EXHIBIT 6.9
[LETTERHEAD OF PAN WESTERN APPEARS HERE]
[LOGO OF PAN WESTERN]
February 6, 1996
Xx. Xxx X. Xxxxxxxxxx
Kato Operating Company
P.O. Box 960
Bristow, OK 74010
RE: Northwest Antelope Mississippi Chat Unit
Garfield County, and Noble County, Oklahoma
Dear Xxx:
Pursuant to our conversation yesterday, the following represents my
understanding of the agreement reached between Pan Western Energy Corporation
("PWEC") and Xxx X. Xxxxxxxxxx ("BEL"):
1. Pan Western will pay to BEL monthly, commencing with February 1, 1996
production revenues, an amount equal to 3.93694% of net revenues less 4.77328%
of the lease operating expenses attributable to the above referenced unit.
2. Notwithstanding Paragraph 1. above, PWEC will receive the first Six
Thousand Dollars ($6,000.00) of net revenues less lease operating expenses
attributable to the BEL interest prior to BEL receiving any distributions
attributable to said interest.
3. PWEC will pay all workover costs associated with the implementation of the
water flood unit hereinabove described and no such costs will be attributed to
the BEL interest.
4. In consideration of the remuneration described in Paragraphs 1., 2., and
3., above, BEL will provide to PWEC evaluation and reservoir engineering
services relating to the following fields and xxxxx:
A. Centrahoma Field, Coal County, Oklahoma
X. Xxxxxx County, Texas Xxxxx
X. Xxxx Flowers Unit, Stonewall County, Texas
5. The evaluation and reservoir engineering services to be provided by BEL to
PWEC shall be designed to result in recommendations by BEL to PWEC as to how
PWEC can maximize the recovery of all its oil
and gas reserves located in and under the hereinabove described fields and/or
xxxxx set forth in Paragraph 4. BEL's recommendations will be accompanied by
supporting data as deemed necessary and appropriate to assist PWEC with its
annual independent reserve report and sale of any prospect(s), re-works or
developmental opportunities identified by BEL in the areas hereinabove set forth
in Paragraph 4.
6. For purposes of this agreement, the order of priority of the projects to be
undertaken by BEL will be as set forth in Paragraph 4. above. Since it is
understood by both parties that time is of the essence, the overall services to
be performed by XXX will be completed by June 30, 1996. BEL's services relating
to the Centrahoma Field, Coal County, Oklahoma will be completed by February 21,
1996.
7. The effective date of this agreement is February 1, 1996.
If the above summation clearly reflects your understanding of the agreement
reached between Pan Western Energy Corporation and yourself, please execute the
enclosed copy of this letter where indicated and return same to the undersigned
as soon as possible.
My best regards,
PAN WESTERN ENERGY CORPORATION
/s/ Xxx X. Xxxxxxxx
Xxx X. Xxxxxxxx, President
Accepted:
/s/ Xxx X. Xxxxxxxxxx
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Xxx X. Xxxxxxxxxx
Dated: 02-27-96
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