G A R D E R E & W Y N N E A T T O R N E Y S A N D C O U N S E L O R S

G U I T E 1 5 0 0 7 17 S O U T H h . ; , R W O O O ' . T R F E T

D A L L A S , T ' - X A S 7 5 2 0 !

TELCCOr>lCR 2 U - r 7 » - 4 6 6 7

W R I T E R ' S O I R t C T B I»L KUMDf.K 2 I * - y 7 9 • 4 SO 0 C A B L E : GARWYN TELEX 7 3 - O I 9 7

214-979-4972

January 4, 1989

U.S, Department, o f I n t e r i o r FEDERAL EXPRESS Minerals Management Service 1201 Elmwood Park Boulevard Jew Orleans, Louis iana 70123-2394

Dear S i r :

Enclo. d f o r f i l i n g i n your lease f i l e s are the f o l l o w i n g doc irnents:

1) Product ion Payment Conveyance f : n P lac id O i l Company to Hi Production Company, Inc (1 o r i g i n a l and 58 exact ''ies) ; and

2) Product ion Payment Ccnvevu..je f rom P l a c a O i l Company to OPiJSCO Resources, I n c . (1 o r i g i n a l and 58 exact c'>-.-ies) .

'Sach o i ne - documents cover 51 cut : c o n t i n e n t a l she l f leases. I wov. l i k e "ou to c e r t i f y jJT. of the copies . Tlie o r i g i n n ' and 5_ o i the copies f o r each document are Cor t i l i n g i n the ". jasc . . ' i l es . You w i l l note tha t I ind ica ted the appropi, te it_ase f i l e in the upper r i g h t hand corner oil the o r i g i n ind i t s cc :es for: your convenience.

I have a l so in>_ i "ed i ne a d d i t i o n a l copy of each doc inent t h a t is stamped "acknowledgment copy". Please c e r t i f y these two acknowledgment copies r l r c and r e tu rn them to me as evidence ?J~ f i . i n g .

Our f i r r check i n the amour. of $2,923.00 s i -.lua d to cover the costs of these requt. ; :s. The amount j . a c l i s S .5.00 per document to be f i l e d and .2 : f o r each of the 116 s e r t i f i e d copies . Please t e e l f ree to a l l me c o l l e c t at the number above i f yon have any quest ions.

Thank you f o r your ass is tance.

Verv t r u l y yours .

i

Elizabeth B. A l l e n L e g i l Assistant

R E C E I V E S

JAN 4 1969

Minerals Man einent Service EBA/jcd Leasrng & E/rvironmenf Encls . 3619P

RECEIVER- ~ * * - * - i » r

JAN 4 1939

Minerals Management Servic* PRODUCTION PAYMENT con VEY ANCE Losing & Environment

For value received, Placid Oil Coapany, a Delaware corporation,

whoee addreae lo 3900 Thanksgiving Tower, Dallaa, Texaa 75201 (the

"Aflfligncr") oes hereby grant, bargain, sell, convey, assign, tranafer,

•at over and deliver to HI PRODUCTION COMPANY, INC. , a corporation,

whose addreae la P.u. Box 619190, Dallaa, Texaa 752261-9190 (the

"Aaalgnee"), a production payment (herein called the "Production

Payment") described aa follows:

Froa and after the date hereof until thc Production Payment

la fully diacharged, an undivided 4.375X of a l l the

hydrocarbona. which for all purpoaaa ln thla Conveyance ahall

mean u i l , gaa and liquid hydrocarbona (herelncalled

"Hydrocarbona") and the proceede from the aala thereof,

accruing or attributable to Assignor'a Interest in the oil

end gaa laaaea (herein called the "Leaaea") described or to

vhich reference ls aade lr. Exhibit A attached hereto and

Incorporated herein by reference.

The Production Payment ahall continue and remain In full force and

effect until Aaalgnee shall ha- - received end reali; ', out of tha

proceede of Cha sale cf the Rydrocaroona accruing or attributable to the

Production Paymant, -ree and clear of a l l exploration, development,

operating, lifting, gathering, producing, storing, treating, processing,

marketing, transporting and other coata and axpanaaa of every kind

whatsoever, and free and clcer of eny end all ad valorem taxea, severance

taxes, or any taxes of any typa whatsoever, the aggregate of tha

following amount a:

1

A. Tht sua of Three Million Nine Hundred torty-Seven One

Hundred Ninety-One Dollars ($3,947,191) (herein called

the "Primary Sum").

B. An atount equal to aiaple intereat at the priae rate of

Cit; ank, N.A. aa i t aay change froa tiae to time plus

one percent ( I X ) , per annua from the date upon which

this instrument i s executed, on the unliquidated balance

of the Primary Sum.

However, i f Sxxon Cor-oration ("Exxon") should reassign to Assignor

thc interest in any such leas^ assigned by Assignor to Exxon under that

cartalu Partirl Leese Interest Acquisir'.n Agreement ("Exxon Agreeaent")

dated September 2?, '988, then this Production Payaent Conveyance as to

said leass shall ba nul l and voi.. as of such reasslgnaent date, and

Assignee agrees to execute a l l necessary documents to release said lease

fzoa this Production Payment Conveyance.

