EXHIBIT 10.7
FARMOUT AGREEMENT DATED DECEMBER 12, 2006
BOUNTY DEVELOPMENTS LTD. 0000, 000 - 00 Xxx. X.X.
Xxxxxxx, XX
X0X 0X0
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Tel (000) 000-0000
Fax (000) 000-0000
XXXXXX@XXXXXXXXX.XXX
January 22, 2007
1286664 ALBERTA LTD. DAMASCUS ENERGY INC.
00 Xxxxxxx Xxxx S.W., 22 Xxxxxxx Walk S.W.,
Calgary, Alberta T2P 4V9 Xxxxxxx, Xxxxxxx X0X 0X0
ATTENTION: XXXXXXX XXXXXXX Attention: Xxxxxxx Xxxxxxx
PATCH ENERGY INC.
300, 000 0xx Xxxxxx X.X.,
Xxxxxxx, Xxxxxxx
ATTENTION: XXXXXXX XXXXXXX
Dear Sirs:
RE: FARMOUT AGREEMENT RE: FIREBAG, ALBERTA DATED ON OR ABOUT DECEMBER
12, 2006 BETWEEN BOUNTY DEVELOPMENTS LTD. ("BOUNTY") AND 1286664
ALBERTA LTD. ("1286664") (THE "FIREBAG FARMOUT AGREEMENT")
SECTIONS 25-36 XXX 00 XXX 0 X0X
XXXXXXXX 0-0 XXX 00 XXX 0 X0X
OIL SANDS BELOW THE TOP OF THE VIKING FM TO BASE WOODBEND GRP
BOUNTY FILES: AM- 227-001 & AM-227-002
AND
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RE: FARMOUT AGREEMENT RE: DOVER (XXXX), ALBERTA DATED ON OR ABOUT
NOVEMBER 30, 2006 BETWEEN BOUNTY AND DAMASCUS ENERGY INC.
("DAMASCUS") (THE "DOVER FARMOUT AGREEMENT")
SECTIONS 0-0, 0-00 XXX 00-00, XXX 00-00 X0X
SECTIONS 25-27, 35, 36 XXX 00 XXX 00 X0X;
XXXXXXXX 0-0, XXX 00 XXX 00 X0X;
SECTIONS 19-21, 28-33, 94-14 W4M
OIL SANDS BELOW THE TOP OF THE VIKING FM TO BASE WOODBEND GRP
BOUNTY FILES: AM-226-001 & AM-226-002
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Bounty hereby confirms its agreement and, by signing in the space provided
below, 1286664, Damascus and Patch confirm their agreement to the following:
1. The $2,000,000 Canadian previously paid by 1286664 to Bounty pursuant to
clause 3(a) of the Firebag Farmout Agreement shall be transferred to the Dover
Farmout Agreement and shall be deemed and considered for all purposes to have
been payment of a cash call to Bounty, as interim Operator, to be applied toward
the cost of the Evaluation Xxxxx referred to in paragraph 5 of the Dover Farmout
Agreement.
2. 1286664 shall have until February 15, 2007, or such other time as the parties
agree to in writing, to pay to Bounty the $2,000,000 Canadian referred to in
paragraph 3(a) of the Firebag Farmout Agreement. 1286664 shall pay simple
interest on the said $2,000,000 Canadian to Bounty at the rate of 10 percent per
annum from January 22, 2007 until such funds plus interest are paid to Bounty.
3. 1286664 shall have until February 15, 2007, or such other time as the parties
agree to in writing, to pay to Bounty the $3,100,000 Canadian referred to in
paragraph 3(b) of the Firebag Farmout Agreement. 1286664 shall pay simple
interest on the said $3,100,000 Canadian to Bounty at the rate of 10 percent per
annum from January 15, 2007 until such funds plus interest are paid to Bounty.
Excepted as amended hereby, the Firebag Farmout Agreement and the Dover Farmout
Agreement shall remain in full force and effect. Please confirm your agreement
with the changes stated herein by signing and returning this letter as soon as
possible.
Yours truly,
BOUNTY DEVELOPMENTS LTD.
XXXX X. XXXXX
Land Manager
Acknowledged and Agreed to this _____ day of January, 2006.
1286664 ALBERTA LTD.
PER:
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Acknowledged and Agreed to this _____ day of January, 2006.
DAMASCUS ENERGY INC.
PER:
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Acknowledged and Agreed to this _____ day of January, 2006.
PATCH ENERGY INC.
PER:
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