Document:

EXHIBIT 10.7

[DEVON LOGO]
--------------------------------------------------------------------------------
                                                   Devon Energy Corporation
                                                   Devon Energy Tower
                                                   1200 Smith Street, Suite 3300
                                                   Houston, Texas 77002

Christopher N. Claeys
Senior Staf Land Representative
Direct Line:   (713) 286-5862
Fax:           (713) 286-5737
Email: chris.claeys@dvn.com

May 3, 2006                                       VIA FACSIMILE & CERTIFIED MAIL
                                                  ------------------------------

Ridgewood Energy Corporation
Attention: Randy Bennett
11700 Old Katy Road, Suite 280
Houston, Texas 77079

Re:     Participation Agreement dated September 15, 2005
        Mercury Prospect (OCS-G 3332 A-10 Well)
        Eugene Island Area,  South  Addition,  Block 337 (OCS-G 3332)
        Offshore, Louisiana

Gentlemen;

By letter dated October 13, 2005, and subsequent communications between
representatives of Ridgewood Energy Corporation ("Ridgewood") and Devon Energy
Production Company, L.P. ("Devon"), Ridgewood has been made aware and kept
apprised of the status and progress of Devon's efforts to recover from the major
scheduling disruptions caused by Hurricane Rita in September 2005 with respect
to the activities necessary to cause the drilling of the Eugene Island Area,
South Addition, Block 337 OCS-G 3332 A-10 well. This letter is written to update
Ridgewood on recent developments affecting the drilling schedule and costs, and
to seek Ridgewood's agreement to continue its participation in the drilling of
the OCS-G 3332 A-10 well covering the Mercury prospect.

As you know, the rig Devon intends to utilize for this drilling operation, the
Rowan Alaska, is currently on location at our mutual "Barber" prospect well in
Eugene Island Block 334. At present, Devon's drilling schedule plans call for
moving the Rowan Alaska to the Mercury location after drilling and completion
operations at the Barber and "Chopin" prospects Eugene Island 334 "D" platform
("El 334 "D") location are finalized. The repairs to the Eugene Island 337 "A"
platform ("El 337 "A") are progressing, and are anticipated to be completed in
time to proceed with the drilling of the Mercury prospect immediately after
conclusion of operations at El 334 "D". Devon's current schedule for El 337 "A"
repairs indicate that commencement of operations for the OCS-G 3332 A-10 well
should occur in the late July 2006 to early August 2006 timeframe, subject to
any additional delays, including but not limited to, weather, rig and equipment
availability, the well operations being conducted at the El 334 "D" location,
and repairs to El 337 "A".

By letter dated April 24, 2006 Devon advised Ridgewood that Devon deemed the
captioned Participation Agreement (the "Agreement") to have expired due to the
parties failure to mutually agree upon the terms of Ridgewood's continued
participation in the OCS-G 3332 A-10 well. Upon further conversation with
Ridgewood, and acknowledging both parties' continued desire to pursue drilling
the OCS-G 332 A-10 well, Devon hereby retracts and rescinds its April 24, 2006
letter. Ridgewood and Devon further agree and affirm that the Agreement has been
and is still in effect, having been extended and preserved by force majeure
events, specifically, post-hurricane delays caused by platform and equipment
damages, and the lack of available rigs, crews, materials and equipment to
conduct repairs and drilling operations, and each party reaffirms its respective
obligations as set forth in the Agreement.

<PAGE>

However, due to the changes in costs and scheduling subsequent to the execution
of the Agreement, Devon would prefer that the parties arrive at an agreed upon
continuance of our mutual contractual obligations. To this end, Devon is
enclosing for Ridgewood's information a copy of the recently updated Authority
for Expenditure (AFE) generated for the drilling and evaluation of the OCS-G
3332 A-10 well. As can be seen, the overall costs for this project have
escalated. The total estimated dry hole costs are now approximately
$21,221,300.00. Additionally, Devon wishes to advise Ridgewood that the drilling
contract for the Rowan Alaska will escalate from its current $160,000.00 per day
rate as reflected in the attached AFE, to $165,000.00 per day, effective
September 1, 2006 through December 1, 2006. After December 1, 2006 the Rowan
Alaska drilling contract is subject to further escalation at then current market
rates. The attached AFE represents the best estimate of the dry hole costs that
Ridgewood can reasonably expect to bear in the event Ridgewood elects to
continue to participate in the Mercury prospect. Therefore, Devon proposes that
Ridgewood and Devon agree upon the following:

     1.   The parties agree to honor the intent of the Agreement with respect to
          the promote limit, being an amount equal to 120% of the originally
          estimated OCS-G 3332 A-10 well dry hole costs of $11,957,000.00 per
          the AFE attached as Exhibit "B" to the Agreement, and agree to limit
          Ridgewood's promoted interest expenditures to 44% of $14,348,400.00
          (120% x $11,957,000.00 = $14,348,400.00) or a net $6,313,296.00 to
          Ridgewood, or upon reaching Contract Depth as defined in the
          Agreement, whichever event shall occur first.