Aasignor shal l market the Hydr carbona accruing or attributable to

the Production Payrsent to others c he same basis as Assignor markets

i t a share of production from the Exhibit A Lerre*. A l l proceeds of

Hydrocarbons accruing to the Production Payment received by Assignor,

Including the -larket value at the wellhead, >f any taken by Aasignor

sha l l constitute trust funds ln the hands of Assignor an- Assignor shs l l

be a trustee and f iduciary with respect to euch ceada.

Ths amount of the proceeda of sale of Hydrocarbons acc ruing to tha

Production Payment s h a l l bo paid over to Assignee on or prior to the 25th

day of each aonth for those procseds received by Assignor subssquent to

the lsst month's payment.

2

Tha Production Paymant shall remain ln full force and effect until

the fall amount of th* primary sum plus intaraat vhich Assignee ls

entitled to receive hereun r haa been received by Assignee aa above

provided. Assignor ahall have tha right at any time to prepay, ln whole

or ln part, a l l amounts dun undar tha Production Paymant.

TO HAVE AND TO HOLD the righta, titles and intaraat hereinabove

described unto Assignee subject to ths conditions and limitations hereof,

forever; and Assignor doss hsrsby bind ita elf, Its successors and cr signs

to warrant and forever defend a l i snd singular tha aaid interests unto

Assignee, its Tucceesors snd assigns, egainat every parson whoasoever

lswfully claiming or to claim ths sses or sny part thereof by, through or

under Assignor but not otherwise, but with full substitution snd

subrogation of Aaalgnee ln and to s l l covenants snd warranties by

Assignor's prsdscsasore ln titls heretofore given or aade with respect to

sny such Interest or sny psrt tharaof.

In ordsr to facilitate tha recording of sn original of this

instrument ln sny number of counties, parishes, and/or Federal agencies,

this Aaslgnmsnt l s being szacutad in severs! counterperts, ssch of which

shsll bs dasasd an original, snd s l l of vhich shsll togsthsr constitute

ons and tha »ISKJ instrument. In making proof of this instrument, i t

shsll not bs nscesiary for Assignee to produce but one such counterpart.

This instrument shall bs sffsctlvs for a l l purposes ss of 7:00 a.m.,

Dallas, Texss tim* on ths Closing Dsts aa sot forth ln ths Exxon

Agreeaent.

3

IN WITNESS WHEREOF, eh* aald Assignor has caussd Its nana to bs

affixsd this day of d i a ^ S S s i saaVI J » 1988.

PLACID OIL COMPANY

By: / f Z f ^ ^ L

(Print NaaaT

THE STATE OF TEXAS ) )

COUNTY OF DALLAS )

BEFORE ME, th* undersigned, a Notary Public, on this day personally

offlcsr whose naae ls subscri ed to th* foregoing Instrument and acknowledged to a* that th* ssa* va* th* acl of the aald PLACID OIL COMPANY, a corporation, and that ha has executed the aame as tha act of auch corporation for thc purposes and consideration therein exprecssd, and ln the capacity therein atatad.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this &A*.J day of

known to mr to ba tha paraon and

(SEAL)

Print nama of Notary Publlc My coamiaslon expire*:

DCHIBIT "A" TO PRODUCTION PAYMENT CONVEYANCE DATED SEPTEMBER 21, 1988

Wot Penrod Preeper CP Qperatlef Cioae IH rVeatxttee Petrolew tr l l l lno Pet r e - * * * Placid 0(1 intrey

CffleeeJj* CereeretlcR Ca>»eey, laa. Ceraoret RjesMrcea. Inc. Caaau«y»> Career ntlon Cospeey r-T"or»t 1 on Toul

eheld leeeevwll' laeeeMe Leeedtete leaet*-ld la»eehel4 Leentold leeecnetd leeeehold leeaehold

Are* Hock Interest ( l l lataraat f l l Intereat tti Interest (11 lataraat 11) latere** HI 8Ntoreet (I) interest i l l

Gr—n Canyon

MAMMB

120* Haan •Ml . 1.33333 40.UM4 .tn t.bmt I.MI

Interest (11 lataraat 11)

