Common use of Test Well Clause in Contracts

Test Well. 3.1 Newfield will commence drilling operations for the [REDACTED] No. 1 Well (“Test Well”) on or before December 1, 2008. The Test Well is planned to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not to participate in a substitute well, it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said well shall be considered the Test Well for purposes of this Agreement.

Test Well. 3.1 Newfield will commence drilling operations for the [REDACTED] No. 1 Well (“Test Well”) on 4.1 On or before December 1the expiration of the Term of this Agreement subject, 2008. The Test Well is planned however, to rig availability and obtaining requisite governmental permits, COI shall commence, or cause to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Areacommenced, the Parties will pay the following percentages drilling of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, at a location on the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered Lease mutually acceptable to the Parties, and shall prosecute same in a recommendation is made diligent and workmanlike manner to (i) set casing and complete the well, (ii) plug and abandon Objective Depth. In the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If event the Test Well is either, i) unable to does not reach the Contract Objective Depth due to encountering domal materialimpenetrable substances or mechanical conditions beyond COI’s reasonable control, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood Parties shall have the option, but not the obligation, to participate in commence the drilling of a substitute well at a mutually acceptable location on the Lease. Any such substitute well; howeverwell drilled hereunder shall, if Ridgewood elects upon its commencement, thereafter be deemed the Test Well. In the event COI does not to participate in a substitute well, it shall forfeit its rights under drill the Test Well during the Term of this Agreement, COI shall assign 100% of the record title interest in all of Vermilion Area Block 170 to XXX and XXX within 30 days of expiration of the Term. If actual XXX and XXX shall then be under no further obligations to COI with regard to Vermilion Area Block 170 and therefore free to drill or cause to be drilled XXX and XXX’x prospect on Vermilion Area Block 170. 4.2 With respect to the drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said well XXX shall be considered entitled to an undivided 5% of 100% working interest and XXX shall be entitled to 1.7185% of 100% working interest, being a total of 6.7185%, (including record title and operating rights) free and clear of all costs and expenses associated with the Test Well until Post-Casing Point (such undivided 6.7185% interest until Post-Casing Point is referred to hereafter as the “Carried Interest”). COI, as Operator, will bear all costs and expenses attributable to such Carried Interest prior to Post-Casing Point, together with all costs and expenses pertaining to the Test Well attributable to the remaining undivided 93.2815% working interest, subject, however, to the provisions of Section 4.3 below. 4.3 COI, as Operator, shall notify XXX and XXX once Casing Point has been reached with respect to the Test Well and within forty-eight (48) hours, inclusive of Saturdays, Sundays and federal holidays, of receipt of COI’s Casing Point notification, XXX and XXX may elect to either (a) increase its interest in the Lease, and the Test Well, by an additional undivided 10.07775% of 100%, being 10.07775%, working interest ( in addition to its Carried Interest), free and clear of all costs and expenses attributable to the Test Well prior to Casing Point, or (b) retain its undivided 6.7185% of 100% Carried Interest. If at Casing Point, COI, pursuant to the Operating Agreement, elects to temporarily abandon or to plug and abandon the Test Well and XXX and XXX elects to participate in a different operation, COI shall not be responsible for purposes costs and expenses attributable to REX’s or XXX’x Carried Interest accruing thereafter to Post-Casing Point. Any election made hereunder by XXX and XXX shall be independent elections as to their respective ownership interest. XXX owns 7.5% of 100% working interest and XXX owns 2.57775% of 100% working interest of the total 10.07775% working interest back-in discussed in this Agreementparagraph 4.3.

Test Well. 3.1 Newfield (a) On behalf of Farmee and Participant, Participant, between the period commencing on May 26, 2011 (or sooner if practicable) and ending on July 15, 2011, (subject to reasonable surface access, rig availability and regulatory approval), will commence drilling operations for Spud the [REDACTED] No. 1 Test Well at a location in 1-35-75-8-W6M on the Farmout Lands; (“Test Well”b) on On or before December 1May 16, 2008. The 2011, Farmee shall pay to Participant the sum of $305,753.00, representing 100% of Farmee’s 80% share of the Test Well is planned to be drilled Drilling AFE costs; (c) For clarity, the participating interests of Farmee and Participant, through drilling, completion (or abandonment), equipping and tie-in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The if required for production) of the Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000be: Farmee 80% Ridgewood 60.00000Participant 20% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out Operating Procedure, except that the provisions of Clause 9.03 of the Operating Procedure will be deemed not to apply during the period prior to earning. For clarity, in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as event that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood Farmee elects not to participate in a substitute wellthe setting of casing in the Test Well if proposed by Participant, Farmee will be deemed to have forfeited its right to earn an interest in the Farmout Lands on which the non-participation election applies, and Farmee will have no further rights with respect to that Test Well or the Farmout Lands on which such Test Well was drilled; and the costs relating to the setting of production casing (less the costs relating to the abandonment of the Test Well if it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on was not cased) would be to the substitute well within ninety credit of Farmee. (90d) days from Subject to Article 3.00 of the date of rig release of Farmout & Royalty Procedure (amended as necessary), Farmee, upon having drilled, completed (or abandoned), equipped and tied-in (if required for production) the Test Well, then said well shall be considered as to an 80% participating interest, will have earned a 56% undivided interest in the Farmout Lands, to the base of the deepest formation penetrated and fully evaluated in the Test Well, subject to the Encumbrances, so that the Test Well for purposes of this Agreementand the Farmout Lands will be held as follows: Farmee 56% Farmor 24% Participant 20% (e) Upon Farmee earning an interest in the Farmout Lands as set forth in subclause 4(d), the Test Well and the Farmout Lands will be operated pursuant to the Operating Procedure.

