escrow Agreement, we hereby acknowledge receipt of $[                                            ]
from Buyer by wire transfer of immediately available funds into the Escrow
Account.

 

Dated: [                      ],
2008

 

	
   

  	
  ESCROW
  AGENT:

  
	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

Schedule
2

 

Schedule 3

 

Telephone Number(s) and signature(s) for

 

Person(s) Designated to give and confirm Funds
Transfer Instructions

 

	
  If to Seller:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
  Telephone Number

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Robert S. Herlin

  	
   

  	
  (713) 935-0122

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If to Buyer:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
  Telephone Number

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  W. Mark Meyer

  	
   

  	
  (281) 296-3140

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Telephone call backs
shall be made to both Seller and Buyer if joint instructions are required
pursuant to the Escrow Agreement. All funds transfer instructions must include
the signature of the person(s) authorizing said funds transfer.

 

 

Escrow Agreement

(7/19/07 – Vers. 1)

 

 

Exhibit “A”

 

To that certain Escrow Agreement

dated the         
day of February , 2008 by and among

NGS Sub. Corp., MWM Energy, LLC and

Wells Fargo Bank, N.A.

 

APPROVAL FOR DISBURSEMENT

 

Wells Fargo Bank, N.A.

1000 Louisiana St, 4th Floor

Houston, TX 77002

MAC T5002-044

Telecopy:  713
739-1080

 

	
  RE:

  	
  Escrow Agreement

  
	
   

  	
  Escrow Account No.

  	
   

  	
   

  

 

Gentlemen:

 

The undersigned, being
all of the parties (other than Escrow Agent) to that certain Escrow Agreement
dated the            day of
February, 2008 hereby request that the following amounts be paid out of the
referenced Escrow Account via wire transfer of immediately available funds to
the named payees at the addresses and banking coordinates indicated below:

 

	
  Payee

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NGS Sub Corp.

  	
   

  	
  $

  	
                    

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bank:

  	
   

  	
   

  	
   

  
	
  ABA No.:

  	
   

  	
   

  	
   

  
	
  Account Number:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MWM Energy, LLC

  	
   

  	
  $

  	
                    

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bank:

  	
   

  	
   

  	
   

  
	
  ABA No.:

  	
   

  	
   

  	
   

  
	
  Account Number:

  	
   

  	
   

  	
   

  

 

Should you have any
questions regarding the above instructions, please contact representatives of
each of the undersigned parties.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  NGS
  SUB CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

1

 

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  MWM
  ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

2

 

Exhibit “B”

 

To that certain Escrow Agreement

dated the         
day of February, 2008 by and among

NGS Sub. Corp., MWM Energy, LLC and

Wells Fargo Bank, N.A.

 

FINAL DETERMINATION DISBURSEMENT
REQUEST

 

Wells Fargo Bank, N.A.

1000 Louisiana St, 4th Floor

Houston, TX 77002

MAC T5002-044

Telecopy:  713
739-1080

 

	
  RE:

  	
  Escrow Agreement

  
	
   

  	
  Escrow Account No.

  	
   

  	
   

  

 

Gentlemen:

 

The undersigned, being a
party to that certain Escrow Agreement dated the           
day of February, 2008 (the “Escrow Agreement”) by and among NGS Sub Corp. (“Seller”),
MWM Energy, LLC (“Buyer”) and Wells Fargo Bank, N.A. (“Escrow Agent”), hereby
requests that the following amounts be paid out of the referenced Escrow
Account via wire transfer of immediately available funds, to the named payees
at the addresses and banking coordinates indicated below pursuant to this Final
Determination Disbursement Request (as defined in the Escrow Agreement), a copy
of the Final Determination (as defined in the Escrow Agreement) is attached
hereto:

 

	
  Payee

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NGS Sub Corp.

  	
   

  	
  $

  	
                     

  	
   

  
	
  Bank:

  	
   

  	
   

  	
   

  
	
  ABA No.:

  	
   

  	
   

  	
   

  
	
  Account Number:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MWM Energy, LLC

  	
   

  	
  $

  	
                     

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bank: .

  	
   

  	
   

  	
   

  
	
  ABA No.: Account Number:

  	
   

  	
   

  	
   

  

 

Should you have any
questions regarding the above instructions, please contact representatives of
the Seller and Buyer.

 

	
   

  	
  [NGS
  SUB CORP.]

  
	
   

  	
   

  
	
   

  	
  [OR]

  
	
   

  	
   

  
	
   

  	
  [MWM
  ENERGY, LLC]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

1

 

Exhibit “D”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

ASSIGNMENT, CONVEYANCE AND
BILL OF SALE

 

	
  STATE OF LOUISIANA

  	
   

  	
  §

  	
   

  
	
   

  	
   

  	
  §

  	
   

  
	
  PARISHES OF LASALLE AND WINN

  	
   

  	
  §

  	
   

  

 

THAT, NGS Sub.
Corp., a Delaware corporation, whose address is 2500 City West
Boulevard, Suite 1300, Houston, Texas 77042 (“Assignor”),
in consideration of Ten Dollars ($10.00) and other good and valuable consideration
to it in hand paid, the receipt and sufficiency of which are hereby
acknowledged, does hereby GRANT, BARGAIN, CONVEY, SELL, ASSIGN, TRANSFER and
DELIVER to MWM Energy, LLC, a Texas limited
liability company, whose address is 114 30th Avenue South, Nashville,
Tennessee 37212 (“Assignee”),
effective February 1, 2008 at 7:00 a.m. CST (the “Effective Time”), the assets and
properties described in Section II
below, except to the extent constituting Excluded Assets, which, after said
exclusion, shall be collectively referred to as the “Assets.”  This Assignment, Conveyance and Bill of Sale
(the “Conveyance”) relates to that
certain Purchase and Sale Agreement dated February 15, 2008, effective February 1,
2008, between Assignor and Assignee (referred to as the “Agreement”).  Each capitalized term used in this Conveyance
that is not otherwise defined herein shall have the meaning as set out in the
Agreement.

 

I.  DEFINITIONS

 

In this Conveyance, capitalized terms have the meanings provided in
this Section, unless defined elsewhere in this Conveyance.  All defined terms include both the singular
and the plural of such terms.  All
references to Sections refer to Sections in this Conveyance and all references
to Exhibits or Schedules refer to Exhibits or Schedules attached to and made a
part of this Conveyance.  When the term “herein”
is used in this Conveyance, reference is made to the entire Conveyance and not
to any particular Section or subparagraph of a Section.  The word “including” shall mean including
without limitation.

 

(a)                                  “Assignee
Group” means Assignee and its officers, directors, agents,
representatives, consultants and employees.

 

(b)                                 “Assignor
Group” means (1) Assignor and its officers,
directors, agents, representatives, consultants and employees, and (2) Assignor’s
Parent and Affiliates and their officers, directors, agents, representatives,
consultants and employees.

 

Escrow
Agreement

(7/19/07
– Vers. 1)

 

 

(c)                                  “Claims” shall mean any
and all claims, demands, losses, damages, punitive damages, costs, expenses,
causes of action or judgments of any kind or character including, without
limitation, any interest, penalty, reasonable attorneys’ fees and other costs
and expenses incurred in connection therewith or the defense thereof.

 

(d)                                 “Company” shall mean
Four Star Development Corporation, a Louisiana corporation.

 

(e)                                  “Environmental
Defect” shall mean:

 

(1)                                  a condition or
activity with respect to a Scheduled Interest that is in material violation, or
reasonably likely to materially violate, any federal, state or local statute,
or any rule, order, ruling or regulation entered, issued or made by any court,
administrative agency, or other governmental body or entity, federal, state, or
local, or any arbitrator (“Environmental Law”),
or surface or mineral lease obligation, whether an express or implied
obligation, relating to natural resources, conservation, the environment, or
the emission, release, storage, treatment, disposal, transportation, handling
or management of industrial or solid waste, hazardous waste, hazardous or toxic
substances, chemicals or pollutants, petroleum, including crude oil, natural
gas, natural gas liquids, or liquefied natural gas, and any wastes associated
with the exploration and production of oil and gas (“Regulated
Substances”); or

 

(2)                                  the presence of
Regulated Substances in the soil, groundwater, or surface water in, on, at or
under a Scheduled Interest in any manner or quantity which is required to be
remediated by Environmental Law or by any applicable action or guidance levels
or other standards published by any governmental agency with jurisdiction over
the Assets, or by a surface or mineral lease obligation, whether an express or
implied obligation.  Assignee and
Assignor agree that for a condition to be in violation of any statute or
regulation it shall not be necessary that Assignor shall be under notice of
violation from a federal or state regulatory agency or lessor.

 

The Parties agree and acknowledge that Assignee was provided an
opportunity to examine the Assets for potential naturally occurring radioactive
materials (“NORM”), and any potential
obligations with respect to NORM and that the presence of NORM on any of the
Assets, except with respect to inactive wells, facilities, pipelines and other
equipment, may not be raised by Assignee as the subject of an Environmental
Defect.

 

(f)                                    “Environmental
Obligations” shall mean all liabilities, obligations, expenses
(including, without limitation, all attorneys’ fees), fines, penalties, costs,
claims, suits or damages (including natural resource damages) of any nature,
associated with the Assets, and attributable to or resulting from:

 

(1)                                  pollution or
contamination of soil, surface water, groundwater or air, on, in, by, from or
under the Assets or lands in the vicinity thereof, and any other contamination
of or adverse effect upon the environment;

 

3

 

(2)                                  underground
injection activities and waste disposal;

 

(3)                                  clean-up
responses, remedial, control or compliance costs, including the required
cleanup or remediation of spills, pits, lakes, ponds, or lagoons, including any
subsurface or surface pollution caused by such spills, pits, lakes, ponds, or
lagoons;

 

(4)                                  noncompliance
with applicable land use, permitting, surface disturbance, licensing or
notification requirements, including those in a surface or mineral lease,
whether an express or implied obligation;

 

(5)                                  violation of
any federal, state or local Environmental Law or land use law, or surface or
mineral lease obligation, whether an express or implied obligation;

 

(6)                                  any other
violation which could qualify as an Environmental Defect (without being limited
to Scheduled Interests); and

 

(7)                                  any and all
indemnity obligations of Assignor with respect to the above, along with any and
all Claims against Assignor for indemnity with respect to the above, under,
pursuant to or arising from any acquisition, purchase and sale or other
agreement.

 

Notwithstanding any provision of this Conveyance or
the Agreement to the contrary, “Environmental Obligations” shall not include
Plugging and Abandonment Obligations (including with respect to NORM).

 

(g)                                 “Governmental
Authority” means any federal, state, local, municipal or other
governments; any governmental, regulatory or administrative agency, commission,
body or other authority exercising or entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power; and any court or governmental tribunal.

 

(h)                                 “Permitted
Encumbrances” shall mean any of the following matters:

 

(1)                                  defects in the
early chain of title consisting of failure to recite marital status or the
omission of succession or heirship proceedings;

 

(2)                                  defects or
irregularities arising out of uncancelled mortgages, judgments or liens, the
inscriptions of which, on their face, have expired as a matter of law prior to
the Effective Time, or prior unreleased oil and gas leases which, on their
face, expired more than ten (10) years prior to the Effective Time and
have not been maintained in force and effect by production or operations
pursuant to the terms of such leases;

 

(3)                                  tax liens and
operator’s liens for amounts not yet due and payable, or those that are being
contested in good faith by Assignor in the ordinary course of business;

 

(4)                                  to the extent
any of the following do not materially diminish the value of, or impair the
conduct of operations on, any of the Assets and do not impair Assignor’s right
to receive the revenues attributable thereto: (i) easements, rights-of-way,
servitudes,

 

4

 

permits, surface leases and other rights in respect of surface
operations, pipelines, grazing, hunting, fishing, logging, canals, ditches,
lakes, reservoirs or the like, (ii) easements for streets, alleys,
highways, pipelines, telephone lines, power lines, railways and other similar
rights-of-way, on, over or in respect of property owned or leased by Assignor
or over which Assignor owns rights of way, easements, permits or licenses, and (iii) the
terms and conditions of all leases, agreements, orders, instruments and
documents pertaining to the Assets;

 

(5)                                  all lessors’
royalties, overriding royalties, net profits interests, carried interest,
production payments, reversionary interests and other burdens on or deductions
from the proceeds of production if the net cumulative effect of such burdens or
deductions does not reduce the net revenue interest of Assignor in any Well
affected thereby below that reflected on Exhibit “A-2” of all oil
and gas produced, saved and marketed from or attributable to the unitized sand
or other sands listed from the Wells listed, or impair the right to receive
revenues attributable thereto;

 

(6)                                  preferential
rights to purchase and required third party consents to assignments and similar
agreements with respect to which waivers or consents are obtained from the
appropriate parties, or the appropriate time period for asserting the rights
has expired without an exercise of the rights prior to the date of execution of
this Conveyance;

 

(7)                                  Required
third-party consents to the assignment of the Leases, which Assignor has
previously requested, but not obtained, and the lessor of any such lease or
holder of any such right has not prior to the execution of the Agreement objected
to such assignment or notified Assignor in writing of such objection
obligation;

 

(8)                                  all rights to
consent by, required notices to, filings with, or other actions by governmental
entities in connection with the sale or conveyance of oil and gas leases or
interests if they are customarily obtained subsequent to the sale or
conveyance;

 

(9)                                  defects or
irregularities of title arising out of events or transactions which have been
barred by limitations or by acquisitive or liberative prescription;

 

(10)                            rights reserved
to or vested in any municipality or governmental, statutory or public authority
to control or regulate any of the Assets in any manner, and all applicable
laws, rules and orders of governmental authority;

 

(11)                            any encumbrance
or other matter (whether or not constituting a Title Defect) expressly waived
in writing by Assignee or listed on Exhibit “F”; and

 

(12)                            the litigation
and threatened litigation, and any Claims thereunder, as listed on Exhibit “F.”

 

(i)                                     “Person” means an
individual, group, partnership, corporation, limited liability company, trust
or other entity.

 

5

 

(j)                                     “Plugging
and Abandonment Obligations” shall mean the
responsibility and liability, including but not limited to Claims for damages
and/or other relief, for the following plugging and abandonment obligations
related to the Assets, regardless of whether they are attributable to the
ownership or operation of the Assets before or after the Effective Time:

 

(1)                                  the necessary
and proper plugging, replugging and abandonment of all Wells, whether plugged
and abandoned before or after the Effective Time;

 

(2)                                  the necessary
and proper removal, abandonment, and disposal of all platforms, structures,
pipelines, equipment, movables, immovables, abandoned property and junk located
on or comprising part of the Assets;

 

(3)                                  to the extent
allowed by the applicable authorized governmental body and the owners of the
property affected, the necessary and proper capping and burying of all associated
flow lines located on or comprising part of the Assets;

 

(4)                                  the necessary
and proper restoration of the Assets and/or the property covered by the Assets
or upon which the Assets are located, both surface, surface water, groundwater,
waterbottom and subsurface, to such condition as may be required by applicable
laws, regulation or contract;

 

(5)                                  any necessary
clean-up or disposal of Assets contaminated by NORM as may be required by
applicable laws, regulation or contract;

 

(6)                                  all obligations
arising from contractual requirements and demands made by authorized
governmental bodies or parties claiming an interest in the Assets and/or the
property covered by the Assets or upon which the Assets are located; and

 

(7)                                  any and all
indemnity obligations of Assignor with respect to the above, along with any and
all Claims against Assignor for indemnity with respect to the above, under,
pursuant to or arising from any acquisition, purchase and sale or other
agreement.

 

(k)                                  “Scheduled
Interests” or “Scheduled Interest”  shall mean that portion of
the Assets attributable to the Leases or Wells identified on Exhibits “A-1”
and “A-2” and having a value greater than $0.00.

 

(l)                                     “Tax” or “Taxes” means all income, profits, franchise,
withholding, ad valorem, employment, social security, disability, occupation,
property, severance and excise taxes, together with any interest and penalties
with respect thereto, imposed by or on behalf of any Taxing Authority.

 

(m)                               “Taxing
Authority” means, with respect to any Tax, the governmental
entity or political subdivision thereof that imposes such Tax, and the agency
(if any) charged with the collection of such Tax for such entity or
subdivision, including any governmental or quasi-governmental

 

6

 

entity or agency that imposes, or is charged
with collecting, social security or similar charges or premiums.