5 81110 8G.MGG7

Green r*^yon 121 i:*on n.M 4S.M t.tv t.n 3.713 3.OR - 13.M0 - 100.00

Gr*, _enyon in* 81 OCT •Mt K . M 4 V N t . n ; t.n 3.783 - - 17 40 - •M.M

Cc wn Cwycn 123 8!wn 7m - M.M t.tit t.n S.OM - - 24.W - IM.M

Green Canyon !67 llaon rm 25 00 45f5 t.tv i.n 3 713 3.0R - IS.9M - IM.M

Green Caryca 2M* Mlleeheey •504 •.33333 49.33334 .tn t.tmt I.MS - - S.fltM - M.MS07

irmr. Cafyci :ia Allfehvy im n.w 45.N t.tv t.n 3.783 - - 17.M - 100.00

Green Canyon 212 Dm tar. W. rm tl.M * j .M t.tv t.n 3.783 3.4*2 - 13. ON - 100.M

Graen Canyon m •eater am - M.N t.tu t.n S.OM - - 24.M - 100.M

Green Canyon ?a L«S«re mt 12 M tt.M 1.81*5 I.M 2.BI5 1.741 - t.m - tl.M

Green Canym 733 laSere 7 M J IS.M a.M l.flH S.M l.MIS 1.7M - • MC - ' H.M

Green Canyon 234 laSwre 7*44 IZ.M n.M 1*115 S.M l.MIS I.7M - •JM - M.W

•ret.. Janyon 2*7 PeneVe. 1. TMS n.M 4S.M I . O ? 1.71 3.713 3.412 - IJ.9W - IN.On

Gr—n Canyui 2*8 Pandora. • . TtM H . N 45.W c n ; t.n 3.713 3.494 - I3.9M - . IM.M

Grww Canyon AUefhc* 2949 » . M 45. M 2.03? t.n 3.7*3 3.4W - I S . M - IM.M

Green Canyon ?bi Dewier, tf. 7C?9 25.08 45.M 2 §37 t.n 3.783 3 4*2 - I3.M0 - 100 00

Graan Canyon 257 Dealer 7t5J 25. N 45.08 2.037 t.n 3.713 3.412 - 13.9*8 - !00.00

Green Canyon 256 *~ter 8001 - M.M 2912 t.n S.OM - - 24.M - 100.00

Green Canyon 285 Salaor River 70S? 25 00 45 00 1.037 t.n 3.783 - 13 9*8 iOO.OO

Exhibit "A"

Ff Operatine Iximn Nl Production Cuaaiiaji Corporation Coaaony. Inc.

-JOi

Graan Canyon

Bloc*

286

OCS-G

TOSS

leeaehoid Intaraat (Sl

Leeaehold Intaraat (X)

Laaaahold Intereat f j

2.037

-JOi

Graan Canyon

Bloc*

286 Saiexn liver

OCS-G

TOSS 25.00 45.M

Laaaahold Intereat f j

2.037

Graan Canyon 287 Svleo River 7054 25.0C 4*.M 2.037

Graan Canyan 236 Saleon Rlver TOSS 25.00 4S.M t.MI

Graan Canyon 294 Jfrsay S i l l H .M 45.M -

Graan Canyon 29f Jaraay 7054 H.M 4S.M 2.037

Graan Ccnyon 208 Nadlna. S. M10 25.CO eS.M *.G37

Graan Canyan 301 Dexter 7658 I t .M 52.50 2.3785

•Green Canyon 301 tarter TOM - M.M t.nt

(K/4.NU/4.IC/4 - 90 a cree)

Sraen Canyan 329 Salaon River. S. TOM 25.00 45.M t.MT

Green Canyon 330 Salaon River. S. TOM 25.00 4S.M t.MT

Croon Canyon 340 Jervey TMI 25. M 4S.M t.MT

Green Canyon 342 Hsdlne. S. Mlt H .M 4S.M t.MT

Graan Canyan 305 N M T O U 7M4 H.M 01.58 t.MT

Green Canyon 308 tteereks TMS H.M 45.N I.M?

Green Cinyon 39S Fields TOM H.M 4S.M t .UT

Green Canyon 403 Groa Vantra TMT H.M M.M t.MT

Green Canyan 404 Groa ventre TOM 25 CO OS.M 2.03.

Green Canyan 429 Abaaroka TGC3 H.M 45.44 t.MT

Green Canyan 430 Abaaroka 7070 H.M 45 00 2.037

Gmn Canyon 440 Grsa Ventre 7073 H.M 45.M 2.037

•lha difference tn tntc/eat* reflects a non-consent election In a «ell located en the deter I bad

2-

Hunt Petroleua OfUKO

Corporation Resources,Inc. Leasehold Leauhold

'BWrMt il) Inttnti tl)

Orllllna retrc-HuK Placid Oil Caae any* i Corporation Coapany

Leasehold leasehold Laaaahold

IrrtOTfll i l ) M Z M l J a l Imprest (11

Prosper tneroy

Corporation Laaaahold

httrtit na

ToUl laaaahold

tnttrwt ill

8.720

8.720

I .TM

5.04232

1.720

I .T2I

T.M

O.M

3.783

3.713

3.783

3.783

3.713

4.4135

S 044

3 492

3.482

S.Mt

4 9918

J.492

4.074

4.654

1.7*17

13.968

13.968

13.Ml

16.37244

13. MB

IT.M

U . t M

11.624

1.79697

I M . M

I M . M

I M . M

I M . M

I M . M

I M . M

100.00

100.00

b.720

I . T M

1.720

I .TM

8.120

6.721

I.T2I

I.T20

I .TM

6.726

I .TM

I .TM

3.783

3.713

3.715

3.783

3.TTI3

3.712

3.783

3.713

3.713

3.783

3.713

3.713

3.412

S.4M

-.412

S.Mt

3 402

3.432

3.492

3.492

3.492

3.492

3.492

13.562

13 968

13.968

17.M

13.9M

13 . IM

I3.93S

1S.SM

13.968

13.9M

U.9M

13.968

100.00

I M . M

I M . M

IM.M

1M.0T

IM.M

IM.M

IM.M

IM.M

IM.M

I M . M

100.M

I xh ib i t "A -3-

Hunt Penrod Pro spe. CP Operat Ino Exxon HI Production Petroleua OPUBCO Dr i l l ing Petro-Hunt Placid Oil Energy

