CARTER CREEK PROJECT PURCHASE AGREEMENT
Exhibit
10.16
XXXXXX
CREEK PROJECT PURCHASE AGREEMENT
THIS
AGREEMENT is made and entered into this 9th day of January, 2004, by and
between
Xxxxxxxxx
Partner Associates, Inc., whose
mailing address is 0000
Xxxx
Xxxxxx, Xxxxxx, XX 00000 (hereinafter referred to as
"Xxxxxxxxx")
and
Fellows
Energy Ltd., a Nevada Corporation, whose
mailing address is 0000 Xxxxxxxx Xxxx, Xxxxxxx, XX 00000
(hereinafter
referred to as “Fellows”),
regarding the purchase of an oil and gas exploration project and certain
oil and
gas leasehold interest associated therewith. Xxxxxxxxx and Fellows shall
herein
be collectively referred to as the "Parties."
WHEREAS,
Xxxxxxxxx is an oil and gas exploration company engaged, among other activities,
in the business of developing oil and natural gas plays, projects and prospects
and selling such plays, projects and prospects to other oil and gas exploration
companies; and
WHEREAS,
Xxxxxxxxx has developed an oil and gas exploration project located in Converse
County, Wyoming, described as the Xxxxxx Creek Project (hereinafter referred
to
as "Project"), the area of which is more fully described herein; and
WHEREAS,
without expressing any warranty of title, either expressed or implied, Xxxxxxxxx
represents that it is the owner of certain oil and gas leasehold located
in
Converse County, Wyoming, as described on Exhibit "A" attached hereto and
made a
part hereof, (herein referred to as "Leases"):
WHEREAS,
Fellows is an oil and gas exploration company and desires to purchase the
Project and the Leases; and
WHEREAS,
Fellows and Xxxxxxxxx desire to enter into this Project Purchase Agreement
(hereinafter referred to as “Agreement”), whereby Fellows shall purchase the
Project
and the Leases from Xxxxxxxxx for certain considerations (as defined and
provided for herein) in exchange for Xxxxxxxxx providing Fellows with an
assignment of the Leases and the right to participate in the exploration,
development and production of oil and gas within the Project.
NOW,
THEREFORE, for and in consideration of the mutual covenants herein contained,
and other good and valuable considerations, the receipt and sufficiency of
which
are hereby acknowledged, the Parties agree as follows:
I.
EXHIBITS
TO THIS AGREEMENT. The
Exhibits attached to this Agreement and by this reference incorporated herein
are as follows:
Exhibit
“A”-
Description of Leases.
Exhibit
“B”
- Well
Data and Notification Requirements.
II.
EFFECTIVE
DATE.
The
effective date for this Agreement shall be January 1, 2004 (hereinafter referred
to as "Effective Date").
III.CLOSING
DATE.
Closing
of the transaction contemplated herein shall be in the offices of Xxxxxxxxx
on
or before January 9, 2003, or on a date and at a location that is mutually
acceptable to the Parties (hereinafter referred to as "Closing Date").
IV.
CONFLICT
OF AGREEMENTS.
This
Agreement supersedes all other agreements, documents, writings and verbal
understandings among the Parties with regard to the Project.
V.
REPRESENTATION
OF OWNERSHIP.
Xxxxxxxxx, without expressing any warranty of title, either expressed or
implied, represents that it owns and has the right to sell the Project and
the
Leases that cover approximately 10,678.69 net
acres.
VI.
PURCHASE
PRICE FOR THE LEASES. Within
thirty-five (35) days from the execution date of this Agreement and subject
to
the title examination provisions set forth herein, Fellows shall pay Xxxxxxxxx
an amount equal to Twenty and no/100 Dollars ($20.00) per net acre for the
Leases or the sum of Two hundred thirteen thousand five hundred seventy-three
and 80/100 Dollars ($213,573.80) (hereinafter referred to as "Purchase Price").
VII.
XXXXXXXXX’X
ASSIGNMENT OF THE LEASES.Upon
payment of the Purchase Price by Fellows to Xxxxxxxxx as provided for herein,
and subject to the title examination provisions set forth herein, Xxxxxxxxx
shall immediately provide Fellows with an assignment of all of Xxxxxxxxx’x
right, title and interests in and to the Leases. Said assignments shall (i)
be
made without warranty of title, either expressed or implied, except by through
and under Xxxxxxxxx, (ii) be subject to an overriding royalty interest in
favor
of Xxxxxxxxx, as described in Article XI hereof, and (iii) be made effective
as
of the Effective Date. All assignments made pursuant to this Agreement shall
be
made on assignment forms mutually agreed on by the Parties, which shall be
recordable in the official record of Converse County, Wyoming. Xxxxxxxxx
further
agrees to provide Fellows with any other documentation deemed necessary by
Fellows to effectuate the transfer of all of Xxxxxxxxx’x right, title and
interest in and to the Leases.
