Santos snaps up PNG licence

SANTOS subsidiary Barracuda is taking a 50% interest in PNG petroleum prospecting licence 269 from New Guinea Energy’s Kirkland for an initial payment of $US32 million ($A41 million).
Santos snaps up PNG licence Santos snaps up PNG licence Santos snaps up PNG licence Santos snaps up PNG licence Santos snaps up PNG licence

The final condition precedent for the sale has been met, allowing the transaction to take place, with the PNG Minister for Petroleum and Energy also approving the transfer of the interest.

Santos will pay another $2 million in the event a retention licence is granted for any area within PPL 269 as well as $6 million in the case of a development licence.

If a development licence is granted before a retention licence, a one-off payment of $8 million will apply.

PPL 269 occupies an area of 8995sq.km in the Western Province and has five drillable prospects and 34 leads identified, with remapping and additions to lead inventory underway.

Adjacent licences contain major wet gas discoveries include Hides with 9.6 trillion cubic feet of gas, Juha (1.5Tcf) and Pnyang (1.2Tcf).

Santos is a foundation owner in the ExxonMobil led PNG LNG project, holding a 13.5% interest.

NGE has also advised that it has failed to attain an extension to its PPL 265 licence, which it applied for in 2012.

The company has 14 leads identified in the acreage, which lies on the border with Indonesia.

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