18 December 2013
Sale of Kotuku Permit to Mosman Oil and Gas Limited
Further to the announcement of 9 July, Aorere Resources is pleased to advise that the condition to the sale of Petroleum Exploration Permit 38526 has been satisfied. The condition related to New Zealand Petroleum and Minerals approving the proposed transfer.
As a result Aorere Resources has today completed the sale of the permit to Petroleum Creek Limited, a wholly owned subsidiary of Mosman Oil and Gas Limited. Aorere Resources has, in return, been issued a 40% shareholding in Petroleum Creek.
Aorere Resources has also granted a call option over the Petroleum Creek shares to Mosman. Under the call option Mosman can issue a call notice to acquire the Petroleum Creek shares from Aorere Resources. The consideration to be provided to Aorere Resources under the call option is:
• The issue of $900,000 of shares in Mosman at an issue price of A$0.10 per share; and
• The grant of a 2% royalty of net sales revenue deriving from the permit.
Mosman has today also given a call notice and exercised the call option. Completion of the call option is expected this Friday. A further market announcement will be made at this time.
Aorere Resources Chairman Mr. Dene Biddlecombe said “we are very pleased to complete this first stage of our partnership with Mosman through Petroleum Creek. We see substantial potential benefits to the West Coast of the South Island as we believe that this deal ensures significant investment in the petroleum sector there in the future”.
Mosman is an unlisted Perth based company that plans to list on the London AIM stock exchange early in 2014. Mosman is acquiring exploration areas in NZ, Australia and Papua New Guinea.
The Chairman of Mosman, Mr. John Barr said "we are very pleased to achieve this important milestone in our NZ business. Mosman plans to drill several wells in this very prospective area in 2014. Our objective is to be the first commercial oil producer in the South Island. We hope this will bring investment and jobs to the West Coast area, and we appreciate the positive reception by all stakeholders"
For and on behalf of the Board
Aorere Resources Limited