Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Texola Energy Corporation - Exhibit 10.25

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S.
PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

CONFIDENTIAL
PRIVATE PLACEMENT SUBSCRIPTION
AGREEMENT

	TO: 	Texola Energy Corporation (the
      "Company") 
	  	206 – 475 Howe Street 
	  	Vancouver, British Columbia Canada V6C 2B3
  

PURCHASE OF CONVERTIBLE NOTE AND WARRANTS

1.                          
Subscription

1.1                       
On the basis of the representations and warranties and subject to the terms and
conditions set forth herein, the undersigned (the "Subscriber") hereby
irrevocably subscribes for and agrees to purchase a convertible note, in the
form attached hereto as Exhibit A (the "Note"), which Note is convertible into
570,000 units (the "Units") at a price per Unit of US$1.00, for an aggregate
purchase price of US$570,000 (the "Subscription Proceeds") (such subscription
and agreement to purchase being the "Subscription").

1.2                        
Each Unit converted from the Note will consist of one common share in the
capital of the Company (each, a "Conversion Share") and one common share
purchase warrant, in the form attached hereto as Exhibit B (the "Warrants").
Each Warrant shall be non-transferrable and shall entitle the holder thereof to
purchase one share of common stock in the capital of the Company (each, a
"Warrant Share") at a price per Warrant Share of US$1.50 for a period of two (2)
years commencing on the date of issuance of the Warrants. The Notes, the
Warrants, the Warrant Shares and the Conversion Shares are collectively referred
to as the "Securities".

1.3                        
On the basis of the representations and warranties and subject to the terms and
conditions set forth herein, the Company hereby irrevocably agrees to sell the
Securities to the Subscriber.

1.4                        
Subject to the terms hereof, the Subscription will be effective upon its
acceptance by the Company.

- 2 -

2.                          
Payment

2.1                        
The Subscription Proceeds must accompany this Subscription and shall be paid by
certified cheque or bank draft drawn on a Canadian chartered bank, and made
payable and delivered to the Company. Alternatively, the Subscription Proceeds
may be wired to the Company or its lawyers pursuant to wiring instructions that
will be provided to the Subscriber upon request. If the funds are wired to the
Company's lawyers, those lawyers are authorized to immediately deliver the funds
to the Company.

2.2                        
The Subscriber acknowledges and agrees that this Subscription Agreement, the
Subscription Proceeds and any other documents delivered in connection herewith
will be held on behalf of the Company. In the event that this Subscription
Agreement is not accepted by the Company for whatever reason, which the Company
expressly reserves the right to do, within 30 days of the delivery of an
executed Subscription Agreement by the Subscriber, this Subscription Agreement,
the Subscription Proceeds (without interest thereon) and any other documents
delivered in connection herewith will be returned to the Subscriber at the
address of the Subscriber as set forth in this Subscription Agreement.

2.3                        
Where the Subscription Proceeds are paid to the Company, the Company is entitled
to treat such Subscription Proceeds as an interest free loan to the Company
until such time as the Subscription is accepted and the Note has been issued to
the Subscriber.

3.                         
 Documents Required from Subscriber

3.1                        
The Subscriber must complete, sign and return to the Company two (2) executed
copies of this Subscription Agreement.

3.2                        
The Subscriber shall complete, sign and return to the Company as soon as
possible, on request by the Company, any additional documents, questionnaires,
notices and undertakings as may be required by any regulatory authorities and
applicable law.

4.                          
Closing

4.1                        
Closing of the offering of the Securities (the "Closing") shall occur on or
before April 10, 2006, or on such other date as may be determined by the Company
(the "Closing Date").

5.                          
Acknowledgements of Subscriber

5.1                        
The Subscriber acknowledges and agrees that:

	 	(a) 	
      none of the Securities have been registered under the
      1933 Act, or under any state securities or "blue sky" laws of any state of
      the United States, and, unless so registered, may not be offered or sold
      in the United States or, directly or indirectly, to U.S. Persons, as that
      term is defined in Regulation S under the 1933 Act ("Regulation S"),
      except in accordance with the provisions of Regulation S, pursuant to an
      effective registration statement under the 1933 Act, or pursuant to an
      exemption from, or in a transaction not subject to, the registration
      requirements of the 1933 Act;

	 	 	 
	 	(b) 	
      the Subscriber acknowledges that the Company has not
      undertaken, and will have no obligation, to register any of the Securities
      under the 1933 Act;

	 	 	 
	 	(c) 	
      the decision to execute this Agreement and acquire the
      Securities agreed to be purchased hereunder has not been based upon any
      oral or written representation as to fact or otherwise made by or on
      behalf of the Company and such decision is based entirely upon a review of
      any public information which has been filed by the Company with the
      Securities and Exchange Commission ("SEC") in compliance, or intended
      compliance, with applicable securities
legislation;

- 3 -

	 	(d) 	
      the Subscriber and the Subscriber's advisor(s) have had a
      reasonable opportunity to ask questions of and receive answers from the
      Company in connection with the distribution of the Securities hereunder,
      and to obtain additional information, to the extent possessed or
      obtainable without unreasonable effort or expense, necessary to verify the
      accuracy of the information about the Company;

	 	 	 
	 	(e) 	
      the books and records of the Company were available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Subscriber during reasonable business hours at its
      principal place of business, and all documents, records and books in
      connection with the distribution of the Securities hereunder have been
      made available for inspection by the Subscriber, the Subscriber's lawyer
      and/or advisor(s);

	 	 	 
	 	(f) 	
      the Company is entitled to rely on the representations
      and warranties of the Subscriber contained in this Agreement and the
      Subscriber will hold harmless the Company from any loss or damage it or
      they may suffer as a result of the Subscriber's failure to correctly
      complete this Subscription Agreement;

	 	 	 
	 	(g) 	
      the Subscriber will indemnify and hold harmless the
      Company and, where applicable, its directors, officers, employees, agents,
      advisors and shareholders, from and against any and all loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any
      and all fees, costs and expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any claim, lawsuit,
      administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any representation or warranty of
      the Subscriber contained in this Subscription Agreement or in any document
      furnished by the Subscriber to the Company in connection herewith being
      untrue in any material respect or any breach or failure by the Subscriber
      to comply with any covenant or agreement made by the Subscriber to the
      Company in connection therewith;

