PNG Legal Decision

This is an interesting development from todays announcement from LakesOil. Looks like POK has dropped off this one.

Announcement Papua New Guinea UpdateJudicial review of the PNG Petroleum & Energy Minister’s purported cancellation ofPPL 560 was scheduled for 17 May 2019.

The Petroleum Minister’s legal counsel has advised that the cancelation will be revoked.Judicial review has been adjourned to 7 June 2019 to allow parties time to finalise settlement arrangements.Confirmation of PPL 560 tenure will allow resumption of exploration activity and will make the judicial review unnecessary.

The Directors of Lakes Oil NL (Lakes Oil, ASX:LKO) are pleased to provide the following update regarding legal proceedings between Dondonald Limited, a majorityowned subsidiary of Lakes Oil, and PNG’s Minister for Petroleum & Energy (Minister).

The legal proceedings, which involve a judicial review of the Minister’s April 2018 cancellation of Petroleum Prospecting Licence (PPL) 560, were scheduled to be heard on Friday 17 May 2019.

The Minister’s legal counsel, however, advised the Court that the Notice of Cancelationof PPL 560 will be revoked and that the validity of Dondonald Limited’s tenure will beconfirmed. Given this favourable development, the Judge adjourned proceedings until 7 June 2019 to afford time for Dondonald Limited and the Minister to finalise the settlement arrangements.

As part of the settlement, Dondonald Limited will be seeking an extension of the term of PPL 560 to compensate for time lost while legal proceedings were underway.

Providing the issues relating to PPL560 are settled on terms acceptable to Dondonaldthe judicial review of the Minister’s 2018 decision to cancel PPL 560 will not proceedand the current legal proceedings will be discontinued.If for any reason an acceptable settlement is not reached then the judicial review will proceed on 7 June 2019 as scheduled.