Hunter Technology Corp. (HOILF)

[SeaOhToo]

Effective March 1, 2010, a subsidiary of the Company executed a five year CO2 purchase agreement with Kinder Morgan CO2 Company, L.P. (Kinder Morgan) for use by the Company in its tertiary oil recovery projects in the Permian Basin. The contract, as amended, calls for a take or pay purchase commitment of 27.4 Bcf of CO2 over a five year period commencing no later than, as amended, September 1, 2018. The Company had planned the development of a pipeline to take delivery by the due date from a take point on the Kinder Morgan Cortez CO2 pipeline (the “Cortez Pipeline”), which would have connected approximately 38 miles from the Milnesand field. Effective January 31, 2012, the parties executed a second amendment to the agreement which extended certain dates and eliminated the termination fee that allows a cancellation of the contract prior to the contracts contemplated date for commitment of the take or pay obligation. A third amendment effective February 28, 2014, extended the date of delivery; the Company will not be obligated to take or pay for deliveries of CO2 prior to December 31, 2016, prior to which time the Agreement may be terminated without any obligation or payment of a termination penalty. After December 31, 2016, the Company will be required to complete a pipeline connection to the Cortez Pipeline by January 1, 2018 and commence taking delivery or payment for CO2 on January 1, 2018. See Notes to Consolidated Financial Statements for the year ended December 31, 2014.