 

II.  ASSETS CONVEYED

 

The Assets shall be
comprised of all of Assignor’s right, title and interest in and to or derived
from the following, except to the extent constituting Excluded Assets:

 

(a)                                  any and all
interests owned by Assignor in and to the oil, gas and/or mineral leases set
forth on Exhibit “A-1” (“the Leases”),
including any overriding royalty interests, net profit interests, working
interests, reversionary interests, and any other interests of Assignor in said
oil, gas and/or mineral leases, or the lands covered by said Leases;

 

(b)                                 all right,
title and interest of Assignor in and to or derived from the following insofar
as the same do not constitute Excluded Assets and are attributable to,
appurtenant to, incidental to, or used for the operation of the Leases
(collectively, “the Real Property, Personal
Property and Incidental Rights”):

 

(1)                                  all fee
interests and surface estate interests described on Exhibit “A-5”;

 

(2)                                  all easements,
rights-of-way, surface leases, permits, licenses, servitudes or other interests
relating to the use of the surface, including but not limited to those
described on Exhibit “A-4,” or in instruments described in Exhibit “A-3”;

 

(3)                                  all wells
located on the Assets, or lands pooled or unitized therewith, including but not
limited to those listed on Exhibit “A-2”, whether or not such wells
are producing, active or inactive, plugged and abandoned, temporarily
abandoned, shut-in, injection, disposal, water supply or otherwise
(collectively “the Wells”),
along with all equipment and other personal property, inventory, spare parts,
tools, fixtures, pipelines, dehydration facilities, platforms, tank batteries,
appurtenances, and improvements situated upon the Leases or lands pooled or
unitized therewith as of the Effective Time and used or held for use in
connection with the development or operation of the Leases or the production,
treatment, storage, compression, processing or transportation of crude oil,
natural gas, casinghead gas, condensate, sulphur, natural gas liquids and other
liquid or gaseous hydrocarbons, and all other minerals of every kind and
character which may be covered by or included in the Leases and Assets (“the Hydrocarbons”), from or in the
Wells or the Leases or lands pooled or unitized therewith including, but not
limited to those described on Exhibit “A-2”;

 

(4)                                  all unit
agreements, orders and decisions of state and federal regulatory authorities
establishing units, joint operating agreements, enhanced recovery and injection
agreements, farmout agreements and farmin agreements, options, drilling
agreements, exploration agreements, assignments of operating rights, working
interests, subleases and rights above or below certain footage depths or
geological formations, to the extent same is attributable to the Assets, as of
the Effective Time, including but not limited to those described on Exhibit “A-3”;

 

7

 

(5)                                  all contracts,
agreements, and title instruments to the extent attributable to and affecting
the Assets in existence as of the date of execution of this Conveyance,
including all Hydrocarbon sales, purchase, gathering, transportation, treating,
marketing, exchange, processing, disposal and fractionating contracts, joint
operating agreements, including but not limited to those described on Exhibit “A-3”;

 

(6)                                  originals of
all lease files, land files, well files, production records, division order
files (including paysheets and supporting files), abstracts, title opinions,
and contract files, insofar as the same are directly related to the Leases,
including, without limitation, all geological, information and data, to the
extent that such data is not subject to any third party restrictions, but
excluding Assignor’s proprietary interpretations of same; and

 

(7)                                  the Company
books, records and files of Four Star Development Corporation, a Louisiana
Corporation, including but not limited to, permits, licenses, corporate
records, minute book, contracts, title records, tax records relating solely to
the business of the Company, financial, engineering and safety records;

 

(c)                                  all
merchantable oil and condensate (for oil or liquids in storage tanks, being only
that oil or liquids physically above the top of the inlet connection into such
tanks) produced from or attributable to the Leases prior to the Effective Time
which have not been sold by Assignor and are in storage at the Effective Time (“the
Inventory Hydrocarbons”); and

 

(d)                                 all of the
issued and outstanding capital stock of Four Star Development Corporation, a
Louisiana Corporation (“the Shares”).

 

(e)                                  It is the
intent of the Parties that this Conveyance shall, except for the Excluded
Assets (as defined in this Conveyance), assign, transfer and convey all of
Assignor’s right, title and interest in the Assets, and all Hydrocarbons
produced therefrom after the Effective Time, irrespective of whether those
Assets and rights are set forth on the exhibits and schedules attached hereto.

 

III.  EXCLUDED ASSETS

 

There
is specifically SAVED, EXCEPTED and RESERVED from this Conveyance, the
following described assets and properties, herein called “Excluded
Assets.”  As used in this
Conveyance, the term “Excluded Assets”
shall mean the following:

 

(a)                                  (i) all
trade credits, accounts receivable, notes receivable and other receivables
attributable to Assignor’s interest in the Assets with respect to any period of
time prior to the Effective Time; (ii) all deposits, cash, checks in
process of collection, cash equivalents and funds attributable to Assignor’s
interest in the Assets with respect to any period of time prior to the
Effective Time; and (iii) all proceeds, benefits, income or revenues
accruing with respect to the Assets prior to the Effective Time;

 

8

 

(b)                                 all corporate,
financial, and tax records of Assignor, and those records subject to
attorney/client privilege; however, Assignee shall be entitled to receive
copies of any tax records which directly relate to any Assumed Obligations, or
which are necessary for Assignee’s ownership, administration, or operation of
the Assets;

 

(c)                                  all claims and
causes of action of Assignor arising from acts, omissions or events, or damage
to or destruction of the Asset, occurring prior to the Effective Time;
provided, however, Assignor shall transfer to Assignee all claims and causes of
action of Assignor against prior owners of the Assets or third parties for
Environmental Obligations that are not Retained Obligations;

 

(d)                                 all rights,
titles, claims and interests of Assignor relating to the Assets prior to the
Effective Time (i) under any policy or agreement of insurance or
indemnity; (ii) under any bond; or (iii) to any insurance or
condemnation proceeds or awards;

 

(e)                                  all
Hydrocarbons produced from or attributable to the Assets with respect to all
periods prior to the Effective Time, together with all proceeds from or of such
Hydrocarbons, except the Inventory Hydrocarbons and the unsold inventory of gas
plant products, if any, attributable to the Leases as of the Effective Time;

 

(f)                                    claims of
Assignor for refund of or loss carry forwards with respect to production,
windfall profit, severance, ad valorem or any other taxes attributable to any
period prior to the Effective Time, or income or franchise taxes;

 

(g)                                 all amounts due
or payable to Assignor as adjustments or refunds under any contracts or
agreements (including take-or-pay claims) affecting the Assets with respect to
any period prior to the Effective Time;

 

(h)                                 all amounts due
or payable to Assignor as adjustments to insurance premiums related to the
Assets with respect to any period prior to the Effective Time;

 

(i)                                     all proceeds,
benefits, income or revenues accruing (and any security or other deposits made)
with respect to the Assets, and all accounts receivable attributable to the
Assets, prior to the Effective Time;

 

(j)                                     all of Assignor’s
intellectual property, including, but not limited to, proprietary computer
software, patents, trade secrets, copyrights, names, marks and logos; and

 

(k)                                  the Assets
identified on Schedule 1.28(j).

 

IV.  OBLIGATIONS ASSUMED BY
ASSIGNEE

 

Assignee expressly assumes
and agrees to pay, perform, fulfill and discharge the following obligations
(the “Assumed Obligations”), except to
the extent included within those matters which Assignor has agreed to
indemnify, defend and hold Assignee harmless from under Section VI(g) below:

 

9

 

(a)                                  the Plugging
and Abandonment Obligations;

 

(b)                                 all
Environmental Obligations, whether related to, or arising from, events
occurring before or after the Effective Date, except those specifically
included under Section V below as “Retained Obligations”;

 

(c)                                  all obligations
with respect to gas production, sales or imbalances with third parties;

 

(d)                                 except as
otherwise provided in this Conveyance or in the Agreement, including the
Assignor’s obligations to indemnify, all other liabilities, duties, and
obligations that arise out of the ownership, operation or use of the Assets
after the Effective Time, including, but not limited to, the payment of all
operating expenses and capital expenditures relating to the Assets, all
liabilities, duties, and obligations, express or implied, imposed upon Assignor
herein under the provisions of the Leases and any and all assignments,
subleases, farmout agreements, assignments of overriding royalty, joint
operating agreements, easements, rights-of-way, and all other contracts,
agreements and instruments affecting the Leases, or the premises covered
thereby, whether recorded or unrecorded, whether or not identified on the
Exhibits or schedules attached hereto or to the Agreement and under all
applicable laws, rules, regulations, orders and ordinances.

 

V.  OBLIGATIONS RETAINED BY
ASSIGNOR

 

As
of the Effective Time, Assignor expressly retains and agrees to pay, perform,
fulfill and discharge the following (collectively, “Retained
Obligations”):

 

(a)                                  any
Environmental Obligation of any nature related to the Excluded Assets;

 

(b)                                 all
Environmental Obligations of any nature that relate to or arise from events
occurring as of the date Assignor acquired the Assets through the date of
execution of this Conveyance;

 

(c)                                  Claims for
personal injury or wrongful death occurring prior to the Effective Time;

 

(d)                                 responsibility
to any governmental agency for any offsite storage and disposal by Assignor,
prior to the Effective Time, of hazardous materials produced from the Assets,
and stored or disposed of, on, in or below any property which does not form a
part of the Assets, for which and to the extent that remediation is required by
any environmental or conservation law in effect as of the Effective Time; for
purposes of this subpart “(d),” “offsite storage and disposal” shall not
include the seepage, leakage or other migration of hazardous materials from the
property forming part of the Assets to other lands;

 

(e)                                  responsibility
and liability for the litigation and threatened litigation listed on Exhibit “F,”
and the Claims thereunder; and

 

10

 

(f)                                    except as
otherwise provided in this Conveyance or the Agreement, all other liabilities,
duties, and obligations that arise out of the ownership, operation or use of
the Assets prior to the Effective Time, including, but not limited to, the
payment of all operating expenses and capital expenditures relating to the
Assets, all liabilities, duties, and obligations, express or implied, imposed
upon Assignor herein under the provisions of the Leases and any and all
assignments, subleases, farmout agreements, assignments of overriding royalty,
joint operating agreements, easements, rights-of-way, and all other contracts,
agreements and instruments affecting the Leases, or the premises covered
thereby, whether recorded or unrecorded, whether identified or not on the
Exhibits or Schedules attached hereto or to the Agreement and under all
applicable laws, rules, regulations, orders and ordinances.

 

VI.  LIMITED WARRANTIES, WAIVERS
AND INDEMNIFICATIONS

 

(a)                                  THIS
CONVEYANCE IS MADE WITHOUT WARRANTY OF TITLE, EITHER EXPRESS, IMPLIED,
STATUTORY OR OTHERWISE, AND WITHOUT RECOURSE, EVEN AS TO THE RETURN OF THE
PURCHASE PRICE OR OTHER CONSIDERATION, EXCEPT THAT, SUBJECT TO THE PERMITTED
ENCUMBRANCES, ASSIGNOR WARRANTS TITLE TO THE ASSETS AGAINST ALL CLAIMS, LIENS,
BURDENS AND ENCUMBRANCES ARISING BY, THROUGH OR UNDER ASSIGNOR, BUT NOT
OTHERWISE AND NOT WITH RESPECT TO ANY IMPAIRMENT OR FAILURE OF TITLE RELATED TO
ANY LACK OF PRODUCTION IN PAYING QUANTITIES. 
THIS CONVEYANCES IS MADE WITH FULL SUBSTITUTION AND SUBROGATION TO
ASSIGNEE IN AND TO ALL COVENANTS AND WARRANTIES BY OTHERS HERETOFORE GIVEN OR
MADE TO ASSIGNOR WITH RESPECT TO THE ASSETS.

 

(b)                                  ASSIGNEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED IN THE AGREEMENT, NEITHER ASSIGNOR NOR ASSIGNOR’S PARENT
MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY, IMPLIED OR OTHERWISE
WITH RESPECT TO THE COMPANY AND THE ASSETS. 
ASSIGNOR, FOR ITSELF AND ITS PARENT, HEREBY EXPRESSLY DISCLAIMS ANY AND
ALL REPRESENTATIONS AND WARRANTIES ASSOCIATED WITH THE COMPANY, OR THE ASSETS,
EXPRESS, STATUTORY, IMPLIED OR OTHERWISE, INCLUDING ANY REPRESENTATION OR
WARRANTY REGARDING:  (A) TITLE
(EXCEPT AS PROVIDED IN SECTION VI(a) ABOVE, (B) ANY
COSTS, EXPENSES, REVENUES, RECEIPTS, ACCOUNTS RECEIVABLE, OR ACCOUNTS PAYABLE, (C) ANY
CONTRACTUAL, ECONOMIC OR FINANCIAL INFORMATION AND DATA ASSOCIATED WITH THE
COMPANY, OR THE ASSETS, (D) THE CONTINUED FINANCIAL VIABILITY OR
PRODUCTIVITY OF THE COMPANY OR THE ASSETS OR TRANSPORTABILITY OF PRODUCT, (E) THE
ENVIRONMENTAL OR PHYSICAL CONDITION OF THE ASSETS, (F) ANY FEDERAL, STATE,
LOCAL OR TRIBAL INCOME OR OTHER TAX CONSEQUENCES ASSOCIATED WITH THE COMPANY
AND THE ASSETS, (G) THE ABSENCE OF PATENT OR LATENT DEFECTS, (H) THE
STATE OF REPAIR OF THE ASSETS, (I) MERCHANTABILITY OR CONFORMITY TO
MODELS, (J) ANY RIGHTS OF ANY MEMBER OF

 

11

 

ASSIGNEE GROUP UNDER APPROPRIATE LAWS TO
CLAIM DIMINUTION OF CONSIDERATION OR RETURN OF THE PURCHASE PRICE, (K) FREEDOM
FROM PATENTS, COPYRIGHT OR TRADEMARK INFRINGEMENT, (L) FITNESS FOR A
PARTICULAR PURPOSE, AND (M) PRODUCTION RATES, RECOMPLETION OPPORTUNITIES,
DECLINE RATES, GAS BALANCING INFORMATION OR THE QUALITY, QUANTITY OR VOLUME OF
THE RESERVES OF HYDROCARBONS, IF ANY, ATTRIBUTABLE TO THE ASSETS.

 

(c)                                  THE
EXPRESS REPRESENTATIONS AND WARRANTIES OF ASSIGNOR CONTAINED IN THIS CONVEYANCE
ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY
REPRESENTATION OR WARRANTY WITH RESPECT TO THE QUALITY, QUANTITY OR VOLUME OF
THE RESERVES, IF ANY, OF OIL, GAS OR OTHER HYDROCARBONS IN OR UNDER THE LEASES,
OR THE ENVIRONMENTAL CONDITION OF THE ASSETS. 
THE ITEMS OF PERSONAL PROPERTY, EQUIPMENT, IMPROVEMENTS, FIXTURES AND APPURTENANCES
CONVEYED AS PART OF THE ASSETS ARE SOLD HEREUNDER “AS IS, WHERE IS, AND
WITH ALL FAULTS” AND NO WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER,
EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR CONDITION, ARE GIVEN BY OR ON BEHALF OF
ASSIGNOR.  IT IS UNDERSTOOD AND AGREED
THAT ASSIGNEE HAS INSPECTED THE ASSETS FOR ALL PURPOSES AND HAS SATISFIED
ITSELF AS TO THEIR PHYSICAL AND ENVIRONMENTAL CONDITION, BOTH SURFACE AND
SUBSURFACE, AND THAT ASSIGNEE ACCEPTS SAME IN ITS “AS IS, WHERE IS AND WITH ALL
FAULTS” CONDITION.  ASSIGNEE HEREBY
WAIVES ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONDITION,
OR CONFORMITY TO SAMPLES.

 

(d)                                  THE
EXPRESS REPRESENTATIONS AND WARRANTIES OF ASSIGNOR CONTAINED IN THIS CONVEYANCE
ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE WARRANTY OF
FITNESS FOR INTENDED PURPOSES OR GUARANTEE AGAINST HIDDEN OR LATENT REDHIBITORY
VICES UNDER LOUISIANA LAW, INCLUDING LOUISIANA CIVIL CODE ARTICLES 2520 (1870)
THROUGH 2548 (1870), AND THE WARRANTY IMPOSED BY LOUISIANA CIVIL CODE ARTICLE
2476; AND ASSIGNEE EXPRESSLY WAIVES THE WARRANTY OF FITNESS FOR INTENDED
PURPOSES OR GUARANTEE AGAINST HIDDEN OR LATENT REDHIBITORY VICES UNDER
LOUISIANA LAW, INCLUDING LOUISIANA CIVIL CODE ARTICLES 2520 THROUGH 2548, AND
THE WARRANTY IMPOSED BY LOUISIANA CIVIL CODE ARTICLE 2475; ASSIGNEE WAIVES ALL
RIGHTS IN REDHIBITION PURSUANT TO LOUISIANA CIVIL CODE ARTICLE 2520, ET SEQ;
ASSIGNEE ACKNOWLEDGES THAT THIS EXPRESS WAIVER IS A MATERIAL

 

12

 

AND INTEGRAL PART OF THIS SALE AND THE CONSIDERATION THEREOF; AND
ASSIGNEE ACKNOWLEDGES THAT THIS WAIVER HAS BEEN BROUGHT TO THE ATTENTION OF
ASSIGNEE AND EXPLAINED IN DETAIL AND THAT ASSIGNEE HAS VOLUNTARILY AND
KNOWINGLY CONSENTED TO THIS WAIVER OF WARRANTY OF FITNESS AND/OR WARRANTY
AGAINST REDHIBITORY VICES AND DEFECTS FOR THE ABOVE DESCRIBED PROPERTY.

 

(e)                                  TO THE
EXTENT APPLICABLE TO THE ASSETS OR ANY PORTION THEREOF, ASSIGNEE HEREBY
VOLUNTARILY WAIVES THE PROVISIONS OF THE TEXAS DECEPTIVE TRADE PRACTICES ACT
(DTPA), CHAPTER 17, SUBCHAPTER E, SECTIONS 17.41 THROUGH 17.63, INCLUSIVE
(OTHER THAN SECTION 17.555, WHICH IS NOT WAIVED), TEX. BUS. &
COM. CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS.  IN ORDER TO EVIDENCE ITS ABILITY TO GRANT
SUCH WAIVER, ASSIGNEE HEREBY REPRESENTS AND WARRANTS TO ASSIGNOR THAT IT (i) IS
IN THE BUSINESS OF SEEKING OR ACQUIRING, BY PURCHASE OR LEASE, GOODS OR
SERVICES FOR COMMERCIAL OR BUSINESS USE; (ii) HAS CONSULTED WITH AN
ATTORNEY OF ASSIGNEE’S OWN CHOOSING; (iii) HAS KNOWLEDGE AND EXPERIENCE IN
FINANCIAL, BUSINESS AND OIL AND GAS MATTERS THAT ENABLE IT TO EVALUATE THE
MERITS AND RISKS OF THE TRANSACTIONS CONTEMPLATED HEREBY; (iv) IS NOT IN A
SIGNIFICANTLY DISPARATE BARGAINING POSITION; AND (v) UNDERSTANDS THAT THIS
WAIVER IS A MATERIAL AND INTEGRAL PART OF THIS CONVEYANCE AND THE
CONSIDERATION THEREOF.  IN ADDITION,
ASSIGNEE WAIVES ITS RIGHTS UNDER ALL OTHER CONSUMER PROTECTION STATUTES OF
TEXAS OR ANY OTHER STATE APPLICABLE TO THIS TRANSACTION THAT MAY BE WAIVED
INCLUDING BUT NOT LIMITED TO THE LOUISIANA
UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW, LA. R.S. 51:1402, ET SEQ. (THE “UTPCPL”).
ASSIGNEE EXPRESSLY RECOGNIZES THAT THE PURCHASE PRICE FOR WHICH ASSIGNOR HAS
AGREED TO PERFORM ITS OBLIGATIONS UNDER THIS CONVEYANCE HAS BEEN
PREDICATED UPON THE INAPPLICABILITY OF THE DTPA AND THE UTPCPL, AND THE WAIVER
OF ASSIGNEE OF ITS RIGHTS UNDER CONSUMER PROTECTION STATUTES AND ASSIGNEE
FURTHER RECOGNIZES THAT ASSIGNOR IN DETERMINING TO PROCEED WITH THE ENTERING
INTO OF THIS CONVEYANCE, HAS EXPRESSLY RELIED ON THIS WAIVER AND THE
INAPPLICABILITY OF THE DTPA, THE UTPCPL AND THE CONSUMER PROTECTION STATUTES.