Test Well. 3.1 Newfield will commence drilling On or before November 30, 1999, and subject to receipt of all necessary regulatory approvals (which Farmee agrees to pursue with reasonable commercial diligence), Farmee, at its sole cost, risk and expense, shall commence, or cause the commencement of, operations for the [REDACTED] No. 1 Well drilling of a test well (“"Test Well”") at a location of Farmee's choice on or before December 1, 2008. The Test Well is planned the Unit and thereafter diligently drill such well to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto a depth (the "Objective Depth") equal to the statigraphic equivalent of the PB-1 Sand as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate seen at a depth of 17,254’ MD 17,000 TVD-10,225' TVD Subsea in the Ewinx Xxxk 1003 #1 Well, or a depth sufficient to test the “Cib Op Sands”of -10,030' TVD Subsea, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% lesser. The dry hole well cost for the Test Well is estimated to Objective Depth shall be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Wella minimum depth, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party Farmee shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the optionright, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not drill the Test Well to participate in a substitute well, it shall forfeit its rights under this Agreementdeeper depths. If actual drilling operations are commenced on In order to expedite the substitute well within ninety (90) days from the date of rig release commencement of the Test Well, then said Farmor has or shall immediately make available for Farmee's use, Farmor's shallow hazard survey(s) over the Farmout Acreage, as well as any permitting information pertaining to the Farmout Acreage. In addition, Farmor shall be considered allow Farmee access to its personnel to discuss the Farmout Acreage and any and all well data or information pertaining to the Farmout Acreage. In the event that a condition which qualifies as Force Majeure under Section 5.13, below, prevents Farmee from commencing the drilling of the Test Well on or before November 30, 1999, then Farmee shall apply for purposes and diligently pursue a further extension of this Agreementthe existing Suspension of Production ("SOP") from the MMS so as to permit the drilling of the Test Well at a later date. In the event Farmee does not commence the drilling of the Test Well on or before November 30, 1999, for any reason other than (i) the inability to obtain all necessary permits and regulatory approvals (which Farmee shall have diligently pursued) or (ii) a condition that qualifies as Force Majeure under Section 5.13, below, Farmee shall be deemed to be in breach of its obligations hereunder, unless Farmee has applied for and been granted a further extension of the SOP from the MMS and drills, or causes to be drilled, the Test Well in accordance with such extension.

Test Well. 3.1 Newfield will commence drilling On or before November 30, 1999, and subject to receipt of all necessary regulatory approvals (which Farmee agrees to pursue with reasonable commercial diligence), Farmee, at its sole cost, risk and expense, shall commence, or cause the commencement of, operations for the [REDACTED] No. 1 Well drilling of a test well (“"Test Well”") at a location of Farmee's choice on or before December 1, 2008. The Test Well is planned the Unit and thereafter diligently drill such well to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto a depth (the "Objective Depth") equal to the statigraphic equivalent of the PB-1 Sand as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate seen at a depth of 17,254’ MD 17,000 TVD-10,225' TVD Subsea in the Xxxxx Bank 1003 #1 Well, or a depth sufficient to test the “Cib Op Sands”of -10,030' TVD Subsea, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% lesser. The dry hole well cost for the Test Well is estimated to Objective Depth shall be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Wella minimum depth, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party Farmee shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the optionright, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not drill the Test Well to participate in a substitute well, it shall forfeit its rights under this Agreementdeeper depths. If actual drilling operations are commenced on In order to expedite the substitute well within ninety (90) days from the date of rig release commencement of the Test Well, then said Farmor has or shall immediately make available for Farmee's use, Farmor's shallow hazard survey(s) over the Farmout Acreage, as well as any permitting information pertaining to the Farmout Acreage. In addition, Farmor shall be considered allow Farmee access to its personnel to discuss the Farmout Acreage and any and all well data or information pertaining to the Farmout Acreage. In the event that a condition which qualifies as Force Majeure under Section 5.13, below, prevents Farmee from commencing the drilling of the Test Well on or before November 30, 1999, then Farmee shall apply for purposes and diligently pursue a further extension of this Agreementthe existing Suspension of Production ("SOP") from the MMS so as to permit the drilling of the Test Well at a later date. In the event Farmee does not commence the drilling of the Test Well on or before November 30, 1999, for any reason other than (i) the inability to obtain all necessary permits and regulatory approvals (which Farmee shall have diligently pursued) or (ii) a condition that qualifies as Force Majeure under Section 5.13, below, Farmee shall be deemed to be in breach of its obligations hereunder, unless Farmee has applied for and been granted a further extension of the SOP from the MMS and drills, or causes to be drilled, the Test Well in accordance with such extension.

