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HomeMy WebLinkAbout974755RECEIVING Ly 7 j S BOOK: 826 PAGE: 036 1 2__3 /3 JEANNE WAGNER ]h j7,1 LINCOLN COUNTY CLERK, KEMMERER, WY NOTICE OF CONFIDENTIALITY RIGHTS: "IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER." AMENDMENT OF MORTGAGE (Lincoln, Sweetwater, Sublette and Uinta Counties, Wyoming; Lea County, New Mexico; Wharton, Live Oak and Hidalgo Counties, Texas; and San Juan County, Utah) This Amendment of Mortgage is made and entered into by the undersigned, David M. Reavis, a Texas resident; Lodestone Operating Inc., a Texas corporation; and Lodestone Operating, LLC, a Texas limited liability company, (hereinafter collectively called "Mortgagor in favor of Barry Bruce Conrad II, Trustee, in trust for the benefit of Park Cities Bank, (hereinafter called "Noteholder whose principal office and place of business is 5307 E. Mockingbird Lane, Suite 350, Dallas, Texas 75206. A. RECITALS 1. Under date of May 18, 2012, Mortgagor executed a promissory note payable to Noteholder, or its order, in the original principal sum of Five Million and No /100 Dollars ($5,000,000.00) (the "Note pursuant to a Credit Agreement of even date therewith between said Mortgagor and Noteholder, which Note is secured by a Mortgage, Deed of Trust, Financing Statement Assignment dated May 18, 2012, from Mortgagor to Mortgagee as Lender, recorded as follows: Wharton County, Texas Live Oak County, Texas Uinta County, Wyoming Sweetwater County, Wyoming Lincoln County, Wyoming Sublette County, Wyoming San Juan County, Utah Lea County, New Mexico nLV G✓ E LI JVILV IJ Cll 11J.JV /'11v1 Book 888, Page 902 Doc. #199848 Book 981, Page 250 Book 1195, Page 2871 Book 787, Page 149 Book 147, Page 560 Book 939, Page 722 Book 1781, Page 268 2. Mortgagor has entered into a First Amendment of Credit Agreement effective May 31, 2013, which amends the May 18, 2012 Credit Agreement. 3. Mortgagee hereby appoints John Dienes as the Trustee for the Mortgage and Deed of Trust. 4. Mortgagor has pledged additional collateral located in Hidalgo County, Texas, described in Exhibit A attached hereto, and has executed a Mortgage and Deed of Trust effective May 31, 2013, which has been duly recorded in the Official Records of Hidalgo County, Texas as Instrument Number 2013- 2468618. B. AGREEMENTS In consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Mortgagor, as security for payment of the Note and all other indebtedness described in and covered by the Mortgage, Mortgagor has and hereby does: 1. GRANT, SELL, CONVEY AND MORTGAGE unto the Trustee, for the benefit of Noteholder, the oil and gas leases and properties described in and covered by the Mortgage, and this Amendment of Mortgage including, but not limited to, the above described Interests (hereinafter referred to collectively as the "Security Properties in exact accordance with and subject to the terms and provisions of the Mortgage. 2. ASSIGN to the Noteholder, in accordance with the terms of the Mortgage, all of the proceeds of sale of production of oil and gas attributable to the interest of Mortgagor in the Security Properties. 3. GRANT to Noteholder a security interest in the personal property, equipment, accounts, general intangibles, as extracted collateral, severed minerals, fixtures and the proceeds thereof pertaining to the Security Properties, all in accordance with the terms of the Mortgage. 4. ADOPT, RATIFY AND CONFIRM the Mortgage as to all of its terms, provisions, warranties, representations and covenants, and RENEW AND EXTEND all of the liens and other rights, titles and interests created and /or carried forward thereby, and hereby incorporate into this Amendment all of the terms of the Mortgage. 