Enernet Term Sheet

For your review and suggestions.....

F.Y.I., there are two partners in this lease -- Enernet and Quantum.
Enernet operates the wells, but the parties have not worked out a JOA yet, so
each party wants a term sheet. I guess I'll send them both the same terms,
however I'll need to indicate that the MDQ is for 100% of the lease and
therefore, each party will only get their % of the MDQ based on their
ownership. Actually, after typing all this, I hope they do a JOA and we
contract with only one party.

Sorry to waste e-mail space.....Thanks.

Dan