EXHIBIT 10.3
SARATOGA RESOURCES, INC.
A TEXAS CORPORATION
000 Xxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
June 21, 1999
Xx. Xxx X. Xxxxxxxx Ivy Oil Company, LLC
0000 Xxxxxxx Xxxxx, Xxxxx 0
Xxxxxx, Xxxxx 00000
Mr. Xxxx Xxxxx
Trek Oil and Gas, Inc.
000 Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
RE: Letter Agreement
Stonewall Prospects
Xxxxxx Farms No. 1 Well
Xxxxxx County, Texas
Dear Xx. Xxxxxxxx and Mr. Mount:
Saratoga Resources, by virtue of a Letter Agreement ("DBX Letter
Agreement") dated March 22, 1999 executed by and between DBX Geophysical
Corporation, a Texas corporation, 00000 Xxxxxxx Xxxxx, Xxxxxx, Xxxxx 00000 (DBX)
and Saratoga Resources, Inc., a Texas corporation, 000 Xxxxxxxx Xxxxxx, Xxxxx
0000, Xxxxxx, Xxxxx 00000, ("Saratoga") has obtained the right to review and
utilize certain prospect documentation and related information with regard to
the above-referenced prospects prepared and furnished by DBX. The documentation
relates to the geological merit and developmental potential of the AMI as
defined in the DBX Letter Agreement, which is incorporated herein by reference.
Whereas Ivy Oil Company, L.L.C., a Texas Limited Liability Company,
0000 Xxxxxxx Xxxxx, Xxxxx 0, Xxxxxx, Xxxxx 00000, (Ivy) has obtained certain
leasehold interests within the AMI, which lease schedule is attached hereto as
Exhibit "A" and which may be amended by mutual agreement between the undersigned
parties from time to time.
Whereas Trek Oil and Gas, Inc., a Texas corporation, 000 Xxxxxx, Xxxxx
000, Xxxxxxx, Xxxxx 00000, (Trek) possesses certain expertise in evaluating and
processing the seismic information related to the AMI and has agreed to render
its services, time and talents to facilitate the development and funding of
certain prospects within the AMI.
Now, Therefore, for Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Saratoga, Ivy and Trek agree to enter into this Letter Agreement, ("Saratoga
Letter Agreement") for the mutual development of certain prospects identified by
the undersigned parties located within the boundaries of the AMI. The
undersigned parties agree to collaborate to evaluate and acquire the necessary
leasehold and acreage to develop all mutually acceptable prospects within the
AMI. The parties agree to develop these prospects under the terms which are
substantially similar to those contained in an AAPL 1989 Model Form Operating
Agreement along with any mutually acceptable terms which are attached to the
"Other Provisions" section of the Operating Agreement. The undersigned parties
agree to jointly develop the prospects identified within the AMI. Any interest
obtained in the AMI by any of the undersigned parties shall be deemed to have
been obtained for the mutual and equal benefit of all of the undersigned parties
under the terms of this Letter Agreement. The undersigned parties agree to
jointly share in the developmental costs, expenses and benefits of the prospects
within the AMI, each party bearing or being entitled to receive its one-third
(1/3) proportionate share of all costs, expenses, revenues, and benefits arising
out of the mutual development of such prospects. Upon request of any party
hereto, the undersigned parties agree to enter into a more formalized
Exploration Agreement outlining the terms and provisions under which the mutual
development of the AMI is to occur.
Executed, agreed to and effective this 21st day of June 1999.
SARATOGA RESOURCES, INC.
/S/ Xxxxxx X. Xxxxx
________________________________________
By: Xxxxxx X. Xxxxx, Chief Executive Officer
IVY OIL COMPANY, L.L.C.
/S/ Xxx X. Xxxxxxxx
________________________________________
By: Xxx X. Xxxxxxxx, President
TREK OIL AND GAS, INC.
/S/ Xxxx Xxxxx
________________________________________
By: Xxxx Xxxxx, Vice President
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