EXHIBIT 10.1
OPTION PURCHASE AGREEMENT
(OPTION TO ACQUIRE OIL AND GAS LEASES IN JEFFERSON COUNTY, MISSISSIPPI)
American Exploration Corp.
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AND
Westrock Land Corp.
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It is understood that American Exploration Corp., and/or its affiliates,
(hereinafter referred to as "American") wish to acquire 5,000 net acres in
mineral oil and gas leases in the lands located in Jefferson County, in the
State of Mississippi, (hereinafter referred to as the "Acquired Properties")
from Westrock Land Corp., (hereinafter referred to as "Westrock"). It is has
been agreed to by Westrock and American that the Original Option Agreement (the
"Agreement") of November 3, 2008, except for the revisions contained within this
Option/Purchase Agreement, will remain in effect and all other conditions
contained within the Original Agreement dated November 3, 2008 will remain the
same.
American and Westrock have agreed to the following:
1. PURCHASE PRICE. The original agreed upon purchase price of the
Acquired Properties between Westrock and American was $3,125,000
(three million one hundred and twenty-five thousand dollars) in the
original Option Agreement dated November 3, 2008 (Appendix A).
Westrock to date has received from American $1,106,250 (one million
one hundred and six thousand two hundred and fifty dollars). Balance
owing by American to Westrock is $2,018,750 (two million and eighteen
thousand seven hundred and fifty dollars).
Westrock has agreed to accept common stock of American in exchange for
the balance owing of $2,018, 750. The price of the American common
stock will be issued at $0.50 (fifty cents) per share. The total
number of common shares to be issued to Westrock from American will be
4,037,500 (four million thirty-seven thousand five hundred) common
shares. The common shares are to be issued to Westrock no later than
August 31, 2009.
2. DRILLING OBLIGATION. American Agrees to drill and complete a minimum
of at least one well on the Acquired properties to the Haynesville
geological zone no later than December 31, 2010.
3. DEFAULT. In case of any default under Sections 1 or 2 of this
Option/Purchase Agreement by American, in addition to the removal of
American from the Acquired Properties, American shall automatically
forfeit and transfer all rights under this Option/Purchase Agreement
including but not limited to the Acquired Properties to Westrock, and
Westrock shall retain whatever payments may have been made under this
Option/Purchase Agreement and any and all improvements that have been
made to said Acquired Properties.
4. TRANSFERS/ASSIGNMENT. Westrock will transfer/assign title on Acquired
Properties upon receipt of common shares as per Section 1.
5. EFFECTIVE DATE, CLOSING. The parties will use their best efforts to
close no later than August 31, 2009.
AGREED TO AND ACCEPTED THIS 19TH DAY OF AUGUST, 2009
AMERICAN EXPLORATION CORP.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇▇▇, CEO
WESTROCK LAND CORP.
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
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▇▇▇▇ ▇▇▇▇▇▇, President