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New Guinea Energy signs Panakawa Oil Prospect drilling contract

New Guinea Energy (ASX: NGE) has finalised the terms of and executed a drilling contract with Australian Drilling Services Pty Ltd (NYSE:ADS).

As announced on 17 February 2010 NGE had previously entered into an option agreement with ADS to secure their Kremco K650 rig (Rig 6) for NGE's 2010 drilling program on its wholly owned Panakawa Prospect in PPL 267.

NGE is currently organising required equipment and materials as part of the initial stages of this drilling program. Mobilisation is due to start in late April and the spud date is scheduled for mid May.

Disclosure: The author holds no positions in the company