AI assistant
SANTOS LIMITED Capital/Financing Update 2016
65872_rns_2016-11-16_91b100ba-4bb0-4d59-9215-1ba708d6efcf.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
ASX Announcement Oil Search farms down PNG Foldbelt exploration licence to Santos
17 November 2016
Oil Search announces that, together with ExxonMobil, it has signed an agreement to sell a 20% interest in Petroleum Prospecting Licence (PPL) 402 to Barracuda Limited (a subsidiary of Santos).
The Operator, Oil Search (PNG) Limited, will retain a 37.5% interest while ExxonMobil's subsidiary, Esso PNG Wren Limited, will retain a 42.5% interest.
PPL 402 is located in the Highlands Province in Papua New Guinea, approximately 650 kilometres northwest of Port Moresby. The licence covers an area of 510 km2 , 40 kilometres northwest of the Hides production facilities.
This agreement will result in Barracuda participating in the recently spudded Muruk 1 well. Muruk 1 is targeting a mean gas resource of approximately 2 tcf in Cretaceous sands of the Toro Formation, at a depth of approximately 3,450 metres. This target reservoir is hydrocarbon bearing in the nearby Hides and Juha gas fields.
Commenting on the farm-in, Oil Search Managing Director, Peter Botten, said:
"This transaction is consistent with the Company's strategic approach of working with selected partners to balance risk while holding appropriate participation levels in opportunities that have the potential to add material gas resources to the Company's portfolio."
The completion of the Sale and Purchase Agreement and Barracuda's acquisition of the licence interest is subject to conditions precedent, including regulatory approvals. The terms of the agreement are confidential.
PETER BOTTEN, CBE
Managing Director
For further information please contact:
Ms Ann Diamant General Manager, Investor Relations and Communications Tel: +61 2 8207 8440 Mob: +61 407 483 128
Oil Search Limited Incorporated in Papua New Guinea ARBN 055 079 868
Head office Port Moresby Papua New Guinea Sydney office 1 Bligh Street Sydney NSW 2000 Australia
Mailing address GPO Box 2442 Sydney NSW 2001 Australia
Tel: +61 2 8207 8400 Fax: +61 2 8207 8500 www.oilsearch.com
Location map for PPL 402
Licence Interests:
| Licence –PPL402 | Licence Interests | |
|---|---|---|
| Pre-Sale | Post-Sale | |
| Oil Search (PNG) Ltd | 50% | 37.5% |
| Esso PNG Wren Limited | 50% | 42.5% |
| Barracuda Limited | 0% | 20% |