Crude Oil Purchase Agreement between Texon L.P. and Presco Western, LLC (Contract No. CPE6866)

Contract Categories: Business Finance › Purchase Agreements
Summary

Texon L.P. and Presco Western, LLC have entered into an agreement for Texon to purchase crude oil and condensate produced from specific properties in Kansas, as listed in the attached exhibit. The price is based on the monthly average NYMEX WTI futures price minus $4.25 per barrel, with adjustments for transportation costs if needed. The agreement is effective from October 1, 2007, through September 30, 2008, and continues month-to-month unless canceled with 30 days' written notice. Texon pays Presco by wire transfer, and Presco is responsible for distributing payments to all parties with an interest in the oil.

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EX-10.6 12 a2192395zex-10_6.htm EXHIBIT 10.6
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Exhibit 10.6

*
TEXON L.P.                                                                                                                     Purchase Agreement

September 20, 2007

Re: Texan Contract No. CPE6866

Customer Ref. No.

Floyd Trujillo
Presco Western, LLC
5665 Flatiron Parkway
Boulder, CO 80301

        The following Special Provisions and the attached Texon L.P. General Provisions (Revision 7/04) constitute the entire agreement (the "Agreement") whereby Texon L.P. (Buyer") agrees to buy and Presco Western, LLC ("Seller") agrees to sell crude oil and/or condensate under the terms and conditions as set forth below.

SPECIAL PROVISIONS

 
    
QUALITY   Kansas Common crude oil

QUANTITY
 
Equal to Seller's owned or controlled oil/condensate production from the properties/leases described in the Exhibit attached hereto.

PRICE
 
Each calendar month's arithmetic average of the settlement prices for the Nearby Light Sweet crude oil futures contract (WTI) on the New York Mercantile Exchange (NYMEX) for each day the NYMEX settles the Nearby WTI contract (Mere days only), less $4.25 per barrel.

 
 
In the event that the transportation cost and/or tariff changes during the term of this Agreement, Buyer reserves the right to revise the contract accordingly.

DELIVERY
 
Delivered into Buyer designated carriers from the properties/leases described in the Exhibit attached hereto.

TERM
 
Effective October 1, 2007 through September 30, 2008 and continuing month to month thereafter unless either party cancels with thirty (30) days prior written notice. Cancellation shall become effective on the first day of the month following such notice period.

PAYMENT
 
Buyer shall pay Seller or their designee 100% of the amount due for crude oil purchased hereunder, excluding all applicable taxes, by wire transfer on the 20th day of the month following the month of delivery. (See paragraph 3 of the General Provisions attached hereto).

        Seller or their designee shall make all revenue distribution payments to all royalty interest owners and any and all other persons who may have a right, title, interest, or claim to any part of the payments made by Buyer to Seller hereunder. SELLER AGREES TO PROTECT, INDEMNIFY AND HOLD BUYER HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, COSTS, ATTORNEY'S FEES, EXPENSES OR LIABILITY OF ANY NATURE WHICH BUYER MAY SUFFER BY REASON OF BUYER MAKING PAYMENTS AS HEREIN PROVIDED,


Texon L.P.
 
 
 
 
 
 
 
Presco Western , LLC
 
 

By: /s/ W.K. Jones
 
 
 
Date: 9/26/07
 
 
 
By: /s/ Floyd Trujillo
 
 
 
Date: 10/1/07
 
 
  

W.K. Jones
Sr. Vice President, Crude Oil
 
 
 
 
 
 
 
 
 
