Eaglewood joins Stanley JV

OIL and gas explorer Eaglewood Energy has signed a deal to formally join the Stanley Field Joint Venture in Papua New Guinea.
Eaglewood joins Stanley JV Eaglewood joins Stanley JV Eaglewood joins Stanley JV Eaglewood joins Stanley JV Eaglewood joins Stanley JV

Eaglewood confirmed it had executed a unitisation agreement with the PRL-4 (Stanley field) JV to formally become a participant in the gas condensate development.

The company's equity participation will be determined over the 90-120 days, with the project moving towards first condensate production expected in late 2015.

Upon the determination of Eaglewood's equity participation in the Stanley development, the company expects to fund its commitments from a combination of existing cash reserves, a bridge financing facility provided by one of the Stanley participants and additional equity from a strategic partner or capital markets.

Eaglewood is also in discussions with debt providers.

Project operator Horizon Oil expects petroleum development licence 10 will be awarded to the Stanley project by the end of the year.

Initial condensate production is forecast to be approximately 4000 barrels per day and gas will initially be recycled until gas sales contracts are finalised.

"We are very pleased to finally be officially participating in the Stanley development," Eaglewood CEO Brad Hurtubise said.

"With the recently announced farm-out of 20% of our PPL 259 licence, the Nama well we will be drilling next year is fully funded and is expected to be tied into Stanley.

"The Stanley development is the first hydrocarbon development project in the Western Province and, given its proximity to PPL259, it is strategically very important for Eaglewood to be in this project and the key infrastructure that will be constructed.

"As a condensate recovery project the economics are very positive and can be substantially improved with a gas sales contract.

"As a participant in the project Eaglewood can elect to market its gas with the joint venture or independently.

"Once our equity position is finalised we will be actively pursuing local gas sales opportunities."

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