Tamarind is evaluating field development and appraisal opportunities with a late-life producing field it identified with a PNG oil producer having started reviewing the field in the second quarter of 2017.
If that study, which will continue in this quarter and the next, is promising the review will be expanded to evaluate near-field exploration and development opportunities.
However, under the deal announced this morning whereby SPR will issue 750,000 convertible notes to Tamarind, SPR said the funds would be used for working capital and to examine a "wide range of upcoming opportunities" in PNG.
SPB will appoint two nominees of Tamarind for its board where Tamarind holds more than 15% of the shares on issue in SPB.
"The directors of SPB believe that the Notes represent an attractive funding solution for SPB [its ASX ticker code], minimising equity dilution for existing shareholders, whilst SPB undertakes its strategic investigations in assets located in PNG," managing director Martino said this morning.
Tamarind Energy is owned by former New Guinea Energy chairman Michel Arnett and ex-Talisman boss Ian Angell, who recently told Energy News that opportunities are opening up for smaller plays while the big boys look after the monsters.
"I think what we are going to see in PNG is a bifurcation of opportunities, not Total, ExxonMobil and Oil Search are together, and the market will tell them that they have to focus on the big LNG projects, so the little stuff - the mature fields and the smaller projects are going to get orphaned real quick - and we see that as an opportunity for South Pacific," Angell said.
SPB was trading at 3c this morning.
The company has been contacted for comment.