11-07-2016, 01:49 AM (This post was last modified: 11-07-2016, 02:34 AM by Kaliboo.)
The SHU board is now firing again on all cylinders after a long period of very low activity. Needless to say, we have many months ahead of speculation and sorting out where this will go next. We wait and of course, we talk (i.e., post).
Here's some thoughts of upcoming events and issues.
1. Court documents will be available in 2 weeks. I guess this will give us the details, but I'm not expecting it to change anything other than help us speculate what actions IOC, XOM and PM make take in response.
2. I'd gather IOC can't appeal and appeal which has ended the deal ("if it doesn't fit you must aquit"; remember OJ's case). It's over. A new bid has to be offered with new fairness assessments, etc., etc., So no possible chance of closing a deal until 2nd half of 2017 in my estimation, if XOM makes an offer.
3. XOM and IOC are reconsidering things. We wait.....again. A key question which we can't answer is how does this project get treated inside of XOM. In big companies there is a capital allocation/project approval process. Only the best projects go forward. There is a limited amount of capital. Will this deal have to get back in line and compete with all the projects, or does it stay on top? My gut says XOM could increase their bid by a very large % and financially, it will still be a top acquisition project. So maybe this project stays in the top pool. But I've seen in my old company (a super major), develpment projects have to get back in line which takes a long, long time. Acquisitions may be treated differently. But in several months the outlook for XOM has gotten worse according to some. In Q3 they paid more in dividends than their net income. And they are locked into NOT breaking their incredible record of increasing dividends every year. So their capital budget may be shrinking. At they same time they have reported a huge oil discovery offshore Nigeria that will be screaming for money. So the picture in XOM has shifted. Even still I think they are not likely to give up on IOC. But they may wait to let the dust settle to ensure they come up with a better approach. In a certain sense I think XOM is in part to blame for this falling apart. IF only they had not capped the deal, then PM might not have sued. Maybe.
4. Cash. I think everyone believes we are about out AND we have crooks who waste money like crazy. Thankfully we are no longer operating at least E/A, so they can't waste it as quickly. But the company is likely going to have to do something to raise cash. An equity dilution seems like the only option short of selling assets. But an equity offering for what? Not to invest in drilling, but to merely pay the light bill while waiting on another offer? Think anyone is going to want to buy those shares? Didn't we get rid of most of the staff?
5. Lease expiration. This has not been an issue but the longer this drags on then it may some day become one. We would have to have drilling plans or development plans in the works to hold onto our other leases. Ain't likely to happen when you don't have capital or staff to do that. I haven't looked those dates up, but might be a good idea to look into it. Not having cash is one thing. But if we have lease expirations coming, we're dead. Can anyone update on that?
6. Management. What will the Board do next? Are they angry with Hession? Might they dump him? My sense is that no one on this message board wants to hang around with the same pathetic people running the company. What do we do? Wait for the next annual meeting or initiate something sooner? Of course it won't be us. All we do is talk. It will need to be PM initiating. He tried it once. I think he will feel more empowered to make another run at it. Hopefully he picks a better team.
7. Phil. What does PM want now? One thing is for sure. XOM and IOC management must have a whole new respect for PM than they did previously. "Nothing succeeds like success." PM has momentum now. He needs to take advantage of this to drive this to some good outcome for all of us. The sooner he acts, the more likely people are to get on board with him and the more compliant IOC and XOM will be.....IMHO. But the next chess move is for IOC/XOM. I think PM waits to see what they do. If nothing, then my guess is he will plan another attack at a special meeting or the annual meeting.
8. Market conditions. My sense is that more and more "experts" and companies are saying no one knows when this supply glut situation is going to end. Let's not forget there are 2 gluts - oil and gas. The USA is exporting more and more LNG. Onshore shale is adding rigs in response to higher prices. These guys have hedged 2017 production at higher prices and now are hiring rigs and fracking wells to produce the HCs that have locked in prices. The DUCs (drilled but not completed wells) add up to 5000+ wells, down from the high earlier this year, but effectively acting as a gigantic oil and gas price, pressure relief valve. I.e., when oil prices get to 50 ish and gas prices north of $3 ish, the relief valve opens (i.e., DUCs are completed and produced; new wells are drilled) and sends supply up and prices back down. This cycle could repeat for a long, long time. Longer than XOM can pay its every increasing dividend. This type of thinking and uncertainty, may cause super majors to be more reluctant in the near term for some deals.
