Kina Petroleum Limited (KPL) announced that it has farmed out part of its interest in PPL 340 to Hunt Energy and Mineral (PNG) Limited (Hunt), part of the Pacific Hunt Group, an affiliate of Texas, U.S. based Holloman Corporation.
Pacific Hunt have an integrated energy and energy services business focused on the Pacific Rim including Papua New Guinea, while Holloman's presence in Papua New Guinea is as a provider of services to the broader resources and construction industry.
The farmout agreement provides for Hunt to earn equity in the license by carrying KPL through certain work program items. Specifically:
The work program is of a value of up to $13.2 million in total and will target/test a reefal trend believed to extend south east of the Antelope discovery. Outcrop and seismic data to the northeast of the proposed work area suggests the presence of mounded structures consistent with possible subsurface reef development.
The parties intend for the work program to commence as soon as possible and contracts will be called for the aeromagnetic/gravity and seismic phase immediately.
Kina is also encouraged by the high level of interest in its other permits and expects to announce other farmouts on other permits over the coming months.
Kina Petroleum's Managing Director Richard Schroder, commented:
"We are pleased to welcome Hunt as a partner into PPL 340 to exploit the potential we see in the license. In addition to fulfillment of the license's work program commitments through to end 2015, their entry will extend exploration activity into an area that has not seen activity since 1987 and brings hydrocarbon exploration to the doorstep of Port Moresby itself, the hub of the soon to commence PNG LNG Project and an energy market in its own right.
Furthermore KPL is most encouraged by the recent announcement that Exxon Mobil Corp. is the preferred candidate to facilitate development of the Antelope field to the northwest of our proposed work area and we see Hunt's entry into PPL 340 as a means of accelerating work along what could be an extension of the Antelope trand into the national capital itself."
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