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+--- Thread: Hession in command of the mega-majors (/showthread.php?tid=5165)
Hession in command of the mega-majors - Tree - 11-13-2013
Todays CC was directed to the multiple mega-majors bidding for IOC riches. Not so much us shareholders. Shareholders were privy to the call but make no mistake, Hession was addressing the multiple mega-majors. He clearly demonstrated that IOC is in control of the SD process, has multiple options in play and is expecting LNG equity, big wad of cash and staged cash payments.
He told them:
1) multiple parallel deals of many frameworks are being bottom-lined together.
2) they do have a winner in mind-'each day may be the final day'
3) they plan to close the deal by Y/E
4) Top quality lenders selected by Hession's team just laid 1/4 Billion$ credit on little old InterOil. That even surprised Bonk I've been told. That was news to the mega-majors as well.
5) Robust multi PRL, multi reef prospect exploration campaign is starting.
6) they plan to close deal by Y/E, or any day for that matter, so time for the last and best offer is NOW.
Beauty pageant is almost over and it's time for the blondes, brunettes and redheads to show how much they want the crown. It would not surprise me that price is going up and this process may go into 1Q 14. The longer it takes to announce the better the terms for IOC sharehoders.
RE: Hession in command of the mega-majors - Palm - 11-13-2013
Nice Gravitar Treelucek.
Couple of adds to Hession and his team's huge accomplishments in just 4 months.
1. Licenses- Many have been sure of that come next March IOC would have nada as far as licenses; all but PRL15 and APRL39 would be snagged by Duma and sold to the highest bidder because the O&G Act doesn't allow for it. Forget that PNG has a history of working with those who invest in PNG and employ PNG citizens. IOC has done both. People may want to review what Dr Mike has to say about negotiations with PNG on keeping ALL of the license areas. He can't guarantee anything of course, but he states that it's what's being negotiated. And they received $250 million to carry out the plan to keep the licenses. Think the banks needed some assurance that anything spent in non-PRL areas wouldn't be water poured down a rat hole? I think so.
2. Speaking of the $250 million. You think that hints at the potential of what we get up front? Again, me thinks so. They obviously can draw the full boat on exploration/development/seismics. But IF/WHEN they sell an interest in EA (note that's just EA), they must repay 100% up to the $250 million. So do they expect they'll get at least $250 million up front. I'd guess so. But that just gets them back flush. They need to continue outside of PRL 15. So I'd guess they expect to get at least an additional $250 milion; if not immediately, in staged payments. I think this because it appears they and the government may want one marriage. Sell a piece of PRL15, prove up the next project and do it again; like we've often said. Drill, drill, drill. Sell, sell, sell. Rinse and repeat.
Dr Mike's formula for success.
RE: Hession in command of the mega-majors - sfiaes - 11-13-2013
" It would not surprise me that price is going up and this process may go into 1Q 14. The longer it takes to announce the better the terms for IOC sharehoders. "
It was my impression, that this conference call was all about doing away with that kind of thinking.
RE: Hession in command of the mega-majors - ebster123 - 11-13-2013
MH would be lowering his status if he takes this into 2014. He needs to close a deal before year end, even if it is less than might be available later in q1 2014. Anything else would show a lack of trust by the street and more of the same. He has started a new time and a new way of doing business. He needs to keep it consistent.
RE: Hession in command of the mega-majors - SamAdams - 11-13-2013
'ebster123' pid='31570' dateline='<a href="tel:1384303 Wrote:MH would be lowering his status if he takes this into 2014. He needs to close a deal before year end, even if it is less than might be available later in q1 2014. Anything else would show a lack of trust by the street and more of the same. He has started a new time and a new way of doing business. He needs to keep it consistent.
I agree 100% Ebster. Today we heard the new IOC. Playing the mega majors is the old thinking. If this goes into 1q14 the stock gets crushed. I think the deal is 99% done. This call was for shareholders and not a game of poker. We will get the best deal available and begin the next exciting phase of the company's development.
RE: Hession in command of the mega-majors - Getitrt2 - 11-13-2013
'Tree' pid='31538' datel Wrote:Todays CC was directed to the multiple mega-majors bidding for IOC riches. Not so much us shareholders. Shareholders were privy to the call but make no mistake, Hession was addressing the multiple mega-majors. He clearly demonstrated that IOC is in control of the SD process, has multiple options in play and is expecting LNG equity, big wad of cash and staged cash payments.
He told them:
1) multiple parallel deals of many frameworks are being bottom-lined together.2) they do have a winner in mind-'each day may be the final day'
3) they plan to close the deal by Y/E
4) Top quality lenders selected by Hession's team just laid 1/4 Billion$ credit on little old InterOil. That even surprised Bonk I've been told. That was news to the mega-majors as well.
5) Robust multi PRL, multi reef prospect exploration campaign is starting.
6) they plan to close deal by Y/E, or any day for that matter, so time for the last and best offer is NOW.
Beauty pageant is almost over and it's time for the blondes, brunettes and redheads to show how much they want the crown. It would not surprise me that price is going up and this process may go into 1Q 14. The longer it takes to announce the better the terms for IOC sharehoders.
Tree, please, I would not want the mega-majors to feel insulted! I would not say he is in command of them, but that does not mean they are not open to win-win deals. They probably do not often find small companies with the resources and potential IOC has to offer.