RIFT OIL, Drilling for Oil in Papua New Guinea

Well at least some cottoned on to my posts earlier.Blimey some people need it spelt out for them.Rift have a major find in PNG and this would normally have transformed the company however the problem is getting the Gas from their strike to a terminal to transport it.

The posts show that it is not only Rift having the problem but other E and P companies.What is super news is that other companies who have struck rich in Papua are building the ifrastructure to export the gas.

Now these companies could also allow Rift to "piggy back" to recoup their costs.The whole problem with the Douglas find is that,at present,they cannot commercialise it. You know it's a case of "Great we have gas but.......".Now we are expecting news of recent commercialisation studies which will shed more light on this matter.

Recent news shows that Indonesia,the main exporter of LNG in the region,cannot meet 07 demand.Companies now have to look at what else is on offer and this makes Papua more atractive.The reason being is that there are many commercial finds of Gas and Oil in the region and the labour costs are low.Production could switch,in time,from Indonesia to Papua or Papua could come online as an alternative source.

We know the gas is there.We have further exploration licences and partners who will support us.Looking aroud we can see there are other majors making a push in the area and building the infrastructure to export the commodities.

Is RIFT a buy ???

DYOR but in my opinion YES.