CPA proposes Class Action Law Suite vs MH and BOD

[ArtM72]

Anyone else think that absent a big piece of IOC to sell down Botten has no means of paying of Civelli if GLC estimates are found to be anywhere near correct? Is that what is driving this deal? Other than pride and avarice I see no other explanation. The deal certainly provides nothing in the way of new efficiencies or symbionics other than eliminating the need to rebuild IOC's exploration capabilities.

Keeping the ONeill government afloat in the face of an otherwise embarrassing OSH share price crash might be the ultimate reason for what is occurring.

[jft310]

Phil is supposed to address the subject this week

[admin]

Anyone else think that absent a big piece of IOC to sell down Botten has no means of paying of Civelli if GLC estimates are found to be anywhere near correct? Is that what is driving this deal? Other than pride and avarice I see no other explanation. The deal certainly provides nothing in the way of new efficiencies or symbionics other than eliminating the need to rebuild IOC's exploration capabilities. Keeping the ONeill government afloat in the face of an otherwise embarrassing OSH share price crash might be the ultimate reason for what is occurring.

Actually that is an interesting take, Art. If you look at the deal from an economic point of view you do see possible synergy benefits (Botton speaks about $3B, as it happens), but with Total getting:

Following the sell-down to Total, Oil Search expects to have an equity interest in PRL 15 of up to 37.4%, or 29.0% post government back-in, with Total holding an equity interest in PRL 15 of up to 62.1%, or 48.1% post government back-in. This equates to Oil Search selling down 60% of InterOil’s 36.5% (28.3% post government back-in) PRL15 interest to Total.

Which gives Total control over PLR15 pre govt. buyin. Will their interests be aligned? Difficult to tell, but this could be a crucial element in what happens next. If Total favors their own (Papua LNG) plant, who's going to stop them? Probably not the PNG govt, they said they favor two plants. Exxon might yet have something to say in this..

[jft310]

Exxon needs our gas to expand , the more trains the higher the ROI especially on these low cost times .

[Kaliboo]

Hession gets paid twice his salary of closed before July 16 ? Plus his $37 million , His one interest is himself . This law suite has merit and shareholders have rights . Breach on Fiduciary Resondsibility are terms Hession needs to understand . Morgan Stanley opinion on this deal is worthless and they know that but hint so do we . When I first saw the deal I emailed Interoil and stated expect litigation without changes .

JFT, please fill in the rest.  Is someone or group already filing or about too?

[ArtM72]

Exxon needs our gas to expand , the more trains the higher the ROI especially on these low cost times .

Exxon will get gas to expand, but now OSH and Total will sell it to them from TBR, not IOC.

[sageo]

Exxon needs our gas to expand , the more trains the higher the ROI especially on these low cost times .

Exxon will get gas to expand, but now OSH and Total will sell it to them from TBR, not IOC.

  Art - Thanks for pointing that out !! Ouch and double ouch !!!  This mess just keeps adding more injury to our increasing pain .

[katytrader]

Exxon needs our gas to expand , the more trains the higher the ROI especially on these low cost times .

Exxon will get gas to expand, but now OSH and Total will sell it to them from TBR, not IOC.

  So the newly-initiated OSH shareholder receives benefit from the sale....lower than if gas is sold by IOC, but receives benefit from eventual sale of lng through OSHs share of PNGLNG.   I certainly have no idea on how to evaluate this, but do I have Hession's logic right?

[Putncalls]

OSH's revenue almost doubles with Papua LNG. Am I correct?

[kerekesc]

I have been hearing alot about possible synergy benefits regarding this deal, but I have yet to hear exactly what these benefits are.  And, more importantly, I have yet to hear what these benefits are that IOC couldn't benefit from if it remained independant.