Kina Petroleun eager to progress with project developement

KINA Petroleum Ltd is keen to progress the development of the PPL 339 license area in Gulf, managing director Richard Schroder says.

This followed the decision by Oil Search Ltd to commit to the drilling phase of the license farm-in under the terms of an existing agreement between KPL and Oil Search.

Schroeder said Oil Search’s decision confirmed Kina’s view of the prospects at the license area, and reflected its attractive location adjacent to the Elk/Antelope field in PRL 15.

 “The abundant oil and gas seeps in the vicinity of cassowary and Bowerbird high-grades this area for investigation by drilling. 

“Its proximity to the coastline improves the chances of commercialisation in the event of success,” he said.

“We look forwards to progressing activity in the license as we move towards drilling.”

Oil Search’s decision to drill followed substantial technical evaluation of the data acquired from 2 seismic programmes and an airborne gravity survey between 2011 and the end of last year that enabled KPL to delineate a shallow prospect on the Cassowary trend.

Pursuant to the agreement, Oil Search in return for the drilling will acquire a 70 per cent participating interest in, and the operatorship of the licence while KPL will participate with a 30 per cent interest.

KPL and Oil Search will investigate the possibility of drilling prospects in PPL 339 using the drilling technology currently being employed on the Raintree-1 well in PPL 337.