EXHIBIT 10.4
SARATOGA RESOURCES, INC.
0000 Xxxxxxx Xxxxx, Xxxxx 0
Xxxxxx, Xxxxx 00000-0000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
January 3, 2001
Via Telefax
Mr. Xxxx Xxxxx
Trek Oil and Gas, Inc. ("Trek")
000 Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
RE: Trek Settlement Agreement
Xxxxxx Farms No. 1 Well ("Well")
Xxxxxx Farms Prospect ("Prospect")
Xxxxxx County, Texas
Dear Xxxx:
Pursuant to your acceptance of Saratoga Resources, Inc. and Ivy Oil
Company, L.L.C. (the "Parties") offer of settlement with regard to terminating
Trek's participation in the above Xxxxxx Farms Prospect, the Parties offer the
following.
The Parties will tender payment to Trek in the total amount of
$12,055.35. In consideration of this amount and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Trek
hereby grants, sells, conveys and assigns, equally to the Parties, all of its
right, title and interest, including any and all real and personal property,
contract rights, claims, causes of action and other rights associated with the
"Lands" described below.
The following property shall collectively be described herein as the
"Lands":
(i) all lands located within a one and one-half statute mile radius
of the wellbore for the well, currently located in the southwest
quarter of Block 35, Section 30 in the Xxxxxxxx Survey in Xxxxxx
County, Texas (the "Land");
(ii) all current leasehold interest in any of the Lands including the
exclusive right, during the three year term of the non-compete
agreement set forth below, to negotiate and acquire any and all
leasehold, mineral, royalty, production payment, or other such
interest in the Land;
The Parties, for the above referenced consideration, hereby agree to
accept any and all liability attaching to Trek to plug or abandon the Well. The
Parties or their successors in interest shall be solely liable for all costs and
expenses associated with plugging and abandoning the Well.
As further consideration, Trek acknowledges the confidential and
proprietary nature of the business dealings, data and all associated
documentation and information, associated with the Prospect and agrees not to
disclose or provide access to any such documentation or information related to
the Prospect for a period of three years from date. In addition, Trek agrees not
to deal with or compete in any manner, with regard to the lands located within a
one and one-half statute mile radius of the Xxxxxx Farms wellbore for a period
of three years from date.
The Parties propose that we close vie U.S. Express Mail. Once the
Parties have endorsed the agreed payment to Trek, a copy of the endorsed check
shall be faxed to Trek for Trek's review. Once Trek approves the check and has
properly executed this Settlement Agreement, Trek shall fax a copy of the fully
executed Settlement Agreement to the Parties at (000) 000-0000. Trek shall
thereafter compile the documents and data comprising all of the Prospect
materials in Treks possession, including the original of this properly executed
Settlement Agreement, and shall prepare them for overnight U.S. Express Mail
delivery to the Parties at the address on the above letterhead. Trek shall
advise Saratoga and Ivy of the day Trek will forward the Prospect materials to
the Parties and Saratoga and Ivy agree to promptly forward the endorsed check to
Trek the day by overnight U.S. Express Mail. By executing this Settlement
Agreement Trek agrees to all of the terms, and provisions set forth above which
the Parties also covenant and agree to.
Agreed to and accepted by Trek this 29th day of December 2000.
Trek Oil & Gas, Inc.
Xxxx Xxxxx, President
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