note from Ian Habke about MagallanesGreetings, all,
I sent the following note to Ian Habke in late December:
Dear Mr. Habke,
I am a shareholder of RPT, and attended the annual meeting in August.I have a question about the RPT gas processing facility.
Does it process gas from the Magallanes blocks of Argentina?
I ask this for the following reason. YPF AND ENAP recently announced a commitment to invest $200 million in the Magallanes region including upgrading an existing gas processing plant and building a new plant.
I am wondering if this new investment will involve the RPT plant (is RPT’s plant the one to be upgraded? Alternatively, would this investment by YPF provide more volume for gas processing at the RPT plant?
Any insights you can provide would be welcome.
.........
Today I got this polite and informative reply from Ian Habke:
Thanks for you e:mail and support of ArPetrol .
Yes, the ArPetrol plant does process the YPF/Sipetrol gas coming from the Magallanes blocks. Currently our plant is able to take all of the Magallanes gas production, which almost fills our plant to operating capacity.
The expansion plans for YPT/Sipetrol include a significant increase in gas production and therefore an increase in processing requirements. We are in discussion with YPF/Sipetrol regarding opportunities to extend our plant contract or increase our plant capacity to meet their increased demands. The decision on processing capacity has not been made by YPF/Sipetrol, which we expect to be made in 2015. We will continue to work with them to ensure they are aware of the value that our plant can bring to their expansion.
If you need any other information, or want to talk further, feel free to give me a call.
Kind Regards,
>>>>>>>>>
I feel this is all very good news. RPT needs to convince YPF to cooperate and help upgrade the RPT plant, which their previous news release implied they planned to do.
I continue to buy whenever I get some extra cash.
WC