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+--- Thread: Phil Says GVT option Way to Early (/showthread.php?tid=2059)
Phil Says GVT option Way to Early - Putncalls - 11-20-2012
Could the PPS action be that the goverment eesersiaed it option in less than 24 hours after Phil says "it's way to premature to discuss"?
Evan Calio - Morgan Stanley
Any comments at this time - or is it too premature - on the government’s ability to buy, or option to buy, additional gas? I know it’s been reported a couple of times.
Phil Mulacek - CEO
It’s been reported, but it’s way too premature. In the meantime, as the prime minister says, hey, get going, and we’ll be establishing commercial terms on what the market is. Then they still have to take their own gas and build power plants and key infrastructure for the country. But we’re trying to be proactive. They have problems with infrastructure throughout the country, and they’ve never had a developer willing to work as a real partner. So it’s a milestone event. It lowers our financial hurdle rate, because we don’t have to build capacity of LNG, but the state also needs energy to improve the standard of living and healthcare for the whole country. And you’ve been there. Go to [Karamont], that hospital. No vaccines are valid, because there’s no stable power. And that’s just rampant throughout the country. So the government is very excited about it
RE: Phil Says GVT option Way to Early - TxPm - 11-20-2012
That's my only hesitation & I stated it on a couple other threads. Liam fox had clearly seen the document before the CC so I assume Phil knew the document was out there as well so why the downplay & discrepancy & then why the next days does interoil issue A Press Release saying its a step forward & once again acting as if they knew the whole time
RE: Phil Says GVT option Way to Early - Tree - 11-20-2012
Put & Tx,
Don't read into this exchange what was not said or implied.
All Phil did was answer Calio by saying it was way to premature (to comment). That's all. No attempt to not acknowledge the negotiations Calio referred or deny they were in negotiations was made. They are in negotiations, and Phil cannot comment on those negotiations as respectfully so. Phil would leave that announcement up to O'Neill as it is a good thing for PNG and IOC both.
Evan Calio - Morgan Stanley
Any comments at this time - or is it too premature (to comment)- on the government’s ability to buy, or option to buy, additional gas? I know it’s been reported a couple of times.
Phil Mulacek - CEO
"It’s been reported, but it’s way too premature" (to comment).
"In the meantime, as the prime minister says, hey, get going, and we’ll be establishing commercial terms on what the market is. Then they still have to take their own gas and build power plants and key infrastructure for the country. But we’re trying to be proactive. They have problems with infrastructure throughout the country, and they’ve never had a developer willing to work as a real partner. So it’s a milestone event. It lowers our financial hurdle rate, because we don’t have to build capacity of LNG, but the state also needs energy to improve the standard of living and healthcare for the whole country. And you’ve been there. Go to [Karamont], that hospital. No vaccines are valid, because there’s no stable power. And that’s just rampant throughout the country. So the government is very excited about it."
RE: Phil Says GVT option Way to Early - Putncalls - 11-20-2012
So I gather you don't think Liam is correct as to 1.27$/MCF?
RE: Phil Says GVT option Way to Early - Tree - 11-20-2012
'Putncalls' pid='12956' datel Wrote:So I gather you don't think Liam is correct as to 1.27$/MCF?
What I gather is, when I listened to this exchange live, it was obvious that Phil was excited about the fact that PNG/IOC would mutually benefit from their partnership and most people think there was obfuscation by Phil in his answer to Calio. That is so wrong. O'Neill wants to get going and commercial terms at market rates wil be sorted out. That's a good thing. Liam's $ cannot be assumed as anything more than a WAG rumor.
There is a way IOC can proceed without an E/A SD. Choose EWC/Flex, swap Mitsui 5% E/A for CSPs, book reserves and borrow against them for construction. This allows the approved project to move ahead and PNG some time to access cash to buy dried gas from IOC in a few yers.
RE: Phil Says GVT option Way to Early - Getitrt2 - 11-20-2012
The Company has stated, however, that they are now moving ahead with a sell down of E/A and the Gulf LNG project, and I see no reason not to believe that.
RE: Phil Says GVT option Way to Early - bertl05 - 11-20-2012
'Tree' pid='12960' datel Wrote:
'Putncalls' pid='12956' datel Wrote:So I gather you don't think Liam is correct as to 1.27$/MCF?What I gather is, when I listened to this exchange live, it was obvious that Phil was excited about the fact that PNG/IOC would mutually benefit from their partnership and most people think there was obfuscation by Phil in his answer to Calio. That is so wrong. O'Neill wants to get going and commercial terms at market rates wil be sorted out. That's a good thing. Liam's $ cannot be assumed as anything more than a WAG rumor.
There is a way IOC can proceed without an E/A SD. Choose EWC/Flex, swap Mitsui 5% E/A for CSPs, book reserves and borrow against them for construction. This allows the approved project to move ahead and PNG some time to access cash to buy dried gas from IOC in a few yers.
I think that would be VERY poorly recieved by the market and would resuylt in a substantially lower PPS for quite a period of time.
RE: Phil Says GVT option Way to Early - TxPm - 11-20-2012
Also that $ amount was never mentioned by Liam Fox....it was posed as a question to Liam Fox by PNG Industry News. I'm guessing this was just a random guess....with that being said that mcf still increases our pps by over 100%
RE: Phil Says GVT option Way to Early - Palm - 11-20-2012
And when will we learn that reporters on Twitter are 99.9% of the time dealing with little more than gossip? Another lesson we should learn from Sandy when it hit the east coast. People were "reporting" all kinds of crazy stuff and people AND MAJOR MEDIA were sucking it all in as fact. "There is 3 feet of water in the NYSE"; major media picked it up and blasted that "fact" all over. It was not correct. Someone posted a picture of scuba divers that were in the subways. People tweeted that it was real. It wasn't. Someone posted a huge wave headed for the Statue of Liberty. People were tweeting OMG look at that thing. It was a picture from a sci-fi movie.
Liam Fox is a reporter and like many reports things he hears as quickly as possible. All kinds of things were being tweeted when the PR was released. One was even "Does PNG really need another mining project?" Mining? The amount that Liam Fox can be given zero credibility or at best very little. This will play out and amazingly it will be equitable for both PNG and IOC. O'Neill is running the show and that makes a big difference.
RE: Phil Says GVT option Way to Early - ebster123 - 11-20-2012
So if you count T2 with E/A (knowing $1.27 is a relative low number) $1.25/mcf is roughly 5 times our current value!!! AND it only includes up to a potential total of 50% of E/A and gets IOC on the dance floor. C'mon, in the long run WHO CARES!!!! let RDS pur a bid in for $400 pps and see what happens. OR we accept this and move on.