Enterprise Energy Resources Ltd. announce that Telemu No. 18 Ltd. (Telemu), a Papua New Guinea based subsidiary of LNG Energy Ltd. has entered into a farm-in agreement with wholly owned subsidiaries of Heritage Oil Plc ("Heritage") and LNG. Upon closing of the farm-in agreement Heritage will acquire an 80% interest in the PPL 319 and PRL 13 licenses. The PPL 319 license is held by Telemu and the Company effectively owns 15.75% of Telemu through its 50% owned subsidiary, EERL Holdings (BVI) Ltd. The company does not own any part of PRL 13.

On closing Heritage will acquire an 80% working interest in PPL 319 and PRL 13, in consideration for making a cash payment to Telemu of US$4 million, funding the acquisition of a minimum of 100km of seismic within the license areas, and funding drilling of one exploration well in PPL 319 to a depth sufficient to test identified exploration targets. Closing is subject to certain conditions including customary government approvals and post closing, Heritage will become the operator under both licenses.

Tags: Enterprise Energy Resources Ltd., Heritage Oil Limited