A message from a close friend of mine.....

[freddiekingman]

A full year and a half ago I voluntarily departed shu as a result of some differences I had with a few that became upset with me because I was told I was too focused on the share price. At that time the pps was around 62. I agreed to log off and cause not problems, it is evidenced by my last post and anyone can look it up. I post this for a completely different reason and purpose. By the site name shareholders are supposed to unite but the posts are to the contrary. Now shareholders disagree with either Hession or Phil position. Regardless of who the members support there is agreement on one thing. The current leadership of IOC refuses to buy shares on the open market most notably Hession. Don't think that your message board is not monitored by management. It most certainly is. Not if you would all band together and demand management start buying shares on the open market we might see the pps rise. Will one of you please lead and get the ball rolling. This is the perfect time with AGM coming and proxy war looming. Don't make the false choice of having to choose between Hession and Phil. Choose your wallet instead.

Signed..libtardius maximus

[Tree]

While we're at it, here's what a close friend texted me (I've even met this close friend).: Suggestion: someone start a new thread titled: Useless Whining About Hession's Salary. This way, ____and ____can post all they want about it there without cluttering the other threads. "

[kommonsents]

As I said recently in another post, why blame MH, the PSO?  He is playing by the rules set up by the BOD.

Blame the BOD who rightly deserves the blame for how IOC is run, IMHO.

Install a change in BOD that will reflect shareholder values and will direct the PSO to the benefit of the SH as well as change how the PSO is compensated.  I don't think it is the amount of compensation we are complaining, but how determined.  If it was based on the performance of IOC and reflected in the pps, we would not be having this discussion.

At least, that's the way it looks from here.

[jft310]

So I ask the simple questions
Is Interoil trying to become an LNG plant owner ??To produce LNG .
A simple yes or no will do
Is LNG priced off of oil prices ?
A simple yes or no will do
Have multiple LNG projects been cancelled because of the drop in LNG prices ?
A simple yes or no will do
If the price of oil falls over 80 percent is it fair to compare or not fair to compare your future product price to sell with the underlying commodity ?
A simple yes or no will do
Does Interoil operate in a vacuum ??Insulated from fluctuations in the price of oil . !
A simple yes or no will do

[Tusker]

Given the MD&A for 1st Qtr, it does appear that the officers of IOC are quite happy to put the blame on the BOD.

See section on the "Buy Back"

No mention that the CEO put forward the proposal. Just that the BOD approved it.

Don't know how it would be possible, to be more explicite than that written sentence, in conveying the self serving.

[Indoreservoir]

So I ask the simple questions Is Interoil trying to become an LNG plant owner ??To produce LNG . A simple yes or no will do Is LNG priced off of oil prices ? A simple yes or no will do Have multiple LNG projects been cancelled because of the drop in LNG prices ? A simple yes or no will do If the price of oil falls over 80 percent is it fair to compare or not fair to compare your future product price to sell with the underlying commodity ? A simple yes or no will do Does Interoil operate in a vacuum ??Insulated from fluctuations in the price of oil . ! A simple yes or no will do

jft - look at the graph on page 57 of the 2016 MIC, showing how well we've done relative to other oil and gas companies.

[jft310]

One must compare apples to apples . Interoil today is a Junior oil company . Look at the the recent changes bankruptcies of other Junior oil companies . Like Ultra Petrol etc . Without a Total deal we would have no licenses , Phil put us in that box . Total gave us a great deal and $400 million upfront . Might we should have asked for more ?? Selling the refinery had good timing also . Removed debt and we got a then fair price . Puma has major issues today because the math doesn't work with low oil prices on our refinery . We avoided that made it Puma's problem . Total is completely in charge of appraisal and the timing of the first payment .Also OSH cost us time over 12 months . Phil printed money at every chance . Issued more shares , so far we have been spared that with this management team .Thats how junior oil companies get money , they raise money then sell off some holdings and monetize the balance . The drop in the price of oil has 100 percent affected the timing of our appraisal . Only the most naive would not admit that . If they drill 7 that's it before our payday . Don't like it but other parts of the Total deal make up for it like getting paid twice . Phil never dreamed about getting paid twice .

Hession may be over paid but he had no control over the price of oil, price of LNG , OSH lawsuit .etc. All those things matter when building an LNG plant with a Super Major .

