'will2bgreat' pid='68315' datel Wrote:Thanks everyone for a good discussion.
Let's be clear, there are no angels here. Phil could not cut a deal, and Mike cut the deal but can't seem to get it implemented (at least in a timely fashion).
Steve, I tend to think along your lines of thought concerning IOC but I think there is a reason why. From my POV, this discussion is happening because we do not have a clear vision from the current IOC management on where we are heading. Basically, we are walking into the abyss hand in hand and IOC management is saying, trust us. However, the trust factor is wearing thin, because of missed deadlines and lack of funds.
2126 and Kaliboo, while I do understand what you are saying, we must be realistic with our funds available. This was sort of like when my wife and I went house shopping; she showed me what she wanted, but I had to show her what we can afford. Kaliboo, your post about sharing work activities actually got me thinking if IOC can remain a seperate company. If our spend rate has to remain where it's at to develop Papau LNG (and I suspect go up), then maybe we should sell the company. And if that is the case, sooner is better than later.
Just my thougts.
I have always felt taking on an obligation to develop 8 million acres area in PNG was far far too much for a smaller capitalized company like IOC. Then it was cut to 4 million acres, ok but still way to big for ioc handle financially again. PNG also should not have allowed this ,but i guess ioc was the only taker tat the time. Realistically, IOC should have taken on much less license area and had the capital assembled or access to bring it to market. Now this surfaces, as it would have anyway imo, to stress the situation. I'm not sure, at this time, if IOC has the capital or access to be a partner in this LNG venture where they stand now. Therefore, ioc needs to be sold, sold down, or whatever to put them in the proper perspective capital wise to be there in the end. Something has to happen, hopefully a selldown or two if they prove more gas is there, which we all believe. But it takes big bucks to drill those wells and develop. Let's hope for the best,but since 7 years ago, I have felt the $400 figures would never come to pass. Time is money, and imo that $400 would dilute one way or another down to about a $ 125-150 per share figure at best......in the end . Now it seems ioc is at the mercy or good graces of Total. Let's see how it turns out......just my thoughts.