AMENDMENT TO OIL AND GAS
LEASE
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New
Mexico
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Rio
Arriba
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Robert B.
Rowling et al
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c/o Michael T.
Popejoy
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600 Las Colinas
Blvd., Suite 1900
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Irving, TX
75039
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Approach Oil
& Gas Inc.
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6500 W.
Freeway, Suite 800
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Fort Worth, TX
76116
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January 1,
2009
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On
February 27, 2007, Lessor executed an Oil and Gas Lease (the
“ Lease ”) in favor of Lynx Production Company,
Inc., on those lands (the “ Lands ”) described
in Exhibit “A” attached to the Lease and covering
90,357.544 acres, more or less. The Lease is recorded in Book 530,
Page 2524 of the Records of the Rio Arriba County Clerk’s
Office. Reference is made to the Lease for all purposes.
By that Assignment
of Oil and Gas Lease dated March 7, 2007, Lynx Production
Company, Inc. assigned the Lease to Approach Oil & Gas Inc.
This Assignment is recorded in Book 530, Page 2529 of the Records
of the Rio Arriba County Clerk’s Office.
The Lease is
recognized by Lessor as being in full force and effect. The Lease
is presently owned by Lessee, named above. Lessor acknowledges
previous timely notification by Lessee of the existence and cause
of delay under Addendum “A”, Paragraph 12 of the
Lease, the first such notification occurring on May 2, 2008,
with additional notifications occurring on July 31, 2008,
August 25, 2008, November 26, 2008, February 23,
2009 and the most recent notification occurring on May 29,
2009. It is the desire of the Lessor and Lessee to amend the Lease
as to the particular provisions set out below.
For adequate
consideration, Lessor and Lessee amend the Lease as
follows:
Paragraph 8.
c. on page 3 of Addendum “A” to the Lease is hereby
deleted in its entirety and the following provision is
substituted:
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“ 8.c.
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If at the expiration of the primary
term, or any extensions of the primary term (the primary term as
extended being called, for the remainder of this paragraph, the
“ primary term ”), Lessee is then engaged in the
actual drilling of
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1
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a well in search of oil or gas on
lands covered by this lease or lands pooled therewith, or has
drilled a producing well or a dry hole thereon during the primary
term, then the lease termination provisions in this paragraph 8
shall be postponed so long as at least two (2) wells are
drilled and completed or plugged and abandoned at any time during
each lease year following the expiration of the primary term (the
“ Minimum Annual Well Commitment ”). Provided
further, that should Lessee have satisfied the Minimum Annual Well
Commitment for any lease year following the expiration of the
primary term and should Lessee during the same lease year commence
actual drilling operations on a subsequent well which is thereafter
completed or plugged and abandoned during the following lease year,
then for purposes of satisfying the Minimum Annual Well Commitment,
such a well shall be considered as having been drilled in the lease
year in which it is completed or plugged and
abandoned.
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Paragraph 9 of the Lease and
Paragraph 12 of Addendum A of the Lease are hereby deleted in
their entirety, and the following provision is substituted, as if
Paragraph 9 were never included in the Lease and as if
Paragraph 12 of Addendum A originally read as
follows:
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“ 12.
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Should Lessee be prevented from
complying with any express or implied covenant of this lease, or
from conducting drilling or reworking operations hereunder, or from
producing oil or gas hereunder by reason of Lessee’s
inability to obtain equipment or material, or by reason of
mechanical failure in the drilling or completion of a well or by
virtue of any litigation, injunction or restraining order,
governmental or regulatory order or regulation or by failure to
obtain permits, or by operation of other force majeure, then the
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