InterOil’s Elk/Antelope Resource RevisitedJul 12 2013, 08:41 | about: IOC, includes: XOMDisclosure: I am long IOC. More…InterOil IOC is a Canadian gas exploration company that has big licenses in Papua New Guinea PNG, as well as a refinery and a series of gas stations and distribution centers. IOC is our oldest long which we’re still bullish on and which has performed quite well.After an extensive period of searching for the best partner, enabled by three investment bankers, Exxon XOM has emerged as the final bidder, and the company has entered into direct negotiations to supply gas for a third train to Exxon’s nearly finished LNG plant in PNG.Central to that deal, and to InterOil’s value proposition in general, is the Elk/Antelope E/A resource. Without E/A, InterOil would be worth a fraction of what it’s worth. Central to the short thesis is the argument that Elk/Antelope isn’t what InterOil argues it is. Unfortunately few of the big shorts go on record making this argument, let alone substantiate it.