VIII.
TITLE
REVIEW AND CURATIVE. Immediately
after the Closing Date Xxxxxxxxx shall provide Fellows with reasonable access
to
Xxxxxxxxx’x land files and records, and other such information (including any
contracts and agreements), concerning the Leases. Within thirty (30) days
from
the Closing Date Fellows shall notify Xxxxxxxxx in writing of any title defects,
which Fellows may have identified as pertaining to Leases. Fellows’ written
notice shall identify any such defective Leases, the nature of the defect
and
the number of net acres affected thereby. Any Leases not identified in said
written notice shall be used to calculate the Purchase Price as set in Article
VI. Upon receipt of Fellows’written
notice identifying any such defects, Xxxxxxxxx shall have ninety (90) days
to
cure any such title defects. If Xxxxxxxxx is unable to cure any such title
defects to Fellows’ satisfaction within the time allowed, Fellows may elect to
either waive such defects and pay Xxxxxxxxx an amount equal to Twenty and
no/100
Dollars ($20.00) per net acre covered by any such defective Leases or reject
such defective Leases and not pay Xxxxxxxxx. If Xxxxxxxxx is able to cure
any
such title defects to Fellows’ satisfaction within the time allowed, Fellows
shall pay Xxxxxxxxx the amount of Twenty and no/100 Dollars ($20.00) per
net
acre for the applicable Lease(s) within five (5) business days after receipt
of
the proper title curative. Failure or defect of title, as used in this Agreement
shall relate to defensible title and provide Fellows with leasehold that
is free
and clear of any and all burdens, encumbrances, charges and liens, except
as to
the Xxxxxxxxx’x XXXX set forth herein; provided, however, that no title defect
may be asserted by Fellows in connection with matters that are customarily
acceptable defects, including, without limitation, Federal and State Lease
stipulations, defects that have been cured by possession under applicable
statutes of limitation, defects in the early chain of title such as failure
to
recite marital status in documents, omission of heirship or succession
proceedings, lack of survey, and failure to record releases of liens, production
payments or mortgages that have expired by their own terms or the enforcement
of
which are barred by applicable statutes of limitation.
IX.PROJECT
AREA OF MUTUAL INTEREST. The
Parties hereby agree to form an Area of Mutual Interest (hereinafter referred
to
as the "AMI") defined to include all of the following lands in Converse County,
Wyoming:
All
of
Townships 37 North, Ranges 68 and 69 West, 6th
PM
All of Townships 38 North, Ranges 68 and 69 West, 6th
PM
X.
TERM
OF AMI.
The AMI
defined herein shall terminate upon the earlier of (i) five (5) years from
the
Effective Date, (ii) termination by the mutual written agreement of the
Xxxxxxxxx and Fellows, or (iii) abandonment of the Xxxxxx Creek County Project
by Fellows as
provided for in Article XIII of this Agreement. Any termination of this
agreement will not affect obligations concerning leases acquired and xxxxx
drilled within the AMI prior to termination.
XI.
XXXXXXXXX’X
OVERRIDING ROYALTY. In
addition to its Purchase Price and other consideration defined herein, Xxxxxxxxx
shall also receive from Fellows an assignment of an overriding royalty interest
(hereinafter referred to as “Xxxxxxxxx’x XXXX”) on any oil and gas leasehold
interest acquired, or caused to be acquired, by Fellows within the AMI during
the term of such AMI, based on the following sliding scale:
Fellows
Net Revenue Interest (NRI)**
|
Xxxxxxxxx’x XXXX |
NRI
85.0% to 87.5%
|
Xxxxxxxxx’x
XXXX = 5%
|
NRI
83.0% to 84.99%
|
Xxxxxxxxx’x
XXXX = 4%
|
NRI
82.0% to 82.99%
|
Xxxxxxxxx’x
XXXX = 3%
|
NRI
81.0% to 81.99%
|
Xxxxxxxxx’x
XXXX = 2%
|
NRI
less than 81.0%
|
Xxxxxxxxx’x
XXXX = 1%
|
**
Fellow’s NRI shall be based on a Working Interest of 100%
Any
assignment of any overriding royalty interest made in favor of Xxxxxxxxx
under
the Agreement shall (i) be reduced proportionately to the working interests
acquired by Fellows and the mineral estates leased thereby (to the extent
title
has not failed in any of the underlying leasehold interests); (ii) be free
of
all drilling, development, production, operating and overhead costs and
expenses; (iii) bear and pay its proportionate share of post-production costs
up
to the point of sale (including but not limited to transportation, dehydration
and processing costs), gross production taxes, pipeline taxes, ad valorem
taxes
and other taxes assessed against the gross production attributable to said
overriding royalty interests; (iv) be assigned to Xxxxxxxxx within ninety
(90)
days of Fellows acquiring said working interests and/or leasehold interests;
and
(v) apply to any and all renewals and/or extensions of the working interests
and/or leasehold interests in the AMI which are subject to said overriding
royalty.
