Document:

Exhibit 10.1

    
      
        

      

    

    ARGYLE
      ENERGY, INC.

    10777
      Westheimer

    Suite
      170

    Houston,
      Texas 77042 

    Phone:
      (832)358-3900 

    Fax:
      (832) 358-3900

    

    March
      31,
      2005

    

    
      	
              Newton
                Properties, Inc.

            	 	
              Blue
                Ridge Energy, Inc.

            
	
              Hjeltake
                Rd.

            	 	
              10777
                Westheimer

            
	
              Ajeltake
                Island

            	 	
              Suite
                170

            
	
              Majuro,
                Marshall Island

            	 	
              Houston,
                Texas 77042 Majuro, MH 96960

            

    

    

    
      	
              RE:

            	
              Barnett
                Crossroads Prospect Area, Escambia County,
                Alabama

            

    

    

    Gentlemen:

    

    When
      accepted by you in the manner indicated below, this letter shall constitute
      an
      agreement by and between Argyle Energy, Inc. ("Argyle"), on the one hand, and
      Newton Properties ("Newton") on the other, relative to the referenced Prospect
      area.

    

    1.    Newton
      recognizes and acknowledges that Argyle has presented to Newton certain
      geological teas and concepts within the area outlined on the plat attached
      hereto and marked Exhibit A for identification (the "Prospect").

    

    2.    Argyle
      represents that it has the right to earn 75% of eight-eights working interest
      in
      various oil, gas and mineral leases which are located within the
      Prospect.

    

    3.    Newton
      desires to purchase Argyle's 75.0% of eight-eights (8/8ths) working interest
      in
      the Prospect. Argyle, in consideration of the cash payment provided for in
      5.
      below, and subject to the conditions and reservations contained herein, agrees
      to convey the right to earn the herein described working interest to
      Newton.

    

    It
      is
      understood by Newton that among the obligations it is assuming under this
      Agreement and the Joint Operating Agreement is the obligation to carry Dragon
      Energy Corporation, et.
      al.
      for the
      remaining 25.0% of eight-eights (8/8ths) working interest to casing point in
      each well drilled on the Prospect.

    

    4.    Blue
      Ridge Energy, Inc. ("BREY") has access to certain geoscience data covering
      the
      lands within the Prospect, and BREY, upon request, has agreed that for the
      term
      of this agreement, BREY will perform geologic services on lands within the
      Prospect on a nonexclusive basis, for use in connection with the exploration
      and
      development of the Prospect.

    

    5.    In
      consideration of Argyle's transfer of the interest as described herein, Newton
      has paid to Argyle the cash amount of $200,000.00 contemporaneously with
      Newton's acceptance of this Agreement, and Newton further agrees that on or
      before September 30, 2005, or prior to supding the Initial Well, whichever
      is
      the earlier, it will make a second payment of $200,000.00 to
      Argyle.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    It
      is
      further understood that if the Initial Well planned to be drilled on the
      Prospect is not spud on or before September 30, 2005, Newton shall immediately,
      if not previously paid, make the second payment of $200,000.00 to Argyle as
      provided above, and Newton shall reassign all of the right title and interest
      acquired by Newton hereunder to Argyle.

     

    6.    Subsequent
      to the execution of this Letter Agreement all operations on the Prospect shall
      be conducted pursuant to the terms and conditions of this Agreement and the
      Joint Operating Agreement. It is understood by Newton that the total of all
      royalty and all other burdens provided for in said Joint Operating Agreement
      shall be 30.0%.

    

    7.    This
      Agreement and the Joint Operating Agreement shall constitute the entire
      agreement and understanding between the parties hereto with respect to the
      subject matter hereof, any change or modification hereto must be made in writing
      and signed by both parties.

    

    8.    This
      agreement shall be binding on the successors and assigns of both parties. Any
      assignment or transfer of an interest in the Prospect shall be made subject
      to
      all of the terms and conditions of this Letter Agreement and the Joint Operating
      Agreement. Should there be a conflict between the terms of this Letter Agreement
      and the terms of the Joint Operating Agreement, the terms of this Agreement
      shall control.

    

    9.    This
      Agreement shall remain in force until the last oil and gas lease included in
      the
      Prospect has terminated.

