It's the resource. I own Interoil because I think there is great value in owning a piece of 10 Trillion cf of gas and liquids in the Elk/Antelope resource. I own Interoil because I believe they ultimately will discover well beyond what they have at E/A in Triceratops, PPL 236 and additional prospects. Longer term, I believe 20 Trillion cf is almost certain and 30 Trillion is possible. I believe the resource is extremely well postioned in both geography and in time. Meaning the AsiaPacific region and the price and demand that exists in the region currently and out into the future. I believe the resource will be monetized by Interoil or by another company. In either scenario, I believe the resource will be monetized at a value higher or significantly higher then how it is priced today. KISS. If somone can show me why these basic tenants are not correct, I'm all ears. However, after 5+ years of owning IOC, my confidence and conviction has only increased due to the facts.
I have great admiration and respect for Phil and the Interoil management team for having the vision, intelligence, skill sets and tenacity to create and build a 3.5 billion company in PNG. Quite remarkable. Do I think there have been missteps and mistakes by Phil and management over the last few years? Yes. Would I like them to learn from those mistakes and avoid making them again? Yes. Do I think any CEO or management team under the same type of scrutiny we see here at Interoil could be easily criticized? Yes! And I say this as somone who started a company and had to evelove it from start-up to maturity. Are there always growing pains and mistakes? Yes. Learn and move forward.
ltinvest stand for long term invest. But I'm as eager as anyone to see Interoil execute and finalize the sell down process. It will reset the value of the company at a higher base. It will derisk the company substantially and remove much of discount that currently exists. It will create the timeline to first cash flows from CSP and LNG. And I'm especially excited about funding a more agressive drilling program to get after all these prospects. I'm perplexed by those whom criticize Interoil for saying too much and now criticize them for saying too little. See above paragraph. That's a result of the learning curve. I don't know if it's Shell, Exxon, JKM, Total, PTT, or all of the above. I'm on the record as saying JKM. But recent due diligence meant I was not that surprised when Friday's article came out. The same due diligence makes me believe we are closer than not to annoucing the sell down.
Feel free to agree or disagree. Just don't call me names 