A while back the thread was speculating about IPC/Sands takeovers and I was distracted from correcting the impression that the two co's are still connected. Razor reminded me with the following ?'s.
<<Wonder why Rice is not interested in IPC paper? What are your thoughts on the matter?>>
FYI, Sands is no longer owned by IPC. IPC bought Sands in `92 and then sold it in `95. I believe that Lukas and probably Adolph Lundin still sit on the board of Sands and certainly own shares, but that is the only relation that Sands has to IPC. Sands was always a mysterious footnote in the old IPC annual reports, nothing to indicate what the HEL they owned, and I havent been able to find anything on the web about them (in English). I presume that they have some limited E & D properties, but I don't know where. Rice would have no interest in Sands paper since there probably isn't a whole lot of asset base there.
<<I also have been wondering about the Oman sale. Maybe they are consciously trying to build up a war chest?>>
The Lundins themselves certainly have the resources to make a run for AKSEF, but their past actions have been to go for value - they like to play for assets where immediate value can be realized by streamlining production. They did this with the Welton fields in UK which IPC bought from BP in 1993, and sold in 1995 for a profit with positive cash flow in between. They tried to buy into a huge oil field in Turkmenistan in 1995 (JV with Larmag Energy and Cheleken), for $10M in cash plus an agreement to spend $25M over two years for E & D, but were refused an export license by the government. IMO, they would have to pay too dearly to get a controlling interest in our little barker, but they may spend enough to get another board seat. I don't know if doing that through IPC (with its $26.5M war chest) rather than Sands would be the way they would go. IPC is just on the verge of SHOWING US THE OIL (as some astute gentleman phrased it) in Malaysia starting 7/1, so that money may just be earmarked for continued development there.
<<A new sound began to impress itself on them: a muted whisper, a hissing, an abrasive slithering.
"Worm," Paul said.
It grew louder...>>
Alex |
