OPTION PARTICIPATION AGREEMENT

Exhibit 10.3

OPTION PARTICIPATION AGREEMENT

▇▇▇▇▇▇▇▇ Partners II LLC, a Louisiana limited liability company (“▇▇▇▇▇▇▇▇”) and Dala Petroleum Corp., a Nevada corporation (“Dala”), (▇▇▇▇▇▇▇▇ and Dala may be referred to herein individually as “Party” and collectively as “Parties”), hereby enter into this Option Participation Agreement (“OPA”), effective May          2014, to wit:

WHEREAS, ▇▇▇▇▇▇▇▇ is in the business of developing and drilling oil and/or gas ▇▇▇▇▇; and

WHEREAS, Dala has capital and desires to participate as a non-operator in the drilling for oil and/or gas;

NOW, THEREFORE, the Parties hereto agree in consideration of the mutual covenants set forth herein, the receipt and sufficiency of which are hereby acknowledged, as follows:

1. Option. ▇▇▇▇▇▇▇▇  hereby grants to Dala the option (the “Option”) to participate for up to twenty-five percent (25%) of ▇▇▇▇▇▇▇▇’▇ share of each drilling operation in search of oil and/or gas in the State of Kansas undertaken by ▇▇▇▇▇▇▇▇ on the same basis as ▇▇▇▇▇▇▇▇; i.e., if ▇▇▇▇▇▇▇▇ acquires a drilling opportunity for $10,000 and Dala elects to participate for 25%, Dala shall pay to ▇▇▇▇▇▇▇▇  twenty-five (25.0%) percent of $10,000 for its interest, which interest shall be subject to 25% of any burdens placed on ▇▇▇▇▇▇▇▇’▇ interest.

2. Election. Within five days after ▇▇▇▇▇▇▇▇ elects to participate in any such drilling operation, it shall give Dala written notice thereof, which notice shall include the cost thereof to Dala, and Dala shall have seventy-two (72) hours from receipt of such notice within which to exercise its Option by giving ▇▇▇▇▇▇▇▇ written notice thereof, together with its payment of its proportionate share of the cost charged to ▇▇▇▇▇▇▇▇ to participate in such drilling opportunity.  Dala’s failure to timely exercise its option shall be deemed ipso facto a decision not to exercise that Option.

3. Assignment. This OPA may not be assigned by Dala without the written consent of ▇▇▇▇▇▇▇▇.

4. Governing Law. This OPA is to be considered as having been executed in the State of Colorado and the Parties agree that Colorado law will govern.

5. Termination.  This agreement shall terminate and be of no future force and effect one year from the date hereof unless extended by mutual agreement.

6. Notices. All notices to be given with respect to this OPA and applicable participation shall be by email, unless otherwise provided for as follows:

▇▇▇▇▇▇▇▇ Partners II LLC

▇▇▇▇ ▇▇^▇▇ ▇▇▇▇▇▇

▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇

Attention: Managing Director

Phone: (▇▇▇) ▇▇▇-▇▇▇▇

Email address: ▇▇▇▇▇▇@▇▇▇▇▇.▇▇▇

Dala Petroleum Corp.

▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇

Thus done and signed this _______________ day of May, 2014.

▇▇▇▇▇▇▇▇ PARTNERS II LLC			DALA PETROLEUM CORP.
By:			By:
	▇▇▇▇▇▇▇ ▇▇▇▇▇, Managing Director			E. Will ▇▇▇▇, CEO