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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 31, 1995
------------------------
SOUTHERN MINERAL CORPORATION
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(Exact name of registrant as specified in its charter)
Nevada
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(State or other jurisdiction of incorporation)
0-8043 36-2068676
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(Commission File Number) (IRS Employer Identification No.)
17001 Northchase, Suite 690 Houston, Texas 77060-2138
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 872-7621
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Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On October 31, 1995, Southern Mineral Corporation (the "Company")
entered into a Purchase and Sale Agreement with Stone & Webster, Incorporated
("S&W") and Stone & Webster Oil Company, Inc. ("SWOC" and together with S&W,
"Sellers"). Subject to the terms and conditions of the Purchase and Sale
Agreement, the Company will purchase certain of SWOC's oil and gas assets, and
the outstanding capital stock of three wholly-owned subsidiaries of S&W and
SWOC engaged in oil and gas related businesses, including production, marketing
and pipelines. Consummation of these transactions (the "Closing") is scheduled
for December 22, 1995.
The aggregate cash purchase price is $16,500,000, subject to
adjustment for production since September 1, 1995 and certain title defects in
oil and gas properties. The Company has escrowed $1,000,000 which generally
either will be credited to the purchase price upon Closing, paid to Sellers as
liquidated damages if Buyer fails to close and Sellers are not in material
default, or repaid to Buyer if Closing does not occur because Sellers are in
default (excluding title defects that do not exceed $500,000 in the aggregate).
This summary is qualified in its entirety by the terms and conditions
of the October 31, 1995 Purchase and Sale Agreement between the Company and
Sellers, and October 31, 1995 Escrow Agreement between Purchaser, Sellers and
Texas Commerce Bank National Association, each of which is attached hereto as
an exhibit. The November 1, 1995 News Release of the Company concerning the
subject transactions is attached hereto as an exhibit and incorporated herein
by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Businesses Acquired. Not applicable.
(b) Pro Forma Financial Information. Not applicable.
(c) Exhibits.
2.1 Purchase and Sale Agreement, dated as of October 31,
1995, by and among Stone & Webster, Incorporated,
Stone & Webster Oil Company, Inc. and Southern
Mineral Corporation (filed herewith).
2.2 Escrow Agreement, dated as of October 31, 1995, by
and among Southern Mineral Corporation, Stone &
Webster, Incorporated, Stone & Webster Oil Company,
Inc. and Texas Commerce Bank National Association
(filed herewith).
99.1 News Release of Southern Mineral Corporation dated
November 1, 1995 (filed herewith).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
November 9, 1995 SOUTHERN MINERAL CORPORATION
By: /s/ Steven H. Mikel
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Steven H. Mikel, President
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EXHIBIT INDEX
2.1 Purchase and Sale Agreement, dated as of October 31,
1995, by and among Stone & Webster, Incorporated,
Stone & Webster Oil Company, Inc. and Southern
Mineral Corporation (filed herewith).
2.2 Escrow Agreement, dated as of October 31, 1995, by
and among Southern Mineral Corporation, Stone &
Webster, Incorporated, Stone & Webster Oil Company,
Inc. and Texas Commerce Bank National Association
(filed herewith).
99.1 News Release of Southern Mineral Corporation dated
November 1, 1995 (filed herewith).
<PAGE> 1
EXHIBIT 2.1
PURCHASE AND SALE AGREEMENT
BY AND AMONG
STONE & WEBSTER, INCORPORATED
AND
STONE & WEBSTER OIL COMPANY, INC.
as Sellers
AND
SOUTHERN MINERAL CORPORATION
as BUYER
October 31, 1995
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PURCHASE AND SALE AGREEMENT
TABLE OF CONTENTS
AND EXHIBITS
<TABLE>
<S> <C>
Section Page
- ------- ----
1. Purchase and Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2. Sales Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3. Earnest Money Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
4. Representations of S&W as to Corporate Matters . . . . . . . . . . . . . . . . . . 2
5. Representations of SWOC as to Corporate Matters . . . . . . . . . . . . . . . . . 2
6. Representations by Sellers as to Evaluated Assets . . . . . . . . . . . . . . . . 3
7. Representations of Buyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8. SWOC Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
9. Access to Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
10. Notice of Material Title Defects . . . . . . . . . . . . . . . . . . . . . . . . . 9
11. Adjustment for Material Title Defects . . . . . . . . . . . . . . . . . . . . . . 11
12. Conditions to Obligations of Sellers and Buyer . . . . . . . . . . . . . . . . . . 12
13. The Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
14. Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
15. Post-Closing Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
16. Casualty Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17. Covenants of Sellers Pending the Closing . . . . . . . . . . . . . . . . . . . . . 17
18. Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19. Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
</TABLE>
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EXHIBITS
A-1 Balance Sheet of [SWOC] Stone & Webster Oil Company, Inc.
A-2 Balance Sheet of Venture Resources, Inc.
A-3 Balance Sheet of San Salvador Development Company, Inc.
A-4 Balance Sheet of Spruce Hills Production Company, Inc.
B. SWOC Oil and Gas Interests
C. List of Spruce Hills AFEs
D. List of Holders of Title of Evaluated Assets (Spruce Hills
only)
E-1 SWOC Allocation (less Venture Resources)
E-2 Venture Resources Allocation
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PURCHASE AND SALE AGREEMENT DEFINITIONS
<TABLE>
<S> <C>
Term PAGE
- ---- ----
Allocated Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Buyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Defective Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Earnest Money Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Environmental Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Escrow Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Evaluated Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Material Title Defects . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
One Allen Center Office Lease . . . . . . . . . . . . . . . . . . . . . . . . . 8
Permitted Encumbrances . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PFAC Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Post-Closing Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Prime Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Reserve Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
S&W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SWOC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SWOC Evaluated Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Sales Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
San Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
San Salvador Evaluated Assets . . . . . . . . . . . . . . . . . . . . . . . . . 9
Sellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Spruce Hills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Spruce Hills Evaluated Assets . . . . . . . . . . . . . . . . . . . . . . . . . 9
Title Defects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Venture Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
</TABLE>
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PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT, made and entered into as of October
31, 1995, by and among STONE & WEBSTER, INCORPORATED, a Delaware corporation
("S&W"), and STONE & WEBSTER OIL COMPANY, INC., a Texas corporation ("SWOC"),
herein sometimes jointly referred to as "Sellers", and individually as a
"Seller" on the one hand, and SOUTHERN MINERAL CORPORATION, a Nevada
corporation ("Buyer"), on the other hand,
WITNESSETH:
In consideration of the mutual benefits derived and to be derived
herefrom by each, Sellers and Buyer agree as follows:
1. Purchase and Sale
For the consideration and upon the terms hereinafter set forth:
a. S&W agrees to sell to Buyer, and Buyer agrees to buy
from S&W, all the outstanding shares of capital stock of San Salvador
Development Company, Inc., a Texas corporation ("San Salvador"), and
Spruce Hills Production Company, Inc., a Delaware corporation ("Spruce
Hills"), wholly-owned subsidiaries of S&W.
b. SWOC agrees to sell to Buyer, and Buyer agrees to buy
from SWOC, all SWOC's oil and gas and related properties (as
hereinafter identified) and all the outstanding shares of capital
stock of Venture Resources, Inc., a Texas corporation ("Venture
Resources") (such properties and stock being together herein called
the "SWOC Assets"). Spruce Hills, San Salvador and Venture Resources
are sometimes referred to herein as the "Corporations".
2. Sales Price
The aggregate sales price (the "Sales Price") for the stock of San
Salvador and Spruce Hills (to be received by S&W at the Closing) and for the
SWOC Assets (to be received by SWOC at the Closing) is $16,500,000. Such Sales
Price is allocated for purposes of this Agreement as follows: $1,300,000 for
the San Salvador stock, $5,500,000 for the Spruce Hills stock and $8,940,000
for the SWOC Assets other than the stock of Venture Resources and $760,000 for
the stock of Venture Resources.
3. Earnest Money Deposit
Contemporaneously herewith, Buyer shall deposit with Texas Commerce
Bank National Association, Houston, Texas (the "Escrow Agent"), the sum of ONE
MILLION DOLLARS ($1,000,000), in United States Dollars (which sum plus interest
earned thereon is herein called the "Earnest Money Deposit"), to be invested by
the Escrow Agent in such manner as Sellers and Buyer shall mutually agree and
instruct the Escrow Agent within three days following the date hereof (or
failing such agreement and instruction within such time then the Earnest Money
Deposit shall be invested by the Escrow Agent in such interest-bearing method
as the Escrow Agent shall deem appropriate). If this transaction is
consummated, the Earnest Money Deposit (including interest earned thereon)
shall be paid jointly to Sellers pursuant to
<PAGE> 6
the Closing (as defined below) to be applied on the Sales Price (in such
proportion between S&W and SWOC as they shall elect), and in accordance with
the terms of the Escrow Agreement, Buyer and Seller shall so instruct the
Escrow Agent in writing at or before the Closing. If this transaction is not
consummated, the consequences thereof and the disposition of the Earnest Money
Deposit shall be as provided in Section 12 or Section 18 hereof.
4. Representations of S&W as to Corporate Matters
S&W represents to Buyer as follows:
a. S&W is a corporation duly incorporated and existing
and in good standing under the laws of the State of Delaware. San
Salvador is a corporation duly incorporated and existing and in good
standing under the laws of the State of Texas. Spruce Hills is a
corporation duly incorporated and existing and in good standing under
the laws of the State of Delaware. San Salvador and Spruce Hills are
qualified to do business in each jurisdiction in which the failure to
so qualify could have a material adverse impact on such corporations.
b. S&W has all requisite power and authority to enter
into and perform its obligations under this Agreement.
c. S&W is the owner of all the issued and outstanding
shares of capital stock of San Salvador, being 1,000 shares of common
stock of the par value of $100 per share, fully paid and
nonassessable.
d. S&W is the owner of all the issued and outstanding
shares of capital stock of Spruce Hills, being 1,000 shares of common
stock without par value, fully paid and nonassessable.
e. S&W has good and marketable title to such shares of
San Salvador and Spruce Hills and owns and has the right to sell,
transfer and assign the same to Buyer free and clear of all security
interests, pledges and encumbrances of any kind or character.
f. To the best of S&W's knowledge, there have been no
transfers of assets by and among the Sellers or any of the
Corporations that would violate the consistency rules established
under U.S. Internal Revenue Code Section 338.
5. Representations of SWOC as to Corporate Matters
a. Each of SWOC and Venture Resources is a corporation
duly incorporated and existing and in good standing under the laws of
the State of Texas. SWOC is duly qualified to transact business, and
is in good standing, in the State of Louisiana and, to best of
Sellers' knowledge, based upon the business transacted by SWOC it is
not required to qualify to do business in any other jurisdiction in
which the failure to so qualify would have a material adverse effect
on SWOC. Each of Venture Resources and its subsidiaries is to the
best of SWOC's knowledge qualified to do business in each jurisdiction
in which the failure to so qualify would have a material adverse
impact.
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b. SWOC has all requisite power and authority to enter
into and perform its obligations under this Agreement.
c. SWOC is the owner of all the issued and outstanding
shares of capital stock of Venture Resources, being 500 shares of
common stock of the par value of $1.00 per share, fully paid and
nonassessable. Venture Resources is the sole owner of all of the
capital stock of Venture Processing Company, Venture Pipeline Company,
VenGas Pipeline Company, VenGas Marketing Company and Venture
Distribution Company.
d. SWOC has good and marketable title to such shares of
Venture Resources and owns and has the right to sell, transfer and
assign the same to Buyer free and clear of all security interests,
pledges and encumbrances.
e. To the best of SWOC's knowledge, there have been no
transfers of assets by and among the Sellers or any of the
Corporations that would violate the consistency rules established
under U.S. Internal Revenue Code Section 338.
6. Representations by Sellers as to Evaluated Assets
S&W, with respect to the San Salvador Evaluated Assets and the Spruce
Hills Evaluated Assets (which terms are defined below), herein in such context
sometimes called "Seller", and SWOC, with respect to the SWOC Evaluated Assets
and the Venture Resources Evaluated Assets (which terms are defined below),
herein in such context also sometimes called "Seller", represent as follows:
a. Except for the Permitted Encumbrances (defined
below), Seller's such Evaluated Assets are free and clear of all liens
and encumbrances.
b. To Seller's knowledge, there is no litigation pending
against Seller that would have a material adverse effect on its such
Evaluated Assets or the ability of Seller to consummate the
transactions contemplated by this Agreement.
c. Seller has no knowledge of any operations conducted
on its such Evaluated Assets that are in material violation of any
applicable statute, rule or regulation (including statutes, rules and
regulations for protection of the environment).
d. Seller makes no representation of any kind with
respect to reserve reports or other records bearing on the existence
or extent of reserves that may or may not be recoverable from or
attributable to its Evaluated Assets.
e. The adjusted balance sheets shown on Exhibits A-2,
A-3, and A-4 fairly and accurately present the financial condition and
the assets and liabilities of the respective Corporations represented
thereon as of the effective date indicated thereon. None of the
Corporations named in such balance sheets have indebtedness other than
the indebtedness set forth in such balance sheets and accounts payable
in the ordinary course of business including AFE's pursuant to this
Agreement.
3
<PAGE> 8
f. Neither of Sellers has incurred any liability,
contingent or otherwise, for brokers' or finders' fees related to the
transactions contemplated by this Agreement for which Buyer would have
any responsibility.
g. To the best of Sellers' knowledge, with respect to
the status and operation of the Evaluated Assets:
(i) None of the Evaluated Assets is affected by
any agreement or arrangement (including, but not limited to,
any "take or pay", gas balancing, pipeline balancing or other
prepayment agreement or production payment by reason of
payments made prior to the Effective Date, to deliver oil, gas
or related substances produced from the Evaluated Assets at
some future time without then or thereafter receiving full
payment therefor;
(ii) All proceeds of production attributable to
the Evaluated Assets are currently being paid directly to
Seller or its authorized agents without the furnishing of
indemnity other than the customary warranty contained in the
division orders, transfer orders or gas sales contracts that
have been furnished to Buyer, and no material portion of such
proceeds are being held in suspense;
(iii) All royalties, shut-in royalties, minimum
royalties, rentals and other payments due under each of the
Leases have been properly and timely paid, except for those
amounts held in suspense, to the extent that Seller is
obligated to make such payment under such Leases or other such
contractual documents; and
(iv) There are no claims or liabilities which have
been asserted against Seller for breach of contracts which
affect the Evaluated Assets and no person has any call upon,
option to purchase or similar rights with respect to the
Evaluated Assets or to the production therefrom.
h. To the best of Sellers' knowledge, Seller is in
compliance with the requirements of all laws, statutes, regulations
and orders applicable to its business and operations, noncompliance
with which might reasonably be expected to have a material and adverse
effect on the Seller or any of its assets.
i. To the best of Sellers' knowledge, there exists no
gas imbalances or other conditions regarding production or products
taken or marketed from an Evaluated Asset or any portion thereof which
could result in:
(i) a portion of Seller's interest in production
or products therefrom being taken or delivered after the
Effective Date without the Buyer receiving payment therefor at
the price it would have received absent such imbalance;
(ii) Seller or Buyer being obligated to make
payment to any person or entity as a result of such imbalance;
or
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<PAGE> 9
(iii) Buyer being obligated, by virtue of any
prepayment arrangement, except as shown in Exhibit A-4,
take-or-pay agreement or similar arrangement, to deliver
hydrocarbons or products produced from a property at some
future time without then receiving full payment therefor or,
production being shut-in or curtailed after the Effective Date
due to the noncompliance with allowables or production in
excess of regularly scheduled allowables, production quotas,
proration rules or similar orders or regulations of
governmental authorities.
j. To the best of Sellers' knowledge, all of the
production records (and related data), revenue and cost information,
land records, and other related documentation to which Buyer has been
given access or will be given access before Closing, shall not be
incorrect or inaccurate in any material respect when so furnished, and
no documents were removed or information or documents omitted from the
data or documentation furnished which is necessary to make the data
furnished not misleading in any material respect. At Closing there
shall have been no material adverse change in the production or
operations with respect to the Evaluated Assets other than normal
decline.
k. To the best of Sellers' knowledge, there are no
preferential purchase rights, necessary third party consents,
permissions or approvals required to consummate this Agreement or for
Seller to execute and deliver this Agreement and the Conveyances.
l. As to all Sellers except with respect to Spruce
Hills, (i) there are no outstanding commitments as of the date of this
Agreement that require drilling or reworking operations or obligations
of Seller to make payments in connection with the Evaluated Assets
exceeding $10,000 net to Seller for any one commitment or $25,000 net
to Seller in the aggregate, and (ii) Seller has not incurred any
prepaid expenses or become obligated during the period since the
Effective Date through the date of execution of this Agreement for
expenditures exceeding $25,000 net to Seller in the aggregate. As to
Spruce Hills, Exhibit C sets forth all of such outstanding 1995
commitments as described in the previous sentence as of the date of
this Agreement.
m. To the best of Sellers' knowledge there are no
contracts affecting the Evaluated Interests that are unduly onerous by
industry standards or that would interfere with the normal business
operations as contemplated by this Agreement or any document executed
between the parties in connection with the transaction contemplated by
this Agreement.
n. To the best of Sellers' knowledge, with respect to
the Evaluated Assets:
(i) the Evaluated Assets have been used for the
production of oil and gas and related operations, and at no
time have the Evaluated Assets been used for the unlawful
storage or disposal of a Hazardous Substance (as defined
below) or as an unlawful landfill or other unlawful waste
disposal site which has not been remediated. For purposes of
this Agreement, "Hazardous Substance" means any substance,
product, waste or other material of any nature whatsoever
which was, as of the Effective Date, listed or regulated
pursuant to the Comprehensive
5
<PAGE> 10
Environmental Response Compensation and Liability Act, 42
U.S.C. Section 9601, et seq., ("CERCLA"); the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801, et seq.;
the Resource Conservation and Recovery Act, 42 U.S.C. Section
6901, et seq. ("RCRA"); the Clean Water Act, 33 U.S.C. Section
1251, et seq.; the Clean Air Act, 42, U.S.C. Section
7401-7626; the Federal Insecticide, Fungicide and Rodenticide
Act, 7 U.S.C. Sections 136-136y ("FIFRA"); the Safe Drinking
Water Act, 42 U.S.C. Section 300f-300j and all substances
regulated or prohibited under Section 2605 of the Toxic
Substances Control Act ("TSCA") and all substances
characterized as an imminently hazardous chemical substance
under Section 2606 of the TSCA, 15 U.S.C. Sections 2601-2671;
all as amended, or any applicable state statute, law,
ordinance, resolution, code, rule, regulation, order or decree
regulating, relating to, or imposing liability or
standards of conduct concerning any hazardous, toxic or
dangerous waste, substance or material;
(ii) There are no leaking underground storage
tanks on the Evaluated Assets;
(iii) No Evaluated Assets owned or used by Seller
on any real property forming a part of the Evaluated Assets
contains any asbestos, which is in violation of any
Environmental Law;
(iv) None of the Evaluated Assets and none of the
land upon which any equipment (whether leased or owned by
Seller) or other personal property or improvements forming a
part of the Evaluated Assets contain any polychlorinated
biphenyls in concentrations above 50 ppm;
(v) Seller has not entered into, and, to the best
knowledge of Seller, no predecessor to Seller has entered
into, or is subject to, any consent orders, decrees, or
judgments in existence at this time, relating specifically to
the Evaluated Assets, based on any Environmental Laws (as
defined below) that relate to the future use of any of the
Evaluated Assets or that require any material change in the
present condition of any of the Evaluated Assets.
"Environmental Laws" shall mean all applicable laws, statutes,
rules, regulations, orders, decrees and judicial
interpretations of the United States or of any state in which
any of the Evaluated Assets are located, or any other
governmental or quasi-governmental authority having
jurisdiction, that relate to the prevention, abatement or
elimination of pollution, or the protection of the environment
or serving similar or related purposes, including, without
limitation, those relating to the generation, transportation,
treatment, storage, recycling, disposal, handling or release
of any Hazardous Substance, including, without limitation,
CERCLA, the Clean Water Act, the Clean Air Act, RCRA, FIFRA,
TSCA, the Safe Drinking Water Act, and the Hazardous Materials
Transportation Act;
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(vi) There are no actions, suits, claims or
proceedings seeking money damages, injunctive relief, remedial
action or remedy, pending or (to the best of Sellers'
knowledge) threatened, against Seller or the Evaluated Assets
arising from its ownership or operation of the Evaluated
Assets and relating to the violation of, or noncompliance
with, any Environmental Laws, the disposal, discharge, or
release of any Hazardous Substance, or the exposure of any
person to any other solid waste, pollutant, chemical
substance, noise or vibration; and
(vii) Neither the execution of this Agreement nor
the consummation of the transactions contemplated by this
Agreement will violate any Environmental Law or require the
consent or approval of the Environmental Protection Agency or
any state or local agency charged with enforcing any
Environmental Law.
o. In recognition of the fact that a third party is the
operator of some of such Evaluated Assets, Seller's "knowledge" for
such purposes does not include, by inference or imputation, knowledge
of such operators.
7. Representations of Buyer
a. Buyer is a corporation duly created and existing and
in good standing under the laws of the State of Nevada.
b. Buyer has all requisite power and authority to enter
into and perform its obligations under this Agreement.
c. Buyer acknowledges that (1) it has had access and, to
the extent it deems appropriate, will exercise its right under Section
9 hereof to access, to the employees of SWOC and the books, records
and files in the offices of SWOC relating to the property to be sold
pursuant hereto and (2) in making its decision to enter into this
Agreement and consummate the transactions contemplated hereby, Buyer
has and will have relied solely on (i) its own independent
investigation of, and judgment with respect to, such property, which
property is not being acquired by Buyer for distribution or transfer
in violation of any securities laws but for its own account. Buyer
acknowledges that such property has not and will not be registered
under any securities laws and (ii) the terms of this agreement
including the Representations of S&W and SWOC.
d. Buyer has incurred no liability, contingent or
otherwise, for brokers' or finders' fees related to the transactions
contemplated by this agreement for which either of the Sellers would
have any responsibility.
8. SWOC Assets
The term "SWOC Assets", as used herein, consists of the following:
a. The Fixed Property included on the Balance Sheet of
SWOC as of August 31, 1995 (a copy of which is attached hereto as
Exhibit "A-1"), including specifically and not by way of limitation
all right, title and interest of SWOC in and to the oil and
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gas interests described in Exhibit "B" attached hereto and in and to
all agreements, product purchase and sale contracts, permits,
rights-of-way, easements, surface leases, licenses, computer hardware
and software (to the extent assignable), personal property, fixtures
and improvements owned by SWOC in connection with the production,
treatment, sale or disposal of production or water produced therewith.
b. All outstanding shares of capital stock of Venture
Resources, Inc., being common stock
c. The "One Allen Center Office Lease", which term as
used herein means that certain Lease Contract dated June 25, 1992,
between Allen Center Company and SWOC, covering space on the 28th
floor of One Allen Center, 500 Dallas, Houston, Texas, such term as
used herein also including all right, title and interest of SWOC in
and to the office equipment and fixtures therein.
d. There are excluded from this sale and from the term
"SWOC Assets", and retained unto SWOC, the following:
(i) Any rights to the "Stone & Webster" name.
(ii) Stock of all subsidiaries and affiliates of
SWOC other than Venture Resources and its subsidiaries, such
excluded rights including all stock of Saw Construction
Corporation, and its subsidiaries, and of Saw Consulting
Services, Inc., and its subsidiaries.
(iii) Cash, cash investments (provided, however,
accounts receivable as of 7:00 a.m., September 1, 1995 shall
be included and not excluded from this sale as of the
Effective Date), notes receivable from affiliates, and
prepayments for employee retirement programs or other employee
benefits.
(iv) All corporate, accounting and other records,
including computer records, not directly related to the SWOC
Assets as such.
(v) Any recovery from the "PFAC Litigation", as
more particularly provided in Section 17 (where such term is
defined). Neither Buyer, nor any of the Corporations, shall
have any obligation for any liabilities in connection with the
PFAC Litigation.
(vi) Any and all obligations under any
relationship with employees of SWOC, provided, however, that
Sellers shall be entitled to the upward adjustment of the Sale
Price as set forth in Section 15b(ii).
9. Access to Files
Following execution hereof, SWOC shall make available for inspection
by Buyer in SWOC's Houston office during regular office hours such lease, well,
title, production, contract, marketing and other information as is in SWOC's
files relating to the SWOC Assets and the assets of Venture Resources, San
Salvador and Spruce Hills. It is understood that, while San Salvador and
Spruce Hills are wholly-owned subsidiaries of S&W, the files containing such
information as S&W has regarding their assets are found in the offices of
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SWOC. It is also understood that S&W will use its best efforts in assisting
Buyer to gain access to such title records relating to the assets of Spruce
Hills as are not found in the offices of SWOC. Existing abstracts of title and
title opinions will not be updated by S&W or SWOC. Until the Closing, SWOC
shall retain the original files but Buyer shall be permitted, at its own
expense, to make copies of pertinent material contained in such files, other
than geological and geophysical information. If for any reason the Closing
does not occur, Buyer shall immediately return all such copies to SWOC. Until
the Closing, all such files and information shall remain subject to the
existing confidentiality agreement between S&W and Buyer.
10. Notice of Material Title Defects
a. No later than December 1, 1995, Buyer shall give
Sellers written notification of any title defects that have an effect
on the value of the Evaluated Assets ("Material Title Defects"), as
such values are determined pursuant to Section 11 hereof for purposes
of adjustment. "Title defects" shall mean a condition of title to an
Evaluated Asset which results in a lesser Revenue Interest or a
greater Expense Interest for such Evaluated Asset than shown in or
used for purposes of the Reserve Report (identified in Section 11
below) for such Evaluated Asset or which imposes on such Evaluated
Asset a lien or encumbrance which is not a Permitted Encumbrance.
With respect to each Evaluated Asset identified in such notice, such
notice shall include a detailed description of the Defective Interest,
as hereinafter defined, the basis for the defect that causes such
interest to be treated as a Defective Interest and Buyer's calculation
of the Allocated Value attributable to such Defective Interest. The
term "Defective Interest" shall mean that portion (or all) of such
Evaluated Asset affected by such title defect. The term "Allocated
Value" is defined in Section 11 below. Material Title Defects shall
be limited to the assets evaluated in the Reserve Reports identified
in Section 11 below (respectively herein called the "SWOC Evaluated
Assets", the "San Salvador Evaluated Assets" and the "Spruce Hills
Evaluated Assets" and together, with the Venture Resources Evaluated
Assets (the "Evaluated Assets"). The term "title defects" shall not
include the following ("Permitted Encumbrances"):
(i) Liens or assessments for taxes, operating
costs or other sums not yet delinquent.
