Where will we drill the next 10 wells in PPL237?

[petrengr1]

Of course I don't know but here are some ideas:

From http://www.interoil.com/triceratops-2/

“Having tested only a small portion of a structure, InterOil, is looking forward to working with its partner Pacific Rubiales in integrating the new well and potential field data with the aim of designing a seismic data acquisition and six well delineation plan at the Triceratops structure.”

From http://www.interoil.com/investor-relatio...nd-ppl237/

“a carry, of an additional 25% of the expenditures associated with a 250 km 2D seismic program, the drilling, testing and completion of the Triceratops-2 well appraisal well currently underway and six additional appraisal wells planned on the Triceratops structure, and the drilling, testing and completion of four new appraisal wells planned for other locations within PPL237.”

So we are supposed to get six more wells at Triceratops and four more wells at “other locations” from the PRE deal. It is strange that they call these last four “appraisal” wells since there are no other fields in PPL237.

We just happen to have four other prospects on the Western side of PPL237, Seismosaurus, T-Rex, Allosaurus and Brontosaurus. http://www.interoil.com/iocfiles/documen...inal-1.pdf  page 21. (Magnify so you can read the names of the prospects)

Will they do some seismic on these prospects and drill a well on each? Phil has said he wants to develop the prospects near the planned infrastructure. That could mean they will do seismic and drill prospects near Elk/Antelope i.e. Mule Deer, White Tail, Mountain Lion, Raptor/Duckbill or maybe Puri or Puri Deep.

[sageo]

Petrengr1- Thanks very much for your in-depth work concerning the PRE and IOC plans. It certainly gives us something to look forward to in the coming months.  My best to you and yours.( hope the ppl 237 turns out to be awesome!)

[Getitrt2]

petrengr1: It looks like the other prospects you mention near E/A are either in PRL 15 or PPL 237. I believe that would make part of them part of the E/A sell down, unless they break up PRL 15 in the agreement(s), and part of them in the PPL 237 deal with PRE in addition to the ones on the Western side.

[petrengr1]

petrengr1: It looks like the other prospects you mention near E/A are either in PRL 15 or PPL 237. I believe that would make part of them part of the E/A sell down, unless they break up PRL 15 in the agreement(s), and part of them in the PPL 237 deal with PRE in addition to the ones on the Western side.

Getit- As presented on the map at http://www.interoil.com/iocfiles/documen...inal-1.pdf   Page 21 the following prospects are in “both” PRL-15 and PPL-237: Mule Deer, Mountain Lion, White Tail and Raptor/Duckbill. If drilling and additional seismic confirms this picture then the parties of both licenses would likely make a unitization agreement whereby the production would be split up in accordance with the agreement between the owners of PRL-15 and PPL-237.

The sell down agreement is just for PRL-15, so it only includes what is under the surface area marked as PRL-15. The owners of PPL-237 are entitled to whatever is on their side of the boundary between PRL-15 and PPL-237. Until a unitization agreement is made the license owners on each side of the boundary are entitled to whatever is produced from their license. After a unitization agreement is made the production from the entire field is split in accordance with the agreed percentages.

Of course we are getting a little ahead of ourselves since we do not yet know it these prospects contain hydrocarbons and we do not yet have the necessary positive information that the prospects are productive on both sides of the boundary. Let’s just hope this is a problem that has to be solved in the future.

[sageo]

petrengr1: It looks like the other prospects you mention near E/A are either in PRL 15 or PPL 237. I believe that would make part of them part of the E/A sell down, unless they break up PRL 15 in the agreement(s), and part of them in the PPL 237 deal with PRE in addition to the ones on the Western side.

Getit- As presented on the map at http://www.interoil.com/iocfiles/documen...inal-1.pdf   Page 21 the following prospects are in “both” PRL-15 and PPL-237: Mule Deer, Mountain Lion, White Tail and Raptor/Duckbill. If drilling and additional seismic confirms this picture then the parties of both licenses would likely make a unitization agreement whereby the production would be split up in accordance with the agreement between the owners of PRL-15 and PPL-237.

The sell down agreement is just for PRL-15, so it only includes what is under the surface area marked as PRL-15. The owners of PPL-237 are entitled to whatever is on their side of the boundary between PRL-15 and PPL-237. Until a unitization agreement is made the license owners on each side of the boundary are entitled to whatever is produced from their license. After a unitization agreement is made the production from the entire field is split in accordance with the agreed percentages.

Of course we are getting a little ahead of ourselves since we do not yet know it these prospects contain hydrocarbons and we do not yet have the necessary positive information that the prospects are productive on both sides of the boundary. Let’s just hope this is a problem that has to be solved in the future.

  Thanks for that clarification on those prospects,Pet. As an aside, I can't remember if you have any interest in bpz resources (bpz) or not,(in Peru); but if so,have you noticed what Pacific Rubiales is doing with them now ? As of 4-1-13,pre is now handling the drilling aspects on the wells in thier Z-1 lease.( according to one recent report)