Kina holds a 57.5% interest in this licence with the remaining 42.5% held by a subsidiary of Heritage Oil Limited in the UK.

Location and Infrastructure

PPL 437 covers an area of 1530km2 onshore and is located within the Papuan Basin in northern foreland of Western Province. The licence abuts the northern boundary of PRL 21 where engineering studies are underway assessing the development options for oil and gas development.

Geology

PPL 437 overlies a complete Papuan Basin sequence with all reservoir targets expected to be present with the exception of the Magobu.

Based on results of drilling at Elevala and Ketu discoveries the Elevala sandstone is considered to be the primary objective. However recent results at Stanley support the potential of the Toro and Kimu Sandstone objectives within PPL 437.

Previous Exploration

Texaco, Santos and Union oil have acquired seismic surveys in or near PPL 437 in the 1970’s and 1980’s. No wells have been drilled in the licence, but discoveries at Elevala, Ketu and Tingu attest to the exploration potential of PPL 437.

Proposed Exploration

Kina’s recent quarterly, half yearly and annual reports provide a summary of the exploration and evaluation work currently being undertaken in these licences.