Exhibit 10
[AVRO ENERGY, INC. LOGO]
This Definitive Letter Agreement dated for reference as of: August 26, 2009
ATTENTION: FREDCO, LLC
This Letter Agreement dated for reference as of August 26, 2009, between Avro
Energy Inc., a Nevada company, with a registered address at 9 Church Lane,
Copthorne, West Sussex, England RH10 3PT, (the "Purchaser") and Fredco LLC of
Xxxxxxx Xxxxxxxxx, X.X.X. 00000 (the "Seller").
This Letter Agreement (the "Agreement")shall set forth the terms of an agreement
between the Purchaser and the Seller, which, when accepted and executed below,
shall form a binding agreement between Purchaser and Seller for the purchase of
the Xxxx Xxxxxx Lease, as further described below (the "Lease").
Payment and Closing:
1. The closing of this Agreement (the "Closing") shall occur upon the Purchaser
making a payment of $50,000 USD to the Seller on or before August 30, 2009. Upon
payment, the Closing shall have deemed to occur, and the Purchaser shall assume
all operations on the Lease, and shall be entitled to begin receiving income
from production, and shall assume all costs and liabilities with regard to the
operation of the Lease.
2. An additional post-closing payment of $50,000 shall be payable on or before
September 30, 2009, and shall be subject to a prepared title opinion.
Details of the Lease:
3. The Xxxx Xxxxxx Lease is located on Section 24 Township 22 North Range 15
West Caddo Pine Island Field located near Hosston Louisiana, the details of
which are included in Schedule A attached.
4. The Nachatosh Formation A and B sands (which include but are not limited to
22 xxxxx, of which 13 xxxxx are producing with another 7 xxxxx needing
production equipment and 2 xxxxx which are water disposal xxxxx). All equipment
associated with these xxxxx and the details of these xxxxx are outlined in
Schedule A attached. Production from these xxxxx is subject to a 20% overriding
royalty.
Option on Additional Assets:
5. In addition, the Seller grants the Purchaser the exclusive option to purchase
all of the remaining oil field assets and equipment of Fredco LLC for a total of
$2,500,000, provided that such option is exercised on or before October 30,
2009.
0 XXXXXX XXXX, XXXXXXXXX, XXXX XXXXXX XX00 0XX ENGLAND
XXXXXXXXXX@XXXXX.XXX
6. In the event the option is not exercised prior to October 30, 2009, then the
option portion of this agreement shall expire and may be terminated at the
option of the Seller.
Representations as to Title:
7. The Seller covenants that it has owned, possessed, and operated said oil
field and gas leases peaceable and to its knowledge and belief no current
problems exist as to the working interest and ownership of the Lease. The Seller
does hereby state that it has been in compliance with the Louisiana Conservation
Rules and Regulations, and to its knowledge and belief knows of no environmental
issues pending or violations against the Lease. There are no warranties express
or implied with respect to the Lease. This Agreement is made pursuant to the
laws and the courts of the State of Louisiana. The situs of this Agreement is
the State of Louisiana.
Please indicate your agreement to this Letter Agreement set forth herein by
signing and returning this letter to the undersigned.
Yours Sincerely,
AVRO ENERGY INC.
Per: /s/ Xxxxx Xxxxxxxxxx
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Name: XXXXX XXXXXXXXXX
Title: Director
THE UNDERSIGNED HEREBY AGREE AND ACCEPT THE TERMS OF THIS LETTER AGREEMENT THIS
26th DAY OF AUGUST, 2009.
FREDCO LLC
Per:/s/ Xxxx Xxxxxxx
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Name: XXXX XXXXXXX
Title: Manager and Authorized Signatory
