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Tuesday 13 May, 2014

New World Oil & Gas

Sale Purchase Agreement

RNS Number : 9095G
New World Oil & Gas
13 May 2014
 



New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas

13 May 2014  

New World Oil and Gas Plc ('New World' or 'the Company')

Sale Purchase Agreement

 

New World Oil and Gas Plc, the AIM quoted oil and gas operating, exploration and development company with projects in Belize and Denmark, announces that further to its RNS on 8 May 2014 regarding the Binding Framework Agreement signed for oil production in Kuwait, the Company is pleased to confirm that it has signed a Sale Purchase Agreement (the 'SPA') with the shareholders of Al-Maraam Al-Ahliya Company for General Trading and Contracting LLC ('Al-Maraam'), Osma Khalid Al Masoud Al Fuhaid, Fahad Osama Khalid Al Masoud Al Fuhaid and Dr Muaaz KH M Alfahaid (the 'Sellers').  The SPA provides the mechanism for New World to become a 49% shareholder ('Target Shares') and hold a 60% economic interest in Al-Maraam with a view to fully developing Al Maram's opportunities in the oil and gas sector in Kuwait.

 

An initial consideration in the amount of EUR1 million shall, subject to a number of material pre-conditions including due diligence on Al-Maraam, be payable to the Sellers upon the transfer of the Target Shares to New World; provided, however, that it shall be subject to a put option whereby if Dr. Muaaz KH M Alfahaid does not complete the previously announced subscription of 20% of the equity of Niel Petroleum for an amount of US$20 million (the 'Subscription') by 30 July 2014, New World will have the option to "put" the Target Shares to Dr. Muaaz KH M Alfahaid in exchange for EUR1 million plus related expenses.  A balance of the consideration for the Target Shares in the amount of EUR4 million shall be payable to the Seller upon and subject to the completion of the Subscription.

 

New World CEO William Kelleher said: "The signing of the SPA is an important step in the transactional process that will lead to New World acquiring 49% of the shares and 60% of the economic benefits of Al Maram.   New World looks forward to setting up operations in Kuwait and applying its expertise to developing Al Maram's full potential.  We will continue to keep our shareholders informed of our progress on a regular basis at this transformational time for the Company."

 

** ENDS **

 

For further information please visit www.nwoilgas.com or contact:

 

Enquiries:

William Kelleher

New World Oil and Gas Plc

Tel: +17134472171

Georges Sztyk

New World Oil and Gas Plc

Tel: +1514 9612247

Peter Sztyk

 

Felicity Geidt

New World Oil and Gas Plc

 

Beaumont Cornish Limited

Tel: +19172157122

 

Tel: +44 (0) 20 7628 3396

Roland Cornish

Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

 

Jerry Keen

Shore Capital

Tel: +44 (0) 20 7408 4090

 

 

 

 

Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Lottie Brocklehurst

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Frank Buhagiar

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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