A unit of Heritage Oil PLC will take a farmout from LNG Energy Ltd.’s Telemu No. 18 Ltd. subsidiary to earn an 80% interest in the PPL 319 and PRL 13 licenses in Papua New Guinea.
On closing, Heritage will become operator and will earn the interest by paying Telemu $4 million cash, funding the shooting of at least 100 line-km of seismic on the licenses, and funding the drilling of one exploratory well in PPL 319 to a depth sufficient to test identified targets. LNG Energy completed a 22-km seismic program on Mar. 31.
LNG Energy said, “Heritage’s investment, particularly with regards to the Tuyuwopi prospect previously identified on PPL 319 will greatly advance the project.” LNG Energy has identified structural leads on PPL 319, which lies in the lowland area of the Papuan fold and thrust belt on trend with Oil Search Ltd.’s Kutubu and Gobe producing oil fields.
LNG Energy holds 68.5% interest in four PPLs that total 5.5 million acres in Papua New Guinea and has a 100% interest in 42,000-acre PRL 13.
Enterprise Energy Resources Ltd., Vancouver, BC, noted that it owns 15.75% of Telemu through its 50% owned subsidiary EERL Holdings (BVI) Ltd.