'IOC: Eve of Transformation' Morg Stan Update

[Palm]

Interesting point Stavros has been making. Why do these reports not discuss the value of the wet gas and the condensates? This I think will be an AHA moment when we see the real/final deal terms! Just like the AHA moment everyone had this week after Hession spoke.

The condensates issue is hardly a new point; that has been a point made for years to especially distinguish IOC's resources from Aussie CSG.  The liquids make a huge difference in IOC's favor along with the fact that the gas as is will meet the high standards of Japan's markets.  There is no requirement for treatment of teh NG to reduce it's undesirable content.  Aussie gas cannot say that so not only is Aussie gas dry gas, it needs to be treated to meet Japan's needs.

Thanks for that Palm.  Exactly how else would IOC get to a negative gas cost for conditioned gas delivered to a Gulf LNG plant??  As well Hession's only AHA moment as far as I could discern was the revealation of the $250,000,000 loan.  The rest of hs comments were affirmations of reports/comments in the public arena basically.

Thanks for that Tree.  The $250 million loan facility was the "shut-up" moment for shorts.  All we heard down the stretch was, "Yeah but they must be about out of cash.  The present loans are mostly for the refinery and downstream and given their past rate of cash burn they are running on fumes as far as cash goes.  And then there's the licenses.  And they aren't drilling because they don't have cash to drill.  Hession is probably ready to resign.  Sigh..........."

Not so fast my friend.