Kina likely to capitalize on Exxon involvement in EA

[Palm]

Exxon involvement is like having EF Hutton speak. When Exxon gets involved, thing happen and get done. Kina expects to capitalize also.

"Kina stakes

KINA Petroleum has reached a deal to farm up to 64% of Petroleum Prospecting Licence (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 5,400 kilometre aeromagnetic/gravity survey in the south eastern part of the licence and a seismic program of between 75 kilometres and 150 kilometres 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 K29.86 million ($13.2 million) work program will target/test a reefal trend believed to extend south east of InterOil’s 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."

[Justin94360]

Kina farms out

Wednesday, 3 July 2013 KINA Petroleum has farmed out a nearly one-third stake of its underexplored PPL 340 in Papua New Guinea to South Australia-based drilling company Hunt Energy and Mineral. Hunt's Rig#2 will be mobilised to PNG. PPL340 map courtesy of Kina Petroleum. Hunt will earn a 32% stake in this licence for completing an aeromagnetic and gravity survey over a portion of the southern licence in Central province and a seismic survey following that. Kina has previously flagged that a reef-targeting well could be spudded in this licence in 2014, pending seismic results. Hunt aims to move its Rig number two from Victoria to PNG this quarter. Under its deal with Kina, Hunt can acquire an additional 32% of PPL 340 if it drills a well there. This provides for a possible work program of up to $US13.2 million that could give Hunt a 65% stake of PPL 340. Kina managing director Richard Schroeder is encouraged by the potential of Hunt as a partner. “In addition to fulfilment of the licence’s work program commitments through to end 2015, their entry will extend exploration activity into an area that has not seen activity since 1987 and brings hydrocarbon exploration to the doorstep of Port Moresby itself, the hub of the soon to commence PNG LNG Project and an energy market in its own right,” he said. “Furthermore Kina is most encouraged by the recent announcement that ExxonMobil is the preferred candidate to facilitate development of Antelope Field to the northwest of our proposed work area and we see Hunt’s entry into PPL 340 as a means of accelerating work along what could be an extension of the Antelope trend into the national capital itself.” Kina said Hunt was part of the Pacific Hunt Group which was an affiliate of US-based upstream and midstream contractor Holloman Corporation. Due to “high interest” in its other tenements, Kina expects to make more farmout announcements over the coming months. Click here to read the rest of today's news stories.