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+--- Thread: Bottens comment (/showthread.php?tid=10599)
Bottens comment - ioc.aussie - 06-01-2016
Deal will make Oil Search 'very, very competitive'
ALICIA BARRY: You're throwing a lot of money at this deal. How do you justify it with oil prices where they are?
PETER BOTTEN: Well I suppose certainly this low commodity period - low commodity price cycle - is a time when you have to be extremely careful about where you do and how you spend your money.
And I suppose what we're doing with the acquisitions that we announced today and the sell down to Total is basically looking at ways to optimise our future LNG business in Papua New Guinea primarily.
The synergies between InterOil and Oil Search are very substantial, and with those synergies, together with the influence that a merger brings, delivers us a real opportunity to drive synergy and co-operation between PNG LNG, which we're a substantial player already and obviously it's on production.
The development, Papua LNG, and cooperation between those two projects can deliver substantial further value and be very, very competitive in what is a challenging LNG market over the next three to five years.
That's what we deliver through this deal, enhanced by the fact that the deal's underwritten by Total and who has again committed to cooperate and a platform for cooperation between the two projects.
Deal has been on Oil Search's mind for over six months
ALICIA BARRY: You told Ticky Fullerton on this program back in February that you would look for opportunities that make sense timing and price-wise in PNG.
Has this deal been on your mind for some time?
PETER BOTTEN: Look, I think it's certainly been around in our minds strategically for probably six-plus months.
It's all about timing, it's all about process and pricing.
And I suppose we've got to a comfort level in discussions with InterOil that this is a good time to do it.
We can significantly influence the next phase of LNG growth in PNG and be a significant player in that rather than being to a degree a passenger with the big boys.
ALICIA BARRY: InterOil's board has had a colourful couple of years to say the least with the board battling with its former founder.
PETER BOTTEN: Yes, it has. I mean, clearly I'm mindful of the press and the various sites that have been out there talking about this.
ALICIA BARRY: Did those problems make it an easy target?
PETER BOTTEN: Look, I think they were irrelevant to our position. Our position was very much driven by what value we saw in it for Oil Search and what strategic importance and what influence we can play in the next phase of growth and position ourselves for that.
RE: Bottens comment - ArtM72 - 06-01-2016
At least Botten's last comment confirmed that OSH saw the value in the deal for Oil Search. Certainly can't dispute that.
RE: Bottens comment - Stavros - 06-01-2016
Same old same old
Great deal for OSH Shareholders
Stinko deal for IOC Shareholders
8.05 shares of OSH per share of IOC is a NO GO for me
US$6.05 per Tcfe for Resources is a NO GO for me
If they offer a fair deal, I will be glad to become a long-term OSH Shareholder
A fair deal is 10 shares of OSH per share of IOC
PLUS
CVR: US$7.75 per Tcfe for Resources above 6.2 Tcfe
CVR: with a FLOOR of US$30
RE: Bottens comment - oliver.gump - 06-01-2016
'Stavros' pid='71196' datel Wrote:Same old same old Great deal for OSH Shareholders Stinko deal for IOC Shareholders 8.05 shares of OSH per share of IOC is a NO GO for me US$6.05 per Tcfe for Resources is a NO GO for me If they offer a fair deal, I will be glad to become a long-term OSH Shareholder A fair deal is 10 shares of OSH per share of IOC PLUS CVR: US$7.75 per Tcfe for Resources above 6.2 Tcfe CVR: with a FLOOR of US$30
I could live with that, and I suspect most of the other shareholders could too. More than likely Phil could live with that also.
I wonder if Botton could reach out to Phil and sewaten the pot.
Oh, and Pinkie, he would have to be cut loose and his golden parachute distributed as a dividend to the shareholders that stuck this ride out.
RE: Bottens comment - admin - 06-01-2016
Oh, and Pinkie, he would have to be cut loose and his golden parachute distributed as a dividend to the shareholders that stuck this ride out.
I could live with that 
RE: Bottens comment - UncleT - 06-01-2016
'Stavros' pid='71196' dateline='<a href="tel:1464750 Wrote:Same old same old Great deal for OSH Shareholders Stinko deal for IOC Shareholders 8.05 shares of OSH per share of IOC is a NO GO for me US$6.05 per Tcfe for Resources is a NO GO for me If they offer a fair deal, I will be glad to become a long-term OSH Shareholder A fair deal is 10 shares of OSH per share of IOC PLUS CVR: US$7.75 per Tcfe for Resources above 6.2 Tcfe CVR: with a FLOOR of US$30
Been many days of this type of talk from you Starvos, but no real data to back up why your numbers make sense.
