Document:

EXHIBIT 10.9

                                 STATE OF TEXAS

                                COUNTY OF HARRIS

                                LETTER AGREEMENT

     THIS AGREEMENT, made and entered into this 17 th day of November, 2004 by
and between P5 PETROLEUM, INC., a Texas corporation whose address is 1652 Abbey,
Cedar Park, Texas 78613, hereinafter referred to as "P5", and Affiliated
Holdings, Inc. a Texas corporation whose address is 1117 Herkimer Street,
Houston, TX 77008, hereinafter referred to as "AFFILIATED". The parties hereto
agree that when accepted by AFFILIATED in the manner hereinafter indicated, this
agreement shall constitute a contract and agreement relative to certain oil,
gas, and mineral lease(s) and/or interests in the Cecilia Prospect, Hardin
County, Kentucky.

1.   OPERATOR OF THE WELLS

1.1  Affiliated  will  be  the  designated  operator  of record.  P5 will be the
designated  contract  operator  for  the  wells  to  be drilled on the captioned
prospect.

1.2  As  the  designated  contract  operator,  P5  will use its best efforts and
proceed with due diligence to drill and test, or cause to be drilled and tested,
the initial well located on the prospect to the contract depth prior to February
1, 2005, and subsequently to use its best efforts and proceed with due diligence
to  drill and test, or cause to be drilled and tested successively and prudently
three  (3)  additional  wells  located  on  the prospect, to the contract depth.
These  wells  will  be  drilled  under  continuous  drilling  operations.

1.3  Upon  reaching  contract  depth  on each well subject to this agreement, P5
will  attempt  open-hole  electric  log  surveys  from the bottom of the surface
casing  to  the  lowest  depth  practical.

1.4  If  any  well subject to this agreement on the prospect is determined to be
non-productive,  P5 will continue to be the designated contract operator for the
plugging  and  abandoning  of  the well and for any additional activities and/or
completions,  unless  otherwise  agreed  in  accordance  with provisions of this
agreement  and  the  Joint  Operating Agreement (JOA) attached hereto and made a
part  hereof.

1.5  Further,  if  any  well  subject to this agreement, drilled or caused to be
drilled  on  the prospect by P5 is determined to be productive, P5 will continue
to  be  the  designated  contract  operator  for  any  additional  activities,
completions,  fracture  stimulation  and/or  connection  to  sales  lines unless
otherwise  agreed  in accordance with provisions of this agreement and the Joint
Operating  Agreement  (JOA)  attached  hereto  and  made  a  part  hereof.

1.6  The  parties  hereto  agree and hereby express their desire that P5 have in
their  behalf  full  and  exclusive  authority,  management,  and control of all
activities  and  operations  under  this  agreement,  including  the  location,
drilling,  completing, and equipping and other operations until such time as all
four  (4)  wells  are completed or plugged and abandoned in accordance with this
agreement.

1.7  P5  shall  give Affiliated twelve (12) hours advance notice of any logging,
coring,  or  testing in order that a representative of Affiliated may be present
for  such operations, if it so desires.  Affiliated acknowledges and agrees that
such  notice  is  reasonable  and sufficient in allowing it to evaluate and give
notice  to  P5  of  its  election.

1.8  P5 agrees that in conducting operations hereunder, it shall comply with all
State  and  Federal  Laws,  Rules,  and Regulations, that are applicable to such
operations.

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE>
1.9  As  stated  in  item 1.2 above, P5 is the designated contract operator.  By
virtue  of  being  the  designated  contract operator, P5 is afforded all of the
authorities  as  assigned  to  the  operator  according  to  the Joint Operating
Agreement  (JOA)  and  more  specifically stated in the COPAS Agreement (Exhibit
"B1"  under  items  stated  in  section  III, OVERHEAD, subsection A), including
receipt  of  the  monthly  drilling  and  production  overhead  charges.

