what is icn's valuation?, page-15

Thx Chillam,

Thx Gassed,
looked further into the GSA, saw the 3 yr Review (still surprised its tied to TAPIS index only but hey thats what it is). Conditions precedent should not be a big deal for Shantou, given the backing of Guangong province power generator China Guodian. Guangdong province is China's most populus, largest in terms of GDP at over US$800 Billion and about 12% of China's economic output. And the province is hungry hungry hungry for electricity.

Like you, I really think the GSA is an asset (that may not be priced in), especially since its not necessarily tied to ATP855P and sourcing gas from it as well as not tied to a port. If ICN is short on gas it might be able to pick up some from east coast states.

Do you guys follow FLNG/FSRU technology.

http://www.golar.com/index.php?name=Our_Business%2FFloating_Storage_.html


Also the pricing is FOB - so I guess our challenge is also where can we pipe it too and who has capacity. Our transport cost ends at the ship and Shantou's begin once its passed the ships rail so to speak.


Clearly though the biggest challenge will be proving up the 2TCF of 2P Reserves. IMO that's going to take at least 3 if not 4 wells which would need to be completed this year to meet the condition precedent of Jun 2014.

I can't find a BPT preso that published a drill plan for ATP855P - got a link?

First sale under GSA is June 2016. That's a while away and of course ICN could sell production now - pipeline is close by but pricing obviously much cheaper.


Does appear to be an enticing time for ICN.