Contract
Exhibit
10.8
Letter
Agreement between Altus Explorations, Inc. and CodeAmerica Investments LLC
dated
November 9, 2005 reference Altus’ “carried” working interest in Oakcrest
Prospect, Xxxxxxx County, Texas.
CodeAmerica
Investments, LLC
0000
Xxxxxxxxxx Xxxx, Xxxxx 000 - Xxxxx Xxxxxx, Xxxxxxxxxxx 00000
Telephone:
000-000-0000
Fax:
000-000-0000
On
July
6, 2004, CodeAmerica Investments, LLC (“CodeAmerica”) and Altus Explorations,
Inc. (“Altus”) entered into a Letter of Intent for Altus to acquire from
CodeAmerica its interests in certain Xxxxxx formation oil and gas leases
associated with acreage located in Xxxxxxx County, Texas. A definitive purchase
and sale agreement between CodeAmerica and Altus was never consummated, nor
did
Altus remit the required purchase price payment of $210,250 to CodeAmerica.
CodeAmerica
is proceeding with the development of the Xxxxxx formation associated with
the
oil and gas leases covered in the original Letter of Intent. During the year
2004, Altus incurred certain front end development and evaluation costs in
its
review of the prospective oil and gas lease acreage. This Letter Agreement
when
executed by the undersigned Parties will set forth the Terms and Conditions,
and
the mutual understanding and agreement between Parties associated with Altus’
economic interest in the development of the applicable leasehold acreage.
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1.
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Subject
Deveopment:
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X.
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Xxxxxxxx
Lease - The
drilling and development of the initial four xxxxx in the Xxxxxx
formation
676+
acres located in the A. Edgar Survey 93, and the X. Xxxxxx Survey,
Abstract 9 in Xxxxxxx County,
Texas.
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2.
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Carried
Working Interest:
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CodeAmerica
grants to Altus a 2.0% (two-percent) Carried Working Interest in the drilling,
development and completion of the initial four (4) Xxxxxx formation xxxxx
drilled on the Xxxxxxxx lease. Upon the completion of drilling a Xxxxxx
formation well, Altus acknowledges and agrees that it will be responsible for
its proportionate share of all operating costs and capital expenditures
requirements.
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3.
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Net
Revenue Interest:
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The
four
xxxxx and acreage are subject to various mineral lease owner and overriding
royalty burdens totalling 23.75%. Altus’ net revenue interest associated with
its 2% Carried Working Interest will total 1.525% of revenues derived from
the
sale of oil and natural gas production, from the initial four xxxxx developed
on
the Xxxxxxxx Lease.
Accepted
and agreed to the 9th
day of
November, 2005.
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/
s
/ Wm. Xxxxxx Xxx
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/
s
/ Xxxxxx Nastat
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||
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CodeAmerica
Investments, LLC
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Altus
Explorations, Inc.
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X.
Xxxxxx. Xxx, Chairman and CEO
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Xxxxxx
Nastat, President
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