Test Well. 3.1 Newfield will commence drilling operations for the [REDACTED] No. 1 Well (“Test Well”) on 4.1 On or before December 1the expiration of the Term of this Agreement subject, 2008. The Test Well is planned however, to rig availability and obtaining requisite governmental permits, COI shall commence, or cause to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Areacommenced, the Parties will pay the following percentages drilling of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, at a location on the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered Leases mutually acceptable to the Parties, and shall prosecute same in a recommendation is made diligent and workmanlike manner to (i) set casing and complete the well, (ii) plug and abandon Objective Depth. In the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If event the Test Well is either, i) unable to does not reach the Contract Objective Depth due to encountering domal materialimpenetrable substances or mechanical conditions beyond COI’s reasonable control, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood Parties shall have the option, but not the obligation, to participate in commence the drilling of a substitute well at a mutually acceptable location on the Leases. Any such substitute well; howeverwell drilled hereunder shall, if Ridgewood elects upon its commencement, thereafter be deemed the Test Well. In the event COI does not to participate in a substitute well, it shall forfeit its rights under drill the Test Well during the Term of this Agreement, COI shall assign 100% of the record title interest in all of Ship Shoal Area Block 121 and Ship Shoal Area Block 122 and 100% of the operating rights interest in Ship Shoal Area Block 134 to XXX within 30 days of expiration of the Term. If actual XXX shall then be under no further obligations to COI with regard to Ship Xxxxx Xxxx Xxxxx 000, Xxxx Xxxxx Xxxx Xxxxx 122 and Ship Shoal Area Block 134 therefore free to drill or cause to be drilled REX’s prospect(s) on Ship Xxxxx Xxxx Xxxxx 000, Xxxx Xxxxx Xxxx Xxxxx 122 and Ship Shoal Area Block 134. 4.2 With respect to the drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said well XXX shall be considered entitled to an undivided 10% of 100%, being 10%, working interest (including record title and operating rights) free and clear of all costs and expenses associated with the Test Well until Post-Casing Point (such undivided 10% interest until Post-Casing Point is referred to hereafter as the “Carried Interest”). COI, as Operator, will bear all costs and expenses attributable to such Carried Interest prior to Post-Casing Point, together with all costs and expenses pertaining to the Test Well attributable to the remaining undivided 90% working interest, subject, however, to the provisions of Section 4.3 below. 4.3 COI, as Operator, shall notify XXX once Casing Point has been reached with respect to the Test Well and within forty-eight (48) hours, inclusive of Saturdays, Sundays and federal holidays, of receipt of COI’s Casing Point notification, XXX xxx elect to either (a) increase its interest in the Leases, and the Test Well, by an additional undivided 15% of 100%, being 15%, working interest (in addition to its Carried Interest), free and clear of all costs and expenses attributable to the Test Well prior to Casing Point, or (b) retain its undivided 10% of 100% Carried Interest. If at Casing Point, COI, pursuant to the Operating Agreement, elects to temporarily abandon or to plug and abandon the Test Well and XXX elects to participate in a different operation, COI shall not be responsible for purposes costs and expenses attributable to REX’s Carried Interest accruing thereafter to Post-Casing Point. 4.4 In the event the Test Well is drilled and plugged and abandoned as a dry hole XXX will not have had the opportunity to make an election pursuant to 4.3 above to increase its interest in the leases by an additional 15% working interest. Therefore, XXX shall have the opportunity to participate with 25% working interest on a ground floor basis, pursuant to elections made under the Operating Agreement discussed in Article V below, in any future proposals subsequent to the abandonment operations of this Agreementthe Test Well including but not limited to any additional drilling proposals. In the event the Test Well is successfully drilled and completed REX’s working interest in the Leases and the Test Well will be determined pursuant to its election in 4.3 above whereby XXX would own either 10% working interest or 25% working interest.

