02-15-2013, 12:16 AM
Great article from Treasure Hunter. A couple of comments:
1. He states, "The next prospects to be drilled are Wahoo/Mako and Tuna. The Wahoo build-up is large (approximately 7.5km to 8 km in strike length) and preliminary mapping suggests the Wahoo/Mako trend may have a structural closure of approximately 18,039 acres (73 sq. kilometers). Both seismic and airborne gravity and magnetic data indicates Tuna contains reefal properties. Locations have been selected for drilling both prospects. These two prospects are located between Elk/Antelope and Triceratops. Hence, Tuna and Wahoo/Mako must be prospective for being reefs since they are between two known reefs." Just to clarify, the Wahoo/Make and Tuna prospects are not between EA and TRI; they are located to the south of EA but are believed to be part of "the string of pearls"; reefal buildups which appear to run right through the heart of IOC's PPLs/PRL.
2. I think that some of the assumptions are conservative, but that's OK. I'd much rather be a bit low on expectations and have them exceeded than the other way around. We are way too familiar with disappointments.
3. The point he makes about the quality of IOC's resource can hardly be emphasized enough. These finds are all onshore, as he states, the quality is very high (To the point that it will meet the very high standards of Japan's power plants WITHOUT needing additives like CSG does) and the liquids are very rich. IOC in its presentation yesterday mentioned, "Minimal pre-LNG processing requirements" (slide 6), which is very important. High quality gas requires less cost in plants and fewer processes in treatment; big carrots for potential partners as well as the State of PNG. PNG is reported to be planning on taking some or all of its gas "in-kind", which means out of the CSP. They will save immensely in the cost of treated gas to feed any power plant(s) and hospitals, schools, businesses, etc.
The clock is ticking and Treasure Hunter has given us added reasons to expect a nice near term and long term return.
1. He states, "The next prospects to be drilled are Wahoo/Mako and Tuna. The Wahoo build-up is large (approximately 7.5km to 8 km in strike length) and preliminary mapping suggests the Wahoo/Mako trend may have a structural closure of approximately 18,039 acres (73 sq. kilometers). Both seismic and airborne gravity and magnetic data indicates Tuna contains reefal properties. Locations have been selected for drilling both prospects. These two prospects are located between Elk/Antelope and Triceratops. Hence, Tuna and Wahoo/Mako must be prospective for being reefs since they are between two known reefs." Just to clarify, the Wahoo/Make and Tuna prospects are not between EA and TRI; they are located to the south of EA but are believed to be part of "the string of pearls"; reefal buildups which appear to run right through the heart of IOC's PPLs/PRL.
2. I think that some of the assumptions are conservative, but that's OK. I'd much rather be a bit low on expectations and have them exceeded than the other way around. We are way too familiar with disappointments.
3. The point he makes about the quality of IOC's resource can hardly be emphasized enough. These finds are all onshore, as he states, the quality is very high (To the point that it will meet the very high standards of Japan's power plants WITHOUT needing additives like CSG does) and the liquids are very rich. IOC in its presentation yesterday mentioned, "Minimal pre-LNG processing requirements" (slide 6), which is very important. High quality gas requires less cost in plants and fewer processes in treatment; big carrots for potential partners as well as the State of PNG. PNG is reported to be planning on taking some or all of its gas "in-kind", which means out of the CSP. They will save immensely in the cost of treated gas to feed any power plant(s) and hospitals, schools, businesses, etc.
The clock is ticking and Treasure Hunter has given us added reasons to expect a nice near term and long term return.