XII.
FELLOWS’ EXPLORATION WORK OBLIGATIONS WITHIN THE
AMI.
Fellows agrees to perform the following exploration work obligations within
the
AMI:
A.
Leasehold
Acquisition.
Fellows
shall, within twenty-four (24) months from the Effective Date use its best
efforts to acquire a minimum of five thousand (5,000.00) net leasehold acres
either under oil and gas leases or under options to acquire oil and gas leases.
B.
3-D
Seismic.
Within
twenty-four (24) months from the Effective Date, Fellows agrees to acquire
an
amount of 3-D seismic data, as agreed upon by Xxxxxxxxx and Fellows, and
have
shall said 3-D seismic data interpreted so as to determine a minimum of one
(1)
potential well location.
C.
Exploratory
Xxxxx.
Within
thirty-six (36) months from the Effective Date, Fellows agrees to commence,
or
caused to be commenced, one (1) vertical test well with a minimum of two
laterals within the bore hole of said well and that such well shall be drilled
to a depth sufficient to test the Dakota Formation. If Fellows fails to
commence, or causes to be commenced, said test well in the aforementioned
time
period, then Fellows shall pay Xxxxxxxxx the sum of Fifty thousand and no/100
Dollars ($50,000.00).
XIII.
ABANDONMENT OF THE XXXXXX CREEK PROJECT.
Fellows
shall have the right to elect in writing to abandon the Xxxxxx Creek Project
during the term of the AMI. If Fellows should elect in writing to abandon
the
Xxxxxx Creek Project during the AMI, Fellows shall provide Xxxxxxxxx a cost
free
assignment of any and all leasehold acquired by Fellows within the AMI. Such
assignment shall be made to Xxxxxxxxx within sixty (60) days of the date
of
Fellows’ election. This Agreement shall terminate upon receipt of such
assignment. Any such assignments of leasehold made to Xxxxxxxxx from
Fellows’
abandonment
of the Xxxxxx Creek Project shall be free and clear of any and all burdens
except those of record at the time of Fellows’ acquisition of said leasehold.
The applicable drill site spacing units of any xxxxx drilled by Fellows,
or
caused to be drill by Fellows, which are producing, or capable of producing,
shall be exempted from such assignments. In the event Fellows elects to sell
the
Project or any of the leasehold acquired under this Agreement, Fellows agrees
to
notify Xxxxxxxxx in writing of such election, and may also provide, at Fellow’s
sole discretion, Xxxxxxxxx with the preferential right to market the Project
and
such leasehold on behalf of Fellows. In such event, and in the event Xxxxxxxxx
is thereafter successful in marketing the Project, any proceeds received
by
Fellows from Xxxxxxxxx’x marketing of the Project, associated leasehold and/or
geophysical data, which is greater than the actual costs incurred by Fellows
for
such items, shall be allocated seventy five percent (75.0%) to Fellows and
twenty five percent (25.0%) to Xxxxxxxxx.
XIV. REASSIGNMENT
RIDER.
Any
assignment of leasehold acquired by Fellows pursuant to this Agreement shall
be
subject to a reassignment rider in favor of Xxxxxxxxx. Said reassignment
rider
shall provide that Xxxxxxxxx receives a forty-five (45) day written notice
prior
to the rental anniversary date of any lease on which Fellows elects not to
pay
delay rentals. Said reassignment rider shall also provide that Xxxxxxxxx
shall
respond in writing within fifteen (15) days of receipt of such written notice
and give its election as to whether or not Xxxxxxxxx shall pay such rentals
and
take a reassignment of any such lease. Xxxxxxxxx’x failure to respond in writing
within the aforementioned fifteen (15) day period shall be deemed as Xxxxxxxxx’x
election not to pay rentals and not to take assignment of said lease. Fellows
shall have no liability for inadvertent failures or omissions to provide
the
foregoing notices to Xxxxxxxxx.
