Papua New Guinea Approves NGE's Sale of 50% in PPL 269 to Santos

Papua New Guinea-focused New Guinea Energy Limited (NGE) announced Wednesday that its wholly owned subsidiary Kirkland Limited (Kirkland) today received notification that the final condition precedent for the sale of its 50 percent interest in Petroleum Prospecting License (PPL) 269 to Barracuda Limited - a subsidiary of Santos Limited, has been met. The Minister for Petroleum and Energy has advised his approval of the Instrument of Transfer of the 50 percent from Kirkland to Santos.

Under the terms of the sale and purchase agreement, once Completion has taken place, Santos will acquire Kirkland's 50 percent participating interest in PPL 269 in exchange for a total consideration of :

  • payment of $32 million cash upon Completion
  • payment of $2 million cash if a Petroleum Retention License (PRL) is granted over any area of PPL269; and
  • payment of a further $6 million cash if a Petroleum Development License (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)

Shareholders will be advised when Completion of the sale of Kirkland's 50 percent interest has occurred.

Further, NGE would like to advise shareholders that NGE has received notification that the Minister for Petroleum and Energy has not granted NGE the extension of its PPL265 license, which was applied for in August 2012.



Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Executive Protection Coordinator
Expertise: Risk Management|Security
Location: TX
United States Denver: Proposals Specialist
Expertise: Business Development|Marketing|Sales
Location: Denver, CO
Landman - Midstream Surface Land
Expertise: Landman
Location: The Woodlands, TX
search for more jobs

Brent Crude Oil : $50.56/BBL 0.15%
Light Crude Oil : $47.7/BBL 0.70%
Natural Gas : $3.05/MMBtu 1.32%
Updated in last 24 hours