Thinking About the IPI Buy In

[jft310]

IPI are basically a strategic partner with IOC and now TOT. Their interest will be purchased as they cannot/should not remain as continued funders of development and an LNG project. They have been negotiated with by IOC and their collective interest could be re-sold as the 19.3% interest which TOT plans to peddle to a strategic partner for development. Some are of opinion that the base line deal between IOC/TOT for IPI stake is shrewd and some IPI partners feel they can market that block to a qualified strategic at a higher price, thus, they keep the spread. Not likely in my mind and only sounds problematic. Hession said the IPI buy-out was 'neutral' and by marketing their stake as the strategic stake makes sense and funds that liability.

The company has always called the IPI transaction as neutral. that reason is because
They get more assets for the conversion.
Maybe this example will help . Assume as an example we have 19 percent IPI interest with issuance of example 19 percent more shares we get 19 percent more interest in the
Elk/Antelope fields . That's worth one heck of a lot more than the fixed buy out price
Of the IPI.One could market those shares to say Exxon for a sweet profit