August 4, 2009 Mr. James C. Einarsen, Manager Viking Exploration, LLC Littleton, CO 80128
EXHIBIT 10.15
August 4, 2009
▇▇. ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Manager
Viking Exploration, LLC
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇.
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
RE: Option to Purchase Okie Draw
and South Okie Prospects,
Natrona County, Wyoming
Dear ▇▇. ▇▇▇▇▇▇▇▇:
This letter will serve as a formal agreement between Empire and Viking with respect to Empire’s option to purchase all of Viking’s leasehold and producing interests in the Okie Draw and South Okie Prospects, a description of which is attached hereto as Schedule “A”.
As consideration to Empire for paying the lease rentals due August 31, 2009 and September 30, 2009 on leases listed on Schedule “A” and paying Viking a Twenty Five Thousand Dollars ($25,000) cash payment, Viking will grant Empire a six (6) month option commencing September 1, 2009 and ending February 28, 2010, to acquire all of Viking’s interests in the leases listed on Schedule “A” for the cash consideration of Thirty Five Thousand Dollars ($35,000). In addition to receiving the cash consideration Viking shall retain the overriding royalties as outlined in Exhibit “A”.
During such six (6) month option period Empire will make every effort to locate and purchase the seismic survey conducted by Southland Royalty Corp or its successor in ownership. Perhaps this data cannot be located; if not, Empire will research the cost of a new survey.
In the event Empire exercises its option and drills a test well and any additional development ▇▇▇▇▇, Empire will pay to Viking Ten Thousand Dollars ($10,000) for each completed oil well.
If Empire has not drilled or re-entered a test well on the prospect leases before August 1, 2010 and has no plans to drill or re-enter a test well it shall re-assign all of the prospect leases to Viking. If it has drilled a successful oil well or plans to drill or re-enter a test well then it shall pay the August 31, 2010 rentals to retain the leases in good standing.
This proposal is open for acceptance until 5:00 p.m. Thursday, August 6, 2009; therefore, if you find it acceptable please sign and return one copy of this letter to Empire.
Yours very truly,
EMPIRE PETROLEUM CORPORATION
___________________________________
BY: ▇. ▇. ▇▇▇▇▇▇▇▇▇, PRESIDENT
AEW/gs
Enclosures
Agreed to this 5th day of
August, 2009
VIKING EXPLORATION, LLC
_______________________________________
BY: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, MANAGER
| SCHDULE "A" | ||||||||||||
| SOUTH OKIE DEVELOPMENT PROJECT - LEASE AND ▇▇▇ SCHEDULE - T37N R85W, | ||||||||||||
| NATRONA COUNTY, WYOMING | ||||||||||||
| % ▇▇▇ | EXPIRATION | |||||||||||
| LEASE NO. | NO. | RETAINED | % NRI | DATE OR | ||||||||
| & ACREAGE | OF | EXISTING | BY | TO | LEASE | |||||||
| DESCRIPTION | ACRES | OWNERSHIP | ▇▇▇'▇ | VIKING | PURCHASER | STATUS | ||||||
| W-36587 | 40 | Viking 100% | ▇▇▇▇▇▇ et al 1% | 92.50% | HBP | |||||||
| Sec. 14: SE/4SW/4 | ▇▇▇▇▇▇▇▇▇ et al 1% | 5.50% | Less SSR* | |||||||||
| (segregated from Okie | (76% at 150 | |||||||||||
| Draw Unit) | BOPD) | |||||||||||
| Competitive Lease | ||||||||||||