	 	 	 
	 	(h) 	
      none of the Securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock exchange or automated dealer quotation system, except that currently
      the common shares of the Company are quoted for trading on the National
      Association of Securities Dealers Inc.'s OTC Bulletin Board (the
      "OTCBB");

	 	 	 
	 	(i) 	
      the Subscriber has not acquired the Securities as a
      result of, and will not itself engage in, any "directed selling efforts"
      (as defined in Regulation S under the 1933 Act) in the United States in
      respect of the Securities which would include any activities undertaken
      for the purpose of, or that could reasonably be expected to have the
      effect of, conditioning the market in the United States for the resale of
      any of the Securities; provided, however, that the Subscriber may sell or
      otherwise dispose of the Securities pursuant to registration thereof under
      the 1933 Act and any applicable state and provincial securities laws or
      under an exemption from such registration requirements;

	 	 	 
	 	(j) 	
      the Company will refuse to register any transfer of the
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from the registration requirements of
      the 1933 Act and in accordance with applicable state and provincial
      securities laws;

	 	 	 
	 	(k) 	
      the statutory and regulatory basis for the exemption
      claimed for the offer of the Securities, although in technical compliance
      with Regulation S, would not be available if the offering is part of a
      plan or scheme to evade the registration provisions of the 1933 Act or any
      applicable state and provincial securities laws;

	 	 	 
	 	(l) 	
      the Subscriber has been advised to consult the
      Subscriber's own legal, tax and other advisors with respect to the merits
      and risks of an investment in the Securities and with respect to
      applicable resale restrictions, and it is solely responsible (and the
      Company is not in any way responsible) for compliance
  with:

- 4 -

	 		(i) 	
      any applicable laws of the jurisdiction in which the
      Subscriber is resident in connection with the distribution of the
      Securities hereunder, and

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions; and

	 	 	 	 
	 	(m) 	
      in addition to resale restrictions imposed under U.S.
      securities laws, there are additional restrictions on the Subscriber's
      ability to resell any of the Conversion Shares or Warrant Shares under the
      Securities Act (British Columbia) (the "B.C. Act") and Multilateral
      Instrument 45-102 adopted by the British Columbia Securities Commission
      (the "BCSC");

	 	 	 	 
	 	(n) 	
      the Company has advised the Subscriber that the Company
      is relying on an exemption from the requirements to provide the Subscriber
      with a prospectus to issue the Securities and, as a consequence of
      acquiring the Securities pursuant to such exemption certain protections,
      rights and remedies provided by the applicable securities legislation of
      British Columbia including statutory rights of rescission or damages, will
      not be available to the Subscriber;

	 	 	 	 
	 	(o) 	
      neither the SEC nor any other securities commission or
      similar regulatory authority has reviewed or passed on the merits of any
      of the Securities;

	 	 	 	 
	 	(p) 	
      no documents in connection with the sale of the
      Securities hereunder have been reviewed by the SEC or any state securities
      administrators;

	 	 	 	 
	 	(q) 	
      there is no government or other insurance covering any of
      the Securities; and

	 	 	 	 
	 	(r) 	
      this Subscription Agreement is not enforceable by the
      Subscriber unless it has been accepted by the
Company.

6.                         
 Representations, Warranties and Covenants of the
Subscriber

6.1                        
The Subscriber hereby represents and warrants to and covenants with the Company
(which representations, warranties and covenants shall survive the Closing)
that:

	 	(a) 	
      it has the legal capacity and competence to enter into
      and execute this Subscription Agreement and to take all actions required
      pursuant hereto and it is duly incorporated and validly subsisting under
      the laws of its jurisdiction of incorporation and all necessary approvals
      by its directors, shareholders and others have been obtained to authorize
      execution and performance of this Subscription Agreement on behalf of the
      Subscriber;

	 	 	 
	 	(b) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby do not result in the violation of any of
      the terms and provisions of any law applicable to, or the constating
      documents of, the Subscriber or of any agreement, written or oral, to
      which the Subscriber may be a party or by which the Subscriber is or may
      be bound;

	 	 	 
	 	(c) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and it constitutes a valid and binding agreement of
      the Subscriber enforceable against the Subscriber;

	 	 	 
	 	(d) 	
      the Subscriber is not acquiring the Securities for the
      account or benefit of, directly or indirectly, any U.S. Person;

	 	 	 
	 	(e) 	
      the Subscriber is not a U.S. Person;

	 	 	 
	 	(f) 	
      the Subscriber is resident in the jurisdiction set out
      under the heading "Name and Address of Subscriber" on the signature page
      of this Subscription Agreement;

- 5 -

	 	(g) 	
      the sale of the Securities to the Subscriber as
      contemplated in this Subscription Agreement complies with or is exempt
      from the applicable securities legislation of the jurisdiction of
      residence of the Subscriber;

	 	 	 
	 	(h) 	
      the Subscriber is acquiring the Securities as principal
      for investment only and not with a view to resale or distribution and, in
      particular, it has no intention to distribute either directly or
      indirectly any of the Securities in the United States or to U.S.
      Persons;

	 	 	 
	 	(i) 	
      the Subscriber is outside the United States when
      receiving and executing this Agreement and is acquiring the Securities as
      principal for the Subscriber's own account, for investment purposes only,
      and not with a view to, or for, resale, distribution or fractionalisation
      thereof, in whole or in part, and no other person has a direct or indirect
      beneficial interest in such Securities;

	 	 	 
	 	(j) 	
      the Subscriber is not an underwriter of, or dealer in,
      the common shares of the Company, nor is the Subscriber participating,
      pursuant to a contractual agreement or otherwise, in the distribution of
      the Securities;

