Pan Pacific Petroleum farms into JPDA 06-103 production sharing contract

Offshore staff

SYDNEY, Australia -- A subsidiary of Pan Pacific Petroleum has agreed to acquire a 15% participating interest in the JPDA 06-103 production sharing contract (JPDA 06-103) by executing simultaneous 5% farm-out agreements with Global Energy, Bharat PetroResources, and GSPC.

The terms of the agreements include a partial refund of the farm-out parties’ past costs and a contribution to costs for the first two exploration wells to be drilled in JPDA 06-103.

Upon completion of PPPJ’s farm-in obligations, the participating interests will be:
• Pan Pacific Petroleum - 15%
• Oilex (Operator) - 10%
• Global Energy - 20%
• GSPC - 20%
• Bharat PetroResources - 20%
• Japan Energy E&P - 15%

The farm in is subject to the waiver of pre-emptive rights by the joint venture partners and approval by the Autoridade Nacional do Petróleo of Timor Leste.

10/01/2009