9. Suing IOC and Morgan Stanley. I think shareholders have a case but there is no driver unless PM does it. We do a lot of talking on this board, but no collective action like this will come from here IMHO. We'd be suing ourselves, so what's the point unless it aims to get rid of MH and the board.
10. Availability of trained/experienced professional E&P staff. There is still a large pool of people unemployed hoping to get back in industry. This is not a factor yet that can affect oil and gas supply. Give it 2-4 more years. Once supply of the right people is the constraint, then this coupled with the protracted years of under investment will send oil and gas supply crashing and prices will start a long term climb upward IF the world keeps spinning as it has. But given the US election, ain't no telling what the world will be like, no matter who wins.
11. Timing and A7 drilling and testing. This is a potential ace added to our hand. I guess we can look to OSH to give us reports as the bums at IOC won't. But it also can be a two edged sword that could help us or hurt us. I forget. Does TOT pay for most of this cost up to $50 Mln? Assuming we hit pay, I doubt if this well can tell us anything helpful about the reservoir drive mechanism as commented by me and others. The reservoir is too big to determine drive with a short term, low volume production test. But it can add volume. My sense is it won't hurt volume much if it is a duster because it is at the outer boundary.
12. Wild Card. XOM, TOT and OSH need to jointly buy IOC. It reduces capital required by XOM and makes everyone happy, assuming we shareholders get a a really good deal!!
The SHU board is now firing again on all cylinders after a long period of very low activity. Needless to say, we have many months ahead of speculation and sorting out where this will go next. We wait and of course, we talk (i.e., post).
Here's some thoughts of upcoming events and issues.
1. Court documents will be available in 2 weeks. I guess this will give us the details, but I'm not expecting it to change anything other than help us speculate what actions IOC, XOM and PM make take in response.
2. I'd gather IOC can't appeal and appeal which has ended the deal ("if it doesn't fit you must aquit"; remember OJ's case). It's over. A new bid has to be offered with new fairness assessments, etc., etc., So no possible chance of closing a deal until 2nd half of 2017 in my estimation, if XOM makes an offer.
3. XOM and IOC are reconsidering things. We wait.....again. A key question which we can't answer is how does this project get treated inside of XOM. In big companies there is a capital allocation/project approval process. Only the best projects go forward. There is a limited amount of capital. Will this deal have to get back in line and compete with all the projects, or does it stay on top? My gut says XOM could increase their bid by a very large % and financially, it will still be a top acquisition project. So maybe this project stays in the top pool. But I've seen in my old company (a super major), develpment projects have to get back in line which takes a long, long time. Acquisitions may be treated differently. But in several months the outlook for XOM has gotten worse according to some. In Q3 they paid more in dividends than their net income. And they are locked into NOT breaking their incredible record of increasing dividends every year. So their capital budget may be shrinking. At they same time they have reported a huge oil discovery offshore Nigeria that will be screaming for money. So the picture in XOM has shifted. Even still I think they are not likely to give up on IOC. But they may wait to let the dust settle to ensure they come up with a better approach. In a certain sense I think XOM is in part to blame for this falling apart. IF only they had not capped the deal, then PM might not have sued. Maybe.
4. Cash. I think everyone believes we are about out AND we have crooks who waste money like crazy. Thankfully we are no longer operating at least E/A, so they can't waste it as quickly. But the company is likely going to have to do something to raise cash. An equity dilution seems like the only option short of selling assets. But an equity offering for what? Not to invest in drilling, but to merely pay the light bill while waiting on another offer? Think anyone is going to want to buy those shares? Didn't we get rid of most of the staff?
5. Lease expiration. This has not been an issue but the longer this drags on then it may some day become one. We would have to have drilling plans or development plans in the works to hold onto our other leases. Ain't likely to happen when you don't have capital or staff to do that. I haven't looked those dates up, but might be a good idea to look into it. Not having cash is one thing. But if we have lease expirations coming, we're dead. Can anyone update on that?
6. Management. What will the Board do next? Are they angry with Hession? Might they dump him? My sense is that no one on this message board wants to hang around with the same pathetic people running the company. What do we do? Wait for the next annual meeting or initiate something sooner? Of course it won't be us. All we do is talk. It will need to be PM initiating. He tried it once. I think he will feel more empowered to make another run at it. Hopefully he picks a better team.
