12-13-2013, 03:40 AM
'admin' pid='34144' datel Wrote:No, I really don't believe that, CAC. It's a bonus. Total bought 47.5% of PRL 15, including all undiscovered prospects. IOC keeps 30% (all after Govt buyin and IPI buyout). Total didn't have to reward IOC extra for any undiscovered gas (when it's discovered, hence Heisenberg's cat) or pay for an exploration well. But it's a bonus. It could add up if the find is significant, which they seem to think. But by far the largest pay-off from a new find in PRL 15 comes from IOC's 30% stake in PRL 15 and the LNG plant.
*********
Yep. Makes sense, Admin.
It might have helped the market's reaction for management to emphasize the 30% as a larger part of the consideration. I would have liked (and still would like) some detailed explanation of how they view the potential for the 30% to play out going forward. A statement in the cc indicating "the 100M per tcf may initially seem low in comparison to the $1.29 but it's a tradeoff we made to get 30% rather than 25% of the plant and we see much more long term value in that".