Dr. Hession said today's transformational, company-making transaction would significantly benefit InterOil shareholders and the Papua New Guinea people.
"It is satisfying that Total, one of the world's largest international oil and gas companies, shares our faith in developing Elk-Antelope, a world-class hydrocarbon resource and one of the largest discoveries in Asia in the past 20 years," Dr. Hession said.
"Total is a world-class operator and will bring experience and expertise to a development that will diversify Papua New Guinea's hydrocarbon sector.
"InterOil, with more than 1,000 employees, is already a significant contributor to Papua New Guinea's economy and we remain confident that this deal will lead to continued investment, increased Government revenue and job creation, particularly in the Gulf Province.
"We will work alongside Total to help develop further expertise among Papua New Guineans in the country's oil and gas industry.
"We will also work with the Papua New Guinea Government to develop proposals for setting aside gas for generation of affordable electricity throughout Papua New Guinea.
"This is a great day for InterOil's investors, Papua New Guinea, and the people who work for us."
Dr. Hession added that the transaction was a key to meeting the company's priority objectives of maximising shareholder value, monetising Elk-Antelope, progressing development of an integrated LNG project, strengthening its financial position, and continuing its extensive exploration program.
The agreement with Total provides for fixed and variable resource-based payments:
-- Fixed payments to InterOil include US$613 million on transaction completion, which is expected in Q1 2014; US$112 million on a final investment decision for a new LNG plant; and US$100 million at first LNG cargo from the proposed LNG facility.
-- In addition to these fixed amounts, variable payments for amounts in excess of 3.5 Tcfe for the gas resource will depend on certification by two independent certifiers following up to three appraisal wells to be drilled in PRL15.
In addition, Total has agreed to make a payment of US$100 million per tcfe for volumes over one tcfe for additional resources discovered in PRL15 from one exploration well. Any payment would be made at first gas from the proposed Elk-Antelope LNG facility.
Their choice I guess.
O'Neil is (of course) the Papua New Guinea's Prime Minister......
""As long as we create a business model which is managed outside the public service structure, and governance issues are addressed properly, the opportunity will yield good returns for our country."
Several Asian countries, he says, "have succeeded economically with very limited resources. We have an abundance. Our only problem has been our management of them".
"If we structure well, there is no reason why we shouldn't succeed as they have done, with professional managements and independent boards, and an ability to achieve global branding."
PNG has two trains of liquefied natural gas under way via the $19.5bn ExxonMobil-led project coming on stream next year, and O'Neill expects the gas resources controlled by Interoil to provide a further two trains. And a deal is moving closer whereby Interoil will obtain a major international partner; probably by Christmas, O'Neill expects.
This would create an LNG hub in PNG almost the size of Australia's North West Shelf, which has five gas trains.
The government is putting an increased focus on small and medium-sized firms, he says, "trying to get Papua New Guineans into business"
A short would have been a good gamble to hold through the end of the year under the old CEO, since every single pop and every single "a deal is near" ended the same....a drop and no deal.
With the new CEO, the risk/reward ratio has changed. It is much more likely for a new CEO to NOT follow in the footsteps of upsetting shareholders. It is a strategy for a (re)mass exodus of shareholders and a loss of a nice CEO job.
Smart shorts played the overbought situation and waited until a retracement to oversold conditions were in place, before covering. Those smart shorts are covering this morning. The rest of the shorts? They would be wise to cover along with the smart ones.
The downside was a nice healthy and expected pullback on low volume compared to the increase. Check the daily colume......its drying up.....another good sign.
A traders wet dream........up we go!
Didnt MS have to suspend coverage b/c they were involved in the negotiations?
Young is in his upper 60s and stepped away from the position once already. It wouldnt surprise me if he was positioning himself for retirement. Based on his history, he will likely put his company back on the growth track before either taking the company private or retiring.
IMO only.....do your own DD and for the love of Sonora, think for yourselves!
Go listen to the cc. Alot of signs point to a bottom here......people (including me) buying on that bet (see my summary of the cc in that thread if you dont have time)
All IMO......do your own DD and think for yourselves!!
Me likeeee. I bought some of my shares back. Not all in by any stretch, but worth gambling on a bottom here. Alot of signs of an improving 4th quarter.
All IMO......think for yourselves.
1) Margins: "we believe our margins have stabilized, as many of the factors that have negatively impacted our business over the several -- last several quarters have been resolved, and we are beginning to see improvement"
2) Cash INCREASED by $3.4 mil this quarter to $48.4mil
3) Semi-insulating GaAs: "Some modest improvement is expected in the fourth quarter" "....the impact to our industry has largely been absorbed......to accommodate the presence of SOI"
"we have focused significant effort on ramping up our market presence in HBT devices. These have largely being unaffected by SOI, and will present new opportunity for AXT. We hope to see revenue growth for this application in 2014."
