Kina Petroleum Corp is offering an opportunity for a farm-in partner to acquire equity in exploration licence PPL 437, located in the Papuan Basin. Kina holds 57.5% interest and operatorship in the permit with partner Heritage Oil (42.5%). Kina is seeking a partner in return for funding an upcoming work programme which would ideally include much needed 2D seismic acquisition. In early-January 2020, Kina reported that, along with Heritage, it was in discussions with a potential farminee. Heritage is looking to divest its entire 42.5% interest in PPL 437. As part of a portfolio review, the company no longer sees Papua New Guinea as a core growth region and is thus looking to exit the country.  PPL 437 is located immediately north of the Elevala and Ketu fields which lay in Horizonâs operated PRL 21. Kina considers the Malisa Prospect as drill ready and the permit also contains Ebony, Mango and Ketu North prospects. Kina has submitted a permit extension application to the Department of Petroleum in a bid to continue exploration past the due expiry date of 18 February 2019. Under an extension, Kina would like to acquire seismic along the Mango, Ebony and Kandis prospects ahead of constraining and ranking.    Malisa has the potential for gas within the Kimu and Elevala/Toro formations, with Heritage reporting that it could contain 2P prospective recoverable resources of 280Â Bcf gas. The licence lies in close proximity to the Elevala, Ketu, Stanley, Pânyang and Juha discoveries, meaning opportunities for development through the proposed Western LNG project or third party access to the considered Pânayng to Kutubu pipeline, should a discovery be made.     A total 170.4 km of 2D seismic was acquired over Malisa in 2014 during the Gosur Survey. Interpretation of this data was reported to be completed in 2H 2017, along with integrated aerogravity data. Initial results show significant prospectivity in the east of the permit. In addition, vintage seismic data has been reprocessed within the licence, which is now complete and fully interpreted. Once the Malisa data and reprocessed vintage seismic data have been merged, farm-in conditions and equity level will again be assessed prior to pushing the opportunity further to potential farminees.    Under the work commitments, the option existed to either drill one well or complete an additional phase of seismic in place of the well before reaching the end date of 18 February 2019. It is thought that the terms were renegotiate to allow Kina to submit an extension application in 2H 218. Drilling targets could potentially be identified through interpretation of reprocessed vintage 2D seismic data. A seismic programme was expected in 2018 which did not materialise.   Heritage farmed into PPL 437 in 2013 with the condition that Kina would be free-carried through the first seismic programme. Additional interest could be earned by Heritage (up to 50%) if the option to drill an exploration well was taken, in which Kina would also have been free carried.    Kina is also offering a farm-in opportunity in its two southern Western Province licences: PPL 435 and PPL 436, which are interpreted to extend the liquids fairway from Stanley-Tingu-Elevala-Ketu fields.    PPL 437, which covers an area of 1,537Â sqÂ km, was awarded on 19 February 2013 and is scheduled to expire on, or be eligible for renewal by, 18 February 2019.Operator Kina Petroleum Corp holds 57.5% interest with partner Heritage Oil Ltd (42.5). Kina is seeking a farm-in partner to assist in a continued exploration programme. Heritage is looking to exit the permit.    Companies interested in pursuing this opportunity should contact:  Richard Schroder â Kina, MD    Email: richard.schroder@kinapetroleum.com  Krey Stirland â Heritage Oil, Vice President Business Development    Email: krey.stirland@heritageoilltd.com
Kina Petroleum Corp offering farm-in opportunity in PPL 437, Papuan Basin