 
EXHIBIT
  Texon L.P. Contract Number: CPE 6866
Amendment No. 0 		 
LEASE NAME
  FIELD   COUNTY   STATE   PREMIUM  
GCC 1-530         Finney   KS     (4.250000 )
GCC 6-C30-23-33         Finney   KS     (4.250000 )
GCH 4-D36-26-32         Finney   KS     (4.250000 )
GCH 5-D36-26-32         Finney   KS     (4.250000 )
Irene 1-1632         Finney   KS     (4.250000 )
Jehle 1-1624         Finney   KS     (4.250000 )
JLM Farms 1-827         Finney   KS     (4.250000 )
JLM Farms 4-127-26-32         Finney   KS     (4.250000 )
Larson 1-731         Finney   KS     (4.250000 )
Peitz 1-531         Finney   KS     (4.250000 )
Webdell 3-3         Finney   KS     (4.250000 )
Barclay College 6-029-30-38         Grant   KS     (4.250000 )
Bunn 1         Grant   KS     (4.250000 )
Johnson Heirs 1         Grant   KS     (4.250000 )
Johnson Heirs 2         Grant   KS     (4.250000 )
Lucas Trust 4-K29-30-38         Grant   KS     (4.250000 )
Lucas Trust 5-M29-30-38         Grant   KS     (4.250000 )
Scherling W B 1-29         Grant   KS     (4.250000 )
Scherling W B 2-29         Grant   KS     (4.250000 )
Shelley RL         Grant   KS     (4.250000 )
Anton 2-518         Haskell   KS     (4.250000 )
Bergner 7-P17-28-34         Haskell   KS     (4.250000 )
Black Luciene A         Haskell   KS     (4.250000 )
Black Trusts 17-07-30-33         Haskell   KS     (4.250000 )
Black Trusts 18-P7-30-33         Haskell   KS     (4.250000 )
Black Trusts 20-D7-30-33         Haskell   KS     (4.250000 )
Black Trusts 21-G7-30-33         Haskell   KS     (4.250000 )
Black Trusts 23-E7-30-33 ti         Haskell   KS     (4.250000 )
Brennan 1         Haskell   KS     (4.250000 )
Brennan Gas Unit 2         Haskell   KS     (4.250000 )
Brookover EC 1A         Haskell   KS     (4.250000 )
Cox 1-162         Haskell   KS     (4.250000 )
Cox 1-8         Haskell   KS     (4.250000 )
Cox 2-12         Haskell   KS     (4.250000 )
Cox 6-P2-28-33         Haskell   KS     (4.250000 )
Diaden Farms 1-B2-29-33         Haskell   KS     (4.250000 )
Diaden Farms 3-K15-30-32         Haskell   KS     (4.250000 )
Diaden Farms 4-J15-30-32         Haskell   KS     (4.250000 )

2

EXHIBIT
  Texon L.P. Contract Number: CPE 6866
Amendment No. 0 		 
LEASE NAME
  FIELD   COUNTY   STATE   PREMIUM  
Diaden Farms 5-B15-30-32         Haskell   KS     (4.250000 )
E Hall 1-K16-30-32         Haskell   KS     (4.250000 )
E Hall 5-N16-30-32         Haskell   KS     (4.250000 )
E Hall 6-P16-30-32         Haskell   KS     (4.250000 )
E Hall 8-M16-30-32         Haskell   KS     (4.250000 )
E Hall 9-C16-30-32         Haskell   KS     (4.250000 )
Earlene Black 1-817         Haskell   KS     (4.250000 )
Edna Cox 1-138         Haskell   KS     (4.250000 )
EE & L Stalker 1-1430         Haskell   KS     (4.250000 )
Elliott 1         Haskell   KS     (4.250000 )
Elliott 2         Haskell   KS     (4.250000 )
Ellsaesser 2         Haskell   KS     (4.250000 )
Ellsaesser Gas Unit A 1         Haskell   KS     (4.250000 )
ELS Properties 1-1030         Haskell   KS     (4.250000 )
Eric Bradley 1-17         Haskell   KS     (4.250000 )
Feight A 1-27         Haskell   KS     (4.250000 )
Feight A 4-27         Haskell   KS     (4.250000 )
Feight A 5 Lower         Haskell   KS     (4.250000 )
Feight A 5 Upper         Haskell   KS     (4.250000 )
Feight A 6 (SWDW)         Haskell   KS     (4.250000 )
Garner 1-1624         Haskell   KS     (4.250000 )
Garner 11-J24-30-34         Haskell   KS     (4.250000 )
Garner 12-124-30-34         Haskell   KS     (4.250000 )
Grant Maurice 1-30         Haskell   KS     (4.250000 )
Hall S G 1         Haskell   KS     (4.250000 )
Hall S G 2         Haskell   KS     (4.250000 )
Hoffman 3-O19-30-32         Haskell   KS     (4.250000 )
Hon 1-930         Haskell   KS     (4.250000 )
James Unit A A B 1         Haskell   KS     (4.250000 )
Kelman A1         Haskell   KS     (4.250000 )
Kilgore 5-E33-29-39         Haskell   KS     (4.250000 )
Koehn 5-F2-28-33         Haskell   KS     (4.250000 )
Lavelette 1-C12-27-33         Haskell   KS     (4.250000 )
LC Black 1-417         Haskell   KS     (4.250000 )
Leonard 1         Haskell   KS     (4.250000 )
McKinley 1-1519         Haskell   KS     (4.250000 )
McKinley 15-P19-30-33         Haskell   KS     (4.250000 )
McKinley 16-I19-30-33         Haskell   KS     (4.250000 )
Megan Janae 1-30         Haskell   KS     (4.250000 )