2.   ADDITIONAL ACTIVITIES

2.1  After  P5 has commenced drilling or has caused the commencement of drilling
of  any  well  subject to this agreement and the well has reached contract depth
and  has  run  the  open hole electric logs, P5 and Affiliated agree that within
twenty-four  (24)  hours  of  receipt of P5's notice that the contract depth has
been reached and the electrical logs surveys run, if Affiliated elects to do any
additional  testing, additional electrical log surveys, re-working, deepening or
plugging  back, sidetracking, or any other services (collectively referred to as
"additional  activities")  and that said additional activities shall be paid for
by  Affiliated  and  the  other  working  interest  owners participating in this
prospect.

2.2  Affiliated  acknowledges  and  agrees  that  such  notice is reasonable and
sufficient  in  allowing it to evaluate and give notice to P5 of its election to
conduct  additional  activities  or  to  decide  to  complete  the initial well.

2.3  In  the  event  that  Affiliated  shall  elect  to  conduct such additional
activities,  Affiliated  shall pay the cost of such additional activities within
five  (5)  days  of  its  receipt  of  P5's  advance billing for such additional
activities,  in  proportion  to  their  interest.

2.4  The  costs  of  additional activities and completion costs other than those
reflected  above  may  be  billed  by P5 in advance in accordance with the Joint
Operating  Agreement  (JOA)  and COPAS which are attached hereto and made a part
hereof  as  Exhibit  "B"  and  Exhibit  "B-1"  respectively.

3.   CONTRACT DEPTH   The test wells will be drilled to a depth of approximately
1,500  feet  below  the  surface or to a depth sufficient to test the New Albany
Shale  formation  whichever  is  the  lesser,  unless  heaving shale, high water
pressure,  chert,  a  cavernous condition, igneous rock, salt, granite, or other
practically  impenetrable  substance,  or any other hole conditions which render
further  drilling  impractical  in  the  sole  judgment  of  the  operator,  are
encountered  at  a  lesser  depth.

4.   COSTS FOR INITIAL FOUR (4) WELLS

4.1  P5  will  deliver  the  project  to  Affiliated  for  the  consideration of
$250,000.00.  This  prospect  fee  will  be  paid  as to the following schedule:
$100,000.00  three  (3)  days after the signing of this agreement; $75,000.00 no
later  than seven (7) calendar days after receiving notice of P5 contracting for
drilling  operations  of the first group of six (6) wells; and the final payment
of $75,000.00 no later than seven (7) calendar days after receiving notice of P5
contracting  for  drilling  operations of the first group of ten (10) wells.  If
$100,000  is  not  in P5's bank account or escrow account by 5PM CST on November
22, 2004, this agreement is null and void.  P5 will drill, complete and test, or
cause  to  be  drilled,  completed  and  tested, the initial four (4) wells on a
TURNKEY  BASIS for the total sum of $480,000.00  Affiliated will pay its TURNKEY
CONSIDERATION  of  $480,000 and the initial $100,000.00  portion of the prospect
fee  for  100% working interest to P5 as follows: Affiliated will deposit into a
mutually  agreed  upon  escrow  account  $  100,000.00  three (3) days after the
signing  of this agreement, $ 190,000.00 upon contracting the drilling operation
for  drilling  of  the  four  (4)  initial  well  and  $290,000.00 no later than
twenty-one (21) calendar days after the signing of this agreement or on December
9,  2004.  P5  shall  provide  all  necessary  pipelines  and surface production
facilities  to  provide  a  temporary  transmission  line to the Cecilia Storage
Facility.  Affiliated shall have the right, but not the obligation, to provide a
TURNKEY  CONSIDRATION of $300,000.00 to P5 for the installation of all permanent
pipelines  and  surface  production  facilities necessary to produce the subject
wells.  Should Affiliated elect TO PROVIDE the subject funds no later than seven
(7)  calendar  days  of P5 delivering notice to Affiliated of the completion and
testing of the fourth (4th) well or ten (10) calendar days after the payment for
the  first  group  of  six  (6)  wells.  Affiliated  will

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE>
deposit  into a mutually agreed upon escrow account its TURNKEY CONSIDERATION of
$300,000.00  as  to  the  following  schedule:  $150,000 no later that seven (7)
calendar days after notification to Affiliated by P5 that Phase I (the drilling,
completion  and testing of the initial four (4) wells) has been completed or ten
(10)  calendar  days after the payment for the first group of six wells has been
made  and  $150,000  within fourteen (14) days of the first payment of $ 150,000
so  as  to  provide  funds for all permanent production facilities and gas sales
pipeline  expenses.    Should  Affiliated elect TO NOT PROVIDE the subject funds
its  right  to  participate  in  future drilling operations shall be terminated.
Should  Affiliated  elect  TO NOT PROVIDE these funds, P5 shall have the option,
but  not  the  obligation, to offer Affiliated the opportunity to participate in
future  drilling  operations  on  the  subject  leases  under  the terms of this
agreement  or  under  other  mutually  agreed  terms.

