EXHIBIT “A”
Exhibit 99.1
EXHIBIT “A”
Attached to and made a part of that certain Operating Agreement effective March 1, 2003, by and between American Coastal Energy, Inc., as Operator, and Challenger Minerals Inc. et al, as Non-Operators, pertaining to Block 268, Xxxxxx Island Area, South Addition, Offshore Louisiana.
I. LEASE:
Oil and Gas Lease bearing Serial No. OCS-G 16363 effective September 1, 0000 xxxxxxx xxx Xxxxxx Xxxxxx xx Xxxxxxx, as Lessor, and UMC Petroleum Corporation and Xxxxxxx Resources Corporation, as Lessee, covering all of Xxxxx 000, Xxxxxx Xxxxxx Xxxx, Xxxxx Addition, OCS Leasing Map, Louisiana Map No. 4A.
II. DIVISION OF INTERESTS:
|
Owner Name |
|
Int |
|
WI-BPO |
|
NRI-BPO |
|
WI-APO |
|
NRI-APO |
|
American Coastal Energy, Inc |
|
WI |
|
0.17000000 |
|
0.1275000 |
|
0.1487500 |
|
0.1115625 |
|
American Coastal Energy II, Ltd. |
|
WI |
|
0.00000000 |
|
N/A |
|
0.0500000 |
|
0.0375000 |
|
Challenger Minerals Inc. |
|
WI |
|
0.10000000 |
|
0.0750000 |
|
0.0875000 |
|
0.0656250 |
|
Reef Global Energy I, L.P. |
|
WI |
|
0.05000000 |
|
0.0375000 |
|
0.0437500 |
|
0.0328125 |
|
Bright & Company I, Ltd. |
|
WI |
|
0.05000000 |
|
0.0375000 |
|
0.0437500 |
|
0.0328125 |
|
Patriot Exploration Co., Inc. |
|
WI |
|
0.03000000 |
|
0.0225000 |
|
0.0262500 |
|
0.0196875 |
|
Sterling Energy Inc. |
|
WI |
|
0.60000000 |
|
0.4500000 |
|
0.6000000 |
|
0.4500000 |
|
Minerals Management Service * |
|
RI |
|
n/a |
|
0.1666667 |
|
n/a |
|
0.1666667 |
|
Backsen, et al Override* |
|
OR |
|
n/a |
|
0.0200000 |
|
n/a |
|
0.02000000 |
|
Panther Group Override* |
|
OR |
|
n/a |
|
0.0300000 |
|
n/a |
|
0.03000000 |
|
Ocean Energy, Inc.,et al Override* |
|
OR |
|
n/a |
|
0.0333333 |
|
n/a |
|
0.0333333 |
TOTALS
WI-APO-As set for in Article 1.1F of the Agreement, within 15 days of notice of Project Payout, those owners of Interest comprising the CMI Group shall reassign to ACE and its designee, ACE II, an undivided Twelve and one-half percent (12.5%) working interest, (“WI-APO”) proportionately reduced as to the interest conveyed by the Assignment into the Assignor. The particular amounts of interests that shall be assigned to ACE and ACE II in the reassignment shall be as set forth in the Division of Interest table above. As more particularly defined in the Agreement, Project Payout shall be that point in time when ACE has recouped from its share of the proceeds from the sale of hydrocarbon production from the Lease (after deduction of its prorata share of lessor’s royalty, those overriding royalties recognized hereunder and listed on the table above and taxes on production (excluding income taxes) the sum of its share of the costs of acquiring and interpreting pertinent seismic and other data, drilling, Testing, completing, reworking, equipping, constructing, installing and otherwise operating, as applicable such well(s), structure(s), flowline(s) and other equipment on or for the benefit of the Lease (including, without limitation, those costs arising under the Production Handling Agreement referenced under “Permitted Encumbrances” and marketing such production).
|
WI |
— |
Working Interest |
|
NRI |
— |
Net Revenue Interest |
|
RI |
— |
Royalty Interest |
|
OR |
— |
Overriding Royalty Interest |
|
BPO |
— |
Before Project Payout |
|
APO |
— |
After Project Payout |
|
* |
— |
Permitted Encumbrance |
|
NOTE: |
|
AFTER 9.4 BCFG IS PRODUCED AND SOLD FROM THE LEASE, THE OCEAN ENERGY, INC., ET AL, OVERRIDE SHALL ESCALTE TO 6.66667% OF 8/8THS, WITH SUCH INCREASED OVERRIDING ROYALTY INTEREST TO BE BORNE PROPORTIONATELY BY ALL OF THE PARTIES. |
III. PERMITTED ENCUMBRANCES:
|
I. |
Assignment of Overriding Royalty Interest dated August 28, 1996 by and between UMC Petroleum Corporation and Xxxxxxx Resources Corporation, as Assignors, and Xxx X. Xxxxxxx, Xxxxxxx X. and Xxxx X. Xxxxxxx, Xxxxxx X. Xxxxxxx and Xxxxxx X. XxXxxxxxxx and Xxxxx X. Xxxxxx, Trustees, as Assignees, whereby an overriding royalty interest equal to 2% of 6/6ths was created in favor of the Assignees affecting the Lease. |