     2.   Ridgewood agrees to bear its unpromoted 33% share of the total OCS-G
          3332 A-10 well costs above a gross cost of $14,348,400.00. Ridgewood
          also agrees to bear its proportionate share of any increase in the day
          rate for the Rowan Alaska that will occur on September 1, 2006 and
          December 1, 2006, should operations on the OCS-G 3332 A-10 well be in
          progress on and after said dates.

     3.   Except as herein amended, the Agreement shall remain in full force and
          effect as presently written.

While the revised estimated costs to drill the OCS-G 3332 A-10 well represent a
change to the overall project economics, Devon still views the prospect as a
viable drilling opportunity and recommends proceeding with the drilling of the
OCS-G 3332 A-10 well after mutually agreeing to extend the Contract Spud Date,
as defined in the Agreement, to on or before October 1, 2006. Devon recognizes
that Ridgewood may or may not agree with its assessment. Therefore, should
Ridgewood elect to not continue its participation in the Mercury prospect, Devon
recommends that the parties mutually agree to terminate the Agreement with no
further liability to either party, other than the continuing obligations
contained in Article 26 Confidential Data, of the Agreement.

Please indicate as to whether or not Ridgewood desires to continue to
participate in the Mercury prospect and agrees to extend the Agreement by
executing in the space provided for the appropriate option and returning one
original of this letter before 4:00 PM on Monday, May 8, 2006. Should Ridgewood
not respond to this letter by May 8, 2006, Devon shall deem that Ridgewood no
longer desires to participate in the Mercury prospect, and that Ridgewood agrees
that the Agreement has terminated and is of no further force or effect except
for the continuing obligations of Article 26.

Should you have any questions or wish to discuss this letter, please contact
Chris Claeys at (713) 286 5862.

Very truly yours,

Devon Energy Production Company, L.P.

/s/ Christopher N. Claeys
Christopher N. Claeys

Enclosure (FYI Only copy of revised DVN AFE No. 119917)

<PAGE>

Option No. 1
------------

Ridgewood Energy Corporation hereby agrees to the following:

     1)   The Agreement is in full force and effect between the parties hereto;
     2)   To bear its promoted interest share of the OCS-G 3332 A-10 well costs
          to a limit of 120% of $11,957,000.00 (being $14,348,400.00), or a net
          $6,313,296.00 to Ridgewood of the estimated dry hole costs for such
          well unless Contract Depth is achieved prior to a gross well cost of
          $14,348,400.00 has been expended, and thereafter bear 33% of total
          well costs.
     3)   The Contract Spud Date referenced in Article 2 of the Agreement is
          hereby amended from December 31, 2005 to on or about October 1, 2006.
     4)   Except as amended herein, the Agreement remains in full force and
          effect as presently written.

Agreed to and accepted this 4th day of May, 2006.

Ridgewood Energy Corporation

By: /s/ Randy Bennett
Name:   Randy Bennett
Title:  Land Manager

Option No. 2
------------

Ridgewood Energy Corporation hereby declares that it has no further desire to
participate in the Mercury prospect well (OCS-G 3332 A-10) and hereby mutually
agrees to terminate the Agreement with no further liability to either party
hereto, provided, however, that Article 26 of the Agreement shall continue in
effect. Ridgewood further agrees that it has no further claim, option, right or
obligation to participate in the drilling of, production from, revenues
generated by, or costs and expenses incurred for such well, whether said well is
drilled by Devon or any other party, either now or in the future.

Agreed to and accepted this _____ day of May, 2006.

