Farm-in Letter Agreement
Exhibit
10.1
Farm-in Letter Agreement
(“Agreement”)
Between:
Unitech
Energy Resources Inc.
An
Alberta, Canada corporation
(“URX”)
-and-
A
Nevada corporation
(“BCO”)
(hereinafter
collectively referred to as the “Parties”)
Whereas
the Parties wish to form a business relationship that contemplates
the exploration for, and production of, hydrocarbons from Petroleum
and Natural Gas Agreement Numbers 0050505090500 and 0050506060517 (collectively the
“Lease”), which Lease is owned by URX and comprises approximately 640 acres
of petroleum and natural gas exploitation rights from the surface to the base of
the Belly River formation, and which Lease is located in central
Alberta, Canada, at section 30, Township 57, Range 8, W5 which is approximately
70 miles northwest of Edmonton, Alberta in the area known as “Paddle River”, the
Parties hereby agree as follows:
a)
|
The
Farm-in agreement will include the formations held under the Lease from
surface to the base of the Belly River
formation.
|
b)
|
BCO
will farm-in on the Lease on the basis of a 100% capital interest for a
50% working interest. For clarity, BCO will pay 100% of all costs
associated with all seismic activity, drilling, completing, and testing
and thereafter both Parties will pay their respective 50% of any
go-forward costs;
|
c)
|
There
is no payout account;
|
d)
|
BCO
will pay to URX, US$5,000 upon the signing of this Agreement and a further
US$5,000 upon the closing of BCO financing as contemplated by the filing
of a registration statement with the US S.E.C.. If BCO does not pay the
required $5,000, within 30 days of the closing of the financing as
contemplated above in this clause, BCO will lose all rights to the Lease
and will not be entitled to any refund of the initial $5,000
paid;
|
e)
|
Upon
the initial signing payment set out in item (d) above being made, URX will
provide BCO with all of URX’s geological working papers with regard to the
Lease. These working papers will remain the property of URX and they are
provided to BCO for the sole purpose of assisting BCO with its exploration
activities on the Lease;
|
|
f)
|
BCO
will control the timing of all activities related to the Lease;
and
|
g)
|
Upon
paying the $10,000 referred to in clause “d” above, BCO acquires the right
to operate, or appoint an operator for, the Lease. The Parties further
agree that once the $10,000 is paid, they will enter into a standard
farm-in and operating agreement based on
CAPL.
|
Other
Agreements and Acknowledgments:
|
1.
|
URX
confirms that it purchased the Lease at an Alberta Government auction on
September 21, 2005 for the sum of Cdn$94,703.00 (0050505090500) and Cdn$
$18,671 (0050506060517) (Total $113,374) and that the Lease will expire on
September 22, 2010 (0050505090500) and June 15, 2011
(0050506060517) unless continued pursuant to the rules and
regulations of the Government of
Alberta.
|
|
2.
|
The
Parties agree that this Agreement will expire on January 1, 2010 unless a
minimum of $25,000 is expended on the Lease prior to January 1,
2010.
|
|
3.
|
This
agreement will be governed by the laws of Alberta,
Canada.
|
Signed
and agreed to in Calgary, Alberta, this 29th. day of
August, 2008
per:
“signed”
Xxxxxxx
Xxxxxx
President
Unitech
Energy Resources Inc.
per:
“signed”
Xxxxx
Xxxxx
President