Contract

EXHIBIT 10.19 CONFIRMATION OF EARNING BETWEEN DAMASCUS ENERGY INC. AND BOUNTY DEVELOPMENTS LTD. DATED APRIL 16, 2007 BOUNTY DEVELOPMENTS LTD. 1250, 340 - 12 Ave. S.W. Calgary, AB T2R 1L5 - -------------------------------------------------------------------------------- Tel (403) 264-4994 Fax (403) 266-6031 PCLARK@BOUNTYDEV.COM April 16, 2007 DAMASCUS ENERGY INC. 22 Barclay Walk S.W., Calgary, Alberta T2P 4V9 Attention: Michael Vandale Dear Michael: RE: CONFIRMATION OF EARNINGS FARMOUT AGREEMENT DATED NOVEMBER 30, 2006 AND AMENDING AGREEMENTS DATED JANUARY 22, 2007 AND FEBRUARY 20, 2007 TWP 96 RGE. 15 W4M: SECTIONS 2-5; 8-11; 14-17 TWP 93 RGE. 14 W4M: SECTIONS 25-27; 35; 36 TWP. 95 RGE. 14 W4M: SECTIONS 4-9 TWP. 94 RGE. 14 W4M: SECTIONS 19-21; 28-33 DOVER (ELIS) AREA, ALBERTA BDL FILE: AC-226-005 - -------------------------------------------------------------------------------- Further to the subject Farmout Agreement dated November 30, 2006 and Amending Agreements dated January 22, 2007 and February 20, 2007 (collectively known hereinafter as the "Farmout Agreement") between Damascus Energy Inc. ("Damascus") as Farmee, and Bounty Developments Ltd. ("Bounty") as Farmor, Damascus has met the Earning Provisions subject to Clause 7 ("Earning") of the Farmout Agreement. The earning obligations have been met and Damascus has earned as follows: CASH PAYMENTS: April 12, 2006 - $300,000.00 December 20, 2006 - $7,581,500.00 December 21, 2006 - $1,000,000.00 December 22, 2006 - $1,000,000.00 SHARES: At least 4,215,266 shares received on or before December 1, 2006 SEISMIC PROGRAM 2D Seismic Program completed on or before March 21, 2007 EVALUATION WELL #1 Name: Bounty Patch Ells 6-3-96-15 UWI: 1AA060309615W400 Spud: Jan 21, 2007 Rig Release: Jan 25, 2007 Total Depth: 352 metres Page 2 Damascus Earning Letter dated March 30, 2007 EVALUATION WELL #2 Name: Bounty Patch Ells 6-4-96-15 UWI: 1AA060409615W400 Spud: Jan 25, 2007 Rig Release: Jan 29, 2007 Total Depth: 362 metres EVALUATION WELL #3 Name: Bounty Patch Ells 7-2-96-15 UWI: 1AA070209615W400 Spud: Jan 29, 2007 Rig Release: Feb 2, 2007 Total Depth: 338 metres EVALUATION WELL #4 Name: Bounty Patch Ells 6-11-96-15 UWI: 1AA061109615W400 Spud: Jan 31, 2007 Rig Release: Feb 9, 2007 Total Depth: 344 metres EVALUATION WELL #5 Name: Bounty Patch Ells 7-10-96-15 UWI: 1AA071009615W400 Spud: Feb 2, 2007 Rig Release: Feb 6, 2007 Total Depth: 346 metres EVALUATION WELL #6 Name: Bounty Patch Ells 6-5-96-15 UWI: 1AA060509615W400 Spud: Feb 4, 2007 Rig Release: Feb 12, 2007 Total Depth: 359 metres EVALUATION WELL #7 Name: Bounty Patch Ells 6-15-96-15 UWI: 1AA061509615W400 Spud: Feb 6, 2007 Rig Release: Feb 16, 2007 Total Depth: 348 metres Page 3 Damascus Earning Letter dated March 30, 2007 EVALUATION WELL #8 Name: Bounty Patch