EXHIBIT 10.19
CONFIRMATION OF EARNING BETWEEN DAMASCUS ENERGY INC.
AND BOUNTY DEVELOPMENTS LTD. DATED APRIL 16, 2007
BOUNTY DEVELOPMENTS LTD. 0000, 000 - 00 Xxx. S.W.
Calgary, AB
T2R 1L5
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Tel (000) 000-0000
Fax (000) 000-0000
XXXXXX@XXXXXXXXX.XXX
April 16, 2007
DAMASCUS ENERGY INC.
00 Xxxxxxx Xxxx X.X.,
Xxxxxxx, Xxxxxxx X0X 0X0
Attention: Xxxxxxx Xxxxxxx
Dear Xxxxxxx:
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
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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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 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 Xxxx 00-00-00-00
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 Xxxx 00-00-00-00
UWI: 1AA123309414W400
Spud: Feb 21, 2007
Rig Release: Feb 26, 2007
Total Depth: 211 metres
EVALUATION WELL #16
Name: Bounty Patch Xxxx 00-00-00-00
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 XXXX
WORKING INTERESTS:
BEFORE EARNING AFTER EARNING
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Bounty: 100% 20%
Damascus: 0% 80%
Page 5
Damascus Earning Letter dated March 30, 2007
Further, Damascus has drilled the following additional exploration xxxxx (with
Bounty's share of the costs being financed as per clause 8 of the Farmout
Agreement):
EVALUATION WELL #17
Name: Bounty Patch Xxxx 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 Xxxx 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/ Xxxx X. Xxxxx
XXXX X. XXXXX
LAND MANAGER
Acknowledged and Agreed to this 16 day of APRIL , 2007.
DAMASCUS ENERGY INC.
PER: /s/ XXXXX XXXXXXXX
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