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Heritage Oil PLC  -  HOIL   

Farm-in Agreement

Released 07:00 02-Apr-2013

RNS Number : 2313B
Heritage Oil PLC
02 April 2013
 



 

2 April 2013                                                                                                   

Heritage Oil Plc

("Heritage" or the "Company")

 

HERITAGE OIL ENHANCES EXPLORATION PORTFOLIO WITH A FARM-IN AGREEMENT IN PAPUA NEW GUINEA 

 

Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, today announces that it has agreed with LNG Energy Ltd. ("LNG Energy") to farm-in to two licences onshore Papua New Guinea ("PNG"). On completion Heritage will be appointed the operator.

 

Highlights:

·    Two licences, Petroleum Prospecting Licence No:319 ("PPL 319") and Petroleum Retention Licence No:13 ("PRL 13"), have gross areas of approximately 2,025 and 160 square kilometres respectively

·    Heritage will earn an 80% working interest in each licence and be appointed operator

·    The licences are located in a known hydrocarbon bearing region that includes the multi-TCF Triceratops and Elk/Antelope discoveries

·    Seismic was recently acquired on PPL 319

·    The work programme will be expanded with further seismic acquisition and drilling

·    Heritage management believe there is additional exploration potential within both of the licences

 

Heritage has agreed to acquire an 80% working interest in PPL 319 and PRL 13 from subsidiary companies of LNG Energy. In return for earning the working interests and operatorship Heritage will fund the costs of the seismic acquisition and the cost of drilling an exploration well. In addition Heritage will make a US$4 million contribution to LNG Energy's back costs on the licences.

 

The licences are located onshore PNG at the junction of the Papuan fold belt and the Miocene carbonate platform where there are multiple producing fields and discoveries including the multi-TCF Triceratops and Elk/Antelope discoveries. The licences are close to current and under-construction infrastructure with the Kutubu oil export pipeline and the PNG Liquefied Natural Gas pipeline crossing the acreage. The licences also benefit from the Kikori River providing a link to the open sea thereby increasing transport options.

 

Assessment of the legacy dataset, which includes c.250 kilometres of 2D seismic data and high resolution magnetic and gravity surveys, has identified a potential local source kitchen with more than seven kilometres of section. This potential is being further evaluated through the recent acquisition of seismic data across the Tuyuwopi structure in PPL 319 which completed 31 March 2013. Heritage intends to enlarge this seismic programme by funding a minimum of 100 kilometres of seismic data with the intention of progressing the Tuyuwopi structure to a drillable prospect in 2014 and to assess additional upside of the licences.

 

Farm-in completion is expected within the short term, subject to customary conditions precedent including governmental approvals which the Company expects will be met.

 

Tony Buckingham, Chief Executive Officer, commented:

"We are delighted to announce the expansion and diversification of our exploration portfolio with this entry into Papua New Guinea. We look forward to developing and accelerating the work programme as this acreage provides the opportunity to discover large gas deposits at a time when regional and global gas demand is increasing. We consider the region to be an attractive area both commercially and technically for supplying the premium East Asian gas markets."

 

- ends -

For further information please contact:

Heritage Oil Plc

Tony Buckingham, CEO / Paul Atherton, CFO   

+44 (0) 1534 835 400

info@heritageoilplc.com

 

Heritage Oil Plc - Investor Relations

Tanya Clarke

+44 (0) 20 7518 0838

ir@heritageoilplc.com

 

Media Enquiries

Ben Brewerton/ Natalia Erikssen

+44 (0) 20 7831 3113

heritageoil.sc@fticonsulting.com

 

Canada

Cathy Hume / Jeanny So

+1 416 868 1079 x231 / x225

cathy@chfir.com / jeanny@chfir.com

 

Notes to Editors

·     Heritage is listed on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 Index.  The trading symbol is HOIL.  Heritage has a further listing on the Toronto Stock Exchange (TSX: HOC).

 

·     Heritage is an independent upstream exploration and production company engaged in the exploration for, and the development, production and acquisition of, oil and gas in its core areas of Africa, the Middle East and Russia. 

 

·     Heritage has producing assets in Nigeria and Russia and exploration assets in Malta, Tanzania, Papua New Guinea (following completion of the farm-in), Pakistan and Libya.

 

·     All dollars are US$ unless otherwise stated.

 

·     For further information please refer to our website, www.heritageoilplc.com

 

This press release is not for distribution to United States Newswire Services or for dissemination in the United States.

If you would prefer to receive press releases via email please contact Jeanny So (jeanny@chfir.com) and specify "Heritage press releases" in the subject line.

FORWARD-LOOKING INFORMATION:

Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding production estimates and future plans and objectives of Heritage - constitute forward-looking information that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.  Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves and recoveries; production and operating cost assumptions; development risks and costs; the risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties as disclosed under the heading "Risk Factors" in its Prospectus dated 6 August 2012, as supplemented by a supplementary prospectus dated 23 August 2012, and elsewhere in Heritage documents filed from time-to-time with the London Stock Exchange and other regulatory authorities.  Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws.  New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Farm-in Agreement - RNS