KINA Petroleum Limited has received a five year extension for its PPL 338 Petroleum Prospecting Licence and has been awarded a new licence PPL-581 in the foreland area of PNG.
The PPL-581 permit, which contains eight graticular blocks, covers part of the area contained in the previously held PPL-338 licence.
The original PPL-338 license, which Kina considered one of the cornerstones of its initial public offering, expired in September 2015 and upon expiry Kina relinquished 50% of the PPL license area, as is required under the Oil and Gas Act (1998). The 50% that was retained, containing 20 graticular blocks, hosts the Nipa, Mangrove and Crocodile prospects to the south, and a potential extension of the Triceratops field to the north.
Kina said it is confident that a Ministerial offer for three other e licence areas, APPLs 596, 597 and 598, is anticipated in the short term.
PPL-338 has been awarded for a five year term, with an effective start date of 31 January 2017. PPL-581 has been awarded for a six year term also with an effective start date of 31Januar y 2017.
The new and renewed licences surround the PRL-15 acreage containing the giant Elk/Antelope discoveries, which have been reported to have a 2C contingent resource of more than six tcf of gas.
Work programmes proposed by Kina for the licences include a gravity/gradiometry survey and a seismic survey and the drilling of at least one well in PPL-338, while a similar programme has been put forward for PPL-581.
Prior to drilling, Kina said its immediate focus will be to complete gravity/gradiometry and seismic programmes.
The company said this will be intended to form part of a farmout programme. The initial phase of the work will be a gravity gradiometry survey over Mangrove, Nipa and Crocodile Prospects. The survey will link the Uramu-1 and Mira-1 gas discoveries in neighbouring licences to the south west, Kina’s prospects in PPL-338 and through a possible data trade with neighbouring licenses, the Triceratops and Antelope discoveries.
Kina Petroleum’s managing director, Richard Schroder, said the company was delighted that the licence extension and application had been confirmed.
“The prospectivity of the forelands area has been confirmed by the Elk/Antelope discoveries, and the proposed Papua LNG project confirms the potential for development. Kina is now ideally placed to capitalise on this commercial potential given the prime location of the PPL-338 and PPL-581 licences, along with the APPLs that are expected to follow shortly,” Mr Schroder said.
“The prospects within the licences are well understood based on the technical evaluation and field work that has been completed so far. In the period leading up to licence grant, Kina was able to complete the analysis of its forelands data set, integrating nearby drilling results to build a better understanding of the structural fabric running from Triceratops to the south and east. Our technical work indicates the existence of conditions conducive to reef formation, which has in turn influenced deposition and distribution of clastics. This integrated understanding of the licenses will be central to our farmout effort.
“The requirements of the forward work programme, which we intend to complete as part of a multi-licence farmout, have been designed to mature the prospects to drillable status which will allow us to unlock the potential within these licences.”