Two year anniversary

[admin]

Ok, I got that point. So we fire Hession. And then what? Will that speed things up?

[Getitrt2]

This is an old thought/thread, but, at what point does TOTAL have enough information that their own internal reservoir engineers can calculate the approximate size (TCFe) of PRL15? When the TOTAL accountants do the simple math that calculates the amount TOTAL will need to pay InterOil, it seems that TOTAL management is going to be in a great position (for them!) -- that is, they will be able to buy the whole company for essentially the same cash that is due to InterOil at certification !!!! That is crazy!!! None of the other prospects or 30% of the LNG plant (yet to be FID'd or built) have any value !?!? All I can say is this is a clear example why a well-funded major oil company (like TOTAL) will be able to make a killing when the cycle turns.

John - Thanks for your post. You are 100% correct ! In the coming years,when our reserves( yes,they are called reserves by me and others),are taken out of the ground, Total  "WILL make a killing" . We will probably get what "the little boy shot at". Hope I am still arond to see how this sad drama plays out. [ ....am just too old and stubborn to get out now].  Best to you .

I do not get your seemingly negative assessment AT ALL!!  Grant was apparently saying Total would be able to buy all of IOC on the cheap using the certification as part of the payment.  GIVE ME A BREAK!  You are agreeing with that?!!  Surely, you are not.  Furthermore, IOC, having discovered E/A at its cost and sold part interest to Total, will get more cash from E/A relative to ownership than Total, a combination of the resource payments and the same production revenue and cash per unit of ownership from E/A as Total.  Keep in mind this applies to E/A, not PRL 15.  IOC will not get resource payments outside E/A, except for limited bonus payments for Antelope South.  However, for resources outside E/A, IOC will also get the same production revenue and cash per unit of ownership as Total.  Why is this scenario a "sad drama" for IOC?

[Putncalls]

Management has not been forthright. To some of us, that's wrong.

[sageo]

Ok, I got that point. So we fire Hession. And then what? Will that speed things up?

 Admin - Who knows ? I darn sure don't ! [ As usual, "only the Shadow knows" .....and unfortunately,he ain't talking ] . We wait ...some more ( I'm getting to hate that word "wait or waiting". Oh well,que sera,sera. PS..I hope the old saying is true..."good things come to those who wait" .

[admin]

Ok, I got that point. So we fire Hession. And then what? Will that speed things up?

 Admin - Who knows ? I darn sure don't ! [ As usual, "only the Shadow knows" .....and unfortunately,he ain't talking ] . We wait ...some more ( I'm getting to hate that word "wait or waiting". Oh well,que sera,sera. PS..I hope the old saying is true..."good things come to those who wait" .

To be honest, I think the action is elsewhere, for now. Energy markets are in real flux, and this has more influence over the stock price (which is why I started that OPEC thread) and it also affects our business prospects. Whatever you think of OPEC, or the climate theme, there are facts on the ground that deeply affect our business. Add to that the shale revolution (which I really underestimated I have to admit), the steep price falls in alternatives (which I saw coming from afar) and the slowdown in China and you have a situation in flux (one can add ME instability, but this has always been a theme).

Oil might recover as exploration and investment are curtailed, but then again it will be affected by climate initiatives and the rise of alternatives. The problem with LNG plant is that they are mostly fixed cost and need a considerable degree of predictability, which simply isn't there at the moment.

[Gator]

It might if we get someone who can execute. We are not just talking about time to certification, but time to first gas. How many thing can go wrong over the next 4-5 years if this InterOil management team has been delayed by 12 months over events in the past 5 months? June thing were OK, the end was in sight and the stock went to $60. Two months later, (two delays) later we were close to $30. What happened. Wall Street lost confidence that Hession can execute in a timely manner.

[Getitrt2]

It might if we get someone who can execute. We are not just talking about time to certification, but time to first gas. How many thing can go wrong over the next 4-5 years if this InterOil management team has been delayed by 12 months over events in the past 5 months? June thing were OK, the end was in sight and the stock went to $60. Two months later, (two delays) later we were close to $30. What happened. Wall Street lost confidence that Hession can execute in a timely manner.

More distorted BS.  You're assuming 12 months based on Ant 7, which has not even been decided yet, and would be a rational CHOICE based on likely high reward.  Most volatility this year has been related to great Ant 5 results and oil price volatility.

[Getitrt2]

Management has not been forthright. To some of us, that's wrong.

What have they "not been forthright" about, or are you just talking about not disclosing things as quickly as you would like?

[Getitrt2]

My question is simply what do you suggest the company does about the situation?

When a sports team consistently misses the playoffs, they fire the coach. When a company consistently misses the payoff, they should fire the CEO. Hession has lost all credibility with Wall Street. On March 17, 2015 InterOil published this timeline.

On May 12, 2015 they didn’t change any time table.

June 9, 2015 we hear for the first time about a 1 quarter delay.

August 13, 2015 the certification is now “mid-year” 2016 and Hession wouldn’t commit to June 2016.

November 13, 2015 InterOil is “Fully focused” on certification in 2016.

November 18, 2015 IOC said “The joint venture is also considering an additional appraisal well on the western flank of the Antelope field”

November 23, 2015 Oil Search also mentions Antelope 7 (proposed).

In the March presentation, InterOil states they were planning to drill as many as 8 wells in 2015 with 5 rigs. If they had the rigs and the money why are they so far behind? It has nothing to do with the price of oil, LNG or tea in China; Mismanagement.

As of Dec 31, 2015, they will have completed drilling and testing all of those eight wells listed on the left, except for Antelope South and Antelope 6, of which Ant 6 will be underway, plus they will have completed drilling and testing an Ant 4 Side Track, and will be down to two rigs on long-term leases efficient enough for effective use, which this management brought in with good foresight.  I say real progress way above anything in the previous history of the Company.

I say your sports team comparison is inappropriate and irrelevant, the Company has not "missed" any "payoffs", CEO Hession has NOT "lost all credibility with Wall Street" and in fact has created more credibility for the Company than ever before, and your conclusion is more BS.

[ebster123]

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.

********

The reason I would not suspect Gator of being a short is because I am not a short...and I feel the exact same way he does.  At some point, the excuse-making should be set-aside.  At some point, a pass-fail system (based only on share price) is appropriate.  The question isn't "what good does criticism do?"...the question is "has IOC management passed or failed?"  

I have to agree, there has been absolutely no increase in shareholder value.  The stock movement has been horrible....period.  MH and crew seem to have found increased underground potential assets but have done nothing to help the stock price....period.  All can give statements or excuses in support of what has been achieved but there is still no increase in shareholder value over the two years....period.  They should be held accountable....period.  MHO