| W-153586 | 1800 | Viking 100% | 0% | 5.00% | 78.33% | 8/31/2011 | ||||||
| Sec. 15: SW, SWSE | ||||||||||||
| 22: All | ||||||||||||
| 23: S/2SW | ||||||||||||
| 25: NENE, | ||||||||||||
| NWNW, | ||||||||||||
| S/2N/2, S/2 | ||||||||||||
| 26: N2 | ||||||||||||
| WYW-174767 | 720 | Viking 100% | 0% | 5.00% | 82.50% | 9/30/2017 | ||||||
| Sec. 23: E/2NE, NW, | ||||||||||||
| N/2SW, SE | ||||||||||||
| 24: NW, N/2SW | ||||||||||||
| Note: *SSR=Competitive Lease - Sliding Scale Royalty under USGS known geologic structures. USGS's ▇▇▇'▇ vary from 12.5% for 50 BOPD up to 25.0% for 400 | ||||||||||||
| BOPD | ||||||||||||
| SCHDULE "A" | ||||||||||||
| SOUTH OKIE DEVELOPMENT PROJECT - LEASE AND ▇▇▇ SCHEDULE - T37N R85W, | ||||||||||||
| NATRONA COUNTY, WYOMING | ||||||||||||
| % ▇▇▇ | EXPIRATION | |||||||||||
| LEASE NO. | NO. | RETAINED | % NRI | DATE OR | ||||||||
| & ACREAGE | OF | EXISTING | BY | TO | LEASE | |||||||
| DESCRIPTION | ACRES | OWNERSHIP | ▇▇▇'▇ | VIKING | PURCHASER | STATUS | ||||||
| W-36587 | 40 | Viking 12.5% | ▇▇▇▇▇▇ et al 1% | 92.50% | Okie Draw | |||||||
| Sec. 14: SW/4SE/4 | ▇▇▇▇▇▇▇▇▇ 87.5% | ▇▇▇▇▇▇▇▇▇ et al 1% | 3.50% | Less SSR* | 1-4 well is | |||||||
| Communitiezed with | (76.5% at | producing and | ||||||||||
| Sec. 23: N/2NW/4NE/4 | 150 BOPD | holds by | ||||||||||
| production | ||||||||||||
| both leases | ||||||||||||
| W-36587 & | ||||||||||||
| W-0323746 | ||||||||||||
| The above 40 acre tract contains the Okie Draw 1-14 well which has produced 114,088 Bbls. Oil as of Nov., 2005. The Okie Draw | ||||||||||||
| Unit was contracted to 60 acres shortly after 4/12/1979 and contains the SW/1/4 SE1/4 Sec. 14 and the N1/2 NW1/4 NE1/4 Sec. 23. | ||||||||||||
| The 1-14 well and the 560 gross acres it holds by production, (87.5% Working Interest) can be acquired by PURCHASER of this | ||||||||||||
| deal by dealing directly with ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ in Casper, Wyoming. | ||||||||||||
| W-36587 | 160 | Viking 12.5%* | ▇▇▇▇▇▇ et al 1% | 3.50% | 92.50% | Competitive | ||||||
| Sec. 14: N/2 SW/4, | ▇▇▇▇▇▇▇▇▇ 87.5% | ▇▇▇▇▇▇▇▇▇ et al 1% | Less SSR* | Lease - HBP | ||||||||
| SW/4 SW/4, | ▇▇▇▇▇▇▇▇▇ 2% | (76.5% at | (Held by | |||||||||
| W/2 SE/4 | 150 BOPD | Production) | ||||||||||
| Sec. 15: N/2 SE/4, | 120 | |||||||||||
| SE SE/4 | ||||||||||||
| W-0323746 | 160 | Viking 12.5% | ▇▇▇ ▇. Hose 1% | 4.50% | 80.00% | Non | ||||||
| Sec. 14: S/2 NW/4, | ▇▇▇▇▇▇▇▇▇ 87.5% | ▇▇▇▇▇▇▇▇▇ 2% | Competitive | |||||||||
| E/2 SE/4 | Lease - HBP | |||||||||||
| (Held by | ||||||||||||
| Production) | ||||||||||||
| Sec. 23: W/2 NE/4 | 80 | Viking 12.5% | ▇▇▇ ▇. Hose 1% | 4.50% | 80.00% | N/2 NW/4 | ||||||
| ▇▇▇▇▇▇▇▇▇ 87.5% | ▇▇▇▇▇▇▇▇▇ 2% | NE/4 is | ||||||||||
| Communitized | ||||||||||||
| with Sec. 14: | ||||||||||||
| SW/4 Se/4 | ||||||||||||
| HBP (Held by | ||||||||||||
| Production) | ||||||||||||
| TOTAL | 3,120 gross acres | |||||||||||
| 2,630 net acres | ||||||||||||
| Viking's Acreage for sale: 100% Working Interest under 2560 gross and net acres plus Viking's 12.5% Working Interest under 560 | ||||||||||||
| acres. (70 net acres) plus 1/8 interest in Okie Draw 1-14 well. (See terms of the Deal) | ||||||||||||