all roads lead to china, page-4

Hi Yogi,

I am not sure when the Chinese have to commit but I have no doubt they will, it is a complete freebee for them. They will repay their share of jv costs incurred to date (last year's well, the 3D seismic, this year's drilling etc) from production.

The Chinese have been regular visitors to Sydney for the jv meetings so seems clear to me that they are in.

Some one once explained to me that this was the first field of its type to be developed offshore China. By that was meant that it was a collection of several smallish fields that the majors have passed over because the effort to get them into production wasn't worth their cost and time.

And it was explained that the Chinese were very pleased that the Australians were prepared to take the project on and look at developing the field. So that augurs well for necessary govt approvals and Chinese cooperation generally.

This project is a first for Australian juniors (indeed I think for any Australian oiler) in China and it surprises me that we haven't heard more about it. But then the Chinese have been very reluctant to see any publicity.

But that will have to change when drilling starts, disclosure requirements alone will require it. But companies like Horizon also need the publicity to put a bit of helium into their shares.

Good to see that you are well prepared for the event, my exposure is with FAR, FAROA and PSA. Never been able to get back in to HZN after Huinga 1B!!!

Cheers, JBC