 

(f)                                    ASSIGNEE
AGREES TO INDEMNIFY, DEFEND AND HOLD ASSIGNOR, ASSIGNOR’S GROUP AND ASSIGNOR’S
EMPLOYEES, OFFICERS AND DIRECTORS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, LOSSES, DAMAGES, PUNITIVE DAMAGES, COSTS, EXPENSES, CAUSES OF ACTION
OR JUDGMENTS OF ANY KIND OR CHARACTER INCLUDING, WITHOUT LIMITATION, ANY
INTEREST, PENALTY, REASONABLE ATTORNEYS’ FEES AND OTHER COSTS AND EXPENSES
INCURRED IN CONNECTION THEREWITH OR THE DEFENSE THEREOF (COLLECTIVELY THE “CLAIMS”), WITH RESPECT TO ALL
LIABILITIES AND OBLIGATIONS OR

 

13

 

ALLEGED OR THREATENED LIABILITIES AND OBLIGATIONS CAUSED BY, RELATED
TO, ATTRIBUTABLE TO, OR ARISING OUT OF THE ASSUMED OBLIGATIONS.  THE DEFENSE AND INDEMNITY OBLIGATIONS
PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF THE SOLE OR PARTIAL OR
COMPARATIVE OR CONCURRENT OR OTHER FAULT, NEGLIGENCE OR STRICT, PRE-EXISTING OR
OTHER LIABILITY ON THE PART OF ASSIGNOR. 
ADDITIONALLY, THE DEFENSE AND INDEMNITY OBLIGATIONS PROVIDED BY THIS SECTION SHALL
APPLY REGARDLESS OF THE NATURE OF THE OBLIGATIONS OF ASSIGNOR, BE THEY IN TORT,
CONTRACT, QUASI-CONTRACT, STATUTORY, OR OTHERWISE.

 

(g)                                 ASSIGNOR
AGREES TO INDEMNIFY, DEFEND AND HOLD ASSIGNEE AND ASSIGNEE’S EMPLOYEES,
OFFICERS AND DIRECTORS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS WITH
RESPECT TO ALL LIABILITIES AND OBLIGATIONS OR ALLEGED OR THREATENED LIABILITIES
AND OBLIGATIONS CAUSED BY, RELATED TO, ATTRIBUTABLE TO, OR ARISING OUT OF THE
RETAINED OBLIGATIONS.  THE DEFENSE AND
INDEMNITY OBLIGATIONS PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF
THE SOLE OR PARTIAL OR COMPARATIVE OR CONCURRENT OR OTHER FAULT, NEGLIGENCE OR
STRICT, PRE-EXISTING OR OTHER LIABILITY ON THE PART OF ASSIGNEE.  ADDITIONALLY, THE DEFENSE AND INDEMNITY
OBLIGATIONS PROVIDED BY THIS SECTION SHALL APPLY REGARDLESS OF THE NATURE
OF THE OBLIGATIONS OF ASSIGNEE, BE THEY IN TORT, CONTRACT, QUASI-CONTRACT,
STATUTORY, OR OTHERWISE.

 

(h)                                 THE
PARTIES HERETO BOTH AGREE AND STIPULATE THAT THEY HAVE ACTUAL KNOWLEDGE OF ALL
INDEMNITY PROVISIONS HEREIN, THAT THEY ARE FAMILIAR WITH THE EXPRESS NEGLIGENCE
TEST, THAT THIS DEFENSE AND INDEMNIFICATION AGREEMENT COMPLIES WITH THE EXPRESS
NEGLIGENCE TEST, THAT THE PARTIES CLEARLY INTEND TO TRANSFER THE RISK OF LOSS
FOR THE INDEMNITEE’S NEGLIGENCE, FAULT AND OTHER LIABILITIES AND OBLIGATIONS AS
SET FORTH ABOVE TO ASSIGNEE, AND THAT THESE INDEMNIFICATION PROVISIONS ARE
CONSPICUOUS.

 

(i)                                    Each
Party hereby agrees to indemnify and hold the other harmless from and against
any claim for a brokerage or finder’s fee or commission in connection with this
Conveyance or the transactions contemplated by this Conveyance to the extent
such claim arises from or is attributable to the actions of such indemnifying
Party, including, without limitation, any and all losses, damages, punitive
damages, attorneys’ fees, costs and expenses of any kind or character arising
out of or incurred in connection with any such claim or defending against the
same.

 

(j)                                    The amount of any Claims for which any party is entitled to
indemnification under this Conveyance shall be reduced by any corresponding (1) 
tax benefit created or

 

14

 

generated or (2)  insurance proceeds
realized by such party if a claim were properly pursued under the relevant
insurance arrangements.

 

(k)                                Each of the Parties expressly waives and agrees not to, and to cause
the members of the Assignee Group in the case of Assignee and the members of
the Assignor Group in the case of Assignor not to, seek indirect,
consequential, punitive or exemplary damages or damages for lost profits of any
kind with respect to any dispute arising under, related to, or in connection
with this Conveyance or breach hereof (except such damages that are payable to
a third party with respect to a third party claim for which any Person is
seeking indemnification hereunder).  The
Parties agree that no indemnified Person shall be entitled to any such damages
under this Conveyance.

 

(l)                                    Without limiting or enlarging the scope of the
indemnification, disclaimer and assumption obligations set forth in this
Conveyance, to the fullest extent permitted by Law, an indemnified Person shall
be entitled to indemnification hereunder in accordance with the terms hereof,
regardless of whether the indemnifiable loss giving rise to any such
indemnification obligation is the result of the sole, active, passive, concurrent
or comparative negligence, strict liability or other legal fault or violation
of any Law of or by any such indemnified Person.  Assignee and Assignor acknowledge that this
statement complies with the express negligence rule and is conspicuous.

 

(m)                              The Parties acknowledge and agree that the provisions of
any anti-indemnity statute relating to oilfield services and associated
activities shall not be applicable to this Conveyance or the transactions
contemplated hereby.

 

(n)                                 Assignor and Assignee acknowledge that the payment of
money, as limited by the terms of this Conveyance and/or the Agreement, shall
be adequate compensation for breach of any representation, warranty, covenant
or agreement contained herein or for any other claim arising in connection with
or with respect to the transactions contemplated in this Conveyance and/or the
Agreement.  As the payment of money shall
be adequate compensation, Assignee and Assignor waive any right to rescind this
Conveyance and/or the Agreement or any of the transactions contemplated by this
Conveyance and/or the Agreement.

 

(o)                                 Any demand for
indemnity hereunder shall be made by written notice, together with a written
description of any Claims asserted stating the nature and basis of such Claim
and, if ascertainable, the amount thereof. 
The Party upon whom notice is served shall have a period of twenty (20)
days after receipt of such notice within which to respond thereto or, in the
case of an underlying demand which requires a shorter time for response, then
within such shorter period as specified in such notice (the “Notice Period”).  If
the Party upon whom notice is served denies liability or fails to provide the
defense for any Claim, the other Party may defend or compromise the Claim as it
deems appropriate.  If the Party upon
whom notice is served accepts liability and responsibility for the defense of
any Claim, it shall so notify the other Party as soon as is practicable prior
to the expiration of the Notice Period and undertake the defense or compromise
of such Claim with counsel selected by the Party accepting such liability.  If the Party on whom notice is served
undertakes the defense or compromise of such Claim, the other Party shall be
entitled, at its own expense, to participate in such defense.  No compromise or

 

15

 

settlement of any Claim shall be made without reasonable notice to the
other Party, and without the prior written approval of the other Party, which
approval shall not be unreasonably withheld or delayed.  No such approval shall be withheld if such
compromise or settlement includes a general and complete release of the other
Party, its successors, assigns, Affiliates and their respective Representatives
in respect of the matter, with prejudice, and with no express or written
admission of liability on the part of the other Party, its Affiliates and their
respective Representatives, and is without cost or liability and has no
constraints on the future conduct of its or their respective businesses. Assignee
and Assignor acknowledge that their obligations to indemnify, defend and hold
the other Party and its Affiliates harmless under this Agreement include
obligations to pay the attorneys’ fees and court and arbitral costs incurred by
the other Party and its Affiliates in defending said Claims, regardless of the
merits of said Claims, where the Party to whom notice is served hereunder
denies liability or fails to provide the defense for any said Claim.  Assignor and Assignee shall have the right at
all times to participate, at their sole cost, in the preparation for any
defense, hearing or trial related to the indemnities set forth in this
Agreement, as well as the right to appear on their own behalf or to retain
separate counsel to represent them at any such hearing or trial.

 

VII.  MISCELLANEOUS PROVISIONS

 

(a)                                  Governing Law.  THIS CONVEYANCE SHALL BE GOVERNED, CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF LOUISIANA, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS OTHERWISE APPLICABLE TO SUCH
DETERMINATIONS.  IN THE EVENT OF ANY
DISPUTE WITH RESPECT TO THIS CONVEYANCE, THE RESOLUTION THEREOF SHALL BE
SUBJECT TO AND GOVERNED BY THE PROVISIONS OF SECTION 18.2 OF THE
AGREEMENT.

 

(b)                                 Captions.  The captions in this Conveyance are for convenience
only and shall not be considered a part of or affect the construction or
interpretation of any provision of this Conveyance.

 

(c)                                  Ejusdem Generis  The word “includes” and “including”
and their syntactical variants mean “includes, but not limited to” and its
corresponding syntactical variants.  The rule of
ejusdem generis may not be invoked
to restrict or limit the scope of the general term or phrase followed or
proceeded by an enumeration of particular examples.

 

(d)                                 No
Ratification.  Recitation of
or reference to any agreement or other instrument in this Conveyance, including
its exhibits, does not operate to ratify, confirm, revise, or reinstate the
agreement or instrument if it has previously lapsed or expired.

 

(e)                                  Not to be
Construed Against Drafter. 
Assignor and Assignee acknowledge that they have read this Conveyance,
have had the opportunity to review it with an attorney of their respective
choice, and have agreed to all its terms. 
Under these circumstances, Assignee and Assignor agree that the rule of
construction that a contract be construed against the drafter shall not be
applied in interpreting this Conveyance and that in the event of any ambiguity
in any of the terms or conditions of this Conveyance, including any exhibits
hereto and whether or not 

 

16

 

placed of record, such
ambiguity shall not be construed for or against any party hereto on the basis
that such party did or did not author the same.

 

(f)                                    Waiver of Jury
Trial.  ASSIGNOR AND ASSIGNEE DO
HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL
RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER LEGAL PROCEEDING BASED
UPON, ARISING OUT OF OR RELATING TO THIS CONVEYANCE, THE RIGHTS AND OBLIGATIONS
UNDER THIS CONVEYANCE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(g)                                 Express
Negligence Rule; Conspicuousness. ASSIGNOR AND ASSIGNEE
ACKNOWLEDGE THAT THE PROVISIONS IN THIS CONVEYANCE THAT ARE SET OUT IN ITALICS,
IN BOLD, UNDERLINE OR CAPITALS (OR ANY COMBINATION THEREOF) SATISFY THE
REQUIREMENTS FOR THE EXPRESS NEGLIGENCE RULE AND/OR ARE CONSPICUOUS.

 

(h)                                 Counterparts.  This Conveyance may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

(i)                                     Compliance with
Laws.  Assignee shall comply with all
current and subsequently amended applicable laws, ordinances, rules, and
regulations applicable to the Assets and shall promptly obtain and maintain all
permits required by governmental authorities in connection with the Assets.

 

(j)                                     Recognition.  Assignee will take all necessary steps to
ensure that Assignee is recognized as the owner of the Assets, as provided
herein, by all appropriate parties, including any regulatory commission, body
or board or jurisdiction.

 

(k)                                  Purchase and
Sale Agreement. This Conveyance is subject to the terms and
conditions of the Agreement.  The
Agreement remains in force and effect in accordance with its terms and is not
intended to be, and is not, merged into this Conveyance.  In the event of a conflict or inconsistency
between the terms and provisions of this Conveyance and the Agreement, the
terms of the Agreement shall control.

 

(l)                                     Further
Assurances.  Each of the
Parties will execute, acknowledge and deliver to the other such further
instruments, and take such other action, as may be reasonably requested in
order to more effectively assure to said Party all of the respective
properties, rights, titles, interests, estates, and privileges intended to be
assigned, delivered or inuring to the benefit of such Party in consummation of
the transactions contemplated hereby. 
Without limiting the foregoing, in the event Exhibits “A-1” through “A-5”
incorrectly or insufficiently describe or reference an interest intended to be
conveyed hereby, Assignor agrees to, within twenty (20) days of Assignor’s
receipt of Assignee’s written request, together with supporting documentation
satisfactory to Assignor, correct such Exhibit and/or execute an amended
assignment or other appropriate instruments necessary to transfer the property
or interest intended to be conveyed hereby to Assignee.

 

17

 

(m)                               Exhibits.  All exhibits and schedules attached to this
Conveyance, and the terms of those exhibits and schedules which are referred to
in this Conveyance, are made a part hereof and incorporated herein by
reference.  References in such exhibits
or schedules to instruments on file in the public records are made for all
purposes.  Unless provided otherwise, all
recording references in such exhibits or schedules are to the appropriate
records of the County/Parish or Counties/Parishes in which the Assets are
located.

 

(n)                                 Unenforceability.  If any provision of this Conveyance is found
by a court of competent jurisdiction to be invalid or unenforceable, that
provision will be deemed modified to the extent necessary to make it valid and
enforceable, and if it cannot be so modified, it shall be deemed deleted and
the remainder of the Conveyance shall continue and remain in full force and
effect.

 

(o)                                 Covenants
Running with the Land.  All
the terms, provisions, covenants, obligations, indemnities, representations,
warranties and conditions of this Conveyance shall be covenants running with
the land and shall inure to the benefit of and be binding upon, and shall be
enforceable by, the parties hereto and their respective successors and assigns,
subject to the requirements of this Section VII(o).  Any subsequent transfer of all or any part of
the Assets conveyed and assigned herein shall be made expressly subject to the
terms and provisions of this Conveyance and the Agreement.  In the event Assignee sells, assigns or
otherwise transfers all or a portion of the Assets, (i) this Conveyance
and the Agreement shall remain in effect between Assignee and Assignor as to
all the Assets regardless of such sale, assignment or transfer (and Assignee
shall not be thereby released, but shall remain obligated hereunder), (ii) Assignee
shall require its successors and assigns expressly to assume its duties,
responsibilities and obligations under this Conveyance and the Agreement, to
the extent related or applicable to the Assets or the portion thereof acquired
by them, but such assumption shall not release Assignee from any such assumed
obligations, and (iii) Assignee shall obtain Assignor’s prior written
consent.  Any sale, assignment or other
transfer of the Leases or other Assets shall also contain such other language
as is necessary to satisfy the terms and provisions of such Leases or the
agreements applicable to such Assets.

 

(p)                                 Notices.  Except as otherwise expressly provided
herein, all communications required or permitted under this Conveyance shall be
in writing and may be given by personal delivery, facsimile, US mail (postage
prepaid), or commercial delivery service, and any communication hereunder shall
be deemed to have been duly given and received when actually delivered to the
address of the Parties to be notified as set forth below and addressed as
follows:

 

	
  If to Assignor, as
  follows:

  	
   

  
	
   

  	
   

  
	
  NGS Sub. Corp.

  	
   

  
	
  2500 City West Blvd,
  Suite 1300

  	
   

  
	
  Houston, Texas 77042

  	
   

  
	
  Attention: Robert S. Herlin,
  President

  
	
  Facsimile:

  	
  713-935-0199

  
	
  Confirm:

  	
  713-935-0122

  
			

 

18

 

	
  With
  a copy to:

  	
   

  
	
   

  	
   

  
	
  Mark A. Mathews

  	
   

  
	
  Adams and Reese LLP

  	
   

  
	
  4400 One Houston Center

  	
   

  
	
  1221 McKinney

  	
   

  
	
  Houston, Texas 77010

  
	
  Facsimile:

  	
  713-652-5152

  
	
  Confirm:

  	
  713-652-5151

  
	
   

  
	
  If to Assignee, as
  follows:

  	
   

  
	
   

  	
   

  
	
  MWM Energy, LLC

  	
   

  
	
  114 30th Avenue South

  	
   

  
	
  Nashville, Tennessee 37212

  	
   

  
	
  Attention: Stephen F. Moore, CEO

  
	
  Facsimile:

  	
  615-340-5391

  
	
  Confirm:

  	
  615-340-5389

  
	
   

  
	
  With copies to:

  	
   

  
	
   

  	
   

  
	
  Gary
  Wadkins

  	
   

  
	
  5100
  Sweetbriar Lane, Suite 121

  	
   

  
	
  Tyler,
  Texas 75703

  
	
  Facsimile:

  	
  903-534-6005

  
	
  Confirm:

  	
  903-534-2944

  
	
   

  
	
  RR
  Advisors, LLC

  	
   

  
	
  21
  Waterway, Suite 300

  	
   

  
	
  The
  Woodlands, Texas 77380

  
	
  Attention:

  	
  W. Mark Meyer

  
	
  Facsimile:

  	
  214-871-8644

  
	
  Confirm:

  	
  832-287-8523

  
	
   

  	
   

  
	
  Charles
  Robert Bone

  
	
  Bone
  McAllester Norton PLLC

  
	
  511
  Union Street, Suite 1600

  
	
  Nashville,
  Tennessee 37219

  
	
  Facsimile:

  	
  615-238-6301

  
	
  Confirm:

  	
  615-238-6301

  
							

 

Provided,
however, that any notice required or permitted under this Conveyance will be
effective if given verbally within the time provided, so long as such verbal
notice is followed by written notice thereof in the manner provided herein
within twenty-four (24) hours following the end of such time period.  Any Party may, by written notice so delivered
to the other, change the address to which delivery shall thereafter be made.

