Not an expert here either, but I think the farmout method is...

Not an expert here either, but I think the farmout method is wiser for all the reasons stated previously.

The one article that really made me sit up and take notice was is the Oil & Gas Journal (pasted below) in June this year where it was confirmed that Chevron and Woodside would develop their respective gas fields, Pluto and Wheatstone separately.
There had been talk of them combining resources and market both projects together, which would have decreased Artemis' value to both of them, as together, they have enough gas, but separately, they don't.
They both now need 3rd party gas for economies of scale and Artemis must now be the prime candidate for both.

Next week should reveal all.

Here's the article I mentioned:



Pluto, Wheatstone fields to be developed separately

Oil & Gas Journal, Vol. 107. June 2009

Woodside Petroleum Ltd. and Chevron Australia Pty. Ltd. are likely to develop their respective Pluto and Wheatstone gas field-LNG projects as separate entities and compete for third-party gas, company officials indicated at the recent Australian Petroleum Production & Exploration Association conference in Darwin.

Woodside Chief Executive Officer Don Voelte called for rival LNG projects to share production hubs on the Western Australian coast. Woodside’s $12 billion (Aus.) Pluto LNG project on the Burrup Peninsula near Dampier has nearly completed construction of its first LNG train and is looking for more gas to support construction of a second.

Roy Krzywosinski, Chevron managing director for Australia, said gas for his company’s proposed Wheatstone project would be processed at a $30 billion (Aus.) liquefaction plant to be built at Ashburton North near Onslow, 150 km south of Dampier. He said Wheatstone has enough gas to underpin a multiple-train development.

Voelte warned ad hoc developments along the coast would waste billions of dollars and risk delaying projects, leading ultimately to loss of jobs and increased competition with international rivals in the world LNG market.

Chevron wants to attract third-party gas from the western Carnarvon basin that would not be economic to transport to the Burrup Peninsula. Krzywosinski said the Wheatstone plant would lower the economic threshold for other area discoveries. A final investment decision on Wheatstone is expected in 2011.

Chevron seeks to renew its retention license over Wheatstone field. However, Woodside reportedly has submitted an alternative proposal to bring Wheatstone to Pluto. Voelte said there are no excuses for delay.

Geologically, Pluto and Wheatstone fields are two lobes of the same structure. The Artemis extension to the northeast owned by MEO Australia Ltd., Melbourne, has yet to be drilled. Preliminary work suggests it is part of the same elongated structure. MEO is seeking farm-in partners for a drilling program.