08-17-2013, 04:04 AM
"PNGIndustryNews.net reported this morning that the XOM deal is dead because the negotiation exclusivity period has ended. ITG Calgary spoke with XOM on a number of occasions about this. Generally, during active negotiations the exclusivity period is a guideline, not a deadline that is commonly exceeded and extended as necessary. We do not believe this is an issue whatsoever."
As I referenced earlier, I would take it a step further and argue that today's report of exclusivity lapsing is a significant positive development, as it implies InterOil is in a very strong negotiating position with compelling alternative bids in hand. It also indicates that the process is coming to a head and the deal will soon move to closure.