Under terms of this unusual deal, the former Petsec executives - namely, Doug Battersby (also an Eastern Star Gas director), Maynard Smith, Howard Wilson and Jim Slatten - will provide their "technical expertise, their contacts, and their deal flow in the USA," and in exchange, Novus will get the exclusive first right of refusal if attractive investment opportunities emerge.

Darcy will then be able to purchase a minority interest on a deferred buy-back basis or earn a modest royalty.

The deal will also see some personnel changes. Howard Wilson will become vice president of operations at Novus Oil & Gas Texas (Novus Texas) while Jim Slatten will take up the role of vice president of land and legal operations. Senior Novus executive, Mike Sandy, will be transferred to Houston to become president of Novus Texas.

Toru Matsui will become group manager of corporate development in Sydney while Jerry Nichols, who is currently working on Middle East exploration ventures, will become vice president of exploration at Novus Texas.

As part of the initial agreement, Novus also acquired Darcy's modest existing production leases in Louisiana's Sorrento Dome. This includes a 9.8333% working interest in a lease currently producing about 150,000 cubic feet of gas and 135 barrels of oil per day. Novus said it plans to drill an updip well in the coming months to further establish gas production on Sorrento Dome.