Mitsubishi Buys PNG Gas Assets For US$280 Million

[ValueSleuth]

Pet,

From what you've presented, and connecting some dots, I suspect that this is less a sale of existing resources than a future funding agreement.

The up-front money is likely relatively insignificant compared to the commitment to spend in the future -- and perhaps carry some, or all, of Talisman's funding of exploratory wells, etc.

That would explain the seemingly low price relative to OGIP and support the case that this deal tells us zippo about anything relative to IOC's pending transactions.

VS

[Justin94360]

Maybe all of this activity will finally realise IOC's true asset values to the market.

The deal with Mitsubishi values Talisman’s PNG assets at US$840 million, well above CIBC World Markets’ net asset value estimate of US$250 million, wrote analyst Andrew Potter in a research note.
“Another way of looking at this deal is that it is worth approximately 5% of TLM’s current enterprise value — a substantial value for an asset that the Street and investors have largely ignored,” he wrote