<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-099562
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20101029
<ITEMS>1.01
<ITEMS>2.01
<ITEMS>9.01
<FILING-DATE>20101102
<DATE-OF-FILING-DATE-CHANGE>20101102
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Approach Resources Inc
<CIK>0001405073
<ASSIGNED-SIC>1311
<IRS-NUMBER>510424817
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-33801
<FILM-NUMBER>101159240
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE RIDGMAR CENTRE
<STREET2>6500 WEST FREEWAY, SUITE 800
<CITY>FORT WORTH
<STATE>TX
<ZIP>76116
<PHONE>8179899000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE RIDGMAR CENTRE
<STREET2>6500 WEST FREEWAY, SUITE 800
<CITY>FORT WORTH
<STATE>TX
<ZIP>76116
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d77299e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported)<BR>
October&nbsp;29, 2010</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>APPROACH RESOURCES INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">
<B>(Exact name of registrant as specified in its charter)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">001-33801
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">51-0424817</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">One Ridgmar Centre</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">6500 West Freeway, Suite&nbsp;800</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Fort Worth, Texas
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">76116</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
(817)&nbsp;989-9000<BR>

<B>(Registrant&#146;s telephone number, including area code)</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
Not Applicable<BR>

<B>(Former name or former address, if changed since last report.)</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions ( <U>see</U> General
Instruction A.2. below):</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</TD>
</TR>
</TABLE>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;1.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Entry Into a Material Definitive Agreement.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;29, 2010, Approach Oil &#38; Gas Inc., a subsidiary of
Approach Resources Inc. (&#147;AOG&#148;), entered into a
purchase and sale agreement (the &#147;Purchase Agreement&#148;) with Magnum Hunter Resources Corporation to
acquire an additional 10% working interest in the Company&#146;s
Cinco Terry field (the &#147;Cinco Terry Working Interest&#148;). The purchase price
under the Purchase Agreement was $21.5&nbsp;million, subject to customary adjustments, with an effective
date of October&nbsp;1, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Purchase Agreement is filed herewith as Exhibit 2.1 and is
incorporated herein by reference. The foregoing description of the
Purchase Agreement and the transactions contemplated thereby does not
purport to be complete and is qualified in its entirety by reference
to the Purchase Agreement.</div>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Completion of Acquisition or Disposition of Assets.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;29, 2010, AOG completed the acquisition of the Cinco
Terry Working Interest from Magnum Hunter Resources Corporation
pursuant to  the Purchase Agreement for $21.5 million, subject
to customary adjustments.
Funding was provided through borrowings under the $150&nbsp;million
revolving credit facility of Approach Resources Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Purchase Agreement is filed herewith as Exhibit 2.1 and is
incorporated herein by reference. The foregoing description of the
Purchase Agreement and the transactions contemplated thereby does not
purport to be complete and is qualified in its entirety by reference
to the Purchase Agreement.</div>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d) <I>Exhibits.</I></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">2.1*
</TD>
    <TD valign="top" style="font-size: 10pt">&nbsp;</TD>
    <TD valign="top" style="font-size: 10pt"><DIV style="margin-left:0px; text-indent:-0px">Purchase and Sale Agreement dated October&nbsp;29, 2010,
between Magnum Hunter Resources Corporation and
Approach Oil &#038; Gas Inc.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The exhibits and schedules to this agreement have been omitted from
this filing pursuant to Item&nbsp;601(b)(2) of Regulation&nbsp;S-K. The
Company will furnish copies of such exhibits and schedules to the
Securities and Exchange Commission upon request.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>APPROACH RESOURCES INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ J. Curtis Henderson
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">J. Curtis Henderson&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President and<BR>
 General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date:
November&nbsp;2, 2010</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">2.1*
</TD>
    <TD valign="top" style="font-size: 10pt">&nbsp;</TD>
    <TD valign="top" style="font-size: 10pt"><DIV style="margin-left:0px; text-indent:-0px">Purchase and Sale Agreement dated October&nbsp;29, 2010,
between Magnum Hunter Resources Corporation and
Approach Oil &#038; Gas Inc.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The exhibits and schedules to this agreement have been omitted from
this filing pursuant to Item&nbsp;601(b)(2) of Regulation&nbsp;S-K. The
Company will furnish copies of such exhibits and schedules to the
Securities and Exchange Commission upon request.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>d77299exv2w1.htm
<DESCRIPTION>EX-2.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;2.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PURCHASE AND SALE AGREEMENT
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Between
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MAGNUM HUNTER RESOURCES CORPORATION,<BR>
as Seller
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">APPROACH OIL &#038; GAS INC.,<BR>
as Buyer
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Dated
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">October&nbsp;29, 2010
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABLE OF CONTENTS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;I Definitions and References</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.1 Certain Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.2 References, Titles and Construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;II Property to be Sold and Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.1 Property to be Sold and Purchased</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.2 Excluded Properties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.3 Excluded Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.4 Assumed Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;III Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.1 Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.2 Purchase Price Allocation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;IV Representations and Warranties of Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.1 Organization and Existence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.2 Power and Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.3 Valid and Binding Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.4 Non-Contravention</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.5 Approvals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.6 Pending Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.7 Area of Mutual Interest and Other Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.8 No Alienation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.9 No Oral Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.10 Preferential Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.11 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.12 Disclaimer of Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;V Representations and Warranties of Buyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.1 Organization and Existence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.2 Power and Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.3 Valid and Binding Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.4 Non-Contravention</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.5 Approvals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.6 Pending Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;VI Certain Covenants of Seller Pending Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.1 Restrictions on Certain Actions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.2 No Negotiation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.3 Notification of Certain Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;VII RESERVED</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;VIII Conditions Precedent to the Obligations of the Parties to Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.1 Conditions Precedent to the Obligations of Buyer to Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.2 Conditions Precedent to the Obligations of Seller to Close</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;IX Closing of Transaction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.1 The Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.2 Seller&#146;s Closing Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.3 Buyer&#146;s Closing Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;X Certain Accounting Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.1 Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.2 Closing and Post-Closing Accounting Settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.3 No Sales Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XI Post Closing Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.1 Indemnification Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.2 Indemnification Procedures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.3 Tax Treatment of Indemnity Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11.4 Transfer of Files</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XII Casualty Loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;12.1 Casualty Loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XIII Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;13.1 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XIV Commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;14.1 Commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Article&nbsp;XV Miscellaneous Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.1 Survival of Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.2 Further Assurances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.3 Binding Effect; Successors and Assigns</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.4 Like-Kind Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.5 Imbalances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.6 Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.7 Entire Agreement &#151; Time of the Essence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.8 Public Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.9 Injunctive Relief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.10 Amendments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.11 Governing Law and Venue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.12 Multiple Counterparts; Fax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.13 Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15.14 No Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABLE OF EXHIBITS</U></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Property to be Sold</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Seller&#146;s Employees</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule of Claims</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;9.2(a)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conveyance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;9.2(d)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FIRPTA</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->iii<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PURCHASE AND SALE AGREEMENT</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS PURCHASE AND SALE AGREEMENT </B>dated October&nbsp;29, 2010, is made by and between <B>MAGNUM HUNTER
RESOURCES CORPORATION (</B>formerly known as Petro Resources Corporation), a Delaware corporation
(&#147;<B>Seller</B>&#148;), and <B>APPROACH OIL &#038; GAS INC., </B>a Delaware corporation (&#147;<B>Buyer</B>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>W I T N E S E T H:</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>Seller desires to sell, bargain, assign, transfer and convey to Buyer, and Buyer
