IF AN ACQUISITION by XOM PROCEEDS ...
I prefer XOM gives me full consideration NOW. I don't want to wait for additional payment(s) with the nonsense they call a CVR that can yet again be manipulated. If XOM must share the first SPA payment from TOTAL with IOC Shareholders, XOM are likely to also play games with it, knowing they get all of the value from TOTAL later when payments are due after a few years of production.
For XOM, it also makes sense to acquire IOC for a known and set cost now and be done with the acquisition.
AND ... it also gives them the full benefits of ALL payments due from TOTAL under the Elk/Antelope SPA, without sharing later.
As you recall, the TOTAL payments after A-7 is drilled/tested will be as below (times 40.1% based on their ownership); XOM will then force TOTAL to "Payer par le nez"
|
PRL 15 2C Resource tranches {Tcf-equivalent) (100% basis) |
Rate (US$/mcf- equivalent) |
|
In excess of 3.5 Tcfe to a maximum of 5.4Tcfe |
0.60 US$/mcfe |
|
In excess of 5.4 Tcfe to a maximum of 6.5 Tcfe |
0.80 US$/mcfe |
|
For those volumes in excess of 6.5 Tcfe |
1.00 US$/mcfe |
XOM will also get 100% of all the additional payments from TOTAL as the project proceeds and the field is tapped.
I prefer that XOM decides internally how much they think TOTAL will pay them in the future ... then give me ~65% of it NOW.
Also give me ~10% for the other resources - Bobcat, Raptor, Whoo, Triceratops, Mule Deer, etc and etc . . . all those other achers.
My Dream, as herewith transmitted to King Rex : Give us 0.8 shares of XOM per share of IOC and IMMEDIATLEY STOP THE BIDDING IN ITS TRACKS . . . $75 per share of IOC.


