InterOil news II

Never a dull moment. Jack Hamilton, CEO of liquid Niugini, had a couple of things to say in an article that appeared in a local newspaper. This is what he had to say:

Liquid Niugini Gas CEO Dr Jack Hamilton told drilling progress at Elk-4 was around 30m a day and further details of the discovery are likely to be announced within days.

Hamilton said a series of meetings were held with the PNG Government on the back of the recent Australia-PNG Business Council Forum in Cairns, with positive discussions held over the company’s liquefied natural gas project.

Hamilton acknowledged the PNG Government may be awaiting the full results of Elk-4 and said the negotiation process could come to a resolution over the next few weeks.

So, we are likely to have news about Elk4 within days. It looks like that conference call on Thursday morning is going to be quite important… However, as good as the financing terms are, InterOil seem to have lost Merrill Lynch as it’s investment banker, and since the shares are terribly overbought at the moment, it could be time for a breather.

If the news about Elk4 is good, this is not likely to last long though. We would have liked to provide a chart containing technical analysis (and showing a significant overbought situation), but we’re experiencing some technical problems. However, you can see the chart here.