More Wayne Andrew comments at IPAA
Part 2 Q- buyout of IPI Investors? A- 5% could still be acquired, we would like to buy them out. Q- Agreement with Papua New Guinea limits production to 10.6 mtpa what happens if new production exceeds this? A-We believe they will increase it for us. Last topic covered and to me the most interesting was about a report Wayne did for Raymond James on IOC dated Sept. 30 2004. "IOC Undiscovered Resource Estimates" Anyone ever read the full report? Let me know I found only a part of it. "10 of 30 Potential Prospects- Targeting the Pale, Subu Sandstone and Limestone" The report stated 10 of 30 identified sites show " unproved resources with a potential of 4.5 billion barrels" or 27.6 TCF. At the time the report was referring to just oil. One of the sites was the Elk with a potential of .8 trillion cubic feet of gas which we now know is 9.1 Tcf. Another Wayne article stating the same thing appeared in the Bloomberg Business Week Dec. 27 2004.Discussion followed about the fact the earliest wells never hit the targeted Sandstone or Limestone. Wayne explained the rig was not big enough to reach the depths needed. " The newest rig can handle any prospect we have." Wayne went on to describe that a 1000' core sample was obtained all of it Subu Sandstone, 5x greater than the Sandstone the Hides field is located in. End of Meeting. Opinion-- Just as LNGE is joined with IOC, Oilsearch should also be interested in the study of their mutual borders. Wayne stood by his estimate based on Sandstone and Limestone. Today we have carbonate reefs with dolomite. Future- 40TCF is a very low estimate of the potential, IOC is still in its infancy and will grow quickly. Time to J.V. there is too much opportunity, the resource is too large, the minnow alone cannot swim fast enough before the whale swallows it.