'PRL 21 – Budget reduced by 60% in view of the Covid-19 crisis...

'PRL 21 – Budget reduced by 60% in view of the Covid-19 crisis and volatile energy prices. Purchase of Repsol Oil & Gas Niugini Pty Ltd by Arran Energy Pty Limited in January 2020 changes the dynamic and focus on development

PRL 21 (KPL interest 16.75%)

A return to better oil prices in 2021 will present Kina and the PRL 21 Joint Venture with new and better options going forward. The change in control of Repsol Oil & Gas Niugini Pty Ltd by Arran Energy Pty Limited (“Arran Energy”) in January 2020 has changed the structure of the PRL 21 Joint Venture. Arran Energy has 35.1% equity in the licence and the principals of Arran Energy hold very similar views to Kina in respect of the most cost-effective way to monetise the fields.

We believe that use of the Fly River as a virtual pipeline to export liquids and gas is viable and presents discoveries close to and along the Fly River with unique and cost-effective options for development and export in PNG.

Kina sees the resolution of the Repsol sale to Arran as a very positive development and we retain our focus on development of this significant asset of 48 million barrels and 1 trillion cubic feet of gas.'

Source: Post #: 44362129

DYOR