Pickboone from yahoo. SHU knew this info several months ago.
Page 24 indicates:
"2013 Exploration wells (gross) planed:
– Block Triceratops: 2
• 2013 Seismic planned:
– Block PPL237: 157 Km 2D
– Block Triceratops: 86 Km 2D
• PRE Investment: ~$35 million"
What does this mean?
1) The transparency of finally knowing that at least 2 wells are planned on Triceratops this year will significantly add to IOC's valuation after a sell-down of Elk/Antelope is announced in March. For example, at a price of $1.50 per mcf on year-end 2012 resources, IOC may be worth $9 billion (assuming 10 Tcf gross). But adding another 10 Tcf from Triceratops could add an additional $9 billion to IOC's value. Hence the excitement of further near-term resource additions will add legs to the initial gap up.
2) The lack of an articulated development plan on Triceratops (until now!) left the reservoir out of InterOil's valuation, but the potential for 10+ Tcf and an accelerated transition to LNG production with the Gulf Project coming on stream and the O'Neill administration at the helm could add significantly to IOC's market value this year
3) This is tangible proof that PRE is committed to developing Triceratops following T2
4) Having a prestigious and well-run company like PRE continue to commit capital to Triceratops really enhances the credibility of the IOC story