'petrengr1' pid='12646' datel Wrote:I have not discussed this with the Company but my guess is that the Government will still have to pay a tolling fee for the CSP and pipeline. They will also have to pay their share of the sunk cost for the field development. “In Kind” means they will take their share of the gas (22.5%) as “dry gas” instead of money. They then have the option to use the dry gas for any purpose they want without having to pay for 22.5% of the LNG plant. They will also be entitled to 22.5% of the condensate but they may prefer to let IOC handle it for them for cash instead of taking it "in kind". They could use their gas for power generation, fertilizer plants or any other gas based industry. Here is one for you from left field. They could sell it to Exxon while they are waiting for their Power Plants, distribution network and Fertilizer Plants to be built. They could probably get $5-$7/MCF for it without having to pay for an LNG plant. Just something that occurred to me and, therefore, just an opinion
Not out of left field at all. Kinda looks like this was either the plan all along - or - it was IOC's plan and it morphed into PNG's deal to sell to XOM as way to 'self-finance' their ustream opt in and stake in Train 2. This benefits XOM, PNG and IOC. All compromised and IOC with investors now owns 100% of the first train. Toot Toot
Aug CC 2011:
'Jason - Macquarie
Just to start out, Phil, I appreciate your comments about the valuation. I just wanted to make sure I understood your comment correctly. When you said a partial sale of equity that could be in the $5 to $7 an Mcf range, is that a direct comparison, then, to the roughly $0.35 an M that is being built into the equity right now? Am I interpreting that correctly?'
Phil - InterOil Corporation - CEO
'Yes, sir. So you have to figure it out. So all I'm saying is, we had the same absurdity once before in our history. And I've never
seen such an extreme as we have today.'