New Guinea Energy Ltd announced that NGE and its wholly owned subsidiary, Kirkland Limited (Kirkland) have signed an agreement with a subsidiary of Santos Limited, Barracuda Limited (Santos), regarding the proposed sale of Kirkland’s 50 percent participating interest in Petroleum Prospecting Licence 269 (PPL269) in Papua New Guinea (PNG) to Santos for a maximum total consideration of up to $40 million (Sale Agreement). NGE has guaranteed Kirkland’s obligations under the Sale Agreement.
The consideration for the sale of the 50% interest in PPL 269 includes:
payment of $32 million cash on Completion; and
payment of $2 million cash if a Petroleum Retention Licence (PRL) is granted over any area of PPL269; and
payment of a further $6 million cash if a Petroleum Development Licence (PDL) is granted over any area of PPL269. (However, if a PDL is granted prior to a PRL, a one off payment of $8 million cash will be payable instead)