Eaglewood Energy Sells 20% Stake in PPL 260 in the PNG highlands to Exxon Mobil (XOM)
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Eaglewood Energy Inc. (TSX VENTURE: EWD) is pleased to announce that it has executed an agreement to sell 20% of its 30% equity interest in PPL 260 in the PNG highlands to Esso PNG Exploration Limited ("Esso"), a subsidiary of Exxon Mobil Corporation (NYSE: XOM). Eaglewood has also granted an option to Esso for the sale of its remaining 10% interest subject to certain conditions.
The purchase price for the 20% interest is USD $7mm, with USD $2.1mm payable on execution of the agreement and the remaining USD $4.9mm payable when Esso's interest is registered on the licence, which is expected to occur prior to year end. The option granted to Esso to purchase Eaglewood's remaining 10% interest in PPL 260 for USD $3.5mm is subject to the expiry or waiver of an option previously granted on the licence. The previously granted option is not expected to expire until the third quarter of 2012. The transaction is conditional upon the waiver of pre-emptive rights and receipt of all necessary regulatory approvals.
The purchase price for the 20% interest is USD $7mm, with USD $2.1mm payable on execution of the agreement and the remaining USD $4.9mm payable when Esso's interest is registered on the licence, which is expected to occur prior to year end. The option granted to Esso to purchase Eaglewood's remaining 10% interest in PPL 260 for USD $3.5mm is subject to the expiry or waiver of an option previously granted on the licence. The previously granted option is not expected to expire until the third quarter of 2012. The transaction is conditional upon the waiver of pre-emptive rights and receipt of all necessary regulatory approvals.
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