PPL338 Joint Venture

[tarulestheday]

Absolutely SUPERB CC, one of their best ever IMO.  Congrats to the team.

But just who is actually involved in the PPL338 Joint Venture?

[TxPm]

Tarules my best guess is everyone involved in 338 plus IOC. That would leave us with IOC, Total, Oil Search and Kina Petroleum all of which were mentioned by name on the CC today except Total. I believe now more than ever we see a partial SD of Triceratops within the coming months in addition to the E/A SD

[davidhmtk]

Absolutely SUPERB CC, one of their best ever IMO.  Congrats to the team.

But just who is actually involved in the PPL338 Joint Venture?

http://www.kinapetroleum.com/ppl338.html

[Movieguy]

Tarules my best guess is everyone involved in 338 plus IOC. That would leave us with IOC, Total, Oil Search and Kina Petroleum all of which were mentioned by name on the CC today except Total. I believe now more than ever we see a partial SD of Triceratops within the coming months in addition to the E/A SD

How do you selldown a resource that is so minimally defined at this point?  Is it simply $ XX/Mcf for whatever is eventually found, or is there another method?

[TxPm]

Here is the latest info on who is involved in 338.

http://www.2b1stconsulting.com/total-and...ew-guinea/

As far as how to complete a SD ill leave that up to the lawyers on the board but I would assume we could complete a transaction structured similar to the deal with PRE where there is an upfront cash payment, milestone payments, and a final resource payment at a set $$ XX/Mcf. This is just my opinion

[sageo]

Absolutely SUPERB CC, one of their best ever IMO.  Congrats to the team.

But just who is actually involved in the PPL338 Joint Venture?

http://www.kinapetroleum.com/ppl338.html

David- Thanks for the info on Kina . So now, if I understand correctly,Kina now holds 30%, Oil search 35% and Total 35% . I belieive they all pass the"smell" test with the PNG govt. This is looking better all the time. Thanks again. ( all concerning ppl 338 ) btw).

[Movieguy]

So then that is a farm-in agreement as opposed to a selldown type of agreement as for Elk/Antelope. It has been emphasized to me that those are two different type of agreements. Correct?

[TxPm]

Sorry your correct I probably didn't use the correct legal terms. In layman terms, "I believe we will have a new partner on Triceratops in the near future and that IOC will receive some form of monetary compensation in this partnership." Whether that we be a SD or farm in as how it's structure I'm not sure. Please understand I have no special insight this is just what u believe based on what I have read and heard over the last 48hrs

[petrengr1]

Here is a little speculation for you. PPL 338 is 35% Oil Search, 35% Total Exploration and Production and 30% Kina Petroleum with Oil Search as Operator. Kina had the license, farmed out 70% to Oil Search and then Oil Search Farmed out half or their 70% to Total.

Oil Search is the operator of PPL 338. IOC and Oil Search have an agreement to run a seismic program across the boundary between IOC's PPL 237 and the Oil Search JV PPL 338. If the seismic confirms that the Triceratops structure does extend onto the Oil Search JV PPL 338 they will need to drill a well to prove that they have gas on the PPL 338 License. Dave Holland said they plan to drill at least one well. I expect Oil Search to drill a well on their PPL 338 and I expect at least one of the six PRE well to be drilled at Triceratops will be in the Northwestern Area of IOC's PPL 237 license. See http://www.interoil.com/iocfiles/documen...0Final.pdf Page 18.

David said if there is gas on both Licenses the State will require them to make a Unitization Agreement between the owner of the two licenses.

Oil Search is the Operator of PPL 338 but their Partner Total is the second largest LNG Operator in the World. (I believe that statement was recently made by Total in a news interview)

So, after (or maybe before) making the Unitization Agreement for the Triceratops Field it may be that IOC will have a sell down of their portion of Triceratops Field to a Major Operator. The Government wants a Major to be the Operator of the LNG operation. Total may be a perfect fit to become the Operator of the Triceratops Unit or perhaps all of PPL 237 but they will have to go through another competitive bid process to become the winner.

[Spartina]

I like you're thinking pet.