New SA article by STP .

[jft310]

The Portable InterOil by Shareholders Unite

[Palm]

Nice article STP. Pulls everything together very well.

[jft310]

I have one add that is quite meaningful . The LNG lenders those banks require they be paid back . In order to be sure they get paid back they require a floor LNG price . The floor price is not set for all contracts at the same price but negotiated in each loan . If I remember right the Exxon loan is $12 per mmbtu as base price . This is the only way the banks know they can and will be paid back .

This is why some Australian projects are being cancelled . The banks will not loan them the money based on their cost structure . It's a very good thing IOC has projected a low cost build and Botten thinks it can be done even cheaper .

[admin]

I have one add that is quite meaningful . The LNG lenders those banks require they be paid back . In order to be sure they get paid back they require a floor LNG price . The floor price is not set for all contracts at the same price but negotiated in each loan . If I remember right the Exxon loan is $12 per mmbtu as base price . This is the only way the banks know they can and will be paid back .

This is why some Australian projects are being cancelled . The banks will not loan them the money based on their cost structure . It's a very good thing IOC has projected a low cost build and Botten thinks it can be done even cheaper .

Yea, thanks for that. I can imagine it's getting a bit difficult to get a $12/mcf as a baseload in offtake contracts these days, that $72 oil. Still, there are three new Aussie LNG projects coming online next year but these all have offtakes already.

The big question for the market is what happens in Canada and the US, IMHO. Low oil might very well scupper quite a few plans for LNG export there.

[admin]

Nice article STP. Pulls everything together very well.

Well, it stands on the work of quite a few here, like yourself. I basically thought it was time for some sort of inventory, given the turbulence in the industry and the important year ahead of IOC with the recertification.

And that structure of 11 where they did the most seismic work, five out of five discoveries. There is only one word for that, awseome.

[Putncalls]

What is the structure of 11?
thanks.
Five out of five is pretty good. Whether it's great seismic or they're just shooting at the broad side of a barn bodes well for the re-certification.

[admin]

11 prospects and leads in the area around E/A where they did most seismics. The first five of these 11 have turned out to be discoveries.

[ArtM72]

Great job, thank you on behalf of those who were unfamiliar with the IOC story.

The only comment I would have is that Raptor seems to have been drilled without the benefit of seismics. My understanding is the aerial gravimetric and geomagnetic studies are responsible for the finds, not the seismics. That having been said it would be reasonable to wonder if they could sink a well almost anywhere on the 70% of their licensed lands where they have identified reservoir and find gas. Such would be the the fabric of a vest of pearls. The question becomes the aerial extent and elevation of the water table in the limestone.

[admin]

My pleasure, Art. I knew they were pressured for time with the drilling but I didn't realize they didn't do any seismics on Raptor. That's actually pretty cool.

[jft310]

Art - Great comment on drilling anywhere . Might be a bit off but it does reflect that for millions of years this Eastern Papuan Basin was under water . 'Twas the Coral Sea . The question is nailed by Laurie Brown who states they are on a reef hunt where finds are 20 times more beneficial than non reef locations . PET years ago identified 13 reef like locations that took Hession to drill ahead .