7. Phil. What does PM want now? One thing is for sure. XOM and IOC management must have a whole new respect for PM than they did previously. "Nothing succeeds like success." PM has momentum now. He needs to take advantage of this to drive this to some good outcome for all of us. The sooner he acts, the more likely people are to get on board with him and the more compliant IOC and XOM will be.....IMHO. But the next chess move is for IOC/XOM. I think PM waits to see what they do. If nothing, then my guess is he will plan another attack at a special meeting or the annual meeting.
8. Market conditions. My sense is that more and more "experts" and companies are saying no one knows when this supply glut situation is going to end. Let's not forget there are 2 gluts - oil and gas. The USA is exporting more and more LNG. Onshore shale is adding rigs in response to higher prices. These guys have hedged 2017 production at higher prices and now are hiring rigs and fracking wells to produce the HCs that have locked in prices. The DUCs (drilled but not completed wells) add up to 5000+ wells, down from the high earlier this year, but effectively acting as a gigantic oil and gas price, pressure relief valve. I.e., when oil prices get to 50 ish and gas prices north of $3 ish, the relief valve opens (i.e., DUCs are completed and produced; new wells are drilled) and sends supply up and prices back down. This cycle could repeat for a long, long time. Longer than XOM can pay its every increasing dividend. This type of thinking and uncertainty, may cause super majors to be more reluctant in the near term for some deals.
9. Suing IOC and Morgan Stanley. I think shareholders have a case but there is no driver unless PM does it. We do a lot of talking on this board, but no collective action like this will come from here IMHO. We'd be suing ourselves, so what's the point unless it aims to get rid of MH and the board.
10. Availability of trained/experienced professional E&P staff. There is still a large pool of people unemployed hoping to get back in industry. This is not a factor yet that can affect oil and gas supply. Give it 2-4 more years. Once supply of the right people is the constraint, then this coupled with the protracted years of under investment will send oil and gas supply crashing and prices will start a long term climb upward IF the world keeps spinning as it has. But given the US election, ain't no telling what the world will be like, no matter who wins.
11. Timing and A7 drilling and testing. This is a potential ace added to our hand. I guess we can look to OSH to give us reports as the bums at IOC won't. But it also can be a two edged sword that could help us or hurt us. I forget. Does TOT pay for most of this cost up to $50 Mln? Assuming we hit pay, I doubt if this well can tell us anything helpful about the reservoir drive mechanism as commented by me and others. The reservoir is too big to determine drive with a short term, low volume production test. But it can add volume. My sense is it won't hurt volume much if it is a duster because it is at the outer boundary.
12. Wild Card. XOM, TOT and OSH need to jointly buy IOC. It reduces capital required by XOM and makes everyone happy, assuming we shareholders get a a really good deal!!
Good luck to all.
Kaliboo.
Thanks for your fine thoughts . On #11 concerning the drilling of A 7 ....my "ancient" math combined with " limited geology skills", causes me to believe strongly that we will find, at least, 150 to 250 meters of good quality rocks before cutting the fault . (...could my thinking also be "faulty" [ smile] ? . Sure,but at this point I can't help myself ).
As our own (great ) Pet has pointed out,even if we cut the fault higher and drill to the projected depth, we may discover some very interesting "stuff" (Mule Deer ??) on the other side of the fault . All kinds of possibilities with this well. [ Mucho dolomite and excellent porosity in the limestone portions above the fault. Yes, I understand....we wat to see . Best to you.
Regarding No. 11, IOC does not get any "carry" from Total on Antelope-7. IOC will have to pay their 36.5375% share of all costs. I think everyone (IOC, Exxon, Total and OSH) thought that Exxon would be their new partner when they drilled this well. Now it is still IOC's resonsibility to pay their share of the cost.
I've lost track. Wasn't A6 the last of the original carries and A7 the substitute for Antelope South?
Is there anyone who doubts the Total contract is still valid with respect to the appraisal and interim payment? That should bring a nice chunk of cash and there's no reason it can't happen 2Q2017. Arguments to the contrary?
I have to worry a little about the license renewal but Total and OSH have a dog in this fight so they can be counted on defending their turf. Also, getting XOM out of the mix would appear to take the issue of anti-competitive behaviors off the table. Both work to move the project forward.
IOC's web page statement that they still want to pursue closing with XOM seems awfully limp. What "path to closing" might mean will have to await release of the court documents to really interpret. Nonetheless we still have the company today which was a long shot just one week ago.
