pressures, page-17

ajtwentythree - there is also a comment in the half yearly accounts (commentary not presentation) that they expect a result of the sales process in March this year, so still consistent with the Quarterly. Not too sure how to read the comment about the board's view, maybe lining us up for disappointing bids?

My reading of the farm out to Mitsibushi by Talisman was a strategy by Talisman to reduce exploration exposure in their PPLs – I think the cost and
difficulty of exploring in PNG has been somewhat of a baptism of fire for Talisman. Hence they gave relatively less in PRL21 than in the exploration PPLs, they probably had to give up some of PRL21 to get the deal over the line.

If the JVOA is structured along the standard AIPN model there will likely be pre-emption rights. Given the world has moved on since Talisman farmed down (I.e 2 successful exploration/appraisal wells with resulting significant resource increases) I wouldn't discount existing players bidding…..Mitsubishi if not Talisman. Again, depending on how the JVOA is structured, if another player gets the majority of the WI and is supported by a significant other % of the partners they can become operator even without HZN resigning. This situation only becomes more acute if the government backs in a everyone takes a pro-rata hit.

I like HZN and would like them to remain operator but with the resources located between PRL 21 and PRL 4 operatorship will allow a significant driving role in how the gas part of the resources are developed, given the multiple options this is a very valuable position.

Agree this should get a nice bump when China comes online. Expecting a reserve upgrade there still too. Would be nice to have the upgrade and production come the next quarterly.....time seems to be running out though