Heritage Oil Enhances Exploration Portfolio With A Farm-in Agreement in Papua New Guinea
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Heritage Oil Plc (TSX:HOC)(LSE:HOIL) (“Heritage” or the “Company”), an independent upstream exploration and production company, today announces that it has agreed with LNG Energy Ltd. (“LNG Energy”) to farm-in to two licences onshore Papua New Guinea (“PNG”). On completion Heritage will be appointed the operator.
— Two licences, Petroleum Prospecting Licence No:319 (“PPL 319”) and
Petroleum Retention Licence No:13 (“PRL 13”), have gross areas of
approximately 2,025 and 160 square kilometres respectively
— Heritage will earn an 80% working interest in each licence and be
— The licences are located in a known hydrocarbon bearing region that
includes the multi-TCF Triceratops and Elk/Antelope discoveries
— Seismic was recently acquired on PPL 319
— The work programme will be expanded with further seismic acquisition and
— Heritage management believe there is additional exploration potential
within both of the licences
Heritage has agreed to acquire an 80% working interest in PPL 319 and PRL 13 from subsidiary companies of LNG Energy. In return for earning the working interests and operatorship Heritage will fund the costs of the seismic acquisition and the cost of drilling an exploration well. In addition Heritage will make a US$4 million contribution to LNG Energy’s back costs on the licences.
The licences are located onshore PNG at the junction of the Papuan fold belt and the Miocene carbonate platform where there are multiple producing fields and discoveries including the multi-TCF Triceratops and Elk/Antelope discoveries. The licences are close to current and under-construction infrastructure with the Kutubu oil export pipeline and the PNG Liquefied Natural Gas pipeline crossing the acreage. The licences also benefit from the Kikori River providing a link to the open sea thereby increasing transport options.
Assessment of the legacy dataset, which includes c.250 kilometres of 2D seismic data and high resolution magnetic and gravity surveys, has identified a potential local source kitchen with more than seven kilometres of section. This potential is being further evaluated through the recent acquisition of seismic data across the Tuyuwopi structure in PPL 319 which completed 31 March 2013. Heritage intends to enlarge this seismic programme by funding a minimum of 100 kilometres of seismic data with the intention of progressing the Tuyuwopi structure to a drillable prospect in 2014 and to assess additional upside of the licences.
Farm-in completion is expected within the short term, subject to customary conditions precedent including governmental approvals which the Company expects will be met.
Tony Buckingham, Chief Executive Officer, commented:
“We are delighted to announce the expansion and diversification of our exploration portfolio with this entry into Papua New Guinea. We look forward to developing and accelerating the work programme as this acreage provides the opportunity to discover large gas deposits at a time when regional and global gas demand is increasing. We consider the region to be an attractive area both commercially and technically for supplying the premium East Asian gas markets.”
Notes to Editors
— Heritage is listed on the Main Market of the London Stock Exchange and
is a constituent of the FTSE 250 Index. The trading symbol is HOIL.
Heritage has a further listing on the Toronto Stock Exchange (TSX:HOC).
— Heritage is an independent upstream exploration and production company
engaged in the exploration for, and the development, production and
acquisition of, oil and gas in its core areas of Africa, the Middle East
— Heritage has producing assets in Nigeria and Russia and exploration
assets in Malta, Tanzania, Papua New Guinea (following completion of the
farm-in), Pakistan and Libya.
— All dollars are US$ unless otherwise stated.
— For further information please refer to our website,
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Source: Heritage Oil Plc
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