exhibit101.htm


    RANKEN

    ENERGY

    CORPORATION

    417
      W. 18th Street, Suite 101

    Edmond,
      Oklahoma 73013-3663

    (405)
      340-2363 · Fax
      (405) 340-2365

    


    September
      10, 2007

    


    
      	
              Mr.
                Douglas Bolen, President

              Delta
                Oil & Gas, Inc.

              1055
                W. Hastings Street, #300

              Vancouver,
                BC V6E 2E9

            


    

    


    Re:           Letter
      Agreement / Ranken Energy Corporation

    2007-1
      Drilling
      Program

    Garvin
      County, OK

    


    Dear
      Douglas:

     

    This
      LETTER AGREEMENT shall set forth the terms and conditions for your
      participation in the Ranken Energy Corporation (“REC”) 2007-1 DRILLING
      PROGRAM located in Garvin County, Oklahoma.  Specifically,
      you agree to participate with a 20.000% Working Interest,
      subject to the following:

     

    
      	
              1.  

            	
              You
                agree to purchase an undivided 20.0000% Working Interest
                in the 2007-1 DRILLING PROGRAM for a total Buy-In
                Cost of $77,100.00 ($385,500.00 x .20000000) 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 2007-1 Drilling Program technical brochure, geologic
                expenses, brokerage costs, 3-D seismic usage, geophysical interpretations,
                and overhead.

            


    

     

    
      	
              3.  

            	
              You
                agree to pay your Buy-In Cost upon the execution of the LETTER
                AGREEMENT.  In addition, you agree to pay your share of
                the Estimated Costs to Casing Point within three (3) business days
                of
                receipt of an invoice, to be sent at a date prior to the Spud Date
                of each
                well for the following:

            


    

     

    
      	
              Drilling:

            	
              NE
                Antioch Prospect

            	
              Pollack
                #1-35

            	
              Garvin
                County, OK

            
	 	
              Washington
                Creek Prospect

            	
              Hulsey
                #1-8 Re-entry

            	
              Garvin
                County, OK

            
	 	
              West
                Riverbend Prospect

            	
              River
                #1-28

            	
              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 in all of these operations.  Your Before Casing point
                Interest “BCP” shall be 25.000% and your After Casing Point Interest “ACP”
                shall be 20.000%.  This carried Working Interest shall only
                apply to the initial test well in each prospect of the 2007-1 Drilling
                Program.

            


    

     

    
      	
              5.  

            	
              Your
                Net Revenue Interest Lease “NRI” in the 2007-1 Drilling Program shall
                be:

            


    

     

    78%
      - NE
      Antioch Prospect

    78%
      -
      Washington Creek Prospect

    75%
      -
      West Riverbend Prospect


    
      
         

      

      
         

        
          

        

      

      
         

      

    


    LETTER
      AGREEMENT

    September
      10, 2007

    Page
      2


    


    
      	
              6.  

            	
              You
                acknowledge and understand that the 2007-1 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 costs in the project will also be proportionately
                reduced respectively.

            


    

     

    
      	
              7.  

            	
              Should
                you agree to participate in any completion attempt in any well drilled
                in
                the REC 2007-1 DRILLING PROGRAM, you agree to immediately
                forward your proportionate share of the Estimated Completion costs,
                upon
                receipt of invoice, to Ranken Energy
                Corporation.

            


    

     

    
      	
              8.  

            	
              You
                agree to become a signatory to a mutually agreeable Joint Operating
                Agreement “JOA” consistent with industry standards
                (enclosed).

            


    

     

    
      	
              9.  

            	
              You
                acknowledge that you are a sophisticated and accredited investor
                and fully
                understand the inherent risks associated with oil and 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.

            


    

     

    RISK
      FACTORS

    


    
      	
              10.  

            	
              The
                undersigned understands and agrees that the Working Interests described
                in
                the Brochure are not offered on a “Turn-Key” or similar fixed cost
                basis.  Purchasers 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 costs of
                drilling, completing and operating the Wells and that such costs
                may
                exceed the initial estimated costs set forth
                herein.

            


    

     

    Should
      you agree with these terms and conditions expressed herein, please execute
      this
      Letter Agreement in the space provided below.

     

    Sincerely,

     

    Randolph
      L. Coy, President

    


    Agreed
      to
      and accepted this ___ day of _________, 2007

    


    
      	
              WI
                OWNER:   ________________________________

              Print
                Company/Individual
                Name

            	
              Signature: 
                ____________________________________

               

            
	 	 
	
              By: 
                ________________________________________

              Print
                Name and
                Title

            	
              Date: 
                ________________________________________