desires to purchase and accept, certain oil and gas properties and related assets listed on <B>Exhibit
A</B>; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>Seller and Buyer deem it in their mutual best interests to execute and deliver this
Agreement;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in consideration of the mutual covenants and agreements contained herein,
Seller and Buyer do hereby agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;I</B><BR>
<U><B>Definitions and References</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1.1 </B><U><B>Certain Defined Terms</B></U>. When used in this Agreement, the following terms shall have
the respective meanings assigned to them in this <B>Section&nbsp;1.1 </B>or in the section, subsections or
other subdivisions referred to below:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Adjusted Purchase Price</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;3.1</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agreement</B>&#148; shall mean this Agreement, as hereafter changed, amended or modified in accordance
with the terms hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Applicable Environmental Laws</B>&#148; shall mean any and all laws concerning protection of the
environment, natural resources, or human health and safety or orders pertaining to health or the
environment, including, without limitation, common laws, the Clean Air Act, the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act
of 1976, the Toxic Substances Control Act, the Clean Water Act, the Safe Drinking Water Act, the
Hazardous Materials Transportation Act, the Oil Pollution Act of 1990, Occupational Safety and
Health Act of 1970, all as amended, and any state Laws implementing or analogous to the foregoing
federal Laws, and all other Laws relating to or regulating emissions, discharges, releases, or
cleanup of any hazardous substances or wastes, each as amended from time to time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Buyer&#146;s Losses</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.</B><B>1(a)</B><B>.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Closing</B>&#148; and &#147;<B>Closing Date</B>&#148; shall have the meanings assigned to such terms in <B>Section&nbsp;9.1</B>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Code</B>&#148; shall mean the Internal Revenue Code, of 1986, as amended from time to time, and any
successor statute thereto.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Conveyance</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;9.2(a)</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Effective Date</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;9.2(a)</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Electing Party</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;15.4.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Excluded Liabilities</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;2.3</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Excluded Properties</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;2.2.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Governmental Authority</B>&#148; means any federal, state provincial, municipal, local or other
governmental legislature, department, commission, board, bureau, agency or instrumentality, or any
court, in each case whether of the United States, any of its possessions or territories, or of any
foreign nation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Indemnification Claim</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.</B><B>2(a)</B><B>.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Indemnitee</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.</B><B>2(a)</B><B>.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Intermediary</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;15.4.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>IRS</B>&#148; means the United States Internal Revenue Service and, to the extent relevant, the United
States Department of Treasury.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Laws</B>&#148; means any federal, state, local or other law or governmental requirement of a
Governmental Authority and of any kind, and the rules, regulations, guidelines, and orders
promulgated thereunder, all of the foregoing as amended from time to time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Material&#148; </B>shall mean any event, obligation, or document (as applicable) or change (whether
current or reasonably foreseeable) that creates, or reasonably should be expected to create, an
impact of Twenty Thousand and No/100 Dollars ($20,000.00), unless expressly indicated otherwise in
this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Oil and Gas Properties</B>&#148; shall have the meaning assigned to such term in <B>Article&nbsp;II</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Prepaid Amounts</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;10.1.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Properties</B>&#148; shall have the meaning assigned to such term in <B>Article&nbsp;II</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Purchase Price</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;3.1</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Response Period</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.</B><B>2(b)</B><B>.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Seller&#146;s Knowledge</B>&#148; shall mean the actual knowledge of the employees of Seller listed on
Exhibit&nbsp;B, which are the current principal employees of Seller involved in matters relating to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">the matter to which the Knowledge qualifier relates, all after reasonable inquiry; provided
that any claim or other matter with respect to the Properties for which Buyer has provided written
notice to Seller prior to this Agreement shall not be included within Seller&#146;s Knowledge for
purposes of this Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Seller&#146;s Losses</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.</B><B>1(b)</B><B>.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Seller&#146;s Representations</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;4.12.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Survival Period</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;15.1.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Tax</B>&#148; or &#147;<B>Taxes</B>&#148; means (i)&nbsp;any and all federal, state, local or foreign taxes, charges, fees,
imposts, levies or other assessments, including all net income, gross receipts, capital, sales,
use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license,
withholding, payroll, employment, social security, unemployment, excise, severance, stamp,
occupation, property and estimated taxes, customs duties, fees, assessments and charges of any kind
whatsoever; (ii)&nbsp;all interest, penalties, fines, additions to tax or additional amounts imposed by
any Taxing Authority in connection with any item described in clause (i); and (iii)&nbsp;any liability
in respect of any items described in clauses (i)&nbsp;and/or (ii)&nbsp;payable by reason of any tax-sharing
agreement or any other contract relating to the sharing or payment of any such tax, assumption,
transferee liability, operation of law, Treasury Regulation section 1.1502-6(a) (or any predecessor
or successor thereof or any analogous or similar provision under law) or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Taxing Authority</B>&#148; means the IRS and any other Governmental Authority responsible for the
administration of any Tax.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Tax Return</B>&#148; means any return, report or statement required to be filed with respect to any
Tax (including any attachments thereto, and any amendment thereof), including any information
return, claim for refund, amended return or declaration of estimated Tax, and including, where
permitted or required, combined, consolidated or unitary returns for any group of entities that
includes Seller, any of its subsidiaries, or any of their affiliates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Third Party Claim</B>&#148; shall have the meaning assigned to such term in <B>Section&nbsp;11.</B><B>2(a)</B><B>.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1.2 </B><U><B>References, Titles and Construction.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All references in this Agreement to articles, sections, subsections and other
subdivisions refer to corresponding articles, sections, subsections and other subdivisions
of this Agreement unless expressly provided otherwise.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Titles appearing at the beginning of any of such subdivisions are for convenience
only and shall not constitute part of such subdivisions and shall be disregarded in
construing the language contained in such subdivisions.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The words &#147;this Agreement&#148;, &#147;this instrument&#148;, &#147;herein&#148;, &#147;hereof&#148;, &#147;hereby&#148;,
&#147;hereunder&#148; and words of similar import refer to this Agreement as a whole and not to any
particular subdivision unless expressly so limited.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Words in the singular form shall be construed to include the plural and vice
versa, unless the context otherwise requires. Pronouns in masculine, feminine and neuter
genders shall be construed to include any other gender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Unless the context otherwise requires or unless otherwise provided herein, the
terms defined in this Agreement which refer to a particular agreement, instrument or
document also refer to and include all renewals, extensions, modifications, amendments or
restatements of such agreement, instrument or document, provided that nothing contained in
this subsection shall be construed to authorize such renewal, extension, modification,
amendment or restatement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Examples shall not be construed to limit, expressly or by implication, the matter
they illustrate.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The word &#147;or&#148; is not intended to be exclusive and the word &#147;includes&#148; and its
derivatives means &#147;includes, but is not limited to&#148; and corresponding derivative
expressions.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No consideration shall be given to the fact or presumption that one party had a
greater or lesser hand in drafting this Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All references herein to &#147;$&#148; or &#147;dollars&#148; shall refer to U.S. Dollars.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Exhibits listed in the Table of Exhibits are attached hereto. Each such
Exhibit is incorporated herein by reference for all purposes and references to this
Agreement shall also include such Exhibit unless the context in which used shall otherwise
require.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;II</B><BR>
<U><B>Property to be Sold and Purchased</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.1 </B><U><B>Property to be Sold and Purchased</B></U>. Seller agrees to sell and Buyer agrees to purchase, for
the consideration hereinafter set forth, and subject to the terms and provisions herein contained,
the following described properties, rights and interests:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The properties described in <B>Exhibit&nbsp;A </B>attached hereto and made a part hereof for
all purposes;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limitation of the foregoing, all other right, title and interest (of
whatever kind or character, whether legal, beneficial or equitable, and whether vested or
contingent) of Seller in and to the oil, gas and other minerals in and under or that may be
produced from the lands, leases, and wells described in <B>Exhibit&nbsp;A </B>(including interests in
oil, gas and/or mineral leases covering such lands and wells, overriding royalties,
production payments and net profits interests in such lands, such leases and wells, and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">fee mineral interests, fee royalty interests and other interests in such oil, gas and
other minerals) whether such lands be described in a description set forth in such <B>Exhibit
A</B>, or be described in such <B>Exhibit&nbsp;A </B>by reference to another instrument (and without
limitation by any depth limitations that may be set forth in such <B>Exhibit&nbsp;A </B>or in any such
instrument so referred to for description), even though Seller&#146;s interest in such oil, gas
