Fortbridge Media Release

New Guinea Energy Ltd. [ASX:NGE] - NGE to Sell 50% Interest in PPL 269 for up to US$40 Million

New Guinea Energy Ltd (NGE / Company) is pleased to announce that NGE and its wholly owned subsidiary, Kirkland Limited (Kirkland) have signed an agreement with a subsidiary of Santos Limited, Barracuda Limited (Santos), regarding the proposed sale of Kirkland�s 50% participating interest in Petroleum Prospecting Licence 269 (PPL269) to Santos for a maximum total consideration of up to US$40 million (Sale Agreement). NGE has guaranteed Kirkland�s obligations under the Sale Agreement.

The consideration for the sale of the 50% interest in PPL 269 includes:
� payment of US$32 million cash on Completion; and
� payment of US$2 million cash if a Petroleum Retention Licence (PRL) is granted over any area of PPL269; and
� payment of a further US$6 million cash if a Petroleum Development Licence (PDL) is granted over any area of PPL269. (However, if a PDL is granted prior to a PRL, a one off payment of US$8 million cash will be payable instead).

Completion of the sale of Kirkland�s 50% interest in PPL269 under the Sale Agreement is conditional on receipt of certain government approvals, some of which must be satisfied within 6 months of the execution date. The Sale Agreement also contains a number of conditions which must be satisfied within 6-9 months of the execution date, including that the variation to PPL269 submitted on 11 March 2013 is approved by the Minister and that Santos executes an on-sale agreement under which it will on-sell a portion of the 50% participating interest being acquired from Kirkland (On-Sale Agreement).

NGE has received the consent of the holders of the convertible bonds on issue to enter into and complete the Sale Agreement, and the Company will repay all outstanding monies in relation to the convertible bonds following receipt of the sale consideration. Using the 12 February 2014 exchange rate of AUD/USD 0.9057, the likely effect of the payment on Completion will be to increase NGE�s net assets by AUD$9 million.

�This transaction is consistent with NGE�s strategy of monetising its gas assets so the Company can focus on oil exploration in Papua New Guinea. The sale of PPL277 in late 2012 has, and this sale of PPL269 will, provide material cash injections whilst allowing NGE to retain an interest in the potential upside of developing these assets,� NGE Chief Executive Officer, Grant Worner said.

To view the full announcement please refer to the attachment.

For more information please contact:

Michael Arnett
Chairman
T +61 2 9252 0010
F:+61 2 9252 0039

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