    

    10.   
        Newton
      agrees that an escrow account shall be maintained at Amegy Bank of Texas,
      Houston, Texas for Newton's share of all cash advances for operations conducted
      on the Prospect pursuant to this Agreement and the JOA. If BREY requests a
      cash
      advance for an authorized operation pursuant to the JOA then Newton's share
      of
      such cash advance shall be paid within fifteen (15) days of receipt of such
      request by Newton into the escrow account to be paid out by the escrow agent
      to
      the maker of the invoice(s) incurred in connection with such authorized
      operation, upon BREY's presentation of such invoice to the escrow agent. The
      agreement governing the escrow account executed by and between BREY, Newton
      and
      the escrow agent (the "Escrow Agreement") shall provide that in the event an
      invoice, or charge or cost set forth in an invoice, submitted for payment to
      the
      escrow agent, is disputed by Newton (i) resolution of such dispute shall be
      made
      in accordance with the Joint Operating Agreement, (ii) Newton shall not give
      notice of such dispute to the escrow agent nor request or demand that the escrow
      agent not make payment of such disputed invoice, and (iii) regardless if the
      escrow agent is made aware of such dispute, the escrow agent shall make payment
      of such disputed invoice.

    

    It
      is
      agreed by Newton that the cash advance amount it will pay into the escrow
      account for any approved operation conducted hereunder shall be equal to 150%
      times the total estimated cost for its share of such operation as determined
      by
      BREY. Any positive balance remaining in the escrow account after the payment
      of
      all invoices with respect to each operation and each cash advance, shall be
      paid
      out to Newton. At any time when the remaining balance in the escrow account
      for
      an approved operation is, in BREY's judgment, less than 100% of the estimated
      cost remaining to complete such operation, BREY shall have the option to require
      an additional cash advance from Newton in an amount sufficient to increase
      the
      account balance to an amount equal to 125% times the estimated remaining cost
      to
      complete the operation.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      costs
      associated with the Escrow Agreement, the escrow agent's fees and the incidental
      cost of BREY in paying invoices through the escrow agent shall be paid by
      Newton.

    

    11.   
        It
      is
      agreed by and between Newton and Argyle that BREY shall be the Operator of
      the
      Barnett Crossroads Prospect and that all operations conducted by BREY, as
      Operator, shall be conducted pursuant to the terms of the Joint Operating
      Agreement attached hereto as Exhibit "B". It is also agreed that BREY shall
      not
      be required to maintain an interest in the Contract Area to serve as Operator
      of
      the Barnett Crossroads Prospect as provided in the Joint Operating
      Agreement.

    

    12.   
        In
      addition to the Overhead Charges provided for in the Copas Accounting Agreement,
      attached to the Operating Agreement as Exhibit "C", Blue Ridge Energy, Inc.
      ("BREY"), as Operator, shall charge Newton Properties a management fee for
      each
      well drilled on the Barnett Crossroads Prospect ("Prospect") equal to $10,000.00
      per month. The management fee shall be charged for each month during which
      BREY
      is engaged in preparations for and/or the drilling of each well located on
      the
      Prospect and shall include BREY's costs associated with in-house geological
      management and mapping, geophysical management and computer modeling,
      engineering management and planning, land management and administration, and
      associated accounting functions.

    

    13.   
        Newton
      Properties will earn an assignment of the interest provided herein upon
      completion of the drilling of the Initial Well on the Barnett Crossroads
      Prospect.

    

    14.   
        This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Texas without regard to conflicts of law principles. Claims arising
      out
      of or requiring the interpretation of this Agreement shall be brought and
      litigated in the courts located within Harris County, Texas, and both parties
      unconditionally consents and submits to the jurisdiction of such
      courts.

    

    If
      the
      foregoing corresponds to your understanding of the agreements we have reached
      on
      this matter, please indicate your acceptance in the space provided below and
      return a fully executed copy hereof to me for my files.

    

    Sincerely,

    

    By:
      /s/
      Harry Peters

    

    AGREED
      AND ACCEPTED THIS  31st  DAY OF MARCH, 2005

    

    NEWTON
      PROPERTIES

     

    
       

      
        
          	
                  /s/
                    David Craven 

                	 
	
                  By:
                    

                	David
                  Craven	 

        

         

      

    

    AGREED
      AND ACCEPTED THIS 31st DAY OF MARCH, 2005

    

    BLUE
      RIDGE ENERGY, INC.

