Heritage Oil agrees farm-in with LNG Energy

Heritage Oil has expanded its exploration portfolio after shaking hands with LNG Energy on an agreement to farm-in two licences onshore Papua New Guinea (PNG), of which Heritage will be appointed operator.

Heritage Oil has expanded its exploration portfolio after shaking hands with LNG Energy on an agreement to farm-in two licences onshore Papua New Guinea (PNG), of which Heritage will be appointed operator.

The licences, namely petroleum prospecting licence no. 319 and petroleum retention licence no. 13, have gross areas of around 2,025 and 160 sq km, respectively, and are located in a known hydrocarbon bearing region.

On completion of the agreement, Heritage will earn an 80% working interest in both licences in return for funding the costs of the seismic acquisition and the cost of drilling an exploration well. In addition Heritage will make a $4.0m contribution to LNG Energy's back costs on the licences.

Seismic was recently acquired on licence 319, and further seismic acquisition, and drilling, is expected with the expansion of the work programme.

Chief Executive Officer Tony Buckingham said: "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."

The completion of the farm-in is expected in the short term, the group added.

The share price rose 0.84% to 180p by 08:30.

NR

Recommended

Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
How to stop recurring subscriptions becoming a drain on your money
Personal finance

How to stop recurring subscriptions becoming a drain on your money

Tracking and pruning subscriptions isn’t as easy as it sounds. Here's how to take charge.
14 Sep 2021