XOM and IOC Agree to extend outside date by 1 week!

[ArtM72]

While there's no evidence the courts view extended beyond PRL15 what are the chances the court insists on other assets being identified and quantified ?

[Stavros]

Art: To my opinion ZILCH because it was never brought up by the Concerned InterOil Shareholders.

Instead, the CIS presentations have stated that Raptor and Bobcat should not have been considered as "Discovery" wells - - - CIS refers to the gas that was encountered as being Non-Commercial. WHY? Because IOC drilled in the WRONG LOCATION!

An analogy is the Elk field. Although Elk encountered gas, it is not considered recoverable. Only Antelope will be tapped.

Raptor and Bobcat and Wahoo and others may command a price some day, but to eventually quantify their values requires drilling several wells in each - - - IOC ain't got no money, honey.

That's why the best deal for IOC Shareholders is to SELL Antelope and RETAIN everything else.
Then rinse and repeat with sell downs and capital raises.

[jft310]

Stavros you make to much sense !

[Kaliboo]

Art: To my opinion ZILCH because it was never brought up by the Concerned InterOil Shareholders. Instead, the CIS presentations have stated that Raptor and Bobcat should not have been considered as "Discovery" wells - - - CIS refers to the gas that was encountered as being Non-Commercial. WHY? Because IOC drilled in the WRONG LOCATION! An analogy is the Elk field. Although Elk encountered gas, it is not considered recoverable. Only Antelope will be tapped. Raptor and Bobcat and Wahoo and others may command a price some day, but to eventually quantify their values requires drilling several wells in each - - - IOC ain't got no money, honey. That's why the best deal for IOC Shareholders is to SELL Antelope and RETAIN everything else. Then rinse and repeat with sell downs and capital raises.

Yes but the problem is there ain't no buyers.  XOM/OSH have all the leverage by having an existing LNG plant and infrastructure.   All other buyers (TOT included) are at a major cost disadvantage for gas fields.  PNG would do IOC shareholders a big favor if they blocked XOM, TOT and OSH from buying anymore of IOC.  No one will bid because they know it's a losing battle with these 3.  That's why TOT didn't counter.  But if all these guys are prohibiited from buying the company, THEN we can have a level playing field for all bidders, excluding these 3.  THEN we can get real value.  XOM intends to remain as the only door for gas to leave PNG.  As long as they do, then independent companies that drill and produce gas (i.e., IOC and now TOT) are held hostage.  IF there were multiple LNG plants in operation, we wouldn't be in this situation.

[weaselpuppy]

PNG do IOC a favor? After MH came in and fired pretty much every PNG worker, sold off the PNG refinery and moved everyone to Singapore, plus if we are correct in our information, got a few workers killed? PNG wants IOC gone baby gone. This was clear when OSH came in as the local favorite and PNG was greenlighting that hard....

[ArtM72]

"That's why the best deal for IOC Shareholders is to SELL Antelope and RETAIN everything else. Then rinse and repeat with sell downs and capital raises."

That's of course been the stated plan all along, but it never seems to get any ink. I wish someone could tell be though how you can put hundreds of millions of dollars into geotesting, sink wells, find carbonates and hydrocarbons under pressure and dismiss that all as nothing. That makes absolutely no sense to me. None whatsoever when adjacent tracts without the testing or wells are sold for significant $$$. Every time somebody on this board suggests there's no value in BTR I wonder how any wildcatter has ever gotten paid.

My bottom line is if they can find value in and transport gas across the Canadian Rockies to an LNG market offshore of Canada they sure as hell can do the same in PNG. Does ANYBODY else think both PNG LNG and Papua LNG would both love to add incremental units?

Just shaking my head in disbelief.

[Kaliboo]

PNG do IOC a favor? After MH came in and fired pretty much every PNG worker, sold off the PNG refinery and moved everyone to Singapore, plus if we are correct in our information, got a few workers killed? PNG wants IOC gone baby gone. This was clear when OSH came in as the local favorite and PNG was greenlighting that hard....

I agree on that.  PNG is not going to block XOM and OSH from bidding as long as TOT pursues building a plant.  I don't think it is in PNG best interest to be beholden to XOM and 1 LNG plant.  The country needs 2 or more plants to improve employment and commercial leverage in their favor.  So that is the reason PNG might be interested in blocking out XOM/OSH from buying the rest of IOC.  But it looks like that's not going to happen.  And if XOM succeeds then I can't see TOT building a new plant.

So IOC shareholders are stuck for now.  Maybe PM can pull a rabbit out of the hat.