Eaglewood Energy Inc. report the final payment of USD $4.9 million for the sale of 20% of its 30% equity interest in PPL 260 in the PNG highlands to Esso PNG Exploration Limited, a subsidiary of ExxonMobil.

The total purchase price for the 20% interest was USD $7mm, with USD $2.1mm paid on execution of the agreement and the remaining USD $4.9mm payable on satisfaction of certain conditions, which has now occurred.

CEO Brad Hurtubise commented "We are very pleased to have completed this transaction which provides additional capital to re-deploy in our other licenses. We will begin acquiring seismic on PPL 259 on April 1 and expect to be in a position to drill our second well on that license in the second half of 2012. With previously announced farmouts effectively funding our next phase of seismic and our next well, this additional capital gives us the ability to better pursue the multiple opportunities in and around our licenses including expanding our PPL 259 seismic program to high-grade additional prospects, shooting additional seismic on PPL 257 and funding any PRL 4 unitisation outcomes".

Tags: Eaglewood Energy