Why IOC should have a 10 Billion Market Cap
Oil Search has less than 1 Billion Barrels of Oil Equivalent.
Market Capitalization is $ 9 Billion ...
• Established in Papua New Guinea (PNG) in 1929
• Operates all of PNG’s producing oil and gas fields. Current gross production ~33,500 boepd, net share ~18,500 boepd
• At December 2011, proven reserves were 330 mmboe, proven and probable 553 mmboe plus 318 mmboe 2C resources, taking 2P reserves and 2C resources to 870 mmboe
• PNG Government is largest shareholder with 15%. In early 2009, Govt issued exchangeable bonds over shares to IPIC of Abu Dhabi
• 29% interest in PNG LNG Project, world scale LNG project operated by ExxonMobil. Project in construction, first LNG sales expected 2014
• Exploration interests in PNG and Middle East/North Africa
• Market capitalisation ~US$9 billion. Listed on ASX (Share Code OSH) and POMSOX, plus ADR programme (Share Code OISHY)
By comparison, Interoil believes they have more than 1 Billion Barrels of Oil Equivalent in Elk/ Antelope alone ... Interoil converts gas to BOE as follows (ie 6 TCF = 1 Billion BOE):
All calculations converting natural gas to barrels of oil equivalent (BOE) have been made using a ratio of six mscf of natural gas to one barrel of barrel of oil equivalent. BOE’s may be misleading, particularly if used in isolation. A BOE conversion ratio of six mscf of natural gas to one barrel of crude oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
So IOC should have Market cap well over $10 Billion if you include Triceratops and other acreage.
Just more words. Let IOC prove it finally. nobody believes they can do a deal anymore. Not the bigs, as all buying and a lot of selling has occured since sept. Not the shorts, and not the PNG govt. Look for a duma type slam soon...if no deal is announced.
The Govt wants a qualified operator and their list is very short. The Govt doesnt want JKM as operator, they dont want a hired contract operator, they want a SM to have an equity stake and operate. So far IOC is unable to get this done.
Lay the blame on Phils doorstep, repeatedly trying for EWC and or a similar scheme the Govt and SMs wont go for. Say what you will about economics, but bigs do business the way they do business, thats why they are bigs and EWC's.
Phil better get his s#%^ TOGETHER FAST BOYS.
Gas in the ground is worthless unless it can be sold. IOC currently once again has no deal in the works. This is what the pps said today--very loud and very clear. Why they can't do a deal is the mystery of mysteries, but it seems they just can't. We will hear nothing from them now until last day of March, and only then because they have to tell us something. But the "something" never amounts to anything.
Other than the hundreds of millions in cash flow, the near-completed and fully financed LNG project, 100% offtakes with AAA counterparties, a partnership with Exxon, a completed farm-in with Total, a history of delivery on promises, an ability to get stuff done in PNG, and a dividend, the similarities are striking.
Sentiment: Strong Sell
Bonk: sometimes your responses are so dead on, they are priceless. The funny thing is that Kenny posted the same nonsense at SHU, and did they respond with some of the obvious and material differences? You know the answer to that one...
How much production does OilSearch have? How long has OilSearch had production?
How much production does IOC have? Execution and success and results are the difference between Oilsearch and IOC... I M O
We've been lied to for 10 years about deals and sell downs
IOC can only sign agreements with companies on the verge of bankruptcy
Zero sell downs
Pathetic trading volume which indicates Zero Institutional support
And oh yes, you're long March 60 out of the money calls and you need to sell them to some Chumps.