PNG has the potential for 282 trillion cubic feet of recoverable shale gas, but it is yet to be explored for…
However that is about to change as the PNG government has recently opened its doors to foreign unconventional resource drilling.
One ASX listed company currently tight with the PNG government is looking to tap that shale.
Owing to close working relationships, South Pacific Resources (ASX:SPB) is at the front of the queue to have its drilling applications reviewed before other regional aspirants – that is, ahead of the likes of BHP and Rio Tinto.
SPB was awarded five unconventional oil and gas reservations by the PNG government, securing 75,000 km 2 of highly prospective acreage.
The $9 million capped SPB is now planning a strategy to prove up any unconventional resources, after recently securing a highly experienced technical team of industry veterans – who are working for shares in SPB…
SPB’s permit areas sit right over the top of existing oil and gas fields like Elk/Antelope. One of the biggest discoveries in decades in resources rich Papua New Guinea was InterOil’s Elk/Antelope gas field, which recently sparked a multi-billion dollar bidding war.
Even if SPB had a fraction of that kind of M&A success, it would be a job well done from its current position, but the company is also confident that if no offer comes it could prove up a commercial resource and one day match its much bigger counterparts.
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So with a technical team with decades of experience at the likes of Wood Mackenzie, Total and Schlumberger in place, SPB is well placed to take the inside track in the PNG shale game.