GCA comments from Yahoo

[jft310]

pickboone • 20 minutes ago

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GCA resource estimates

In IOC's 4/15 IPAA presentation, the company wrote "Resources confirmed by two internationally recognized independent reservoir engineers". After further investigation, I strongly believe that none other than the great Gaffne, Cline & Associates must be one of the two reservoir engineers IOC is referring to (rather than Knowledge Reservoir, which was founded 14 years ago and has a relatively small and specialized operation, and which no longer seems to be retained by Pacific LNG). For those banking on GCA's pre-Antelope 3 resource estimate to depress the denominator of transaction price mer mcf, I would check your premises. I think the importance of the IPAA disclosure has been overlooked by the market. Between this and the new disclosures on spudding Elk 3 and Antelope 4, it's clear that IOC and its partner have every intention of developing at least 2 trains in the Gulf project

[Tree]

Pick and the geniuses he is arguing with are wasting their time. It's all rubbish and is settled business. Why do we feel the need to reinvent the wheel every day?

The dirty little secret is GCA # of 6.6 that short's trumpet is still enough for an 8Mtpa start-up.
And with more wells, that GCA # will come up so.
The original marketed scheme by IB's was minimal 3.8Mtpa with a dedicated 4Ts gas. Anything above 4Ts is just a larger sell-down and if Gov't takes 50% that will be an at arm's length transaction matching the best deal IOC cuts.

[Palm]

Agree, plus that statement in the presentation is only saying there are 2 confirmations of resource estimates, not that they both certify the same amounts. IOC knows they cannot claim and name 2 independents as they are only allowed one certified estimate per regulator rules.