Hi everyone,
Just a rehash of some interesting links to ponder with some new stuff and some positive opinions on exciting developments that may turn out unexpectedly to favour Pandora;
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Pursuing Pandora
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Wednesday, 4 September 2013 Blair Price
THE long-stranded Pandora gas discovery in the Gulf of Papua has reportedly attracted interest from several supermajors.
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Pandora gas field
Not commercialised at least partly due to its high sulphur content and isolation, the offshore field was discovered in 1988 and is estimated to contain 1.5-3 trillion cubic feet of dry gas. The 15-year licence ran out in February. The Papua New Guinea government invited bids at that time and the process is underway. According to Upstream up to 10 applications were submitted, with the previous PRL1 owners involved along with supermajors Shell and Total SA. Before it expired, PRL1 was owned by Talisman (48.2%), Oil Search (24%), ExxonMobil (16.4%), Beach Energy (6.4%) and Eni (5%). In 2008 the PNG Chamber of Mines and Petroleum told PNGIndustryNews.net the Pandora field was in an ideal position to supply the PNG LNG project and that even though the gas would need its high sulphur content removed, the venture should still be profitable. In the same year Beach managing director Reg Nelson told PNGIndustryNews.net there was plenty of exploration in the adjacent regions to the offshore field which “could perhaps double or triple” Pandora’s resources.[/table]
I think that Pandora is grossly underestimated and will in time be revealed to be much bigger than is assumed. Hopefully after the options run out at the end of the year.
Beach energy are also looking at PNG now...(keep in mind the above)
Beach Energy casts an eye over PNG
Beach Energy has been widely tipped to pursue a deal with its Cooper Basin neighbour Drillsearch, but Papua New Guinean assets are now also on the radar.
Beach's new chief executive Rob Cole mapped out his strategy for the oil and gas company on Wednesday. One of the key points was that Beach would pursue growth opportunities in Australia and in nearby areas, including PNG.
UBS analyst Nik Burns and his team nominated PNG players, Horizon Oil and Kina Petroleum, as potential targets. Burns said Beach's strategic review confirmed the company was likely to participate in mergers and acquisitions.
Beach also stated its ambition to become a top 50 ASX company within the next 10 years.
Citi analyst Dale Koenders and his team believe the company will have to undertake M&A to achieve this goal.
Kerry Stokes' Seven Group holds 19.9 per cent of Beach and Drillsearch, which has fuelled expectations of a merger between the two energy companies. As revealed by Street Talk, Beach has drafted in Macquarie Capital and Flagstaff Partners, while Drillsearch has Goldman Sachs and UBS in its corner ahead of potential Cooper Basin consolidation.
Beach also flagged the sale and leaseback of some of its Cooper Basin infrastructure assets, which Koenders said could raise more than $400 million.
An interesting story developing at the moment that could make Pandora even more attractive and strategic for the majors (considering their historic association with pandora).. no landholder issues out in the water as seems to be happening on the mainland.. ready to go into feeding PNG LNG, or a spare FLNG. Perfect and cheap synergy proposition if you ask me.
The thing is the LNG plant is up and running (money invested) and the only way they can generate their return on investment is sheer volume. Let's say Pandora at 1.5 TCF, now compare that to Elk Antelope (about 7TCF) it's a sizable fraction when you look at it in this light. (See below link..)
By the way I wouldn't worry too much about the link below because at the end of the day, money will talk and people will deal, but what it does highlight is the fact that Pandora is an integral piece of the PNG LNG export puzzle..
PNG chiefs talk of civil unrest over unpopular Australian bank deal
I think in time Andrew Dimsey's and the boards moves to simplify the portfolio and concentrate on Pandora will turn out to be a stroke forward thinking genius (by that I mean the best playing hand dealt to play against unforeseen circumstances). Aka serendipity, albeit with a bit of quietly calculated stewardship (to their credit).
So I say to everyone, keep the cool and hold steady. I just got a gut feeling that everything (in time) will play out unexpectedly well.
Peace out!
BDM Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
Pandora gas field
