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NTN

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Share Name Share Symbol Market Type
TSXV:NTN TSX Venture Common Stock
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Newton Energy Corporation Announces Sale of Newton UK

03/07/2014 2:00pm

Marketwired Canada


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) GBP 500,000 payable
upon the execution of a definitive agreement; (ii) GBP 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 GBP 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 GBP 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."


About Hutton 

Hutton is a privately held UK based company backed by Australian and US
investors with interests in the Marcellus Shale and licenses in Poland. 


About Newton 

Newton holds UK East Midlands assets and is an emerging exploration and
production company. 


ADVISORY 

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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Newton Energy Corporation
Merv Chia
Chairman and Interim CEO
Cell: +14036178779
merv.chia@newtonenergy.ca

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