"....we made significant progress during the quarter with one of our larger customers for which a technical issue has impacted our sales this year. We expect to begin building our revenue base late this year into 2014."
4) Semiconducting GaAs: "we don't expect much of a change in the fourth quarter"
5) 2 catalysts for improving revenue (in addition to marekt improvement): "We expect to see additional revenue from both of these catalysts in 2014"
a) going after lower end business which historically was lower margin....however, this margin difference has lessened to the point where it makes sense to pursue
b) "we're actively qualifying into some sizable customers, in which we have little or no business with currently"
6) Germanium: Strong quarter but raw material costs continue to rise and is starting to eat into margins. GaAs substrates for CPV are getting hihger efficiencies (as has been posted here) but Ge is what is being used in the current projects. Soltec is building a 44MW CPV plant, fully funded. Money is coming into CPV projects, demonstrating the maturity and lower risk seen by financiers. Good long term.
7) InP: revenue down this quarter due to 1 customer that should increase again in 4th quarter
8) Raw material sales are ~$5mil/quarter and GaAs prices have stabalized
LMFAO!!! And you silly righties thought it all reid!!
Reids chief of staff leaked the emails! Lmfao!
Hey Jack.....I wouldnt say 100% GOP, but I would say 99%. They were the ones that REFUSED FOR MONTHS!!! to appoint conferees (look it up) to negotiate over the budget in both the house and the senate. In other words.....they KNEW the shutdown was coming. Not only that, but it was part of their strategy months ago!
Seriously Jack.....did you expect the dems and Obama to bargain with Obamacare? Any sane person would say no. It would have been like Bush bargaining with his tax cuts......wasnt gonna happen then and it wasnt gonna happen now. The GOP KNEW this......yet they did it anyway.
Wait....I thought the GOP shut down the govt b/c they were worried Obamacare cost too much???!!!
The GOP is lying to you guys......wake up.
Here's the price tag for the first government shutdown in 17 years: about $1.6 billion a week, $300 million a day, or $12.5 million an hour.
That estimate, from economic consulting firm IHS Global Insight.
House Republicans REFUSED for MONTHS to appoint conferees to negotiate over the budgets in both the House and Senate, which would have resolved this impasse.
FACT.....this plan was laid out months ago by the GOP.
Also.....if a bill was voted on today separating the budget from the ACA, it would pass. But.....Boehner refuses to bring it to a vote.
There are the facts for those that questioned them.
In summary....Obamacare is good for small business, good for American workers and good for families.
A tax credit for small businesses under Obamacare
9:16 AM ET 10/2/13 | Marketwatch
The Obamacare rollout is officially under way. The good news: small businesses can potentially qualify for a tax credit that can cover up to 35% of the cost of providing health coverage for employees. And you don't have to navigate an insurance exchange website to take advantage. Here's what you need to know.
Eligible Small Businesses
To claim the credit, your business must have 24 or fewer full-time-equivalent (FTE) workers with an average FTE wage under $50,000, and you must pay at least 50% of the cost of health coverage for all enrolled employees.
You must pay the same percentage of costs for all enrolled employees, including those with more-expensive family coverage.
The credit can be claimed by any type of business that meets the eligibility rules--including C and S corporations, partnerships, limited liability companies, and sole proprietorships.
The maximum possible credit equals 35% of the lesser of: (1) the actual cost of coverage or (2) the imaginary cost of "benchmark" coverage in the small-group market as determined on a state-by-state basis by the Department of Health and Human Services.
If your company pays less than 100% of the actual cost of coverage (with employees picking up the balance), you can only claim the credit for the cost you pay (whether the credit is based on actual cost or the imaginary benchmark cost).
Your company's federal income tax deduction for employee health costs is reduced by the amount of the credit.
A very good friend of mine started and owns a small pharmacy that only serves long-term care....specifically the elderly. His company pays $40,000 per year in health insurance costs. Before Obamacare, the only break he got was being able to write these costs off on his taxes.
After Obamacare, he actually gets a CREDIT, worth 35% of his total healthcae costs. In other words, his company will SAVE $14,000 because of Obamacare. Next year the credit goes up to 50% so he will save $20,000 per year moving forward.
The small business owners you here complaining DO NOT PROVIDE THEIR EMPLOYEES HEALTH CARE and will thus have to pay extra.
Those companies that actually pay a living wage and provide health care to their employees will benefit from Obamacare.
Sounds good to me!!!
You know who to blame......the extreme right-wing that has hijacked the GOP. Guys like Rand Paul and Ted Cruz that are more worried about fame and fortune, pulling political stunts instead of the American people.
They KNEW Obama and the dems wouldnt budge on the ACA.......they KNEW when they targeting it that ti would lead to this. Yet.......they dont care. They are more concerned about being re-elected and getting a job on fixed news.
Its a sad day in the US and the extreme right-wing of the GOP are 99% to blame.