This was sourced from another relevent threadBig things...

This was sourced from another relevent thread

Big things projected to come


Wednesday, 16 April 2014
EXPLORER Eaglewood Energy is working to complete a domestic gas sales agreement for its share of gas production from the $US300 million ($A319 million) Stanley gas condensate project in Papua New Guinea.


The company welcomed the announcement that PNG Petroleum and Energy Minister Nixon Duban had formally notified the company of the PNG National Executive Council’s decision to approve the project.

Petroleum retention licence 4 licensees, operator Horizon Oil, Talisman Energy, Mitsubishi Corporation and Osaka Gas, will attend a formal ceremony for signing of the Stanley gas agreement tomorrow.
Following the signing, the minister intends to grant petroleum development licence 10 and pipeline licence 10 for the Stanley project within two weeks.
Eaglewood said PDL 10 would be varied to include the part of the Stanley accumulation that was in block 1622 of PPL 259, in which Eaglewood has a 45% operating interest.
A unitisation agreement has previously been signed between the PRL 4 and PPL 259 joint ventures and the determination of the participating interests in Stanley of each of the parties is underway with a final determination expected prior to the end of the second quarter of 2014.
Eaglewood CEO Brad Hurtubise said: “Although it has taken longer than we initially expected, we are pleased that PDL 10 and PL 10 has been offered and accepted and we can get on with finalising Eaglewood’s participation in the Stanley project, which is expected to begin producing condensate and cash flow in late 2015.
“Our participation in the project will give us a share of proven and probable reserves in PDL 10 to complement our share of the contingent resource in PRL 28.
“With our share of the gas production, we will be working hard to complete a domestic gas sales agreement, which will support the funding we will require to pay our portion of the costs already incurred on the Stanley project and fund our costs going forward as the project develops.
“We anticipate the initial sunk cost payment to be required in late Q3, 2014.”
The granting of PDL 10 is also the final step to completion of Horizon Oil’s sale of 40% of its PNG asset to Osaka Gas and will trigger transfer to Horizon Oil of the balance of the sale proceeds plus adjustments of approximately $77 million.