	 	 	 
	 	(k) 	
      the Subscriber acknowledges that the Subscriber has not
      acquired the Securities as a result of, and will not itself engage in, any
      "directed selling efforts" (as defined in Regulation S under the 1933 Act)
      in the United States in respect of the Securities which would include any
      activities undertaken for the purpose of, or that could reasonably be
      expected to have the effect of, conditioning the market in the United
      States for the resale of the Securities; provided, however, that the
      Subscriber may sell or otherwise dispose of the Securities pursuant to
      registration of the Securities pursuant to the 1933 Act and any applicable
      state and provincial securities laws or under an exemption from such
      registration requirements and as otherwise provided herein;

	 	 	 
	 	(l) 	
      the Subscriber understands and agrees that offers and
      sales of any of the Securities prior to the expiration of a period of one
      year after the date of original issuance of the Securities (the one year
      period hereinafter referred to as the "Distribution Compliance Period")
      shall only be made in compliance with the safe harbor provisions set forth
      in Regulation S, pursuant to the registration provisions of the 1933 Act
      or an exemption therefrom, and that all offers and sales after the
      Distribution Compliance Period shall be made only in compliance with the
      registration provisions of the 1933 Act or an exemption therefrom and in
      each case only in accordance with applicable state and provincial
      securities laws;

	 	 	 
	 	(m) 	
      the Subscriber understands and agrees not to engage in
      any hedging transactions involving any of the Securities unless such
      transactions are in compliance with the provisions of the 1933 Act and in
      each case only in accordance with applicable state and provincial
      securities laws;

	 	 	 
	 	(n) 	
      the Subscriber understands and agrees that the Company
      will refuse to register any transfer of the Securities not made in
      accordance with the provisions of Regulation S, pursuant to an effective
      registration statement under the 1933 Act or pursuant to an available
      exemption from the registration requirements of the 1933 Act;

	 	 	 
	 	(o) 	
      the Subscriber is aware that an investment in the Company
      is speculative and involves certain risks, including the possible loss of
      the entire investment;

	 	 	 
	 	(p) 	
      the Subscriber has made an independent examination and
      investigation of an investment in the Securities and the Company and has
      depended on the advice of its legal and financial advisors and agrees that
      the Company will not be responsible in any way whatsoever for the
      Subscriber's decision to invest in the Securities and the
  Company;

	 	 	 
	 	(q) 	
      the Subscriber (i) has adequate net worth and means of
      providing for its current financial needs and possible personal
      contingencies, (ii) has no need for liquidity in this investment, and
      (iii) is able to bear the economic risks of an investment in the
      Securities for an indefinite period of time;

- 6 -

	 	(r) 	
      the Subscriber understands and agrees that the Company
      and others will rely upon the truth and accuracy of the acknowledgements,
      representations and agreements contained in this Agreement and agrees that
      if any of such acknowledgements, representations and agreements are no
      longer accurate or have been breached, the Subscriber shall promptly
      notify the Company;

	 	 	 
	 	(s) 	
      the Subscriber (i) is able to fend for him/her/itself in
      the Subscription; (ii) has such knowledge and experience in business
      matters as to be capable of evaluating the merits and risks of its
      prospective investment in the Securities; and (iii) has the ability to
      bear the economic risks of its prospective investment and can afford the
      complete loss of such investment;

	 	 	 
	 	(t) 	
      the Subscriber understands and agrees that none of the
      Securities have been registered under the 1933 Act, or under any state
      securities or "blue sky" laws of any state of the United States, and,
      unless so registered, may not be offered or sold in the United States or,
      directly or indirectly, to U.S. Persons except in accordance with the
      provisions of Regulation S, pursuant to an effective registration
      statement under the 1933 Act, or pursuant to an exemption from, or in a
      transaction not subject to, the registration requirements of the 1933 Act
      and in each case only in accordance with applicable state and provincial
      securities laws;

	 	 	 
	 	(u) 	
      all information contained in this Agreement is complete
      and accurate and may be relied upon by the Company, and the Subscriber
      will notify the Company immediately of any material change in any such
      information occurring prior to the closing of the purchase of the
      Securities;

	 	 	 
	 	(v) 	
      the Subscriber is not an underwriter of, or dealer in,
      the common shares of the Company, nor is the Subscriber participating,
      pursuant to a contractual agreement or otherwise, in the distribution of
      the Securities;

	 	 	 
	 	(w) 	
      the Subscriber understands and agrees that the Company
      will refuse to register any transfer of the Conversion Shares or the
      Warrant Shares not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from the registration requirements of
      the 1933 Act;

	 	 	 
	 	(x) 	
      the Subscriber is not aware of any advertisement of any
      of the Securities and is not acquiring the Securities as a result of any
      form of general solicitation or general advertising including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general advertising; and

	 	 	 
	 	(y) 	
      no person has made to the Subscriber any written or oral
      representations:

	 	(i) 	
      that any person will resell or repurchase any of the
      Securities;

	 	 	 
	 	(ii) 	
      that any person will refund the purchase price of any of
      the Securities;

	 	 	 
	 	(iii) 	
      as to the future price or value of any of the Securities;
      or

	 	 	 
	 	(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities of the
      Company on any stock exchange or automated dealer quotation system, except
      that currently certain market makers make market in the common shares of
      the Company on the OTCBB.

6.2                        
In this Agreement, the term "U.S. Person" shall have the meaning ascribed
thereto in Regulation S.

- 7 -

7.                          
Representations and Warranties will be Relied Upon by the
Company

7.1                        
The Subscriber acknowledges that the representations and warranties contained
herein are made by it with the intention that such representations and
warranties may be relied upon by the Company and its legal counsel in
determining the Subscriber's eligibility to purchase the Securities under
applicable securities legislation, or (if applicable) the eligibility of others
on whose behalf it is contracting hereunder to purchase the Securities under
applicable securities legislation. The Subscriber further agrees that by
accepting delivery of the certificates representing the Securities on the
Closing Date, it will be representing and warranting that the representations
and warranties contained herein are true and correct as at the Closing Date with
the same force and effect as if they had been made by the Subscriber on the
Closing Date and that they will survive the purchase by the Subscriber of
Securities and will continue in full force and effect notwithstanding any
subsequent disposition by the Subscriber of such Securities.

