Kina Farms Out Stake in PNG License

Kina Petroleum has farmed out part of its interest in PPL 340 in Papua New Guinea to Hunt Energy and Mineral (PNG) Limited, part of the Pacific Hunt Group.

The farm out agreement provides for Hunt to earn equity in the licence by carrying Kina through certain work program items. Hunt then has the option to acquire an additional 32% in the licence upon drilling one well.

Exercise of this option would result in Hunt having a 64% interest in the licence and Kina having a 36% interest in the licence. 

The work program valued up to $13.2 million in total and will target/test a reefal trend believed to extend south east of the Antelope gas discovery.