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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA

NEW ORLEANS, LOUISIANA

In re: § Chapter 11 § VIRGIN OIL COMPANY, INC. § Case No. 09-11899 § Debtor. § Section “A” ******************************** CIT CAPITAL USA, INC., and OFFICIAL COMMITTEE OF UNSECURED CREDITORS Plaintiffs v. VIRGIN OIL COMPANY, INC. ET AL Defendants

ADV. NO. 10-01068

CONSENT JUDGMENT

This matter having been brought before this Court pursuant to the Stipulation for Entry of

Consent Judgment (ECF No. 294), and the Court having determined that: (i) the relief sought in

this Consent Judgment is in the best interests of the parties identified below, the Debtor,1 its

estate, and creditors; (ii) that no other or further notice of this Consent Judgment need be

provided; and (iii) that sufficient cause exists for entry of this Consent Judgment, it is hereby:

ORDERED, ADJUDGED, AND DECREED THAT:

1. Ownership of all rights in the Empire Lease is divided between the Debtor and

Offshore in the following proportions:

(a) the Debtor owns an 85% interest in the Empire Lease; and

1 Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Second

Amended Chapter 11 Plan of Reorganization Filed by the Official Committee of Unsecured Creditors and CIT Capital USA, Inc., as of August 26, 2011 (such document, including all subsequent amendments and modifications thereto, the “Plan,”).

Case 10-01068 Doc 295 Filed 02/24/12 Entered 02/24/12 10:53:50 Main Document Page 1 of 8

Case 09-11899 Doc 1284-4 Filed 11/09/12 Entered 11/09/12 14:47:58 Ex. C to Memoranum in Support Page 1 of 8

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EXHIBIT "C"

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(b) Offshore owns a 15% interest in the Empire Lease.

2. The liens granted to CIT under the Plan shall encumber the full 85% working

interest in the Empire Lease owned by the Debtor, subject however to the terms of the Plan set

forth in section 5.18 thereof, regarding the right of Offshore to receive distributions in excess of

its 15% interest.

3. As of entry of the Partial Order (ECF No. 215) in the above-captioned adversary

proceeding dated March 16, 2011 (the “Partial Order”), and for the purpose of resolving certain

disputes between the Debtor and Offshore relating to the rejection of the Empire Lease joint

operating agreement (the “Empire JOA”), the Debtor is recognized as the operator of the Empire

Lease.

4. The Debtor and/or the Plan Trust, as applicable, shall be substituted as the

operator of record for the Empire Lease with the State of Louisiana. The Debtor, Plan Trust,

and/or Plan Trustee are hereby authorized to take all actions necessary or appropriate to

implement, effectuate, and consummate any and all documents and transactions that may be

necessary in order to substitute the Debtor and/or the Plan Trust as the operator of record for the

Empire Lease.

5. Within thirty (30) days after the Plan’s Effective Date, the funds within the

Empire Escrow (the “Empire Escrow Funds”) shall be distributed as follows:

(a) 85% of the Empire Escrow Funds shall be distributed to the Plan Trust; and

(b) 15% of the Empire Escrow Funds shall be distributed to Offshore.

6. Offshore shall use 80% of the Empire Escrow Funds that it receives in order to

satisfy both: (i) any liens against the Empire Lease that have been properly perfected, enforced,

maintained in accordance with La. R.S. 9:4861, et seq., and recognized by a final, non-



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appealable Court order in adversary proceeding No. 11-01111, currently pending in the United

States Bankruptcy Court for the Eastern District of Louisiana (the “Offshore Adversary”); and

(ii) any valid pre-petition judgment liens against the Empire Lease and any wells therein, which

have been recognized by a final, non-appealable order in the Offshore Adversary (collectively,

the “Recognized Liens”). Any payments made by Offshore in satisfaction of Recognized Liens

shall be allocated pro-rata, among all Recognized Lienholders or as otherwise ordered by the

Court.