8.                         
 Resale Restrictions

8.1                        
The Subscriber acknowledges that any resale of the Securities will be subject to
resale restrictions contained in the securities legislation applicable to the
Subscriber or proposed transferee. The Subscriber acknowledges that none of the
Securities have been registered under the 1933 Act of the securities laws of any
state of the United States. None of the Securities may be offered or sold in the
United States unless registered in accordance with United States federal
securities laws and all applicable state and provincial securities laws or
exemptions from such registration requirements are available.

9.                         
 Acknowledgement and Waiver

9.1                        
The Subscriber has acknowledged that the decision to acquire the Securities was
solely made on the basis of publicly available information. The Subscriber
hereby waives, to the fullest extent permitted by law, any rights of withdrawal,
rescission or compensation for damages to which the Subscriber might be entitled
in connection with the distribution of any of the Securities.

10.       
                 
Legending and Registration of Subject Securities

10.1                        The
Subscriber hereby acknowledges that upon the issuance thereof, and until such
time as the same is no longer required under the applicable securities laws and
regulations, the certificates representing any of the Securities will bear a
legend in substantially the following form:

  
    
      
        THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED
          IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS
          DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES
          ACT OF 1933, AS AMENDED (THE "1933 ACT"). NONE OF THE SECURITIES REPRESENTED
          HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES
          LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY
          OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS
          EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933
          ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933
          ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
          NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN
          EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
          IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
          CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND
          "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

      

    

  

- 8 -

10.2                        
The Subscriber hereby acknowledges and agrees to the Company making a notation
on its records or giving instructions to the registrar and transfer agent of the
Company in order to implement the restrictions on transfer set forth and
described in this Agreement.

11.                          
British Columbia Resale Restriction

11.1                        
The Subscriber acknowledges that the Conversion Shares and the Warrant Shares
are subject to resale restrictions in British Columbia and may not be traded in
British Columbia except as permitted by the B.C. Act and the rules made
thereunder.

11.2                        
Pursuant to Multilateral Instrument 45-102, as adopted by the BCSC, a subsequent
trade in the Conversion Shares or Warrant Shares will be a distribution subject
to the prospectus and registration requirements of applicable Canadian
securities legislation (including the B.C. Act) unless certain conditions are
met, which conditions include a hold period (the "Canadian Hold Period") that
shall have elapsed from the date on which the Securities were issued to the
Subscriber and, during the currency of the Canadian Hold Period, any certificate
representing the Securities is to be imprinted with a restrictive legend (the
"Canadian Legend").

11.3                        
By executing and delivering this Agreement, the Subscriber will have directed
the Company not to include the Canadian Legend on any certificates representing
the Securities to be issued to the Subscriber.

11.4                        
As a consequence, the Subscriber will not be able to rely on the resale
provisions of Multilateral Instrument 45-102, and any subsequent trade in any of
the Conversion Shares or the Warrant Shares during or after the Canadian Hold
Period will be a distribution subject to the prospectus and registration
requirements of Canadian securities legislation, to the extent that the trade is
at that time subject to any such Canadian securities legislation.

12.                         
 Costs

12.1                        
The Subscriber acknowledges and agrees that all costs and expenses incurred by
the Subscriber (including any fees and disbursements of any special counsel
retained by the Subscriber) relating to the purchase of the Securities shall be
borne by the Subscriber.

13.                          
Governing Law

13.1                        
This Subscription Agreement is governed by the laws of the Province of British
Columbia.

14.                          
Currency

14.1                        
Any reference to currency is to the currency of the United States unless
otherwise indicated.

15.                          
Survival

15.1                        
This Subscription Agreement, including without limitation the representations,
warranties and covenants contained herein, shall survive and continue in full
force and effect and be binding upon the parties hereto notwithstanding the
completion of the purchase of the Securities by the Subscriber pursuant
hereto.

16.                          
Assignment

16.1                        
This Subscription Agreement is not transferable or assignable.

17.                          
Severability

17.1                        
The invalidity or unenforceability of any particular provision of this
Subscription Agreement shall not affect or limit the validity or enforceability
of the remaining provisions of this Subscription Agreement.

- 9 -

18.                         
 Entire Agreement

18.1                        
Except as expressly provided in this Subscription Agreement and in the
agreements, instruments and other documents contemplated or provided for herein,
this Subscription Agreement contains the entire agreement between the parties
with respect to the sale of the Securities and there are no other terms,
conditions, representations or warranties, whether expressed, implied, oral or
written, by statute or common law, by the Company or by anyone else.

19.                          
Notices

19.1                        
All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Subscriber shall be directed to the address on
the signature page of this Subscription Agreement and notices to the Company
shall be directed to it at 206-475 Howe Street, Vancouver, British Columbia,
Canada V6C 2B3.

20.                          
Counterparts and Electronic Means

20.1                        
This Subscription Agreement may be executed in any number of counterparts, each
of which, when so executed and delivered, shall constitute an original and all
of which together shall constitute one instrument. Delivery of an executed copy
of this Subscription Agreement by electronic facsimile transmission or other
means of electronic communication capable of producing a printed copy will be
deemed to be execution and delivery of this Subscription Agreement as of the
date hereinafter set forth.

IN WITNESS WHEREOF the Subscriber has duly executed this
Subscription Agreement as of the date of acceptance by the Company.

	 	Bulstrode International Inc. 
	 	(Name of Subscriber – Please type or print)
  
	 	  
	 	  
	 	  
	 	/s/
      Signed 
	 	(Signature and, if applicable, Office) 
	 	  
	 	  
	 	  
	 	Bleicherweg 14, P.O. Box 2724 
	 	(Address of Subscriber) 
	 	  
	 	  
	 	  
	 	Zurich, 8022 
	 	(City, State or Province, Postal Code of
      Subscriber) 
	 	  
	 	  
	 	  
	 	Switzerland 
	 	(Country of Subscriber)

- 10 -

A C C E P T A N C E

The above-mentioned Subscription Agreement in respect of the
Note and the Warrants is hereby accepted by Texola Energy Corporation.

