GULFMARK
ENERGY, INC.
April 2, 2004
Seller
T K PetroSearch, LLC
0000 XX Xxxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Attention: T Xxxxxx Xxxxx
Fax 000-000-0000
Re: GulfMark Contract No 51773 T K PetroSearch Contract No
This Crude Oil Purchase Agreement is made between Buyer and Seller, concerning
the purchase of crude oil under the following terms and conditions:
LOCATION: See attached Exhibit "A".
PRICE: See the attached Exhibit "A".
TERM: Effective March 1, 2004 through March 31, 2004 continuing month to month
thereafter unless cancelled by either party with thirty (30) days advance
written notice.
TAXES: Buyer is hereby authorized to withhold from the proceeds allocable to the
sale and delivery of crude hereunder the amount of severance taxes levied by
State and Federal Agencies.
PAYMENT: Subject to verification of deliveries, payment for crude oil sold and
delivered shall be made via check on or about the twentieth (20th) day of the
month following the month of delivery.
WARRANTY: Seller warrants and represents that the quality of crude
oil/condensate delivered hereunder shall be merchantable and without
contaminants. Any charges, fees, or adjustments that may be assessed due to
violation of warrants shall be paid by Seller.
GENERAL TERMS & CONDITIONS: In addition to the terms set forth herein, this
Agreement shall be expressly subject to all of the terms and provisions of
Conoco's General Provisions dated January 1, 1993, incorporated herein by
reference for all pertinent purposes.
If the forgoing is acceptable, PLEASE NOTE YOUR ACCEPTANCE BY EXECUTING IN THE
SPACE PROVIDED BELOW AND RETURN BY FAX TO (000) 000-0000 FOR OUR RECORDS. If a
reply is not received within ten (10) business days, it will constitute
acceptance of the conditions stated herein.
GULFMARK ENERGY, INC TK PETROSEARCH, LLC
/s/ Xxxx X. Xxxxxxx
Xxxx X Xxxxxxx
Manager, Gulf Coast /s/ Xxxxx X. Xxxxxxx CFO
Crude Oil Acquisitions ---------------------------------
000-000-0000
Fax 000-000-0000 ---------------------------------
XX.xx
X.0. XXX 000 - XXXXXXX, XXXXX 00000 - (000) 000-0000
GulfMark No 51773
Page 2
EXHIBIT "A"
GULFMARK ENERGY, INC. CONTRACT NO. 51773
LEASE NO LEASE NAME OPERATOR COUNTY/ST
-------- ---------- -------- ---------
0000000 XXXX XXXXXXX"X" XXXXXXXXXXX XXXX XXXX, XX
PRICE:
The monthly average of Xxxx Supply & Trading LP's posted price for West Texas
Intermediate crude, deemed 40 degrees API gravity, EDO, plus one dollar and
seventy-five cents ($1.75) per barrel.
