Two year anniversary

[Gator]

This weekend will mark the two year anniversary of the transformation deal that was going to maximize shareholder value for InterOil shareholders. The following is from the 2013 announcement.
http://www.interoil.com/investor-relations-news-and-press-releases/2013-2/interoil-selects-total-sa-for-png-gas-development/

 The agreement with Total provides for fixed and variable resource-based payments.

In addition to these fixed amounts, variable payments for amounts in excess of 3.5 Tcfe for the gas resource will depend on certification by two independent certifiers following up to three appraisal wells to be drilled in PRL15.

Total will carry the cost of the drilling for the appraisal well program. The program and certification of Elk-Antelope is expected to be completed in 2015.

Dr. Hession said today’s transformational, company-making transaction would significantly benefit InterOil shareholders and the Papua New Guinea people.

I find it amazing that we are now at the end of 2015 and we still need to drill (at least) two additional appraisal wells in PRL15 to know how much InterOil is to be paid.

I do hope the people of Papua New Guinea have benefited from this transaction.  Certainly shareholders have not as the price is down 57% since the deal was announced.
http://bigcharts.marketwatch.com/historical/default.asp?symb=ioc&closeDate=12%2F05%2F13&x=30&y=18

[jft310]

I agree it's been one long process longer than anyone expected . But how does your post help ??
Constantly beating the negative drum helps how ?? Makes one think with your Friday posts you are short covered calls trying to induce others to sell so your short calls expire worthless .
Isn't it better to look at the positives ???What have they proved out ???Is there any chance we don't have enough gas for more than 1 train today, etc etc .
Ant 7 has not been approved yet per public statements . So your statement saying 2 more wells are required is pure negative speculation on your part . Please provide a link to any public statement anywhere stating Ant 7 has been approved !!You can't I bet . So what's you motive ????
Ignoring the drop in oil prices and thus LNG prices has a bearing on the situation and why delays . If oil and LNG were robust in price and we had delays that a completely different situation than the current environment . But you know all this and yet continue with the negativity which helps your client portfolio holdings how ????

[jft310]

Dec. 4, 2015 8:36 a.m. ET

0 COMMENTS

TEHRAN—Some of the world’s biggest natural-gas producers are trying to seize on changes in how the fuel is bought and sold to create an OPEC-style group to influence prices.

Leaders of Nigeria and Algeria, at a recent forum in Tehran, said gas producers should come together and intervene in prices. Nigeria’s President Muhammadu Buhari called for “the formulation of a sustainable pricing mechanism that will guarantee fair and reasonable prices for both producers and consumers.”

Opening and shutting the spigots at relatively short notice to influence prices has been long-standing policy for the Organization of the Petroleum Exporting Countries, where most cargoes are sold on a spot basis. But such practice is a novel idea for gas producers, where individual long-term contracts dominate and therefore supply cannot be altered easily by coordinating producers

But that’s changing with the increasing role of short-term sales in liquefied-natural-gas. Last year, almost 30% of global liquefied natural gas was traded on a short-term basis, compared with 5% a decade ago, according to the U.S. Energy Information Administration.

“Long-term contracts with fixed prices [are] going to be abandoned,” Iran’s oil minister Bijan Zanganeh said at a gathering here of the Gas Exporting Countries Forum last week. The group’s members control two-third of global gas

The calls for intervention in the natural-gas market come as prices for the fuel have tanked. Asian LNG spot prices now stand at $7 per million British thermal units, compared with a record high of $20 in February 2014.

The slump has hit investments in the gas sector, Qatar’s oil minister Mohamed bin Saleh Al Sada told the forum. In January, Royal Dutch Shell PLC abandoned plans for a petrochemical project worth $6.5 billion in Qatar, a large gas producer.

But gas producers have cited generally sunnier outlooks for the fuel than other energy products.

The International Energy Agency expects natural gas demand to grow by an annual 1.4% through in the next 25 years—two-third of which will be LNG—compared with an annual 0.5% for oil.

Gas producers are hoping that governments impose new curbs on emissions that cut down on the use of coal and encourage the use of cleaner-burning gas for electricity consumption.

But there are hurdles to creating a cartel for natural gas.

First, two of the biggest natural gas producers—Russia and the U.S.—wouldn’t be involved.

[steve3752]

I agree it's been one long process longer than anyone expected . But how does your post help ?? Constantly beating the negative drum helps how ?? Makes one think with your Friday posts you are short covered calls trying to induce others to sell so your short calls expire worthless . Isn't it better to look at the positives ???What have they proved out ???Is there any chance we don't have enough gas for more than 1 train today, etc etc . Ant 7 has not been approved yet per public statements . So your statement saying 2 more wells are required is pure negative speculation on your part . Please provide a link to any public statement anywhere stating Ant 7 has been approved !!You can't I bet . So what's you motive ???? Ignoring the drop in oil prices and thus LNG prices has a bearing on the situation and why delays . If oil and LNG were robust in price and we had delays that a completely different situation than the current environment . But you know all this and yet continue with the negativity which helps your client portfolio holdings how ????