(ii) The burdens, encumbrances and obligations
created by or arising under the terms of the oil and gas
leases or other properties included in the Evaluated Assets,
operating agreements, oil or gas sales contracts, gathering or
transportation contracts, facilities agreements and other
agreements relating to the Evaluated Assets or to the
producing, operating, transportation or marketing of
production therefrom, provided, that, such burdens,
encumbrances and obligations shall not result in either (i) a
lower Revenue Interest or (ii) a higher Working Interest than
that shown in or used in connection with the Reserve Reports.
(iii) Consents by, required notices to, filings
with or other actions by governmental entities if same are
customarily obtained subsequent to sale.
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(iv) Easements, rights-of-ways, servitudes,
permits and other rights in or restricting surface use.
(v) Governmental rules, regulations,
restrictions, policies and orders.
(vi) Reservoir or pipeline imbalances to the
extent disclosed in writing to Buyer prior to the date hereof.
(vii) With respect to the Spruce Hills Evaluated
Assets, title being held by others for the benefit of Spruce
Hills unless Buyer can show proof that others holding title do
not in fact hold for Spruce Hills, provided however, S&W
represents that title to the Spruce Hills Evaluated Assets is
held as set forth on Exhibit D.
(viii) Title defects waived by Buyer.
b. It shall be deemed that any SWOC Evaluated Asset is a
Defective Interest if it is subject to a preferential purchase right
which is exercised. Such interest shall not be assigned to Buyer at
the Closing and the Sales Price paid to SWOC at the Closing (unreduced
because of such exercise) shall be reduced by the Allocated Value of
the interest affected by the exercise of such preferential purchase
right (or, if so assigned then, after the Closing, shall be reassigned
by Buyer to SWOC and at the Post-Closing Settlement the Sales Price
paid to SWOC at the Closing shall be reduced by the amount paid to
SWOC for exercise of such preferential purchase right).
c. If Buyer gives notice of a title defect and SWOC or
S&W have been receiving the proceeds from the sale of production from
the interest affected by such asserted title defect, then it shall be
presumed that there is no Material Title Defect; provided however,
that if Buyer provides Seller with written proof that Seller does not
have title to the interest affected by the title defect, then such
title defect shall be deemed to be a Material Title Defect and the
Sales Price will be adjusted in accordance with Section 11 of this
Agreement.
d. In the event at the Closing there is any litigation
pending against either Seller that would have a material adverse
effect on an Evaluated Asset or the ability of either Seller to
consummate the transactions contemplated by this Agreement as to an
immaterial part of the Evaluated Assets, or if conduct of operations
on an Evaluated Asset is in material violation of any applicable
statute, rule or regulation (including those for protection of the
environment), then in any such case, at Sellers' election, Sellers
shall have the right to (1) continue this Agreement by treating the
affected Evaluated Assets as Defective Interests (with the
consequences stated in Section 11 hereof) or (2) continue this
Agreement (without adjustment) and indemnify Buyer from any loss or
liability caused by such litigation or violation. If, however, any
such litigation would have a material adverse effect on the ability of
either Seller to consummate the transactions contemplated by this
Agreement as to a material part of the Evaluated Assets, then, at the
election of either Sellers or Buyer, this Agreement shall terminate
(with the consequences stated in Section 12 hereof).
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11. Adjustment for Material Title Defects
If Buyer gives timely notice of any Material Title Defects pursuant to
Section 10 above, S&W or SWOC shall have the right thereafter until the
Post-Closing Settlement to undertake to cure same (but shall have no duty to
bring suit or spend more than an aggregate of $10,000 in doing so). If, at the
Closing, any Material Title Defects remain uncured, this transaction shall
nevertheless be consummated at the Closing, with no adjustment to the Sales
Price for Material Title Defects at the Closing. If, at the time of the
Post-Closing Settlement, any Material Title Defects remain uncured, the parties
shall value such uncured Material Title Defects, using as a basis the
proportionate amounts for each of the Evaluated Assets established in (a) with
respect to the SWOC Evaluated Assets and Venture Resources Evaluated Assets the
amount set forth on Exhibits E1 and E2, (b) with respect to the San Salvador
Evaluated Assets, the Future Net Income Before Income Taxes of the proved
reserves discounted at the rate of 10.00% shown for the properties identified
in the estimate of reserves, future production and income prepared by Ryder
Scott Company dated August 10, 1995, addressed to San Salvador, and (c) with
respect to the Spruce Hills Evaluated Assets, the Company share of Present
Worth Before Income Tax of the proved and probable reserves discounted at the
rate of 15% shown for the properties identified in the evaluation report by
McDaniel & Associates Consultants Ltd. dated October 3, 1995, addressed to
Spruce Hills, copies of which reports (the "Reserve Reports") are in the
possession of SWOC and available to Buyer. Such value of Material Title
Defects, with respect to each of the Evaluated Assets, shall be apportioned to
(a) the interests in the Evaluated Assets subject to such Material Title
Defects (the "Defective Interests") and (b) the respective amounts of the Sales
Price for the SWOC Evaluated Assets or Venture Resources Evaluated Assets or
San Salvador stock or Spruce Hills stock stated in Section 2 hereof, as
follows. If the title defect of an Evaluated Asset is a lien or encumbrance
securing money owed, the initial value of the Defective Interest for such
Evaluated Asset shall be the amount owed. If the title defect of an Evaluated
Asset affects its revenue interest and expense interest, both in the same
proportion, then the initial value of the Defective Interest for such Evaluated
Asset shall be that fraction of the value of the affected Evaluated Asset
(using the basis from the Reserve Reports for value stated above) which the
revenue interest of the Defective Interest bears to the revenue interest of
such Evaluated Asset shown in or used for purposes of the Reserve Report. In
order to determine the "Allocated Value" of a Defective Interest, such initial
value of the Defective Interest, with respect to a SWOC Evaluated Asset, a
Venture Resources Evaluated Asset, a San Salvador Evaluated Asset or a Spruce
Hills Evaluated Asset, shall be divided by the total such values of all the
SWOC Evaluated Assets, all the Venture Resources Evaluated Assets, all the San
Salvador Evaluated Assets or all the Spruce Hills Evaluated Assets,
respectively, and then shall be multiplied by 100% of the Sales Price allocated
herein to the SWOC Assets (other than the stock of Venture Resources, Inc.),
100% of the Sales Price allocated herein to the San Salvador stock or 98.4% of
the Sales Price allocated herein to the Spruce Hills stock and 98.7% to the
Venture Resources Stock, respectively, and the total such Allocated Values of
Evaluated Assets remaining subject to uncured Material Title Defects at the
Post-Closing Settlement shall be an adjustment to the Sales Price at the
Post-Closing Settlement as provided in Section 15 hereof. If, however, the
title defect of an Evaluated Asset affects its revenue interest but not its
expense interest, or the reverse thereof, or disproportionately affects both,
or affects only an oil interest but not a gas interest (where there are both
for an Evaluated Asset) and if the parties are unable to agree on the Allocated
Value of such Defective Interest, the parties shall cause such initial value of
such Defective Interest to be determined (by using the foregoing standards for
determining initial values of Defective Interests to the extent pertinent) by
Ryder Scott Company (in the case of
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the SWOC Evaluated Assets or the San Salvador Evaluated Assets) or McDaniel &
Associates Consultants Ltd. (in the case of the Spruce Hills Evaluated Assets),
in a manner consistent with their evaluations in their Reserve Report. The
provisions of the Examples attached hereto shall be used to interpret this
Section.
12. Conditions to Obligations of Sellers and Buyer
a. If the representations of Buyer in Section 7 hereof
are not true and correct in all material respects at the Closing,
Sellers, at their election, shall have the right to terminate this
Agreement.
b. If the representations of (i) S&W as to Corporate
Matters in Section 4 hereof or (ii) of SWOC as to Corporate Matters in
Section 5 hereof, or (iii) if the representations as to Evaluated
Assets in Section 6 hereof are not true and correct in all material
respects at the Closing, Buyer or Sellers', at their election, shall
have the right to terminate this Agreement; provided, however, the
right to terminate due to the inaccuracy of the representations
contained in Section 6 shall be limited to the circumstance in which
the potential damage or loss relating to such inaccuracy plus the
Sales Price Adjustment for Material Title Defects provided in Section
11 is in excess of $500,000 and further provided that if neither party
elects to terminate, Buyer shall receive a downward adjustment equal
to the loss or damage. In the event that there is an inaccuracy in
the representations contained in Section 6 and the loss or damage
attributable to such inaccuracy plus the Sales Price Adjustment for
Material Title Defects provided in Section 11 is less than $500,000,
but more than $100,000, neither Buyer nor Sellers shall be entitled to
terminate this Agreement, however, Buyer shall be entitled to a
downward adjustment to the Purchase Price in an amount equal to the
sum of the loss or damage attributable to the inaccuracy of the
representation and the adjustment to the Sales Price for Material
Title Defects.
c. In the event of termination by Sellers under Section
12.a or by Buyer or Seller under Section 12.b, the Earnest Money
Deposit shall be returned by the Escrow Agent to Buyer and no party
hereto shall have any further right or duty hereunder.
13. The Closing
Unless this Agreement has been terminated pursuant to Section
10 or Section 12 hereof, the items to consummate the sales
contemplated herein shall be delivered at closing (the "Closing") on
December 22, 1995 (or such other date as is mutually agreed in
writing), commencing at 10:00 a.m., at the offices of Stone & Webster
Oil Company, Inc., 500 Dallas, Suite 2800, Houston, Texas 77002. At
the Closing:
(i) Buyer shall deliver to the Sellers the
aggregate Sales Price stated in Section 2 hereof (less the
$1,000,000 original Earnest Money Deposit plus any interest
thereon), in United States Dollars immediately available
without deduction for collection charges or the like.
(ii) S&W shall deliver to the Buyer certificates
for all the outstanding shares of capital stock of San
Salvador and Spruce Hills, and SWOC shall deliver to the Buyer
certificates for all the outstanding
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shares of capital stock of Venture Resources, all duly
endorsed in blank or accompanied by stock powers duly
endorsed in blank.
(iii) SWOC shall deliver to the Buyer recordable
assignments and bills of sale of the SWOC Assets (other than
the stock of Venture Resources), effective with respect to
sales and deliveries of oil and gas at 7:00 a.m., January 1,
1996, subject to the Permitted Encumbrances, without warranty
of title, express or implied, and without any express or
implied warranty as to the fitness thereof for any purpose,
"AS IS" and "WHERE IS" and transfer orders or letters in lieu
thereof; provided, however, as between Buyer and Sellers, the
Effective Date for allocation of costs, obligations and
revenues shall be the Effective Date stated in Section 14.
(iv) Sellers shall cause to be delivered to the
Buyer resignations of all employees, directors and officers of
San Salvador, Spruce Hills and Venture Resources and its
subsidiaries, effective at the close of business on December
31, 1995.
(v) SWOC shall deliver to Buyer possession of the
SWOC Assets, including the SWOC offices in One Allen Center.
SWOC shall have the right to nonexclusive occupancy thereof
and access to the records therein for such period of time as
is necessary for SWOC to remove property not included in the
SWOC Assets sold to Buyer and to perform the accounting
necessary for the Post-Closing Settlement and for S&W and SWOC
to calculate taxes and close their books on this transaction;
provided, however, such time period shall not extend beyond
the date for Post-Closing Adjustments. Such deliveries shall
be deemed to be effective at the close of business on December
31, 1995 (which shall be deemed to be the date of the
Closing).
(vi) Sellers shall cooperate with Buyer, subject
to existing operating agreements, to transfer operations for
all wells operated by Sellers or their Corporations, including
the execution of P-4 forms or any other required forms.
14. Effective Date
If the transactions contemplated by this Agreement are consummated in
accordance with this Agreement, the ownership of the SWOC Assets, San Salvador
stock and Spruce Hills stock shall be transferred from Sellers to Buyer as
provided in Section 13 above pursuant to the Closing, as of the date of the
Closing but effective as of 7:00 a.m. on September 1, 1995 (the "Effective
Date") for purposes of allocating certain costs and revenues as set out in
Section 15 hereof. Specifically, and not by way of limitation, for purpose of
such allocation with respect to the SWOC Assets, (a) SWOC shall bear all costs
of operations and other liabilities with respect to operations before the
Effective Date, and (b) Buyer shall be entitled to all proceeds from sales of
oil and gas produced from and after the Effective Date (or included in the
receivables on the balance sheets for SWOC as of the Effective Date) and shall
bear all costs of operations and other liabilities with respect to operations
after then, except that with respect to the period between the Effective Date
and the Closing Seller shall be liable for those liabilities arising from
Seller's wrongful conduct or the breach of any
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representation contained in this Agreement. The parties shall exercise their
best efforts to make adjustments to the Sales Price at the Closing and to the
extent that the foregoing matters have not been accounted for at or before the
Closing, they shall be accounted for at the Post-Closing Settlement. Buyer
shall assume all duties relating to the SWOC Assets (including, but not limited
to, all rent and other duties of SWOC under the One Allen Center Office Lease)
and ownership of Venture Resources, San Salvador and Spruce Hills from and
after the close of business on December 31, 1995.
15. Post-Closing Settlement
The following adjustments shall be made to the Sales Price paid at the
Closing pursuant to a Post-Closing Settlement (the "Post-Closing Settlement")
on March 15, 1996 (or earlier as the parties may agree), by payment by Sellers
(according to their respective adjustments) to Buyer of the excess (if any) of
the downward adjustments over the upward adjustments or by Buyer to Sellers
(according to their respective adjustments) of the excess (if any) of the
upward adjustments over the downward adjustments:
a. The following shall be downward adjustments in the
Post-Closing Settlement:
(i) If at the time of the Post-Closing Settlement
the Allocated Value of all then uncured Material Title Defects
(aggregated for the SWOC Evaluated Assets, the Venture
Resources Evaluated Assets, the San Salvador Evaluated Assets
and the Spruce Hills Evaluated Assets) exceeds $100,000, then
at the Post-Closing Settlement there shall be a downward
adjustment to the Sales Price received by SWOC equal to the
amount of the Allocated Values for all then uncured Material
Title Defects in the SWOC Evaluated Assets and the Venture
Resources Evaluated Assets (determined as provided in Section
11 hereof) and to the Sales Price received by S&W equal to the
amount of the Allocated Values for all then uncured Material
Title Defects in the San Salvador Evaluated Assets and the
Spruce Hills Evaluated Assets (determined as provided in
Section 11 hereof), each with interest from January 1, 1996,
to the date of Post-Closing Settlement at the prime rate (the
"Prime Rate") published in the Wall Street Journal (as it
fluctuates during such period). If SWOC (with respect to any
of the SWOC uncured Defective Interests) or S&W (with respect
to any of the San Salvador or Spruce Hills Defective
Interests), with respect to each Defective Interest for which
such an adjustment is made, elects that Buyer reconvey to SWOC
(with respect to SWOC Defective Interests) or to S&W (with
respect to San Salvador or Spruce Hills Defective Interests)
such Defective Interests, Buyer shall make such reconveyances
effective as with respect to sales and deliveries of oil and
gas at 7:00 a.m., January 1, 1996.
(ii) The proceeds (net of production taxes and
other deductions made by the purchasers of production)
received by SWOC from sale of oil and gas produced from the
SWOC Assets after the Effective Date and through the date of
the Closing shall be retained by SWOC but the amount thereof
shall be a downward adjustment in the
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Post-Closing Settlement to that portion of the Sales Price
received by SWOC pursuant to the Closing, except that there
shall be no such adjustment with respect to Defective
Interests reconveyed pursuant to Section 15.a(1) above.
(iii) the amount of any downward adjustments
elsewhere provided in this Agreement.
b. The following shall be upward adjustments in the
Post-Closing Settlement to that part of the Sales Price received by
SWOC at the Closing:
(i) The lease or unit operating expenses and
capital expenditures paid by SWOC attributable to the SWOC
Assets for the period between the Effective Date and the date
of the Closing (including indirect or overhead charges on
properties operated by SWOC, at the rates charged by SWOC to
third-party non-operators, if any, otherwise at rates charged
by operators of comparable properties), except that there
shall be no such adjustment with respect to Defective
Interests reconveyed pursuant to Section 15.a(1) above.
(ii) The rent paid by SWOC under the One Allen
Center Office Lease and all general and administrative
expenses (less and except any and all costs, of any nature or
character, related to the sale, including attorneys fees and
any payments or remuneration to employees in connection with
their termination) paid for the period between the Effective
Date and the date of the Closing.
c. Prepayments by SWOC with respect to the SWOC Assets
shall be prorated as of the date of the Closing, and the Sales Price
shall be adjusted accordingly.
d. The Sales Prices allocated in Section 2 to the SWOC
Assets (insofar as the sale of the stock of Venture Resources is
concerned) or to the San Salvador stock or the Spruce Hills stock are
calculated as of the Effective Date (so that Buyer gets the benefit
and bears the burden of the credits and debits after then attendant to
the ownership of such stock), and there shall be no adjustment for
differences in the balance sheets of Venture Resources, San Salvador
or Spruce Hills (a copy of which are attached hereto as Exhibits "A-
2", "A-3" and "A-4") for the period between the Effective Date and the
Closing, except as provided in Section 15.a(1) (with respect to
Material Title Defects) and except that the following shall apply:
(i) While SWOC (with respect to Venture
Resources) and S&W (with respect to San Salvador and Spruce
Hills) have the right to dividend or assign out before the
Closing the excess of current assets over current liabilities
as of the Effective Date, and in addition the right to
dividend or assign out before the Closing profits realized by
such companies for the period after the Effective Date
(including, with respect to San Salvador and Spruce Hills, the
excess of proceeds of oil and gas produced after the Effective
Date over lease or unit operating expenditures and capital
expenditures after the Effective Date), but in
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each such case at the Post-Closing Settlement the amount so
dividended or assigned shall be a downward adjustment in the
Sales Price allocated in Section 2 to the SWOC Assets (with
respect to any such dividend or assignment out of Venture
Resources) or to S&W (with respect to any such dividend or
assignment out of San Salvador or Spruce Hills).
(ii) SWOC shall cause Venture Resources to assign
to SWOC or its designee Venture Resources' rights and duties
in and to the PFAC Litigation as provided in Section 17.b,
with no adjustment in the Sales Price.
(iii) If, between the Effective Date and the
Closing, it is necessary for SWOC (with respect to Venture
Resources) or S&W (with respect to San Salvador or Spruce
Hills) to deliver sums to such subsidiaries for current
expenses, then the sums so delivered (with interest at the
Prime Rate from the date such loan was made to the date of the
Post-Closing Settlement) shall be an upward adjustment to the
Sales Price (for SWOC or S&W, as the case may be) at the
Post-Closing Settlement.
e. While not an adjustment to the Sales Price to SWOC,
in the Post-Closing Adjustment, SWOC shall pay to Buyer all proceeds
of production held in suspense by SWOC which (with the passage of
time) would be subject to the Texas escheat laws, and Buyer shall
assume the liability for paying such proceeds either to those entitled
thereto or to the State Treasurer pursuant to the escheat laws.
f. Sellers shall indemnify, and hold Buyer harmless from
and against any and all claims, losses, damages, costs, expenses,
suits, causes of action or judgments of any kind or character,
including, but not limited to, any attorneys' fees, attributable to or
arising out of the operation of the Evaluated Assets before the
Effective Date. Buyer shall indemnify, and hold Seller harmless from
and against any and all claims, losses, damages, costs, expenses,
suits, causes of action or judgments of any kind or character,
including, but not limited to, any attorneys' fees, attributable to or
arising out of the operation of the Evaluated Assets on or after the
Effective Date.
g. All ad valorem taxes, real property taxes, taxes
based on production from the Evaluated Assets, and similar obligations
with respect to the tax period in which the affected date occurs shall
be apportioned between Seller and Buyer as of the Effective Date based
on the immediately preceding tax period assessment.
16. Casualty Loss
If, prior to the Closing, any of the Evaluated Assets is destroyed by
fire or other casualty, this transaction shall be closed notwithstanding such
loss, and Buyer may elect before the Post-Closing Adjustment one of the
following:
a. To treat the property affected by such destruction as
a Defective Interest and adjust the Sales Price in accordance with
Section 11, in which case all sums received or receivable by SWOC, San
Salvador, Venture Resources or Spruce Hills from
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third parties (including insurance proceeds) and all rights to unpaid
awards or rights from third parties arising out such loss shall belong
to SWOC or S&W, respectively (and, if received by San Salvador or
Spruce Hills before the Post-Closing Settlement shall be assigned by
them to S&W before then).
b. To close without reduction of the Sales Price at the
Closing (and without adjustment at the Post-Closing Settlement), in
which case, with respect to the affected SWOC assets or Venture
Resources assets, SWOC shall pay to Buyer all sums received by SWOC or
Venture Resources from third parties (including insurance proceeds)
and shall assign to Buyer all of SWOC's or Venture Resources right,
title and interest in any unpaid awards or rights from third parties
arising out of such loss, and, with respect to the affected San
Salvador Assets and Spruce Hills assets, such companies shall retain
such sums and all rights to such awards or rights (which will not be
assigned by them to S&W).
17. Covenants of Sellers Pending the Closing
a. Between the date of this Agreement and the Closing,
SWOC shall (and shall cause Venture Resources), and S&W shall cause
San Salvador and Spruce Hills to (i) carry on its operations in
substantially the same manner as before the date of this Agreement,
but neither of Sellers shall have any liability to Buyer except in the
case of such Seller's gross negligence or willful misconduct, and (ii)
obtain from Buyer instructions, and implement such instructions, with
respect to each Authority for Expenditure or other commitment for the
expenditure of funds involving more than $10,000 with respect to a
Seller or its subsidiary. Buyer will respond within the time required
on any Authority for Expenditure and upon the failure of Buyer to
timely respond, Seller shall use its best judgment in making the
required response.
b. Before the Closing, SWOC shall cause Venture
Resources to assign to SWOC or its designee all its rights in and to
Cause No. 9300285 in the District Court of Harris County, Texas, 80th
Judicial District, styled "Producers Financial Acceptance Corporation
v. Enron Oil Trading & Transportation" (the "PFAC Litigation"), and in
consideration for such assignment SWOC shall indemnify, defend and
hold harmless Venture Resources from any liability and cost including
attorney's fees arising out of the PFAC Litigation or prosecuting or
defending same.
c. At or before the Closing, SWOC shall assume all
duties of Venture Resources with respect to employee benefits for the
employees of Venture Resources (and any liability on its balance sheet
with respect thereto shall be removed).
d. Within 10 days prior to Closing, Sellers' will
deliver to Buyer a list of all contracts that, to the best of Sellers'
knowledge, constitute the Contracts relating to the Evaluated Assets.
e. After Closing, Seller and Buyer shall execute,
acknowledge and deliver or cause to be executed, acknowledged and
delivered such instruments and take such other action as may be
reasonably necessary or advisable to carry out their obligations and
liabilities under this Agreement and under any Exhibit, document,
certificate or other instrument delivered pursuant hereto. Seller and
Buyer agree to negotiate, execute, and deliver a transition services
agreement governing the common use of
17
<PAGE> 22
accounting services and lease facilities located in the offices
covered by the One Allen Center Office Lease.
18. Default
Unless this Agreement has been terminated pursuant to Section 10
hereof:
a. If at the Closing Seller is not in material default
and Buyer should fail to pay or tender to the Seller the Sales Price
pursuant to Section 13 hereof, in return for tender at the Closing by
Sellers to the Buyer of the matters to be delivered by Sellers
pursuant to Section 13 hereof, the Earnest Money Deposit (including
interest earned thereon) shall be paid jointly to Sellers by the
Escrow Agent upon certification to the Escrow Agent in accordance with
the terms of the Escrow Agreement, it being agreed that actual damages
are unascertainable and that receipt by Sellers of the Earnest Money
Deposit is the proper measure of damages and sole remedy to which
Sellers are entitled and is not a penalty.
b. If at the Closing Buyer is not in material default
and Sellers should fail to tender to the Buyer the matters to be
delivered by Sellers pursuant to Section 13.a(2), (3) and (4) hereof,
in return for payment or tender at the Closing by Buyer to the Seller
of the Sales Price to be paid by Buyer pursuant to Section 13.a(1),
Buyer shall be entitled as its sole right and remedy to specific
performance; injunctive relief and any actual costs incurred in
connection therewith (including attorneys' fees and court costs) in
connection therewith, or, at Buyer's election, any such damages as are
provided for at law under such circumstances, not to exceed return of
the Earnest Money Deposit (including interest earned thereon) plus the
lesser of (i) Buyers actual out-of-pocket costs incurred in connection
with the transaction contemplated by this Agreement or (ii) $125,000.
19. Miscellaneous
a. This transaction involves several sales and cannot be
severed as to less than all provided for herein without written
consent of Sellers and Buyer.
b. Sellers and Buyer shall each pay their own expenses
(including, without limitation, counsel fees) in connection with this
Agreement and the transactions contemplated hereby. The fee of the
Escrow Agent shall be borne one-half by Sellers and one-half by Buyer.
c. Subject to the terms and conditions hereof, this
Agreement shall be binding on and inure to the benefit of the parties
hereto and their respective successors and assigns, provided that the
rights and duties of Buyer are not assignable.
d. Any notice or communication to be given hereunder to
any party shall be in writing, delivered personally to the person
named below for notice, or sent by certified mail, postage prepaid,
return receipt requested, or by facsimile transmittal followed on the
same day by certified mail, postage prepaid, return receipt requested,
addressed as follows:
18
<PAGE> 23
If to Sellers: Stone & Webster, Incorporated
250 West 34th Street
New York, New York 10119
P.O. Box 1244
New York, New York 10116
Attention: Jeremiah Cronin
Stone & Webster Oil Company, Inc.
