Exhibit 10
Avro Energy, Inc.
000 X. Xxxxxxxx Xxx.
Xxxxxx, Xxxxxxxxx 00000, XXX
Tel: 000-000-0000
May 17, 2011
TO: First Pacific Oil and Gas Ltd.
Re: Working Interest Acquisition Agreement between Avro Energy Inc. and
First Pacific Oil and Gas Ltd.
This letter agreement shall serve as a definitive Working Interest Acquisition
Agreement (the "Agreement") between Avro Energy Inc. ("Avro") and you.
In consideration of the benefits to accrue to the parties hereto and the
covenants and obligations to be kept by you, it is hereby mutually agreed as
follows:
ACREAGE:
We represent that we hold Oil and Gas Leases or Mineral Interest described as
follows, of which 6 xxxxx are currently producing at deeper levels, and 5 of
which are not currently producing but have up-hole potential for production.
SEE ATTACHED SCHEDULE A -
12 ARKANSAS XXXXX
We agree to deliver to you such abstracts and other title papers as we have in
our files at this time and at your sole cost, risk and expense you agree to
conduct such Title Examinations and secure such curative matter as is necessary
to satisfy yourselves that Title is acceptable to you.
OBLIGATIONS:
PAYMENT AND DRILLING SCHEDULE:
(A) On or before 21 days from the effective date of this agreement, you
will pay to the company's bank account $50,000 for the recompletion of
the Xxxxx Xxxxxx Xxxxxx No. 1 Well. In return, you will be granted a
50% working interest in this well.
(B) On or before 45 days from the effective date of this agreement, you
will pay to the company's bank account $200,000 in exchange for a 50%
working interest in the next two xxxxx identified in Schedule A or the
next two xxxxx chosen by the operator for re-completion.
(C) On or before 6 months from the effective date of this agreement, you
will provide $800,000 in exchange for a 50% working interest in the
next 9 xxxxx identified in Schedule A.
The proceeds of each of the above payments will provide for the recompletion of
up-hole zones of interest in the 11 xxxxx identified in Schedule A, subject to
the terms set out above, including but not limited to the acquisition of
production equipment as required.
INFORMATION AND REPORTS:
UPON WRITTEN REQUEST, and after completion of the each Well provided for
hereinabove in accordance with all the terms and provisions of this Agreement to
your satisfaction, we agree to furnish to you the following:
(a) WEEKLY RECOMPLETION REPORTS on the progress of that well which shall
include work-over depth, information on all tests including character,
thickness, name of any formation penetrated, shows of oil.
(b) Certified Copies of all forms furnished to any governmental authority
(c) Copies of all electrical logging surveys
(d) Copies of the well log upon completion
(e) Copies of the plugging records, if any
PRODUCTION TESTS
We agree to properly test formations in which shows of oil and/ or gas are
encountered after notifying you of the proposed test and if you desire to be
present during testing, we will delay such testing a reasonable amount of time
in order to allow your representative to reach the well and witness the test,
and we also agree to notify you immediately by telephone or email as the result
of any such test.
It is understood that your representatives shall have access to the rig floor at
all times and to any and all information concerning the Recompleted Well.
CONSENT REQUIRMENT:
This Agreement is personal in nature and may not be assigned without our written
consent being first obtained. When requesting consent to make an assignment of
all or a portion of the Agreement you will advise the parties to whom the
assignment will be made.
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OPERATIONS:
AVRO at all times shall be the operator of xxxxx outlined in Schedule A and
shall conduct these operations on a best-efforts basis on behalf of itself and
its working interest partners. AVRO will collect all revenue and distribute all
funds to the working interest partners' percentage less operations and mineral
owner royalties.
YOURS VERY TRULY,
AVRO ENERGY INC.
Per:
-----------------------------------
Authorized Signatory
This Agreement is APPROVED and ACCEPTED this 17 day of May, 2011
THE COMMON SEAL of FIRST PACIFIC )
OIL AND GAS LTD. was hereunto affixed )
in the presence of )
)
)
/s/ ) c/s
--------------------------------------- )
Authorized Signatory ) )
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SCHEDULE A:
12 ARKANSAS XXXXX
1. Xxxxx Xxxxxx Xxxxxx
2. Xxxxx- Xxxxxxxxx 1
3. Xxxxx X.X. 1-A
4. Xxxxx 1
5. Xxxxx 1
6. Xxxxx 2
7. Xxxxxxx - Xxxx 1
8. Xxxxxxx 1
9. Xxxxxxx 1
10. Xxxxxxx X X 1
11. Xxxxxx- Xxxxxx 1
12. Xxxx "C" 1
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