RMS Systems Inc. Announces Receipt of Cad $4.9 Million from Aus

 
FSC / Press Release 
RMS Systems Inc. Announces Receipt of Cad $4.9 Million from Australian Sale 
Calgary, Alberta CANADA, December 01, 2008 /FSC/ - RMS Systems Inc.  (RMS - TSX
Venture), ("RMS") announces that it has entered into a Variation Agreement with
Santos Ltd. (the "Variation Agreement") pursuant to which RMS and Santos Ltd.
("Santos") have agreed to amend the amounts and time for payment of the
remaining performance payments under the previously announced sale agreement
entered into between them. As previously announced, in June 2007 Tiger-Cat
completed the sale of its Australian wholly owned subsidiary, Bronco Energy Pty
Ltd. (and thereby RMS (which was known as Tiger-Cat Energy Ltd. at the time)
sold all of its interest in certain Australian lands) to Santos for a total sale
price of AUD$10.53 million (the "Original Agreement"). This sale price was made
up of three payments. The first payment in the amount of AUD$2,531,220 was paid
on June 25, 2007. Pursuant to the Original Agreement, two performance payments
totaling AUD$8 million were to be made subject to certain oil and gas reserves
targets being met (the "Performance Payments"). RMS has agreed to vary the
Original Agreement such that the Performance Payments will be reduced to
AUD$6.15 million. 
Payment of the AUD$6.15 million (CAD$4,895,375) was received by RMS on December
1, 2008. 
Pursuant to the Original Agreement, the first Performance Payment in the amount
of AUD$3 million was not payable unless and until Santos' share of production of
the proven plus probable reserves from its interest in the lands would be 100
PJ. In addition, under the Original Agreement the second Performance Payment in
the amount of AUD$5 million was not payable unless and until Santos' share of
production of the proven plus probable reserves from its interest in the lands
would be 200 PJ.  In summary, the Original Agreement provided that Santos need
not pay RMS the Performance Payments until the earlier of (i) 30 days after
Santos first releasing to the Australian Securities Exchange its group annual
report for the financial year in which Santos established the relevant requisite
level of 2P Reserves and (ii) in the event that Santos should fail to deliver a
statement setting out the level of established reserves within 30 days of Santos
first releasing to the Australian Securities Exchange its group annual report at
the end of its financial year and  certain other conditions being satisfied,
upon the completion of an Independent Engineers Report determining the reserves
on the subject lands. 
By entering into the Variation Agreement, RMS has ensured itself that it will
have access to the Performance Payment funds earlier than it would otherwise
have been entitled pursuant to the Original Agreement. John Zang, Corporate
Secretary (and former CEO of Tiger-Cat Energy Ltd.) stated that "although we are
aware of certain successful development activities carried out by Santos on the
subject lands in Australia, we believe that given the economic times we are
currently in, and given the timing risk associated with the booking of the
necessary reserves upon which the Performance Payments are contingent, we
believe it was prudent that RMS secure the cash from the Performance Payments at
this time, even though it would be at a discount from the amount originally
agreed to". 
RMS continues to execute on its previously disclosed contract (the "Deployment
Contract") with a major oil and gas exploration company which will see RMS place
its RigManager Units on 25 drilling rigs. Each such RigManager Unit costs
approximately US$100,000 to manufacture. Bob Webb, CEO of RMS, stated that
"ensuring access to approximately CAD$5 million from this compromise of the
Performance Payments ensures that RMS will be in a position to execute on its
current contract and also will enable us to move quickly to execute on other
potential contracts which may be entered into in the future". 
Company Summary 
RMS manufactures and supplies oil and gas drilling rig monitoring and
communications equipment to the oil and gas industry. RMS has currently
installed 6 RigManager Units pursuant to the Deployment Contract. Two additional
units are anticipated to be installed by approximately December 5, 2008.
Bringing the total RigManager Units to 8 by that time. RMS expects that by
December 31, 2008 it will have at least 12 RigManager Units installed. Customers
are billed on the basis of a day rate usage. On average, each RigManager Unit
results in billings of approximately $10,000 per month. 
The TSX Venture Exchange has in no way passed upon the merits of the proposed
transaction and has neither approved nor disapproved the contents of this press
release. 
For Further Information Please Contact:
Mr. Bob Webb
RMS SYTEMS INC.
Bay 10, 3419 12th Street NE
Calgary, Alberta T2E 6S6
Tel:  (403) 717 9694 
Cautionary Statements 
The information in this news release includes certain information and statements
about management's view of future events, expectations, plans and prospects that
constitute forward looking statements.  These statements are based upon
assumptions that are subject to significant risks and uncertainties.  Because of
these risks and uncertainties and as a result of a variety of factors, the
actual results, expectations, achievements or performance may differ materially
from those anticipated and indicated by these forward looking statements. 
Although RMS Systems Inc. believes that the expectations reflected in
forward-looking statements are reasonable, it can give no assurances that the
expectations of any forward-looking statements will prove to be correct.  RMS
Systems Inc. disclaims any intention and assumes no obligation to update or
revise any forward looking statements to reflect actual results, whether as a
result of new information, future events, changes in assumptions, changes in
factors affecting such forward looking statements or otherwise, except as
required pursuant to applicable securities laws. 
Source: RMS Systems Inc.  (RMS - TSX-V)
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-0- Dec/01/2008 22:00 GMT
 
 
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