Attached files
| file | filename |
|---|---|
| 10-Q - MAINBODY - DELTA OIL & GAS INC | mainbody.htm |
| EX-31.1 - EX311 - DELTA OIL & GAS INC | ex311.htm |
| EX-32.1 - EX321 - DELTA OIL & GAS INC | ex321.htm |
| EX-10.1 - EX101 - DELTA OIL & GAS INC | ex101.htm |
| EX-31.2 - EX312 - DELTA OIL & GAS INC | ex312.htm |
Ranken
Energy Corporation
Suite 101
- 417 W. 18th
Street
Edmond,
Oklahoma
73013 –
3663
August 7,
2009
Mr.
Douglas Bolen, Chairman
Delta Oil
& Gas Inc.
604 – 700
West Pender Street
Vancouver,
BC
V6C
1G8
Re:
Letter Agreement, Ranken Energy Corporation. 2009 – 3 Drilling Program – Garvin
County, OK
Dear
Doug,
This
LETTER AGREEMENT shall set forth the terms and conditions for your participation
in the Ranken Energy Corporation (“REC”) 2009-3 Drilling Program, located in
Garvin County, Oklahoma. Specifically, you agree to participate with
a 5.00% Working Interest, subject to the following:
|
1.
|
You
agree to purchase an undivided 5.00% Working Interest in the 2009-3
Drilling Program for a total Buy-in Cost of $37,775.00 ($755,500.00 x
5.00%) which is your proportionate share.
|
|
2.
|
Your
initial Buy-in Cost includes all leasehold, whether force pooled or leased
in support of the initial test well as referred to in the trade summary
sections in the 2009-3 Drilling Program technical brochure, geolgic
expenses, brokerage costs, 3-D seismic usage, geophysical interpretations,
and overhead.
|
|
3.
|
You
agree to pay your Buy-in Cost upon execution of this LETTER
AGREEMENT. In addition, you agree to pay your share of the
Estimated Costs to Casing Point within Three (3) business days of the
receipt of an invoice, to be sent at a date prior to the SPUD date of each
well for the following:
|
Drilling: Coates
Prospect Coates
#1-18
Garvin County, OK
Freeman
Prospect Brewer
#1-20 Garvin
County, OK
Maness
Prospect
DeeAlli
#1-18
Garvin County, OK
West McCarty
Pros. Waunice
#1-36 Garvin
County, OK
|
4.
|
You
agree to participate in the Drilling Operations to casing point in the
initial test well of each prospect as specified in Item #3 above, with
your interest, bearing your proportionate share of a 20% carried Working
Interest to casing point. Your Before Casing Point Interest,
“BCP”, shall be 6.25% and your After Casing Point Interest, “ACP”, shall
be 5.00%. This carried Working Interest shall only apply to the
initial test well in each prospect in the 2009-3 DRILLING
PROGRAM.
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|
5.
|
Your
NET Revenue Interest Lease, “NRI”, in the 2009-3 DRILLING PROGRAM shall
be:
|
75% -
Coates Prospect
78% -
Freeman Prospect
75% -
Maness Prospect
78% -
West McCarty Prospect
|
6.
|
You
acknowledge and understand that the 2009-3 DRILLING PROGRAM required
Forced Pooling under Oklahoma law and as such, the various Respondents
have the right to participate in any well. Should any
Respondents elect to participate, then your participation interest may be
proportionately reduced in the spacing unit. Your drilling
costs in the project will also be proportionately reduced
respectively. Such reduction, if applicable, does not affect
your buy-in costs in the 2009-3 DRILLING PROGRAM.
|
|
7.
|
Should
you agree to participate in any completion attempt in any well drilled in
the 2009-3 DRILLING PROGRAM, you agree to immediately forward your
proportionate share of the Estimated Completion Costs, upon receipt of an
invoice from Ranken Energy Corporation.
|
|
8.
|
You
agree to become a signatory to the a mutually agreeable Joint Operating
Agreement, “JOA”, consistent with industry standards
(enclosed).
|
|
9.
|
You
acknowledge that you are a sophisticated & accredited investor and
fully understand the inherent risks associated with oil & gas
investing. Further, you acknowledge that no Return on
Investment or Rate of Return has been guaranteed or promised, and, in
fact, accept the possibility that you could lose 100% of your investment
in this program.
|
|
10.
|
You
further agree to complete the subscription agreement required by the
Oklahoma Securities Commission (Enclosed), if applicable.
|
|
11.
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RISK
FACTORS – The undersigned understands and agrees that the Working
Interests described in the Brochure are offered on a “Turn-Key” or similar
basis. Purchases of Working Interests will be required to pay
for their proportionate share of all costs of drilling, completion, and
operation of the Wells described in the Brochure on the financial basis as
described in the Brochure. The undersigned confirms that he/she
has the financial capability of paying for his/her share of such costs of
drilling, completing and operating the Wells and that such costs may
exceed the initial costs set forth
herein.
|
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Should
you agree with the terms and conditions expressed herein, please execute this
LETTER AGREEMENT in the space provided below.
Sincerely,
/s/
“Randolph L
Coy”
Randolph
L. Coy
President
Agreed to
and accepted this 10th day
of August, 2009.
WI
Owner: Delta Oil & Gas
Inc Signature: /s/ “D
Bolen”
By:
Douglas Bolen,
President
Date: 10 August 2009
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