5. WARRANT AND REPRESENT that Mortgagor's working interest and net revenue interest in production of oil and gas as described in the Mortgage are free and clear of all liens and encumbrances other than those created and /or carried forward hereby. 6. AGREE to execute any such additional and further documents required by Noteholder and /or by Texas statute to properly perfect and confirm the validity of the lien and Mortgage upon the Security Properties. 7. A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE NOTEHOLDER (MORTGAGEE) TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON AN EVENT OF DEFAULT WHICH IS ONGOING AND UNCURED BY THE MORTGAGOR UNDER THIS MORTGAGE. EXECUTED effective the 2 9 day of October, 2013. Amendment of Mortgage Page 2 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis 03 STATE OF TEXAS COUNTY OF DALLAS Given under my hand and seal of office this MARY DURANT :79 tr. Notary Public, State of Texas My Commission Expires April 06, 2015 MORTGAGOR: LODESTONE OPERATING, LLC A Texas .L`) ited L bili pany R avis Member /Manage LODEST G NE OPERATING INC. D:..'..' Reavis President DAVID k2EAVIS, 1 IVIDUALLY ACKNOWLEDGEMENT Before me, a notary public in and for this state, on this (1 I day of e4 2013, personally appeared David M. Reavis, to me known to be the identical person who subscribed the name of the maker thereof to the foregoing instrument and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of himself, Lodestone Operating Inc., and Lodestone Operating, LLC, for the uses and purposes therein set forth. day of 4 e 4 2013. Notary Public in acid Y for the State of Texas Amendment of Mortgage Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Page 3of17 38 EXHIBIT A TO MORTGAGE AND DEED OF TRUST Dated effective May 31, 2013 This Exhibit A and the Mortgage and Deed of Trust cover and include the following: O u 3 9 This Exhibit A sets forth the description of certain property interests covered by the Mortgage and Deed of Trust. All of the terms defined in the Mortgage and Deed of Trust are used in this Exhibit A with the same meanings given therein. (a) All right, title and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in and to the oil, gas and mineral leases and mineral interests described herein and /or lands described in and subject to such oil, gas and mineral leases (regardless, as to such leases and /or lands, of any surface acreage and /or depth limitations set forth in any description of any of such oil, gas and mineral leases), and all right, title and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in and to any of the oil, gas and minerals in, on or under the lands, if any, described on this Exhibit, including, without limitation, all contractual rights, fee interests, leasehold interests, overriding royalty interests, non participating royalty interests, mineral interests, production payments, net profits interests or any other interest measured by or payable out of production of oil, gas or other minerals from the oil, gas and mineral leases and /or lands described herein; and (b) All of the foregoing interests of Mortgagor as such interests may be enlarged by the discharge of any payments out of production or by the removal of any charges or encumbrances, together with all interests, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to and under or derived from all renewals and extensions of any oil, gas and mineral leases described herein, it being specifically intended hereby that any new oil and gas lease (i) in which an interest is acquired by Mortgagor after the termination or expiration of any oil and gas lease, the interests of Mortgagor in, to and under or derived from which are subject to the lien and security interest hereof, and (ii) that covers all or any part of the property described in and covered by such terminated or expired leases, shall, to the extent, and only to