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Advisory Service Agreement

 

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Title:

Advisory Service Agreement

Entities:

Indigo-Energy, Inc.; American Association of Petroleum Landmen

Date:

2006

Size:

Preview shows 5KB of 46KB total

Price:

$48

ID:

#2547372

 

 

► Services ► Services Agmt. ► Miscellany ► Advisory Services Agreements
► Miscellany ► Associations

 

 

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                           ADVISORY SERVICE AGREEMENT

      THIS ADVISORY SERVICE AGREEMENT (the "Agreement") is entered into as of
this 23 day of June, 2006 (the "Effective Date") by and between INDIGO-ENERGY,
INC., a Nevada corporation (the "Company"), and HUB ENERGY, LLC, a Pennsylvania
limited liability company (the "Advisor" and together with the Company, the
"Parties" each a "Party").

                                   WITNESSETH:

      WHEREAS, the Company has requested and the Advisor has agreed to provide
exclusive advisory services in connection with the Company's contemplated
exploration and development of certain oil and gas prospects located in
Pennsylvania, West Virginia, Kentucky, and Illinois (collectively, the
"Premises");

      NOW, THEREFORE, in consideration of the foregoing and the mutual
representations, warranties and covenants contained herein, and other good and
valuable consideration, the adequacy and receipt thereof which is hereby
acknowledged, and intending to be legally bound hereby, the Parties to this
Agreement agree as follows:

      Section 1. Definitions; Construction. For purposes of this Agreement,
unless the context otherwise requires, the following defined terms shall have
this meanings set out below:

            (a) "Common Stock" has the meaning set forth in Section 4(a)(1)
herein;

            (b) "Deep Well" means any well drilled to a total depth of 6,000
feet or greater;

            (c) "Deposit" has the meaning set forth in Section 4(c) herein;

            (d) "Drilling and Operating Agreement" means the Drilling and
Operating Agreement by and between the Advisor and the Company or its assignees,
substantially in the form attached as Exhibit C hereto; ---------

            (e) "Drilling Services Fee" has the meaning set forth in Section
4(b) herein;

            (f) "Effective Date" has the meaning set forth in the preamble;

            (g) "Gathering Lines" has the meaning set forth in Section 9(a)
herein;

            (h) "Gross Well(s)" means the wells in which a Party or entity holds
a Working Interest (as that term is defined herein);

            (i) "Horizontal Well" means any well that is not vertically drilled;




            (j) "Landowner's Royalty Interest" means an ownership interest in
oil and gas production, or the proceeds from the sale thereof, to be received
free and clear of all costs of development, operation or maintenance, reserved
by the owner of the property where producing wells are located upon creation of
an oil and gas lease.

            (k) "Lease Acquisition(s)" has the meaning set forth in Section 6
herein;

            (l) "Losses" has the meaning set forth in Section 17 herein;

            (m) "Net Revenue Interest" means the net interest in production from
a well, or the proceeds therefrom, after payments to those holding Landowner's
Royalty Interests and Overriding Royalty Interests (as those terms are defined
herein) and subject to the proportionate participation rights of parties to any
agreements of mutual interest;

            (n) "Net Well" means the equivalent of a full Working Interest in
one well obtained by the aggregation of partial Working Interests in two (2) or
more wells;

            (o) "New Pipeline(s)" has the meaning set forth in Section 9(b)
herein;

            (p) "Operator(s)" means the party or parties responsible for the
operations of wells once they have been drilled and completed;

            (q) "Option Agreement" means the Option Agreement substantially in
the form attached as Exhibit A hereto;

            (r) "Overriding Royalty Interest" means an ownership interest in oil
and gas production, or the proceeds from the sale thereof, to be received free
and clear of all costs of development, operation or maintenance;

            (s) "Shallow Well" means any well drilled to a total depth of less
than 6,000 feet;

            (t) "Term" has the meaning set forth in Section 3 herein;

            (u) "Turnkey Drilling Price" means the amount paid to the Operator
under each Drilling and Operating Agreement, subject to the modifications set
forth in Sections 4(e) and 7(a) herein; and

            (v) "Working Interest" means an ownership interest in a lease giving
the interest owner certain rights which may include the right to develop and
receive oil and/or gas produced from a well or the revenues from the sales
thereof subject to the costs of development, production, operation and marketing


 

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