EX-10.16 3 ex10-16.txt AMENDMENT TO PURCHASE AND SALE AGREEMENT DATED NOVEMBER 2, 2005 Exhibit 10.16 November 2, 2005 VIA E-MAIL AND FACSIMILE Mr. Gerald W. Green XXXXXXXXXXXXX XXXXXXX XXXXXXXXXXXX Phone: XXX-XXX-XXXX Fax: XXX-XXX-XXXX RE: AMENDMENT TO PURCHASE AND SALE AGREEMENT Dear Mr. Green: Your signature on the line designated below will signify your agreement to the herein described amendments to the Purchase and Sale Agreement between Mr. Gerald W. Green and New Century Energy Corp. ("NCEY") dated November 1, 2005. If these amendments reflect your agreement with NCEY then sign on the line provided and return a copy of this letter with your original signature to me at the address on the letterhead. The Purchase and Sale Agreement is amended as follows: 1. The Closing Date is January 3, 2006. 2. The Effective Date of the conveyance shall remain October 1, 2005. However, the net revenue for the month of October, 2005, shall be split equally between Seller and Buyer. 3. Buyer will wire Seller a deposit in the amount of 10% of the purchase price, $189,000.00, on November 2, 2005. This deposit shall only be refundable to Buyer in the event that Seller does not have clear title to his interest at time of closing. The state of title shall be verified by Buyer by reviewing the real property records of McMullen County, Texas prior to the Closing Date. 4. Buyer will be responsible for all AFE charges for the new proposed LH #9 well that will spud in the next 30 days. Any charges for the #9 well paid in advance by Seller prior to October 1, 2005, will be reimbursed to Seller by Buyer as part of closing. Buyer will also be responsible for all AFE charges from the date of this Letter Agreement for the workover of the #4 well. Any charges paid by Seller from this date forward will also be reimbursed to Seller by Buyer as part of closing. 5. Any unused credits on Seller's LOE statement as of October 1, 2005, with U.S. Enercorp, Ltd. for drilling the #11 and Fee #1 wells will be refunded to Seller by Buyer at closing. Do not hesitate to call me if you have any questions or comments regarding these matters. Otherwise, I thank you in advance for your cooperation. Very truly yours, /s/ J. Kevin Raley J. Kevin Raley Amendment to Purchase and Sale Agreement Agreed to and Accepted: /s/ Gerald W. Green /s/ Edward R. DeStefano ---------------------- -------------------------- Gerald W. Green Edward R. DeStefano President & CEO New Century Energy Corp. cc: Mr. Lee Vendig The Law Office of Lee D. Vendig 5949 Sherry Lane, Suite 1700 Dallas, Texas 75225 Via E-mail and Facsimile