The rig and associated equipment weighs about 700 tonnes, with the MV Hiri Chief vessel making a voyage to Port Moresby for customs clearance.

Once this is complete, the vessel will head west along with the MV Goada Chief which is loaded with drilling mud, cement and casing.

The well was scheduled to start this quarter but the company said this morning an updated timetable would be provided after customs clearance in Port Moresby.

"NGE looks forward to providing further updates with respect to its drilling program," the company said.

There are high hopes for the Panakawa-1 well in permit PPL 267, as the Panakawa prospect area includes surface oil seeps which flow up to 5 barrels a day.

NGE said it has identified a 100km trend of oil seeps in the area.

Disclosure: Aspermont, publisher of PNGIndustryNews.net, holds shares in New Guinea Energy.

Shares in the company are unchanged at 21.5c this morning.