A7 Well Testing Plan Doesn't have IOC Shareholders in Mind

[johnwgrant]

Anyone want to explain one more time why they are not drilling A7 this very moment.... Why have they delayed the drilling?

Why are they rushing the sale through before these results are known ??!?!

[Stavros]

TOTAL wants to delay as long as possible to put all payments into 2017 when they have some CA$H.

JFT has repeatedly (and correctly) reminded us that XOM sanctions LNG projects based on P1 certifications (ie 90% probability) rather than P2 (50% probability).

It's my opinion that if XOM wants to sanction 2 trains (plus gas for a 10% expansion of the existing 2 PNG LNG trains), they want to see the P2 certification of E/A at close to (or even over) 10 Tcfe.

[Li'loilady]

TOTAL wants to delay as long as possible to put all payments into 2017 when they have some CA$H. JFT has repeatedly (and correctly) reminded us that XOM sanctions LNG projects based on P1 certifications (ie 90% probability) rather than P2 (50% probability). It's my opinion that if XOM wants to sanction 2 trains (plus gas for a 10% expansion of the existing 2 PNG LNG trains), they want to see the P2 certification of E/A at close to (or even over) 10 Tcfe.

Interesting.  What about the theory that Exxon wouldn't want to pay us  $1.4 billion for 10T's now and therefore not gain that at final cert.?  That theory includes the assumption that their internal engineers will know what's in the ground.

[2126]

TOTAL wants to delay as long as possible to put all payments into 2017 when they have some CA$H. JFT has repeatedly (and correctly) reminded us that XOM sanctions LNG projects based on P1 certifications (ie 90% probability) rather than P2 (50% probability). It's my opinion that if XOM wants to sanction 2 trains (plus gas for a 10% expansion of the existing 2 PNG LNG trains), they want to see the P2 certification of E/A at close to (or even over) 10 Tcfe.

Interesting.  What about the theory that Exxon wouldn't want to pay us  $1.4 billion for 10T's now and therefore not gain that at final cert.?  That theory includes the assumption that their internal engineers will know what's in the ground.

I believe that Exxon wants a good certification number to use for its financing of the expansion/construction of 2 trains. It also wants a high enough number to use in the marketing of the gas in the current low-price market to long-term buyers. It will need those buyers lined up when it goes to the IBs for its financing loan.

[sageo]

In his latest presentation on Concerned Interoil Shareholders.com, [pages 17 and 18] Phil M makes a good case that the present A7 location is not situated correctly. He also makes a very good argument that placing all the risk of the CRP on A7 results and then, subsequently, on IOC shareholders is fundamentally unfair. I wholeheartedly agree.

2126 - Hope your health continues to improve !  " I agree also" . I have felt all along that the Ant 7 location was chosen for nefarious reasons ...i.e. ,not in the best interests of the IOC shareholders . So sad for us that we got stuck with a creep like hession .

2126 - " Very interesting ' ! I just printed a copy of page 18 of the latest pdf that one of our great posters put up, showing the new location for Ant 7 . Maybe this isn't true,but if it is, I believe we stand an excellent chance of a successful well ! [ ...notice A and A prime possible angles for the western fault ] . As Pet well-noted some time back, 2 or 3 wells would very well give us a more exact size of the reservoir to the west,northwest and southwest .  Best to you and yours .