PPL 259 is located in the Fly Platform of the Papuan Foreland Basin and the Papuan Fold Belt of Papua New Guinea. PPL 259 covers an area of approximately 1.4 million acres. The area is sparsely populated and access is limited. There is an airport and port facilities in Kiunga and a good road that passes north through PPL 259.
The Ketu, Elevala and Stanley gas condensate fields are within the confines of PPL 259 but are not part of the license. However, the presence of proved gas condensate fields contiguous to PPL 259 leads to the potential for similar discoveries within the license area. Existing seismic coverage over the license area is extensive, has been fully reprocessed and interpreted, and has led to the identification of several quality prospects.
In June 2009, Eaglewood entered into a farm-out agreement with Mega Fortune International Limited (“Mega”), a wholly-owned subsidiary of P3 Global Energy, for 10% of PPL 259. In Q1, 2011, Eaglewood drilled its first exploration well, Ubuntu-1. With 50% Joint Venture partner, Talisman Energy Niugini Ltd., Eaglewood holds 40% of the prospect. Ubuntu-1 was a gas and gas condensate discovery that was suspended as a potential future production well.
