Agreed Corporate,
When every announcement contains a slide on your ability to get the most out of a deal, a certain amount of hardball would have to be played.
Here is another take on things. The original commitment was for 1 well in 2011, the 3D in 2012, 2 wells in 2013 and a development well in 2014. The 1 well in 2011 has already been pushed out once so ability to extend is highly unlikely. The 3D cube on the Horst isn't fully processed so the ability to lure a partner before the end of year deadline is very difficult. The cheapest option would be Kuala Langsa - shallow and guaranteed high flow rate with high CO2 not suited for LNG BUT if you can find and flow gas out of Gurame, you have a different proposition.
Assuming you have gas and a sustained flow rate, you have 3D seismic, 5 earlier wells providing reservoir characteristics and you have a short term development market (Arun LNG) with 40% take after tax.
Assuming a resonable flow rate, on this basis, you have 2P reserves under the SPE-PRMS system. Once you have reserves you can access the debt market rather than a CR. If I was trying to sell an LNG plant in a gas short market, I'd be tripping over myself to sign an MOU on a near shore gas reserve.
Just another take on things - no ramp intended. Would have preferred a partner and free carry but COS and local market in our favour.
- Forums
- ASX - By Stock
- MEO
- fact or fiction
fact or fiction, page-40
-
- There are more pages in this discussion • 46 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MEO (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO & MD
Anthony Noble
CEO & MD
Previous Video
Next Video
SPONSORED BY The Market Online