102 DALLAS STREET
P.O. BOX 49
ARGYLE, TX 76226
Re: D-Mil Production, Inc.- Smith-Boswell #1 and Steinbach Unit #1
This letter sets out our agreement relative to the above referenced oil and gas property more specifically
SMITH-BOSWELL #1 - 43.7342 Acre Unit in the Ruth Mackey Survey, Abstract 47, Bastrop County, Texas,
STEINBACH UNIT #1 - 40.32 Acre Unit in the Ruth Mackey Survey, Abstract 47, Bastrop County, Texas,
1. D-Mil Production, Inc. agrees to sell and you agree to purchase 49.50% working interest in the above
described property. The net revenue interest relative to the working interest is 38.61%.
2. D-Mil Production, Inc. shall execute, record and deliver an assignment of your interest in the well and
property. Said assignment shall convey your interest as a working interest.
3. All operations of said lease shall be conducted under an AAPL Form 610-1982 Operating Agreement, a copy
of which will be provided.
4. Nothing in this letter or in said operating agreement creates any mining or other partnership or joint venture.-
The liability of the parties is several and not joint or collective.
5. The undersigned represents that they have such knowledge and experience in financial and business matters so
as to be capable of evaluating the merits and risks of this investment and that they have the financial resources
sufficient to bear the same.
6. These oil and gas interests are offered in reliance upon the exemptions provided for under Section 4  of the
Securities Act of 1933, As Amended, and Regulations D promulgated thereunder the similar exemptions by State
7. The undersigned hereby constitutes and appoints D-Mil Production, Inc. as their true and lawful attorney-in-
fact for them and their name, place and stead and for its use and benefit to execute, acknowledge, swear, certify,
verify, deliver, record, file and publish as necessary or advisable all gas purchase con