*DJ Total, InterOil Near Deal to Develop Papua New Guinea Gas-Sources ------------

[Bevo]

Anyone care to guess what this can do to the price?

[arthurbell]

DJ Total, InterOil Near Deal to Develop Papua New Guinea Gas-Sources

7:39 PM (GMT-05:00) Eastern Time (US & Canada) Dec 05, 2013

   By David Winning and Ross Kelly

SYDNEY--France's Total SA (TOT) and InterOil Corp. (IOC) are in advanced talks over a deal to develop two of Papua New Guinea's largest undeveloped natural gas fields, people familiar with the matter said Friday.

Houston-based InterOil has long sought new investment in the Elk and Antelope gas discoveries in Papua New Guinea, an impoverished Southeast Asian nation that is emerging as an important liquefied natural gas export hub.

In May, InterOil began exclusive talks with ExxonMobil Corp. (XOM) about the latter investing in the fields, but weren't able to complete a deal. InterOil then began talking to other parties, and earlier this month said it expected to announce a deal by the end of this year.

Total has emerged as the frontrunner in recent days for the InterOil assets in a three-way bid battle that also included Royal Dutch Shell PLC (RDSB) and Exxon, the people said.

I am confused.  If the maximum price is $3.6 Billion is that for 70% of the Elk and Antelope?  That would be 5 billion for 100% of 9 tcf?  Isnt that 55 cents per mcf?    Or am I confused??!! I am confused!   I suppose I will wait for the details!

[Dmarque]

Ready to enjoy the pending sunset while sitting on Kam II, VO Gold in hand. Nice way to end the day and begin my retirement.

And time to replace that 3 series with a 6er .....eh~!  ;- )

[jft310]

4users liked this postsusers disliked this posts0Reply

05 Dec 2013 20:19 EST DJ Total, InterOil Agree Deal to Develop Papua New Guinea Gas -- Update

by rob_cos • 30 minutes ago Flag

05 Dec 2013 20:19 EST DJ Total, InterOil Agree Deal to Develop Papua New Guinea Gas – Update

SYDNEY--France's Total SA (TOT) and InterOil Corp. (IOC) have agreed a deal worth up to US$3.6 billion to develop two of Papua New Guinea's largest undeveloped natural gas fields, people familiar with the matter said Friday.

Total will buy a majority stake in the Elk and Antelope gas discoveries in Papua New Guinea, an impoverished Southeast Asian nation that is emerging as an important liquefied natural gas export hub. InterOil will retain a 30% stake in the gas fields.

The final price of the deal depends on the size of the gas reserves at Elk and Antelope, one of the people said. InterOil and Total have agreed to value the deal in a range of US$1.5 billion and US$3.6 billion, with the higher price payable if the reserves are as large as 9 trillion cubic feet of natural gas.

In May, InterOil began exclusive talks with ExxonMobil Corp. (XOM) about the latter investing in the fields, but weren't able to complete a deal. InterOil then began talking to other parties, and earlier this month said it expected to announce a deal by the end of this year.

Total emerged as the frontrunner in recent days for the InterOil assets in a three-way bid battle that also included Royal Dutch Shell PLC (RDSB) and Exxon, the people said. Less

[will2bgreat]

Arthur,

Per the PR Newwire article, Total gets a 47.5% working interest in EA, so say roughly 50%.  This would value E/A at about $7.2B.

Good luck tomorrow longs.

[sydbod]

.....  If the maximum price is $3.6 Billion is that for 70% of the Elk and Antelope?

$3.6b for apprax 50%

Puts it closer to 70-80c/mcf

[streamingeagle88]

[quote='arthurbell' pid='32971' dateline='1386296110']

.....  If the maximum price is $3.6 Billion is that for 70% of the Elk and Antelope?

$3.6b for apprax 50%

Puts it closer to 70-80c/mcf

Are condensates the key driver?

[jft310]

.....  If the maximum price is $3.6 Billion is that for 70% of the Elk and Antelope?

$3.6b for apprax 50%

Puts it closer to 70-80c/mcf

Values just E/A at $7 billion . 50 percent upside for just E/A ., then add in cash flow for LNG , and all the other prospects

its a great deal . Gas no longer stranded.

It's now monetized with assets to be placed on the books.

[Tusker]

30 yrs. later question will be "Where were you when IOC/TOT deal agreement was posted?"

Thanks Rob.

Gosh.. you mean resource to reserve?

" border="0" class="smilie" src="images/smilies/cool.gif" />