Document:

Exhibit 10.1

    
      

    

    Exhibit
      - Georgia Exploraiton, Form 8-K

    

    
      	10.1	
              Purchase
                and Sale Agreement dated January 30,
                2007

            

    

    

    Orbit
      Energy, LLC.

    4801
      Woodway Drive, Suite 305W

    Houston
      Texas, 77056

    

    January
      30, 2007

    

    WHARTON
      RESOURCES LP and 

    GEORGIA
      EXPLORATION, INC.

    519
      Heights Blvd.

    Houston,
      Texas 77007

    

    
      
        Re:         
          Purchase
          and Sale Agreement - Mount Branch Prospect, Elk County,
          Kansas

      

    

    

    Gentlemen:

     

    This
      letter agreement, when fully executed by the parties named herein, shall
      constitute a “Purchase and Sale Agreement” between Orbit Energy, LLC., a Nevada
      Limited Liability Company (“Seller” or “Orbit”) and Wharton Resources LP, a
      Texas Limited Partnership (“Purchaser” or “Wharton”), in regard to the
      properties identified below. The Purchaser is wholly owned by Georgia
      Exploration, Inc., a Nevada corporation (“Georgia”). The Purchaser, Seller and
      Georgia are hereinafter collectively referred to as the “parties”. The effective
      date for this Purchase and Sale Agreement is January 30, 2007 (the “Effective
      Date”). 

    

    This
      letter agreement, when fully executed by the parties, shall replace the
      agreement entitled “Mound Branch Prospect Development Agreement Elk County,
      Kansas” entered into between Seller and Purchaser and dated effective September
      1, 2006 as amended by First Amendment agreement also dated September 1, 2006
      (collectively the “Development Agreement”). 

    

    ARTICLE
      I. PROPERTY SUBJECT TO THIS AGREEMENT

    

    Seller
      is
      the holder of interests in certain oil and gas leases in Elk County, Kansas
      totaling approximately 8,800 acres gross (the “Property”), which leases are more
      particularly described in Schedule “A” hereto (the “Leases”). For all oil and
      gas Leases other than those lease portions associated with the existing drilled
      wells (that are identified in Schedule “B” hereto), Purchaser is purchasing and
      Seller is selling a 100.0% working interest and 74.0% net revenue interest
      (after Lessor and overriding royalty interests of 26.0%).

    

    Seller
      also holds a working interest and net revenue interest in nine (9) existing
      well
      bores that have been drilled on the Property (the “Wells”), as further described
      and listed in Schedule “B”. The applicable working interests and net revenue
      interests being acquired by Purchaser for the Wells are identified in Schedule
      “B”. Seller holds ratable working interests in facilities and equipment on the
      Leases (collectively the “Equipment”), as identified and listed in Schedule “C”,
      together with right of ways and servitudes needed to produce oil and/or gas
      therefrom (collectively the “Servitudes”). 

    
      
        
        

      

      
        1/16

        
          

        

      

      
        
        

      

    

    Any
      property, or interest therein, acquired, whether by lease or otherwise, by
      the
      Seller, its affiliates or principals, at any time prior to or after the
      effectiveness of this letter agreement, that is contiguous to the Property
      (as
      defined in the “Development Agreement), or that is within a distance of five (5)
      miles from the outer boundary of the Property as may be expanded as contiguous
      acreage is acquired (the “Area of Mutual Interest” or “AMI”), shall form part of
      the Property and shall be subject to this Agreement. Seller agrees to assign
      Seller’s interest in any such property within the AMI to the Purchaser and
      Purchaser agrees to reimburse Seller for Sellers reasonable costs and expenses
      associated with the acquisition and maintenance of such additional
      property.

    

    ARTICLE
      II. PURCHASE AND SALE

    

    Seller
      hereby agrees to sell and Purchaser hereby agrees to purchase all of Sellers
      working interests and associated net revenue interests in the Leases, Wells
      and
      Equipment, subject to and on the terms of this letter agreement. This letter
      agreement further sets forth the terms, conditions and reservations which will
      control and dictate the provisions to be included in the formal conveyance
      from
      Seller to Purchaser, and to express and clarify the interest of the parties
      hereto.

    

    ARTICLE
      III. CONSIDERATION 

    

    Purchase
      Price 

    

    At
      final
      closing (the “Closing”) and against delivery of a recordable Assignment by the
      Seller to the Purchaser, Georgia shall pay to Seller the following:

    

    
      	
              (1)

            	
              A
                total $6,800,000 (the “Purchase Price”) for Sellers interests in the
                Leases, Wells and Equipment, 

            

    

    

    
      	 	
              less
                the following: 

            

    

    

    
      	
              (2)

            	
              The
                sum of $760,947, which sum represents the amounts advanced to or
                paid on
                behalf of Orbit by Wharton associated with additional testing and
                evaluations of oil and gas interests in the AMI, and for the payment
                of
                lease renewals, minimum royalties, and other associated costs of
                drilling
                and testing, or similar payment obligations(s) under the Development
                Agreement associated with or arising from any lease acreage covered
                by the
                AMI, calculated from the effective date of the Development Agreement
                through the Effective Date hereof, as further identified in Schedule
“D”
                hereto.

            

    

    

    Payment
      of Purchase Price

    

    The
      Purchase Price will be paid by Georgia to the Seller on Closing as
      follows:

    

    
      	
              (1)

            	
              The
                sum of $4,800,000 less amounts paid by Purchaser to Seller or on
                Seller’s
                behalf of $760,947 will be paid on account of the purchase of the
                Leases,
                Wells and Equipment, by the issuance to the Seller of 4,039,053 shares
                in
                the common stock of Georgia (the “Shares”) at a deemed price of $1.00 per
                share.

            

    

    

    
      	
              (2)

            	
              The
                sum of $2,000,000 will be paid by Purchaser to the Seller, by the
                issuance
                to the Seller of a convertible unsecured debenture of Georgia (the
                “Debenture”) in the principal amount of $2,000,000, bearing simple
                interest at the rate of 10% per annum payable quarterly in arrears.
                The
                principal amount of the Debenture that remains outstanding and unpaid
                may
                be converted by the Seller in whole or in part to acquire shares
                in the
                common stock of Georgia (the “Debenture Shares”) at the rate of $1.00 per
                Debenture Share, at any time after twelve (12) months from the Effective
                Date and before the expiry of thirty-six (36) months from the date
                of the
                Effective Date (the “Due Date”). After the Due Date, all unpaid interest
                and principal on the Debenture become due on demand. The Debenture
                will
                provide for customary adjustments to the conversion price and/or
                the
                number of shares issuable on conversion following the occurrence
                of
                certain events.

            

    

    
      
        
        

      

      
        2/16

        
          

        

      

      
        
        

      

    

    
      	
              (3)

            	
              Georgia
                or Wharton may pay the principal and interest amount outstanding
                under the
                Debenture at any time after twelve (12) months from the Effective
                Date and
                before the Due Date by providing notice to the Seller and Seller
                shall
                thereafter have five business days to provide notice to Georgia of
                Seller’s desire to convert the Debenture into Debenture Shares, in lieu
                of
                payment by Georgia of the Debenture balance outstanding. Upon payment
                to
                the Seller of the principal and interest amount outstanding by Georgia
                or
                Wharton pursuant to this paragraph, the Debenture and all obligations
                thereunder will terminate. In addition, in the event of a change
                of
                control of Georgia after twelve (12) months, the Seller may accelerate
                the
                Due Date to the date of the change of control. For the purposes hereof
                a
                change of control means the acquisition by any person, or group of
                persons
                acting together (determined reasonably), of voting control over 50%
                or
                greater of the issued and outstanding shares in the capital of Georgia,
                where such person or group of persons did not prior to the date hereof
                hold such voting control.

            

    

    

    Any
      transfer of ownership of the Shares, the Debenture or the Debenture Shares
      will
      be subject to the approval of Georgia, and will require proper evidence of
      compliance with applicable securities laws.

