All the wells Falcon drilled on the JV properties become part of that agreement.

From the Esso Exploration and Production/Falcon/TMX PRODUCTION AND DEVELOPMENT AGREEMENT

2. Assignment of Participating Interest. TXM shall assign and transfer an undivided 67% participating interest (the “Initial Participating Interest””) in the Contract Area to
ExxonMobil (that is, ExxonMobil 67%, TXM 33% of the Contract Area, with TXM’s
interest hereinafter referred to as the “TXM Participating Interest”). The Initial
Participating Interest shall include the same undivided interest in all real and personal property physically located within the Contract Area, and shall exclude all of Falcon’s and TXM’s real and personal property physically located outside the Contract Area as of the date of this Agreement, subject to Section 20 relating to ExxonMobil’s use of all of Falcon’s and TXM’s seismic data, and subject to Section 8 regarding accepted wellbores and facilities.
Initially, the assignment and transfer of the Initial Participating Interest will be a
contractual assignment (in the form attached as Exhibit D), which shall be delivered to ExxonMobil and shall become effective upon ExxonMobil’s payment of the Initial
Payment (as defined in Section 7, below). In the event the Parties determine, or the
Mining Authority requires, that said assignment of contractual interest must be approved by the Mining Authority, the Parties shall mutually determine and shall cooperate in implementing the appropriate course of action, which shall be consistent with the intent of the Parties as set forth in this Agreement.

Regards,

SD