CALGARY, ALBERTA--(Marketwired - July 3, 2014) - Newton Energy Corporation (the "Company" or "Newton") (TSX VENTURE:NTN) announces that it has entered into a term sheet with Hutton Energy Plc ("Hutton") to sell 100% of its wholly-owned subsidiary, Newton Energy UK Limited ("Newton UK"). Newton has agreed to sell Newton UK for: (i) £500,000 payable upon the execution of a definitive agreement; (ii) £250,000 payable on June 30, 2015; (iii) Hutton granting the Company a 5% gross overriding royalty on any hydrocarbons sold under the licences to a maximum of £2,000,000; (iv) Hutton funding 100% of the costs to drill and complete or abandon one well on the Newton UK licences; (v) Hutton funding 100% of the costs of maintaining the licenses through June 30, 2015; (vi) Newton receiving 75% of the proceeds from a farmin by a third party on the Newton UK licences prior to June 30, 2015 originated by Newton; and (vii) Newton receiving 25% of the proceeds from a farmin by a third party on the Newton UK licenses prior to June 15, 2015 originated by Hutton. The funds received by Newton pursuant to this clause will be deducted from the £250,000 payment on June 30, 2015.
Entering into the definitive agreement is subject to several conditions, including the satisfactory completion of due diligence, all applicable corporate and regulatory approvals and approval of Newton's shareholders. The sale of Newton UK constitutes the sale of all of the oil and gas properties of the Company owned in the UK and most of the Company's assets.
Merv Chia, Chairman and Interim CEO, stated that "Newton is looking forward to seeing a well prospect drilled with upside to realize on its investment in onshore UK. The completion of this transaction will provide Newton with an opportunity to capture value for its UK licences and to explore new directions."
Hutton is a privately held UK based company backed by Australian and US investors with interests in the Marcellus Shale and licenses in Poland.
Newton holds UK East Midlands assets and is an emerging exploration and production company.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the entering into of the definitive agreement and the closing of the sale of Newton UK to Hutton. Statements included herein, other than statements of historical fact, including, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Newton's disclosure documents on the SEDAR website at www.sedar.com Newton does not undertake to update any forward-looking information except in accordance with applicable securities laws.