White Knight

[katytrader]

Art the deal has major issues . A proper fairness review by a truely independent party would reveal the flaws of the deal . They can be litigated . Zero value for TBR Zero value for other PRL-15 items No FID payment No second appraisal payment Self serving CEO deal Etc The largest shareholders control the vote , they need to think hard about selling on the LNG price bottom .

Add to your list.

The CVR payment to IOC shareholders is structured to represent a DECREASING PERCENTAGE of the total payment Total will make as the field size grows above 6.2 TCFE.  I.e., OSH gets an INCREASEING % AND WE GET A DECREASING % BECAUSE THE SPA CALLED FOR $1.00 PER MCFE AND OSH IS OFFEREING US 0.77.  Plus OSH gets 100% of the value below 6.2 TCFE. WE GET NOTHING FOR VOLUME UNDER 6.2.  THE BIGGER THE VOLUME THE FURTHER APART THOSE TWO CURVES PLOT SO OUR PERCENTAGE GETS SMALLER AND SMALLER.  THIS EFFECT IS DUE TO THE PAYMENT OSH POCKETS BELOW 6.2 TCFE.

WHOOPS!  MY BAD. The above is incorrect.  Intuitively it seems true, but constructing a spreadsheet shows it not to be.  As numbers get bigger the % actually gets smaller.  That's a quirk of dividing big numbers by big numbers.  I'll have to relook later.

Well, were I Peter Botten, I would say "Yes, mate, have a good look at your spreadsheets.  We are paying you with OSH paper for the first 6.2 T.   At a rate of $6.05, that works out to $37.50.  Your BOD fought hard to get the additional $3 in paper for everything else, which really isn't valuable, but we wanted to appear fair."

I don't think a swarm of flies on IOCs walls could inform us of an acceptable rationale for this deal.

[MartiniStocks9756]

On the presentation from OSH it says US $ 0.77 and US $6.05 per Interoil share so I don't think the difference in dollar to AUS is meaningful here..

[MartiniStocks9756]

Also, during the presentation just to relay again they said OSH gets everything in the SPA. So IOC shareholders will get 14-20% of the SPA payments certification, FID, secondary payments, and 29% of the gas plant. OSH shareholders just stole our cheese. Obviously, not good but just reporting what was said.

So my big question is if they are starting at 6.2T's the CVA start for anything above and Botten has never gone beyond 7 the whole time Hession was saying mid-case is 9.9T and perhaps maybe if we get lucky ANT 7 gives us 1 or 2 or 3 more T's. If Botten is correct or was this a setup by the two of them. One being overly optimistic and the other pessimistic and the numbers prove out only at 7 just enough for two trains. Love the conspiracy theories. But Hession really smells bad on this if it is only 7 and Botten has to shell out a bunch of cash if we hit 10-12TCF. At 10.2 we get another $24 US dollars and then the deal turns out just OK but better than if he was wrong all along at 7 and that was all a setup.

In the end I think if the deal goes through we are part of a company that will have two gas plants producing and the real only outstanding issue is that Hession not be part of OSH. If that stays true to form it will be much less hard to swallow the whole deal.

[jft310]

Sure appears Hession will be joining OSH BOD.

[cybersssss]

Not if we VOTE NO on this deal.

[Kaliboo]

Sure appears Hession will be joining OSH BOD.

Yeah, I would expect Hession to join their board.  And then what next?  Hession CEO?  Goodbye rig reports!  Goodbye transparency.  Hello OSH "transformation."

If enough shareholders are upset by the deal, then maybe Hession starts to look like a liability to shareholders everywhere, i.e., persona non grata.

I can say for sure I don't want to own any stock where he has a controlling role.

[jft310]

There is nothing wrong with the partners in this deal . It's the price that's the issue . I see a Phil holding up the banner to argue why we need a better price . The only way we get a better price is to vote this deal down . These partners are not walking away. They need us let's make them pay us properly for our assets . Why will they come back when this deal is knocked down ??Because a Phil type will say I am voting today no but if the following changed I would vote yes . Forced them after a rejected offer to raise the bar .

[ArtM72]

There is nothing wrong with the partners in this deal . It's the price that's the issue . I see a Phil holding up the banner to argue why we need a better price . The only way we get a better price is to vote this deal down . These partners are not walking away. They need us let's make them pay us properly for our assets . Why will they come back when this deal is knocked down ??Because a Phil type will say I am voting today no but if the following changed I would vote yes . Forced them after a rejected offer to raise the bar .

Nothing wrong with our partners except every appearance of collusion with our CEO and BOD to take what was rightfully IOC's, and distribute it amongst themselves.   Total got 60% of IOC!  For what? Financing money to support OSH?

Good partners don't screw you.  Good CEOs see it coming and don't let it happen.  Good Boards don't act in the dark.

But then if you think there is nothing wrong with the partners in this deal you're likely to believe most anything.