Seismic Acquisition Completed on LNG Energy's PNG License
LNG Energy announced that the acquisition of 27km of 2D seismic on LNG's 100% working interest PPL 319 in Papua New Guinea has been completed. PPL 319 lies between InterOil Corporation's ("InterOil") recent Miocene aged Elk/Antelope discovery in PPLs 237 and 238 and the Mesozoic aged discoveries located within the licenses of ExxonMobil's US $15B field development and LNG liquefaction export infrastructure announced on December 7, 2009.
The seismic line is located 50m west of the boundary between PPL 319 and InterOil's PPL 237, within an area of mutual interest ("AMI") that has been agreed to by LNG and InterOil (see Press Release dated April 19, 2010). The 2D seismic acquisition program was designed, managed and field operated by InterOil and was completed both on time and on budget; 90 days and US $3.5MM, respectively.
Kelman Technologies performed the seismic processing, with InterOil and LNG having independently interpreted the data. Interpretation has provided a clear indication of significant Carbonate thickening within the historically gas charged Tertiary (Eocene through Miocene) and large deep seated structures within the historically oil charged Mesozoic (Triassic through Cretaceous).
The 27km of 2D seismic recently acquired and interpreted is providing LNG with the ability to integrate and "tune" the high resolution aeromagnetic & gravity (HRAM & Gravity) survey to identify additional adjacent prospects. The integration of all available data with the HRAM & Gravity interpretation by Integrated Geophysical Corporation, (IGC) of Houston, Texas, is consistent with LNG's stated goal of developing an inventory of proprietary prospects throughout the entire approximately 2,200 km2 area (540,000 acres) comprising PPL 319 and PRL 13 (please visit www.lngenergyltd.com to view the Press Release dated April 7, 2010 for more details). It is anticipated that IGC and LNG will have completed a prospect inventory for internal technical review by September 2010. All identified prospects will be rigorously evaluated, via industry standard exploration risk methodologies, to establish a prioritized inventory requiring additional technical input and 2D seismic to mature drillable prospects throughout LNG's acreage holdings within PPL 319 & PRL 13.
HRAM & Gravity in Northern Basins
The methodology of integrating all available historical exploration data, with LNG's recent HRAM & Gravity survey, will be repeated within the three northern PPLs; 320, 321 and 322. As a result of weather related delays, the completion of the northern PPL's HRAM & Gravity surveys were delayed by approximately 3 months and have just been completed. The northern PPLs are comprised of multiple tertiary aged basins that are known to contain active hydrocarbon seeps, while also being highly prospective for both the carbonate and sandstone reservoirs that outcrop at basin edges in near proximity. These northern PPLs are relatively unexplored when compared to the presently active foreland basin's exploration and development activity and provide LNG with an exciting growth arena of approximately 5 million acres at 100% working interest.