10-25-2013, 11:20 PM
This is a FWIW post. I was told after the Exxon deal was announced this was NOT just a NG sale but an LNG participation deal. Two sources both employees of Interoil. Seems that Byker thought he had a deal that included LNG participation but Exxon had understood that the deal didn't include an equity interest in PNGLNG. I have no idea who did what to whom but it became a problem. Byker was clearly over his head fact! Further there always was an agreement for Exxon to pay for the delineation wells desired by Exxon and then a further payment for additional NG found with those wells. Sounds like we now have equity interest clearly spelled out and further drilling contemplated so no matter what happened Hession is fixing it and quickly with the technique well if you will not do this Exxon then we will do this with X or Y. Exxon can't afford to miss out on this IOC NG . There is zero reason today to bank on OSH finding more NG for an expansion. They have had 4 years plus and havn't found the goods. Exxon will not spend Billions on possible NG!!The economics of the third train drive the deal. Its all about money when...