02-24-2012, 08:54 PM
Here is a map showing all nine of the blocks being farmed out to Mitsubishi.
http://cnrp.marketwire.com/cnrp_files/20...c23ewd.pdf
There may be more to the agreement than meets the eye. Here is the “offer” from Talisman:
“The Opportunity:
Talisman seeks expressions of interest to join and participate in an early stage of a large scale, onshore gas opportunity in the Foreland Basin, Western Province of Papua New Guinea.
Sale of up to 50% ownership interest in PNG licences PPL 235 and PPL 261 discovered GIIP 2.4 Tcf (unrisked); and P10 undiscovered GIIP > 17 Tcf (unrisked) at 31 Oct 2011; and sale of up to 10% ownership interest in PNG licences PRL 4 and PRL 21.”
The PR said Mitsubishi’s interest would “average” about 20%. I think they probably only got 10% interest in PRL 4 and PRL 21. PRL 21 contains the Ketu and Elevala gas discoveries. PRL 4 contains the Stanley discovery well plus a couple of other wells.
Definition of Farm Out:
The assignment of part or all of an oil, natural gas or mineral interest to a third party. The interest may be in any agreed-upon form, such as exploration blocks or drilling acreage. The third party, called the "farmee," pays the farmor a sum of money up front for the interest and also commits to spending money to perform a specific activity related to the interest, such as operating oil exploration blocks, funding expenditures, testing or drilling. Income generated from the farmee’s activities will partly go to the farmor and partly go to the farmee in percentages determined by the agreement.
http://cnrp.marketwire.com/cnrp_files/20...c23ewd.pdf
There may be more to the agreement than meets the eye. Here is the “offer” from Talisman:
“The Opportunity:
Talisman seeks expressions of interest to join and participate in an early stage of a large scale, onshore gas opportunity in the Foreland Basin, Western Province of Papua New Guinea.
Sale of up to 50% ownership interest in PNG licences PPL 235 and PPL 261 discovered GIIP 2.4 Tcf (unrisked); and P10 undiscovered GIIP > 17 Tcf (unrisked) at 31 Oct 2011; and sale of up to 10% ownership interest in PNG licences PRL 4 and PRL 21.”
The PR said Mitsubishi’s interest would “average” about 20%. I think they probably only got 10% interest in PRL 4 and PRL 21. PRL 21 contains the Ketu and Elevala gas discoveries. PRL 4 contains the Stanley discovery well plus a couple of other wells.
Definition of Farm Out:
The assignment of part or all of an oil, natural gas or mineral interest to a third party. The interest may be in any agreed-upon form, such as exploration blocks or drilling acreage. The third party, called the "farmee," pays the farmor a sum of money up front for the interest and also commits to spending money to perform a specific activity related to the interest, such as operating oil exploration blocks, funding expenditures, testing or drilling. Income generated from the farmee’s activities will partly go to the farmor and partly go to the farmee in percentages determined by the agreement.