Robert Jordan , PPE President said that it is most likely that there is the presence of natural gas and 10 percent chance that they will be finding oil.
PPE was granted license to explore for oil and gas a 1-million-acre concession in the country’s territorial waters.
A license agreement between Palau and PPE has been executed to allow exploration at Palau North Block which is under the jurisdiction of Kayangel State.
PPE also obtained concession to drill and explore Ngarchelong State waters.
Under the agreement with the Ngarchelong State it also stated that that if no oil or gas of commercial quantities is discovered by May 15, 2012 , the agreement will continue in effect on a year-to-year basis with licensee paying a rental of ten cents ($0.10) per acre times the number of acres in the Palau North Block.
The agreement further added that is commercial hydrocarbons are discovered then rental ceases.
Jordan said that all the company need to secure is the Environmental Quality Protection Board (EQPB) permit to start exploration and drilling.