 

19

 

(q)                                 Filing and
Recording of Assignments, etc.  Assignee shall be solely responsible for all
filings and the prompt recording of assignments and other documents related to
the transfer of the Assets as contemplated hereunder, including but not limited
to this Conveyance, and for all fees connected therewith, and Assignee shall
furnish certified copies of all such filed and/or recorded documents to
Assignor.  Assignor shall not be responsible
for any loss to Assignee because of Assignee’s failure to file or record
documents, including but not limited to this Conveyance, correctly or
promptly.  Assignee shall promptly file
all appropriate forms, declarations or bonds with federal and state agencies relative
to its assumption of operations and Assignor shall cooperate with Assignee in
connection with such filings.  Assignee
shall also comply with all notice provisions contained in the Leases or
otherwise applicable to the transfer of the Assets.

 

TO HAVE
AND TO HOLD unto Assignee, its successors and assigns, forever.

 

IN
WITNESS WHEREOF, the undersigned have executed this instrument on
the dates of the respective acknowledgments annexed hereto, but effective as of
the above-stated Effective Time.

 

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
  NGS SUB. CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
  MWM ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

20

 

STATE
OF TEXAS

 

COUNTY
OF HARRIS

 

On
this         day of March, 2008,
before me personally appeared                                              ,
to me personally known, who, being by me duly sworn, did say that he is the                                    
of NGS SUB. CORP., a Delaware corporation
and that the foregoing instrument was signed and delivered on behalf of such
corporation and that he acknowledged the instrument to be the free act and deed
of said corporation.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public in and for the State of Texas

  

 

 

STATE
OF TEXAS

 

COUNTY
OF HARRIS

 

On this           
day of March, 2008, before me personally came and appeared                                              to
me known, who, being by me duly sworn, did say that he is the                                  of
MWM Energy, LLC, a Texas limited
liability company, that he signed the foregoing instrument on behalf of said
limited liability company and as the free act and deed of said limited
liability company.

 

IN WITNESS WHEREOF, I hereunto set my hand and
official seal.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public in and for the State of Texas.

  

 

21

 

Exhibit “A-1”

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated effective February 1,
2008

by and between NGS Sub. Corp., as Assignor, and

MWM Energy, LLC, as Assignee

 

LEASES

 

Being the following oil and gas leases described in
that certain Act of Sale and Assignment dated September 2, 2004 from
Atkins Production, Inc., et al to NGS Sub. Corp., as recorded in Book 291,
Page 179 of the Conveyance Records of LaSalle Parish, Louisiana, more
fully described as follows, to-wit:

 

1.                                       Oil, gas and
mineral lease executed by William E. Zimmerman in favor of W.S. Ezell of date April 18,
1925, recorded at Oil and Gas Lease Book 3, Page 14, Registry 1333 of the
records of LaSalle Parish, Louisiana, insofar
as the said lease covers the following described property, to-wit: The
Northeast Quarter of the Southwest Quarter of Section 25, Township 10
North, Range 1 East, LaSalle Parish, Louisiana.

 

Lexington – Zimmerman #1 – 100’ North and 226’ West
from the SE Corner of NE/4 of Section 25, Township 10 North, Range 1 East,
LaSalle Parish, Louisiana

Lexington – Zimmerman #2 – 440’ North and 100’ West
from the SE Corner of NE/4 of SW/4 of Section 25, Township10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #3 – 669’ North and 115’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #4– 490’North and 290’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #5– 327’ North and 430’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #6– 100’ North and 630’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #7– 300’ North and 630’ West
from the SE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

 

1

 

Lexington – Zimmerman #8–
387’ North and 788’ West from the SE corner of NE/4 of SW/4 of Section 25,
Township 10 North, Range I East, LaSalle Parish, Louisiana

Lexington – Zimmerman #14– 505’ South and 1217’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #15– 345’ South and 1095’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #16– 100’ South and 1135’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #17– 258’ South and 552’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana

Lexington – Zimmerman #18– 245’ South and 300’ West
from the NE corner of NE/4 of SW/4 of Section 25, Township 10 North, Range
I East, LaSalle Parish, Louisiana

 

2.                                  (Hardtner “A”
Lease) Oil, gas and mineral lease executed by the Urania Lumber Company in
favor of Southern Carbon Company of date January 23, 1923, and recorded at
Oil and Gas Lease Book 2, Page 449, Registry 069784 of the records of
LaSalle Parish, Louisiana, insofar as the
said lease covers the following described property to-wit: The Southeast
Quarter of the Southeast Quarter of Section 7, Township 10 North, Range 2 East, LaSalle Parish,
Louisiana.

 

3.                                  (Hardtner “C”
Lease) Oil, gas and mineral lease executed by the Urania Lumber Company in
favor of S.M. Collins and A. Gibbons of date November 27, 1922, recorded
at Oil and Gas Lease Book 2, Page 18, Registry 06608 of the records of
LaSalle Parish, Louisiana, insofar as the
said lease covers the following described property, to-wit: That portion of the
Northwest Quarter of the Northeast Quarter of Section 18, Township 10
North, Range 2 East, lying south and east of the Iron Mountain Railway Company
railroad.

 

4.                                       (Urania  A,
B, C and Hardtner-Edenborn lease) Oil,
gas and mineral lease executed by Q.T. Hardtner, Jr., et al, in favor of
Ed Alexander of date October 26, 1972, recorded at Oil and Gas Lease Book
36, Page 392, Registry 91253 of the records of LaSalle Parish, Louisiana, insofar as the above described lease covers the
following described property, to-wit:

 

2

 

Township 10 North – Range 2
East

 

Section 19:

 

NE/4 of NW/4 of NE/4;

NW/4 of SE/4 of NW/4 of NE/4;

SE/4 of SE/4 of NW/4 of NE/4;

NW/4 of SW/4 of NE/4;

NW/4 of NE/4 of NW/4 of SE/4;

NE/4 of NE/4 of NW/4 of SE/4;

SE/4 of NE/4 of NW/4 of SE/4;

SW/4 of SW/4 of NW/4 of E/4;

S/2 of NW/4 of SE/4 of NE/4;

SW/4 of NE/4 of SE/4 of NE/4;

NE/4 of SW/4 of NE/4 of SE/4;

E/2 of SW/4 of NE/4;

SW/4 of SE/4 of NW/4 of NE/4;

NW/4 of SW/4 of NE/4 of SE/4;

NE/4 of SW/4 less the NW/4;

NW/4 of NW/4 of SE/4 of SW/4;

SW/4 of SE/4 of NW/4 of NE/4.

 

5.                                  (New Pendarvis
lease) Oil, gas and mineral lease from W.P. Pendarvis in favor of M.H. O’Hara,
W.B. Letson, W.T. Murray, and W.L. Fort, dated August 16, 1923, recorded
at Oil and Gas Lease Book 2, Page 74 of the records of LaSalle Parish,
Louisiana, insofar and only insofar as the
said lease covers and applies from the surface of the earth to 100’ below the
top of the Wilcox Group, and insofar and only insofar as the above described
lease covers and affects one acre in the form of a square around the following
wells:

 

Monroe Well Service – La. Petr. Assoc. - W.P.
Pendarvis No. I – SN 193828 – located 145’ N and 415’ W from South Quarter
Corner of Section 26, T10N – R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 2 – SN 193829 – located 345’ N and 415’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 3 – SN 193830 – located 545’ N and 415’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 4 – SN 193831 – located 745’ N and 415’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 5 – SN 193832 – located 790’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

 

3

 

Monroe Well Service – La.
Petr. Assoc. – W.P. Pendarvis No. 6 – SN 193833 – located 590’ N and 215’
W from South Quarter Corner of Section 26, T10N-R1 E, LaSalle Parish,
Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 7 – SN 193834 – located 390’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 8 – SN 193835 – located 190’ N and 215’ W from South Quarter
Corner of Section 26, T10N-R1 E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 10 – SN 193837 – located 435.14’ N and 15’ W from South
Quarter Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 11 – SN 193838 – located 635.14’ N and 15’ W from South
Quarter Corner of Section 26, T10N-R1E, LaSalle Parish, Louisiana.

Monroe Well Service – La. Petr. Assoc. – W.P.
Pendarvis No. 12 – SN 194758 – located 345’ N and 170’ E from the S/Q/C of
Sec. 26, T10N, R1E, LaSalle Parish, Louisiana.

Monroe Well Service – Beaver – Pendarvis No. I –
(SN 193250) – located 1218’ N and 369’ W from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service – Beaver – Pendarvis No. 2 –
(SN 193251) – located 1218’ N and 169’ W from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 3
- (SN 193252) - located 818’ N and 320’ E from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 4
- (SN 193253) - located 618’ N and 411’ E from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 6
- (SN 193255) - located 100’ N and 301’ E from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 7
- (SN 194757) - located 444’ N and 345’ E from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 9
- (SN 194759) - located 545’ N and 165’ E from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 10
- (SN 194760) - located 765’ N and 140’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 11
- (SN 194761) - located 970’ N and 175’ E from the S/Q/C of Sec. 26, T10N, R1E,
LaSalle Parish, Louisiana.

 

4

 

Monroe Well Service - Beaver
- Pendarvis No. 12 - (SN 194762) - located 870’ N and 30’ W from the S/Q/C
of Sec. 26, T10N, R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 13
- (SN 194763) - located 1085’ N and 8’ W from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

Monroe Well Service - Beaver - Pendarvis No. 14
- (SN 194764) - located 1020’ N and 200’ W from the S/Q/C of Sec. 26, T10N,
R1E, LaSalle Parish, Louisiana.

 

6.                                  (Old Pendarvis
lease) Oil, gas and mineral lease from W.P. Pendarvis in favor of M.H. O’Hara,
W.B. Letson, W.T. Murray, and W.L. Fort, dated August 16, 1923, recorded
at Oil and Gas Lease Book 2, Page 74 of the records of LaSalle Parish,
Louisiana, INSOFAR AND ONLY INSOFAR as said
lease covers and affects one acre in the form of a square around each of the
following wells:

 

Pendarvis No. 3 - SN 010281 - located 640’ N
and 712’ W from SE/C of SW/4 of SE/4 of Section 26, T1ON - R1E, LaSalle
Parish, Louisiana

 

Pendarvis No. 4 - SN 010331 - located 85’ N and
827’ W from SE/C of SW/4 of SE/4 of Section 26, T1ON - RIE, LaSalle
Parish, Louisiana

 

7.                                  Oil, gas and
mineral lease dated May 24, 1979, recorded in Oil and Gas Book 43, Page 750,
Registry 142221 of the records of LaSalle Parish, Louisiana, executed by
Missouri Pacific Railroad, Lessor, in favor of Charles B. Bice, Lessee; insofar and only insofar as said lease covers and
affects the following:

 

SSS Mopac No. 8, (SN 183703), located in the
center of Lot 10 Block 1 of the original Town of Tullos, being 356’ North and
17’ West from the East Quarter Corner of Section 26 Township 10 North,
Range 1 West.

 

8.                                 Oil, Gas and
Mineral Lease from Tremont Lumber Company to Jackie D. Nelson, dated May 20,
1968, recorded in Oil and Gas Book 31, Page 729, insofar as said lease covers the Southwest Quarter of
Northwest Quarter of Section 30, Township 10 North, Range 2 East, LaSalle
Parish, Louisiana, from the ground to the base of the Wilcox Formation.

 

9.                                 Oil, Gas and
Mineral Lease dated November 5, 1975, recorded November 11, 1975, in
Oil, Gas and Mineral Lease Record Book 67, Page 367, records of Winn
Parish, Louisiana, executed by C.S. Meredith, et al, Lessors, unto J.B.
Stafford, Lessee, covering and affecting:

 

5

 

Southeast Quarter of
Northwest Quarter (SE/4 of NW/4), Section 6, Township 10 North, Range 1
East, Winn Parish, Louisiana, and INSOFAR as
said lease covers and affects down to the base of the Wilcox, together with a
like interest in all oil and/or gas well located upon said lease.

 

10.                                 Oil, Gas and
Mineral Lease executed by C.S. Meredith, curator for Betty Lou Meredith to and
in favor of Atkins Production, Inc., a Louisiana Corporation, dated May 15,
1989, recorded in Conveyance Book 124 at Page 66, records of Winn Parish,
Louisiana covering and affecting the following described property, to-wit:

 

The Southeast Quarter of Northwest Quarter of Section 6,
Township 10 North, Range 1 East, Winn Parish, Louisiana.

 

11.                               Oil, Gas and
Mineral Lease executed by Monroe Well Service, Delaware to and in favor of SSM
Partnership, dated June 21, 1990, recorded in Conveyance Book 127 at Page 636
records of Winn Parish, Louisiana, INSOFAR
AND ONLY INSOFAR as said lease covers and affects one acre in the from of a
square (with the well in the center thereof) around each of the following 8
wells in the NW/4 of Section 5, Township 10 North, Range 1 East, Winn
Parish, Louisiana.

 

SSS Drilling Asso. Tremont No. 1 – SN 182799 –
located 940’ N and 100’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 2 – SN 182800 –
located 1021’ N and 451’ E from the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 3 – SN 182801 –
located 920’ N and 77’ E of the SW corner of the SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 4 – SN 182802 –
located 620’ N and 855’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 5 – SN 182803 –
located 294’ N and 895” E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 6 – SN 182804 –
located 104’ N and 821’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 7 – SN 182805 –
located 105’ N and 1020’ E of the SW corner of SW/4 of NW/4 of said Section 5

SSS Drilling Asso. Tremont No. 8 – SN 184928 –
located 100’N and 517’ E of the SW corner of SW/4 of NW/4 of said Section 5
being 8 acres situated in the South half of the NW/4 of Section 5, T1ON,
R1E.

 

12.                            (Old Universal
D lease) Oil, Gas and Mineral Lease dated October 22, 1943 from Urania
Lumber Company in Favor of M&W Oil Company, which lease is recorded in Book
11 at Page 284 of the conveyance records of LaSalle Parish, Louisiana and
covers:

 

6

 

One acre in the form of a
square (with the well as the center thereof) around each of the following three
wells; the SSM – Urania Lumber Company #D-1 Well, SN 115191, located 100 feet
South and 100 feet West of the Northeast Corner of the SE/4 of NE/4 of NE/4, Section 24,
TI ON – R1E; SSM – Urania Lumber Company #D-2 Well, SN 115192, located 100 feet
South and 540 feet West of the Northeast Corner of the NE/4 of NE/4 of said Section 24,
SSM-Urania Lumber Company D-3 well, SN 115468, being three acres situated in
the SE/4 of NE/4 of NE/4, Section 24 T1 ON – R1E, LaSalle Parish,
Louisiana, and INSOFAR as said lease covers a
depth down to 1600 feet

 

13.                            (Old Universal
C lease) Oil, Gas and Mineral Lease dated June 12, 1941 from the Urania Lumber
Company in favor of Willis C. Martin and M.E. Waldron, which lease is recorded
in Book 9 at Page 249 of the conveyance records of LaSalle Parish,
Louisiana and covers:

 

One acre in the form of a square (with the well as
the center thereof) around each of the following three wells; SSM – Urania
Lumber Company #C-2 Well, SN 115773, located 100 feet North and 100 feet East
of the Southwest corner of the NW/4 of NW/4 of NW/4 Section 19, T1ON –
R2E; SSM- Urania Lumber Company#C-5 Well, SN 115986, located 340 feet South and
100 feet East of the Northwest Corner of said Section 19, C-4 well, SN
116282, being three acres situated in the NW/4 of NW/4 of NW/4, Section 19,
T1ON – R2E, LaSalle Parish, Louisiana and INSOFAR
as said lease covers a depth down to 1600’

 

14.                            (Old Universal
A lease) Oil, Gas and Mineral lease dated October 22, 1943 from the Urania
Lumber Company in favor of M&W Oil Company, which lease is recorded in Book
11 at Page 284 of the conveyance records of LaSalle Parish, Louisiana and
covers:

 

One acre in the form of a square (with the well as
the center thereof) around each of the following wells; SSM – Urania Lumber
Company #A-2 Well, SN 114278, located 545 feet South and 545 feet West of the
Northeast Corner of Section 24, T1ON-R1E; SSM – Urania Lumber Company #A-2
Well SN 114442, located 300 feet West and 100 feet North of the Southeast
Corner of the NE/4 of NE/4 of NE/4 of said Section 24; SSM – Urania Lumber
Company 14A-5 Well SN 114534 located 345 feet South and 100 feet West of the
Northeast Corner of said Section 24, being three acres situated in the
NE/4 of NE/4 of NE/4, Section 24, TION-R1E, LaSalle Parish, Louisiana and INSOFAR as said lease covers a depth down to 1600 feet

 

15.                            (MDP Lease) Lease dated September 28, 1949, recorded in Oil
and Gas Lease Book 14, Page 127, records of LaSalle Parish, Louisiana,
executed by Walter Herbert,

 

7

 

Lessor, in favor of John T.
Cupples, Lessee, INSOFAR and ONLY INSOFAR as
said lease covers and effects:

 

Lot 3 of Block 2, Original Town of Tullos,
containing the Monroe Drilling Maxwell No. 1 well, Serial Number 179671,
Monroe Drilling Maxwell No. 2 well, SN 179672 located 174 feet North and
359 feet West from the East Quarter Corner of Section 26, Township 10
North, Range 1 East, LaSalle Parish, Louisiana, and Lot 5 of Block 2, Original
Town of Tullos, containing the Monroe Drilling Maxwell No. 2 well, SN
179672 North and 424 feet West from the East Quarter Corner of Section 26,
Township 10 North, Range 1 East, LaSalle Parish, Louisiana.