3

EXHIBIT
  Texon L.P. Contract Number: CPE 6866
Amendment No. 0 		 
LEASE NAME
  FIELD   COUNTY   STATE   PREMIUM  
Mertia Ammerman 1         Haskell   KS     (4.250000 )
Mertia Ammerman 2         Haskell   KS     (4.250000 )
Murphy Trust 1         Haskell   KS     (4.250000 )
Murphy Trust 2         Haskell   KS     (4.250000 )
Nanninga Trust 1-430         Haskell   KS     (4.250000 )
Nanninga Trust 34-E30-30-33         Haskell   KS     (4.250000 )
Preedy Walter E 1         Haskell   KS     (4.250000 )
Preedy Walter E 3         Haskell   KS     (4.250000 )
RB Garner 2         Haskell   KS     (4.250000 )
Riphahn 13-035-28-34         Haskell   KS     (4.250000 )
Roger Wilson 1-519         Haskell   KS     (4.250000 )
Schnellbacher A-4         Haskell   KS     (4.250000 )
Stalker 1-23         Haskell   KS     (4.250000 )
Stalker Etal 28-I30-30-33         Haskell   KS     (4.250000 )
Stalker Etal 29-O30-30-33         Haskell   KS     (4.250000 )
Stalker Etal 30-K30-30-33         Haskell   KS     (4.250000 )
Stalker Etal 31-A30-30-33         Haskell   KS     (4.250000 )
Stalker Etal 32-H30-30-33         Haskell   KS     (4.250000 )
Stoops Webber 5         Haskell   KS     (4.250000 )
Stoops Webber 1         Haskell   KS     (4.250000 )
Stoops Webber 4         Haskell   KS     (4.250000 )
SWLVLU I12         Haskell   KS     (4.250000 )
SWLVLU I14         Haskell   KS     (4.250000 )
SWLVLU I19         Haskell   KS     (4.250000 )
SWLVLU I21         Haskell   KS     (4.250000 )
SWLVLU I22         Haskell   KS     (4.250000 )
SWLVLU P12         Haskell   KS     (4.250000 )
SWLVLU P21         Haskell   KS     (4.250000 )
SWLVLU P22         Haskell   KS     (4.250000 )
SWLVLU P23         Haskell   KS     (4.250000 )
SWLVLU P24         Haskell   KS     (4.250000 )
Tindall Spanier 1         Haskell   KS     (4.250000 )
Watkins 2-N17-30-32         Haskell   KS     (4.250000 )
Watkins Gas Un F-4         Haskell   KS     (4.250000 )
Watkins Gas Unit F3         Haskell   KS     (4.250000 )
Winter 13-M8-30-33         Haskell   KS     (4.250000 )
Winter 14-N8-30-33         Haskell   KS     (4.250000 )
Winter 15-M8-30-33         Haskell   KS     (4.250000 )
Wright B 2B         Haskell   KS     (4.250000 )

