Exhibit 10.2
1-2-98
Winco Petroleum Corp.
Box 399
Garden City, Kansas 67846
Re: Purchase of Winco's xxxxx in Wyoming
Attn: Xx. Xxxxx X'Xxxxx
Dear Xx. X'Xxxxx,
Sunshine Valley Petroleum Corp. (SVPC) is willing to purchase Winco's interest
in the following xxxxx:
Wellname W.I.% N.R.I.% Purchase Price
-------- ----- ------- --------------
Xxxxx Xxx. #1 100% 84.45% $ 45,000.00
Xxxxxxx Xxxxx #1 100% 87.20% $ 45,000.00
Pearl Unit #1-A 100% 86.00% $ 45,000.00
Xxxxxx #1-15 100% 84.00% $ 45,000.00
Xxxxxxx Fed. #1 100% 86.78% $ 30,000.00
=============
Total Purchase Price: $ 210,000.00
The effective date of the sale is Jan. 1, 1998 at 7 a.m. SVPC will pay
Winco for the marketable oil in the tanks based on Texaco's posting for that
date. Marketable oil is defined as oil above 1'6".
The following is the oil in the tanks as of Jan. 1, 1998:
Wellname Vol. (bbls) Less 10%
-------- -------------------- Texaco Less due Winco
Posting Sev. & N.R.I.
12/29/97 Ad Val. ------------
----------------------
Xxxxx Xxx. #1 300 30.0 $ 15.00 11% $ 3,044.00
Xxxxxxx Xxxxx #1 193 19.3 $ 15.00 11% $ 2,022.08
Pearl Unit #1-A 388 38.8 $ 15.00 11% $ 4,009.17
Xxxxxx #1-15 261 26.1 $ 15.00 11% $ 2,634.17
Xxxxxxx Fed. #1 120 12.0 $ 15.00 11% $ 1,251,19
============
Total oil: $ 12,960.60
Total due Winco is $222,960.60. If you have any questions please call
(000) 000-0000, Fax: (000) 000-0000.
If this is agreeable please sign below and fax back.
Sincerely,
/s/ XXXXX X. XXXXXXXXXX
AGREED AND ACCEPTE TO:____________________
