Common use of Earning Clause in Contracts

Earning. A. Subject to Article 3.00 of the Farmout & Royalty Procedure, the Farmee will, upon satisfaction of its obligations with respect to the Test Well earn the following interests in the Farmout Lands: i) 100% of the Farmor’s Working Interest in the section, selected by the Farmee, upon which the Test Well was drilled, reserving unto the Farmor a 7.5% gross overriding royalty. However, if the existing Encumbrances on the Title Documents, when added to overriding royalty reserved unto the Farmor equal or exceed twenty percent (20%), then the amount of the overriding royalty interest granted to the Farmor shall be reduced so that the total amount of the Encumbrances equals twenty percent (20%), ensuring that the net revenue interest of the Farmee shall never be less than eighty percent (80%). For example, if the Farmor has earned 100% of the Farmor's Working Interest in a section of the Farmout Lands, and the Encumbrances that are attached to that section of Farmout Land are 14.5% in total, then the Farmor will have a reserved unto itself a 5.5% overriding royalty on that section of the Farmout Land. ii) Upon the Farmee having drilled 2 Test ▇▇▇▇▇ on the Farmout Lands, the Farmee shall have the option to drill 15 additional ▇▇▇▇▇ within a period of 2 Years upon the rig release of the Second Earning Well to drill up to a further 15 ▇▇▇▇▇. iii) The Working Interest acquired by the Farmee is acquired subject to the Encumbrances as identified on Schedule "A". B. Upon the Farmor having drilled 15 additional ▇▇▇▇▇, the Farmee shall have earned the following: i) 100% of the Farmor's Working Interest in the section of Farmout Lands, selected by the Farmee for each additional well drilled, reserving unto the Farmor a 7.5% gross overriding royalty. However, if the existing Encumbrances on the Title Documents, when added to overriding royalty reserved unto the Farmor equal or exceed twenty percent (20%), then the amount of the overriding royalty interest granted to the Farmor shall be reduced so that the total amount of the Encumbrances equals twenty percent (20%), ensuring that the net revenue interest of the Farmee shall never be less than eighty percent (80%). For example, if the Farmor has earned 100% of the Farmor's Working Interest in a section of the Farmout Lands, and the Encumbrances that are attached to that section of Farmout Land are 14.5% in total, then the Farmor will have a reserved unto itself a 5.5% overriding royalty on that section of the Farmout Land. ii) 100% of the Farmor's interest in the balance of the Farmout Lands, reserving unto the Farmor a 2% Overriding Royalty on the undrilled Farmout Lands iii) The Working Interest acquired by the Farmee is acquired subject to the Encumbrances as identified on Schedule "A".

Earning. A. Subject a) Upon payment and transfer of all of the cash and share consideration, as described in paragraphs 3 and 4 hereof, the Farmee shall earn a 30% UNDIVIDED WORKING INTEREST in the Farmout Lands. Farmor agrees, however, after the cash consideration described in paragraph 3 has been paid but prior to receipt of the Patch Shares, to transfer to Farmee a 30% Working Interest in the Farmout Lands and Title Documents upon acceptance or provision of satisfactory trust or or escrow arrangements by Farmee. Such trust or escrow arrangements shall continue until such time as the Patch Shares have been issued and transferred to the Farmor. b) Upon previously earning the said 30% undivided Working Interest in the Farmout Lands and completion of its obligations regarding the Year 1 Evaluation ▇▇▇▇▇, subject in each of the Evaluation ▇▇▇▇▇ to Article 3.00 of the Farmout & Royalty Procedure, the Farmee will, upon satisfaction and completion of its obligations with respect to regarding the Test Well Seismic Program, the Farmee shall earn the following interests a further 50% UNDIVIDED WORKING INTEREST (80% undivided Working Interest aggregate) in the Farmout Lands:. ic) 100% Upon Farmee earning each of the Farmor’s Working Interest Interests provided for in the sectionforegoing sub-clauses of this Article, selected by Farmor shall, at request of Farmee, transfer to it the interests earned hereunder. Until such time as the Farmee has received a registrable transfer of its interests earned hereunder, Farmor agrees to hold the interests earned hereunder in trust for the benefit of the Farmee, upon which the Test Well was drilled, reserving unto the Farmor a 7.5% gross overriding royalty. However, if the existing Encumbrances on the Title Documents, when added to overriding royalty reserved unto the Farmor equal or exceed twenty percent (20%), then the amount of the overriding royalty interest granted to the Farmor shall be reduced so that the total amount of the Encumbrances equals twenty percent (20%), ensuring that the net revenue interest of the Farmee shall never be less than eighty percent (80%). For example, if the Farmor has earned 100% of the Farmor's Working Interest in a section of the Farmout Lands, and the Encumbrances that are attached to that section of Farmout Land are 14.5% in total, then the Farmor will have a reserved unto itself a 5.5% overriding royalty on that section of the Farmout Land. ii) Upon the Farmee having drilled 2 Test ▇▇▇▇▇ on the Farmout Lands, the Farmee shall have the option to drill 15 additional ▇▇▇▇▇ within a period of 2 Years upon the rig release of the Second Earning Well to drill up to a further 15 ▇▇▇▇▇. iii) The Working Interest acquired by the Farmee is acquired subject to the Encumbrances as identified on Schedule "A". B. Upon the Farmor having drilled 15 additional ▇▇▇▇▇, the Farmee shall have earned the following: i) 100% of the Farmor's Working Interest in the section of Farmout Lands, selected by the Farmee for each additional well drilled, reserving unto the Farmor a 7.5% gross overriding royalty. However, if the existing Encumbrances on the Title Documents, when added to overriding royalty reserved unto the Farmor equal or exceed twenty percent (20%), then the amount of the overriding royalty interest granted to the Farmor shall be reduced so that the total amount of the Encumbrances equals twenty percent (20%), ensuring that the net revenue interest of the Farmee shall never be less than eighty percent (80%). For example, if the Farmor has earned 100% of the Farmor's Working Interest in a section of the Farmout Lands, and the Encumbrances that are attached to that section of Farmout Land are 14.5% in total, then the Farmor will have a reserved unto itself a 5.5% overriding royalty on that section of the Farmout Land. ii) 100% of the Farmor's interest in the balance of the Farmout Lands, reserving unto the Farmor a 2% Overriding Royalty on the undrilled Farmout Lands iii) The Working Interest acquired by the Farmee is acquired subject to the Encumbrances as identified on Schedule "A".

