[VERDISYS(TM) LOGO] VERDISYS, INC.
25025 I-45 NORTH, SUITE 525
THE WOODLANDS, TX 77380
TOLL FREE: (281) 364-6999
WEB: WWW.VERDISYS.COM FAX: (281) 364-8007
LATERAL DRILLING SERVICE AGREEMENT FOR DELHI AND FRANKLIN FIELDS
NATURAL GAS SYSTEMS CORPORATION AND VERDISYS, INC.
This Lateral Drilling Services Agreement ("AGREEMENT") is dated as of September 22, 2003, by and between
Verdisys, Inc., a California corporation ("VERDISYS"), and Natural Gas Systems Corporation, a Delaware
corporation ("NGS"). NGS seeks to engage Verdisys to provide development expertise and lateral drilling
services, to NGS in the Delhi Gas Field and adjacent Franklin Properties in Delhi, Louisiana (combined, the
1.0 LATERAL DRILLING
1.1 LOCATION OF SERVICES
Verdisys will provide lateral drilling services in wells in the Delhi Field identified with greater specificity as to
location on the attached Term and Pricing Invoice, which may be updated by the constituent corporations from
time to time.
1.2 PARAMETERS OF DRILLING
Laterals will be drilled at a depth of no more than 5800' with a horizontal maximum of 300'.
2.0 SERVICE FEES AND ROYALTY
2.1 LATERAL DRILLING SERVICE FEES
Verdisys Lateral Drilling Services ("DRILLING SERVICES") will be billed at the time of commencement of
drilling at the package rate set forth in the attached Term and Pricing Invoice. The Drilling Services are for each
individual well site pertaining to this Contract. NGS shall be provided the Drilling Services at the minimum number
of wells and at the prices identified on the Term and Pricing Invoice attached hereto. Verdisys will bill NGS upon
completion of drilling services at each well, including any additional laterals requested, with payment due within
thirty (30) days of completion of the well services.
2.2 INITIAL PAYMENT AND PROMISSORY NOTE TO SECURE DELHI FIELD
NGS will enter into the purchase and sale agreement for the Delhi Field and close the purchase of the Delhi Field
with an initial