EXHIBIT 10.2 December 8, 2003 Pannonian Energy, Inc. 14 Inverness Drive East, Building H, Suite 236 Englewood, CO 80112 Attention: King Grant, Chief Financial Officer Ladies and Gentlemen: This letter confirms our understanding and agreement (the...Project Financing Arrangement • January 21st, 2004 • Gasco Energy Inc • Crude petroleum & natural gas
This letter confirms our understanding and agreement (the "Agreement") that Pannonian Energy, Inc. (together with its subsidiaries and affiliates, the "Company") has engaged Red Oak Capital Management LLC ("Red Oak"), during the duration of this Agreement, to act as the Company's project financing arranger with respect to financing drilling programs, as further defined hrein, in the Company's oil and gas leasehold interests covering lands within portions of Carbon, Duschene and Uintah Counties, Utah ("Contract Area"). The Contract Area will be further described in an exhibit to the Joint Value Enhancement Agreement ("JVEA") that the Company proposes to enter into with M-I, LLC ("M-I"), Nabors Drilling USA, LP ("Nabors"), Schlumberger Technology Corporation ("Schlumberger") and, collectively with M-I and Nabors, the "Service Providers") and one or more partnerships to be formed by Red Oak ("Investment Partnership"). Capitalized terms used in this Agreement and not otherwise defined have
