Widespread Portfolios enters Exclusive Term Sheet for Kotuku
/22 April 2013
Widespread Portfolios enters Exclusive Term Sheet for Kotuku
We are pleased to advise that Widespread Portfolios has today entered a term sheet with Perth based, Mosman Oil and Gas Limited (Mosman). The term sheet relates to the Company’s wholly owned interest in petroleum exploration permit 38526 over the Kotuku oil seeps near Greymouth (Permit).
Under the term sheet, Mosman has a 45 day exclusive period to undertake due diligence enquiries on the Permit. Subject to the outcome of those enquiries the parties will negotiate and enter a formal farm in agreement whereby:
• The Permit will be transferred to Mosman.
• Mosman would commit to funding approximately NZD1m in exploration activities on the Permit in the short term.
• Widespread Portfolios would receive approximately NZD1m, predominantly through an issue of shares in Mosman.
• Widespread Portfolios would be granted a 2% overriding royalty in respect of the Permit.
Widespread Portfolios Chairman, Dene Biddlecombe, stated that Mosman in addition to its proposed capital investment, brings extensive international experience in the oil and gas exploration sector and that it is exciting step to introduce those skills to the New Zealand market through Kotuku.
The Board of Widespread Portfolios believes that this is an exciting step towards the development of the Permit and looks forward to working with Mosman to bring the term sheet to a conclusive agreement.
Contacts
Dene Biddlecombe Chairman Widespread Portfolios Limited Phone: +64 27 230 0166 Email: deneb@xtra.co.nz
John Barr Chairman Mosman Oil and Gas Limited Phone: +61 418 912 885 Email: jwbarr@mosmanoilandgas.com
