06-04-2013, 10:49 PM
'Petro2458' pid='23703' dateline='<a href="tel:1370348 Wrote:4 to 5 TCF!? This is why stock is down...somehow very very low estimates are out there.
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I agree. It looks to me that the deal structure is changing because XOM is only willing to pay (maybe overpay) for the gas they feel they "know" is there, but is taking a conservative approach to spending money on anything related to gas beyond 5T. That leaves IOC with the assets (the remainder of E/A and Tri) but also all of the risk. This would mean delays to "prove up" the extra E/A gas (and then eventually the Tri gas) before being able to make staged deals. On the other hand, if a full buyout is on XOM's radar...this comment (questioning the asset size) could be an intentional part of their negotiation strategy.