Random Musings

[efi426hemi]

My friends,

Buying into PRL #15 is one hell of a deal

• The winning bidder is going to get ownership in Bighorn, Grizzly and partial ownership in MuleDeer, White Tail, Mountain Lion and Raptor/Duckbill.
• So any future discovery is going to lower the initial buy in cost being paid at E/A for the buyin winner.
• Wonder if IOC mandated the bidders have to pay the same price they are paying for the known gas at E/A for any future discoveries at the other prospects in PRL 15.  If so, this would make me very happy.

We already knew that

• IOC is the operator in the JV relationship between IOC and PRE so this means they are going to be taking the lead on:
  
  • Final drilling location decisions
  • How many rigs available to drill – currently there is no decision on whether a 3^rd rig will be brought in.
  • Any announcements on drilling success, future planning, etc is the responsibility of IOC and PRE will likely only be providing color to the IOC pressers after the fact.
  • etc

• So speculating a little, if IOC has 2 rigs and there are indications that Elk 3 is going to be spudded in the next few weeks, then, presumably, that means the other rig is going to be used to drill the Tri structure.
  
  • If they wanted to spud the Tri location by June, this would mean that the next location must be selected as the drilling area would need to be prepared.
  • I think this means the heli-portable (lucky) rig will be going back to Tri.

• The 7 new wells that PRE references in 2014 likely will be drilled by our 2 rigs – so that means we would have to get some roads built in PPL237 as our new/old rig is not heli-portable.

• Using the operator scenario from PPL 237 and using the template for PRL 15, this means that the winning bidder is going to be the lead on this license.   So that would suggest that they need to bring in their own rigs, conduct future seismic etc.  Which makes the decision to spud the Elk 3 well curious?

The Questions?

• Will it be announced with fully binding completed legal documentation or will we see some form of binding letter of intent?
• Will FID be announced with the announcement of the selldown winner?
• Will the new PA be announced with the selldown winner?

Bored, bored, bored, bored.

Keep it on Ice!

Hemi

[TxPm]

Hemi I was looking over the Volkswagen case over the weekend & just thinking about the pps appreciation possibilities for IOC post SD got me excited. Once this SD occurs the squeeze will be tremendous but that's only the beginning. With all of the new analyst coverage and drilling we will see over the new couple of years the sky is truly the limit

[Getitrt2]

Hemi, I am confident all the planned drilling is not dependent on IOC's two rigs. It's planned for Rig 3 to be drilling Elk 3 very soon, and I anticipate Rig 2 going to Antelope 4. I expect PRE to be bringing in probably more than one rig for PPL 237, including for Triceratops and Raptor/Duckbill. I also would not be surprised to see one or more additional rigs going to PPLs 236 and 238, either from IOC and/or farm-in partners. Cost-wise it really does not matter who the rigs come from; the costs will be allocated appropriately in any case per the JVOAs.

[jft310]

WA in NYC IPAA its reported stated IOC would have 8 rigs drilled all fully funded post deal. I can't verify that comment WA is not available. Cell phone on International mode. We wait

[Movieguy]

WA in NYC IPAA its reported stated IOC would have 8 rigs drilled all fully funded post deal. I can't verify that comment WA is not available. Cell phone on International mode. We wait

I tried to speak with WA today and was told he was "traveling."

[ArtM72]

I for one would be sorely disappointed in IOC if they didn't demand as part of the deal PRE bring in some of their own hardware. I simply can't see where IOC's two rigs can drill four wells each in PPL 237 next year, much less do that and anything at all in 236 and 238. Doesn't make sense to me.