As of today RJ has published an updated "E & P Catalyst Outlook" that includes two anticipated events or announcements for IOC:
1. Resource selldown to Exxon: InterOil is in negotiations with Exxon regarding the sale of a stake in PRL 15 (which includes the Elk/Antelope resource base); Exxon will utilize the gas to supply an additional train for its under-construction LNG project; InterOil retains the right to build a competing LNG project with the remaining resource; the selldown's fiscal terms have yet to be announced. Exclusivity expired, opening the door for other players to negotiate. ANTICIPATED DATE: 3Q13. MAGNITUDE/IMPACT: HIGH.
2. Longer-term resource development strategy: Once the resource selldown being negotiated is finalized, InterOil will be able to disclose the strategy for developing its remaining resource base, which may include a separate LNG project and/or condensate stripping plant. ANTICIPATED DATE: TBA. MAGNITUDE/IMPACT: HIGH.
Time running out for you, shorts.
Sentiment: Strong Buy
Raymond James did about 40+ million in debenture deals for InterOil. Part of the deal is that they continue to put out favorable analyst DRIVEL for their CLIENT. One would be wise to avoid such fluffy verbiage and do your own DD and Research. InterOil lacks the financial and technical capacity to develop LNG in Papua New Guinea. There is no "deal" just rumor and deal "suggestion". This game has been going on since 2006 when they found some stranded gas. What no one talks about is just how imprecise and contingent trying to assess underground gas reservoirs really is
Sentiment: Strong Sell
As always, the question is whether RJ or any other analyst knows any more than we do on this MB, which is nothing. The action of the IOC pps certainly does not suggest that any announcements are coming during 3Q, which has only another month to run. If RJ's commentary does not move the stock up next Tuesday, then what will?