Wayne Andrews notes from a 3 hour meeting in DC last Saturday.from yahoo
Exxon received $1.80 to $2.40 per mcf in the ground,IOC expects $2 mcf in a sell down.
Current share price is 58 cents per mcf
EWC gets a bonus if they finish early,fine if they are late per contract
Bwata isa delineation well,not exploration,IOC has 4 more exploration wells to drill with current partners.
IPI interest 18.6% left.4.6 % possibely can be bought back from by IOC.The other 14% is PNG LNG (C Civelli)
Henry Aldorf has a long working relationship with EWC.
EWC has the equipment ordered for Indionesia now IOC's no manufacturing time
Both plants Mitsui and EWC are tolling plants or will charhe fees to process their output
NO NG reinjection,Saves big dollars
The environmental study is at the point of drilling soil samples at the beach and at the river,
EWC has proven technology .just turbine driven Seimens engines.
IOC's condensates will be barged to the Napa Napa facility.
FLNG is still on
There are no drilling delays for any reasons!IOC is building a 22 K mile road to the Bwata areas because the helicopter expense is to high due to weight,
Petromin will pay IOC out of its share of the production starting in 2013,not before
Normally Petromin would pay with the PDL issuance.IOC is giving them a pass since other are paying for their plants.On reason the PNG govt loves IOC EWC and IOC will not have more shared energy project ala the Phipipines.That deal was cut so EWC could prove cash flow and product to its lenders.
Mid Year FID's
These are high productivity wells ,needs only 12-15 in total to develop.
NG is low in CO2
This is a protected Bay,no cyclones,on shore,close to the coast,
NO MORE DILUTION!The cash flow from the projects,2013 first year expected to be $800,000 and in 2016 $2 Billion per year.That cash flow will pay for all the other build out.
Exxon rates PNG as the #3 Fiscal regime in the world,Flat tax,exemption from some taxes,protected from law suits in the lower courts,
The 3 most Senior persons at Martathon EQ are now with IOC.Henry Aldorf,Wayne Hamill and Andy Mitchell.
Lowest cost new project in the world.70 cents per mcf to develop and find assets
Ninty % of LNG sales are Long Term Contracts a re currently that rate is $13 per mmBTU
Funding is in place for all start ups
IOC wants to ramp up exploration,A 2% sale would fund all exploration
Two Pluto sales in Australian paid for all the LNG costs
Top 10 shareholders one 65% of the shares including Phil and Civelli
Top 20 shareholders own 75% of the shares
Very Closely held Corporation.
Exxon can not buy IOC they have signed confidentiality agreements which prevent such
LNG.V will only be seismics no IOC drilling,IOC wants to focus on their assets and drill them
IOC's 3 million tons of production is part of the current 200 million per year industry,
They are working on the Jetty location now and Marina.ALL those dollars are in place,No new money needed
This are they are working in is a very deep basin and the assets migrate up the Mountain.
Exxon requires a 450 million long pipeline,IOC project requires on $3 Billion,Exxon $16 Billion,
Still shooring seismics for Bwata, base camp there now.Wayne in NYC in 10 days ish to unveil Bwata seismics. Some its better the Elk/Antelope was..
Whale is just like Elk/Antelope 6 seismics run their,
Hint Tokyo has today LNG receiving LNG facilities,
Will drill in the second half
IOC has lots of cash and is net DEBT FREE.
Next source of capital will be sale of assets.
Currently all the Japanese companies are still working with IOC but at a slower rate because of the nuclear problems in Japan.