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+--- Thread: NGE unloads PPL 227 to OSH & XOM (/showthread.php?tid=478)
- maui4marko - 03-07-2012
07 March 2012
PPL 277 SALE
New Guinea Energy Limited (NGE) is pleased to announce that it has signed agreements with Esso PNG Exploration Ltd (Esso), a subsidiary of Exxon Mobil Corporation, and Oil
Search (PNG) Limited (OSH) regarding Petroleum Prospecting Licence (PPL) 277, currently held by Kingsbury Limited (Kingsbury), one of NGE’s wholly owned subsidiaries.
Under the terms of the agreements, and contingent on receipt of the next extension of PPL 277 and other requisite government approvals, Esso and OSH will each acquire 50% of the working interests in PPL 277 in exchange for a total of US$15 million (Esso US$7.5 million, OSH US$7.5 million).
Subject to further conditions, NGE may become entitled to an additional US$20 million if a Petroleum Development Licence (PDL) is granted, and if commercial production occurs, a royalty over all revenue received from the petroleum produced and sold (Royalty).
It is difficult to assign a value to these additional rights as they depend on a number of factors and contingencies which are outside NGE’s control, e.g. discovery of petroleum, size of petroleum discoveries, commercial viability of any development, timing of production, LNG pricing at the time of production and other economic and financing contingencies. For illustrative purposes, and assuming all of the contingencies have been met, NGE’s view of the potential value to NGE for recovered petroleum from PPL 277 is summarised in the table below (applying current economic parameters).
The first exploration activity near PPL 277 will be via Esso and OSH’s drilling of Trapia-1 on the border of PRL 11 and PPL 277 during the first half of 2012. Trapia is a large structure within PRL 11 close to the PNG LNG infrastructure and east of the Hides and Angore fields and may overlap into PPL 277.
NGE Chief Executive Officer, Grant Worner commented, “These agreements are a potential game-changer for NGE and represent a tremendous outcome for our company as they:
recognise the value of NGE’s properties;
reduce NGE’s risk and capital obligations associated with working in the PNG highlands;
and
provide NGE with high-side exposure and a source of ongoing revenue in the event of commercial development.”
- maui4marko - 03-07-2012
>> and the OSH presser
PURCHASE OF INTEREST IN PPL 227
7 MARCH 2012
A U S T R A L I A N R E G I S T E R E D O F F I C E
Level 27 Angel Place, 123 Pitt Street, Sydney NSW 2000 Australia.
GPO Box 2442, Sydney NSW 2001 Australia.
Telephone: (61) 2 8207 8400 Facsimile: (61) 2 8207 8500
Oil Search is pleased to report that it has acquired a 50% interest in PPL 277 from Kingsbury Limited, a wholly owned subsidiary of New Guinea Energy (NGE). The consideration for the purchase comprises a cash payment of US$7.5 million. The transaction is subject to a number of conditions precedent, including Ministerial approval and licence specific conditions.
Subject to further conditions, NGE may be entitled to an additional US$10 million from Oil Search if a Petroleum Development Licence (PDL) is granted and a royalty if commercial production occurs.
Esso PNG Exploration Limited, an ExxonMobil affiliate, has agreed with NGE to acquire the remaining 50% interest in the licence.
Commenting on the transaction, Peter Botten, Oil Search's Managing Director said:
"PPL 277 is located in the PNG Highlands and adjoins several licences in which Oil Search holds interests. These include the PDL 8 licence, which contains the Angore PNG LNG Project gas field and PRL 11, which contains the Trapia prospect, due to be drilled following the P’nyang South well.
Based on the regional study that was undertaken as part of the 2010 Strategic Review, we believe the licence is prospective for gas and in an optimal location for future developments."
- Tusker - 03-07-2012
Gosh,
Looks like XOM/OSH is searching for additional resources. What ever for?
Are they coming up a bit short?
Ho Ho Ho
- Tree - 03-07-2012
Gee,
Why would XOM/OSH look way north in mid island at the smallest of the Pearl's?? Can't they afford the biggest and best??
Ho Ho Ho
- maui4marko - 03-07-2012
Did you catch the comment WA made at RJ Monday regarding how Tuna looks very similar to Ant with reef build-up, along with offshore similar structures?
Might be nothing (I'll have to go back & listen again) but it seemed like WA had more knowledge of the offshore reef structures than he was letting on.
I vaguely recall IOC used to have offshore lease(s) but did they have data at that time indicating there are offshore reefs? Or does WA have access to more recent data indicating the same, only wouldn't it have to come from a potential partner with recent data? Could it be the result of some long-term proposal/planning with our neighbors? Or should I just go pour another fine 8 year old Canadian blended whiskey and enjoy the smell of T-2 condensate blowing in on the gentle trades?
PS tree, luv the new look. Glad to see you cleaned up before getting your official work-release photo ID.
- Palm - 03-07-2012
So our "leetle friend" is starting to pay off! Grabbed a chunk of shares a year ago and have just tucked them away for many years down the road. The "pearls" are showing their buried treasure value!
- sageo - 03-08-2012
Maui-Good evening.I did catch WA's comment about our prospect Tuna in PPL236. Since we are waiting on roadway completion to haul rig from napanapa to E/A 3 location, could you ask WA to stop off (briefly) and punch small hole at Tuna? That way,Xom/Osh could save money by not having to drill ppl277 so soon to get much needed NG.Ha-ha! Good luck to all.