Coepanyi Corporation Conpany. Inc. Corporation Resources. Inc. Ccapany** Corporation Coapany Corporation ToUl laaaahold leasehold Loesehold leasehold Lr-ceroid Leasehold Leasehold leeaehold Leasehold Leasahol

Area Block Pi usuact fiCLf Interest 181 Interest (11 Interest (Sl Interest It) Interest (El Interest (XI Interest (X) Interest (X) interest (Xl Interest

Nlaa. Canyon 881 Houston rw7

Interest 181

00.00 3.50 B.M 30.M I M . M

Nlaa. Canyon 884 Kuehn ..ue - 60.00 1.50 - 6.50 - - M . M - 10J.00

Nlaa. Canyon 925 Houston 79»l - 80.00 2.912 8.720 5.4M - 24. M - I M . M

Ml as. Canyon 928 Kuehn 7*72 - M.OO 2.012 8.728 5.408 - - 24.M - I M . M

Kiss. Conyon 971 Houston 7931 - M . M S.M -- B.M - - 30.00 - I M . M

Nlas. Canyon VT? Kuehn 79e2

• -M . M 2.912 8.720 5.4M - - 24 .M - I M . M

Garten Banks 173 lonsepbr. C. 8219 - M . M t .8 8.0 5 2 - - M . I - I M . M

Garden Banks 217 longspur. C. 8223 - M . M 2.8 8 0 5.2 - - 24.0 - 100. M

Garden Banks 341 Cooper. W. 7475 25.00 %5.M 2.M7 ?.720 3.783 3.492 - 13.MB - I M . M

Garden Banks 344** Cooper 8232 41.88 34.92 7.037 - 3.783 - - 17.48 - I M . M

Gardan Banks 382 Scully /484 - M . M 2.812 8.720 5.4M 4.992 - 19.9M - I M . M

Gardan Banks 387" Cooper 7485 41.80 34.M 2.M7 - 3.783 3.492 - 13. MB - 100.M

Garden Banna 3B8" Cooper 7488 41.80 34.92 2.M7 - 3.783 3.492 - U.MB - 100.00

Gardan Banks 425 Sml ly 7492 - M . M 2.112 8.720 5.408 4.992 - 19.SM - I M . M

Gardan Banks 469 Scully 7497 - M . M 2.812 8.729 S.MS 4 992 - 19.966 - I M . M

Garden Banks 5-9 Perseus 9255 - M . M 2.6 S.O 5.2 - - 24.M - I M . M

Garden Banks 536 nVrcisauo 8257 8.250 78.25 1.18125 4.0 f.18375 - - 18.125 - I M . M

Gardan Barks 579 ti*rc:*sua 8228 - M.uO 2 8 9.0 5.2 - - 24.M - I M . M

Garrien Banka 580 •arc lasca 8259 12.500 S2.M 2.3625 8.0 4.MTS - - 20.25 - I M . M

Garden Banks Rarclaaua 8262 12.500 52.M 2.3875 0.0 4.M75 - - 20.25 - 100.00

3y E-»s.rch Exploration. Inc.. Managing General Partner

i**t*a Penrod Energy Coapany

' Ihe sssignjnent of Interest to HI Production Coepany, Inc. and OPUBCO Resources. Inc. I t pend I M M S approval.

••Reflects faraout of Hunt ret roi BUB Corporation's intereit in this block. i

\Bff\D40 (9/16/88)

1 hereby cert i i / that this Is a true and correct copy of an instrument of record In tho Minerals Management Service, 1201 Elmwood Pa k BoHevard, Naw Orleans, t ;tei«rtt 70123-2394 i.. th? case number

Tfjrf KS*>C;al Leasaig Specialists J A " C 5 1989

W R I T E R ' S D I R E C T DIAL NUMBER

214-979-4972

G A R D E R E S W Y N N E A T T O R N E Y S A N D C O U N S E L O R S

S U I T E I 5 0 0

7 1 7 N O R T H H A R W O O D S T R E E T

D A L L A S . T E X A S 7 3 2 0 1

2 I 4 - 9 7 9 - 4 S O O

TELECOPIES 2 i « - 9 7 8 - 4 6 ' , 7

C A B L E : C A R W T N

T E L E X*. 7 3 - O I 9 7

January 4, 1989

U.S. Department o f I n t e r i o r FEDERAL EXPRESS Minerals Management Service 1201 Elmwood Park Boulevard New Orleans, Lou i s i ana 70i23-2394

Dear S i r :

Enclosed f o r f i l i n g i n your lease f i l e s are the f o l l o w i n g documents:

1) Production Payment Conveyance from Pla c i d O i l Company to Hi Prcduction Company, Inc. (1 o r i g i n a l and 58 exact c o p i e s ) ; and

2) Production Payment Conveyance from Pla c i d O i l Company to OPUBCO Resources, Inc. (1 o r i g i n a l and 58 exact c o p i e s ) .