    

    The
      Shares and the Debenture will be issued pursuant to the exemption from
      registration provided by Rule 506 of Regulation D under the U.S. Securities
      Act
      of 1933, and the Seller hereby confirms that the offer and sale of the Shares
      and the Debenture meets the conditions of such rule and that the Seller (or
      each
      beneficial owner of the Seller) is an “Accredited Investor” as defined therein.
      Seller understands that the Shares, the Debenture, and the Debenture Shares
      will
      be restricted securities under Rule 144, and the certificates representing
      such
      securities will bear a restrictive legend in such form as Georgia may determine.
      Orbit further acknowledges and agrees that:

    

    
      	 	
              (a)

            	
              it
                understands and acknowledges that the Shares, Debentures and Debenture
                Shares have not been and will not be registered under the 1933 Act
                or the
                securities laws of any state of the United
                States;

            

    

    

    
      	 	
              (b)

            	
              it
                (and each of its beneficial owners) has had the opportunity to obtain
                independent tax and investment advice respecting entering into this
                letter
                agreement and completing the transactions contemplated
                hereby;

            

    

    

    
      	 	
              (c)

            	
              it
                has had access to such information regarding Georgia as it has considered
                necessary in connection with its investment decision to acquire the
                Shares
                and the Debentures;

            

    

    

    
      	 	
              (d)

            	
              it
                has such knowledge and experience in financial and business matters
                as to
                be capable of evaluating the merits and risks of its acquisition
                of the
                Shares and the Debentures, and it is able to bear the economic risk
                of,
                and withstand a complete loss of, its entire investment in such
                securities;

            

    

    
      
        
        

      

      
        3/16

        
          

        

      

      
        
        

      

    

    Escrow

    

    A
      total
      of 4,093,053 of the Shares (the “Escrow Shares”) will be placed in escrow with a
      law firm or escrow agent agreeable to both Georgia and Seller, and held subject
      to an escrow agreement. The escrow agreement will provide for the release of
      the
      Escrow Shares only against delivery to the escrow agent of a fair market value
      appraisal and economic valuation, prepared by an independent third party
      mutually agreed by Georgia and Seller, of the Wells, Leases and Equipment,
      confirming the value of the Sellers interest therein as being no less than
      the
      Purchase Price of $6,800,000. To the extent such valuation is less than
      $6,800,000, the number of Escrow Shares released to the Seller will be pro-rated
      accordingly and the balance cancelled. The Seller agrees to place in escrow,
      concurrently with the deposit of the Escrow Shares, a duly executed stock power
      of attorney with signature guaranteed in respect of the cancellation of the
      Escrow Shares. For the purposes of this paragraph, the valuation must be
      prepared and delivered to escrow agent within twelve (12) months of the
      effective date of this letter agreement. Any Escrow Shares in escrow after
      twelve (12) months of the effective date of this letter agreement shall be
      cancelled. 

    

    In
      the
      event of any dispute, the escrow agent will continue to hold the shares pending
      an agreement between the parties or an order of the court, in either case
      directing the escrow agent as to the further handling of the shares, provided
      such direction is not inconsistent with this letter agreement. Georgia is
      responsible for all costs and expenses associated with establishing and
      maintaining the escrow. Seller and Purchaser agree to enter into the escrow
      agreement with the escrow agent on such additional terms and conditions as
      required by the escrow agent.

     

    ARTICLE
      IV - ASSIGNMENT

    

    At
      Closing, Seller shall deliver an executed, recordable previously approved
      Assignment of Interest in favor of Purchaser conveying all of Seller’s working
      interest and associated net revenue interest in the Leases, Wells, and
      Equipment. Such Assignment shall specify that the working interest conveyed
      is
      delivered with a net revenue yield, consistent with those identified in the
      attached Schedules. 

    

    ARTICLE
      V. REPRESENTATIONS, WARRANTIES AND COVENANTS OF ORBIT

    

    Orbit
      hereby represents, warrants and covenants to Purchaser and Georgia the following
      and acknowledges that Purchaser and Georgia are relying upon such
      representations and warranties in connection with entering into this letter
      agreement:

    

    
      	 	
              (a)

            	
              Orbit
                has the full corporate power, capacity and authority to enter into
                this
                letter agreement and to execute, deliver and perform its obligations
                under
                this letter agreement; 

            

    

    

    
      	 	
              (b)

            	
              there
                are no claims, actions, suits, judgments, investigations or proceedings
                of
                any kind outstanding, pending or to the best knowledge of Orbit,
                threatened against or affecting Orbit or its respective properties
                and
                assets;

            

    

    

    
      	 	
              (c)

            	
              other
                than pursuant to this letter agreement, no person has any agreement,
                option or understanding or any right or privilege capable of becoming
                an
                agreement or option for the purchase from Orbit of the Leases, Wells
                or
                Equipment;

            

    

    

    
      	 	
              (d)

            	
              there
                is no bankruptcy, liquidation, winding-up or other similar proceeding
                pending or in progress or, to the knowledge of Orbit, threatened
                against
                Orbit;

            

    

    

    
      	 	
              (e)

            	
              Orbit
                and its businesses and operations are in substantial compliance with
                all
                applicable environmental laws and environmental permits applicable
                to the
                operations of Orbit in the AMI; and Orbit has obtained all environmental
                permits that are required to carry on operations as previously and
                currently carried out in the AMI by Orbit under all applicable
                environmental laws; 

            

    

    
      
        
        

      

      
        4/16

        
          

        

      

      
        
        

      

    

    
      	 	
              (f)

            	
              to
                the best knowledge of Orbit, there are no spills, releases, deposits
                or
                discharges of hazardous or toxic substances, contaminants or wastes
                into
                the earth, air or into any body of water or any municipal or other
                sewer
                or drain water systems affecting the AMI that may contravene applicable
                environmental laws or laws applicable to oil and gas extraction,
                that have
                not been remedied;

            

    

    

    
      	 	
              (g)

            	
              Orbit
                has good and marketable title to their assets and properties free
                and
                clear of all encumbrances of any kind whatsoever;
                

            

    

    

    
      	 	
              (h)

            	
              Orbit
                has made available to Wharton all material information, including
                financial, operational and other information, in respect of the oil
                and
                gas resource or exploration properties and assets and all such information
                as made available to Wharton is true and correct in all material
                respects
                and no material fact or facts have been omitted therefrom which would
                make
                such information misleading; 

            

    

    

    
      	 	
              (i)

            	
              Orbit
                has had the opportunity to obtain independent legal advice with respect
                to
                this letter agreement and related agreements, documents and transactions,
                and hereby confirms that it is in no way relying on the legal advisors
                of
                Georgia or Wharton, and hereby confirms that no legal advice was
                provided
                to Orbit by such legal advisors;
                and

            

    

    

    
      	 	
              (j)

            	
              Orbit
                will hold and will cause its directors, officers, employees, agents,
                advisors and controlling persons to hold any information respecting
                the
                AMI or the operations thereon which is non-public in confidence,
                and to
                take steps to ensure its directors, officers, employees, agents and
                advisors comply with applicable securities laws respecting disclosure
                of
                information.

            

    

    

    ARTICLE
      VI. JOINT OPERATING AGREEMENT

    

    At
      or
      prior to the Closing, Wharton and Orbit agree to enter into a Joint Operating
      Agreement (“JOA”) between Orbit and Wharton in such form as is mutually
      agreeable to both parties, with terms, conditions and rates consistent with
      those customary in the oil and gas industry in the United States. Orbit, as
      Operator under the JOA, will act prudently; maintain insurance to cover all
      its
      activities and with limits customary in the U.S., including naming Wharton
      and
      Georgia as Additional Insureds. Orbit will exercise its fiduciary duties and
      responsibilities as operator, and act in and conduct business in a manner that
      is of the best interest of the Purchaser. 

    

    Orbit
      shall indemnify Wharton and its representatives, officers, directors, agents
      and
      employees harmless from any and all expense, payment, loss or damages incurred
      by such persons as a direct or indirect result of third party claims, liens
      and
      demands arising out of Orbit’s operations in the AMI.

    

    ARTICLE
      VII. FILES AND TITLE DATA

    

    All
      files, documents and records of every nature relative to the Leases, Wells
      and
      Equipment identified on Schedules “A”, “B” and “C”, as well as all work and
      expenditures incurred by or on behalf of the Seller in the AMI, and that are
      in
      the possession of Seller, or to which the Seller has a right of possession,
      shall become the property of Purchaser immediately following closing of this
      Purchase and Sale Agreement. Purchaser and Seller may agree that the files
      associated to the properties be held by Orbit, as the operator under the JOA,
      provided that Purchaser and Georgia shall have unrestricted access to such
      files, documents and records during business hours on 24 hours notice to Seller.
      

