TERMINATION OF PARTICIPATION AGREEMENT
WHEREAS, Xxxxxxx Exploration Company, Inc., a Kansas corporation
d/b/a Xxxxxx X. Xxxxxxx Exploration Company, Inc. within the
State of California ("Xxxxxxx") and Delta Petroleum Corporation
("Delta") entered into that certain Participation Agreement dated
February 10, 1997 covering Xxxxxxx'x Bali Prospect within Xxxxxx
County, California ("Bali Participation Agreement").
WHEREAS, under the provisions of the Bali Participation
Agreement, Delta agreed to participate with Xxxxxxx for a
proportionate 15% share of leasehold acquisition and the
collection of 3-D seismic data within the Bali Prospect.
WHEREAS, an Area of Mutual Interest ("AMI") was established
consisting of lands lying within Townships 7 and 8 North, Range 2
East, Xxxxxx County, California.
WHEREAS, the parties hereto wish to terminate the Bali
Participation Agreement as to all terms and provisions contained
therein. By the execution of this document, Xxxxxxx and
Delta hereby relieve each other of the obligations created under
the provisions of the Bali Participation Agreement.
NOW THEREFORE, for and in consideration of Ten Dollars ($10.00)
and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged:
1) Delta agrees that the amount due Delta has been calculated
as follows:
Delta Bali Investment as of 3/20/98: $356,916.02
Unbilled Bali Investment costs incurred
prior to 2/3/98 $7,055.08
Credit for prepaid Bali Leasehold
Costs: (4,107.00)
Delta's Total Investment: $359,864.10
Less Amounts Due Xxxxxxx
Current AR $107,696.50
Unbilled Bali Costs incurred
prior to 2/3/98: $7,055.08
Credit for prepaid Bali Leasehold
Costs: (4,107.00)
Total Receivables Due Xxxxxxx: $110,644.58
Net Due Delta: $249,219.52
Delta agrees that the foregoing is a full and complete
accounting by Xxxxxxx. Delta further acknowledges that it
received Xxxxxxx'x check in the amount of $249,219.52 on
March 31, 1998 and that the Bali Participation Agreement and all
rights stated thereunder are terminated effective that date.
Delta agrees that with such payment, it has been fully
repaid for any credits it is owed by Xxxxxxx for Xxxxxxx'x
repurchase of Delta's interest under the Bali Participation
Agreement.
2) Delta expressly disclaims all right, title and interest in
and to any rights previously owned or claimed under the Bali
Agreement whether as to leasehold, farmin acreage, 3D
seismic data, or the proceeds of any future leasehold or seismic
data sales made by Xxxxxxx, or any activity conducted by Xxxxxxx
within the Area of Mutual Interest described in said
Agreement, whether now or in the future.
3) Delta expressly acknowledges that no xxxxx have been drilled
or proposed under the AMI in which the parties have jointly
participated or agreed to participate.
4) Delta agrees that it has not received 3D seismic data in
which Xxxxxxx claims a proprietary interest or confidentiality
agreement.
5) Delta agrees to timely execute any further notices that
Xxxxxxx deems necessary to serve as a full and complete
disclaimer of their interest.
6) Delta warrants that it has not independently acquired any
leasehold, or the rights to any leasehold, under the AMI.
7) The parties hereto expressly represent and warrant that the
persons executing the agreement on their behalf have the
requisite corporate authority to do so and that each party
is materially relying upon that representation.
This Termination of Participation Agreement shall be binding upon
the heirs, successors and assigns of the parties hereto.
IN WITNESS WHEREOF, this instrument is executed on this day
of 1998:
Xxxxxxx Exploration Company, Inc.,
a Kansas Corporation d/b/a Xxxxxx X.
Xxxxxxx Exploration Company, Inc.
within the State of California
By:
Xxxxx X. Xxxxx
Attorney-in-Fact
Delta Petroleum Corporation
By:
Xxxxx X. Xxxxxx, President
