Common use of Production and Reserves Clause in Contracts

Production and Reserves. NSAI, whose report as of December 31, 2015 and dated January 11, 2016 (the “Company Reserve Report”) provided to Yuma, was as of the date of such report, and is, as of the date hereof, an independent reserve engineer and acts as independent reserve engineer with respect to the Company. The information underlying the estimates of reserves of the Company and its Subsidiaries contained in the Company Reserve Report, which information was supplied by the Company to NSAI, for purposes of reviewing the Company Reserve Report and estimates of the Company and preparing the letter of NSAI, including production and costs of operation as well as working interests and net revenue interests (for the remaining life of the properties), was true and correct in all material respects on the dates such estimates were made and such information was supplied and was prepared in accordance with customary industry practices. Other than (a) the production of reserves in the ordinary course of business, and (b) the resulting intervening price fluctuations and averages, the Company is not aware of any facts or circumstances that would result in a Company Material Adverse Effect in its proved reserves in the aggregate, or the aggregate present value of estimated future net revenues of the Company or the standardized measure of discounted future net cash flows therefrom, as described in the Company Reserve Report and reflected in the reserve information as of the respective dates such information is given.

Production and Reserves. NSAI, whose report as of December 31January 1, 2015 2016 and dated January 1122, 2016 (the “Company Yuma Reserve Report”) provided to Yumathe Company, was as of the date of such report, and is, as of the date hereof, an independent reserve engineer and acts as independent reserve engineer with respect to the CompanyYuma. The information underlying the estimates of reserves of the Company Yuma and its Subsidiaries contained in the Company Yuma Reserve Report, which information was supplied by the Company Yuma to NSAI, for purposes of reviewing the Company Yuma Reserve Report and estimates of the Company Yuma and preparing the letter of NSAI, including production and costs of operation as well as working interests and net revenue interests (for the remaining life of the properties), was true and correct in all material respects on the dates such estimates were made and such information was supplied and was prepared in accordance with customary industry practices. Other than (a) the production of reserves in the ordinary course of business, and (b) the resulting intervening price fluctuations and averages, the Company Yuma is not aware of any facts or circumstances that would result in a Company Yuma Material Adverse Effect in its proved reserves in the aggregate, or the aggregate present value of estimated future net revenues of the Company Yuma or the standardized measure of discounted future net cash flows therefrom, as described in the Company Yuma Reserve Report and reflected in the reserve information as of the respective dates such information is given.