Pavel - Botten Conversation on IOC

[Tree]

Perspective on the Acquisition of InterOil (IOC): A Conversation with the Head of Oil Search Hosted by Energy Analyst, Pavel Molchanov Wednesday, July 13th – 11:00 AM (Eastern) Dial in: 800)%20867-6304" x-apple-data-detectors="true" x-apple-data-detectors-result="1" x-apple-data-detectors-type="telephone">(800) 867-6304 or 706)%20679-5438" x-apple-data-detectors="true" x-apple-data-detectors-result="2" x-apple-data-detectors-type="telephone">(706) 679-5438 | Conference ID: 46098701 Featuring Oil Search Ltd.’s Peter Botten, Managing Director Ann Diamant, General Manager of Investor Relations Replay: 2:00pm (Eastern) July 13th - 5:00pm (Eastern) July 20th Dial-in: 855)%20859-2056" x-apple-data-detectors="true" x-apple-data-detectors-result="7" x-apple-data-detectors-type="telephone">(855) 859-2056 or 404)%20537-3406" x-apple-data-detectors="true" x-apple-data-detectors-result="8" x-apple-data-detectors-type="telephone">(404) 537-3406, Conference ID: 46098701 Key Points: ·       On May 19, InterOil announced that it is being acquired by Australian-listed Oil Search, the “de facto” national oil and gas company of Papua New Guinea. InterOil’s shareholder vote is scheduled for July 28, and closing is targeted for later in 3Q16. ·       Recall, the purchase price has two components. Each IOC share will be purchased for 8.05 Oil Search shares plus a contingent value right tied to the future resource certification for the Elk/Antelope field. The value of the second component will remain uncertain until the time of certification in 2017. ·       On June 30 came news that InterOil has received a non-binding and conditional buyout offer from an unnamed party, and the board is currently reviewing it. Naturally, this raised questions about whether this marks the start of a bidding war. ·       Alongside anyone interested in InterOil directly, this call should be useful for anyone interested in the LNG market more broadly.

[cybersssss]

Interesting. Thank you for sharing this Tree.

[Stavros]

Botten will have nothing new to say UNLESS he will explain:

1. Details of an OSH re-bid that will be announced before Wednesday

OR

2. Why OSH dropped out of the bidding

[cybersssss]

Or they will tout as to why their bid is better then Xom bid.

[Stavros]

Cyber:

If in fact XOM has submitted a legitimate Proposal, I personally feel its merits will not be in doubt by IOC.

I don't think that King Rex would allow his Team to potentially waste valuable time and money with a half-arsed bid that could possibly be deemed inferior.

[jdeo1969]

Botten will have nothing new to say UNLESS he will explain:

1. Details of an OSH re-bid that will be announced before Wednesday

OR

2. Why OSH dropped out of the bidding

What do you mean stavros? dropped out?

[Li'loilady]

I'm hoping to get some airtime on that conference call.

[Stavros]

The stakes here are quite high
Many folks on this Board feel that OSH does not have the dry powder to up their bid by perhaps 20% unless TOTAL joins them.

It's possible that by Wednesday morning, OSH had enough time to evaluate the rival "Superior Bid" and decided to drop out of the bidding, leaving TOTAL to have a go.

I could see TOTAL perhaps putting in a rival offer against the mystery bidder, and then selling some percentages of E/A and other resources to OSH. OSH could raise the money to pay TOTAL by issuing a few hundred million shares of stock . . . which is in fact what they were doing by offering new shares of stock to IOC shareholders. The end result would be OSH owning more of E/A and some of Raptor, Bobcat, Tri, Wahoo, Mule Deer, etc and etc and creating the same number of new shares.

I have no clues and no insights ... nor does anyone else, even those who claim they have "sources"

[cybersssss]

Stavros I sure hope you are correct. Being an investor in ioc over the past 5 years has made me a bit cynical. I feel as if they will offer just enough to make it hard for us to decide.

[Stavros]

My "guess" is that each successive improved bid must be at least a 10% improvement over the previous submission.

The rumors of XOM's bid being $3 billion seem too high.

The current OSH bid is $40 (equivalent in OSH shares) plus some unknown future payments

So I expect XOM to be offering $45 + future CA$H

To top that would require $50 + future >>>> or 20% increase over the current OSH bid.