So anyone critical of management on this board gets accused of being a short?   I think he has the right to express his opinions without being accused of being a short.

[Gator]

How have any of your 7000+ posts help? What are your motives? Are you a paid pumper or just blind to the fact that this has been an epic failure on the part of current management to do the one and only thing that matters to this company and shareholders: GET PAID FOR THE ASSETS! With you (and management) it’s always perfect and someone else’s fault when thing go wrong. The board of directors should find a new CEO that can complete the task, but they won’t because they get free stock for doing nothing. The longer it drags on, the more shares they will collect. Hession has become a multimillionaire over the past 2 years, while shareholders have the stock cut in half under his watch. The stock has underperformed its peers even in a bad energy sector. Why? Because they have not done the one thing that matters, get paid. Delay after delay is standard for Hession. Didn’t he have the same problem at Woodside?
My motives are clear: I want a CEO that is help accountable. I have a fiduciary responsibility to my clients. My clients, my family and I have lost significant amounts of money and time waiting. Shareholders should be revolting against this company. Two years after this deal was announced, we still don’t know any of the two things that are vital to value this company: How much gas do we have, and when will we be paid for it?

[Getitrt2]

He is NOT just "expressing his opinions", which everyone knows ad nauseum. He is continuously bashing the Company and repeating the SAME INCOMPLETE AND DISTORTED claims and criticisms over and over. "Expected to be" is just that, not a promise, and he KNOWS the very significant effect the unavoidable rig problems at Ant 4 had on the schedule. Furthermore, finding much better than expected resource results from the appraisal wells, rather than as expected or worse, to such an extent that it justifies a sidetrack at Ant 4 and possibly an Ant 7 to confirm even much greater resources, is a HUGE positive for the Company, not a negative. He also should know that Hession's achievement of new financing and launch of the exploration program that saved the licenses in the Fall of 2013 was what drove the stock up to the level it reached pre-deal announcement he says he is measuring the decline from now, and is ignoring the misunderstanding and short attack that followed that and the huge effect of the collapse in oil and gas prices since then, and blaming it all on Hession. I am confident the Company and shareholders are much better off by having had him replace Mulacek.

I don't think I have ever known of anyone so irrationally stuck on or getting so much apparent enjoyment from "beating a dead horse", especially if it is supposedly contrary to his own interest, and not supportive of it, in the nature of the kind of activity IOC shorts engaged in for years, effective or not. I for one am damn tired of it, and damn tired of his wasting our time with it. I can find plenty of that on Yazoo, and I am beginning to think that is where Gator and his repetitive whining and abuse belong.

[Getitrt2]

I would also seriously question Gator's unsupported claim that, "The stock has underperformed its peers even in a bad energy sector", especially if he is using some index including huge service or integrated companies such as Exxon, Chevron, Schlumberger, etc. There are plenty of smaller or even medium size oil and gas companies that have done much worse than IOC.

[admin]

How have any of your 7000+ posts help? What are your motives? Are you a paid pumper or just blind to the fact that this has been an epic failure on the part of current management to do the one and only thing that matters to this company and shareholders: GET PAID FOR THE ASSETS! With you (and management) it’s always perfect and someone else’s fault when thing go wrong. The board of directors should find a new CEO that can complete the task, but they won’t because they get free stock for doing nothing.

1) Unfounded accusations that someone is short or a paid pumper don't help, quite the contrary.

2) Yea, get paid for their assets. Easier said than done. The company entered into an agreement with Total, and although I don't know whether there are any binding legal arguments time wise, but it certainly looks like the soft energy markets have robbed at least some sense of urgency. I'm not close enough to the situation, but an informed guess would be that there is a bit of give and take here, with Antelope 7 used as a handy valve to give Total some breeding space. This is speculation on my side, but I'm not the only one who has thought along these lines.

Alternatively, what do you suggest they do about it? A new CEO would do what exactly? I'm not sure there is any alternative to the present course, but I would like to be enlightened here.

[Getitrt2]

I am totally confident that IOC and the JV would not spend months and tens of millions of dollars on an Ant 7 for the purpose of delaying the contractual certification and payment requirements, and Total is easily capable of making those payments whenever they are due.

[admin]

I am totally confident that IOC and the JV would not spend months and tens of millions of dollars on an Ant 7 for the purpose of delaying the contractual certification and payment requirements, and Total is easily capable of making those payments whenever they are due.

I'm glad you're confident, but after such, in many views rather monumental payment, the next step would be FID. For that one would like to have at least some long-term delivery contracts in place, in order to get the financing going. The present LNG market is a pretty difficult beast to get such contracts at the moment, it seems to me. But again I'm speculating here, so don't take it too seriously. I don't enjoy your level of confidence.