"Interim Resource Payment" Date

[Getitrt2]

Bottom line: a higher resource certification and payment to IOC, even if later by a few additional months, is almost certainly an extremely good thing for IOC, resulting in more cash, a higher stock price, more exploration later, a larger LNG project, and less debt otherwise, or in other words a more successful Company and stock.

[wapitidropiti]

Bottom line: a higher resource certification and payment to IOC, even if later by a few additional months, is almost certainly an extremely good thing for IOC, resulting in more cash, a higher stock price, more exploration later, a larger LNG project, and less debt otherwise, or in other words a more successful Company and stock.

Hi Getit,

I'm envious of your positive outlook on IOC. I,too, have been around a long time with a boatload of stock at a low cost but I am getting weary waiting for our day in the sun. I feel foolish even though I'm up on IOC.

Oppurtunities elsewhere are constantly reminding me to move on but I don't. I bet that I could name 25 astute investors that we have both known  through Yahoo and SHU that have moved on, So far they have proven to be the smart ones. I'l keep holding until we get some resolution on Elk/Antelope but I never dreamed that it would have tken this long. Monetizing a gas find has been done before in remote areas. Seven years and no FID is unbelievable.

[Gator]

Careful wapitidropiti,

Anything posted on this board that is less than 110% positive about IOC stock, InterOil corp, or InterOil management will get your branded as being a short by this sites most knowledgeable and accurate posters.

[CAC]

Getitrt2' Bottom line: a higher resource certification and payment to IOC, even if later by a few additional months, is almost certainly an extremely good thing for IOC, resulting in more cash, a higher stock price, more exploration later, a larger LNG project, and less debt otherwise, or in other words a more successful Company and stock. [/quote]

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You imply that those things must necessarily be mutually exclusive.  Some might think it reasonable to expect both a high resourse payment AND getting it accomplished within the time frame IOC management provided.  

[jft310]

Read up on E&P stocks drilling in a 3rd world country . See how many as in 100 percent encounter difficulty drilling wells many times . All Interoil did was provide estimates . Would you prefer they do not provide any estimates ?????Those are your choices none other exist either provide an estimate or provide nothing . There is no exactness ...
Waiting using PET's work will be extremely profitable . Could easily be Billion's.... So far a move from 7 T's to 10 T's and PET now thinks even bigger .
If the estimates were not increasing over time the complaint is valid when they adding Billion's in shareholder value granted over time well it's time to take up golf and come back later .,

[kommonsents]

Gotta get me some of those rose colored glasses and forget all this stuff about risk management and time value of money and even expectations of effective management looking out for shareholder value....

[CAC]

'jft310' --Read up on E&P stocks drilling in a 3rd world country . See how many as in 100 percent encounter difficulty drilling wells many times . All Interoil did was provide estimates . Would you prefer they do not provide any estimates ?????

*********

So, you're saying that I, as a layman, should "read up" and know that delays are to be expected...but Hesion is excused for not knowing the same thing, and not accounting for such knowledge in his timeline projections?  

[katytrader]

This ragging on about delays became tedious some time ago.   I assume Hession gave his best guess.  Had he given some sort of time band, complete with probabilities, he would have been criticized for giving fodder to the shorts based on the worst case.  In retrospect, Mulacek handled it well with the comment "how long is a piece of string?"   I don't recall that likely honest answer reflecting uncertainty being met with great approval.  fwiw

[jft310]

Facts are delays stink and are not welcome .
But the why - It's complicated .
Did Oil Search nonsense legal BS help??
Did the drop in oil and LNG prices help??
Did Total take their time ???
Did the drill bit encounter unforeseen things ?.
(Think planting a tree in your yard , in digging the hole sometimes you hit rocks , utility lines , construction debris , tree roots . It thus takes more time to dig the hole for your new tree. The same in drilling a well stuff down below is different than your best guess ))
Stinks but true .

[Gator]

JTF

You can’t have it both ways. You can’t call thing facts, just because you make them up.

Did Oil Search nonsense legal BS help??

Did InterOil not agree to sell 61.3% stake in Elk Antelope to Total and retain 30%? We know math is not your strong suit, but that 91.3% of E/A.  InterOil did not own 91.3% of Elk Antelope when they sold it to Total.  That is the cause of the “legal BS” not Oil Search, rather Hession not locking down the minority investors before he sold their stake. He agreed to sell something InterOil did not own.

Did the drop in oil and LNG prices help??

You have repeatedly posted that InterOil gets paid based upon volume of gas, not based upon the current price.  The deal is current market price agnostic.  The change in oil and LNG prices didn’t cause a delay.

Did Total take their time ???

You have repeatedly posted that Total has to follow the JVOA and can’t drag their feet or delay or cancel. Yet you post this as a fact causing the delay.

The facts are this:

23 months after the transformation deal (when payment was scheduled to be received) we still don’t know how much is down there.  You can quote Pet’s 1100 feet column of gas, but I don’t think he is one of the approved resource engineers.  Nobody knows after almost 2 years what or when InterOil is going to be paid.

You can say there are 10-12TCF in E/A and an additional 17TCF outside of E/A, but that is not a fact; that is an opinion. Obviously the share price does not agree with you. In the past 12 months (251 trading days) the median closing price is $45.90. In the past year there have been 65 days were the share price didn’t even get above $40.  The total volume on those sub $40 days was over 29 million shares.  There are a substantial number of new shareholders that would be quite happy to at least hear a takeover offer.  Don’t be so quick to dismiss the facts because they don’t agree with your opinion.