New Guinea Energy Limited (NGE) is pleased to advise shareholders that its wholly owned subsidiary Kirkland Limited (Kirkland), received notification that the final condition precedent for the sale of its 50% interest in Petroleum Prospecting Licence (PPL) 269 to Barracuda Limited - a subsidiary of Santos Limited (STO), has been met. The Minister for Petroleum and Energy has advised his approval of the Instrument of Transfer of the 50% from Kirkland to STO.
Under the terms of the sale and purchase agreement, once Completion has taken place, STO will acquire Kirkland's 50% participating interest in PPL 269 in exchange for a total
•payment of US$32 million cash on Completion;
•payment of US$2 million cash if a Petroleum Retention Licence (PRL) is granted over any area of PPL269; and
•payment of a further US$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 US$8 million cash will be payable instead).