Ann: Signing of Drilling Contract , page-25

http://www.pngindustrynews.net/storyview.asp?storyid=1134561§ionsource=s0

NEW Guinea Energy says remapping of the Panakawa prospect at PPL 267 in Papua New Guinea has identified a four-way closure at the Toro Formation that has allowed it to increase resource estimates.Kremco K650-T trailer rig Courtesy of ADS
The company said the 6.5 square kilometre closure is interpreted to contain P90 resources of 24 million barrels of oil-in-place, up 267% from March 2009 estimates.

The remapping was carried out with the addition of new regional seismic data allowing ties to key offset wells.

In addition to improved P90 estimates, the remapping has delineated a new lead about 10km from the Panakawa drilling location.

The company said the mapping suggested the areal closure of the Panakawa North Lead is around 60% of that mapped at Panakawa and provided a potential opportunity for follow-up drilling in a location accessible through existing logging tracks.

NGE is now finalising the contractual arrangements with the rig provider, Australian Drilling Services, and third-party services required for the drilling program.

Earlier this year, the company said drilling was expected to start in the second quarter following the finalisation of a definitive drilling contract for the Kremco K650-T trailer rig.