Eaglewood Energy Inc. is pleased to announce today that, together with Eaglewood’s wholly-owned subsidiary, Eaglewood Energy (BVI) Limited, it has signed a farmout agreement with Talisman Energy Niugini Limited with respect to the Ubuntu prospect on its PPL 259 license in the forelands of PNG.
Under the terms of the Agreement, Talisman will contractually earn a 50 percent participating interest in the two graticular blocks of PPL 259 containing the Ubuntu prospect by paying US$4,500,000, comprised of Talisman’s acquisition of engineering work to date on river transport and liquids handling designs and previous expenditures on the Ubuntu prospect.
In addition, Talisman will pay 50 percent of the drilling and its other participating interest costs going forward. The first well on the prospect, Ubuntu-1, is scheduled to begin drilling in November of this year.
The completion of the farm-out is subject to certain conditions precedent, including the delivery of certain ancillary documents, some of which will be pledged as security by Eaglewood against its obligations under the Agreement.
Eaglewood’s CEO Brad Hurtubise commented: “We are delighted to be working with Talisman on this prospect as they are so actively involved in the PNG Forelands. This transaction will allow the regional players to better cooperate and coordinate to manage the logistics of our respective work programs. Our shared vision of a condensate stripping operation to begin the monetization of the regional hydrocarbon assets prior to LNG production can be accelerated with this transaction and we look forward to developing this important relationship further.
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Source: Eaglewood Energy , November 11, 2010