Valuation thoughts

[sltibbs]

Concerning the valuation of IOC, while I am disappointed with the price per mcf, as I currently understand it, it is important to note that the largest contribution to IOC’s valuation is that the remaining 30% ownership is now effectively unstranded (I assume the partnering with Total as a credible signal of such). So I have attached a spreadsheet to estimate the value of the remaining interest and the selldown value. If you find any errors or have any insight, please share. This is not advice to buy or sell, just trying to share info as others have shared with me.

Best,

Sam

[Putncalls]

Buy the time they get big payout IOC will have drilled at least on more prospect.

[jft310]

Sam

I see your work assumes 11 million new shares issued . Several persons have heard that the Chandlet types don't like dilution.

And one solution that's has several sources says the IPI would receive $250 million upfront from the Total closing dollars see

Pavels work and a

further variable payment based on the final certification numbers . For illustrative purposes use 7.5 T's and an IPI payment of

$400 million from the Total check.

The dilution hurts the numbers more than the cash payments or your numbers are better without dilution.

Thanks

[mikesioc]

Sam

I see your work assumes 11 million new shares issued . Several persons have heard that the Chandlet types don't like dilution.

And one solution that's has several sources says the IPI would receive $250 million upfront from the Total closing dollars see

Pavels work and a

further variable payment based on the final certification numbers . For illustrative purposes use 7.5 T's and an IPI payment of

$400 million from the Total check.

The dilution hurts the numbers more than the cash payments or your numbers are better without dilution.

Thanks

What is the point to comment on a post from 12/6 floating a 22% dilution?  Seriously.  What is your intent?

[jft310]

[quote='jft310' pid='35448' dateline='1388581542']

Sam

I see your work assumes 11 million new shares issued . Several persons have heard that the Chandlet types don't like dilution.

And one solution that's has several sources says the IPI would receive $250 million upfront from the Total closing dollars see

Pavels work and a

further variable payment based on the final certification numbers . For illustrative purposes use 7.5 T's and an IPI payment of

$400 million from the Total check.

The dilution hurts the numbers more than the cash payments or your numbers are better without dilution.

Thanks

What is the point to comment on a post from 12/6 floating a 22% dilution?  Seriously.  What is your intent?

Mike-I asked what if there was no dilution? How does that change the numbers?

Do you know who Sam is?

To help , Sam is a PHD in Finance and a Chartered Financial analysts and yes removing dilution would change the numbers

Many can't do that math so let Sam help, simple request

speed reading were you?

[Putncalls]

It seems that the market no longer "trusts" IOC's resource estimate. The last A well was pretty much as expected. If IOC E/A has 9+Ts then the gas in the ground that IOC owns should be valued at 1.29$/MCF? If it is; then giving the IPI 11 million shares would be about 1.4 billion dollars?