Horizon Oil announced that it has executed a farmin agreement with Eaglewood Energy Inc. to earn a 25% interest in PPL 259 in Western Province, Papua New Guinea.
Under the terms of the farmout agreement, after receipt of requisite government approvals transferring a 25% participating interest share in PPL 259, Horizon Oil will reimburse a proportionate share of Eaglewood’s PPL 259 sunk costs (approximately US$2.5 m) and will carry Eaglewood for future seismic and drilling costs to a capped amount of US$6.375 m. The drilling program will be operated by Horizon Oil.
Horizon Oil’s Chief Executive Officer, Brent Emmett, commented:
“ At the AGM last November, we flagged our intention of bulking up the Company’s acreage position around what we see as the sweet spot for liquids-rich gas in the Papuan Basin foreland, which is centred on our planned production hubs at Stanley and Elevala/Ketu. The acquisition of a 25% interest in PPL 259 is part of this strategy and is timely, given the recent drilling success at Elevala-2.
We believe the acquisition will deliver a number of benefits:
[mappress]
LNG World News Staff, January 24, 2012