'UncleT' pid='71205' datel Wrote:Since you have been so vocal about the deal. My question to you is how do the numbers work? A7 is being drilled. Cert payment isn't for another year (generously 1.5 years behind schedule). How do we finance the next year, our portion of a plant, and exploration costs on raptor, bobcat, wahoo, triceratops, antelope south, or anything else?
I agree this deal doesn't smell right. However, I could use a little more hard facts on how exactly IOC can monetize it's assets and last through 2023 when they finally become a company with cash flows.
There is no doubt in my mind Phil Mulacek can run this organization on a shoestring. He has done it in the past and if it takes several years to farm down IOC PPLs because of lack of funds, so be it. IOC will need to go into hibernation if the certification payment is small.
It has become clear that it was Hession who demanded drilling of A7 which sets the certification back, not TOT, not OSH. Further, drilling A7 will drain the remaining cash from IOC coffers. Maybe Mulacek's first move as CEO would be to halt work on A7 if at all possible. With not one but two long term flow tests in addition to six appraisal wells in this "High Darcy" formation I never could understand the rational for pushing the certification back. Now I see a whole host of other nefarious actions being revealed which at best can be interpreted as simple cover up of extraordinary incompetence. At worst, felony.
For OSH's part it continues to seem most plausible that IOC assets were the only thing that Botten could grab and still keep gas starved OSH afloat.