MITSUBISHI CORP. INVESTS IN PNG OIL AND GAS DEVELOPMENT

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Company enters $280 million partnership with Talisman Energy

MELBOURNE, Australia (Radio Australia, Feb. 27, 2012) – Japan's Mitsubishi Corporation has signed a deal to take a 20 percent stake in Talisman Energy's oil and gas licenses areas in Papua New Guinea.

The US$280 million deal is Mitsubishi's first major investment in PNG gas and comes as Talisman prepares to spend $US800 million dollars on exploration over the next three years.

The agreement between the two companies gives Mitsubishi access to oil and gas licenses covering more than five million hectares of land in PNG's Western Province.

The project has potential to create a third major gas project for Papua New Guinea.

Talisman Australasia vice president Paul Atkinson said it is a win-win situation for both Mitsubishi and the PNG Government.

"Mitsubishi will get access to high potential acreage in Papua New Guinea to access leaseholds which could be developed into reserves for supply of LNG to, you know, their core market areas, typically Japan," he said.

And Mr. Atkinson said the aim is to keep focusing on exploration.

"We have a program for about the next three years to continue with exploration. We'll be drilling four to five wells this year. We'll be shooting about 200 kilometers of seismic this year and on average about 250-400 kilometers in the next two years. And that is the focus of the operation, to explore and prove up enough gas so that we can then go to the next stage which would be a feasibility study for LNG monetization methods."

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