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ArturusCapitalLimited
ABN79001001145Suite1709,Level17AustraliaSquare,264GeorgeStreet,SydneyNSW2000
T+61292912400 F+61292912444
www.arturuscapital.com
27 January 2010
Company Announcements OfficeASX Limited20 Bridge StreetSydney
NSW 2000
ARTURUS & EXTEX TO FINALISE U.S. STRATEGIC ALLIANCE
Arturus Capital Limited (Arturus Capital) advises that its U.S.
subsidiary, Arturus Energy,LLC (Arturus Energy), has today agreed
to finalise a strategic alliance with Extex Operating
Company (Extex) - a highly experienced participant in the U.S.
oil and gas industry - and MrWallis Marsh.
Mr Marsh is the founder and CEO of the Extex Companies, an
independent energy groupengaged in the acquisition, production,
exploration, development and operation of oil and gasinterests in
southern U.S.A. Previously, Mr Marsh worked as a production
engineer, crude oilanalyst, facilities engineer and field
production engineer for a number of U.S. oil and gascompanies. Mr
Marsh graduated from the University of Oklahoma in 1990 with a
degree inpetroleum engineering.
Arturus Energy, Extex and Mr Marsh have entered into a
non-binding letter agreement underwhich they have agreed to prepare
and finalise consulting and management services
agreements for the provision of consulting, management and
operation services by Extex andMr Marsh, including:
assisting Arturus Energy to identify, screen and evaluate U.S.
oil and gas investmentopportunities;
providing land, geological, geophysical and engineering advice
in connection withacquisitions and divestments by Arturus Energy of
U.S. oil and gas working interests;
providing technical and operational advice regarding the
operation and management ofArturus Energys investments in the U.S.
oil and gas sector; and
acting as operator, or procuring an Extex Operating Co. to act
as operator, of oil and gasinterests acquired by Arturus Energy.Mr
Marshs appointment will commence on the finalisation and execution
of theabovementioned consulting and management services agreements
and will run for an initialone year term from the date of execution
of the agreements, unless terminated earlier inaccordance with the
terms of those agreements.
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In addition to agreed fees for consulting and operating
services, the letter agreement alsoprovides for Mr Marsh to be
offered royalty interests in, and the opportunity to invest
in,Arturuss U.S. oil and gas interests. The quantum of the royalty
interests and co-investment
rights will depend on whether Mr Marsh or Arturus introduced the
U.S. oil and gas interest orproject.
Potential consideration to Marsh and Extec include:
a monthly $10,000 fee for the during of the consulting services
agreement; 110% of Extecs costs of providing the services as
operator; potential equity rights in Arturus Capital (to be
mutually agreed); 0.75% overriding royalty interest; and a
co-investment right in any oil and gas acquisition to be agreed
between the parties
but, in the case of an acquisition introduced by Arturus, only
to a maximum of 25%.
Todays announcement follows the recent appointment of Michael
Bertuccio as full-time
President of Arturus Energy. Arturus Capital believes these
developments will ideally positionArturus to take advantage of
investment opportunities in the U.S. oil and gas sector.
For further information, contact
Wayne Bellman
Chairman
Arturus Capital Limited
Tel. 02 9291 2400
