PPL 258 is located in the northwest of Papua New Guinea. It covers an area of approximately 2.2 million acres in the North New Guinea Basin of the Sepik region of Papua New Guinea. The first major exploration program within PPL 258 was conducted by Shell between 1984 and 1986 when airborne gravity and magnetic data were surveyed and extensive field studies were carried out, followed by seismic surveys in the most promising areas. In 2007, the seismic data was reprocessed resulting in a significant improvement in quality. This allowed the identification of previously unrecognized petroleum plays and a significant number of prospects. In early 2009, Eaglewood completed a gravity and magnetic acquisitions program to acquire modern data over the Yawa Trough to further investigate the presence of direct hydrocarbon indicators. In late 2009, soil sampling was conducted for Ultra-Violet fluorescence analysis that confirmed a hydrocarbon "kitchen" under Eaglewood's "Prospect A".
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 258 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 258 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. The Petroleum Advisory Board will reconsider recommending the extension of PPL 258, for a further five years, prior to year end 2011.