Oil Search announces 120307 purchase of interest in PPL 277

Wednesday, March 7, 2012      
  • The consideration for the purchase comprises a cash payment of US$7.5 million.

Oil Search is pleased to report that it has acquired a 50% interest in PPL 277 from Kingsbury Limited, a wholly owned subsidiary of New Guinea Energy (NGE). The consideration for the purchase comprises a cash payment of US$7.5 million. The transaction is subject to a number of conditions precedent, including Ministerial approval and licence specific conditions.

Subject to further conditions, NGE may be entitled to an additional US$10 million from Oil Search if a Petroleum Development Licence (PDL) is granted and a royalty if commercial production occurs.

Esso PNG Exploration Limited, an ExxonMobil affiliate, has agreed with NGE to acquire the remaining 50% interest in the licence.

Commenting on the transaction, Peter Botten, Oil Search's Managing Director said:

"PPL 277 is located in the PNG Highlands and adjoins several licences in which Oil Search holds interests. These include the PDL 8 licence, which contains the Angore PNG LNG Project gas field and PRL 11, which contains the Trapia prospect, due to be drilled following the P'nyang South well.

Based on the regional study that was undertaken as part of the 2010 Strategic Review, we believe the licence is prospective for gas and in an optimal location for future developments."


Join 80,000 oil and gas professionals who receive our weekly newsletter.

You may unsubscribe at any time with one click.

Article Tags

Oil Search ExxonMobil New Guinea Energy Papua New Guinea Australasia Acquisitions & Mergers Finance LNG

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Upcoming OilVoice Training Course

Petroleum Geology of East Africa
The course reviews the key regional controls on petroleum systems and prospectivity across East Africa, assessing both the recent discoveries and the numerous frontier basins in the region. It emphasises the impact of the tectonic history of this most active part of the African plate on the generati...
London - 21 Apr

Duncan MacGregor


Discount Code
OilVoice-10 for 10% off any course.View Course

All OilVoice Training Courses
Popular Headlines View all
Latest Opinion View all
Join 80,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Create profile
OilVoice Training All upcoming


OilVoice, established in 2002, is your leading source of upstream news, jobs and industry information.


Each week we send our weekly industry round-up. Why not try it? You may unsubscribe at any time.

Contact OilVoice

Milton Keynes
United Kingdom
Phone: +44 207 993 5991
Contact Us

Stay Connected

2015 © OilVoice  .  Privacy Policy  .  Terms of Service  .  Oil Careers  .  Advertise with us