EXHIBIT 10.1
 
 
SALES AGREEMENT
 
AGREEMENT TO PURCHASE FAILING 1500 CF DRILLING RIG
 
This agreement is made on April 15, 2011, between BMR Drilling INC., a
corporation organized and existing under the laws of the State of Texas, with
its principal office located at PO BOX 1942, FT Worth, Texas 76102 (“seller”),
and Treaty Energy Corporation, a corporation organized and existing under the
laws of the State of Nevada, with its principal office located at 201 St.
Charles Ave, New Orleans, Louisiana 70170 (“buyer”).
 
SECTION ONE.
 
DESCRIPTION
 
Seller agrees to sell to buyer the following goods: Truck mounted drilling rig
and all associated equipment and inventory necessary to perform well drilling
activities as currently on-going by seller. Rig will be functional, operating,
and in useable condition (no known repairs needed) as previously agreed to by
both parties. Exhibit “A” will constitute the whole inventory to be transferred
at closing.
 
SECTION TWO.
 
PAYMENT
 
Buyer agrees to pay for the goods as follows: TOTAL $180,000.00 USD in the
following manner; $60,000.00 USD to be transferred after signing and filing of
sales contract at related institutions (bank and court house). Money will be
transferred immediately and in increments until $60,000.00 USD has been wire
transferred in 5 working days.  A second payment of $60,000.00 USD will be made
to seller 30 days (with a 5 day grace period to cover week-ends, bank holidays,
etc) after the first payment. A third and final payment of $60,000.00 USD will
be made 60 days (with a 5 day grace period to cover week-ends, bank holidays,
etc) after the initial first payment.  At time of final payment, seller will
transfer and assign all titles and inventory to buyer in good working condition
as described in Exhibit “A”.  In the event that buyer should default on the
financial terms of contract, all equipment and collected revenue will revert
back to seller.
 
SECTION THREE.
 
WORKING ARRANGEMENT
 
Seller shall resume and continue drilling operations and drilling contracts in a
normal manner. Seller will remain in possession of rig and be responsible for
daily operations and upkeep. Seller will instruct, advise and co-operate with
buyer so as to train buyer of all rig operations. Buyer will have freedom of
access to rig and all associated equipment at any and all times. Buyer and
seller will keep sales transaction confidential so as not to inform crew or any
other parties of pending sale.
 

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SECTION FOUR.
 
FINANCIAL WORKING AGREEMENT
 
As per agreement between seller and buyer, Seller will continue with financial
management of funds collected as follows; (1) Seller will collect funds, (2)
Seller will pay all operating expenses associated with each drilling contract,
(3) profit after drilling expenses will be put into a joint account requiring 2
party authorization for withdrawal by both Seller and Buyer, (4) at the
successful completion of sales agreement by buyer. All monies collected and
accrued will be signed over to buyer by seller and become the sole property of
buyer.
 
SECTION FIVE.
 
WARRANTIES AND LIMITATIONS
 
Seller warrants that the goods shall be delivered free of the rightful claim of
any third party and be free of any lien or encumbrances.
 
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTION ON THE FACE OF THIS
AGREEMENT. RIG IS SOLD AS-IS WITH THE PROVISO THAT THE RIG WILL BE IN THE SAME
OVERALL CONDITION AT TRANSFER OF ALL TITLES AS IT IS ON APRIL 15, 2011, MINUS
NORMAL WEAR AND TEAR.
 
SECTION SIX.
 
ENTIRE AGREEMENT
 
The parties agree that this constitutes the entire agreement and there are no
further items or provisions.
 
Seller: BMR Drilling INC
 

 /s/ W. D. Warden   W. D. Harden  

 
THE STATE OF TEXAS, COUNTY of  _________________________________

Before me, the undersigned authority, on this day personally
appeared___________________________________

_________________________________________________________________________________________

Known to me to be the person whose name subscribed to this foregoing instrument,
and acknowledged to me that ________(he/she) executed the same for the purposes
and consideration therein expressed.
 
Given under my hand and seal of office on this the ________ day of ____________,
AD _____________
 
___________________________________________________________________________,
Notary Public
 

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_________________________________________ County, Texas. My commission
expires___________________________
 
(Acknowledgment Under Oath)

________________________
(Additional Name if Necessary)

THE STATE OF TEXAS, COUNTY of  _________________________________

Before me, the undersigned authority, on this day personally
appeared___________________________________

_________________________________________________________________________________________

Known to me to be the person whose name subscribed to this foregoing instrument,
and acknowledged to me that ________(he/she) executed the same for the purposes
and consideration therein expressed.
 
Given under my hand and seal of office on this the ________ day of ____________,
AD _____________
 
___________________________________________________________________________,
Notary Public
 
_________________________________________ County, Texas. My commission
expires_______________
(Acknowledgment Under Oath)

Buyer: Treaty Energy Corporation
 

/s/ Andrew V. Reid  
Andrew V. Reid

THE STATE OF LOUISIANA, Parrish of  _________________________________

Before me, the undersigned authority, on this day personally
appeared___________________________________

 
_________________________________________________________________________________________

Known to me to be the person whose name subscribed to this foregoing instrument,
and acknowledged to me that ________ (he/she) executed the same for the purposes
and consideration therein expressed.
 
Given under my hand and seal of office on this the ________ day of ____________,
AD _____________
 
___________________________________________________________________________,
Notary Public
 
_________________________________________ County, Texas. My commission
expires_______________
(Acknowledgment Under Oath)

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EXHIBIT “A”

INVENTORY

 
Failing1500 CF mounted on a 1978 Chevrolet Bison truck, Serial #CMH958V121758
 
Any additional serial #s __________________________________________________
 
Powered by 8v71 Detroit 13spd Road Ranger and a 4 speed brown light transmission
 
5 1/2x8 Garner Denver mud pump(new fluid end 3 wells ago) 5x6 Failing mud pump
 
15xv14 King Swivel (new bearings last well)
 
Hydraulic leveling jacks
 
Hydraulic pull-downs
 
Double drum draw works
 
2 sets of double sheave blocks with 5/8 line
 
5 1/4 rotary table (complete rebuild, completed April 15, 2011)
 
48 ft derrick
 
73 White GMC truck 290 Cummins 13spd Road Ranger transmission
 
Serial #BD001HA763564
 
30ft pipe trailer, Serial #195388
 
18ft Dog House, support trailer Serial #195387
 
65 joints of 2-7/8 drill pipe
 
4 – 4-1/2 collars (re-tooled) 2 wells ago)
 
2 gas powered generators
 
all the slips, landing joints and handling tools for 4-1/2, 5-1/2, & 8-5/8
 
all the nipples and unions to nipple up to a Schaeffer blowout preventer
 
15 different change-over subs, magnets to fit all pipe and bits
 
all suction hoses, tools and everything needed to drill and run the casing on a
well to 2000ft
 
12-1/4 drill bit
 
6-3/4 PDC bit and all other misc bits

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