DATED at Vancouver, British Columbia, the 3rd day of April
2006, effective as of March 9, 2006.

TEXOLA ENERGY CORPORATION

	Per: 	/s/ Thornton Donaldson 	 
	  	Authorized Signatory 	 

- 11 -

EXHIBIT A

FORM OF CONVERTIBLE NOTE

- 12 -

EXHIBIT B

FORM OF WARRANTFiled by Automated Filing Services Inc. (604) 609-0244 - Texola Energy Corporation - Exhibit 10.26

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). NEITHER THE SECURITIES REPRESENTED BY THIS NOTE NOR THE SECURITIES
ISSUABLE UPON CONVERSION OF THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE
OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED
HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S UNDER THE SECURITIES ACT, PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. “UNITED STATES”
AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT.

	NO. 1 	US$570,000 

TEXOLA ENERGY CORPORATION 

6.0% CONVERTIBLE NOTE DUE MARCH 9, 2008 

Section 1.      General.

          FOR
VALUE RECEIVED, Texola Energy Corporation, a Nevada corporation (the
“Company”), hereby promises to pay to the order of Bulstrode
International Inc., or its registered assigns (the “Purchaser”), the
principal sum of FIVE HUNDRED SEVENTY THOUSAND UNITED STATES DOLLARS
(US$570,000), or such lesser amount as shall then equal the outstanding
principal amount hereof, together with interest thereon at a rate equal to 6%
(the “Interest Rate”) per annum, simple interest computed on the basis of
the actual number of days elapsed and a year of 360 days comprised of twelve 30
day months. Unless earlier converted in accordance with Section 4, all unpaid
principal, together with any then unpaid and accrued interest and other amounts
payable hereunder, shall be due and payable on the earlier of (i) March 9, 2008
(the “Maturity Date”) or (ii) when such amounts become due and payable as
a result of, and following, an Event of Default in accordance with Section 2.
The Company may repay all but not less than all of the principle amount, or
principle amount remaining, of this Note, together with all accrued interest
thereon with thirty (30) days written notice received by the Purchaser (the
“Repayment Notice”). Upon receipt of the Repayment Notice, the Purchaser
shall have ten (10) days to convert all but not less than all the principle
amount, or principle amount remaining, of this Note by delivering the Conversion
Notice (as hereinafter defined), to the Company. Upon expiration of ten (10)
days following receipt of the Repayment Notice, the Purchaser shall lose all
right to convert the principle amount, or principle amount remaining, of this
Note. Except as otherwise provided herein, all payments required to be made
hereunder, if 

1

any, shall be made in such coin or currency of the United
States as at the time of payment shall be legal tender therein for the payment
of public and private debts. Interest shall accrue on the unpaid balance of the
principal amount of this Note (without any compounding) from and including the
date hereof to, but excluding, the date on which the principal amount of this
Note is paid in full (or converted in accordance with Section 4 hereof) and
shall be payable on the Maturity Date. The payment of interest shall be payable
in Units valued at US$1.00 each as defined in, and in accordance with, section
4(a) hereof. No fractional Units shall be issued upon payment of interest under
this Note. Upon payment of interest of this Note at the Maturity Date or when
such interest becomes due and payable as a result of, and following, an Event of
Default in accordance with Section 2 hereof, the Company shall pay to the
Purchaser the amount of interest that is not paid by the issuance of the Units
in lieu of the Company issuing any fractional Units to the Purchaser.

Section 2.      Defaults.

          The
occurrence of any of the following shall constitute an “Event of Default”
under this Note:

          (a)     
the Company shall fail to pay (i) when due any principal or interest payment
hereof on the due date hereunder or (ii) any other payment required under the
terms of this Note on the date due;

          (b)      the
Company shall fail to observe or perform any other covenant, obligation,
condition or agreement contained in this Note and such failure shall continue
for ten (10) days after written notice thereof is delivered to the Company;

          (c)     
any representation, warranty, certificate, or other statement (financial or
otherwise) made or furnished by or on behalf of the Company to the Purchaser in
writing in connection with this Note shall be false, incorrect, incomplete or
misleading in any material respect when made or furnished;

          (d)     
the Company shall (i) apply for or consent to the appointment of a receiver,
trustee, liquidator or custodian of itself or of all or a substantial part of
its property, (ii) be unable, or admit in writing its inability, to pay its
debts generally as they mature, (iii) make a general assignment for the benefit
of its or any of its creditors, (iv) be dissolved or liquidated in full or in
part (v) commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
consent to any such relief or to the appointment of or taking possession of its
property by any official in an involuntary case or other proceeding commenced
against it, or (vi) take any action for the purpose of effecting any of the
foregoing; or

          (e)     
proceedings for the appointment of a receiver, trustee, liquidator or custodian
of the Company or of all or a substantial part of the property thereof, or an
involuntary case or other proceedings seeking liquidation, reorganization or
other relief with respect to the Company or the debts thereof under any
bankruptcy, insolvency or other similar law now or hereafter in effect shall be
commenced and an order for relief entered or such proceeding shall not be
dismissed or discharged within thirty (30) days of commencement.

2

Section 3.      Rights Of
Purchaser Upon Default.

          Upon
the occurrence or existence of any Event of Default and following the expiry of
any applicable grace periods (other than an Event of Default referred to in
Sections 2(e) hereof) and at any time thereafter during the continuance of such
Event of Default, the Purchaser may, by written notice to the Company, declare
all outstanding amounts payable by the Company hereunder to be immediately due
and payable without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived, anything contained herein to the
contrary notwithstanding. Upon the occurrence or existence of any Event of
Default described in Sections 2(e) hereof, immediately and without notice, all
outstanding amounts payable by the Company hereunder shall automatically become
immediately due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived, anything contained
herein to the contrary notwithstanding. In addition to the foregoing remedies,
upon the occurrence or existence of any Event of Default, the Purchaser may
exercise any other right, power or remedy permitted to it by law, either by suit
in equity or by action at law, or both.

Section 4.      Conversion.

