Osage
Land Company Exhibit 10.1
P. O. Box
20772
Oklahoma City OK
731`56
Ph. (800)
330-8274
Fax (405)
216-9666
February 10, 2009
Verilink, Inc
Re:
Niobrara Gas Prospect
Yuma & Phillips Counties,
CO
Gentlemen:
This agreement will set out our agreement
regarding your acquisition of ninety percent (90%) of those certain
Oil and Gas Leases covering 3,912.3325 net mineral acres lying in
Phillips and Yuma counties in the State of Colorado (Leases), the
legal descriptions and copies of the leases which have been
previously provided to you:
1.
Osage Land Company (Osage) grants
Verilink, Inc. (Verilink) a six (6) month option to acquire ninety
percent (90%) of the Leases for $281,687.94 (3,912.3325 x .90 x
$80.00 per net mineral acre)
2.
Verilink must deliver by certified funds
$281,687.94 on or before July 10, 2009, or this option will expire
and Verilink will forfeit all rights under this agreement
including, but not limited to the consideration paid to Osage for
the option.
3.
Osage will deliver to Verilink the
undivided ninety percent (90%) interest in the lease subject to the
following:
a.
Osage will reserve from the Lease the
difference between 18% and current Lease burdens. It being
the intent to deliver to Verilink a net revenue interest of
eighty-two percent (82%).
b.
Verilink will carry Osage for a ten
percent (10%) working interest in the first well drilled on each
prospect on the Lease. This carry will include any seismic
cost associated with the prospect, including but not limited to
geophysical surveys, interpretation and other geological cost. This
carried interest will be proportionately reduced to
Verilink’s interest.
c.
Osage has the option to participate in
additional wells within a prospect with a ten percent (10%) working
interest this interest will be free of any seismic cost associated
with the prospect, including but not limited to geophysical
sur