4.2  This  turnkey consideration shall cover the costs and expenses of preparing
roads,  location,  purchasing  and  setting  casing,  cement, mud and chemicals,
attempting  open hole electric logs from the bottom of the surface casing to the
lowest  depth  practical,  completing  and  fracture  stimulating  the  well,
surface  production  equipment,  pipelines,  right of way, and gas market access
costs,  and, if non productive, plugging and abandoning the wells located on the
prospect.

4.3  P5  hereby  indemnifies  and holds Affiliated harmless from and against any
and all claims or demands arising out of, or resulting from, the drilling and/or
initial  completions  of  the  four  (4)  wells  at  the  contract  depth.

5.   OPERATING AGREEMENT FOR ALL WELLS

5.1  Simultaneously  and  contemporaneously  with  the  execution to this letter
agreement,  P5  and  Affiliated  have  agreed to the terms and conditions of the
Joint  Operating  Agreement  (JOA)  attached  hereto  and  made a part hereof as
Exhibit  "B"  just  as  each  had  signed  the  operating  agreement  itself.

5.2  It  is  understood  and  agreed  that  P5,  or  its  nominee,  shall be the
designated contract operator of the jointly owned properties under the terms and
conditions  of the Joint Operating Agreement (JOA), which is attached hereto and
made  a  part  hereof  as  Exhibit  "B".

5.3  Said  Joint  Operating  Agreement (JOA) shall become effective after P5 has
drilled,  tested  and completed, or caused to be drilled, tested, and completed,
the  initial well.  P5 will continue to drill, test and complete, or cause to be
drilled,  tested,  and  completed  the remaining three (3) wells covered in this
Letter  Agreement,  and each well upon completion will, likewise, become subject
to  the Joint Operating Agreement (JOA) which is attached hereto and made a part
hereof  as  Exhibit  "B".  .

5.4  The  parties hereto consent and agree to abide by and be subject to all the
terms  of  the  Joint  Operating Agreement (JOA) attached hereto and made a part
hereof  as  Exhibit  "B".

5.5  However,  in  the  event  of  any conflict between the terms of this Letter
Agreement  and  said  Joint  Operating Agreement (JOA), the terms of this Letter
Agreement  shall  prevail.

5.6  This  Letter  Agreement  and  the  Joint Operating Agreement (JOA) attached
hereto  and  made  a  part hereof as Exhibit "B" shall be fully binding upon the
heirs,  successors  and  assignees  of  the  parties  hereto and said agreements
represent  the  full  and  complete  agreement  between  the  parties  hereto.

6.   OWNERSHIP OF WORKING INTEREST IN THE INITIAL THIRTY (30) WELLS

6.1  The  parties  hereto  with other working interest owners similarly situated
and  who  have  executed  similar  agreements  will collectively own One Hundred
percent  (100%)  of  the  working interest in any, or all, of the initial thirty
wells  in  which said parties elect to participate as per the conditions herein.
Participation  in  the  drilling  of  the  initial four (4) wells shall earn the
participants  100%  interest in no less than 1200 acres (hereinafter referred to
simply  as  the  "Said  Lease(s)"  or  the  "Subject Lease(s)"), and any related
production  equipment on said acreage, and will collectively own and receive all
of  the  income

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE>
and benefits attributed to such interest subject to the landowner and/or mineral
owners'  and  any  overriding  royalty  interests  affecting the subject leases.

6.2  It  is  specifically understood that the rights to said lease(s) covered by
this  agreement  are  burdened by royalties and overriding royalties totaling in
the  aggregate  fifteen  percent (15%) and furthermore, that the interest of the
parties hereto shall be made subject to its proportionate part of said royalties
and  overriding  royalties.

