Exhibit 10.4
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Prima Oil & Gas Company
December 13, 2001
Unioil
Xxxxxx Associates of Greeley, Inc.
X.X. Xxx 000
Xxxxx, XX 00000
RE: Farmout/Farmout Option
Agreement dated 11/7/96
Weld County, Colorado
Gentlemen:
Due to the drop in oil and gas prices, Prima Oil & Gas Company decided to
suspend drilling operations until 2002. We did not feel it was prudent to
develop the reserves at the low prices. Therefore, we respectfully request that
we extend the termination date of our Farmout/Farmout Option Contract until the
end of 2002.
The locations left are as follows:
Township 5 North, Range 65 West
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Section 23: SWNE; NESW; SWSE
Section 24: SWNW
Township 5 North, Range 67 West
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Section 11: SE/4; E/2SW/4; NWSW
Section 22: NWSE; W/2NE/4; SENE
Township 6 North, Range 66 West
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Section 30: S/2SW/4
Pursuant to that certain Farmout/Farmout Option Agreement dated November 7,
1996, ("the Agreement") between Unioil, ("Unioil"), Xxxxxx Associates of
Greeley, Inc. ("JAGI") and Prima Oil & Gas Company ("Prima"), the rights under
the Agreement will terminate December 31, 2001. Unioil, JAGI and Prima hereby
agree to extend the termination date from December 31, 2001 to December 31,
2002.
0000 00xx Xxxxxx x Xxxxx 000 x Xxxxxx, Xxxxxxxx 00000
Office: 000.000.0000 o Fax: 000.000.0000 o xxx.xxxxxxxxxxx.xxx
If you are in agreement with the foregoing, please sign, date and return
one copy of this letter at your earliest convenience.
Sincerely,
PRIMA OIL & GAS COMPANY
/s/ Xxxxx Xxxxxx
Xxxxx Xxxxxx, CPL
Xxxxxxx
AGREED TO AND ACCEPTED THIS 14th DAY OF DECEMBER, 2001.
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UNIOIL XXXXXX ASSOCIATES OF GREELEY, INC.
/s/ X. X. Xxxxx /s/ X.X. Xxxxx
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Printed Name: X. X. Xxxxx Printed Name: X. X. Xxxxx
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Title: VP Title: VP
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