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."

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

Join 70,000 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!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • 99 Red Balloons...
    ...was the title of an anti-nuclear protest song by the German singer Nena and her group of the same name, released in German in 1983 and in English in 1984. It came into my head ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Introduction to Oil and Gas Exploration and Production
Dr Helen Turnell, London, 02 Oct 2014

Integrated Subsurface Description for Reservoir Development & Production
Mike Bowman, London, 15 Oct 2014

Delivering Information Management
Alan Smith, London, 28 Oct 2014

All Upcoming Training


Opinions & Commentary

99 Red Balloons...

by David Bamford

Read More »