Oil Sands Lease Acquisition Election Agreement between Premium Petroleum Inc. and Micron Enviro Systems Inc.
Premium Petroleum Inc. informs Micron Enviro Systems Inc. of its acquisition of an oil sands lease and offers Micron the option to acquire a 3% share for $8,406.39. Micron must decide within seven days whether to participate and, if so, pay its share within an additional seven days. If Micron fails to pay on time, it forfeits its right to the lease. This agreement is tied to a prior Farmout Agreement between the parties.
Premium Petroleum Inc.
1610, 736 – 6th Avenue SW
Calgary, Alberta T2P 3T7
Voice: ###-###-#### Fax: ###-###-####
***@***
May 24, 2006
via e-mail: ***@***
Micron Enviro Systems Inc.
1205 - 789 West Pender Street
Vancouver BC V6C 1H2
Attention: Bernie McDougall, President
Dear Sir:
Re: Acquisition of Oil Sands Lease, N½ 15 61-11 W4M
The purpose of this letter is to advise that Premium Petroleum Inc. has acquired an Oil Sands Lease over the captioned lands. The lease was acquired in order to test and if successful, produce oil from the oil sands interval in the joint well at 15-11-61-11 W4M. The cost of acquiring this lease is $280,212.84.
These lands fall within our Area of Mutual interest as set forth in Clause 8 of our agreement of February 6, 2006 (the “Farmout Agreement”).
Your share of the costs of this acquisition amounts to $8,406.39 ($280,212.84 x 3%).
In accordance with clause 8.04 of the Farmout and Royalty Procedure attached as Schedule “B” to the Farmout Agreement you have seven (7) days from receipt of this letter to elect to participate in the acquisition of these mineral rights and if you so elect, a further seven (7) days to pay your share of the cash consideration for the acquisition.
Kindly indicate your election by completing the selection area as set forth below and returning the duplicate copy of this letter to the undersigned within the time frame as herein specified. Be advised that if you elect to participate but do not pay your share of the cash consideration within the time frame as herein specified, your election to participate will be voided and you will have no rights to the Oil Sands Lease herein offered.
Yours very truly,
Premium Petroleum Inc.
Per: /s/ Bruce A. Thomson
Bruce A. Thomson, B.A.Sc.
President & CEO
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Micron Enviro Systems Inc. hereby elects:
_X__
To acquire its 3% share of the Oil Sands Lease
____
Not to acquire its 3% share of the Oil Sands Lease
Dated this _29th _ day of May, 2006
Micron Enviro Systems Inc.
Per: /s/ Bernard McDougall
Name: Bernie McDougall
Tel: 604 ###-###-####
***@***
Fax: 604 ###-###-####
Title:
President
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