Letter of Commitment Between Fox Petroleum Inc. and Senergy Limited Regarding Rig Assignment

Summary

Fox Petroleum Inc. and Senergy Limited have entered into a commitment letter in which Senergy agrees to assign a drilling rig to Fox Petroleum, subject to finalizing negotiations with the rig owner and contract terms. In return, Fox Petroleum agrees to comply with the letter's terms and pay Senergy 1.75% of the operating rig rate if they use the rig without Senergy's project management services. The agreement is governed by English law and any disputes will be settled in English courts.

EX-10.2 3 exhibit10-2.htm LETTER OF COMMITMENT WITH SENERGY LIMITED Filed by Automated Filing Services Inc. (604) 609-0244 - Fox Petroleum Inc. - Exhibit 10.2




6.

On Senergy’s formal acceptance of this Letter of Commitment, Senergy commits the Assignment of the Rig to us, subject to Senergy finalising negotiations with the Rig owner and contracting the Rig, our compliance with the terms of this letter and sufficient duration remaining in the term of that contract to carry out our well programme.

     
7.

In consideration of Senergy incurring time and expense in negotiating rights to provide the Rig, we undertake to Senergy, with the intention that such undertakings shall constitute legal obligations binding on us, as follows:

     
a)

to procure compliance for the duration of this letter of commitment with the provisions of this letter by ourselves and the employees, agents and advisers of ourselves and our affiliates;

     
b)

in acknowledgement of the value provided to us with this rig opportunity, to pay Senergy 1.75% of the operating rig rate, for the duration of the use of the rig under the contract referenced in item 1a) above, if we use the rig, but do not use Senergy’s integrated project management services as outlined in the documents referenced in item 1b) above.

     
8.

This letter (including in particular the undertakings set out in paragraphs 1, 5, 6 and 7 shall be construed in accordance with and government by the laws of England and we irrevocably submit to the exclusive jurisdiction of the English courts to settle any disputes which may arise out of or in connection with this letter.


Yours faithfully    
  Richard Moore Name
/s/ Richard Moore CEO & President Position
  15th April 2008 Date
Signature    
For and on behalf of Fox Petroleum Inc.    
Accepted    
  Ian Williamson Name
/s/ Ian Williamson Director Position
  5 May 2008 Date
Signature    
For and on behalf of Fox Petroleum Inc.