Hibernation remains the option. Board dismissal of Hession the immediate necessity. Has anyone looked into shareholder mechanisms that might be available to call for a special Board meeting? Maybe the court docs will give us that direction.
The SHU board is now firing again on all cylinders after a long period of very low activity. Needless to say, we have many months ahead of speculation and sorting out where this will go next. We wait and of course, we talk (i.e., post).
Here's some thoughts of upcoming events and issues.
1. Court documents will be available in 2 weeks. I guess this will give us the details, but I'm not expecting it to change anything other than help us speculate what actions IOC, XOM and PM make take in response.
2. I'd gather IOC can't appeal and appeal which has ended the deal ("if it doesn't fit you must aquit"; remember OJ's case). It's over. A new bid has to be offered with new fairness assessments, etc., etc., So no possible chance of closing a deal until 2nd half of 2017 in my estimation, if XOM makes an offer.
3. XOM and IOC are reconsidering things. We wait.....again. A key question which we can't answer is how does this project get treated inside of XOM. In big companies there is a capital allocation/project approval process. Only the best projects go forward. There is a limited amount of capital. Will this deal have to get back in line and compete with all the projects, or does it stay on top? My gut says XOM could increase their bid by a very large % and financially, it will still be a top acquisition project. So maybe this project stays in the top pool. But I've seen in my old company (a super major), develpment projects have to get back in line which takes a long, long time. Acquisitions may be treated differently. But in several months the outlook for XOM has gotten worse according to some. In Q3 they paid more in dividends than their net income. And they are locked into NOT breaking their incredible record of increasing dividends every year. So their capital budget may be shrinking. At they same time they have reported a huge oil discovery offshore Nigeria that will be screaming for money. So the picture in XOM has shifted. Even still I think they are not likely to give up on IOC. But they may wait to let the dust settle to ensure they come up with a better approach. In a certain sense I think XOM is in part to blame for this falling apart. IF only they had not capped the deal, then PM might not have sued. Maybe.
4. Cash. I think everyone believes we are about out AND we have crooks who waste money like crazy. Thankfully we are no longer operating at least E/A, so they can't waste it as quickly. But the company is likely going to have to do something to raise cash. An equity dilution seems like the only option short of selling assets. But an equity offering for what? Not to invest in drilling, but to merely pay the light bill while waiting on another offer? Think anyone is going to want to buy those shares? Didn't we get rid of most of the staff?
5. Lease expiration. This has not been an issue but the longer this drags on then it may some day become one. We would have to have drilling plans or development plans in the works to hold onto our other leases. Ain't likely to happen when you don't have capital or staff to do that. I haven't looked those dates up, but might be a good idea to look into it. Not having cash is one thing. But if we have lease expirations coming, we're dead. Can anyone update on that?
6. Management. What will the Board do next? Are they angry with Hession? Might they dump him? My sense is that no one on this message board wants to hang around with the same pathetic people running the company. What do we do? Wait for the next annual meeting or initiate something sooner? Of course it won't be us. All we do is talk. It will need to be PM initiating. He tried it once. I think he will feel more empowered to make another run at it. Hopefully he picks a better team.
7. Phil. What does PM want now? One thing is for sure. XOM and IOC management must have a whole new respect for PM than they did previously. "Nothing succeeds like success." PM has momentum now. He needs to take advantage of this to drive this to some good outcome for all of us. The sooner he acts, the more likely people are to get on board with him and the more compliant IOC and XOM will be.....IMHO. But the next chess move is for IOC/XOM. I think PM waits to see what they do. If nothing, then my guess is he will plan another attack at a special meeting or the annual meeting.
8. Market conditions. My sense is that more and more "experts" and companies are saying no one knows when this supply glut situation is going to end. Let's not forget there are 2 gluts - oil and gas. The USA is exporting more and more LNG. Onshore shale is adding rigs in response to higher prices. These guys have hedged 2017 production at higher prices and now are hiring rigs and fracking wells to produce the HCs that have locked in prices. The DUCs (drilled but not completed wells) add up to 5000+ wells, down from the high earlier this year, but effectively acting as a gigantic oil and gas price, pressure relief valve. I.e., when oil prices get to 50 ish and gas prices north of $3 ish, the relief valve opens (i.e., DUCs are completed and produced; new wells are drilled) and sends supply up and prices back down. This cycle could repeat for a long, long time. Longer than XOM can pay its every increasing dividend. This type of thinking and uncertainty, may cause super majors to be more reluctant in the near term for some deals.