6.3  After  project  payout,  as  defined herein, P5 will earn from Affiliated a
working interest in an amount equal to twenty-five percent (25%) of the interest
assigned  to  Affiliated  under  the  terms  of this agreement in said leases as
defined  herein.  Specifically  Affiliated  shall  own  an  AFTER project payout
working  interest  of  seventy-five  percent  (75%) of its BEFORE project payout
working  interest.

6.4  If, in aggregate, those wells in which Affiliated elects to participate, as
per  the  terms  herein,  are  commercially  productive BUT do not reach project
payout,  as  defined  herein, prior to being plugged and abandoned, then P5 WILL
NOT  earn  its  twenty-five  percent  (25%)  back-in  interest  in  said leases.

6.5  The  percentage  allocation  of  the  working  interest and the net revenue
interest  in  any,  or  all,  of the first thirty (30) wells in which Affiliated
elects  to  participate  as  per  terms  herein  shall  be:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                          BEFORE PAYOUT WORKING INTEREST   BEFORE PAYOUT NET REVENUE INTEREST
                                        (%)                                (%)
----------------------------------------------------------------------------------------------
<S>                       <C>                              <C>
Affiliated                                            100                                   85
----------------------------------------------------------------------------------------------
Landowners + ORRI Owners                                0                                   15
----------------------------------------------------------------------------------------------
Total                                                 100                                  100
----------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------
                          AFTER PAYOUT WORKING INTEREST    AFTER PAYOUT NET REVENUE INTEREST
                                        (%)                                (%)
----------------------------------------------------------------------------------------------
Affiliated                                             75                                63.75
----------------------------------------------------------------------------------------------
P5                                                     25                                21.25
----------------------------------------------------------------------------------------------
Landowners + ORRI Owners                                0                                   15
----------------------------------------------------------------------------------------------
Total                                                 100                                  100
----------------------------------------------------------------------------------------------
</TABLE>

7.   PROJECT PAYOUT DEFINED   Payout  shall  be defined as that point in time at
which the gross revenues (Gross revenues are defined as revenue from the sale of
oil  and  gas  production  less royalties, overriding royalties, lease operating
expenses,  (as  defined  in  the  JOA)  and  production taxes.) from oil and gas
produced  from  any,  and  all  of the first thirty wells drilled on the subject
acreage  in  which Affiliated has elected to participate as per the terms herein
equals the total monies tended to P5 by Affiliated.  These moneys shall included
all  "Turnkey"  amounts  expended  in the drilling, completing and connecting to
sales  line  of  those  wells  in which Affiliated elects to participate.  These
moneys  shall  also  include  activities  costs,  field  facility  costs and all
prospect fees paid by Affiliated to P5 prior to Affiliated election to terminate
participation  in  the  drilling  program.   More  specifically,  as  Affiliated
expends  additional  monies for the drilling, completing and connecting to sales
line of any wells up to and including Well 30 the project payout amount shall be
the  cumulative  amount  of  these  monies.

8.   OWNERSHIP OF WORKING INTEREST IN THE SUBSEQUENT WELLS

8.1  Subsequent to the drilling of the initial four (4) wells, P5 will drill and
complete  six (6) wells.  Subsequent to the drilling and completion of these six
(6)  wells,  P5 will drill twenty (20) wells in two (2) groups of ten (10) wells
each.  This  aggregate  of  thirty  (30) wells will be drilled on said leases as
defined  herein.

8.2  At  a  time  of Affiliated's choosing, but no later than seven (7) calendar
days  after  receiving  notice from P5 of the contracting of drilling operations
for  the  subject  six  (6)  well  group or on February 1, 2005, Affiliated will
tender  to P5 a TURNKEY CONSIDERATION of $720,000.00 in return for which P5 will
drill  and  complete a group of six (6) wells at mutually agreeable locations on
the  Subject  Leases,  the

