EXHIBIT 10.16
1
February 24, 2005
X.X. Xxxxxxx Investment, L.L.C. 00000 Xxxxxxx Xxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Attn: Xx. Xxxx X. Xxxxx
Re: Option Agreement for the Purchase of Oil & Gas Leases
Dated Xxxxx 0, 0000
Xxxxxxxxx:
Reference is made to that certain "Option Agreement for the Purchase of Oil and
Gas Leases" dated March 5, 2004, hereinafter referred to as the "Agreement",
between X.X. Xxxxxxx Investment, L.L.C. (herein referred to as "Addison"),
GulfWest Energy Inc. ("herein referred to as GulfWest"), and Setex Oil and Gas
Company ("herein referred to as "Setex"). Pursuant to the Agreement, Addison
granted GulfWest the option to acquire certain oil and gas leases and xxxxx
located in the Iola Field, Xxxxxx County, Texas.
This letter agreement shall constitute notice pursuant to Article IV (A) of the
Agreement that GulfWest has elected to exercise its rights to acquire the oil
and gas leases and xxxxx covered by the Agreement.
Addison and GulfWest hereby acknowledge the Agreement remains in full force and
effect and that upon payment of the Redemption Price set forth in the Agreement
the Option Note will be cancelled and Addison will execute an appropriate
instrument of "Assignment, Conveyance and Xxxx of Sale" conveying to GulfWest
all right, title and interest held by Addison in such oil and gas leases and
xxxxx.
Further, as evidenced by Addison execution of this letter agreement, Addison has
elected not to retain a working interest in the oil and gas leases and xxxxx
covered by the Agreement pursuant to Article V of the Agreement.
Sincerely,
/S/ XXXXXX X. XXXXXXX
-------------------------------
Xxxxxx X. Xxxxxxx
President
1
Agreed to and acknowledged this 24th day of February 2005.
X.X. Xxxxxxx Investment, L.L.C.
/S/ XXXX X. XXXXX
-------------------------------
Xxxx X. Xxxxx
President
2
