Internal Engineer. As soon as available and in any event within 90 days after June 30 of each year, an engineering report in form and substance meeting the requirements of the SEC for financial reporting purposes, certified by a petroleum engineer who is an employee or agent of the Borrower or one of its Subsidiaries (each, a “June 30 Reserve Report”), setting forth such engineer’s estimates of the Proved Reserves on the Borrowing Base Properties and the future gross revenue and future net income to be derived from such Proved Reserves as of the date of such June 30 Reserve Report. Each June 30 Reserve Report shall estimate the Proved Reserves and income data for the Proved Developed Producing Reserves, the Proved Developed Non-Producing Reserves and the Proved Undeveloped Reserves, and shall, in each case, report only the Proved Reserves and income data attributable to each Loan Party’s working interest percentage in or each Loan Party’s pro rata share of, as the case may be, any Proved Reserves located on the Borrowing Base Properties, less each Loan Party’s obligations or pro rata share of such obligations, as the case may be, for advance payments for each such property. All calculations in each June 30 Reserve Report shall be made on a property-by-property and an interest-by-interest basis in order to reflect the varying royalties, costs and expenses, working interests and advance payments applicable to the various Borrowing Base Properties covered by such June 30 Reserve Report. Except as otherwise specifically required herein, such June 30 Reserve Report shall be prepared and presented in accordance with the requirements of the SEC from time to time in effect.
