Arm's Length Transaction=PNG 27.5% Option

[Tree]

It's official.

The IOC/PNG 27.5% option above 22.5% of PRL15 is in fact an Arm's Length Transaction.  PNG price to opt in will be set by the 3rd party SD $/Mcf.  No intimidation.

BTW, IOC and PNG have been considering the increased PNG stake since at least 2009.

This 50/50 dealio is not scary.

**********

Definition of 'Arm's Length Transaction' A transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm's length transaction is to ensure that both parties in thedeal are acting in their own self interest and are not subject to any pressure or duress from the other party.

Investopedia explains 'Arm's Length Transaction'

The concept of an arm's length transaction commonly comes into play in the real estate market. When determining the fair market value of a piece of property, the price for the property must be obtained through a potential buyer and seller operating through an arm's length transaction, otherwise, the agreed-upon price will likely differ from the actual fair market value of the property. 

For example, if two strangers are involved in the sale and purchase of a house, it is likely that the final agreed-upon price will be close to market value (assuming that both parties have equal bargaining power and equal information about the situation). This is because the seller would want a price that is as high as possible and the buyer would want a price that is as low as possible.

This contrasts with a situation in which the two parties are not strangers. For example, it is unlikely that the same transaction involving a father and his son would yield the same result, because the father may choose to give his son a discount.

Read more: http://www.investopedia.com/terms/a/armslength.asp#ixzz2FLZ9p0j7

[TxPm]

Tree,

Are you hearing something new or are you just reconfirming what we believed?

[Tree]

tx,

While you believed this as true, many were unaware.  Phil states in Q3 cc  that the Gov't's option to acquire another 27.5% prl 15 stake was to be at commercial rates and doubts still remain.  Recent articles prove that.

This clarification is that the option will be in fact an at arms length transaction.  This is good.  I wouldn't feel quite right if our short friends weren't properly aware if this fun fact.

The paucity of paying attention sometimes necessitates  confirmation and restatement of integral facts.

[ebster123]

Don't you think B and Erock would tell everyone the truth? I mean, are they not upstanding legitimate guys???? Boy, and I have ben trusting them all this time!!! Can't wait or them to get smoked!!!!!

[TxPm]

Tree, maybe I should reword be question...is there a new official statement or article that is stating this or are you reaffirming for everyone what we thought the 3rd Q CC meant

[Tree]

Phil's CC statement was an official statement and it has been verified. We won't get another official statement on this from them. Perhaps some reporter will catch wind of this, verify it, and start using the term in articles.
Post CC reports had 'uncertainty of resource equity' and 'doubts over continuity of E/A' as bidder concerns.
Both have now been addressed.

[TxPm]

Please don't take this the wrong way bc I fully expect the transaction to be completed at arms length and at market rates but all of this was confirmed weeks ago...why the new post?

[TxPm]

The people who talk about uncertainty of PNG Govt and resource continuity in my opinion know these are no longer valid concerns and have known that for some time but will in my opinion continue to spread this false information probably until the first shipment of LNG is shipped from Gulf LNG. At that point with all previous theories proved to be false I'm sure Shorts will try and make ppl believe our cargo is at risk of being hijacked by pirates or some other nonsense

[Putncalls]

How do they do that when the concrete is poored?