Exhibit 10
[AVRO ENERGY LOGO]
JULY 2, 2009
ATTENTION: FREDCO, LLC
This Letter Agreement dated for reference as of July 2, 2009, between Avro
Energy Inc., a Nevada company, with a registered address at 9 Church Lane,
Copthorne, West Sussex, England RH10 3PT, (the "Purchaser") and Fredco LLC of
Xxxxxxx Xxxxxxxxx, X.X.X. 00000 (the "Seller").
This Letter Agreement shall set forth the terms of an agreement between the
Purchaser and the Seller, which, when accepted and executed below, shall form a
binding agreement between Purchaser and Seller, subject only to incorporation
and expansion of the terms hereof into a more formal agreement (the "Formal
Agreement"), pending which, this Letter Agreement shall prevail.
1. For consideration of $100,000 USD, payable upon signing of the Formal
Agreement, the Seller agrees to sell to the Purchaser the following
assets (the "Assets"):
a. The Xxxx Xxxxxx Lease located on Section 24 Township 22 North
Range 15 West Caddo Pine Island Field located near Hosston
Louisiana, the details of which are included in Schedule A
attached; and
b. The Nachatosh Formation A and B sands (which include but are not
limited to 22 xxxxx, of which 13 xxxxx are producing with another
7 xxxxx needing production equipment and 2 xxxxx which are water
disposal xxxxx). All equipment associated with these xxxxx and
the details of these xxxxx are outlined in Schedule A attached.
Production from these xxxxx is subject to a 20% overriding
royalty.
2. In addition, the Seller grants the Purchaser the exclusive option to
purchase all of the remaining oil field assets and equipment of Fredco
LLC for a total of $2,500,000.
3. In the event the signing of the Formal Agreement does not occur on or
by August 30, 2009, then this Letter Agreement may be terminated at
the option of the Seller, and will have no force and effect after this
date.
4. The Seller covenants that it has owned, possessed, and operated said
oil field and gas leases peaceable and to its knowledge and belief no
current problems exist as to the working interest and ownership of the
Assets. The Seller does hereby state that it has been in compliance
with the Louisiana Conservation Rules and Regulations, and to its
0 XXXXXX XXXX, XXXXXXXXX, XXXX XXXXXX XX00 0XX XXXXXXX
XXXXXXXXXX@XXXXX.XXX
knowledge and belief knows of no environmental issues pending or
violations against said Assets. There are no warranties express or
implied with respect to the Assets.
Please indicate your agreement to this Letter Agreement set forth herein by
signing and returning this letter to the undersigned.
Yours Sincerely,
AVRO ENERGY INC.
Per: /s/ XXXXXXX X. XXXXXXXXX
-----------------------------------
Name: XXXXXXX X. XXXXXXXXX
Title: President
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THE UNDERSIGNED HEREBY AGREE AND ACCEPT THE TERMS OF THIS LETTER AGREEMENT THIS
__ DAY OF JULY, 2009.
FREDCO LLC
Per: /s/ XXXX XXXXXXX
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Name: XXXX XXXXXXX
Title: Manager and Authorized Signatory
