11-13-2013, 09:47 AM
Nice Gravitar Treelucek.
Couple of adds to Hession and his team's huge accomplishments in just 4 months.
1. Licenses- Many have been sure of that come next March IOC would have nada as far as licenses; all but PRL15 and APRL39 would be snagged by Duma and sold to the highest bidder because the O&G Act doesn't allow for it. Forget that PNG has a history of working with those who invest in PNG and employ PNG citizens. IOC has done both. People may want to review what Dr Mike has to say about negotiations with PNG on keeping ALL of the license areas. He can't guarantee anything of course, but he states that it's what's being negotiated. And they received $250 million to carry out the plan to keep the licenses. Think the banks needed some assurance that anything spent in non-PRL areas wouldn't be water poured down a rat hole? I think so.
2. Speaking of the $250 million. You think that hints at the potential of what we get up front? Again, me thinks so. They obviously can draw the full boat on exploration/development/seismics. But IF/WHEN they sell an interest in EA (note that's just EA), they must repay 100% up to the $250 million. So do they expect they'll get at least $250 million up front. I'd guess so. But that just gets them back flush. They need to continue outside of PRL 15. So I'd guess they expect to get at least an additional $250 milion; if not immediately, in staged payments. I think this because it appears they and the government may want one marriage. Sell a piece of PRL15, prove up the next project and do it again; like we've often said. Drill, drill, drill. Sell, sell, sell. Rinse and repeat.
Dr Mike's formula for success.
Couple of adds to Hession and his team's huge accomplishments in just 4 months.
1. Licenses- Many have been sure of that come next March IOC would have nada as far as licenses; all but PRL15 and APRL39 would be snagged by Duma and sold to the highest bidder because the O&G Act doesn't allow for it. Forget that PNG has a history of working with those who invest in PNG and employ PNG citizens. IOC has done both. People may want to review what Dr Mike has to say about negotiations with PNG on keeping ALL of the license areas. He can't guarantee anything of course, but he states that it's what's being negotiated. And they received $250 million to carry out the plan to keep the licenses. Think the banks needed some assurance that anything spent in non-PRL areas wouldn't be water poured down a rat hole? I think so.
2. Speaking of the $250 million. You think that hints at the potential of what we get up front? Again, me thinks so. They obviously can draw the full boat on exploration/development/seismics. But IF/WHEN they sell an interest in EA (note that's just EA), they must repay 100% up to the $250 million. So do they expect they'll get at least $250 million up front. I'd guess so. But that just gets them back flush. They need to continue outside of PRL 15. So I'd guess they expect to get at least an additional $250 milion; if not immediately, in staged payments. I think this because it appears they and the government may want one marriage. Sell a piece of PRL15, prove up the next project and do it again; like we've often said. Drill, drill, drill. Sell, sell, sell. Rinse and repeat.
Dr Mike's formula for success.