Attention: William A. Brslik
500 Dallas, Suite 2800
Houston, Texas 77002
P.O. Box 4263
Houston, Texas 77210
If to Buyer: Southern Mineral Corporation
17001 Northchase #690
Houston, Texas 77060
Attention: Steve Mikel, President
e. S&W hereby unconditionally guarantees to the Buyer
the performance and payment of all obligations and liabilities of SWOC
under this Agreement. S&W agrees that it shall not be necessary for
Buyer to institute any proceedings or recourse against SWOC prior to
making demand under this guaranty.
f. Prior to making any press release or public
announcement with respect to this Agreement, Buyer and Sellers will
cooperate in good faith and, subject to requirements under U.S.
Securities Laws, achieve mutual agreement on the content and timing of
such press release.
g. Sellers and Buyer each agree that for U.S. Income Tax
and Canadian Tax purposes the parties will use the allocation of
values set forth in this Agreement.
h. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas applicable to
agreements executed and performable wholly within such state.
19
<PAGE> 24
IN WITNESS WHEREOF, SELLERS and BUYER have caused this Agreement to be
executed by their undersigned duly authorized officers as of the date first
stated above.
STONE & WEBSTER, INCORPORATED
By:_________________________________
Name:_______________________________
Title:______________________________
STONE & WEBSTER OIL COMPANY, INC.
By:________________________________
William A. Brslik
President
"SELLERS"
SOUTHERN MINERAL CORPORATION
By:_______________________________
Name: Steven H. Mikel
Title: President
"BUYER"
20
<PAGE> 25
For Stone & Webster Oil Company, Inc. and Venture Resources, Inc. only
EXAMPLE OF ADJUSTMENT FOR TITLE DEFECT
1. SWOC Property (chosen at random) used for this example:
Lease Name: Land, B. M. Jr. No. 1
(Table 55 in Ryder Scott report)
Expense Interest: 0.160569
Oil and Gas Revenue Interest: 0.124603
Future Net Income Before Taxes (discounted at 10%): $20,285
2. Assume failure of title to an undivided 50% of SWOC's interest
(affecting Expense and Revenue Interests in the same proportion).
3. Initial value of Defective Interest is:
0.0623015/0.124603 of $20,285 = $10,142.50
4. Allocated Value of this Defective Interest is:
$10,142.50/$20,285 x EXHIBIT E-1 Allocated Value
<PAGE> 26
For Spruce Hills Production Company, Inc.
and
San Salvador Development Company, Inc. only
EXAMPLE OF ADJUSTMENT FOR TITLE DEFECT
1. SWOC Property (chosen at random) used for this example:
Lease Name: Land, B. M. Jr. No. 1
(Table 55 in Ryder Scott report)
Expense Interest: 0.160569
Oil and Gas Revenue Interest: 0.124603
Future Net Income Before Taxes (discounted at 10%): $20,285
2. Reserve Report Total Proved Value discounted @ 10% = $6,032,708
3. Assume failure of title to an undivided 50% of SWOC's interest
(affecting Expense and Revenue Interests in the same proportion).
4. Initial value of Defective Interest is:
0.0623015/0.124603 of $20,285 = $10,142.50
5. Assume Sales Price of SWOC Assets (including Venture Resources)
is $8,940,000.
6. Assume total SWOC Evaluated Asset values are 90% of total SWOC Asset
values (excluding Venture Resources).
7. Allocated Value of this Defective Interest is:
($10,142.50/$6,032,708) x (90% of $8,940,000) = $13,527.35.
<PAGE> 27
STONE & WEBSTER OIL CO., INC.
BALANCE SHEET
<TABLE>
<CAPTION>
AUGUST 31
ASSETS 1995
-----------
<S> <C>
Cash 32,190
Temporary Cash Investments 743,000
Accounts Receivable: 319,373
Unbilled Receivable 0
Materials & Supplies 83,465 (1)
Prepayments 749,438
Notes Rec from Assoc Co's 2,000
Investments in Subsidiaries 3,509,095
Fixed Property 9,302,588 (1)
Less: Accum Depreciation 1,890,000
Accum. Depletion 5,565,799
Accum. Amortization 45,099
Accum G & G 0
-----------
1,801,690
Deferred Charges 14,036
Other Assets 0
-----------
TOTAL 7,254,287
===========
LIABILITIES AND CAPITAL
Accounts Payable:
Associated Companies 8,942
Other 83,849
Taxes Accrued:
Federal 0
State & Local Taxes 1,623
Other 117,719
-----------
119,342
Other Accrued Liabilities 102,736
Deferred Credits 0
Notes Payable to Parent Company 23,415,000
Common Stock 350,000
Capital Surplus 1,824,920
Retained Earnings (18,650,502)
-----------
TOTAL 7,254,287
===========
</TABLE>
(1) As shown on Schedule I.
Exhibit "A-1"
<PAGE> 28
VENTURE RESOURCES, INC. (NET)
BALANCE SHEET
<TABLE>
<CAPTION>
AUGUST 31 ADJUSTMENTS ADJ. BALANCE
ASSETS 1995 08/31/95
------------------------ ------------
<S> <C> <C> <C>
Cash 620,268 (515,905) 104,363
Temporary Cash Investments 0
Accounts Receivable 59,436 (13,382) 46,054
Prepayments 21,083 21,083
Fixed Property 3,305,754 3,305,754
Less: Accum Depreciation 3,156,185 3,156,185
--------- ---------
149,569 149,569
Other Assets 63,736 (63,736) 0
---------------------- ---------
TOTAL 914,092 (593,023) 216,706
====================== =========
LIABILITIES AND CAPITAL
Accounts Payable:
Associated Companies 892 892
Other 82,525 82,525
Taxes Accrued:
Federal Income:
United States -- Current (81,474) 81,474 0
-- Prior Years 31,822 (31,822) 0
State and Local Income Taxes 2,200 (2,200) 0
Other (4) 4 0
---------------------- ---------
(47,456) 47,456 0
Other Accrued Liabilities 132,366 (28,003) 104,363
Accumulated Deferred Federal
Income Tax 28,521 28,521
--------- ---------
TOTAL LIABILITIES 196,848 111,938
Common Stock 500 500
Capital Surplus
Retained Earnings 716,744 (612,476) 104,268
---------------------- ---------
STOCKHOLDERS EQUITY 717,244 (612,476) 104,768
---------------------- ---------
TOTAL LIABILITIES AND EQUITY 914,092 (593,023) 216,706
====================== =========
</TABLE>
Exhibit "A-2"
<PAGE> 29
SAN SALVADOR DEVELOPEMENT CO
BALANCE SHEET
<TABLE>
<CAPTION>
AUGUST 31 ADJUSTMENTS ADJ. BALANCE
ASSETS 1995 08/31/95
--------- ----------- ------------
<S> <C> <C> <C>
Cash 2,448 (2,448) 0
Temporary Cash Investments 202,000 (202,000) 0
Accounts Receivable:
Other 0
Fixed Property 1,430,797 1,430,797
--------- ---------
Less: Accum. Depreciation 296,691 296,691
Accum. Depletion 1,032,482 1,032,482
Accum. Amortization 1 1
Accum. G & G 3,481 3,481
--------- ---------
98,142 98,142
Prepayment 5,579 5,579
Other Assets (GOODWILL) 73,367 73,367
--------- -------- ---------
TOTAL 381,536 (204,448) 177,088
========= ======== =========
LIABILITIES AND CAPITAL
Accounts Payable:
Associated Companies 0 0
Other 0 0
Taxes Accrued:
Federal Income:
United States -- Current 11,194 (11,194) 0
-- Prior Years 58,434 (58,434) 0
Other 27,200 27,200
--------- -------- ---------
96,828 (69,628) 27,200
Other Accured Liabilities 4,740 (4,740) 0
Accumulated Deferred Federal
Income Tax 22,690 22,690
Common Stock 100,000 100,000
Capital Surplus 60,159 60,159
Retained Earnings 97,119 (130,080) (32,961)
--------- -------- ---------
TOTAL 381,536 (204,448) 177,088
========= ======== =========
</TABLE>
Exhibit "A-3"
<PAGE> 30
SPRUCE HILLS PRODUCTION C0, INC
BALANCE SHEET
<TABLE>
<CAPTION>
AUGUST 31 ADJUSTMENTS ADJ BALANCE
1995 08/31/95
---------- ----------- ----------
<S> <C> <C> <C>
Cash 26,552 (26,552) 0
Temporary Cash Investments 304,000 (274,388) 29,612
Accounts Receivable:
Other 200,315 200,315
Prepayments 51,217 51,217
Investment w/Allaro Resources
Fixed Property 15,360,889 15,360,889
Less: Accum. Depreciation 2,340,870 2,340,870
Accum. Depletion 5,772,519 5,772,519
Accum. Amortization 153,099 153,099
Accum. G & G 364,554 364,554
---------- ----------
6,729,847 6,729,847
Alberta Royalty Cr. Receivable (32,170) (32,170)
---------- ----------- ----------
TOTAL 7,279,761 (300,940) 6,978,821
========== =========== ==========
LIABILITIES AND CAPITAL
Accounts Payable:
Associated Companies 3,531 3,531
Other 162,265 162,265
Taxes Accrued:
Federal Income:
United States - Current (193,498) 193,498 0
- Prior Years 200,168 (200,168) 0
Canadian - Current Year (212,336) 212,336 0
- Prior Years 34,660 (34,660) 0
Other 18,724 18,724
---------- ----------- ----------
(152,282) 171,006 18,724
Other Accrued Liabilities 83,051 (800) 82,251
Take or Pay Gas Receipts 29,612 0 29,612
Accumulated Deferred Federal
Income Tax 63,721 63,721
Common Stock 100,000 100,000
Retained Earnings 6,989,863 (471,146) 6,518,717
---------- ----------- ----------
TOTAL 7,279,761 (300,940) 6,978,821
========== =========== ==========
</TABLE>
Exhibit "A-4"
<PAGE> 31
Schedule I to Exhibit A-1
STONE & WEBSTER OIL COMPANY, INC.
Office Furniture, Transportation
and Other Equipment at 7-31-95
<TABLE>
<CAPTION>
Net Book
ACCOUNT Book Cost Book Cost Value
NUMBER Description Houston Yoakum 7-31-95
<S> <C> <C> <C> <C> <C>
Office Funiture & Equipment:
1510/20 SOFT, OGSSYS & NETWORK 28,258.55 0.00
1510/25 TERMINALS & PRINTERS 39,265.34 3,321.11
1510/30 HARD, NETWORK 37,959.71 1,794.40
1510/35 PC SYSTEMS 74,880.03 15,839.41
1510/40 PC SOFTWARE 1,839.98 0.00
1510/45 CALCULATORS, ADDERS 1,949.20 187.95 0.00
1510/50 TYPEWRITERS 8,991.63 1,086.75 282.20
1510/55 POSTAGE EQUIP 4,435.28 1,256.36
1510/60 TELEPHONE EQUIPMENT 14,393.37 803.68 6,180.39
1510/65 TELECOPY EQUIP 8,287.21 1,983.05 1,982.76
1510/70 DESKS, CHAIRS 19,517.16 2,328.38 1,911.37
1510/75 FILES, CAB'S BKCASES 57,238.15 1,340.78 3,494.21
1510/80 REPRODUCTION EQUIP 22,112.25 6,746.78 8,405.09
1510/81 MISC OFC FURN & EQUIP 7,177.18 2,328.39 1,465.23
---------- ---------- ---------
Total 326,305.04 16,805.76 45,932.53
Other:
1510/85 TOOLS, SHOP, GAR, WK EQUIP * 0.00 98,236.41 0.00
1510/96 OFC LSE IMPROVMTS (ALLEN) 4,611.00 0.00 1,113.22
1510/110 YOAKUM OFC & WHSE 0.00 140,213.75 0.00
---------- ---------- ---------
Total 4,611.00 238,450.16 1,113.22
Transportation Euipment * 16,466.00 73,603.79 4,964.38
---------- ---------- ---------
TOTAL PP&E Other than Lease & Well 347,382.04 328,859.71 52,010.13
========== ========== =========
</TABLE>
* See Detail Schedule 1 and 2
Schedule I to Exhibit A-1
<PAGE> 32
YOINV795
YOAKUM INVENTORY
TOOLS, SHOP, GARAGE, WORK EQUIPMENT
<TABLE>
<CAPTION>
ATTMT YR OF 1995
DESCRIPTION REF ADDN Cost Remits
<S> <C> <C> <C> <C>
Open Book 6-15-72 72-M 1972 1,586.00 See Items 22, 23 on VEHO795
DEPR SCH ADDNS-Unidentified 74-M 1974 8,062.14
DEPR SCH ADDNS-Unidentified 74-M 1976 493.10
DEPR SCH ADDNS-Unidentified 74-M 1977 2,636.54
DEPR SCH ADDNS-Unidentified 74-M 1979 3,703.91
Pump Unit 74-M 1982 11,250.00 74-M(3) From P&A Schmidt well, Idle in Yard
COMPRESSOR 83-M(1) 1983 40,669.72
Generator and Rig-up/Housetrail 83-M(1) 1983 0 (1,174.20) Reverse 94 Retm Generator not sold/in YOakum Yd
UTILITY TRAILER 83-M(1) 1983 754.00 See Item 26 on VEHO795
SHREDDER 83-M(1) 1983 420.00
TRACTOR MOWER 83-M(1) 1983 6,500.00
WELL TESTER, 2" 83-M 1985 270.17
RENGERLE COMPRESSOR #6 92-M 10-92 20,815.40
Repair Rothbeuer Comp. 6-93 1,075.43 1,075.43 Part of Joy Compressor Sold in 1994
---------
TOTAL ACCT 1510/85 7-31-95 98,236.41
=========
</TABLE>
Compressor #1 salvaged from Alco Mag well is at yard, inoperable at -0- cost.
Compressor #2 is at Yoakum properties and capital cost is allocated to
YO wells, A,C,R,T.
<PAGE> 33
YOINV795
AUTOMOBILE PHYSICAL DAMAGE INSURANCE
SCHEDULE OF EQUIPMENT
AS OF JULY 31, 1995
STONE & WEBSTER OIL COMPANY, INC.
=================================
<TABLE>
<CAPTION> Pur License
Vehicle Description Driver Serial Number Cost New Yr Number
------------------- ----------------- ----------------- -------- ----- -------
<S> <C> <C> <C> <C> <C>
1977 GOOSENECK FLAT TRAILER Yoakum Yard 10008 4,905 6/77 35SGYW
1989 CHEVROLET 1T P.U. Barcak 1GBHR34N6K108527 14,431 1/89 5899RU
WINCH BED & RIG-UP FOR ITEM 58 7,824 2/89
1991 FORD F150 SUPERCAB P.U. Kirk 1FTEX15H8MKB09872 15,756 5/91 1802YY
1991 FORD F150 P.U. Yoakum Yd./Gauger 1FTDF15YOMPB24884 10,812 9/91 3252ZL
1992 FORD EXPLORER Horne 1FMDU32X6NUD54084 19,876 6/92 BY6455
1992 FORD LTD CR VICTORIA Zbitowsky 2FACP72W7NX246027 16,466 11/92 JHZ36M
------
Total G.L. Acct 5010/90 90,070
Tools, Shop, Garage & Work equip:
1966 2.5T Ford Oilfield Trk Yoakum Yard F61DK769127 1,326 11/72 None
1947 Hobbs Trailer Yoakum Yard TR33088TEX 260 11/75 None
1975 Shopmade Trailer w/Pump Yoakum Yard 000001 0 10/75 34SGYW
1983 16' Shopmade Trailer Yoakum Yard None 754 02/83 81TRXL
------
Partial G.L. Acct. 1510/85 2,340
</TABLE>
<PAGE> 34
<TABLE>
<CAPTION>
Current
Property Description County Lavaca CAD DeWitt CAD Harris CAD Estimated
Value Value Value Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. .18 miles of 2 2/2" gas gathering line DeWitt $540
2. 2.97 miles of gathering lines Lavaca $10,980 $10,740
.13 mile - 6"
1.24 mile - 3"
1.60 mile - 2"
3. 2.595 acres. Blk 95 & 97 in City of Yoakum DeWitt $4,670
4. 5.656 acres. Field Office with improvements Lavaca $76,160 $34,543
land $16,200 $11,659
building $59,960 $22,884
5. Inventory @ Yoakum Yard Lavaca $25,000 $70,000 $56,025
6. Yoakum Field Compressor Lavaca $60,000 $39,180
7. Tubular Inventory @ Four Star in Houston $25,034
8. Wellhead Equip. stored @ Ingram Cactus, CC. Tx. $2,405
</TABLE>
<PAGE> 35
JC - LEASE INVENTORY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
WELL SEPARATOR HEATER HEATER TREATER METER RUN
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
YOAKUM
RICE # 2 National Oilwell - 1945 Manufacturer - unknown 4" welded
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
24" X 11' 30" X 10' w/ Foxboro temp recorder
(@ header - D.A. Unit)
$700 $275 $375
- ------------------------------------------------------------------------------------------------------------------------
Header @ D.A. Unit Lester Moore Texas Gulf
W.P. - 1000 psig W.P. - 3000 psig
16" X 5' 36" X 9'
Btu - 500,000
$450 $0
- ------------------------------------------------------------------------------------------------------------------------
Alves # 2 Lester Moore Daniel Simplex - 2"
W.P. - 1000 psig NO meter
16" X 5'
(NOT IN USE)
$450 $125
- ------------------------------------------------------------------------------------------------------------------------
Turner # 1 Parkersburg National 4" - welded
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
24" X 10' 30" X 7.5' w/ Foxboro temp recorder
Btu - 500,000
$700 $375 $375
- ------------------------------------------------------------------------------------------------------------------------
Turner # 2 National - horizontal BS & B - Dual Pass 4" - Flanged
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
16" X 5' 24" X 12' w/ Foxboro temp recorder
Btu - 500,000
(hole in one pass)
$0 $0 $325
- ------------------------------------------------------------------------------------------------------------------------
National - horizontal 4" - Flanged
16" X 5' w/ Foxboro temp. recorder
W.P. - 1000 psig (NOT IN USE)
(NOT IN USE)
$0 $75
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
WELL GLYCOL UNIT PUMP TANKS COMPRESSOR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
YOAKUM
RICE # 2 2 - 210 bbl
$1,000
- ---------------------------------------------------------------------------------------------------------------------------
Header @ D.A. Unit Lester Moore 3 - 210 bbl
W.P. - 1000 psig
contactor - 6" X 6'
Btu - 500,000
5 MMCFD unit
$750
Manuf. - F & R
W.P. - 1000 psig
packed tower - 12" X 15'
Btu - 400,000
3 MMCFD unit
(NOT IN USE)
$1,000 $1,500
- ---------------------------------------------------------------------------------------------------------------------------
Alves # 2
- ---------------------------------------------------------------------------------------------------------------------------
Turner # 1 2 - 210 bbl
1 - 400 bbl
$1,000
$500
- ---------------------------------------------------------------------------------------------------------------------------
Turner # 2 (see Turner # 1)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 36
JC - LEASE INVENTORY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
WELL SEPARATOR HEATER HEATER TREATER METER RUN
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chandler # 1 Parkersburg - horizontal Parkersburg 4" - welded
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
16" X 10' 36" X 10' w/ Foxboro temp recorder
Btu - 400,000
(junk-not in use)
$50 $0 $325
- ------------------------------------------------------------------------------------------------------------------------
Chandler # 2 B.S. & B. - horizontal Smith 4" - flanged
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
16" X 5' 24" X 7.5' w/ Foxboro temp recorder
Btu - 250,000
$75 $550 $325
- ------------------------------------------------------------------------------------------------------------------------
Chandler # 3 National - horizontal Lester Moore 4" - flanged
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
12" X 10' 30" X 10' w/ Foxboro temp recorder
Btu - 500,000
(located @ well)
$0 $750 $325
Lester Moore
W.P. - 3000 psig
24" X 6'
Btu - 250,000
(located @ separator)
$375
- ------------------------------------------------------------------------------------------------------------------------
* * *
Freude # 1 Lester Moore Lester Moore 2" Simplex
W.P. - 1000 psig W.P. - 3000' w/ 3 pen Barton Meter
16" X 5' 24" X 6'
Btu - 250,000
$450 $375
Shop made - Fairchild * included on skid unit
W. P. - 125 psig
3 phase - low pressure
24" X 6'
$250 $300
- ------------------------------------------------------------------------------------------------------------------------
Alves # 3 Parkersburg B.S. & B. (1965) 4" - flanged
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
24" X 10' Btu - 500,000 w/ Foxboro temp recorder
$525 $0 $325
National National 4" - flanged
W.P. - 3000 psig W.P. - 3000 psig w/ Foxboro temp recorder
30" X 12' 36" X 10' (NOT IN USE)
(NOT IN USE) Btu - 650,000
(NOT IN USE)
$200 $0 $75
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
WELL GLYCOL UNIT PUMP TANKS COMPRESSOR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chandler # 1 2 - 210 bbl
1 - 400 bbl
$1,000
$500
- ---------------------------------------------------------------------------------------------------------------------------
Chandler # 2
(see Chandler # 1)
- ---------------------------------------------------------------------------------------------------------------------------
Chandler # 3
(see Chandler # 1)
- ---------------------------------------------------------------------------------------------------------------------------
Freude # 1 *
Lester Moore 2 - 210 bbl
W.P. - 1000 psig 1 - 300 bbl
contactor - 6" X 6'
Btu - 250,000
MCFD unit
$1,000
$700 $500
- ---------------------------------------------------------------------------------------------------------------------------
Alves # 3
1 - 215 bbl
2 - 224 bbl
$350
$1,000
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 37
JC - LEASE INVENTORY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
WELL SEPARATOR HEATER HEATER TREATER METER RUN
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Yoakum S.W.D.
- ------------------------------------------------------------------------------------------------------------------------
Compressor Station
- ------------------------------------------------------------------------------------------------------------------------
HALLETTSVILLE
Bludau # 1 Lester Moore Lester Moore 3" - Daniel Simplex
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 2 pen recorder
16" X 5' 30" X 10' w/ Barton temp recorder
Btu - 500,000
$450 $750 $450
- ------------------------------------------------------------------------------------------------------------------------
Check Meter 2" - Daniel Simplex
w/ Barton 2 pen recorder
$375
- ------------------------------------------------------------------------------------------------------------------------
Auxillary Site Fairchild - suction
(Bludau/ Randow) scrubber for National 3" - Daniel Simplex
compresso(Bludau/ Randow) W.P. - 150 psig (NOT IN USE)
W.P. - 1000 psig 4' X 20'
12" X 15' (NOT IN USE)
$375 $600 2" - Daniel Simplex
w/ Barton 2 pen recorder
Maloney Crawford-horizontal w/ Foxboro temp recorder
14" X 10' (NOT IN USE)
(NOT IN USE)
$50 $425
Manuf. - ? - horizontal
W.P. - 1000 psig
14" X 10'
(NOT IN USE)
$50
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
WELL GLYCOL UNIT PUMP TANKS COMPRESSOR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Yoakum S.W.D. National Oilwell 2 - 210 bbl
J-3 Triplex w/ 1 1/2" 1 - 400 bbl
rods (holes in tank)
(NOT CURRENTLY IN
Engine - Waukesha USE)
VRG-155 (30hp) $1,000
$2,000 $0
- ---------------------------------------------------------------------------------------------------------------------------
Compressor Station Gardner Denver RXE
cylinders - 6" X 13"
cylinder symbol -
12-HAE-3580
serial # 205331
$5,000
Engine - Waukesha
NKR (old model)
F1905 (new model #)
210 H.P.
$5,000
- ---------------------------------------------------------------------------------------------------------------------------
HALLETTSVILLE
Bludau # 1 2 - 210 bbl
$1,000
- ---------------------------------------------------------------------------------------------------------------------------
Check Meter
- ---------------------------------------------------------------------------------------------------------------------------
Auxillary Site Gemini - 2 stage
(Bludau/ Randow) 4 3/8" X 2 1/2"
Waukeshau VRG-330
(54 hp)
$21,000
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 38
JC - LEASE INVENTORY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
WELL SEPARATOR HEATER HEATER TREATER METER RUN
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Randow # 3 Shopmade - Fairchild H.H. Oilfield Equipt. 3" - Daniel Simplex
W.P. - 1000 psig W.P. - 3000 psig w/ Barton 3 pen recorder
24" X 6.5' 30" X 10' $450
$750 Btu - 500,000
$750 3" - Daniel Simplex
Shopmade - Fairchild (w/o meter)
W.P. - 125 psig (NOT IN USE)
24" X 7.5' $175
3 phase low pressure
$300
Lester Moore
W.P. - 1000 psig
16" X 5'
$450
Shopmade - Fairchild
W.P. - 125 psig
30" X 11'
3 phase low pressure
(NOT IN USE)
$300
National - horizontal
W.P. - 1000 psig
12" X 10'
(NOT IN USE)
$50
- ------------------------------------------------------------------------------------------------------------------------
Klekar # 1 Lester Moore Philbeck, Inc.-dual pass Warren, Inc. 2" - Daniel Simplex
W.P. - 1000 psig W.P. - 6500 psig W.P. - 50 psig w/ Barton 3 pen recorder
16" X 5' 30" X 10' 4' X 20' $375
Btu - 500,000 Btu - 500,000
(serves Klekar &
Rothbauer) 2" - Daniel Simplex
w/ Barton 2 pen recorder
(NOT IN USE)
$450 $1,250 $800 $375
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
WELL GLYCOL UNIT PUMP TANKS COMPRESSOR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Randow # 3 1 - 316 bbl
2 - 400 bbl
2 - 500 bbl
$300
$1,000
$1,200
Mission (salt water)
1- 1 1/2 X 2-R
7.5 hp electric motor
$125
- ---------------------------------------------------------------------------------------------------------------------------
Klekar # 1 1-300 bbl (fiberglass)
2 - 500 bbl
$600
$1,200
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 39
JC - LEASE INVENTORY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
WELL SEPARATOR HEATER HEATER TREATER METER RUN
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Rothbauer # 1 Lester Moore Warren, Inc. 2" - Daniel Simplex
W.P. - 1000 psig W.P. - 50 psig w/ Barton 3 pen recorder
16" X 5' 4' X 20'
$450 Btu - 500,000
(hole in shell)
Shopmade - Fairchild (NOT IN USE)
W.P. - 125 psig
24" X 6' $400 $375
3 phase low pressure
$250
H & H. Oilfield Equip.
W.P. - 1200 psig
16" X 7.5'
(inlet to glycol unit)
$525
Seaboard, Inc.
