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From: CommanderCricket	8/19/2011 10:37:01 AM
	Read Replies (1) of 206092

petroeng, Yahoo IOC thread posted this back of envelope comments on the value of IOC. I don't see IOC getting $5 mcf for a sell down and think the number will be closer to $2.5 mcf. Even so the numbers give you something to think about. How to re-value IOC IOC’s present market cap is about ($48.8 million shares x $61.13/sh) $3 Billion. Phil wants to sell a part of Elk/Antelope for $5 to $7/MCF. Elk/Antelope contains 9.4 TCF of which IOC owns about 58%. To be conservative, let’s say Phil can only get $5/MCF and he sells off 10% of IOC’s share of Elk/Antelope. 9.4 TCF x 0.58 x $5/MCF x 0.10 = $2.7 Billion So, IOC’s share of Elk/Antelope would be worth $27 Billion or 9 times the present Market Cap. Another scenario to get IOC revalued: Petromin will own 22.5% of Elk/Antelope. They could sell 10% of the Elk/Antelope Field to Shell for $5/MCF and pick up (9.4 TCF x 0.10 x $5/MCF) $4.7 Billion. If Phil does not make a deal soon Petromin and Shell may set the value of Elk/Antelope Field.

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