          (a)     
Purchaser Conversion. At any time, and from time to time, the Purchaser
may, at its sole and exclusive option by delivering to the Company a conversion
notice in the form attached hereto as Annex A (the “Conversion
Notice”), convert all or any part of the principal (plus accrued but unpaid
interest thereon) outstanding under this Note into units (the “Units”) at
a conversion price per Unit of US$1.00 (the “Conversion Price”). Each
Unit converted under this Note will consist of one fully paid and nonassessable
share of Common Stock of the Company and one common share purchase warrant (the
“Warrants”) in the form attached as Exhibit B to the Private Placement
Subscription Agreement dated April 3, 2006, effective March 9, 2006 (the
“Subscription Agreement”). As set out in the Subscription Agreement, each
Warrant shall be non-transferable and shall entitle the holder thereof to
purchase one additional share of Common Stock (each, a “Warrant Share”)
at a price per Warrant Share of US$1.50 for a period of two (2) years commencing
on the date of issuance of the Warrants. The Conversion Price shall be subject
to adjustment as provided in Section 5 hereof. The Purchaser shall convert a
minimum of US$10,000 of principal for any conversion pursuant to this Section
4(a).

          (b)     
Mechanics and Effect of Conversion. No fractional Units shall be issued
upon conversion of this Note. Upon the conversion of the entire principal
outstanding under this Note, in lieu of the Company issuing any fractional Units
to the Purchaser, the Company shall pay to the Purchaser the amount of
outstanding principal that is not so converted. The Purchaser shall not be
required to deliver the original Note in order to effect a conversion
thereunder. Execution and delivery of the Conversion Notice shall have the same
effect as cancellation of the original Note and issuance of a new Note
representing the remaining outstanding principal amount. Upon surrender of this
Note following one or more partial conversions, the Company shall promptly
deliver to the Purchaser a new Note representing the remaining outstanding
principal amount. At its expense, the Company shall, as soon as practicable but
in no event more than ten (10) business days after conversion of this Note
pursuant to section 4, issue and deliver to the Purchaser at such principal
office a certificate or certificates for the number of shares of Common Stock
(the “Conversion Shares”) and for the number of Warrants, to which the

3

Purchaser shall be entitled upon such conversion (bearing such
legends as are required by applicable state and federal securities laws in the
opinion of counsel to the Company), together with any other securities and
property to which the Purchaser is entitled upon such conversion under the terms
of this Note. 

          (c)     
Reservation Of Stock Issuable Upon Conversion. The Company shall at all
times reserve and keep available out of its authorized but unissued shares of
capital stock of the Company, solely for the purpose of effecting the conversion
of this Note, such number of Conversion Shares and Warrant Shares as shall from
time to time be sufficient to effect the conversion of this Note; and if at any
time the number of authorized but unissued shares of capital stock of the
Company shall not be sufficient to effect the conversion of this Note, the
Company hereby covenants and agrees to take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of capital stock to such number of shares as shall be sufficient for such
purpose.

          (d)     
Payment Of Expenses And Taxes On Conversion. The Company shall pay all
expenses, taxes and other charges payable in connection with the preparation,
execution, issuance and delivery of stock certificates, warrant certificates and
new notes pursuant to this Section 4 hereof, except that, in the event such
stock certificates, warrant certificates or new notes shall be registered in a
name or names other than the name of the holder of this Note, funds sufficient
to pay all stock transfer fees, which shall be payable upon the execution and
delivery of such stock certificate or certificates or new notes, shall be paid
by the holder thereof to the Company at the time of delivering this Note to the
Company upon conversion.

Section 5.      Conversion Price
Adjustments.

          (a)      Adjustment
For Stock Splits And Combinations. If the Company shall at any time or from
time to time after the date of original issuance of this Note (the “Date of
Original Issue”) effect a subdivision or reverse stock split of the
outstanding Common Stock, the Conversion Price in effect immediately before a
subdivision shall be proportionately decreased, and, conversely, the Conversion
Price in effect immediately before a reverse stock split shall be
proportionately increased. Any adjustment under this Section 5(a) shall become
effective at the close of business on the date the subdivision or reverse stock
split becomes effective.

          (b)     
Adjustment For Common Stock Dividends And Distributions. If the Company
at any time or from time to time after the Date of Original Issue issues, or
fixes a record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution payable solely in additional shares of
Common Stock, the Conversion Price that is then in effect shall be decreased as
of the time of such issuance or, in the event such record date is fixed, as of
the close of business on such record date, by multiplying the Conversion Price
by a fraction (i) the numerator of which is the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date, and (ii) the denominator of which is
the sum of the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on such
record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution; provided, however, that if such record date is
fixed and such dividend is not fully paid or if such distribution is not fully
made on the date fixed therefor, 

4

the Conversion Price shall be recomputed accordingly as of the
close of business on such record date and thereafter the Conversion Price shall
be adjusted pursuant to this Section 5(b) to reflect the actual payment of such
dividend or distribution.

          (c)     
Adjustments For Other Dividends And Distributions. If the Company at any
time or from time to time after the Date of Original Issue issues, or fixes a
record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution payable in securities of the Company
other than shares of Common Stock or in other property, in each such event
provision shall be made so that the Purchaser shall receive upon conversion
hereof, in addition to the number of shares of Common Stock receivable hereupon,
the amount of securities of the Company or other property which such Purchaser
would have received had this Note been converted into Common Stock on the date
of such event and had it thereafter, during the period from the date of such
event to and including the conversion date, retained such securities or other
property receivable by it as aforesaid during such period, subject to all other
adjustments called for during such period under this Section 5 with respect to
the rights of the Purchaser or with respect to such other securities or other
property by their terms. As used herein, the term “other property” does
not include cash.