and other minerals may be incorrectly described in, or omitted from, such <B>Exhibit&nbsp;A</B>;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All rights, titles and interests of Seller in and to, or otherwise derived from,
all presently existing and valid oil, gas and/or mineral unitization, pooling, and/or
communitization agreements, declarations and/or orders including those set forth on <B>Exhibit
A </B>and in and to the properties covered and the units created thereby (including all units
formed under orders, rules, regulations, or other official acts of any federal, state, or
other authority having jurisdiction, voluntary unitization agreements, designations and/or
declarations) relating to the properties described in <B>paragraphs (a) </B>and <B>(b) </B>above;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All rights, titles and interests of Seller in and to all presently existing and
valid production sales (and sales related) contracts, operating agreements, and other
agreements and contracts which are set forth on <B>Exhibit&nbsp;A </B>and which relate to any of the
properties described in <B>paragraphs (a), (b) </B>and <B>(c) </B>above, or which relate to the
exploration, development, operation, or maintenance thereof or the treatment, storage,
transportation or marketing of production therefrom (or allocated thereto);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All rights, titles and interests of Seller in and to all materials, supplies,
machinery, equipment, improvements and other personal property and fixtures (including but
not by way of limitation, all wells, wellhead equipment, pumping units, flowlines, tanks,
buildings, injection facilities, saltwater disposal facilities, compression facilities,
gathering systems, and other equipment), and all easements, rights-of-way, surface leases
and other surface rights, all permits and licenses, and all other appurtenances being used
or held for use in connection with, or otherwise related to, the exploration, development,
operation or maintenance of any of the properties described in <B>paragraphs (a), (b) </B>and <B>(c)</B>
above, or the treatment, storage, transportation or marketing of production therefrom (or
allocated thereto); and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All of Seller&#146;s lease files, abstracts and title opinions, production records,
well files, accounting records (but not including general tax and general financial
accounting records), seismic records and surveys, gravity maps, electric logs, and
geological or geophysical data and records, which relate solely and exclusively to the
properties described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The properties and interests specified in the foregoing <B>paragraphs (a), (b) </B>and <B>(c), </B>except
for the Excluded Properties<B>, </B>are herein sometimes collectively called the &#147;<B>Oil and Gas Properties,</B>&#148;
and the properties and interests specified in the foregoing <B>paragraphs (a), (b), (c), (d), (e) </B>and
<B>(f)</B>, except for the Excluded Properties, are herein sometimes collectively called the &#147;<B>Properties</B>&#148;.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.2 </B><U><B>Excluded Properties.</B></U> The Properties to be conveyed and assigned under this Agreement
do not include the following (the &#147;<B>Excluded Properties</B>&#148;):
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All rights and choses in action, arising, occurring or existing in favor of Seller
prior to the Effective Date or arising out of the production from the Oil and Gas Properties
prior to the Effective Date (including, but not limited to, any and all contract rights,
claims, receivables, revenues, recoupment rights, recovery rights, accounting adjustments,
mispayments, erroneous payments or other claims of any nature in favor of Seller and
relating and accruing to any time period prior to the Effective Date);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any accounts receivable accruing before the Effective Date;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All corporate, partnership, financial, tax and legal (other than title) records of
Seller; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All hydrocarbon production from or attributable to the Properties with respect to
all periods prior to the Effective Date and all proceeds attributable thereto.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.3 </B><U><B>Excluded Liabilities</B></U>. Except as explicitly specified in this Agreement, including
<B>Sections&nbsp;2.4 </B>and <B>11.</B><B>1(b)(ii)</B> and <B>(iii) </B>hereof, Buyer will not assume or be liable for any
liabilities of the Seller with respect to the Properties for periods up to the Effective Date,
including without limitation, all liabilities for Taxes of Seller that relate to the Properties for
taxable periods (or portions thereof) ending before the Effective Date (the &#147;<B>Excluded
Liabilities</B>&#148;). Seller shall timely perform, satisfy and discharge in accordance with their
respective terms all such Excluded Liabilities. Notwithstanding anything to the contrary in this
Agreement, nothing herein shall relieve Buyer from any of its obligations or liabilities under the
applicable operating agreements relating to the Properties.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.4 </B><U><B>Assumed Obligations</B></U>. Upon and after Closing, Buyer agrees to assume, and to pay and
perform, all duties, obligations and liabilities of Seller after the Effective Date under all
production sales (and sales related) contracts, leases, operating agreements, and other agreements
and contracts which are set forth on <B>Exhibit&nbsp;A </B>and which relate to any of the Properties, or which
relate to the exploration, development, operation, or maintenance thereof or the treatment,
storage, transportation or marketing of production therefrom.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;III</B><BR>
<U><B>Purchase Price</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.1 </B><U><B>Purchase Price</B></U>. In consideration of the sale of the Properties by Seller to Buyer,
Buyer shall pay to Seller at Closing cash in the amount of $21,500,000.00 (&#147;<B>Purchase Price</B>&#148;). The
Purchase Price shall be adjusted as provided in <B>Section&nbsp;10.</B><B>2(a)</B> (the Purchase Price, as so
adjusted, and as the same may be otherwise adjusted by the mutual agreement of the parties, being
called the &#147;<B>Adjusted Purchase Price</B>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.2 </B><U><B>Purchase Price Allocation</B></U><B>. </B>Seller and Buyer agree that they shall allocate the
Purchase Price as adjusted hereunder, among the Properties for Tax purposes in a manner consistent
with Section&nbsp;1060 of the Code based upon the fair market value of the Properties (the &#147;<B>Purchase
Price Allocation</B>&#148;). The Purchase Price Allocation shall be agreed
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">upon on or before December&nbsp;31, 2010. Seller and Buyer agree to file all Tax Returns
(including IRS Form&nbsp;8594 and any amended Tax Returns or claims for refund) in a manner consistent
with the Purchase Price Allocation, and neither Seller nor Buyer shall take, or shall permit any
subsidiary or affiliate to take, any position inconsistent with such Purchase Price Allocation on
any Tax Return or otherwise, unless required to do so by applicable Law or a &#147;determination&#148; within
the meaning of Section&nbsp;1313(a)(1) of the Code.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;IV</B><BR>
<U><B>Representations and Warranties of Seller</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller represents to Buyer, as of the date of this Agreement, that:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.1 </B><U><B>Organization and Existence</B></U>. Seller is a Delaware corporation duly organized, validly
existing, and in good standing under the Laws of the State of Delaware. Seller is duly qualified
to transact business and is in good standing in the State of Texas. Seller is not a non-resident
alien, foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms
are defined in the Code and in the regulations promulgated pursuant thereto).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.2 </B><U><B>Power and Authority</B></U>. Seller has all necessary and appropriate authority to execute,
deliver, and perform this Agreement and each other agreement, instrument, or document executed or
to be executed by Seller in connection with the transactions contemplated hereby to which it is a
party and to consummate the transactions contemplated hereby and thereby. The execution, delivery,
and performance by Seller of this Agreement and each other agreement, instrument, or document
executed or to be executed by Seller in connection with the transactions contemplated hereby to
which it is a party, and the consummation by it of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary action of Seller.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.3 </B><U><B>Valid and Binding Agreement</B></U>. This Agreement has been duly executed and delivered by
Seller and constitutes, and each other agreement, instrument, or document executed or to be
executed by Seller in connection with the transactions contemplated hereby to which it is a party
has been, or when executed will be, duly executed and delivered by Seller and constitutes, or when
executed and delivered will constitute, a valid and legally binding obligation of Seller,
enforceable against it in accordance with their respective terms, except that such enforceability
may be limited by (a)&nbsp;applicable bankruptcy, insolvency, reorganization, moratorium, and similar
Laws affecting creditors&#146; rights generally and (b)&nbsp;equitable principles which may limit the
availability of certain equitable remedies (such as specific performance) in certain instances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.4 </B><U><B>Non-Contravention</B></U>. Neither the execution, delivery, and performance by Seller of this
Agreement and each other agreement, instrument, or document executed or to be executed by Seller in
connection with the transactions contemplated hereby to which it is a party nor the consummation by
it of the transactions contemplated hereby and thereby do and will (a)&nbsp;conflict with or result in a
violation of any provision of any governing instruments of Seller, (b)&nbsp;conflict with or result in a
violation of any provision of, or constitute (with or without the giving of notice or the passage
of time or both) a default under, or give rise (with or without the giving of notice or the passage
of time or both) to any right of termination, cancellation, or acceleration
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">under, any bond, debenture, note, mortgage or indenture, or any lease, contract, agreement, or
other instrument or obligation to which Seller is a party or by which Seller or any of its
properties may be bound (except for consents to be obtained and liens to be released at Closing),
(c)&nbsp;result in the creation or imposition of any lien or other encumbrance upon the properties of
Seller, or (d)&nbsp;violate any applicable Law, binding upon Seller or the Properties.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.5 </B><U><B>Approvals</B></U>. No consent, approval, order, or authorization of, or declaration, filing,
or registration with, any Governmental Authority or any third party is required to be obtained or
made by Seller in connection with the execution, delivery, or performance by Seller of this
Agreement, each other agreement, instrument, or document executed or to be executed by Seller in
connection with the transactions contemplated hereby to which it is a party or the consummation by
it of the transactions contemplated hereby and thereby.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.6 </B><U><B>Pending Litigation</B></U>. Except as set forth on <B>Exhibit&nbsp;4.6</B>, there are no pending suits,
actions, notices of violations, or other proceedings or claims for which Seller has received
written notice or, to Seller&#146;s Knowledge, any such threatened suits, actions, notices of
violations, or other proceedings or claims in which (a)&nbsp;Seller is or may be a party which relate to
Seller&#146;s Properties (including, without limitation, suits, actions, notices of violations, or other
proceedings or claims challenging or pertaining to Seller&#146;s title to the Properties), or (b)&nbsp;that
affect the execution and delivery of this Agreement or the consummation of the transactions
contemplated hereby.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.7 </B><U><B>Area of Mutual Interest and Other Agreements</B></U>. Except for the areas of mutual interest
set forth in the joint operating agreements described in <B>Exhibit&nbsp;A</B>, no Oil and Gas Property is