    
      
        
        

      

      
        5/16

        
          

        

      

      
        
        

      

    

    Seller
      warrants that it holds its interests in the Leases, Wells and Equipment free
      and
      clear of any liens, claims or encumbrances, other than as disclosed in writing
      to the Purchaser. Purchaser will be allowed full access to all files and title
      data prior to Closing as necessary to review title to the property subject
      to
      the Leases, and title to the Equipment. Purchaser may delay Closing for up
      to 30
      days to correct title defects if any are found.

     

    ARTICLE
      VIII. CLOSING

    

    The
      Closing contemplated herein shall occur within 15 days of the Effective Date
      of
      this letter agreement, unless Purchaser requests delay due to title defects
      identified during the period prior to Closing. On Closing, the Purchaser and
      Georgia will deliver the Purchase Price to the Seller, and Seller will deliver
      to Purchaser the following:

    

    
      	
              1.

            	
              An
                Assignment Agreement in recordable form assigning all of the Sellers
                interests in the Leases, Equipment and Wells to the
                Purchaser.

            

    

    

    
      	
              2.

            	
              A
                form of JOA executed on behalf of Orbit and in such form as has been
                approved by Wharton.

            

    

    

    
      	
              3.

            	
              A
                Stock Power of Attorney duly executed by an authorized signatory
                on behalf
                of Seller, with the signature guaranteed by a bank, trust company
                or
                brokerage firm, along with a corporate resolution authorizing the
                signature of such authorized signatory on behalf of the
                Seller.

            

    

    

    
      	
              4.

            	
              A
                corporate resolution of Orbit confirming its authority to enter into
                this
                letter agreement and complete the transactions contemplated herein.
                

            

    

    

    
      	
              5.

            	
              A
                form of escrow agreement executed on behalf of Orbit and in such
                form as
                has been approved by Wharton and the escrow
                agent.

            

    

    

    On
      closing, the Purchaser shall deliver to Seller the following:

     

    
      	
              6.

            	
              The
                Debenture.

            

    

    

    
      	
              7.

            	
              A
                certificate representing the Shares other than the Escrow
                Shares.

            

    

    

    
      	
              8.

            	
              A
                certificate representing the Escrow Shares, provided that this delivery
                obligation will be deemed satisfied upon the Purchaser delivering
                such
                certificate to the escrow agent. 

            

    

    

    
      	
              9.

            	
              A
                corporate resolution of Georgia confirming its authority to enter
                into the
                letter agreement and complete the transaction contemplated
                herein.

            

    

    

    
      	
              10.

            	
              A
                resolution of Wharton confirming the authority to enter into this
                letter
                agreement and complete the transactions contemplated herein.
                

            

    

    
      
        
        

      

      
        6/16

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX. MISCELLANEOUS

    

    
      	
              A.

            	
              Notices

            

    

    

    All
      Notices desired or required as a result of the purpose of this Agreement may
      be
      given by U.S. Mail to the addresses of the parties hereto as shown below or
      by
      facsimile at the number shown hereon. 

    

    Orbit
      Energy, LLC

    Attn:
      Mr.
      Greg A. Thompson

    4801
      Woodway Drive, Suite 305W

    Houston,
      Texas 77056

    Telephone:
      713-355-7001

    Fax:

    

    Wharton
      Resources LP,

    Georgia
      Exploration, Inc. 

    Attn:
      Mr.
      Wm Milton Cox

    519
      Heights Blvd

    Houston,
      Texas 77007

    Fax: (713)
      979-3728 

    

    
      	B.	
              Conformance
                with Laws and Regulations

            

    

    

    This
      Purchase and Sale Agreement is subject to all applicable federal, state, and
      local laws and all applicable rules, orders and regulations of any authorized
      and duly constituted regulatory body or authority having jurisdiction thereof,
      and all operations conducted hereunder shall be in conformity therewith. The
      provisions hereof are binding upon each of the parties hereto and shall extend
      to and be binding upon their respective legal representatives, heirs,
      successors, and assigns.

    

    
      	C.	
              No
                Partnership Provision

            

    

    

    Nothing
      in this letter agreement or the Venture-JOA is intended to create, and nothing
      herein or therein shall ever be construed to create, a partnership, joint
      venture, mining partnership, corporation, association, or other relationship
      whereby any party hereto shall ever by held liable for the acts or debts of
      another. The duties, obligations, and liabilities of each party set forth in
      this letter agreement shall be several and not joint so that any single party
      shall be liable only for its proportionate share of the duties, obligations,
      and
      liabilities under the terms of this letter agreement.

     

    
      	D.	
              General

            

    

     

    Upon
      execution by the parties hereto this letter agreement and any attachments and/or
      Schedules shall inure to the benefit of and be binding upon the parties hereto
      and their respective heirs, successors and assigns.

     

    This
      letter agreement shall be construed under and in accordance with the laws of
      the
      State of Texas.

     

    All
      parties duties, obligations and liabilities hereto intended under this letter
      agreement shall be severable, and not joint or collective.

    
      
        
          
          

        

        
          7/16

          
            

          

        

        
          
          

        

      

    

     

    This
      letter agreement may be executed in multiple counterparts, each of which
      constitute one and the same legal instrument.

     

    This
      letter agreement is the entire agreement between Parties with respect to the
      subject matter hereof, and replaces or supersedes any and all previous agreement
      with oral or written between Parties.

     

    If
      the
      foregoing sets forth our agreement, please show your acceptance by signing
      and
      dating this agreement in the space provided below, agreed and accepted this
      30th
      day of
      January, 2007.

    

    
      	
              ORBIT
                ENERGY, LLC

            	 	
              GEORGIA
                EXPLORATION, INC. and WHARTON RESOURCES LLC., 

            
	 	 	 	
              By
                its authorized signatories:

            
	 	 	 	 	 
	
              By:
                

            	
              /
                s
                / Greg A. Thompson

            	 	
              By:
                

            	
              /
                s
                / Donald L. Sytsma

            
	 	
              Greg
                A. Thompson, President

            	 	 	
              Donald
                L. Sytsma, CFO& Director

            
	 	 	 	 	 
	
              By:
                

            	
              /
                s
                / Wm Milton Cox

            	 	
              By:
                

            	
              /
                s
                / Wm Milton Cox

            
	 	
              CodeAmerica
                Investments, LLC

            	 	 	
              Wm
                Milton Cox, Chairman & CEO

            
	 	
              Wm
                Milton Cox, Managing Member

            	 	 	 
	 	 	 	 	 
	
              By:
                

            	
              /
                s
                / Bassam Nastat

            	 	
              By:
                

            	
              /
                s
                / Bassam Nastat

            
	 	
              Paragon
                Capital, LLC

            	 	 	
              Bassam
                Nastat, President & Director

            
	 	
              Bassam
                Nastat, Manager

            	 	 	 

    

    

      
        
          
          

        

        
          8/16

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      “A”

    

    

    PURCHASE
      AND SALE AGREEMENT

    

    

    OIL
      AND GAS LEASES

    MOUND
      BRANCH PROSPECT

    ELK
      COUNTY, KANSAS

    
      
        
        

      

      
        9/16

        
          

        

      

      
        
        

      

    

    Schedule
      A

     

    
      
        	
                Lessor

              	 	
                Lease
                  Date / Lease Exp. Date

              	 	 	 	
                Royalty

              	 	
                HBP

              	 	
                Number
                  of Acres

              	 	
                Legal
                  Discription

              	 	
                County

              	 	
                State

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Bellar
                  Family Farm, LLC

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                12/10/2005

              	 	
                3years

              	 	
                1/8

              	 	
                no

              	 	
                Total
                  Acres 125

              	 	
                Township
                  30 South, Range 11 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date

              	
                 

              	
                12/10/2008

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  29:

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                E/2NE/4,NE/4SE/4,N/2SE/4SE/4

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Lying
                  North of County Rd

              	 	 	 	 
	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Eugene
                  R. & Catherine S. Perkins

              	 	 	 	 	 	 	 	 	 	
                Total
                  Acres 320

              	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                2/11/2006

              	 	
                3years

              	 	
                1/8

              	 	 	 	
                Lease
                  (1) 160

              	 	
                Township
                  30 South, Range 11 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date

              	
                 

              	
                2/11/2009

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  18: NE/4

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Lease
                  Date-

              	
                 

              	
                2/11/2006

              	
                 

              	
                3years

              	
                 

              	
                1/8

              	
                 

              	
                 

              	
                 

              	
                Lease
                  (2) 160

              	
                 

              	
                Township
                  30 South, Range 11 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date

              	
                 

              	
                2/11/2009

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  18:

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                E/2SW/4,
                  W/2SE/4

              	 	 	 	 
	
                Tom
                  & Angela Russell, 

              	 	 	 	 	 	 	 	 	 	
                Total
                  Acres 563

              	 	 	 	 	 	 
	
                Preston
                  & Christina Jones

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                2/25/2006

              	 	
                3years

              	 	
                1/8

              	 	 	 	
                Lease
                  (1) 280

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date

              	 	
                2/25/2009

              	 	 	 	 	 	 	 	 	 	
                Section
                  21: NE/4NW/4, lying East of County RD, NE/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                Section
                  22: W/2SW/4, SW/4NW/4

              	 	 	 	 
	
                Lease
                  Date-

              	 	
                2/25/2006

              	 	
                3years

              	 	
                1/8

              	 	 	 	
                Lease
                  (2) 283

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date

              	 	
                2/25/2009

              	 	 	 	 	 	 	 	 	 	
                Section
                  15: SW/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                Section
                  22: N/2NW/4, SE/4NW/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Howard
                  E. & Debbie J. Unruh

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                2/25/2006

              	 	
                3years

              	 	
                1/8

              	 	 	 	
                Total
                  Acres 200

              	 	
                Township
                  30 South, Range 11 East of 6th P.M.