the extent such new oil and gas lease may cover such property, be considered a renewal or extension of such terminated or expired lease; and (c) All right, title and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to and under or derived from any operating, farmout and bidding agreements, assignments and subleases, whether or not described in this Exhibit, to the extent, and only to the extent, that such agreements, assignments and subleases (i) cover or include any present right, title and interest of Mortgagor in and to the leases and /or lands described in this Exhibit, or (ii) cover or include any other undivided interests now or hereafter held by Mortgagor in, to and under the described leases and /or lands, including, without Amendment of Mortgage Page 4 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis 0u40 limitation, any future operating, farmout and bidding agreements, assignments, subleases and pooling, unitization and communitization agreements and the units created thereby (including, without limitation, all units formed under orders, regulations, rules or other official acts of any governmental body or agency having jurisdiction) to the extent and only to the extent that such agreements, assignments, subleases, or units cover or include the described leases and /or lands; and (d) All right, title and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to and under or derived from all presently existing and future advance payment agreements, oil, casinghead gas and gas sales, exchange and processing contracts and agreements, including, without limitation, those contracts and agreements that are described on this Exhibit, to the extent, and only to the extent, those contracts and agreements cover or include the described leases and /or lands; and (e) All right, title and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to and under or derived from all existing and future permits, licenses, easements and similar rights and privileges that relate to or are appurtenant to any of the described leases and /or lands. Notwithstanding the intention of the Mortgage and Deed of Trust to cover all of the right, title and interest of Mortgagor in and to the described leases and /or lands, whether now owned and existing or hereafter acquired or arising, Mortgagor hereby specifically warrants and represents that the interests covered by this Exhibit are not greater than the working interest nor less than the net revenue interest, overriding royalty interest, net profit interest, production payment interest, royalty interest or other interest payable out of or measured by production set forth in connection with each oil and gas well described in this Exhibit. In the event Mortgagor owns any other or greater interest, such additional interest shall also be covered by and included in the Mortgage and Deed of Trust. Any reference herein to Wells or Units is for warranty of interest, administrative convenience and identification and is not intended to limit or restrict the right, title, interest of properties covered by the Mortgage and Deed of Trust and all of Mortgagor's right, title and interest in the Lands, Subject Interests and Mortgaged Property described herein are and shall be subject to the Mortgage and Deed of Trust, regardless of the presence of any Units or Wells not herein referenced. The Leases covered by the Mortgage and Deed of Trust shall include all leases and force pooled interests now or thereafter owned by Mortgagor included within the geographic areas set forth in this Exhibit whether or not the schedules of leases included in this Exhibit list all such leases. Amendment of Mortgage Page 5 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis 0041 No depth limitation exception contained in any description of leases and other real