 

16.                            (Shemen SWD) Oil, Gas and Mineral Lease executed by Urania Lumber
Company in favor of Willis C. Martin and M.E. Waldron of date June 12,
1941, recorded at Oil and Gas Lease Book 9, Page 249 of the records of
LaSalle Parish, Louisiana, INSOFAR AND ONLY
INSOFAR as said lease covers a depth from the surface of the Earth down to a
depth of 1600 feet, and INSOFAR AND ONLY INSOFAR as the above described lease
covers and affects one acre in the form of a square around the following wells:

 

Urania Lumber Co., SWD #1, SN-971328, 100’ S of NE/C Section 24,
T10N, R1E

 

17.                           Oil, Gas and
Mineral Lease executed by the Urania Lumber Company in favor of M&W Oil
Company of date October 22, 1943, recorded at Oil and Gas Lease Book 11, Page 284
of the records of LaSalle Parish, Louisiana, INSOFAR
AND ONLY INSOFAR as said lease covers a depth from the surface of the Earth
down to a depth of 1600 feet, and INSOFAR AND ONLY INSOFAR as the above
described lease covers and affects one acre in the form of a square around the
following wells:

 

(Urania Lumber Co. – Shemen
lease)

 

Monroe Well Service – Shemen – Urania Lumber Co. No. 1
- (SN 191712) – located 362’ N and 507’ W from the SE/C of NE/4 of NE/4 of Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania Lumber Co. No. 2
- (SN 191713) – located 162’ N and 507’ W from the SE/C of NE/4 of NE/4 of Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania Lumber Co. No. 3
(SN 191714) – located 362’ N and 307’ W from the SE/C of NE/4 of NE/4 of Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

 

8

 

(Urania A – Shemen lease)

 

Monroe Well Service – Shemen
– Urania “A” No. 1 - (SN 191709) – located 559’ S and 78’ W from the NE/C Section 24,
T 10 N, R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania “A” No. 2
- (SN 191784) – located 369’ S and 351’ W from the NE/C Section 24, T 10
N, R 1 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania “A” No. 6
- (SN 191788) – located 131’ S and 100’ W from the NE/C Section 24, T 10
N, R 1 E, LaSalle Parish, Louisiana

 

18.                            Oil, Gas and
Mineral Lease executed by the Urania Lumber Company in favor of Willis C.
Martin and M.E. Waldron of date June 12, 1941, recorded at Oil and Gas
Lease Book 9, Page 249 of the records of LaSalle Parish, Louisiana, INSOFAR AND ONLY INSOFAR as said lease covers a depth
from the surface of the Earth down to a depth of 1600 feet, and INSOFAR AND
ONLY INSOFAR as the above described lease covers and affects one acre in the
form of a square around the following wells:

 

Monroe Well Service – Shemen – Urania “C” No. 1
(SN 191783) – located 131’ S and 100’ E from the NW/C Section 19, T 10 N,
R 2 E, LaSalle Parish, Louisiana

Monroe Well Service – Shemen – Urania “C” No 2 - (SN
191779) – located 359’ S and 302’ E from the NW/C Section 19, T 10 N, R 2
E, LaSalle Parish, Louisiana

 

19.                            (LPO) Oil, Gas
and Mineral Lease executed by Louisiana Pacific Corporation to and in favor of
Atkins Production, Inc., dated February 27, 1990, recorded under file
number 144131 in Conveyance Book 174, Page 631 of the records of LaSalle
Parish, Louisiana. Covering and affecting the following property as described:

 

Northeast Quarter of Northeast Quarter of Section 13,
Township 10 North, Range 1 East

 

20.                            (LPO) Oil, Gas
and Mineral Lease executed by William Dows Blake, et al, to and in favor of
Atkins Production, Inc., dated February 1, 1990, recorded under file
number 144130 in Conveyance Book 174, Page 628 of the records of LaSalle
Parish, Louisiana. Covering and affecting the following property as described:

 

Northeast Quarter of the Northeast Quarter (NE/4 of
NE/4), Section 13, Township 10 North, Range 1 East.

 

21.                            (Silver City
SWD) Urania E SWD #1, Serial
#971269, located 192’ South and 1210’ East from the Center of Section 19,
TI ON, R2E, LaSalle Parish, Louisiana, along with all related Salt Water
Disposal Equipment.

 

9

 

Hartner A SWD #1, Serial
#971237, located 374’ North and 998’ West from the SE corner of Section 7,
T1ON, R2E, LaSalle Parish, Louisiana.

 

22.                                 (WP
Pendarvis-La Petro lease) Pendarvis SWD Well #1, Serial #971428, located in Section 26,
T1ON, RIE, LaSalle Parish, Louisiana

 

23.                            (Miles Heirs
and Miles Essex leases) That certain oil, gas and mineral lease executed by
D.F. Miles, et al, in favor of Essex Drilling Co., Inc., dated February 14,
1984, as recorded in Oil and Gas Lease Book 61 at Page 302 of the records
of LaSalle Parish, Louisiana;

 

That certain oil, gas and mineral lease executed by
D.F. Miles, et al, in favor of Essex Drilling Co., Inc., dated March 22,
1984, as recorded in Oil and Gas Lease Book 61 at Page 405 of the records
of LaSalle Parish, Louisiana;

 

That certain oil, gas and mineral lease executed by
William J. Miles, et al, in favor of Essex Drilling Co., Inc., dated as
per acts recorded in Oil and Gas Lease Book 60, Pages 688 and 733; and Oil
and Gas Lease Book 61, Pages 39, 41, 43, 45, 47, 49, 51, 53, 55, 57, 185,
187, 189, 242 and 260 of the records of LaSalle Parish, Louisiana;

 

Insofar as said leases cover and
affect the following described lands in LaSalle Parish, Louisiana, to-wit:

 

Begin at the NE Corner of the NW/4 of NW/4 of Section 25,
T10N, R1E, and run thence South 0 degrees 12’ West 533.9 feet for the point of
beginning; run thence South 0 degrees 12’ West 376 feet; run thence north 87
degrees 41’ West 391.7 feet to an iron pipe in the center of the
Columbia-Alexandria Road; run thence South 38 degrees 28’ West 278.5 feet to an
iron pipe in the center of said road; run thence north 61 degrees 37’ West 29
feet to an iron pipe on an old rail fence line on the property line of F.J.
Miles; run north 16 degrees 44’ East 402 feet to an iron pipe; run thence north
51 degrees 58’ West 10 feet to an iron pipe; run thence North 16 degrees 44’
East 184 feet to an iron pipe on the line of the old Kendrick Gin Lot; run
thence North 89 degrees 25’ East 424.7 feet to the point of beginning.

 

That certain oil, gas and mineral lease dated August 25,
1983, from William Julious Miles to Essex Drilling Co., Inc., as recorded
in Oil and Gas Lease Book 60 at Page 688 of the records of LaSalle Parish,
Louisiana;

 

10

 

That
certain oil, gas and mineral lease dated September 6, 1983, from Edna
Miles Gatherer and Lillie Mae Miles Little to Essex Drilling Co., Inc., as
recorded in Oil and Gas Lease Book 60 at Page 733 of the records of
LaSalle Parish, Louisiana. Co-Lessors’ Agreements identified with the Edna
Miles Gatherer, et al. Lease as recorded in Oil and Gas Lease Book 61 at Pages 39,
41, 43, 45, 47, 49, 51, 53, 55, 57, 185, 187, 189, 242 and 260;

 

Insofar as said leases cover and affect the following
described lands in LaSalle Parish, Louisiana, to-wit:

 

A tract of land in the W/2 NW/4 of Section 25,
Township 10 North, Range 1 East, described as beginning at the SWC of lands
owned by W.T. Bass on the East side of the Missouri Pacific right-of-way,
running South along the right-of-way 224 yards, run thence East 106 yards, run
thence North 224 yards to the SEC of the W.T. Bass, run thence West 106 yards
to the point of beginning.

 

Oil,
gas and mineral lease dated August 16, 1983, from Frank Doughty, Chairman
of the Board for the LaSalle State Bank in Favor of Russell A, Flowers, husband
of Sally Ann Flowers, as recorded in Oil and Gas Lease Book 60 at Page 745
of the records of LaSalle Parish, Louisiana

 

Insofar as said lease covers the following described
lands in LaSalle Parish, Louisiana, to-wit:

 

Lots 1, 2, 3 and 4 of Block 2, and Lot 4 of Block 12
of the Urania Lumber Company Addition to the Town of Tullos, LaSalle Parish,
Louisiana, or 728 West and 803 North from SEC of SW/4 NW/4 of Section 25,
Township 10 North, Range I East, LaSalle Parish, Louisiana.

 

Being
the following Oil, Gas and Mineral Leases described in that certain Assignment
of Oil, Gas and Mineral Leases dated December 28, 2004 from Atkins
Production, Inc. to Natural Gas Systems Corporation, as recorded in
Conveyance Book 294, Page 455 of the records of LaSalle Parish, Louisiana,
more fully described as follows, to-wit:,

 

24.                                 Oil, Gas and Mineral lease
executed by Southern Heritage Bank in favor of Atkins Production, Inc.
dated October 8, 2004, recorded at Conveyance Book 292, Page 99 of
the records of LaSalle Parish, Louisiana

 

11

 

Oil,
Gas and Mineral Lease executed by the Town of Tullos in favor of Atkins
Production, Inc. as recorded December 9, 2004 at Conveyance Book 293,
Page 330 of the records of LaSalle Parish, Louisiana.

 

Insofar
as said leases cover and affect Lots 1, 2, 3 and 4 of Block 2 and Lot 4 of
Block 12 of the Urania Lumber Company Addition to the Town of Tullos, LaSalle
Parish, Louisiana.

 

Being
the following Oil, Gas and Mineral Leases described in that certain Assignment
of Oil, Gas and Mineral Leases dated June 22, 2005 from Atkins Production, Inc.
to NGS SUB. Corp. as recorded under Registry Number 191278 and in Conveyance
Book 149, Page 438 of the records of Winn Parish, Louisiana, more fully
described as follows, to-wit:

 

25.                                 Oil, Gas and Mineral Lease
dated May 23, 2005 from Cornelia Pray, et al to Atkins Production, Inc.,
as recorded in Conveyance Book 149, Page 424 of the records of Winn
Parish, Louisiana

 

26.                                 Oil, Gas and Mineral Lease
dated May 23, 2005 from Priscilla Long Bedgood to Atkins Production, Inc.,
as recorded in Conveyance Book 149, Page 428 of the records of Winn
Parish, Louisiana

 

27.                                 Oil, Gas and Mineral Lease
dated May 23, 2005 from Cynthia Brown Beauchamp to Atkins Production, Inc.,
as recorded in Conveyance Book 149, Page 432 of the records of Winn
Parish, Louisiana

 

28.                                 Oil, Gas and Mineral Lease
dated March 22, 2005 from Brandon R. Hawkins and Brandy Coburn Hawkins to
Atkins Production, Inc., as recorded in Conveyance Book 149, Page 436
of the records of Winn Parish, Louisiana

 

Being
the following oil and gas leases described in that certain Act of Sale and
Assignment dated February 1, 2005 from Chadco, Inc., et al to NGS
Sub. Corp., as recorded in Book 294, Page 333 of the Conveyance Records of
LaSalle Parish, Louisiana, more fully described as follows, to-wit:

 

12

 

29.                                 Oil, gas and
mineral lease executed by William C. Pringle, et al, in favor of E.R. Waller
dated August 26, 1936, recorded in Oil and Gas Lease Book W, Page 449-A,
Registry #23478, records of LaSalle Parish, Louisiana, covering lands in Lot
15, Section 26, Township 10 North, Range I East, LaSalle Parish,
Louisiana.

 

30.                                 Oil, gas and
mineral lease executed by Russell A. Flowers, et ux, in favor of Sara
Productions, dated June 6, 1995, recorded in Conveyance Book 220, Page 252,
Registry #159489, records of
LaSalle Parish, Louisiana, covering the following described property, to-wit:

 

Section 26, Township 10 North, Range 1 East

 

Lot 4, Block 10, original Town of Tullos, in the
NE/4 of SE/4.

Lot 1 of Russell Flowers Subdivision being a
re-subdivision of Lot 3 of Block 13 of the Original Town of Tullos, in the NE/4
of SE/4.

Lot 2 of the Russell Flowers Subdivision being a
re-subdivision of Lot 3 of Block 13 of the original Town of Tullos, in the NE/4
of the SE/4.

Lot 3 of the Russell Flowers Subdivision being a
re-subdivision of Lot 3 of Block 13 of the original Town of Tullos, in the NE/4
of the SE/4.

Lot 4 of the Russell Flowers Subdivision, in the
SE/4 of the SE/4.

Lot 5 of the Russell Flowers Subdivision, in the
SE/4 of the SE/4.

 

31.                            Oil, gas and
mineral lease executed by The Urania Lumber Co. Ltd., in favor of Southern
Carbon Company, dated January 23, 1923, recorded in Oil and Gas Lease Book
2, Page 449, Registry #6978, records of LaSalle Parish, Louisiana, as the
said lease covers the following described property, to-wit:

 

The specific acreage in the SE/4 of SE/4, of Section 7,
Township 10 North, Range 2 East, LaSalle Parish, Louisiana.

 

INSOFAR AND ONLY INSOFAR AS SAID
LEASE COVERS ONE (1) ACRE IN A SQUARE SURROUNDING THE FOLLOWING WELLS,
TO-WIT:

 

Hardtner A No. 3, SN186514; located 270’ N &
516’W from SE corner of Sec. 7

Hardtner A No. 4, SN186515; located 105’ N &
630’ W from SE corner of Sec. 7

Hardtner A No. 5, SN186516; located 320’ N &
305’ W from SE corner of Sec. 7

Hardtner A No. 6, SN186517; located 105’ N &
206’ W from SE corner of Sec. 7

Hardtner A No. 11, SN187940; located 670’ N &
500’ W from SE corner of Sec.7

Hardtner A No. 12, SN187871; located 670’ N &
702’W from SE corner of Sec. 7

Hardtner A No. 13, SN187872 located 275’ N &
740’ W from SE corner of Sec 7.

Hardtner A No. 15, SN187874; located 862’ N &
452’ W from SE corner of Sec.7

Hardtner A No. 16, SN187875 located 618’ N &
897’ W from SE corner of Sec. 7

Hardtner A No. 17, SN187876; loc. 395’ N &
908’ W from SE corner of Sec 7

 

13

 

Hardtner A No. 18, SN187877; loc. 217’ N &
1001’ W from SE corner of Sec. 7

Hardtner A No. 28, SN188202; loc. 100’ N &
1167’ W from SE corner of Sec. 7

 

32.                                 Oil, gas and
mineral lease executed by Willie Green Bradford, et ux, in favor of Russell A.
Flowers, dated May 18, 1981, recorded in Oil and Gas Lease Book 48, Page 703,
Registry #114379, records of LaSalle Parish, Louisiana,
covering lands in the SE/4 of the SE/4 of Section 26, Township 10 North,
Range 1 East, LaSalle Parish, Louisiana.

 

33.                                 Oil, gas and
mineral lease executed by Board of Levee Commissioners Tensas Basin Levee
District, in favor of Max W. Maxwell dba M &  M Oil Properties, dated May 19, 1969, recorded in Oil
and Gas Lease Book 32, Page 683, Registry #8289, records of LaSalle
Parish, Louisiana, the following described property located in the NW/4 of
NE/4, of Section 26, Township 10 North, Range 1 East, LaSalle Parish,
Louisiana,

 

INSOFAR AND ONLY INSOFAR AS the
said lease covers and affects one (1) acre in the form of a square (with
the well as the center hereof) around the following drillsite locations:

 

Tensas Basin Levee District No. 1, SN134605;
located 345’ S 380’ E of NW corner of NW/4 of NE/4 of Section 26,
Township10 North, Range I East, LaSalle Parish, Louisiana.

Tensas Basin Levee District No. 3, SN 178732;
located 120’ S & 180’ E from NW corner of Section 26, Township10
North, Range 1 East, LaSalle Parish, Louisiana.

Tensas Basin Levee District SWD No.2, SN990623;
located 196’ South & 113’ East of NW/C of the NW/4 of NE/4 of Section 26,
Township 10 North, Range 1 East, LaSalle Parish, Louisiana.

 

34.                     Oil, gas and mineral lease
executed by Tremont Lumber Company, in favor of Arkansas Fuel Oil Company,
dated May 1, 1947, recorded in Oil and Gas Lease Book 13, Page 88,
records of LaSalle Parish, Louisiana,

 

INSOFAR AND ONLY INSOFAR as the
following wells on a sub-lease 100’ in a circle around each:

 

Tremont B. No. 1, SN187623; located 189.9’ FNL &
892.8’ FEL of SW/4 of NE/4 of Section 25, Township 10 North, Range 1,
East, LaSalle Parish, La.

Tremont B. No. 3, SN187822; located 307.2’ FNL &
27.1’ FEL of SW/4 of NE/4 of Section 25, Township 10 North, Range 1, East,
LaSalle Parish, LaTremont B. No. 4, SN187824; located 404’ FNL &
405.2’ FEL of SW/4 of NE/4 of Section 25, Township 10 North, Range 1,
East, LaSalle Parish, La.

 

14

 

Tremont B. No. 5, SN188181; located 1131’ FEL &
604’ FNL of SE/4 of NE/4 of Section 25, Township 10 North, Range 1, East,
LaSalle Parish, La.

