LNG Energy Engages RFC to Manage Farm-Out Process in PPL 319 (Papua New Guinea)

LNG Energy announced that it has engaged RFC Corporate Finance, based in Sydney, to initiate and manage a farm-out process in respect of Papua New Guinea PPL 319 Licence.

PPL 319 is in the lowland area of the Papuan fold and thrust belt between several substantial oil and gas fields and is on-trend with Oil Search’s Kutubu and Gobe producing oil fields. 148km of 2D data was acquired during the periods April-June and October-December 2011 and was managed by GAMA ProjEx. The survey covered 67 km of alluvial river flats around the Kikori River, 59 km of karst limestone and 22 km of volcanic terrain.

PPL 319 contains mature Late Jurassic (Kimmeridgian) Lower Imburu Fm. source rocks that are presently generating hydrocarbons from adjacent local areas. LNG believes that PPL 319 contains clastic reservoirs of Lower Cretaceous-Upper Jurassic age (Toro-Hedinia-Iagifu) sandstones, particularly in the western area and the Kikori Bend area of the PPL 319 Licence. LNG believes the presence of source, seal, reservoir and structural traps on PPL 319 are extremely prospective along this hydrocarbon trend.

Probabilistic modeling was undertaken internally by LNG to evaluate the potential resource size of the Tuyuwopi Prospect. Although the estimates have not been audited by a qualified reserves evaluator or auditor, LNG believes the results of the 2D seismic program and internal modeling are encouraging. LNG is optimistic about the possibility of development in the area and strongly believes the results support further exploration of PPL 319.

“The work we have recently completed on PPL 319 has identified two significant prospects, of which Tuyuwopi is the most advanced.” stated Dave Afseth, President and CEO of LNG. “Given the supportive infrastructure and lowland location close to the river and oil pipeline, we are excited by the size and prospectivity of Tuyuwopi and anticipate a very positive response to this farm out process.”

[mappress]

LNG World News Staff, April 11, 2012