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE>
Additional  Leasehold,  and Subsequently Purchased Leases or some combination of
same.  Affiliated  will also pay to P5 a sum of $75,000.00 as the second payment
of  the  prospect  fee.  Affiliated  will  pay  its  TURNKEY  CONSIDERATION  of
$795,000.00  for 100% working interest to P5 as follows: Affiliated will deposit
into a mutually agreed upon escrow account $397,500.00 within seven (7) calendar
days  of  P5 delivering notice of the contracting of drilling operations for the
subject  six  (6) wells or on February 1, 2005.  A second payment of $397,500.00
will  be  deposited  by  Affiliated  into  a mutually agreed upon escrow account
twenty-one (21) calendar days after the initial payment for this second group of
six  (6) wells. Should Affiliated elect TO NOT PROVIDE the subject funds for the
drilling  and completing of this group of six (6) wells its right to participate
in  future  drilling  operations  shall  be terminated. After the completion and
testing  of  this  group of six (6) wells, P5 will initiate efforts to drill the
next  group  of  ten  (10)  wells.  For the drilling of this first ten (10) well
group  Affiliated  will tender to P5 a TURNKEY CONSIDERATION of $1,200,000.00 in
return  for  which P5 will drill and complete this first group of ten (10) wells
at  mutually  agreeable locations on the Subject Lease, the Additional Leasehold
and  Subsequently  Purchased  Leases  or some combination of same.  At this time
Affiliated  will  also  tender  the  final  $75,000.00  of  the  prospect  fee.
Affiliated will pay its TURNKEY CONSIDERATION of $ 1,275,000.00 for 100% working
interest  to P5 as follows:  Affiliated will deposit into a mutually agreed upon
escrow  account  $637,500.00 within  seven (7) calendar days of P5 giving notice
of the contracting of drilling operations of this first group of ten (10) wells.
A  second  payment of $ 637,500 shall be deposited by Affiliated into a mutually
agreed upon escrow account no later than twenty-one (21) calendar days after the
initial  payment for this first group of ten (10) wells. Should Affiliated elect
TO  NOT  PROVIDE the subject funds for the drilling and completing of this first
group  of  ten (10) wells its right to participate in future drilling operations
shall  be  terminated.  After  completion and testing of this first group of ten
(10) wells P5 will initiate efforts to drill the second group of ten (10) wells.
For  the  drilling of this second group of ten(10) wells, Affiliated will tender
to P5 a TURNKEY CONSIDERATION of $1,200,000.00 in return for which P5 will drill
and complete this second group of ten (10) wells at mutually agreeable locations
on the Subject Lease, the Additional Leasehold and Subsequently Purchased Leases
or  some  combination of same.  Affiliated will pay its TURNKEY CONSIDERATION of
$1,200,000.00  for  100%  working  interest  to  P5  as follows: Affiliated will
deposit  into a mutually agreed upon escrow account $600,000.00 within seven (7)
calendar  days  of P5 giving notice of the contracting of drilling operations of
this  second  group  of  ten  (10) wells.  A second payment of $600,000.00 shall
deposited  by  Affiliated  into  a  mutually agreed escrow account no later than
twenty-one  (21))  calendar days after the initial payment for this second group
of ten (10) wells.  Should Affiliated elect TO NOT PROVIDE the subject funds for
the  drilling and completing of this second group of ten (10) wells its right to
participate  in  future  drilling  operations  shall  be  terminated.

8.3  Should  Affiliated  elect to participate in the drilling of all thirty (30)
wells  as  described  herein,  P5  will immediately assign a 75% interest in the
balance  of  the  +/- 7,000 acre leasehold not assigned pursuant to Section 9 of
this  agreement  as  shown  in  Exhibit  "A".  P5 shall retain the remaining 25%
interest  in the subject leasehold.  All future drilling and completion activity
of  the  subject leasehold will be conducted as specified in the Joint Operating
Agreement  (Exhibit  "B").  In  such  operations,  as  per  the  Joint Operating
Agreement, Affiliated will obligated for a 75% working interest position with P5
obligated for a 25% working interest position.  All operations will be conducted
on  an  "at  cost"  basis  as  defined  in  the  Joint  Operating  Agreement.

8.4  It  is  specifically understood that the rights to said lease(s) covered by
this  agreement are burdened by royalties and overriding royalties that vary and
furthermore,  that  the  interest of the parties hereto shall be made subject to
its  proportionate  part of said royalties and overriding royalties, however the
total of said royalties and overriding royalties shall be fifteen percent (15%).