XV. XXXXXXXXX’X
OPTION TO PARTICIPATE. Xxxxxxxxx
shall have the right to elect in writing to acquire up to a non-promoted
ten
percent (10%) working interest in the second well drilled, or caused to be
drilled, by Fellows within the AMI. Should Xxxxxxxxx elect to participate
in the
second well drilled by Fellows, it will also have an on-going right to
participate at cost up to a ten percent (10%) working interest in all additional
xxxxx subsequently drilled, or caused to be drilled, by Fellows in the AMI.
Should Xxxxxxxxx
elect
not
to participate in the second well or any additional xxxxx within the AMI,
then
it shall be deemed to have relinquished any further participation rights
in the
AMI. Xxxxxxxxx shall notify Fellows of its election in writing within thirty
(30) days after receipt of notice of the proposal for the initial well or
subsequent xxxxx proposed by Fellows in the AMI. Failure to respond within
such
thirty (30) day period shall be deemed an election by Xxxxxxxxx not to
participate in the proposed well or any subsequent xxxxx proposed by Fellows
in
the AMI.
XVI. JOINT
OPERATING AGREEMENT.
Upon
Xxxxxxxxx’x election to participate as a working interest owner in the AMI under
terms of this Agreement, the Parties shall promptly enter into a mutually
agreed
Joint Operating Agreement (hereinafter referred to as “JOA”). If a JOA already
exists covering the AMI or any leasehold acquired by Fellows with the AMI,
then
Xxxxxxxxx’x working interest will be subject to said existing JOA.
XVII. ACCESS
TO LAND, GEOLOGICAL AND SEISMIC INFORMATION. Xxxxxxxxx,
its agents, representatives and employees, at Xxxxxxxxx’x sole risk and expense,
shall have reasonable access at all times to the rig floor of any well drilled,
or caused to be drilled by Fellows or its designee, within the AMI, and shall
at
all times be subject to the operator’s safety requirements. Further, during the
term of the AMI or according to the terms of any applicable operating agreement,
Xxxxxxxxx shall be supplied, as soon as is practicable, with copies of all
tests, logs and drilling reports that are taken in any well drilled, or caused
to be drilled, by Fellows within the AMI. Such information shall be provided
to
Xxxxxxxxx without regard as to whether Xxxxxxxxx owns a working interest
under
such well or xxxxx and shall be provided according to the data and notification
requirements set out in Exhibit “B” attached hereto. Xxxxxxxxx shall be allowed
access to land data within the AMI and shall be allowed to use any and all
seismic data, whether trade or proprietary, that
Fellows may acquire within the AMI, subject to the terms of any agreements
governing the use of such data. Such data shall include, without limitation,
title reports, title opinions, well reports, logs or other pertinent well
data,
proprietary seismic data, areo-mag surveys and the final processed formats
of
any such data. Xxxxxxxxx’x use and/or working of such data shall be as a
consultant for Fellows. Xxxxxxxxx agrees that it will hold any such well
and
seismic data in confidence, and agrees to use such well and seismic data
only
for its own internal purposes or for the benefit of assisting Fellows in
the
development of AMI, subject to the period of confidentiality described in
Article XXIII hereof. All seismic data, whether trade or proprietary, acquired
by Fellows and furnished to Xxxxxxxxx shall remain the property of Fellows
and
shall be returned to Fellows upon the termination of this Agreement.
XVIII. NOTICES.
All
notices and other communications required or permitted by the terms of the
Agreement or any notices that one party may desire to give to the other party
shall be in writing, unless otherwise specifically provided, and shall be
deemed
to have been properly delivered if personally handed to an authorized
representative of the party for whom intended, or sent by overnight delivery
service, or facsimile (with written confirmation of a successful transmission),
and addressed to the Parties to whom the notice is given at the address listed
below or such other addresses as any party may from time to time designate
by
notice in writing to the other party. The originating notice to be given
under
any provision hereof shall be deemed to be given only when received by the
party
to whom such notice is directed, and the time for such party to give any
notice
in response thereto shall run from the date that said originating notice
is
received. A response shall be deemed returned when deposited in the mail
or with
overnight delivery service or facsimile (with written confirmation of a
successful transmission), with postage or charges prepaid. Each party shall
have
the right to change its address at any time or from time to time by giving
written notice thereof to all other Parties. Notices by Parties hereto shall
be
promptly given in writing and shall be delivered as follows:
Xxxxxxxxx
Partner Associates, Inc.
