AMENDMENT #1
TO THE ASSOCIATION AGREEMENT ENTERED ON 13TH JULY 1995
Contracting Parties
1. NAFTA a.s. Gbely
Address: 000 00 Xxxxx, Xxxxxx Xxxxxxxx
Organisation Identification Number: 31 409 938
Represented by: Ing. Xxxxx Xxxxxxxx - Chairman of the Board of
Directors
Ing. Xxxxx Xxxxxxxx - Vice Chairman of the Board of
Directors
(Hereinafter referred to as "NG")
2. DANUBE INTERNATIONAL PETROLEUM COMPANY, Structural Unit
Address: Xxxxxxxx 00, 000 00 Xxxxxxxxxx, Xxxxxx Xxxxxxxx
Represented by: Xxxxx Csekes, Manager of the Structural Unit
-a proxy having power of attorney
(Hereinafter referred to as "DIPC")
as the "NAFTA-DANUBE" Association Members
have agreed
on herein alterations to The Association Agreement entered on 13th July 1995.
Therefore Subsections 4. and 5. with the following content have been added to
the Article III, "Purpose and Subject of the Association":
ARTICLE III.
Purpose and Subject of the Association
4. The Association Members have agreed that it is a subject of mutual interest
to expand the area of the joint exploration programme and conduct further
exploration for hydrocarbons in the Area of Mutual Interest - "AMI 3"
defined in the Exhibit E.
AMI 3 includes Lipany region with area of 48.33 km2. It is a joint
activity of the Association Members.
NG represents and warrants that it is a fully authorised owner of an
exploration license in AMI 3 as stipulated in Section 4, Act NO. 52/1988
Coll. amended by Act Xx. 000/0000 Xxxx.
0. Xxxxxxxxxxxxxx xx XXX 0 work programme:
5.1 The Testing Phase #1 in the Lipany area
The Testing Phase shall be conducted within three (3) months from the
date of execution of the Amendment #1.
Engineering and geological study shall be elaborated within three
months (3) from the date of execution of the Amendment #1.
DIPC agrees to cover 100% of the costs for this Testing Phase, which
is around 20 000.-USD (twenty thousand US Dollars).
5.2 The Testing Phase #2 in the Lipany area
The Testing Phase #2 is contingent of the results of Testing Phase #1.
The Test Phase shall be conducted after the date of execution of the
Amendment #1 in a time frame determinated by the JMC.
The Testing Phase #2, which includes completion and fracturing of the
Lipany 1 well, shall be concluded after the date of execution of the
Amendment #1 in a time frame determinated by the JMC.
DIPC agrees to cover 100% of the costs for the Testing Phase #2, which
amounts to 1 000 000.-USD (one million US Dollars).
5.3 DIPC agrees to provide either 100% of funds for The Testing Phases #1
and #2 or any equivalent investment for other relevant works agreed
by JMC.
5.4 All the additional investments required after finishing The Testing
Phases #1 and #2 shall be paid in the following proportion:
NG 50%
DIPC 50%
5.5 In case that it becomes a subject of The Association interest to use
the positive xxxxx "Lipany 3" and "Lipany 4" owned by NG, the
Association Members have agreed to elaborate an Amendment #2 to the
Association Agreement which shall stipulate conditions of a NG
material investment of the above xxxxx and an equivalent DIPC
financial deposit. The financial deposit will be used to cover the
costs of work agreed by JMC.
The other provisions of The Association Agreement entered on 13th July 1995 have
not been altered, revised or amended and remain valid.
FINAL CONDITIONS
1. The Association Members have read The Amendment #1 to The Association
Agreement entered on 13th July 1995 and declare that they have signed it
voluntarily, not under compulsion or evidently disadvantageous conditions.
As stipulated in the Article XV., the Subsection 2., of The Association
Agreement, The Amendment #1 was unanimously agreed by the "NAFTA - DANUBE"
JMC on 24th October 1996.
Each Association Member shall receive two originals of this Amendment
written in Slovak.
2. The Amendment #1 shall become effective on the date on which it is signed.
3. Exhibit "E" is the only attachment to The Amendment #1.
In Gbely In Bratislava
NAFTA a.s. Gbely DANUBE INTERNATIONAL PETROLEUM
COMPANY - represented by the Manager of
its Structural Unit in Slovakia
/s/ Ing. Xxxxx Xxxxxxxx /s/ Xxxxx Csekes
/s/ Ing. Xxxxx Xxxxxxxx
EXHIBIT "E"
COORDINATES AND PLANE OF AMI III.
[Chart/Graph depicting Exploration System of coordinates: JTSK
Area of Bajerovce and AMI III]
POINT abscissa "Y" abscissa "X"
1.
2. 279720.00 1186820.00
3. 274900.00 1191300.00
4. 275200.00 1192900.00
5. 281390.00 1191840.00
6. 291630.00 1189830.00
7.
PLANE of AMI III. = 48 330 750m