7. The Debtor and Plan Trust waive any right to pursue Offshore for collection of

the $803,705.00 debt that was referenced in the Partial Order. Upon entry of this Consent

Judgment, the $803,705.00 debt referenced in the Partial Order shall be deemed released and

satisfied.

8. The Debtor waives any and all of its rights to pursue any other claims against

Offshore relating to the Empire JOA or ownership of the Empire Lease, to the extent that such

claims arose prior to the Effective Date.

9. This Court shall retain jurisdiction to hear and determine all matters arising from,

or relating to, the implementation or interpretation of this Consent Order.

New Orleans, La., February 23, 2012

_______________________________________ THE HONORABLE ELIZABETH W. MAGNER UNITED STATES BANKRUPTCY JUDGE



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Seen and Agreed as to Form and Substance: CIT CAPITAL USA, INC. /s/ Brent R. McIlwain Brent R. McIlwain (Texas State Bar No. 24013140) PATTON BOGGS, LLP 2000 McKinney Ave, Suite 1700 Dallas, Texas 75201 [email protected] David F. Waguespack (LA State Bar No. 21121) CARVER, DARDEN, KORETZKY, TESSIER, FINN, BLOSSMAN & AREAUX, LLC 1100 Poydras Street, Suite 3100 New Orleans, Louisiana 70163 [email protected] Counsel to CIT Capital USA Inc.

VIRGIN OFFSHORE U.S.A., INC. /s/ Louis M. Phillips Louis M. Phillips (La. Bar No. 10505) Armistead M. Long (La. Bar No. 33494) Rick M. Shelby (La. Bar No. 31965) GORDON, ARATA, McCOLLAM, DUPLANTIS & EAGAN, LLC One American Place 301 Main Street, Suite 1600 Baton Rouge, LA 70801-1916 [email protected] [email protected] [email protected] Counsel to Gerald H. Schiff, Chapter 11 Trustee for the Bankruptcy Estate of Virgin Offshore U.S.A., Inc.

VIRGIN OIL COMPANY, INC. /s/ Leo D. Congeni Leo D. Congeni 424 Gravier Street New Orleans, LA 70130 [email protected] Counsel to Virgin Oil Company, Inc.

ACTION OILFIELD SERVICES, INC. /s/ J. Marston Fowler J. Marston Fowler Law Office of J. Marston Fowler 212 Laurel Street Baton Rouge, LA 70801 [email protected] Counsel to Action Oilfield Services, Inc.

DYNAMIC ENERGY SERVICES, LLC /s/ Michael A. Crawford Michael A. Crawford Taylor Porter Brooks & Phillips LLP 451 Florida Street 8th Floor Bank One Centre Baton Rouge, LA 70801 [email protected] Counsel to Dynamic Energy Services, LLC

FRANK’S CASING CREW & RENTAL TOOLS, INC. /s/ Bruce Coulombe Bruce Coulombe Frank’s Casing Crew & Rental Tools, Inc. 700 E. Verot School Road Lafayette, LA 70508 [email protected] Counsel to Frank’s Casing Crew & Rental Tools, Inc

GLOBAL VESSEL & TANK, LLC /s/ Dennis J. Vidrine Dennis J. Vidrine Vidrine & Vidrine 711 West Pinhook Lafayette, LA 70503 [email protected] Counsel to Global Vessel & Tank, LLC

HALLIBURTON ENERGY SERVICES, INC. /s/ Jeffrey Dayne Carruth Jeffrey Dayne Carruth Weycer Kaplan Pulaski Zuber 3030 Matlock Road Arlington, TX 76015 [email protected] Counsel to Halliburton Energy Services, Inc.



