E/A JV 2014-15 expenditures $1 billion

[Tree]

'The show must go on'

**********

InterOil to pump a billion bucks into PNG work

Freddy Moui

Dec 7, 2014

InterOil have invested more than US$150 million (K 362.84m) in seismic acquisition alone over the past decade and have more onshore coverage than any other company in Papua New Guinea, CEO Dr Michael Hession has revealed.

Speaking at the Society of Petroleum Engineers (SPE) PNG fundraising breakfast recently at the Royal Papua Yacht Club in Port Moresby, Dr Hession said InterOil had begun a program that will increase their total seismic coverage by 50%, or more than 750km in just one year.

“This work is providing about 1500 jobs.

“In addition, we are planning an aerial survey across all of our acreage using high-resolution technology that will help to pin-point our drilling targets which will be providing about 100 jobs.”

Dr Hession said in total, InterOil is engaging more than 2000 Papua New Guinean staff and contractors in exploration and drilling across the country.

“Our 2014-15 expenditure on joint venture studies, airborne surveys, seismic and drilling will exceed $1 billion.

“With that expenditure comes a lot of jobs, a lot of contracts, a lot of well pads, a lot of helicopters, a lot of meals, and a lot of professional and technical opportunities.”

He said in 2014-15, they are drilling at least eight wells.

“Two of these wells will continue appraisal of Elk-Antelope, the giant gas field that we are developing for Papua New Guinea’s next LNG project.

“Elk-Antelope will be another massive nation-building project on the scale of PNG LNG and we are confident the field will support at least two production trains and possibly more. It will also create more than 10,000 jobs in construction and we expect early works to start in 2016.”

- See more at: http://www.pngloop.com/2014/12/07/intero...G186E.dpuf

[admin]

That is quite a show, and quite telling at times when many cut back on exploration

[admin]

And thinking of it, InterOil is much better positioned than many to do this. They have a very healthy balance sheet, with more cash coming in, they don't suffer from cash-flow problems due to low oil. Expand when others are contracting, leveraging their low cost base and positioning for the inevitable uptick in prices when the general reduction in capex is starting to bite..

[Tree]

'expand when others are contracting'

"...Australia’s Santos has announced plans to slash expenditure by 25% in 2015, but chief executive David Knox has defended the company’s financial position."...

'cash-flow problems due to low oil'

Not feeding the refinery IOC saves how many $10s of millions each quarter?

[jft310]

So this terrible CEO sold their refinery at the right time and is spending with Interoil and others funds a billion dollars to improve seismic info and drill with all 3 new wells finding some type hydrocarbons .
Most important zero dilution of current shareholders .
To monetize I am sure we will bridge into LNG cash flow with a secondary per Credit Suiise
But this expenditure is 100 percent non dilutive .
That's a big deal .
People need to give this guy some credit !!

[ArtM72]

So this terrible CEO sold their refinery at the right time and is spending with Interoil and others funds a billion dollars to improve seismic info and drill with all 3 new wells finding some type hydrocarbons . Most important zero dilution of current shareholders . To monetize I am sure we will bridge into LNG cash flow with a secondary per Credit Suiise But this expenditure is 100 percent non dilutive . That's a big deal . People need to give this guy some credit !!

I'll give him credit when he starts producing information in press releases that have the effect of catching the interest of the investing community.  Sure, yesterday we got a formation depth and a suggestion the limestone goes for at least several kilometers to the west.  What we didn't get was any porosity data and as far as production is concerned we got a pathetic little flare and no pressure, flow or choke information.

As far as saving money by getting rid of the refinery, yes they are not taking inventory losses as oil prices go down.  But those losses are only temporary, and become profits when the market turns back up.

[jft310]

Art -these 3 wells were drilled at this time to retain the leases . There is no monetization path announced as of today .
What will drive tbe stock price ?.
Resolution of tbe arb
Ant 4 results
Ant 5 results
Maybe Ant 6 results if drilled
Maybe Ant Deep results if drilled
The receipt of the Total payment
The start of Feed
The FID in 2016
Those are the boxes that need to be checked to drive the price per up .
Hession has all these in some state of work .
When al that uncertainty is removed per Credit Suisse we trade at $159 a share

[steve3752]

JFT:  Your explanation of what will drive us up does make sense.

However the question for me today is why have we gone down so much in the last three days with no bad news and seemingly good news.

Markets look forward six months to a year.  Are they just off on IOC?.  Why are we drooping like a rock from where we were which was not great to start of with.

Uncertainty over certification and arbitration are not good answers.  Those were on the table before the last three days drop.

[jft310]

Some look 6 months out .
Others see no news on the horizon and take advantage of the lack of news , post on message boards unfounded fears and the hedges push us down .
Some want daily gains others have a longer term view .

[wapitidropiti]

Some look 6 months out . Others see no news on the horizon and take advantage of the lack of news , post on message boards unfounded fears and the hedges push us down . Some want daily gains others have a longer term view .

JFT you don't know anything! Stop acting like you do. Your record here is abysmal. Shut up!