On 7 August 2019 South Pacific Resources LtdÂ (SPR) reported than it plans to exit Papuan New Guinea oil and gas exploration in favour of mineral sand exploration. SPR plans to acquire Takmur Pte Ltd which holds mineral tenement and a production facility in Indonesia. Upon completion of the acquisition, and with shareholder approvals, SPR will sell its Papua New Guinean assets for a ânominal amountâ to Ana and Bella Pty Ltd. An agreement has already been initiated between the two companies. SPR stated that the current oil price and a lack of prospectivity in exploration permits PPL 356, 357, 366 and 367, led to the decision to focus on the Takmur deal. The permits cover a combined area of 5,510 sq km located both onshore and offshore Papuan Basin.  It is expected that once the sale of the exploration licences is completed, they could become available for farm-in / purchase depending on their validity at that time. SPR had been looking for a partner since they became eligible in 2012, after being awarded on 30 November 2010. Each licence was scheduled to expire on 30 November 2016 but negotiations have been initiated with the Department of Petroleum to extend the terms. Upon failure to secure extensions, itâs likely that Ana and Bella will become responsible for returning the acreage back to the government.  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. SPR 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.  SPR had also entered into other exploration programmes in PNG, including the application of five unconventional shale gas applications in the Papuan Basin. Applications (UHPLA 1-5) were submitted to the Department of Petroleum in June 2016 over a total area of 75,000 sq km. The applications came after the finalization of the Unconventional Hydrocarbons Act, 2015, in February 2016. The Act would provide successful applicants with access to both open acreage and areas with existing conventional plays and licences. The application areas by SPR spread over high profile fields including: Pânyang, Hides, Moran, Gobe and Elk-Antelope but the applications lapsed during Q3 2018.  For commercial and technical support an agreement withÂ Tamarind Management Sdn BhdÂ was formed. Under the terms of the co-operation agreement, Tamarind was to assist South Pacific Resources with management and operations to assess and develop the full potential of the licences.Â Â Tamarind was to be assigned 20 million share options in South Pacific Resources as part of the agreement.Â Â     Â   Â   Â   Â   Â   Â   Â   Â   Â   Settlement date set for 7 October 2019
On 7 August 2019 South Pacific Resources Ltd (SPR) reported than it plans to exit Papuan New Guinea oil and gas exploration in favour of mineral sand exploration.