MODIFICATION TO AGREEMENT
THIS MODIFICATION TO AGREEMENT, made as of this 31st day of January,
l96l, by and between
CANADA SOUTHERN PETROLEUM LTD., a corporation incorporated
under the laws of Canada (hereinafter sometimes referred
to as "Canada Southern"),
- and -
MAGELLAN PETROLEUM CORPORATION, a Panama corporation
(hereinafter sometimes referred to as "Magellan"),
- and -
OIL INVESTMENTS, INC., a Panama corporation (hereinafter
sometimes referred to as "Oil Investments"),
(which aforesaid three corporations are hereinafter
collectively referred to as "C-M-O" and individually as a
member of the C-M-O Group)
AND
HOME OIL COMPANY LIMITED, a corporation incorporated under the
laws of Canada (hereinafter sometimes referred to as "Home")
- and -
XXXX COUNTY LAND COMPANY, a company incorporated under the
laws of California (hereinafter sometimes referred to as
"Xxxx"),
- and -
ALMINEX LIMITED, a company incorporated under the laws of
Canada (hereinafter sometimes referred to as "Alminex")
- and -
UNITED OILS, LIMITED, a corporation incorporated under the
laws of Canada (hereinafter sometimes referred to as "United")
- and -
SIGNAL OIL AND GAS COMPANY, a company incorporated under the
laws of Delaware (hereinafter sometimes referred to as
"Signal")
(the said Home, Xxxx, Alminex, United and Signal being
hereinafter collectively referred to as "H-S" and individually
as a member of the H-S Group),
WITNESSETH THAT WHEREAS:
A. By Agreement dated May 28, 1959, the parties hereto agreed on a
program for the exploration and development for oil, gas and other hydrocarbons
of certain lands situated in the Northwest Territories and in the Yukon
Territory of Canada, all as more particularly described in said Agreement and
all subject to the terms, conditions and provisions as therein contained.
B. Pursuant to paragraph 3.1 (B)(a) of Article III of said Agreement,
H-S is to drill a minimum of five (5) exploratory xxxxx on the lands subject to
said Agreement, of which at least one such well shall be located on the Western
Block of the properties (as that term is defined in said Agreement), consisting
of Permits Nos. 1006, 1007, 1132, 1133 and 1135.
C. As a result of present information, it now appears that a required
well drilled on said Western Block would not be to the mutual advantages of the
parties hereto.
NOW, THEREFORE, for and in consideration of the sum of Ten Dollars
($10.00) paid by H-S to each member of the C-M-O Group and of the mutual
benefits to be obtained and of other good and valuable consideration, the
receipt and sufficiency of all of which are hereby acknowledged, the parties
hereto hereby agree that said Agreement shall be modified and supplemented as
follows:
1. H-S shall have no obligation under said Agreement dated May 28, 1959,
to C-M-O, or otherwise, to drill any of the five (5) exploratory xxxxx referred
to in paragraph 3.1 (B)(a) of Article III of said Agreement on said Western
Block.
2. H-S shall in respect of any operations required to be carried out by it
pursuant to Article III of the said Agreement dated May 28, 1959, carry blow out
insurance with a reputable insurance company or companies in the minimum amount
of $1,000,000.00 and with a maximum deductible of $25,000.00 in respect of any
one claim.
3. Expenditures incurred by H-S in respect of any blow out which occurs in
operations conducted by H-S pursuant to Article III of the said Agreement dated
May 28, 1959, whether incurred before or after the date of this agreement, shall
be included in the total cost of the exploratory program referred to in
paragraph 3.1 (B)(b) of the said Agreement, after deduction from such
expenditures of any amount received by H-S pursuant to the insurance required to
be carried by H-S pursuant to clause 2 of this amending agreement. For greater
clarity it is acknowledged that any deductible up to the maximum specified in
clause 2 of this amending agreement which H-S is required to pay on the occasion
of any claim pursuant to such insurance shall be included in the cost of the
said exploratory program. In addition, the cost of premiums in respect of such
insurance shall also be included in the cost of the said exploratory program.
4. The well known as Home Signal C.S.P. Celibeta No. 2 well shall be
deemed to be a well not capable of production in commercial quantities within
the meaning of the said Agreement dated May 28, 1959.
5. Except as expressly provided herein, nothing herein contained shall be
deemed to amend, modify, enlarge or reduce the obligation of H-S to drill a
minimum of five (5) exploratory xxxxx as otherwise provided in the said
Agreement dated May 28, 1959, nor the obligation to incur the total cost of the
exploratory program referred to in paragraph 3.1 (B)(b) of Article III of said
Agreement.
6. Except as herein modified and supplemented, the said Agreement dated
May 28, 1959, is hereby ratified and confirmed and shall remain in full force
and effect.
7. This agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be
executed as of the date first above written.
CANADA SOUTHERN PETROLEUM LTD. HOME OIL COMPANY LIMITED
per: ______________________________ per: ______________________________
VICE-PRESIDENT
per: ______________________________
per: ______________________________
ASSISTANT SECRETARY
MAGELLAN PETROLEUM CORPORATION
XXXX COUNTY LAND COMPANY
per: ______________________________
per: ______________________________
per: ______________________________ VICE-PRESIDENT
per: ______________________________
OIL INVESTMENTS, INC. ASSISTANT SECRETARY
per: ______________________________ ALMINEX LIMITED
per: ______________________________ per: ______________________________
VICE-PRESIDENT
per: ______________________________
ASSISTANT SECRETARY
UNITED OILS, LIMITED
per: ______________________________
VICE-PRESIDENT
per: ______________________________
DIRECTOR
SIGNAL OIL AND GAS COMPANY
per: ______________________________
VICE-PRESIDENT
per: ______________________________
SECRETARY
H-S Group
