'Palm' pid='31378' datel Wrote:
From the MD&A, a few more details:
• On July 16, 2013, we entered into a Settlement and Termination Deed with Mitsui following the
termination of the CSP JVOA on February 28, 2013. In accordance with the deed, we repaid Mitsui
$34.4 million in relation to the cancellation of option to acquire interests in the Elk and Antelope fields,
and Mitsui’s share of capital expenditure incurred on the condensate stripping facilities, the unsecured
loan, together with interest thereon. The facility has now been fully repaid and all security provided to
Mitsui discharged.
• The work program undertaken on behalf of OSE in the combined seismic over their PPL338 and our
PPL237 licenses was completed. OSE has requested additional lines be acquired on their behalf in the
coming quarter. We will continue to act as the operator of the work program under a data sharing and
joint processing arrangement. During the quarter, previous seismic data obtained from DPE archives
over the Raptor prospect in PPL237 was reprocessed. With advances in technology the reprocessed
data will provide a better understanding of the prospectively of the acreage and identify well locations.
• Subsequent to quarter end, a multi-well drilling and seismic work program and budget was approved by
our Board. The work program consists of six wells (1 well each in our prospecting licenses PPL236, 237
and 238, 2 appraisal wells in PRL15, and 1 well in APRL39), plus a seismic program in Triceratops east,
southwest Antelope and a new prospect Bobcat located on PPL238.
• Subsequent to quarter end, on October 24, 2013, we entered into an Exchange Agreement with PNGEI
to buyback their 4.25% indirect participation interest percentage under the Amended Indirect
Participation Interest Agreement dated May 12, 2004, including their interest and rights to future
distributions in exchange for 100,000 of our common shares.
• Subsequent to quarter end, on November 11, 2013, we entered into a $250.0 million secured syndicated
capital expenditure facility led by Credit Suisse AG related to the approved seismic data acquisition and
drilling program. In addition to Credit Suisse, the participating lenders are Commonwealth Bank of
Australia (“CBA&rdquo
, Australia and New Zealand Banking Group Limited (“ANZ&rdquo, UBS AG, Macquarie
Group Limited (“Macquarie&rdquo, Bank South Pacific Limited (“BSP&rdquo, BNP Paribas and Westpac Bank PNG
Limited (“Westpac&rdquo. The facility is secured by our existing Upstream and Corporate entities. The
facility bears interest at LIBOR plus 5.5% margin on the drawn amount for the first six months. After the
first six month period the margin escalates 2.0% every two months to a maximum of 11.5% in the last
two months of the 12-month term. The facility is payable in full (within a certain timeframe) upon any sale
or disposal of our interest in the Elk and Antelope fields.
• On September 10, 2013, we sold our investment in FLEX LNG shares for $7.8 million, resulting in a gain
on the investment for the nine months ended September 30, 2013 of $3.7 million
As at September 30, 2013, we had cash, cash equivalents, and restricted cash of $79.3 million (September 30,
2012 – $96.7 million), of which $38.9 million (September 30, 2012 - $39.6 million) was restricted. Of the total
restricted cash of $38.9 million, $27.3 million (September 30, 2012 - $33.6 million) was restricted pursuant to the
BNP working capital facility utilization requirements, $11.2 million (September 30, 2012 – $5.6 million) was
restricted as a cash deposit on the secured loans (ANZ, BSP and BNP syndicated secured loan facility as at
September 30, 2013, and OPIC facility as at September 30, 2012), and the balance was made up of a cash
deposit on office premises together with term deposits on our PPLs."
Oil Search requests additional lines of seismic. Must like what they saw when the first one was completed.