          (d)     
Adjustment For Reclassification, Exchange And Substitution. If at any
time or from time to time after the Date of Original Issue, the Common Stock
issuable upon the conversion of this Note is changed into the same or a
different number of shares of any class or series of stock, whether by
recapitalization, reclassification or otherwise (other than a subdivision or
reverse stock split or stock dividend or a reorganization, merger, consolidation
or sale of assets provided for elsewhere in this Section 5), then in any such
event the Purchaser shall have the right thereafter to convert this Note into
the kind and amount of stock and other securities and property receivable upon
such recapitalization, reclassification or other change by holders of the number
of shares of Common Stock into which this Note could have been converted
immediately prior to such recapitalization, reclassification or change, all
subject to further adjustment as provided herein or with respect to such other
securities or property by the terms thereof.

          (e)     
Certificate Of Adjustment. In each case of an adjustment or readjustment
of the Conversion Price for the number of shares of Common Stock, Warrants or
other securities issuable upon conversion of this Note, the Company, at its own
expense, shall cause its Secretary or Treasurer to compute such adjustment or
readjustment in accordance with the provisions hereof and prepare a certificate
showing such adjustment or readjustment, and shall mail such certificate, by
first class mail, postage prepaid, to the Purchaser at the Purchaser’s address
as shown in the Company’s books. The certificate shall set forth such adjustment
or readjustment, showing in detail the facts upon which such adjustment or
readjustment is based. No adjustment in the Conversion Price shall be required
to be made unless it would result in an increase or decrease of at least one
cent, but any adjustments not made because of this sentence shall be carried
forward and taken into account in any subsequent adjustment otherwise required
hereunder.

          (f)     
Notices Of Record Date. Upon (i) the establishment by the Company of a
record of the holders of any class of securities for the purpose of determining
the holders thereof who are entitled to receive any dividend or other
distribution, or (ii) any capital reorganization of the 

5

Company, any reclassification or recapitalization of the
capital stock of the Company, any merger or consolidation of the Company with or
into any other Company, or any transfer of all or substantially all the assets
of the Company to any other person or any voluntary or involuntary dissolution,
liquidation or winding up of the Company, the Company shall mail to the
Purchaser at least 20 days prior to the record date specified therein a notice
specifying (A) the date on which any such record is to be taken for the purpose
of such dividend or distribution and a description of such dividend or
distribution, (B) the date on which any such reorganization, reclassification,
transfer, consolidation, merger, dissolution, liquidation or winding up is
expected to become effective, and (C) the date, if any, that is to be fixed as
to when the holders of record of Common Stock (or other securities), shall be
entitled to exchange their shares of Common Stock (or other securities), for
securities or other property deliverable upon such reorganization,
reclassification transfer, consolidation, merger, dissolution, liquidation or
winding up.

Section 6.      Exchange or
Replacement of Notes.

          (a)     
The Purchaser may, at its option, in person or by duly authorized attorney,
surrender this Note for exchange, at the principal business office of the
Company, and receive in exchange therefore, a new Note in the same principal
amount as the unpaid principal amount of this Note and bearing interest at the
same annual rate as this Note, each such new Note to be dated as of the date of
this Note and to be in such principal amount as remains unpaid and payable to
such person or persons, or order, as the Purchaser may designate in writing;
provided that any such transfer of this Note complies with all applicable
securities laws.

          (b)      Upon
receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction, or mutilation of this Note and (in the case of loss, theft or
destruction) of an indemnity reasonably satisfactory to it, and upon surrender
and cancellation of this Note, if mutilated, the Company will deliver a new Note
of like tenor in lieu of this Note. Any Note delivered in accordance with the
provisions of this Section 6 shall be dated as of the date of this Note.

Section 7.      Attorneys’ and
Collection Fees.

          Should
the indebtedness evidenced by this Note or any part hereof be collected at law
or in equity or in bankruptcy, receivership or other court proceedings, the
Company agrees to pay, in addition to the principal and interest due and payable
hereon, all costs of collection, including reasonable attorneys’ fees and
expenses, incurred by the Purchaser in collecting or enforcing this Note.

Section
8.      Waivers.

          The
Company hereby waives presentment, demand for payment, notice of dishonor,
notice of protest and all other notices or demands in connection with the
delivery, acceptance, performance or default of this Note. No delay by the
Purchaser in exercising any power or right hereunder shall operate as a waiver
of any power or right, nor shall any single or partial exercise of any power or
right preclude other or further exercise thereof, or the exercise thereof, or
the exercise of any other power or right hereunder or otherwise; and no waiver
whatsoever or 

6

modification of the terms hereof shall be valid unless set
forth in writing by the Purchaser and then only to the extent set forth
therein.

Section
9.      Amendments.

          Subject
to the provisions of the Subscription Agreement, this Note may not be amended
without the express written consent of both the Company and the Purchaser.

Section 10.     Governing Law.

          This
Note shall be deemed to be made under and shall be construed in accordance with
the laws of the Province of British Columbia without giving effect to the
principles of conflict of laws thereof.

Section 11.     Successors and
Assigns.

          The
rights and obligations of the Company and the Purchaser under this Note shall be
binding upon and benefit the successors, assigns, heirs, administrators and
transferees of the parties. Notwithstanding the foregoing, neither this Note nor
any of the rights, interests or obligations hereunder may be assigned, by
operation of law or otherwise, in whole or in part, by the Company, without the
prior written consent of the Purchaser.

Section 12.     Notices.

          All
notices, requests, demands and other communications to any party hereunder shall
be in writing (including facsimile or similar writing) and shall be given to
such party at its address or facsimile number set forth below or such other
address or facsimile number as such party may hereafter specify by notice to the
other parties listed below:

	 	(a) 	If to the Company: 	Texola Energy Corporation 
	 	  	  	206 - 475 Howe Street 
	 	  	  	Vancouver, British Columbia 
	 	  	  	Canada V6C 2B3 
	 	  	  	Attention: Thornton Donaldson 
	 	  	  	Telephone: 604-488-0277 
	 	  	  	Facsimile: 604-488-0239 
	 	  	  	  
	 	  	with a copy to: 	Clark Wilson LLP 
	 	  	  	Barristers and Solicitors 
	 	  	  	800-885 West Georgia Street 
	 	  	  	Vancouver, BC, Canada V6C 3H1 
	 	  	  	Attention: Virgil Z. Hlus, Esq. 
	 	  	  	Telephone: 604-687-5700 
	 	  	  	Facsimile: 604-687-6314 
	 	  	  	  
	 	(b) 	If to the Purchaser: At the address
      shown on the signature page 

7

Each such notice, request or other communication shall be
effective (i) upon receipt (provided, however, that notices received on a
Saturday, Sunday or legal holiday or after 5:00 p.m. on any other day will be
deemed to have been received on the next business day), if given by legible
facsimile transmission with proof from sender of confirmation of receipt, or
(ii) if given by any other means, when delivered at the address specified in
this Section 12.