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date

              	 	
                2/25/2009

              	 	 	 	 	 	 	 	 	 	
                Section
                  21: SE/4, NE/4SW/4, SE/4SW/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Alvin
                  V. Schibbelhute

              	 	 	 	 	 	 	 	
                no

              	 	
                Total
                  Acres 400 

              	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/1/2005

              	 	
                3
                  years 

              	 	
                1/8

              	 	 	 	
                Lease
                  (1) - 240 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/1/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  12: SE/4, E/2SW/4

              	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/1/2005

              	 	
                3
                  years 

              	 	
                1/8

              	 	
                n/a

              	 	
                Lease
                  (2) - 160 Acres

              	 	
                Township
                  30 South, Range 12 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/1/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  7: SW/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                David
                  Denton

              	 	 	 	 	 	 	 	 	 	
                Total
                  Acres 640 

              	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/13/2005

              	 	
                3
                  years

              	 	
                1/8

              	 	
                n/a

              	 	
                Lease
                  (1) - 320 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/13/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  16: N/2

              	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/13/2005

              	 	
                3
                  years

              	 	 	 	
                n/a

              	 	
                Lease
                  (2) - 320 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/13/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  16: S/2

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Dennis
                  Bryan

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                9/6/2005

              	 	
                3
                  years

              	 	
                1/8

              	 	
                n/a

              	 	
                Total
                  Acres 80

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                9/6/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  19: E/2NE/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Robert
                  Adams

              	 	 	 	 	 	 	 	 	 	
                Total
                  Acres 920

              	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/17/2005

              	 	
                3
                  years

              	 	
                1/8

              	 	
                n/a

              	 	
                Lease
                  (1) 160 Acres

              	 	
                E/2
                  NW/4, W/2 NE/4, Sec32

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/17/2008

              	 	 	 	 	 	 	 	 	 	
                T30S-R11E,
                  Elk County, Kansas

              	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/17/2005

              	 	
                3
                  years

              	 	
                1/8

              	 	 	 	
                Lease
                  (2) 160 Acres

              	 	
                Township
                  30 South Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/17/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  35: NE/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Robert,
                  Lakin, Linda Adams

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Alice
                  M. & Marion Brunetti

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/17/2005

              	 	
                3
                  years

              	 	 	 	 	 	
                Lease
                  (3)- 240 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/17/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  27: E/2SW/4, SE/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Robert,
                  Lakin, Linda Adams

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Alice
                  M. & Marion Brunetti

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/17/2005

              	 	
                3
                  years

              	 	
                1/8

              	 	 	 	
                Lease
                  (4)- 80 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/17/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  35: W/2NW/4

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Robert
                  A., Larkin & Linda T. 

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Adams

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/17/2005

              	 	
                3
                  years

              	 	 	 	 	 	
                Lease
                  (5)- 120 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/17/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  23: SE/4SE/4

              	 	 	 	 
	
                 

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Robert
                  A., Larkin & Linda T.

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Adams

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/17/2005

              	 	
                3
                  years

              	 	 	 	 	 	
                Lease
                  (6) 160 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                10/17/2008

              	 	 	 	 	 	 	 	 	 	
                Section
                  25: N/2NW/4

              	 	 	 	 
	
                 

              	 	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Phyllis
                  A. & Neal F. Osborn Trustees of the 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Phyllis
                  A. Osborn Trust

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Total
                  Acres 640

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Lease
                  Date-

              	
                 

              	
                3/16/2006

              	
                 

              	
                3
                  years

              	
                 

              	
                1/8

              	
                 

              	
                 

              	
                 

              	
                Lease
                  (1) 240 Acres

              	
                 

              	
                Township
                  30 South, Range 11 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date-

              	
                 

              	
                3/16/2009

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  15: W/2SE/4

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  22: NE/4

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Lease
                  Date-

              	
                 

              	
                3/16/2006

              	
                 

              	
                3
                  years

              	
                 

              	
                1/8

              	
                 

              	
                 

              	
                 

              	
                Lease
                  (2) 160 Acres

              	
                 

              	
                Township
                  30 South Range 11 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date-

              	
                 

              	
                3/16/2009

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	 	
                Section
                  27: NE/4

              	 	 	 	 
	
                Lease
                  Date-

              	 	
                3/16/2006

              	 	
                3
                  years

              	 	
                1/8

              	 	 	 	
                Lease
                  (3) 240 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                3/16/2009

              	 	 	 	 	 	 	 	 	 	
                Section
                  22: SE/4, E/2SW/4

              	 	 	 	 
	
                 

              	 	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                M.
                  Ruth Royse, Trustee of the M. Ruth Royce

              	 	
                 

              	 	 	 	 	 	 	 	
                Total
                  Acres 640

              	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                3/20/2006

              	 	
                3
                  years

              	 	
                1/8

              	 	 	 	
                Lease
                  (1) 320 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                3/20/2009

              	 	 	 	 	 	 	 	 	 	
                Section
                  10: W/2

              	 	 	 	 
	
                Lease
                  Date-

              	 	
                3/20/2006

              	 	
                3
                  years

              	 	
                1/8

              	 	 	 	
                Lease
                  (2) 320 Acres

              	 	
                Township
                  30 South, Range 11 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date-

              	 	
                3/20/2009

              	 	 	 	 	 	 	 	 	 	
                Section
                  10: E/2

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                Section
                  30: NE/4NE/4

              	 	 	 	 
	
                Babst
                  Family Limited Partnership

              	 	 	 	 	 	 	 	 	 	
                Total
                  Acres 2524.1

              	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/22/2005

              	 	
                1year

              	 	
                1/8

              	 	 	 	
                Lease
                  (1) - 649.55 Acres

              	 	
                Township
                  30 South, Range 12 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date

              	 	
                10/22/2008

              	 	
                2yr
                  Ext

              	 	 	 	 	 	 	 	
                Section
                  30: Lots 1,2,3,4 E2,a/d/a All

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                lying
                  East County (12 Ac.)

              	 	 	 	 
	
                Babst
                  Family Limited Partnership

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/22/2005

              	 	
                1year

              	 	
                1/8

              	 	 	 	
                Lease
                  (2) - 239.34 Acres

              	 	
                Township
                  30 South, Range 12 East

              	 	
                Elk

              	 	
                KS

              
	
                Lease
                  Exp. Date

              	 	
                10/22/2008

              	 	
                2yr
                  Ext

              	 	 	 	 	 	 	 	
                Section
                  31: Lot 1 (39.34), NE/4NW/4,

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                N/2NE/4,
                  a/d/a N/2N/2

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                Section
                  32: N/2NW/4

              	 	 	 	 
	
                Babst
                  Family Limited Partnership

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Lease
                  Date-

              	 	
                10/22/2005

              	 	
                1year

              	 	
                 

              	
                 

              	
                 

              	
                 

              	
                Lease
                  (3) - 626.60 Acres

              	
                 

              	
                Township
                  30 South, Range 12 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date

              	
                 

              	
                10/22/2008

              	
                 

              	
                2yr
                  Ext

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  18: Lots 1,2,3,4 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                E/2W/2,
                  E/2, a/d/a All

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Babst
                  Family Limited Partnership

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Lease
                  Date-

              	
                 

              	
                10/22/2005

              	
                 

              	
                3years

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Lease
                  (4) - 320 Acres

              	
                 

