High Arctic Energy Services Inc T.HWO

Papua New Guinea Government and ExxonMobile Execute P'nyang

[40YardLine]

The Gas Agreement HOA captures key fiscal, regulatory and licencing terms negotiated over last two months. The Equity HOA provides for the State to acquire at cost 10% additional equity from ExxonMobil in the P’nyang Project.

The overall deal reflects a win-win for both sides. In addition to all the legal entitlements, the State’s take is at 63% in this deal compared to 49% in PNG LNG and and 51% in Papua. This is made possible by increase production levy of 3% and the State equity (including the commercial purchase) being 32.5% compared to just 19.6% in the PNG LNG and 22.5% in Papua.

The deal makes P’nyang an investment grade bankable project, meeting the project partners’ investment thresholds and gives it the best chance of going into construction.

The Prime Minister said, “The project timing is sequenced in a way that P’nyang commences as soon as Papua construction is complete.  Papua New Guinea Government and ExxonMobile Execute P'nyang Gas Agreement HOAS - Papua New Guinea Today (pngfacts.com)

[AVALONSHARK]

This is such good news for HWO. There is a clear roadmap of extensive exploration work for the next 10 years in PNG with the Papua LNG and now the P'nyang project. 

[impega]

Is it time to go all in on HWO? They have kept a clean balance sheet throughout the pandemic. When things ramp up in PNG (already started) the benefits will flow right to the bottom line.

[JonathanJSmith]

I wouldn't bother. Put your money in Vermilion; those guys will triple before these guys hit $2.00/sh. Unfortunately, it will take another 2-3 years before this starts to enjoy its Covid recovery. It's ridiculous if you ask me, but not unexpected.  Notwithstanding, I'll accumulate along the way but, cerrtainly, not go all in. Cheers and good luck! JJ