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.
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