AGREEMENT
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This Agreement, dated August 29, 2007, is between Enexco, Inc. ("Enexco"), 0000
Xxxxxx Xxxxx, Xxxxx 0000, Xxxxxx, Xxxxx 00000 and Colony Energy, Inc.
("Colony"), 0000 Xxxx Xxxx Xxxxx, Xxxxx 000, Xxxxxxx, Xxxxx 00000,
WHEREAS; Enexco has purchased or contracted for the properties, more
particularly described in Exhibit "A" which is attached to this agreement and
made a part hereof and Colony has agreed to advance monies (Lease Bank) to
acquire these properties on the following terms and conditions:
1. The total consideration for the purchase of these properties amounts
to the amount as shown on Exhibit A.
2. Enexco has asked and Colony has agreed to advance Sixty-Five Percent
(65.00%) of these monies or $ Two Hundred Seventeen Thousand, Four
Hundred and Twelve Dollars and Thirty-one Cents ($217,412.31) for
the purchase of the prospect leases.
3. Enexco has agreed that Colony has the right but not the obligation
to participate in all of the prospects for up to a Twenty-Five
Percent (25.00%) promoted working interest.
4. Enexco agrees that it has built in certain cash profits in each
prospect and agrees to share these profits on a Seventy-Five Percent
(75.00%) basis to Enexco and a Twenty-Five Percent (25.00%) basis to
Colony.
5. It is agreed that the Lease Bank money and the funds provided from
Enexco will be paid on the same basis as funds were provided that is
Colony will receive 65.00% and Enexco will receive 35.00% until all
monies have been paid.
6. It is further agreed that both parties will expend their best
efforts to raise the necessary funds to have the xxxxx drilled
before the end of the year 2007. (See attached 2007 Enexco Drilling
Schedule)
7. It is agreed that Enexco will hold title to the properties in their
name on behalf of and for Colony and Enexco.
Should this be our agreement please sign in the space provided below.
Agreed to this 29th day of August, 2007.
Colony Energy, Inc. Enexco, Inc.
/s/ Xxxxx X. Xxxxxx /s/ X. Xxxx Rather
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By: Xxxxx X. Xxxxxx By: X. Xxxx Rather
