1. XOM deal contingent – Contrary to conventional wisdom, IOC’s purchase and sale agreement with XOM for 4.6 Tcf of gas is not contingent on any additional developments.  InterOil will have an opportunity to enhance the size of the resource through additional appraisal wells prior to determining the stake in PRL 15 that XOM is entitled to, but this will be subsequent to the consummation of a binding deal that will involve the transfer of cash and staged payments.  Depending on where the terms fall within the range of realistic outcomes, this transaction should be accretive by in excess of $100 per share to IOC shareholders.
2. PNG LNG Partners Veto Power – XOM and its partners in PNG LNG will accept any additional trains at PNG LNG regardless of the upstream origin of the gas and as long as the upstream operator funds the additional pipeline infrastructure.  There is capacity at the site for 6 additional trains.  XOM is about to engage in a firm purchase and sale agreement with IOC knowing that the gas will be channeled to PNG LNG.  IOC and XOM will also have the Gulf LNG option available so there’s no risk of InterOil’s gas not being monetized.  The key is that SINCE XOM IS ENGAGING IN A FIRM PURCHASE AND SALE AGREEMENT, IT IS XOM’S RESPONSIBILITY TO PLACE THE GAS, NOT IOC’S.
3. The terms of the XOM deal weren’t ideal – There was tremendous competition for a stake in PRL 15, and XOM clearly submitted the best bid.  This winning option wasn’t coerced by the government.  Management has never been more positive and there has been a flurry of early options exercises by management, as they want to get a compelling basis ahead of the coming surge in the share price.
4. The additional resource appraisal poses a risk – The additional appraisal well and recertification structure was clearly pushed for by IOC as it will not stall cash flows to the company or deal closure and it will only serve to reduce the company’s dilution of PRL 15 at a later date.

IOC’s deal with XOM is a best case scenario for IOC shareholders, and the company’s gas will be monetized in days or weeks through the consummation of its deal with XOM.  The stock implies a value that is more than an 80% discount to fair value.  IOC’s gas has been “stranded” up until now but this deal will result in commercial reserves at Elk/Antelope and a revaluation of the surrounding prospects, including Triceratops. TOT almost certainly is preparing to bid for IOC, and its partner in crime, OSH, has been spreading utter rubbish.

Movie, TOT met with O'Neill recently to discuss the prospect of playing a much larger role in PNG.  O'Neill accepted.  I have heard direct accounts of OSH spreading damaging lies about IOC in their marketing meetings in the past couple of weeks, and OSH and TOT are tied at the hip.

'Resourcearb' pid='24680' datel Wrote:

Movie, TOT met with O'Neill recently to discuss the prospect of playing a much larger role in PNG.  O'Neill accepted.  I have heard direct accounts of OSH spreading damaging lies about IOC in their marketing meetings in the past couple of weeks, and OSH and TOT are tied at the hip.

Thank you.

'Libtardius Maximus' pid='24684' datel Wrote:resourcearb comment about osh explains citi report

LM, of course Citi's "understanding" was derived from OSH.  There's no way to derive such misinformation from publicly available materials.  InterOil drilled Antelope 3 in the center of the reef, GCA's resource estimate has gone up materially, there are no contingencies in XOM's deal with IOC, further appraisal wells relate only to the retroactive calculation of XOM's stake in PRL 15 and hence the timing of the recertification isn't very relevant.  Anyone selling on such blatant misinformation, irrespective of the stature of the firm that spews it, will miss out on the opportunity of a lifetime in the next few weeks.  Management is very upbeat and they're exercising options early.

'Resourcearb' pid='24687' datel Wrote:

'Libtardius Maximus' pid='24684' datel Wrote:resourcearb comment about osh explains citi report

LM, of course Citi's "understanding" was derived from OSH.  There's no way to derive such misinformation from publicly available materials.  InterOil drilled Antelope 3 in the center of the reef, GCA's resource estimate has gone up materially, there are no contingencies in XOM's deal with IOC, further appraisal wells relate only to the retroactive calculation of XOM's stake in PRL 15 and hence the timing of the recertification isn't very relevant.  Anyone selling on such blatant misinformation, irrespective of the stature of the firm that spews it, will miss out on the opportunity of a lifetime in the next few weeks.  Management is very upbeat and they're exercising options early.

Resourcearb,  I too, thank you for all your efforts, along with all the other members of this board. Could you further explain what you mean by  the terms of the XOM deal were not ideal? From whose perspective. It sounds like it was " ideal " for Interoil, being the best bid. thank you..

'Investor1979' pid='24688' datel Wrote:

'Resourcearb' pid='24687' datel Wrote:

'Libtardius Maximus' pid='24684' datel Wrote:resourcearb comment about osh explains citi report

LM, of course Citi's "understanding" was derived from OSH.  There's no way to derive such misinformation from publicly available materials.  InterOil drilled Antelope 3 in the center of the reef, GCA's resource estimate has gone up materially, there are no contingencies in XOM's deal with IOC, further appraisal wells relate only to the retroactive calculation of XOM's stake in PRL 15 and hence the timing of the recertification isn't very relevant.  Anyone selling on such blatant misinformation, irrespective of the stature of the firm that spews it, will miss out on the opportunity of a lifetime in the next few weeks.  Management is very upbeat and they're exercising options early.

Resourcearb,  I too, thank you for all your efforts, along with all the other members of this board. Could you further explain what you mean by  the terms of the XOM deal were not ideal? From whose perspective. It sounds like it was " ideal " for Interoil, being the best bid. thank you..

Investor, in at least one of OSH's meetings it acknowledged that it and TOT jointly bid for a stake in PRL 15 (which is amazing given all of the negative information it is now spewing!).  OSH is clearly upset by the outcome and it's trying to disparage IOC and it's deal with XOM.  InterOil, of course, chose the best bid.