Bayshore Exploration L.L.C. 20501 Katy Freeway, Suite 216 Katy, Texas 77450 Phone (281) 646-1919 Fax (281) 647-9448 bayshoreexpl@sbcglobal.net
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Bayshore Exploration L.L.C. |
00000 Xxxx Xxxxxxx, Xxxxx 000 |
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Katy, Texas 77450 |
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Phone (000) 000-0000 |
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Fax (000) 000-0000 |
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xxxxxxxxxxxx@xxxxxxxxx.xxx |
March 8, 2006
Xxxxxx Energy, Inc.
0000 Xxxxx Xxxxxx Xxxxxx
Suite 6232
Carson City, Nevada 89706
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3,200 acres, more or less |
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La Salle County, Texas |
Gentlemen:
This letter is written to evidence the agreement between Bayshore Exploration L.L.C. (“Bayshore”) and Xxxxxx Energy, Inc., (“Xxxxxx”) pertaining to the acquisition and development of certain oil and gas leases and oil and gas lease options located in La Salle County, Texas.
Bayshore is in the process of acquiring certain oil and gas leases and/or oil and gas lease options on 3,200 acres (“the subject acreage”), more or less, for the purpose of oil and gas exploration and production. The subject acreage is outlined on the attached land plat and described as follows, to wit:
Tract One - 640 acres, more or less, being all of the H. & G.N.R.R. Survey No. 121, A-260, La Salle County, Texas.
Tract Two - 640 acres, more or less, being all of the X. Xxxxxxxx Survey No. 140, A-1084, La Salle County, Texas.
Tract Three- 640 acres, more or less, being all of X. Xxxxxxxx Survey No. 150, A-1042, La Salle County, Texas.
Tract Four- 640 acres, more or less, being all of the H. & G.N.R.R. Survey No. 139, A-267, La Salle County, Texas.
Tract Five - 640 acres, more or less, being all of the X. Xxxxxxxx Survey 122, A-1082, La Salle County, Texas.
Xxxxxx desires to participate for a 50% working interest ownership in the acquisition and development of the subject acreage and hereby agrees to the following terms and conditions:
• Page2 March 16, 2006
1. Xxxxxx agrees to pay to Bayshore, on or before March 20, 2006, the sum of $305,000.00 U.S. dollars which represents Xxxxxx’x share (50%) of the lease and lease option acquisition costs. In the event Xxxxxx does not pay Bayshore the sum of $305,000.00 U.S. dollars on or before March 20, 2006, then this letter agreement and all of its terms and conditions will become null and void.
2. Bayshore agrees to make its best effort to acquire said leases and lease options on the subject acreage within 90 days of the date of this letter agreement.
3. In the event that Bayshore is unable to acquire all the subject tracts Xxxxxx’x deposit shall be applied at the pro-rata cost base and the balance returned to Xxxxxx.
4. Bayshore also agrees, upon acquisition of said leases and lease options on the subject acreage, to assign Xxxxxx a 50% working interest ownership in the acquired leases and lease options.
5. Within ninety days of this agreement, Xxxxxx shall have an option to increase its leasehold working interest in the subject acreage to seventy-five percent on the same costs, terms and conditions as provided herein.
6. Bayshore and Xxxxxx agree to enter into a mutually acceptable Joint Operating Agreement to cover oil and gas exploration and production operations on the subject acreage naming Bayshore as operator.
7. This agreement is the entire agreement between Bayshore and Xxxxxx pertaining to the lease acquisition and options of the subject acreage. Any changes to this agreement must be agreed to in writing by both parties.
If the foregoing is your understanding of our agreement, please acknowledge your acceptance by signing in the space provided below and returning one fully executed agreement to Bayshore along with your check in the amount of $305,000.00 U.S. dollars on or before March 20, 2006.
Sincerely,
BAYSHORE EXPLORATION L.L.C.
/s/ Xxxxx Xxxxxxxx
Xxxxx Xxxxxxxx
President
Attachment: Land Plat
AGREED to and ACCEPTED this 15th day
of March, 2006.
XXXXXX ENERGY, INC.
By: /s/Xxxxxx Xxxxxxxx
Xxxxxx Xxxxxxxx, CEO
ATTACHMENT
