08-22-2013, 03:38 AM
Palmer hasn't drilled a single well yet, and while 3d seismics may be adequate to attract a farm-in partner at compelling terms, it's not relevant to the Elk/Antelope sell-down process. An additional PNG LNG train underpinned by P'nyang and Hides will take at least 2 years to reach FID while speulative offshore acreage like Palmer's would likely take several years beyond that to develop. Elk/Antelope is the only source of certain gas that can underpin an additional 1-2 trains now. If anything, Palmer's claims only serve to draw more attention to the PNG gas story and hence more value to InterOil's core license areas with a proven string of pearls.