W.P. - 1200 psig
16" X 7.5'
(compressor discharge)
$525
- ------------------------------------------------------------------------------------------------------------------------
Perez # 1 Lester Moore Barton 202A
W. P. - 1000 psig w/ 2 pen recorder
16" X 5'
$450 $250
- ------------------------------------------------------------------------------------------------------------------------
Zengerle # 3 Briley Welding Co. 2" - Daniel Simplex
W. P. - 1000 psig w/ Barton 2 pen recorder
12" X 5'
$375 $375
Briley Welding Co.
W.P. - 1000 psig
16" X 5'
$450
Manuf.-unknown
24"X6'
W.P. - 1000 psig
$450
- ------------------------------------------------------------------------------------------------------------------------
Totals $94,700 $10,550 $5,375 $1,800 $6,650
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
WELL GLYCOL UNIT PUMP TANKS COMPRESSOR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Rothbauer # 1 Lester Moore 1-300 bbl. (fiberglass)
contactor - 6" X 6' 2 - 400 bbl
Btu - 500,000
5 MMCFD unit
$950 $600
$1,000
- ---------------------------------------------------------------------------------------------------------------------------
Perez # 1 Lester Moore 1-210 bbl. (fiberglass)
10 3/4" X 10' - packed
tower Btu - 250,000
$700 $600
- ---------------------------------------------------------------------------------------------------------------------------
Zengerle # 3 Roger Rape 1 - 210 bbl Gemini G-26 - 2 stage
10" X 12' - Packed Tower 4" & 2" X 3"
Btu - 225,000 26 hp - Gemini engine
1.5 MMCFD unit
$950 $300 $15,000
- ---------------------------------------------------------------------------------------------------------------------------
Totals $5,050 $2,125 $17,150 $46,000
</TABLE>
<PAGE> 40
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
INV. CARD TOTAL TOTAL UNIT TOTAL
NUMBER DESCRIPTION AMOUNT AMOUNT AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1000 TUBING $12,488.45 $0.00 $12,488.45
2000 CASING $7,312.96 $0.00 $7,312.96
3000 LINE PIPE $306.69 $0.00 $306.69
4000 L.P.O.T. $4,018.31 $0.00 $4,018.31
5000 STRUCTURAL $1,381.16 $0.00 $1,381.16
6000 DOWNHOLE EQUIPMENT $11,312.97 $0.00 $11,312.97
8000 LEASE EQUIPMENT $18,316.66 $0.00 $18,316.66
9000 MISCELLANEOUS $888.52 $0.00 $888.52
---------- ------- ----------
$56,025.72 $0.00 $56,025.72
========== ======= ==========
</TABLE>
<PAGE> 41
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD TUBING
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1002 2-3/8" 4.60# J-55 C 118 3,819.35 $0.400000 FT $1,527.74
1012 2-3/8" 4.70# J-55 B 6 178.29 $0.500000 FT $89.15
1006 2-3/8" 4.70# N-80 A 28 839.42 $0.400000 FT $335.77
1007 2-3/8" 4.70# N-80 C 308 9,232.89 $0.400000 FT $3,693.16
1009 2-3/8" 4.70# N-80 EUE A 7 239.60 $0.600000 FT $143.76
1016 2-3/8" 4.70# N-80 EUE C 12 374.69 $0.500000 FT $187.35
1020 2-3/8" 4.70# N-80 EUE C 25 809.80 $0.500000 FT $404.90
1021 2-3/8" 4.70# N-80 EUE B 20 651.95 $0.600000 FT $391.17
1019 2-3/8" 5.90# L-80 E 39 1,161.61 $0.400000 FT $464.64
(REIFFERT #1 PIPE)
1010 2-7/8" 6.50# J-55 C 50 1,509.22 $0.500000 FT $754.61
1014 2-7/8" 6.40# N-80 C 221 7,060.00 $0.500000 FT $3,530.00
1011 2-7/8" 6.50# J-55 C 20 606.22 $0.507307 FT $307.54
1015 2-7/8" 6.50# N-80 A 10 319.80 $0.700000 FT $223.86
1018 2-7/8" 7.90# L-80 A 0 0.00 $0.000000 FT $0.00
(REIFFERT #1 PIPE)
1003 2-3/8" 4.70# J-55 EUE 8RD R-2 A 7 228.84 $1.900000 FT $434.80
----------
$12,488.45
==========
</TABLE>
<PAGE> 42
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD CASING
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2005 5-1/2" 14.00# K-55 B 2 57.33 $1.000000 FT $57.33
2006 5-1/2" 15.50# K-55 C 22 867.65 $1.000000 FT $867.65
2018 5-1/2" 15.50# K-55 B 11 432.24 $1.500000 FT $648.36
2012 5-1/2" 15.50# J-55 C 106 3,413.69 $1.000000 FT $3,413.69
2007 5-1/2" 17.00# C 2 54.39 $1.250000 FT $67.99
2008 5-1/2" 17.00# K-55 C 39 1,466.24 $1.250000 FT $1,832.80
2009 5-1/2" 17.00# K-55 C 5 194.99 $1.250000 FT $243.74
2010 5-1/2" 17.00# N-80 C 4 120.93 $1.500000 FT $181.40
2020 5-1/2" 23.00# E 0 0.00 $0.000000 FT $0.00
(REIFFERT #1 PIPE) ---------
$7,312.96
=========
</TABLE>
<PAGE> 43
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD LINE PIPE
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3001 2-3/8" 3.65# ERW A 8 321.10 $0.500000 FT $160.55
3002 2-1/2" x-42 A 7 292.27 $0.500000 FT $146.14
(REIFFERT #1 PIPE) ---------
$306.69
=========
</TABLE>
<PAGE> 44
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD L.P.O.T.
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4001 1-1/4" 2.10# J-55 D 55 1,889.17 $0.218611 FT $412.99
4002 1-1/2" 2.90# J-55 D 101 3,322.82 $0.500000 FT $1,661.41
4006 2-3/8" 4.70# J-55 D 117 3,553.92 $0.500000 FT $1,776.96
4012 2-7/8" 6.50# J-55 D 35 1,113.00 $0.150000 FT $166.95
(REIFFERT #1 PIPE) ---------
$4,018.31
=========
</TABLE>
<PAGE> 45
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD STRUCTURAL
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5001 2-3/8" 4.70# D 183 5,580.97 $0.240972 FT $1,344.86
5005 5" 18.00# N-80 E 2 53.74 $0.090063 FT $4.84
5006 5" 18.00# N-80 E 2 54.94 $0.266837 FT $14.66
5009 8-5/8" 24.00# K-55 E 3 140.01 $0.120000 FT $16.80
(REIFFERT #1 PIPE) ---------
$1,381.16
=========
</TABLE>
<PAGE> 46
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD DOWNHOLE EQUIPMENT
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC. PAGE 1
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6043 4-1/2" BAKER MODEL "FL" L.81 SEAL BORE C 0.00 $300.000 $0.00
6002 4-1/2" N-80 BUTTRESS COUPLING C 1.00 $45.000 $45.00
6003 5-1/2" N-80 BUTTRESS COUPLING C 1.00 $45.000 $45.00
6004 2" OTIS COUPLING C 2.00 $0.000 $0.00
6048 NIPPLE, SEATING 1.791 I.D. OTIS "N" C 1.00 $50.000 $50.00
6034 NIPPLE, SEATING 2-3/8" OTIS "S" C 2.00 $45.400 $90.80
6052 NIPPLE, SEATING 2-3/8" OTIS "X" C 1.00 $50.000 $50.00
6008 PUP JOINT 2-1/16"X6' N-80 C 1.00 $21.000 $21.00
6009 PUP JOINT 2-1/16"X10' N-80 C 1.00 $26.000 $26.00
6010 PUP JOINT 2-3/8"X2' 8-ACME C 1.00 $0.000 $0.00
6011 PUP JOINT 2-3/8"X2' 8-ACME (COATED) C 1.00 $0.000 $0.00
6012 PUP JOINT 2-3/8"X4' 8-ACME C 1.00 $0.000 $0.00
6013 PUP JOINT 2-3/8"X6 8-ACME (COATED) C 1.00 $0.000 $0.00
6014 PUP JOINT 2-3/8"X8' J-55 8-ACME C 2.00 $0.000 $0.00
6015 PUP JOINT 2-3/8"X10' 8-ACME C 1.00 $0.000 $0.00
-------
$327.80
=======
</TABLE>
<PAGE> 47
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD DOWNHOLE EQUIPMENT
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC. PAGE 2
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6016 PUP JOINT 2-3/8"X12' 8-ACME C 1.00 $0.000 $0.00
6017 PUP JOINT 2-3/8"X2.10' 4.70# J-55 C 1.00 $22.560 $22.56
6018 PUP JOINT 2-3/8"X3.99' 4.70# J-55 C 1.00 $36.680 $36.68
6019 PUP JOINT 2-3/8"X4.10' 4.70# J-55 C 1.00 $36.680 $36.68
6020 PUP JOINT 2-3/8"X4.13' 4.70# J-55 C 1.00 $36.680 $36.68
6022 PUP JOINT 2-3/8"X7.96' 4.70# J-55 C 1.00 $50.000 $50.00
6039 PUP JOINT 2-3/8"X8' 4.70# J-55 C 2.00 $10.000 $20.00
6044 PUP JOINT 2-3/8"X2' N-80 C 1.00 $50.000 $50.00
6045 PUP JOINT 2-3/8"X4' N-80 C 1.00 $50.000 $50.00
6040 PACKER, CASING 4-1/2"X2-3/8" BAKER C 1.00 $446.275 $446.27
6041 PACKER, CASING 4-1/2"X2-3/8" BAKER AR-1 C 2.00 $325.000 $650.00
SNAP SET COMPRESSION
6046 PUP JOINT 2-3/8"X6' N-80 A 1.00 $50.000 $50.00
6024 PACKER CASING 4-1/2"X2-3/8" BAKER "R" C 4.00 $400.000 $1,600.00
6026 PACKER CASING 4-1/2"X2-3/8" OTIS"MH" C 3.00 $450.000 $1,350.00
6025 PACKER CSG 4-1/2"X2-3/8" OTIS PERMA-LATCH C 2.00 $400.000 $800.00
---------
$5,198.87
=========
</TABLE>
<PAGE> 48
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD DOWNHOLE EQUIPMENT
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC. PAGE 3
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6033 PACKER CSG 5"X2-3/8" BAKER"R" C 1.00 $400.000 $400.00
6047 PACKER CSG 5-1/2"X2-3/8" BAKER "R" C 1.00 $350.000 $350.00
6051 PACKER CSG 5-1/2"X2-3/8" BAKER "R" C 4.00 $458.992 $1,835.97
6028 PACKER CSG 5-1/2"X2-3/8"GUIBERSON KVL-30 C 1.00 $50.000 $50.00
6055 PACKER CSG BAKER "R" 7" C 1.00 $500.000 $500.00
6037 PACKER CSG 7"X2-7/8" OTIS "MH" C 1.00 $250.000 $250.00
6029 ROD POLISHED 1-1/4"X22' C 2.00 $0.000 $0.00
6027 PACKER CSG 5-1/2"X2-3/8" OTIS "MH" C 4.00 $333.333 $1,333.33
6030 ROD SUCKER 3/4"X25' NORRIS C 201 6,950.00 $0.100 $695.00
6031 ROD SUCKER 7/8"X25' NORRIS E 112 2,800.00 $0.040 $112.00
6050 ROD SUCKER 3/4"X25' A 4 100.00 $0.100 $10.00
6042 SLIDING SLEEVE ASSY 4-1/2" BAKER"L" A 1.00 $250.000 $250.00
$0.00
$0.00
$0.00
---------
$5,786.30
=========
</TABLE>
<PAGE> 49
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD LEASE EQUIPMENT
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC. PAGE 1
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8002 DEHYDRATOR 1000# WP 10'X24" L MOORE C 1.00 $500.000 $500.00
8002-1 DEHYDRATOR 1000# WP 10'X24" L MOORE C 1.00 $375.000 $375.00
8026 DEHYDRATOR 1000# WP 10'X10-3/4" L MOORE C 0.00 $850.000 $0.00
VERTICAL SCRUBBERS 3MCF
8033 DEHYDRATOR 12003 WP COASTLINE PROCESS C 1.00 $450.000 $450.00
8039 DEHYDRATOR 1 MCF 6-5/8"X15' VESCO C 0.00 $0.00
8043 DEHYDRATOR 3000# WPL MOORE C 2.00 $850.000 $1,700.00
8043-1 DEHYDRATOR 3000# WPL MOORE C 1.00 $0.000 $0.00
(MUSSELMAN)
8052 DEHYDRATOR KEN WIND 12-3/4"X15' C 1.00 $1,000.000 $1,000.00
PACKED TOWER
8054 DEHYDRATOR SMITH 3M2 CAP 6'X20" C 1.00 $1,000.000 $1,000.00
REBOILER 10-3/4"X17" TOWER
8003 HEAD COMPRESSOR 4"X7" JOY C 1.00 $250.000 $250.00
8004 HEATER LINE 12'X30" 3000# WP NATIONAL C 1.00 $250.000 $250.00
8017 HEATER LINE 24"X6' ANDERSON 3000# WP C 1.00 $500.000 $500.00
8020 HEATER LINE 24"x6' 3000# WP L MOORE C 2.00 $333.333 $666.66
8040 HEATER LINE 3'X8' 3000# WP TX-GULF C 1.00 $150.000 $150.00
8053 HEATER LINE 3000# WP SMITH C 1.00 $450.000 $450.00
8056 HEATER LINE BAKER 30"X10' 10000# WP C 1.00 $0.000 $0.00
(MUSSELMAN) ---------
$7,291.66
=========
</TABLE>
<PAGE> 50
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD LEASE EQUIPMENT
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC. PAGE 2
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8005-1 METER GAS BARTON 202-A 2-PEN ORIFICE C 1.00 $150.000 $150.00
8014 METER GAS AM MODEL SS-25 2-PEN ORFICE C 1.00 $200.000 $200.00
8006 METER RUN 2" SIMPLEX DANIEL #705-R ORIFICE C 7.00 $100.000 $700.00
8024 METER RUN 3" SIMPLEX DANIEL SENIOR ORIFICE C 1.00 $0.00
8007 MOTOR ELEC. 10-HP WESTINGHOUSE 4500 C 1.00 $100.000 $100.00
8008 PANEL CONTROL MOTOR UNIT C 1.00 $0.000 $0.00
(NO VALUE INV. CONTROL)
8019 PROD UNIT 30003 LN HTR 16"X5" SEP C 1.00 $800.000 $800.00
8019 PROD UNIT 30003 LN HTR 16"X5" SEP C 1.00 $800.000 $800.00
8032 PROD UNIT 1440 WP 6500# LN HTR 16"X6.5' C 1.00 $2,500.000 $2,500.00
8010 PUMP CHEM INJ WESTERN W/HOPPER C 2.00 $100.000 $200.00
8046 PUMP SWD W/HERCULES ENGINE C 0.00 $1,000.000 $0.00
8049 PUMP UNIT 114-D NATIONAL C 1.00 $4,400.000 $4,400.00
8013 RECORDER TEMP PALMER C 1.00 $125.000 $125.00
8058 RECORDER TEMP BARTON C 1.00 $175.000 $175.00
8016 SEP 16"X5' VERT L MOORE 1000#WP C 0.00 $350.000 $0.00
8016-A SEP 16"X5' VERT L MOORE 1000#WP C 1.00 $0.000 $0.00
(MUSSELMAN)
8044 SEP 20"X7"-2" 3-PHASE 1440# WP SMITH C 1.00 $0.000 $0.00
(MUSSELMAN)
8047 SEP 24"X6' 1000# WP C 0.00 $0.000 $0.00
----------
$10,150.00
==========
</TABLE>
<PAGE> 51
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD LEASE EQUIPMENT
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC. PAGE 3
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8057 SEP 2-PHASE 125# 24"X6' C 1.00 $50.000 $50.00
8037 SEP 24"X7-1/2" 3-PHASE 15# WP C 0.00 $0.000 $0.00
8022 SEP 24"X10' 125# WP 3-PHASE C 0.00 $0.000 $0.00
8048 SEP 24"X10' PARKERSBURG 1000# WP C 1.00 $375.000 $375.00
8011 SEP 3'X11' PARKERSBURG 1000# WP C 1.00 $150.000 $150.00
8030 SEP 3'X12' 1000# WP NATIONAL C 2.00 $150.000 $300.00
8028 TANK, STORAGE-440 BBL C 1.00 $0.000 $0.00
8029 TANK, STORAGE-210 BBL C 2.00 $0.000 $0.00
8059 PUMPING UNIT, EMSCO D610 C 1.00 $0.000 $0.00
8060 PUMPING UNIT, AMERICAN 80 C 1.00 $0.000 $0.00
$0.00
$0.00
$0.00
$0.00
$0.00
-------
$875.00
=======
</TABLE>
<PAGE> 52
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: YOAKUM WAREHOUSE AND YARD MISCELLANEOUS
GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/10
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9001 CHEMICALS GLYCOL-55 GAL DRUM A 0.00 $0.000000 $0.00
110.00 $8.044836 $884.92
9003-2 CHEMICALS WEEDKILLER A 0.00 $0.000 $0.00
240.00 $0.015 $3.60
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
-------
$888.52
=======
</TABLE>
<PAGE> 53
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: FOUR STAR PIPE SERVICES, INC.
CROSBY, TEXAS GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/25
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2004 4-1/2" 10.50# K-55 STC R-3 LSS ERW A I-11 192 7,962.5 $1.000000 FT $7,962.50
2005 4-1/2" 11.60# N-80 J7L SMLS LTC R-3 A I-13 85 3,977.9 $1.250000 FT $4,972.38
2006 4-1/2" 12.24# J-55 USS SMLS FJ R-3 C I-13 15 608.1 $1.000000 FT $608.10
2007 4-1/2# 11.60# N-80 API LTC R-3 B I-13 8 318.6 $1.250000 FT $398.25
2008 4-1/2" 11.60# K-55 API LTC R-3 A I-13 2 84.4 $1.000000 FT $84.40
2201 5-1/2" 17.00# N-80 USS SMLS BTC R2-11 B 12 387.3 $1.500000 FT $580.95
2202 5-1/2" 17.00# N-80 USS SMLS LTC R-3 B 17 733.2 $1.500000 FT $1,099.80
2205 5-1/2" 17.00# N-80 USS SMLS BTC R-3 A 12 480.1 $1.500000 FT $720.15
2206 5-1/2" 17.00# N-80 USS SMLS B I-12 2 65.9 $1.500000 FT $98.85
2207 5-1/2" 17.00# N-80 USS SMLS LTC R-3 A I-12 119 4,928.1 $1.500000 FT $7,392.15
2208 5-1/2" 17.00# N-80 NPT SMLS LTC R-3 A I-12 2 93.0 $1.500000 FT $139.50
2211 5-1/2" 17.00# J-55 LSS API LTC R-2 B I-12 7 223.2 $1.250000 FT $279.00
2212 5-1/2" 15.50# J-55 API LTC R-3 B I-12 15 465.5 $1.500000 FT $698.25
(4-JTS-BSC;11-JTS-USS)
----------
$25,034.28
==========
</TABLE>
<PAGE> 54
<TABLE>
<CAPTION>
MATERIALS AND SUPPLIES INVENTORY RECAP SHEET
DATE: 29-Aug-95
LOCATION: INGRAM CACTUS - CORPUS CHRISTI
CORPUS CHRISTI, TEXAS GENERAL LEDGER DATE: 31-Aug-95
COMPANY: STONE & WEBSTER OIL COMPANY, INC.
GENERAL ACCOUNT NUMBER: 1310/15
REVISED
INV. CARD QUANTITY UNIT UNIT TOTAL
NUMBER DESCRIPTION COND RACK JOINTS FOOTAGE COST AMOUNT
- ------------- ------------------------------------- ---- ----- ------ -------- --------- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
7001 CASINGHEAD, XMAS TREE:11" 3000#X10-3/4" C 1.0 $185.00 $185.00
7002 TUBINGHEAD, XMAS TREE:11" 5000#X7-1/6" C 1.0 $500.00 $500.00
7003 DRILLING SPOOL, XMAS TREE:11" 3000# C 1.0 $720.00 $720.00
7004 UPPER FLOW ASSY, XMAS TREE:5000# C 1.0 $1,000.00 $1,000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
---------
$2,405.00
=========
</TABLE>
<PAGE> 55
STONE & WEBSTER OIL COMPANY
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Goliad, TX -- Kling, Inc. -- .00173617 Dornburg , M. 258 acres, more or less, out of
ORRI Gas Unit #2 the A. Berry Survey, A-59, being
further described in that certain
Gas Unit Designation dated
September 22, 1981, recorded in
Vol. 332, Page 224, Deed Records of
Goliad County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
DeWitt, TX Arneckeville/ Stone & .812525 .603046 Zengerle, 160.57 acres, more or less, out of
Anna Barre, Webster Oil Ester #3 the James Quinn Survey A-395 and
W. Co. being all of the Herbert Zengerle,
et ux 406 acre tract described in
lease dated January 19, 1944,
recorded in Vol. 26, Page 55, Oil
and Gas Records of DeWitt County,
Texas, from Herbert Zengerle, et
ux, as Lessors, to Atlantic
- -------------------------------------------------------------------------------------------------------------------------------
DeWitt, TX Arneckeville Moose Oil & -- .0518941 Phillips 88 acres, more or less, out of the
Gas Company, ORRI M. Ortiz Survey A-42 and being
Inc. further described in that certain
Partial Assignment from Stone &
Webster Oil Co., Inc., et al to
Moose Oil & Gas Company, dated
April 6, 1993, recorded in Vol.
303, Pg. 179, Oil & Gas Records,
DeWitt County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
DeWitt, TX Arneckeville Louis Dreyfus -- .0234375 Wallace 80 acres, more or less, out of the
Natural Gas ORRI James Quinn Survey A-395 and being
Corp. more particularly described in that
certain Partial Assignment from
Stone & Webster Oil Co., Inc. to
1988 Indexgeo-J.V., dated February
28, 1991, recorded in Vol. 293, Pg.
808, Oil & Gas Records of DeWitt
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Ouachita, LA Cadeville Summit .008685 .00706787 Werner Sawmill Section 29, Township 17 North,
Overseas Co. Range 2 East, Ouachita Parish, LA.
Exploration,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
DeWitt, TX Friar Ranch Rio Bravo .033333 .025546 Sixjay #1 646.494 acres, more or less, out of
Exploration, the T&NO RR Co. Survey, as
Inc. described in that certain Oil, Gas
and Mineral Lease dated September
14, 1984, between Sixjay
Enterprises, a General Partnership,
as Lessor, and Conquest Exploration
Company, as Lessee, and being
recorded in Volume 247, Page 570 of
the Oil and Gas Records of DeWitt
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1
<PAGE> 56
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lavaca, TX Hallettsville Stone & .345833 .2611897 & Bludau 124.73 acres, more or less, out of
Webster Oil .00050889 RI the L. J. Presnal League A-355, as
Co. & .002 ORRI described in that certain Oil and
Gas Lease between Hubert Bludau, et
al, Lessor and Enterprise
Resources, Inc., Lessee, dated
March 15, 1974, recorded in Vol.
174, Pg. 665, et. seq. of the Lease
Records of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & .33333 .2708333 & City of 80 acres, more or less, out of the
Parsley .0208334 Hallettsville Luke J. Presnal League, A-355 and
Development ORRI Oil Unit the John Hallett Survey, A-217, as
Co. No. 1 described in Designation of Oil
Unit, dated February 1, 1985,
recorded in Volume 291, Page 910,
et seq. and a Correction of
Designation of Oil Unit dated
December 4, 1988, recorded in
Volume 323, page 31, Lease Records
of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Stone & .3438335 .2691023 & Randow G.U. 352 acres, more or less, out of the
Webster Oil .003888 ORRI well #3 Luke J. Presnal League, A-355, as
Co. described in the Unit Designation
creating the Stone & Webster Oil
Company, Inc., Randow well No. 3
Gas Unit effective as of February
18, 1986, recorded in Volume 302,
Page 588, et. seq. Lease Records of
Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & -- .0145881 Zappe, Lester 352 acres, more or less, out of the
Parsley ORRI G.U. William Ponton Survey, A-36 and the
Development James Campbell Survey, A-6, as
Co. described in Designation of Gas
Unit dated March 5, 1981, recorded
in Volume 249, page 115 of the
Lease Records of Lavaca County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & -- .041667 ORRI Leopold, Joe 94.8 acres, more or less, out of
Parsley BPO then BPO then #1 the L. J. Presnal League, A-355 and
Development .33333 APO .2708334 APO the John Hallett League, A-217,
Co. being described in that certain
Oil, Gas & Mineral Lease dated June
26, 1973 between Joe Leopold et ux
Lessor, and Enterprise Gas, Inc.,
Lessee, recorded in Volume 169,
Page 459, Lease Records, Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & -- .0009958 Woytek-Edwards 702.93 acres, more or less, out of
Parsley ORRI G.U. the James Campbell League, A-6,
Development being further described in that
Co. certain Designation of Gas Unit
dated July 10, 1979, recorded in
Volume 230, Page 674, as amended in
Vol. 295, Page 530, Lease Records
of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Bass -- .00032244 Neuhaus G.U. 325.15 acres, more or less, out of
Enterprises ORRI the John Smothers Survey A-47, the
Production Co. Jno. C. Cooksey Survey A-130, the
Barnard Brown Survey A-74, and
being more particularly described
in Gas Pooling Designation recorded
November 3, 1971 in Book 158,
Pages 176 to 182 inclusive, Lease
Records of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE> 57
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lavaca, TX Hallettsville Parker & -- .02 ORRI Treptow Oil 81.1928 acres, more or less, out of
Parsley Unit #2 the Luke J. Presnal Survey, A-355
Development and the John Hallett Survey, A-217,
Corp. and more particularly described in
that certain Designation of Oil
Unit dated December 19, 1984,
recorded in Volume 290, page 760,
Lease Records, Lavaca County,
Texas, as amended by Amendment and
Ratification dated July 10, 1985,
recorded in Volume 298, Page 62,
Lease Records, Lavaca County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Mobil Oil .1973704 .1549799 & Randow G.U. 701.2309 acres, more or less, out
/North Word Corp. .0381825 wells 1, 2 & 3 of L. J. Presnal League, A-355, and
ORRI the John Hallett League, A-217, and
being more particularly described
by that Designation of Unit
recorded in Volume No. 236, Page
135 et. seq. of the Lease Records,
Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & .0338278 .027485 Hathaway- 699.9168 acres, more or less, out
Parsley Edwards G.U., of the L. J. Presnal Survey, A-355,
Development well #2 being described in that certain
Co. Designation of Gas Unit dated May
15, 1979, recorded in Volume 229,
Page 628, Lease Records of Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & .0345685 .0280777 Hathaway- 699.9168 acres, more or less, out
Parsley Edwards G.U. of the L. J. Presnal Survey, A-355,
Development wells #3-5 being described in that certain
Co. Designation of Gas Unit dated May
15, 1979, recorded in Volume 229,
Page 628, Lease Records of Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & .0338278 .027485 Hathaway- 699.9168 acres, more or less, out
Parsley Edwards G.U. of the L. J. Presnal Survey, A-355,
Development wells #6-7 being described in that certain
Co. Designation of Gas Unit dated May
15, 1979, recorded in Volume 229,
Page 628, Lease Records of Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Parker & .390625 .3125 Renger Gas 320 acres of land, more or less,
Parsley Unit out of the William Ponton Survey,
Development A-36 and the James Campbell Survey,
Co. A-6, as described in Designation of
Gas Unit dated February 4, 1981,
recorded in Volume 248, page 784 of
the Lease Records of Lavaca County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Hallettsville Stone & .333333 .2603777 & Klekar Unit 80.245 acres, more or less, out of
Webster Oil .003889 ORRI the Luke J. Presnal League, A-355,
Co. and being further described in that
certain Unit Designation dated
August 15, 1985, recorded in Vol.
