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Fly Exercises Kumul Petroleum Holdings Limited Option

The Fly River Provincial Government, as of today, is last of the five Provincial beneficiaries to sign the Unit Application Agreement and exercise their Kroton Equity Option through Kumul Petroleum Holdings Vendor Finance.

They were among three other landowner groups who have expressed their interest to exercise their options, before the commercial arrangement expired on the December 31.

Fly River Provincial Government Acting Deputy Governor, Abini Gesele, on signing the Kroton Equity Unit Application today pledged his commitment to the commercial agreement for his peoples benefit after narrowly missing out on the option in 2008.

“I don’t want to fail Western Province a second time…” he adds.

Juha (PDL9), Pipeline and Plant site Landowner Beneficiary Groups have also signed the Unit Application Agreement to exercise their Kroton Equity Option (Options) using KPHL’s Vendor Finance.

Kumul Petroleum Holdings Limited Managing Director, Wapu Sonk, cleared rumors that Kroton was a company within KPHL saying its role is solely to implement the agreement that was reached in the terms expressed in the UBSA and, provide additional benefits for the Landowners and relevant Provincial Governments if they elect to invest in Kroton.”

He assured that the Board and Management of KPHL are committed to ensuring that all Landowners and Provincial Governments, once exercised, receive their entitlements under the UBS Agreement.

“KPHL does not want to see any Beneficiary Group to lose out on their right to acquire their interest in Kroton so the NEC endorsed KPHL to offer a safety net finance package to make sure that any Beneficiary Group who wanted to participate in an additional interest in the PNG LNG Project through a shareholding in Kroton would be able to exercise their option.”

After this signing ceremony, KPHL will work with those beneficiary groups that have signed up to complete the corporate/statutory aspect of the transaction, for the beneficiary groups’ shareholding interest in Kumul Petroleum (Kroton) Limited to be registered.

In addition to these Beneficiary Groups who have exercised their Kroton Equity Option, 1 landowner beneficiary group from Moran and 4 provincial governments [Southern Highlands, Hela, Gulf and Central provincial governments] have taken up their Options on December 27, 2016, also using KPHL’s Vendor Finance.

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