PET- Best guess on top of formation time

[jft310]

Why is IOC drilling three new wells if they Total SPA is "defunct"?

Puts- They are drilling these wells for the shareholders . We own 77 percent right now.

PET - it's a dream so true but  you keep it alive thanks . May 1st for top of formation works, thanks for helping.

My sources who occasionally get it right say thus is a hunt for the oil. Certainly will take more gas !!

[Putncalls]

i don't get the SPA is defunct part?

[Stavros]

The SPA had a Condition Precendent that IOC would acquire the Pacific LNG holding. They would then control 100% of PRL 15. They would sell 61.3% of PRL 15 (gross before government buy in) to TOTAL and retain the rest.

Since they didn't acquire Pac LNG's holding, and since they do not have 61.3% of PRL 15 to sell to TOTAL, the SPA is no longer valid.
IOC and TOTAL can agree to new Terms and Conditions OR they can part ways.

Origin of DEFUNCT
Latin defunctus, from past participle of defungi to finish, die, from de- + fungi to perform

[jft310]

de-fungi made me laugh thanks Stavros

[Getitrt2]

ebster, as far as "relatively immediate cash flow for the liquids" is concerned, I think you have to make a big distinction as to whether you're talking about a discovery of oil or a discovery of natural gas with condensates ("liquids") in it. They could produce or pump oil from an oil well and sell it relatively quickly, whereas with condensates they would have to wait until ready to produce gas and then process it through a CSP (condensate stripping plant) to separate and liquify the condensates before piping the dry gas to the LNG plant. Therefore, the latter would have essentially the same cash flow timing as the gas/LNG. The alternative for the dry gas would be to pump it back into the underground formation via a separate well, as IOC once contemplated years ago.

[ebster123]

Thanks Getit, that was as I suspected but wither way there is a win win and in the case of oil would be an earlier win win. Time will tell, Thanks!

[ArtM72]

Interesting thread. I don't know anything but could current economic models be looking back at re-injection as LNG plants are being built? I suspect strongly this is not the case but throw it out for people more skilled than I in these matters to consider.

I'll go back on the line and suggests NOTHING happens until Wahoo reveals itself, which is likely mid April. Gas? No gas? With so many billions involved I, for one, would be more than willing to hold my development decision for the next few additional weeks. Wahoo takes a fart? The string of pearls confirms as an oyster bed.

[Getitrt2]

Art, I don't think ANYTHING will wait on Wahoo-1 other than the well that rig would go to next!