Oil Search in resource drive

[ArtM72]

Getit -  I can readily agree with most of your post, and yes it Might be too early to promote the canning of Hession.  It is too bad we don't really know why he's missed so badly on his drilling timelines.  One thing we can agree on is drilling has been a mess. Another is the price has never recovered from the transformational deal. Another is Hession does not believe in public disclosure  in the absense of clear regulatory requirements.  How much time and money did IOC spend at Wahoo yet we only know there wasn't carbonate.  Why don't we know what he did find?  What's he hiding?

I still can't get over there being no place ready for 116 in such a target rich environment

[katytrader]

Getit -  I can readily agree with most of your post, and yes it Might be too early to promote the canning of Hession.  It is too bad we don't really know why he's missed so badly on his drilling timelines.  One thing we can agree on is drilling has been a mess. Another is the price has never recovered from the transformational deal. Another is Hession does not believe in public disclosure  in the absense of clear regulatory requirements.  How much time and money did IOC spend at Wahoo yet we only know there wasn't carbonate.  Why don't we know what he did find?  What's he hiding?

I still can't get over there being no place ready for 116 in such a target rich environment

What's he hiding?  What difference does it make?   lol

[Putncalls]

Getit -  I can readily agree with most of your post, and yes it Might be too early to promote the canning of Hession.  It is too bad we don't really know why he's missed so badly on his drilling timelines.  One thing we can agree on is drilling has been a mess. Another is the price has never recovered from the transformational deal. Another is Hession does not believe in public disclosure  in the absense of clear regulatory requirements.  How much time and money did IOC spend at Wahoo yet we only know there wasn't carbonate.  Why don't we know what he did find?  What's he hiding?

I still can't get over there being no place ready for 116 in such a target rich environment

What's he hiding?  What difference does it make?   lol

Could be conserving cash?

[kommonsents]

Getit -  I can readily agree with most of your post, and yes it Might be too early to promote the canning of Hession.  It is too bad we don't really know why he's missed so badly on his drilling timelines.  One thing we can agree on is drilling has been a mess. Another is the price has never recovered from the transformational deal. Another is Hession does not believe in public disclosure  in the absense of clear regulatory requirements.  How much time and money did IOC spend at Wahoo yet we only know there wasn't carbonate.  Why don't we know what he did find?  What's he hiding?

I still can't get over there being no place ready for 116 in such a target rich environment

What's he hiding?  What difference does it make?   lol

Could be conserving cash?

Let's be perfectly frank and honest here.  His job is to serve the best interests of the shareholders of IOC.  In that regard, his actions and results are the measures we have to determine his job performance.

The issue is, whose interests is he really serving?  The shareholders?  or his own?

The answer to that should determine his fate. and if the latter, the BOD should respond quickly.

If the former, he needs to make some major adjustments and soon, IMHO.

[jft310]

Hession is focused on BOD provided incentives or long term value creation . Build an LNG plant with meaningful LNG participation . Finding more assets through the drill bit to then repeat the Total deal . The BOD has financial incentives for Hession to do just that build an LNG plant , find more assets and cut another LNG deal . The BOD further risked Hession's pay package by 75 percent to see him get his full pay the stock price must be in the top quartile measured over 2 years .
The stock price needs the Total payment with enough gas for a two train build and then an FID on that gas . From the AGM 2015 Total should pay Interoil and an FID is possible thus helping the BOD achieve its objective and allowing Hession to paid .

[2126]

September 30, 2016 our certification payment

I see that the Interim Certification Payment has been unilaterally moved forward another quarter by SHU members who .....

[jft310]

Publicly Oil Search said 3-5 years for more trains , I assume that's 5 years for Interoil . Much better than current expectations . Is this just Botten chatter ??

[Getitrt2]

Frankly Getit I think we agree here. It is way to early for a dismissal in regard to Mr. M Hession's employment with the company. He has stopped much of the gossip mill that infiltrated the company in the previous regime. He made a great move in selling the refinery and gas stations. He has completed a deal and whether it is the transformational deal remains to be determined, but really the whole deal will not completely play out for 8-10 years. You see if the company remains in business and is receiving a billion per year from Elk Antelope gas the stock price should follow. Then there is all the rest of the opportunities in Raptor, Bobcat, Triceratops and other locations. The oil rout has just about finished in the opinion of many experts and past historical charts shows it will turn up very soon. So in our Millennial World where we want instant gratification (i get impatient and whiny too) the Hession management team has a ways to go before the ax man should be summoned. September 30, 2016 our certification payment and then a year later our FEED payment is only one of several future steps for the company. Stuff good and problematic will happen in the next 12 months but much of the story will be known in a year. Not long in the investing world. If I would have held many of my former stocks and been patient I would be smiling even today with the downturn. Patience and the long term typically wins with quality. We know the gas is there. There is enough for two trains , Hession said so. We will be rewarded. Damn its hard to sit around and wait.

Thanks, Martini.

I don't know where you are getting the September 30, 2016 date for certification payment, perhaps your own thinking.  I think the current projection we have from IOC is mid-year.  I think it is likely by then, unless they decide an Ant 7 would be of significant benefit and that pushes it out somewhat further.

P.S.: You sure are right about how hard the waiting is, and there is no way the stock should be as low as it is!

[jft310]

Based on the multi Darcy talk and all the recent Dolomite showings it's hard to imagine Oil Search and Total voting to fork over more money to their sellers by drilling Ant 7 . What's wrong with seismics?surely we have enough for a 2 train by now !!GCA thought we had enough with their P-2 estimate .

[Getitrt2]

Based on the multi Darcy talk and all the recent Dolomite showings it's hard to imagine Oil Search and Total voting to fork over more money to their sellers by drilling Ant 7 . What's wrong with seismics?surely we have enough for a 2 train by now !!GCA thought we had enough with their P-2 estimate .

You may expect it to work that way and could be right, but trying to hold down resource payments that might be due is not a proper reason to vote against Ant 7.  Seismics, as helpful as they are, are much less dependable than well data and will be discounted and not relied on as much by independent resource engineers.  Wahoo and Ant 4 and Ant 5 all proved that.  Ant 5 and related testing in particular provided strong evidence of a much larger and higher quality field and resource, and indicated potential need for additional drilling to clarify that further, not just for certification payment determination, but also for better understanding of the resource for project purposes.  That would include potentially proving enough resource for more than three trains and the contribution of that to project decisions and planning, as long as it would not have too much of a negative effect on FID, etc.  With the flow data, etc. IOC may even decide more drilling is not needed that much now.  However, Pet seems to think there are still significant questions about the location and angle of the fault, very important factors, and they will eventually have to drill more wells anyway.  If more well data would provide significant valuable information toward proper certification and/or resource understanding and project planning, without causing too much delay, that is the basis on which all partners should be making the decision, especially the lead partner and Operator Total.  I think it is notable that the JV approved an extensive side track to the south for Ant 4, pushing Ant 6 out some, to further evaluate the extension to the south of the dolomite found by Ant 4, which may also increase the resource certification.  I think, and hope, that is the way it will continue to work, and reflect the quality and honesty of the partnership between IOC and at least Total.