    

    /s/
      Harry Peters 

    By:
      Harry
      PetersExhibit 10.2

    
      
        

      

    

    ARGYLE
      ENERGY, INC.

    10777
      Westheimer

    Suite
      170

    Houston,
      Texas 77042 

    Phone:
      (832)358-3900 

    Fax:
      (832)358-3900

    

    March
      31,
      2005

    

    
      	
              Newton
                Properties, Inc.

            	
              Blue
                Ridge Energy, Inc.

            
	
              Hjeltke
                Rd.

            	
              10777
                Westheimer

            
	
              Ajeltake
                Island

            	
              Suite
                170

            
	
              Majuro,
                Marshall Island

            	
              Houston,
                Texas 77042 Majuro, MH 96960

            

    

    

    RE: North
      Wright Field Prospect Area, Acadia Parish, Louisiana

     

    Gentlemen:

     

    When
      accepted by you in the manner indicated below, this letter shall constitute
      an
      agreement by and between Argyle Energy, Inc. ("Argyle"), on the one hand, and
      Newton Properties ("Newton") on the other, relative to the referenced Prospect
      area.

    

    1.   Newton
      recognizes and acknowledges that Argyle has presented to Newton certain
      geological teas and concepts within the area outlined on the plat attached
      hereto and marked Exhibit A for identification (the "Prospect").

    

    2.   Argyle
      represents that it is the owner of 87.5% of eight-eights (8/8ths) of the working
      interest in various options and/or oil, gas and mineral leases which are located
      within the Prospect.

    

    3.   Newton
      desires to purchase from Argyle 75% of eight-eights (8/8ths) of the working
      interest in the Prospect. Argyle, in consideration of the cash payment provided
      for in 5. below, and subject to the conditions contained herein agrees to convey
      such working interest to Newton.

     

    It
      is
      understood by Newton that among the obligations it is assuming under this
      Agreement and the Joint Operating Agreement is the obligation to carry Dragon
      Energy Corporation, et. al. ("Dragon") for the remaining 25.0% of eight-eights
      (8/8ths) working interest through initial sales in each well drilled on the
      Prospect.

    

    4.   Blue
      Ridge Energy, Inc. ("BREY") has access to certain geoscience data covering
      the
      lands within the Prospect, and BREY upon request has agreed that for the term
      of
      this agreement, BREY will perform geologic services on lands within the
      Prospect, on a nonexclusive basis, for use in connection with the exploration
      and development of the Prospect.

     

    5.   In
      consideration of Argyle's transfer and conveyance of the interest as described
      herein to Newton, Newton has paid to Argyle the cash amount of $600,000.00
      contemporaneously with Newton's acceptance of this Agreement, and Newton further
      agrees that on or before September 30, 2005, or prior to supding the Initial
      Well, whichever is the earlier, it will make a second payment of $600,000.00
      to
      Argyle.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      It
        is
        further understood that, if the Initial Well planned to be drilled on the
        Prospect is not spud on or before September 30, 2005, Newton shall immediately,
        if not previously paid, make the second payment of $600,000.00 to Argyle
        as
        provided above, and Newton shall reassign all of the right title and interest
        acquired by Newton hereunder to Argyle.

    

    

    6.   Subsequent
      to the execution of this Letter Agreement all operations on the Prospect shall
      be conducted pursuant to the terms and conditions of this Agreement and the
      Joint Operating Agreement. It is understood by Newton that the total of all
      royalty and all other burdens provided for in said Joint Operating Agreement
      shall be 30.0%

    

    7.   This
      Agreement and the Joint Operating Agreement shall constitute the entire
      agreement and understanding between the parties hereto with respect to the
      subject matter hereof, any change or modification hereto must be made in writing
      and signed by both parties.

    

    8.   This
      agreement shall be binding on the successors and assigns of both parties. Any
      assignment or transfer of an interest in the Prospect shall be made subject
      to
      all of the terms and conditions of this Letter Agreement and the Joint Operating
      Agreement. Should there be a conflict between the terms of this Letter Agreement
      and the terms of the Joint Operating Agreement, the terms of this Agreement
      shall control.

    

    9.   This
      Agreement shall
      remain in force until the last oil and gas lease included in the Prospect has
      terminated.

