Some comments by Pacific Rubiales Energy (PRE) on Triceratops/PPL 237 from recent presentations and conference calls:
August 9, 2012: The Block PPL237 and Triceratops, this we have 10%. It's not very much, but this is a huge, huge new region with high-quality assets. Let me tell you, I [have been] in the oil industry for close to 40 years and [have] never seen a [well] the size of the Triceratops well. You can see there around 1,500 feet of net space. I've never seen that in my life. InterOil announced that it [has] tested gas at 17.6 million cubic feet per day and also condensate in the order of 13.6 to 16.3 barrels per million cubic feet.
November 8, 2012:
Three plays are emerging in Papua New Guinea. The Highlands play characterized by the high[lands gas fields] underpinning the PNG LNG, [2 train] LNG project of Exxon, Oil Search; a Lowlands gas aggregation play dominated by Talisman; and in between, as you can see on this map [Figure 17], the Foothills play dominated by InterOil along with our partnership on PPL237 and Triceratops. Now, it's early days, we recognize that, but we think the Foothills play has the potential to dwarf both the Lowlands and the Highlands.
November 8, 2012:
This is indeed exploration on a big scale, we believe a world-class hydrocarbon trend that has already resulted in at least 2 multi-tcf discoveries at Elk/Antelope and, more recently, Triceratops where we are participating. These are giant structures with net vertical pays measured in over 1,000 feet natural gas but also with associated condensate liquids of significant volume.
On the other side of the world, we have teamed up with InterOil on their onshore Papua New Guinea Foothills play, taking a 10% participating interest in the Triceratops gas and condensate discovery and the PPL237 exploration block. This represents early-stage, very large resource capture on the doorstep of the world's largest, fastest-growing primary energy markets
Sentiment: Strong Buy