Contract
EXHIBIT
10.1
 March
20, 2007
|
BP
America Production Company
Onshore
Business Unit
Onshore
Gulf Coast Asset Area
000
Xxxxxxxx Xxxx Xxxxxxxxx
Xxxxxxx,
Xxxxx 00000
Xxxxxxx
X. Xxxxxxx
Senior
Land Negotiator
Phone: 000.000.0000
Fax: 000.000.0000
|
FAX
AT (000) 000-0000
Xx.
Xxxx
X. Folnovic
0000
Xxxxx Xxxxxx, 00xx
Xxxxx
Xxxxxxx,
Xxxxx 00000
|
RE:
|
Development
Agreement, dated effective January 1, 2007,
|
|
By
and between BP America Production Company and
|
|
|
True
North Energy Corp. (the “Agreement”)
|
|
|
Badger
Prospect, Pointe Coupee Parish,
Louisiana
|
Dear
Xxxx:
BP
America Production Company (“BP”) has drilled the BP America Production Company;
A. Major Heirs #1 well (the “Well”) to 18,250’ MD, and BP believes that the Well
has been drilled to the base of the Tuscaloosa B-3 sand. BP halted the drilling
at a bit change point and ran the following logs in the Well and provided them
to True North Energy Corp. (“True North”): HRI/FWS/NGR/RWCH/JARS and Dipmeter
Imager/Jars. In addition, BP has run a VSP and the results of that survey will
be delivered shortly.
BP
has
not reached the “Objective Depth” as defined in the Agreement (18,500’ or
stratigraphic equivalent of the base of the Tuscaloosa C-1 sand, whichever
occurs first). It is too early to say with certainty, but the zones encountered
to date appear to be wet, with no commercial hydrocarbons. It is BP’s
recommendation that drilling be continued in an attempt to encounter deeper
sands encountered in the Amerex - Major Heirs #1, but BP cannot correlate those
sands to this well at this time. BP hereby proposes to continue drilling the
Well to a depth of 18,600’ MD and amend the definition of “Objective Zone” to
allow BP and True North the opportunity to drill the Well to 18,600’ MD under
the same terms and conditions set forth in the Agreement.
When
and
if this letter (the “Letter Agreement”) is executed by an authorized
representative of both BP and True North having the express authority to amend
the Agreement, BP and True North hereby agree to delete Section 1.24 of the
Agreement in its entirety and replace Section 1.24 of the Agreement with the
following:
1.24 “Objective
Zone”,
with
respect to the Initial Well, means the stratigraphic equivalent of the base
of
the deepest Zone penetrated in the Initial Well, or eighteen thousand six
hundred feet measured depth (18,600’ MD), whichever occurs first in the Initial
Well. The term “Objective
Zone”,
with
respect to any Substitute Well or Additional Well, means the deepest Zone to
which the Substitute Well or Additional Well is proposed to be drilled as
provided in the relevant AFE for such well.
Please
execute in the designated space below and return it to the attention of the
undersigned by fax and by overnight delivery prior to 5:00 pm Central Time
on
March 21, 2007. If BP does not receive a copy of this Letter Agreement, executed
by an authorized representative of True North, prior to 5:00 pm Central Time
on
March 21, 2007, this Letter Agreement shall automatically be deemed withdrawn
and terminated at that time and shall be of no further force or
effect.
Respectfully,
/s/
Xxxxxxx X. Xxxxxxx
Xxxxxxx
X. Xxxxxxx
BP
America Production Company
Xx.
Xxxx
X. Folnovic
March
20,
2007
Page
2 of
2
ACCEPTED
AND AGREED TO ON MARCH 20, 2007, BY:
BP
AMERICA PRODUCTION COMPANY
|
By:
|
/s/
Xxxxxx X. Xxxxxx
|
|
Xxxxxx
X. Xxxxxx
|
|
|
Attorney-in-Fact
|
ACCEPTED
AND AGREED TO ON MARCH 20, 2007, BY:
|
By:
|
/s/
Xxxx Folnovic
|
|
Xxxx
Folnovic
|
|
|
President
& CEO
|
