PNG drilling lifts Antelope gas field hopes

[Tree]

PNG drilling lifts Antelope gas field hopes

00:41 GMT

Drilling at the disputed Antelope natural gas field in Papua New Guinea has increased hopes that the resource could be large enough to underpin an expansion of LNG capacity in the country.

Venture operator InterOil revealed overnight Australian time that the Antelope-5 well had struck the targeted gas reservoir at the field some 230 metres higher up than anticipated.

The news comes after last week's resolution of a dispute over the ownership of the field between InterOil and ASX-listed Oil Search, which was decided in favour of the US company. As a result, French oil major Total SA has been confirmed as a third partner in the Elk-Antelope field, where gas volumes have been put at anywhere between 3 trillion cubic feet to more than 12 tcf, making it the biggest discovery in Asia for several years. Oil Search retains its stake in the field.

Whether the size of the field is closer to the lower or higher ends of that wide range will help determine whether Elk-Antelope is developed as a separate LNG project or potentially combined into an expansion of ExxonMobil's existing $US19 billion PNG LNG venture. Oil Search has a stake in both PNG LNG and Elk-Antelope and has been pushing for a merged development, but InterOil and Total have voiced a preference for a stand-alone LNG project.

Citigroup analyst Dale Koenders said that while risks still remain around the quality of the Antelope reservoir, striking the reservoir at a higher depth than anticipated "infers a larger resource all else equal".

Mr Koenders said the results from the drilling had increased the likelihood that the size of Elk-Antelope is closer to Oil Search's base-case of 5.3 tcf of gas rather than its low-case estmate of 3 tcf. He said success at the next well, Antelope-6 was required for the size of the field to reach into the 7-9 tcf range.

Citigroup said it believed the market was assuming a resource of 7.1 tcf for Elk-Antelope, which is the base case being assumed by InterOil, and that the latest drilling result was supportive of that estimate.

Read more: http://www.smh.com.au/business/mining-and-resources/png-drilling-lifts-antelope-gas-field-hopes-20150217-13gsif.html#ixzz3RxvrZBMU

[ArtM72]

PNG drilling lifts Antelope gas field hopes

00:41 GMT

Citigroup analyst Dale Koenders said that while risks still remain around the quality of the Antelope reservoir, striking the reservoir at a higher depth than anticipated "infers a larger resource all else equal".

Mr Koenders said the results from the drilling had increased the likelihood that the size of Elk-Antelope is closer to Oil Search's base-case of 5.3 tcf of gas rather than its low-case estmate of 3 tcf. He said success at the next well, Antelope-6 was required for the size of the field to reach into the 7-9 tcf range.

Citigroup said it believed the market was assuming a resource of 7.1 tcf for Elk-Antelope, which is the base case being assumed by InterOil, and that the latest drilling result was supportive of that estimate.

Read more: http://www.smh.com.au/business/mining-and-resources/png-drilling-lifts-antelope-gas-field-hopes-20150217-13gsif.html#ixzz3RxvrZBMU

Ugh!  How's that as a classic example of 'damning with faint praise.'  Ya think there's any suggestion here Koenders and Citi might be caught a little short?  That kind of thinking certainly validates IOC's current market price.  Que sera, sera.

[jft310]

Shoddy work by Citi . The P-2 number is 7.1 T's from GCA . The P-1 estimate is 5.3 T's . Based on the new seismics and the new drilling results the GCA number must go up . Not sure read Laurie Brown's Dec 11th presentation. The field to the West is now deeper and wider than GCA expected.
Do we need to prove the field is wider to the East with Ant 6 ??The southern boundary is also extended further with GCA with Ant 4 .
Just proving out the GLJ work with drilling results so far so good .

[Stavros]

Dale Koenders? Ha!

https://www.linkedin.com/profile/view?id=111941018

He's a relative newcomer to the energy world
His statements quoted in the article are ludicrous drivel. DRIVEL!
Please show is your geology degree Dalie-poo poo.
Citi made HUGE SHORT bets against the Oil Markets and they're now in deep Brent and Antelope Doo Doo

How in the world can a serious analyst still say with a straight face "We predict that Oil is going down to $20 before the end of April?"

[admin]

And this ridiculous stuff gets endlessly reproduced in the internet echo chamber:

InterOil drilling results raises hopes for Papua New Guinea gas field • 8:18 AM

Carl Surran, SA News Editor

• InterOil (NYSE:IOC) says the Antelope-5 well in Papua New Guinea struck the targeted gas reservoir at the Antelope field 230 meters higher up than anticipated, raising hopes that the resource could be large enough to underpin an expansion of liquefied natural gas capacity in the country.
• A Citigroup analyst says the results increase the likelihood that the size of Elk-Antelope field is closer to Oil Search's (OTCPK:OISHF) base case of 5.3T cf of gas rather than its low case estimate of 3T cf.
• The news comes after last week's resolution of a dispute over the ownership of the field between IOC and Oil Search, which confirms Total's (NYSE:TOT) status as a third partner in the Elk-Antelope field.

[Palm]

As "normal" spreads between Brent and WTI return it may be signaling that the big drops in oil prices are over and we'll see more normal movements going forward. I'd guess Citi doesn't like that thought, but their bet may not have been a good one. And if this normalizing is happening, it will be much better for IOC and OSH pps.

[jft310]

Brent over $60 again is a good thing we as shareholders have no tie to WTI .

[Brew Swillis]

PNG drilling lifts Antelope gas field hopes

00:41 GMT

Citigroup analyst Dale Koenders said that while risks still remain around the quality of the Antelope reservoir, striking the reservoir at a higher depth than anticipated "infers a larger resource all else equal".

Mr Koenders said the results from the drilling had increased the likelihood that the size of Elk-Antelope is closer to Oil Search's base-case of 5.3 tcf of gas rather than its low-case estmate of 3 tcf. He said success at the next well, Antelope-6 was required for the size of the field to reach into the 7-9 tcf range.

Citigroup said it believed the market was assuming a resource of 7.1 tcf for Elk-Antelope, which is the base case being assumed by InterOil, and that the latest drilling result was supportive of that estimate.

Read more: http://www.smh.com.au/business/mining-and-resources/png-drilling-lifts-antelope-gas-field-hopes-20150217-13gsif.html#ixzz3RxvrZBMU

Ugh!  How's that as a classic example of 'damning with faint praise.'  Ya think there's any suggestion here Koenders and Citi might be caught a little short?  That kind of thinking certainly validates IOC's current market price.  Que sera, sera.

Why am I not surprised the Citi a-hole is suggesting that IOC to drill another A-hole?

[Putncalls]

JFT,
Of course their is a tie to WTI. It's US oil that is behind the fundamental change in world oil prices.

[Stavros]

For IOC their is no tye two WTI Putz. LNG price is contracted long term in Asia based on its calorific value relative to what's known as the Japan Crude Cocktail that dose knot halve a WTI component.

JFT is write on this won.