NGE: Last year’s repositioning vital move

 NEW Guinea Energy Ltd (NGE) repositioned itself last year to improve from the previous year, a move which the company described as significant.

In last year’s annual report, NGE said it took necessary measures to overcome some of its key challenges, including:

• Selling the company’s 50% interest in PPL 269 for up to US$40 million (K90 million). PPL 269 occupies an area of 8,995sqkm in Western, including foreland and foldbelt structural terranes;
• Resolving arbitration proceedings with subisidaries of Talisman Energy Ltd and Mitsubishi Corporation;
• Positioning itself (NGE) to receive dividends from the company’s 50% investment in Western Drilling Limited (WDL) assets; and
• Ensuring coverage of A$22 million (K49 million) in principal of convertible equity bonds.

In a statement, CEO Grant Worner said these achievements were providing the opportunity for the company to explore some of the high potential oil targets in its remaining licences.

NGE said that in July last year, it signed a deal with a subsidiary of ExxonMobil for the sale of its 50% interest in PPL 269. 

However, ExxonMobil decided not to proceed with this sale, prompting NGE to offer the property (PPL 269) to a subsidiary of Santos Ltd.

Subsequently, a deal was struck with the subsidiary company towards the end of last year.

NGE said it was looking forward to complete the sale with Santos.