Exhibit 10.2


    
      

    

    DRAGON
      ENERGY
      CORPORATION

    650
      POYDRAS
      STREET,
      SUITE
      2828

    NEW
      ORLEANS,
      LOUISIANA
      70130-6155

    


    
      	
              FAX

            	 	
              TELEPHONE

            
	
              (504)
                586-0017

            	 	
              (504)
                586-1717

            


    

     

    September
      30, 2005

     

     

    Argyle
      Energy, Inc.

    10777
      Westheimer, Suite 170

    Houston,
      Texas 77042

     

    Attention:
      Mr. Harry J. Peters

    

      
        	 	
                Re:

              	
                FIRST
                  AMENDMENT OF FARMOUT
                  AGREEMENT

              


      

      
        	 	 	
                Barnett
                  Crossroads Prospect (Prospect No.
                  20)

              


      

      
        
          	 	 	
                  Escambia
                    County

                


        
                                                       
        A L A B A M
        A                                                                                                                                


    

     

    


    Gentlemen:

    


    By
      Ferment Agreement dated August 23, 2004 ("Agreement"), between DRAGON
      ENERGY CORPORATION
      ("Dragon") and ARGYLE
      ENERGY, INC.
      ("Argyle"), Argyle among other things agreed to commence on or before September
      30, 2005, a test well (the "Test Well") in search of oil and/or gas on the
      Barnett Crossroads Prospect, Escambia County, Alabama.

    


    Dragon
      and Argyle now desire to amend the Agreement to provide for a later commencement
      date of the Test Well, and, therefore, in consideration of the covenants,
      obligations, and undertakings set forth in the Agreement, as herein amended,
      Dragon and Argyle hereby agree as follows:

    


    2.

    


    AMENDED
      TEST WELL COMMENCEMENT DATE

    


    Provision
      3.1 of the Agreement is deleted in its entirety and the following is substituted
      in lieu thereof:

     

    
      On
        or
        before March 31, 2006, Argyle agrees to cause to be commenced, the spudding
        and
        actual drilling of a well, utilizing a drilling rig capable of drilling and
        completing a well to a depth of 14,850 feet TVD, in search of oil or gas
        at a
        Mutually acceptable legal location in Section 19, Township 3 North, Range
        8
        East, Escambia County, Alabama (the "Test Well"). This drilling commencement
        date will not be extended or delayed for any reason. Such drilling operations
        to
        be prosecuted continuously, with diligence and in a workmanlike manner
        consistent with the practices of a prudent operator, until the Test
        Well shallhave
        been
        drilled to a depth of (a) 14,850 feet TVD below the surface of the earth,
        or (b)
        a depth sufficient to test adequately and conclusively the stratigraphic
        equivalent of the Smackover Formation as seen in the interval between 13,684
        feet and 14,016 feet in the Dragon Energy Cotporation-AT1C 23-4 #1 well located
        in Section 23, Township 3 North, Range 8 East, Escambia County, Alabama,
        whichever is the shallower depth (the "Objective Depth"), or to such other
        depth
        as the parties hereto may agree, as provided hereinafter.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      Argyle
        Energy, Inc.

      Attention:
        Mr. Harry J. Peters

      September
        30, 2005

      Page
        2

    

     

    Dragon
      and Argyle hereby ratify and confirm that the Agreement, as amended, is in
      full
      force and effect.

    


    Please
      indicate your acceptance of this FIRST
      AMENDMENT OF FARMOUT AGREEMENT by
      dating, signing and thereafter returning to the undersigned the enclosed
      duplicate copy. The remaining counterpart should be retained for your files.
      If
      this FIRST
      AMENDMENT OF FARMOUT AGREEMENT is
      circulated and executed by facsimile transmission, the signatures of the Dragon
      and Argyle shall be considered as original and self-proving for all purposes
      under the law. This Agreement may be executed in multiple counterparts, each
      of
      which shall be deemed to be an original, binding and enforceable document,
      but
      all of which shall constitute one and the same instrument. 

    


    
      	 	 	
              Very
                truly yours,

            
	 	 	 
	 	 	
              DRAGON
                ENERGY CORPORATION

            
	 	 	 
	 	 	 
	 	
              By: 
                

            	/s/
              McLain J. Forman
	 	 	
              McLAIN
                J. FORMAN

            
	 	 	
              PRESIDENT

            


    

    


    
      	
              MJF:rs

            	 
	
              Attachment

            	 
	 	 
	
              AGREED
                TO AND ACCEPTED

            	 
	
              THIS
                30TH DAY OF SEPTEMBER 2005.

            	 


    

    


    
      	 	
              ARGYLE
                ENERGY, INC.

            	 
	 	 	 
	 	 	 
	
              BY: 
                

            	
              /s/
                Harry J. Peters

            	 
	 	
              HARRY
                J. PETERS

            	 
	 	
              SENIOR
                VICE-PRESIDENT