Each of these documents cover 58 outer c o n t i n e n t a l shelf leases. I would l i k e you to c e r t i f y a l l of the copies. The o r i g i n a l and j>7 of the copies f o r each document are f o r f i l i n g i n the lease f i l e s . You w i l l note t h a t I indicated the appropriate lease f i l e i n the upper r i g h t hand corner of the o r i g i n a l and i t s copies f o r your convenience.

I have a l s o included one a d d i t i o n a l copy of each document th a t i s stamped "acknowledgment copy". Please c e r t i f y these two acknowledgment copies also and return them to me as evidence of f i l i n g .

Our f i r m chpck i n the amount of $2,92^.00 i s included to cover the costs of these requests. Thc amount includes $25.00 per document t o be t i l e d and .25^ f o r eacn of tne 116 c e r t i f i e d copies. Please f e e l free tc c a l l me c o l l e c t a t the number above i f you have any question-.

Thank you f o r your assistance.

Very t r u l y yours,

X£*^ "/A • RECEIVED E l i z a b e t h B. A l l e n Legal Assistant JAN 4 1989

Minerals Management Servic* Leasmg & Environment

EBA/jca Encls. 2619P

RECEIIEO ^ ' WS'&'&r*

JAN 41989 Minerals Mana tffliot Stnrfct PROOQCTION PAYMENT CONVEYANCE

Loosing & Lnvironrn#at

For value received, Placid Oil Coapany, a Delaware corporation,

whose address l s 3900 Thanksgiving Tower, Dallas, Texas 75201 (tha

^Assignor1'), doea hereby grant, bargain, aall, convey, assign, tranafar,

see ov -r snd deliver to OPUBCO RESOURCES, INC., a Delaware corporation,

whose address i s 10111 North Central Expressway, Dallaa, Taxas 75231 (the

"Assignee"), a production payment: (herein called tha "Production

Payment") described as follower

From and after the dete hereof until the Production Ferment

ls fully discharged, an undivided 8.125Z of e l l the

hydrocarbons, vhich for a l l purposes in this Conveyance ahall

mean oi?, ges end liquid hydrocarbons (herelccalled

"Hydrocarbona") arid the proceede from the sale thereof,

accruing or attributable to Assignor's interact ln the oil

snd gee leases (herein celled the "Lessee") deecrlbed or to

vhich reference is made in Exhibit A etteched hereto and

Incorporated herein by reference.

Tha Production Payment shall continue end remain in full force and

affect until Aaalgnee ahall have received and realised, out of the

proceede of the sele of the Hydrocarbona a -ruing or ettributable to the

Production Paymant, free and clear of ell exploration, development,

operating, lifting, gathering, producing, storing, treating, processing,

Barkening, transporting and other coets end expenses of every kind

whatsoever, and free and clear of any end all ad valorem taxes, severance

taxes, or any taxes of any type whatsoever, tha aggregate of tha

following amounts:

1

A. Tliaj sum of S-van Mi." l i o n Three Hundred r ^ i i r f The. J ar.d

Four Hundr.-t N i ^ ^ ' - f l i n e Dollars ($7,33'),499) (h din

ca l led the " P r i .. y &'•»«''/.

B. An amount aqua! to simple Jit*, rest at the prime rate of

Cirv Park, N.A. as i t n \ / charge from time to time pluo

one percent ( I Z ) . pe: aiuvra from the date upon which

t ' ia ';i6':rument la executed, on the unliquidated balance

c f C5*B Primary Sum.

H O J I V J I , i f Exxon Corporation ("E-acon""^ .ihoulii .-"•.at'i f tn . /..isignor

the .ir. i n aay such lease assign d by Assignor to Enxon und?r <:hat

certain i r t i a l Leaae Interes t Acquit.'.t lc*i Agreew^ut '"Exxon Agreew?r.t*')

acted SepLember 22, 1988, then t h i . . P' actio! *'*yverc Convey ice as to

asid lease sha l l be n u l l a i- ' vnA>' r f •uc*' laaasignnant: i t o , and

Assignee aprt ea to execute a l l nec< . ,<«-.* iocuresnta to r e l ise said lease

from th i s Production Payment Coi«*,eyau"...

