We provided a couple of things that could be going on, here is a third possibility…
It has already been published elsewhere, but for the sake of completeness:
InterOil Corp. (IOC/$35.00/Strong Buy): Article Highlights Growing Interest in PNG Upstream and LNG Projects, Sparks Run-Up for IOC Shares
- In an article published yesterday in the Business Standard, it was reported that Petronet LNG – an Indian-based energy company – is actively looking to acquire stakes in gas fields as well as LNG facilities located in Papua New Guinea. The article was prompted by comments made by Petronet’s CEO, who made mention that the process will likely be concluded by year-end.
- From the standpoint of InterOil, this is an obvious positive in that it highlights the burgeoning interest in upstream and LNG projects in Papua New Guinea. While it is widely known that InterOil has been actively negotiating with a number of parties, it is always nice to put a name/face to one of the potential suitors – emphasis on potential, as InterOil management confirms that no partnership has been reached with any company as of yet. Plainly, we believe this article has prompted the run-up in the shares of IOC over the past couple days – up nearly 20%.