9. Suing IOC and Morgan Stanley. I think shareholders have a case but there is no driver unless PM does it. We do a lot of talking on this board, but no collective action like this will come from here IMHO. We'd be suing ourselves, so what's the point unless it aims to get rid of MH and the board.
10. Availability of trained/experienced professional E&P staff. There is still a large pool of people unemployed hoping to get back in industry. This is not a factor yet that can affect oil and gas supply. Give it 2-4 more years. Once supply of the right people is the constraint, then this coupled with the protracted years of under investment will send oil and gas supply crashing and prices will start a long term climb upward IF the world keeps spinning as it has. But given the US election, ain't no telling what the world will be like, no matter who wins.
11. Timing and A7 drilling and testing. This is a potential ace added to our hand. I guess we can look to OSH to give us reports as the bums at IOC won't. But it also can be a two edged sword that could help us or hurt us. I forget. Does TOT pay for most of this cost up to $50 Mln? Assuming we hit pay, I doubt if this well can tell us anything helpful about the reservoir drive mechanism as commented by me and others. The reservoir is too big to determine drive with a short term, low volume production test. But it can add volume. My sense is it won't hurt volume much if it is a duster because it is at the outer boundary.
12. Wild Card. XOM, TOT and OSH need to jointly buy IOC. It reduces capital required by XOM and makes everyone happy, assuming we shareholders get a a really good deal!!
Good luck to all.
Kaliboo.
Thanks for your fine thoughts . On #11 concerning the drilling of A 7 ....my "ancient" math combined with " limited geology skills", causes me to believe strongly that we will find, at least, 150 to 250 meters of good quality rocks before cutting the fault . (...could my thinking also be "faulty" [ smile] ? . Sure,but at this point I can't help myself ).
As our own (great ) Pet has pointed out,even if we cut the fault higher and drill to the projected depth, we may discover some very interesting "stuff" (Mule Deer ??) on the other side of the fault . All kinds of possibilities with this well. [ Mucho dolomite and excellent porosity in the limestone portions above the fault. Yes, I understand....we wat to see . Best to you.
I found an interesing statement in the OSH quarterly operations update dated 30 September 2016 on page 10 - not sure if it was discussed here on the board. In reference to the drilling of the A7 well in PRL 15, OSH states this: "Contingent on the Antelope 7 results, the well may be deepened to test the Antelope Deep carbonate exploration target."
The SHU board is now firing again on all cylinders after a long period of very low activity. Needless to say, we have many months ahead of speculation and sorting out where this will go next. We wait and of course, we talk (i.e., post).
Here's some thoughts of upcoming events and issues.
1. Court documents will be available in 2 weeks. I guess this will give us the details, but I'm not expecting it to change anything other than help us speculate what actions IOC, XOM and PM make take in response.
2. I'd gather IOC can't appeal and appeal which has ended the deal ("if it doesn't fit you must aquit"; remember OJ's case). It's over. A new bid has to be offered with new fairness assessments, etc., etc., So no possible chance of closing a deal until 2nd half of 2017 in my estimation, if XOM makes an offer.
3. XOM and IOC are reconsidering things. We wait.....again. A key question which we can't answer is how does this project get treated inside of XOM. In big companies there is a capital allocation/project approval process. Only the best projects go forward. There is a limited amount of capital. Will this deal have to get back in line and compete with all the projects, or does it stay on top? My gut says XOM could increase their bid by a very large % and financially, it will still be a top acquisition project. So maybe this project stays in the top pool. But I've seen in my old company (a super major), develpment projects have to get back in line which takes a long, long time. Acquisitions may be treated differently. But in several months the outlook for XOM has gotten worse according to some. In Q3 they paid more in dividends than their net income. And they are locked into NOT breaking their incredible record of increasing dividends every year. So their capital budget may be shrinking. At they same time they have reported a huge oil discovery offshore Nigeria that will be screaming for money. So the picture in XOM has shifted. Even still I think they are not likely to give up on IOC. But they may wait to let the dust settle to ensure they come up with a better approach. In a certain sense I think XOM is in part to blame for this falling apart. IF only they had not capped the deal, then PM might not have sued. Maybe.
