Thoughts on Conference calll

[Rob Cos]

So are we not overdue for some drilling results - anyone have any thoughts on what to expect from Hession on conference call

Imagine the company cannot buyback stock now into call (earnings blackout) - the good news is I think day after call they can buy stock

[Movieguy]

I think the days of expecting meaningful news on a CC (or even the AGM) are gone. We are drilling 2 wells, possibly re-starting a 3rd, and we are involved in the OSH arbitration. There are also likely other things going on we don't know about. Thus we can expect news at anytime on anything. This news may come the day before or day of the CC, but I do not think IOC under Hession is holding news to announce on a CC. Of course, they always add some color on matters like drilling, etc., so the call will be worthwhile, but I don't think we should expect anything major.

[jft310]

I think well news will be separate from the earnings call. Most likely before.

[Getitrt2]

I basically agree, Movieguy.

Rob, regarding "earnings blackout", I am not sure about this, but I doubt that is applicable for a stock buyback program being handled by Macquarie.

[johnwgrant]

I think well news will be separate from the earnings call. Most likely before.

Far be it for me to be skeptical - but you are basically saying that we get well news in the next 3 business days...    That is a very small window of time.   After all this waiting, why do you think that well news is imminent?!?!

(Please be right, please be right, please be right, ....)

[jft310]

They are drilling and material news as defined by mgt needs to be released in a timely basis.

[CAC]

'Movieguy -- I think the days of expecting meaningful news on a CC (or even the AGM) are gone. We are drilling 2 wells, possibly re-starting a 3rd, and we are involved in the OSH arbitration. There are also likely other things going on we don't know about. Thus we can expect news at anytime on anything. This news may come the day before or day of the CC, but I do not think IOC under Hession is holding news to announce on a CC. Of course, they always add some color on matters like drilling, etc., so the call will be worthwhile, but I don't think we should expect anything major.

*********

Agreed.  I would like someone to ask them about the timing of the employment ad.  I can't conclude, like some have, that the ad tells us nothing about how the other two wells are progressing.  Some posters have theorized that it is to be expected that IOC would need this type of expertise with several wells in the works.  However, if that were all it was, then I would have expected that they would have had him/her onboard from the very beginning of the drilling campaign.  They didn't.  To me, the ad indicates they now need something they didn't know they were going to need.  

So, my line of inquiry would be pointed towards determining whether the newly needed expertise is just for Wahoo...or whether it might be related to similar high pressure issues at the other two wells.      

[hudsojo]

I basically agree, Movieguy. Rob, regarding "earnings blackout", I am not sure about this, but I doubt that is applicable for a stock buyback program being handled by Macquarie.

I believe Rob is correct about not being able to repurchase shares during an earnings blackout.  As noted below, companies are the “ultimate” insiders and an impending earnings release constitutes material, non-public information.  Acting on that information prior to its becoming public – even if done within a 10b5 program – is ill advised.

Here is what Skadden Arps has to say on share repurchase programs.

http://www.skadden.com/newsletters/Corporate_Finance_Alert_Share_Repurchases.pdf

What steps can a company take in order to avoid liability for insider trading?

A company is the “ultimate” insider and therefore, concerns about purchasing shares while in possession of material non-public information are magnified. If any director, officer or employee of the company is in possession of material, non-public information about the company, the company should not be repurchasing shares. If the company does not possess material non-public information, one step that the company can take in order to protect itself with respect to repurchases in the future is to implement a Rule 10b5-1 trading plan. If the company is repurchasing outside of a Rule 10b5-1 trading plan, it should limit its purchases to open window periods when officers and directors are able to buy and sell securities of the company.

hudsojo

[Rob Cos]

I basically agree, Movieguy. Rob, regarding "earnings blackout", I am not sure about this, but I doubt that is applicable for a stock buyback program being handled by Macquarie.

^{I'm an ex CEO and CFO and clearly there are earnings blackout UNLESS there is a preplanned 10b5-1 stock buyback plan filed in advance - such plans can include buys of xx shares every day or buys on specific days selected months before or for instance shares bought with a matrix of $ delcline or % decline in stock price in a day  - successive days - week (however you set it up)...once that plan is in place it cannot change repeatedly....I doubt that IOC has a plan in place yet unless that was part of the initial set up - with only $50 million I suspect they buy on dips during non-blackout periods....I would be happy if they were sophisticated enough to have set up a preplanned buyback strategy even in blackout periods - but I doubt it.}

^{Would be a good question for the company if anyone is talking to them anytime soon.}

[ArtM72]

" To me, the ad indicates they now need something they didn't know they were going to need.    "

It seems very possible that they have found one or more very promising fields where the drillers are encountering these expansive clays.   It only makes sense to bring someone in with the necessary experience to provide leadership in handling these drilling programs.  This would be especially true if  Wahoo or others reach "discovery" classification where a series of appraisal and hopefully ultimately production wells will be needed.