Too much for IOC

[trans]

I got to thinking today about the recent feedback  and future plans. Here's my thoughts:

1. jft post seems spot on

2. 4 million acres, 35 formations, and 11 year licenses.  It has taken us 2-3 years to prove out EA and that's only one formation.  While things may move faster in the future, it will take several wells to validate each successful formation.  11 years is NOT nearly enough time to prove out our license areas.

3. I believe at least 2 SM's in addition to present efforts if we want to prove out our 4 million acres.  Can u imagine how many wells to be drilled?  We and tot alone cannot scratch the surface.  PNG leadership sees this clearly.   When I first dd'd IOC I felt the same.    8/2 or 4 million acres was way too much concession to give IOC, but we got it.

4. I've been amazed IOC hasn't been bought out long before this.

5. How would I think about structuring future plans?   I would see at least two SM's or National energy cos being involved inthe future, or we give up some of the property.  A brief thought would be XOM very possible, but another one added too, or maybe two.  Who would be the next two?  Maybe a Japanese major company, and to take this thought further, by 2020-21 lots of new LNG capacity on stream and their production pre-marketed.  Who is looking like a premiere LNG marketer?   How about the proposed merger of BG/Shell?  Marketing would take a giant step to front of the line, imo.

6. Don't know what the outcome of IOC's future is yet, but I feel the ground beneath its feet is now rapiidly approaching "very solid" .  With any luck, the next 12 months sure could be quite exciting again.

7.  Someone thinks so, nine days in a row higher, and opt exp day and intra day on balance volume still shows accumulation still persists. That's unusual, very unusual.  The next three quarters sure look good T/A wise     trans

[sageo]

I got to thinking today about the recent feedback  and future plans. Here's my thoughts:

1. jft post seems spot on

2. 4 million acres, 35 formations, and 11 year licenses.  It has taken us 2-3 years to prove out EA and that's only one formation.  While things may move faster in the future, it will take several wells to validate each successful formation.  11 years is NOT nearly enough time to prove out our license areas.

3. I believe at least 2 SM's in addition to present efforts if we want to prove out our 4 million acres.  Can u imagine how many wells to be drilled?  We and tot alone cannot scratch the surface.  PNG leadership sees this clearly.   When I first dd'd IOC I felt the same.    8/2 or 4 million acres was way too much concession to give IOC, but we got it.

4. I've been amazed IOC hasn't been bought out long before this.

5. How would I think about structuring future plans?   I would see at least two SM's or National energy cos being involved inthe future, or we give up some of the property.  A brief thought would be XOM very possible, but another one added too, or maybe two.  Who would be the next two?  Maybe a Japanese major company, and to take this thought further, by 2020-21 lots of new LNG capacity on stream and their production pre-marketed.  Who is looking like a premiere LNG marketer?   How about the proposed merger of BG/Shell?  Marketing would take a giant step to front of the line, imo.

6. Don't know what the outcome of IOC's future is yet, but I feel the ground beneath its feet is now rapiidly approaching "very solid" .  With any luck, the next 12 months sure could be quite exciting again.

7.  Someone thinks so, nine days in a row higher, and opt exp day and intra day on balance volume still shows accumulation still persists. That's unusual, very unusual.  The next three quarters sure look good T/A wise     trans

Trans-Thanks. Always appreciate your quality input . Speaking about one or two more,I sometimes wonder about Repsol (Spain) or Eni (Italy) offering to buy Pacific Rubiales's share in ppl 475 and prl 39 as well as all of the  PRE company . Should fit,maybe. Hagd.

[2126]

Thanks, Trans for good thoughts to ponder.

[jft310]

My info is public from Hessions Morgan call . In that call Hession mentioned Repsol buying Talisman , I believe it was my 2 cows that had a conversation with IOC mgt that mentioned synergies with them . I could not confirm that with IR when I called .
Not to say it is not absolutely true .
If Wahoo hits then that could lead to deal with Exxon if they will pay up . Repsol is already in country sounds like that may be the plan to hook up with them also .
As always must wait to see , Will Exxon pay up??What plans does Repsol have on PNG??