9.   INTEREST CONVEYED   Upon  payment  of  $290,000.00  to  P5,  subject to the
various  terms  hereof,  including  but  not  limited to a 25%  working interest
re-assignment to P5 after project payout as defined herein, P5 shall assign 100%
working interest in no less than 1200 acres of the subject leasehold as shown in
Exhibit "A-1".  More specifically, Affiliated shall be immediately assigned 100%
working  interest  in  no less then 1200 acres upon P5's receipt of $290,000.00.
At  that  point  in  time  when  project  payout,  as defined herein, is reached
Affiliated  shall  immediately assign to P5 a 25% working interest in these same
1200 acres.  Should Affiliated participate in the drilling and completion of the
first  thirty (30) wells on the subject leases P5 shall immediately assign a 75%
working  interest  to  Affiliated  in

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE>
the  balance  of the leasehold as shown on Exhibit "A-1".  P5 shall retain a 25%
working  interest  in the balance of the leasehold. All assignments to Affilated
are  on  the  basis  of  an  85%  net  revenue  interest.

10.  SUBSEQUENTLY PURCHASED LEASES  P5  agrees  to  use  it's  best  efforts  to
acquire,  or  cause  to  be acquired, sixteen thousand (16,000) additional acres
(hereinafter  referred  to simply as "Subsequently Purchased Leases") within the
AREA  OF MUTUAL INTEREST, as shown on Exhibit "A",  Said lease acquisition to be
made  from funds provided by Affiliated and P5 and placed into an escrow account
subject  to  a  mutually  acceptable  escrow  agreement.

10.1 P5 shall  open  an  escrow account subject to a mutually acceptable  escrow
agreement,  whereupon  P5  shall  issue a notice of an assessment of $30/acre to
Affiliated,  the  proceeds  of  which shall be placed into the escrow account to
abstract,  purchase,  and  maintain  the  Subsequently  Purchased Leases.   This
assessment  shall  represent  an  estimate  of 75% of the total anticipated cost
incurred in the additional acreage acquisition.  P5 shall also place into escrow
an assessment of $10/acre. This assessment shall represent an estimate of 25% of
the  total  anticipated  cost  incurred  in  the additional acreage acquisition.
Should  actual  acreage  cost  be  less  than  the total assessment each parties
proportional  share  shall be immediately returned to each party.  Total acreage
acquisition  costs  shall  represent only those monies paid to lessors and third
parties  providing  services  in  the  acquisition of said leases.  P5 shall not
receive  any  of  the monies expended in the effort to acquire additional leases
within  the  area  of mutual interest.  More specifically,  P5 will deliver said
leases  at  a  net  revenue interest equal to the base royalty of any individual
leasehold unless otherwise burdened by overriding royalties beyond P5's control.
Neither  P5,  nor  its principal owners, shall be assigned an overriding royalty
interest  in  the  subject  leases.

10.2 Affiliated  shall  deposit  a  sufficient  amount  into said escrow account
within  sixty  (60)  days  of  receipt  of  the notice of assessment.  The total
assessment shall be for mutually agreed leases subject to Affiliated acquiring a
seventy-five percent (75%) working interest and P5 acquiring a twenty-five (25%)
working  interest.

10.3 At  such  time  as any of the Subsequently Purchased Leases are included in
acreage assigned to the Working Interest owners the Net Revenue Interest in said
Subsequently  Purchased  Leases  delivered  to  the  one  hundred percent (100%)
working  interest  shall  be burdened by royalties and overriding royalties that
may  vary  and  furthermore,  the  interest  of the parties hereto shall be made
subject  to  its  proportionate part of said royalties and overriding royalties.

11.  WARRANTY  OF TITLE.  P5's assignment to Affiliated will be without recourse
or  warranty  of  title,  either  expressed  or  implied.

12.  INSURANCE  COVERAGE  P5  will  maintain, or cause to be maintained, for the
benefit  of  all  parties  hereof,  insurance  coverage.

