What is IOC's 30% LNG ownership worth?

[jft310]

I can assure you these former Woodside execs didn't leave a secure job at Woodside for Interoil to be unemployed 6-12 months later,
They want to drill and sell . They see IOC growing from a $3 Billion market cap to a $30 Billion market cap.
They want a part of that growth.
I can further state that the largest owners have zero interest in a low ball offer.Some were buying stock in the $90's.
Its like this you think your homes worth $100,000 and I knock on your door and offer you $10,000 cash today.
When you finish laughing you slam the door in my face.
Connect the Dots.

[sageo]

I can assure you these former Woodside execs didn't leave a secure job at Woodside for Interoil to be unemployed 6-12 months later, They want to drill and sell . They see IOC growing from a $3 Billion market cap to a $30 Billion market cap. They want a part of that growth. I can further state that the largest owners have zero interest in a low ball offer.Some were buying stock in the $90's. Its like this you think your homes worth $100,000 and I knock on your door and offer you $10,000 cash today. When you finish laughing you slam the door in my face. Connect the Dots.

jft- If this is all true (and I hope it is ),why isn't MH buying with both hands right now ?? ......or does he see a better price down the road? Just wondering .

[katytrader]

I can assure you these former Woodside execs didn't leave a secure job at Woodside for Interoil to be unemployed 6-12 months later, They want to drill and sell . They see IOC growing from a $3 Billion market cap to a $30 Billion market cap. They want a part of that growth. I can further state that the largest owners have zero interest in a low ball offer.Some were buying stock in the $90's. Its like this you think your homes worth $100,000 and I knock on your door and offer you $10,000 cash today. When you finish laughing you slam the door in my face. Connect the Dots.

jft- If this is all true (and I hope it is ),why isn't MH buying with both hands right now ?? ......or does he see a better price down the road? Just wondering .

I hope is waiting on "performance-based" options.

katytrader

[jft310]

Sageo- Wayne Andrews says it this way. Hession came to Interoil to grow the company from $3 Billion to $30 Billion market cap.  That's his hope.

Its reported that Hession gets paid to close a deal. Best use of that money to me would be Interoil stock. I did send an email to him and asked him to buy some stock when the stock was in the $40's. No reply Geez he may have more important things to do?? Ya think!! What is his personal situation?? Don't know..Will he buy don't know. Agree on performance based options.

[sageo]

Katy and jft= Guys ...thanks for your responses concerning MH's thinking. The options idea is certainly plausible.GLTY.

[mikesioc]

[quote='mikesioc' pid='36502' dateline='1390493802'] LNG is presently worth nothing. This has been the case since December 6th and IOC is ripe for a takeover by just about anyone and posted as such. Total has done the math and realizes they can lead a group to take the whole company cheap. $100-$120 gets it done, I believe. Why the sudden change of sentiment is my biggest question?

The 30% stake in the LNG plant values USB 7.5 B according to my calculation.

[/quote

I appreciate your thoughts and hope your best case comes true if an offer is not made at a reasonable price.  But the market presently values 30% at $0.  Total and everyone else has to see an opportunity to own it all at something more than what Total may owe in cash for 61% of PRL 15 but far less than what it might be worth in 6 or 7 years.  Whatever the result I am confident in a better result than where we are today.

[mikesioc]

I can assure you these former Woodside execs didn't leave a secure job at Woodside for Interoil to be unemployed 6-12 months later, They want to drill and sell . They see IOC growing from a $3 Billion market cap to a $30 Billion market cap. They want a part of that growth. I can further state that the largest owners have zero interest in a low ball offer.Some were buying stock in the $90's. Its like this you think your homes worth $100,000 and I knock on your door and offer you $10,000 cash today. When you finish laughing you slam the door in my face. Connect the Dots.

Not disputing what Hession and the C suite gents want. If a reasonable offer comes in Hession and his mates presumably would be able to drive the price up a bit and would surely see some benefit.  Anything is only worth what someone else is willing to pay for it.  If someone offered me $100 today for something that cost me $75 yet everyone else was only offering me $50, but it might be worth $200 in 6 or 7 years it seems quite reasonable to invite them in for a chat and try to make a deal. On the other hand if I tell them my $50 is really worth $500 and they take their $100 off the table and leave who is the loser?

[Relker]

At present the market value does not reflect the true value of the company. With all the license payments coming it must be possible to buyback some shares. I fancy that the new management is smart enough to make use of the present leverage effect. With a successful drilling programme a $ 30 B stock value is not a dream.

[jft310]

Relker- a monetized and multi certified 10 t asset is a big step forward. Clearly they believe they have more assets to prove out

or we would not have the drilling program of the size that's planned. Are there really 13 reefs on IOCs leases?

[mikesioc]

At present the market value does not reflect the true value of the company. With all the license payments coming it must be possible to buyback some shares. I fancy that the new management is smart enough to make use of the present leverage effect. With a successful drilling programme a $ 30 B stock value is not a dream.

Are you suggesting that a share buyback somehow increases the market capitalization?  $30 billion market cap is $613 per share.  A dream would be putting it kindly.  Tap the brakes.