Hession's strategy is showing light::
1)By mobilizing the 3 rigs and announcing 6 wells that puts pressure on the IPI investors. We know that IOC bought back 4.25% of the IPI interest last quarter because thats in the quarters note. That raises IOC's interest from 58.6% to 62.85%. Looking forward the current IPI would have to not pay one well at a time but now for six wells.If IOC is spending $250 million a 1 % cash call would be $2.5 million, That would be a large slug of cash for anyone to just wire in to Interoil. I think this cash call will force more IPI to convert their interest to IOC shares. I guess and don't know that IOC would want 75% of the assets found. I assume this has to happen and quickly.
2)Why were certain drilling targets picked to drill vs others. For that we need to go back in history. Why was the name Interoil chosen???It contained the word oil and that was the original goal find oil.When Phil obtained these licenses one of the selling features to investors was to look at at a map and see more than 40 areas where OIl and NG was seaping out of the ground. In 2003 Interoil paid Australian firm Csiro to evaluate the fields. They came back and stated all of IOC's NG had come from oil. Phil then had confirmation that somwehere there was oil. Hessions has chosen wells to drill where the chances of finding oil are high. I guess Hession is on an oil search and will take NG if theres no oil..
The above are my opinions formed after watching Interoil since 2003. They are not sourced from anyone except my common sense evaluations..Others may have other opinions.