Message to Phil Mulacek & the Yukon Courts

[Kaliboo]

I decided to push this up as a new thread.

'Relker' pid='78810' datel Wrote:The FID (=Final Investment Decision) is the first big milestone after the certification. This investment plan might include the monetisation of the tie-in fields neighboring PRL15. If the JV start with delivering gas to the PNG LNG plant in 2021 and starts in 2023 with its own train, financing the Papua LNG project will become much easier. By doing so IOC can sell Raptor or Bobcat to XOM/Osh. XOM/OSH have 2 reasons to do this. 1. The decline factor of the Hides field is bigger than expected. 2. The development of the P'Nyang will be very expensive. Waiting for the sale till FID is my favorite option. We should bear in mind that the risk discount will be gone by that time.

Thanks for sharing.  This gives me pause to illuminate this point a little further.

In PNG people throw talk about a single TCFE like it's nothing.  But in the USA a TCFE is a lot of gas, somewhere near 170 Mln BOE, depending on your BTU rating factor.  Remember the slide 15 (attached) from the June 24, 2014 AGM?  There is115 TCF potential of the Eastern Papuan Basin where Elk/Antelope are located.  And only ~30 TCF discovered as of that date in all of PNG, according to the slide.

Go to the next slide 16 (see orignal presentation) and this is what it says:  "InterOil’s acreage of c.  4 million controls the heart of the Eastern Papuan Basin"

The prior slide (see orginal presentation) compares E/A to some of the largest fields in the world.

Fast forward to Q4 2015 Conference Call: Slide 4 (below).

Over 6 TCFE "independently certified" at Raptor, Bobcat and Triceratops.  According to IOC managment's own notes attached to the presentation they said this verbatim, "On a combined basis, these three discoveries have an estimated volume of over 6 Tcfe."  And GLJ updates the the year end Elk-Antelope 2C resource estimate from 9.9 TCFE to 10.2 TCFE!

6.4 TCFE is around 1.1 BILLION BOE!  According to slide 12 (attached) this 6+ TCFE is "2C gross, unrisked resource."

When one is valuing a company it is rather difiicult to simply sweep 1 billion BOE under the rug and ignore it as if it doesn't exist.  But that is exactly what is happening.  Phil please make this clear to the court.  I sure will if you don't.

And how can a company simply report third party resource estimates at Elk/Antelope which suddenly contract, contradicting  multiple years of increasing resource size with continually improving well results and then NOT explain how this contraction occurred?  This is the most material event that has happened in several years, perhaps since the company formed, AND there is no explanation by the company.  Isn't this gross negligence by IOC management?

This whole effort to unload the company on the cheap seems like a huge crime in progress.  As Phil said, XOM's offer vastly understates the value of IOC assets.

[jft310]

Kali is spot on . Vote yes get nailed , dissent get paid . Why more don't get this is amazing .

[sageo]

THANK YOU, KALIBOO  !!!

This 'old guy ' don't have your word skills or the method of great delivery that you possess, but as i have been saying for years now, " ARUN 2 anyone ??"

Thanks for explaining what 1 tcf really means ..... if some mutual fund manager or analyst would "bother" to find out .

Absolutely AMAZING how some want to practically give away millions and millions of dollars for a pittance !" border="0" class="smilie" src="http://shareholdersunite.com/mybb/images/smilies/huh.gif" />  Thanks again for all your time and help.

[Kaliboo]

THANK YOU, KALIBOO  !!!

This 'old guy ' don't have your word skills or the method of great delivery that you possess, but as i have been saying for years now, " ARUN 2 anyone ??"

Thanks for explaining what 1 tcf really means ..... if some mutual fund manager or analyst would "bother" to find out .

Absolutely AMAZING how some want to practically give away millions and millions of dollars for a pittance !" border="0" class="smilie" src="http://shareholdersunite.com/mybb/images/smilies/huh.gif" />  Thanks again for all your time and help.

.

Yes Sageo, it is truly amazing.  XOM controls the monopoly LNG facility in PNG to get the gas out to market.  No one can outbid them as they have all the leverage, so no one tries.  TOT and OSH surrendered without a shot.  PNG needs to block XOM and OSH from bidding to buy IOC, then we will have real bids for the company from the market under the current economic conditions.  But if IOC gas gets bidded up too high, then those who share in the LNG plant will hurt their profits and be less competitive on the world market for LNG.  So IOC, i.e., rather the shareholders who are NOT MH or the BOD,  have become the sacrificial lamb to make all other particpants wealthy.  It is impossible for IOC shareholders to get a fair deal because it is not a fair competitive market of bidders.  It is a one company market where XOM is the monopoly.  The confluence of events with falling LNG and oil prices has for the moment, scared away investment in new LNG plants, giving XOM this market monopoly in PNG.  How will the Yukon courts view this?  If there is only one bidder because of the momentary monopoly of XOM, can that be a "fair deal" for shareholders.  I hardly think so.  Give this downturn another year or two and TOT may again be emboldened to build a stand alone plant AND buy all of IOC at a better price. Or maybe another company will.  But not in this price environment.  If IOC management have drained the company to make selling it now at any price, the only option vs. bankruptcy, then I suspect a crime was committed.  But no one will chase them down for their wrong doings, thanks to the multinational opaqueness and "catch me if you can" nature of the geodistributed existence of the company.  I think the appeals court (at least) sees this very clearly but had no power to do anything other than rule on the deal.  When regulators and lawmen don't enforce the laws, the ciminals operate with impunity.  What about all the allegations on this board about illegal trading by MH and others.  That was reported by at least one person on this board to the regulatory bodies.  Is anything coming of it?  Not that I know of.  Anyway, as you say, all of this is amazing.  The thing that amazes me as much as any is the behavior of Morgan Stanley, the proxy services, and other financial institutions who have said the deal is good.  Clearly all of these opinions would fall in the "highly incompetent ignoramus" category.  Shame on these pathetic companies.   Do they get punished for making bad recommendations; no, they make a lot of money on bad recommendations every day.   It all nicely fits a "vast conspiracy" scenario.  Given all else that has happened with this comany, I wouldn't put that out of the realm of possibilities.

[jft310]

I bet the courts would agree to a deal brokered by them. Let Exxon have only the gas at E/A for $45 a current share payable at deal closure to holders of record, why because thats all they are paying for. Take the balance of the assets not liabilities and form a new company to hold them. That new company ,owners the dissenters, could raise money an equity offering and explore again. Wonder if Phil would be interested in being an advisor to this new company but not CEO .??
An idea to be discussed.