              	
                Township
                  30 South, Range 12 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date

              	
                 

              	
                10/22/2008

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                        29: W/2

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Babst
                  Family Limited Partnership

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Lease
                  Date-

              	
                 

              	
                10/22/2005

              	
                 

              	
                3years

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Lease
                  (5) - 688.61 Acres

              	
                 

              	
                Township
                  30 South, Range 12 East

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Exp. Date

              	
                 

              	
                10/22/2008

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  19: Lots 1,2,3,4,

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                E/2,
                  a,d,a All ( 632.11 Ac. )

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Township
                  30 South, Range 11 East

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Section
                  24: All that part of the 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                SE/4NE/4,
                  E/2SE/4 lying East of

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                County
                  Road ( 56.5 Ac. )

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Margaret
                  P. Tidwell

              	
                 

              	
                7/13/2005

              	
                 

              	
                1year

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                Total
                  Acres 959

              	
                 

              	
                Section
                  29, 30 Various

              	
                 

              	
                Elk

              	
                 

              	
                KS

              
	
                Lease
                  Date-

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Lease
                  Exp. Date

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	 	 	 	 

      

    

    

      
        
          
          

        

        
          10/16

          
            

          

        

        
          
          

        

      
\

    SCHEDULE
      “B” 

    

    

    PURCHASE
      AND SALE AGREEMENT

    

    

    INTERESTS
      IN EXISTING WELLS

    MOUND
      BRANCH PROSPECT

    ELK
      COUNTY, KANSAS

    
      
        
        

      

      
        11/16

        
          

        

      

      
        
        

      

    

     

    Schedule
      “B”

    Orbit
      Energy LLC Onwership

    Mound
      Branch Working Interest and Net Revenue Interest

    

    

    
      	 	 	
              WI

            	 	
              NRI

            
	
              MT
                19-1 

              LC#9

            	
               

            	
              0.2500

            	
               

            	
              0.1782

            
	 	 	 	 	 
	 	 	 	 	 
	
              MT
                19-2

              LC#10

            	
               

            	
              0.3100

            	
               

            	
              0.2226

            
	 	 	 	 	 
	 	 	 	 	 
	
              MT
                29-1

              LC#11

            	
               

            	
              0.3100

            	
               

            	
              0.2226

            
	 	 	 	 	 
	 	 	 	 	 
	
              DB
                19-3 

              LC#12

            	
               

            	
              0.2900

            	
               

            	
              0.2078

            
	 	 	 	 	 
	 	 	 	 	 
	
              MT
                29-2 

              LC#14

            	
               

            	
              0.5500

            	
               

            	
              0.4028

            
	 	 	 	 	 
	 	 	 	 	 
	
              DD
                16-3

              LC#15

            	
               

            	
              0.7300

            	
               

            	
              0.5402

            
	 	 	 	 	 
	 	 	 	 	 
	
              DD
                16-2

            	
               

            	
              1.0000

            	
               

            	
              0.7400

            
	 	 	 	 	 
	 	 	 	 	 
	
              DD
                16-8

            	
               

            	
              1.0000

            	
               

            	
              0.7400

            
	 	 	 	 	 
	 	 	 	 	 
	
              DD
                16-4

            	
               

            	
              1.0000

            	
               

            	
              0.7400

            
	 	
              Production
                intended to be used for lease use
                gas.

            

    

    

      
        
          
          

        

        
          12/16

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      “C” 

    

    

    PURCHASE
      AND SALE AGREEMENT

    

    

    FACILITIES
      AND EQUIPMENT 

    MOUND
      BRANCH PROSPECT

    ELK
      COUNTY, KANSAS

    
      
        
        

      

      
        13/16

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “C”

     

    

      Mound
        Branch Equipment Inventory 

      December
        31, 2006

      

      

      
        	
                1,202'
                  of 2 3/8 (8 round upset tubing)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                47
                  3/4" Rods @ 25'ea.

              	 
	
                (3)
                  6' 3/4" rodsubs

              	 
	
                (1)
                  4' 3/4" rodsubs

              	 
	
                (1)
                  8' 1" 25/32 pumpbarrel

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  10' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 
	 	 
	
                1,005'
                  of 2" line pipe tubing 10 round

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                40
                  3/4" Rods @ 25'ea.

              	 
	
                (1)
                  6' 3/4" rodsub

              	 
	
                (1)
                  8' 1" 25/32 pumpbarrel

              	 
	
                (1)
                  13' mud anchor

              	 
	
                (1)
                  8' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 
	 	 
	
                1,022'
                  of 2" line pipe tubing 10 round

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                38
                  5/8" Rods 

              	 
	
                (2)
                  3/4" rods

              	 
	
                (1)15'
                  mud anchor

              	 
	
                (1)10'
                  gas anchor

              	 
	
                (1)
                  small pumpjack

              	
                (1)
                  8' pump barrel

              
	 	 
	
                998'
                  of 2 3/8" upset tubing 8 round

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (39)
                  3/4" rods

              	 
	
                (1)
                  8' 3/4" rod sub

              	 
	
                (2)
                  6' 3/4" rod subs

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  10' gas anchor

              	 
	
                (1)
                  small pumpjack

              	
                (1)
                  8' pump barrel

              
	 	 
	
                1,105'
                  of line pipe tubing 10 round

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (44)
                  3/4" rods

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  10' gas anchor

              	 
	
                (1)
                  small pumpjack

              	
                (1)
                  8' pump barrel

              
	 	 
	
                1,038'
                  of 2" line pipe tubing 10 round

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (41)
                  3/4" rods

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  10' gas anchor

              	 
	
                (1)
                  8' pump barrel

              	 
	
                (1)
                  small pumpjack

              	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                1,037'
                  of line pipe tubing 10 round

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (41)
                  3/4" rods

              	 
	
                (2)
                  6' 3/4" rod subs

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  10' gas anchor

              	 
	
                (1)small
                  pumpjack

              	 
	 	 
	
                Goff
                  Well #5(LC-2)

              	 
	
                1,039'
                  of 2 3/8" upset tubing 

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (41)
                  3/4" rods

              	 
	
                (2)
                  3/4" rod subs

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 
	 	 
	
                1,667'
                  of 2 3/8" upset tubing

              	 
	
                Larkin
                  Tubing Wellhead

              	 
	
                (66)
                  3/4" rods

              	 
	
                (2)
                  6' 3/4" rod subs

              	 
	
                (1)
                  2' Rod sub

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  8' pump barrel

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  2 3/8" tubing valve

              	 
	
                (2)
                  2" backpressure valve

              	 
	
                (1)
                  2" meter-run and 2 pen meter

              	 
	
                (1)
                  small pumpjack

              	 
	 	 
	
                MainTank
                  Battery(LC-1)

              	 
	
                (1)
                  4x20 heater treater

              	
                50Lbs.
                  MAOP

              
	
                (2)
                  100Bbl. Tanks, steel

              	 
	
                (1)
                  100Bbl. Watertank, fiberglass

              	 
	
                (1)
                  30x10 3phase inlet sep.

              	
                125Lbs.
                  MAOP

              
	 	 
	
                1,024'
                  2 3/8" tubing(8 round upset)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                40
                  3/4" Rods

              	 
	
                (3)
                  6' 3/4" rod subs

              	 
	
                (1)
                  2' 3/4" rod sub

              	 
	
                (1)
                  8' 1 25/32" pumpbarrel

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 
	 	 
	
                1087'
                  2 3/8" tubing(8 round upset)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (43)
                  3/4" rods

              	 
	
                (1)
                  6' 3/4" rodsub

              	 
	
                (1)
                  2' 3/4" rodsub

              	 
	
                (1)
                  8' 1 25/32 pumpbarrel

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                1,115'
                  2 3/8" tubing(8 round upset)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (44)
                  3/4" rods

              	 
	
                (2)
                  6' 3/4" rod subs

              	 
	
                (1)
                  8' 1 25/32 pumpbarrel

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 
	 	 
	
                1,841'
                  2 3/8" tubing(8 round upset)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (73)
                  3/4" rods

              	 
	
                (1)
                  6' 3/4" rodsub

              	 
	
                (1)
                  8' 1 25/32 pumpbarrel

              	 
	
                (1)
                  15" mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  2" meter-run and meter

              	 
	
                (1)
                  large pumpjack

              	 
	 	 
	
                1,658'
                  2 3/8" tubing(8 round upset)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (66)
                  3/4" rods

              	 
	
                (4)
                  4' 3/4" rodsubs

              	 
	
                (1)
                  6' 3/4" rodsub

              	 
	
                (1)15'
                  mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  large pumpjack

              	 
	 	 
	
                1,128.40'
                  2 3/8" tubing (8round)

              	 
	
                Larkin
                  Tubing wellhead

              	 
	
                Pumping
                  Tee

              	 
	
                Stuffing
                  Box

              	 
	
                (45)
                  3/4" rods

              	 
	
                (1)
                  15' mud anchor

              	 
	
                (1)
                  6' gas anchor

              	 
	
                (1)
                  small pumpjack

              	 

      

       

    

    
      
        
        

      

      
        14/16

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “D” 

    

    

    PURCHASE
      AND SALE AGREEMENT

    

    

    AMOUNTS
      ADVANCED TO OR PAID BY WHARTON

    ON
      THE BEHALF OF ORBIT ENERGY, LLC

    
      
        
        

      

      
        15/16

        
          

        

      

      
        
        

      

    

    Schedule
      “D”

     

     

    
      	
               WHARTON
                RESOURCES CORP.