Ridgewood Energy Corporation

By:   ___________________________
Name: ___________________________
Title:___________________________Form of Guaranty of Deer Valley Corporation and 21st Mortgage Corporation

    EXHIBIT
      10.30

    
      Secretary
CERTIFIED
      COPY OF BOARD
      OF
      DIRECTORS RESOLUTIONS

    (Guarantor)

    

    The
      undersigned hereby certifies that the undersigned is the duly elected and acting
      Secretary or Assistant Secretary of Deer Valley Corporation, a Florida
      corporation (the "Corporation" and that the following resolutions were passed
      at
      a meeting of the Board of Directors of said corporation held on
      February 12th 2007 duly
      called,
      a
      quorum being present, and that said resolutions have not since been revoked
      or
      amended:

    

    "WHEREAS,
      Deer Valley Homebuilders, lnc. ("Principal") desires to, from time to time,
      exercise its rights under the Manufacturer
      Agreement dated Mav
      25, 2006,
      between
      215`
      Mortgage
      Corporation (21st) and Principal, in the furtherance of its business;
      and

    

    WHEREAS,
      21st
      is,
      under certain terms and conditions, agreeable to fulfilling obligations owed
      to
      Principal under the Manufacturer Agreement, one of said conditions being that
      this Corporation unconditionally and absolutely jointly and severally, guarantee
      the full, faithful and prompt performance, payment, and discharge by Principal
      of all of its obligations from time to time outstanding to 21st
      in
      connection with or arising out of the Manufacturer Agreement and other financial
      accommodations from 21st
      and the
      directors of this Corporation have examined and approved the form of Guaranty
      ("Guaranty") 21st
      wants
      this Corporation to sign.

    

    NOW
      THEREFORE, BE TT RESOLVED, that in the judgment of this Board of Directors,
      this
      Corporation has an interest in the business and financial affairs of Principal
      and it will be in the best interest of, in furtherance of, and necessary to
      the
      business and corporate purposes of and to the pecuniary advantage of this
      Corporation that Principal be able to exercise rights under the Manufacturer
      Agreement.

    

    RESOLVED,
      that the President, Treasurer, Secretary or any Vice President, Assistant Vice
      President, Assistant Treasurer or Assistant Secretary of this Corporation,
      or
      their duly elected or appointed successor in office, by and each hereby is
      authorized
      and empowered
      (either alone or in conjunction with any one or more of such officers of this
      Corporation) in the name and on behalf of this Corporation to unconditionally
      and absolutely jointly and severally guarantee to 21st
      the
      full, faithful and prompt performance, payment and discharge by Principal of
      all
      of its present and future obligations to 21stin
      connection with or arising out of the Manufacturer Agreement by executing and
      delivering to 21st
      the
      Guaranty with such changes therein as 21st
      may
      require and as such officer executing the Guaranty may deem advisable, and
      to
      make, execute and deliver all instruments and agreements deemed necessary or
      proper by 21st`
      and
      to
      affix the seal of this Corporation to any instruments or agreements if so
      required or requested by 21st

    

    RESOLVED,
      that the Guaranty and any other instruments, agreements or documents executed
      pursuant to these resolutions by any officer of this Corporation may be in
      such
      form and contain such terms, provisions, representations and warranties as
      they
      shall in their sole discretion determine.

    

    RESOLVED,
      that all acts and deeds heretofore done by any of such officers of this
      Corporation for and on behalf of this Corporation in entering into, executing,
      acknowledging or attesting the Guaranty, or any other instruments, agreements
      or
      documents, or in carrying out the terms and intentions of these resolutions
      are
      hereby ratified, approved and confirmed.

    

    RESOLVED,
      that the secretary or any other officer of this Corporation shall file with
      21"
      a certified copy of these resolutions and a list of the names of the officers
      of
      this Corporation, and of any changes in such officers, and 21st
      shall be
      entitled to conclusively assume that these resolutions remain in full force
      and
      effect and that all persons so named as officers of this Corporation are and
      continue to be such officers, except and until, 21"
      shall be
      otherwise notified in writing by the Secretary or any other officer of this
      Corporation."

    

    I
      do
      further certify that the following are officers of this
      Corporation:

    

    President:
      Charles
      G. Masters Secretary:
      Charles G. Masters

    Vice
      President ________________________  
      Treasurer___________________________

    

    I
      do
      further certify that this Corporation is in good standing in all jurisdictions
      in which it is required to be qualified to do business and that the execution
      of
      the Guaranty is not in violation of the charter, by-laws or agreements of this
      Corporation.

    

    WITNESS
      my hand and the
      seal of this corporation on
      this
13th  day of February, 2007.