296, Page 832, as amended at Volume
300, Page 76, Lease Records, Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE> 58
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lavaca, TX Hallettsville Stone & .333333 .2642048 & Rothbauer Unit 82.4952 acres, more or less, out of
Webster Oil .0038906 the Luke J. Presnal League, A-355,
Co. ORRI and being further described in that
certain Unit Designation executed
February 25, 1986, recorded in Vol.
303, Pg. 248, Lease Records, Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Starr, TX LaSacatosa Stone & .2200 .1699502 Perez G.U. 160 acres of land, more or less,
Webster Oil out of the La Sacatosa Grant, A. C.
Co. Salinas Survey A-167, and being
further described in that certain
Designation of Gas Unit dated
January 10, 1994, effective
December 1, 1993, recorded in Vol.
686, Pg. 378, Real Property
Records of Starr County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N. E. Kaiser-Frances .15972597 .12942631 Foshee, A. M. 640 acres, more or less, out of the
TX Trawick/ Oil Co. #1-A Unit Maria D. Castro Survey A-133 and
Naconiche being further described in that
Creek certain Unit Desingation dated
March 3, 1978, recorded in Vol.
167, Pg.. 476, & Vol. 167, Pg. 195,
as amended by docuent at Vol. 169,
Pg. 572, Oil & Gas Lease Records,
Nacogdoches County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N. E. MW Production -- .013242 ORRI Blount, E. A. 700.06 acres, more or less, out of
TX Trawick/ (Amoco) III G.U. the Nathaniel Benton Survey, A-89,
N. Appleby and being further described in that
certain Unit Designation dated
October 7, 1981, recorded in Vol.
155, Pg. 750, Oil & Gas Lease
Records, Nacogdoches County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances .0539233 .04364192 Mast, A.T."B" 690 acres, more or less, out of the
TX Naconiche Oil Co. et al G.U . Maria D. Castro Survey A-133 and
Creek being further described in that
certain Unit Designation dated
January 31, 1985, recorded in Vol.
569, 757, amended in Vol. 594, Pg.
1 and Vol. 666, Pg. 550, Real
Property Records of Nacogdoches
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Francis .13558455 .11440132 Langhorne, M. 699.64 acres, more or less, out of
TX Naconiche Oil Co. M. et al GU the N. Burkhalter Survey A-67, F.
Creek Carter Survey A-667, G. W. McGuire
Survey A-410, A. McMinns Survey A-
760 and the T. Barrington Survey A-
127, being more fully described in
that certain Designation of Unit
dated December 31, 1984, recorded
in Vol. 558, Page 14 & Vol. 568,
Pg. 256, amended in the Vol. 622,
Pg. 803 and Vol. 677, Pg. 18, Real
Property Records, Nacogdoches
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances .16056895 .1246034 Land, B.M. et 437.31 acres, more or less, out of
TX Naconiche Oil Co. al G.U. the William C. Walker Survey, A-
Creek 569, the M. D. Castro Survey, A-643
and the I. Sanches Survey, A-509
and being described in Designation
of Gas Unit dated February 14,
1985, recorded in Volume 569, Page
795 of the Real Property Records of
Nacogdoches County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 59
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nacogdoches, N.E. Trawick/ Kaiser-Frances .11747726 .09071044 King, T. B. 701.25 acres, more or less, out of
TX Naconiche Oil Co. et al G.U. the Ignacio Sanches Sr. Survey, A-
Creek 509, the A. Yancy Survey A-625 &
the W. C. Walker Survey A-596, and
being further described in that
certain Unit Designation dated
November 30, 1984, recorded in
Volume 556, Pg. 811, Vol. 565, Pg.
199 and Vol. 568, Pg. 242 amended
in Vol. 582, Pg. 235 and Vol. 622,
Pg. 134, Real Property Records,
Nacogdoches County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances .09571988 .08169878 Hartt G.U. 695.95 acres, more or less, out of
TX Naconiche Oil Co. the W. C. Walker Survey A-596 and
Creek the Maria D. Castro Survey A-133
and being further described in
that certain Unit Designation dated
January 14, 1982, recorded in Vol.
158, Pg. 34, as amended by document
dated September 22, 1982, recorded
in Vol. 165, Pg. 325, Oil & Gas
Lease Records, Nacogdoches County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances -- .0331085 Dews G.U. 699.11 acres of land, more or less,
TX Naconiche Oil Co. ORRI out of the Santiago Rabia Survey,
Creek A-469, the A. Yancy Survey, A-625,
the M. T. Yancy Survey, A- 629, and
the Wm. Fulcher Survey, A-756,
being more particularly described
in Unit Designation dated January
14, 1982 and recorded in Volume
158, Page 70 as amended by
Amendment to Unit Designation dated
September 22,1982, recorded in
Volume 165, Page 119, Oil and Gas
Lease Records, Nacogdoches County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances .01290572 .00951512 Reavley, T. W. 345.08 acres, more or less, out of
TX Naconiche Oil Co. et al G.U. the D. Sanchez Survey A-505, the I.
Creek Sanchez Survey A-509 and the M. G.
Herrera Survey A-248 and being
further described in that certain
Unit Designation dated November 26,
1995, recorded in Vol. 611, Pg.
222, Real Property Records of
Nacogdoches County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances .11572787 .08935846 Bright, N. G. 693.109 acres, more or less, out of
TX Naconiche Oil Co. et al G.U. the Maria D. Castro Survey A-133
Creek and being further described in
that certain Unit Designation dated
January 31, 1985, being recorded in
Vol. 562, Pg. 888 and Vol. 575, Pg.
677, and amended by Supplemental
Unit Designations recorded in Vol.
606, Pg. 742, and Vol. 612, Pg.
481 and Vol. 637, Pg. 689, Real
Property Records, Nacogdoches
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 60
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nacogdoches, N.E. Trawick/ Kaiser-Frances .05126194 .05196533 Strong G.U. 688.32 acres, more or less, out of
TX Naconiche Oil Co. the Maria D. Castro Survey A-133,
Creek the Wm. C. Walker Survey A-596, and
the Wm. Fulcher Survey A-756 and
being further described in that
certain Unit Designation dated
January 14, 1982, recorded in vol.
158, Pg. 107 and 143, amended in
Vol. 168, Pg. 790 and Vol. 497, Pg.
12, Vol. 608, Pg. 719, Oil & Gas
Lease Records of Nacogdoches
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, N.E. Trawick/ Kaiser-Frances .14862006 .11824202 Richardson, J. 465.98 acres, more or less, out of
TX Naconiche Oil Co. D. Estate G.U. the David Sanches Survey, Abstract
Creek 1 No. 505, and the I. Sanches Survey,
Abstract No. 509 and being
described in Designation Gas Unit
dated April 15, 1985, recorded in
Volume 582, Page 270 et seq. of the
Real Property Records of
Nacogdoches County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX North Word Mobil Oil -- .0002141 Brown, Annie 320.20935 acres, more or less, out
Corp. ORRI et al G.U. of the John Smithers Survey,
Abstract 47 and the Barnard Brown
Survey, Abstract 74, and being more
fully described in that Designation
of Gas Unit recorded under File
No's. 91738 and 91941, Volume 162,
pages 290-298 and 493-501 of the
records of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX North Word Mobil Oil -- .0001033 Von Rosenberg, 661.82 acres, more or less, out of
Corp. ORRI Monte G.U. the John Smithers League A-47 and
the Barnard Brown Survey A-74 and
being more particularly described
in that certain Designation of Gas
Unit recorded in Book 195, Pages
702-734 inclusive of the Lease
Records of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX S.E. Bass -- .00015746 Kristek G.U. 694.391 acres, more or less, out of
Hallettsville Enterprises ORRI the J. C. Cooksey Survey, A-130,
Production Co. being more fully described in that
certain Gas Pooling Designation
dated October 22, 1979, of record
in Volume 241, Page 409 of the Oil
and Gas Lease Records of Lavaca
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX S.E. Bass -- .00010732 Wynne G.U. 650.854 acres, more or less,out of
Hallettsville Enterprises ORRI the J. Smithers Survey, A-74, and
Production Co. being more fully defined in that
certain Gas Pooling Designation
dated March 7, 1980, of record in
Volume 244, Page 383 of the Lease
Records of Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 61
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lavaca, TX S.E. Valence -- .0191857 Einkauf G.U. 691.73 acres of land, more or less,
Hallettsville Operating Co. ORRI out of the John Hallet Survey,
Abstract 217, Wm. S. Fisher Survey,
Abstract 167 and Wm. Smithers
Survey, Abstract 40, Lavaca County,
Texas, being designated by
instrument effective April 24,
1978, and recorded in Volume 218,
Page 816 of the Lease Records of
Lavaca County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX S.E. Bass .2385283 .19362834 Bonorden, 352.00 acres, more or less, out of
Hallettsville Enterprises Leonard G.U. the J. Hallett Survey, A-217 and
Production Co. the L. J. Presnal Survey, A-355,
being more fully described in that
certain Gas Pooling Designation
filed in Book 191, pages 811-816 of
the Lease Records of Lavaca County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Hidalgo/Starr, Sullivan City Spiller, -- .0107297 Saenz, G. F. 160.15 acres, more or less, being
TX Robert ORRI #2 all of tract No. 234, containing
65.77 acres, all of Tract No. 235,
containing 66.77 acres, and the
East 27.61 acres of Tract 242 of
the Partition of Porcion No. 38, 39
and 40, in Hidalgo and Starr
Counties, Texas and being further
described in that certain Oil, Gas
& Mineral Lease dated 2/26/84
between G. F. Saenz and E. G.
Henrichson, recorded in Vol. 430,
Pg. 390, Oil & Gas Records, Starr
County, Texas and Vol. 391, Pg.
105, Oil & Gas Records, Hidalgo
County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Goliad, TX Weesatche Coastline -- .003333 ORRI Dohmann, David 133.34 acres, more or less, out of
Exploration #1 the John Davis Survey, A-107,
Inc. Goliad County, Texas and being
further described in that certain
Oil, Gas and Mineral Lease dated
February 1, 1984, between David
Dohmann et ux, Lessor, and
Coastline Exploration, Inc.,
Lessee, recorded in Volume 369,
Page 74 of the Official Records,
Goliad County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Yoakum Stone & .57593 .41994 & Turner G.U. 401.96 acres, more or less, out of
Webster Oil .0020433 the James May Survey A-28, the John
Co. ORRI May Survey A-313 and the Patrick
May Survey A-324, Lavaca County,
Texas and being more particularly
- -------------------------------------------------------------------------------------------------------------------------------
Lavaca, TX Yoakum Stone & 1.0 .8142728 Freude G.U. 352 acres, more or less, out of the
Webster Oil John May League, A-29 and the James
Co. May League, A-28, and being further
described in that certain Unit
Designation effective March 10,
1992, being recorded in Volume 4,
Page 202-206, inclusive, of the
Official Records of Lavaca County,
Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 62
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Prospect/
County/Parish Field Operator WI Cost Rev. Well Name Description
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DeWitt, TX Yoakum Stone & 1.0 .72917 Rice 148 acres, more or less, out of
Webster Oil the James May League, A-33, more
Co. particularly described in Oil, Gas
and Mineral lease dated January 10,
1944, between Eugene Rice, et al as
Lessors, and J. M. Mc Millan, Jr.,
as Lessee, recorded in Volume 26,
Page 74, Oil & Gas Records of
DeWitt County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
DeWitt/Lavaca, Yoakum Stone & 1.0 .72481 Chandler G.U. 356.96 acres, more or less, out of
TX Webster Oil Co the John May League, A-29, Lavaca
County, TX and the John May League
A-34, DeWitt County, Texas and
being more particularly described
- -------------------------------------------------------------------------------------------------------------------------------
DeWitt/Lavaca, Yoakum Stone & 1.0 .716562 Alves G.U. 255.3 acres, more or less, out of
TX Webster Oil the James May Survey A-33 and the
Co. John May Survey A-329, DeWitt
County, Texas and the John May
Survey A-313 and the Patrick May
Survey A-324, Lavaca County, Texas
and being more particularly
described in Unitization Agreement
dated October 29, 1948, recorded in
Volume 34, Page 547, Oil & Gas
Records of DeWitt County, Texas and
in Book 58, Page 591, of the Lease
Records of Lavaca County, Texas as
supplemented instrument dated
February 9, 1949, and as amended by
instrument dated March 16, 1950,
recorded in Vol. 37, Pg. 247, Oil &
Gas Records, DeWitt County, Texas.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 63
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 1
EXHIBIT "C"
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-01 Milsue Gilwood Chevron 94-31 Processing unit gas in non-Unit No Costs No Costs
Sand Unit No. 1 Atlantis
- ------------------------------------------------------------------------------------------------------------------------------------
95-02 Mitsue Gilwood Chevron 94-32 412-4-469 Refrac 2-33-69-3W5I 0.8147 115,000.00 937.00
Sand Unit No. 1
- ------------------------------------------------------------------------------------------------------------------------------------
94-03 Gilby Viking Gulf Canada 95-03 45506 Purchase Gulf Gilby 6-9-41- 0.6611 360,639.00 2,384.00
Unit No. 1-Seg. 45508 3W5M. To Recomplete in 0.6611 50,985.00 826.00
B 45509 Viking Fm. DEFEATED 73,940.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-04 Cadotte Ulster 481 Tie-in 10-9, 10-17 at 8.50 705,500.00 19,987.00
(Enerplus AFE F4-1534 7-29-86-18W5
#50015
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-05 Cadotte Ulster RC4-1572 Recomp. of Elkton gas zone 8.50 73,000.00 2,069.00
(Enerplus AFE 12-17-87-17-W5M
#??? 33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-06 Wolf Creek Poco EW4-029RI Drill & eval. Rock Creek Fm. @ 4.2500
6-29-51-15 W5M. FOR 826,500.00 35,126.00
INFORMATION ONLY - amts. same 1,321,000.00 56,147.00
as our AFE 94-301
- ------------------------------------------------------------------------------------------------------------------------------------
95-07 Cadotte PRL Resources Memo dated 1/23/95 - 8.50 22,903.00 1,947.00
acquisition of interest in two
parcels in Cadotte area.
- ------------------------------------------------------------------------------------------------------------------------------------
95-08 Nipisi Gilwood Amoco 95-02 54041800 Replacement of electric .09147 2,025,000.00 1,852.00
Unit No. 1 54041801 submersible pump equipment as
required.
- ------------------------------------------------------------------------------------------------------------------------------------
95-09 Mitsue Gilwood Chevron 95-01 412-4-466 Replace and upgrade deaerator .81470 92,000.00 750.00
Sand Unit No. 1 tower vacuum pump at Slave
water plant.
- ------------------------------------------------------------------------------------------------------------------------------------
95-10 Mitsue Gas Chevron 95-01 1993/94 Audit. Est. cost. .81470 50,400.00 411.00
Conservation
Plant
- ------------------------------------------------------------------------------------------------------------------------------------
95-11 Mitsue Gilwood Chevron 95-02 1994 audit expenses. Est. .81470
Sand Unit No. 1 costs incl. in 95-10 above
- ------------------------------------------------------------------------------------------------------------------------------------
95-12 Brazeau River Cody 14026 Lease acq. @ 6/8/94 land sale- 8.50 21,649.00 1,840.00
Parcel A160, Sec. 32, 48-13W%
- ------------------------------------------------------------------------------------------------------------------------------------
95-13 Brazeau River Cody 14025 Lease acq. @ 6/8/94 land sale- 6.38 17,118.00 1,091.00
Parcel A159,
Sec. 31-48-13W5.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 64
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 2
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-14 Bull Run Cody 14027 Lease acq. @ 4/16/94 land sale 2.55 326,007.00 8,313.00
Parcel A195, 94-A-16/Blk. J&94-
H-01/Blk. B.
- ------------------------------------------------------------------------------------------------------------------------------------
95-15 Rat Creek Cody 14028 Offer to purchase N20-50-12-W5M 8.50 66,468.00 5,650.00
from Norcen Energy 5/20/94.
- ------------------------------------------------------------------------------------------------------------------------------------
95-16 Instow Unit Talisman 94-10 6795 Injection stimulation of well .30570 101,684.00 311.00
9-6-10-18 W3M.
- ------------------------------------------------------------------------------------------------------------------------------------
95-17 Grand Forks Morrison 94897 D&C 2-5-12-13 W4M
(Enerplus D&A: 169,950.00 5.391
AFE #40794 D&C: 327,700.00 5.391 327,700.00 1,767.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-18 Mitsu Maxwell 95DD0201 D&C 4-17-72-3 W5M
D&A: 633,150.00 5.0
D&C: 1,026,050.00 5.0 1,026,050.00 51,303.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-19 Buffalo Lake Penmax 20134 Purchase and reprocess seismic 8.50 8,080.00 687.00
North lines 78D and 76D (41-20-W4)
- ------------------------------------------------------------------------------------------------------------------------------------
95-20 Brazeau River Cody 14024 To acquire Parcel A-155 at 6.38 17,118.00 1,091.00
6/8/94 sale, Sec. 29, 48-13W5.
- ------------------------------------------------------------------------------------------------------------------------------------
95-21 Nipisi Gilwood Amoco 95-03 54041900 Zonal isolation of NGU #192 .09147 95,645.00 88.00
Unit No. 1 (04-03-080-08 W5) profile
modification.
- ------------------------------------------------------------------------------------------------------------------------------------
95-22 Swalwell Saxon 954002 Recomplete and test 8-7-30-24 4.000 114,740.00 4,590.00
W4M as a potential Viking gas
well.
- ------------------------------------------------------------------------------------------------------------------------------------
95-23 Nipisi Gilwood Amoco 94-29 540000 Lining of the South Leg .09147 1,015,225.00 929.00
Unit No. 1 Injection Line
- ------------------------------------------------------------------------------------------------------------------------------------
95-24 Nipisi Gilwood Amoco Canada 94-28 54041500 Purchase and installation of .09147 317,850.00 291.00
Unit No. 1 desanding filters for the fresh
water sand removal project.
- ------------------------------------------------------------------------------------------------------------------------------------
95-25 Pembalta Amoco Canada 94-01 1995 Operating Forecast 3.2642 666,600.00 21,694.00
Station No. 8
- ------------------------------------------------------------------------------------------------------------------------------------
95-26 Nipisi Gilwood Amoco Canada 94-24 1995 Operating Budget .09147 24,845.00 22,728.00
Unit No. 1
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 65
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 3
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-27 Nipisi Gas Amoco Canada 94-03 1995 Operating Budget 09147 5,606,500.00 5,129.00
Processing
Facilities
- ------------------------------------------------------------------------------------------------------------------------------------
95-28 Instow Unit Talisman Energy 94-09 1995 Operating Forecast .3057 2,417,000.00 7,389.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-29 Mitsue Gilwood 94-24 (1) 1995 Capital Prog. & Oper. .8147 25,783,000.00 210,056.00
Sand Unit No. 1 Expense Forecast
- ------------------------------------------------------------------------------------------------------------------------------------
95-29 Mitsue Gilwood 94-24 (2) Offsite tech. support .8147 16,000.00 1,304.00
Sand Unit No. 1 services
- ------------------------------------------------------------------------------------------------------------------------------------
95-30 Mitsue Gas 94-10 (1) 1995 Capital Prog. & Oper. .81470 3,163,000.00 25,769.00
Converservation Expense Forecast
Plant
- ------------------------------------------------------------------------------------------------------------------------------------
95-30 Mitsue Gas 94-10 .81470 40,000.00 327.00
Converservation
Plant
- ------------------------------------------------------------------------------------------------------------------------------------
95-31 Lindale Cardium Mobil 02-94 1995 Expense Budget .127024 2,047,000.00 2,600.00
Unit
- ------------------------------------------------------------------------------------------------------------------------------------
95-32 Wainwright Unit Pennwest 95-01 1995 Operating Forecast 1.17707 1,280,900.00 15,077.00
#4
- ------------------------------------------------------------------------------------------------------------------------------------
95-33 Pembina Cardium Pembina 95-01 1995 Operating Budget 19.8917 1,145,788.00 227,917.00
Unit #31
- ------------------------------------------------------------------------------------------------------------------------------------
95-34 Leahurst Pan Canadian 4-94 1995 Operating Budget 0.30647 443,511.00 1,359.00
Glauconitic "B"
Pool Unit
- ------------------------------------------------------------------------------------------------------------------------------------
95-35 Brazeau River Cody 44011-S1 Cost overruns incurred for 8.50 349,800.00 29,733.00
reentering wellbore
13-15-48-13 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-36 Enchant Cody 34059 Install separator, tank and 8.50 56,400.00 4,794.00
flare stack @ 11-33-14-17 W4M
(11a-33 well)
- ------------------------------------------------------------------------------------------------------------------------------------
95-37 Chinchaga Cody 24023 Purchase and reproc. of 8.50 8,208.00 697.00
seismic, Twp 96-9 and
T97-9 W6M
- ------------------------------------------------------------------------------------------------------------------------------------
95-38 Brazeau River Cody 44012-S2 Refrac the Rock Creek Fm. @ 16- 8.50 338,900.00 28,807.00
21-48-13 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-39 Scott Lake Cody 34053 Drill test well @ 6-14-55-6 W5M 8.50 481,650.00 40,940.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-40 Mitsue Gilwood Chevron 94-28 Use of surplus unit flowlines No Costs No Costs
Sand Unit No. 1 to transp. non-Unit shallow gas
to 2-12-70-4W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-41 Ghost Pine Gulf Canada 32-94 34356 Purchase and install a 1.75046 260,236.00 4,555.00
compressor at 10-24-32-21 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 66
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 4
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-42 Ghost Pine Unit Gulf Canada 03-95 Release of Rowley Belly River 1.75046 87,083.62 1,524.00
(1) GU No. 1 from the Ghost Pine
Unit-Gas Compression & Transp.
- ------------------------------------------------------------------------------------------------------------------------------------
95-42 Ghost Pine Gulf Canada 03-95 Agmt. 1.75046 46,891.18 821.00
Plant (2)
- ------------------------------------------------------------------------------------------------------------------------------------
95-43 Buffalo Lake Cody 34038 D&C 16-29-41-20
North D&A: 279,700.00 8.50
D&C: 512,950.00 8.50 512,950.00 43,601.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-44 Leahurst PanCanadian 1995 Capital & Oper. Budget for No Costs No Costs
Glauconitic "B" 14-34-037-18 W4 Battery. FOR
Pool Unit INFORMATION ONLY
C$363,060 x .34% = SHPC
C$1,234.
- ------------------------------------------------------------------------------------------------------------------------------------
95-45 Mitsue Gilwood Chevron 440-4-416 Oil spill cleanup/reclamation .81470 440,000.00 3,617.00
Sand Unit No. 1 on 10-32-70-4 W5M
flow ROW
- ------------------------------------------------------------------------------------------------------------------------------------
95-46 Leedale (PRL Anadarko 4660 Recomplete at 6A-28-43-4-W5M 6.574 217,500.00 2,145.00
Resources
AFE #70654 15%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-47 Bigoray (PRL Excel Energy A-418 Servicing of tubing for 10-18- 9.2579 37,860.00 1,753.00
Resources 51-9 W5M
AFE #70664)
(50%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-48 Wincan et al Winshall 94-035-3 Install a plunger lift for 6.576 10,300.00 226.00
Minek (PRL Res. Minnehik 8-20-44-4 W5M
(33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-49 West Pembina Cody 34054 Drill Rock Creek test @ 4-9-49- 8.50 1,219,450.00 103,653.00
13 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-50 Cadotte Ulster C5-1653 Completion of Debolt gas zone @ 8.50 55,700.00 1,578.00
(Enerplus AFE # 12-17-88-19 W5M
??) (33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-51 Halkirk Upper Resman O&G HUMR95-01 CW-3337-95 (1) Install Artificial lift @ 0.49538 76,500.00 379.00
Mannville R 08-36-037-18W4
Unit
---------------------------------------------------------------------------------------------------------------------------
Halkirk Upper HUMR95-01 CR-3344- (2) Perform stim. @ 13-31-037- 0.49538 85,000.00 421.00
Mannville R 95 17W4
Unit
---------------------------------------------------------------------------------------------------------------------------
Halkirk Upper HUMR95-01 CR-3325- (3) Convert to injec. @ 16-31- 0.49538 129,842.00 643.00
Mannville R 95 037-17W4
Unit
---------------------------------------------------------------------------------------------------------------------------
Halkirk Upper HUMR95-01 (4) 1995 Oper. Forecast-Unit 0.49538 1,961,451.00 9,717.00
Mannville R wells
Unit
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 67
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 5
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-52 Rat Creek Cody 34008-S1 Cost overruns for D&C West 8.50 581,850.00
Pembina @ 11-17-50-12W5M
D&A: 269,100.00 49,457.00
D&C: 581,850.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-53 Ferrier South Cody 34058 Reenter wellbore @ 5-20-38-8- 8.50 563,600.00 47,906.00
W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-54 Spirit River Norcen 01-95 Repair failed water injection 0.4759 51,500.00 245.00
Triassic Unit line & reclaim spill site @ 4-
No. 1 78-6W6M
- ------------------------------------------------------------------------------------------------------------------------------------
95-55 Mitsue Gilwood Chevron 95-03 412-5-406 WIOB arrangement with Home Oil 0.8147 108,500.00 884.00
Sand Unit No. 1 10-14-69-3W5M non-Unit well
injection line installation and
tie-in
- ------------------------------------------------------------------------------------------------------------------------------------
95-55-S1 Mitsue Gilwood Chevron 95-03 412-5-448 Add'l expense to convert and .8147 30,300.00 247.00
Sand Unit No. 1 tie-in 10-14-69-3W5M non-Unit
well to an injector.
