I agree with this math as well, but also not sure MH orchestrated this.  May not matter.  Interesting that all this happened as PNG was negotiating with IPIC, DUMA canned and minoritiy partners were up agains it.  Sounds like a 3 way trade in baseball with IOC and TOT  watching.  PACLNG gets paid, OSH gets interest in E/A and PNG gets OSH shares (that they were losing to IPIC).  I don't know but not sure MH put this together, perhaps Civelli?  In any event, slightly positive for IOC (this deal) but a bigger positive in that it cleans up PACLNG with no dilution and hopefully gets drilling started.  Hopefully TOT on board with all this and things simply all come together as many of these loose ends get tied up.

'Palm' pid='38280' datel Wrote:They could end up with a couple of % less, but they ain't going to 12%, 10% or 8% or anything silly like that.

Yea, the parties have already given ample indication what kind of percentages they aspire to hold in the end, especially Total.

If you want to be negative, then TOT has to deal with OSH/IOC for thier share and perhaps they want the same deal as OSH, which takes away the upside $ per mcf for IOC over 7Ts.  I don't foresee that but i guess its possbile.  To me the worst case is XOM sliding in and you know they would want the lower $ per mcf.  I agree with JFT and other is that the big value is 30% in a 2 train LNG plant with TOT.  They may not end up with that if XOM forces their way in.  I dont' see that happening though.  I think TOT/OSH is a nice counter balance to XOM/OSH  and tjhe current deal on E/A is a great buy for OSH and should be positive for IOC  Depsite the uncertainty the stock seemd to act well today.  I agree with other it might be much less interesting to play with from the short side here.  i would think we might get a delay in the close of the TOT deal while this all shakes out and that could be a ST negative, but that is the only real potential negative i see.  Not predicting that but its possible.

'Palm' pid='38280' datel Wrote:They could end up with a couple of % less, but they ain't going to 12%, 10% or 8% or anything silly like that.

Those persentages are where it stands at this point. Of course the IPI wanted more than the 240 million that was being discussed on this board.

The part I'm strugling with is the 2 billion  resource payment IOC recieves at 1/29$/MCF.  if the 2C reource estimate is 9.9Ts. IOC is supposed to receive 1.29$/MCF when the resource estimate is greater than 6.5 TCF. I calculate (9.9Ts - 6.5TS) = 3.4Ts. If total buys 61% of that at 1.29$/MCF that should be 3.4 * .613 * 1.29 or 2.9 Billion dollars. So...... How do we get 4.1 billion for 61.3% of 9.9 Ts rather than 5 billion?????

http://www.interoil.com/iocfiles/documents/investorrelations/presentationanddocuments/2013/2013-12-09%20Total%20Transaction%20Final.pdf  

Page 7.

'Putncalls' pid='38294' datel Wrote:

'Palm' pid='38280' datel Wrote:They could end up with a couple of % less, but they ain't going to 12%, 10% or 8% or anything silly like that.

Those persentages are where it stands at this point. Of course the IPI wanted more than the 240 million that was being discussed on this board.

The part I'm strugling with is the 2 billion  resource payment IOC recieves at 1/29$/MCF.  if the 2C reource estimate is 9.9Ts. IOC is supposed to receive 1.29$/MCF when the resource estimate is greater than 6.5 TCF. I calculate (9.9Ts - 6.5TS) = 3.4Ts. If total buys 61% of that at 1.29$/MCF that should be 3.4 * .613 * 1.29 or 2.9 Billion dollars. So...... How do we get 4.1 billion for 61.3% of 9.9 Ts rather than 5 billion?????

http://www.interoil.com/iocfiles/documents/investorrelations/presentationanddocuments/2013/2013-12-09%20Total%20Transaction%20Final.pdf  

Page 7.

Total's payment for the purchase of the 61.3% isn't proportioned down by 61.3%.  The payment for their acquisition of the 61.3%  is the $1.29 (and other traunches, as appropriate).