Preview | Purchase and Sale Agreement |

Article I Assets		5

Section 1.01	Agreement to Sell and Purchase	5
Section 1.02	Assets	5
Section 1.03	Excluded Assets	6

Article II Purchase Price		7

Section 2.01	Purchase Price	7
Section 2.02	Deposit	7
Section 2.03	Allocated Values	7
Section 2.04	Effective Time	7

Article III Title Matters		8

Section 3.01	Title Examination Period	8
Section 3.02	Defensible Title and Permitted Encumbrances	8
Section 3.03	Title Defect	10
Section 3.04	Notice of Title Defects.	11
Section 3.05	Remedies for Title Defects.	13
Section 3.06	Special Warranty of Title	13
Section 3.07	Consents to Assignment	14
Section 3.08	Remedies for Title Benefits.	14

Article IV Environmental Matters		15

Section 4.01	Environmental Review.	15
Section 4.02	Environmental Definitions.	16
Section 4.03	Notice of Environmental Defects.	17
Section 4.04	Remedies for Environmental Defects.	17

Article V Representations and Warranties of Seller		18

Section 5.01	Sellers Existence	18
Section 5.02	Legal Power	19
Section 5.03	Execution	19
Section 5.04	Brokers	19
Section 5.05	Bankruptcy	19
Section 5.06	Suits	19
Section 5.07	Royalties	19
Section 5.08	Taxes	19
Section 5.09	Contracts	20
Section 5.10	Liens	20
Section 5.11	Information	20


Article VI Representations and Warranties of Buyer		20

Section 6.01	Buyers Existence	20
Section 6.02	Legal Power	20
Section 6.03	Execution	20
Section 6.04	Brokers	20
Section 6.05	Bankruptcy	21
Section 6.06	Suits	21
Section 6.07	Qualifications	21
Section 6.08	Investment	21
Section 6.09	Funds	21
Section 6.10	Information	22

Article VII Sellers Conditions to Close		21

Section 7.01	Representations	22
Section 7.02	Performance	22
Section 7.03	Pending Matters	22
Section 7.04	Purchase Price	22
Section 7.05	Execution and Delivery of the Closing Documents	22
Section 7.06	Consents and Preferential Rights to Purchase	22

Article VIII Buyers Conditions to Close		22

Section 8.01	Availability & Cost of Injected Water	22
Section 8.02	Hydrocarbon Leases	23
Section 8.03	Representations	22
Section 8.04	Performance	23
Section 8.05	Pending Matters	23
Section 8.06	Execution and Delivery of the Closing Documents	23
Section 8.07	Consents and Preferential Rights to Purchase	23

Article IX Tax Matters		23

Section 9.01	Transfer Taxes	23
Section 9.02	Ad Valorem and Similar Taxes	23

Article X The Closing		23

Section 10.01	Time and Place of the Closing	23
Section 10.02	Adjustments to Purchase Price at the Closing.	24
Section 10.03	Closing Statement	24
Section 10.04	Actions of Seller at the Closing.	24
Section 10.05	Actions of Buyer at the Closing.	25

Article XI Termination		25

Section 11.01	Right of Termination	25
Section 11.02	Effect of Termination	26
Section 11.03	Termination Damages.	26
Section 11.04	Attorneys Fees, Etc	27


Article XII Post Closing Obligations		27

Section 12.01	Allocation of Expense and Revenues.	27
Section 12.02	Final Accounting Statement.	28
Section 12.03	Further Cooperation	29

Article XIII Operation of the Assets		29

Section 13.01	Operations after Execution Date	29
Section 13.02	Limitations on the Operational Obligations and Liabilities of Seller

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