XOM statement on the 7 day extension - PNG News

[oliver.gump]

Exxon states "ExxonMobil and InterOil have agreed to extend the agreement to allow time to address the issues raised by the Yukon Court of Appeal and work together to complete the transaction."

This statement was in one of the Papua New Guinea daily newspapers.

That reads to me as it IOC and XOM fully intend to push through the old deal wrapped in a fairness opinion for ca$h and get the Yukon court to simply sign off on it.

[johnwgrant]

Even if they get a new "paid-for-with-cash" fairness opinion, didn't the court find that the shareholders were asked to vote without adequate information!?!? So, would this not require a re-vote (with more information being provided) ???

One week is not enough time for much of anything....

[thg]

Even if they get a new "paid-for-with-cash" fairness opinion, didn't the court find that the shareholders were asked to vote without adequate information!?!? So, would this not require a re-vote (with more information being provided) ??? One week is not enough time for much of anything....

Agreed, I'm not quite a cynical as Ollie, I would have to agree that they are getting their ducks in a row, and that sometime in the next 6 days they will come out with an announcement about a new date, and they will provide a new MIC that will contain the new fairness opinion, etc.

However, if the numbers are not significantly north of the last offer, I will be dissenting once again.

Why?

1) Total payment is much closer now

2) LNG price is higher

3) Oil price is higher

4) XOM need some good news to take to their shareholders, especially in the light of additional coming resource write-downs they are going to have to make.

[Li'loilady]

It looks like extending the date again further was on their mind when they included this phrase in the last "forward-looking statements":

"...and whether ExxonMobil and InterOil will reach any agreement to further amend the outside termination date of the transaction..."

[2126]

It looks like extending the date again further was on their mind when they included this phrase in the last "forward-looking statements":

"...and whether ExxonMobil and InterOil will reach any agreement to further amend the outside termination date of the transaction..."

They will definitely need to further extend the 'outside date' if they are able to reach a new decision on how to proceed on the deal by December 21. The 'outside date' is, by definition, the date upon which all of the contingencies [except final court approval] to complete the deal have been met. This includes any new shareholder vote, which, obviously, can not be concluded by December 21. We should know the basic outline of the proposed way forward by next Wednesday 12/21.

[2126]

There is a small possibility that Exxon will alter their initial offer to pull the CRP out and offer XOM shares at the full 10 tcfe cap amount [as the unknown and un-assessed contingent value of the CRP was one of the 'red flags' that the Appellate Court noted]. This alone might be enough to keep the big institutional investors in line with a Yes vote, while not really costing Exxon any more [assuming the Total certification is 10+ tcfe, which Exxon probably already knows it will be]. I still think that it would require a new vote, however.

[sageo]

There is a small possibility that Exxon will alter their initial offer to pull the CRP out and offer XOM shares at the full 10 tcfe cap amount [as the unknown and un-assessed contingent value of the CRP was one of the 'red flags' that the Appellate Court noted]. This alone might be enough to keep the big institutional investors in line with a Yes vote, while not really costing Exxon any more [assuming the Total certification is 10+ tcfe, which Exxon probably already knows it will be]. I still think that it would require a new vote, however.

Thank you 2126 ! In my younger days ,"only the Shadow knew" " border="0" class="smilie" src="http://shareholdersunite.com/mybb/images/smilies/wink.gif" />  Today,I am 99.99% sure that Exxon "knows" ! If they were to offer the $72 and change up front,they might be able to pull it off ....they know they will still make "many bundles " of dough . [ ....with an "Arun 2 ,why wouldn't they ??!! ]  Appreciate all your time and help.

[jft310]

Two changes would convince many to vote yes. Remove the uncertainty of the CRP with a firm number at a substantially higher price and a second payment as detailed in the Total payment after production starts which eliminates the discussion about water or gas drive. No real reason to rush take the time to get the first payment right after drilling this well.

[Palm]

The CRP payment is a joke at this point, and I agree with 2126; the court stated that they did not like that part of the deal and yet they keep it in. Between Hession and the Board and Exxon they have spit in the face of shareholders again, and also the Yukon court. With this MIC they had better include ALL information including GLJ's updated full resource report. Mgmt/Board can say nothing "materially" changed with GLJ's methodology, but the change in estimate IS material. For shareholders to properly evaluate this updated joke of an offer the GLJ report must be part of the MIC.

[jft310]

Plenty of time to get a new MIC and get a new vote. Expect all institutions to vote yes to this deal.