Red Sky Energy Sells its 20% Stakes in 2 Permits in NSW to ERM Gas
Red Sky Energy Limited (Red Sky or the Company) announced Wednesday that the Company has entered into a sale agreement for its 20 percent non-operated interest in exploration permits PEL 457 and 479 in the Clarence Moreton Basin in New South Wales, Australia to ERM Gas, a wholly owned subsidiary of ERM Power. Details of the transaction are:
- Sale of 20 percent of PEL 457 for $222,600 (AUD 250,000) and release of $193,200 (AUD 217,500) from the Permits Account, payable upon lodgement of transfer documents with regulator
- Sale of 20 percent of PEL 479 for $222,600 (AUD 250,000) and release of $193,200 (AUD 217,500) from the Permits Account, payable upon registration of transfer documents by regulator
- Upfront payment of $667,900 (AUD 750,000) in lieu of $890,500 (AUD 1 million) at time of renewal of PEL 479
The Company retains an interest in permit application PELA 135, for which ERM holds an option to purchase.
The transaction is subject to Red Sky shareholder approval, which will be sought as soon as possible. It is also subject to ERM Board approval and consent by the other joint venture party, Clarence Moreton Resources.
Note ERM Power holds an approximate 9.5 percent shareholding in Red Sky.
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- Red Sky Energy Sells its 20% Stakes in 2 Permits in NSW to ERM Gas (Jan 09)