Well, Well, Well....Those Sources Speak

[my2cows]

If PR get's a firesale price that will not do much for IOC's NAV.

This are unproven assets and won't bring much...12.9% interest. Doubt it brings 200 million, maybe less than 100 million. BUT... multiply that out to what IOC owns and will atleast be given some value for it, which we are not at all now. Question is does IOC buy it or let Total have it. No way I'd let OSH buy in.

[Tree]

Pacific Rubiales in talks on sale of PNG interests

Canadian player negotiating with potential buyers for 12.9% interest in blocks PPL 475 and PRL 39

By Russell Searancke Wellington

 10 April 2015 00:00 GMT

Canadian player negotiating with potential buyers for 12.9% interest in blocks PPL 475 and PRL 39

Canadian independent Pacific Rubiales is negotiating with interested buyers on the sale of its assets in Papua New Guinea that include at least two gas and condensate discoveries.

French energy giant Total and PNG’s leading operator Oil Search are among the parties most interested, and both are still in discussions with Pacific Rubiales, said sources.

The seller has previously indicated it expects to sign a sales and purchase agreement in the next month or two.

Another big upstream player in PNG, InterOil, is understood to have pre-emptive rights on any sale agreement.

Pacific Rubiales owns 12.9% of blocks PPL 475 and PRL 39, both of which are onshore in the south of PNG and adjacent to the large Elk-Antelope gas and condensate field which is owned by Total, Oil Search and InterOil.

PPL 475 contains the recent Raptor wet gas discovery, while PRL 39 is host to the Triceratops find.

InterOil, which is the operator of Blocks PPL 475 and PRL 39, said recently that over the next 12 months it will be pursuing a gross resource of 8 trillion cubic feet of gas equivalent through appraisal drilling at the Raptor, Triceratops and Bobcat discoveries.

Bobcat is located in Block PPL 476, which is owned by InterOil and minority partners.

The Triceratops 3 appraisal well is planned to spud in the second quarter this year.

InterOil chief executive Michael Hession said recently the appraisal has upside potential of 2 Tcf, “but we’re looking at 1 Tcf at the moment. That’s a very commercial tie back... into Elk-Antelope”.

As for Raptor, “we expect to return to Raptor towards the end of this year. Raptor is a liquids-rich discovery that has the potential to really move the dial”, added Hession.

Pacific Rubiales signalled last year that it would sell its PNG position, despite the discovery of the Raptor resource.

The company’s chief executive Ronald Pantin said previously that its “two important discoveries” in PNG would generate value. “There are very important liquefied natural gas plants there, so we now have to sell those assets for a good price,” said Pantin.

Pacific Rubiales made its entry into PNG three years ago via a farm-in agreement with InterOil.

At the time, Pantin said his company believed the Triceratops structure to be “a world-class gas and condensate trend and which provides us with the strategic opportunity for early stage large resource capture on the doorstep of the world’s fastest growing primary energy markets”.

Think this deal is hokie?

"Think this deal is hokie?"

No.  PRE has publicly stated negotiations for the sale of PNG assets in 2015 to concentrate on Columbia and Mexico, and to fund a share buy-back.  

[Palm]

The interesting thing with this and any preemption is that the PPL 475 has 21.8% of "other minority interest holders" (most or all PacLNG) who also have preemptive rights. I would guess that after going through arbitration everyone has a much clearer picture of how the process has to work. Think OSH is talking to PacLNG again?

[davidhmtk]

The interesting thing with this and any preemption is that the PPL 475 has 21.8% of "other minority interest holders" (most or all PacLNG) who also have preemptive rights. I would guess that after going through arbitration everyone has a much clearer picture of how the process has to work. Think OSH is talking to PacLNG again?

The key to understanding Oil Search's future acquisitions is that they need a majority interest in one of the PPL's so they can pipe gas to Exxon.  I see them possibly swapping their Elk/Antelope interest for a controlling stake in Triceratops after they buy PRE's interest and make a good offer to Civelli.

[DixieDog1]

[quote='Palm' pid='56832' dateline='1428684362'] The interesting thing with this and any preemption is that the PPL 475 has 21.8% of "other minority interest holders" (most or all PacLNG) who also have preemptive rights. I would guess that after going through arbitration everyone has a much clearer picture of how the process has to work. Think OSH is talking to PacLNG again?

The key to understanding Oil Search's future acquisitions is that they need a majority interest in one of the PPL's so they can pipe gas to Exxon.  I see them possibly swapping their Elk/Antelope interest for a controlling stake in Triceratops after they buy PRE's interest and make a good offer to Civelli.

DAVID---VERY INTERSTING!

[Putncalls]

The interesting thing with this and any preemption is that the PPL 475 has 21.8% of "other minority interest holders" (most or all PacLNG) who also have preemptive rights. I would guess that after going through arbitration everyone has a much clearer picture of how the process has to work. Think OSH is talking to PacLNG again?

The key to understanding Oil Search's future acquisitions is that they need a majority interest in one of the PPL's so they can pipe gas to Exxon.  I see them possibly swapping their Elk/Antelope interest for a controlling stake in Triceratops after they buy PRE's interest and make a good offer to Civelli.

Put yourself In IOC's shoes. If you had a controlling interest in PNG NG would you sell it when your had a strong balance sheet?

[my2cows]

Put yourself In IOC's shoes. If you had a controlling interest in PNG NG would you sell it when your had a strong balance sheet?

Not unless it was Total and you wanted to have them even more commited to FID. " border="0" class="smilie" src="images/smilies/lightbulb.gif" />

[Palm]

The interesting thing with this and any preemption is that the PPL 475 has 21.8% of "other minority interest holders" (most or all PacLNG) who also have preemptive rights. I would guess that after going through arbitration everyone has a much clearer picture of how the process has to work. Think OSH is talking to PacLNG again?

The key to understanding Oil Search's future acquisitions is that they need a majority interest in one of the PPL's so they can pipe gas to Exxon.  I see them possibly swapping their Elk/Antelope interest for a controlling stake in Triceratops after they buy PRE's interest and make a good offer to Civelli.

Not necessarily. If Total decides to pass on PRE's interests, it would leave a big door open for XOM, OSH and the gov to force IOC's hand. IOC can hardly afford to buy both PRE and PacLNG's interest. With a proven LNG operator still necessary IOC could quickly be partners with those 3. Not that it would be a bad thing necessarily but the gov can make things go certain ways; especially with them owning part of OSH.

[Palm]

Put yourself In IOC's shoes. If you had a controlling interest in PNG NG would you sell it when your had a strong balance sheet?

Not unless it was Total and you wanted to have them even more commited to FID. " border="0" class="smilie" src="images/smilies/lightbulb.gif" />

Note: that was Puts' comment, not mine.

[Tusker]

Put yourself In IOC's shoes. If you had a controlling interest in PNG NG would you sell it when your had a strong balance sheet?

Not unless it was Total and you wanted to have them even more commited to FID. " border="0" class="smilie" src="images/smilies/lightbulb.gif" />

Very astute.  The VALUE is in the tie back for a two train LNG Project.  Toss in Stratigic Exploration Partner and recertificaiont upside, we can call it a day with 50/50 ownership.  " border="0" class="smilie" src="images/smilies/lightbulb.gif" />