subject to (or has related to it) any area of mutual interest agreements. No Oil and Gas Property
is subject to (or has related to it) any farm-out or farm-in agreement, volumetric production
payment, or other similar agreement under which any party thereto is entitled to receive
assignments not yet made, or could earn additional assignments after the Effective Date.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.8 </B><U><B>No Alienation</B></U>. Within 120&nbsp;days of the date hereof, Seller has not sold, assigned,
conveyed, or transferred or contracted to sell, assign, convey or transfer any right or title to,
or interest in, Seller&#146;s Oil and Gas Properties other than production sold in the ordinary course
of Seller&#146;s business.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.9 </B><U><B>No Oral Contracts</B></U>. Seller has not entered into any Material oral contract with
respect to the Properties which is still in force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.10 </B><U><B>Preferential Rights</B></U>. None of the Oil and Gas Properties is subject to any
preferential rights to purchase that will need to be waived in order for Seller to consummate the
transactions contemplated by this Agreement without violating or breaching a duty or obligation of
Seller, or causing a forfeiture or termination of any right or interest of Seller in the
Properties, or the transfer of such right or interest to Buyer, or giving any person a right
(whether conditional or otherwise) to cancel or void any right or interest of Seller in the
Properties or the transfer of such right or interest to Buyer.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.11 </B><U><B>Taxes</B></U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i)&nbsp;All Tax Returns required to have been filed by or with respect to Seller, as
related to the Properties, have been duly and timely filed (taking into account any valid
extension of time to file) for all Taxable periods with all Taxing Authorities, and no
extensions of time to file with respect to such Tax Returns are currently outstanding, and
all such Tax Returns are true, correct, and complete in all Material respects and
accurately reflect in all Material respects the liability of Taxes of Seller, as related to
the Properties; and (ii)&nbsp;all Taxes relating to the Seller&#146;s ownership of the Properties
have been fully and timely paid.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To Seller&#146;s Knowledge, there has been no issue raised or adjustment proposed (and
none is pending or expected by Seller) by the IRS or any other Taxing Authority with
respect to liabilities for Taxes relating to Seller&#146;s ownership of the Properties.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no outstanding federal, state or local governmental liens or other
encumbrances with respect to Taxes upon any of the Properties, except for liens with
respect to real property Taxes not yet due and payable.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller is not a foreign person within the meaning of Section&nbsp;1445 of the Code.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Property is subject to a &#147;partnership&#148; as defined in Section&nbsp;761 of the Code.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.12 </B><U><B>Disclaimer of Warranties</B></U>. Other than those representations and warranties expressly
set out in this Agreement and the Conveyance to be delivered at Closing, (collectively <B>&#147;Seller&#146;s
Representations&#148;</B>), Seller hereby expressly disclaims any and all representations or warranties with
respect to the Properties or the transaction contemplated hereby, and Buyer agrees that the
Properties are being sold by Seller &#147;where is&#148; and &#147;as is&#148;, with all faults. Specifically as a part
of (but not in limitation of) the foregoing, Buyer acknowledges that, other than Seller&#146;s
Representations, Seller has not made, and Seller hereby expressly disclaims, any representation or
warranty (express, implied, under common law, by statute or otherwise) as to the condition of the
Properties (INCLUDING WITHOUT LIMITATION, SELLER DISCLAIMS ANY IMPLIED OR EXPRESS WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR CONFORMITY TO MODELS OR SAMPLES OF
MATERIALS). All of the disclaimers of representations, warranties or other matters in this
Agreement are subject to Seller&#146;s Representations and are not meant to constitute a waiver or
limitation of any claim against Seller for fraud.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;V</B><BR>
<U><B>Representations and Warranties of Buyer</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer represents to Seller, as of the date of this Agreement and as of the date of the
Closing, that:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.1 </B><U><B>Organization and Existence</B></U>. Buyer is a Delaware corporation duly organized, validly
existing and in good standing under the Laws of the State of Delaware and is qualified to transact
business in the State of Texas.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.2 </B><U><B>Power and Authority</B></U>. Buyer has all necessary and appropriate authority to execute,
deliver, and perform this Agreement and each other agreement, instrument, or document executed or
to be executed by Buyer in connection with the transactions contemplated hereby to which it is a
party and to consummate the transactions contemplated hereby and thereby. The execution, delivery,
and performance by Buyer of this Agreement and each other agreement, instrument, or document
executed or to be executed by Buyer in connection with the transactions contemplated hereby to
which it is a party, and the consummation by it of the transactions contemplated hereby and
thereby, have been duly authorized by all necessary action of Buyer.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.3 </B><U><B>Valid and Binding Agreement</B></U>. This Agreement has been duly executed and delivered by
Buyer and constitutes, and each other agreement, instrument, or document executed or to be executed
by Buyer in connection with the transactions contemplated hereby to which it is a party has been,
or when executed will be, duly executed and delivered by Buyer and constitutes, or when executed
and delivered will constitute, a valid and legally binding obligation of Buyer, enforceable against
it in accordance with their respective terms, except that such enforceability may be limited by (a)
applicable bankruptcy, insolvency, reorganization, moratorium, and similar Laws affecting
creditors&#146; rights generally and (b)&nbsp;equitable principles which may limit the availability of
certain equitable remedies (such as specific performance) in certain instances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.4 </B><U><B>Non-Contravention</B></U>. The execution, delivery, and performance by Buyer of this
Agreement and each other agreement, instrument, or document executed or to be executed by Buyer in
connection with the transactions contemplated hereby to which it is a party and the consummation by
it of the transactions contemplated hereby and thereby do not and will not (a)&nbsp;conflict with or
result in a violation of any provision of any governing instruments of Buyer, (b)&nbsp;conflict with or
result in a violation of any provision of, or constitute (with or without the giving of notice or
the passage of time or both) a default under, or give rise (with or without the giving of notice or
the passage of time or both) to any right of termination, cancellation, or acceleration under, any
bond, debenture, note, mortgage, indenture, lease, contract, agreement, or other instrument or
obligation to which Buyer is a party or by which Buyer or any of its properties may be bound, (c)
result in the creation or imposition of any lien or other encumbrance upon the properties of Buyer,
or (d)&nbsp;violate any applicable Law binding upon Buyer.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.5 </B><U><B>Approvals</B></U>. No consent, approval, order, or authorization of, or declaration, filing,
or registration with, any Governmental Authority or any third party is required to be obtained or
made by Buyer in connection with the execution, delivery, or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">performance by Buyer of this Agreement and each other agreement, instrument, or document
executed or to be executed by Buyer in connection with the transactions contemplated hereby to
which it is a party or the consummation by it of the transactions contemplated hereby and thereby.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.6 </B><U><B>Pending Litigation</B></U>. There are no pending suits, actions, or other proceedings in
which Buyer is a party which affect the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VI</B><BR>
<U><B>Certain Covenants of Seller Pending Closing</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">From the date hereof until Closing,
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.1 </B><U><B>Restrictions on Certain Actions</B></U>. Seller will not, without Buyer&#146;s prior consent:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) propose the drilling of any additional wells, or propose the deepening, plugging
back or reworking of any existing wells;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) propose the conducting of any other operations which require consent under the
applicable operating agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) propose the conducting of any other operations other than the normal operation of
the existing wells on the Oil and Gas Properties;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) propose the abandonment of any wells on the Oil and Gas Properties;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) sell, transfer or abandon any portion of the Properties other than oil or gas
produced from Oil and Gas Properties;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) release (or permit to terminate), or modify or reduce its rights under, any oil,
gas and/or mineral lease forming a part of the Oil and Gas Properties; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) make or revoke any material Tax election, or settle or compromise any material Tax
liability, or change (or make a request to any Taxing Authority to change) any material
aspect of its method of accounting for Tax purposes, in each case if such action would have
any material adverse effect on the Properties following the Closing; provided that,
notwithstanding anything to the contrary in this Agreement (other than the adjustment
provisions set forth in <B>Article&nbsp;X </B>with respect to the Prepaid Amounts), (i)&nbsp;Seller&#146;s
obligation to approve, consent to, make any election with respect to or otherwise respond
to any matter, or to pay any amounts pursuant to any AFE, JIB or drilling advance invoice
or similar invoice, proposed or submitted to Seller by Buyer or any other person under the
applicable operating agreements relating to the Properties, whether proposed or submitted
prior to or on or after the date of this Agreement, shall be suspended and (ii)&nbsp;whether or
not the Closing occurs, Seller shall not be deemed in breach or violation of such operating
agreements on account of its failure to so approve, consent, elect, respond or pay during
the period such obligation is suspended.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.2 </B><U><B>No Negotiation</B></U>. Until the Closing, Seller will not directly or indirectly solicit,
initiate or encourage any inquiries or proposals from, discuss or negotiate with, provide any
nonpublic information to or entertain or consider the merits of or accept any inquiries or
proposals from any person (other than Buyer) relating to any sale of any of the Properties or any
similar transaction or arrangement involving any of the Properties, other than the sale of
production from the Properties. Seller shall notify Buyer of any such inquiry or proposal within
twenty-four (24)&nbsp;hours of receipt or awareness of the same by Seller.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.3 </B><U><B>Notification of Certain Matters</B></U>. Each party shall give prompt notice to the other
party of (i)&nbsp;the discovery of any fact, information or circumstance which would be likely to cause
any representation or warranty of such party contained in this Agreement to be untrue or inaccurate
in any material respect and (ii)&nbsp;any material failure of such party to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it hereunder. Such notice
shall expressly disclose, if such discovery of any additional fact, information or circumstance
would have required disclosure on any Exhibit, that it was known as of the date of this Agreement.
