(08-01-2013, 11:31 AM)Palm Wrote:

So we hear about widespread corruption in DPE and Duma comes out firing. Says "The State" is giving IOC 180 days "to prove its worth". Haven't we heard this tune before? Oh yeah, when Operation Zebra was launched. Sigh.........

GULF LNG: INTEROIL GIVEN 180 DAYS TO PROVE ITS WORTH

on Thursday, 01 August 2013. Posted in PNG Resource News, News

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The state has given InterOil 180 days to prove its worth to develop the Elk and Antelope gas fields’ in Gulf.

The Elk and Antelope gas fields are in the Baimuru district of the Gulf Province. These reserves are host to the second PNG LNG project. Work is underway and a developer has yet to be confirmed.

The provincial government has raised serious concerns about the current developer - InterOil.

It claimed InterOil has failed to honour its commitments to the project and honour the MoA it signed with the state in December 2009 to make a final investment decision by the 24th of June 2013.

Minister Duma said the current developer has been given 180 days that is up to December to give a detailed account on their position.

“They were expected by the government to ensure that whatever arrangement or structure they agree upon must be in line with the specifications,” said Minister Duma.

Minister Duma has received the provincial government’s proposition paper on the Gulf LNG.

The provincial government has urged the state to find a new developer.

Its political heads demanded maximum benefits from the LNG project for their people and province. The leaders also raised concerns about the InterOil / ExxonMobil partnership.

“We fear the danger of Monopoly by one LNG engage operator in the country and that we want to remind the state ‘that must be avoided as much as possible’.

Meantime, InterOil said at this time, all parties including the State continue to hold constructive dialogue on development options for the Elk / Antelope gas resource.

A detailed report on this issue is expected soon."

http://www.emtv.com.pg/home/latest-news/item/gulf-lng-interoil-given-180-days-to-prove-its-worth?category_id=20

I had a feeling something was up yesterday with 800k shares traded and no change in the PPS.  I suspect shorts were pushing hard in advance of this article.  Bet we rise today. --- Did anyone hear someone cry wolfffffffffffffff?

Very predictable what has happened here, even happens in the US.  In my past experience, there was only one nuclear waste disposal company (name and location omitted) in the 90's.  Then a company came along in west Texas that filed a permit to dispose of nuclear waste.  Looking at the geology, it looked liked a good location, however during the public meetings a group arose to oppose the nuclear disposal site.  To make a long story short, it turns out the one, permitted nuclear site was "sponsoring" the Texas nuclear site opposition group.  Why?  They would lose their monopoly and pricing power.

Now, don't we have the same thing here?  We have a company trying to do business in a corrupt country.  The shorts are way underwater. What do you do?  For a few bucks, you go spread of money, lies, and opposition to the company.  The question is, "hasn't this Duma thing run it's course and are the shorts getting the law of diminishing returns here?  Today's price action will tell, but I think this will little impact on the stock price.  Too many people think the deal to too close.

By the way, what the shorts have forgotten in this article is the reaction if this was a serious threat; IOC would sell out to Exxon.  I think that would meet the 2009 MOA.

Good luck longs