property interests set forth in this Exhibit shall exclude from the grants of the Mortgaged Property and collateral contained in the Mortgage and Deed of Trust any depth owned by Mortgagor within the geographic area described in this Exhibit for such leases and other real property interests. The designation "Working Interest" or "WI" when used in this Exhibit means an interest owned in an oil, gas, and mineral lease that determines the cost bearing percentage of the owner of such interest. The designation "Net Revenue Interest" or means that portion of the production attributable to the owner of a working interest after deduction for all royalty burdens, overriding royalty burdens or other burdens on production, except severance, production, and other similar taxes. The designation "Overriding Royalty Interest" or "ORRI" means an interest in production which is free of any obligation for the expense of exploration, development, and production, bearing only its pro rata share of severance, production, and other similar taxes and, in instances where the document creating the overriding royalty interest so provides, costs associated with compression, dehydration, other treating or processing, or transportation of production of oil, gas, or other minerals relating to the marketing of such production. The designation "Royalty Interest" or "RI" means an interest in production which results from an ownership in the mineral fee estate or royalty estate in the relevant land and which is free of any obligation for the expense of exploration, development, and production, bearing only its pro rata share of severance, production, and other similar taxes and, in instances where the document creating the royalty interest so provides, costs associated with compression, dehydration, other treating or processing or transportation of production of oil, gas, or other minerals relating to the marketing of such production. The references to book or volume and page herein refer to the recording location of each respective Mortgaged Property described herein in the county /parish where the land covered by the Mortgaged Property is located. This Mortgage and Deed of Trust covers all lands, leases and properties of the Mortgagor, whether now owned or hereafter acquired, located in any county /parish identified elsewhere in this Exhibit or located in any county /parish wherein this Mortgage and Deed of Trust has been recorded. Oil and Gas Properties All working interest, royalty interest and mineral interest owned by David M. Reavis, Lodestone Operating Inc. and Lodestone Operating, LLC, in the following: Amendment of Mortgage Page 6 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Exhibit A Operator Name Property! Well Name CountyiParish Lo estone` Operating i ederal 10 27. ''Sweetwater,5 Lodestone Operating Inc aptor 40-18 Lincoln O perating ;kt uckhorn; Canyon 11 Lodestone Operating, Inc. anyon r.. Sweetwater dpe atinq, lne Lodestone Operating, Inc anyont30 =18" ''Sublette Lodestone Operating, Inc. aballo San Juan Elm Ridge Exploration Ron by @retire Lodestone Oeratin Inc. no averCan gem tmg Omega En' erg Corp. Lodestone Operating, Inc. Hidalgo iperating, Inca Hidaiso Lodestone Operatin t Inc �O adesto,e peratingilnc a 'Hid'af State WY WY Utah TX Sec. Twp -Rng. OR Sec Blk•Survey T26NR1 S'18 T 24NR 111W Lots 5 6 E/2NW/4 andLots7 &8 E2 SW4 S3T25NR'111WNW SW S18T28NR111W NE SW 0 T1 S151 36S R 23E NWNW IR.R. Co. Survey No. 37, A -232, Victoria County, Tx Tract II, Rio Grand River Santa Anita Grant, M. Gomez Survey, A -63 Santa Anita Grant,4 Gomez Survey, A 6 WI Decimal 0000!; 1.00000 000+ 1.00000 1. S'33 T37S R24E SLM` SESW S2SE S3 Lots 3 4 S2NW, SW, W2SE S4 Lots 1,2,3 S2NE NESE S 33 T37S R24E SWSE 0.28763 1 .00000 1 .00000 1.00000 NRI Decimal 0:78688 0.87500 0:87500; 0;83333 1250, 0.87500 