NGE Completes Sale of a 50% Stake in PPL 269 in Papua New Guinea to Santos
New Guinea Energy Limited (NGE) reported Wednesday that its wholly owned subsidiary, Kirkland Limited (Kirkland), today completed the sale of its 50 percent interest in Petroleum Prospecting License (PPL) 269 in Papua New Guinea (PNG) to Barracuda Limited - a subsidiary of Santos Limited (STO).
Under the terms of the sale and purchase agreement, STO has now acquired Kirkland’s 50 percent participating interest in PPL 269 in exchange for a total consideration of:
- payment of $32 million cash on Completion
- future payment of $2 million cash if a Petroleum Retention Licence (PRL) is granted over any area of PPL269; and
- future 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)
“We are very pleased to have reached Completion of the sale of our interest in PPL 269, today, to a subsidiary of Santos Limited. The funds secured from this transaction now give the Company the ability to consider future growth opportunities and we look forward to updating shareholders of these considerations in the near future," commented Executive Chairman, Michael Arnett.
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