Drilling Update reservoir 217 Ft higher

[bertl05]

My guess is SD partners want to see under the A3 hood. Or if its a gem, it will improve deal terms, perhaps a bit of both. Looks like until then we will be under the influence of shorts, option players, MM and other assorted scammer types.

[jft310]

One person stated they those bidders wanted a confirmation that the resource rock was in place here at A-3.
So we wait.Aldorf Slides show A-3 completed end of Dec. Is that gonna happen?

[sfiaes]

Additional confirmation of the resource is helpful, but I believe the most important issue right now is a signed Project Agreement.

The sell off last week related to the realization we weren't going to hear anything on the 30th. We need to know what is going on with those negotiations.

Who will finance the state's purchase of the additional 27.5%? I was told the three logical choices would be China, Shell or Exxon.

At this late juncture and given the low stock price I believe the company is in play. Any of the above mentioned entities could easily afford $5 - $7.5B for 58.5% of between 10 - 15T's.

[Getitrt2]

petrengr1:
They have drilling sites identified at Tuna and Makoo/Wahoo, and I believe two wells at those locations spudded in March is their intent, perhaps using a third rig as you indicate as a possibility. However, I understand one of the sites at Tuna straddles licenses 236 and 238; and if they needed to, they could spud two wells in the two license areas 100 ft apart from the same site and meet those license requirements (one Tuna discovery well and one Tuna appraisal well)!

One reason for cooperation by PNG on license adjustment at Elk for timing of drilling: PNG would be incurring up to half of the additional costs!

[jft310]

And where does PRE fit into the drilling plans with them fronting IOC with cash they also have expectationsl Two wells ageeed to and both to be drilled deeper where the liquids are supposed to be.

[Getitrt2]

from the new presentation: "InterOil, PacLNG and its partners are currently drilling Antelope-3 which will comply with 1 of the 2 well obligations. Antelope-3 is expected to be finished by the End of December. Elk-3 will then commence drilling mid January to complete the well obligations for years 1 & 2" This answers some of the questions we had surrounding the timeline on when to expect A3 results & when E3 would start

Yes, and it is proof, of cooperative relations between IOC and PNG, as they had to commence drilling by the end of November, but got an extension. If PNG wanted to 'nationalize' part of their resource, they could have done so legally by not granting the extension.

Actions often speak louder than words.

Not quite the case, admin, thankfully.  They had Rig 3 in place ready to spud with a drilling crew available.  If PNG had not granted the license drilling adjustment, IOC would have spudded Elk 3 by Nov 30,  even if not continued drilling it now.  By the way, another reason for PNG to agree:  they would be incurring up to half of any additional higher drilling costs.

[admin]

Well, getitrt, but they weren't forced to commence drilling Elk3 or forfeit part of the license, which is proof of cooperative, rather than antagonistic, relations.

[Getitrt2]

bert and jft:
It is my understanding that no bidders are waiting for additional information from A3, and that finalization of bids is actively on-going with the IBs now that they have the government approval of the phased LNG project without the government in the first phase. That does not mean they don't prefer having the formal signed agreement with PNG in place before the final sell down deal, but there is reason to believe that will not take very long (the final formal PA).

[Getitrt2]

Well, getitrt, but they weren't forced to commence drilling Elk3 or forfeit part of the license, which is proof of cooperative, rather than antagonistic, relations.

Totally agreed, admin; I did not mean to dispute that, and a very important aspect.

[Justin94360]

bert and jft: It is my understanding that no bidders are waiting for additional information from A3, and that finalization of bids is actively on-going with the IBs now that they have the government approval of the phased LNG project without the government in the first phase. That does not mean they don't prefer having the formal signed agreement with PNG in place before the final sell down deal, but there is reason to believe that will not take very long (the final formal PA).

Getit, if that's correct that is great news, thanks.