NGE, Talisman ink deal on exploration licences

AUSTRALIAN oil and gas exploration company New Guinea Energy Ltd (NGE) yesterday announced it has signed a heads of agreement with Canadian oil and gas exploration company Talisman Niugini Pty Ltd to vary the work programmes for each of petroleum prospecting licences 268 and PPL 269.
The agreement also would confirm the work plan and timetable for these licences in Western province.
NGE executive chairman Michael Arnett, in a statement yesterday, said: “I welcome Talisman’s enthusiasm and keen interest in PPL268 and PPL269 and look forward to success in the joint exploration of these two licences.
“That successful outcome will be shared by both our shareholders and the people of PNG alike,” Arnett said.
Last March, NGE had obtained ministerial approval for the following transfers to Talisman in accordance with the terms of NGE’s Farmout agreements with Talisman in respect of PPLs 268 and 269:
1) Transfer from NGE to Talisman of a 15% interest in PPL 268; and
2) Transfer from NGE to Talisman of a 50% interest in PPL 269.
Since then, Talisman assumed operatorship of PPLs 268 and 269.
As part of assuming operatorship, Talisman has completed a baseline assessment of the exploration potential on both PPL 268 and PPL 269.
The blocks contain the major geological structures.
The company statement said PPL 268 was  expected to have “buried hill” type structures similar to structures which have yielded discoveries across the Foreland basin.