Tremont B. No. 6, SN189535; located 678.8’ NWL &
420.2’ FSL of SW/4 of NE/4 of Section 25, Township 10 North, Range 1,
East, LaSalle Parish, La.

Tremont B. SWD No. 1, SN187820; located 193.3’
FNL & 889.3’ FEL of SW/4 of NE/4 of Section 25, Township 10
North, Range 1, East, LaSalle Parish, La.

Tremont B. No. 7, SN189696; located 1276’ FEL &
1022’ FNL of SE/4 of NE/4 of Section 25, Township 10 North, Range 1, East,
LaSalle Parish, La.

Tremont B. No. 8, SN 191205; located 443’ FEL &
109’ FNL of SE/4 of NE/4 of Section 25, Township 10 North, Range 1, East,
LaSalle Parish, La.

Tremont B. No. 9, SN 191207; located 202.1’ FNL &
355.4’ FWL of SE/4 of NE/4 of Section 25, Township 10 North, Range 1,
East, LaSalle Parish, La.

Tremont B. No. 10, SN178262; located 656’ North &
471’ East of SW/C of NE/4 of Section 25, Township 10 North, Range 1, East,
LaSalle Parish, La.

Tremont B. No. 12, SN182291; located 382’ South
and 100’ West of NE/C of Section 25, Township 10 North, Range 1, East,
LaSalle Parish, La.

Tremont B. No. 13, SN182292; located 321’ South &
356’ West of NE/C of Section 25, Township 10 North, Range 1, East, LaSalle
Parish, La.

Tremont B. No. 14, SN 182295; located 383’
South & 546’ West of NE/C of Section 25, Township 10 North, Range
1, East, LaSalle Parish, La.

Tremont B. No. 15, SN182296; located 100’ South &
200’ East of NW/C of NE/4 of NE/4, of Section 25, Township 10 North, Range
1, East, LaSalle Parish, La

Tremont B. No. 16, SN183884; located 378’ South &
749’ West of NE/C of Section 25, Township 10 North, Range 1, East, LaSalle
Parish, La.

Tremont B. No. 17, SN183885; located 210’ South &
863’ West of NE/C of Section 25, Township 10 North, Range 1, East, LaSalle
Parish, La.

 

35.                                 Oil, gas and
mineral lease executed by Roberta Stewart Taylor, in favor of Russell Flowers,
dated October 7, 1991, recorded in Conveyance Book 190, Page 195,
Registry #149263 records of LaSalle Parish, Louisiana covering lands located in
Lot 15 of the original Town of Tullos, Section 26, Township 10 North,
Range 1 East, LaSalle Parish, Louisiana.

 

36.                               Oil, gas and
mineral lease executed by Southern Heritage Bank, in favor of Marvin Douglas
Murphrey, dated October 18, 1993, recorded in Conveyance Book 206, Page 280,
Registry #154486, records of LaSalle Parish, Louisiana, covering Lots 2, 3 and
4 of Block 6 of the Russell addition to Tullos, Louisiana, and a strip of land
adjacent thereto located in the SE/C of Section 26, Township 10 North,
Range 1 East, LaSalle Parish, Louisiana.

 

15

 

37.                               Oil, gas and
mineral lease executed by Anadarko Land Corp., et al, in favor of Chadco, Inc.,
dated February 1, 2003, recorded in Conveyance Book 278, Page 318,
Registry #187644, records of LaSalle Parish, Louisiana, covering the following
described property, to-wit:

 

Township 10 North, Range 1
East, Section 26:

 

Lots 8, 10 and 12 of Block 17, Town of Tullos,
LaSalle Parish, Louisiana. Lots 2, 6, 8 and 10 of Block 20, Town of Tullos,
LaSalle Parish, Louisiana.

 

38.                               Oil, gas and
mineral lease executed by Lane Capps, et al, in favor of Chadco, Inc., dated
May 28, 2004, recorded in Oil and Gas Lease Book 289, Page 496,
Registry #193577, records of LaSalle Parish, Louisiana, covering the following
described property, to-wit: One (1) acre, more or less, located in the
original Town of Tullos, situated in Section 25, Township 10 North, Range
1 East, LaSalle Parish, Louisiana.

 

39.                               Oil, gas and
mineral lease executed by Tremont Lumber Company, in favor of Arthur W. Sour, Jr.,
dated May 31, 1966, recorded in Oil and Gas Lease Book 28, Page 553,
Registry #75957, records of LaSalle Parish, Louisiana, covering lands in Section 26,
Township 10 North, Range 1 East, LaSalle Parish, Louisiana,

 

INSOFAR AND ONLY INSOFAR as the
said lease covers the following described property, to-wit:

 

Moore & Munger Hydrocarbons, Inc.,
S.T. Holland #1 and S.T. Holland #2, Lot 10, Block 6, Tremont Addition to
Tullos, LA., as located in the SE/4 of the NW/4 of Section 25, Town 10
North, Range 1 East, LaSalle Parish, Louisiana.

 

40.                                 Oil, gas and
mineral lease executed by Richard L. Walsh, et ux, in favor of Walter W. Heard, Jr.,
dated September 8, 1958, recorded in Oil and Gas Lease Book 20, Page 216,
Registry #59119, records of LaSalle Parish, Louisiana, covering three (3) lots
located in the original Town of Tullos, Louisiana, located in the SW/4 of the
NE/4 of Section 26 Township 10 North, Range 1 East, LaSalle Parish,
Louisiana.

 

41.                                 Oil, gas and
mineral lease executed by Johnny C. Maxwell, Jr., in favor of Len White,
dated June 24, 1992, recorded in Conveyance Book 194, Page 155,
Registry 150724, records of LaSalle Parish, Louisiana, covering Lots 1, 2 and 3
of the Urania Lumber Company Addition to the Town of Tullos, LaSalle Parish,
Louisiana

 

16

 

42.                                 Oil, gas and
mineral lease executed by Thelma W. Allbritton, et al, in favor of Chadco, Inc.,
dated June 23, 1993, recorded in Conveyance Book 204, Page 151,
Registry #153940,  records of LaSalle Parish, Louisiana; and

 

Oil, gas and mineral lease executed by Gerald J.
Wright in favor of Chadco, Inc., dated June 29, 1993, recorded in
Conveyance Book 204, Page 156, Registry #153941, records of LaSalle
Parish, Louisiana; and

 

Oil, gas and mineral lease executed by
Herman.Wright, in favor of Chadco. Inc., dated July 20, 1993, recorded in
Conveyance Book 204, Page 160, Registry 4153942, records of LaSalle Parish, Louisiana;

 

Said leases covering three (3) lots located in
the Town of Tullos, in the SE/4 of the SE/4 of Section 26, Township 10
North, Range 1 East.

 

43.                                 Oil, gas and
mineral lease executed by Lacey Leon Tullos, in favor of Milton Galoob, dated September 10,
1979, recorded in Oil and Gas Lease Book 44, Page 401, Registry #109233, records of LaSalle Parish, Louisiana,
covering lands in Section 26, Township 10 North, Range 1 East.

 

44.                                 Oil, gas and
mineral lease executed by Tensas Basin Levee District, in favor of Alfred S.
Black, Trustee, dated June 14, 1955, recorded in Oil and Gas Lease Book
17, Page 574, Registry #53780, records of LaSalle Parish, Louisiana,
covering Lot 2 or Tract. NW1/4 of NE/4 of Section 26, Township 10 North,
Range 1 East, containing 28.54 acres, more or less, situated in LaSalle Parish,
Louisiana.

 

45.                                 Oil, gas and
mineral lease executed by Thomas Clarence Long, in favor of M.E. McGaugh, dated
June 17, 1958, recorded in Oil and Gas Lease Book 20, Page 23,
Registry #58398, records of LaSalle Parish, Louisiana, and Correction to
Description, executed by Thomas Clarence Long, in favor of M.E. McGaugh, dated March 11,
1959, recorded in Oil and Gas Lease Book 20, Page 480; Registry #60095,
covering lands in the original Town of Tullos, located in Section 26,
Township 10 North, Range 1 East.

 

46.                                 Oil, gas and
mineral lease executed by Missouri Pacific Railroad Company, in favor of Warren
B. Melton, dated December 20, 1960, recorded in Oil and Gas Lease Book 22,
Page 195, Registry #63943, records of LaSalle Parish, Louisiana, covering
Lots 2, 4, 6, 10 and 12; Block 18, Lots 2, 6, 8 and 10; Block 20 and all of
Fractional Block H, all in the Townsite of Tullos, located in Section 26,
Township 10 North, Range 1 East. LaSalle Parish, Louisiana.

 

17

 

47.                                 Oil, gas and
mineral lease executed by Alene Atnip Holmes, in favor of ZAD, Inc., dated
May 22, 1998, recorded in Conveyance Book 244, Page 99, Registry
#169627, records of LaSalle Parish, Louisiana, covering lands in Lots 11 and
12, Block 1, Holmes and Adams addition to Town of Tullos and Lot A of original
Town of Tullos as per plat in Conveyance Book M, Page 166, LaSalle Parish,
Louisiana, Section 25, Township 10 North, Range 1 East.

 

48.                                 Oil, gas and
mineral lease executed by A.P. Kyle, et al, in favor of J.L. Ferguson, dated February 23,
1926, recorded in Oil and Gas Lease Book 3, Page 175, Registry #3407,
records of LaSalle Parish, Louisiana, covering lands in Lot Eight (8) of
Block one (1) of Holmes and Adams Addition to the Town of Tullos in
LaSalle Parish, Louisiana, according to the new plat of said Town of Tullos, in
Section 25, Township 10 North, Range 1 East.

 

49.                                 Oil, gas and
mineral lease executed by Georgia-Pacific Corporation, in favor of Ed
Alexander, dated September 13, 1972, recorded in Oil and Gas Lease Book
36, Page 388, Registry #91252, records of LaSalle Parish, Louisiana; and

 

Oil, gas and mineral lease executed by Q.T. Hardtner, Jr.,
Agent, et al, in favor of Ed Alexander, dated October 26, 1972, recorded
in Oil and Gas Lease Book 36, Page 392, Registry #91253, records of
LaSalle Parish, Louisiana,

 

Both of the above leases covering lands all in Section 19
Township 10 North, Range 2 East,

 

INSOFAR AND ONLY INSOFAR AS SAID
LEASES COVER AND AFFECT ONE (1) ACRE IN THE FORM OF A SQUARE AROUND
THE FOLLOWING WELLS, TO-WIT:

 

LTF-Urania No. 6, SN 193625; located 1606’ S &
495’ E from NW/C of NE/4 of Section 19, T10N, R2E.

 

50.                                 Oil, gas and
mineral lease executed by Harry R. Brinkley, et al, in favor of C.A. McCartney,
dated September 15, 1980, recorded in Oil and Gas Lease Book 96, Page 236,
Registry #115261, records of Winn Parish, Louisiana; and

 

Oil, gas and mineral lease executed by Harry R.
Brinkley, et al, in favor of C.A. McCartney, dated April 20, 1981,
recorded in Oil and Gas Lease Book 97, Page 20, Registry #115676,
records of Winn Parish, Louisiana; and Oil, gas and mineral lease
executed by Harry R. Brinkley, et al, in favor of Chadco, Inc., 

 

18

 

dated January 15, 1990, recorded in Oil and Gas
Lease Book 127, Page 90, Registry #145329, records of Winn Parish,
Louisiana;

 

All of the above leases covering lands located in
the NW/4 of NE/4 of Section 30. Township 11 North, Range I West, Winn
Parish, Louisiana.

 

INSOFAR AND ONLY INSOFAR AS said
leases cover and affect one (1) acre in the form of a square (with the
well in the center thereof) around each of the following 8 wells:

 

Brinkley Heirs LTF No. 1, SN186324; located 100’
N & 100’ E from SW/C of NW/4 of NW/4 of NE/4, Section 30, T11N,
R1W.

Brinkley Heirs LTF SWD No. 2, SN186325; located
300’ N & 100’ E from SW/C of NW/4 of NW/4 of NE/4, Section 30,
T11N RI W.

Brinkley Heirs LTF No. 3, SN186326; located 500’
N & 100’ E from SW/C of NW/4 of NW/4 of NE/4, Section 30, T11N,
RI W.

Brinkley Heirs LTF No. 4, SN 186327; located
375’ N & 375’ W from SE/C of NW/4 of NW/4 of NE/4, Section 30, T1
IN, RI W.

Brinkley Heirs LTF No. 5, SN186328; located 100’
N & 150’ W from SE/C of NW/4 of NW/4 of NE/4, Section 30, T11N,
R1W.

Brinkley Heirs LTF No. 6, SN186329; located 300’
N & 150’ W from SE/C of NW/4 of NW/4 of NE/4, Section 30, T11N,
R1W.

Brinkley Heirs LTF No. 7, SN187021; located 500’
N & 488’ E from SW/C of NW/4 of NW/4 of NE/4, Section 30, TI 1N,
R1W.

Brinkley Heirs LTF No. 8, SN187179; located 560’
N & 294’ E from SW/C of NW/4 of NW/4 of NE/4, Section 30, T11N,
RI W.

 

51.                                 Oil, gas and
mineral lease executed by Mrs. Bonnie Bartley, et ux, in favor of W.O.
Weaver, dated November 12, 1959, recorded in Oil and Gas Lease Book 18, Page 67,
Registry #6731, records of Winn Parish, Louisiana, covering lands located in
the SE/4 of SE/4 of Section 20, Township 11 North, Range 1 West, Winn
Parish, Louisiana.

 

52.                                 Oil, gas and
mineral lease executed by Judge Jones, in favor of W.O. Weaver, dated June 30,
1959, recorded in Oil and Gas Lease Book 17, Page 299, Registry #6582,
records of Winn Parish, Louisiana, covering the NE/4 of SE/4 of Section 20,
Township 11 North, Range 1 West, Winn Parish, Louisiana.

 

53.                                 Oil, gas and
mineral lease executed by Jewel Taylor, et al, in favor of Frontier, Inc.,
dated September 20, 1990, recorded in Oil and Gas Lease Book 128, Page 498,
Registry #147837, records of Winn Parish, Louisiana, covering all that portion
of the N 1/3 of NE/4 of SE/4 of Section 20, T1N, R1W, Winn Parish,
Louisiana.

 

19

 

Lease acquired by NGS SUB
Corporation

 

54.                               Oil and Gas
Lease dated December 2, 2005 from the LP Mineral Owners to NGS SSUB.
Corporation, as recorded in Conveyance Book 300, Page 708 of the records
of LaSalle Parish, Louisiana.

 

55.                                 Oil and Gas
Lease dated December 5, 2005 from William D. Blake, as Agent and Attorney-In-Fact
for Henry E. Blake, et al, to NGS Sub Corporation, as recorded in Conveyance
Book 300, Page 713 of the records of LaSalle Parish, Louisiana.

 

56.                                 Oil, Gas and Mineral Lease
dated December 1, 2005 from Lane Capps and Sherry Capps Cannon to NGS SUB.
Corp., as recorded in Conveyance Book 300, Page 39 of the records of
LaSalle Parish, Louisiana.

 

20

 

Exhibit “A-2”

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated
effective February 1, 2008

by and between NGS Sub. Corp., as Assignor,
and

MWM Energy, LLC, as Assignee

 

WELLS

 

	
   

  	
   

  	
  Serial

  	
   

  	
  LUW

  	
   

  	
   

  	
   

  	
  Well

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  No.

  	
   

  	
  Code

  	
   

  	
  Well Name

  	
   

  	
  No.

