Second Amendment to Participation Agreement, by and between McCabe Petroleum Corporation, Gregory McCabe and Hudspeth Oil Corporation, dated December 31, 2015

Exhibit 10.18

Second Amendment to Participation Agreement

This Second Amendment to Participation Agreement (this “2nd Amendment”), by and between MCCABE PETROLEUM CORPORATION, a Texas Corporation, 500 W. Texas Ave., Ste. 890, Midland, Texas 79701 (“MPC”), GREG MCCABE, INDIVIDUALLY, whose address is 500 W. Texas Ave., Ste. 890, Midland, Texas 79701 (“McCabe”) and HUDSPETH OIL CORPORATION, whose address is 5700 W. Plano Parkway, Suite 3600, Plano, Texas 75093 (“Hudspeth”). MPC, McCabe and Hudspeth are sometimes hereinafter sometimes hereinafter referred to as the “Parties”).

RECITALS

WHEREAS, on September 23, 2014, the Parties entered into that certain Participation Agreement (“Participation Agreement”) covering the assignment of certain oil and gas leases located in Hudspeth and El Paso Counties (the “Lands”);

WHEREAS, certain terms of the Participation Agreement were amended by that certain Amendment of Participation Agreement, executed by the Parties on January 2, 2015.

WHEREAS, the Parties desire to again amend certain terms of the Participation Agreement by this 2nd Amendment.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby covenant and agree as follows:

The parties to this Agreement hereby create an Area of Mutual Interest (“AMU), which includes all lands with at least one boarder within two statute miles of the land described in the attached Exhibit A and any acreage in Block G of the University Lands in Hudspeth County or Block 11 or 12, PSL, Hudspeth County.

SHALL be herein amended and replaced with the following:

The parties to this Agreement hereby create an Area of Mutual Interest (“AMI”), which includes all lands with at least one boarder within eight statute miles of the land described in the attached Exhibit A.

If Hudspeth, MPC, McCabe, their heirs, successors, assigns, parent companies, affiliates, agents or employees directly or indirectly acquires any additional leasehold interest pursuant to this Article II (Area of Mutual Interest), then MPC, its heirs, assigns or its

designee shall be shall be entitled to an overriding royalty interest in 8/8ths of the leases and all oil, gas, and other minerals produced, saved, and marketed from the lands and leases acquired (the “Override”). Such Override percentage shall be equal to the positive difference, if any, between: (i) twenty-five (25); and (ii) one-hundred (100) minus the NRI attributable to 8/8ths of the working interest in each respective lease. However, in no event shall the Override for any individual lease be greater than 5% of 8/8ths; and in the event that an acquisition of a lease subject to this paragraph is less than 8/8ths of the working interest, then the Override will be proportionately reduced by the share of working interest acquired. For example:

It is agreed that after the 90 day suspension of the continuous drilling requirement, Article V.2 shall automatically resume in all respects. The 180 day period that a new well shall be drilled shall immediately resume as if the end of this suspension period defined herein was the date of the previous well’s completion or abandonment date as defined in Article V of the Participation Agreement. For the purposes of this provision, time shall be of the essence.

Hudspeth shall furnish McCabe with monthly statements of the production, income, costs, and expenditures incurred in connection with the operation of the Contract Acreage and any additional acreage pursuant to the AMI defined herein for the preceding month, itemized sufficiently to reasonably to fulfil industry standard accounting requirements. McCabe shall have access at all reasonable times during the Project Payout period to review Hudspeth’s books and accounts pertaining to the Project Payout.

The Back-In After Payout created herein, shall apply to every extension, renewal, top lease or modification of any of the Leases taken on any of the Contract Acreage, or any portion thereof, taken by Hudspeth, its successors, assigns, parent companies, affiliates, agents or employees, and to any new lease taken by Hudspeth, its successors, assigns, parent companies, affiliates, agents or employees on the Contract Acreage, or any portion thereof, covered by the Leases within one year of the expiration, termination or surrender of any of the Leases. This provisions shall also apply to any leases taken pursuant to the AMI and the override contemplated by the AMI shall apply.

This Amendment shall be binding for all purposes on the Parties and their respective heirs, personal representatives, successors, and assigns.

IN WITNESS WHEREOF, this Amendment is executed by the Parties as of December 31, 2014, but shall be effective for all purposes on June 4, 2014 (the “Effective Date”).