Section 13.      No Rights of
Stockholders.

          Except
as otherwise provided herein, this Note shall not entitle the Purchaser to any
of the rights of a stockholder of the Company, including without limitation, the
right to vote, to receive dividends and other distributions, or to receive any
notice of, or to attend, meetings of stockholders or any other proceedings of
the Company, unless and to the extent converted into shares of Common Stock in
accordance with the terms hereof.

Section 14.      Entire
Agreement.

          This
Note represents the entire agreement between the parties hereto with respect to
the subject matter hereof and there are no representations, warranties or
commitments, except as set forth herein. This Note may be amended only by an
instrument in writing executed by the parties hereto. 

Section
15.      Headings.

          The
headings used in this Note are used for convenience only and are not to be
considered in construing or interpreting this Note.

Section 16.      Electronic
Means

          Delivery
of an executed copy of this Note by electronic facsimile transmission or other
means of electronic communication capable of producing a printed copy will be
deemed to be execution and delivery of this Note as of the date hereinafter set
forth.

Section
17.      Assignability

          This
Note shall be binding upon the Company and its successors and shall enure to the
benefit of the Purchaser and its successors. This Note is not assignable by the
Purchaser without the express written consent of the Company.

Section
18.      Currency

          Unless
expressly stated otherwise, all funds expressed in this Note are stated in
United States dollars.

Section 19.      Restrictions
on Shares

          The
Conversion Shares issuable upon conversion of this Note and the Warrant Shares
issuable upon exercise of the Warrants may not be sold or transferred unless (a)
the Conversion Shares or the Warrant Shares, as applicable, first shall have
been registered under the Securities 

8

Act and applicable state securities laws, or (b) the Company
shall have been furnished with an opinion of legal counsel (in form, substance
and scope customary for opinions in such circumstances) to the effect that such
sale or transfer is exempt from registration requirements of the Securities Act,
or (c) the Conversion Shares or Warrant Shares, as applicable, are sold under
Rule 144 under the Securities Act. Except as otherwise provided in the
Subscription Agreement, each certificate for the Conversion Shares and the
Warrant Shares issuable upon conversion of this Note or upon exercise of the
Warrants, as applicable, that have not been so registered and that have not been
sold under an exemption that permits removal of the legend, shall bear a legend
substantially in the following form, as appropriate:

“THE SECURITIES REPRESENTED HEREBY HAVE
BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS
DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”). NONE OF THE SECURITIES REPRESENTED
HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, OR ANY U.S. STATE
SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY
OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE SECURITIES
ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT,
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN EACH CASE ONLY IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
WITH THE SECURITIES ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY
REGULATION S UNDER THE SECURITIES ACT.”

Upon the request of the Holder of a certificate representing
any Conversion Shares issuable upon conversion of this Note or of a certificate
representing any Warrant Shares issuable upon exercise of the Warrants, the
Company shall remove the foregoing legend from the certificate and issue to the
Purchaser a new certificate free of any transfer legend, (a) if without an
effective registration statement with such request, the Company shall have
received either (i) an opinion of counsel, in form, substance and scope
customary for opinions in such circumstances, to the effect that any such legend
may be removed from such certificate, or (ii) satisfactory representations from
the Purchaser that the Purchaser is eligible to sell such security under Rule
144 or (b) a registration statement under the Securities Act covering the resale
of such securities is in effect.

9

IN WITNESS WHEREOF, the Company has caused this Note to be duly
executed by its duly authorized officer as of the date indicated below.

Dated: April 3, 2006, effective as of March 9, 2006

	 	TEXOLA ENERGY CORPORATION 
	 	  	  
	 	  	  
	 	By: 	/s/ Thornton Donaldson
	 	  	Name:   Thornton Donaldson 
	 	  	Title:     President, Secretary
      and Treasury 

	Note No. 	1
  
	Amount: 	US$570,000 
	Purchaser Name: 	Bulstrode International Inc. 
	Address: 	Bleicherweg 14, P.O. Box 2724 
		 Zurich, 8022 Switzerland 
	Telephone: 	 
    
	Facsimile: 	 
    

10

ANNEX A

NOTICE OF CONVERSION

(To be executed by the Purchaser in order to Convert the
Note)

TO:                TEXOLA
ENERGY CORPORATION

          The
undersigned hereby irrevocably elects to convert US$_______________________ of
the principal amount of the Note dated April 3, 2006, effective as of March 9,
2006 between the Company and Bulstrode International Inc., into shares of Common
Stock of the Company and Warrants, according to the conditions stated therein,
as of the Conversion Date written below. All capitalized terms used herein shall
have the meanings assigned thereto in the Note.

	Conversion Date: 	 
    
	 	 
	Applicable Conversion Price: 	US$
  
	 	 
	Amount to be converted: 	US$
  
		  
	Number of Shares of
      Common 	 
	Stock to be issued: 	 
    
	 	 
	Number of Warrants to be
      issued: 	 
    
		  
	Amount of Note unconverted:
    Principal:	US$
  
		  
	Please issue the Shares of
    	  
	Common Stock and the 	 
    
	Warrants in the following name 	  
	and to the following address: 	 
    
	 	 
	 	 
	  	  
	 	 
	Signature of the Holder: 	 
    
	 	 
	Name: 	Bulstrode International Inc. 
	 	 
	Address: 	Bleicherweg 14, P.O. Box 2724 
	  	  
	  	Zurich, 8022 Switzerland 
	 	 
	 	 
	 	 
	Phone Number: 	 
    

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]