Page 30 - Petrospex_Elaine Prospect

20. TERM OF AGREEMENT

Providing that the Operator is not removed by the Owners owning 51% or more
of the Working Interest collectively, this Agreement shall remain in full force and
effect as to the Oil and Gas Leases and/or Oil and Gas Interests subject to it for so
long as any of the Oil and Gas Leases subject to this Agreement remain or are
continued in force as to any part of the Contract Area, whether by production,
extension, renewal, or otherwise; provided, however, no Party shall ever be construed
as having any right, title, or interest in or to any Lease or Oil and Gas Interest
contributed by any other Party beyond the term of this Agreement.

The termination of this Agreement shall not relieve any Party from any
expense, liability, or other obligation or any remedy which has accrued or attached
prior to the date of termination.

On termination of and the satisfaction of all obligations under this Agreement,
If a Memorandum of this Operating Agreement has been filed of record, Operator is
authorized to file of record in all necessary recording offices a notice of termination,
and each Party agrees to execute a notice of termination as to Operator’s interest, on
request of Operator, if Operator has satisfied all its financial obligations.

21. MISCELLANEOUS

A. Execution:

This Agreement shall be binding on Owner when this Agreement or a
counterpart of it has been executed by Owner and Operator.

B. Successors and Assigns:

This Agreement shall bind and inure to the benefit of the Parties and their
respective heirs, personal representatives, successors, and assigns. The terms of this
Agreement shall run with the Leases or Interest included within the Contract Area.

C. Counterparts:

No assignment or transfer shall be effective unless and until the assignee or
transferee agrees in writing to take the assigned or transferred interest subject to
this Agreement and assume its proportionate share of all obligations and restrictions
created by this Agreement with respect to the interest assigned or transferred from
the effective date of the transfer, and copies of the written agreement have been
delivered to the Parties. Notwithstanding any provision to the contrary and unless
waived in writing by each non-transferring Parties, the assigning or transferring
Party shall remain jointly and severally liable with the assignee or transferee to the
parties to this Agreement for the performance and satisfaction of all obligations
attributable to the interest assigned or transferred, whether the obligation arises

Operating Agreement - Page 10 of 15