The delivery of any notice pursuant to this Section shall not be deemed to (i)&nbsp;modify the
representations or warranties hereunder of the party delivering such notice, (ii)&nbsp;modify the
conditions set forth in <B>Article&nbsp;VIII</B>, or (iii)&nbsp;limit or otherwise affect the remedies available
hereunder to the party receiving such notice.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VII</B><BR>
<U><B>RESERVED</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VIII</B><BR>
<U><B>Conditions Precedent to the Obligations of the Parties to Close</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8.1 </B><U><B>Conditions Precedent to the Obligations of Buyer to Close</B></U>. The obligations of Buyer
to consummate the transactions contemplated this Agreement are subject to each of the following
conditions being met:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the representations and warranties of Seller contained in <B>Article&nbsp;IV </B>that
is: (i)&nbsp;qualified by materiality (whether by reference to the terms &#147;material,&#148;
&#147;materiality&#148;, &#147;Material&#148; or similar qualifiers set forth therein) shall be true and
correct in all respects on and as of the Closing Date (giving effect to such materiality
qualification) as if made on and as of such date (other than any such representation or
warranty that by its terms addresses matters only as of another specified time, in which
case such representation or warranty shall have been true and correct in all respects as of
such time); and (ii)&nbsp;not so qualified by materiality shall be true and correct in all
material respects on and as of the Closing Date as if made on and as of such date (other
than any such representation or warranty that by its terms addresses matters only as of
another specified time, in which case such representation or warranty shall have been true
and correct in all material respects as of such time).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for covenants, agreements and conditions qualified by &#147;material&#148; or
&#147;materiality&#148; in which case compliance must be performed and complied with in all
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">respects by Seller prior to or at the Closing, Seller shall have performed and
complied in all material respects with (or compliance therewith shall have been waived by
Buyer) each and every covenant, agreement and condition required by this Agreement to be
performed or complied with by Seller prior to or at the Closing.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller shall have delivered a certificate executed on behalf of Seller by an
authorized representative of Seller dated the Closing Date, representing and certifying in
such detail as Buyer may reasonably request that the conditions set forth in <B>paragraphs (a)</B>
and <B>(b) </B>above have been fulfilled.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No suit, action or other proceedings shall, on the date of Closing, be pending or
threatened before any Governmental Authority seeking to restrain, prohibit, or obtain
damages or other relief in connection with the consummation of the transactions
contemplated by this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any such condition on the obligations of Buyer under this Agreement is not met as of the
Closing Date, or in the event the Closing does not occur on or before the Closing Date, and (in
either case) Buyer is not in breach of its obligations hereunder, this Agreement may, at the option
of Buyer, be terminated, in which case the parties shall have no further obligations to one another
hereunder (other than the obligations under <B>Article&nbsp;XIV, Section&nbsp;11.</B><B>1(d)</B> and <B>Section&nbsp;15.6</B>, which
will survive such termination).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8.2 </B><U><B>Conditions Precedent to the Obligations of Seller to Close</B></U>. The obligations of Seller
to consummate the transactions contemplated by this Agreement are subject to each of the following
conditions being met:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the representations and warranties of Buyer contained in <B>Article&nbsp;V </B>that
is: (i)&nbsp;qualified by materiality (whether by reference to the terms &#147;material,&#148; &#147;Material,&#148;
or similar qualifiers set forth therein) shall be true and correct in all respects on and
as of the Closing Date (giving effect to such materiality qualification) as if made on and
as of such date (other than any such representation or warranty that by its terms addresses
matters only as of another specified time, in which case such representation or warranty
shall have been true and correct in all respects as of such time); and (ii)&nbsp;not so
qualified by materiality shall be true and correct in all material respects on and as of
the Closing Date as if made on and as of such date (other than any such representation or
warranty that by its terms addresses matters only as of another specified time, in which
case such representation or warranty shall have been true and correct in all material
respects as of such time).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for covenants, agreements and conditions qualified by &#147;material&#148; &#147;Material&#148;
or &#147;materiality&#148; in which case such covenants, agreements and conditions must be performed
and complied with in all respects by Buyer prior to or at the Closing, Buyer shall have
performed and complied in all material respects with (or compliance therewith shall have
been waived by Seller) each and every covenant, agreement and condition required by this
Agreement to be performed or complied with by Buyer prior to or at the Closing.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No suit, action or other proceedings shall, on the date of Closing, be pending or
threatened before any Governmental Authority seeking to restrain, prohibit, or obtain
damages or other relief in connection with the consummation of the transactions
contemplated by this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any such condition on the obligations of Seller under this Agreement is not met as of the
Closing Date, or in the event the Closing does not occur on or before the Closing Date, and (in
either case) Seller is not in breach of its obligations hereunder, this Agreement may, at the
option of Seller, be terminated, in which case the parties shall have no further obligations to one
another hereunder (other than the obligations under <B>Article&nbsp;XIV, Section&nbsp;11.</B><B>1(d)</B> and <B>Section&nbsp;15.6,</B>
which will survive such termination).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;IX</B><BR>
<U><B>Closing of Transaction</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9.1 </B><U><B>The Closing</B></U>. The closing (herein called the &#147;<B>Closing</B>&#148;) of the transaction
contemplated hereby shall take place in the offices of Thompson &#038; Knight L.L.P., at 1722 Routh
Street, Suite&nbsp;1500, Dallas, Texas, 75201, at 10:00&nbsp;a.m. Central Time, on October&nbsp;29, 2010, or at
such other date and time as the Buyer and Seller may mutually agree upon (such date and time being
herein called the &#147;<B>Closing Date</B>&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9.2 </B><U><B>Seller&#146;s Closing Obligations</B></U>. At the Closing, Seller shall:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) execute, acknowledge and deliver to Buyer a conveyance of the Properties (the
&#147;<B>Conveyance</B>&#148;), in the form attached hereto as <B>Exhibit&nbsp;9.2(a)</B>, effective as to runs of oil
and deliveries of gas as of 9:00 o&#146;clock a.m., Local Time for the appropriate Properties on
October&nbsp;1, 2010 (the &#147;<B>Effective Date</B>&#148;);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deliver a copy of the resolutions or other applicable documents evidencing
authority by the governing body of Seller authorizing Seller to execute and deliver this
Agreement and all related documents and instruments and to perform its obligations
hereunder and thereunder, which copy shall be certified by the secretary or assistant
secretary of Seller;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) deliver to Buyer a certificate of existence and good standing issued by the
Secretary of State of Delaware and dated no earlier than five business days prior to the
Closing Date;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) deliver original, executed releases for any liens on the Properties that secure
Seller&#146;s credit facility or any other obligation of Seller with an adequate number of
counterparts for recording said releases; and,
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) execute and deliver to Buyer an affidavit or other certification (as provided by
the Code) that Seller is not a &#147;foreign person&#148; within the meaning of Section&nbsp;1445 (or
similar provisions) of the Code (i.e., Seller is not a non-resident alien, foreign
corporation, foreign partnership, foreign trust or foreign estate as those terms are
defined in the Code and regulations promulgated thereunder in the form attached hereto as
<B>Exhibit&nbsp;9.2(d)</B>).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9.3 </B><U><B>Buyer&#146;s Closing Obligations</B></U>. At the Closing, Buyer shall deliver to the Seller, by
wire transfer in immediately available funds to an account designated by Seller in a bank located
in the United States, an amount equal to the Adjusted Purchase Price.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;X</B><BR>
<U><B>Certain Accounting Adjustments</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10.1 </B><U><B>Adjustments</B></U>. Appropriate adjustments shall be made between Buyer and Seller so that
(a)&nbsp;all expenses (including all drilling costs, all capital expenditures, and all overhead charges
under applicable operating agreements, and all other overhead charges actually charged by third
parties) which are incurred in the operation of the Properties on or after the Effective Date will
be borne by Buyer, and all proceeds (net of applicable production, severance, and similar Taxes)
