Antelope-3 spud looms

[Petrovale]

http://www.pngindustrynews.net/storyview.asp?storyid=9638425&sectionsource=s0

Friday, 28 September 2012

INTEROIL will spud its Antelope-3 well in Papua New Guinea’s Gulf province this weekend.

This will occur as negotiations with the government and other parties continue over the Gulf LNG project, based on InterOil’s Elk and Antelope discoveries.

While the final shape of future development of the Elk-Antelope field is not yet determined, another big boost to project reserves could certainly impact valuations next year.

InterOil is since expecting first LNG exports from the project in late 2015 or early 2016.

Last year, the project was targeting 5 million tonnes per annum, with 3Mtpa from an Energy World Corporation-designed onshore modular LNG plant in Gulf province and the rest from a floating LNG facility.

There was also a proposed ramp-up aiming to hit up to 8Mtpa.

In 2009, the project was based on a 7.6-10.6Mtpa LNG plant near Port Moresby, back when it was known as the Liquid Niugini Gas project.

InterOil launched a formal process almost 12 months ago to bring in a suitable LNG operator for Gulf LNG to meet the conditions of the 2009 project agreement.

[Bincbanker]

sorry petro , great minds think alike , I posted at the same time

[Bincbanker]

Rather strange this Petro , don't you agree ?

IOC pushing forward could only happen :
- Gulf approval NEC
- SD deal done

Because what Bank would lend with so many and important Birds in the Air
So whats in the bush ? What did they forget to tell us ?

[Tree]

Agree with you Binck as site & camp prep, rig, equip and material move and drilling in PNG is costly, this move to drill to meet license oblibations is bullish for NT developments.  Elk-3 spud this fall too with the new rig #3.  If the horizon was bleak, IOC could have sought extensions to development well drilling.  Perhaps the helicopter tour this weekend will make the spud one of it's 'points of interest'.

[Bincbanker]

yes , Treeborowski (holder of the Lenin Cross) and even if IOC could get a loan without :
- Nec approval
- SD deal

Why would they want it , with deals done the cost of these loans and conditions would be much much favorable , banks always love to loan money to those that don't really need it

so just wait a couple of weeks

My conclusion must be (if article is true ) that all is done
Lets have the birds in the bush as well please

[ValueSleuth]

A $100 million refinery loan has been discussed as having been in process for a long time and was NEVER discussed by IOC as contingent on NEC approval of the Gulf project, SDs, SMs, operator selection, or anything of the like that you are suggesting as a precondition to the bankers.

In fact, if the alleged preconditions are met, who needs the refinery loan, anyway? It is a means of filling a cash flow void to continue work -- PRIOR to approvals and the receipt of gobs of cash from a SD.

Let's not get in fantaslyland, here.

VS

[Bincbanker]

no but VS , a drilling would be very dependent on IOC going forward with the Gulf project

But besides that do you really think Banks do not know the position IOC is in ? and the limited time IOC has to get stuff done

All , yes even the refinery hinges on IOC getting deals/permits done perhaps not in the legal sense but just common sense

[Palm]

Good news for many reasons. This will be with the new rig which is supposed to be able to drill deeper. It's been said for a long time that Ant 3 could be the best yet at Ant. Like you are saying they wouldn't do this without absolute certainty of having funds lined up. We may hear about that yet today or early next week.

Let er rip Mr Holland!!

[Palm]

My guess is that the GABP Summit 2 prompted this action. The BOD was supposedly to meet Thursday night and would have discussed many things in addition to the proposals from the IBs. There well could have been discussions on the loan facility ("all in favor say Aye"), the spudding of Ant 3 ("There being no further questions, all in favor say "Aye", opposed will be shot"), and possibly other items.

After the GABP Summit 2 attendees discussed this with the BOD and also gave their approval it was time to move forward. Especially after an updated visual acuity lecture by Tusker. This year his only "aid" was Tusker beer and he really likes what he saw. These seismics are well known and if you think they buzzed down through T2 quickly, wait and see how fast Ant 3 goes. Could be a record bore.