New Guinea Energy to Sell Stake in PNG Gas Asset

New Guinea Energy (NGE) has announced that its wholly owned subsidiary, Kirkland, has signed an agreement with Esso PNG Robin, a subsidiary of ExxonMobil, regarding the proposed sale of its 50% participating interest in Petroleum Prospecting Licence (PPL) 269 to Esso for a total consideration of $40 million cash.

Monetisation of this gas asset improves company’s ability to focus on and fund exploration for oil in Papua New Guinea, NGE said.

PPL 269 occupies an area of 8,995 km2 in the Western Province straddling both foreland and foldbelt structural terranes.

This licence has 5 drillable prospects and adjacent licences contain major wet gas discoveries including Hides (9.6 TCF GIIP), Juha (1.5 TCF GIIP) and Pnyang (1.2 TCF GIIP).