4

EXHIBIT
  Texon L.P. Contract Number: CPE 6866
Amendment No. 0 		 
LEASE NAME
  FIELD   COUNTY   STATE   PREMIUM  
Wright C C1         Haskell   KS     (4.250000 )
Wright GU B1         Haskell   KS     (4.250000 )
Wyatt Trusts 9-N16-30-33         Haskell   KS     (4.250000 )
Fletcher 7-J21-23-37         Kearny   KS     (4.250000 )
Kisel 1-1215-2         Kearny   KS     (4.250000 )
Miles 1-1128         Kearny   KS     (4.250000 )
BCF Warring Trust 2         Morton   KS     (4.250000 )
Blackwell A1         Morton   KS     (4.250000 )
BOWKER         Morton   KS     (4.250000 )
Bowker Gas Unit B1 1-2         Morton   KS     (4.250000 )
Dos Reatas 5-E26-32-40         Morton   KS     (4.250000 )
Dos Reatas 6-M26-32-40         Morton   KS     (4.250000 )
Johns 1-1324         Morton   KS     (4.250000 )
Milburn 5-N28-31-39         Morton   KS     (4.250000 )
Osborne B-3         Morton   KS     (4.250000 )
Trahern 6-G20-31-39         Morton   KS     (4.250000 )
3M Farms 2-17         Seward   KS     (4.250000 )
Chandler Carroll 1-19         Seward   KS     (4.250000 )
Conard 1-20         Seward   KS     (4.250000 )
Conard 2-20         Seward   KS     (4.250000 )
Lemert B H 1         Seward   KS     (4.250000 )
Lower 1-18         Seward   KS     (4.250000 )
Lower 1-20         Seward   KS     (4.250000 )
Lower 2-20         Seward   KS     (4.250000 )
Wendy Marie 1-30         Seward   KS     (4.250000 )
Abbey Michelle 1-35         Stanton   KS     (4.250000 )
Amanda Jill 1-36         Stanton   KS     (4.250000 )
Amber Michelle 1-34         Stanton   KS     (4.250000 )
Andrea Frances 1-21         Stanton   KS     (4.250000 )
Andrea Lyn 1-9         Stanton   KS     (4.250000 )
Bryan Daniel 1-34         Stanton   KS     (4.250000 )
Christopher Jared 1-8         Stanton   KS     (4.250000 )
Collingwood 1-28         Stanton   KS     (4.250000 )
Esser 2-16         Stanton   KS     (4.250000 )
Federal Land Bank 4-21         Stanton   KS     (4.250000 )
Federal Land Bank 5-21         Stanton   KS     (4.250000 )
Fell Gas Unit 4A         Stanton   KS     (4.250000 )
Garay 6-J21-29-39         Stanton   KS     (4.250000 )
Jay Morris 1-8         Stanton   KS     (4.250000 )

5

EXHIBIT
  Texon L.P. Contract Number: CPE 6866
Amendment No. 0 		 
LEASE NAME
  FIELD   COUNTY   STATE   PREMIUM  
Kayla Marie 1-2         Stanton   KS     (4.250000 )
Kaylee Brooks 1-35         Stanton   KS     (4.250000 )
KU 6-120-29-39         Stanton   KS     (4.250000 )
KU 7-J20-29-39         Stanton   KS     (4.250000 )
KU 8-P20-29-39         Stanton   KS     (4.250000 )
KU 9-P20-29-39         Stanton   KS     (4.250000 )
Lynn Stacy 1-22         Stanton   KS     (4.250000 )
McPherson College 4-E21-29-39         Stanton   KS     (4.250000 )
McPherson College 5-F21-29-39         Stanton   KS     (4.250000 )
Mitchell Trust 5-E23-29-40         Stanton   KS     (4.250000 )
R & L Farms 1-28         Stanton   KS     (4.250000 )
Sarah Jane 1-34         Stanton   KS     (4.250000 )
Shonn Gregory 1-35         Stanton   KS     (4.250000 )
Trent David 1-23         Stanton   KS     (4.250000 )
Wade Allen 1-36         Stanton   KS     (4.250000 )
Western Feed Yard 1-1133         Stanton   KS     (4.250000 )
Western Feed Yard 2-1433         Stanton   KS     (4.250000 )
Williams 1-L21-29-39         Stanton   KS     (4.250000 )
Williams 2-L21-29-39         Stanton   KS     (4.250000 )
Williams 3-K21-29-39         Stanton   KS     (4.250000 )
Williams 4-L21-29-39         Stanton   KS     (4.250000 )
Wilson Unit 1         Stanton   KS     (4.250000 )
Yardley Frederick 1-25         Stanton   KS     (4.250000 )
Yashell Shirin 1-35         Stanton   KS     (4.250000 )
Josline B-2         Stevens   KS     (4.250000 )
Swalar A1         Stevens   KS     (4.250000 )
Swalar B1         Stevens   KS     (4.250000 )


11757 Katy Freeway ° Suite 1400 ° Houston, Texas 77079 ° Phone 281 ###-###-#### ° FAX 281 ###-###-####

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