Heritage Oil to acquire interest in Papua New Guinea exploration blocks

Heritage Oil has agreed to farm-in to two exploration blocks with Kina Petroleum located onshore in Papua New Guinea.

The two licences, Petroleum Prospecting Licence No: 337 (PPL 337) and Petroleum Prospecting Licence No: 437 (PPL 437), have gross areas of around 5,508km² and 1,530km² respectively.

Located in the Ramu Sub Basin within the south-eastern part of the North New Guinea Basin, the principal targets of PPL 337 include the large Banam anticline with an area of over 200km² and potential reef structures in the north of the licence.

Heritage will earn a 70% working interest in PPL 337 and be appointed as operator, and a 30% working interest in PPL 437, with an option to acquire a further 20% interest and operatorship.

In return for earning a 70% working interest and operatorship in PPL 337, the company will fund the costs of drilling two shallow exploration wells.

Heritage will also make a $500,000 contribution to Kina Petroleum’s back costs on the licence, and in the event of a discovery will carry Kina Petroleum’s costs of up to 100km of appraisal seismic data.

The company will also carry costs of up to 100km of appraisal seismic data and make a $300,000 contribution to back costs on the PPL 437 licence.

The PPL 437 licence is located in a hydrocarbon system less than 20km north of the Elevala and Ketu c.1.0 TCF gas condensate fields.

Heritage Oil chief executive officer Tony Buckingham said that the Papua New Guinea region provides an opportunity for highly commercial exploration in prolific hydrocarbon provinces.

"We believe these farm-ins to be key additions to our existing licence portfolio in Papua New Guinea, entered into earlier this year, and view this region as a core area of our exploration portfolio," Buckingham said.

---

Image: PPL 337 and PPL 437 have gross areas of around 5,508km² and 1,530km² respectively. Photo: courtesy of Meredithw.