News Today- PRE Deal Completed

[cybersssss]

http://finance.yahoo.com/news/interoil-c...00309.html

"Together with previous payments PRE has funded the full US$116 million cash payment due under the Farm-in Agreement. Additional payments of PRE's drilling costs for the Triceratops-2 well are scheduled to be paid in the coming months."

[Spartina]

Nice...Thanks Cyber

[jft310]

Those drilling rigs are warming up we can conclude.

[jft310]

Just thinking the implications of completing the PRE deal could mean the deal for E/A are known and the new partners agree with that development. Or why this closing now implies they were tied together in someway not fully apparent now.

[Tree]

Nice...Thanks Cyber

Hey Spartina, is $116 Million real enough money for Eric to now leave the YaHoo MB forever??

[cybersssss]

Well in the conference call they did state that completion of this transaction would happen this month so this is really no surprise. This was before the bids were even submitted. So nothing surprising here. I doubt that any new partner on the E/A deal can and/or will have a say in this deal. Only a buyer of the entire company would have a say in this deal. Either way I really do not think that they are connected at all.

However, IOC now has more cash on hand. This shows that they are in fact capable of making deals and that they have cash.

All good in my opinion.

Let's hope we get some news about the selldown soon.

[Spartina]

Aw you'ld miss him Tree....

[jft310]

Cyber -You hit on my implied comment. No takeover now but a deal to develope E/A. Takeover is just pushed back a bit and I do believe all of IOC is sold just not now!Need to cut a few more deals, drill some more, etc etc. The winner of these bids has the best chance of buying all of IOC someday.

[cybersssss]

Agreed JFT... Although once a deal is announced it is still very possible we get a bid for the whole company from another bidder or party that wants it. A deal with PRE will certainly not prevent any big company from buying the whole enchilada. These companies work together on projects all the time to de-risk them further. One can argue that it makes IOC more desired as well.

Either way these are very interesting times for IOC. It looks to me as if everything has come to a head. E/A sell down, Triceratops being farmed-in and further delineated, institutional and HF accumulation, and short count at an all time high. Lot of fuel for the fire. Houston we need ignition!

[davidhmtk]

Agreed JFT... Although once a deal is announced it is still very possible we get a bid for the whole company from another bidder or party that wants it. A deal with PRE will certainly not prevent any big company from buying the whole enchilada. These companies work together on projects all the time to de-risk them further. One can argue that it makes IOC more desired as well. Either way these are very interesting times for IOC. It looks to me as if everything has come to a head. E/A sell down, Triceratops being farmed-in and further delineated, institutional and HF accumulation, and short count at an all time high. Lot of fuel for the fire. Houston we need ignition!

For those following the accounting - I believe this triggers recognition of income, including expense repayments - because the original drilling is expensed, the reimbursement is income.  The quarterly #s will be pretty.