from the sale of oil, gas and/or other minerals produced from the Oil and Gas Properties on or
after the Effective Date will be received by Buyer, and (b)&nbsp;all expenses (including all drilling
costs, all capital expenditures, and all overhead charges under applicable operating agreements,
and all other overhead charges actually charged by third parties)which are incurred in the
operation of the Properties before the Effective Date will be borne by Seller and all proceeds (net
of applicable production, severance, and similar Taxes) from the sale of oil, gas and/or other
minerals produced from the Oil and Gas Properties before the Effective Date will be received by
Seller. It is agreed that, in making such adjustments, all oil and all other hydrocarbons which
were produced from the Oil and Gas Properties and which were, on the Effective Date, stored in
tanks located on the Oil and Gas Properties and above pipeline connections shall be deemed to have
been produced before the Effective Date (it is recognized that such tanks may not have been gauged
on the Effective Date for the purposes of this Agreement and that determination of the volume of
such oil in storage will be based on the best available data, which may include estimates). For
purposes of this <B>Section&nbsp;10.1, </B>oil in storage will be valued at the weighted average price for oil
produced from the Oil and Gas Properties during the month of October&nbsp;2010 after deduction for
trucking, transportation and other expenses associated with the sale of oil and condensate. Ad
valorem personal property and similar Taxes attributable to the Properties assessed with respect to
a period which begins before, and ends after, the Effective Date shall be prorated based on the
number of days in such period which fall on each side of the Effective Date (with the day on which
the Effective Date falls being counted in the period after the Effective Date); it being expressly
understood and agreed by the parties that such ad valorem personal property and similar Taxes will
be based on the January&nbsp;1, 2010 assessed values of the Properties, as reflected in the tax
statement billings rendered by the applicable Governmental Authorities to Buyer, as operator, in
2010. Without limiting the foregoing allocation of liability for ad valorem and similar Taxes,
Buyer shall be responsible for the administrative function of sending payment for the ad valorem
and similar Taxes on the Properties to the appropriate Governmental Authority and for the filing of
any related Tax Returns. No consideration shall be given to the local, state or federal income Tax
liabilities of any party. For the avoidance of doubt, (a)&nbsp;any advances made by Seller prior to
Closing for the drilling of wells or other operations on the Properties (the &#147;<B>Prepaid Amounts</B>&#148;) and
(b)&nbsp;any reimbursements, refunds, rebates, credits or adjustments received by Buyer at any time for
severance taxes paid with respect to production from the Properties before the Effective Date or
for any other expenses relating to the Properties which were charged to Seller,<U></U>shall be
subject to the foregoing adjustment provisions, and, in the case of the reimbursements, refunds,
rebates, credits or adjustments referred to in clause (b)&nbsp;above, shall be credited to Seller.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10.2 </B><U><B>Closing and Post-Closing Accounting Settlements</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At or before Closing, the parties shall determine, based upon the best information
reasonably available to them, the amount of the adjustments provided for in <B>Section&nbsp;10.1</B>.
If the amount of adjustments so determined which would result in a credit to Buyer exceed
the amount of adjustments so determined which would result in a credit to Seller, Buyer
shall receive a credit, for the amount of such excess, against the Purchase Price to be
paid at Closing, and, if the converse is true, Buyer shall pay to Seller, at Closing (in
addition to amounts otherwise then owed), the amount of such excess.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within 10 business days after Closing, the parties shall determine, based upon the
best information reasonably available to them, the amount of the adjustments provided for
in <B>Section&nbsp;10.</B>1 with respect to the Prepaid Amounts (to the extent such adjustments have
not already been taken into account pursuant to paragraph (a)&nbsp;above), and shall make any
such adjustments by appropriate payments from Buyer to Seller. These adjustments and the
appropriate payments from Buyer shall be determined (i)&nbsp;on an individual AFE-by-AFE basis
and (ii)&nbsp;independently of adjustments provided for in <B>Section&nbsp;10.1 </B>with respect to expenses
other than those relating to Prepaid Amounts, which such other adjustments shall be made
pursuant to <B>paragraphs (c) </B>and <B>(d) </B>below.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before 45&nbsp;days after Closing, Buyer and Seller shall review any additional
information which may then be available pertaining to the adjustments provided for in
<B>Section&nbsp;10.1</B>, shall determine if any additional adjustments (whether the same be made to
account for expenses or revenues not considered in making the adjustments made at Closing,
or to correct errors made in such adjustments) should be made beyond those made at Closing,
and shall make any such adjustments by appropriate payments from Seller to Buyer or from
Buyer to Seller.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Should any additional items which would be the subject of adjustments provided for
in <B>Section&nbsp;10.1 </B>above come to the attention of Buyer or Seller after such adjustments under
<B>paragraph (c) </B>above are concluded, such adjustments shall be made by appropriate payments
from Buyer to Seller or from Seller to Buyer.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer shall afford Seller and its representatives reasonable access to, and furnish
Seller with copies of, all Buyer&#146;s books and records and other documents pertaining to the
items which are or should be the subject of the adjustments provided for in <B>Section&nbsp;10.1 </B>to
enable Seller to verify all such adjustments.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10.3 </B><U><B>No Sales Taxes.</B></U> No sales, transfer or similar Tax will be collected at Closing in
connection with this transaction. If, however, this transaction is later deemed to be subject to
sales, transfer or similar Tax, at any time, for any reason, Buyer shall be responsible for all
sales, transfer or other similar Taxes (including related penalty, interest or legal costs) due by
virtue of this transaction on the Properties transferred pursuant hereto (regardless of the person
liable for such Taxes under applicable Law) and shall remit such Taxes at that time. Seller and
Buyer agree to cooperate with each other in all reasonable respects in demonstrating that the
requirements for any exemption from such Taxes have been met.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;XI</B><BR>
<U><B>Post Closing Obligations </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11.1 </B><U><B>Indemnification Obligations</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall, on the date of Closing, agree (and, upon delivery to Buyer of the
Conveyance, shall be deemed to have agreed), subject to the limitations and procedures
contained in this <B>Section&nbsp;11.1</B>, and in <B>Sections&nbsp;11.2, 11.3</B>, and <B>15.1</B>, following the
Closing, to remain responsible for and indemnify, defend and hold Buyer (and for purposes
of <B>Article&nbsp;XI</B>, its directors, officers, employees and attorneys, contractors,
subcontractors, and agents) harmless from and against any and all claims, obligations,
actions, liabilities, damages, expenses (including, without limitation, court costs and
consultants&#146; and attorneys&#146; fees) or losses (collectively, &#147;<B>Buyer&#146;s Losses</B>&#148;) arising out
of, relating to or caused by (i)&nbsp;any misrepresentation or breach of any warranty, covenant
or agreement of Seller contained in this Agreement or any certificate delivered by Seller
at the Closing, (ii)&nbsp;any personal injury (including death) or property damage sustained on
or in connection with the Properties arising in any way from any actions
conducted by Seller&#146;s directors, officers, employees, contractors and agents on the
Properties prior to the Closing, or (iii)&nbsp;the Excluded Properties and Excluded Liabilities.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer shall, on the date of Closing, agree (and, upon delivery to Buyer of the
Conveyance, shall be deemed to have agreed), subject to the limitations and procedures
contained in this <B>Section&nbsp;11.1</B>, and in <B>Sections&nbsp;11.2, 11.3</B>, and <B>15.1</B>, following the
Closing, to remain responsible for and indemnify, defend and hold Seller (and for purposes
of <B>Article&nbsp;XI</B>, its affiliates and its and their respective directors, officers, employees
and attorneys, contractors, subcontractors, and agents) harmless from and against any and
all claims, obligations, actions, liabilities, damages, costs, expenses (including, without
limitation, court costs and consultants&#146; and attorneys&#146; fees), or losses (collectively,
&#147;<B>Seller&#146;s Losses</B>&#148;) arising out of, relating to or caused by (i)&nbsp;any misrepresentation or
breach of any warranty, covenant or agreement of Buyer contained in this Agreement, (ii)
the ownership or operation of the Properties after the Effective Date, or (iii)&nbsp;the
condition of the Properties on, prior to or after the Effective Date (including, without
limitation, all obligations to properly plug and abandon, or replug and re-abandon, wells
located on the Properties, to restore the surface of the Properties and to comply with, or
to bring the Properties into compliance with, Applicable Environmental Laws, including
conducting any remediation activities which may be required on or otherwise in connection
with activities on the Properties), regardless of whether such condition or the events
giving rise to such condition arose or occurred before or after the Effective Date.
