NEW Guinea Energy has secured a $25 million funding facility that allows it to continue exploration and work program commitments in Papua New Guinea.

NGE's PPLs in PNG

Under the facility with US-based YA Global Master, NGE may issue up to $25 million worth of shares to YA Global at any time over the next 60 months.

Apart from the first advance, which will be up to a maximum of $500,000, NGE may draw down up to $1 million in any 10-day trading period.

“With this option available to the company, we believe NGE is now in one of the strongest funding positions it has ever been in, giving it greater independence and allowing it to maintain its present focus on its exploration and work program commitments in Papua New Guinea,” chief executive officer Michael Arnett said.

The company added Petroleum and Energy Minister William Duma had approved the third and fourth-year work and expenditure programs for its wholly owned PPL 277.

NGE has committed to spending at least $US16.25 million ($A18 million) on geological and structural field mapping, seismic acquisition, and the drilling of one exploration well.

It added the well commitment for the licence was also varied to be drilled in the fifth or sixth year.

Disclosure: Aspermont, publisher of PetroleumNews.net, holds shares in New Guinea Energy

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