Talisman buys stakes in two Aussie energy firms
Rick Wilkinson
OGJ Correspondent
MELBOURNE, Sept. 1 -- Talisman Energy Inc., Calgary, increased its exploration holdings in Papua New Guinea by purchasing the stakes of two Australian companies—Cue Energy Resources Ltd. and Mosaic Oil Ltd.—in onshore retention lease PRL8 in the foreland region.
Cue sold its 10.72% interest to Talisman for $5.14 million (US) while this week Mosaic revealed it received $11 million (Aus.) for its 28.57% stake.
PRL8 contains the undeveloped Kimu gas field.
In addition to the initial cash payment, Mosaic will receive a contingent cash payment of either 10¢/GJ for any 2P reserve increases to Dec. 31, 2012, or a firm and fixed amount of $2.7 million (Aus.) cash at any time before the proposed Kimu appraisal well is drilled.
Talisman’s contract with Mosaic specifies that Talisman will, at no cost to Mosaic, drill an appraisal well and undertake corresponding reserves certification work to determine the contingent reserves payment before yearend 2012.
Mosaic’s sale marks its exit from Papua New Guinea. Cue, however, still holds interests in the producing Southeast Gobe oil field, as well as an interest in PPL 190, which contains the Cobra, Bilip, and Iehi gas discoveries; and an interest in the Barikewa gas field in retention lease PRL 9.
Talisman now has an interest in 13 exploration-retention leases in Papua New Guinea.