Red Sky Energy Sells 20% Stake in Two Permits in Clarence Moreton Basin

Red Sky Energy has entered into a sale agreement for its 20% non-operated interest in exploration permits PEL 457 and 479 in the Clarence Moreton Basin, New South Wales, Australia to ERM Gas, a wholly owned subsidiary of ERM Power.

Details of the transaction are:

•          Sale of 20% of PEL 457 for A$250,000 and release of A$217,500 from the Permits Account, payable upon lodgement of transfer documents with regulator;
•          Sale of 20% of PEL 479 for A$250,000 and release of A$217,500 from the Permits Account, payable upon registration of transfer documents by regulator;
•          Upfront payment of A$750,000 in lieu of $1 million at time of renewal of PEL 479.

The company retains an interest in permit application PELA 135, for which ERM holds an option to purchase.

ERM Power holds an approximate 9.5% shareholding in Red Sky.

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