Test Well. 3.1 4.1 Newfield will commence has commenced drilling operations for the [REDACTED] West Cameron Block 149 (OCS-00253) No. 1 8 Well (“Test Well”) on or before December 1, 2008). The Test Well is planned to be drilled in accordance with Newfield’s AFE No. 16964 14176 attached hereto as Exhibit “BC” (“AFE”). The Test Well will be drilled to an approximate depth of 17,25410,300’ MD 17,000 MD/TVD, or a depth sufficient to test the “Cib Op SandsXxx X Xxxxx”, whichever depth is shallower (“Contract Depth”). 3.2 4.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 4.3 below): Newfield 40.0000066.66667% Ridgewood 60.0000033.33333% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 7,748,266.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110105% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 the Dry Hole Cost for the Test Well or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 6075% and Ridgewood will bear its 4025% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 4.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 4.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not to participate in a substitute well, it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said well shall be considered the Test Well for purposes of this Agreement.

Test Well. 3.1 Newfield will commence A. Subject to permitting, rig availability, and events of force majeure (as set out in Section 11), Foothills Petroleum Operating, Inc. (hereinafter referred to as “Operator”) shall use best efforts to commence, or cause to be commenced drilling operations for a Test Well on the [REDACTED] No. 1 Well (“Test Well”) Prospect on or before December 1January 31, 20082017 (“Contract Spud Date”), to the following bottom hole location: NE/4 of Section 5, T9S-R11W, Calcasieu Parish, Louisiana; XY coordinates: X = 1314375 and Y = 605000 NAD 27–Louisiana South. The Failure by Participant to commence, or cause to be commenced, drilling operations for a Test Well is planned to be drilled on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in accordance with Newfielda termination of this Agreement or Participant’s AFE Norights and obligations hereunder. 16964 attached hereto as Exhibit “B” (“AFE”). The Said Test Well will shall be drilled to an approximate the lesser depth of 17,254’ MD 17,000 TVD, (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the “Cib Op Sands”stratigraphic equivalent of the Nodosaria blanpiedi sand, whichever depth top of which is shallower found at the measured depths of 8,490 feet (MD) on the electric log of the Labokay Corp 5 Well No. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total depth, located in Section 4, Xxxxxxxx 0X, Xxx 00X, Xxxxxxxxx Xxxxxx, Xxxxxxxxx (“Contract Depth”). 3.2 As additional consideration for ) and thereafter evaluated in accordance with good oil field practices, and depending on the opportunity to earn its Working Interest in the Contract Areaoutcome of said evaluation, the Parties will pay the following percentages of the costs to drill Operator shall either plug and abandon the Test Well or make a recommendation for a completion attempt. Should Operator make a recommendation for a completion attempt and not recommend to plug and abandon the Test Well, it is agreed and understood that Participant shall pay to Seller the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point (Election as described defined in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% The dry hole well cost for the Test Well is estimated OA, which amount shall be considered and construed to be $30,227,466.00 (“Dry Hole Cost”) as outlined on geological and geophysical costs. Prior to the above referenced commencement of drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses operations for the Test Well, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and if drilled, expenses in connection with the substitute well therefore, exceeds 110% drilling of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said wellthe “Estimated Dry Hole Costs”), which substance or condition cannot shall include a line item of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the Lxxxxx Seismic Agreement. Except as provided herein, all operations on the Test Well shall be overcome at a reasonable cost by means considered customary or ordinary conducted in accordance with the OA. The Test Well shall be the same well referred to in the industry; orOA as the Initial Well. B. If, ii) plugged and abandoned as a dry hole, then any Party shall have during the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not to participate in a substitute well, it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said formation conditions, mechanical difficulties, impenetrable substances, or other conditions are encountered beyond the control of Operator that make the further drilling of the Test Well impossible or impracticable before reaching Contract Depth, Participant may propose the drilling of a substitute well for the Test Well (hereinafter referred to as the “Substitute Well”) at a legal location approved by Seller and Participant and the drilling of such Substitute Well shall thereafter be considered the Test Well for all purposes hereof. C. If it becomes necessary to pay delay rentals in order to maintain either of this Agreementthe Leases in effect prior to drilling the Test Well to Contract Depth, the Parties agree to be responsible for and pay 100% of their respective shares of all such delay rentals. Delay rentals which become due prior to reaching Contract Depth in the Test Well shall be borne and paid by the Parties based on their respective interests as set forth on Exhibit “B” under the column titled “WI BPO.” Notwithstanding anything herein, prior to the commencement of operations for the Test Well identified in Section 4 hereinabove, Participant shall pay all delay rentals in a timely manner and in accordance with the terms of the Leases.