• Share Sale and Purchase Agreement executed with Raven Energy Limited for US incorporated Gas Fields LLC which holds the Tulainyo Gas Project.
• The transaction is a strategic initiative to take advantage of the investment so far, in a project with significant remaining potential.
• Consideration of AU $300,000 and AU $1,000,000 worth of shares in Raven Energy Limited. In addition, the potential for longer term milestone success payments based on booking of gas reserves and attaining commercial production. 

Pancontinental Oil & Gas NL announces that subsidiary Bombora Natural Energy Pty Ltd (“Bombora”) has executed a binding Share Sale and Purchase Agreement with Raven Energy Limited for the sale of its interest in 40% owned US subsidiary, Gas Fields LLC.

This transaction will simplify the ownership structure of Gas Fields and allow Raven to focus on unlocking the true potential of the asset as well as continue its strategy of expanding its Californian portfolio. Pancontinental will oversee its investment in Raven by consenting to Mr John Begg providing consultancy assistance to the company for a period of up to 6 months. 

The “Cash Consideration” for the sale of the Bombora Shares is:

• the sum of $25,000 payable to Bombora within fifteen Business Days of the execution of this agreement; and
• the sum of $275,000 payable to Bombora within seven days of the satisfaction of the “Cash Consideration Condition”

Commenting on the result Pancontinental CEO John Begg said:
“The Tulainyo project continues to hold great potential and this transaction provides a beneficial outcome for both parties. Pancontinental will secure immediate benefits in the form of cash and scrip in Raven, with further exposure to upside via material, success milestone payments. We think this project requires a focussed effort working with a very capable operator (California Resources Production Corporation) and joint venture, and that Raven under the circumstances is best placed to be that vehicle.

For Raven, this transaction is significant in that it provides them with full ownership of the company which strengthens their Californian asset base and provides increased exposure in the prospective Sacramento Basin.”