Newton Energy Corporation has entered into a term sheet with Hutton Energy Plc (Hutton) to sell 100% of its wholly-owned subsidiary, Newton Energy UK Limited (Newton UK).

Newton has agreed to sell Newton UK for: (i) £500,000 payable upon the execution of a definitive agreement; (ii) £250,000 payable on June 30, 2015; (iii) Hutton granting the Company a 5% gross overriding royalty on any hydrocarbons sold under the licences to a maximum of £2,000,000; (iv) Hutton funding 100% of the costs to drill and complete or abandon one well on the Newton UK licences; (v) Hutton funding 100% of the costs of maintaining the licenses through June 30, 2015; (vi) Newton receiving 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 (vii) Newton receiving 25% of the proceeds from a farmin by a third party on the Newton UK licenses prior to June 15, 2015 originated by Hutton.

The funds received by Newton pursuant to this clause will be deducted from the £250,000 payment on June 30, 2015.

Tags: Newton Energy Corporation