WA call report

[Optionray]

I heard similar, but more.

I hearrrr nothing -

Sgt. Schultz

[Palm]

Confirms a lot of things from different sources. Ownership in PNG LNG while a surprise to some should not be so. Huge near-term implications in several ways; monetizing, cash-flow, drilling programs etc etc.

Also the comments regarding "renewing" licenses for operators who've fulfilled programs and spending in accordance with government wishes confirms what I've found and said. And those worried/harping on any future required flow testing can also relax. The O&G Act is not the only regulation regarding how things are to be done in petroleum projects. There are very specific rules in the PNG O&G Regulation of 2002 which enhance portions of the O&G Act. In it are requirements for certain flow tests which must be done within a certain period of planned production. IOC has met all requirements to date of any testing and will do the same when the deals are finalized. So that "scare" in any articles or bashing posts is nothing more than what is required once you get to that point. Again, this is why management brushes off some of this stuff; they know they are in compliance with regulations and will have to do certain testing as things progress. These are not "delays" nor are they potential partner "concerns" as to the integrity of the structure/reservoir. It's part of why it's said that seismics tell you something, drilling tells you something more, testing tells you more, but production is the "proof".

Like this excellent post on the discussion with Wayne portrays, things are all in good order.

[j4j]

I heard similar, but more.

care to elaborate?

[Getitrt2]

Why ONLY 1$/MCF??????

The poster said he "suspects", and I think that is his own speculation.  Wayne would not have given such a figure, and probably does not even know.  I "suspect" higher, with all components taken into consideration.

[admin]

Why ONLY 1$/MCF??????

The poster said he "suspects", and I think that is his own speculation.  Wayne would not have given such a figure, and probably does not even know.  I "suspect" higher, with all components taken into consideration.

Considering the time it takes, this deal is likely to be way too complex for such simple metrical anchoring anyway, although if you really must, it's will, in all likelihood, be possible to recalculate all the provisions back to a sort of per Mcf basis

[Getitrt2]

Why ONLY 1$/MCF??????

The poster said he "suspects", and I think that is his own speculation.  Wayne would not have given such a figure, and probably does not even know.  I "suspect" higher, with all components taken into consideration.

Considering the time it takes, this deal is likely to be way too complex for such simple metrical anchoring anyway, although if you really must, it's will, in all likelihood, be possible to recalculate all the provisions back to a sort of per Mcf basis

I feel sure the analysts covering the stock will attempt to do exactly that, with the investment bankers already having done or doing that in conjunction with the bidding and negotiations.

[geologydude]

Why ONLY 1$/MCF??????

The poster said he "suspects", and I think that is his own speculation.  Wayne would not have given such a figure, and probably does not even know.  I "suspect" higher, with all components taken into consideration.

Considering the time it takes, this deal is likely to be way too complex for such simple metrical anchoring anyway, although if you really must, it's will, in all likelihood, be possible to recalculate all the provisions back to a sort of per Mcf basis

I feel sure the analysts covering the stock will attempt to do exactly that, with the investment bankers already having done or doing that in conjunction with the bidding and negotiations.

This all seems like a great deal of sensitive information allegedly divulged by Wayne given the lock down by Hession.  I remain cautiously optimistic.

[strategyguy536]

I also conversed with WA this week. I got a little less than what some others have posted. This may be from my conservative perceptions or my lack of interpretive skills.

What has been posted herein by others as "facts" from WA certainly came across to me in some cases as facts-- a review of the status of things, management's intents, as publicly expressed, no inside info given, and none expected. However in other cases I think I heard "strong possibilities." An example of the latter is IOC trading some portion of E/A as carried interest for IOC in XOM's PNG plant or its output. You may recall that Hession himself mentioned that in the last CC, and that this has been discussed herein and on the yahoo MB.

I came away with the idea that IOC wants some cash up front to cover its own exploration activities but esp. wants equity in a long term partnership with XOM on many levels in PNG, and with options to partner further with XOM and/or others. I believe we heard that in the last CC, too.

From personal M&A experience in another industry I know that agreements for partnerships between parties of very disparate standing can be very complicated to express accurately and fairly arrangements for long term mutual satisfaction of all parties. In my view if IOC is going to ride well XOM coattails in PNG, the terms and conditions must be explicitly spelled out. That is why documents can be so lengthy, tedious and delayed. And why we are hearing nothing until the deal.

Overall I saw no red flags, and see only green lights on where we should think things stand with XOM, possible others, the PNG govt. Non-exclusive talks with XOM continue, and we would have been told if matters were different, and talks with one or more other biggies are underway as well. No surprises, no news there.

The only news-- at least info new to me-- that I got was interesting and positive seismics between prospects as mentioned. We knew that seismics were ongoing and funded, etc. This new info lacks enough detail IMO to take to the bank, but enough to pique interest. IMO the parties in the data room are likely up to their neck in graphs of same, etc.

In short I heard every reason to remain long IOC and to discount negative rumors. That has been my position since the last CC and it still is. I also believe when we see the deal announcement(s), the bashers will be disarmed and we will see a combo of new money in and short squeeze play, running the stock. This is based only on experience; e.g., the last several blips and how things usually work in like situations. I am hoping for announcements in November, but am positioned for delays. I have been in the stock for over three years and consider it a great opportunity for wealth for patient money. The fundies are in for the long haul, and so should we be.