Bayshore Exploration L.L.C. Letter To Paxton Energy, Inc., Dated July 21, 2008, Re: Amendment of Exp

Bayshore Exploration L.L.C. P. O. Box 429
Bellville, TX 77418
Phone (979) 865-9924
Fax (979) 865-9322
bayshoreexpl@sbcglobal.net


July 21, 2008



Paxton Energy, Inc.

Attn: Rob Freiheit

4120 Douglas Blvd.

Suite 306-428

Granite Bay, CA 95746






RE: Amendatory Letter Agreement
Exploration Agreement dated March 1, 2006
Cooke and Storey Ranch Prospects
La Salle County, Texas






Gentlemen:



Reference is made to that certain Exploration Agreement dated March 1, 2006 by and between Bayshore Exploration L.L.C. ("Bayshore") and Paxton Energy, Inc. ("Paxton") pertaining to the Cooke and Storey Ranch Prospects located in La Salle County, Texas. This letter is written to amend and confirm said Exploration Agreement with the following changes:



1. Bayshore is the operator of certain oil and gas wells and leasehold interests in which Paxton participates as a working interest owner. Bayshore and Paxton have reviewed past due invoices on t ...