EXHIBIT 10.18
AMENDING AGREEMENT BETWEEN BOUNTY DEVELOPMENTS LTD. AND
1286664 ALBERTA LTD., DATED APRIL 16, 2007
BOUNTY DEVELOPMENTS LTD. 0000, 000 - 00 Xxx. X.X.
Xxxxxxx, XX
X0X 0X0
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Tel (000) 000-0000
Fax (000) 000-0000
XXXXXX@XXXXXXXXX.XXX
April 16, 2007
1286664 ALBERTA LTD.
00 Xxxxxxx Xxxx X.X.,
Xxxxxxx, Xxxxxxx X0X 0X0
ATTENTION: XXXXXXX XXXXXXX
Dear Sir:
RE: FARMOUT AGREEMENT RE: FIREBAG, ALBERTA DATED ON OR ABOUT DECEMBER
12, 2006 BETWEEN BOUNTY DEVELOPMENTS LTD. ("BOUNTY") AND 1286664
ALBERTA LTD. ("1286664"), AS AMENDED BY AGREEMENTS DATED JANUARY 22,
2007 AND FEBRUARY 20, 2007 (THE "FIREBAG FARMOUT AGREEMENT")
SECTIONS 25-36 XXX 00 XXX 0 X0X
XXXXXXXX 0-0 XXX 00 XXX 0 X0X
OIL SANDS BELOW THE TOP OF THE VIKING FM TO BASE WOODBEND GRP
BOUNTY FILES: AM- 227-001 & AM-227-002
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In consideration of the premises and the mutual agreements set out in this
Agreement, the parties agree to amend the Farmout Agreement and stipulate that
Farmee has met its earning obligations as follows:
1. Bounty agrees that Farmee has conditionally met its earning obligations under
the Farmout Agreement by virtue of making a cash payment of $5,100,000 plus
interest due on February 27, 2007, and paying for the drilling of various
evaluation xxxxx.
WORKING INTERESTS:
BEFORE EARNING AFTER EARNING
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Bounty: 100% 25%
1286664: 0% 75%
ENCUMBRANCES:
Crown S/S
1% Diamond Head XXXX
2. The above-mentioned earning is conditional upon Farmee complying with clause
3.04 of the Farmout & Royalty Procedure, continuing to comply with clause 3(c)
of the Farmout Agreement and paying any further cash calls which may be required
under prior or future AFEs on the above lands in connection with the above
evaluation xxxxx or the joint access road built with Athabasca Oil Sands.
3. Bounty's 25% Working Interest shall be treated as a carried interest until
such time, if any, as Farmee has spent a further $1,500,000 on exploration
(drilling or seismic) expenses or other agreed expenses on the Farmout Lands
after which time Bounty's 25% interest shall be considered a non-carried working
interest and it shall be responsible for its share of further agreed expenses
incurred for the joint account. This amount of $1,500,000 shall be adjusted by
the parties after all invoices from the 2006-2007 drilling and seismic programs
have been received and totaled.
If 1286664 is in concurrence with the foregoing, please sign and return one (1)
copy of this letter to the attention of the undersigned at your earliest
convenience.
Should you have any questions or concerns, please contact the undersigned at
264-4994.
Yours truly,
BOUNTY DEVELOPMENTS LTD.
/s/ Xxxx X. Xxxxx
Xxxx X. Xxxxx
Land Manager
Acknowledged and Agreed to this 16TH day of APRIL , 2007
1286664 ALBERTA LTD.
PER: /s/ XXXXX XXXXXXXX
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