[Indoreservoir]

One must compare apples to apples . Interoil today is a Junior oil company . Look at the the recent changes bankruptcies of other Junior oil companies . Like Ultra Petrol etc . Without a Total deal we would have no licenses , Phil put us in that box . Total gave us a great deal and $400 million upfront . Might we should have asked for more ?? Selling the refinery had good timing also . Removed debt and we got a then fair price . Puma has major issues today because the math doesn't work with low oil prices on our refinery . We avoided that made it Puma's problem . Total is completely in charge of appraisal and the timing of the first payment .Also OSH cost us time over 12 months . Phil printed money at every chance . Issued more shares , so far we have been spared that with this management team .Thats how junior oil companies get money , they raise money then sell off some holdings and monetize the balance . The drop in the price of oil has 100 percent affected the timing of our appraisal . Only the most naive would not admit that . If they drill 7 that's it before our payday . Don't like it but other parts of the Total deal make up for it like getting paid twice . Phil never dreamed about getting paid twice .

Hession may be over paid but he had no control over the price of oil, price of LNG , OSH lawsuit .etc. All those things matter when building an LNG plant with a Super Major .

JFT

I agree with you on some points and disagree on others.  I guess its worthy of posting - will let the reader decide.  Am worried about post quality - perhaps others should do the same.

Sooo, onto my comments:

1. Comparison - I am only using what IOC presented in their MIC.  They clearly think its an apple to apple comparison, (but in truth I tend to agree with you – they need to focus on companies at same stage with discovered, unmonetized assets.)

2. None of their ‘comparative’ companies from Page 41 in the 2016 MIC have gone bankrupt.  Agree there are a lot of bankruptcies, though.

3. Why couldn’t Phil have done the Total deal? Maybe he doesn’t speak french, like foie gras, or wear pink shirts? Dunno, but he didn’t have to move quick as he had ongoing cash income from the refinery.  That backup has gone now.

4. And as stated elsewhere, it is quite possible we could have retained our exploration licenses by talking with the government and seeking deferral of well commitments. And maybe we should have given-up the licenses - how much did we spend, and how much value did we create?

5. If the Total deal was so great, why did our share price tank by 40-50%, long before oil prices fell?

6. Puma – how do you know the math does not work? If you have the info please share.  I can’t get any info from them (tried to register on their website but they told me to bugger off!), but they’re run by VITOL so would be surprised of bad decisions.

7. How has the drop in the price of oil had any effect on the appraisal timing?  Why would it?  In fact, it would make things faster as better equipment/people are available due to the downturn.  Being in the oil and gas business and in the region, I can assure you the oil price drop can only positively impact timing/cost of any appraisal work UNLESS companies decide to stop and see where prices/supply/demand settle out. Total gave no indication they intended to do this.

I won’t opine on your Hession comment coz I’d be accused of whining (by those who contribute little or no useful info but with imaginary close friends who text them – good grief, talk about board clutter!)

[jft310]

One year ago Brent was $100 now under $50 and LNG is priced off Brent. The future of the company is bet on LNG which today is 50 percent less than a year ago . Who thinks that that price drop has not effected the stock price !! Reality check !!

[Indoreservoir]

One year ago Brent was $100 now under $50 and LNG is priced off Brent. The future of the company is bet on LNG which today is 50 percent less than a year ago . Who thinks that that price drop has not effected the stock price !! Reality check !!

JFT

Reality Check - one year ago Brent was US$66.40.

LNG is priced off Brent in some contracts, not all.

And I never said the drop in oil and LNG prices did not affect the IOC share price - I agree our price is affected by both oil and LNG prices.

Interestingly, I looked again at the graph and underlying table on 2016 MIC Page 57.  Here is what I found:

[ CORRECTED 19 May, assuming I have their methodology right and treat 1/1/11 as a baseline number. Have asked IOC Investor Relations for their calculation methodology. ]

                                            1/1/11   YE 2011   YE 2012  YE 2013  YE 2014  YE 2015

MIC - Brent Crude Oil, C$         100      113            117           117          61            39

And a Reality Check

Actual, Bloomberg, C$               100      116           119           123          70            54.7

Wonder whats going on?  I will say a lower oil price will make their representation of share price performance look better on page 57.

Again, just saying...