ASSIGNMENT OF OPTION
THIS ASSIGNMENT OF OPTION is executed this 6(th) day of March, 1998, by HIGH
PLAINS ASSOCIATES, INC., XXXXX X. XXXXXX, XXX, AND XXXXXXX X. XXXXXX, wife of
Xxxxx X. Xxxxxx, XXX (hereinafter collectively referred to as "Assignors"),
and PENNACO ENERGY, INC., a Colorado corporation, whose address is 0000
Xxxxxx Xxxx, Xxxxx X, Xxx Xxxxx, Xxxxxx 00000, (hereinafter referred to as
"Pennaco").
WHEREAS, under the terms of an Agreement dated January 23, 1998, Assignors
acquired an option to purchase certain Oil and Gas Leases owned by Xxxxxx Oil
Properties, located in Sheridan County, Wyoming, and Powder River County,
Montana. A true and correct copy of this Agreement is attached hereto as
EXHIBIT "A."
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is acknowledged and confessed, Assignors do herewith
assign unto Pennaco, all of its rights in and to the above described
Agreement attached hereto as Exhibit A, and in and to any and all oil and gas
leases set forth therein. This Assignment is made without a warranty of
title, either expressed or implied, or any warranty or representation of any
kind.
DATED the date first above written.
HIGH PLAINS ASSOCIATES, INC. XXXXXXX X. XXXXXX
By: /s/ Xxxxx X. Xxxxxx, III Xxxxxxx X. Xxxxxx
--------------------------------- -----------------------------
XXXXX X. XXXXXX, XXX, as President
of High Plains Associates, Inc.,
and Individually
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EXERCISE OF OPTION
PENNACO ENERGY, INC. does herewith exercise the option to purchase the North
Powder Prospect from XXXXXXX XXXXXX, individually, and d/b/a XXXXXX OIL
PROPERTIES (collectively "Xxxxxx") as set forth in Paragraph 2 of the
Agreement attached hereto as EXHIBIT "A." Closing shall occur on May 20,
1998. Pennaco requests that:
1. The site of the closing, the offices of High Plains Associates, Inc.,
0000 Xxxxx, Xxxxx 000, Xxxxxx, XX 00000, remain unchanged;
2. The Assignments be made into High Plains Associates, Inc., a Colorado
corporation, as now provided in the contract of the parties; and
3. Access should continue to be given to High Plains Associates on behalf of
Pennaco Energy, Inc. as provided in Paragraph 6 of the Agreement for title
review purposes.
PENNACO ENERGY, INC.
By: /s/ [ILLEGIBLE]
--------------------------
Its: Sr. Vice President
--------------------------
