Deal inked on sale of NGE’s 50% oil interest

 KIRKLAND Ltd has signed an agreement with Esso Highlands Ltd on the proposed sale of New Guinea Energy Ltd 50% participating interest in petroleum prospecting licence (PPL) 269.

New Guinea Energy Ltd (NGE) announced the signing of the deal between its wholly-owned subsidiary, Kirkland, and Esso, a subsidiary of global energy giant ExxonMobil for a total sale of US$40 million (K92 million). 

The agreement was signed last July 26.

Certain rights and obligations under the sale deal do not become binding until a number of initial conditions precedent are satisfied, including: Esso giving Kirkland a notice that it wishes to proceed with the transaction; Kirkland obtaining the consent of the holder of the convertible bonds in NGE; and NGE providing a parent company guarantee to Esso.

NGE said there has been mutual agreement to extend the deadline to meet all the initial conditions precedent to today.

NGE is an Australian company focused on oil and gas exploration in PNG. 

NGE possesses one of the last available highly prospective, onshore, independent acreage positions in SE Asia. 

Prior to any sale of PPL 269 taking effect, the company has five onshore PPLs covering more than 29,500km² (7 million acres) and a royalty right over another 8,000km² (2 million acres) in a PPL running parallel to the PNG LNG project. 

It has a balanced portfolio of both oil and gas prospects with potentially more than 6,100mmboe unrisked petroleum initially in place.