412-5-410 quoted in AFE 412-5-406, MB
95-03 revised to AFE 411-5-410
for tie-in expenditure remains
the same -- as shown above.
- ------------------------------------------------------------------------------------------------------------------------------------
95-56 Instow Unit Talisman Energy 7418 Replace heaters. .30570 13,865.00 42.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-57 Warburg Penmax 24007 Purchase and reprocess seismic 8.50 7,857.00 668.00
line @ Twp 49, Rge. 1-2 W5.
- ------------------------------------------------------------------------------------------------------------------------------------
95-58 Veteran North Cody 15003 Purchase AO168 at 2/1/95 8.50 56,457.00 4,799.00
Alberta land sale.
- ------------------------------------------------------------------------------------------------------------------------------------
95-59 West Pembina Cody 15004 Purchase Parcel AO282 at 2.50 64,779.00 1,619.00
02/1/95 Alberta land sale.
- ------------------------------------------------------------------------------------------------------------------------------------
95-60 Veteran North Cody 25006 Purchase four lines of seismic 8.50 27,174.00 2,310.00
to evaluate for February land
sale Twp 35, ????
- ------------------------------------------------------------------------------------------------------------------------------------
95-61 Mitsue Gilwood Chevron 95-05 Purchase non-Unit 12-8-74-5 .8147 180,000.00 1,466.00
Sand No. 1 W5M, convert the 12-8 and 10-
17-74-5 W5M wells to water
injec. service and reactivate
Unit 10-7, 10-8, 2-17, 3-18 and
13-17-74-5 wells.
- ------------------------------------------------------------------------------------------------------------------------------------
95-62 Mitsue Gilwood Chevron 95-06 412-5-447 Convert 4-34-69-3 W5M well to .8147 102,700.00 837.00
Sand No. 1 411-5-409 water injec. service
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 68
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 6
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-63 Spirit River Norcen 02-95 1995 Operating & Capital
Triassic Unit Forecasts .47593 910,000.00 4,331.00
#1 Capital Forecast
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Forecast .47593 2,445,000.00 11,636.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-64 Loon (Enerplus Ulster F5-1651 Tie in 1-8 @ 10-8-86-9-W5M 5.0420 58,400.00 442.00
#50085) 15%
- ------------------------------------------------------------------------------------------------------------------------------------
95-65 Ghost Pine Gulf Canada MB 5-95 1995 drilling program (Phase 1) 1.75046 1,875,901.00 32,836.00
drill 3 wells
55645 Drill @ 5-16-30-22 304,816.00
55648 Drill @ 3-18-30-22 302,379.00
55651 Drill @ 1-26-30-23 294,966.00
Add'l AFEs for tie
ins 517,000.00
Completion 420,000.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-66 Loon (Enerplus Ulster F5-1650 Tie-in 3-8 well at 10-8-86-9- 5.042 71,200.00 539.00
AFE 50075) 15% W5M (.756266)
- ------------------------------------------------------------------------------------------------------------------------------------
95-67 Ghost Pine Unit Gulf Canada 4-95 55610 Purchase, refurnish and install 1.75046 1,375,204.00 24,072.00
compressor at
5-34-30-22 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
Ghost Pine Unit Gulf Canada 9567a 55623 Tie-in at 12-27-30-22 1.75046 554,250.00 9,703.00
W4M 129,750.00
9567b 55624 Tie-in at 6-24-30-22
W4M 175,700.00
9567c 55625 Tie-in 6-26-30-22
W4M 175,700.00
9567d 55626 Tie-in at 5-34-30-22
W4M 73,100.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-68 Gilby Gas Plant Wascana Eng. 40883 Inspect and repair equip. 5.8700 62,700.00 3,681.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-69 Veteran Cody 351049 35011 D&C @ 34-8W4 (11c-34-34-08-W4) 4.2500 206,894.00
D&A: 124,080.00 8,793.00
D&C: 206,894.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-70 Workman Vista Int'l 9504 Workover at 2-30-01-31 W1M 1.2325 42,950.00 48.00
(Enerplus)
- ------------------------------------------------------------------------------------------------------------------------------------
95-71 Ghost Pine Gulf Canada 1-95 1995 Operating Exp. Forecast 1.75046 1,734,700.00 30,365.00
Plant
- ------------------------------------------------------------------------------------------------------------------------------------
95-72 Ghost Pine Unit Gulf Canada 1-95 1995 Operating Exp. Forecast 1.75046 3,299,900.00 57,764.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 69
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 7
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-73 Cadotte Ulster D4-1197 D&C water disposal well @ 6 9 8.5000 201,500.00 5,708.00
(Enerplus 87-18 W5M
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-74 Cadotte Ulster F5-1629 Install group separator w/water 2.36 127,000.00 2,998.00
(Enerplus filtration equip. at SWD
33.333%) facilities
- ------------------------------------------------------------------------------------------------------------------------------------
95-75 Cadotte Ulster C5-1669 Comp. the Debolt gas zone at 8.5000 55,700.00 1,578.00
(Enerplus 5-8-88-19W5M
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-76 Brazeau River Gulf Canada 95-01 1995 Operating Exp. Forecast .68080 2,664,000.00 18,137.00
Gas Unit #1
- ------------------------------------------------------------------------------------------------------------------------------------
95-77 Instow Unit Talisman 95-01 Replace/update injec. meters .305707 40,245.00 123.00
with flow meters
- ------------------------------------------------------------------------------------------------------------------------------------
95-78 Elmworth PRL Resources 2/2/95 memo to sell int. In ? 225,000.00 18,000.00
well 10-16-71-10 W6M
- ------------------------------------------------------------------------------------------------------------------------------------
95-79 Mitsue Gilwood Chevron 95-04 Install & cement a 101.6 mm .8147 90,300.00 736.00
Sand Unit No. 1 flush joint liner into 12-11-
72-4 well
- ------------------------------------------------------------------------------------------------------------------------------------
95-80 Ghost Pine Unit Gulf Canada 06-95 34354 (a) Line loop two seg. Of 6-18- 1.75046 3,092,800.00 54,138.00
31-21 W4M to 6-5-31-21 W4M and
34340 7-3-31-22 W4M to 15-14-31-22 W4.
---------------------------------------------------------------------------------------------------------------------------
Ghost Pine Unit Gulf Canada 06-95 34377 (b) Install 1800 HP compressor 1.75046 97,267.00 1,703.00
at 15-14-31-22 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-81 Pembina Mannville O&G 40055 Location costs @ 11-36-48-06-W5M 8.500 6,000.00 510.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-82 Pine Creek Cody Energy 35004 Drill @ 13-15-57-18W5
D&A: 816,900.00 6.3500
D&C: 1,354,732.00 6.3500 1,354,732.00 86,025.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-83 Cadotte Ulster RC5-1679 Comp. Debolt gas zone @ 102/6- 8.5000 51,800.00 1,468.00
(Enerplus 9-87-18W5M
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-84 Cadotte Ulster RC5-1695 Abandon Debolt zone and convert 8.5000 91,000.00 2,578.00
(Enerplus to SWD.
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-85 Nipisi Gas Amoco Canada 95-01 1995 Operating Budget .09147 5,606,500.00 5,129.00
Processing
Facilities
- ------------------------------------------------------------------------------------------------------------------------------------
95-86 Mitsue Gas Chevron 95-07 Reduce chase gas slug sizes and 0.8147
Conservation increase HCMF continuous gas
Plant sales
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 70
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 8
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-87 Spirit River Norcen 95-03 Install ESP's and acidize 3 0.47593 600,000.00 2,856.00
Unit No. 1 wells = 14-3, 14-4 & 16-4
- ------------------------------------------------------------------------------------------------------------------------------------
95-88 Wolf Creek Poco FW5020 Install heater/separator pkg at 4.2500 162,500.00 6,906.00
06-29-051-15-W5/O
- ------------------------------------------------------------------------------------------------------------------------------------
95-89 Wolf Creek Poco FW5019 Install pipeline to tie-in 06- 4.2500 140,550.00 5,973.00
29-051-15 W5/O
- ------------------------------------------------------------------------------------------------------------------------------------
95-90 Sturgeon Lake Ascot Energy 45003 Deepen well 2-6 meters 2.13 73,700.00 1,570.00
(Cody)
- ------------------------------------------------------------------------------------------------------------------------------------
95-91 Veteran Cody 35024 D&C cost for 11b-34-34-8W4
(Provost) D&A: 89,814.00
D&C: 214,634.00 4.250 214,634.00 9,122.00
NOTE: Location contingent on
11c-34 results 3D seismic
suggest 6-7 meters oil pay.
Directional from 11c-34 pad.
- ------------------------------------------------------------------------------------------------------------------------------------
95-92 Rat Creek Cody 35019 Equip well 6-20-50-12 W5M for 2.23 83,000.00 1,852.00
prod. from Rock Creek Zone &
build road
- ------------------------------------------------------------------------------------------------------------------------------------
95-93** Rat Creek Cody 35020 Equip well @ 11-17-50-12 W5M 8.50 61,100.00 5,194.00
for prod.
- ------------------------------------------------------------------------------------------------------------------------------------
95-94 Gilby Gas Plant Wascana 95-01 41082 Installation of an inlet 5.8700 1,645,119.00 96,568.00
compressor and process modif.
To the 10-10-41-03 W5 gas plant
- ------------------------------------------------------------------------------------------------------------------------------------
95-95 Spirit River Norcen 95-04 45231-1 Suppl. to Ballot 94-04. Over .47593 239,319.00 1,139.00
Triassic Unit 57251 expenditures on install. Of
#1 electrical pumps at 04-34 & 16-
34-77-06 and wells 14-03, 14-04
& 16-04-78-06 W6 as ind. Ballot
95-03 (CHARGE COSTS TO 94-281)
- ------------------------------------------------------------------------------------------------------------------------------------
95-96 Sierra West Cody 25003 Process 3-D seismic Blks F&K 4.250 26,000.00 1,105.00
94-I-11
- ------------------------------------------------------------------------------------------------------------------------------------
95-97 Sierra Cody 25004 To buy data over western 4.250 11,720.00 498.00
Southwest portion of Cody land where 3D
cover stops - Blk. K and L 94-
1-11.
- ------------------------------------------------------------------------------------------------------------------------------------
95-98 Instow Unit Talisman Energy 7686 For Information Only. Purchase 0.3057
H2S Alarm System for water
stations and batteries.
(C$7,840.00)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 71
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 9
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-99 Veteran Area Cody 35011-R Drill @ 11c 34 34 8W4
D&A: 158,520.00 4.250
(95-69) D&C: 241,334.00 4.250 241,334.00 10,257.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-100 Veteran Cody 35025 D&C cost for 12a-34-34-8W4
(Provost) D&A: 124,820.00 4.250
D&C: 214,834.00 4.250 214,834.00 9,122.00
NOTE: Location contingent on
11c-34 results 3D seismic
suggests 6-7 meters oil pay.
Directional well from 11c-34
pad.
- ------------------------------------------------------------------------------------------------------------------------------------
95-101 Veteran Cody 35022 D&C cost for 7b-34-34-8W4
(Provost) D&A: 124,080.00 4.250
D&C: 213,894.00 4.250 213,894.00 9,090.00
NOTE: Follow-up to 6a-34 Dina
oilwell
- ------------------------------------------------------------------------------------------------------------------------------------
95-102 Veteran Cody 35023 D&C cost for 11a-34-34-8W4
(Provost) D&A: 124,820.00 4.250
D&C: 214,834.00 4.250 214,834.00 9,122.00
NOTE: Location contingent on
11c-34 results
- ------------------------------------------------------------------------------------------------------------------------------------
95-103 Ghost Pine Unit Gulf Canada 02-95 1993 and 1993 Audit 1.7504
C$400/man/day
- ------------------------------------------------------------------------------------------------------------------------------------
95-104 Ghost Pine Gulf Canada 02-95 1993 and 1993 Audit 1.7504
Plant C$400/man/day
- ------------------------------------------------------------------------------------------------------------------------------------
95-105 Veteran (North) Cody 25015 Purchase two short lines of 8.50 5,000.00 425.00
seismic to evaluate for
February land sale. (Twp. 35,
Rg 8WM)
- ------------------------------------------------------------------------------------------------------------------------------------
95-106 West Pembina Cody 15013 To acq. Parcel A0595 at the 8.50 58,724.00 4,822.00
3/15/95 Land sale 48-13 W5M,
Section 16
- ------------------------------------------------------------------------------------------------------------------------------------
95-107 Ferrier Cody 15010 To acq. Parcel A0568 at 3/15/95 8.50 56,724.00 4,822.00
Land sale 38-8 W5M, Section 35
(below Cardium)
- ------------------------------------------------------------------------------------------------------------------------------------
95-108 Ferrier Cody 15009 To acq. Parcel A0567 at 3/15/95 8.50 56,724.00 4,822.00
Land sale 38-8 W5M, Section 34
below Cardium
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 72
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 10
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-109 Ferrier Cody 15007 To acq. Parcel A0565 at 3/15/95 8.50 93,918.00 7,983.00
Land sale 38-8 W5M, Section 15
- ------------------------------------------------------------------------------------------------------------------------------------
95-110 Ferrier Cody 15008 To acq. Parcel A0566 at 3/15/95 8.50 66,918.00 5,688.00
Land sale 38-8W5M Section 22
(N/2 all P7NG, S/2 below
Mammville
- ------------------------------------------------------------------------------------------------------------------------------------
95-111 Gulah Cody 25019 Purchase ~19.3 km of seismic 8.50 24,100.00 2,049.00
along Debolt A and 2 lines
- ------------------------------------------------------------------------------------------------------------------------------------
95-112 Veteran Cody 30084-S1 Add'l costs at 6a 34-34-8 4.25 152,500.00 6,481.00
W4 (94-113)
- ------------------------------------------------------------------------------------------------------------------------------------
95-113 Nipisi Gilwood Amoco 95-05 Remedial cement squeeze of .09147 58,400.00 53.00
Unit No. 1 NGU#225
- ------------------------------------------------------------------------------------------------------------------------------------
95-114 Instow Unit Talisman Energy 7786 Replace and upgrade top drive .30570 11,840.00 36.00
(Instow Unit 13-34)
FOR INFORMATION ONLY.
- ------------------------------------------------------------------------------------------------------------------------------------
95-115 Nipisi Gilwood Amoco 95-04 Drill, complete and tie-in 0.09147
Unit No. 1 three wells: 04-03-079-08 W5 985,665.00 902.00
Drill: 590,665.00
54042600 Complete: 689,240.00
54042601 Tie-in: 296,425.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-115A Nipisi Gilwood Amoco 95-04 54042602 01-04-079-08 W5 0.09147 977,565.00 894.00
Unit No. 1 54042603 Drill: 567,860.00
Complete: 667,340.00
Tie-in: 310,225.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-115B Nipisi Gilwood Amoco 95-04 54042604 01-20-079-08 W5 0.09147 1,035,115.00 947.00
Unit No. 1 54042605 Drill: 485,920.00
Complete: 631,150.00
Tie-in: 403,965.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-116 Spirit River Norcen 95-06 57271 Purchase and install pipe liner 0.47593 182,000.00 866.00
Triassic Unit
No. 1
- ------------------------------------------------------------------------------------------------------------------------------------
95-117 Ghost Pine Unit Gulf Canada 07-95 55630 Tie-in 11-29-30-22 W4 to 1.75046 186,810.00 3,270.00
gathering system
- ------------------------------------------------------------------------------------------------------------------------------------
95-118 Pembina Mannville O&G 40055 Location costs at 8.50 6,000.00 510.00
(Lindale) 11-36-48-06-W5M
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 73
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 11
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-119 Brazeau River Gulf Canada 04-95 Install a coiled tubing string 0.6808 60,000.00 408.00
Plant in Plant water injection well
at 10-09-46-14 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-120 Two Creek Summit CW950004 Clean well to plug back depth 4.250 37,000.00 1,573.00
with nitrogen & coiled tubing
at 7-22-83-16-W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-121 Two Creek Summit CW950009 Clean well to plug back depth 4.250 37,000.00 1,573.00
with nitrogen & coiled tubing
at 16-15-63-16 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-122 Mitsue Gilwood Chevron Canada 95-08 412-5-451 Install bridge and access to .81479 127,200.00 1,036.00
Sand Unit No. 1 10-7-71-4 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-123 Gilby Wascana Energy 1993-94 audit of Gilby 10-10
and 10-10V-041-03 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-124 Nipisi Gilwood Amoco 95-06 54042800 Shooting/processing of 29km2 of .09147 1,107,500.00 1,013.00
Unit No. 1 3D seismic
- ------------------------------------------------------------------------------------------------------------------------------------
95-125 Chip Lake Lorrac (Cody) 15015 Parcel B0111 acq. At 4/26/95 2.83 20,380.00 577.00
Alberta Land Sale at 54-10W5,
22, 23, 28, 27 & Sec. 26.
- ------------------------------------------------------------------------------------------------------------------------------------
95-126 Seal Cody 25023 Reprocess existing lines 40 and 8.50 4,500.00 383.00
44X at 82-14W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-127 Sabbath Cody 24024 Reprocess 42km of existing data 8.50 8,000.00 680.00
at T105,R12W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-128 Gilby Viking Gulf Canada 95-04 Owners to purchase 6-9-41-3W5 0.611 40,000.00 244.00
Unit No. 1 from Gulf Canada
- ------------------------------------------------------------------------------------------------------------------------------------
95-129 Nipisi Gilwood Amoco 95-07 Fracture stimulate 02-25-80-9 .09147 313,080.00 286.00
Unit No. 1 W5, 04-15-81-8 W5, 10-15-80-8
W5 and 12-17-80-7 W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-130 Mitsue Gilwood Chevron Canada 95-09 Commence an environmental .81479 280,100.00 2,282.00
Sand Unit #1 enhancement program to
eliminate liq. Discharges to
active flare pits in accordance
with ERCB IL 94-6.
- ------------------------------------------------------------------------------------------------------------------------------------
95-131 Pine Creek Cody 15016 Acq. Parcel #A0125 @ May Land 5.95 28,119.00 1,673.00
Sale 57-18-W5M: S/2 29
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 74
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 12
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-132 Ghost Pine Unit Gulf Canada 33-94 Phase 7 1994 drilling program & 1.75046 1,769,895.00 30,981.00
tie-in costs for 3 wells.
3-9-30-21 W4M
55611 Drill: 311,075.00
55612* Complete:
55613 Tie-In: 80,825.00
Completion costs 420,000.00
----------------------------------------------------------------------------------------------------------
55614 3-16-30-21 W4M 1.75046
55615* Drill: 311,075.00
55616 Complete:
Tie-in: 173,175.00
----------------------------------------------------------------------------------------------------------
55617 3-21-30-21- W4M 1.75046
55618 Drill: 300,570.00
55619 Complete:
Tie-in: 173,175.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-133 Pine Creek Cody 35004-S1 Cost overruns at 13-15-57-18 6.3500 243,500.00 15,462.00
W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-134 Pine Creek Cody 25028 Reprocess E/W seismic line at 6.3500 2,259.00 143.00
57-18 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-135 Nipisi Gas Amoco 95-02 54043000 Plant modifications necessary .09147 607,200.00 555.00
Processing to produce sales specification
Plant gas & complete a optim. project
- ------------------------------------------------------------------------------------------------------------------------------------
95-136 Ghost Pine Unit Gulf Canada 08-95 Phase 2 - 1995 Drilling Program 1.75046 1,596,711.00
11-08-30-19-W4M
55675 Drill: 292,313.00 13,964.00
55676 Complete:*
55677 Tie-in: 85,400.00
*Completion costs 420,000.00
- ------------------------------------------------------------------------------------------------------------------------------------
55678 3-16-30-22-W4M 1.75046
55679 Drill: 305,000.00 6,298.00
55680 Complete:*
Tie-in: 54,800.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 75
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 13
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
55672 10 33 30 22 W4M 1.75046
55673 Drill: 322,058.00 7,044.00
55674 Complete:*
Tie-in: 80,400.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-137 Instow Unit Talisman 95-02 7899 Restore injectivity to .305707 36,050.00 110.00
9-34-9-18W3
- ------------------------------------------------------------------------------------------------------------------------------------
95-138 Pine Creek Cody 35043 Perforate & eval. a lower zone 6.3500 89,600.00 5,690.00
at 13-15-57-18 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-139 Gilby Gas Plant Wascana 95-05 41282 Compressor capital equalization 5.8700 Credit 10,256.00
@ 10-10-41-03-W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-140 Eta Lake Cody 35010 Frac existing cased well at 8.500 325,000.00 27,625.00
16-19-50-11W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-141 Cadotte (Excel Ulster D4-1467 Drill, complete and flow test 8.500 239,200.00 6,777.00
AFE # A-438 R1 at 2-26-88-20-W5M
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-142 Cadotte (Excel Ulster E4-1457 Drill & evaluate Debolt "C" 8.500 227,900.00 6,457.00
AFE #A-440 R1 zone at 5-36-87-19 W5
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-143 Cadotte (Excel Ulster E4-1464 Drill & evaluate Debolt "A" 8.500 227,900.00 6,457.00
AFE A-441 R1 zone at 11-31-87-19 W5
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-144 Cadotte (Excel Ulster E4-1465 Drill and evaluate Shunda zone 8.500 227,900.00 6,457.00
AFE A-442 R1 at 7-14-88-19 W5
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-145 Cadotte (Excel Ulster F4-1535 Pipeline tie-in and install 8.500 262,600.00 7,440.00
AFE A-482 separator at 12-17-87-17 W5M
33.333%)
- ------------------------------------------------------------------------------------------------------------------------------------
95-146 Nipisi Gilwood Amoco 95-08 Drill, complete, tie-in and 0.09147 1,012,815.00 927.00
Unit No. 1 equip 07-04-079-08-W5
54042602 Drill: 567,860.00
54042603 Complete: 702,590.00
Tie-in: 310,225.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-147 Ghost Pine Unit Gulf Canada 09-95 Compressor relocation from 1.75046 722,210.00 12,703.00
No. 1 55682 Station 3 to Station 1 Line
55686 Loop 11-21 to 16-27039022W4 5,321.00
55685 Middle Glauconite Comletion at 3,128.00
55684 2-24-29-22 W4M Line Loop2-16 to 1,901.00
14-17-32-20-W4M 2,353.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 76
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 14
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-148 Mitsue Gilwood Chevron 95-10 440-5-400 Buy down of several Alberta 0.8147 100,000.00 815.00
Sand Unit No. 1 Power electric power contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
95-149 Spirit River Norcen 95-09 Audit for revenue and 0.47593 13,500.00 64.00
Triassic Unit expenditures for 1993 and 1994
#1
- ------------------------------------------------------------------------------------------------------------------------------------
95-150 Chinchaga Cody 15019 Acquire parcel B0182 at 5/24 4.25 710,030.00 1,282.00
sale
- ------------------------------------------------------------------------------------------------------------------------------------
95-151 Nipisi Gilwood Amoco 95-09 Zonal isolationof NGU #190 .091479 51,900.00 47.00
Unit No. 1 (04-34-079-08 W5)
- ------------------------------------------------------------------------------------------------------------------------------------
95-152 Two Creek Summit Res. CF940033/1 Contract labor cost and longer 4.25 39,000.00 1,658.00
construction time due to
inclement weather
- ------------------------------------------------------------------------------------------------------------------------------------
95-153 Two Creek Summit Res. CF940034/1 4.25 31,000.00 1,318.00
- ------------------------------------------------------------------------------------------------------------------------------------
95.154 Two Creek Summit Res. CF940035/1 4.25 66,000.00 2,805.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-155 Two Creek Summit Res. CF940036/1 Contract labor cost and longer 4.25 49,000.00 2,083.00
construction time due to
inclement weather
- ------------------------------------------------------------------------------------------------------------------------------------
95-156 Wolf Creek Poco MW5014 Construct access road to 4.25 83,000.00 3,528.00
wellsite at
00/06-29-051-15 W5M/0
- ------------------------------------------------------------------------------------------------------------------------------------
95-157 Kaybob (Cody) Can. Hunter 300794S1 To supplement the drill of 6.38 84,241.00 5,375.00
9-7-65-16 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-158 Pine C(Enerplus) Mark Res. 30123-S2 Drill, evaluate & complete 5.95 302,450.00 17,996.00
AD94M002 supplement
- ------------------------------------------------------------------------------------------------------------------------------------
95-159 Pine C(Enerplus) Mark Res. 40634-S2 Drill, evaluate & complete 5.95 234,200.00 13,935.00
AD94MO31 supplement
- ------------------------------------------------------------------------------------------------------------------------------------
95-160 Mitsue Gilwood Chevron 95-11 412-5-400 Instrument upgrade at Mitsue 0.8147 118,500.00 965.00
Sand Unit No. 1 fresh water intake
- ------------------------------------------------------------------------------------------------------------------------------------
95-161 Spirit River Norcen 95-11 Acidize 16-8-78-6W6 0.4759 50,000.00 238.00
Triassic Unit
#1
- ------------------------------------------------------------------------------------------------------------------------------------
95-162 Spirit River Norcen 95-10 Purchase of 3-phase satellite 0.4759 50,000.00 238.00
Triassic Unit skid for testing the high rate
#1 wells.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 77
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 15
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-163 Spirit River Norcen Plant turnaround prev. reported 0.4759
Triassic Unit in 1995 oper. forecast Total
#1 cost C$ 50,000.00 - SHPC
C$1,142.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-164 Grand Forks Morrison Petrol. 9521070 Drill, case & complete 5.39 4,842.00 261.00
East (Enerplus) 5-4-12-13-W4
- ------------------------------------------------------------------------------------------------------------------------------------
95-165 Grand Forks Morrison Petrol. 9521071 Drill, case & complete 5.39 4,842.00 261.00
East (Enerplus) 02/4-4-12-13-W4
- ------------------------------------------------------------------------------------------------------------------------------------
95-166 Brazeau River Gulf Canada 02-95 Custom compression agreement
Gas Unit No. 1 with Tekerra Gas, Husky & Encal
- ------------------------------------------------------------------------------------------------------------------------------------
95-167 Leahurst PanCanadian 1-95 041G207 Install a larger pumpjack and .030647 35,228.00 108.00
Glauconitic "B" high strength rods at
Pool Unit 14-34-37-18 W4
Marion Lake
- ------------------------------------------------------------------------------------------------------------------------------------
95-168 Ghost Pine Gas Gulf Canada 04-95 55702 Install a lube oil coalescing 1.75046 119,500.00 2,092.00
Plant filter/separator
- ------------------------------------------------------------------------------------------------------------------------------------
95-169 Enchant Magna Carta Oil 95501 Run bottom hole pump to 8.5 35,072.00 2,981.00
enchance production at
11A-33-14-17 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-170 Buck Lake Enerplus 300895 Install Alder Flats crude oil 5.22
line from 7-34 & 10-34 to
14-31-45-6-W5M (FOR
INFORMATION ONLY) C$1,638
SHPC C$85
- ------------------------------------------------------------------------------------------------------------------------------------
95-171 Chinchaga Cody 35047 Drill, eval, & complete well in 8.50 579,050.00 49,219.00
the Bluesky formation at
12-30-96-07-W6
D&C: 579,050.00
D&A: 414,550.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-172 Ghost Pine Unit Gulf Canada 11-95 55703 Drill at 14-20-30-22 W4M 1.75046 100,540.00 1,760.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-173 Ghost Pine Unit Gulf Canada 10-95 55650 Tie-in 03-18-30-22 W4M 1.75046 293,500.00 5,138.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-174 Instow Unit Talisman Energy 95-03 8344 Upgrade alarm system. FOR .305707
INFORMATION ONLY. C$37,390 SHPC
C$114.
