A Canadian-based independent energy company entered into a letter of intent to acquire Cropwell Butler oil field within license PEDL 254 from Newton Energy Corporation (TSXV:NTN) on January 28, 2013. In addition, the Canadian-based independent energy company also agreed to acquire northwestern half of the adjacent license PEDL 204 from Newton Energy Corporation. This sale will include the transfer of the remaining exploration work program commitments on license PEDL 204.

Under the letter of intent t, Newton is also granting the Canadian-based independent energy company an option to purchase the remainder of license PEDL 254 and the entire PEDL 255, together with the corresponding work program commitments in consideration of a payment of CAD 0.33 million. Also, under the letter of intent, the Canadian-based independent energy company has agreed to cease all litigation against Newton for failing to offer the Canadian-based independent energy company pre-emption rights to PEDL 205. The deal will be subject to U.K. governmental regulatory approval by the Secretary of State for Energy and Climate Change, the necessary approvals from Alkane Energy Limited under the joint operating agreement for PEDL 254 and PEDL 255, and all other regulatory approvals including the TSX Venture Exchange.