Earning. A. Subject a) Upon making all of the cash payments, as described in paragraphs 3 hereof, the Farmee shall earn a 25% UNDIVIDED WORKING INTEREST in the Farmout Lands. b) Upon previously earning the said 25% undivided Working Interest in the Farmout Lands and completion of its obligations regarding the Year 1 Evaluation ▇▇▇▇▇, subject in each of the Evaluation ▇▇▇▇▇ to Article 3.00 of the Farmout & Royalty Procedure, the Farmee will, upon satisfaction and completion of its obligations with respect to regarding the Test Well Year 1 Seismic Program, the Farmee shall earn the following interests a further 25% UNDIVIDED WORKING INTEREST (50% undivided Working Interest aggregate) in the Farmout Lands: i) 100% of the Farmor’s Working Interest in the section, selected by the Farmee, upon which the Test Well was drilled, reserving unto the Farmor a 7.5% gross overriding royalty. However, if the existing Encumbrances on the Title Documents, when added to overriding royalty reserved unto the Farmor equal or exceed twenty percent (20%), then the amount of the overriding royalty interest granted to the Farmor shall be reduced so that the total amount of the Encumbrances equals twenty percent (20%), ensuring that the net revenue interest of the Farmee shall never be less than eighty percent (80%). For example, if the Farmor has earned 100% of the Farmor's Working Interest in a section of the Farmout Lands, and the Encumbrances that are attached to that section of Farmout Land are 14.5% in total, then the Farmor will have a reserved unto itself a 5.5% overriding royalty on that section of the Farmout Land. iic) Upon making the Farmee having drilled cash payment described in sub-paragraph 6(a) hereof and upon completion of its obligations regarding the Year 2 Test ▇▇▇▇▇ on the Farmout Lands, the Farmee shall have the option to drill 15 additional ▇▇▇▇▇ within a period of 2 Years upon the rig release of the Second Earning Well to drill up to a further 15 ▇▇▇▇▇. iii) The Working Interest acquired by the Farmee is acquired subject to the Encumbrances as identified on Schedule "A". B. Upon the Farmor having drilled 15 additional Evaluation ▇▇▇▇▇, subject in each of the Evaluation ▇▇▇▇▇ to Article 3.00 of the Farmout & Royalty Procedure, and completion of its obligations regarding the Year 2 Seismic Program, all as provided in paragraph 6 hereof, the Farmee shall have earned the following: i) 100earn a further 25% of the Farmor's UNDIVIDED WORKING INTEREST (75% undivided Working Interest in the section of Farmout Lands, selected by the aggregate after Farmee for each additional well drilled, reserving unto the Farmor a 7.5% gross overriding royalty. However, if the existing Encumbrances on the Title Documents, when added to overriding royalty reserved unto the Farmor equal or exceed twenty percent (20%has earned under sub-clauses 8(a), then the amount of the overriding royalty interest granted to the Farmor shall be reduced so that the total amount of the Encumbrances equals twenty percent (20%), ensuring that the net revenue interest of the Farmee shall never be less than eighty percent b) and (80%). For example, if the Farmor has earned 100% of the Farmor's Working Interest c) hereof) in a section of the Farmout Lands, and the Encumbrances that are attached to that section of Farmout Land are 14.5% in total, then the Farmor will have a reserved unto itself a 5.5% overriding royalty on that section . d) Upon Farmee earning each of the Farmout Land. ii) 100% Working Interests provided for in the foregoing sub-clauses of this Article, Farmor shall, at request of Farmee, transfer to it the interests earned hereunder. Until such time as the Farmee has received a registrable transfer of its interests earned hereunder, Farmor agrees to hold the interests earned hereunder in trust for the benefit of the Farmor's interest in the balance of the Farmout Lands, reserving unto the Farmor a 2% Overriding Royalty on the undrilled Farmout Lands iii) The Working Interest acquired by the Farmee is acquired subject to the Encumbrances as identified on Schedule "A"Farmee.