Kina Petroleum farms out majority stake in Papua New Guinea petroleum licence

Tuesday, July 02, 2013 by Bevis Yeo
Proactive Investors

Kina Petroleum (ASX: KPL) has reached a deal to farm up to 64% of PPL 340 in Papua New Guinea to Hunt Energy and Mineral in return for a carry through certain work program items.

 



Hunt, part of the Pacific Hunt Group – an affiliate of Holloman Corporation – will carry Kina through a 5,400km aeromagnetic/gravity survey in the south eastern part of the licence and a seismic program of between 75km and 150km to earn a 32% interest in PPL 340.

Hunt then has the option to acquire an additional 32% in the licence upon drilling one well. This will leave Kina with a 36% interest in the licence.

The US $13.2 million work program will target/test a reefal trend believed to extend south east of InterOil’s (NYSE: IOC) Antelope gas discovery.

The recent selection of ExxonMobil as the preferred candidate to facilitate development of Antelope is also likely to result in work accelerating along what could be an extension of the Antelope trend.