- Lakes Blue Energy (LKO) and TotalEnergies signs an agreement for the potential development of PPL 560 in Papua New Guinea
- This licence contains the Buna prospect which is reportedly one of the largest undrilled hydrocarbon structures in PNG yet is estimated to contain over three tcf of natural gas
- The deal will see TotalEnergies fund a staged exploration program in exchange for the option to acquire a 75 per cent participating interest in PPL 560
- LKO Chairman Richard Ash says the transaction “provides the opportunity for Lakes Blue to be fully carried for a 25 per cent interest in a major new petroleum frontier”
- Company shares are trading flat at 0.1 cents at 10:39 am AEST
Lakes Blue Energy (LKO) and TotalEnergies EP PNG have signed a technical cooperation agreement for the potential development of Petroleum Prospecting Licence 560 (PPL 560).
PPL 560 covers the Cape Vogel basin to the north of Papua New Guinea.
There are a number of large prospects within the basin, however the company’s present focus is on the Buna prospect which is estimated to contain more than three trillion cubic feet (Tcf) of natural gas and is one of the largest undrilled hydrocarbon structures in PNG.
Under the agreement, Lakes Blue Energy will collect and give TotalEnergies, subsidiary of French company TotalEnergies SE, outcrop rock and fluid samples from the Cape Ward Hunt and Cape Vogel Peninsula areas.
TotalEnergies will then fund and complete a technical work program which will include geological and geophysical studies.
Once this initial program is completed, TotalEnergies may, at its own cost, undertake phase b work, involving seismic acquisition to delineate the Buna prospect prior to drilling.
In return for funding the staged exploration, TotalEnergies will have the option to acquire a 75 per cent participating interest in PPL 560 and Lakes Blue will retain the 25 per cent interest.
Lakes Blue Energy Chairman Richard Ash said the agreement with TotalEnergies “underlines the significance of the Buna gas prospect.”
“The transaction provides the opportunity for the company to be fully carried for a 25 per cent interest in a major new petroleum frontier,” he said.
LKO shares were trading flat at 0.1 cents at 10:39 am AEST.