     

     

                                                /s/
      C. G.
      Masters                    

                                                Secretary

                    

     

    (Corporate
      Seal)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       
GUARANTY

    
 

    TO:
      2lsT
      MORTGAGE
      CORPORATION

     
      600 MARKET STREET, SUITE 100 

         
KNOXVILLE,
      TN 37902

     

    In
      consideration of the rights owed to Deer
      Valley Homebuilders, Inc., its
      successors and assigns (hereinafter called "principal debtor"), under the
      Manufacturer Agreement dated May
      25, 2006, between
      21st
      Mortgage Corporation and Deer Valley Homebuilders, Irtc., whether
      now outstanding or made in the future, for the financing of goods, wares,
      merchandise and services, the undersigned guarantor hereby unconditionally
      guarantees payment of whatever sums said principal debtor shall at any time
      owe
      you or any company affiliated with you, whether heretofore or hereafter
      incurred, including interest, finance charges or service charges thereon, and
      including reasonable attorneys' fees and all court costs incurred in collecting
      each sums; and you shall be under no obligation of due diligence to enforce
      any
      claims against the principal debtor or of otherwise exhausting any of your
      remedies against the principal debtor, any other obligor or any other guarantor,
      or of enforcing any rights against any collateral for said indebtedness prior
      to
      enforcing payment hereunder by the undersigned guarantor.

     

    This
      guaranty is to take effect without notice of its acceptance, which notice is
      hereby waived, and is to be continuing guaranty in full force and effect until
      the effective date of a written notice of revocation delivered to you either
      personally or by Registered or Certified mail. It is understood and agreed
      that
      the effective date of any revocation shall be 90 days after your receipt of
      such
      notice, and that such revocation shall not discharge the obligation of the
      undersigned guarantor with respect to indebtedness incurred by the principal
      debtor prior to said effective date of revocation.

    

    You
      are
      hereby authorized to change the time and manner of payment of any indebtedness
      of said principal debtor; to take and make changes in notes, security or other
      obligations therefore to add or release additional guarantors; to obtain or
      release additional guaranties; to take such action as you deem advisable for
      the
      enforcement, collection, or compromising of any such indebtedness or any part
      thereof, or enforcing any security interest therefore; and to grant renewals
      or
      extensions of the time of payment of any such indebtedness, all without
      notifying or obtaining the consent of the undersigned guarantor or in any way
      affecting the consent of the undersigned guarantor under this
      guaranty.

    

    Protest
      and demand upon the principal debtor, notice to the undersigned guarantor of
      defaults of the principal debtor, notice to the undersigned guarantor of your
      extension of credit from time to time to the principal debtor, and notice of
      the
      sale of any collateral are all hereby waived.

    

    The
      undersigned guarantor hereby consent and agree that your books and records
      showing the account, obligations, and indebtedness of the principal debtor
      shall
      be admissible in evidence and shall be binding upon the undersigned guarantor
      for the purpose of establishing the items therein set for the, and shall
      constitute prima facie proof thereof. The undersigned guarantor hereby also
      agree to provide full and complete personal financial information at such times
      as the Company may request.

     

    The
      undersigned guarantor hereby subordinates any sums now or hereafter due to
      any
      or all of them from the principal debtor to the payment of any sums now or
      hereafter due you from the principal debtor. The undersigned guarantor further
      assigns to you all sums due or to become due to any or all of them from the
      principal debtor to the extent of the aggregate obligations of the undersigned
      guarantor to you, and agrees to execute any further instruments necessary to
      evidence such assignment.

     

    This
      guaranty shall inure to the benefit of your successors and assigns and shall
      be
      binding upon the personal representatives, administrators, trustees, executors,
      heirs, legatees, successors and assigns of the undersigned
      guarantor.

    

    The
      foregoing constitutes the complete guaranty agreement, there being no other
      representations or warranties made, and such guaranty cannot be altered, changed
      or amended in any way except by an instrument in writing signed by your duly
      authorized officer.

    

    The
      undersigned agrees that if a dispute between you and the principal debtor is
      being arbitrated, the responsibility of Guarantor will be included in the same
      arbitration, subject to the same rules and procedures governing the arbitration
      between you and the principal debtor.

    

    BY
      AFFIXING SIGNATURE HERETO, THIS CERTIFIES THAT THE UNDERSIGNED HAS READ THIS
      GUARANTY AGREEMENT IN ITS ENTIRETY AND EXECUTES IT FOR THE CONSIDERATION THEREIN
      EXPRESSED.

    Dated
      at
offices
      of Bush Ross, P. A. Tampa Florida

     

    this
      13th
      day
      of February
      2007

     

    Witness:                                                     Guarantor

                                                        

                                                        /s/
      C. G.
      Masters                    

                                                        Signature

    
                                                         
Company
      Name
 Deer
      VaIley Corporation

     

    Address                                                  
Title
      __________________________

     

    Witness:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]