Bloomberg on IOC.OSH and Exxon

[jft310]

 Oil Search Says Watching Exxon, InterOil Talks With Interest

> 2013-07-22 23:45:27.940 GMT

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> By James Paton

>     July 23 (Bloomberg) -- Oil Search would likely be able to participate in an expansion of the PNG LNG project if Exxon reaches a deal to develop Papua New Guinea fields with InterOil and brings the gas into the venture, Oil Search said today.

>  * NOTE: InterOil said in May it started exclusive talks with

>    Exxon to develop gas discoveries in Papua New Guinea

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> Link to Company News:{IOC US <Equity> CN <GO>} Link to Company News:{OSH AU <Equity> CN <GO>} Link to Company News:{XOM US <Equity> CN <GO>}

[sydbod]

Read the source article, as it has now been released. It is the "Quarterly report to 30 June 2013" from OSH.
http://www.oilsearch.com/Media/docs/1307...d3c7-0.pdf

Page 2
"During the quarter, ExxonMobil entered into exclusive negotiations with InterOil and Pacific
LNG Group, regarding the development of PRL 15 in the PNG Gulf Province, which contains the
Elk and Antelope gas fields. The discussions are focused on InterOil and Pacific LNG selling
ExxonMobil sufficient gas to develop an additional LNG train at the PNG LNG Project site. We
are watching the progress of these negotiations with interest, as should this gas be brought
into the PNG LNG Project, it is likely that Oil Search will have an opportunity to participate in
this expansion.”

[jft310]

This means Oil Search to participate will buy into the expansion . That requires cash or in kind NG both of which OSH doesn't have,therefore OSH will have to do an additional equity offering diluting current holders , since OSH has run from 75 cents to near $8 best action woks be to sell OSH now or short it and catch the IOC ride that OSH has had, my opinion

[sydbod]

I also am thinking along the same lines as you. Although I only have 10,000 OSH share, so it wont break me no matter what I do, it may be time to move that money to other areas. Its this #$%%# capital gains tax we have in Australia that makes one hold on to investments way longer than one should.

[jft310]

Taxes should never drive buy/sell decisions.In my opinion. Me thinks $80,000 buys 1000 shares of IOC almost pre split. Buy OSH back on the dip from their expected secondary.Peal off some IOC profits from the deal news. Just an idea based on what I know today,Hold most of your IOC till right before their LNG plant opens.

[sydbod]

Most of my OSH shares were purchased at around the 26c mark (a long time ago). I am on the highest tax bracket at the moment. Over 20% of the OSH selling price would go up in tax. Arrgggggg!!!!!!!! Me thinks to hold the OSH shares until when the PNG LNG plant starts up, and then to sell. It is easier to just put new money into IOC but thanks for the advice.