EXHIBIT 10.24

SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT
Trinity Bay, Redfish Reef, Fishers Reef, North Point Bolivar Fields
in Galveston and chambers Counties, Texas
 

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This SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT (the “Second Amendment”) is
dated effective as of February 8, 2007, and is made by and between Masters
Resources, LLC, and Masters Oil & Gas, LLC, both Texas limited liability
companies having their respective principal places of business at 9801
Westheimer, Suite 1070, Houston, Texas 77042 (collectively, “Masters”), and
Tekoil and Gas Gulf Coast, LLC, a Delaware limited liability company, having its
principal place of business at 5036 Dr. Phillips Blvd., Suite 232, Orlando,
Florida 32819 (“Buyer”) (Masters and Buyer are sometimes called collectively the
“parties” and individually “party”).

RECITALS

On November 13, 2006, the parties executed and delivered Purchase and Sale
Agreement, dated effective as of October 1, 2006, covering the Assets. On
December 29, 2006, the parties executed and delivered that certain First
Amendment to Purchase and Sale Agreement also covering the Assets (the Purchase
and Sale Agreement and the First Amendment to Purchase and Sale Agreement are
herein collectively referred to as the “Original Agreement”). On February 8,
2007, the parties executed and delivered, contemporaneously with this Second
Amendment, that certain Assignment and Assumption Agreement (the “Assignment”)
by and between Buyer and Tekoil and Gas Corporation. The parties now desire to
amend the Original Agreement in certain respects. Accordingly, the parties agree
as set out in this Second Amendment. (Unless otherwise noted, defined terms used
in this Second Amendment shall have the meanings set out in the Original
Agreement.)

I.
AMENDMENTS

A. Section 8.1 of the Original Agreement is deleted and the following is
inserted in lieu thereof:

 
“8.1
Date, Time and Place of Closing

Unless the parties agree otherwise in writing and subject to the provisions in
this Agreement, the completion of the transaction contemplated by this Agreement
(the “Closing”) will be held on or before March 2, 2007, at 10:00 a.m. Central
Standard Time (or such earlier date or time as the parties may agree). The
Closing will be held at the offices of Masters as set forth in the opening
paragraph of this Agreement (or such other place as the parties may agree). In
the event that the Closing does not occur before the close of business at 5:00
p.m. on March 2, 2007, Masters shall have the right to terminate this Agreement
and to retain the Deposit.”

B. With respect to Section 4.1 (A) of the Original Agreement, the Examination
Period applies to any due diligence being performed or to be performed on behalf
of, or at the request of Buyer’s financing sources, and “January 24, 2007” is
deleted and “February 23, 2007” is inserted in lieu thereof. Except for the
change of dates set forth herein, the amendment set forth in Article I.B. of the
First Amendment to the Original Agreement is unchanged.

C. In Section 9.3 of the Original Agreement, “February 28, 2007” is deleted and
“March 2, 2007” is inserted in lieu thereof. Additionally, Schedule 9.3
(attached hereto as Schedule 9.3) is hereby added and incorporated into the
Original Agreement.

 
 

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D. Section 4.1 (D) of the Original Agreement is deleted and the following is
inserted in lieu thereof:

“Masters will protect and hold Buyer harmless from and against any final and
non-appealable judgment rendered in any litigation brought by Erskine Energy
Partners II, L.P. (“Erskine”) based upon the claim asserted (or the facts giving
rise thereto) on behalf of Erskine in that certain letter dated February 7,
2007, from Elizabeth Miller at Scott, Douglass & McConnico, LLP, addressed to
Masters (the “Erskine Claim”), including the costs and expenses of defending the
same, and at the closing a sum, to be stated in the separate agreement
referenced hereinbelow, shall be deposited by Masters into an Escrow Account, to
guarantee the performance by Masters of this obligation so that upon the
dismissal with prejudice and without recourse against Masters, Buyer, its
permitted assigns and any of the Assets of any such litigation, or upon Masters’
payment of any judgment taken against it, or Masters’ payment in settlement of
all claims against it, Buyer, its permitted assigns and any of the Assets
arising out of the Erskine Claim, then the portion of the Purchase Price
withheld by Buyer shall be paid to Masters; and if Masters fails to meet the
obligation imposed by this section of this Agreement so that claims are asserted
against Buyer, its permitted assigns and any of the Assets, then the portion of
the Purchase Price so withheld by Buyer shall be paid to Buyer; provided,
however, the payment to Buyer of such withheld portion of the Purchase Price
shall not release or affect in any manner, the obligations of Masters set out
above in this Section 4.1 (D) or the rights of Buyer to exercise such remedies
against Masters as may be authorized by applicable law in the event Masters, or
either of them, fail to perform their obligations set out in Section 4.1(D). The
substance of this amendment is being documented in a separate agreement between
Masters and Buyer, and to the extent that there may be any conflict between such
agreement and this Agreement, that separate agreement pertaining to the Erskine
Claim shall govern and control over Section 4.1(D) of the Original Agreement as
amended herein.”

II.
MISCELLANEOUS

A. To the extent any provision of the Original Contract as amended by the First
Amendment conflicts with any provision of this Second Amendment, the provisions
of this Second Amendment shall control and be used to determine the obligations
of the Parties.

B. The parties ratify confirm and adopt the Original Agreement as amended and
supplemented by the First Amendment and this Second Amendment.

C. This Second Amendment may be signed in any number of counterparts. Each and
every counterpart will be deemed to be one document.

[SIGNATURE PAGE FOLLOWS]

 
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IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of
February 8, 2007.

TEKOIL AND GAS GULF COAST, LLC

By:
Tekoil & Gas Corporation,

  Its Sole Member

 
 

By:
/s/ Mark S. Western                             

  Name: Mark Western

  Title: President

 
 

MASTERS RESOURCES, LLC:   MASTERS OIL & GAS, LLC:                     By:
/s/ Richard H. Lee   By: /s/ Richard H. Lee  

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Name: Richard H. Lee    

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Name: Richard H. Lee   Title: Manager     Title: Manager

 

 
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Schedule 9.3

Fees and Rates

Attached to and made a part of Purchase and Sale Agreement dated effective
October 1, 2006 by and between Masters Resources LLC and Masters Oil & Gas, LLC,
as Seller, and Tekoil & Gas Corporation, as Buyer.

1. Administrative/Secretarial Assistance: Thirty Five Dollars ($35.00) per hour.
 
2. Regulatory Assistance: Seventy Five Dollars ($75.00) per hour.
 
3. Land Administration and Accounting: One Hundred Twenty Five Dollars ($125.00)
per hour.
 
4. Production Supervisor Assistance: One Hundred Twenty Five Dollars ($125.00)
per hour.
 
5. Engineering and Management-Two Hundred Dollars ($200.00) per hour.

 
 
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