The National, Monday October 28th, 2013
HERITAGE Oil said it has agreed with Kina Petroleum Ltd to farm-in to two licences onshore in Papua New Guinea.
The exploration company said it would earn a 70% working interest in the 5,508sqkm PPL337 site and be appointed operator, earning an initial 30% working interest in the PPL437 site with an option to acquire a further 20% interest and operatorship.
The company said the PPL337 exploration licence has identifiable drilling prospects and the PPL437 site is located in a proven hydrocarbon system east of the major Stanley oilfield.
Heritage said it would fund the costs of drilling two shallow exploration wells and make a US$500,000 (K1.2 million) contribution to Kina Petroleum in return for the PPL337 site, while in the event of a discovery, Heritage would carry Kina Petroleum’s costs of up to 100km of appraisal seismic data.