There will be a sudden press release announcing the signed contractual agreement between IOC and Exxon which has been approved by the PNG government. . Exxon will have an interest in a percentage of IOC's Elk & Antelope gas field sufficient to supply gas for another train. Exxon will also be paying large sums of $ to IOC upon signing and subsequently to signing. Exxon & IOC will be partners with Exxon funding most of the cost for further drilling and possibly also funding drilling for other IOC properties. If you are skeptical of my comments, just look at the huge premiums being paid for IOC out of the money calls in July and September. Or read the news articles from Platt that state IOC & Exxon have already agreed on most significant points. Or think about the hedge fund that just announced a recent purchase of about 300,000 shares of IOC at almost $82.00 a share. Or think about the numerous other major holders of IOC who have held or added to their positions. Or think about the value of the oil like liquids that are in IOC's gas that will be removed from the gas. People smarter than I on SHU have computed that these liquids alone are valued at more then $10,000,000,000 ( BILLION!) Pretty good situation for IOC longs, whereas shorts have great difficulty buying back their 13 million short shares without spiking the price. Less
I tend to agree with you but it is getting frustrating watching the stock gap lower then the bounce upward. Right now IOC should be slowly climbing, not slowly descending. However, I'm hoping $78 holds as support and the stock rebounds up into the mid $80s by Thursday or Friday. I'm not predicting, just hoping the charts are with me. Lastly, if IOC does drop to $71. witch it has strong support, I'll buy more!
Good post sail; it really is a very good deal, and the fact that over 3 million additional shares were wrapped up by the big boys bringing the top 40 shareholders portion of the IOC pie to over 88% is very significant. I think that it ends very soon; in under 2 weeks.