In a statement Cheetah said, “PPL-245 covers a total of 2,501,750 acres and is located along the Northern coast of Papua New Guinea, adjacent to [our] existing PPL-249. It straddles both the East and West Sepik sub-basins [and] preliminary evaluation indicate both oil and gas seeps in parts of PPL-245 [with] potential for Miocene carbonate and Pliocene basin floor fans plays.”

“No source rocks have been intersected in the Sepik Basin wells, however the occurrence of seeps and shows confirm a potential Tertiary source bed. Theorised reef prospects similar to those in the Salawati Basin will be explored and targeted,” added the company.

Cheetah’s other acquisition, PPL-246, covers an area of 540,378 acres and is located in the south-central regions on the island. The PPL is just south of the company’s PPL-250 acreage.

According to the company, “PPL-246 is located updip of the Omati Trough source kitchen area where up to 19.7 billion barrels of oil is theorised to have been generated. The property is within the Papuan Basin [and] the western part of PPL-246 is rated to be prospective with potential for similar proven Mesozoic petroleum systems as in the current oil fields of Kutubu, Gobe, and Moran; as well as the Barikewa and Iehi gas discoveries.”

“Potential reservoir rocks include Late Jurassic to Early Cretaceous deltaic to shallow marine sandstones. The potential for gas accumulations in the western part of PPL-246 is rated to be high, with additional potential for hydrocarbon accumulation in the foot-wall traps,” added Cheetah.

The absorption of Scotia into the Cheetah fold now means the company is the operator of five PPLs in Papua: PPL-245; PPL-246; PPL-249; PPL-250; and PPL-252 and covers a total area of around 8, 385,866 acres. Cheetah is currently conducting its 2004 work program on its previous licenses and is formulating a work program for the two new licenses.