KUTh Energy, based in Sydney, Australia, has changed its agreement with Kula Energy, limiting the latter to earning a 49.8% stake in KUTh’s Papua New Guinea subsidiary.
The two companies had on 11 January reached a memorandum of understanding covering the conversion of 3 exploration licence applications into licences.
Under the original deal, Kula would earn interest in KUTh Energy (PNG) Ltd (KPNG) by investing its own equity and human resources to accelerate this conversion or buy all shares in KPNG for A$502,000.
The new deal removes the option to buy all shares in KPNG but rather would grant Kula a 35% equity interest in KPNG if it manages to achieve the grant of at least 1 licence application within 12 months or submits a new application for an additional Exploration Licence over an agreed identified area.
The two companies had on 11 January reached a memorandum of understanding covering the conversion of 3 exploration licence applications into licences.
Under the original deal, Kula would earn interest in KUTh Energy (PNG) Ltd (KPNG) by investing its own equity and human resources to accelerate this conversion or buy all shares in KPNG for A$502,000.
The new deal removes the option to buy all shares in KPNG but rather would grant Kula a 35% equity interest in KPNG if it manages to achieve the grant of at least 1 licence application within 12 months or submits a new application for an additional Exploration Licence over an agreed identified area.