Kina Petroleum Limited provided an update in relation to activities in the PPL 339 licence. Further to Kina's ASX release of 7 December 2017, Kina and Santos, through its wholly owned subsidiary Barracuda Limited, have agreed to amend certain elements of the PPL 339 farmout agreement. While the ultimate outcomes are intended to remain the same: Santos' acquisition of a 20% participating interest in PPL 339 from Kina will now occur in two phases: an initial acquisition of 17.11%; and the subsequent acquisition of a further 2.89%, during the period when the licence's first well is being drilled. Santos will no longer acquire a portion of Kina's remaining well cost carry, but as the benefit of that carry attaches to the (subsequent) 2.89% interest that is to be acquired, Santos will pay Kina $825,000 for the acquisition of that portion of participating interest. The other key elements of the farmout noted, including (i) coverage by Santos of part of Kina's share of geophysical work costs, and (ii) Santos' option to return to Kina any equity acquired subsequent to geophysical work and prior to drilling, are unchanged. Each phase of the farmout is subject to customary government approvals as well as consents and approvals by joint venture partners. The farmout is also subject to extension of the licence. Oil Search (PNG) Limited, as licence operator, continues to work with the PNG Department of Petroleum to progress the extension.