| Re: | That      certain Asset Purchase Agreement dated September 24, 2007 between PBT      Capital Partners, LLC, and Standard Drilling, Inc. (the      “Agreement”) |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Upon      Closing, Buyer will place $233,425 in an escrow account pursuant to terms      and conditions, and with an escrow agent, mutually and reasonably      acceptable to Buyer and Seller, which terms and conditions shall be      generally as follows: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)    | The      escrowed funds shall be applied to the payment of any failure to drill      penalties which were accrued as of the date of the Agreement pursuant to      the Daniels Lease referenced in Section 2.4 of the Agreement, if (and only      if) and to the extent a valid claim therefor is made against the Seller by      Paul R. Daniels and/or wife, Marcia B. Daniels and Marcia B. Daniels,      Trustee (collectively, the “Daniels”), prior to the expiration of the      Escrow Term. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (b)    | The      “Escrow Term” shall begin on the date of the establishment of the escrow      account and shall expire immediately upon the first of the following to      occur:                                                                                                                                                                                                                                                                                                                            |

| (i)    | Eighteen      months after the date of this Agreement, or                                                                                                                                                                                                   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                        |
| (ii)   | The      direct or indirect disclosure by Seller, its affiliates, or any of their      respective representatives, employees, officers or directors, of the      existence of the escrow arrangement contemplated herein, or any of its      terms, either: |

| (1)    | to      the public, whether pursuant to governmental filings or otherwise,      or |
|--------|------------------------------------------------------------------------------------|
|   |                                                                               |
| (2)    | to      any of the Daniels.                                                        |

| (c) | Upon      the expiration of the Escrow Term pursuant to Section 1(b)(i), the amounts      held in the escrow account which are not subject to a valid claim      submitted by the Daniels shall be paid to PBT.  Upon the      expiration of the Escrow Term pursuant to Section 1(b)(ii), the amounts      held in the escrow account shall be paid to PBT whether or not subject to      a valid claim submitted by theDaniels. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Buyer      hereby represents that any and all liability, contingent or otherwise, of      the Seller for failure to drill penalties pursuant to the Norton Prospect      Leases referenced in Section 1.2(c) of the Agreement has been extinguished      and/or released.  Upon the execution and delivery of this      letter, Buyer shall deliver to Seller copies of documents evidencing such      release. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | In      consideration for the foregoing, Seller shall and does hereby cancel and      extinguish the liability of Buyer and Prentis Tomlinson pursuant to that      certain promissory note payable by Buyer to the order of Seller in the      original principal amount of $600,000.00 which is referenced in Section      1.3 of the Agreement (the “Note”).  Seller shall return to Buyer      the original Note, marked“Cancelled.” |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 4. | If      any matter relating to the subject matter of this letter agreement is      subject to dispute by either Seller or Buyer, the matter shall be referred      either by the Seller or the buyer (in either case, the “Claimant”) to      arbitration by one arbitrator pursuant to the Rules of Commercial      Arbitration (the “Rules”).  The Claimant shall file a request      for arbitration with the American Arbitration Association (“AAA”) and      notify the other party (the “Respondent”) in writing of the nature of the      dispute.  The arbitrator shall be appointed by the AAA in      accordance with the Rules.  Following the selection of the      arbitrator as set forth above, the arbitration shall be conducted promptly      and expeditiously so as to enable the arbitrator to render a decision      within 30 days.  Subject to the foregoing and except to the      extent the parties shall agree to the contrary, the arbitrator haring the      dispute shall apply and follow the Federal Rules of Civil Procedure and      the Federal rules of Evidence. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Buyer      shall pay on behalf of Standard Drilling, Inc. the property tax lien      126-5534-01142 due to Johnson County in the amount of $185,574.39 and      shall furnish to the Seller at closing a duly executed copy of the release      of lien. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | If      (and only if) and to the extent a valid claim is made against the Seller      by Daniels as referenced in Paragraph 1 above then Prentis B. Tomlinson,      Jr. shall immediately pay on behalf of Standard Drilling, Inc. the sum of      $223,425.61. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Further      the Buyer hereby represents that any and all liabilities, contingent or      otherwise, of the Seller in respect of employees listed in Sections 1.2(e)      through 1.2(g) of the Agreement has been extinguished and/or      released.  Upon execution and delivery of this letter, Buyer      shall deliver to the Seller copies of documents evidencing such      extinguishment or release. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | Buyer      agrees to promptly pay IHS Energy in the amount of $4,378.57 for services      rendered prior to closing date of the Agreement.  Buyer further      represents and warrants that it is and will be fully responsible for any      and all liabilities, contingent or otherwise, of the Seller referred to in      section 1.2 of the Agreement and shall promptly pay or settle such      liabilities. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | The      final execution, fulfillment and delivery of all terms and conditions as      outlined in this letter agreement are to be completed no later than      Friday, December 31, 2008. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Sincerely,                                                                                                                                                                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                          |
|   | PBT      Capital Partners, LLC                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                          |
|   | By:  /s/      Prentis B. Tomlinson,      Jr.                                                                                                                                                                     |
|   | Print      Name:  Prentis B. Tomlinson,      Jr.                                                                                                                                                                                                              |
|   | Title:  President                                                    |
|   |                                                                                                                                                                                                                                                                                                                                          |
|   | Prentis      B. Tomlinson, Jr.                                                                                                                                                                                                                                                                                                                |
|   | By:  /s/      Prentis B. Tomlinson,      Jr.                                                                                                                                                                     |
|   | Print      Name:  Prentis B. Tomlinson,      Jr.                                                                                                                                                                                                              |

----