0.23727 0.70460 1250 0.72500 Amendment of Mortgage Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Page 7 of 17 Sweetwater Co., Wy. Leases Legal Descriptions O 43 WELL NAME AND LOCATION: Bird Canyon Federal #10 -27 Township 26 North, Range 111 West, 6th P.M. Section 27: NE/4 Sweetwater County, Wyoming ASSOCIATED LEASES AND LANDS Lessor: United States Lease WYW -37670 Lease Date: January 1, 1973 Description: Township 27 North, Range 111 West, 6 P.M. Section 27: N/2 Sweetwater County, Wyoming RELATED CONTRACTS: Contract: Farmout Agreement Date: December 20, 1982 Parties: Energetics, Inc. and Southland Royalty Company Lands Covered: Township 27 North, Range 111 West, 6 P.M. Section 27: W /2NE /4, NW /4 And other lands not included in this assignment Contract: Farmout Agreement Date: November 18, 1982 Parties: Energetics, Inc. and Natural Gas Corporation of California, et al. Lands Covered: Township 27 North, Range 111 West, 6 P.M. Section 27: N/2 and other lands not included in this assignment Contract: Farmout Agreement Date: November 15, 1982 Parties: Energetics, Inc. and Marvin Wolf Lands Covered:Township 27 North, Range 111 West, 6 P.M. Section 27: N/2 and other lands not included in this assignment WELL NAME AND LOCATION: Buckhorn Canyon 10 -3 Township 25 North, Range 111 West, 6 P.M. Section 3: SW /4 NW /4 Sweetwater County, Wyoming WELL NAME AND LOCATION: Buckhorn Canyon 30 -3 Township 25 North, Range 111 West, 6 P.M. Section 3: NW /4 SW /4 Sweetwater County, Wyoming WELL NAME AND LOCATION: Buckhorn Canyon 40 -3 Township 25 North, Range 111 West, 6 P.M. Section 3: SE /4 SE /4 Amendment of Mortgage Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Page 8of17 Sweetwater County, Wyoming ASSOCIATED LEASES AND LANDS Lessor: USA WYW- 112550 Original Lessee: Terra Resources, Inc. Date: Description: Lessor: Original Lessee: Date: Description: Lessor: Original Lessee: Date: Description: EXHIBIT Caballo 1 -15 Legal Description WELL LEASES WELL Caballo 1 -15 Lessor: Lease Date Legal Description: Section 15: NW /4 August 1, 1988 Township 25 North, Range 111 West, 6th P.M. Section 3: Lots 8 and 9 (Dependent Resurvey) (formerly described Lot 4, SW /4NW /4) Sweetwater County, Wyoming USA WYW- 111297 Terra Resources, Inc. June 1, 1988 Township 25 North, Range 111 West, 6 P.M. Section 3: Lots 7,10 and 15 -18, inclusive (Dependent Resurvey)(formerly described as Lot 3, SE /4NW /4, SW /4) Sweetwater County, Wyoming USA WYW- 104980 Terra Resources, Inc. August 1, 1987 Township 25 North, Range 111 West, 6 P.M. Section 3: Lots 13, 14, 19, 20 (Dependent Resurvey)(formerly described as SE /4) Sweetwater County, Wyoming API No: Location: EXHIBIT Cave Canyon 1 -33 Legal Description USA UTU -62953 8/1/73 Township 36 South, Range 23 East, SLM Limited from the surface to approx. 6869' Containing 160.00 acres, more or less as 43- 037 -31403 NW /4 NW /4 Sec. 15, T36S -R23E, SLM San Juan County, Utah Amendment of Mortgage Page 9 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis 4 LEASES Cave Canyon 1 -33 Lessor: Lease Date Legal Description: Section 33: S2 EXHIBIT Cave Canyon 2 -33 Legal Description WELL WELLS LEASES Cave Canyon 2 -33 LEASES Lessor: Lease Date Legal Description: Section 33: S2 EXHIBIT Cave Canyon (Ismay) Unit Legal Description Cave Canyon Ismay) Unit API No: Various Area Wells, operated by Location: Sec. 3, Sec. 4, T38S -R24E SLM Elm Ridge Exploration Sec. 33, T37S -R24E SLM Co., LLC Lessor: Lease Date: Legal Description: API No: Location: API No: Location: 43- 037 -31276 SW /4 SE /4 Sec. 33, T37S -R24E, SLM San Juan County, Utah USA UTU -40751 9/1/1978 Township 37 South, Range 24 East, SLM Limited from the surface to 6,085' Containing 320.00 acres, more or less 43- 037 -31286 SE /4 SW /4 Sec. 33, T37S -R24E, SLM San Juan County, Utah USA UTU -40751 9/1/1978 