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HB RENTALS, LLC /s/ Mark Mintz Mark Mintz Jones Walker, et al 201 St. Charles Street 49th Floor New Orleans, LA 70170 [email protected] Counsel to HB Rentals, LLC

HELIS OIL & GAS COMPANY, LLC /s/ J. David Forsyth J. David Forsyth Sessions, Fishman & Nathan, LLP 201 St. Charles Avenue New Orleans, LA 70170 [email protected] Counsel to Helis Oil & Gas Company, LLC

INDUSTRIAL & OILFIELD SERVICES, INC. /s/ Jacque B. Pucheu, Jr. Jacque B. Pucheu, Jr. Pucheu, Pucheu & Robinson, LLP 106 Park Avenue Eunice, LA 70535 [email protected] Counsel to Industrial & Oilfield Services, Inc.

INDUSTRIAL LIFT TRUCK & EQUIPMENT CO. /s/ J. Eric Lockridge J. Eric Lockridge Kean Miller P.O. Box 3513 Baton Rouge, LA 70821-3513 [email protected] Counsel to Industrial Lift Truck & Equipment Co.

INTRACOASTAL LIQUID MUD, INC. /s/ Ted M. Anthony Ted M. Anthony Babineaux, Poché, Anthony & Slavich L.L.C. P.O. Box 52169 Lafayette, LA 70505 [email protected] Counsel to Intracoastal Liquid Mud, Inc.

KEY ENERGY SERVICES, INC. /s/ Carl Dore’ Jr. Carl Dore’ Jr. Dore’ Mahoney Law Group, P.C. 17171 Park Row Suite 350 Houston, TX 77084 [email protected] Counsel to Key Energy Services, Inc.

NATIONAL OILWELL VARCO /s/ Jeffrey M. Burmaster Jeffrey M. Burmaster King, Krebs & Jurgens, PLLC 201 St. Charles Avenue, 45th Floor New Orleans, LA 70170 [email protected] Counsel to National Oilwell Varco

NEWPARK ENVIRONMENTAL SERVICES, LLC /s/ Carl Dore’ Jr. Carl Dore’ Jr. Dore’ Mahoney Law Group, P.C. 17171 Park Row Suite 350 Houston, TX 77084 [email protected] Counsel to Newpark Environmental Services, LLC

NEWPARK MATS & INTEGRATED SERVICES, LLC /s/ Carl Dore’ Jr. Carl Dore’ Jr. Dore’ Mahoney Law Group, P.C. 17171 Park Row, Suite 350 Houston, TX 77084 [email protected] Counsel to Newpark Mats & Integrated Services, LLC

NITRO LIFT TECHNOLOGIES, LLC /s/ Charlie Joubert Charlie Joubert Nitro Lift Technologies, LLC 226 Princeton Woods Loop Lafayette, LA 70508 [email protected]



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OFFICIAL COMMITTEE OF UNSECURED CREDITORS /s/ Benjamin W. Kadden Stewart F. Peck Benjamin Kadden Lugenbuhl, Wheaton, Peck, Rankin & Hubbard 601 Poydras Street Suite 2775 New Orleans, LA 70130 [email protected] Counsel to the Official Committee of Unsecured Creditors

PRECISION DRILLING COMPANY, LP (f/k/a Grey Wolf Drilling Company, LP) /s/ H. Kent Aguillard H. Kent Aguillard Young, Hoychick, and Aguillard P.O. Drawer 391 Eunice, LA 70535-0391 [email protected] Counsel to Precision Drilling Company, LP, fka Grey Wolf Drilling Company, LP

PRECISION DRILLING HOLDINGS COMPANY, LP (a/k/a Grey Wolf Holdings Company) /s/ H. Kent Aguillard H. Kent Aguillard Young, Hoychick, and Aguillard P.O. Drawer 391 Eunice, LA 70535-0391 [email protected] Counsel to Precision Drilling Holdings Company, aka Grey Wolf Holdings Company

QUALITY ENERGY SERVICES, INC. /s/ Stanwood R. Duval Stanwood R. Duval 101 Wilson Avenue P.O. Box 3017 Houma, LA 70361 [email protected] Counsel to Quality Energy Services, Inc.

