Patrick McInturff of Houston, Texas was elected by the Tengasco Board of Directors as Vice President of the Company as of December 18, 2007, the effective date of a two-year employment contract between Mr. McInturff and the Company.
The Company also announced that on December 18, 2007, the Company entered into a Management Agreement with Hoactzin Partners, L.P. ("Hoactzin") whereby Mr. McInturff's duties while employed by the Company will include the management on behalf of Hoactzin of its working interests in certain oil and gas properties owned by Hoactzin and located in the onshore Texas Gulf Coast, and offshore Texas and offshore Louisiana.
The controlling person of Hoactzin is Peter E. Salas, the Chairman of the Company's Board of Directors and also the controlling person of Dolphin Offshore Partners, LP, the Company's largest shareholder. As consideration for the Company entering into the Management Agreement, Hoactzin agreed to reimburse the Company for half of Mr. McInturff's salary and certain benefits he receives during his employment by the Company.
In further consideration for the Company's agreement to enter into the Management Agreement, Hoactzin granted to the Company an option to participate in up to a 15% working interest on a dollar-for-dollar cost basis in any new drilling or workover activities undertaken on Hoactzin's managed properties during the term of the agreement. The term of the Management Agreement is the earlier of the date Hoactzin sells its managed interests or 5 years.
CEO Jeffrey R. Bailey said, "I am very pleased to announce that Pat McInturff has joined the Company as Vice President. It is a credit to the Company that a man of his credentials in the oil and gas business has come on board. We believe that his experience and contacts from many years in the oil and gas business, many of them with Ryder Scott Company in Houston, will provide the Company with the ability to seek out growth opportunities throughout the country. The first growth opportunity has presented itself with the Hoactzin management agreement signed when Mr. McInturff joined the Company. He has knowledge of the Gulf Coast, Texas, and Louisiana properties owned by Hoactzin from his duties with the operator of those properties prior to joining the Company. His knowledge of these properties will be extremely valuable to the Company as it determines the nature of the Company's potential investment in these areas. We look forward to seeking out additional opportunities that will provide significant upside potential for the growth of the Company."
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