Poster squeezefinder Yahoo.
Notes from a friend
I was lucky to have an opportunity to catch up with my buddy who got me involved in IOC and got an update on his thoughts. He was at the IOC annual meeting and has been close to the company for
years. I took some notes:
He thinks the deal with XOM is an amazing one - thinks train 1 locks in $60 - $90 of guaranteed value per IOC share and train 2 another $120 - $160! Thinks Triceratops is worth $15 - $25 and could be much more with T3 drilled. Thinks we get another sell-down this year when Gulf train 1 goes to FID and the $/mcf will be $2-$4 on 2nd sell-down. Company has no need to ever issue stock and next sell-down could come along with a 1X dividend. Thinks the best part of the deal that people don't get is IOC keeping the Gulf deal to itself for now since it will fetch a higher price after deal 1 with XOM is done. Thinks deal announcement happens this month and new CEO announcement most likely in the next week. Thinks if the market believes the new CEO will be a deal maker (do farm outs and get money in the door from other deposits), stock will get a big immediate bump since nobody gives them credit for anything but Elk and Antelope. He thinks the market will be surprised by how smart the XOM deal is and will start to give IOC much more credit. Says XOM's LNG project and Gulf project are two of the world's best and there's still a ton of interest, especially from Shell, TOTAL, CVX, JKM. He said even though the 2009 project agreement isn't relevant or needed anymore since gas sales are governed by the gas agreement (for sale to XOM) and the project agreement will change for Gulf, the market expected Duma to make a stink about the expiration when it happened a week ago. He didn't say a word. Says this is a good sign and his sources in PNG say O'Neill and parliament will fast track all approvals. Says the stock was down on Friday because of Russell rebalancing, but expects a good next few weeks. His fund has been buying aggressively below $85