Rawson Resources Ltd. reported Thursday that its wholly owned unit Dondonald Ltd. has entered into a Share Purchase Agreement (SPA) for Moira Ltd., which owns a 100 percent interest in petroleum prospecting license (PPL) 391 in Papua New Guinea's (PNG) North New Guinea Basin, encompassing the Matapau oil seeps and shallow wells.
The transaction, subject to regulatory approval, enlarges Rawson's North PNG Coast exploration portfolio and a further step in securing a high-growth, high-impact position in the PNG market. Donaldson will issues Moira shareholders a 10 percent stake in the company and a past cost payment of approximately $39,503 (AUD 53,000 or PGK 124,060) in exchange for the acquisition.
The company said PPL 391 contained mapped oil and gas seeps as well as historical oil production from the Matapau wells, providing a working petroleum system and believed there is further potential in a carbonate reef play, possibly extending south-east from PPL 549, which Rawson also have a 100 percent stake in. The initial work program focus will be on understanding the structural and geochemical aspects of the Matapau accumulation and Rawson is confident that one or more successful shallow ‘twin’ wells could provide a relatively quick and cost-effective commercial development option.
Have a news tip? Share it with Rigzone!
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you