Township 37 South, Range 24 East, SLM Limited from the surface to 6,085' Containing 320.00 acres, more or less USA UTU -47876 10/1/1981 Township 38 South, Range 24 East, SLM Section 3: Lots 3, 4, S2NW, SW, W2SE Section 4: Lots 1, 2, 3, S2NE, NESE Ok,15 Township 37 South, Range 24 East, SLM Section 33: SESW, S2SE Amendment of Mortgage Page 10 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis From surface down to the base of the Ismay zone of the Paradox formation in the Cave Canyon (Ismay) Unit Area, operated by Elm Ridge Exploration Co., LLC, covering: Lincoln Co., Wy Leases Legal Descriptions WELL NAME AND LOCATION: Raptor 40 -18 Township 24 North, Range 111 West, 6` P.M. Section 18: C SW /4 Lincoln County, Wyoming ASSOCIATED LEASES AND LANDS Lessor: Lease Lease Date: Lessee: Description: WELL NAME AND LOCATION: Chapel Canyon 30 -18 Township 28 North, Range 111 West, 6 P.M. Section 18: NE /4 SW /4 Sublette County, Wyoming ASSOCIATED Lessor: Lessee: Lease Date: Recorded: Description: Lessor: Lessee: Lease Date: Recorded: Description: Lessor: Lessee: Lease Date: United States WYW -61042 February 1, 1978 Clair L. Johnson Township 24 North, Range 111 West, 6th P.M. Section 18: Lot 7 (19.26), 8 (19.16), E /2SW /4 Lincoln County, Wyoming Sublette Co., Wy Leases Legal Descriptions LEASES AND LANDS: Rock Springs National Bank, Successor Trustee for the Fear Family Trust Crown February 12, 1999 Book 110 O &G, at Page 563, as Reception No. 272292 Township 28 North, Range 111 West, 6 P.M. Section 18: Lot 3 (19.62), 4 (20.28), NE /4SW /4 (33.00), SE /4SW /4 (26.00) (Land in the E /2SW /4 is the acreage reserved by the Fear family below the High Line Canal as it was in 1931.) Containing 98.90 acres. Sublette County, Wyoming Lillian Steadman Gilbert, Jennifer Rose Gilbert and Alicia Ann Gilbert Crown August 19, 1999 Book 112 O &G, at Page 219, as Reception No. 275027 Township 28 North, Range 111 West, 6th P.M. Section 18: NE /4 SW /4 (7.00), SE /4SW /4 (14.00). Land in the E /2SW /4 reserved by the Gilbert (Reardon) family above the line of the High Line Canal as it was in 1931. Sublette County, Wyoming 1 National Bank of Kemmerer, Trustee for the Fear Family Trust Thomas F. Stroock Not known Amendment of Mortgage Page 11 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Recorded: Book 48, at Page 632 Description: Township 28 North, Range 111 West, 6th P.M. Section 18: E /2SW /4 LESS those lands lying east or above the line of survey of the High Line Canal Sublette County, Wyoming WELL NAME AND LOCATION: Charles Jacobs #1 Victoria County, Texas Wel!bore and Limited Depths Conveyed: WELLBORE ONLY OF THE CHARLES JACOBS NO. 1 WELL, API NUMBER 42- 469- 30282, LOCATED IN THE I.R.R. CO. SURVEY NO. 37, A -232, VICTORIA COUNTY, TEXAS AND FURTHER LIMITED ONLY TO THE DEPTHS BETWEEN 8,775' AND 8,822' LEASES SUBJECT TO LIMITED DEPTH WELLBORE -ONLY CONVEYANCE All recording references are to the Deed, Oil and Gas, or Official Records of Victoria County, Texas Date 01.25.73 Lessor James Levert Brady, et al Lessee W.S. Gordon, Jr. Recording Data 822/568 Date 01.25.73 (amended 7.12.74, recorded 852/279 Lessor Edith I. Stovall, Individually and as Co- Independent Executrix and Co- Trustee: Guy F. Stovall, Jr. as Co- Independent Executor and Co- Trustee, And Geraldine Stovall Garrett, Co- Trustee of the Estate and under the Testamentary Trust of Guy F. Stovall, Deceased Lessee W.S. Gordon, Jr. Recording Data 820/204 Date 01.25.73 (ratified on 5/8/73, recorded 830/424) Lessor G.H. Harfst, Jr. and Catherine H. Couey Lessee W.S. Gordon, Jr. Recording Data 827/201 Date 0107.20.73 Lessor Hugh R. Goodrich, Thomas E. Berry, Trustee and Priscilla Goodrich Rea, acting herein by and through her agent and attorney -in -fact, Hugh R. Goodrich (Special Power of Attorney effective 7.01.73, recorded 