LNG Energy Enters Into Farm-In Agreement in Papua New Guinea With Heritage Oil PLC

By
A A A

LNG Energy Ltd. (LNG.V)reports that its subsidiaries, Telemu No. 18 Limited, LNG Energy ( PNG ) Limited and LNG Energy No. 2 Limited, have entered into a farm-in agreement with wholly owned subsidiaries of Heritage Oil Plc.

In exchange for an 80% participating interest in the PPL 319 and PRL 13 licenses, Heritage will make a cash payment to Telemu of US$4 million, fund the acquisition of a minimum of 100 km of seismic within the license areas and fund the drilling of one exploration well in PPL 319 to a depth sufficient to test identified exploration targets. Closing is subject to certain conditions including customary government approvals. On closing, Heritage will become the operator under both licenses.

"We are pleased to welcome Heritage to PNG and to our PPL 319 and PRL 13 licenses. Heritage's investment, particularly with regards to the Tuyuwopi prospect previously identified on PPL 319 will greatly advance the project. Heritage has been an extremely effective explorer and we look forward to working with them as we continue to actively explore a very prospective area in Papua New Guinea," commented David Nelson, President & CEO of LNG.

LNG is up half a cent (16.67%) to 3.5 cents late morning.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: PNG

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

How to Save Money at Bars
How to Save Money at Bars           

Stocks

Referenced

Most Active by Volume

44,823,339
  • $75.19 ▲ 0.28%
43,744,171
  • $3.44 ▼ 0.29%
42,340,022
  • $97.671 ▲ 0.66%
34,178,145
  • $17.62 ▼ 1.23%
34,028,998
  • $15.59 ▼ 0.19%
32,055,708
  • $21.23 ▼ 2.41%
31,539,235
  • $3.76 ▲ 0.80%
30,434,619
    $34.25 unch
As of 7/25/2014, 04:03 PM