BP America Production Company Letterhead)
EXHIBIT
10.3
(BP
America Production Company Letterhead)
VIA
EMAIL AND FAX
▇▇.
▇▇▇▇
▇. Folnovic
▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇
▇▇▇▇▇
▇▇▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇▇▇
| RE: | Development Agreement, dated effective October 1, 2006, |
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By
and between BP America Production Company and
Caribou
Prospect, Pointe Coupee Parish,
Louisiana
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Dear
▇▇▇▇:
BP
America Production Company (“BP”) has drilled the BP America Production Company;
▇. ▇▇▇▇▇▇▇ Heirs #1 well (the “Well”) to 20,087’ MD, and BP believes that the
Well has been drilled to the base of the Tuscaloosa B-1 sand. BP has run the
following logs in the Well and provided them to True North Energy Corp. (“True
North”): Induction/Sonic and Neutron/Density electric logs.
In
light
of the expense involved with an attempted completion and installation of
production facilities, the Well, at its current depth as evaluated, is a dry
hole with no commercial hydrocarbon accumulations. Thus, BP hereby proposes
to
deepen the Well to test the amplitude anomaly at an approximate depth of 21,400’
MD and amend the definition of “Objective Zone” to allow BP and True North the
opportunity to deepen the Well under the same terms and conditions set forth
in
the Agreement.
When
and
if this letter (the “Letter Agreement”) is executed by an authorized
representative of both BP and True North having the express authority to amend
the Agreement, BP and True North hereby agree to delete Section 1.28 of the
Agreement in its entirety and replace Section 1.28 of the Agreement with the
following:
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1.28 “Objective
Zone”,
with respect to the Initial Well, means the stratigraphic equivalent
of
the base of the deepest Zone penetrated in the Initial Well, or twenty-one
thousand five hundred feet measured depth (21,500’ MD), whichever occurs
first in the Initial Well. The term “Objective
Zone”,
with respect to any Substitute Well or Additional Well, means the
deepest
Zone to which the Substitute Well or Additional Well is proposed
to be
drilled as provided in the relevant AFE for such well.
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Please
execute in the designated space below and return it to the attention of the
undersigned by fax and by overnight delivery prior to December 12, 2006 at
5 pm
Central Time. If BP does not receive a copy of this Letter Agreement, executed
by an authorized representative of True North, prior to December 12, 2006 at
5
pm Central Time, this Letter Agreement shall automatically be deemed withdrawn
and terminated at that time and shall be of no further force or
effect.
Respectfully,
| /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||
| ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||
| Senior Land Negotiator |
▇▇.
▇▇▇▇
▇. Folnovic
December
11, 2006
Page
2 of
2
ACCEPTED
AND AGREED TO ON DECEMBER 11th, 2006, BY:
BP
AMERICA PRODUCTION COMPANY
| /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ |
|||
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Attorney-in-Fact
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ACCEPTED
AND AGREED TO ON DECEMBER 11th, 2006, BY:
| /s/ ▇▇▇▇ Folnovic | |||
|
▇▇▇▇ Folnovic |
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President
&
CEO
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