Upstream exploration company Heritage Oil has signed two farm-in agreements onshore Papua New Guinea with Kina Petroleum.
Operatorship of the two petroleum prospecting licences, PPL337 and PPL 437 will cost Heritage the total of $800,000 (£494,000) for a 70% and 30% working interest respectively.
Drilling is being planned for early next year on the PPL 337, spread over 5,508 in the Ramu Sub Basin, south eastern part of the North New Guinea Basin, where the company has already identified two potential prospects.
Covering an area of 1,530 square kilometres, the PPL 437 is located in a proven hydrocarbon hub of Stanley Field and Elevala and Ketu Fields and the recent Tingu-1 exploration discovery well.
“We are pleased to announce the expansion of our acreage in Papua New Guinea which we consider to be an exciting region providing an excellent opportunity for highly commercial exploration in prolific hydrocarbon provinces,” said Tony Buckingham, Heritage Oil’s chief executive.
“We believe these farm-ins to be key additions to our existing licence portfolio in Papua New Guinea, entered into earlier this year, and view this region as a core area of our exploration portfolio.
“The work programmes across the licences are progressing with a number of high impact wells slated for 2014.”