830/426) Lessee Florida Gas Exploration Company Recording Data 831/734 (Memorandum) Date 03.09.73 (corrected on 9.9.73, recorded 853/791) Lessor Floy Barnhardt Saville, Individually and as Independent Co- Executrix and Co- Trustee under Will of Wilson Gordon Saville, Deceased; and Bank of the Southwest National Association, Houston, Independent Co- Executor and Co- Trustee under Will of Wilson Gordon Saville, Deceased Lessee W.S. Gordon Recording Data 822/578 Amendment of Mortgage Page 12 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Date Lessor Lessee Recording Data Date 01.25.73 Lessor Elvira Vogel Adams Lessee W.S. Gordon, Jr. Recording Data 820/198 Lodestone Hunt State 1 -2 Legal Description State of Utah #ML 48563, Dated 7/1/2000 containing 638.76 acres, being Sec. 2, All, in T35S -R23E, SLM, San Juan County, Utah; And including, to the extent owned by Assignor, all rights in and to the existing wellbore, being the D. J. Simmons State #1 -2, located in the SW /4 NE /4 of the above Section. Shipp 10 -1 WELL NAME: FIELD: COUNTY, STATE: LEASE DESCRIPTION Lease Date: Lease Name: Lessee: Description: Recordation: Lessor: Lessee: Lease Date: Description: Lessor: Lessee: Lease Date: Description: 04.05.72 (as amended 7.10.74, recorded 850/394) Charley Y. Jacobs and wife, Esther Robert N. Millard 813/506 SHIPP 10 -1 HUMBLE LEA COUNTY, NEW MEXICO 08/27/1969 Elbert D. Shipp et al Pubco Petroleum Corporation Township 17 South, Range 37 East Section 10: E/2 E/2 SE /4 and E/2 W/2 E/2 SE /4 Book 266, Page 772 King Properties, Inc., by Donald W. Stephens, President Lodestone Operating, Inc. 07/01/2008 Township 17 South, Range 37 East, N.M. P.M. Section 10: W /2W/2 E /2SE /4 Orion Properties., by Donald W. Stephens, President Lodestone Operating, Inc. 07/01/2008 Township 17 South, Range 37 East, N.M. P.M. Section 10: W /2W/2 E /2SE /4 Lessor: Suzanne Ship Cunningham, Trustee of the Suzanne Ship Cunningham Revocable Trust Dated 7/13/2001 Amendment of Mortgage Page 13 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis Lessee: Lodestone Operating, Inc. Lease Date: 05/02/2008 Description: Township 17 South, Range 37 East, N.M. P.M. Section 10: East 60 acres of SE /4 Recordation: Book 1585, Page 368 Lessor: Western Commerce Bank, Trustee of the Francis J. Freeman Revocable Trust, dated 2/08/1983, by Rita R. Neal, Senior Vice President Trust Officer Lessee: Lodestone Operating, Inc. Lease Date: 05/14/2008 Description: Township 17 South, Range 37 East, N.M. P.M. Section 10: East 60 acres of SE /4 Recordation: Book 1585, Page 936 Lessor: William Marshall Shipp Pamela Ann Dixon Shipp, Trustees of the William Marshall Shipp Pamela Ann Dixon Shipp Rev. Trust Dated 6 -29 -2001 Lessee: Lodestone Operating, Inc. Lease Date: 05/02/2008 Description: Township 17 South, Range 37 East, N.M. P.M. Section 10: East 60 acres of SE /4 Recordation: Book 1585, Page 366 WELL NAME AND LOCATION: W.H. Striebeck #1 Live Oak County, Texas Lease Description: 80 acres, more or less, being the NE /2 of Farm Tract #4049 in Block #105 of the Dr. Charles F. Simmons Nueces River Farm Subdivision as per map or plat recorded In Volume 1, Page 234 et seq, of the Plat Records of Live Oak County, Texas, to which Plat and recordation thereof reference is hereby made for all pertinent purposes. Only the rights and interests in and to the oil, gas and other minerals located between the depths of 4,000 feet subsurface and 7,100 feet subsurface; and all rights and interests, including the oil, gas other minerals, above and below such depth interval are excepted and excluded from this lease, together with all rights and privileges applicable thereto, including those necessary to develop the oil, gas and other minerals excepted from the Lease. O &G Lease Description: Oil and Gas Lease by and between Loyce