What is IOC's 30% LNG ownership worth?

[kerekesc]

Relker

We have 2 reefs confirmed by the drill bit. Both have fish bones and shell pieces. In the past the Board engineers have looked

at the IOC information and think we might have a total of 13 reefs. Has to be one of the reasons for all this drilling.  More

assets found yields a larger LNG plant maybe. Might yield us a seperate deal within Exxon at Tricefatops that was discussed

on the roadshow.

Lets drill ahead now!

At present the market value does not reflect the true value of the company. With all the license payments coming it must be possible to buyback some shares. I fancy that the new management is smart enough to make use of the present leverage effect. With a successful drilling programme a $ 30 B stock value is not a dream.

Are you suggesting that a share buyback somehow increases the market capitalization?  $30 billion market cap is $613 per share.  A dream would be putting it kindly.  Tap the brakes.

Woodside has a net income amounting to $ 3 B. Based on a PE of 10 the marketvalue is $ 30 B. The 30% stake in PRL 15 will yield IOC approx $1.5 B net income based on 2 trains. It is not unlikely that the string of pearls outside PRL15 will generate 2 extra trains.

Woodside has been delivering gas since 1984.  Giant leap to assume IOC gets to $30 billion in the next 20 years.  If we can replicate Oil Search over the next 7 years that's a reasonable expectation.

I don't believe a company's share price is significantly influenced by the fact that it has been delivering gas in the past.  IOC's share price will be influenced by the facts of proving reserves and proving that it can get those reserves to the market.  The more it proves, the higher the share price.  Therefore, yes, IOC has the potential to be valued at $30 billion....and it will not take 20 years!