    

    10.  Newton
      agrees that an escrow account shall be maintained at Amegy Bank of Texas,
      Houston, Texas for Newton's share of all cash advances for operations conducted
      on the Prospect pursuant to this Agreement and the JOA. If BREY requests a
      cash
      advance for an authorized operation pursuant to the JOA then Newton's share
      of
      such cash advance shall be paid within fifteen (15) days of receipt of such
      request by Newton into the escrow account to be paid out by the escrow agent
      to
      the maker of the invoice(s) incurred in connection with such authorized
      operation, upon BREY's presentation of such invoice to the escrow agent. The
      agreement governing the escrow account executed by and between BREY, Newton
      and
      the escrow agent (the "Escrow Agreement") shall provide that in the event an
      invoice, or charge or cost set forth in an invoice, submitted for payment to
      the
      escrow agent, is disputed by Newton (i) resolution of such dispute shall be
      made
      in accordance with the Joint Operating Agreement, (ii) Newton shall not give
      notice of such dispute to the escrow agent nor request or demand that the escrow
      agent not make payment of such disputed invoice, and (iii) regardless if the
      escrow agent is made aware of such dispute, the escrow agent shall make payment
      of such disputed invoice.

    

    It
      is
      agreed by Newton that the cash advance amount it will pay into the escrow
      account for any approved operation conducted hereunder shall be equal to 150%
      times the total estimated cost for its share of such operation as determined
      by
      BREY. Any positive balance remaining in the escrow account after the payment
      of
      all invoices with respect to each operation and each cash advance, shall be
      paid
      out to Newton. At any time when the remaining balance in the escrow account
      for
      an approved operation is, in BREY's judgment, less than 100% of the estimated
      cost remaining to complete such operation, BREY shall have the option to require
      an additional cash advance from Newton in an amount sufficient to increase
      the
      account balance to an amount equal to 125% times the estimated remaining cost
      to
      complete the operation.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      costs
      associated with the Escrow Agreement, the escrow agent's fees and the incidental
      cost of BREY in paying invoices through the escrow agent shall be paid by
      Newton.

    

    11.  It
      is
      agreed by and between Newton and Argyle that BREY shall be the Operator of
      the
      North Wright Field Prospect and that all operations conducted by BREY, as
      Operator, shall be conducted pursuant to the terms of the Joint Operating
      Agreement attached hereto as Exhibit "B". It is also agreed that BREY shall
      not
      be required to maintain an interest in the Contract Area to serve as Operator
      of
      the North Wright Field Prospect as provided in the Joint Operating
      Agreement.

    

    12.  In
      addition to the Overhead Charges provided for in the Copas Accounting Agreement
      attached to the Operating Agreement as Exhibit "C", Blue Ridge Energy, Inc.
      ("BREY"), as Operator, shall charge Newton Properties a management fee for
      each
      well drilled on the North Wright Field Prospect ("Prospect") equal to $10,000.00
      per month. The management fee shall be charged for each month during which
      BREY
      is engaged in preparations for and/or the drilling of each well located on
      the
      Prospect and shall include BREY's costs associated with in-house geological
      management and mapping, geophysical management and computer modeling,
      engineering management and planning, land management and administration, and
      associated accounting functions.

    

    13.  Newton
      Properties will earn an assignment of the interest provided herein upon
      completion of the drilling of the Initial Well on the North Wright Field
      Prospect.

    

    14.  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Texas without regard to conflicts of law principles. Claims arising
      out
      of or requiring the interpretation of this Agreement shall be brought and
litigated
      in the courts located within Harris County, Texas, and both parties
      unconditionally consents and submits to the jurisdiction of such
      courts.

    

    If
      the
      foregoing corresponds to your understanding of the agreements we have reached
      on
      this matter, please indicate your acceptance in the space provided below and
      return a fully executed copy hereof to me for my files.

    

    Sincerely,

    

    /s/
      Harry
      Peters

    Harry
      Peters

    

    AGREED
      AND ACCEPTED THIS 31st DAY OF MARCH, 2005

    

    NEWTON
      PROPERTIES

     

    
      
        	
                /s/
                  David Craven 

              	 
	
                By:
                  

              	David
                Craven	 

      

       

    

    AGREED
      AND ACCEPTED THIS 31st DAY OF MARCH, 2005

    

    BLUE
      RIDGE ENERGY, INC.

    

    
      	
              /s/
                Harry Peters

            	 
	
              By:
                Harry Peters

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]