half yearly report to december 2012

The following references to EWC’s half yearly report to December 2012 and Interoil’s conference call of February, 2013 adds to the information available as to progress on a number of EWC’s major projects. First, some selected references to EWC’s half yearly report.

First, the 60MW gas turbine is expected to be commissioned by end of March 2013, with the 60MW steam turbine coming on line by end of May 2013:

We anticipate that we will complete the construction and commissioning of the 60MW gas turbine and associated
works (including gas infrastructure) by the end of March 2013. We consider the construction and commissioning of the 60MW steam turbine and heat recovery package and associated works should be achieved by the end of May 2013.
Second, the LNG Sengkang facility is still on time to become operational by March 2014:
Major equipment, including four cold-boxes and ancillary equipment, arrived on site in August 2012. Site works,including foundation work and piling activities, have commenced and will be ongoing during the calendar year 2013. We anticipate that we will complete the construction and installation of the first train of the Sengkang LNG Project and associated works by the end of first quarter 2014 and undertake commissioning and commence operationsthereafter.
Third, The Gilmore mini LNG plant is scheduled to become operational by June 2014:
Site works have commenced and major equipments including the cold-box have arrived on site, and we anticipate that we will complete the construction of the Gilmore LNG Project and associated works during the first half of 2014 and undertake commissioning and commence operations thereafter.
Fourth, the Philippines LNG Hub is still expected to commence operations in early 2014:
We envisage that we will complete the construction of the Philippines LNG Hub and associated works around year end 2013. Commissioning and commencement of operations would follow thereafter with the intention of commercial operation of the Hub commencing 2014.
Fifth (and this is a positive surprise to me), the 600MW power plant in the Philippines seems a real project, with EWC having entered a sales and purchase contract with Siemens for 2 x 200MW gas turbines in October, 2012:
The concept we are considering is that the Philippines Power Plant would be up to a 600MW gas fuelled combined cycle plant and associated plant and infrastructure. In October 2012, we entered into a Sale and Purchase contract with Siemens Energy, Inc. for two 200MW gas turbines (under factory conditions), together with auxiliary equipment. We envisage that the Philippines Power Plant would source regasified LNG from our Philippines LNG Hub when completed. Site clearance and preparation works have commenced for this Power Plant.
Fifth: the PNG lng project with Interoil may still be a possibility:
The proposal includes the construction of a 3 MTPA LNG liquefaction facility, using
our modular LNG trains, and a 150 MW gas-fuelled combined cycle power plant. This agreement has been extendedby mutual consent until 30 June 2013.


Interoil’s conference call of 28 February, 2013 also refers to this LNG project. Phil Mulacek’s reference to the PNG government wanting some gas to be dedicated to local power and natural gas related industries may open up a possibility for EWC’s power plants and the PNG’ government desire to control costs and accelerate production is also in EWC’s favour (cost of LNG plant to be borne by EWC and fastest time in building LNG plant (ie. 36 months).

Phil Mulacek (CEO)
On the LNG front, we are very excited at these times. During the fourth
quarter of 2012 we were the first LNG developer to proactively have the PNG
government to clear it's 25% equity in kind from the Elk and Antelope field.
This is dedicated for local power and natural gas related industries. This is
a key and transforming event for the country at PNG and the standard
delivered of those in the Gulf area. The PNG government has reiterated its
desire to control cost, accelerate our production, create jobs and under
pending revenues sources from our LNG development activities…..
The LNG capacity sizing 3.8 million tons, supported by the PNG government has created enhanced interest by several new parties, which engaged in the process as we reached and we are in the final stages of our partner selection.
It appears to the timing re: decision on sell down of gas field and LNG partnering process has been delayed again (from early March to within 30 to 60 days)



Collin F. Visaggio (CFO):
As publically disclosed and highlighted by Phil, the final bid solicitation
period for the partnering process will close today and our boarding teams to
meet our advisors during March for the purpose of evaluating the proposals
received and selecting our partner for the development of the LNG Project.


: Hi, guys. Phil, a question for you. How long do you
anticipate the board deliberations on selecting a partner?
: It's a little - yeah, somebody is saying that how long
is the piece of string. We haven't got that coming in today, so we'll know a
lot more, and then the advisors need time to review everything, do their
analysis, qualify Q&A. I mean, I'm sure we're going to have a number of
meeting with them, while we're in this final evaluation, I mean, it's a
one-time event and we - until we know what, as I stated in my clarification,
any conditions that is have is just way too premature.
: Okay. And then, you know, assuming the process move
forward as you are anticipating, what do you think is the realistic timeframe
to physically begin construction of the LNG facility?
: You know probably we have to get with them and sit down and map it out,
but one of the key is, what process are they going to use, from the stick
belt, and we have discussions from 36 months to 60 plus. So, I mean, everyone
has different project, that's to build it. So everybody has different
concept, some maybe portfolio issues that maybe that they are really in need
of a strategic supply of near-term fuel. So, as I said, I mean, we -- that
process is going to kick-off in earnest in the next 24 hours. We are going to
know a lot more over the next 30 and 60 days. So that's what we would like to
- that's all I can say.

And finally, EWC’s agreement with Interoil may not need to be extended (beyond 30 June 2013):

Collin F. Visaggio (CFO):
The assets sell down once completed, we will fund the Gulf LNG project and
our longer term exploration program. The timing and execution of the
agreements will be advised in accordance with our continues disclosure
requirement. Also we may not extend existing agreements as we move forward towards an integrated LNG project and conclude documentation with the selected strategic partner.