J U N E A U E X P L O R A T I O N L . P .
Exhibit 10.57
J U N E A U E X P L O R A T I O N L . P .
▇▇▇▇ ▇. ▇▇▇▇▇
Vice President-Land e-mail: ▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇
June 8, 2012
Contango Operators, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇
Re: ▇▇▇ ▇▇▇▇ County Exploration Agreement
Dear ▇▇. ▇▇▇▇▇▇,
Juneau Exploration L.P. (▇▇▇) has provided to Contango Operators, Inc. (COI) a copy of a letter agreement dated May 11, 2012 between ▇▇▇ and a third party (Letter Agreement) outlining the general terms and provisions of an exploration program involving horizontal exploration of the Upper and Lower Queen City Horizons and the Yegua Horizon within the Area of Mutual Interest described on Exhibit “A” attached thereto.
COI by its execution herein below, hereby agrees to enter into this agreement with ▇▇▇ to assume all of the benefits as well as all of the risks, expenses and liabilities of ▇▇▇ in the above described Letter Agreement.
As consideration, COI hereby agrees ▇▇▇ shall be entitled to receive a 10% carried working interest through the tanks, proportionately reduced to COI’s working interest, on all of the promoted ▇▇▇▇▇ provided for in the Letter Agreement after COI has received payout of their original investment costs on a well by well basis. On the unpromoted ▇▇▇▇▇ provided for in the Letter Agreement, COI hereby agrees ▇▇▇ shall receive a 10% carried working interest through the tanks, proportionately reduced to COI’s working interest.
As an example, on promoted ▇▇▇▇▇, COI shall pay 90% of the costs to earn 50% working interest in the ▇▇▇▇▇. COI’s working interest in the unpromoted ▇▇▇▇▇ shall be 50% working interest. ▇▇▇’▇ 10% carry through the tanks shall be 10% of COI’s 50% or a 5% working interest. ▇▇▇ shall be entitled to receive its 5% working interest after the payout described above on the promoted ▇▇▇▇▇ and shall receive its 5% working interest on the unpromoted ▇▇▇▇▇ effective with the first production after the costs of drilling, fracing, completing and the installation of the flowlines, tank batteries and all costs to commence first production have been expended by COI.
Additionally COI agrees certain employees of ▇▇▇ shall be entitled to retain an overriding royalty interest of 2.5%, on the leases assigned or owned by COI, proportionately reduced to COI’s working interest.
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▇▇▇ and COI agree to enter into further contracts and documents, as necessary, in the event more agreements are entered into between ▇▇▇ and the third party to further define the terms and provisions of the Letter Agreement.
Please indicate your agreement to the above terms and conditions by executing below.
Sincerely,
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇
Vice President-Land
ACCEPTED AND AGREED
this 11th day of June, 2012.
CONTANGO OPERATORS, INC.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇
Vice President
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