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InterOil Corporation Message Board

  • raiseyou33 raiseyou33 Jan 14, 2014 12:54 PM Flag

    IPI Deal Structure

    I have no experience with these kinds of sophisticated deals but I wonder why the IPI deal with IOC cannot be similar to the IOC deal with Total.

    Pay me now and possibly pay me later.

    This would be a combination of cash and stock. A certain level of cash for immediate payment and the receipt of IOC stock as a kicker if E/A drilling goes well.

    That would align with the cost structure of the deal IOC has signed with Total.

    I don't see how it would be dillutive in all of our collective ownership of E/A as IOC stockholders.

    We would have a lower percentage ownership in IOC, who in turn, would have a higher percentage ownership in E/A. That would be neutral in terms of E/A.

    The issuance of stock would dilute our (current shareholders) ownership of Tri and the other prospects but it is difficult to apply any monetary value to that ownership at this point anyway.

    I would support such an arrangement, despite the dilution, as it would simplify our interests and provide more certainty of monetization.

    Just my useless thoughts.


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