**EXHIBIT      10.1**

| Re: | True              North Energy Corporation Advisory Board Engagement              Letter |
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|   | (a) | Act                as an advisor to the Company; |
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|   | (b) | Periodically                meet with the Company's management and board to discuss the Company's                operating strategy, competitive position, business and financial                prospects                and growth opportunities; |
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|   | (c) | Assist                the Company in formulating strategic, financial and development plans,                contacts and recruitment of key personnel designed to create long-term                shareholder value and liquefying such value when                appropriate; |
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|   | (d) | Assist                in the development of capitalization plans which provide the capital                resources necessary to accomplish the operating and strategic                plans; |
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|   | (e) | Assist                the Company in identifying and reviewing potential prospects, field                development plans and acquisition targets to achieve Company's                objectives; |
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|   | (f) | Assist                the Company in developing a financial strategy and securing equity                capital                and/or debt financing to fund on-going business of the                Company; |
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|   | (g) | Assist                the Company to identify potential investors and potential prospects                that                best meet Company's objectives. |
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|   | (a) | A                grant of restricted stock entitling the Advisor to receive Fifty                Thousand                (50,000) shares of common stock of the Company on each annual anniversary                of this agreement. These shares will vest and will be issued to the                Advisor on the annual anniversary of this                agreement. |
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|   | (b) | A                payment of a quarterly fee (the “Quarterly Fee”) in the amount of Five                Thousand (5,000) shares of restricted common stock payable Ten (10)                Days                following the end of the quarter. For second quarter of the fiscal                year                2006, (October 31), the advisor’s fee will be prorated for the period of                service from the date of this agreement through October 31,                2006. |
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|   | (c) | The                Company shall reimburse the Advisor from time to time for all reasonable                and customary out-of-pocket business expenses incurred in the performance                of his duties hereunder, provided that the Advisor shall submit reasonable                supporting data to substantiate the amount of said expenses. The                Company                shall reimburse the Advisor for such within 30 days upon receipt                of a                voucher from the Advisor summarizing such expenses. Such expenses                shall                not exceed $5,000 without prior approval from the                Company. |
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|   | (a) | The                Advisor and the Company at their sole discretion shall determine                schedule                and place of the performance of the advisory services. The Advisor                shall                devote a minimum of thirty (30) days annually to the provision of                the                advisory services contemplated hereunder. The Advisor agrees to be                available to the Company during normal business hours, on a regular                basis,                as necessary to ensure the timely and professional performance of                the                duties of the Advisor hereunder. Furthermore, the Advisor agrees                to meet                at least once annually with the Company’s management, the Board and the                entire Advisory Board. The company will select a date for the Advisory                board meeting, which shall be at least six months from the date of                the                formation of the Advisory Board. |
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|   | (a) | The                Company shall make available the information, resources and Company                personnel and timely perform those tasks necessary to enable Advisor                to                provide the services. The Company will keep the Advisor informed                on a                current basis of all material developments, which may impact the                financial                performance of the Company, its businesses, outlook or financial                condition. |
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|   | (a) | If                mutually agreed, Advisor may provide additional services to the Company                not described herein, but Advisor shall not be obligated to provide                any                such services unless the nature and terms of such services and the                compensation to be provided are mutually agreed in advance in                writing. |
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|   | (a) | Unless                terminated earlier in accordance with the provisions of this Section,                the                term (the "Term") of this Agreement shall be for a one-year period                commencing on October 5, 2006 and ending on October 5, 2007. The                Company                and Advisor each shall have the right, in its sole and absolute                discretion, to terminate this Agreement upon thirty (30) day written                notice. |
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|   | (b) | The                Agreement shall automatically be extended for one-year periods on                each                annual anniversary date thereafter, unless either party notifies                the other                party in writing of its desire to terminate this Agreement at least                thirty                (30) days prior to such annual anniversary                date. |
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|   | (c) | If                this Agreement is terminated by the Advisor for any reason before                the                one-year period, the Advisor shall be entitled to be paid (i) an                amount                equal to all reimbursable expenses the Advisor has incurred in providing                services hereunder prior to the termination date, and (ii) all Quarterly                Fees payable to the Advisor pursuant to Section 2(b) and earned by                the                Advisor with respect to the advisory services rendered prior to the                date                of termination, based on the days of service from the end of the                previous                quarter for which Advisor received Quarterly Fees to the date of                termination. For example, if Advisor served for the period of 60                days, the                Advisor would receive 60/91 of Five Thousand (5,000)                shares. |
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|   | (d) | If                the Company terminates this Agreement prior to October 5, 2007 for                any                reason, restricted shares granted to Advisor pursuant to Sections                2(a)                shall be issued to Advisor on prorated basis based on the months                of                service from the start of the agreement to the date of termination.                For                example, if the Advisor served for the period of six months, the                Advisor                would receive 6/12 of Fifty Thousand (50,000) shares. Furthermore,                Quarterly Fees payable to Advisor pursuant to Section 2(b) shall                be paid                to Advisor on prorated basis based on the days of service from the                end of                the previous quarter for which Advisor received Quarterly Fees to                the date                of termination. For example, if Advisor served for the period of                60 days,                the Advisor would receive 60/91 of Five Thousand (5,000)                shares. |
