NGE allots A$47m for drilling

AUSTRALIA’s New Guinea Energy (NGE) Ltd and Canada’s Talisman Niugini Ltd will now commit more than A$47 million (K118 million) to its drilling and seismic testing activities in Western province. The testing and drilling activities are on four petroleum prospecting licence (PPL) areas PPL266 and 267 – 100% NGE owned; and 268 and 269 - in shared ownership with Talisman (50-85% NGE and 15-50% Talisman).Michael Arnett, executive chairman of NGE, said last Friday a first well was in sight and that they were now mobilising the drilling programme on PPL 267- Panakawa.He said this during the sixth annual general meeting (AGM) in Port Moresby last Friday.NGE now has A$25 million (K63 million) available, of which about 40% will go to the testing and drilling of four PPL areas (together with Talisman) and also to fund other immediate activities. Last month, NGE executed a drilling contract with Australian Drilling Services Ltd to secure their Kremco ‘K 650” rig (Rig 6) for the drilling program on Panakawa prospect.Arnett said subject to timely completion of obligations by third parties, the obtaining of necessary PNG government approvals and other technical and environmental issues were expected early to middle of next month.