Ells 6-8-96-15 UWI: 1AA060809615W400 Spud: Feb 8, 2007 Rig Release: Feb 18, 2007 Total Depth: 345 metres EVALUATION WELL #9 Name: Bounty Patch Ells 6-4-96-15 UWI: 1AA060409615W400 Spud: Jan 25, 2007 Rig Release: Jan 29, 2007 Total Depth: 362 metres EVALUATION WELL #10 Name: Bounty Patch Ells 6-17-96-15 UWI: 1AA061709615W400 Spud: Feb 12, 2007 Rig Release: Feb 22, 2007 Total Depth: 367 metres EVALUATION WELL #11 Name: Bounty Patch Ells 6-9-96-15 UWI: 1AA060909615W400 Spud: Feb 14, 2007 Rig Release: Feb 20, 2007 Total Depth: 356 metres EVALUATION WELL #12 Name: Bounty Patch Ells 5-2-96-15 UWI: 1AA050209615W400 Spud: Feb 17, 2007 Rig Release: Mar 7, 2007 Total Depth: 342 metres EVALUATION WELL #13 Name: Bounty Patch Ells 7-7-95-14 UWI: 1AA070709514W400 Spud: Feb 18, 2007 Rig Release: Feb 23, 2007 Total Depth: 275 metres EVALUATION WELL #14 Name: Bounty Patch Ells 14-32-04-14 UWI: 1AA143209414W400 Spud: Feb 20, 2007 Rig Release: Feb 26, 2007 Total Depth: 270 metres Page 4 Damascus Earning Letter dated March 30, 2007 EVALUATION WELL #15 Name: Bounty Patch Ells 12-33-94-14 UWI: 1AA123309414W400 Spud: Feb 21, 2007 Rig Release: Feb 26, 2007 Total Depth: 211 metres EVALUATION WELL #16 Name: Bounty Patch Ells 11-29-94-14 UWI: 1AA112909414W400 Spud: Feb 22, 2007 Rig Release: Mar 2, 2007 Total Depth: 195 metres FARMOUT LANDS: Oil Sands Lease 7406070412 Twp, 93 Rge. 14 W4M: Sections 25-27; 35; 36 Oil Sands below top of Viking Formation to base Woodbend Group Oil Sands Lease No. 740607422 Twp. 95 Rge. 14 W4M: Section 4-9 Oil Sands below top of Viking Formation to base Wood bend Group Oil Sands Lease No. 7406090452 Twp. 94 Rge. 14 W4M: Sections 19-21; 28-33 Oil Sands below top of Viking Formation to base Woodbend Group Oil Sands Lease No. 4706090456 Twp. 96 Rge. 15 W4M: Sections 2-5; 8-11; 14-17 Oil Sands below top of Viking Formation to base Woodbend Group ENCUMBRANCES: Crow S/S 1% Diamond Head GORR WORKING INTERESTS: BEFORE EARNING AFTER EARNING ------------------------------------ Bounty: 100% 20% Damascus: 0% 80% Page 5 Damascus Earning Letter dated March 30, 2007 Further, Damascus has drilled the following additional exploration wells (with Bounty's share of the costs being financed as per clause 8 of the Farmout Agreement): EVALUATION WELL #17 Name: Bounty Patch Ells 6-14-96-15 UWI: 1AA061409615W400 Spud: Feb 15, 2007 Rig Release: Mar 12, 2007 Total Depth: 352 metres EVALUATION WELL #18 Name: Bounty Patch Ells 11-2-96-15 UWI: 1AA110209615W400 Spud: Mar 10, 2007 Rig Release: Mar 17, 2007 Total Depth: 344.5 metres If Damascus 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/ Paul S. Clark PAUL S. CLARK LAND MANAGER Acknowledged and Agreed to this 16 day of APRIL , 2007. DAMASCUS ENERGY INC. PER: /s/ JASON DAGENAIS ----------------------------------------------