CodeAmerica Investments, LLC Telephone: 662-890-7379 Fax: 662-893-7883 LETTER AGREEMENT
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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Subject Deveopment: |
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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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Carried Working Interest: |
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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Net Revenue Interest: |
The four xxxxx and acreage are subject to various mineral lease owner and overriding royalty burdens totalling 49%. Altus’ net revenue interest associated with its 2% Carried Working Interest will total 1.0200% 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/ W. Xxxxxx Xxx |
/s/ Xxxxxx Nastat |
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CodeAmerica Investments, LLC |
Altus Explorations, Inc. |
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X. Xxxxxx. Xxx, Chairman and CEO |
Xxxxxx Nastat, President | |||