Notwithstanding anything to the contrary contained herein, Buyer shall not be obligated to
indemnify or hold Seller harmless for any of Buyer&#146;s Losses.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in <B>paragraphs (a) </B>and <B>(b) </B>above shall b<B>e </B>construed <B>as </B>overriding the
adjustment procedure provided for in <B>Article&nbsp;X.</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding anything to the contrary in this Agreement, the termination of
this Agreement under <B>Article&nbsp;VIII, </B>shall not relieve either party from liability for any
willful or negligent failure to perform or observe in any material respect any of its
agreements or covenants contained herein which are to be performed or observed at or prior
to Closing. In the event this Agreement terminates under <B>Article&nbsp;VIII </B>because a party has
willfully or negligently failed to perform or observe in any material respect any of its
agreements or covenants contained herein which are to be performed at or prior to Closing,
then the other party shall be entitled to all remedies available at law or in equity and
shall be entitled to recover court costs and reasonable attorneys&#146; fees in addition to any
other relief to which such party may be entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;11.2 </B><U><B>Indemnification Procedures</B></U>.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If indemnification pursuant to <B>Sections&nbsp;11.</B><B>1(a)</B> or <B>11.</B><B>1(b)</B> is sought, the party
seeking indemnification (the &#147;<B>Indemnitee</B>&#148;) shall give written notice to the indemnifying
party of an event giving rise to the obligation to indemnify, describing in reasonable
detail the factual basis for such claim (&#147;<B>Indemnification Claim</B>&#148;), and, provided that the
indemnifying party acknowledges that it is liable for the matters that gave rise to such
Indemnification Claim, shall allow the indemnifying party to assume and conduct the defense
of the claim or action and cooperate with the indemnifying party in the defense thereof,
provided that the omission to give such notice to the indemnifying party shall not relieve
the indemnifying party from any liability which it may have to the Indemnitee, except to
the extent that the Indemnification Claim arises from a third party claim (&#147;<B>Third Party
Claim</B>&#148;) against Indemnitee and the indemnifying party proves it was materially prejudiced
by the failure to give such notice.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Within fifteen (15)&nbsp;business days (&#147;<B>Response Period</B>&#148;) of receipt of an
Indemnification Claim, the indemnifying party shall notify Indemnitee in writing whether or
not it disputes that it is obligated to indemnify the Indemnitee as set forth in the
Indemnification Claim. Further, if such Third Party Claim is undisputed by the
indemnifying party, the indemnifying party shall have the right, within the Response
Period, to assume and conduct the defense of the Third Party Claim with counsel reasonably
satisfactory to the Indemnitee. The Indemnitee shall have the right to employ separate
counsel to represent the Indemnitee if the Indemnitee is advised by counsel that an actual
conflict of interest makes it advisable for the Indemnitee to be represented by separate
counsel and the reasonable expenses and fees of such separate counsel shall be paid by the
indemnifying party. The indemnifying party shall not control (but may participate at its
own expense in the defense of), and the Indemnitee shall be entitled to have sole control
over, the defense or settlement, compromise, admission or acknowledgment of any Third Party
Claim (i)&nbsp;as to which the indemnifying party fails to assume the defense within the
Response Period or (ii)&nbsp;to the extent the Third Party Claim seeks an order, injunction or
other equitable relief against the Indemnitee which, if successful, would materially
adversely affect the business, operations, assets, or financial condition of the Indemnitee
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The indemnifying party shall obtain the prior written approval of the Indemnitee,
which approval shall not be unreasonably withheld, before making any
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">settlement, compromise, admission, or acknowledgment of the validity of any Third
Party Claim or any liability in respect thereof if, pursuant to or as a result of such
settlement, compromise, admission, or acknowledgment, injunctive or other equitable relief
would be imposed against the Indemnitee or if, in the opinion of the Indemnitee, such
settlement, compromise, admission, or acknowledgment could have an adverse effect on its
business, operations, assets or financial condition. No indemnifying party shall consent
to the entry of any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by each claimant or plaintiff to each Indemnitee of a
full and unconditional release from all liability in respect of such Third Party Claim.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11.3 </B><U><B>Tax Treatment of Indemnity Payments</B></U>. Seller and Buyer agree to treat any
indemnity payment made pursuant to this Agreement as an adjustment to the Purchase Price for Tax
purposes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11.4 </B><U><B>Transfer of Files</B></U>. Seller will use its best efforts to deliver to Buyer, within ten (10)
days after the Closing, all of Seller&#146;s lease files, abstracts, and title opinions, production
records, well files, accounting records (but not including general tax and general financial
accounting records), seismic records and surveys, gravity maps, electric logs, and geological or
geophysical data and records, which relate solely and exclusively to the Properties. Seller may
retain copies of any files delivered to Buyer.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;XII</B><BR>
<U><B>Casualty Loss</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;12.1 </B><U><B>Casualty Loss</B></U>. In the event of damage by fire or other casualty to the Properties after
the Effective Date and prior to the Closing, this Agreement shall remain in full force and effect,
the Purchase Price will not be adjusted (except as provided in Article&nbsp;X), Buyer shall take title
to the Property affected by such loss, and Seller shall assign to Buyer any insurance claims
related to such damage or other casualty.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;XIII</B><BR>
<U><B>Notices</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;13.1 </B><U><B>Notices</B></U>. All notices and other communications required under this Agreement shall
(unless otherwise specifically provided herein) be in writing and be delivered personally, by
recognized commercial courier or delivery service (which provides a receipt), by facsimile (with
receipt acknowledged), by registered or certified mail (postage prepaid), or by electronic
communications, at the following addresses:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><u>If to Seller:</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Magnum Hunter Resources Corporation</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">777 Post Oak Boulevard, Suite 910</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Houston, Texas  77056</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Paul Johnston</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.:  (832) 369-6992</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email:  pjohnston@magnumhunterresources.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>If to Buyer:</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Approach Oil &#038; Gas Inc.</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One Ridgmar Centre</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6500 West Freeway, Suite 800</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fort Worth, Texas  76116</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Curtis Henderson</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: 817-989-9001</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email:  chenderson@approachresources.com</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><u>With a copy to:</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Thompson &#038; Knight LLP</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1722 Routh Street, Suite 1500</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dallas, Texas 75201</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention:  Debra Villarreal</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.:  214-880-3167</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email:  debra.villarreal@tklaw.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">All notices given by personal delivery or mail shall be effective on the date of actual receipt at
the appropriate address as provided above. Notices given by facsimile, if receipt is confirmed by
the transmitting device, shall be effective upon actual receipt if received during recipient&#146;s
normal business hours or at the beginning of the next business day after receipt if received after
recipient&#146;s normal business hours. Notices and other communications sent to an e-mail address
shall be deemed received upon the sender&#146;s receipt of an acknowledgment from the intended recipient
(such as by the &#147;return receipt requested&#148; function, as available, return e-mail or other written
acknowledgment), <U>provided</U> that if such notice or other communication is not sent during the
normal business hours of the recipient, such notice or communication shall be deemed to have been
sent at the opening of business on the next business day for the recipient. Either Buyer or Seller
may specify as its proper address any other post office address within the continental limits of
the United States by giving notice to the other party, in the manner provided in this Article, at
least ten (10)&nbsp;days prior to the effective date of such change of address.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;XIV</B><BR>
<U><B>Commissions</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;14.1 </B><U><B>Commissions</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller agrees to indemnify and hold harmless Buyer from and against any and all
claims, obligations, actions, liabilities, losses, damages, costs or expenses (including
court costs and attorneys fees) of any kind or character arising out of or resulting from
any agreement, arrangement or understanding alleged to have been made by, or on behalf of,
Seller with any broker or finder in connection with this Agreement or the transaction
contemplated hereby.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer agrees to indemnify and hold harmless Seller from and against any and all
claims, obligations, actions, liabilities, losses, damages, costs or expenses (including
court costs and attorneys fees) of any kind or character arising out of or resulting from
any agreement, arrangement or understanding alleged to have been made by, or on behalf of,
Buyer with any broker or finder in connection with this Agreement or the transaction
contemplated hereby.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;XV</B><BR>
<U><B>Miscellaneous Matters</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.1 </B><U><B>Survival of Provisions</B></U>. All representations and warranties of Seller or Buyer
contained in this Agreement or in any certificate delivered at the Closing shall survive the
