PAN PACIFIC PETROLEUM NL - ASX: PPP

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Description

Pan Pacific Petroleum NL, (PPP) is an ASX and NZX listed oil and gas exploration and production company participating in non-operated interests in New Zealand (including production from the Tui Area Fields), Australia, Vietnam and Timor Leste-Australia Joint Petroleum Development Area.

PPP is seeking to grow shareholder value through selective oil exploration and development acquisitions in proven hydrocarbon basins in the South East Asia and Australia-New Zealand regions.

New Zealand

PPP’s main asset in New Zealand is the 10% equity in the Tui Area oil Fields located in the Taranaki Basin, about 50km offshore from New Zealand’s North Island, and northwest of the Maui Gas Field. PPP also has an exploration interest in PEP 51321 west of Tui. PPP was, until Q4 2010, also a participant in the nearby permit PEP 38483 which was relinquished as the Bahamas shallow biogenic gas play was not considered sufficiently attractive to warrant continued investment.

Australia

PPP has a long history in the offshore Carnarvon Basin, Western Australia, which includes past production from the South Pepper and North Herald oil fields and the Tubridgi gas field. PPP’s current permit interests, shown in the map below, include undrilled leads and prospects and a number of oil and gas discoveries, including the Maitland Gas Field, which are marginal to sub-economic at current commodity prices.

Timor Leste-Australia Joint Petroleum Development Area

Pan Pacific Petroleum (JPDA 06-103) Pty Ltd has acquired a 15% interest in the Block of JPDA 06-103 Production Sharing Contract, by farming into a 5% interest from each of Global, Bharat and GSPC. Earning obligations related to the drilling of the first two exploration wells in the contract area were completed by January 2010, and approval of the assignment was received from the Autoridade Nacional do Petróleo of Timor Leste (the Designated Authority) in February.

Vietnam

Early in July 2010, PPP Vietnam Pty Limited (PPPV), a wholly owned subsidiary of the Company, received the requisite approvals to acquire a 5% interest in the Block 07/03 Production Sharing Contract from Premier Oil Vietnam South BV (Premier). Under the terms of the original farmout agreement, PPPV agreed to acquire a 15% equity in Block 07/03 by funding part of Premier’s costs of the Cá R?ng ?? exploration well, CRD-1X, subject to PetroVietnam and Vietnamese Government approvals. PetroVietnam subsequently exercised its right of pre-emption to the extent of 10% of the proposed 15% farmout interest, and following this PPPV was required to contribute under the terms of the original farmout agreement at the level required to earn a 15% interest, pending Vietnam government approvals of the acquisition of a 5% interest by PPPV and a 10% interest by PetroVietnam Exploration Production Corporation Ltd.

The Company has now been refunded US$10.3m, the amount contributed in excess of funding requirements commensurate with the acquisition of a 5% interest.

Block 07/03 covers 4,915 km2 in the prospective Nam Con Son Basin, and is located offshore, adjacent to block 12W which contains the Chim Sao and Dua Oil Fields (59 MMbbls oil and 16 MMboe gas), also operated by Premier. Chim Sao development is progressing. Gas (2 Tcf) has been discovered by BP in the Lan Tay and Lan Do Fields in Block 06-1 to the north. These gas fields have been developed as part of the Nam Con Son Gas Project, an integrated gas-to-power project that delivers natural gas supplies from the offshore fields via a 370 km subsea pipeline.

Mine For

oil, gas

Location of operation(s)

New Zealand, Western Australia, Vietnam, Timor

Australian Basins

Carnarvon

Address

Suite 1 Level 2 , 123 Walker street
NORTH SYDNEY, NSW, AUSTRALIA

Phone

(02) 9957 2177

Email

Website

http://www.panpacpetroleum.com.au

Last Updated

21/02/2010