OSH Q4 Report 1/28/14

[jdeo1969]

Palm and LT, very informative discussion from you both as well as Tree.

Thanks for filling in the blanks.

Good luck longs

[Getitrt2]

In my opinion, OSH being in "discussions" with Total/IOC means little. XOM was in EXCLUSIVE NEGOTIATIONS with IOC, and we got an IOC-Total deal. I also doubt it has anything to do with PNG LNG, but just a great investment for OSH if they can get a piece. Really, how many opportunities of that nature could OSH get access to? It only makes sense to me for ALL gas and infrastructure in PRL 15, except some PNG might want to divert for domestic use, to be devoted to the LNG project to be built for it, even if that requires expansion, which would make it even more profitable. If XOM still wants gas from IOC, IOC should offer to sell them some from Triceratops or Wahoo, etc., IF the price is right. It might be typical for a company like Total to spread the risk by selling part of a 47.5% project stake, but in my opinion bringing in OSH would increase the risk! I see no reason for IOC to sell any of its 30% stake to OSH or anyone, except in the probably unlikely event they can't provide enough capital for their share. I would say any new partner will be the one that is willing to pay the highest price and/or provide other valuable benefits, such as lower cost financing a Japex could perhaps bring in. If that is OSH, then fine.