OSH/PacLNG Deal Details Reported

[j4j]

(100-61.3-22.8)*(1-.25)= 11.925 Is this why the board has gone quiet?

As usual for ioc, all positive or non-negative aspects of any event are ignored.  Ioc avoids paying out $900 million plus to PAC LNG.  At one time dilution from that was a massive concern.  Gaffney cline comes in at 7 Tcf for E/A.  In the end the independent appraisers (and gf was considered tough) determine how much ioc gets paid for selling its e/a stake to total.

[ArtM72]

It seems this deal must have taken IOC by surprise. It would appear IOC's potential interest in Gulf LNG also dropped from 30%.

I fear Hession's buddies have bent us over and the current market price has now become damn near right. IOC's future is no longer what it has found but what it might find in the future, minus all the attorney's fees for stockholder suits.

Going a little less negative, a much better outcome would be for the Total acquisition be reduced by the OSH purchase percentage. That announcement should have been on the wires by now. If I were Total I'd say screw you, we have a deal.

[Movieguy]

I am sure IOC would come out with an announcement or press release, but Hession must be on a plane, as they were blindsided by this (OSH in a halt for 3 days) sudden OSH announcement.

[TxPm]

No offense Art but given your extreme negative bias I cant for the life of me understand why you are still invested in IOC. I can assure you IOC and MH were well aware of this transaction.

In other news now that the IPI partners are taken care of Id be curious to hear others thoughts on why Total doesnt just buy out all of IOC...they would have a clean partnership with OSH who they have been working with for some time now not only on PRL 15 but it sounds like possibly on all of the leases. The only downside to this is Total would have to fork out more Cash/shares now than later but they could probably buy IOC today for 1/2 what they will be able to in 12-18 months

[Tree]

This is a deal between OSH and the shareholders of PacLNG.  The only difference for IOC is perhaps a new read on the value of E/A.  It appears IOC's ownership of the resource is unchanged from yesterday.

I'd love to hear from IOC too, but what can they say?  Maybe that the IPI issue is settled?

Exactly right jimi.  I do not understand why SHU posters freak out today and not yesterday as IOC's PRL15 ownership % has not changed.

Now settled is IPI take-out and that was requirement to IOC/TOT closing.  Hession maintained the IPI transaction would be a pass through and it was.

At issue is about 2.5% which can be debated by us without any information as to the ultimate deal make-up between IOC/TOY/OSH/PNG.

IOC is not bent over a barrel as far as I can smell.

[ltinvest]

Art, do you live in Colorado or Washington, because then whatever you're smokin is legal. I find your posts unproductive and very frustrating. Let's stick to discussing facts such as Sams calculations & the increased valuation of all things PRL 15. Caught by surprise, are you freaking kidding me? Most ridiculous statement of 2014.

[Palm]

My take is that the 22.835% that OSH is buying makes them the strategic partner formerly coming in at 19.6%. So the difference to be clarified is that; approx 3.25%. IOC MUST come out with a very clear PR and/or halt trading until they can do so. Seems they should have had something ready and out by now.

[Movieguy]

My take is that the 22.835% that OSH is buying makes them the strategic partner formerly coming in at 19.6%. So the difference to be clarified is that; approx 3.25%. IOC MUST come out with a very clear PR and/or halt trading until they can do so. Seems they should have had something ready and out by now.

Exactly right, Palm!  Where is the "new" Interoil?

[trans]

I will put my guess in here.  I see PNG 22.5 %, OSH 19.3%, TOT 32.5 to 35 %, and IOC 23.2 to 25.% .  That NETS all out instead of mixing gross and net.  IMO, from a T/A standpoint, I would expect max correction here 53-54, but more likely 55-56.  If the lower, imo the price won't stay down there very long.  I base this on a normal 3 to 5 day UP field (daily).  IOC topped at 59.78 on fourth day.   Normal correction would be 2nd day reaction low from high, which would be today's low, or possibly modestly lower tomorrow from today's low.  all for what its worth, but the situation looks more neutral to positive than anything.

[steve3752]

The point is that originally it was thought that IOC would retain 30% and have to pay the IPI investors out of pocket.

Now Oilsearch will own 22.385 %.  Meaning  IOC still does not own 100%.  Sure they do not owe IPI.  But they own 77.615% before selling 61.3% to Total.

That leaves 16.319 before any government buy in the way I see it.

If the government buys in 22.5% that leaves 12.644.

Just my opinion.