The estimated cost for 3.8 mtpa plant is $5 Billion. See the IOC slides.The infrastructure costs that were originally to be paid by Interoil those LNG storage tanks, pipelines etc is now in the common pool. Or if IOC owns 30% their costs are $1.5 Billion. These type projects get 70% financing or IOC needs equity of 30% of the $1.5 Billion or $450 million.
If ones uses the 9.6 T's(GLJ 2011 year end, higher in 2012) at $1 per mcf and a 30% sell down then IOC receives @$3 Billion at only $1 with a market cap of under $3 Billion today. Realistically IOC should receive $2 range per mcf. Based on the Exxon price.Thats $6 Billion.
So what to do with the extra money.?? Some to explore..Some for future LNG projects. Maybe EWC at Triceratops..?????Or expect per the IOC CC a special dividend .If short well the shorts will pay that dividend to the long shareholder.
Or when do they those shorts scramble out the door!!!!