RANGER SPECIALTY SUPPLY & CONTROL SYSTEMS, LLC /s/ Steven G. Durio Steven G. Durio Durio, McGoffin, Stagg & Ackerman 220 Heymann Boulevard 70503 PO Box 51308 Lafayette, LA 70508 [email protected] Counsel to Ranger Specialty Supply & Control Systems, LLC

SOONER PIPE, LLC /s/ Frederick L. Bunol Frederick L. Bunol The Derbes Law Firm, L.L.C. 3027 Ridgelake Drive Metairie, LA 70002 [email protected] Counsel to Sooner Pipe, LLC

SPECIALTY RENTAL TOOLS & SUPPLY, LLC /s/ Frederick L. Bunol Frederick L. Bunol The Derbes Law Firm, L.L.C. 3027 Ridgelake Drive Metairie, LA 70002 [email protected] Counsel to Specialty Rental Tools & Supply, LLC

SPIRIT COMPLETION FLUIDS, LTD /s/ Jeffrey M. Burmaster Jeffrey M. Burmaster King, Krebs & Jurgens, PLLC 201 St. Charles Avenue, 45th Floor New Orleans, LA 70170 [email protected] Counsel to Spirit Completion Fluids, Ltd



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SPIRIT DRILLING FLUIDS, LIMITED PARTNERSHIP /s/ Jeffrey M. Burmaster Jeffrey M. Burmaster King, Krebs & Jurgens, PLLC 201 St. Charles Avenue, 45th Floor New Orleans, LA 70170 [email protected] Counsel to Spirit Drilling Fluids, Limited Partnership

STOKES & SPIEHLER OFFSHORE, INC. /s/ Raymond A. Beyt Raymond A. Beyt Beyt & Beyt, PC 700 East University Avenue P.O. Box 52157 Lafayette, LA 70505 [email protected] Counsel to Stokes & Spiehler Offshore, Inc.

SUPERIOR ENERGY SERVICES, LLC /s/ Mark Mintz Mark Mintz Jones Walker, et al 201 St. Charles Street 49th Floor New Orleans, LA 70170 [email protected] Counsel to Superior Energy Services, LLC

TALEN’S FUEL & MARINE, LLC /s/ Ron Mattingly Ron Mattingly, CFO P.O. Box 899 Jennings, LA 70546

TANNER SERVICES, LLC /s/ Jacque B. Pucheu, Jr. Jacque B. Pucheu, Jr. Pucheu, Pucheu & Robinson, LLP 106 Park Avenue Eunice, LA 70535 [email protected] Counsel to Tanner Services, LLC

TESCO SERVICES, INC. /s/ Thomas Joseph Smith Thomas Joseph Smith Galloway, Johnson, Thompkins, Burr & Smith 1301 McKinney, Suite 1400 Houston, TX 77010 [email protected] Counsel to Tesco Services, Inc.

WEATHERFORD INTERNATIONAL, INC /s/ Carl Dore’ Jr. Carl Dore’ Jr. Dore’ Mahoney Law Group 17171 Park Row, Suite 350 Houston, TX 77084 [email protected] Counsel to Weatherford International, Inc.

WEATHERFORD U.S., L.P. /s/ Carl Dore’ Jr. Carl Dore’ Jr. Dore’ Mahoney Law Group 17171 Park Row Suite 350 Houston, TX 77084 [email protected] Counsel to Weatherford International, Inc.



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WOOD GROUP PRESSURE CONTROL, LP /s/ Carl Dore’ Jr. Carl Dore’ Jr. Dore’ Mahoney Law Group 17171 Park Row, Suite 350 Houston, TX 77084 [email protected] Counsel to Wood Group Pressure Control, LP

WORKOVER SPECIALTIES, LLC /s/ Thomas G. Gruenert Thomas G. Gruenert Gibson, Gruenert & Zaunbrecher, P.L.L.C. 9330 Broadway St., Suite 324 Pearland, TX 77584 [email protected] Counsel to Workover Specialties, LLC

### End of Order ###



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