Possible Reason PNG Cancellation, page-4

The Minister will always stick with his public view that the gas agreement and development licenses were cancelled due to project time delays. I did not suggest he would accept MY views in the earlier post, drafted on an anonymous chatline. Come on here and just make a fool of yourself, is what you achieve.

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However it may be worth just expanding a little more, on an idea here not previously discussed. Obviously the stakes are high not only on the ground in PNG, but for investors .......we would be looking at a 40% gap up, if indeed Horizon's Western Region leases were reinstated. I think it will happen fairly soon, well before we are deeply into arbitration.

Oil Search boss out recently saying that things need to change in PNG to better align the country with these very high value LNG projects. Most stakeholders agree the earlier arrangements for LNG trains, left PNG shortchanged. The Horizon/Repsol license agreement is several years old and likely reflects outdated terms for the Government.

So what options are available to the Minister, especially as his administrative backup is hopefully stretched ………... I think the real reason behind the cancellation of our licenses, is an opportunity to reset
the terms, that better reflects fairness for PNG. It is always the intention of the Minister, to rightfully return the leases to Horizon and Repsol. Drastic sure, but now puts the focus on achieving his terms and working their way through thousands of manhours associated with the new documentation and agreements.

My views were formed after carefully listening to CEO Michael Sheridan in the AGM presentation from earlier this month. The CEO makes reference to work continuing to resolve matters.....words follow that now gas will be made available for domestic use, including mining companies and environmental issues addressed.

If asked to make just one key point from all this.....suggest watch for that 40% gap on news of reinstatement of the leases.