EXHIBIT 10.13
BLUE QUAIL LTD
PINK PROSPECT
POTTOWATOMIE CLOUNTY, OKLAHIOMA
SEC. 33 T9N--R2E
0000 X. 0XX XXXXXX XXXXXXXX, XX. 00000
000-000-0000
FAX: 000-000-0000
PARTICIPATION AGREEMENT
THIS AGREEMENT (the agreement) is entered into on April 8, 2013 by and
between BLUE QUAIL LTD HEREINAFTER (BQL) and ____THREE FORKS inc._____,
hereinafter (INVESTOR).
The Pink Prospect XXX #1 Well is an oil and gas prospect located in
Pottowatomie County, Oklahoma (the prospect). This prospect is under the control
of BQL, which contains the leasehold acreage of the project (the Area of
Interest).
BQL proposes to drill a new well, the Xxx #1 to an approximate depth of
6500' to include the 2nd Xxxxxx formation and all horizons above, test the 2nd
Xxxxxx formation for production and/or come up the well bore to log, perf, frac,
then determine if these zones will be commercially productive for oil and gas.
Each investor will have "1st Right of Refusal" in all subsequent xxxxx
in this project. Investor(s) can acquire working interest equal to their initial
investment, and if available buy any interest that might be available, providing
BQL chooses to release any additional interest.
This agreement does not constitute a joint venture agreement, as all
parties are only responsible for their proportionate share of profits and
expenses, no joint liability for participants.
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To participate in this Prospect, Investor or Investors agree to bear
their share of the costs in the leasehold acquisition, drilling, testing and
completion of each well drilled within the Areas of Interest, and if a well is
not completed as a producing well and is plugged and abandoned, the costs of
such plugging and abandonment.
Revenues from production of this well or xxxxx within the Areas of Interest
shall be allocated between the parties, and all operating expenses shall be
shared.
BQL NRI for project
Investors to receive: 80% NRI working interest and will participate in
their proportionate share of all working interest expenses and shared revenues
from production of said well.
Operations of the Prospect shall be set forth in a standard model
A.A.P.I. Form 610-1982 operating agreement to be drafted and executed by BQL.
The AFE to be used was prepared by Xxxxx Operating and is in an amount equal to
$711,000.00. Participants in the project are Xxxxx Operating, Xxxxxx inc., Blue
Quail ltd., and Three Forks inc. Participants interest may vary from current
percentages , as the participants have the right to keep or sell their interest
without consideration of other participants. Leasehold is situated in
Pottowatomie County Oklahoma XX/0 Xxx 00 X0X--X0X.
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SIGNATORY PAGE
INVESTORS SHALL PAY AT THE TIME OF SIGNING THIS AGREEMENT AN AMOUNT
EQUAL TO IT'S PERCENTAGE ($177,750.00 PER 25% INTEREST) $_102,500.00__ TO COVER
THE ESTIMATED COSTS OF THE DRILLING TO POINT OF DRY HOLE AND AN ADDITIONAL (
$75,250.00 ) AT TIME TESTING AND COMPLETION OF THE __JIM #1 ___WELL. THE PAYMENT
SHALL BE A CHECK MADE PAYABLE TO PINK OPERATING . NOTATION XXX #1 WELL
THREE FORKS INC.
BLUE QUAIL LTD INVESTOR
BY:_________________________ BY:___________________________
Date April 8, 2013
Title: Executive Chairman
Name W. Xxxxxx Xxxxxxx
Address
000 Xxxxxxxx Xxxx.
Xxxxxxxxxx, XX 00000
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