South Pacific Resources (SPB), a wholly owned subsidiary of Indo Pacific Energy Pty Ltd, is seeking a farm-in partner in its four Papua New Guinea exploration licences, which are located in the Papuan Basin. The farm-out process was initiated during 2015 for SPB to investigate joint venture exploration opportunities.  The licences on offer are: PPL 356, 357, 366 and 367 within the Papuan Basin. The licences, which cover a combined area of approximately 5,600 sq km, were due to expire in November 2016. It is understood that SPB in continuing with negotiations with the Department of Petroleum and Energy to extend the terms or renew the licences. Under conventional terms, operators may extend the licence terms by a period of five years with an associated 50% area reduction, at the digression of the Petroleum Minister.   PPL 356 and PPL 357 are located in the offshore Papuan Basin. PPL 356 is located in water depths generally less than 200 m, whereas PPL 357 extends beyond the present day shelf break into excess of 1,000 m water depth. No wells have been drilled to date in either licence. SPB reports that the area is thought prospective for gas within Tertiary petroleum systems.  PPL 356 lies between the liquids rich Pasca and Uramu fields and the dry gas of the Pandora field. Target plays within the permit are likely to be on trend with the buried Miocene carbonate reefs which lay under a regional Pliocene clastic seal. PPL 357 lies to the southeast of the Flinders and Hagana dry gas fields. SPB regional studies suggest that the Pliocene, shallow marine reservoir sands could extend to the PPL 357 block.  PPL 366 and PPL 367 lie in the onshore Papuan Basin. Located close the Barikewa gas field and adjacent to the Highlandsâ prolific Toro Sandstone reservoirs, the permits are considered to carry low play risk by SPB for Cretaceous reservoir plays. Trap geometry is expected to be the main geological risk for the identified leads, including the Gamma River lead and Turama lead.  SPB has conducted multiple studies across its licenced areas, including mapping and evaluation of the offshore Papuan Basin, quantifying the presence and effectiveness of viable source rocks in the Gulf, mapping leads from existing seismic data and has formed a commercial and technical alliance agreement with Tamarind Management Sdn Bhd for consultancy work to assess and develop the full potential of the licences.    SPB entered the agreement with Tamarind on around 27 September 2016. Tamarind was to be assigned 20 million share options in South Pacific Resources as part of the agreement at various commercial and technical milestones of the assets (including unconventional exploration applications by SPB).  Tamarind has been providing assistance with reviewing the commercial and strategic options, resources estimates and technical evaluations.Â  Partnering or farm-out activity has also been supported by Tamarind. Other activities being conducted through the partnership includes analysis for expanding the lifespan of existing fields and future decommissioning projects.    PPL 358, in the Cape Vogel Basin, was also part of the farm-out offer before expiring on 22 November 2016. Oil and gas seeps have been observed, though the area is underexplored. Studies by SPB indicate that rock sequences within the permit may contain thermally mature Pre-Miocene source rocks, which would be on trend with the nearby petroleum indicators recorded from the Ocean Drilling Project, which comprised 23 stratigraphic wells in 1998. Dondonald (Rawson subsidiary) have since submitted APPL 633 over the same area.  South Pacific is looking for farm-in partners to form a joint venture to explore its four, 100% owned licences.
Papua New Guinea, PPL 358