EXHIBIT 10.14
Purchase Agreement - Mineral Acres
Nutek Oil, Inc. of 0000 XxXxxx Xxxxx, Xxxxx 0, Xxx Xxxxx, XX 00000, desires to
purchase the herein described selected mineral acres and equipment from JGM Oil
Investments, LLC, as Sellers under the terms and agreements described in this
Purchase Agreement, to-wit:
1. Purchase of selected assets including, but not limited to, all field
equipment, supplies and lease agreements.
2. Purchase of the leases, farm-outs, or mineral interests held by Sellers in
Atascosa County, Texas insofar as they cover the following minimum net revenue
interests (NRI). Said lands are described on Exhibit 'A' attached hereto and
made a part of this Agreement for all purposes. Sellers will give a limited
warranty to purchaser of title "by and through assignors, but not otherwise".
Minimum Net Revenue Interest (NRI)
A. G.O. Davidson Lease, a minimum of a seventy and 4/10 percent (70.4%) net
revenue interest (NRI).
B. Oldjamie Lease, a minimum of a sixty five and 925/1000 percent (65.925%)
net revenue interest (NRI).
C. Diamond Head Lease, a minimum of a fifty seven percent (57%) net revenue
interest (NRI).
X. Xxxxxx A Lease, a minimum of a fifty eight and 1/8 percent (58.125%) net
revenue interest (NRI).
X. Xxxxxx C Lease, a minimum of a sixty three percent (63%) net revenue
interest (NRI).
3. Purchase of all of the personal property associated with the oil xxxxx on
the lands described on Exhibit 'A' hereto including, but not limited to, all
well equipment, spare equipment and tank batteries. Equipment will be sold "as
is".
4. Purchase price. The total purchase price will be three hundred seven
thousand four hundred twenty-six dollars ($307,426) made up as follows:
A. Purchase of all mineral acreage will be at a price of one hundred dollars
($100.00) per acre as set forth in Exhibit 'A' hereto. Total price for acreage
will be sixty nine thousand four hundred ten and no/100 dollars ($69,410).
B. Purchase of all equipment will be at a depreciated price of forty five
percent (45%) of the replacement value as set forth in Exhibit 'B' hereto.
Total price for equipment will be two hundred thirty eight thousand sixteen and
no/100 dollars ($238,016).
C. Payment for purchase of 4.A and 4.B above will be made to Sellers as set
forth herein.
5. Method of payment will be as follows:
A. The issuance of five hundred twelve thousand three hundred seventy-seven
(512,377) shares of Nutek Oil, Inc restricted stock which are to carry piggy
back rights representing fifty percent (50%) of the purchase price at $0.30 per
share calculated as the prior thirty (30) day average closing price.
B. The remaining amount of one hundred fifty three thousand seven hundred
thirteen and no/100 dollars ($153,713) will be paid monthly for a period of
thirty six (36) months with interest of seven percent (7%) accruing on the
outstanding balance. The monthly payment amount is not to exceed the income
from the minimum net revenue interest (NRI) from the prior month's production.
Payment will be adjusted accordingly and the remaining balance increased by the
monthly shortfall should any occur.
6. Date of closing shall be tentatively set as April 1, 2005.
7. All oil production remaining in tank batteries at date of closing is
excluded from the sales price.
8. This Purchase Agreement may be terminated by written agreement of both
parties.
IN WITNESS WHEREOF, the parties have set their hands on the dates below with
the effective date of this Purchase Agreement being the 1st day of April 1,
2005.
Dated : Xxxxx 00, 0000
Xxxxxxxxx:
Nutek Oil, Inc.
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------
Xxxxxx X. Xxxxxxxx
President/CEO and Chairman
By: /s/ Xxxxx X. Xxxxxxxx
---------------------------
Xxxxx X. Xxxxxxxx
CFO and Director
By: /s/ Xxxxxx Xxxxxx
---------------------------
Xxxxxx Xxxxxx
Director
Sellers:
JGM Oil Investments, LLC
By: /s/ JGM Oil Investments, LLC
----------------------------
EXHIBIT 'A'
ACREAGE
ATASCOSA COUNTY
G.O.Davidson Lease 40 ac
Well #A3 - #A4
Xxxxxx A Lease 000 xx
Xxxx #0X - #0X
Xxxx #0X
Well #7A - #10A
Xxxxxx C Lease 000 xx
Xxxx #0 - #00
Oldjamie Lease 105.1 ac
Well #1 - #6
Diamond Head Lease 40 ac
Well #1A
Diamond Head A Lease 000 xx
Xxxx #0 - #0
Xxxxxxx Xxxx X Lease 20 ac
Well #5
Total acreage in Atascosa Co. = 694.1 ac.
Total Cost of acreage @ $100 per acre = $ 69,410.00
EXHIBIT 'B'
Replacement value of equipment for average well in field.
$5,500 2000' of 2 3/8's 8R upset tubing ($2.75 avg/ft)
$ 800 2000' of 5/8" sucker rods ($10/rod = 0.40/ft)
$ 325 downhole pump and seating nipple
$ 375 well head
$ 75 polish rod
$ 125 pumping tee and stuffing box
$ 65 misc. wellhead equip. (valves, checks, bull plugs, etc.)
$3,250 pumpjack (incl. base or skid)
$1,260 1200' (avg.) of line pipe per well at $1.05/fl.
$ 225 elec. motor (low rpm)
$ 425 Electrical (sw. box, time clock, starter, coils, etc.)
$12,425 Total
REPLACEMENT VALUES, XXXXX, AND DESCRIPTIONS (BY LEASE)
G. O. Davidson $24,850
#A3 $12,425
#A4 $12,425
Xxxxxx A $109,875
#1A $11,775
#2A $12,425
#3A $12,425
#4A $12,425
#6A $12,425
#7A $11,775
#8A $11,775
#9A $12,425
#10A $12,425
Xxxxxx C $257,525
#1 $11,775
#2 $11,775
#3 $11,775
#4 $11,775
#5 $11,775
#6 $11,775
#7 $12,100
#8 $11,775
#9 $12,425
#10 $12,425
#11 $12,425
#12 $11,775
#13 $11,775
#14 $12,000
#15 $5,150
#16 $12,425
#17 $12,425
#18 $12,425
#19 $11,775
#20 $11,775
#21 $11,775
#22 $12,425
Oldjamie $74,550
#1 $12,425
#2 $12,425
#3 $12,425
#4 $12,425
#5 $12,425
#6 $12,425
Diamond Head $12,425
#1A $12,425
Diamond Head A $37,275
#2 $12,425
#3 $12,425
#4 $12,425
Diamond Head B $12,425
#5 $12,425
Total Replacement Value for Leases = $528,925
Total Value of Properties
Acerage = $69,410
Replacement Value of Xxxxx = $528,925
Total Replacement Value of Properties = $598,335
