Pacific Rubiales Status?

[petrengr1]

We have not heard much about Pacific Rubiales lately. They are our partner in PPL 475 and PRL 39. I think they had hopes of  selling their interest to someone for a profit while all of these negotiations are going on. Here is a quote from a transcript of their January conference call:

“Matt Portillo — TPH
 Good morning, guys. Just one quick question from me; I was wondering if we could get an
update on your drilling program internationally in regards to Brazil and Papua New Guinea? And
then specifically to Papua New Guinea, you had talked previously about potentially monetizing that
asset at some point. I wanted to see if we could get an update on asset monetization within your
kind of international portfolio outside of Colombia. Thank you.
Ronald Pantin
 In the case of Papua New Guinea, the idea is to monetize those assets and we are in
conversations, and will see what happens. As you know, in the case of InterOil, they have sold to
Total and also they have some of their assets in neighboring blocks, and we are talking to also to
see if we can monetize those assets.”

Now we have spudded Raptor-1 which is scheduled to drill to 4,500 meters (14,765 feet). Could cost about $50 Million. PRE is supposed to pay for 35 % of the cost to drill this well, I believe carrying 25% of Interoil’s cost. If PRE stays with us for the long term they get to recover 70% of the carried cost from the future resource payments to be made to IOC. They may decide to stay and see if we get a discovery at Raptor-1. Of course they are already entitled to 10% net of Triceratops. Will they sell out or stay?

[Stavros]

" .... and we are talking to also to see if we can monetize those assets.”

Does Senior Pantrin mean PRE is also talking to TOTAL?
I would surmise YES since TOTAL has first rights to IOC's other PNG resources.

I believe that eventually they will sell out; well before a project comes along.
Maybe not "imminently" but "NOOS"

[jdeo1969]

Interesting Pet and Stavros. This was spun by the shorts that PRE was bailing on IOC. I have always contended that they would sell their stake at a profit. If I recall correctly, PRE's spokesperson was glowingly positive about the prospects at Triceratops.