Reasons to buy more Interoil now

[jft310]

Assumes one has more money,smile

Hession- experienced , convinced the banks to offer  $250 mill and promised us a deal by year end.

PNG govt needs jobs and revenue

Exxon see the profitability of the third train and wants that IRR project ASAP

All PNGLNG partners can participate in the benefits of the higher IRR

The landowners want a deal as does Kavo or the natives are restless

This deal is deal one of several deals

IOC is drilling 6 new wells in the next 12 months on an oil search but would be delighted with more NG.

And most important I have plans for part of my gains

Best time ever to buy IOC because the risk is lower with Hession at the helm

[sydbod]

Hi jft310,

Are you sure IOC is targeting oil?

My understanding was that IOC territory was primarily a gas area.

EDIT: Rats that picture is faulty ...  have run out of attachment space. Provided link.

http://www.kinapetroleum.com/pdf/Final_K...tation.pdf

Slide: 12

[jft310]

sydbod  I refer you to the Csiro Engineering report from 2003-2004. They the Australian Engineering firm stated all of Interoils NG came from oil.

The IPI have stated from their slides that Wahoo is an oil /ng prospect.

What better path to higher cash flows than commercial oil. Will it be where they think it is?

Have to wait for the drill bit. I can state at Triceratops they had to put a spigot on the wellhead. May be more than one resonan to do that. Not stating Triceratops has commercial oil.

its down right exciting

[sageo]

Sydbod- Thanks for posting the pdf from Kina. I'm not sure that ioc is "targeting oil" so much as searching for oil.,but as jft says,it would surely lead to earlier cash flow.

[kommonsents]

While I believe they are drilling for NG/wet NG, it seems logical that they would at least drill to the depth of potential oil when drilling for wet NG. The additional costs should be minimal and it would answer the question of whether or not oil is present there.

[sageo]

Sydbod- Thanks for posting the pdf from Kina. I'm not sure that ioc is "targeting oil" so much as searching for oil.,but as jft says,it would surely lead to earlier cash flow.

  Syd - Excuse me. He said 'higher' cash flows.Also,I believe OSH had originally shown 5 planed seismic lines at ppl 237 and ppl 338 back in June. Now,on slide 16,they show a sixth seismic(east to west) line at the base of ppl 338. Maybe they added that one as an interesting afterthought. Hope the results of those seismics are published (the dreaded word) 'soon'. GLTY.

[sydbod]

Hi kommonsents,

It is not a matter of drilling deeper to see if oil is there, they have to drill to the water level to find how high the gas pay zone happens to be. Once they hit water, there is no oil below the water level. Although the gas may originate from oil producing areas, the gas can migrate very long distances from where the oil happens to be. I will admit, there are a few oil weeps near/within the IOC area, so there may well be oil found but in all probability it will be in non-commercial quantities.( it would be nice if I happen to be wrong though)

Hi sageo.

I was only querying "IOC is drilling 6 new wells in the next 12 months on an oil search but would be delighted with more NG".

I took that to mean that the primary objective of the search was for oil.

I also was supprised about that extra seismic line, but I guess we will have to wait till next year before we get any information about what is happening there.

[trans]

Hi kommonsents,

It is not a matter of drilling deeper to see if oil is there, they have to drill to the water level to find how high the gas pay zone happens to be. Once they hit water, there is no oil below the water level. Although the gas may originate from oil producing areas, the gas can migrate very long distances from where the oil happens to be. I will admit, there are a few oil weeps near/within the IOC area, so there may well be oil found but in all probability it will be in non-commercial quantities.( it would be nice if I happen to be wrong though)

Hi sageo.

I was only querying "IOC is drilling 6 new wells in the next 12 months on an oil search but would be delighted with more NG".

I took that to mean that the primary objective of the search was for oil.

I also was supprised about that extra seismic line, but I guess we will have to wait till next year before we get any information about what is happening there.

The screwing around with oil cost us an extra year or year and one half  on Elk/Antelope.  That was PM's big drive, To find that oil.  I say do the nat gas and if we stumble onto oil, so be it.