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Great Artesian chief to stay
CAMERON ENGLAND
January 09, 2007 01:15am

GREAT Artesian Oil and Gas managing director Ray Shaw will stay in his job until at least March 31 while the ownership of a 19.9 per cent stake in the company is sorted out.

His tenure at the junior oil and gas company was the subject of a stoush with major shareholder Beach Petroleum last year. Dr Shaw had agreed with Beach to step down at the end of December but a shareholder revolt prior to the company's annual meeting ensured he would be staying put.

Meanwhile, fellow oil and gas company Drillsearch Energy is doing due diligence on acquiring Beach's 19.9 per cent stake.

Great Artesian said last week an agreement had been reached between itself, Dr Shaw and Beach to extend Dr Shaw's tenure to March 31.

"Dr Shaw has undertaken, subject to Beach remaining a substantial shareholder of the company, to resign as both managing director and a director of Great Artesian Oil and Gas as at March 31, 2007, and not to accept a nomination as a director of the company," a statement said.

Beach last year took a 19.9 per cent shareholding in Great Artesian in a deal with three of its directors, including Dr Shaw, for which it paid them 50c a share, compared with the current 29.5c.

Under that deal, Dr Shaw agreed to step down on December 31, but has stayed on after a shareholder group indicated they would fight to have him retained on the board. Beach said in December, Drillsearch had acquired an option to buy its stake in Great Artesian for 51c a share.

It had until February 12 to exercise that option.

Dr Shaw said he understood there was at least one other party interested in buying the stake.

The author owns Great Artesian shares.

www.news.com.au/adelaidenow/story/0,22606,21029529-5003680,00.html