Legal Nature of the Papua New Guinea Petroleum Arrangement

[jft310]

This is a short talking point on yahoo the expiration of the 2009 agreement and Bonk's firm has a put spread on June-Dec to make a big deal about it. So its best to deflate the short ballon before it flys anywhere.At one time the shorts IOC had no NG if one listened to Eric and crew. Just nonsense. Further the Exxon project has the PNG govt paying its portion of the allowable buy in upfront and thats some type precedent today. We also know that the Japanese govt has stated they will fund the entire LNG project in exchange for offtake or a buy in. Source RJ Institutional Call. And we also have Shell in a written agreement with Petromin stating they will pre fund the govts interest upfront.
Phil M has always said money for the project was never an issue. The reasons for that should be obvious to all. Its wet NG guys and girls!!! The liquids are HUGE part of this story which many forget. IOC is supposed to keep all the liquids for themselves has been the story.Its 30,000 barrels a day of liquid production and IOC owns a refinery. And PRE paid $3.85 per mcf non discounted for time. That would be the govt buy in price if biught anything above the 22.5% which most think will not happen. Hint the govt doesn't have the money.
This is the most compelling story in the Mid Cap space today I was told by a very large Portfolio Manager .As in Billions AUM.