Attn:
Mr.
M. Xxx Xxxxxxxxx
0000
Xxxx
Xxxxxx
Xxxxxx,
XX 00000
Phone:
000-000-0000
Fax:
000-000-0000
Attn:
Mr.
Xxxxxx Xxxxx
0000
Xxxxxxxx Xxxx
Xxxxxxx,
XX 00000
Phone:
000-000-0000
Fax:
303799-9017
XIX. RELATIONSHIP
OF THE PARTIES.
The
duties, obligations, and liabilities of the Parties hereto are intended to
be
several and not joint or collective. This Agreement is not intended to create,
and shall not be construed to create an association or trust, or to impose
a
partnership, duty, obligation, or liability with regard to any one or more
of
the Parties hereto. Each party hereto shall be individually responsible for
its
own obligations as herein provided.
XX. LAWS
AND REGULATIONS.
The
Parties, in conducting all operations under this Agreement, shall comply
with
all applicable state and federal laws, rules and regulations.
XXI. MODIFICATIONS.
No
change, modification or alteration of this Agreement shall be valid unless
the
same is made in writing, signed by the Parties hereto, and no course of dealing
between the Parties shall be construed to alter the terms hereof.
XXII. MEDIATION
AND ARBITRATION.
Any
controversy or claim (“claim”), whether based on contract, tort, statute or
other legal or equitable theory (including but not limited to any claim
of
fraud, misrepresentation or fraudulent inducement or any question of validity
or
effect of this Agreement, including this clause) arising out of or related
to
this Agreement (including amendments or extensions), or the breach or
termination thereof shall be first submitted to a mutually agreed neutral
third
party for mediation. If mediation is not successful, then such controversy
or
claim shall be settled by arbitration in accordance with the then current
CPR
Institute for Dispute Resolution Rules for Non-Administered Arbitration
of
Business Disputes, and this provision. The arbitration shall be governed
by the
United States Arbitration Act, 9 U.S.C. Sections 1 through 16 to the exclusion
of any provision of state law inconsistent therewith or which would produce
a
different result, and the judgment upon the award rendered by the arbitrator
may
be entered by any court having jurisdiction. The arbitration shall be held
in
Denver, Colorado, or such other location as agreed to by the parties, and
there
shall be one arbitrator who must be knowledgeable in oil and gas exploration
matters. Such arbitrator shall be chosen subject to the rules and procedures
as
provided by the CPR Institute for Dispute Resolution. The arbitrator shall
determine the claims of the parties and render a final award in accordance
with
the substantive law of the State of Colorado, excluding the conflicts provisions
of such law. The arbitrator shall set forth the reasons for the award in
writing. Except as required by law (and then only after prior notice to
the
other party), no party shall disclose the facts of the underlying dispute
or the
contents or results of the arbitration without the prior consent of all
parties.
Any claim by either party shall be time-barred if the asserting party does
not
give written notice to the other party or commence mediation with respect
to
such claim within two years after the cause of action accrues. All statutes
of
limitations and defenses based upon passage of time applicable to any claim
of a
defending party (including any counterclaim or claim of setoff) shall be
tolled
while the mediation and/or arbitration is pending. The obligation to arbitrate
any claim shall extend to the successors, assigns and third party beneficiaries
of the parties. The terms hereof shall not limit any obligations of a
party
to
defend, indemnify or hold harmless another party against court proceedings
or
other claims, losses, damages or expenses. The arbitrator shall order the
parties to promptly exchange copies of all exhibits and witness lists,
and, if
requested by a party, to produce other relevant documents, to answer up
to ten
interrogatories (including subparts), to respond to up to ten requests
for
admissions (which shall be deemed admitted if not denied) and to produce
for
deposition and, if requested, at the hearing, all witnesses that such party
has
listed and up to four other persons within such party’s control. Any additional
discovery shall only occur by agreement of the parties or as ordered by
the
arbitrator upon a finding of good cause. Each party shall bear its own
costs,
expenses and attorney’s fees; provided that if court proceedings to stay
litigation or compel arbitration are necessary, the party who unsuccessfully
opposes such proceedings shall pay all reasonable associated costs, expenses
and
attorney’s fees in connection with such court proceeding. In order to prevent
irreparable harm, the arbitrator shall have the power to grant temporary
or
permanent injunctive or other equitable relief. Prior to the appointment
of an
arbitrator 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
arbitrator (or in any event for longer than sixty (60) days). If any part
of
this arbitration provision is held to be unenforceable, it shall be severed
and
shall not affect either the duty to arbitrate or any other part of this
provision.
