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Spoke to mgt this AM
They are making good progress with the minority . The purpose of the last Presser was let all know it will all close by the end of
March . To close then requires an earlier announcement. The minority will get upside with more found assets
The 50 percent interest buy in from the govt is off the table. They are not interested nor do they have the money.
Still 2 things for a Total close . Same as before
All 3 wells should spud before end of March.
As to Presser they have taken the shackles off IR and future Pressers will be like
the last Presser . More transparent and full of desirable information.
Total is excited.
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"The purpose of the last Presser was let all know it will all close by the end of March"
The purpose of the PR was to let all know that the plan is still to try and close by the end of 1Q14 per the presentation, management's comments since that presentation and yesterday's PR. But for those wanting to pin dates to the wall they should instead be looking at 2 further down the road and filed with the SEC as part of the SPA:
1. "6 months from the signing" of the SPA; defined as the "Cut-off Date", meaning June 6, 2014. This is when the appropriate share of of PRL 15 must be transferred to Total; a condition of closing. And if they get to June 6th and the transfer hasn't taken place (among other things), they will then decide together whether any roadblocks can be cleared to be able for the transfer to take place. If not, the SPA can be terminated, or they can agree on a new date (ie "move the goal posts").
2. "12 months" after the date of signing the SPA; December 6, 2014. The parties to the agreement recognize that "game conditions" can and do change (often beyond their control) and have another set of goal posts on a longer field that extends to December 6, 2014. These goal posts are probably not as much on wheels as others to this point. But they aren't set in concrete 100' deep either (how dare them!!). That clause, 2.5 (d) actually has the wording "or such later date as the parties may agree in writing"!!!
Stop the madness! Or just set your sights according to the SPA and realize that certain "game" conditions, rules, players, weather and guys in zebra stripes just could cause things to go into 12 or more overtimes. But they still are playing the game with hopes of just playing the game within regulation. If you have tickets to this "game" you know it could be ended at half-time if all agree, but you may have to decide to leave after regulation, or any overtime. Or "Heidi" could suddenly pop up and change everything.
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I haven't heard a "Heidi game" reference in ages Palm. I think it is important to point out again that Duma is on record as wanting to fast track this project. Just because we don't hear something every day, which is our desire as shareholders with a stake in this game, doesn't mean things are not progressing. Let's face it, we live in an instant gratification world and are somewhat conditioned to getting everything NOW NOW NOW! I am confident Hession and his team are doing their job, and I would disagree with some who believe that they owe us an update daily. That is not to be critical at all of those wanting PR, I do as well. But they have a job to do, and for me there is no reason to believe it is not being done, and done with the best interests of the company and shareholders in mind. A nice balance of PR and news moving forward would be great, but we have to be patient, which I know all are likely tired of hearing, with years in this investment.
Good luck longs
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Is anyone concerned about the concept of the minority receiving part of the upside from new drilling as was just stated?
Unless they contribute to the new drilling, why would they be entitled to any share in new drilling?
I am missing something? It would seem they own what they paid into and what has been found to date.
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'steve3752' pid='36835' datel Wrote:
Is anyone concerned about the concept of the minority receiving part of the upside from new drilling as was just stated?
Unless they contribute to the new drilling, why would they be entitled to any share in new drilling?
I am missing something? It would seem they own what they paid into and what has been found to date.
I'm not concerned.
TOT is providing IOC/PAC LNG/IPI recertification drilling as well as a 'wild card' well chosen by IOC/PAC LNG/IPI.
It makes sense PAC LNG/IPI should maintain their % of upside if they sell out today.
I would expect PAC LNG/IPI to receive the sameish deal that IOC has with TOT, and possibly a premium to that deal.
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'steve3752' pid='36835' datel Wrote:
Is anyone concerned about the concept of the minority receiving part of the upside from new drilling as was just stated?
Unless they contribute to the new drilling, why would they be entitled to any share in new drilling?
I am missing something? It would seem they own what they paid into and what has been found to date.
You're answering your own question. If they are IPI investors in PRL 15 and/or other license areas at the time of spudding, they will have cash calls for their portion. BUt don't forget also that some of these IPI investors were part of a group who fronted monies years ago toward drilling. Either way, they pay their share as long as they are still on the license, and they likely can participate in any upside. But we don't know anywhere close to enough of what has transpired in these negotiations since Dec 6th because "negotiations will not be carried out in a public forum". So let's just let them conclude the negotiations and not assume that everyone wins except IOC shareholders in all deals.
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Palm: I thought the goal was to get rid of them ie get them off the licences. Sounds like that idea is going by the wayside. I understand if they are on the licences they will get cash calls. Again, I thought the idea was to get them off the licences.
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01-31-2014, 01:35 AM
(This post was last modified: 01-31-2014, 01:47 AM by Palm.)
It is. But until that happens the spudding is also in the plan. Don't forget some of the IPI investors in PRL 15 are also IPI investors in the other license areas. So how do you think negotiating goes with someone who is an IPI investor in 236 (Wahoo), 237 (Raptor), 238 (Bobcat), PRL 15 (Antelope Deep), PRL 39 (Tri) and you are "holding out" on your PRL 15 piece? You start getting cash calls on several other wells even though you have some "pay day" coming on PRL 15. It's part of the negotiation process as well as the overall deal process as well as the license extension process. Negotiating; that's what has been going on since Dec 6th at least.
Let's let the process happen. Besides, per the SPA Total can waive the settling of the PRL 15 PacLNG Interests as a condition to closing. And meanwhile the drill bits are turning and the cash calls keep coming on many many wells in the next 12-15 months. And if you look at the chart on IOC's website showing ownership in the PPLs, the IPI investors own a higher % of 236 than they do in other license areas. Wahoo is an exciting prospect, but a more expensive one for them.
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'jft310' pid='36825' dateline='<a href="tel:1391089 Wrote:
Spoke to mgt this AM
They are making good progress with the minority . The purpose of the last Presser was let all know it will all close by the end of
March . To close then requires an earlier announcement. The minority will get upside with more found assets
The 50 percent interest buy in from the govt is off the table. They are not interested nor do they have the money.
Still 2 things for a Total close . Same as before
All 3 wells should spud before end of March.
As to Presser they have taken the shackles off IR and future Pressers will be like
the last Presser . More transparent and full of desirable information.
Total is excited.
JFT, I expected such from the recent PR but great to hear it from the horse's mouth. Nice job, thanks!!
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