Two year anniversary

[steve3752]

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.

[steve3752]

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.

What is not BS is this.  When Phil M was in charge both Getit and JFT never had one word of criticism of IOC management. After the fact, in hindsight, JFT has at times been critical of Phil M, but only after the fact.

The Board eventually fired Phil M.  Getit and JFT are doing the same thing again.  100% backing of the company and not willing to acknowledge any fault and worse yet challenging the motives of those critical of management.

Sad that we are all bickering when we all have the same goal.  This is what happens when there is repeated delay. It is time to deliver to give this company some credibility in the market.

[ArtM72]

Hession didn't deliver Browse despite all his hoopla. http://www.abc.net.au/news/2011-08-18/he...ty/2845258. As development manager for Woodside's North African and North American resources he didn't appear to have moved much forward. Woodside's history doesn't suggest any Hession legacy there. http://www.woodside.com.au/About-Us/Prof...mOkX1WrQiI Should be an interesting AGM.

Hession was given a great opportunity to succeed. Maybe an adjustment of his base is appropriate given his failure to deliver a single new field or meet any of his appraisal timelines. 2017 will be here before we know it.

Have to go back and read Hession's early profession of transparency and under promising and over delivering.

[ebster123]

Hession didn't deliver Browse despite all his hoopla. http://www.abc.net.au/news/2011-08-18/he...ty/2845258. As development manager for Woodside's North African and North American resources he didn't appear to have moved much forward. Woodside's history doesn't suggest any Hession legacy there. http://www.woodside.com.au/About-Us/Prof...mOkX1WrQiI Should be an interesting AGM. Hession was given a great opportunity to succeed. Maybe an adjustment of his base is appropriate given his failure to deliver a single new field or meet any of his appraisal timelines. 2017 will be here before we know it. Have to go back and read Hession's early profession of transparency and under promising and over delivering.

Art, the interesting thing to me about IOC is that if it were just a study project or only analysis situation it would be very very intriguing.  However, it is not only that, it is an investment for most of us.  Some were likely smart enough to sit on the sideline and wait to pounce.  I was not one of them, my fault I guess.  However, since 2009/2010 IOC has been a sad sad "investment".  MH came on like a night on a white horse.  He was to under promise and over deliver.  He seems to have done neither really at this point.  Again, this is an investment and a sad one at that.  For those who say, then sell and move on, good comeback.  That is evading the point.  We should have been getting the resource payment by now.  While we wait and lose value continually MH and the rest of his crew get lofty salaries.  Pathetic, MHO

[admin]

Sad that we are all bickering when we all have the same goal.  This is what happens when there is repeated delay. It is time to deliver to give this company some credibility in the market.

But do we even know why we have experienced these delays in the first place, and then what can be done about it? I think that's a much more productive line of inquiry than blanket blame of management because our share price is lingering and goals haven't been met.

While I don't write with any intention of absolving management from anything, I simply have no definite answers to these questions, only some stylized facts, like:

• We did have to drill with old rigs (to save licenses) and new crew
• We didn't have any experience in drilling so much at the same time
• It's a terrible environment for oil&gas companies

Feel free to add (or subtract)..

[sageo]

Sad that we are all bickering when we all have the same goal.  This is what happens when there is repeated delay. It is time to deliver to give this company some credibility in the market.

But do we even know why we have experienced these delays in the first place, and then what can be done about it? I think that's a much more productive line of inquiry than blanket blame of management because our share price is lingering and goals haven't been met.

While I don't write with any intention of absolving management from anything, I simply have no definite answers to these questions, only some stylized facts, like:

• We did have to drill with old rigs (to save licenses) and new crew
• We didn't have any experience in drilling so much at the same time
• It's a terrible environment for oil&gas companies

Feel free to add (or subtract)..

Admin - Thanks for beginning your thread with Steve 3752's closing sentence from his 1:28 pm post yesterday on "bickering". [ I guess one would expect this when frustrations are so high by many on our board ]. When the bickering is  accompanied by civility,I believe it is a little easier to digest.

Imho,your 3 points are well taken. I would like to add,(as you said we could do),that if our BOD would search for a way to reduce our quarterly expenses to 15 million per quarter from 25 million per quarter while our revenue is ZERO( as Staros mentioned in his post yesterday @3:45 am),then I believe we WOULD gain a little more credibility.

 Btw,as to your # 3 " terrible enviornment" , I did not want to believe it before,but I now believe that the current situation is going to last a bit longer than I first thought possible.( If the old ticker and body will last,maybe I will be around to see it ! )  Good luck to all ( sometimes exasperated) longs .

[admin]

Yes, thanks. I think the question on whether we can reduce operational cost is justified, especially in this environment. On the other hand, if I remember correctly Hession executed considerable cost cutting earlier, I'm not sure whether there is a whole lot to be cut, but I'm willing to be convinced.

The terrible oil, and especially, LNG environment partly explains the low stock price, but as I suggested earlier, it might also have sapped management (especially at Total) of a sense of urgency with regards to our LNG project. For instance, I think at present it could very well be a tall order to achieve offtake agreements, which is probably a crucial step moving forward (unlocking finance).

But I could be wrong here, this is rather speculative. I am not aware of any utterance of management, neither from IOC nor from Total suggesting they've lost some of the sense of urgency required to move forward.

[wapitidropiti]

Yes, thanks. I think the question on whether we can reduce operational cost is justified, especially in this environment. On the other hand, if I remember correctly Hession executed considerable cost cutting earlier, I'm not sure whether there is a whole lot to be cut, but I'm willing to be convinced.

The terrible oil, and especially, LNG environment partly explains the low stock price, but as I suggested earlier, it might also have sapped management (especially at Total) of a sense of urgency with regards to our LNG project. For instance, I think at present it could very well be a tall order to achieve offtake agreements, which is probably a crucial step moving forward (unlocking finance).

But I could be wrong here, this is rather speculative. I am not aware of any utterance of management, neither from IOC nor from Total suggesting they've lost some of the sense of urgency required to move forward.

I haven't heard any utterances either. But I don't have to hear. Actions speak louder than words. Total/IOC has gone in to slow motion mode. Where's our spud? Dec 31st just for appearances.

[Putncalls]

If an A6 and an A7 were needed for certification that should have been stated.

[ArtM72]

With the financial system awash with cash and interest rates even negative in some markets it is hard to imagine it isn't a time to line up banks anxious to support the development of among the most competitive LNG plants in the world.

With worldwide drilling services in depression and management's stated awareness of the the 20%+ savings available in contract services it is hard to imagine why IOC is not taking advantage of that situation other than a complete loss of control over appraisal and certification timing.

With gas prices at incredibly low levels it is hard to imaging NOCs and their long term obligations are not anxious to take advantage of today's market by inking deals for long term contracts.

When High Arctic's erection team poses for a "mission accomplished" photo at the Triceratops wellsite months before the well is spudded you have to wonder just where Hession's laser focus on discovery, appraisal and monetizing went wrong. He cut the distraction of the retail operation, the refinery, the construction group, the Board of Directors, the entire executive staff and responsibility for the LNG development.

Now the ONLY thing we have going is a long delayed Antelope 6, spudding still yet to be announced, and whose results appear more and more likely will only justify the siting of another well. Just how many kilometers of state of the art seismic surveys do we have, yet a wellsite for A7 is still a mystery?

So we wait as Hession pulls in his millions. Nice to have a hand picked and well paid Board of Directors when it comes to answering for one's accomplishments.