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EXHIBIT 10.17
[OMIMEX DE COLOMBIA, LTD. LETTERHEAD]
November 13, 1995
Xx. Xxxxx Xxxxxxxxx
Saba Petroleum Company & SabaCol, Inc.
00000 Xxx Xxxxxx Xxx.
Irvine, CA 92714
RE: LETTER AGREEMENT OF NOVEMBER 9, 1995 REGARDING LETTER
OF CREDIT FOR ECOPETROL
Dear Xxxxx:
In follow up to our discussion, it is hereby agreed that the above
referenced Letter Agreement shall be amended to provide that Saba shall place
acceptable collateral with Bank One, Texas, N.A. by December 10, 1995 rather
than by December 1, 1995. All other terms and conditions of the Letter
Agreement shall remain as originally agreed upon by the parties.
Please indicate your agreement by signing and returning one copy of
this letter.
Very truly yours,
OMIMEX DE COLOMBIA, LTD.
XXXXXX XXXXXXXX
-----------------------------------
Xxxxxx Xxxxxxxx
President
AGREED AND ACCEPTED THIS 15 DAY OF NOVEMBER, 1995
Saba Petroleum Company
SabaCol, Inc.
XXXXX XXXXXXXXX
----------------------------
Xxxxx Xxxxxxxxx, President
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[OMIMEX DE COLOMBIA, LTD. LETTERHEAD]
November 9, 1995
Xx. Xxxxx Xxxxxxxxx
Saba Petroleum Company & SabaCol, Inc.
00000 Xxx Xxxxxx Xxx.
Irvine, CA 92714
RE: LETTER OF CREDIT FOR ECOPETROL
Dear Xxxxx:
Upon execution by Saba Petroleum Company and SabaCol, Inc. ("Saba"),
this letter shall evidence Saba's agreement regarding placing collateral with
Bank One, Texas, N.A. ("Bank") to support a letter of credit issued by Bank in
the name of Omimex de Colombia, Ltd. ("Omimex") to Empresa Colombian de
Petroleos ("Ecopetrol") which is being issued to support Xxxx's fifty percent
(50%) share of the requirement of a $3,500,000 letter of credit pursuant to
terms as set forth in the Cocorna Association Contract Extraordinary Committee
No. 51 Minute and the Nare Association Contract Extraordinary Committee No. 35
Minute both dated September 11, 1995.
Xxxx agrees on or before December 1, 1995 to place, in form acceptable
to Bank, collateral of $1,750,000 to support the above letter of credit. This
collateral shall, at the option of Omimex and Bank, either be (i) a Certificate
of Deposit in the amount of $1,750,000 or (ii) a commitment against Saba's
borrowing base with Bank of $1,750,000.
The cost of the above described letter of credit shall be 2.5% of the
$1,750,000 (ie $43,750) and shall be paid by Saba prior to the issuance of
the letter of credit. Further, any other out of pocket costs, including but
not limited to attorney fees related to the amendment of Omimex's revolving
credit agreement with Bank, incurred by Omimex in obtaining and maintaining
Xxxx's 50% of said letter of credit shall be paid by Xxxx.
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Xx. Xxxxx Xxxxxxxxx
November 9, 1995
Page 2
Please indicate your agreement by signing and returning one copy of
this letter.
Very truly yours,
OMIMEX DE COLOMBIA, LTD.
XXXXXX XXXXXXXX
---------------------------------
Xxxxxx Xxxxxxxx
President
Agreed and Accepted this 10 day
of November, 1995
Saba Petroleum Company
SabaCol, Inc.
XXXXX XXXXXXXXX
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