My perspective is we were led to believe half truths with regards to several numbers. Where we ended up is InterOil and OilSearch both will struggle through the current (pre-take over) deal as things currently stand. Neither have the cash position that is needed. Hence the sell down to Total with Total getting several assets to benefit them (they have the cash).
Since you have been so vocal about the deal. My question to you is how do the numbers work? A7 is being drilled. Cert payment isn't for another year (generously 1.5 years behind schedule). How do we finance the next year, our portion of a plant, and exploration costs on raptor, bobcat, wahoo, triceratops, antelope south, or anything else?
I agree this deal doesn't smell right. However, I could use a little more hard facts on how exactly IOC can monetize it's assets and last through 2023 when they finally become a company with cash flows.
RE: Bottens comment - admin - 06-01-2016
'UncleT' pid='71205' datel Wrote:
'Stavros' pid='71196' dateline='<a href="tel:1464750 Wrote:Same old same old Great deal for OSH Shareholders Stinko deal for IOC Shareholders 8.05 shares of OSH per share of IOC is a NO GO for me US$6.05 per Tcfe for Resources is a NO GO for me If they offer a fair deal, I will be glad to become a long-term OSH Shareholder A fair deal is 10 shares of OSH per share of IOC PLUS CVR: US$7.75 per Tcfe for Resources above 6.2 Tcfe CVR: with a FLOOR of US$30
Been many days of this type of talk from you Starvos, but no real data to back up why your numbers make sense.
My perspective is we were led to believe half truths with regards to several numbers. Where we ended up is InterOil and OilSearch both will struggle through the current (pre-take over) deal as things currently stand. Neither have the cash position that is needed. Hence the sell down to Total with Total getting several assets to benefit them (they have the cash).
Since you have been so vocal about the deal. My question to you is how do the numbers work? A7 is being drilled. Cert payment isn't for another year (generously 1.5 years behind schedule). How do we finance the next year, our portion of a plant, and exploration costs on raptor, bobcat, wahoo, triceratops, antelope south, or anything else?
I agree this deal doesn't smell right. However, I could use a little more hard facts on how exactly IOC can monetize it's assets and last through 2023 when they finally become a company with cash flows.
The numbers could have worked if the certification outcome is at the high end and Hession and his cronies are shown the door and a more frugal regime takes over. In
A low certification would have made things much more difficult, but IOC still has 36.5% of Elk/Antelope and the planned Papua LNG plant and the energy markets will not be in a funk forever. Smaller parts can be sold.
RE: Bottens comment - Stavros - 06-01-2016
First of all, I will take a sweetened deal which TOTAL can easily afford.
If they sweeten the deal, TOTAL will end what could prove to be a protracted ordeal, including Information Discovery (ugly stuff will come out).
It will be cheaper for TOTAL to make an acceptable offer, to my opinion, than to let this fester.
I laid out one option, which is to liquidate IOC in pieces to the highest bidders if the deal is not sweetened.
Mitsui; BP; CVX; Shell; PTT - - - could all pay far more than what we're being offered and still get a good deal for themselves
RE: Bottens comment - ArtM72 - 06-02-2016
(06-01-2016, 01:41 PM)admin Wrote:Oh, and Pinkie, he would have to be cut loose and his golden parachute distributed as a dividend to the shareholders that stuck this ride out.
I could live with that
VERY interesting perspective on this. With Hession walking with $50 million or so overall if this deal goes through each of us has given him a dollar a share to sell the company out from under us. How many bucks is that out of your pocket? For me its thousands.
RE: Bottens comment - Palm - 06-02-2016
If this deal falls apart I fear that the "highest bidders" will indeed pluck the pieces, but at great discounts. With the state of the industry and as UncleT mentions, IOC's current state (cash-strapped which didn't just happen recently, likley credit-tapped, etc., etc.) I fear that black vultures are more likely than white knights.
I Do hope I'm wrong and I don't like what MH and the BOD has done, but it's cold-hard business for this industry not much unlike the real estate industry of the not-too-distant past. Location, location, location meant nada. I also would like to hear very realistic plans/reasoning for 100% (or even very high) valuations being obtained for piece-mealing IOC's assets, and who would be able to do it in quick manner. Total has made its decision and communicated it loud and clear.
Hopefully someone else will step up, but the time that has passed without a peep speaks volumes.