Exhibit
10.3
Adventure Energy, Inc.
OIL, GAS & COALBED METHANE
LEASE
THIS AGREEMENT, made and entered into
this_______day of____________ , 20___ , by and between
_______________________________________________________________________________
_______________________________________________________________________________
party(s) of the
first part, hereinafter referred as Lessor(s); and Adventure
Energy, Inc. , 33 6 th Street S., St. Petersburg, Florida 33701,
hereinafter referred to as Lessee.
WITNESSETH: That the Lessor(s) for and in
consideration of the sum of One Dollar ($1.00) and other good and
valuable consideration, the receipt of which is hereby
acknowledged, and performance of the covenants herein has leased
and let, exclusively unto Lessee, the land hereinafter described
for the purpose of exploring, operating and producing oil, gas,
coalbed methane and related products, and the right of injecting
water and other fluids in to subsurface strata, with rights and
easements for laying and setting pipes, electric lines, tanks,
power houses, ponds, roadways and fixtures for producing, treating,
maintaining and caring for such products and such other rights and
privileges as are necessary, or convenient for the economical
operation alone or conjointly with neighboring land for oil, gas
and coalbed methane products, all that certain tract of land
situated in _________________County, State of Kentucky,
On the North by
the lands
of: ___________________________________________________________________________
On the East by
the lands
of:_____________________________________________________________________________
On the South by
the lands
of: ___________________________________________________________________________
On the West by
the lands of:
____________________________________________________________________________
This being the
same property conveyed to:
This lease
shall remain in force for a term of________(_______ ) year(s), and
as long thereafter as oil, gas and/or coalbed methane are produced
from the premises or operations by drilling or injection are
continued, or thereafter, to pay the Lessor(s) a delay rental at
the rate of Dollars ($_______ ) per acre per annum payable annually
in advance, beginning__________,______ , until, but not after, a
well yielding royalty to the Lessor(s) is drilled and oil, gas
and/or coalbed methane is marketed therefrom. For injection
purposes this lease shall continue in full force and effect, only
as to well(s) so used and ten (10) acres contiguous
thereto.
Lessee
covenants and agrees:
1. To deliver to the credit of Lessor(s),
free of cost, in the pipeline to which Lessee may connect
it’s well(s), a 1/8th part of all oil produced and saved from
leased premises, or at the Lessee’s option pay 1/8th of the
market price for oil of like grade and gravity prevailing on the
day such oil is run.
2. To pay to
Lessor(s) for all marketed gas or coalbed methane an amount equal
to 1/8th of the price received at the wellhead or meter
station.
3. If Lessor(s) owns a less interest than the
entire undivided fee, royalties and rentals shall be paid Lessor(s)
only in proportion the Lessor(s) interest bears to the
whole.
4. In the event of a dispute between Lessor(s)
and other claimants as to the right to receive payment of rents and
royalties, Lessee may continue it’s operations and deposit
same in an escrow account to be disbursed upon legal resolution of
the controversy.
5. The Lessee may use, free of cost, gas, oil,
coalbed methane and water produced on said land for it’s
operation thereon, except waters from wells of
Lessor(s).
6. Lessor(s) may use free of cost, gas for one
(1) house residential house upon the premises, however, this shall
apply only to Lessor(s) or their heirs who live on the leased
premises, no other individuals shall have free gas, which shall not
exceed one hundred and fifty thousand (150,000) cubic feet of free
gas per year, which shall be the Lessor(s) sole use for domestic
purposes only. Connection shall be made by a quali
