New Guinea Energy Complete Stake Sale in PNG Gas Asset to Santos

New Guinea Energy Limited (NGE) on Thursday said it has completed the sale of its 50 percent interest in Petroleum Prospecting Licence (PPL) 269 in Papua New Guinea to Santos Limited.

Under the terms of the sale and purchase agreement, Santos has now acquired Kirkland’s 50 percent participating interest in PPL 269 in exchange for a total consideration of:

• payment of $32 million cash on Completion;
• future payment of $2 million cash if a Petroleum Retention Licence (PRL) is granted over any area of PPL269; and
• future payment of a further $6 million cash if a Petroleum Development Licence (PDL) is granted over any area of PPL269.

However, if a PDL is granted prior to a PRL, a one off payment of $8 million cash will be payable instead, the company said.

New Guinea Energy’s wholly-owned subsidiary Kirkland, in Februaury, received notification that the final condition precedent for the sale of its interest in Petroleum Prospecting Licence (PPL) 269 in Papua New Guinea to Barracuda (a subsidiary of Santos) has been met.

PPL 269 occupies an area of 8,995 km2 in the Western Province straddling both foreland and foldbelt structural terranes. South of the foldbelt elevations vary from 600 m in the Tarim area to 50 m in the southern part of the permit.

This licence has 5 drillable prospects and adjacent licences contain major wet gas discoveries including Hides (9.6 TCF GIIP), Juha (1.5 TCF GIIP) and Pnyang (1.2 TCF GIIP).