ARGYLE ENERGY, INC. 10777 Westheimer Suite 170 Houston, Texas 77042 Phone: (832) 358-3900 Fax: (832) 358-3903 September 29, 2005
ARGYLE
ENERGY, INC.
10777
Westheimer
Suite
170
Houston,
Texas 77042
Phone:
(000) 000-0000
Fax:
(000) 000-0000
September
29, 2005
Xxxxxx
Properties, Inc.
Hjeltke
Rd.
Ajeltake
Island
Majuro,
Xxxxxxxx Island
Majuro,
MH 96960
Xxxx
Xxxxxx
Ignis
Petroleum Corporation
000
Xxxxxxxx Xxxxx
7th
Floor
Dallas
Texas 75201
Bayou
City Exploration, Inc. f/k/a Blue Ridge Energy, Inc.
10777
Westheimer
Suite
170
Houston,
Texas 77024
RE:
|
Amendment
to Letter Agreement, Xxxxxxx Crossroads Prospect Area, Escarnbia
County,
Alabama
|
Gentlemen:
Reference
is made to that certain letter agreement (the "Agreement") dated March 31,
2005,
executed by and between Argyle Energy, Inc. ("Argyle"), Xxxxxx Properties,
Inc.
("Xxxxxx"), and Bayou City Exploration, Inc. f/k/a Blue Ridge Energy, Inc,
("BCE"), pertaining to the Xxxxxxx Crossroads Prospect Area, Escambia County,
Alabama, as more particularly set forth in the Agreement.
Unless
otherwise noted herein, all capitalized terms used herein shall have the
meanings given such terms in the Agreement and the Joint Operating Agreement
("JOA") attached as Exhibit B to the Agreement.
For
good
and adequate consideration exchanged between the parties, the receipt and
sufficiency of which is hereby acknowledged and confessed by the parties, the
Agreement is amended as follows:
·
|
Ignis
Petroleum Corporation ("Ignis”) represents that is has acquired all of the
right, title and interest, and obligations of Xxxxxx in and under
the
Agreement.
|
·
|
Ignis
shall have until March 31, 2006, to spud the Initial Well on the
Prospect.
In the event the Initial Well is not spud on or before March 31,
2006,
Ignis shall reassign all of the right, title and interest acquired
under
the Agreement to Argyle. The "second payment" as referenced and described
in the Agreement shall be paid to Argyle on or before September 30,
2005.
|
·
|
Under
no circumstance, and notwithstanding anything contrary in the JOA,
BCE
shall have no obligation to propose the Initial Well, determine its
location, determine its depth. or determine by which date it will
be
commenced.
|
·
|
BCE
shall have no obligation to perform any operations on the Prospect
Area
until such time as Ignis has fully satisfied its escrow obligations
as
provided in the Agreement.
|
·
|
It
is acknowledged and agreed that BCE commenced its obligations under
paragraph 12 of the Agreement on September 1, 2005, and therefore
Ignis's
payment obligations of $10,000,00 per month and per well, as described
in
paragraph 12 of the Agreement, arose on September 1,
2005.
|
This
amendment to the Agreement may be executed in two or more counterparts, each
of
which shall be deemed an original, but all of which together shall constitute
one and the same document.
A
the
foregoing corresponds to your understanding of the amendment to the Agreement,
please indicate your acceptance in the space provided below and return a fully
executed copy hereof to me for my files.
Sincerely,
ARGYLE
ENERGY, INC.
By:
|
/s/Xxxxx
Xxxxx
|
Title:
President
AGREED
AND ACCEPTED THIS 29TH DAY OF SEPTEMBER, 2005.
IGNIS
PETROLEUM CORPORATION
By:
|
/s/
Xxxxxxx X. Xxxxxx
|
Title:
President & CEO
BAYOU
TITLE EXPLORATION F/K/A BLUE RIDGE ENERGY, INC.
By:
|
/s/
Xxxxx Xxxxxx
|
Title:
SR
VP