KAL ENERGY INC (KALG)

[OilStockReport]

This is what you are talking about right? Has management indicated any kind of timeline?

ITEM 1.01
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On April 12, 2010, KAL Energy, Inc., its subsidiary Thatcher Mining PTE, Ltd, PT Kubar Resources and Kangaroo Resources Limited (“KRL”) entered into a Cooperation Agreement (the “Agreement”) whereby, among other things the parties agee that:


KRL pays KAL Energy US$850,000.00;

KRL assigns KAL Energy an eight percent (8%) free-carried economic interest in the PT Graha Panca Karsa (“GPK”) project, which may be modified as KRL’s relationship to the project evolves (as detailed in the Agreement and the Deed of Assignment at Schedule 5 to the Agreement);

the parties will use their best efforts to secure the best commercial outcome for the GPK asset, such efforts which will include, but not be limited to, the procurement of a liquidity event for the GPK asset (as detailed in the Agreement);

KAL Energy, using all of its expertise and available data assists KRL in the effort to secure the best commercial outcome for the GPK asset;

KRL is granted a call option, exercisable 12 months from the date of this agreement, pursuant to which KRL can purchase KAL Energy’s interest in the GPK project for an additional $4 million, and which may be paid in tranches as delivery of the interests occurs pursuant to a timeline detailed in the Agreement; and

the parties enter into a Deed of Release, which is found at Schedule 3 to the Agreement, whereby (i) KAL Energy and Thatcher release Romo Nitiyudo Wachjo, KRL and GPK from all present and future liability and claims arising under or in connection with any existing agreement, as further detailed in the Deed of Release, (ii) KAL Energy and Thatcher agree to jointly and severally indemnify Romo Nitiyudo Wachjo, KRL and GPK against all present and future liabilities, losses or claims arising under or in connection with any existing agreement, as further detailed in the Deed of Release, and (iii) KAL Energy assigns its rights under current agreements to KRL, as further detailed in the Deed of Release.

The summary set forth above is qualified in its entirety by the Agreement attached hereto as Exhibit 99.1, which is incorporated herein by this reference.