LNG Energy, Heritage Oil Enter Into Farm-In Agreement (PNG)

LNG Energy said that its subsidiaries, Telemu No. 18 Limited, LNG Energy (PNG) Limited and LNG Energy No. 2 Limited, have entered into a farm-in agreement with wholly owned subsidiaries of Heritage Oil Plc.

In exchange for an 80% participating interest in the PPL 319 and PRL 13 licenses, Heritage will make a cash payment to Telemu of US$4 million, fund the acquisition of a minimum of 100 km of seismic within the license areas and fund the drilling of one exploration well in PPL 319 to a depth sufficient to test identified exploration targets. Closing is subject to certain conditions including customary government approvals. On closing, Heritage will become the operator under both licenses.

“We are pleased to welcome Heritage to PNG and to our PPL 319 and PRL 13 licenses. Heritage’s investment, particularly with regards to the Tuyuwopi prospect previously identified on PPL 319 will greatly advance the project. Heritage has been an extremely effective explorer and we look forward to working with them as we continue to actively explore a very prospective area in Papua New Guinea,” commented David Nelson, President & CEO of LNG.

The acquisition phase of the 22 km seismic program by LNG announced on January 24, 2013 was completed on March 31st. Upon closing, Heritage has the option of expanding the seismic program during the current dry season.

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LNG World News Staff, April 02, 2013; Image: LNG Energy