Antelope 7

[sageo]

They have no choice but to wait on wild card. The soonest they (or Total) can call for it is first shipment of LNG. The plan put forth by mgmt is to prove up, sell share(s), and develop. The PRL factory theory. With the miss at Wahoo, their next chance is TBR. I think their goal has been to generate their needed operating costs out of these PRL % sales. Hession has said that they "are" talking with others about sales of PRL % (buyins) and their goal is to do similar to as they did with Total. I hope that's the case. The reason I fear dipping into the credit line before Certification is it's that much less they have net from the Certification payment. The drilling carry already comes out of the Certification funds; don't want debt service too. Once they get to FID and PDL their options open up. They book reserves and the government kicks in their share (unless they opt for it to be taken out of initial LNG sales proceeds), and they get more cash from Total. I really hope they can bridge the gap to FID without needing to tap debt or an equity raise.

  Palm - Read your post last evening,and I wanted to think about it over night . Woke up early and thought some more on "the PRL factory theory". What would you think about this senario :  [ buyins] ....work a deal with Rex's reps in PNG as a buyin to PRL 39 .Instead of asking for a small percentage of the LNG/PNG revenues (or a small stake), put in these conditions : build pipelines to the southwest (gas & cndensates) to intersect with the current pipelines, and also to drill several wells to the west (nearer to the fault) in order to get the maximum benifit from the Triceratops field (some 19 or so square miles) much sooner than we might expect otherwise .

  If you disagree with my thinking,please do so with care....( this old 84 yr old 'dude' bruises easily .) Ha,ha.

Sageo, the Triceratops field is large and likely contains a lot of gas.  But so far we haven't seen the big booming wells to indicate it would be easy to produce and exploit.  One of the things attractive about Antelope is that relatively few wells will be necessary to get the gas.

 Thy - Hi there.....good to hear from you. True on Antelope ....it will take less wells. Since Tri will take more wells,that is why I wanted (as one of the conditions) to have Exxon drill them if they wanted to use the gas in order to start their 3 rd train . [ PNG gov't would sure like that .....lots of immediate jobs to booster their economy]. We would receive buyin dollars to enhance our cash position . Just kind'a thinking "out-loud" .....another term for 'wondering' I guess . Have a good one .