Agreement between Altus Explorations, Inc. and CodeAmerica Investments LLC
November 9, 2005 reference Altus’ “carried” working interest in Oakcrest
Prospect, Wharton County, Texas.
Germantown Road, Suite 100 - Olive Branch, Mississippi 38654
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 Wilcox formation oil and gas leases
associated with acreage located in Wharton County, Texas. A definitive purchase
and sale agreement between CodeAmerica and Altus was never consummated, nor
Altus remit the required purchase price payment of $210,250 to CodeAmerica.
is proceeding with the development of the Wilcox formation associated with
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
review of the prospective oil and gas lease acreage. This Letter Agreement
executed by the undersigned Parties will set forth the Terms and Conditions,
the mutual understanding and agreement between Parties associated with Altus’
economic interest in the development of the applicable leasehold acreage.
Lease - The
drilling and development of the initial four wells in the Wilcox
acres located in the A. Edgar Survey 93, and the J. Borden Survey,
Abstract 9 in Wharton County,
grants to Altus a 2.0% (two-percent) Carried Working Interest in the drilling,
development and completion of the initial four (4) Wilcox formation wells
drilled on the Anderson lease. Upon the completion of drilling a Wilcox
formation well, Altus acknowledges and agrees that it will be responsible for
its proportionate share of all operating costs and capital expenditures
wells 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
sale of oil and natural gas production, from the initial four wells developed
the Anderson Lease.
and agreed to the 9th