Announced this morning, SPR's alliance with Malaysia-based fund Tamarind will see Ian Angell, Michael Arnett and Ed Bassett driving the assessment of the company's 75,000sq.km of leases overlapping the heart of the PNG oil and gas fields, from Stanley and Hides in the Highlands to Elk-Antelope east of the capital, Port Moresby.
Angell has 25 years of experience in resources, particularly oil and gas, and has been based in Southeast Asia since 2000. Prior to co-founding Tamarind Energy he played a significant part in the successful establishment of Talisman Energy's Malaysian and Asian business.
Arnett is a former partner of law firm Norton Rose Fulbright and was executive chairman of PNG-focused oil explorer New Guinea Energy until he was toppled by shareholders last year.
He has been a director of Nexus Energy and he is still a director of mining services firm NRW Holdings and kerogen shale developer Queensland Energy Resources.
Bassett has led commercial and business development activities across a wide range of international exploration and production companies including Petrofac, Mitsubishi, Total, Centrica and Enron prior to joining Tamarind as commercial director.
The alliance, which is subject to ASX and shareholder approval, will see Tamarind offered 20 million options in SPR, with award of the options triggered by an increase the share price at various points between $0.089 cents per share and $0.15/share.
The shares will also be issued on key milestones, including any deals made over the PNG leases.
This morning SPR was trading at $0.05.
Martino said there would be a minimal cash outlay from SPR's coffers.
"The alliance will enable SPR to access a significant management and operating capability to explore the full potential of the acreage as the company moves into the definition and execution of work programs and the review of appropriate partnership and funding options," Martino said this morning.
"SPR has achieved a leading prospective unconventional oil and gas acreage position in PNG following a number of years of technical assessment and engagement with stakeholders in the PNG oil and gas sector.
"(The alliance) provides SPR with access to significant human and operational resources to develop its licenses and reservations further, under a model which serves the shareholders of SPR well by tying Tamarind to the company's success."
Angell said Tamarind was "delighted to be supporting SPR" with the further development of their recently acquired shale reservations in PNG.
"Tamarind's experience in the country and wider oil and gas capability is well placed to maximise the long term value of this prospective unconventional acreage," he said.
SPR was awarded its leases in July after undertaking what it describes as the first country-wide assessment of the shale gas potential of PNG.
The company's 75%-owned subsidiaries have lodged five applications for Unconventional Hydrocarbon Prospecting Licences and all five have been reserved for the company.
If granted, the areas will be valid for first pass exploration for five years and will be in addition to SPR's conventional leases.
SPR says that a review in 2012 estimated that PNG has the potential for 282 trillion cubic feet of technically recoverable shale gas, plus untested CSG upside.