XXIII. CONFIDENTIALITY.
Fellows
and Xxxxxxxxx agree that all data and information generated as a result of
this
Agreement (hereinafter referred to as “Confidential Information”) will be
considered the Confidential Information of both of them. Provided, however,
Confidential Information shall not include data or information that is generally
available to the public other than through acts by either Party in violation
of
this Agreement or was in possession of a Party prior to Effective Date of
this
Agreement, subject to the following,
or that Fellows reasonably believes must be disclosed in order to comply
with
securities laws or regulations or any other laws or regulations to which
Fellows
is subject:
A.
During
the term of this Agreement each Party may disclose Confidential Information
only
to its direct employees, and to its subsidiaries or affiliates, agents, advisors
or representatives who have agreed, prior to being given access to the
Confidential Information, to be bound by the terms herein. After the effective
termination date of this
Agreement
and the AMI any geological or geophysical data gathered by the Parties, which
is
relevant to a Xxxxxx Creek Project, may be used by either Party and divulged
to
third parties for the purpose of selling or promoting geological or geophysical
ideas or concepts. Provided, however, the use of any licensed geophysical
data
will be strictly limited to the terms to any agreements governing the use
of
such data.
B.
Neither party shall use said Confidential Information for any purpose other
than
the uses contemplated by this Agreement.
C.
The
Parties shall maintain the confidentiality of the Confidential Information
(including the terms and conditions of this Agreement) and shall not disclose
the Confidential Information to any person, firm, corporation
or
association, except as mutually agreed, and specified in A. above.
D.
The
Parties shall, subject to mediation and arbitration as provided under this
Agreement:
1.
Be
liable to one another and to each of its directors, servants, agents and
employees for all losses, damages, costs (including reasonable legal costs
as
between legal counsel and their own client) and expenses which each Party
and
each of its directors, servants, agents and employees may suffer sustain,
pay or
incur as a direct result of a breach of the confidentiality obligations set
out
in this Agreement by the other Party; and,
2.
Indemnify each other and each of its respective directors, servants, agents
and
employees against all actions proceedings, claims, demands and costs
(including
reasonable legal costs as between legal counsel and their own client) which
may
be brought against or suffered by each Party and each of its directors,
servants, agents and employees that they may suffer, sustain, pay or incur
that
result directly from any breach of the confidentiality obligations set out
in
this Agreement by the other Party, its directors, officers and employees.
Each
Party shall be entitled to injunctive relief to prevent a breach or breaches
of
the confidentiality obligations of this Agreement.
E.
In the
event either Party or its representatives are required by any court or
legislative or administrative body (by oral questions, interrogatories, requests
for information or documents, subpoena, civil investigation, demand or similar
process) to disclose any Confidential Information, the disclosing Party shall
provide the other Party with prompt notice of such requirement in order to
afford the other Party an opportunity to seek an appropriate protective order.
However, if the other Party is unable to obtain or does not seek such protective
order and the disclosing Party or its representatives are, in the opinion
of
their counsel, required to disclose Confidential Information, disclosure
of such
information may be made without liability.
XXIV. JURISDICTION.
The
terms and conditions of this Agreement shall be interpreted and construed
in
accordance with the laws of the State of Colorado. This Agreement shall,
in
every regard, be treated as a contract made in the State of Colorado. To
the
extent any such matters are not subject to arbitration under Article XXII,
the
Parties irrevocably submit to the jurisdiction of the courts of the State
of
Colorado and the courts of appeal there from in respect to the interpretation
and construction of the terms and conditions of this Agreement.
XXV. ENTIRE
AGREEMENT.
No
amendments shall be made to this Agreement unless in writing and executed
by the
parties. This Agreement supersedes all other prior agreements, documents,
writings and verbal understandings among the Parties, regarding the Project
and
the Leases.
XXVI. MISCELLANEOUS.
This
Agreement may be executed in one document, signed by all Parties, or in a
number
of counterparts; and when executed in counterpart, all such counterparts
shall
constitute one document. This Agreement and Exhibits, attached hereto and
made a
part hereof, shall inure to the benefit of and be binding upon the Parties,
their successors and assigns.
IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement this 9th
day of
January, 2004.
XXXXXXXXX PARTNER ASSOCIATES, INC. |
By: /s/ Xxxxx X. Xxxxxx |
Xxxxx
X. Xxxxxx, as
attorney-in-fact
|
FELLOWS ENERGY LTD. |
By: /s/
Xxxxxx Xxxxx
|
Xxxxxx Xxxxx, President |
EXHIBIT
"A"
attached
to and made a part of the Xxxxxx
Creek Project Purchase Agreement
dated
January
9, 2004
by and
between
Xxxxxxxxx
Partner Associates, Inc.
and
Fellows
Energy Ltd.
LSE
No.
|
LSE
DATE
EXP
DATE
|
LESSOR NAME | LESSEE NAME |
LEGAL
DESCRIPTION |
GROSS
ACRES
|
BOOK |
PAGE |
COUNTY |
STATE |
001A-013
|
November
1, 1994
October
31, 2004
|
WYW134155
United States of America, Wyoming State BLM Office
|
Xxxxx
Xxxx
|
Township
37 North, Range 68 West, 6th P.M.
Section
13: N/2SE/4
|
80.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-019
|
June
1, 0000
Xxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
37 North, Range 68 West, 6th P.M.
Section
24: W/2NW/4, W/2NE/4
|
160.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-020
|
June
1, 0000
Xxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
38 North, Range 68 West, 6th P.M.
Section
20: S/2SE/4
Section
29: NE/4, E/2SE/4
Section
31: Xxx 0(00.00), X/0XX/0, XX/0, XX/0XX/0
|
639.09
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-034
|
December
1, 1997
November
30, 2007
|
WYW143709
United States of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
37 North, Range 68 West, 6th P.M.
Section
23: S/2NE/4, SE/4NW/4
Section
24: S/2SW/4
Section
25: All
Section
26: NW/4, SE/4
Section
34: NW/4, SE/4SW/4
|
1,360.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-039
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
37 North, Range 68 West, 6th P.M.
Section
6: SE/4NE/4
Section
7: Xxx 0(00.00), X/0XX/0, XX/0XX/0
Section
8: S/2
Section
17: S/2
Section
18: Lots 1(39.54), 2(39.43), 3(39.31), 4(39.20), E/2W/2, SE/4
Section
19: Lots 1(39.20), 3(39.46), 4(39.60), E/2SW/4, SE/4
Section
20: S/2
Section
30: SE/4SE/4
|
2,035.03
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-040
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
37 North, Range 68 West, 6th P.M.
Section
10: N/2SE/4
Section
13: S/2SW/4
Section
14: W/2NW/4, W/2SE/4
Section
15: NW/4
Section
27: SE/4
Section
35: SE/4SW/4
|
680.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-041
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
37 North, Range 68 West, 6th P.M.
Section
15: SE/4
Section
23: NW/4NE/4
|
200.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-042
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
38 North, Range 68 West, 6th P.M.
Section
1: S/2
Section
2: S/2
Section
9: E/2
Section
10: N/2
Section
12: N/2N/2
|
1,440.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-043
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
38 North, Range 68 West, 6th P.M.
Section
11: S/2
Section
13: E/2NE/4, NW/4
Section
14: All
Section
23: W/2, SE/4
|
1,680.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
38 North, Range 68 West, 6th P.M.
Section
11: S/2
Section
13: E/2NE/4, NW/4
Section
14: All
Section
23: W/2, SE/4
|
1,680.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-044
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Swift
Energy Company
|
Township
38 North, Range 68 West, 6th P.M.
Section
22: SW/4
Section
26: W/2SW/4, SE/4SW/4
Section
29: NW/4
Section
32: NE/4
Section
33: N/2, N/2SW/4
|
1,000.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-046
|
April
1, 0000
Xxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
37 North, Range 68 West, 6th P.M.
Section
4: S/2SE/4
Section
11: NE/4NE/4
Section
12: N/2NE/4, SE/4NE/4
|
240.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-047
|
April
1, 0000
Xxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
37 North, Range 69 West, 6th P.M.
Section
1: Xxxx 0, 0, X/0X/0, XX/0
Section
2: Xxx 0, X/0XX/0, XX/0
Xxxxxxx
0: Xxxx 0, 0, 0, X/0X/0, X/0
Xxxxxxx
4: Xxxx 0, 0, X/0X/0
Xxxxxxx
00: E/2
Section
12: X/0XX/0, XX/0XX/0, XX/0, XX/0XX/0, S/2SE/4
|
2,240.22
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-051
