Saturday, February 23, 2013

Oz duo win PNG licence

Australian duo Kina Petroleum and Cott Oil & Gas have been awarded a new licence in the Western Papuan basin, onshore Papua New Guinea.
The pair were successful in their application for licence PPL 437 which covers 18 graticular blocks over a 1104 square kilometre area.
Kina, which will take an 80% stake in the licence, said several leads had already been identified within the licence area.
It added those leads included potential extensions in the north of the acreage of prospects already identified in neighbouring licences, including the Ketu discovery in PRL 21 where Kina holds a 15% stake.
The firm work programme for the first two years of PPL 437 includes seismic reprocessing and acquisition of 50 kilometres of seismic data, with minimum commitments of A$200,000 (US$206,339.92) and A$3 million respectively.
Kina and Cott will also need to drill at least one well, with a minimum commitment of A$200,000, or carry out an additional seismic shoot, with a minimum commitment of A$3 million, if a suitable drilling target is not identified from the first seismic survey.
“The award of PPL 437 builds upon the recent awards of PPLs 435 and 436 and sees Kina take the dominant acreage position in the Western Papuan basin and we will look to attract partners to this acreage as we conduct activities in the near term and exploit the licence’s potential,” said Kina managing director, Richard Schroder.
“This position is consistent with our strategy to grow our footprint in the established and proven Mesozoic gas and liquids play of the Papuan basin and compliments our already strong position in the emerging gas play in the Eastern Papuan basin.”
Kina and Cott were awarded PPL 436 in December last year, just one month after securing a 50% stake each in PPL 435.

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