4. Cash. I think everyone believes we are about out AND we have crooks who waste money like crazy. Thankfully we are no longer operating at least E/A, so they can't waste it as quickly. But the company is likely going to have to do something to raise cash. An equity dilution seems like the only option short of selling assets. But an equity offering for what? Not to invest in drilling, but to merely pay the light bill while waiting on another offer? Think anyone is going to want to buy those shares? Didn't we get rid of most of the staff?
5. Lease expiration. This has not been an issue but the longer this drags on then it may some day become one. We would have to have drilling plans or development plans in the works to hold onto our other leases. Ain't likely to happen when you don't have capital or staff to do that. I haven't looked those dates up, but might be a good idea to look into it. Not having cash is one thing. But if we have lease expirations coming, we're dead. Can anyone update on that?
6. Management. What will the Board do next? Are they angry with Hession? Might they dump him? My sense is that no one on this message board wants to hang around with the same pathetic people running the company. What do we do? Wait for the next annual meeting or initiate something sooner? Of course it won't be us. All we do is talk. It will need to be PM initiating. He tried it once. I think he will feel more empowered to make another run at it. Hopefully he picks a better team.
7. Phil. What does PM want now? One thing is for sure. XOM and IOC management must have a whole new respect for PM than they did previously. "Nothing succeeds like success." PM has momentum now. He needs to take advantage of this to drive this to some good outcome for all of us. The sooner he acts, the more likely people are to get on board with him and the more compliant IOC and XOM will be.....IMHO. But the next chess move is for IOC/XOM. I think PM waits to see what they do. If nothing, then my guess is he will plan another attack at a special meeting or the annual meeting.
8. Market conditions. My sense is that more and more "experts" and companies are saying no one knows when this supply glut situation is going to end. Let's not forget there are 2 gluts - oil and gas. The USA is exporting more and more LNG. Onshore shale is adding rigs in response to higher prices. These guys have hedged 2017 production at higher prices and now are hiring rigs and fracking wells to produce the HCs that have locked in prices. The DUCs (drilled but not completed wells) add up to 5000+ wells, down from the high earlier this year, but effectively acting as a gigantic oil and gas price, pressure relief valve. I.e., when oil prices get to 50 ish and gas prices north of $3 ish, the relief valve opens (i.e., DUCs are completed and produced; new wells are drilled) and sends supply up and prices back down. This cycle could repeat for a long, long time. Longer than XOM can pay its every increasing dividend. This type of thinking and uncertainty, may cause super majors to be more reluctant in the near term for some deals.
9. Suing IOC and Morgan Stanley. I think shareholders have a case but there is no driver unless PM does it. We do a lot of talking on this board, but no collective action like this will come from here IMHO. We'd be suing ourselves, so what's the point unless it aims to get rid of MH and the board.
10. Availability of trained/experienced professional E&P staff. There is still a large pool of people unemployed hoping to get back in industry. This is not a factor yet that can affect oil and gas supply. Give it 2-4 more years. Once supply of the right people is the constraint, then this coupled with the protracted years of under investment will send oil and gas supply crashing and prices will start a long term climb upward IF the world keeps spinning as it has. But given the US election, ain't no telling what the world will be like, no matter who wins.
11. Timing and A7 drilling and testing. This is a potential ace added to our hand. I guess we can look to OSH to give us reports as the bums at IOC won't. But it also can be a two edged sword that could help us or hurt us. I forget. Does TOT pay for most of this cost up to $50 Mln? Assuming we hit pay, I doubt if this well can tell us anything helpful about the reservoir drive mechanism as commented by me and others. The reservoir is too big to determine drive with a short term, low volume production test. But it can add volume. My sense is it won't hurt volume much if it is a duster because it is at the outer boundary.
12. Wild Card. XOM, TOT and OSH need to jointly buy IOC. It reduces capital required by XOM and makes everyone happy, assuming we shareholders get a a really good deal!!
Good luck to all.
Kaliboo.
Point 4: If you look at the Q1/2016 balance sheet, you will see that IOC has a bankloan amounting to USD M 190 which can go up to USD M 400. Taking into account that cash burning has been limited with an exception for Ant 7, I do not see big issues untill the end of 2017. At that time certification will be ready. For your guidance I enclosed the IOC mailing regarding Q1 2016.
If they drill deeper and find Antelope South that would add to the June ish payment from Total or maybe offset part or all of the drilling costs of Ant 7 for shareholders .
