Norwest Energy to Sell Interest in Cliff Head Field
Norwest Energy
|
Tuesday, January 06, 2004
Norwest Energy
|
Tuesday, January 06, 2004
Norwest Energy has reached agreement in principle to dispose of its 5% interest in the Cliff Head offshore oil project to ITOCHU Oil Exploration Co. Ltd for $8.1 million. The parties have also agreed that in the event of production from the project exceeding 28 million barrels of oil, then Norwest will be entitled to a 2% over riding royalty (ORR) from ITOCHU'S share of production.
Under the terms of a Memorandum of Understanding Norwest has granted ITOCHU an exclusive right up to February 16, 2004 in which to complete and execute a Sale and Purchase Agreement for the interest.
Norwest has also granted ITOCHU a first right of refusal on its interest in TP15, up to June 16, 2004, should Norwest wish to offer its interest for sale during that period.
Melindax, Pardon,
Westranch Holdings is a 100% owned subsidiary of NWE. It was Peter M and his people that found Cliff Head, which has finally, after a massive amount of work, got to Xanadu being drilled.
Sometimes you just have to admit that other people participating in this forum know more than you do.
NWE Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