Aasignor uha l l market the Hvr'rccavbons accruing or a t t r ibu tab le to

the Production Payment to other, on the same cssi- as A s s i z o r markets

i t s share cf product n from the Exhibi t A -.'sen. A l l proceeds of

Hydrocarbons sccruing to ths Producticn P.v .tent receive i by AS«!*;UOL ?

including the mirk*, -lua at the wa lUutd o:. any taken Sy Ant*Igne r

sha l l conat i tute tVK.M tunds i n *.. i» hands o l Asr i^ r ' i r and Ass*gpor shs l l

ba a trua.ee ?nd f i d u c i a r y w i t h respect: to auch proceeds.

The amouut o£ t h i proc^Ja oT SJ»1? of Hydrocarbons accruing to the

;cod»ictior. laymsnt sha l l bo paid ovar f o Abslgree on or p r i o r to tha 25th

day ot H^ch aonth fo r those proceeds received by Asslgnoi subsequent Co

ths l s - t month's payment.

2

Th* '. iction P«)»*at aha'.] i-eu:?n In f u l l fore* aul etrect unti l

tht full a r-at of tho p 'maty sr.i Lima intsrest which Assignee l s

entitled U receive hereunder haa bean i ceived by Assi^iee as above

provided. A s s i z o r sha l l have the "Igot ct any tine to r .epay. In vtu ie

or ln part, a l l aaoui.ts due und*r the Production Paymant.

TO HA,;E MTD TO HOLD thc righta, ".itLea and interest hereinabove

describee' unto Aae.'gtue subject to ins cor.^'c.'ons ind limitations hereof,

forever; and Assignor does here.-, bind i t s e l f . i t » •uccas*>ors and assigns

to warrant and forever d*lend a l l and eln^tul'.r the taid interests unto

Aaalgnee, t» v c c i a i o n an<* *aigr,cj, against eveiy pernon whensoever

lawfully cl« c.'.ng or ro claim the e»v* or any part thereof by, through or

under Assignor but not o . / » w i v e , but '.ith f u l l aubatltutlon *mc

aubroga:i.-i of Assign*? in to a l l covenants end warra"Me by

A s s i g n , ' r e d e c c e e o r e In t i t l e heretofore given or made vizi, reaped, fcj

•-.ny such 1'itt met or any part tharaof.

In ,rdar to f a c i l i t a t e t.e recording .' au .rig Iti*. I of thla

j.nstruaent i s any mncber of counties, perish*?, and/or federal agencies,

this Assignment lw) bring executed ' j several counterparts, aach of whi'. it

aha?1 be deemed an or ig ina l , and a l l of which shal l together constitute

one and tha some instrument. In making proof of thia Instrument, i t

ehall not ba naceasary for Aaalgnes to produce but one such counterpart.

Thia instrument sha.U bs affective for a l l purpoaaa as •»£ 7:00 a.m.,

Delias, Tarae time on the Cloalng Date as aat forth in tha Exxon

Agreement.

IN WITNESS WHEREOF, tht ;a.u Assignor has cai i i t s rwus*

1988.

PLACID OIL COV Y

THE ST. !E Or TEXAS ) )

COUNTY OF DALL,S )

BEFORE MK, the undersigned, a otary fubJ-ic, .'••i th le day pirsonal ly appeared d? . £>. )&@A*Um*ma -• K : 0 w n t J u C b e t n r F ' ' r * o n

o f f i c e r vhosr nane M subset ed to the foi'tsx <r.fl J r s t r« . ' at .nd ucknowled^r.! *o me the same was the act of tb« sole" V .CID OIL IQKPANY, a corpor«.- io. . , and that he hct er ' ;ted the r-'me au :: e act of <uch ccrporation f o r the purooaea and cr« .* -.ot ra t ion therein expre ' jed, auti xii ir:.-c capacity therein stated.

IVEN IPuER . « HAND AND SEAL o.' OFFICE th i s ^ U ^ . day of 1988.

(SEAL)

Print name of Notary Public My com t o.i expires:

E X H i L l T " v * T O P R O D U C T I O N PAYMENT C O N V E Y A N C E D A T E D S L P T E f f f l P R 2 1 , 1 9 8 8

7/ O- t ret la* torn m Fretactlea

Matt

ratraleaa OMCO

•aarat

•> 111 laa fc/tf»-nwt Placid 011

rYotear

Cnerey

C a a w y * Caraaratlaa Caaaa-y. I ra . Caraaratlaa I M •arcae. lac . taa>*a/+* Cuaaiat low Caaaawy Corporation Tatal

i n a r w * l i I I ali i l f U ' a a a a l f letaeaale li axaaa l t i j -oona 'e •aeaaaald laaa await leaaatold laaaahold

Am l a f r a i t d l laaaTaM f l l latfraai [Xi in f r a a t t l l iMx-salJll Iwttraat f l l IffttTttt ft) IfrttTMt (I!