  	
   

  	
  WI

  	
   

  	
  NRI

  	
   

  	
  Comments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Ag Oil - Capps Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  173393

  	
   

  	
  037481

  	
   

  	
  Ag
  Oil - Capps

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83333

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  173394

  	
   

  	
  037481

  	
   

  	
  Ag
  Oil - Capps

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.83333

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Ag-Oil MOPAC Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  166837

  	
   

  	
  037288

  	
   

  	
  Ag-Oil
  MOPAC

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  misnamed in Sonris as Bice-Mopac #1

  	
   

  
	
  4

  	
   

  	
  171065

  	
   

  	
  037288

  	
   

  	
  Ag-Oil
  MOPAC

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  171066

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  171067

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  171069

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  171070

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  171068

  	
   

  	
  037288

  	
   

  	
  Ag-Oil-MOPAC
  SWD

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Atkins B Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  159038

  	
   

  	
  037633

  	
   

  	
  Atkins
  B

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.81250

  	
   

  	
   

  	
   

  

 

1

 

	
  11

  	
   

  	
  160179

  	
   

  	
  037633

  	
   

  	
  Atkins
  B

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.81250

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B Bartley Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  77088

  	
   

  	
  010224

  	
   

  	
  B
  Bartley

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  77089

  	
   

  	
  010224

  	
   

  	
  B
  Bartley

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  83034

  	
   

  	
  010224

  	
   

  	
  B
  Bartley

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  89960

  	
   

  	
  010224

  	
   

  	
  B
  Bartley

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  125107

  	
   

  	
  010224

  	
   

  	
  B
  Bartley

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bradford Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  175684

  	
   

  	
  037857

  	
   

  	
  Bradford

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  182138

  	
   

  	
  037857

  	
   

  	
  Bradford

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  199462

  	
   

  	
  037857

  	
   

  	
  Bradford

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  990616

  	
   

  	
  037857

  	
   

  	
  Bradford
  SWD

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Brinkley Heirs LTF Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  186324

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  186326

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  186327

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  186328

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  186329

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  187021

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  187179

  	
   

  	
  040080

  	
   

  	
  Brinkley
  Heirs LTF

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  186325

  	
   

  	
   

  	
   

  	
  Brinkley
  Heirs LTF SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  173495

  	
   

  	
  037681

  	
   

  	
  Brinkley
  Heirs N

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Flowers, Russell Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  197897

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  197898

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  199021

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

2

 

	
  33

  	
   

  	
  199022

  	
   

  	
  041921

  	
   

  	
  Flowers,
  Russell

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
  Sonris records not updated from prior transfers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gates Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  168176

  	
   

  	
  036775

  	
   

  	
  Gates

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  35

  	
   

  	
  168341

  	
   

  	
   

  	
   

  	
  Gates
  SWD

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hardtner (Atkins) A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  990145

  	
   

  	
  007087

  	
   

  	
  Hardtner
  A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  37

  	
   

  	
  990146

  	
   

  	
  007087

  	
   

  	
  Hardtner
  A

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  38

  	
   

  	
  149552

  	
   

  	
  007087

  	
   

  	
  Hardtner
  A

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  153621

  	
   

  	
  007087

  	
   

  	
  Hardtner
  A

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  971237

  	
   

  	
  007087

  	
   

  	
  Hardtner
  A SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hartdner (Atkins) C Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  19746

  	
   

  	
  007089

  	
   

  	
  Hardtner
  C

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  107472

  	
   

  	
  007089

  	
   

  	
  Hardtner
  C

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  153622

  	
   

  	
  007089

  	
   

  	
  Hardtner
  C

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Hardtner (Chadco) A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  186438

  	
   

  	
  040289

  	
   

  	
  Hardtner
  A

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
  Sonris records not updated for transfer from Atkins/Phoenix

  	
   

  
	
  45

  	
   

  	
  186514

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  186515

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  186516

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  186517

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  187871

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  187872

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  

 

3

 

	
  51

  	
   

  	
  187873

  	
   

  	
  040289

  	
   

  	
  Hardtner
  A

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
  Sonris records not updated for transfer from Atkins/Phoenix

  	
   

  
	
  52

  	
   

  	
  187875

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  187876

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  187877

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  18

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  188134

  	
   

  	
  040289

  	
   

  	
  Hardtner
  A

  	
   

  	
  20

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
  Sonris records not updated for transfer from Atkins/Phoenix

  	
   

  
	
  56

  	
   

  	
  188202

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  28

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  187940

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A

  	
   

  	
  29

  	
   

  	
  1.000

  	
   

  	
  0.828125

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  187874

  	
   

  	
  7087

  	
   

  	
  Hardtner
  A 15 SWD

  	
   

  	
  15

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Holland, ST Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  186412

  	
   

  	
  040355

  	
   

  	
  Holland,
  ST

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  187825

  	
   

  	
  040355

  	
   

  	
  Holland,
  ST

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  61

  	
   

  	
  971390

  	
   

  	
   

  	
   

  	
  SSM
  SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Holmes, WL Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  62

  	
   

  	
  154696

  	
   

  	
  034641

  	
   

  	
  Holmes,
  WL

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  63

  	
   

  	
  154738

  	
   

  	
  034641

  	
   

  	
  Holmes,
  WL

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  64

  	
   

  	
  154737

  	
   

  	
  034641

  	
   

  	
  Holmes,
  WL

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J Jones Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  65

  	
   

  	
  77712

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  66

  	
   

  	
  77885

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  67

  	
   

  	
  80893

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  68

  	
   

  	
  80331

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  69

  	
   

  	
  82292

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  70

  	
   

  	
  82778

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  71

  	
   

  	
  83229

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  72

  	
   

  	
  204917

  	
   

  	
  010223

  	
   

  	
  J
  Jones

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.82639

  	
   

  	
   

  	
   

  
	
  73

  	
   

  	
  972679

  	
   

  	
  010223

  	
   

  	
  J
  Jones SWD

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J Jones A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74

  	
   

  	
  212912

  	
   

  	
  046565

  	
   

  	
  J
  Jones A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  75

  	
   

  	
  212913

  	
   

  	
  046565

  	
   

  	
  J
  Jones A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  76

  	
   

  	
  83979

  	
   

  	
  046565

  	
   

  	
  J
  Jones A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kyle-Davis Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  77

  	
   

  	
  9400

  	
   

  	
  007688

  	
   

  	
  Kyle-Davis

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  La Pacific O Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  78

  	
   

  	
  154412

  	
   

  	
  039847

  	
   

  	
  LA
  PACIFIC O

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  79

  	
   

  	
  156342

  	
   

  	
  039847

  	
   

  	
  LA
  PACIFIC O

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  80

  	
   

  	
  155943

  	
   

  	
  039847

  	
   

  	
  LA
  PACIFIC O

  	
   

  	
  2D

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  81

  	
   

  	
  156839

  	
   

  	
  039847

  	
   

  	
  LA
  PACIFIC O SWD

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  La Pacific Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  82

  	
   

  	
  150510

  	
   

  	
  034425

  	
   

  	
  La
  Pacific

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  83

  	
   

  	
  150771

  	
   

  	
  034425

  	
   

  	
  La
  Pacific

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  84

  	
   

  	
  154606

  	
   

  	
  034425

  	
   

  	
  La
  Pacific

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  154605

  	
   

  	
  034425

  	
   

  	
  La
  Pacific SWD

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  86

  	
   

  	
  009597

  	
   

  	
  009751

  	
   

  	
  Urania
  Voltz

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  87

  	
   

  	
  059103

  	
   

  	
  009751

  	
   

  	
  Urania
  Voltz

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  88

  	
   

  	
  148110

  	
   

  	
  009751

  	
   

  	
  Urania
  Voltz

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  89

  	
   

  	
  175370

  	
   

  	
  009751

  	
   

  	
  Urania
  Voltz

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  90

  	
   

  	
  175371

  	
   

  	
  009751

  	
   

  	
  Urania
  Voltz

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  91

  	
   

  	
  096703

  	
   

  	
  009751

  	
   

  	
  Urania
  Voltz

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  La Salle St Bank Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  92

  	
   

  	
  190522

  	
   

  	
  040711

  	
   

  	
  LASALLE
  ST BANK

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  93

  	
   

  	
  190558

  	
   

  	
  040711

  	
   

  	
  LASALLE
  ST BANK

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Loe, Glen D Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  94

  	
   

  	
  196405

  	
   

  	
  041637

  	
   

  	
  Loe,
  Glen D

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  95

  	
   

  	
  196406

  	
   

  	
  041637

  	
   

  	
  Loe,
  Glen D

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  

 

5

 

	
  96

  	
   

  	
  197043

  	
   

  	
  041637

  	
   

  	
  Loe,
  Glen D

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  97

  	
   

  	
  197330

  	
   

  	
  041637

  	
   

  	
  Loe,
  Glen D

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long, CO Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  98

  	
   

  	
  146924

  	
   

  	
  033544

  	
   

  	
  Long
  , CO

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  99

  	
   

  	
  153135

  	
   

  	
  033544

  	
   

  	
  Long
  , CO

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  153170

  	
   

  	
  033544

  	
   

  	
  Long
  , CO

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  101

  	
   

  	
  153171

  	
   

  	
  033544

  	
   

  	
  Long
  , CO

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  102

  	
   

  	
  153346

  	
   

  	
  033544

  	
   

  	
  Long
  , CO

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long, Mary Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  103

  	
   

  	
  146886

  	
   

  	
  033540

  	
   

  	
  Long,
  Mary

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  104

  	
   

  	
  153134

  	
   

  	
  033540

  	
   

  	
  Long,
  Mary

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long, TC Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  105

  	
   

  	
  71148

  	
   

  	
  007906

  	
   

  	
  Long,
  TC

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  106

  	
   

  	
  165436

  	
   

  	
  No LUW

  	
   

  	
  Long,
  TC

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonli

  te.dnr.state

  .la.us/sund

  own/cart_

  prod/cart_

  con_wellin

  fo2?p_wsn

  =172480%

  20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

6

 

	
  107

  	
   

  	
  163343

  	
   

  	
   

  	
   

  	
  Maxwell
  SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Meredith C, SK Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  108

  	
   

  	
  183009

  	
   

  	
  039273

  	
   

  	
  Meredith
  C, SK

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  109

  	
   

  	
  183012

  	
   

  	
  039273

  	
   

  	
  Meredith
  C, SK

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  110

  	
   

  	
  183013

  	
   

  	
  039273

  	
   

  	
  Meredith
  C, SK

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  111

  	
   

  	
  154273

  	
   

  	
  034685

  	
   

  	
  Meredith,
  Cecil

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MILES HEIRS Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  112

  	
   

  	
  191214

  	
   

  	
  040915

  	
   

  	
  MILES
  HEIRS

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  113

  	
   

  	
  191251

  	
   

  	
  040915

  	
   

  	
  MILES
  HEIRS

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MILES - AG OIL EJ Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  114

  	
   

  	
  172482

  	
   

  	
  037360

  	
   

  	
  MILES-AG
  OIL-EJ

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  115

  	
   

  	
  172483

  	
   

  	
  037360

  	
   

  	
  MILES-AG
  OIL-EJ

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  116

  	
   

  	
  172480

  	
   

  	
  037360

  	
   

  	
  MILES-AG
  OILEJ SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Miles Essex Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonli

  te.dnr.state

  .la.us/sund

  own/cart_

  prod/cart_

  con_wellin

  fo2?p_wsn

  =172480%

  20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

7

 

	
  117

  	
   

  	
  190736

  	
   

  	
  040778

  	
   

  	
  MILES-ESSEX

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  118

  	
   

  	
  190783

  	
   

  	
  040778

  	
   

  	
  MILES-ESSEX

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MDP Maxwell Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  119

  	
   

  	
  179671

  	
   

  	
  038553

  	
   

  	
  MDP
  MAXWELL

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  120

  	
   

  	
  179672

  	
   

  	
  038553

  	
   

  	
  MDP
  MAXWELL

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  MOP Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  121

  	
   

  	
  91994

  	
   

  	
  016494

  	
   

  	
  Missouri
  Pacific RR

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  122

  	
   

  	
  83963

  	
   

  	
  012886

  	
   

  	
  MOP
  #1 SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  123

  	
   

  	
  183703

  	
   

  	
  039526

  	
   

  	
  MOPAC
  SSS

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Morrison, James Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  124

  	
   

  	
  176677

  	
   

  	
  038190

  	
   

  	
  Morrison,
  James

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Maxwell, JC M80 Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  125

  	
   

  	
  170664

  	
   

  	
  037215

  	
   

  	
  Maxwell, JC M80

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

8

 

	
  126

  	
   

  	
  171769

  	
   

  	
  037215

  	
   

  	
  Maxwell, JC
  M80

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  127

  	
   

  	
  171770

  	
   

  	
  037215

  	
   

  	
  Maxwell, JC
  M80

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pendarvis Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  128

  	
   

  	
  193250

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  129

  	
   

  	
  193251

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  130

  	
   

  	
  193252

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  131

  	
   

  	
  193253

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  132

  	
   

  	
  193255

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  133

  	
   

  	
  194757

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  134

  	
   

  	
  194759

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  135

  	
   

  	
  194760

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  10

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  136

  	
   

  	
  194761

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  137

  	
   

  	
  194762

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  138

  	
   

  	
  194763

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  139

  	
   

  	
  194764

  	
   

  	
  041573

  	
   

  	
  PENDARVIS

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  140

  	
   

  	
  10281

  	
   

  	
  008680

  	
   

  	
  PENDARVIS A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  141

  	
   

  	
  10331

  	
   

  	
  008680

  	
   

  	
  PENDARVIS A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  142

  	
   

  	
  971428

  	
   

  	
   

  	
   

  	
  PENDARVIS A
  SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

9

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pendarvis LaPetro Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  143

  	
   

  	
  193828

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  144

  	
   

  	
  193829

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  145

  	
   

  	
  193830

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  146

  	
   

  	
  193831

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  147

  	
   

  	
  193832

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  148

  	
   

  	
  193833

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  149

  	
   

  	
  193834

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  150

  	
   

  	
  193835

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  151

  	
   

  	
  193837

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  10

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  152

  	
   

  	
  193838

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.7657824

  	
   

  	
   

  	
   

  
	
  153

  	
   

  	
  194758

  	
   

  	
  041572

  	
   

  	
  Pendarvis -
  La Petro

  	
   

  	
  12 SWD

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10

 

	
   

  	
   

  	
  http://so

  nlite.dnr.

  state.la.u

  s/sundo

  wn/cart_

  prod/cart

  _con_we

  llinfo2?p

  _wsn=97

  1428%2

  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pringle
  Heirs Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  154

  	
   

  	
  158868

  	
   

  	
  035563

  	
   

  	
  Pringle
  Heirs

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.81250

  	
   

  	
   

  	
   

  
	
  155

  	
   

  	
  162747

  	
   

  	
  035563

  	
   

  	
  Pringle
  Heirs SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  156

  	
   

  	
  19432

  	
   

  	
  035563

  	
   

  	
  Pringle SWD

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PV 80
  MILES TB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  157

  	
   

  	
  172920

  	
   

  	
  037330

  	
   

  	
  PV 80 -
  MILES

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  158

  	
   

  	
  172922

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  159

  	
   

  	
  172923

  	
   

  	
  037330

  	
   

  	
  PV 80 -
  MILES

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  160

  	
   

  	
  172924

  	
   

  	
  037330

  	
   

  	
  PV 80 -
  MILES

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  161

  	
   

  	
  172925

  	
   

  	
  037330

  	
   

  	
  PV 80 -
  MILES

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  162

  	
   

  	
  172926

  	
   

  	
  037330

  	
   

  	
  PV 80 - MILES

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  163

  	
   

  	
  174930

  	
   

  	
  037330

  	
   

  	
  PV 80 -
  MILES

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  164

  	
   

  	
  182489

  	
   

  	
  039369

  	
   

  	
  JRB MAXWELL

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PV 80 -
  MOPAC Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  165

  	
   

  	
  172927

  	
   

  	
  037539

  	
   

  	
  PV 80 - MOPAC

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

11

 

	
  166

  	
   

  	
  172928

  	
   

  	
  037539

  	
   

  	
  PV 80 -
  MOPAC

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  167

  	
   

  	
  172929

  	
   

  	
  037539

  	
   

  	
  PV 80 -
  MOPAC

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  168

  	
   

  	
  172930

  	
   

  	
  037539

  	
   

  	
  PV 80 -
  MOPAC

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  169

  	
   

  	
  174030

  	
   

  	
  037539

  	
   

  	
  PV 80 -
  MOPAC

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  170

  	
   

  	
  174029

  	
   

  	
  037539

  	
   

  	
  PV 80 -
  MOPAC

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tensas
  BLD Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  171

  	
   

  	
  134605

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  172

  	
   

  	
  178732

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  173

  	
   

  	
  183525

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  174

  	
   

  	
  178731

  	
   

  	
  031228

  	
   

  	
  Tensas BLD

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  175

  	
   

  	
  990623

  	
   

  	
  031228

  	
   

  	
  Tensas BLD
  SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tensas
  BLD A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  176

  	
   

  	
  59321

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  177

  	
   

  	
  64687

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  178

  	
   

  	
  153875

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  179

  	
   

  	
  153876

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

12

 

	
  180

  	
   

  	
  182387

  	
   

  	
  009515

  	
   

  	
  Tensas BLD A

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tremont
  B Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  181

  	
   

  	
  187623

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  182

  	
   

  	
  187822

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  183

  	
   

  	
  187824

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  184

  	
   

  	
  188181

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  185

  	
   

  	
  189535

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  186

  	
   

  	
  189696

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  187

  	
   

  	
  191207

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  188

  	
   

  	
  178262

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  10

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  189

  	
   

  	
  182059

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  11

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  190

  	
   

  	
  182291

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  191

  	
   

  	
  182292

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  13

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  192

  	
   

  	
  182295

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  193

  	
   

  	
  182296

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  15

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  194

  	
   

  	
  183884

  	
   

  	
  043930

  	
   

  	
  Tremont B

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
  195

  	
   

  	
  187820

  	
   

  	
  043930

  	
   

  	
  Tremont B
  SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

13

 

	
  196

  	
   

  	
  191205

  	
   

  	
   

  	
   

  	
  Tremont B

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
  P&A but remains on SONRIS

  	
   

  
	
  197

  	
   

  	
  183885

  	
   

  	
   

  	
   

  	
  Tremont B

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
  P&A but remains on SONRIS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tremont
  SSS Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  198

  	
   

  	
  182799

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  199

  	
   

  	
  182800

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  200

  	
   

  	
  182801

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  201

  	
   

  	
  182802

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  202

  	
   

  	
  182803

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  203

  	
   

  	
  182804

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  204

  	
   

  	
  182805

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  205

  	
   

  	
  184928

  	
   

  	
  039161

  	
   

  	
  Tremont SSS

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  206

  	
   

  	
  990137

  	
   

  	
  009660

  	
   

  	
  Tullos,
  Frank

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
  207

  	
   

  	
  203730

  	
   

  	
  009660

  	
   

  	
  Tullos,
  Frank

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
  no lease or production

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania A Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  208

  	
   

  	
  214541

  	
   

  	
  047519

  	
   

  	
  URANIA

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  209

  	
   

  	
  214542

  	
   

  	
  047519

  	
   

  	
  URANIA

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  210

  	
   

  	
  127062

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

14

 

	
  211

  	
   

  	
  127414

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  212

  	
   

  	
  127415

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  213

  	
   

  	
  126926

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  214

  	
   

  	
  127417

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite

  .dnr.state.la.

  us/sundown/

  cart_prod/ca

  rt_con_welli

  nfo2?p_wsn

  =971269%2

  0

  	
   

  	
   

  	
   

  	
  Urania B Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  215

  	
   

  	
  127264

  	
   

  	
  040909

  	
   

  	
  URANIA LBR
  CO B

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  216

  	
   

  	
  127418

  	
   

  	
  040909

  	
   

  	
  URANIA LBR
  CO B

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  217

  	
   

  	
  214543

  	
   

  	
  047519

  	
   

  	
  URANIA

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania C TB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  218

  	
   

  	
  127389

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
  Sonris records not updated for transfer from Atkins

  	
   

  
	
  219

  	
   

  	
  128428

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

15

 

	
  220

  	
   

  	
  128427

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  221

  	
   

  	
  121694

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  222

  	
   

  	
  125446

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  223

  	
   

  	
  134419

  	
   

  	
  029323

  	
   

  	
  HARDTNER-EDENBORN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  224

  	
   

  	
  128374

  	
   

