Document:

<PAGE>   1

EXHIBIT 10.1

                            PARTICIPATION AGREEMENT:
                             COALINGA NOSE PROSPECT

<PAGE>   2

EXHIBIT 10.1

                            PARTICIPATION AGREEMENT:
                             COALINGA NOSE PROSPECT

A.   Production Specialties Co. (Production) has entered into a farm out
     agreement dated January 1, 2001 with Greka AM Inc. (Greka) and Production
     has further farmed out to Brothers Oil and Gas Inc. (Brothers) a portion of
     the Greka farm out.

     Brothers hereby offers Talal Yassin or Assignee (Optionee) an option to
     participate in a 5% working interest in the farm out set out in Exhibit A
     attached on the following basis:

        a) Payment to Brothers of $22,500 US as a non-refundable deposit on
           signing this agreement

        b) Payment of $49,560 US on May 24, 2001. This final payment completes
           the exercise of the option and funds the estimated dry hole cost of
           the initial test well on the project.

B.   Brothers represents the following:

        a) Production has entered into a heads of agreement and farm out with
           Greka dated January 1, 2001

        b) Production has entered into a farm out agreement with Brothers dated
           March 19, 2001

        c) Terms of farm out to Brothers:

              1) Brothers pays $12,500 US to Production on signing

              2) Brothers pays $112,500 US to Production on completion of
                 satisfactory due diligence

              3) Brothers pays $495,600 US to Production prior to spudding the
                 initial test well

              4) Farmees earn as follows:

                    i.  Pool A:

                        Farmees pay 100% of the cost of the initial test well to
                        earn a 74% net revenue interest until payout of well.
                        After payout, Greka et al back in for a 25% working
                        interest leaving farmees with a 56.25% net revenue
                        interest. Subsequent wells in Pool A will be drilled on
                        a 75/25% heads up basis.

                    ii. Pool B:

                        Greka et al has the option to participate as to a 50%
                        working interest and farmees have the option to
                        participate as to a 50% working interest in a 75% net
                        revenue interest.

                                      -1-
<PAGE>   3

C.   All parties agree:

        a) To execute a mutually satisfactory 1982 AAPL Form 610 operating
           agreement naming Production or its nominee as operator. This
           agreement will contain "custom of the trade" provisions.

        b) To execute such other agreements as are deemed reasonable and
           necessary to implement the intent of these agreements.

D.   Optionees represent:

        a) They have received adequate information on which to base their
           participation.

        b) They agree that in the event of any failure to pay their share of the
           non-refundable, or initial test well payment, Brothers may, at its
           option, cancel these agreements and retain funds advanced as
           liquidated damages.

<TABLE>
------------------------------------------------------------------------------------------
<S>                                            <C>
Please execute one copy and mail to:           Send payments to:
Brothers Oil and Gas Inc.                      Brothers Oil and Gas Inc.
Box 31                                         C/O #910- 688 West Hastings St.
Saturna Island, BC                             Vancouver, B.C. , V6B 1P1
V0N 2Y0

Fax an executed copy to 250-539-5683           Or wire to:
                                               Bank of America, University Branch( 7161)
                                               4795 South Maryland Parkway
                                               Las Vegas, Nevada, 89119
                                               (702) 654-4120
                                               Transit # 122400724
                                               Account #000081822066
------------------------------------------------------------------------------------------
</TABLE>

Optionor
Brothers Oil and Gas Inc.

------------------------------------

Optionee
Talal Yassin or Assignee

/s/ Talal Yassin
------------------------------------

Address:      C/O #1208- 1030 West Georgia St., Van., B.C., V6E 2Y3
Telephone:    604-622-7900
FAX:          604-662-7950

                                      -2-
<PAGE>   4

                                    Exhibit A

Lessors: Greka AM and Nahama Energy

Acreage: 8000 acres+ located in Fresno County, California

Optionees: have full access to 3D seismic, conventional seismic, and other
geological data upon which to carry out due diligence.

Farm out terms (100%) interest

<TABLE>
     <S>                                                              <C>
     a) Non refundable deposit on signing agreement:                  $  50,000 US

     b) Payment for completion of satisfactory due diligence:         $ 300,000 US

     c) Estimated dry hole and lease payment due on May 25, 2001:     $ 991,200 US
                                                                      -------------
                                                                      $1,341,200 US
                                                                      =============
</TABLE>

Production Specialties or Nominee to be operator of this prospect.

