Eaglewood Energy Adds Acreage in Papua New Guinea

Eaglewood Energy Inc. announced that the Minister for Petroleum and Energy for Papua New Guinea (PNG) has offered Eaglewood and Ketu Petroleum Limited, a wholly owned subsidiary of Horizon Oil Limited, Petroleum Prospecting License 430, a license for which Eaglewood and Ketu had previously applied. The license comprises eight graticular blocks and is located immediately south of PPL 259 in the Western Province of PNG. It covers a total area of 251 square miles (649 square kilometers) and is 19 miles (30 kilometers) south of gas and condensate discoveries of Ubuntu in PRL 28 and Elevala and Ketu in PRL 21. The main provincial town of Kiunga, situated on the Fly River, is located 31 miles (50 kilometers) to the northwest of PPL 430. Eaglewood and Ketu, as joint venture parties have been awarded an equal 50:50 interest in PPL 430, with Ketu nominated as the Operator.

The term of PPL 430 is six years, effective from the date of the grant. The work commitments associated with the grant in the first two years are to conduct technical studies on the license and acquire approximately 12 miles (20 kilometers) of seismic at a cost to the Joint Venture of no less than $1,000,000. In years three and four, contingent on the results of those studies, the Joint Venture will drill an exploration well and in years five and six, contingent on a discovery, drill a further well.

CEO Brad Hurtubise commented, "We are pleased to have been offered PPL 430. We had previously owned the blocks in PPL 430 as they are some of the blocks we had to relinquish as part of our license extension of PPL 259, and we wanted them back. PPL 430 is immediately adjacent to PPL 259, it is right in the heart of the very active PNG forelands gas and gas condensate fairway, characterised by very high success rates and in close proximity to over a TCF of discovered gas. The Joint Venture have accepted the offer and expect the formal grant of the instrument in the next few months."


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