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Newton Energy Corporation completes sale of Newton UK


Published Nov 18, 2014
Newton Energy Corporation-2

Newton Energy Corporation has completed the sale all of its securities in its wholly-owned subsidiary, Newton Energy UK Limited (Newton UK) to Hutton Energy Plc (Hutton) in consideration of (i) £500,000, less £45,000 for working capital adjustments, paid on closing of the transaction (the "Transaction"); and (ii) £250,000 payable on June 30, 2015.

In addition, (i) Hutton has granted the Company a 5% gross overriding royalty on any hydrocarbons sold under the licences to a maximum of £2,000,000; (ii) Hutton will fund 100% of the costs to drill and complete or abandon one well on the Newton UK licences; (iii) Hutton will fund 100% of the costs of maintaining the licenses through June 30, 2015; (iv) Newton will receive 75% of the proceeds from a farmin by a third party on the Newton UK licences prior to June 30, 2015 originated by Newton; and (v) Newton will receive 25% of the proceeds from a farmin by a third party on the Newton UK licenses prior to June 30, 2015 originated by Hutton. The funds received by Newton pursuant to clause (v) above will be deducted from the £250,000 payment on June 30, 2015.

Tags: Newton Energy Corporation




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