Kina Petroleum prospects ‘bright’

By YEHIURA HRIEHWAZI
THE soon-to-be-listed Kina Petroleum Ltd is involved in some exciting prospects that could easily turn this relatively newcomer in the oil and gas industry into a much-sought-after buy.
It is expected to lodge its prospectus by the end of next week and then float 62.5 million shares soon after on the Port Moresby Stock Exchange and simultaneously on the Australian stock Exchange.
Oil Search Ltd was involved in a farm-in arrangement with Kina’s petroleum prospecting licenses 338 and 339 in the Gulf province.
It paid up US$9 million to Kina and carried out seismic survey in the areas.
In its half-yearly report, OSL said that a 2D seismic programme in the areas had been completed and the initial results were “encouraging”.
“The initial integrated results of the total programme are expected to be available in the fourth quarter of this year,” the company said.
OSL will drill two wells in the licences next year as part of its aggressive US$200 million exploration programme in PNG.
Kina managing director Richard Schroder told The National newspaper that the company (Kina) was also expected to spend K33 million each on two wells in petroleum retention licence (PRL) 21: the Elevala2 well and Ketu2 well.
In an “investor presentation highlight” booklet, Kina described PRL 21 as its “key asset”.
 It has a 20% interest over this licence which already contained two wet discoveries of substantial gas (480BCF) and condensate (25MMbbl). Talisman Energy of Canada has the operatorship over PRL21.
It said Kina’s board and management had “significant experience” in the oil and gas sector and long-standing expertise of PNG.
The board of directors of Kina includes John Prendiville (non-executive chairman) with 20 years experience in corporate financing with the Macquarie bank and is chairman of Macquarie Capital Advisers.
Another non-executive director is Dr Ila Temu, who is currently director of corporate affairs Australia Pacific for Barrick Gold.
Port Moresby businessman and chairman of TST Group of companies Barry Tan is also another non-executive director.
They are supported by Schroder as the managing director.
Schroder has 30-plus years of oil and gas experience in UK, Norwegian sectors of the North Sea, Africa, Indonesia, PNG, New Zealand and onshore-offshore Australia.
More than 20 years of that was spent in PNG, in which he drilled 11 wells of which one was currently producing and three were oil and gas intersections.
Kina’s technical team include Ian Longley with over 25 years experience as a geologist with large companies like Shell, Woodside Energy and Oil Search Ltd.