CA's Released?

[CesiumFormate]

I believe that there is a good chance that IOC will never build a plant. The next best step will be to monetize Triceratops with Oil Search / Total. Who needs the stress and risk of the LNG plant? Leave that to the big boys.
CF

[Ass0ciatedPress]

I believe that there is a good chance that IOC will never build a plant. The next best step will be to monetize Triceratops with Oil Search / Total. Who needs the stress and risk of the LNG plant? Leave that to the big boys. CF

this may be the reason Phil decided to retire. If IOC is not going to proceed with building a LNG plant and instead will sell gas before liquefaction we will in essence be leaving a lot on the table. This comment is not to say that we will not be profitable but thoughts of $14-15 gas in the Asia market should be dispelled.

There are a lot of questions that need to be answered.

[Tree]

I believe that there is a good chance that IOC will never build a plant. The next best step will be to monetize Triceratops with Oil Search / Total. Who needs the stress and risk of the LNG plant? Leave that to the big boys. CF

I will raise you one CF.  There is a good chance that EWC will be our own LNG cash-cow in the Gulf, ya never know.  They are FID ready, PNG selected them to power Capital area with nattie and there is a need for multiple like power plants through the islands and outbacks of PNG.

[TxPm]

I will raise you both and predict we receive a buyout offer north of $200 before year end

[admin]

ExxonMobile in the deal will surely mean FID when the final deal is announced. CF

Yea, you got a point there..

[Movieguy]

'Exclusive' - Sounds like it.

Will anyone publicly bid against XOM?

Is it confirmed that the confidentiality agreements, and more importantly the standstill part of those agreements, are void with regard to the other bidders?  This is critical to know as if in place it prevents any buyout offers.

If/when those agreements become void, it means those with very deep pockets and very deep knowledge of what interoil has (they were in the data room) will be free to purchase stock.  They should know the value the best, and I would think not allow the stock to trade dramatically below that value without making purchases and possibly making a buyout offer(s).

[admin]

I believe that there is a good chance that IOC will never build a plant. The next best step will be to monetize Triceratops with Oil Search / Total. Who needs the stress and risk of the LNG plant? Leave that to the big boys. CF

this may be the reason Phil decided to retire. If IOC is not going to proceed with building a LNG plant and instead will sell gas before liquefaction we will in essence be leaving a lot on the table. This comment is not to say that we will not be profitable but thoughts of $14-15 gas in the Asia market should be dispelled.

There are a lot of questions that need to be answered.

Well, if we would sell all of our gas to Exxon, you had a point. I'm not sure how many T's are needed for 20 years single train Exxon extension, it also depends on what IOC, and indeed OilSearch is going to find more.

This is basically the gambit scenario I was hoping for, we sell part of the E/A gas for somewhat elevated in the ground prices (Exxon can pay up until OilSearch marginal gas cost), we don't have to fund any plant (at least not yet, we might very well have our own plant in the future), we get near instand Fid, resource bookings, and as JFT has suggested, it will be interesting to see what happens to the liquids.

This derisks much of it, Chandler was buying for a reason. This isn't the end of the story, not by a long shot. The gambit scenario involves conceding on E/A selldown in order to derisk and enable accelerated exploration, I think we get that with this, if concluded successfully.

[Palm]

Agree STP, this is NOT the end of what we will hear. PNG LNG is the first and most important plant and they have commented that the gov owes them for how badly they handled PNG LNG. My bet is that IOC will have its LNG plant. Much more to come.