Eaglewood sells stake to Exxon unit

Business, Normal

The National, Wednesday 16th November 2011

JUNIOR oil and gas explorer Eaglewood Energy Inc well sell most of its 30% equity stake in the PPL 260 exploration licence in Southern Highlands province to a unit of ExxonMobil Corp.
The selling price of the transaction was US$7 million, Canadian-based Eaglewood said yesterday
The company sold two-thirds of its 30% equity interest in PPL 260 to Esso PNG Exploration, a subsidiary of ExxonMobil, the world’s largest publicly traded oil company.
Eaglewood had also granted an option to Esso for the sale of its remaining 10% interest for US$3.5 million.
“We are very pleased to have executed this agreement,” Eaglewood chief executive Brad Hurtubise.
“It gives us the opportunity to monetise a licence where we are no longer active and provides capital to re-deploy in PPL 259, where we are acquiring seismic and have an aggressive programme for next year… we are expecting to drill our second well on that licence in the second-half.”
PPL 259 is located in the Nomad area of Western province.