Eaglewood Energy Inc. has completed all the conditions precedent and received all the government approvals required to complete the farmout of 25% of PPL 259 to Ketu Petroleum Ltd, a wholly owned subsidiary of Horizon Oil Ltd (Horizon).

At completion Horizon will pay Eaglewood approximately USD $2.5mm for sunk costs, fund their 25% interest of the seismic program currently underway on the license as well as funding of the first USD $1.375mm of Eaglewood's seismic costs.

When the next PPL 259 exploration well is drilled, expected in Q4 of this year, Horizon will fund their 25% interest and pay USD $5.0mm of Eaglewood's drilling costs. With the Horizon transaction completed, Eaglewood can now lodge the appropriate documentation with the regulators to begin the regulatory approval process to complete the previously announced farmout of an additional 25% of PPL 259 to Mega Fortune International (Mega).

Tags: Eaglewood Energy