Chit Chat from another Board

[jft310]

Northern Trader

$40.25/share is the upfront cash payment. The CVR gets you an additional $6.05 per tcfe of 2C (proven plus probable) reserves at PRL15.

Ant-7 is going ahead. The CVR payment won't happen until summer 2017.



Right now, 2C third party estimates are already 9+ tcfe, meaning this is a $58/share deal. If Ant-7 is successful and they intersect reservoir, thus pushing the major sealing fault to the West , there could be up to 3 tcfe more to be had, or another $18/share, driving this deal up to $76/share.

In a sub-$50 crude oil environment and a $4/mmbtu Asian LNG spot price, I will take that deal any day.



This really isn't that bad of an opening salvo from OSH.

However, the door is now open and hungry Asian oil & gas companies will surely be looking at this deal.

Total will have to pay the certification payment IN FULL to any company that is successful in taking Interoil over. That payment just might be close to the $2.2 billion that OSH has just offered.

[MartiniStocks9756]

Probably need to read the fine print and ensure that it is a potential $76 deal. Someone said the CVR may be limited to 8.tcf. Is that true.

[jft310]

The problem with the above analysis is he is using GLJ estimates which are not on the table . The question is what are the estimates from GCA and NSAI??Will Ant 7 really add 1-3 T's ?? What is the certification number ??

[jft310]

There is no cap .

[Stavros]

Probably need to read the fine print and ensure that it is a potential $76 deal. Someone said the CVR may be limited to 8.tcf. Is that true.

Not liminted Martini

BUT ... NOTHING for Bobcat, Raptor, Triceratops or other fields. We would get that later as 20% owner of OSH

HOWEVER >>> TOTAL is screwing both IOC and OSH shareholders.

They are saving BILLION$

I will vote NO

I want IOC shareholders to get 30% ownership of the merged company

I want the CVR to be 25% higher

[admin]

["Right now, 2C third party estimates are already 9+ tcfe"]

Given the size of the CVR payment at elevated gas levels, a take-over attempt was always likely, and whatever his history, Phil was essentially right. Those that didn't trust Hession, more especially his lack of skin in the game and the way his incentives are aligned also have a point. IHMO.

• A 7.1Tcfe certification (presently the mid case number of an older Caffney Cline report) delivers a $594M payment at certification and $1.6B in total.
• A 9.9Tcfe certification (presently the mid case number of GLJ) delivers a $1.717M payment at certification and $2.8B in total.

[Stavros]

TOTAL has reduced its required payment significantly and will take more %age ownership of E/A
They must be stopped

I also think IOC Shareholders should get 30% ownership of the merged company; not 21%

[Indoreservoir]

["Right now, 2C third party estimates are already 9+ tcfe"]

Given the size of the CVR payment at elevated gas levels, a take-over attempt was always likely, and whatever his history, Phil was essentially right. Those that didn't trust Hession, more especially his lack of skin in the game and the way his incentives are aligned also have a point. IHMO.

• A 7.1Tcfe certification (presently the mid case number of an older Caffney Cline report) delivers a $594M payment at certification and $1.6B in total.
• A 9.9Tcfe certification (presently the mid case number of GLJ) delivers a $1.717M payment at certification and $2.8B in total.

mid-case GLJ number is 10.2, fwiw. and gets us $1.824 at recertification from the Q1 2016 presentation

What about the FID and first cargo payments under TOT deal?  As someone said, need to read the fine print

[jft310]

Looks like Total and OSH are splitting up Interoil assets . Hession had a date of mid July 2016 to get a deal announced . The BOD gave him this incentive .

[Stavros]

We need to stop this deal until we get higher %age ownership of the merged company AND we need to get TOTAL to pay more