02 April 2013, London – listed Heritage Oil has entered a farm-in agreement with LNG Energy to earn a stake in two onshore licences in Papua New Guinea.
Under the farm-in agreement, Heritage will take an 80% operated interest in PPL 319 and PRL 13 from LNG Energy by funding the acquisition of at least 100 kilometres of new seismic and the drilling of one exploration well.
In addition, it will also pay LNG Energy $4 million in back costs on the licences.
Heritage said assessment of the legacy dataset, which includes 250 kilometres of 2D seismic and high resolution magnetic and gravity surveys, had identified a potential local source kitchen with more than seven kilometres of section.
Heritage’s new seismic shoot will focus on the Tuyuwopi structure in PPL 319, where another seismic campaign was recently wrapped up on 31 March, with the intention of progressing the Tuyuwopi structure to a drillable prospect next year.
Both PPL 319 and PRL 13 are situated close to current and under-construction infrastructure with the Kutubu oil export pipeline and the PNG liquefied natural gas pipeline crossing the acreage.
Heritage noted that the Kikori River also provided a link to the open sea for both licences, further increasing transport options.
*Josh Lewis, Upstreamonline