13.  NOTICE  PROVISIONS

13.1 Any  notice  to  be  given  between  P5,  Affiliated  and the other working
interest  owners  shall  be  conclusively  taken  as  sufficient  when  given by
telephone  (leaving  messages  on  an answering machine is insufficient for this
purpose)  and  confirmed  either  by  facsimile  or  overnight  courier delivery
prepaid,  and  addressed  to  the  proper  party.

13.2 The  parties  hereto  agree  that  such notice may be made to the following
names,  addresses  and  telephone  numbers:

<TABLE>
<CAPTION>
<S>                                      <C>
-----------------------  --------------  ----------------------  ---------------
P5 Petroleum, Inc.                       AFFILIATED
-----------------------  --------------  ----------------------  ---------------
1652 Abbey Lane                          1117 Herkimer Street
-----------------------  --------------  ----------------------  ---------------
Cedar Park, TX 78613                     Houston, TX  77008
-----------------------  --------------  ----------------------  ---------------
Tel. No. 1-512-528-1191                  Tel. No. 713-802-2944
-----------------------  --------------  ----------------------  ---------------
Fax No.                                  Fax No.  713-868-0085
-----------------------  --------------  ----------------------  ---------------
</TABLE>

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE>
14.  ENTIRE  UNDERSTANDING     This  Agreement contains the entire understanding
between  Buyer  and  Seller and supersedes all previous agreements regarding the
participation  in  this  prospect,  whether  oral or in writing.  This Agreement
cannot  be  modified  or  terminated except in accordance with its terms or by a
writing  signed  by  the  parties.

14.  CHOICE  OF  LAW  The  terms  and  provisions  of  this  Agreement  shall be
construed  in  accordance  with  the  laws  of  Texas.

15.  SEVERABILITY   If any of the terms or conditions of this agreement is found
to  be  illegal  or  unconscionable  by  a  court of competent jurisdiction, the
remaining  terms  and  conditions of this Agreement shall stay in full force and
effect.

16.  TERM  OF  THIS AGREEMENT   This agreement shall be binding upon the parties
hereof,  their  heirs, successors and/or assigns, and shall remain in full force
and  effect  for as long as activities and operations are being conducted on any
well  completed  for  production  hereunder,  unless this agreement is otherwise
terminated  by  written  agreement  of  the  parties  hereto.

IN  WITNESS HEREOF, the parties hereto have caused this Agreement to be executed
by  their  duly  authorized  officers  effective  the day, month, and year first
written  above.

Witnesses:

By:                                   BY:
   ---------------------------           ---------------------------------
                                         Geir Rorstad, VP Business Development
                                         P5 Petroleum, Inc.

By:                                   BY:
   ---------------------------           ---------------------------------

                                         Kevan Casey, President
                                         Affiliated Holdings, Inc.

          1652 ABBEY LN. CEDAR PARK, TX 78613, TELEPHONE: 512-528-1191,
                           E-MAIL: P5@P5PETROLEUM.COM
<PAGE><PAGE>

Exhibit 4.1  Designation of Preferences

                                                              Filed # C15007-04
                                                                August 27, 2004

Certificate of Designation
(Pursuant to NRS 78.1955)

1. Name of Corporation: ERF Wireless, Inc.

2. By resolution of the board of directors pursuant to a provision in the
articles of incorporation, this certificate establishes the following regarding
the voting powers, designations, preferences, limitations, restrictions and
relative rights of the following class or series of stock:

SERIES A CONVERTIBLE PREFERRED STOCK $.001 PAR VALUE (the "Series A"),
consisting of 2,500,000 (two million five hundred thousand) shares.

The Series A shall be senior to all other shares of the corporation's preferred
stock. Each share of Series A shall have 20 votes on all matters in which the
common stockholders and preferred stockholders vote together. Each share of
Series A may convert into 18.676347 shares of common stock at the sole option of
the holder following 65 day written notice of conversion to the corporation and
shall not be subject to any adjustment by any split (forward or reverse) of the
corporation's common stock. The Series A shall have a liquidation preference of
$.58 per share. The Series A voting as a class shall have the right to elect on
director of the corporation.

4. Effective date of filing (optional):

5. Officer Signature (required) /S/ RICHARD O. WEED
                                -------------------

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