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Oil Search update PRL15
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08-27-2015, 01:31 AM
Correct me if I am wrong but it appears OSH pays 77 cents per MCF over 7.1 T P-2 . Assume E/A has 12 T's plus Ant S might have 5 T's that's a large payment to PACLNG . Without more wells West like an Ant 7 or not a single well in Mule Deer within PRL-15 . Does Oil Search pay again on a second certification I don't remember reading that language . Sounds like a heck of a liability to me either way .
08-27-2015, 01:36 AM
It's better that OSH can support Papau LNG? Is it not?
08-27-2015, 01:47 AM
I for one can't see how Oil Search pays PACLNG what's due and expands with Exxon and builds with Total . Oil Search is the weak link . Lot's of ways that be resolved .
'jft310' pid='62132' datel Wrote:Correct me if I am wrong but it appears OSH pays 77 cents per MCF over 7.1 T P-2 . Assume E/A has 12 T's plus Ant S might have 5 T's that's a large payment to PACLNG . Without more wells West like an Ant 7 or not a single well in Mule Deer within PRL-15 . Does Oil Search pay again on a second certification I don't remember reading that language . Sounds like a heck of a liability to me either way . Per their financials they pay at a Certification to be done after Ant 6 is completed which they are estimating to be mid-2Q2016, which may or may not coincide with the IOC/Total Certification. They pay 0.775/mcf for anything over 7tcf 2C raw gas contingent resource on the gross 22.835%. Their YE note says they make "payments" (plural), but not sure how those might be done. Of course this is part of the reason that they have been playing down the possible volume in EA. Their disclosure states that the $900+ million already paid assumes the 7Ts and no liability for anything above that has been booked pending the Certification. If they started bragging that EA is 10Ts or something like that, they might have to disclose what their payment would be. They don't want that until/unless necessary. 
08-27-2015, 03:37 AM
FWIW, I saw this interview the other night on CNBC Asia. Not much color, but at roughly 3 minutes in, there is a mention of Elk Antelope by the interviewer who also addresses LNG demand, to which Botten responds generally about what he sees as a broad market in the region for LNG going forward.
http://video.cnbc.com/gallery/?video=3000410727 Good luck longs Jdeo
08-27-2015, 05:47 AM
Remember Oil Search bought into PRL-15 with E/A a subset . Their liability could easily ballon with a find at Ant S. Also when will we drill Mule Deer/Raptor part of which is certainly in PRL-15 . Does Botten think all of those are gas free
08-27-2015, 05:55 AM
If your talking about potential liability on payments to Pac LNG, only EA fields are included in the $0.775/mcf payment(s).
08-27-2015, 06:20 AM
I was thinking back Interoil had a liquidity problem when Merrill went broke they called their loan . Civelli got $140 million wired in within hours of the need and the price was 20 percent of Elk/ Antelope . Talk about a deal for him . Phil had no choice at that time . If Palm is right then Civelli sold his interest in E/A only to Oil Search . So it's worse for Oil Search to use gas from outside E/A requires a new buy in agreement with Interoil . Oil Search doesn't own gas outside E/A within PRL-15 . Never heard that .
So Oil Search has no rights to Ant S , Mule Deer and Raptor within PRL-15. Not sure that's right looking at the slides . None of them state that . Worth checking on . No, OSH has rights to PRL 15; that's what they bought with Pac LNG. But the $0.775/mcf adder only applies to EA; that's the deal that was struck. Pac LNG companies were part of original JVOA for PRL 15, so OSH has rights to anything within PRL 15.
08-27-2015, 07:14 AM
I guess that "begs the question" Does OSH and TOT have a stake in Raptor?
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