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|   | (e) | Upon                termination of this Agreement, the Advisor shall return to the Company                all                information, records and other materials, which the Company may have                provided to the Advisor, and the Company shall return to the Advisor                any                property of the Advisor not purchased and paid for by the                Company. |
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|   | (a) | It                is understood that the Advisor, in performing its services, is not                the                agent for the Company, is not an officer, director, employee, servant,                or                representative of the Company, and does not have the actual or implied                authority to enter into any contracts which bind the Company, without                the                prior written consent of the                Company. |
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|   | (b) | The                Advisor shall be responsible for filing all tax returns and paying                all                federal, state, local and foreign taxes (including without limitation,                income taxes, social security tax, employment taxes, unemployment                taxes                and self-employment taxes) due with respect to the compensation paid                to                the Advisor. |
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|   | (c) | As                an independent contractor, the Advisor will not be eligible for the                benefits provided to regular employees of the Company, including,                but not                limited to, health and disability                insurance. |
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|   | (a) | The                Company agrees, to the fullest extent permitted by law to indemnify                and                hold harmless the Advisor, its officers, directors, principals and                employees and to pay the expenses of each of them in defending any                threatened or pending civil or criminal action, demand, investigation,                suit or proceeding as such expenses are incurred and in advance of                the                final disposition of any such threatened or pending action, demand,                investigation, suit or proceeding. The Advisor shall not be responsible                for any losses, liabilities, damages, claims or expenses (collectively,                the "Losses") incurred by the Company arising from any acts or omissions                by the Advisor in connection with the performance of its duties under                this                Agreement other than Losses resulting or arising from its gross negligence                or willful misconduct. |
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|   | (a) | Except                in the course of the performance of its duties hereunder or as may                be                required by applicable law or by a governmental order, decree, regulation                or rule (provided that the Advisor shall give written notice to the                Company prior to such disclosure), the Advisor agrees that it shall                not                disclose any trade secrets, knowhow or other proprietary information                not                in the public domain and learned as a result of this Agreement unless                and                until such information becomes generally known other than through                the act                or omission of the Advisor. |
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|   | (a) | The                Company and Advisor shall negotiate in good faith to resolve any                disputes                between themselves in connection with this engagement. In the event                of a                failure to resolve the dispute, the dispute shall be resolved through                binding arbitration in Houston, Texas. Any matter to be submitted                to                arbitration hereunder may be submitted to arbitration by either the                Advisor or the Company. Any matter submitted to arbitration shall                be                determined by a panel of three arbitrators unless otherwise agreed                by the                parties. Arbitrators shall be chosen by mutual agreement of the parties                or, failing such agreement within 60 days of the request for arbitration,                each party shall appoint one arbitrator and the third arbitrator                shall be                appointed by the Senior United States District Judge for the Southern                District of Texas, acting in his individual                capacity. |
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|   | (b) | In                the event of the failure or refusal of the parties or such judge                to                appoint the arbitrator(s) within 120 days of the request for arbitration,                the arbitrator shall be selected in accordance with the rules of                the                American Arbitration Association. The arbitration shall be conducted                in                accordance with the rules of the American Arbitration Association.                Any                award by the arbitrator(s) shall be final, binding and not appealable,                and                judgment may be entered thereon in any court of competent jurisdiction.                A                dispute shall be deemed to have arisen when either party notifies                the                other party in writing to that                effect. |
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|   | (a) | This                Agreement shall be deemed to be a contract made under the laws of                the                State of Texas and for all purposes shall be construed in accordance                with                the laws of said State. |
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|   | (a) | This                Agreement shall not be assignable by any party, except to successors                to                all or substantially all of the business of either party, for any                reason                whatsoever without the prior written consent of the other party,                which                consent may not be arbitrarily withheld by the party whose consent                is                required. |
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|   | (a) | Notice                given under this Agreement shall be given when delivered in person                or by                registered or certified mail, postage prepaid, return receipt requested                or                by other delivery service providing evidence of receipt, to the party                to                whom such notice is to be given at the following address or at such                other                address as either party shall hereafter give notice of to the other                in                writing: |
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|   |   | If to the Company to: |
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|   |   | True                North Energy Corporation1400                Woodloch Forest Drive, Suite 530The                Woodlands, Texas 77380Attn:                John Folnovic |
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|   |   | If to Advisor to: |
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|   |   | ____________________________________________________________ |
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|   | (b) | This                Agreement shall not restrict or prevent Advisor from pursuing other                business interests or providing advisory or other services to other                parties while this Agreement is in                effect. |
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| TRUE NORTH ENERGY              CORPORATION |                                              |   |   |
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|                                       |                                              |   |   |   |
|                                       |                                              |   |   |   |
| By:                                        |                                              |   |   |   |
|                                       | John              I. Folnovic, President and      |   |   |  |
|                                       | Chief              Executive              Officer |   |   |   |

| By:    |   |   |   |   |
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| Name:  |        |   |   |        |
| Title: |   |   |   |   |
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