- ------------------------------------------------------------------------------------------------------------------------------------
95-175 Nipisi Gilwood Amoco 95-10 54043400 Convert well #251 from shut-in .091479 147,500.00 135.00
Unit No. 1 producer to produced water
injector
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 78
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 16
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-176 Chinchaga Cody Energy 35048 D&C at 12 31 96 07 W6 8.50 561,950.00
D&C: 561,950.00 47,767.00
D&A: 397,450.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-177 Chinchaga Cody Energy 35049 D&C at 13-20-96-07-W6M 8.50 564,850.00
D&C: 584,850.00 48,012.00
D&A: 400,350.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-178 Veteran West Cody Energy 25025 Purchase 4 lines of seismic 8.50 36,400.00 2,941.00
trade data to eval. June's
landsale postings.
- ------------------------------------------------------------------------------------------------------------------------------------
95-179 Wolf Creek Cody Energy 15020 Construct access road to 4.25 83,000.00 3,528.00
6-29-51-15W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-180 Veteran Cody Energy 45005 Replace BH tubing pump to rod 4.25 25,550.00 1,086.00
insert pump @ 6A-34-34-8-W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-181 Sturgeon Lake Cody Energy 35040 Install submer. pump to incre. 2.125 136,902.00 2,909.00
prod. @ 2-23-66-22W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-182 Instow Talisman Energy 95-04 Drill, complete & tie-in two .3057 807,000.00 2,467.00
8410 wells 4-07-10-18 W3M &
8411 12-25-09-18 W3M
8412 Drill: 200,000.00
8413 Complete: 289,400.00
8414 Tie-in: 116,045.00
8415 12-25-09-18 W3M
Drill: 200,000.00
Complete: 289,000.00
Tie-in: 112,740.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-183 Enchant Magna Carta Oils 95502 Replace BH pump and install 8.5 35,752.00 3,039.00
temp. battery @ 11-33-14-17 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-184 Nipisi Gilwood Amoco Canada 95-11 54043600 Purchase & install booster pump .091479 241,990.00 2,214.00
Unit No. 1 @ 12-11-080-08W5 & also to
serve 04-10-081-08W5 &
10-10-081-08W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-185 Sierra South Cody 25008 Shoot 9 km of seismic at Blocks 4.25 59,376.00 2,523.00
K&L /094-I-11
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 79
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 17
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-186 Canada SHPC 95-186 Canadian Reserve Report 100 200,000.00 200,000.00
McDaniel & Assoc. for upcoming
sale.
- ------------------------------------------------------------------------------------------------------------------------------------
95-187 Buck Lake East Mannville (Cody) 15006 Acq. Parcel for E/2 28-46-5 W5M 1.96 27,435.00 538.00
@ 2/1/95 Land Sale
- ------------------------------------------------------------------------------------------------------------------------------------
95-188 Instow Unit Talisman Energy 95-05 8341 Replace #3 water station piping .30570 36,312.00 111.00
on dischg. side of inject
pumps.
- ------------------------------------------------------------------------------------------------------------------------------------
95-189 Instow Unit Talisman Energy 8482 Replace heater @ 15-33-9-18W3 .30570 10,475.00 32.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-190 Ghost Pine Unit Gulf Canada 55724 1995 Drilling Program (Phase I) 1.75046
overexpenditure @ 05-16-30-22
W4M FOR INFORMATION ONLY.
C$45,000 @ 1.75046 SHPC C$788.
- ------------------------------------------------------------------------------------------------------------------------------------
95-191 Halkirk Upper Resman O&G HUMR95-02 CD-3404-96 Drill, complete & equip water .49538 354,500.00
Mannville 'R' injec. well @
Pool 08-06-038-17W4. 1,756.00
D&C: 354,500.00
D&A: 149,500.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-192 Halkirk Upper Resman O&G HUMR95-02 CD-3405-96 Drill, complete & equip water .49538 344,000.00
Mannville 'R' injec. well @ 1,704.00
Pool 3B-31-037-17W4.
D&C: 344,000.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-193 Chip Lake Cody (Lorrac) 25013 Acq. 7.5 km of test seismic 2.83 48,329.00 1,368.00
line @ 54-10 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-194 Chip Lake, AB Cody (Lorrac) 25032 Reshoot portion of Line #CH106 2.83 23,110.00 654.00
@ 054-10 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-195 Bl(SHPCr#94-216) Cody 34011-S1 Supple. costs to drill & 8.50 123,800.00 10,523.00
evaluate 9C-12-041-04 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-196 Pin(seeeSHPC #94-Cody 34064-S1 Overexpenditures for D&C @ 2.975 556,700.00 16,562.00
145) (Mark Res.) AS94MO73 2-21-57-18W5
- ------------------------------------------------------------------------------------------------------------------------------------
95-197 Sturgeon Lake Cody 45003-S Acid job which was not incl. in 2.125 57,200.00 1,216.00
(Ascot Energy) 95101S orginal scope of project @
2-23-68-22 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 80
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 18
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-198 Ghost Pine Unit Gulf Canada 12 95 Drill, complete & tie in @ 14 1.75046 568,258.00
55730 17-30-22 W4M 9,947.00
55731 D&C: 435,258.00
55732 D&A:
Tie-in: 133,000.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-199 Rat Creek Cody Energy 44002 Equip well 1-25-50-13 W5M for 8.50 61,100.00 5,194.00
gas production
- ------------------------------------------------------------------------------------------------------------------------------------
95-200 Rat Creek Cody Energy 35021 Equip well 16-19-50-12 W5M for 8.50 61,100.00 5,185.00
gas production
- ------------------------------------------------------------------------------------------------------------------------------------
95-201 Instow Unit Talisman Energy 8511 Put in 5 PCP drive guards @ .3057 6,539.00 20.00
1-7-10-18W3, 11-7-10-18W3,
3-4-10-18W3, 13-34-9-18W3 &
15-33-9-18W3. FOR INFORMATION
ONLY.
- ------------------------------------------------------------------------------------------------------------------------------------
95-202 Nipisi Gilwood Amoco 95-12 54043700 D&C and equip at 04-20-079-08 .09147 977,565.00 894.00
Unit No. 1 54043701 W5
D&C: $667,340
Tie-in: $310,225
- ------------------------------------------------------------------------------------------------------------------------------------
95-203 Cadotte Ulster P5-1880 10-34-86-18W5 gas plant - 2.42832 60,000.00 1,457.00
turnaround
- ------------------------------------------------------------------------------------------------------------------------------------
95-204 Pembina-Musreau Pembina Res. A395418 Abandon @ 06-04-065-05 W6M 3.750 101,788.00 3,817.00
Lake
- ------------------------------------------------------------------------------------------------------------------------------------
95-205 Gilby Wascana Energy 95-07 41410 1995 Gilby 10-10-41-3 W5M Gas 5.870 63,600.00 3,733.00
Plant turnaround
- ------------------------------------------------------------------------------------------------------------------------------------
95-206 Mitsue Gilwood Chevron 95-12 440-5-418 Permanent abandonment and .81470 1,287,125.00 1,048.00
Sand Unit No. 1 440-6-400 reclamation of 39 unit wells.
- ------------------------------------------------------------------------------------------------------------------------------------
95-207 Mitsue Gilwood Chevron 95-13 440-5-423 Repair casing @ 4-5-72-4 W5M .81470 100,400.00 818.00
Sand Unit No. 1
- ------------------------------------------------------------------------------------------------------------------------------------
95-208 Nipisi Gilwood Amoco 95-13 54043800 Purchase & install pump @ Water .09147 718,700.00 657.00
Unit No. 1 Plant #3
- ------------------------------------------------------------------------------------------------------------------------------------
95-209 Gilby Gas Plant Wascana 95-06 Audit of Chart Reading 5.870
Services: 7,459.00 438.00
1986-1987 Operations:
- ------------------------------------------------------------------------------------------------------------------------------------
95-209 Gilby Gas Plant Wascana 95-06 1988-1989 Operations: 10,662.00 626.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-210 Ghost Pine Unit Gulf Canada 14-95 55740 P&A well 07-21-31-22 W4M 1.75046 78,500.00 1,374.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-211 Deleted
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 81
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 19
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-212 Pembina Cody Energy 32035 Drill to Bannff frm. & evaluate 8.50 504,355.00 42,868.00
(Mannville O&G) @ 12-36-48-06 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-213 Nipisi Gilwood Amoco 95-15 54044000 Purchase of Cal Ven leased .091479 140,000.00 128.00
Unit No. 1 pipelines .
- ------------------------------------------------------------------------------------------------------------------------------------
95-214 Ghost Pine Unit Gulf Canada 16-95 55788 Drill, complete & tie-in three 1.75046 1,839,270.00 32,196.00
55789 wells :
55790 09-04-30-20 W4M
55791 15-33-29-20 W4M
55792 01-16-30-20 W4M
55793
55794
55795
55796
- ------------------------------------------------------------------------------------------------------------------------------------
95-215 Veteran Cody Energy 45017 Purchase & install screw pump 4.25 30,000.00 1,275.00
(Provost) to increase production @ 12d-
36-034-08 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-216 Veteran Cody Energy 45016 Purchase & install screw pump 4.25 33,000.00 1,403.00
(Provost) to increase production @ 05d-
36-034-08 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-217 Veteram Cody Energy 45015 Purchase & install screw pump 4.25 15,000.00 638.00
(Provost) to increase production @ 04C-
36-034-08 W4M
- ------------------------------------------------------------------------------------------------------------------------------------
95-218 Mitsue Gilwood Chevron 95-14 440-5-425 Repair tubing leak @ 9-15-71-4 .81470 97,500.00 794.00
Sand Unit No. 1 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-219 Ghost Pine Unit Gulf Canada Orig. 55748 Over expenditure to complete 1.75046 50,000.00 875.00
09-95 well 02-24-29-22 W4M - FOR
INFORMATION ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
95-220 Rat Creek Cody Energy 45010 Restim. Rock Creek zone @ 16- 8.50 265,200.00 22,542.00
19-050-12 W5M
- ------------------------------------------------------------------------------------------------------------------------------------
95-221 Nipisi Gilwood Amoco 95-14 54043900 Construct water injec. P/L with .091479 1,252,100.00 1,145.00
Unit No. 1 liner
- ------------------------------------------------------------------------------------------------------------------------------------
95-222 Ghost Pine Unit Gulf Canada 13-95 55745 Complete well @ 12-36-30-23 1.75046 304,210.00 5,325.00
55741 W4M 758.00
55743 Comp. & Tie-in @ 10-15-30-23
W4M 1,738.00
2,829.00
- ------------------------------------------------------------------------------------------------------------------------------------
95-223 Halkirk Upper Resman O&G HUM95-03 CW-3409-96 Installation of artificial lift 0.49538 79,000.00 392.00
Mannville "R" equip. on 13-30-037-17W4.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 82
1995 AFE LIST - SPRUCE HILLS PRODUCTION COMPANY, INC. PAGE 20
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
SHPC Total Costs SHPC Costs
AFE # AREA Operator MB # AFE # Description SHPC % C$ C$
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
95-224 Pine Creek Cody Energy 35044 Drill & complete costs for 06 1,300,200.00
22-057-18 W5M 6.35
D&A: 776,350.00 82,563.00
D&C: 1,300,200.00
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total 119,014,465.8 2,504,069.01
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 1
EXHIBIT 2.2
ESCROW AGREEMENT
(EARNEST MONEY)
THIS ESCROW AGREEMENT (as the same may from time to time be
amended or modified and including any and all written instructions given to
"Escrow Agent" (hereinafter defined) pursuant hereto, this "Escrow Agreement")
is made and entered into as of October 31, 1995 by and among Southern Mineral
Corporation, a Nevada Corporation ("Buyer"), and Stone & Webster Incorporated,
a Delaware corporation, and Stone & Webster Oil Company, Inc., a Texas
corporation ("Seller", and together with Buyer, sometimes referred to
collectively as the "Other Parties"), and TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, a national banking association with its principal offices in
Houston, Harris County, Texas (the "Bank").
W I T N E S S E T H :
WHEREAS, in connection with certain matters described in
Exhibit A attached hereto, Seller has requested that Buyer deposit, and Buyer
has agreed to deposit, a certain cash sum in an escrow fund to be maintained
pursuant to this Escrow Agreement; and
WHEREAS, Buyer and Seller have requested Bank to act in the
capacity of escrow agent under this Escrow Agreement, and Bank, subject to the
terms and provisions hereof, has agreed so to do;
NOW, THEREFORE, in consideration of the premises and mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:
1. Appointment of Escrow Agent. Each of Buyer and
Seller hereby appoints the Bank as the escrow agent under this Escrow Agreement
(the Bank in such capacity, the "Escrow Agent"), and Escrow Agent hereby
accepts such appointment.
2. Deposit. Upon execution of this Escrow Agreement,
Buyer will deliver to the Escrow Agent the sum of ONE MILLION AND NO/100
DOLLARS ($1,000,000.00) (as said amount may increase or decrease as a result of
the investment and reinvestment thereof and as said amount may be reduced by
charges thereto and payments and setoffs therefrom to compensate or reimburse
Escrow Agent for amounts owing to it pursuant hereto, the "Deposit") to be held
by Escrow Agent in accordance with the terms hereof. Subject to and in
accordance with the terms and conditions hereof, Escrow Agent agrees that it
shall receive, hold in escrow, invest and reinvest and release or distribute
the Deposit. It is hereby expressly stipulated and agreed that all interest
and other earnings on the Deposit shall become a part of the Deposit for all
purposes, and that all losses resulting from the investment or reinvestment
thereof from time to time and all amounts charged thereto to compensate or
reimburse the Escrow Agent from time
<PAGE> 2
to time for amounts owing to it hereunder shall from the time of such loss
or charge no longer constitute part of the Deposit.
3. Investment of the Deposit. Escrow Agent shall invest
and reinvest the Deposit in the manner determined by Escrow Agent, unless
otherwise instructed in writing by the Other Parties. Such written
instructions, if any, referred to in the foregoing sentence shall specify the
type and identity of the investments to be purchased and/or sold and shall also
include the name of the broker-dealer, if any, which Other Parties direct the
Escrow Agent to use in respect of such investment, any particular settlement
procedures required, if any (which settlement procedures shall be consistent
with industry standards and practices), and such other information as Escrow
Agent may require. Escrow Agent shall not be liable for failure to invest or
reinvest funds absent sufficient written direction. Unless Escrow Agent is
otherwise directed in such written instructions, Escrow Agent may use a
broker-dealer of its own selection, including a broker-dealer owned by or
affiliated with Escrow Agent or any of its affiliates. It is expressly agreed
and understood by the parties hereto that Escrow Agent shall not in any way
whatsoever be liable for losses on any investments, including, but not limited
to, losses from market risks due to premature liquidation or resulting from
other actions taken pursuant to this Escrow Agreement.
Receipt, investment and reinvestment of the Deposit shall be
confirmed by Escrow Agent as soon as practicable by account statement, and any
discrepancies in any such account statement shall be noted by the Other Parties
to Escrow Agent within 30 calendar days after receipt thereof. Failure to
inform Escrow Agent in writing of any discrepancies in any such account
statement within said 30-day period shall conclusively be deemed confirmation
of such account statement in its entirety. For purposes of this paragraph, (a)
each account statement shall be deemed to have been received by the party to
whom directed on the earlier to occur of (i) actual receipt thereof and (ii)
three "Business Days" (hereinafter defined) after the deposit thereof in the
United States Mail, postage prepaid and (b) the term "Business Day" shall mean
any day of the year, excluding Saturday, Sunday and any other day on which
national banks are required or authorized to close in Houston, Texas.
4. Disbursement of Deposit. Escrow Agent is hereby
authorized to make disbursements of the Deposit only as follows:
(a) To Sellers pursuant to the Closing of the Purchase
and Sale Agreement identified in Exhibit A attached hereto.
(b) To Sellers in the event of termination by Sellers
under Section 12.a of the Purchase and Sale Agreement.
2
<PAGE> 3
(c) To Sellers, upon failure to Buyer to pay or tender
the Sales Price at the Closing, upon certification of Buyer's such
default pursuant to Section 18 of the Purchase and Sale Agreement.
(d) Otherwise to Buyer.
(e) The foregoing disbursements shall be made upon
receipt of written instructions signed by both Buyer and Seller and
otherwise in form and substance satisfactory to Escrow Agent, in
accordance with such instruction.
(f) As permitted by this Escrow Agreement, to Escrow
Agent.
(g) Into the registry of the court in accordance with
Sections 8 or 15 hereof.
Notwithstanding anything contained herein or elsewhere to the contrary, the
Other Parties hereby expressly agree that the Escrow Agent shall be entitled to
charge the Deposit for, and pay and set-off from the Deposit, any and all
amounts, if any, then owing to it pursuant to this Escrow Agreement prior to
the disbursement of the Deposit in accordance with clauses (a) through (g)
(both inclusive) of this Section 4.
5. Tax Matters. Each of the Other Parties shall provide
Escrow Agent with its taxpayer identification number documented by an
appropriate Form W 8 or Form W 9 upon execution of this Escrow Agreement.
Failure so to provide such forms may prevent or delay disbursements from the
Deposit and may also result in the assessment of a penalty and Escrow Agent's
being required to withhold tax on any interest or other income earned on the
Deposit. Any payments of income shall be subject to applicable withholding
regulations then in force in the United States or any other jurisdiction, as
applicable.
6. Scope of Undertaking. Escrow Agent's duties and
responsibilities in connection with this Escrow Agreement shall be purely
ministerial and shall be limited to those expressly set forth in this Escrow
Agreement. Escrow Agent is not a principal, participant or beneficiary in any
transaction underlying this Escrow Agreement and shall have no duty to inquire
beyond the terms and provisions hereof. Escrow Agent shall have no
responsibility or obligation of any kind in connection with this Escrow
Agreement or the Deposit and shall not be required to deliver the Deposit or
any part thereof or take any action with respect to any matters that might
arise in connection therewith, other than to receive, hold, invest, reinvest
and deliver the Deposit as herein provided. Without limiting the generality of
the foregoing, it is hereby expressly agreed and stipulated by the parties
hereto that Escrow Agent shall not be required to exercise any discretion
hereunder and shall have no investment or management responsibility and,
accordingly, shall have no duty to, or liability for its failure to, provide
investment recommendations or investment advice to the Other Parties or either
of them.
3
<PAGE> 4
Escrow Agent shall not be liable for any error in judgment, any act or
omission, any mistake of law or fact, or for anything it may do or refrain from
doing in connection herewith, except for, subject to Section 7 hereinbelow, its
own willful misconduct or gross negligence. It is the intention of the parties
hereto that Escrow Agent shall never be required to use, advance or risk its
own funds or otherwise incur financial liability in the performance of any of
its duties or the exercise of any of its rights and powers hereunder.
7. Reliance; Liability. Escrow Agent may rely on, and
shall not be liable for acting or refraining from acting in accordance with,
any written notice, instruction or request or other paper furnished to it
hereunder or pursuant hereto and believed by it to have been signed or
presented by the proper party or parties. Escrow Agent shall be responsible
for holding, investing, reinvesting and disbursing the Deposit pursuant to this
Escrow Agreement; provided, however, that in no event shall Escrow Agent be
liable for any lost profits, lost savings or other special, exemplary,
consequential or incidental damages in excess of Escrow Agent's fee hereunder
and provided, further, that Escrow Agent shall have no liability for any loss
arising from any cause beyond its control, including, but not limited to, the
following: (a) acts of God, force majeure, including, without limitation, war
(whether or not declared or existing), revolution, insurrection, riot, civil
commotion, accident, fire, explosion, stoppage of labor, strikes and other
differences with employees; (b) the act, failure or neglect of any Other Party
or any agent or correspondent or any other person selected by Escrow Agent; (c)
any delay, error, omission or default of any mail, courier, telegraph, cable or
wireless agency or operator; or (d) the acts or edicts of any government or
governmental agency or other group or entity exercising governmental powers.
Escrow Agent is not responsible or liable in any manner whatsoever for the
sufficiency, correctness, genuineness or validity of the subject matter of this
Escrow Agreement or any part hereof or for the transaction or transactions
requiring or underlying the execution of this Escrow Agreement, the form or
execution hereof or for the identity or authority of any person executing this
Escrow Agreement or any part hereof or depositing the Deposit.
8. Right of Interpleader. Should any controversy arise
involving the parties hereto or any of them or any other person, firm or entity
with respect to this Escrow Agreement or the Deposit, or should a substitute
escrow agent fail to be designated as provided in Section 15 hereof, or if
Escrow Agent should be in doubt as to what action to take, Escrow Agent shall
have the right, but not the obligation, either to (a) withhold delivery of the
Deposit until the controversy is resolved, the conflicting demands are
withdrawn or its doubt is resolved, or (b) institute a petition for
interpleader in any court of competent jurisdiction to determine the rights of
the parties hereto. In the event Escrow Agent is a party to any dispute,
Escrow Agent shall have the additional right to refer such controversy to
binding arbitration. Should a petition for interpleader be instituted, or
should Escrow Agent be threatened with litigation or become involved in
litigation or binding arbitration in any manner whatsoever in connection with
this Escrow Agreement or the Deposit, the Other Parties hereby jointly and
severally agree to
4
<PAGE> 5
reimburse Escrow Agent for its attorneys' fees and any and all other expenses,
losses, costs and damages incurred by Escrow Agent in connection with or
resulting from such threatened or actual litigation or arbitration prior to any
disbursement hereunder.
9. Indemnification. The Other Parties hereby jointly
and severally indemnify Escrow Agent, its officers, directors, partners,
employees and agents (each herein called an "Indemnified Party") against, and
hold each Indemnified Party harmless from, any and all expenses, including,
without limitation, attorneys' fees and court costs, losses, costs, damages and
claims, including, but not limited to, costs of investigation, litigation and
arbitration, tax liability and loss on investments suffered or incurred by any
Indemnified Party in connection with or arising from or out of this Escrow
Agreement, except such acts or omissions as may result from the willful
misconduct or gross negligence of such Indemnified Party. IT IS THE EXPRESS
INTENT OF EACH OF BUYER AND SELLER TO INDEMNIFY EACH OF THE INDEMNIFIED PARTIES
FOR, AND HOLD THEM HARMLESS AGAINST, THEIR OWN NEGLIGENT ACTS OR OMISSIONS.
10. Compensation and Reimbursement of Expenses. The
Other Parties hereby agree to pay Escrow Agent for its services hereunder in
accordance with Escrow Agent's fee schedule as in effect from time to time and
to pay all expenses incurred by Escrow Agent in connection with the performance
of its duties and enforcement of its rights hereunder and otherwise in
connection with the preparation, operation, administration and enforcement of
this Escrow Agreement, including, without limitation, attorneys' fees,
brokerage costs and related expenses incurred by Escrow Agent. The foregoing
notwithstanding, the Other Parties shall be jointly and severally liable to
Escrow Agent for the payment of all such fees and expenses. In the event the
Other Parties for any reason fail to pay any such fees and expenses as and when
the same are due, such unpaid fees and expenses shall be charged to and set off
and paid from the Deposit by Escrow Agent without any further notice.
11. Lien. Each of the Other Parties hereby grants to
Escrow Agent a lien upon, and security interest in, all its right, title and
interest in and to all of the Deposit as security for the payment and
performance of its obligations owing to Escrow Agent hereunder, including,
without limitation, its obligations of payment, indemnity and reimbursement
provided for hereunder, which lien and security interest may be enforced by
Escrow Agent without notice by charging, and setting-off and paying from, the
Deposit any and all amounts then owing to it pursuant to this Escrow Agreement
or by appropriate foreclosure proceedings.
