Eaglewood Energy Announces Sale of Its Interest in PPL 260 to Exxon Mobil Subsidiary

abarrelfull wrote on 18 Nov 2011 07:55
Tags: deals eaglewood exxon papua-new-guinea upstream

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Eaglewood Energy Inc. (TSX VENTURE:EWD) ("Eaglewood") 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. 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.

CEO Brad Hurtubise commented "We are very pleased to have executed this agreement as it gives us the opportunity to monetize a licence where we are no longer active and provides capital to re-deploy in PPL 259, where we are acquiring seismic and have an aggressive 2012 program, expecting to drill our second well on that licence in the second half of 2012."

Eaglewood is a junior Canadian oil and gas exploration company that trades on the TSX Venture Exchange under the symbol "EWD".

• Eaglewood Energy Announces Sale of Its Interest in PPL 260 to Exxon Mobil Subsidiary

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