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InterOil at the IPAA

April 14th, 2010 · 2 Comments

Everyone should read the presentation InterOil gave this morning…

You can find it here.

Somepages you want to read:

  • 14: Production test instant pressure recovery
  • 15: Antelope1 production test data (calculated by SGS Testing Services and confirmed by Weatherford)
  • 16: Antelope2 production test data calculated by Weatherford
  • 20: InterOil is making the full GLJ report available
  • 22: turns out Elk/Antelope is the biggest field on PNG by far, being 1.5x as big as OilSearch Hides field
  • 23: Why they are drilling horizontally at Antelope2
  • 25: Elk/Antelope not the only structure and there seems to be connection with one, perhaps two other
  • 26: seismics on Elk/Antelope still ongoing (phase1), as well as on other structures (phase2)
  • 36: One land based LNG plant but an earlier floating LNG plant!

We also have a first hand account of what happened after the presentation:

  • I was at the IPAA presentation this morning, and won’t repeat what you all can hear for yourselves. But I will tell you that there were something like 70 people in the breakout (Q&A) room after, and they almost all stayed for the entire hour. (In money manager time that is an eternity.) There were also some rather senior wall street players in that room.
  • It was clear from the answers about “deals” that the Mitsui transaction is on track to happen by the end of this month, if not sooner. With that financing in their pockets, the ability to price the LNG partnerships is enhanced, as is the ability for IOC to borrow from banks/other financing parties, at excellent rates.
  • Look for Japan to be a major player, even after Mitsui’s involvement is cemented. The work for the condensate plant that can already be begun has. Roads, pads, etc. are all being built. The actual design of the modules hinges on the results of the horizontal drilling at Antelope 2. That should be done before the end of this month as well. While there were other areas covered, perhaps the most telling takeaway for me was that the company is cranked about future drilling prospects. While they are not drilling now to keep their options open re: financing, jv’s, etc. they are continuing to have seismic work done. And it is certainly making Phil and Wayne happy. Good luck to all shorts here. You need it, and it won’t help you longer term. Longs just need to be a little more patient before the partying starts in earnest.

The stock is a little soft this morning as deals will not happen today, but the stripping plant should be in soon.

Tags: IOC

2 responses so far ↓

  • 1 Roger // Apr 14, 2010 at 7:29 pm

    Excellent work STP, thank you!

  • 2 Bruce // Apr 14, 2010 at 8:01 pm

    Any discussion of how far along they were in the horizontal section? I feel the first horizontal pipe failure held up the Mitsui deal. The understanding of the exact make up of the liquids is important to Mitsui in terms of value they are willing to pay and designing the stripping tranes. Be comforting to know when/if that drilling gets done without another hitch and another deal delay. Anybody see or hear what the new seismics show? Something bigger than Antelope? We can sell the addititional new stuff to China and India on a cash up front basis only! I quess China’s treatment of BHP employees did set to well with Phil and Company.