            	 
	
               SUMMARY
                OF FUNDS DISTRIBUTED TO ORBIT ENERGY

            	 
	
               11/30/2006

            	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              Prospect

            	 	
              Notes

            	 	
              Date

            	 	
              Check
                Number

            	 	
              Expenditure

            	 
	
              Kansas

            	 	 	
              Initial
                Payment

            	 	 	
              9/1/2006

            	 	 	
              10016

            	 	
              $

            	
              100,000.00

            	 
	
              Kansas

            	 	 	
              SCS
                Services

            	 	 	
              9/27/2006

            	 	 	
              10030

            	 	 	
              7,600.00
                

            	 
	
              Kansas

            	 	 	
              BABST(Code
                America)

            	
               

            	 	
              10/24/2006

            	 	 	
              10034

            	 	 	
              15,154.90
                

            	 
	
              Kansas

            	 	 	
              Consolidated
                Oil Well Services

            	 	 	
              11/28/2006

            	 	 	
              10044

            	 	 	
              51,731.25
                

            	 
	
              Kansas

            	 	 	
              Caney
                Valley Electric

            	 	 	
              11/29/2006

            	 	 	
              10045

            	 	 	
              1,460.88
                

            	 
	
              Kansas

            	 	 	
              Advance

            	 	 	
              12/6/2006

            	 	 	
              10047

            	 	 	
              415,000.00
                

            	 
	
              Kansas

            	 	 	
              Advance

            	 	 	
              12/6/2006

            	 	 	
              10054

            	 	 	
              100,000.00
                

            	 
	
              Kansas

            	 	 	
              Advance

            	 	 	
              12/15/2006

            	 	 	
              10057

            	 	 	
              25,000.00
                

            	 
	
              Kansas

            	 	 	
              Advance

            	 	 	
              12/21/2006

            	 	 	
              10060

            	 	 	
              15,000.00
                

            	 
	
              Kansas

            	 	 	
              Advance

            	 	 	
              1/23/2007

            	 	 	
              10074

            	 	 	
              30,000.00
                

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                 
                

            	 
	
               

            	 	 	
              Total
                Expenditures

            	 	 	 	 	 	 	 	
              $

            	
              760,947.03

            	 

    

     

     

    16/16Exhibit 10.2

    
      

    

    
      	
              10.2

            	
              Convertible
                Debenture dated January 30, 2007

            

    

    

    

    THE
      SECURITIES REPRESENTED HEREBY AND THE
      SECURITIES ISSUABLE
      UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
      LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF AGREES FOR THE BENEFIT
      OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR
      OTHERWISE TRANSFERRED ONLY UNDER
      THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
      LAWS
      OR
(A)
      OUTSIDE THE UNITED STATES IN ACCORDANCE WITH REGULATION
      S UNDER THE SECURITIES ACT, (B)
      IN
      COMPLIANCE WITH RULE 144 UNDER THE SECURITIES ACT
      AND IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS,
      OR
      (C)
      PURSUANT TO ANOTHER
      EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS, PROVIDED THE HOLDER HAS FURNISHED TO THE CORPORATION AN OPINION
      OF COUNSEL OF RECOGNIZED STANDING TO SUCH
      EFFECT
      REASONABLY SATISFACTORY TO THE CORPORATION. HEDGING TRANSACTIONS INVOLVING
      THESE
      SECURITIES OR
      THE
      SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY
      NOT
      BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

    

    

    CONVERTIBLE
      UNSECURED PROMISSORY NOTE

    

    

    Initial
      Principal:   $
      2,000,000 (the “Principal”)      Date:  January
      30, 2007

    

    
      	
              Issued
                to:

            	
              ORBIT
                ENERGY, LLC.
                (the “Holder”)

            

    

    

    
      	
              Issued
                by:

            	
              GEORGIA
                EXPLORATION, INC. (the “Corporation”)

            

    

    
      	 	
              4801
                Woodway Drive, Suite 306W

            

    

    
      	 	
              Houston,
                TX 77056

            

    

    
      	 	
              Attention:
                President

            

    

    
      	 	
              Fax:
                (713) 436-3298

            

    

     

    ARTICLE
      1

    PROMISE
      TO PAY

    

    1.1   Promise
      to Pay. FOR
      VALUE
      RECEIVED, the Corporation promises to pay, on demand made by the Holder, to
      or
      to the order of the Holder at 4801
      Woodway Drive, Suite 305W, Houston Texas, 77056
      Attention: Milton Cox, or such other place and/or person as Holder may by notice
      in writing to the Corporation direct, the Principal, together with all interest
      accruing hereunder, on and subject to the terms and conditions set out
      herein.

    

    ARTICLE
      2

    PRINCIPAL
      PAYMENT

    

    2.1   Term. Subject
      to the provisions of this convertible promissory note (this “Note”),
      the
      outstanding and unconverted Principal and all accrued and unpaid interest shall
      become due and payable on January 30, 2010 (the “Maturity
      Date”).

    

    2.2   Acceleration
      of Payment. The
      Corporation may pay the Principal and Interest amount outstanding hereunder
      in
      full at any time after January 30, 2008 and before 4:00 p.m. (Houston time)
      on
      the Maturity Date by providing written notice to the Holder and Holder shall
      thereafter have five Business Days to provide notice to the Corporation that
      the
      Holder will convert the Note into Shares in lieu of such payment by the
      Corporation of the Principal and Interest. If the Holder provides notice of
      conversion pursuant to this section, then Article 4.1 will apply. Upon payment
      to the Holder of the Principal and Interest outstanding pursuant to this
      paragraph, this Note and all obligations hereunder will terminate.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.3   Accleration
      on
      Change of Control. In
      the
      event a change of control of the Corporation occurs at any time after January
      30, 2008, the Holder may by notice to the Corporation, accelerate the Maturity
      Date to the effective date of such change of control. For the purposes hereof
      a
      change of control means the acquisition by any person, or group of persons
      acting together, of voting control over 50% or greater of the issued and
      outstanding shares in the capital of the Corporation, where such person or
      group
      of persons did not prior to the date hereof hold such voting control. Upon
      notice of acceleration of the Maturity Date being provided to the Corporation,
      all Principal and Interest hereunder shall become immediately due and owing
      to
      the Holder without demand being made.

    

    ARTICLE
      3

    INTEREST

    

    3.1   Interest.
      Interest
      shall accrue on the Principal outstanding from time to time at a rate of
10%,
      per
      annum (“Interest”)
      non-compounding and shall be payable quarterly in arrears on April 29, July
      3,
      October 30 and January 30 of each year of the term of this Note. Interest shall
      accrue until payment in full of all monies owing hereunder or until the date
      upon which the outstanding portion of the Principal is converted into Shares
      pursuant to the provisions of this Note, whichever occurs first. All interest
      hereunder shall be computed on the basis of the actual number of days elapsed
      divided by the number of days in such calendar year, being 365 or 366, as the
      case may be. The interest rate shall be equivalent to such applicable interest
      rate multiplied by the actual number of days in the calendar year in which
      the
      same is to be determined and divided by 365 or 366, as the case may be.

     

    ARTICLE
      4

    RIGHT
      OF
      CONVERSION

    

    
      	
              4.1

            	
              Conversion
                of Principal.

            

    

    

    4.1.1  Shares.
      Subject
      to and upon compliance with the provisions of this Section 4.1, the outstanding
      Principal may, at any time after January 30, 2008 and prior to 4:01 p.m.
      (Houston time) on the the Due Date be converted in whole or in part into such
      number of fully paid and non-assessable Shares as is equal to the Principal
      divided by the Conversion Rate.

