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Raymond James on InterOil, June 4

June 4th, 2009 · 4 Comments

For the sake of completeness, we like to have all reserch in one place..

ECM Flash News: InterOil (IOC/$35.75/Strong Buy): $70 MM Private Placement Provides Means to Ramp Drilling Activity; Strengthens Hand in Negotiation Process.

  • InterOil has announced a private placement of just over 2 million common shares at a price of $34.98/share – a penny above yesterday’s close. Proceeds come out to $70.4 million. The offering was drawn from the company’s open shelf registration statement.
  • This capital raise isn’t altogether surprising given InterOil’s stated desire to accelerate its drilling activity following the string of positive drilling results at Antelope-1. The addition of a workover (or development) rig would significantly drive forward the delineation of the Elk/Antelope structure while enabling the current rig to be redeployed to other exploration prospects.
  • From a liquidity standpoint, InterOil wasn’t in a cash crunch by any means, but we view this equity offering as an astute move as the company intensifies its partnership talks. The additional capital should strengthen InterOil’s negotiating position in its ongoing discussions with prospective strategic partners – with the timeline for decisions still pointing towards later this summer, possibly into the fall.

Tags: IOC · Research Reports

4 responses so far ↓

  • 1 kencooksam // Jun 4, 2009 at 7:35 pm

    Good report

  • 2 Harold Chamberlin // Jun 5, 2009 at 4:11 am

    Phil is very smart, and very determined.

  • 3 Lexinvest // Jun 5, 2009 at 7:54 am

    Powerful Promising great future for Interoil. I believe Wayne once said – You never really know what you got until you Drill. Accelerate the Drilling activity!!

  • 4 kencooksam // Jun 5, 2009 at 5:51 pm

    I think IOC might have 15 total T’s right now.10T’s at Antelope 1 alone..That means drilling will be good but its DEAL time. That has to be their prority now..Sign that strategic..That makes IOC’s stock price fly.