I have just been looking at Talisman's Southeast Asia Corporate...

I have just been looking at Talisman's Southeast Asia Corporate Presentation (Dec 2009). On page 16 in the presentation you will find the information in regards to PNG plans. They are brief, but one can assume that 2010 is going to see some substantial expenditure in the region by TLM.

Gas aggregation strategy targeting 3-5 Tcf
− Rift acquisition Aug 2009 (PPL 261 & 235)
− New Guinea Energy farm-in Sept 2009
(PPL 268 & 269)
− Horizon Energy acquisition (50%) Sept 2009
(PRL 4 & 5)
One offshore and six onshore discoveries
Appraise Foreland using 2D seismic and
commence exploration drilling in 2010
Evaluate early condensate production
scheme in 2010

This suggests that in the first half of 2010, TLM will be conducting extensive 2D seismics and then begin their drilling campaign in the second half of 2010. North of the Pandora gas field is PPL 244 in which TLM and Interoil (15% equity interest) have a JV. Interoils website states:

Petroleum Prospecting License 244 (Offshore)

We have a 15% working interest in PPL 244. Talisman Oil Limited is the operator of this license. This license was granted on February 25, 2005 for a six year term ending February 25, 2011. This license is located offshore in the Gulf of Papua and the operator is applying for State approval for a deferral of the 2009 well commitment.

I'm assuming that the deferral of the well is due to the well forming part of TLMs planned PNG drilling campaign in 2010.

Interesting to note that they are also looking at liquid stripping ("early condensate scheme"). This will allow them to generate substantial revenue to fund continued work obligations. This aligns both Interoil and TLM's PNG operations and strategies. Interoil with a market cap of US$3.3 billion is really becomming an attractive target for bigger players in the O/G game. Just 12 months ago the company was worth US$400 million. Interoil's PNG gas resource is now estimated at 10 TCF and growing. Once Interoil's LNG development is under way analysts are tipping the company to be worth well in excess of US$10 billion. This gives investors an idea of what heights NGE can reach with success in PNG.

Given PNG is condensate rich, one can see why TLM were not interested in PPL267 and the oil it may potentially hold. I'm now of the opinion NGE will most likely be going at PPL266/267 alone. The liquids focus in the region is now on gas condensate and not oil.