While I am not overly surprised by the shorts using this call as an opportunity to push the pps down (cc's have proven to be binary events in share price short term), I am surprised by some of the comments coming from fellow posters. This is what I got from the call:
1) As per the 2009 project agreement and stated publicly many times, IOC will have an internationally recognized operator of any LNG plants (and CSP for that matter). Is anyone surprised by that fact? It has been a tremendous source of contention with the PNG govt over the years. Dr. Hession made it very clear they will work with partners who will operate LNG plants.
2) They will focus on their strengths and simplify their business. Namely, Interoil will look to discover and monetize gas and liquids going forward and exploit the many promising prospects they have in their portfolio. Many here have been advocates for just such a strategy and encouraged IOC management to focus on drilling over the years......even to the point of selling all of E/A now. That is precisely what they are going to do. I suspect they are sitting on at least 30T.
3) Farm-in Agreements...they will partner with others to expedite the drilling process. I've heard this many times but Dr. Hession reiterated the point.
4) It was clear they all were marching to the same orders and had no intention of commenting about ongoing negotiations. Which company does comment on ongoing negoiations? Generally, not good business. I heard them state they remain in excusive negotiations with Exxon. Any further comments or announcement was not realistic nor should have been anticipated.
5) Phil got himself in trouble many times by making public comments that irritated the PNG govt (i.e Duma). Michael Hession is playing it smart and not overstepping his bounds. His respecftul position towards the PNG govt will play well.
The direction of IOC is changing with Dr. Hession at the helm.....and it's what the board wanted. Instead of IOC being the little engine that could and fighting, scratching, clawing to create their own place in the world while largely going it alone...........Hession will focus on establishing their niche in the LNG world by continuiing their highly successful exploration and partnering with the largest energy players to monetize those resources.
I like what I heard