New Guinea Energy Postpones PNG Gas Asset Sale

New Guinea Energy (NGE) has extended the deadline for sale of its 50% stake in Petroleum Prospecting Licence 269 in Papua New Guinea to Esso PNG Robin for $40 million to 28 August 2013.

Certain rights and obligations under the Sale Agreement do not become binding until a number of initial conditions precedent are satisfied.These include Esso giving Kirkland a notice that Esso wishes to proceed with the transaction, Kirkland obtaining the consent of the holder of the convertible bonds in NGE; and NGE providing a parent company guarantee to Esso.

In July, New Guinea Energy (NGE) had announced that its wholly owned subsidiary, Kirkland, has signed an agreement with Esso PNG Robin, a subsidiary of ExxonMobil, regarding the proposed sale of its stake in the license.

Monetisation of this gas asset would improve company’s ability to focus on and fund exploration for oil in Papua New Guinea, NGE said in July.

PPL 269 occupies an area of 8,995 km2 in the Western Province straddling both foreland and foldbelt structural terranes.

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).