Iraaa Let rem 1 TO- •laa* SSa* . a uus mum . in . M t M i.m - - * l l l l l - « 6*6*7

t r o a * Canyon rn • i t t a 781/ ts.it m.m t.tv l . » * s.ns i . tc - U . M - I M . M

Craan Canyon in* klaaa •S t f K . M m.m t.m 6. I t i.m - 11.41 - I M . M

traan Canyon l l a a a ms - m.m M M • 77 S.OM - - N . N - I M 55

mtm» Canyon 187 llaaa n a m.m t . M I l . l l s.ns S . t K - U . M S - I M . M

Oraai Canyan Allaataay •sta i.sssss m.mm . • F f !.MM i.m - - some - W . t * .

i t mmm Canyon t i ? A l l t a t a n / 7—9 ti lm m.m t . M I t.n S I M - - 17.M - I M . M

Seater . V. M S * n.M m.m t M l t.n i.m S 4M - U . M - 101. Of

:-v<4jn I I J Bwrttr IV i i - M . M t . l l t t.n t.m - - M M - I M . M

Sm«r. r » - ? u 7*4* I t . M n.M !.»:«• t.m l . M I S I . I M - • M t - M . M

Oxaea v ^ny< n LaSara 7*43 I t . M a.sr I . M M i.m l . M I S I . I M - I . M I - ' M . M

Craan tr- ? M laSara HA I t . M zk.m i i m i.m k.mn I . I M - I . M I - SO.M

t r a a o f . on :w f a a a w a . 1. nm n .n m.m t . M I t.n i.m S . M t - U . M - I M . M

Grata Canyi* 248 Pantars 1. . M l n m m t . M I tn i.m S . M t - U M I M . M

tir—n Canyon 2 ( Allar •ry r t t f « . M mm » W t.n t.m i.m - r - 5 - I K M

81 — a Cawyan .'5fc ' . c n a r . V. ran r S . l t m.m 'l - 7 t.it i.m i itt - U M - I M . M

I raaa Canyon Ki Oaatar n.M ( S . M t . M I t.n i.m i . ' t l - • I M . M

m\mm Zmi.^m 'SO O n l i T m i - M . M t . l l t • fi S.M • n.s? I M . M

Gretii Canyon '8b Salaon l i v e r 7 8 * n.w I S . M 1.03/ t.n 3 713 i.m - 1 3 . M - 'oo.o

Ixhibtt "A" -3-

i T M . Block

IP Operating

l e a s e h o l d

OtS-O Intaraat (11

C l U M

Corporation leasehold

iPUrtti (X)

HI Prod wt I cai Coapsny ( n c .

Laaaahold

Petroleaa Corporalto* La«aah>14

Nlss . Canyon 881 Houston 7M7 - 00.00 J . M — Ml a s . Canyan BM Kuehn 7968 - 00.00 S . M --n l s s . Canyon •25 Houston 7fc-'l - M.OO fir J l l 8.720

Nlss . Canyon 92* Kuehn nn - M . M 2.012 I f l

N l s s . Canyon •21 fcMStCM TKi - 60.M S . M -•Has. Canyon •72 Kuehn rm - M . M t.ttt l . » 2 l

Garden Banks ' . - ^aour. ' «219 - M . M 2.8 8.0

Gardan Banks " t. - M . M t.l 1.9

Gardan bV«s M l Coocar. a). nn 25.00 45 M 2.037 - r t i

Cardan Banks J 4 4 " Cooper •232 41.10 M . M t .n; -Gardan Banks 382 Scul ly 74M * M . M t.nt 1.720

Gardan Banks 3 2 7 " Coopar 7445 41 .BC M . K 2.037 -Gardan Bank* 3 M " Coopar 7486 41 08 M . M 2.037 -Gardan Bani: 4!S Scul ly .492 - M . M t . l l t 1.721

G a n * - ; i 469 Scul ly 7897 - M . M t . l l t I . 7 H

f j r d s n Banka 529 Paraaua 8255 - M . M 2.8 8.:.

Gardan Banks 536 Marc issue 82S7 i 250 76.25 1.18125 I . I

Garden Banks 57S »« reissue 8258 - M . M 2.1 l . l

Cardan Banka 580 narcissus •256 12.SO0 S2 .M 2.M2S 1.0

Gardan B * - * s 625 narcissus 8262 :t.soo S t . M %«P5 J.O

•By Ensarch Exploration. I n c . . Managing t oneral Partn tr

••oba Penrod Energ- Conp* y 'The aMigraaent of Intereit to HI Production Cssf-vr. lac. and OPUBCO Maourcei. Inc. la eoodlifj Ht> ewroval.

• •^f leets faranjt of hunt Petrtlroo Corporation's lutarast In thla Mock.

