New Guinea Energy Limited advises shareholders that it has begun a 94 kilometers seismic program in PPL 265 focusing on the Jerai North and Weam Leads which should facilitate a drilling decision in the first quarter of 2012, and assuming economically viable, be followed by an exploration well in the second half of 2012.

PPL 265 is adjacent to the Indonesian border on low lying; mixed grassland and forested terrain, south-west of the Fly River. The license covers 15,550 square kilometers or about 3.8 million acres and is located on the Morehead sub basin of the Fly Platform, southwest of the Papuan Basin.

Jerai North and Weam are two of the 13 identified leads within the license and are likely to be a foreland gas and oil play in the Morehead Graben.