PPL 257 is located on the northeast coast of Papua New Guinea within the Cape Vogel Basin. PPL 257 covers an area of approximately 1.7 million acres and extends 50 km into the Solomon Sea. There have been no wells drilled within PPL 257. In 2009, Eaglewood completed an offshore seismic acquisition program to acquire modern data over the Buna and Kumasi structures to further investigate the presence of direct hydrocarbon indicators.
Under the terms of the license, Eaglewood had a commitment to drill one well by October 20, 2009. Eaglewood has applied for a five year extension to PPL 257 which is subject to PNG government approval. In accordance with the terms of a license extension, Eaglewood will have to relinquish 50 percent of the area for PPL 257 when the extension is approved by the PNG government. The area to be relinquished was determined by Eaglewood after an extensive review of seismic and aero/gravity magnetic surveys done on the license. We expect to receive a five year extension of the license prior to year end 2011.