Ann: Quarterly Activities Report , page-19

yep, at some point Beach will try and grab 855, either by way of t/o, or a deal to buyout the ICN interst in 855.
But RJ will fight tooth and nail.

an intesting scenario I have mentioned on a number of occasions, is that one way Beach could lever out ICN, is if ICN cannot come up with the cash necessary to fracc the proposed well, and do seismic etc.

well, DLS has just advised that QGC/BG has exercised their option to acquire 9.9% of DLS equity.

Now QGC farmed into the DLS permit ATP940 and agreed to spend up to $130m exploring for shale gas in that permit.

That permit ATP940 is DIRECTLY under and adjoining ATP855!

If QGC thinks ATP940 is prospective, how prospective must they consider ATP855 to be ????

Most J/V agreements allow for the J/V parties to market their own gas.

So potentially ICN may have access to s***loads of shale gas if 855 develops the way BPT thinks it will.

So if BG is looking for extra sources of gas for their Gladdy projects, it may very well be interested in farming into 855 !!!???

Also, just speculating, but 855 is supposed to have resources of shale gas of like 20tcf +.

I think the Chinese GSA only needs 2TCF ??

so how about a scenario where QGC/BG farms into 855 for say 20%-25% share, leaving ICN with 10% -15% ??

that would give ICN enough gas to supply the current Chinese GSA, and give QGC plenty of gas to add to its supply to Gladdy.

You know, just so that RJ could get the ICN sp moving, (and thats in an upward direction by the way), what if QGC provides the guarantee of gas to the Chinese (and maybe the supply of LNG?) in return for buying into ATP855?

Everybody wins !?

That GSA goes unconditional, the Chinese can offtake LNG from Gladdy, and away goes the ICN sp!

I raised these thoughts because I am surprised that BG has exercised their DLS options so quickly - this makes me suspicious - and 940 is right next door to 855.
Its so close, at night, the landowners in 855 need to ask the landowners in 940 to turn down the volume on their television sets !!! ha!

cheers