  	
  040909

  	
   

  	
  URANIA LBR
  CO B

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  225

  	
   

  	
  128336

  	
   

  	
  040909

  	
   

  	
  URANIA LBR
  CO B SWD

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  226

  	
   

  	
  971269

  	
   

  	
   

  	
   

  	
  URANIA LBR
  CO E SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania
  LTF Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  227

  	
   

  	
  187028

  	
   

  	
  040144

  	
   

  	
  Urania, LTF

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  228

  	
   

  	
  193625

  	
   

  	
  040144

  	
   

  	
  Urania, LTF

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite

  .dnr.state.la.

  us/sundown/

  cart_prod/ca

  rt_con_welli

  nfo2?p_wsn

  =971269%20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania Shemen TB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  229

  	
   

  	
  191712

  	
   

  	
  041167

  	
   

  	
  URANIA-SHEMEN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  

 

16

 

	
  230

  	
   

  	
  191713

  	
   

  	
  041167

  	
   

  	
  URANIA-SHEMEN

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  231

  	
   

  	
  191714

  	
   

  	
  041167

  	
   

  	
  URANIA-SHEMEN

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  232

  	
   

  	
  115191

  	
   

  	
  040839

  	
   

  	
  URANIA LBRCO
  D

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  233

  	
   

  	
  115192

  	
   

  	
  040839

  	
   

  	
  URANIA LBRCO
  D

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  234

  	
   

  	
  115468

  	
   

  	
  040839

  	
   

  	
  URANIA LBRCO
  D

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  235

  	
   

  	
  191709

  	
   

  	
  041134

  	
   

  	
  URANIA
  A-SHEMEN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  236

  	
   

  	
  191784

  	
   

  	
  041134

  	
   

  	
  URANIA
  A-SHEMEN

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  237

  	
   

  	
  191783

  	
   

  	
  041135

  	
   

  	
  URANIA
  C-SHEMEN

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  238

  	
   

  	
  191779

  	
   

  	
  041135

  	
   

  	
  URANIA
  C-SHEMEN

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  239

  	
   

  	
  114278

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  240

  	
   

  	
  114442

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  241

  	
   

  	
  114534

  	
   

  	
  040908

  	
   

  	
  URANIA LBR
  CO A

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  242

  	
   

  	
  115773

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  243

  	
   

  	
  116282

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  244

  	
   

  	
  115986

  	
   

  	
  040910

  	
   

  	
  URANIA LBR
  CO C

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.75000

  	
   

  	
   

  	
   

  
	
  245

  	
   

  	
  971328

  	
   

  	
   

  	
   

  	
  URANIA LBR
  CO SWD

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  246

  	
   

  	
  191788

  	
   

  	
  041134

  	
   

  	
  URANIA
  A-SHEMEN SWD

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

17

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Urania Stenco Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  247

  	
   

  	
  126642

  	
   

  	
  026661

  	
   

  	
  URANIA-STENCO

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  248

  	
   

  	
  33328

  	
   

  	
  026661

  	
   

  	
  URANIA-STENCO

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Walsh Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  249

  	
   

  	
  72539

  	
   

  	
  009846

  	
   

  	
  Walsh

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  White , Mike Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  250

  	
   

  	
  189448

  	
   

  	
  040597

  	
   

  	
  White, Mike

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.78711

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Wright , WE Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  251

  	
   

  	
  175340

  	
   

  	
  037484

  	
   

  	
  Wright, WE

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  252

  	
   

  	
  173245

  	
   

  	
  037484

  	
   

  	
  Wright, WE

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
  253

  	
   

  	
  174438

  	
   

  	
  037484

  	
   

  	
  Wright, WE

  	
   

  	
  3

  	
   

  	
  1.000

  	
   

  	
  0.83000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Zimmerman Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  254

  	
   

  	
  990136

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  255

  	
   

  	
  43888

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  256

  	
   

  	
  53293

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  257

  	
   

  	
  58021

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  258

  	
   

  	
  62964

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  18

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

18

 

	
  259

  	
   

  	
  66344

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  19

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  260

  	
   

  	
  68370

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  20

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  261

  	
   

  	
  77368

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  22

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  262

  	
   

  	
  86436

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  23

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  263

  	
   

  	
  40901

  	
   

  	
  010118

  	
   

  	
  Zimmerman

  	
   

  	
  A-4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  http://sonlite

  .dnr.state.la.

  us/sundown/

  cart_prod/ca

  rt_con_welli

  nfo2?p_wsn

  =990136%20

  	
   

  	
   

  	
   

  	
  Zimmerman , Lex Lease

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  264

  	
   

  	
  187003

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  1

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  265

  	
   

  	
  187004

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  2

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  266

  	
   

  	
  187007

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  4

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  267

  	
   

  	
  187008

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  5

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  268

  	
   

  	
  187010

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  7

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  269

  	
   

  	
  187011

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  8

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  270

  	
   

  	
  187012

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  9

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  

 

19

 

	
  271

  	
   

  	
  187236

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  14

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  272

  	
   

  	
  187237

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  15

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  273

  	
   

  	
  187238

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  16

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  274

  	
   

  	
  187239

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  17

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  275

  	
   

  	
  187240

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex

  	
   

  	
  18

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  276

  	
   

  	
  236125

  	
   

  	
  40143

  	
   

  	
  Zimmerman,
  Lex

  	
   

  	
  19

  	
   

  	
  1.000

  	
   

  	
  0.80000

  	
   

  	
   

  	
   

  
	
  277

  	
   

  	
  187009

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex SWD

  	
   

  	
  6

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  278

  	
   

  	
  973077

  	
   

  	
  040143

  	
   

  	
  ZIMMERMAN,
  Lex SWD

  	
   

  	
  12

  	
   

  	
  1.000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

20

 

Exhibit “A-3”

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated effective February 1,
2008

by and between NGS Sub. Corp., as Assignor, and

MWM Energy, LLC, as Assignee

 

CONTRACTS AND OTHER AGREEMENTS

 

9.               Pumping Service Contract by
and between NGS Sub Corp. and Carl Bruce

 

10.         Pumping Service Contract by
and between NGS Sub Corp. and Sumrall Pumper Service

 

11.         Pumping Service Contract by
and between NGS Sub Corp. and James W. Sumrall II

 

12.         Pumping Service Contract by
and between NGS Sub Corp. and Lance Coleman

 

13.         Salt Water Disposal Contract
by and between NGS Sub Corp. and Page Development, LLC for use of the
Hardtner A SWD #2

 

14.         Verbal agreement for salt
water disposal by Donnie Morrow into Bradford SWD

 

15.         Verbal agreement for salt
water disposal by Quentin Sagdahl into Bradford SWD

 

16.         Verbal agreement for salt
water disposal by AJ  & J Thornton into Urania SWD

 

1

 

Exhibit “A-4”

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated effective February 1,
2008

by and between NGS Sub. Corp., as Assignor, and

MWM Energy, LLC, as Assignee

 

Right-of-Ways,
Easements and Surface Leases

 

NONE

 

1

 

Exhibit “A-5”

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated effective February 1,
2008

by and between NGS Sub. Corp., as Assignor, and

MWM Energy, LLC, as Assignee

 

SURFACE ESTATES

 

FEE LAND

 

TRACT I:

 

Lots
1, 3, 5, Block 16, Lots 1, 3, 9, 11, Block 21, and Lots 1, 3, 5, 7, 9, 11,
Block 23 of the Original Town of Tullos, Section 26, Township 10 North,
Range 1 East, LaSalle Parish, Louisiana

 

TRACT II:

 

A
certain parcel of land thirty (30) feet square, situated in the Southwest
corner of property described hereinbelow, with well described below situated
thereon.

 

Monroe
Well Service/SSM – SWD #1, serial #971390, Section 25, Township 10 North,
Range 2 East, Tullos-Urania Field, LaSalle Parish, Louisiana.

 

Tracts
I and II, being the same land described in that certain Act of Sale and
Assignment dated September 2, 2004 from Atkins Production, Inc. to
NGS Sub. Corp., as recorded in Book 291, Page 179 of the Conveyance Books
of LaSalle Parish, Louisiana.

 

1

 

Exhibit “F”

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated
effective February 1, 2008

by and between NGS Sub. Corp., as Assignor,
and

MWM Energy, LLC, as Assignee

 

LITIGATION AND CLAIMS

 

Litigation:

 

NONE

 

Claims:

 

Those claims relating to certain requests for
information from the United States Environmental Protection Agency, Region
6, pursuant to Clean Water Act Section 308 relating to a release of
hydrocarbons in LaSalle Parish, Louisiana , on or about August 1, 2007,
identified in NRC Report No. 844158 and HI-07-04354, and penalties
potentially resulting therefrom.

 

1

 

Schedule 1.28(j)

 

Attached to and made a part of that certain

Assignment, Conveyance and Bill of Sale dated effective February 1,
2008

by and between NGS Sub. Corp., as Assignor, and

MWM Energy, LLC, as Assignee

 

Excluded Assets

 

Wells
and related leasehold for all rights, title and interest in and to:

 

1.             Lexington-Zimmerman #2 Well (SN
187004), together with and including a 1 acre tract surrounding the wellbore.

 

2.             Zimmerman #6 Well (SN 990136),
together with and including a 1 acre tract surrounding the wellbore.

 

The
identified wells and acreage are located in the Tullos Urania Field, Section 25,
Township 10 North, Range 1 East, LaSalle Parish, Louisiana.

 

Equipment:

 

1.             Two (2) two hundred (200)
barrel swab tanks; and

 

2.             ten (10)  man-way covers.

 

Additional
Excluded Assets:

 

1.             Any and all reimbursements,
refunds, claims, causes of action, and any other rights to
payment, whether now pending or as may be made or come due in the
future, relating to a release of hydrocarbons in LaSalle Parish, Louisiana,
on or about August 1, 2007, identified in NRC Report No. 844158 and
HI-07-04354, including any insurance proceeds, claims against the Oil Spill
Liability Trust Fund, and recoveries from any third-party.

 

1

 

Exhibit D

 

1

 

Exhibit “E-1”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

[INTENTIONALLY LEFT BLANK]

 

1

 

Exhibit “F”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

LITIGATION AND CLAIMS

 

Litigation:

 

NONE

 

Claims:

 

Those
claims relating to certain requests for information from the United States
Environmental Protection Agency, Region 6, pursuant to Clean Water Act Section 308
relating to a release of hydrocarbons in LaSalle Parish, Louisiana , on or
about August 1, 2007, identified in NRC Report No. 844158 and
HI-07-04354, and penalties potentially resulting therefrom.

 

1

 

Exhibit “G”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

OIL AND GAS IMBALANCES

 

NONE

 

1

 

Exhibit “H”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

CONSENTS TO ASSIGN AND PREFERENTIAL RIGHTS TO PURCHASE

 

The following agreements
require consent to assign:

 

1)                                      Oil, Gas and Mineral Lease dated February 27,
1990 from Louisiana-Pacific Corporation to Atkins Production, Inc., as
recorded in Conveyance Book 174, Page 631 of the records of LaSalle
Parish, Louisiana.

 

2)                                      Oil and Gas Lease dated September 13,
1972 from Georgia Pacific Corporation to Ed Alexander, as recorded in Oil and
Gas Lease Book 36, Page 388 of the records of LaSalle Parish, Louisiana

 

3)                                      Oil, Gas and Mineral Lease dated February 1,
2003 from Anadarko Land Corporation to Chadco, Inc., as recorded
Conveyance Book 278, Page 318, as recorded in the records of LaSalle
Parish, Louisiana.

 

4)                                      Oil and Gas Lease dated December 2,
2005 from the LP Mineral Owners to NGS SUB. Corporation, as recorded in
Conveyance Book 300, Page 708 of the records of LaSalle Parish, Louisiana.

 

5)                                      Oil and Gas Lease dated December 5,
2005 from William D. Blake, Agent and Attorney-in-Fact for Henry E. Blake, et
al to NGS Sub Corporation, as recorded in Conveyance Book 300, Page 713 of
the records of LaSalle Parish, Louisiana

 

1

 

Exhibit “I”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

Non-Foreign Certificate

 

Exemption from Withholding of Tax For

Dispositions of U.S. Real Property Interests

 

Article 1445 of the
Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person.  To inform MWM Energy,
LLC (“Buyer”) that withholding of tax is not required upon the
disposition of a U.S. real property interest by NGS Sub Corp. (“Seller”), the
undersigned hereby certifies as follows:

 

1.             Seller is not a nonresident alien, foreign corporation,
foreign partnership, foreign trust, or foreign estate for purposes of U.S.
income taxation (as those terms are defined in the Internal Revenue Code of
1986, as amended and the Treasury regulations thereunder).

 

2.             Seller’s taxpayer identifying number is                             ;
and

 

3.             Seller has an office at 2500 City West Boulevard, Suite 1300,
Houston, Texas, 77042.

 

Seller understands that
this certification may be disclosed to the Internal Revenue Service by Buyer
and that any false statement contained herein could be punished by fine,
imprisonment, or both.

 

Under penalty of perjury,
I declare that I have examined this certification and, to the best of my
knowledge and belief, it is true, correct, and complete, and I further declare
I have authority to sign this document.

 

 

	
   

  	
  NGS SUB CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

1

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF HARRIS

  	
  §

  

 

The foregoing
instrument was acknowledged before me this               
day of February 2008, by                                 ,
as                                               
on behalf of NGS Sub Corp.  a Delaware
corporation.

 

 

	
   

  	
   

  
	
   

  	
  Name (Printed, Typed or
  Stamped)

  
	
   

  	
  Notary Public in and for the State of Texas

  

 

2

 

Exhibit “J”

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

Certificate (Buyer)

 

This Certificate is being
delivered in connection with Section 10.3(b) of that certain
Asset  Purchase and Sale Agreement, dated
as of February 15, 2008 (the “Purchase Agreement”), by and between NGS Sub
Corp. (“Seller”) and MWM Energy, LLC (“Buyer”). 
All capitalized terms used herein and not otherwise defined herein shall
have the respective meanings given to those terms in the Purchase Agreement.

 

The undersigned hereby
certifies that he/she is an authorized officer of Buyer and that he/she has
carefully reviewed the contents of this Certificate.  Based on the foregoing, the undersigned has
concluded and certifies on behalf of Buyer that:

 

(a)           The representations
and warranties of Buyer contained in Article 7 of the Purchase Agreement
are true and correct in all material respects at and as of Closing as though
such representations and warranties were made at such time; and

 

(b)           Buyer has complied
in all material respects with all covenants and obligations contained in the
Purchase Agreement to be performed or complied with by Buyer prior to Closing.

 

IN WITNESS WHEREOF, this
Certificate is executed by the undersigned as of [                                       ], 2008.

 

	
   

  	
  MWM ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

1

 

Exhibit “J”

 

Attached to and made
a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC, as Buyer

 

Certificate (Seller)

 

This Certificate is being
delivered in connection with Section 10.2(c) of that certain Asset
Purchase and Sale Agreement, dated as of February 15, 2008 (the “Purchase
Agreement”), by and between MGS Sub Corp. (“Seller”) and MWM Energy, LLC (“Buyer”)
all capitalized terms used herein and not otherwise defined herein shall have
the respective meanings given to those terms in the Purchase Agreement.

 

The undersigned hereby
certifies that he/she is an authorized officer of Seller and that he/she has
carefully reviewed the contents of this Certificate.  Based on the foregoing, the undersigned has
concluded and certifies on behalf of Seller that:

 

(a)           The representations
and warranties of Seller contained in Article 6 of the Purchase Agreement (i) that
are qualified as to Material Adverse Effect are true and correct as of the
Closing Date as though such representations and warranties were made at such
time (except to the extent such representations and warranties expressly relate
to an earlier date, in which case as of such earlier date), and (ii) those
not so qualified are true and correct as of the Closing Date as though such
representations and warranties were made at such time (except to the extent
such representations and warranties expressly relate to an earlier date, in
which case as of such earlier date), except for failures of the representations
and warranties referred to in this clause (ii) to be true and correct as
would not reasonably be expected to have, in the aggregate, a Material Adverse
Effect; and

 

(b)           Seller has complied
in all material respects with all covenants and obligations contained in the
Purchase Agreement to be performed or complied with by Seller prior to Closing.

 

IN WITNESS WHEREOF, this
Certificate is executed by the undersigned as of [                                           ], 2008.

 

	
   

  	
  NGS SUB CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  

 

1

 

Schedule 1.28(j)

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

Excluded
Assets

 

Wells and related leasehold for
all rights, title and interest in and to:

 

1.             Lexington-Zimmerman #2 Well (SN 187004), together with
and including a 1 acre tract surrounding the wellbore.

 

2.             Zimmerman #6 Well (SN 990136), together with and
including a 1 acre tract surrounding the wellbore.

 

The identified wells and
acreage are located in the Tullos Urania Field, Section 25, Township 10
North, Range 1 East, LaSalle Parish, Louisiana.

 

Equipment:

 

1.             Two (2) two hundred (200) barrel swab tanks; and

 

2.             ten (10)  man-way covers.

 

Additional Excluded Assets:

 

1.             Any and all reimbursements, refunds, claims, causes of
action, and any other rights to payment, whether now pending or as
may be made or come due in the future, relating to a release of
hydrocarbons in LaSalle Parish, Louisiana, on or about August 1, 2007,
identified in NRC Report No. 844158 and HI-07-04354, including any
insurance proceeds, claims against the Oil Spill Liability Trust Fund, and
recoveries from any third-party.

 

1

 

Schedule 4.13(e)

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

Company
Liabilities

 

NONE, other than as disclosed on Exhibit “F”.

 

1

 

Schedule 4.19

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

Company
Banks/Financial Institutions

 

NONE

 

1

 

Schedule 4.23

 

Attached to and
made a part of that certain

Asset Purchase and
Sale Agreement dated February 15, 2008

by and between NGS
Sub. Corp., as Seller, and

MWM Energy, LLC,
as Buyer

 

Company
Material Contracts

 

NONE

 

1

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