'johnwgrant' pid='65053' datel Wrote:This is an old thought/thread, but, at what point does TOTAL have enough information that their own internal reservoir engineers can calculate the approximate size (TCFe) of PRL15? When the TOTAL accountants do the simple math that calculates the amount TOTAL will need to pay InterOil, it seems that TOTAL management is going to be in a great position (for them!) -- that is, they will be able to buy the whole company for essentially the same cash that is due to InterOil at certification !!!! That is crazy!!! None of the other prospects or 30% of the LNG plant (yet to be FID'd or built) have any value !?!? All I can say is this is a clear example why a well-funded major oil company (like TOTAL) will be able to make a killing when the cycle turns.
With all due respect, this entire comment is not only "old" and repetitive, and previously addressed, but unbelievably ridiculous, imho.
The SPA contract appropriately requires INDEPENDENT calculation and certification, and Total is certainly NOT independent. Furthermore, such independent resource engineers are likely to require more factual and dependable information than an internal engineer making an estimate, before they sign their names to a certification reflecting their professional and legal responsibilities, thus part of the potential need for more drilling.
The idea/opinion that after certification Total "will be able to buy the whole company for essentially the same cash that is due to InterOil at certification" is just totally and absolutely WRONG!!! That is currently an unknown not reflected in the stock price, at least almost certainly not fully, but it is a legal liability of Total to IOC. If Total wants to buy IOC, they would have to offer a price that would cover 100% of that cash plus the value of all other assets of the Company less liabilities, including the interest in PRL 15 and Papua LNG, other discovered resources, prospective resources and related licenses, etc.