New Update from Bernstein

[mikesioc]

Hession sure created a cluster by walking away from Exxon. As previously noted its evident we could have had two deals, one with Exxon for expansion and one with Total for "upside", had he not screwed everything up. We may yet end up with that result if everyone does the smart thing. All is well that ends well. Buyout offer should be better.

[jft310]

Dear Mike
Where do you get this stuff ?? It's clear you don't read research reports . Please put down your comic books!! Interoil is in the process not done yet of certifying enough gas for the Total plant
Today we don't have results from the new 8 wells to be or are being drilled wells . When those wells are complete we will know if we have enough gas for 2 plants . Today that's unknown therefore your statements are pure blue sky . Congrads !,,

[Getitrt2]

Hession sure created a cluster by walking away from Exxon. As previously noted its evident we could have had two deals, one with Exxon for expansion and one with Total for "upside", had he not screwed everything up. We may yet end up with that result if everyone does the smart thing. All is well that ends well. Buyout offer should be better.

This is some of the most false bs I've ever heard.  You are the one who's "screwed up".  Do we have a mole here, or just a "screwed up" jerk, to use his own language?  If this is deleted, his libel of IOC management that Bernstein is praising should be, too.

[Getitrt2]

The professionals at Bernstein obviously have an assessment of IOC personnel very different from that of Mikesioc. Per page 17:

"Over the past 12 months, we have seen a transformation above the ground at InterOil. There has been a substantial upgrading of the board and the executive and technical functions. There has been a change in management with Phil Mulacek departing as CEO and Michael Hessian stepping into the role in July 2013. Dr. Hessian brings international operating experience from BP and Woodside (ex-project leader of Browse). The recent appointment of Chris Finlayson as Chairman (ex-Chairman of BG) again highlights the fundamental changes in company management, which in our view gives InterOil far greater credibility with governments, partners, LNG buyers, and investors."

"During the visit to PNG, we were impressed with some of the new people InterOil have brought in at the operating level. Beyond a new CEO and Chairman, we continue to see substantive changes in personnel, with the Company increasingly being able to attract high quality and very credible individuals. While there are many to single out, Laurie Brown (ex-BP) brings added rigor to exploration, and Keli Taureka (ex-Chevron senior leadership roles) has built a very strong local team. The addition of Dave Kirk (developments, ex-BP), Tom Junker in drilling (ex-Apache) should help improve drilling performance, with Don Spector very capable as CFO. While there are others, the key point is that InterOil are building a very credible team for the next phase in the operation."

An incompetent CEO that "screws everything up" cannot attract and build that kind of organization and achieve that kind of credibility from highly knowledgeable industry professionals, lenders, etc. Furthermore, it is obvious to even me that no CEO could have struck an attractive deal for expansion with Exxon and also persuaded Total to buy into and commit to an LNG project for the leftovers. IMHO Mikesioc does not even come close to knowing what he's talking about, and every shareholder would be better off without his perpetual bs. I'm very tired of it, in case everyone cannot tell.

[Tree]

Attention Bernstein professionals, CEO's name is Hession not Hessian.

[Putncalls]

Spelling shmelling! The person who wrote the report can't speak english.

[Getitrt2]

Per Bernstein, pages 19 and 21:

"If however the resource base (2C) turns out to be greater than 7 TCF (as we believe is likely following new seismic data), investors can buy shares in InterOil today at a discount to what Oil Search and Total paid to farm-in to PRL 15. If for example revised 2C resources came in at 8 TCF(which is what is required for two trains of LNG), investors can purchase InterOil shares today at an incredible 40% discount to what Total or Oil Search paid to farm-in (again assuming zero value for IOC exploration acreage). At 9.1 TCF (current 2C resources) the discount is over 70%."

Bernstein currently calculates the Net Present Value of IOC, with highly risked minimal value for exploration assets, to be $120 per share, and discounts that by 25% to get to its current price target of $90 per share!

[Putncalls]

I think a value of 0 is given to non Antelope prospects.

[Palm]

Hession sure created a cluster by walking away from Exxon. As previously noted its evident we could have had two deals, one with Exxon for expansion and one with Total for "upside", had he not screwed everything up. We may yet end up with that result if everyone does the smart thing. All is well that ends well. Buyout offer should be better.

Yeah, that makes lots of sense.  Total would sit back and let Exxon take what they want for "expansion" (is that 1, 2 or 3 trains?) when up front they were all accepting 5Ts of gas until appraisal drilling could be completed.  And even then you are dealing with estimates.  SMs are not in the habit of letting the competition have first dibs and Exxon certainly would not be the nice guy and tell Total that for being nice they could have a 20% (or whatever) stake in PNG LNG just in case more gas is proven up.

You make less sense as you go Mike, which is normally the case with people posting just to stir things up.  Won't be long and you'll say something that will give STP no choice.

[ArtM72]

I think a value of 0 is given to non Antelope prospects.

I also thought it interesting in Exhibit 1 Page 4 the 493MMboe 2C number for IOC equates to 2.859 Tcf.  I'm sure this is a net to IOC number but is instructive when considering the high percentage ownership held by IOC in other prospects.

What I truly have loved so much about this report is the statement characterizing that damned/blessed Orubadi seal as "special" (Page 3).  Yes indeed.

So I guess Hession will have to make this all public in the CC.  Maybe he'll slip in a few more highlights.