Long licence battle ends

EAGLEWOOD Energy has a five-year extension to its Sepik Basin licence (PPL 258). However, New Guinea Energy is being held back by licence renewal delays for two tenements, despite its aim to spud wells.
Long licence battle ends Long licence battle ends Long licence battle ends Long licence battle ends Long licence battle ends

The difficulties faced in receiving licence renewals from the Department of Petroleum and Energy are well known by PNG's petroleum players.

Eaglewood chief executive officer Brad Hurtubise was clearly relieved to get its PPL 258 (Eaglewood 100%) renewal.

"We are pleased to have finally received the extension confirming our ownership of the licence and required work commitments," he said.

"This formal extension has taken some time and was needed in order to initiate any activity or transactions with respect to the licence. This extension allows us to get on with the business of proving up the prospectivity of our licence acreage".

Meanwhile, fellow PNG explorer NGE is still battling for two licence renewals.

NGE lodged an application to extend the licence period for its wholly owned PPL 266 in Western province on February 22. In its half-year report yesterday, NGE said it is still seeking clarification on the status of this extension request.

The explorer aims to apply for extending its neighbouring licence, PPL 255, and aims to drill for either oil or gas plays across the two licence areas on the back of bringing in a joint venture partner, with unrevealed companies already expressing interest.

In regards to PPL 267 in the southeast of Western province, NGE also submitted an application to extend the licence period and exploration expenditure program to the petroleum department on February 22.

"NGE has suspended exploration activity in this block until formal approval of the extension is in hand," the explorer said.

PNGIndustryNews.net understands that the PPL 258 renewal took more than a year.

Disclosure: Aspermont Limited, publisher of PNGIndustryNews.net, holds shares in NGE.

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