Preview | Purchase and Sale Agreement |


1.	SALE AND PURCHASE OF THE ASSETS	1
1.1	Acquired Assets	1
1.2	Assumed Liabilities	2

2.	PURCHASE PRICE	3
2.1	Purchase Price	3
2.2	Deposit	3
2.3	Adjustments to the Base Purchase Price	3
2.4	Allocation	4

3.	CLOSING	5
3.1	Closing	5
3.2	Delivery by Seller	5
3.3	Delivery by Buyer	5
3.4	Further Cooperation	6

4.	ACCOUNTING ADJUSTMENTS	6
4.1	Closing Adjustments	6
4.2	Strapping and Gauging	6
4.3	Taxes	6
4.4	Post-Closing Adjustments	7
4.5	Suspended Funds	8
4.6	Audit Adjustments	8
4.7	Cooperation	8

5.	DUE DILIGENCE: TITLE MATTERS	8
5.1	General Access	8
5.2	Defensible Title	9
5.3	Defect Letters	10
5.4	Effect of Title Defect	12
5.5	Possible Upward Adjustment	13
5.6	Preferential Rights and Consents	14

6.	ENVIRONMENTAL ASSESSMENT	15
6.1	Physical Condition of the Assets	15
6.2	Inspection and Testing	16
6.3	Notice of Adverse Environmental Conditions	17
6.4	Rights and Remedies for Adverse Environmental Conditions	18
6.5	Remediation by Seller	19

7.	REPRESENTATIONS AND WARRANTIES OF SELLER	20
7.1	Sellers Representations and Warranties	20
7.2	Scope of Representations of Seller	22

8.	REPRESENTATIONS AND WARRANTIES OF BUYER	23
8.1	Buyers Representations and Warranties	23

9.	CERTAIN AGREEMENTS OF SELLER	24
9.1	Maintenance of Assets	24
9.2	Records	25

10.	CERTAIN AGREEMENTS OF BUYER	25
10.1	Plugging Obligation	25
10.2	Plugging Bond	25
10.3	Sellers Logos	26
10.4	Like-Kind Exchanges	26

11.	CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER	26
11.1	No Litigation	26
11.2	Representations and Warranties	26

12.	CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER	26
12.1	No Litigation	26
12.2	Representations and Warranties	26

13.	TERMINATION	27
13.1	Causes of Termination	27
13.2	Effect of Termination	27
13.3	Sellers Breach	28
13.4	Termination Pursuant to Section 13.1	28
13.5	Effect of Termination	28

14.	INDEMNIFICATION	28
14.1	Indemnification by Seller	28
14.2	Indemnification by Buyer	30
14.3	Physical Inspection	31
14.4	Notification	31

15.	MISCELLANEOUS	32
15.1	Casualty Loss	32
15.2	Confidentiality	32
15.3	Notices	33
15.4	Press Releases and Public Announcements	33
15.5	Comnliance with Express Negligence Test	34
15.6	Governing Law	34
15.7	Exhibits	34
15.8	Fees, Expenses, Taxes and Recording	34
15.9	Assignment	35
15.10	Entire Agreement	35
15.11	Severability	35
15.12	Captions	35

1.1(A)	Oil and Gas Leases and Land
1.1(B)	Deeded Land
1.1(C)	Other Personal Property
2.4	Allocation
3.2(A)	Form of Assignment and Bill of Sale
3.2(G)	Form of Warranty Deed
7.1(E)	AFEs
7.1(G)	Pending Litigation
7.1(K)	Material Agreements
7.1(L)	Consents and Preferential Purchase Rights
7.1(M)	Gas Imbalances

DEFINED TERM	PAGE	SECTION
Adverse Environmental Condition		6.3
Agreement	1	Preamble
Allocated Value		2.4
Allocated Values		2.4
Assets		1.1
Assumed Liabilities		1.2
Base Purchase Price		2.1
Buyer		Preamble
Buyer Group		14.1
Buyers Response		5.3(C)(ii)
Casualty		15.1(A)
Casualty Loss		15.1(B)
Closing		3.1
Closing Adjustment Statement		4.1
Closing Date		3.1
Confidential Information		15.2(A)
Deeded Land		1.1(B)
Deposit		2.2
Easements		1.1(A)
Effective Time		2.3(A)(iii)
Environmental Consultant		6.4(F)
Environmental Defect Deductible		6.3
Environmental Defect Notice		6.3
Environmental Defect Value		6.3
Environmental Laws		6.2(C)
Equipment		1.1(B)
Exclusion Adjustment		5.6(A)
Indemnity Deductible	28	14.1(D)(iv)
Interest Addition		5.5
Land		1.1(A)
Leases		1.1(A)
Loss		14.1(A)
Losses		14.1(A)
Net Revenue Interest		5.2(A)(i)
NORM		6.1(B)
Notice		5.3(A)
Oil and Gas		1.1(D)
Parties		Preamble
Party		Preamble
Permits		1.1(A)
Permitted Encumbrances		5.2(C)
Post-Closing Adjustment Statement		4.4(A)

15.13	Time of the Essence	35
15.14	Counterparts	35