'bpjensen' pid='80159' datel Wrote:Did you notice this in the report-
"Following the completion of appraisal drilling and a technical reassessment, Oil Search’s
estimate of 2C contingent gas resources at the Elk-Antelope fields in PRL 15 increased by 21%,confirming that this is a world class gas resource which, combined with resources at P’nyang,can underpin at least two additional PNG LNG-sized LNG trains"What bearing will this have on the CRP?
I doubt it will have any affect. Their statement depends on the timing of when they made this reassessment and what this 21% increase is relative to. Remember, they had to pay off their minority holders with the appraisal size of E/A (just like TOTAL was supposed to pay IOC and now XOM is paying thru the CRP). Their payment was based on the average of the two reserervoir engineering firms they hired to do the work last year. The outcome of that was a 12% difference (by percentage basis) between the two companies, Gaffney Cline & Associates (GCA) and Netherland, Sewell & Associates, Inc. (NSAI). The average for 2C was 6.43 tcf but NSAI calculated 6.06 tcf and GCA calculated 6.80 tcf.
Remember the Golden Rule - when making resource size estimates for your shareholders, make the number as lofty and certain as possible. When making resource size estimates for payout from your company to the former owner, make the number as low and uncertain as possible.
The other nugget in this OSH report was that the timeline for decisions on Papua LNG is moving out yet again thanks to the PNG government giving their license renewal with favorable terms. FEED is now not expected until late 2017 / early 2018 and FID not until early 2019. Who would have thought this could be drug out so long. My first IOC purchase was in the 2008/2009 timeframe, I surely thought then we would be producing LNG by 2017, not still studying the field and delaying FEED and FID - sheesh.....