Closing until the first anniversary of the Closing Date (the <B>&#147;Survival Period</B>&#148;). Any claim for
indemnification with respect to such representations and warranties must be made prior to the
expiration of the Survival Period. Notwithstanding the foregoing, the obligation of each party
hereto to indemnify any other party hereto with respect to such representations and warranties
shall continue after the expiration of the Survival Period, with respect to any matter of which the
party seeking indemnity hereunder shall have given the other party written notice as provided
herein prior to the expiration of the Survival Period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.2 </B><U><B>Further Assurances</B></U>. This transaction constitutes an assignment of the Seller&#146;s
interests in Oil and Gas Properties and all related property. Seller intended to convey each
property described in <B>Exhibit&nbsp;A </B>even though Seller&#146;s interest in such oil, gas and other minerals
may be incorrectly described in, or omitted from, such <B>Exhibit&nbsp;A</B>. In order to effectuate and
provide Buyer with the benefits of the transactions contemplated hereby, after the Closing, Seller
shall execute and deliver, and shall otherwise cause to be executed and delivered, from time to
time, such further instruments, notices, division orders, transfer orders and other documents, and
do such other and further acts and things, as may be reasonably necessary to more fully and
effectively grant, convey and assign the Properties to Buyer including, solely at Buyer&#146;s request,
the conveyance of agreements or contracts of type set forth in <B>Section&nbsp;2.1(d)</B>. Any additional
properties conveyed pursuant to this <B>Section&nbsp;15.2 </B>shall be deemed to be a Property for all purposes
of this Agreement, including the indemnification, representation and warranty provisions contained
herein.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.3 </B><U><B>Binding Effect; Successors and Assigns</B></U>. The Agreement shall be binding on the parties
hereto and their respective successors and permitted assigns. Neither party shall have the right
to assign its rights or obligations under this Agreement, without the prior written consent of the
other party first having been obtained.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.4 </B><U><B>Like-Kind Exchange</B></U>. The Seller may structure all or a portion of the transaction
contemplated in this Agreement relating to the Properties sold to the Buyer, as a like-kind
exchange under Section&nbsp;1031 of the Code in accordance with this <B>Section&nbsp;15.4 </B>(Seller, if it so
elects, herein called the &#147;<B>Electing Party</B>&#148;). Such transfer shall be effectuated by mutually
acceptable instruments, including without limitation, an exchange agreement and related assignments
and consents to assignment. If Electing Party elects to structure the transaction as a like-kind
exchange, the Electing Party shall substitute a third party, qualified intermediary (the
&#147;<B>Intermediary</B>&#148;) as the Seller of all or a portion of the Properties. The Intermediary shall be
designated in writing by the Electing Party prior to Closing. The Electing Party is and shall
remain primarily liable for the full and timely performance of each and every one of the
representations, warranties, indemnities, obligations, and undertakings ascribed to the Electing
Party under this Agreement, notwithstanding its substitution of the Intermediary, and in the event
of a breach by either Buyer, Seller, or the Intermediary, then Buyer or Seller may proceed directly
against the other without the need to join the Intermediary as a party to any action. Neither
party represents to the other party that any particular tax treatment will be given to the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">other party as a result of the Electing Party&#146;s election to structure the transaction as a
like-kind exchange. Buyer shall not incur any additional costs expenses, fees, or liabilities as a
result of or connected with expenses incurred in connection with the exercise of the rights under
this <B>Section&nbsp;15.4</B>. THE ELECTING PARTY SHALL PROTECT, INDEMNIFY, AND HOLD HARMLESS BUYER FROM ANY
LIABILITY, DAMAGES, OR COSTS, INCLUDING REASONABLE ATTORNEYS&#146; FEES, COURT COSTS, AND RELATED
EXPENSES, THAT MAY ARISE IN CONNECTION WITH ITS SECTION 1031 EXCHANGE UNDER THIS SECTION.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.5 </B><U><B>Imbalances</B></U>. On the date of Closing (and, upon the delivery to Buyer of the
Conveyances), Buyer shall succeed to the position of Seller with respect to all gas imbalances. As
a result of such succession Buyer shall (i)&nbsp;be entitled to receive any and all benefits, including
payments of proceeds of production in excess of amounts which it would otherwise be entitled to
produce and receive by virtue of ownership of the Oil and Gas Properties, which Seller would have
been entitled to receive by virtue of such positions and (ii)&nbsp;shall be obligated to suffer any
detriments (whether the same be in the form of obligations to deliver production which would have
otherwise been attributable to its ownership of the Oil and Gas Properties without receiving full
payment therefor, or be in the form of the obligation to make payment in cash) which Seller would
have been obligated to suffer by virtue of such positions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.6 </B><U><B>Expenses</B></U>. Except as otherwise expressly provided in this Agreement, each party shall
bear and pay all expenses incurred by it in connection with the transaction contemplated by this
Agreement. Buyer shall be responsible for all Conveyance and lien release recording fees and
related costs and expenses.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.7 </B><U><B>Entire Agreement &#151; Time of the Essence</B></U>. This Agreement contains the entire
understanding of the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements, understandings, negotiations, and discussions among the parties with respect to
such subject matter. Time is of the essence in this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.8 </B><U><B>Public Statements</B></U>. Either party may make any public disclosure regarding the
existence of this Agreement it believes in good faith is required by applicable law, by the rules
and regulations of the Securities and Exchange Commission or by the rules of any national
securities exchange; and, if so required, the disclosing Party shall provide the other Party with a
copy of such press release prior to the publication of such press release. This provision shall
not be construed so as to limit either party&#146;s disclosures of or about this Agreement to regulatory
authorities or to other parties as may otherwise be required by law, when in the opinion of the
party&#146;s counsel such disclosure is so required.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.9 </B><U><B>Injunctive Relief</B></U>. The parties hereto acknowledge and agree that irreparable damage
would occur in the event any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this
Agreement, and shall be entitled to enforce specifically the provisions of this Agreement, in any
court of the United States or any state thereof having jurisdiction, in addition to any other
remedy to which the parties may be entitled under this Agreement or at law or in equity.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.10 </B><U><B>Amendments</B></U>. This Agreement may be amended, modified, supplemented, restated or
discharged (and provisions hereof may be waived) only by an instrument in writing signed by the
party against whom enforcement of the amendment, modification, supplement, restatement or discharge
(or waiver) is sought.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.11 </B><U><B>Governing Law and Venue</B></U>. This Agreement shall be governed by and construed in
accordance with the internal Laws of the State of Texas applicable to a contract executed and
performed in such State, without giving effect to conflicts of laws principles requiring the
application of the Laws of another State. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION,
SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. Each of the parties hereby (a)
irrevocably submits to the exclusive jurisdiction of the state and federal courts of Dallas County,
Texas, for the purposes of any suit, action or proceeding arising out of or relating to this
Agreement, and (b)&nbsp;waives, and agrees not to assert in any such suit, action or proceeding, any
claim that (i)&nbsp;it is not personally subject to the jurisdiction of such court or of any other court
to which proceedings in such court may be appealed; (ii)&nbsp;such suit, action or proceeding is brought
in an inconvenient forum; or (iii)&nbsp;the venue of such suit, action or proceeding is improper.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.12 </B><U><B>Multiple Counterparts; Fax</B></U>. This instrument may be executed in a number of identical
counterparts, each of which for all purposes is to be deemed an original, and all of which
constitute collectively, one instrument. It is not necessary that each party hereto execute the
same counterpart so long as identical counterparts are executed by each such party hereto. This
instrument may be validly executed and delivered by facsimile or other electronic transmission.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.13 </B><U><B>Confidentiality</B></U>. Provided the Closing has occurred, during the Survival Period,
Seller shall keep all information related to the Properties in strict confidence and shall not
disclose such information to any person, except (i)&nbsp;to its accountants, attorneys, and other
representatives, (ii)&nbsp;as required by law or legal process or in connection with any legal
proceeding, (iii)&nbsp;for information that was or becomes generally publicly available other than as a
result of a disclosure by Seller in violation of this Agreement, (iv)&nbsp;for information that becomes
available to Seller on a nonconfidential basis from a third party that to Seller&#146;s knowledge, is
not bound by a similar duty of confidentiality (contractual, legal, fiduciary, or other), and (v)
for press releases permitted under <B>Section&nbsp;15.8</B>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15.14 </B><U><B>No Waiver</B></U>. The failure of either party to insist upon strict performance of any
provision hereof shall not constitute a waiver of, or estoppel against asserting, the right to
require such performance in the future, nor shall a waiver or estoppel in any one instance
constitute a waiver or estoppel with respect to a later breach of a similar nature or otherwise.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>this Agreement is executed by the parties hereto on the date set forth
above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>SELLER:<BR>
<BR>

MAGNUM HUNTER RESOURCES CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Ronald Ormand
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Ronald Ormand&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BUYER:<BR>
<BR>
APPROACH OIL &#038; GAS INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ J. Ross Craft
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">J. Ross Craft&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President &#038; CEO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
