03-13-2014, 06:44 AM
Thanks, Gator!
Comments/emphasis points:
-Cites 7 Tcf contingent resource estimates from GCA, but claims "substantial exploration and appraisal upside in PRL 15".
-Cites up to four appraisal and exploration wells to be drilled in PRL 15 "designed to prove up sufficient gas resources to support LNG development".
-Claims "Oil Search holds interests in licences adjoining PRL 15" which "Provides aggregation opportunity". I'd say that is at least a little overstatement. They have one lease that adjoins a small part of the southwest corner of PRL 15 at the farthest point away from Elk/Antelope and prospects in PRL 15. Otherwise, PRL 15 is surrounded by IOC PPLs, in which OSH is seeking interests from PacLNG but does not yet have any. OSH has exclusivity for such negotiations for six months; but I would say PacLNG is in no hurry, as they await drilling results and potential increases in values. I would also say their "aggregation opportunity" would be for additional gas to supply a second LNG project they would be a partner in and/or gas for expansion of either or both projects.
For those who are convinced that OSH is determined to divert PRL 15 gas to PNG LNG, I point out the following from their page 29 Summary not included above:
"Moving forward on LNG expansion plans:
– Proven P’nyang resource
– Drilling to determine size and shape of Hides underway
– Acquisition of PRL 15 interest provides exposure to potential new LNG development underpinned by Elk/Antelope. Commercially attractive on both a standalone or expansion basis"
Comments/emphasis points:
-Cites 7 Tcf contingent resource estimates from GCA, but claims "substantial exploration and appraisal upside in PRL 15".
-Cites up to four appraisal and exploration wells to be drilled in PRL 15 "designed to prove up sufficient gas resources to support LNG development".
-Claims "Oil Search holds interests in licences adjoining PRL 15" which "Provides aggregation opportunity". I'd say that is at least a little overstatement. They have one lease that adjoins a small part of the southwest corner of PRL 15 at the farthest point away from Elk/Antelope and prospects in PRL 15. Otherwise, PRL 15 is surrounded by IOC PPLs, in which OSH is seeking interests from PacLNG but does not yet have any. OSH has exclusivity for such negotiations for six months; but I would say PacLNG is in no hurry, as they await drilling results and potential increases in values. I would also say their "aggregation opportunity" would be for additional gas to supply a second LNG project they would be a partner in and/or gas for expansion of either or both projects.
For those who are convinced that OSH is determined to divert PRL 15 gas to PNG LNG, I point out the following from their page 29 Summary not included above:
"Moving forward on LNG expansion plans:
– Proven P’nyang resource
– Drilling to determine size and shape of Hides underway
– Acquisition of PRL 15 interest provides exposure to potential new LNG development underpinned by Elk/Antelope. Commercially attractive on both a standalone or expansion basis"