Exhibit 10.4
Agreed terms document under the joint venture shareholders' agreement dated 14th
October 2005 among Baltic Petroleum (E&P) Limited, Siberian Energy Group Inc.
and Zauralneftegaz Limited
RELEASE OF PLEDGE
Siberian Energy Group Inc. ("SEG")
000 Xxxxxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx
XX 00000
9th November 2005
Dear Sirs
ACKNOWLEDGEMENT OF DISCHARGE OF SECURITY
We refer to the pledge and security agreement (the "PLEDGE") dated 28 April 2005
made between SEG and Baltic Petroleum ("BP") pursuant to which SEG granted
security over certain assets as security for the performance of certain
obligations of SEG to BP under the terms of a guarantee from SEG to BP dated 28
April 2005 (the "GUARANTEE") and under an option agreement between BP and SEG
dated 28 April 2005 (the "OPTION AGREEMENT").
BP has pursuant to a deed of release (the "DEED") dated today's date released
and discharged SEG of all obligations under the Guarantee. Further, the Option
Agreement (the "OPTION") has terminated in accordance with its terms as of
today's date and SEG has no further obligations to BP thereunder.
BP hereby acknowledges that the Secured Obligations (as defined in the Pledge)
have been released, discharged, cancelled and/or terminated and therefore, in
accordance with section 9 of the Pledge, the security interest granted under
the Pledge has with effect from today's date terminated and all rights to the
Collateral (as defined in the Pledge) have reverted to SEG.
Yours faithfully
Baltic Petroleum Limited
PLEASE SIGN, DATE AND RETURN TO THE ABOVE ADDRESS THE ATTACHED COPY OF THIS
LETTER AS ACCEPTANCE OF THE ABOVE.
Acknowledged for and on behalf of Siberian Energy Group Inc. by
Sign: /s/ Xxxxx Xxxxxx
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Print Name: Xxxxx Xxxxxx
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Date: November 9,2005
