Farm-out gains momentum

LARUS Energy’s fund-raising efforts are proceeding well, with five companies formally engaged in a data room review of PPL 326 tenement in Papua New Guinea.
Farm-out gains momentum Farm-out gains momentum Farm-out gains momentum Farm-out gains momentum Farm-out gains momentum

The Australian oil and gas exploration company is offering 60 million shares, amounting to a $3 million investment.

This investment promises a 22% equity interest from the high impact drilling program, estimated to produce 23 trillion cubic feet of gas and 529 million barrels of oil of third party certified prospective resources.

Larus Energy's announcement for funding of $3million is in anticipation of its future farm-out agreements and potential listing on the Australian Securities Exchange.

The PPL 326 tenement is southeast of Port Moresby, which is described as a frontier area as no hydrocarbon exploration wells have been drilled in the region.

It is close to InterOil's Napa Napa refinery and the PNG LNG facility.

PPL 326 was signed in August 2009 for an initial exploration period of six years comprising of three two-year phases.

The final two-year phase, which ends in August 2015, requires 400km of additional seismic data and planning for an offshore well.

Larus Energy believes the area is largely unexplored and therefore PPL326 includes exploration opportunities in two different petroleum systems.

It currently has farm-out agreements with global oil and gas acquisition and divesture expert Moyes and Co.

With the expert assistance of Moyes, five other companies are currently formally reviewing the PPL326 data room.

Larus Energy has begun technical discussions with these five companies, which consist of large multinational corporations and small-cap oil and gas independents.

The investment of $3 million is to assist Larus Energy in funding 400km deep water seismic on PPL326 and provide the company with 12 months of working capital.

It also ensures compliance with PPL326 and secures a five-year extension of PPL326 free of work commitments, while relieving the immediate need to farm-out.

Almost half of the $3 million will be allocated towards the seismic acquisition program, which consists of 800km off-shore 2D deep water seismic program.

Larus Energy has executed a service agreement with global seismic service provider SeaBird Exploration, utilising the Aquila Explorer vessel.

Meanwhile, Larus Energy's next annual general meeting is set for late May.

By Tristan Lavalette

loader

Most read Regions

  • NEW: Digital version of PNG Report magazine - View here
  • Porgera: Barrick-PNG talks go on - Read more
  • Follow the companies investing in the PNG market - Read more

Most read Regions