Kina Petroleum Limited is a Papua New Guinea (PNG) registered company and was established in 2009 to apply for and acquire oil and gas exploration and production concessions in PNG.
In September 2009 Kina was awarded 100% interest in four, onshore Petroleum Prospecting Licenses (“PPL’s”) being PPL 337, PPL 338, PPL 339 and PPL 340.
In October 2010, Kina entered into Farm-In Agreements with ASX listed Oil Search Ltd in relation to PPL’s 338 and 339. These agreements set out the terms upon which OSH may earn up to a 70% participating interest in these two PPL’s, essentially by undertaking a seismic program, and depending on the results of this program, fund the majority of a two well drill program on PPL’s 338 and 339.
In addition, on March 18th 2011, Kina was awarded a 20% participating interest in Petroleum Retention Lease (“PRL”) PRL 21. Kina’s Joint Venture Partners in PRL 21 are Horizon Oil (Papua) Limited, Talisman Energy NIUGINI Inc.
PRL 21 encompasses two stranded gas fields (Elevala and Ketu) which were discovered by British Petroleum Development Ltd (BP) in the early 1990’s. To date Elevala 2, 2A and Ketu 2 have successfully appraised the wet gas fields. Tingu 1 will spud mid 2013. Kina and its JV Partners intend to appraise the Elevala and Ketu discoveries and subject to the outcome of the appraisal drilling, attempt to undertake early development of the liquids contained within the reservoirs which may lead to early cash flow.