Sydney Morning Hearld Business
Hi Shrewd, Not sure your going to get that dip you're looking for, this is a pretty positive review for NGE.
Locals get a lift in PNG gas project September 21, 2009 .
CANADA'S Talisman Energy has quietly been roaming the jungles of Papua New Guina assembling a package of exploration acreage to underpin its early-stage planning to build what could be a third liquefied natural gas export project for PNG after ExxonMobil and InterOil build their nation-changing projects.
Good luck to them, too. Garimpeiro's interest is in the two ASX-listed companies that have been cut in by Talisman on its LNG ambitions, New Guinea Energy and Horizon Oil.
Both have signed big spending farm-in agreements in which the Canadians will pick up the running to find about 5 trillion cubic feet of gas in support of a potential LNG project producing 2 million to 3 million tonnes annually.
In the case of New Guinea Energy, Talisman could spend $US105 million ($121 million) to earn a 70 per cent interest in two of its prospective PNG exploration permits.
For a company that closed at 23.5c a share on Friday, for a market capitalisation of $92 million, it is a nice position to be in, particularly as Talisman is known as a company that does not mess around.
Same goes for Horizon, although its leverage to the PNG LNG upside is not as great given it is already a $350 million company thanks to its oil production interests in New Zealand. Still, its $US60 million deal with Talisman on the part sale of two of its PNG exploration licences was enough to push its shares 3c, or 10.7 per cent, higher on Friday to 31c.