\Bff\D40 (9/16/88)

Pa rod Prosper 0PU9C0 Orllllng Petro-Hunt Placid Oil Energy

le sou rees. Inc. Coapany«« Corporation Cooper/ Corporation Total Laaaahold Loaaohold Laaaahald Loeoehold Laaaahold Leasehold

: -arast (1) Intereat f f lirttTMt (I) IflttTMt (11 Interest ( I ' Intaraat f l l

6.50 30.00 IM.M

3.50 M.M IM.M

5.4M M.M IM.M

S.4M M.M IM.M

1.50 M.M IM.M

5.400 M.M IM.M

5." M.P IM.M

S.t 24.0 IM.M

3.713 3.4*2 13.968 IM.M

3.783 17.M IM.M

S.MI 4.992 19 963 IM.M

3.783 3.492 13.968 100.00

3.7IS 3.412 I3.9M IM.M

5.408 4.M2 I I .Ml IM.M

S.OM 4.992 I I . SM I M M

S.t Mia? I M *

2.19375 'II2S IM.M

5.2 M.t' ts»m

4.3875 tOtS 1 X 6 J

4.3875 2 0 " I M M

Exhibit -2-

Hunt Penrod Prosper

ATM H o c k

7*6

•CS-6

CP Operat ing

Coapany*

Laaaahold

In te res t i l l

n.M

Exxon

Corporat ion

laaaahald

In ta raa t ( I I

Nl Product ion

Coapany. l a c .

Laaaahold

l a ta raa t f l l

Petroleua

Corporat ion

Laaaahald

In ta raa t (S l

onaco toaoaroaa• lnc.

Laaaahald

In ta raa t (Sl

D r i l l i n g

Cwpaayn

La i iBha ld

la ta raa t ( I l

Patro-Hunt

Corporation

laaaahold taiaraat l l i

Plac id O i l

Ceaaary

laaaahold

In taraat (S l

Energy

Corporat ion

laaaahold

In te res t ( I I

T o U l

Laaaahol

In ta roa t

Graen Canaan

H o c k

7*6 Salaaa H o a r 70S3

CP Operat ing

Coapany*

Laaaahold

In te res t i l l

n.M 4 S . M 2.OST i .?n s.ns S.OM

Patro-Hunt

Corporation

laaaahold taiaraat l l i

I S . 9 M I M M

G r a n Canyon 287 Salaaa Rlvar 7054 n . n 45. M 2.037 1.720 s.ns S.Mt - U.tM - 1 M . N

6reen Canyon 2b8 Sal rsa l i v e r TOSS n.M 4 S . M 2 . M T i . ;n s.ns 3.492 - 13.968 - I N . N

t r — i Canyan 2*4 Jaraey St 10 n.M 4 S . N - S.042M - 4.Mlt 1.T9MT 16.37244 1 79897 I M . M

Groan Canyon 295 Jaraay TOM n.M 4 S . N 2.037 8.720 s.ns S.Mt - 1S.9M - I M . M

Groas' Canyon 298 nadlna. S. M l t n.M OS.M 2.037 9 . T M s.ns - - I T . M - I M . M

C r o w Conyon 301 OexUr MM 1 2 . M K.N . . I M S T . M 4.4135 4.874 - M.m - I N . N

•Green Conyon 301 •ea te r 7058 - N . N i.m t . n 5.044 4 656 - 11.124 - I M . M

(K/a.iti/a.K/a - 90 ac raa)

Graan Canyon 329 Calaon l l w . S. TOM n.M 4 S . N 2.037 6.720 s.ns S.OM - u . m - I M . M

Graan Canyon 330 S"laan Rlvar . S. TOM :S.M M . N 2.032 6. T t t s.ns 3.492 .- u . m - I M . M

Craan Canyan 340 alVTMy T M I n.M M . N t . M T 6.729 3.783 3.482 - u . m - I M . M

Groan Canyon 342 Nadlna. S. 8012 n.M 4 S . N 2.037 %.m s.ns - - I T . 40 - I M . M

Groan Canyon 385 Aaooroka TM4 n.N 4 S . N 2 037 S . T N s.ns 3.492 - u . m - I M . M

'Groan Canyon 386 Abaaroka TNS n.N n.N 2 037 • T M s.ns 3.492 - u . m - I M . M

Graan Car., s\ 390 f i e l d * TMS n.N n.N 2.037 8.T20 s.ns 3.492 - u . m - I M . M

Gram Canyon 403 • r a * vant ra 70*7 n.M 4 S . N t . M T 8.720 s.ns 3.492 - n . m - I M . M

firaan Canyan 404 Groa vantra TOM n.M M . M t .MT 6.720 3.783 3.(92 - U . 9 M - I M . M

firaan Canyan 429 Afcearoke TOM n.M 4 S . M 2.037 6.720 3.7*3 3.4*2 - 13. na* - I M . M

Groan Canyan 430 Abaaroka 7070 K . M M . M t.MT 6.720 3.7*3 3.492 - u . m - I M . M

Groan Canyon 440 Groa Vantra TOTS n.M 4 S . M t.MT I . T M s.ns 3.492 - u . m - I M . M

•lha difference In interests reflects a now coaaa.* election la a uall ltsatad on th* described acreage.

• :

I hereby certify that this is a true and correct copy of an Instrument of record in the Minerals Management Service, 1201 Elmwood Pa k Boulevard, New Orleans, Louisiana 70123-2394 in th-i case number

OCS G

Supervisory Wflfetal Leasing Specialists

OS 1989 Date