what was it that riaz said or didnt say that prompted your decision with amazing market timing? Are you not at liberty to say?
Are you also suggesting in some way that our 25% in forum is or will be reduced much further?
heres some numbers we had just 3 months ago <i think they typed in the wrong date>from a quote.......
Firm to invest $100M in Palawan gas project
By Amy R. Remo
Philippine Daily Inquirer
First Posted 21:03:00 05/23/2010
Filed Under: Oil & Gas - Upstream activities, Contracts
MANILA, Philippines—Oil exploration firm Forum Energy Plc is expected to invest $100 million (about P4.5 billion) over the next three years to drill three appraisal wells in the oil-and gas-rich Sampaguita field in offshore Palawan.
“Within 18 months, it is expected that the company will shoot further 3D seismic survey, which we have assumed to cost $10 million before drilling the first well. Our financial model assumes the company drills a further three wells at a cost of $30 million per well,” according to the Edison Investment Research outlook.
According to the document posted on Forum Energy’s website, the company is expected to focus its resources in assessing the Sampaguita field, which is estimated to contain at least 3.4 trillion cubic feet of gas, with an upside potential of as much as 20 trillion cubic feet of gas.
Developing the field is expected to cost $3 billion, according to the report.
The field is under Service Contract 72, which covers 880,000 hectares within the Reed Bank basin—some 150 kilometers east of the Spratlys and close to the main island of Palawan.
Aside from the large Sampaguita gas discovery, the company said the SC 72 field contained at least eight other potential leads.
The resources within SC 72 were believed to be enough to form the foundations of a liquefied natural gas (LNG) project, similar to the Malampaya deep water-to-gas power project.
“There are several options available to Forum Energy for marketing the gas produced from Sampaguita [such as] establishing a new LNG export facility, building a pipeline to access capacity in Shell Exploration BV’s existing infrastructure at the Malampaya, and selling into the Philippine market,” the report stated.
“The outcome is partly dependent on how much gas is proved up. In our valuation, we assumed that Forum will establish its own LNG export facility to serve markets in China and Korea,” it added.
“However, given the level of reserves already firmed up, Forum is likely to attract attention from major oil companies that may well have complementary infrastructure, such as Shell,” the report said.
It was only in February this year that the government granted Forum Energy a service contract for Geophysical Survey Exploration Contract (GSEC) 101.
