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+--- Thread: Exxon Mgt comments today (/showthread.php?tid=4225)
Exxon Mgt comments today - jft310 - 07-23-2013
Exxon mgt team at Society General today. Stated PNG was their "Most Exciting Opportunity"
RE: Exxon Mgt comments today - jft310 - 07-23-2013
pickboone heard what I heard yesterday. Heres his yahoo postXOM and yesterday's action
During Exxon's roadshow with Soc Gen yesterday, management was reported to have touted Papua New Guinea as one of the most attractive opportunities in the company's entire global portfolio and emphasized that it will be a big focus going forward. The implications of this for InterOil were partially grasped yesterday, but they're much greater than most have absorbed.
Firstly, Exxon will be InterOil's partner in PRL 15 and it's likely to deploy its additional resources and rig capacity to InterOil's acreage (even beyond the rigs committed to Elk/Antelope in the SPA) given that PRL 15 will contain Exxon's most prospective acreage. The limited drilling and lack of development of InterOil's acreage has caused the market to ascribe value to just Elk/Antelope and no value to anything else, but if the deployment of resources by Exxon and other supermajors to InterOil's PRL and three PPL's starts to materialize, the market will start to ascribe lots of value to the company's nearly 4 million acres, which many believe host the entire cluster of large reefs in PNG.
Exxon is likely going to pay a value for just PRL 15 that implies big upside to InterOil's stock (50 - 100% just based on PRL 15?), and investors have an opportunity to buy InterOil at a significant discount to the value that the great Exxon is likely paying just for PRL 15. But with PNG being such an important focus for Exxon, there's almost no question that further PNG LNG train expansion will occur and that the Gulf project will be built, completely revaluing the remaining gas/condensates in Elk/Antelope, Triceratops, and the remaining ~4 million acres.
In conclusion, the biggest and arguably smartest energy company in the world with a $420 billion market cap yesterday touted little PNG as its top opportunity and focus. Little $4 billion InterOil has a lock on the best exploration land in the country, the most resources, and the lowest cost resources. Do the math