New Guinea Energy Limited (NGE / Company) is pleased to advise that it has entered into a purchase agreement to acquire an OIME SL 7 1000 HP Helicopter Rig (Rig) for use in its operations in Papua New Guinea (PNG).
The Rig is an established heli-portable design, optimised to move with a medium-lift helicopter in loads of less than four (4) tons. It is a basic, mechanically powered (rather than electric) rig and therefore well-suited to PNG conditions. When fitted with a top-drive, it will represent the best balance between portability and capability for drilling in much of the PNG Foreland. By right-sizing and standardising camp and support components, it will be possible to move the rig in an efficient, and extremely cost-effective manner throughout the Western Province of PNG.
Over the next 3 years, there will be an unprecedented level of drilling activity in PNG for intermediate depth wells of between 1800 and 3000m. During this period, planned wells in the Western Province amongst companies expected to drill multiple wells, currently total not less than 12 wells.
The total cost of the Rig will be US$7.1 million.
The Rig will be owned by a Company to be established in PNG to be called ?Western Drilling Limited? (Western Drilling), in which it is proposed the Company will initially hold a 50% interest. Once the operating and ownership details of Western Drilling are finalised, further details will be announced.
Executive Chairman, Mr Michael Arnett, stated today ?I believe that the purchase of the SL7 rig and the establishment of Western Drilling Limited will be of great benefit to NGE both now and into the future from a financial, operational and technical perspective. NGE takes its obligations to the people of the Western Province of PNG very seriously and looks to support the growth of employment generating industries in the Western Province. It is hoped that Western Drilling will become an important contributor to that objective.?
NGE Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
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