L. Striebeck, Individually and as Independent Executrix of the Estate of William H. Striebeck, III, Deceased, as Lessor, and Lodestone Operating, Inc., as Lessee, date July 29'", 2005, recorded in Volume 39, Page 716 of the Oil and Gas Lease Records of Live Oak County, Texas Eva Mae Field Wells Hidalgo County, Texas O 49 Well: State tract 11 -1 Well (API No. 42- 215- 80000) Amendment of Mortgage Page 14 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis OIL AND GAS MINERAL LEASE: LESSOR: General Land Office of Texas lease number 49803 LESSEE: C. L. Emery, Trustee DATE: December 11, 1958 RECORDING: Book 228, Page 543 of the Oil and Gas Records of Hidalgo County, Texas DESCRIPTION: Tract II of the Rio Grande River (Portion owned by Texas), Hidalgo County, Texas, approximately 80 acres. Well: Eulogia De Rueda #2 Well (API No. 42- 215- 01853) OIL AND GAS MINERAL LEASES: LESSOR: W. R. Montgomery LESSEE: B. H. Holcomb DATE: November 26, 1952 RECORDING: Volume 141, Page 564 of the Oil and Gas Records of Hidalgo County, Texas. LESSOR: T. J. Bader LESSEE: B. H. Holcomb DATE: November 26, 1952 RECORDING: Volume 141, Page 565 of the Oil and Gas Records of Hidalgo County, Texas. DESCRIPTION OF LANDS: 0050 LESSOR: Eulogio de Rueda (sometimes known as Euligio de Rueda) and wife, Maria A. de Rueda LESSEE: B. H. Holcomb DATE: November 26, 1952 RECORDING: Volume 141, Page 559 of Oil and Gas Records of Hidalgo County, Texas, as amended by that Correction of Oil, Gas and Mineral Lease dated November 26, 1952 from Eulogio de Rueda (sometimes known as Euligio de Rueda) and wife Maria A. de Rueda, as Lessor, to B. H. Holcomb, as Lessee, recorded Volume 141, Page 560 of the Oil and Gas Records of Hidalgo County, Texas. A 215.07 acre unit, more or less, covering lands located in the South part of Porciones 58, 59, and 60 in Hidalgo County, Texas, as further described in that certain Designation of Pooled Unit for the Eulogio de Rueda, et al Unit No. 1 dated January 6, 1958, recorded in Volume 208, Page 334 -335 of the Oil and Gas Records of Hidalgo County, Texas. Amendment of Mortgage Page 15 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis 100% Working Interest in both wells, various Net Revenue Interest WELLS: Tijerina A #1U and A #1L Well, (API 42- 215- 30021) and Tijerina A #3U and A #3L Well, (API 42- 215- 30046), Hildalgo County, Texas. LEASES: LESSOR: Raul Tijerina, Jr. LESSEE: Hope Production Company DATE: January 06, 1967 RECORDING: Book 311, Page 612 LESSOR: Sarah Louise Gallagher and husband, Michael Gallagher LESSEE: Hope Production Company DATE: March 31, 1967 RECORDING: Book 315, Page 744 LESSOR: John J. Young and Lupita Young, his wife LESSEE: Hope Production Company DATE: December 08, 1966 RECORDING: Book 311, Page 588 LESSOR: Santiago Garcia LESSEE: Hope Production Company DATE: December 15, 1966 RECORDING: Book 311, Page 593 LELESSOR: Archie L. Murray LESSEE: Hope Production Company DATE: December 14, 1966 RECORDING: Book 311, Page 597 LESSOR: Felix L. McDonald LESSEE: Hope Production Company DATE: December 06, 1966 RECORDING: Book 311, Page 608 LESSOR: Clinton Uhr and wife, Ethel Priscilla Uhr LESSEE: Hope Production Company DATE: December 14, 1966 RECORDING: Book 311, Page 602 LESSOR: Leon L. Folsom and wife, Alma E. Folsom Amendment of Mortgage Page 16 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis V a I After recording, return this document to: McGowen Fowler, PLLC ATTN: James P. McGowen 2602 McKinney Avenue Suite 305 Dallas, TX 75204 LESSEE: Hope Production Company DATE: January 26, 1967 RECORDING: Book 315, Page 739 0e 2 100% Working Interest in the above Wellbores, varying Net Revenue Interest and varying interests in other lease rights. Amendment of Mortgage Page 17 of 17 Lodestone Operating Inc.; Lodestone Operating, LLC; and David M. Reavis