UMC Energy (LSE:UEP)
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2 Years : From May 2011 to May 2013
UMC Energy PLC (UEP.LN), said Wednesday that Gini Energy Ltd, in which the company has a 30% equity interest, has been granted onshore Petroleum Prospecting License No. 405 by the government of Papua New Guinea.
-PPL 405 consists of nine graticular blocks 2299 - 2302, 2372, 2374-5, 2444 and 2447, located in the Papua New Guinea highlands, and has an initial exploration phase of six years.
-The remaining 70% equity interest in Gini is held by CNOOC Australia Ltd, a subsidiary of CNOOC Ltd.
-CNOOC is responsible for funding all expenditure in respect of PPL 405 and is required to comply with the minimum work obligations during the exploration phase.
-Such expenditure will be repaid to CNOOC out of production revenues and off take of oil and gas should production occur.
-If exploration and appraisal work indicates the probable existence of commercial reservoirs of oil or gas in any part of PPL 405 at the end of the exploration phase, the parties must each finance their pro-rata share of all expenditure required in respect of the development plan either themselves or by procuring sufficient finance from a third party.
-UMC Energy shares at 1114 GMT up 1 pence, or 9.1%, at 7.5 pence, valuing the company at GBP33.3 million.
-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; firstname.lastname@example.org