12. Notices. Any notice or other communication required
or permitted to be given under this Escrow Agreement by any party hereto to any
other party hereto shall be considered as properly given if in writing and (a)
delivered against receipt therefor, (b) mailed by registered or certified mail,
return receipt requested and postage prepaid or (c) sent by telefax machine, in
each case to the address, or telefax number, as the case may be, set forth
below:
5
<PAGE> 6
If to Escrow Agent:
Texas Commerce Bank National Association
600 Travis Street, 10th Floor
Houston, Texas 77002
Attn: May Ng
Corporate Trust/Escrow Section
Telefax No.: (713) [216-2495]
If to Buyer:
Southern Mineral Corporation
Attn: Steven H. Mikel
President
17001 Northchase #690
Houston, Texas 77060
Telefax No.: 713/872-5232
If to Seller:
Stone & Webster, Incorporated
Attn: Jeremiah Cronin
Title: Executive Vice President
250 West 34th Street
New York, New York 10119
P.O. Box 1244
New York, New York 10116
Telefax No.: 212/290-7575
Stone & Webster Oil Company, Inc.
Attn: William A. Brslik
President
500 Dallas, Suite 2800
Houston, Texas 77002
P.O. Box 4263
Houston, Texas 77210
Telefax No.: 713/658-9273
6
<PAGE> 7
Except to the extent otherwise provided in the second paragraph of Section 3
hereinabove, delivery of any communication given in accordance herewith shall
be effective only upon actual receipt thereof by the party or parties to whom
such communication is directed. Any party to this Escrow Agreement may change
the address to which communications hereunder are to be directed by giving
written notice to the other party or parties hereto in the manner provided in
this section.
13. Consultation with Legal Counsel. Escrow Agent may
consult with its counsel or other counsel satisfactory to it concerning any
question relating to its duties or responsibilities hereunder or otherwise in
connection herewith and shall not be liable for any action taken, suffered or
omitted by it in good faith upon the advice of such counsel.
14. Choice of Laws; Cumulative Rights. This Escrow
Agreement shall be construed under, and governed by, the laws of the State of
Texas, excluding, however, (a) its choice of law rules and (b) the portions of
the Texas Trust Code Sec. 111.001, et seq. of the Texas Property Code
concerning fiduciary duties and liabilities of trustees. All of Escrow Agent's
rights hereunder are cumulative of any other rights it may have at law, in
equity or otherwise. The parties hereto agree that the forum for resolution of
any dispute arising under this Escrow Agreement shall be Harris County, Texas,
for purposes of their Agreement, and each of the Other Parties hereby consents,
and submits itself, to the jurisdiction of any state or federal court sitting
in Harris County, Texas, for such purpose.
15. Resignation. Escrow Agent may resign hereunder upon
ten (10) days' prior notice to the Other Parties. Upon the effective date of
such resignation, Escrow Agent shall deliver the Deposit to any substitute
escrow agent designated by Other Parties in writing. If the Other Parties fail
to designate a substitute escrow agent within ten (10) days after the giving of
such notice, Escrow Agent may institute a petition for interpleader. Escrow
Agent's sole responsibility after such 10-day notice period expires shall be to
hold the Deposit (without any obligation to reinvest the same) and to deliver
the same to a designated substitute escrow agent, if any, or in accordance with
the directions of a final order or judgment of a court of competent
jurisdiction, at which time of delivery Escrow Agent's obligations hereunder
shall cease and terminate.
16. Assignment. This Escrow Agreement shall not be
assigned by either of the Other Parties without the prior written consent of
Escrow Agent (such assigns of the Other Parties to which Escrow Agent consents,
if any, and Escrow Agent's assigns being hereinafter referred to collectively
as "Permitted Assigns").
7
<PAGE> 8
17. Severability. If one or more of the provisions
hereof shall for any reason be held to be invalid, illegal or unenforceable in
any respect under applicable law, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, and this Escrow
Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein, and the remaining provisions hereof
shall be given full force and effect.
18. Termination. This Escrow Agreement shall terminate
upon the disbursement, in accordance with Sections 4 or 15 hereof, of the
Deposit in full; provided, however, that in the event all fees, expenses, costs
and other amounts required to be paid to Escrow Agent hereunder are not fully
and finally paid prior to termination, the provisions of Section 10 hereof
shall survive the termination hereof and, provided further, that the last two
sentences of Section 8 hereof and the provisions of Section 9 hereof shall, in
any event, survive the termination hereof.
19. General. The section headings contained in this
Escrow Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Escrow Agreement. This Escrow
Agreement and any affidavit, certificate, instrument, agreement or other
document required to be provided hereunder may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute but one and the same instrument. Unless the context
shall otherwise require, the singular shall include the plural and vice versa,
and each pronoun in any gender shall include all other genders. The terms and
provisions of this Escrow Agreement constitute the entire agreement among the
parties hereto in respect of the subject matter hereof, and neither the Other
Parties nor Escrow Agent has relied on any representations or agreements of the
other, except as specifically set forth in this Escrow Agreement. This Escrow
Agreement or any provision hereof may be amended, modified, waived or
terminated only by written instrument duly signed by the parties hereto. This
Escrow Agreement shall inure to the benefit of, and be binding upon, the
parties hereto and their respective heirs, devisees, executors, administrators,
personal representatives, successors, trustees, receivers and Permitted
Assigns. This Escrow Agreement is for the sole
8
<PAGE> 9
and exclusive benefit of the Other Parties and the Escrow Agent, and nothing
in this Escrow Agreement, express or implied, is intended to confer or shall
be construed as conferring upon any other person any rights, remedies or any
other type or types of benefits.
20. As between Seller and Buyer, nothing herein shall
alter their respective rights and duties under the Purchase and Sale Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this
Escrow Agreement to be effective as of the date first above written.
SOUTHERN MINERAL CORPORATION
By: Steven H. Mikel
____________________________________
Name: Steven H. Mikel
Title: President
17001 Northchase #690
Houston, Texas 77060
Telefax No.: 713/872-5232
"BUYER"
STONE & WEBSTER, INCORPORATED
By:___________________________________
Name: Jeremiah Cronin
Title: _______________________________
250 West 34th Street
New York, New York 10119
P.O. Box 1244
New York, New York 10116
Telefax No.:___________________________
9
<PAGE> 10
STONE & WEBSTER OIL COMPANY, INC.
By: William A. Brslik
___________________________________
Name: William A. Brslik
Title: President
500 Dallas, Suite 2800
Houston, Texas 77002
P.O. Box 4263
Houston, Texas 77210
Telefax No.: 713/658-0351
"SELLER"
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
________________________________________
By: May Ng
_____________________________________
Name: May Ng
___________________________________
Title: Trust Officer
__________________________________
"ESCROW AGENT"
10
<PAGE> 11
EXHIBIT A
Purchase and Sale Agreement dated as of October 31, 1995, by and among
Stone & Webster, Incorporated and Stone & Webster Oil Company, Inc., as
Sellers, and Southern Mineral Corporation, as Buyer.
11
<PAGE> 12
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
CORPORATE TRUST
ESCROW FEE SCHEDULE
Fees for the Bank's standard services shall be as follows:
<TABLE>
<S> <C>
New Account Acceptance Fee $ 500.00
Payable Upon Account Opening
Minimum Administrative Fee $3,000.00
Payable Upon Account Opening and
in Advance for each year in which
we act as Escrow Agent
</TABLE>
A New Account Acceptance Fee will be charged for the Bank's review of the
Escrow Agreement along with any related account documentation. A one (1) year
Minimum Administration Fee will be assessed for any account which is funded.
The account will be invoiced in the month in which the account is opened and
annually thereafter. Payment of the invoice is due 30 days following receipt.
The Administrative Fee will cover a maximum of fifteen (15) annual
administrative hours for the Bank's standard Escrow services including account
setup, safekeeping of assets, investment of funds, collection of income and
other receipts, preparation of statements comprising account activity and asset
listing, and distribution of assets in accordance with the specific terms of
the Escrow Agreement.
Extraordinary Services:
Any additional services beyond our standard services as specified above, such
as annual administrative activities in excess of fifteen (15) hours and all
expenses including attorney's fees will be considered extraordinary services
for which related costs, transaction charges, and additional fees will be
billed at the Bank's standard rate.
Modification of Fees:
Circumstances may arise necessitating a change in the foregoing fee schedule.
The Bank will attempt at all times, however, to maintain the fees at a level
which is fair and reasonable in relation to the responsibilities assumed and
the duties performed.
12
<PAGE> 13
HOLDERS OF TITLE OF EVALUATED ASSETS OF
SPRUCE HILLS PRODUCTION COMPANY, INC.
(Note: All references are to prospects situated in the Province of Alberta,
Canada)
HELD IN NAME OF SPRUCE HILLS PRODUCTION COMPANY, INC.:
Brazeau River Gas Unit No. 1
Ghost Pine Unit
Gilby Viking Unit No. 1, Segment B
Halkirk Upper Mannville "R" Pool Unit
Leahurst Glauconitic "B" Pool Unit
Mitsue Gilwood Sand Unit No. 1
Nipisi Gilwood Unit No. 1
Pembina Cardium Unit No. 31
Pouce Coupe S. Boundary "B" Unit #2
Spirit River Triassic Unit No. 1
The Lindale Cardium Unit
Wainwright Unit No. 4
HELD IN TRUST BY CODY ENERGY CANADA LIMITED:
See Declaration of Trust dated as of May 31, 1995 from Cody to SHPC
HELD IN TRUST BY PRL RESOURCES INC.:
See Trust Agreement dated as of October 15, 1995 from PRL to SHPC
HELD IN TRUST BY EXCEL ENERGY, INC.:
Cadotte
HELD IN TRUST BY NEW CACHE PETROLEUM LTD.:
Halkirk West
HELD IN TRUST BY SUMMIT RESOURCES LIMITED:
Two Creek
EXHIBIT "D"
<PAGE> 14
STONE & WEBSTER OIL COMPANY
ALLOCATION VALUES
<TABLE>
<CAPTION>
FIELD WELL RESERVOIR
<S> <C> <C> <C>
Word North Randow #3 Edwards 0
Word North Hathaway Edwards Gas Unit #2 Edwards 1,000
Word North Randow #1 Edwards 147,000
Word North Kristek Unit #1,2,3,4 Edwards 0
Word North Hathaway #7 Edwards 30,000
Word North Hathaway #6 Edwards 20,000
Word North Hathaway #5 Edwards 10,000
Word North Wynne Unit #1-7 Edwards 1,000
Yoakum Alves #3 Wilcox 8750
Yoakum Alves #3 8400 800,000
Yoakum Chandler #2 Wilcox 8200 85,000
Yoakum Chandler #3 Wilcox 8600 2,800,000
Yoakum Freude #1 8600 3,129,890
Yoakum Turner #1 Wilcox 8300 620,000
Yoakum Turner #2 Wilcox 8750 245,000
Other Non Oil & Gas Assets 270,110
8,940,000
</TABLE>
<PAGE> 15
PURCHASE PRICE ALLOCATIONS
VENTURE RESOURCES
<TABLE>
<S> <C>
Anadarko Gathering System $ 40,000
Judy Area Gathering System $ 200,000
Fulton Area Gathering System $ 300,000
Travis/Roberts Area Gathering System $ 10,000
Harris Gathering System $ 4,852
Dewitt Gathering System $ 0
Four League Bay System $ 150,000
Wharton County Pipeline System $ 15,000
Grady County Gathering System $ 0
Eufaula Gathering System $ 30,000
Other Fixed Assets $ 10,148
-----------
$ 760,000
</TABLE>
EXHIBIT "E-2"
<PAGE> 16
[STONE & WEBSTER OIL COMPANY, INC. LETTERHEAD]
November 1, 1995
May Ng
Texas Commerce Bank, N.A.
600 Travis St., 10th Floor
Houston, Texas 77002
RE: Escrow Agreement by and among
Stone & Webster Oil/Stone & Webster, Inc./Southern Mineral
Dear May:
In accordance with my conversations with the two other signatory
parties to our Escrow Agreement and my several conversations with you this
afternoon, please direct the $1,000,000 in our Escrow Account to the "Hanover"
U.S. Treasury Money Market Fund. I have inserted "Hanover" at your request.
To avoid any confusion, I have attached a copy of the page 10 from your
fax to Butler & Binion of this afternoon wherein the appropriate fund has been
noted.
Also enclosed please find the three Taxpayer Identification Number
Certification forms for Stone & Webster Oil Company, Inc., Stone & Webster,
Inc. and Southern Mineral Corporation.
If there is anything further that you require, please do not hestitate
to contact the undersigned.
We will fax this letter with attachments to expedite the process and
likewise courier a hard copy.
Yours very truly,
/s/ JEFF A. DETHROW
____________________________________
JEFF A. DETHROW
Vice President - Land
AGREED AND ACCEPTED THIS 1st day of
NOVEMBER, 1995
/s/ STEVEN H. MIKEL
___________________________________
STEVEN H. MIKEL, President
SOUTHERN MINERAL CORPORATION
<PAGE> 17
<TABLE>
<CAPTION>
TAXPAYER IDENTIFICATION NUMBER CERTIFICATION
NOTE: Parts I, II and III must be completed.
___________________________________________________________________________________________________________________________________
<S> <C>
___________________________________________________________________________________________________________________________________
PART I: MUST BE COMPLETED -- TYPE OR PRINT
___________________________________________________________________________________________________________________________________
|
ACCOUNT STYLE: Southern Mineral/Stone & Webster Account | TAXPAYER IDENTIFICATION NUMBER
_____________________________________________________________ |
A/C #1691500 | (provide number of first account holder listed)
____________________________________________________________________________ |
|
____________________________________________________________________________ | Social Security Number
|
/ / BASIC / / CHECKING / / WITH INT / / MONEY MKT # ______________ | _ _ _ - _ _ - _ _ _ _
|
/ / INDIVIDUAL SVGS / / ONEPLUS SUPERSAVINGS / / CORPORATE SVGS # ______ |
| Employer Identification Number
/ / TDA CUSTOMER #________________ |
| /x/ 3 6 2 0 6 8 6 7 6
INV. TYPE CERTIFICATE # ($) ____________________________________ | _ _ _ _ _ _ _ _ _
|
__________________________________ ____________________________________ | Southern Mineral Corporation
_______________________________________________________________________________|___________________________________________________
PART II: MUST BE COMPLETED -- SIGN IN INK Cross out if you have been notified by the IRS that you are subject to backup
withholding because of underreporting of interest or dividends and such
notification is still valid.
___________________________________________________________________________________________________________________________________
BACKUP WITHHOLDING CERTIFICATION
Under penalties of perjury, I certify that I am not subject to backup withholding either because I have not been notified
that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal
Revenue Service has notified me that I am no longer subject to backup withholding.
/x/ Steven H. Mikel President 11/1/95
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
PART III: COMPLETE AS APPLICABLE (CHECK ONE ONLY) -- SIGN IN INK IN THE APPROPRIATE SPACE.
___________________________________________________________________________________________________________________________________
/ / INDIVIDUALS / / PARTNERSHIPS / / ESTATES/TRUSTS / / SOLE PROPRIETORSHIP
Under penalties of perjury, I certify that the number shown on this form is my correct taxpayer identification number.
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
/ / NON-RESIDENT ALIENS
I hereby warrant that the account holder:
1. If an indivdiual,
o Is not a citizen or resident of the United States; and
o Has not been present in the United States for 183 days or more during the calendar year, and doesn't plan to be
(or his/her country has a tax treaty with the United States that exempts his/her transactions from U.S. taxes);
and
o That the gains from his/her transactions with the broker are not effectively connected (related) to any U.S.
trade or business he/she is engaged in or plans to engage in during the year, or his/her country has a tax treaty
with the United States that exempts his/her transactions from U.S. taxes.
2. If a corporation, partnership, estate or trust,
o Is not a U.S. corporation, partnership, estate or trust, and
o That the gains from its transactions with the broker are not effectively connected (related) to any U.S. trade or
business it is engaged in or plans to engage in during the year, or its country has a tax treaty with the United
States that exempts the transactions from U.S. taxes.
Under penalties of perjury, I certify that to the best of my knowledge and belief, the above statements and warranties are
correct and the account holder qualifies as a foreign person.
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
/X/ COMMERCIAL
I hereby warrant that the account holder qualifies as one or more of the following (as defined in the Internal
Revenue Code);
o Corporation o Foreign government or agency o Entity registered under Investment
o Tax-exempt organization under thereof Company Act of 1940
Section 501(a) o International organization or o Common trust fund operated by a
o U.S. government or agency thereof agency thereof bank under Section 584(a)
o State or political subdivision of o Foreign central bank of issue o Middleman (including nominee or custodian)
United States o Individual retirement plan o Financial institution
o Securities or commodities dealer o Real estate investment trust o Futures commission merchant
Under penalties of perjury, I certify that the above statements and warranties are true and that the number shown on this form
is my correct taxpayer identification number.
/x/ Steven H. Mikel President 11/1/95
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
</TABLE>
<PAGE> 18
<TABLE>
<CAPTION>
TAXPAYER IDENTIFICATION NUMBER CERTIFICATION
NOTE: Parts I, II and III must be completed.
___________________________________________________________________________________________________________________________________
<S> <C>
___________________________________________________________________________________________________________________________________
PART I: MUST BE COMPLETED -- TYPE OR PRINT
___________________________________________________________________________________________________________________________________
|
ACCOUNT STYLE: Southern Mineral/Stone & Webster Account | TAXPAYER IDENTIFICATION NUMBER
_____________________________________________________________ |
A/C #1691500 | (provide number of first account holder listed)
____________________________________________________________________________ |
|
____________________________________________________________________________ | Social Security Number
|
/ / BASIC / / CHECKING / / WITH INT / / MONEY MKT # ______________ | _ _ _ - _ _ - _ _ _ _
|
/ / INDIVIDUAL SVGS / / ONEPLUS SUPERSAVINGS / / CORPORATE SVGS # ______ |
| Employer Identification Number
/ / TDA CUSTOMER # _______________ |
| /s/ 1 3-5 4 1 6 9 1 0
INV TYPE CERTIFICATE # ($) ____________________________________ | _ _ _ _ _ _ _ _ _
|
__________________________________ ____________________________________ | Stone & Webster Incorporated
_______________________________________________________________________________|___________________________________________________
PART II: MUST BE COMPLETED -- SIGN IN INK Cross out if you have been notified by the IRS that you are subject to backup
withholding because of underreporting of interest or dividends and such
notification is still valid.
___________________________________________________________________________________________________________________________________
BACKUP WITHHOLDING CERTIFICATION
Under penalties of perjury, I certify that I am not subject to backup withholding either because I have not been notified
that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal
Revenue Service has notified me that I am no longer subject to backup withholding.
/x/ William A. Brslik Agent Nov. 1, 1995
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
PART III: COMPLETE AS APPLICABLE (CHECK ONE ONLY) -- SIGN IN INK IN THE APPROPRIATE SPACE.
___________________________________________________________________________________________________________________________________
/ / INDIVIDUALS / / PARTNERSHIPS / / ESTATES/TRUSTS / / SOLE PROPRIETORSHIP
Under penalties of perjury, I certify that the number shown on this form is my correct taxpayer identification number.
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
/ / NON-RESIDENT ALIENS
I hereby warrant that the account holder:
1. If an indivdiual,
o Is not a citizen or resident of the United States; and
o Has not been present in the United States for 183 days or more during the calendar year, and doesn't plan to be
(or his/her country has a tax treaty with the United States that exempts his/her transactions from U.S. taxes);
and
o That the gains from his/her transactions with the broker are not effectively connected (related) to any U.S.
trade or business he/she is engaged in or plans to engage in during the year, or his/her country has a tax treaty
with the United States that exempts his/her transactions from U.S. taxes.
2. If a corporation, partnership, estate or trust,
o Is not a U.S. corporation, partnership, estate or trust, and
o That the gains from its transactions with the broker are not effectively connected (related) to any U.S. trade or
business it is engaged in or plans to engage in during the year, or its country has a tax treaty with the United
States that exempts the transactions from U.S. taxes.
Under penalties of perjury, I certify that to the best of my knowledge and belief, the above statements and warranties are
correct and the account holder qualifies as a foreign person.
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
/X/ COMMERCIAL
I hereby warrant that the account holder qualifies as one or more of the following (as defined in the Internal
Revenue Code);
o Corporation o Foreign government or agency o Entity registered under Investment
o Tax-exempt organization under thereof Company Act of 1940
Section 501(a) o International organization or o Common trust fund operated by a
o U.S. government or agency thereof agency thereof bank under Section 584(a)
o State or political subdivision of o Foreign central bank of issue o Middleman (including nominee or custodian)
United States o Individual retirement plan o Financial institution
o Securities or commodities dealer o Real estate investment trust o Futures commission merchant
Under penalties of perjury, I certify that the above statements and warranties are true and that the number shown on this form
is my correct taxpayer identification number.
/x/ William A. Brslik Agent Nov. 1, 1995
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
</TABLE>
<PAGE> 19
<TABLE>
<CAPTION>
TAXPAYER IDENTIFICATION NUMBER CERTIFICATION
NOTE: Parts I, II and III must be completed.
___________________________________________________________________________________________________________________________________
<S> <C>
___________________________________________________________________________________________________________________________________
PART I: MUST BE COMPLETED -- TYPE OR PRINT
___________________________________________________________________________________________________________________________________
|
ACCOUNT STYLE: Southern Mineral/Stone & Webster Account | TAXPAYER IDENTIFICATION NUMBER
_____________________________________________________________ |
A/C #1691500 | (provide number of first account holder listed)
____________________________________________________________________________ |
|
____________________________________________________________________________ | Social Security Number
|
/ / BASIC / / CHECKING / / WITH INT / / MONEY MKT # ______________ | _ _ _ - _ _ - _ _ _ _
|
/ / INDIVIDUAL SVGS / / ONEPLUS SUPERSAVINGS / / CORPORATE SVGS # ______ |
| Employer Identification Number
/ / TDA CUSTOMER # _______________ |
| /s/ 7 4-1 7 1 6 3 2 5
INV TYPE CERTIFICATE ($) ____________________________________ | _ _ _ _ _ _ _ _ _
|
__________________________________ ____________________________________ | Stone & Webster Oil Company, Inc.
_______________________________________________________________________________|___________________________________________________
PART II: MUST BE COMPLETED -- SIGN IN INK Cross out if you have been notified by the IRS that you are subject to backup
withholding because of underreporting of interest or dividends and such
notification is still valid.
___________________________________________________________________________________________________________________________________
BACKUP WITHHOLDING CERTIFICATION
Under penalties of perjury, I certify that I am not subject to backup withholding either because I have not been notified
that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal
Revenue Service has notified me that I am no longer subject to backup withholding.
/x/ William A. Brslik President Nov. 1, 1995
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
PART III: COMPLETE AS APPLICABLE (CHECK ONE ONLY) -- SIGN IN INK IN THE APPROPRIATE SPACE.
___________________________________________________________________________________________________________________________________
/ / INDIVIDUALS / / PARTNERSHIPS / / ESTATES/TRUSTS / / SOLE PROPRIETORSHIP
Under penalties of perjury, I certify that the number shown on this form is my correct taxpayer identification number.
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
/ / NON-RESIDENT ALIENS
I hereby warrant that the account holder:
1. If an indivdiual,
o Is not a citizen or resident of the United States; and
o Has not been present in the United States for 183 days or more during the calendar year, and doesn't plan to be
(or his/her country has a tax treaty with the United States that exempts his/her transactions from U.S. taxes);
and
o That the gains from his/her transactions with the broker are not effectively connected (related) to any U.S.
trade or business he/she is engaged in or plans to engage in during the year, or his/her country has a tax treaty
with the United States that exempts his/her transactions from U.S. taxes.
2. If a corporation, partnership, estate or trust,
o Is not a U.S. corporation, partnership, estate or trust, and
o That the gains from its transactions with the broker are not effectively connected (related) to any U.S. trade or
business it is engaged in or plans to engage in during the year, or its country has a tax treaty with the United
States that exempts the transactions from U.S. taxes.
Under penalties of perjury, I certify that to the best of my knowledge and belief, the above statements and warranties are
correct and the account holder qualifies as a foreign person.
______________________________ ______________________________ ______________________________
Signature Title Date
___________________________________________________________________________________________________________________________________
/X/ COMMERCIAL
I hereby warrant that the account holder qualifies as one or more of the following (as defined in the Internal
Revenue Code);
o Corporation o Foreign government or agency o Entity registered under Investment
o Tax-exempt organization under thereof Company Act of 1940
Section 501(a) o International organization or o Common trust fund operated by a
o U.S. government or agency thereof agency thereof bank under Section 584(a)
o State or political subdivision of o Foreign central bank of issue o Middleman (including nominee or custodian
United States o Individual retirement plan o Financial institution
o Securities or commodities dealer o Real estate investment trust o Futures commission merchant
Under penalties of perjury, I certify that the above statements and warranties are true and that the number shown on this form
is my correct taxpayer identification number.
/x/ William A. Brslik President Nov. 1, 1995
______________________________ ______________________________ ______________________________
___________________________________________________________________________________________________________________________________
</TABLE>
<PAGE> 1
EXHIBIT 99.1
Contact:
Steven H. Mikel
President and Chief Executive Officer
(713) 872-7621
SOUTHERN MINERAL CORPORATION
ANNOUNCES $16,500,000 PURCHASE
Houston, November 1, 1995 -- Southern Mineral Corporation (the
"Company") announced today that it has agreed to purchase certain oil and gas
assets and subsidiaries of Stone & Webster, Incorporated ("S&W"). The cash
purchase price is $16.5 million. The Company estimates proven reserves of
approximately one million barrels of oil and 14.5 billion cubic feet of natural
gas are included in the sale, in addition to pipeline and gathering systems.
The acquisition includes the oil and gas interests owned by Stone & Webster Oil
Company, Inc., S&W's Houston based oil and gas operating subsidiary, and the
stock of three direct or indirect subsidiaries of S&W. One subsidiary is a
domestic corporation that owns interests in 1,200 wells located in Canada.
Another subsidiary holds interests in ten pipeline and gathering systems
located in Oklahoma, Texas and Louisiana. A third subsidiary owns interests in
approximately 270,000 gross mineral acres together with associated producing
royalties.
"This acquisition provides Southern Mineral Corporation with another
building block to work from," said Steven Mikel, President. "This fits well
with our strategy to acquire and exploit oil and gas properties, since there is
significant potential beyond the existing proven asset base to build upon."
The transaction is scheduled to close by year end, subject to satisfaction of
customary closing conditions. The Company intends to finance the acquisition
with internally generated funds and debt financing.
Southern Mineral Corporation is an oil and gas acquisition,
exploration and production company that is listed on The NASDAQ SmallCap Market
under the trading symbol SMIN.
