New Guinea Energy Ltd is an Australian company that has focused on oil and gas exploration in Papua New Guinea (PNG).
It has over the years become a well-known exploration company in the country and is carving a slice of PNG’s oil and petroleum wealth.
“New Guinea Energy (NGE) possesses one of the last available highly prospective, onshore, non-aligned acreage positions in SE Asia” a company’s spoke person says.
The company currently has 5 onshore Petroleum Prospecting Licences (PPL) covering more than 29,500km² (7M Acres) and a royalty right over another 4,000km2 (2M Acres) in a PPL running parallel to the PNG LNG project.
It has a balanced portfolio of both oil and gas prospects with potentially more than 6,100mmboe unrisked petroleum initially in place. As a reflection of the prospectivity of NGE’s portfolio, more than 1 billion barrels of oil and 15 Tcf of gas have already been discovered in adjacent licences.
“NGE has established joint ventures and commercial arrangements with the largest players in the booming PNG oil and gas sector, namely ExxonMobil, Oil Search, Mitsubishi, and Talisman Energy. The company is also a 50% owner of a fit-for-purpose onshore drilling rig specifically designed to be able to be mobilized and used in difficult to access, remote locations” says the spokesperson.
In December 2012, NGE completed the sale and royalty agreement for PPL 277 with Esso PNG Exploration Limited and Oil Search.
This links part of NGE’s growth to the expansion of the ExxonMobil led US$19B PNG LNG project without taking the risks nor having the capital obligations.
Under the terms for PPL 277, NGE received an upfront cash fee of US$15M and will receive an additional US$20M upon a Petroleum Development Licence approval, as well future royalty payments on production.
All this positive turn of events has pushed the company up the ranks of high profile exploration companies in PNG.