Possibly the best qualified insider for CEO: Kerr

[Palm]

As we kick ideas around on Phil's CEO replacement many feel that pick has already been made. Seems hard for them to have been able to keep an external search so quiet, yet Phil says interviews have been going on for a while. Kind of points to insiders as high possibilities. 2 have been brought up Collin V and Alan Zirgulis. But Tree and I were kicking things around a bit and those two guys will be plenty busy in their respective areas. Not ruling them out but another guy makes more sense: Conrad Kerr. He's in LNGL and has been aboard for a while. Here's his bio:

"Mr. Kerr spent 12 years in the ExxonMobil Gas Marketing Company working on Qatar, and West Africa LNG projects and held the position of Managing Director, and head of global LNG for Merrill Lynch Commodities Inc. Mr. Kerr has 30 years of experience in the energy industry, with the last 15 exclusively in various commercial, and development aspects the LNG business."

Great all-around experience and knows people globally. Would be one who can have more of an overseer role and is a good "face" for the company. Marketing guy also who is more comfortable with people generally. Tree has a recording he can plug in here when he gets a chance where Kerr shows his excellent knowledge of the LNG world.  Could be a great choice.

[Movieguy]

Palm, I thank you and Tree and those who know the company well for educating those of us not as knowledgeable about the potential CEO candidates from within the company. They sound very qualified, and I am a fan of promoting from within. I hope the IOC board gives them good consideration.

[Tree]

http://www.interoil.com/conference-call-...ence-call/

This 1Q 2011 CC is where we met Conrad Kerr and Dave Holland.
It is a great CC.

Kerr is equally as impressive as Holland. Listen to him in this CC as he talks of his experience, why he joined and about the LNG biz. LNG biz is not timeline driven, it is a 'checked box' event driven business. He has taken LNG projects from conception to delivery.
The reason he was bought in was not likely to sell those first 3 OTs. That's been done 16 mos. and he's still on the payroll. This guy could be the perfect replacement as CEO.

Holland is 1/3 the way in and Kerr is about half way in.


*Phil is stating 15-16T's in this CC. This is when Project Zebra was hatched and Somare was about dead in a SG hospital.

Phil knew when they hired IB's in fall of 2011 that IOC/Phil would not be the LNG Operator. It makes sense he's known he'd be gone and that they would have interviewed for his replacement. Now he's retired, we are close to the last box to check. But, maybe that's just me.

[Palm]

I like the hiring from within also Moviedude. And it makes a lot of sense here. One way or another Phil has decided to step down. My feeling is that his dream was to continue the quest for a fully integrated company and he's pushed hard for that. But his comment that the bidders are fully aware of what is transpiring in the transition and that they know this CEO transitional process will not slow down the SD process tells us a lot. Bidders have a fully capable interim CEO in Byker to work with and IOC likely has their guy and may have already informed the bidders and Oneill who that will be. Kerr may make the most sense because of his experience and knowledge and he can be plugged right in. He also has been doing other things while working on this project, so should a SD happen but that is followed by IOC getting totally bought out, it's not that big of a deal for him. He will come in prior to deal announcement be granted options and purchase shares (as required by IOC) and he will do well. He has other things he can move on to quickly in case of a total buyout.

To bring in an outsider it would be tough to attract a real mover and shaker because he might just get rolling and then a buyout happens and he's looking for a job again. Makes some nice jingle but he may have left a nice job.

The possibility exists also that Byker could stay at the helm through the SD process; he is capable and certainly has plenty of shares that he will benefit from a pps pop. But that almost assumes IOC has a buyout offer in hand or they are expecting one; possibly one to be voted on at the AGM.

Phil stated he wants to turn his focus on his personal business. That's likely PIE. No matter what happens PIE will have lots of capital as it owns lots of IOC shares. Then he has his personal shares. He'll be able to invest in ventures and have some fun. Very happy for him; he's earned that.

But again, his comments that there is assurance to the bidders that things can and will continue to move ahead is most important in this. They are ready for the deal.