Thought for the day

[sageo]

MH sir......pleeze,pleeze start drilling again at Wahoo ! I realize (from past comments) that "in the first quarter of 2015" probably means March 30 th or March 31 st, but couldn't you shock and surprise us this time by starting now? I strongly feel ( about 92.35 % sure) that new and careful procedures will put a very large smile on many, many faces. Since a big portion of the Antelope costs are now born by Total,we should have the funds available to proceed with this endeavor . Yours truly,sageo.[ As many on our board say " drill baby,drill" .

[vidon]

MH sir......pleeze,pleeze start drilling again at Wahoo ! I realize (from past comments) that "in the first quarter of 2015" probably means March 30 th or March 31 st, but couldn't you shock and surprise us this time by starting now? I strongly feel ( about 92.35 % sure) that new and careful procedures will put a very large smile on many, many faces. Since a big portion of the Antelope costs are now born by Total,we should have the funds available to proceed with this endeavor . Yours truly,sageo.[ As many on our board say " drill baby,drill" .

i thought that IOC should go buy a bigger BOP and start drilling. My future son in law works for a company that makes BOP's.

He surprised me when he said these are not off the shelf items. Each one is engineered to specific design requirements. He told me they generally take 9-18 months to do the engineering and actually make the BOP, depending on complexity of requirements. His company primarily does deep water BOP work, he did not think there is much different timelines for surface designs.  I am not sure if this is why the drilling has not resumed, but probably is a factor.

i recall Dave Holland stating Wahoo was a really prime prospect and he wanted to drill it a few years ago.  Hints of OIL there !

[sageo]

Vidon - Thanks for your comments. I do believe your(future) son-in-law is giving us true information.....especially if our surface casing is 13& 5/8 inch casing. New ones are fairly rare(and costly),and good rebuilt ones are not cheap,but as DH strongly believed, the Wahoo prospect should be a "bell ringer" (my interpretation of his words from years ago) of a prospect. There may be other "hold-ups" but I think the Wahoo should be put on the"front burner" asap. just mho. Thanks again for your input ! [ps-it's proximity to Port Moresby is just another plus.]

[sageo]

Vidon- While we are waiting (as often is the case) I did have a scary thought concerning Wahoo.....the possibility that we might find 5or 10 meters of reef sitting on the top of the lms. With great porosity percentages, we might have to have a "super-dooper" BOP !! Ha,ha.[ There I go.....dreaming again......but some folks say "dreams sometimes come true". Good fortune to you and yours.

[Palm]

There's really no reason for them to hurry on Wahoo. The only reason they drilled it at all was to fulfill license requirements. They need to focus on PRL 15 and getting the certification done and secure whatever funds they get. Wahoo is futurama.

[calvin grad]

I understand that the licenses would expire. However a year ago  Interoil must have thought we would have had twice as many wells completed by this time. If these wells were successful did they think that it would affect FID? It does not seem right that plans will be finalized in a year for the 10 TS at EA without regard to what we believe is at Wahoo ,Raptor  and Bobcat. What are the economies of scale for 4 trains versus 2 trains?  Is it .25 or 2.50?

[Palm]

The wells they need to be concerned with are those within PRL 15. That is the project they have in front of them with Total and which will help justify the required 2-train startup of a standard LNG project. That's what they can get FID on and financed and sold. Wahoo has NOTHING to do with that project as it's outside the tie-back range as shown by management in the presentations.

Any project like this is justified by ROI which is calculated by NPV. The sooner they have sales and cash coming in, the better. Wahoo costs now have zero return for quite some time with what we know now. Way higher risk than staying focused on PRL-15 and reaching FID there. Same reason XOM got their 2-train project up and running BEFORE they spent much time or money on drilling for expansion.

It's like the old saying. "If you chase two rabbits, they both will get away."

[Relker]

Management is focused on PRL15 and the surrounding tie-in prospects. However, it is not clear yet where they will build the LNG factory. I could imagine if Wahoo is very promissing, assume >10 TCF, this would influence the selection of the location.

[Palm]

Maybe, but at this point with the information they have they are in no hurry to get back there. The plan is for that formation to be part of a different project with same (Total has first rights I believe) or different partners. With their saying that they are focused on PRL15 and proving up a 2-train startup, I would be concerned if they suddenly shifted efforts back to Wahoo. That would indicate (and the market would likely interpret) PRL15 does not have enough gas for a 2-train startup. The more they stay focused on PRL15 at present, the better. Total is carrying costs whereas Wahoo is all on IOC and a small % IPI group.

[jft310]

New Credit Suisse slides jan 27th again show concept selection by the end of quarter 2 2015 . Wahoo new drilling can not be done by that date .