Sell down or buyout??

[ebster123]

Which do you believe will be the final outcome in the near term (1-3 months)?

[kommonsents]

The assets of Interoil will never be worth less than they are today, barring the bottom dropping out of the energy market, and even then, Interoil's resources are marketable at much higher prices than today's valuation.

Therefore, any SM, NOC, or Utility will be most interested in acquiring those assets.

So. I expect IOC to be either bought out or that its assets will be sold to the highest bidder and that the price will be in excess of $2.50.

Nothing else makes sense to me.

JMHO

[stevejackson]

Since the portion of PRE was $2.80 why would they settle for anything less?  I think that is the ONLY item of concern that is not done yet.  Once the New company decides that it is worth it they will pull the trigger.

[admin]

The one thing I really don't want is a buy-out. I think the development path in front of IOC post-deal is far more attractive. There will be a clear path to monetization. The odds of finding more big reef filled with gas, liquids, and perhaps even oil must be pretty good, and with infrastructure and an LNG plant already under construction IOC's take from those is going to be bigger, provided they make more discoveries.

[kommonsents]

I agree, I prefer no buy-out.

I would much rather look forward to collecting dividends of $50 to $75/share per year, maybe more, for the rest of my life.

[admin]

I'm already looking forward to Pet providing interpretations of 5+ drilling updates simultaneously (providing he's still willing to do that, of course).