    

    4.1.2  Notice
      of Conversion.
      The
      conversion specified in subsection 4.1.1 may be effected by delivery to the
      Corporation of a notice of conversion duly signed by or on behalf of the Holder,
      specifying the amount of the Principal being converted. Upon conversion of
      all
      of the Principal, the rights of the Holder under this Note as a holder thereof
      shall cease other than the right to receive the Shares.

    

    4.1.3  Certificates.
      As
      promptly as practicable after the conversion of this Note, the Corporation
      shall
      issue and deliver to the Holder a certificate in the name of the Holder for
      the
      number of Shares deliverable upon the conversion of this Note.

    

    4.1.4  Compliance
      with U.S. Securities Laws.
      Transfer
      of the
      Shares will be made only pursuant
      to registration under the Securities Act and in accordance with applicable
      state
      securities laws or (i) in
      accordance with the provisions of Regulation S,
      (ii) in
      compliance with Rule 144
      under
      the Securities Act and
      in
      accordance with applicable state securities laws or (iii) pursuant to
      another
      exemption from registration under
      the
      Securities Act and any applicable state securities laws, provided that Holder
      has furnished to the Corporation an opinion of counsel of recognized standing
      to
      such effect reasonably satisfactory to the
      Corporation.
      The
      Corporation has no present intention or obligation to register the Shares under
      the Securities Act.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.1.5  Legend
      on the Shares.  All
      Shares issued upon conversion of this Note shall be stamped or imprinted with
      a
      legend in substantially the following form:

    

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
      LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF AGREES FOR THE BENEFIT
      OF THE CORPORATION THAT SUCH SECURITIES MAY
      BE
      OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY PURSUANT
      TO REGISTRATION UNDER THE SECURITIES ACT
      AND IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (A)
      OUTSIDE THE UNITED STATES IN ACCORDANCE WITH REGULATION
      S UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
      LAWS,
      (B)
      IN
      COMPLIANCE WITH RULE 144 UNDER THE SECURITIES ACT, OR (C)
      PURSUANT TO ANOTHER
      EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS, PROVIDED THE HOLDER HAS FURNISHED TO THE CORPORATION AN OPINION
      OF COUNSEL OF RECOGNIZED STANDING TO SUCH
      EFFECT
      REASONABLY SATISFACTORY TO THE CORPORATION. HEDGING TRANSACTIONS INVOLVING
      THESE
      SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
      ACT.

    

    
      	
              4.2

            	
              Adjustment
                of Conversion Rate.

            

    

    

    
      	
              4.2.1

            	
              Reorganization.
                If and whenever the Corporation
                shall:

            

    

    

    
      	 	
              (a)

            	
              subdivide
                or redivide the outstanding Shares into a greater number of
                shares;

            

    

    

    
      	 	
              (b)

            	
              reduce,
                combine or consolidate the outstanding Shares into a smaller number
                of
                shares; or

            

    

    

    
      	 	
              (c)

            	
              issue
                Shares or securities exchangeable or convertible into Shares to all
                or
                substantially all of the holders of the outstanding Shares (including
                by
                way of stock dividend); (each of the events described in (a), (b)
                and (c)
                being a “Share Reorganization”).

            

    

    

    then
      the
      Conversion Rate shall be adjusted as of the effective date or record date,
      as
      the case may be, at which the holders of Shares are determined for the purpose
      of such Share Reorganization by multiplying the Conversion Rate in effect
      immediately prior to such effective date or record date by a fraction the
      numerator of which shall be the number of Shares outstanding on such effective
      date or record date before giving effect to such Share Reorganization and the
      denominator of which shall be the number of Shares outstanding as of the
      effective date or record date after giving effect to such Share Reorganization
      (including, in the case where securities exchangeable for or convertible into
      Shares are distributed, the number of Shares that would have been outstanding
      had such securities been exchanged for or converted into Shares on such
      effective date or record date, but excluding any Option
      Shares).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.2.2  Fractional
      Share.
      If as a
      result of any adjustment under subsections 4.2.1 above the Holder would, but
      for
      this subsection 4.2.2. become entitled to a fractional Share upon exercise
      of
      this Note, such fractional entitlement shall be rounded to the nearest whole
      number.

    

    4.2.3  Adjustments
      Cumulative.
      The
      adjustments provided for in this Article 4 are cumulative. The Corporation
      shall
      give notice to the Holder at least 15 days, if reasonably possible, prior to
      the
      effective date or record date, as the case may be, of an event requiring
      adjustment in the conversion rights under this Article 4, including, if
      determinable at such time, the Conversion Rate and the number(s) and class(es)
      of shares or other securities or property which are to be received upon
      conversion of the Shares issuable hereunder. The Corporation shall promptly
      following any adjustments under this Article 4, set forth the details of such
      adjustment in a replacement form of Note or Share terms approved by the board
      of
      directors of the Corporation and reasonably acceptable to the Holder. After
      any
      adjustment pursuant to this Article 4 and until the issuance of a corresponding
      replacement form of Note, the term ”Shares” where used in this Note shall be
      interpreted to mean the Shares which, as a result of all previous adjustments
      pursuant to this Article 4, the Holder would have been entitled to receive
      upon
      the exercise of this Note, and as a result of all previous adjustments pursuant
      to this Article 4, the Holder would have been entitled to receive upon the
      full
      exercise of this Article 4 entitling the Holder to the number of Shares so
      indicated, unless the context reasonably suggests otherwise.

    

    4.2.4  Determination.
      If any
      question arises with respect to an adjustment provided for in this Article
      4,
      such question shall be referred to the auditors of the Corporation, or other
      independent certified accounting firm,and their determination shall be binding
      upon the Corporation, and the Holder.

     

    ARTICLE
      5

    COVENANTS

    

    5.1   Covenants.
      The
      Corporation hereby declares, covenants and agrees as follows:

    

    5.1.1        
      Pay
      Principal and Interest.
      It shall
      pay or cause to be paid to the Holder the Principal and interest pursuant to
      this Note on the date, at the place and in the manner set forth
      herein.

    

    5.2   Waiver.
      The
      Holder may waive in writing any breach by the Corporation of any of the
      provisions contained in this Note or any default by the Corporation in the
      observance or performance of any covenant or condition required to be observed
      or performed by the Corporation hereunder, provided that no such waiver or
      any
      other act, failure to act or omission by the Holder shall extend to or be taken
      in any manner to affect any subsequent breach or default of the rights of the
      Holder resulting therefrom.

     

    ARTICLE
      6

    EVENTS
      OF
      DEFAULT

    

    6.1   Events
      of Default.
      The
      whole of the Principal remaining unpaid shall, at the option of the Holder,
      become immediately due and payable in each of the following events (each such
      event being herein called an “Event of Default”):

    

    6.1.1  if
      the
      Corporation defaults in payment of the Principal owing under this Note on demand
      for payment having been made on or after the Maturity Date and such default
      shall continue for ten (10) Business Days, regardless of whether written notice
      thereof is given to the Corporation by the Holder;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.1.2  if
      the
      Corporation defaults in the performance or observance of any other covenant
      or
      condition herein including, without limitation. the payment of Interest on
      a
      date on which such payment was due and such default shall continue for fifteen
      (15) days after written notice thereof is given to the Corporation by the
      Holder;

    

    6.1.3  if
      an
      order is made or an effective resolution passed for the winding-up, liquidation
      or dissolution of the Corporation;

    

    6.1.4  if
      the
      Corporation consents to or makes a general assignment for the benefit of
      creditors or makes a proposal under the federal bankruptcy laws or any other
      bankruptcy, insolvency or analogous laws; or

    

    6.1.5  if
      the
      Corporation becomes bankrupt or insolvent or commits an act of bankruptcy,
      or
      any proceeding is commenced against or affecting the Corporation:

    

    
      	 	
              (i)

            	
              seeking
                to adjudicate it as bankrupt or
                insolvent;

            

    

    

    
      	 	
              (ii)

            	
              seeking
                liquidation, dissolution. winding-up, restructuring. reorganization,
                arrangement. protection, relief or composition of it or any of its
                property or debt or making a proposal with respect to it under any
                law
                relating to bankruptcy, insolvency, reorganization or compromise
                of debts
                or similar laws (including, without limitation, any reorganization,
                arrangement or compromise of debt under the laws of its jurisdiction
                of
                incorporation or organization); or

            

    

    

    
      	 	
              (iii)

            	
              seeking
                appointment of a receiver, receiver and manager, liquidator, trustee,
                agent, custodian or other similar official for it or for any part
                of its
                properties and assets.