Initial Test Well #1  (Pool A)

     a)  Optionees pay 100% working interest to earn 74% net revenue interest
         before payout. After payout, Greka et al back in for a 25% working
         interest and related net revenue interest.

     b)  On subsequent wells, in Pool A, drilling and earning will be on a heads
         up basis (75% working interest Optionees / 25% working interest Greka
         et al). Optionees will earn 56.25% net revenue interest before and
         after payout.

Initial Test Well #2  (Pool B)

     a)  180 days after the completion of a successful test well on Pool A, a
         second test well will be spudded with Optionees having a 50% working
         interest and Greka et al a 50% working interest

     b)  All subsequent wells on this pool will also be a 50/50 heads up basis

                                      -3-<PAGE>   1

EXHIBIT 10.2

                            BROTHERS OIL AND GAS INC.
                                  CASH CALL #2

<PAGE>   2

EXHIBIT 10.2

                                                                     May 1, 2001

                            BROTHERS OIL AND GAS INC.
                                     BOX 31
                          SATURNA ISLAND, B.C., V0N 2Y0
                       TEL: 250-539-5680 FAX: 250-539-5683

Talal Yassin or Assignee
C/O #1208- 1030 West Georgia St.
Vancouver, B.C. V6E 2Y3

Dear Sirs:  Cash Call

THE COALINGA NOSE PROSPECT

Production Specialties Co. and Brothers Oil and Gas Inc. have completed the due
diligence on the above prospect. We attach for your information:

     a)  Report of Mark Andersen

     b)  Lease Schedule

     c)  Land Platt

     d)  Joint Operating Agreement

     e)  Greka/Production Specialties Co. agreement dated January 1, 2001

     f)  Production Specialties Co., Brothers Oil and Gas Inc. and Olympic
         Resources agreement

In carrying out our examination of Leases, a number of curative issues arose,
which we are addressing; none materially affect the land block.

In our original proposal, we were informed that the leases carried a 20%
landowner royalty to which we added a 5% royalty for Production Specialties Co.
and Brothers Oil and Gas Inc.. On examination, some leases have less than a 20%
Landowner Royalty and some slightly more; we will therefore express the farmout
to you as Landowner Royalty plus 5% royalty.

A)   On the initial test well on Block 1, the farmees earn 74% net revenue
     before payout and 56.25% after payout. On development wells on block 1, the
     farmees earn 56.25% before and after payout (assuming Greka et al
     participate as to a 25% working interest.)

B)   On Block 2 leases, farmees pay 50% working interest to earn 37.5% net
     revenue interest (assuming Greka et al participate as to a 50% working
     interest)

(A) and (B) assume a 20% Landowner Royalty. If the Landowner Royalty is more or
less, the net revenue interest will vary accordingly.

                                      -1-
<PAGE>   3

We require your payment of $US 22,500 wired to BROTHERS OIL AND GAS INC. no
later than May 2, 2001:

                  ------------------------------------------
                   WIRE TO:
                   Bank of America, University Branch(7161)
                   4795 South Maryland Parkway
                   Las Vegas, Nevada, 89119
                   (702) 654-4120
                   Transit # 122400724
                   Account #000081822066
                  ------------------------------------------

We have commenced title work on Well #1 and expect to commence drilling June
1-15. Funds for this well will be required NO LATER THAN MAY 24, 2001.

Please acknowledge by signing below that you are aware that we are acquiring
additional acreage in the area of Mutual Interest, as well as modifying to our
benefit some currently held leases. Therefore until:

     a)  we have completed final documentation

     b)  you have been notified in writing that we have completed modification
         of the leases and/or completed additional lease agreements

any premature public announcements will cause financial loss to all parties and
the overall return on this project.

Please acknowledge receipt of and acceptance of this agreement and fax a
signature page to Brothers Oil and Gas at 250-539-5683

Brothers Oil and Gas Inc.

-----------------

--------------------------------------------------------------------------------

Talal Yassin acknowledges receipt of Cash Call May 1, 2001 and the accompanying
cash call conditions and disclosure and elects to proceed with the option to
participate.

/s/ Talal Yassin                                   Date   May 1, 2001
-------------------------------------------               -----------
TALAL YASSIN

--------------------------------------------------------------------------------

                                      -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]