EXHIBIT 10.3
Purchase Agreement
Hill Lease - Xxxxxxx County, Texas
Gentlemen:
This letter when executed by all parties shall produce a "Purchase
Agreement" evidenced under the terms and conditions outlined below, by which
Future Quest Nevada Inc. of 0000 Xxxxxxx Xx., Xxxxxxxx Xxxxxxx, XX ("FQNI")
shall acquire certain assets and rights, outlined below, obtained by American
Stellar Energy, Inc. ("AMRS") with regards to a 15.5 acre tract located in
Xxxxxxx County, Texas. The effective date of the sale shall be November 1st,
2005.
Assets & Rights:
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History Description: AMRS, Xxxxx Energy LLC, and KKPT has heretofore
obtained from Xxxxx Xxxxxxxxx, all his rights, title, and interests in 15.5
acres of leases delivering, between all Working Interest Partners, a 100%
Working Interest, with a proportionately divided 75% Net Revenue Interest, as
described in "Assignment of Oil, Gas, and Mineral Lease" (Hill Lease) dated
April 15, 2005. Upon performance of the terms set forth below, AMRS agrees to
sells its 45% Working Interest in the Farmout leases as more thoroughly
described below.
Asset Description:
1. A 45% Working Interest, delivering a 33.75% Net Revenue Interest
obtained in the Hill Lease, summarized above.
2. AMRS's percentage of all assets that have been paid for, or earned to
date, now being the property of AMRS.
3. AMRS's will receive all revenue derived from the sale of any
production produced before November 4th, 2005, including all oil in
tanks on the Hill Lease, less AMRS's proportionate share of operating
costs and production taxes.
4. Copies of all agreements, that would currently be in the possession
of AMRS, covering any rights or obligations considered under this
Purchase Agreement.
5. Cooperation with regards to the transferring of rights and assets
considered under this agreement.
ALL PROPERTIES ARE OFFERED AND WILL BE SOLD "AS IS", WITHOUT WARRANTY EXPRESS
OR IMPLIED IN FACT OR BY LAW, WHETHER OF TITLE, OPERATING CONDITION, SAFETY,
COMPLIANCE WITH GOVERNMENTAL REGULATIONS, MERCHANTABILITY, FITNESS FOR ANY
PARTICULAR PURPOSES, ENVIRONMENTAL OR OTHER CONDITION OR OTHERWISE. ALL XXXXX,
PERSONAL PROPERTY, MACHINERY, EQUIPMENT AND FACILITIES THEREIN, THEREON AND
APPURTENANT THERETO ARE TO BE CONVEYED BY SELLER AND ACCEPTED BY BUYER
PRECISELY AND ONLY "AS IS, WHERE IS".
ALL DESCRIPTIONS, INFORMATION AND OTHER MATERIALS ("DATA") FURNISHED BY
SELLER, ARE FURNISHED SOLELY FOR CONVENIENCE PURPOSES AND ANY RELIANCE ON OR
USE OF SUCH DATA IS AT BUYER'S SOLE RISK. AMERICAN STELLAR MAKES NO WARRANTIES
OR REPRESENTATIONS, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR CORRECTNESS OF
SUCH DATA OR AS TO THE QUALITY OR QUANTITY OF HYDROCARBON RESERVES, IF ANY
ATTRIBUTABLE TO THE PROPERTIES, OR THE ABILITY OF ANY PROPERTY TO PRODUCE
HYDROCARBONS.
Purchase Price:
The total purchase price for the Interests and assets outlined above will be
$37,000.00 (Thirty seven thousand dollars) paid for under the following terms
and conditions;
1) $37,000.00 (Thirty seven thousand dollars) due on November 4th, 2005
The payment shall be made by wire no later then the date outlined above. All
payments shall be applied towards the total purchase price, as outlined above.
Should Buyer not make the required payment on the date outlined above, the
Assets & Rights outlined above shall revert back to American Stellar Energy,
Inc. with no recourse.
Payment instructions are included below:
Wiring Instructions
Bank of America American Stellar Energy, Inc.
00 Xxxxxxxxx Xxxxxx 0000 Xxxxx Xxxxx
Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
000-000-0000 Phone U.S.A
Routing Number = 000000000
For the account of:
American Stellar Energy, Inc.
Account Number =
If the foregoing adequately sets out your understanding of our agreement,
please indicate so by signing in the space provided for below and returning
one copy of this letter so executed to the undersigned.
Agreed to and Accepted this
1st day of November, 2005.
American Stellar Energy, Inc. Future Quest Nevada Inc.
/S/ Xxxxxxx X. Xxxxxx Xx. /s/ Xxx XxXxxxxxx
Signed: _____________________________ By: ________________________
Print: Xxxxxxx X. Xxxxxx Xx. Name: Xxx XxXxxxxxx
Title: President Title: President
