Warpath Energy Inc. 11119 East 39th Street Tulsa, Oklahoma 74146 Cloud Creek Project Participation Agreement
Warpath Energy Inc.
00000 Xxxx 00xx Xxxxxx
Xxxxx, Xxxxxxxx 00000
000-000-0000, 000-000-0000
Cloud Creek Project Participation Agreement
Warpath Energy Inc., agrees to sell and you have agreed to purchase 5% Working Interest in the Cloud Creek Project, Muskogee County, Oklahoma, under the following terms and conditions:
1.
You will pay your share of $350,000, which includes the acquisition and work-over of the Cloud Creek Project, well bores, production equipment, and leasehold of 780 acres more or less, with a Net Revenue Interest no less than 75% (see lease schedule).
2.
Warpath Energy Inc., will retain a 6.25% carried Working Interest in the Cloud Creek Project, as operator of record and managing partner.
3.
An area of mutual interest (AMI) shall be created by this agreement and shall extend to all producing properties and leases within a mile radius of the project leasehold. Any leases or producing properties acquired within the AMI boundaries shall be subject to the terms of this agreement.
4.
All parties shall execute a Joint Operating Agreement (JOA), appropriate to the project. The basic terms of the JOA shall reflect accepted industry practices and standards to include:
a. A monthly operating fee of $150/active well.
b. A non-consent clause for the drilling of additional xxxxx.
5.
All terms and amounts shall be proportionately reduced to the Working Interest acquired.
6.
Warpath Energy Inc., will supervise and manage the re-work (see AFE schedule) of the xxxxx in the Cloud Creek Project. All work shall be performed in accordance with accepted petroleum industry standards.
To execute this agreement, please sign the agreement, the AFE signature page and the JOA signature page, and return with a check reflecting the percentage of Working Interest subscribed to above.
If you have further questions please call 000-000-0000 during normal business hours or email at XXXXxxxxxxx@xxx.xxx.
Sincerely,
/s/ Xxxx Xxxxx Xxxxxxxx
Xxxx Xxxxx Xxxxxxxx
Bonded Oklahoma Corporation Commission Operator, and Registered Engineer
Agreed and Accepted this 17th day of October, 2003
By:__/s/ Xxxxxxx McDougall______, Title:___President_______________________
Print/Type Name: Xxxxxxx XxXxxxxxx, Micron Enviro Systems, Inc.
Federal Tax ID:___98-0202944_______________________________________
1205 – 000 X. Xxxxxx Xx.
Xxxxxxxxx, XX X0X 0X0
