Red Sky Energy Ltd. has entered into a sale agreement for its 20% non-operated interest in exploration permits PEL 457 and 479 in the Clarence Moreton basin in New South Wales, Australia, to ERM Gas, a wholly owned subsidiary of ERM Power.
The transaction included the sale of 20% of PEL 457 for $222,600 (AUD 250,000) and release of $193,200 (AUD 217,500) from the permits account, payable upon lodgement of transfer documents with regulator; and the sale of 20% of PEL 479 for $222,600 (AUD 250,000) and release of $193,200 (AUD 217,500) from the permits account, payable upon registration of transfer documents by regulator. Additionally, the transaction included an upfront payment of $667,900 (AUD 750,000) in lieu of $890,500 (AUD 1 million) at time of renewal of PEL 479.
Red Sky Energy retains an interest in permit application PELA 135, for which ERM holds an option to purchase. The transaction is subject to Red Sky shareholder approval, which will be sought as soon as possible. It is also subject to ERM board approval and consent by the other joint venture party, Clarence Moreton Resources.