"Attention will now center on what ..Hession intends to do with the cash" -AFR

[davidhmtk]

Two thoughts - buy back the PRE stake in Triceratops comes second best to a stock buyback of 2.5m shares (5%) for any shares available under 90.

http://www.afr.com/Blogs/Opinion_Street%...b367f4b17d

[ArtM72]

Seems to me the PRE deal had better terms than the Total deal, of course the latter was pretty much a shotgun wedding. IOC will need cash for the LNG plant, and you can always get a better loan deal if you don't need the money.

[jft310]

Hession is gonna build an LNG plant with Total with the cash . That should not be rocket science .

[davidhmtk]

Hession is gonna build an LNG plant with Total with the cash . That should not be rocket science .

Disagree JFT.  Buy back 4m shares for $75 = $300/m

Price at 100, issue shares in Australia/Singapore using the shares you just bought.  Thats a nice profit ($60m)

[sageo]

Hession is gonna build an LNG plant with Total with the cash . That should not be rocket science .

Disagree JFT.  Buy back 4m shares for $75 = $300/m

Price at 100, issue shares in Australia/Singapore using the shares you just bought.  Thats a nice profit ($60m)

David - Mr. Hession already has a lot of balls in the air . Can he juggle one more is the question.

[admin]

All that financial engineering stuff, dunno.. I'm with JFT here, lets drill and build that LNG plant, some real business

[trans]

If there's ever been a more favorable time to issue a stock dividend, I haven't seen it.  A stock dividend would cost nothing, but the big short interest would have to buy and deliver that dividend to stockholders they have borrowed stock from.  Especially right here with fundamentals improving noticeably and big shorts (yes, they are working the stock daily, maybe half of what was there early 2014).   They would definitely not want to have to deliver a stock dividend to anyone........Hear me management??????   trans

[sageo]

If there's ever been a more favorable time to issue a stock dividend, I haven't seen it.  A stock dividend would cost nothing, but the big short interest would have to buy and deliver that dividend to stockholders they have borrowed stock from.  Especially right here with fundamentals improving noticeably and big shorts (yes, they are working the stock daily, maybe half of what was there early 2014).   They would definitely not want to have to deliver a stock dividend to anyone........Hear me management??????   trans

Trans - You may be on to something. It has been brought up in the past,but at this particular junture in our present situation, it could have a lot more merit Appreciate all your help .

[jft310]

FID costs for IOC are @ $1.5 Billion required in cash, plus the cost of this drilling program plus recertification costs maybe $500 million needed.
Interoil should be approaching a Billion dollars in cash but they have a need for that cash. To reach FID you need the financing in place.
Now if Morgan and GLJ are correct about the size of E/A which I think they are then next spring/summer there will be extra cash. That's not known today though. I expect zero cash dividends near term based on the above facts.

[davidhmtk]

FID costs for IOC are @ $1.5 Billion required in cash, plus the cost of this drilling program plus recertification costs maybe $500 million needed. Interoil should be approaching a Billion dollars in cash but they have a need for that cash. To reach FID you need the financing in place. Now if Morgan and GLJ are correct about the size of E/A which I think they are then next spring/summer there will be extra cash. That's not known today though. I expect zero cash dividends near term based on the above facts.

JFT - 1.  There will be an Australian listing, AFR is now our paper of record.  2.  A listing requires shares, so IOC will issue shares for cash.  So they will get cash, the amount of which is greater if the stock price is higher.  Right?  So, in this case, shouldn't management do some financial engineering ( share repurchase and/or Trans' thought of a stock dividend )?  I'm thinking they are good jugglers behind the jungle curtain and the mud wrestlers will get as much support as they need.