Letter Agreement Regarding Participation in Misener-Hunton Formation between New Source Energy Corporation and New Dominion, LLC
This agreement, effective December 1, 2011, is between New Source Energy Corporation and New Dominion, LLC (including Scintilla, LLC and affiliates). New Source elects to acquire 90% of New Dominion's collective interest in certain undeveloped oil and gas leaseholds in specified Oklahoma areas. The parties will enter joint operating agreements to share all costs, with leasehold costs set at cost plus 15%. The joint operating agreements will follow the terms of a prior agreement unless otherwise agreed. This arrangement outlines each party's rights and obligations for developing these oil and gas interests.
Exhibit 10.14
Kevin Easley
President and CEO
New Dominion, LLC
1307 South Boulder Avenue, Suite 400
Tulsa, Oklahoma 74119
| Re: | Election to participate in the Misener-Hunton formation in |
| T10 and 11N, R8E, and T12 and 13N, R5, 6, 7 and 8E |
Dear Kevin:
This letter will verify our agreement that, effective December 1, 2011, New Source Energy Corporation hereby elects to take and acquire ninety percent (90%) of New Dominion, LLC, Scintilla, LLC, and any of their affiliates’ collective combined interest in the Misener-Hunton formation for undeveloped leasehold now held or hereafter acquired by or through New Dominion, LLC in the following Townships and Ranges: T10 and 11N, R8E; T12 and 13N, R5, 6, 7 and 8E in the State of Oklahoma (the “New Contract Areas”).
The parties further agree that they will enter joint operating agreements as necessary to provide for the sharing of all costs in these New Contract Areas, including sharing of all leasehold costs at cost plus fifteen percent (15%) for all undeveloped leasehold taken in the New Contract Areas by New Dominion, LLC. Except as otherwise mutually agreed, the form and content of such joint operating agreements shall be identical in all material respects to that certain joint operating agreement dated August 1, 2011, among New Source Energy Corporation, Scintilla, LLC and New Dominion, LLC relating to the Luther area of mutual interest.
Sincerely,
| NEW SOURCE ENERGY CORPORATION |
| /s/ Kristian Kos |
| Kristian Kos |
| President |
| AGREED to the 27th day of February, 2012. |
| /s/ Kevin Easley |
| Kevin Easley |
| President and CEO |
| New Dominion, LLC |
| PO Box 1218 Oklahoma City, OK 73101 | ||
| tel ###-###-#### fax ###-###-#### newsource.com |
