Australian junior Magnum Gas & Power Limited (ASX: MPE) is selling assets in Botswana, Africa to focus on its world-class gas target in the USA.
The company announced today that it has entered a conditional agreement for the sale of its shareholding Rhino Energy (CBM) Pty Ltd, which holds two of its Botswana prospecting licenses with Acumen Energy Pty Ltd.
Acumen has agreed to purchase Magnum’s 25% shareholding in Rhino, which in turn holds interests in PL 352/2008 and PL 353/2008 (known collectively as the Serowe Region Licences). Those licences are currently subject to a farm-in agreement with Strata-X Energy Limited.
Completion of the above sale of shares in Rhino is subject to the execution of a formal and binding agreement with a number of conditions.
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Magnum will transfer to Acumen its shareholding in its Rhino and interest in the SXA Farm-in Agreement for considerations, including:
- A deposit of A$20,000 cash to be held on trust by Acumen’s solicitors and transferred to Magnum upon the completion of the Transaction;
- A$130,000 payable as follows:
- A$80,000 payable on completion.
Magnum is eagerly waiting for the spudding of the Tulainyo appraisal well in California. Current estimates are that Tulainyo could contain up to six trillion cubic feet (tcf) of gas.