|
July
1, 0000
Xxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
37 North, Range 68 West, 6th P.M.
Section
5: S/2SE/4
|
80.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-052
|
July
1, 0000
Xxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
38 North, Range 68 West, 6th P.M.
Section
31: Lot 1(39.10)
|
39.10
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-069
|
November
2, 1999
November
2, 2004
|
99-433
State of Wyoming, acting by and through its Board of Land
Commissioners
|
Xxxxx
X. Xxxxxxxx
|
Township
38 North, Range 68 West, 6th P.M.
Section
36: All
|
640.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-073
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
38 North, Range 69 West, 6th P.M.
Section
27: S/2SW/4, SW/4SE/4
Section
33: SW/4NE/4, SW/4
Section
34: E/2E/2
|
480.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-075
|
February
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Xxxxx
X. Xxxxxxxx
|
Township
38 North, Range 69 West, 6th P.M.
Section
33: X/0X/0, XX/0XX/0, XX/0XX/0, X/0XX/0
Section
34: W/2E/2, N/2NW/4, S/2SW/4
Section
35: NE/4, N/2NW/4
|
880.00
|
N/A
|
N/A
|
Converse
|
Wyoming
|
001A-077
|
November
1, 0000
Xxxxxxx
00, 0000
|
XXX000000
Xxxxxx Xxxxxx of America, Wyoming State BLM Office
|
Energy
West Services, LLC
|
Township
37 North, Range 68 West, 6th P.M.
Section
4: Xxxx, 0, 0, 0, XX/0XX/0
Section
9: NW/4
|
322.76
|
N/A
|
N/A
|
Converse
|
Wyoming
|
Exhibit
“B”
Attached
to that certain Exploration Services Funding Agreement
dated
effective January 1, 2004 between Xxxxxxxxx
Partner Associates, Inc.
and
Fellows
Energy Ltd.
1.
Well Data to be supplied by Operator during drilling.
During
the drilling of any Test Well drilled under the captioned Agreement, Operator
shall provide to Xxxxxxxxx, at no cost or expense to Xxxxxxxxx, copies
of all
well data relating to said Test Well that would normally be supplied to
a
working interest participant in such well. Such information shall include,
without limitation:
A. Daily
drilling reports including geological reports showing the nature of all
work
done and depth and formations penetrated;
B. A
copy of
any mechanical or electrical survey that is run in the course of the
well;
C. One
copy
of the Lithologic log on a daily basis, if run;
D. One
set
of ditch samples, washed and dried, if taken;
E. A
digital
copy, if made, of all wireline surveys conducted;
F. The
results of any drill stem test carried out. .
2.
Well data to be supplied by Operator.
As
soon
as practicable after completion of the drilling of said Test Well, Operator
shall provide to Xxxxxxxxx listed below, at no cost or expense to Xxxxxxxxx,
a
copy of the final well completion report. Each copy of the well report
shall
include the following:
A. |
A
copy of all wireline surveys conducted;
|
B. |
A
copy of the mud logging survey;
|
C. |
A
copy of the velocity survey, if run;
|
D. |
A
copy of the well site geologist's description of the ditch samples,
if
taken;
|
E. |
A
copy of the well site geologist's description of the sidewall
cores or
conventional cores, if taken;
|
E. |
A
copy of the well site geologist's description of the sidewall
cores or
conventional cores, if taken;
|
F. |
A
copy of the commercial core analyses (sidewall or conventional)
if cores
are taken;
|
G. |
A
copy of the commercial analyses of the water, gas or oil, if
test and
recovery that are made;
|
H. |
A
copy of the analyses, if made, made in dating a sample radioactively
or
palaentologically, plus copy of core photographs, if
taken;
|
I. |
A
copy of the geological reports;
|
J. |
A
copy of the well location map;
|
K. |
A
copy of the well history;
|
L. |
A
copy of the well records;
|
M. |
A
copy of the drilling report;
|
N. |
A
copy of the mud record;
|
O. |
A
copy of the bit record;
|
P. |
A
copy of the formation test data, if a test is made;
|
Q. |
A
copy of all other data relative to the
well.
|
3.
Parties to receive data.
Xxxxxxxxx
Partner Associates, Inc.
0000
Xxxx
Xxxxxx
Xxxxxx,
XX 00000
Phone
000-000-0000
Fax
000-000-0000