Kina to expand exploration

KINA Petroleum Limited says in keeping with its policy of not committing funds to high risk activities, it is looking at farming out its funding exposure to material future exploration licence commitments.
The company in its quarterly activities report (April 1 to June 30) said oil and gas prices had remained low and Kina remained focused on assets which clearly demonstrated value to its shareholders as forecast in the last quarter.
Kina Petroleum Limited has, at the end of this period, participating interests in Petroleum Retention Licences 21 and 38 and in six exploration licences around the country.
“Kina Petroleum Limited in keeping with its policy of not committing funds to high risk activity will look to farm out its funding exposure to material future exploration licence expenditure commitments,” the company said.
Its interest in the Eastern Papuan Basin remains high with ExxonMobil bidding US$45 (K140) per share for InterOil Limited, which is US$4.75 (K14.79) more than Oil Search’s offer of US$40.25 (K125.33) per share in May.
“ExxonMobil’s offer values Interoil’s acreage – immediately adjacent to Kina’s Petroleum Prospective Licence (338, 339 and 340) – at nearly US$2.3 billion (K7.16 billion) not including any resource based contingent value rights.
“Kina has completed its assessment of PPLs 338, 339 and 340 and recognises significant large structures to the north west of Triceratops, south west of the giant Antelope field and southeast of Antelope in PPL 339.
“Whatever the outcome of the InterOil take over there remains very large upside in Kina’s licences.”