            

    

    

    and
      such
      proceeding has not been stayed or dismissed within 30 days after its
      initiation.

    

    ARTICLE
      7

    RANKING
      OF HOLDER

    

    7.1   Unsecured
      Ranking.
      This
      Note is unsecured and shall rank equally with all other unsecured creditors
      and
      no priority is given to the Holder with respect to the repayment of the
      Principal or Interest hereunder. 

     

    ARTICLE
      8

    GENERAL

    

    8.1   Remedies
      Cumulative.
      All
      powers and remedies given herein to the Holder shall, to the extent permitted
      by
      law, be deemed cumulative and not exclusive of, but in addition to, any other
      powers and remedies available to the Holder hereunder, by law, equity, statute,
      judicial proceedings or otherwise, to enforce the performance and observance
      of
      the covenants and agreements contained in this Note. No delay or omission by
      the
      Holder to exercise any right or power accruing hereunder shall impair any such
      right or power, or shall be construed to be a waiver of any such right or power
      or an acquiescence therein. Every power and remedy given herein or by law to
      the
      Holder may be exercised from time to time, and as often as shall be deemed
      expedient by the Holder.

    

    8.2   Conflict
      with Applicable Law.
      All
      rights, remedies and powers provided herein may be exercised only to the extent
      that the exercise thereof does not violate any mandatory provision of applicable
      law and all provisions of this Note are intended to be subject to all mandatory
      provisions of applicable law which may be controlling in the premises and to
      be
      limited to the extent necessary so that they will not render this Note invalid,
      unenforceable or not entitled to be recorded, registered or filed under the
      mandatory provisions of any applicable law. Any provision hereof contrary to
      mandatory provisions of applicable law shall be deemed to be ineffective and
      shall be severable from and not invalidate any other provision of this
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.3   Notices.
      Any
      notice, direction or other instrument required or permitted to be given to
      the
      Corporation shall be in writing and shall be sufficiently given if delivered
      personally, or transmitted by facsimile tested prior to transmission to the
      Corporation to the address set forth on the first page of this Note. Any such
      notice, direction or other instrument. if delivered personally, shall be deemed
      to have been given and received on the day on which it was delivered, provided
      that if such day is not a Business Day then the notice, direction, or other
      instrument shall be deemed to have been given and received on the first Business
      Day next following such day and if transmitted by fax, shall be deemed to have
      been given and received on the day of its transmission, provided that if such
      day is not a Business Day or if it is transmitted or received after the end
      of
      normal business hours then the notice, direction or other instrument shall
      be
      deemed to have been given and received on the first Business Day next following
      the day of such transmission. Any party hereto may change its address for
      service from time to time by notice given to each of the other parties hereto
      in
      accordance with the foregoing provisions.

    

    8.4   Extensions
      and Amendments.
      Any
      agreement for the extension of the time of payment of the Principal and
      Interest, if any, hereunder made at, before or after maturity, or any agreement
      for altering the term, the amount of the payment of the Principal and Interest,
      if any, hereunder or any other covenant or condition hereof, need not be
      registered in any office of public record but shall be effectual and binding
      upon the Corporation and its successors and permitted assigns when executed
      by
      the Corporation and the Holder and delivered to the Holder. Any such amendments
      or extensions shall be subject to prior regulatory approval.

    

    8.5   Assignment.
      This
      Note may not be assigned by either party except with the prior written consent
      of the other party hereto.

    

    8.6   Enurement.
      This
      Note shall enure to the benefit of and be binding upon the parties hereto and
      their respective heirs, executors, successors (including any successor by reason
      of the consolidation or merger of any party), administrators and permitted
      assigns.

    

    8.7   Severability.
      In the
      event that any Section or portion of any covenant in this Note should be
      unenforceable or declared invalid for any reason whatsoever. such
      unenforceability or invalidity shall not affect the enforceability or validity
      of the remaining portions of the covenant and such unenforceable or invalid
      portion shall be severable from the remainder of this Note.

    

    8.8   Governing
      Law.
      This
      Note shall be construed and enforced in accordance with, and the rights of
      the
      parties shall he governed by, the laws of the State of Texas, excluding that
      body of law relating to conflict of laws. 

    

    8.9   Counterparts. This
      Note
      may be executed in counterparts, each of which shall be deemed to be an original
      and all of which together shall constitute one and the same Note. Counterparts
      may be delivered either in original or faxed form and the parties adopt any
      signature received by a receiving fax machine as original signatures of the
      parties.

    

    8.10   Time
      of Essence. Time
      shall be of
      the
      essence of this Note in all respects.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.11   No
      Rights as a Stockholder. Nothing
      contained in this Note shall be construed as conferring upon the Holder or
      any
      other person the right to vote or to consent or to receive notice as a
      stockholder in respect of meetings of stockholders for the election of directors
      of the Corporation or any other matters or any rights whatsoever as a
      stockholder of the Corporation; and no dividends or interest shall be payable
      or
      accrued in respect of this Note or the interest represented hereby or the Shares
      issuable hereunder until, and only to the extent that, this Note shall have
      been
      converted. 

    

    ARTICLE
      9

    INTERPRETATION

    

    9.1   Definitions.
      As used
      herein. the following expressions shall have the following
      meanings:

    

    9.1.1   “Business
      Day”
      means
      any day except Saturday, Sunday or a statutory holiday in the City of Houston,
      Texas;

    

    9.1.2   “Conversion
      Rate”
means
      $1.00;

    

    9.1.3   “Corporate
      Reorganization”
means
      any transaction whereby all or substantially all of the Corporation’s property
      and assets would become the property of
      any
      other
      person, whether by way of arrangement, reorganization, consolidation, merger,
      continuance under any other jurisdiction of incorporation or
      otherwise;

    

    9.1.4   “Corporation”
means
      Georgia Exploration, Inc.;

    

    9.1.5   “Event
      of
      Default”
has
      the
      meaning given to that term in Section 6.1 of this Note;

    

    9.1.6   “Holder”
means
      the registered holder of this Note as identified on the first page
      hereof;

    

    9.1.7   “Maturity
      Date”
has
      the
      meaning given to that term in Section 2.1 of this Note;

    

    9.1.8   “Option
      Shares”
means
      the Shares issuable upon conversion of any grant of convertible securities,
      including warrants and options, to employees, directors or services providers
      to
      the Corporation;

    

    9.1.9   “Principal”
has
      the
      meaning given to that term in Section 1.1 of this Note;

    

    9.1.10   “Securities
      Act”
means
      the U.S. Securities Act of 1933, as amended;

    

    9.1.11   “Shares”
means
      common stock of the Corporation, as such shares were constituted on the date
      hereof; and

    

    9.1.12   “Share
      Reorganization”
has
      the
      meaning given to that term in Section 4.2.1 of this Note.

    

    9.2   Extended
      Meanings.
      The
      terms “hereto,”
      “hereby,”
      “hereunder,”
      “herein,”
and
      “hereof”
and
      similar expressions refer to the whole of this Note and not to any particular
      Article, Section, subsection or part hereof. Words importing the singular number
      only include the plural and vice versa and words importing gender include all
      genders. The term “including” shall mean “including, without
      limitation.”

    

    9.3   Gender
      and Number.
      Words
      importing the singular number only shall include the plural and vice versa,
      words importing the masculine gender shall include the feminine gender and
      words
      importing persons shall include firms and corporations and vice
      versa.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.4   Currency.
      Unless
      otherwise specified, all dollar amounts in this Note, including the symbol
“$,”
are expressed in United States currency.

    

    9.5   Sections
      and Headings.
      The
      division of this Note, into Articles, Sections, Schedules and other subdivisions
      and the inclusion of headings are for convenience of reference only and shall
      not affect the construction or interpretation of this Note. The headings in
      this
      Note are not intended to be full or precise descriptions of the text to which
      they refer. Unless something in the subject matter or context is inconsistent
      therewith, references herein to an Article, Section, Subsection, paragraph,
      clause or Schedule are to the applicable article, section, subsection,
      paragraph, clause or schedule of this Note.

    

    IN
      WITNESS WHEREOF the Corporation has executed this Note as of the date first
      written above.

    

    
      	 	
              GEORGIA
                EXPLORATION, INC.

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Authorized
                Signatory

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