Oil Search Valuation & Target Price, page-488

Had some feedback from a Friend and Broker. His Logic is that Post Merger Oil Search and InterOil Merger, TotalSA is a Total Winner while Oil Search will face 20% Dilution. Minimum Dilution is around 15%.
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.. Looking at current LNG price and expected Low LNG Price for some more time, that is not a good news for Oil Search or any Australian LNG Producer, which basically means Oil Search EPS will drop by 15% post Inter Oil Merger.
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As far as Buy Back is Concerned, that is over 12 months period(If any cash is left. CEO/MD/Directors Salaries/Bonus comes first, only left over will be used for Buy back)
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Positive hope is if Inteoil Resource comes at the top end. However that will happen during end of 2016 or early 2017. That's why INSTO are busy in heavy Short Selling Oil Search n each tiny positive up move as they have Plenty time to Recover their Shorts between now and post Merger.
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Also LNG price is a slow moving train. It takes 1 month to move little bit up or down. So LNG price will not surge like Oil Price does.
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How ever, Low LNG Price should affect more to Australian LNG Project as feedstock (gas)cost and Energy Cost for Liquification(or Liquifaction) plus Manpower are only going to go up not down....Those are fixed cost and can't be cut.
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