Agreed... I don't like at all how they seemingly are blowing through the 400 million from Total and the money from selling the refinery. This has the potential to end up putting Interoil in a very bad position IF the certification comes in at 7-8TCF.
I honestly see a pathway to 10-20 dollars per share and given Wahoo a bust, Triceritops basically nothing, and Hession's unwillingness to speak directly about resource certification numbers... I'm out.
Good Luck to all longs, but the risk outweighs the reward to me and I am out as of yesterday afternoon.
This guys got too loaded on debt, and I posted that when they bought into the Oil Field.
Nobody is buying assets right now because everyone got themselves into the same over leveraged position.
Asset sales are going to be happening in BK court, or the company will wipe out equity... pay 50 cents on the dollar to creditors and keep on drilling.... hopefully with a more conservative management team.
Or asset sales don't bring a 1/10th of the value when everyone is trying to sell assets because they have too much debt... they run out of cash, and file for BK.
Assets are finally sold in bankruptcy, shareholders wiped out and bond holders get 50 cents on the dollar.
Which, with these oil prices, I'm sure IOC is pushing for ANT-7.... If partners don't go for ANT-7, Interoil is going to have to work on managing costs until NG is higher and they can FID. ergo.... slow everything down and wait.
XOM is my top pick too.... but holding back. albeit, XOM was 80 in 2008... It really hasn't went anywhere either over the last 8 years.
Not holding my breath for a turn in the O&G sector as a whole. Way to much carnage. UPL and CHK down 80% off their 52 week highs and looking like BK candidates within the next year. When we start seeing that, and the majors are buying companies for less than the debt.... I'll believe we hit bottom.
no, I've been making that statement for months. It's only logical to assume that Total make a bid if there is 9+TCF at Elk/ANT.... and the more NG, the more it makes sense as the spread between what they have to pay for 40% of PRL-15 and IOC's market cap widens.
I'll stand by my statement that it doesn't make sense for Total not to make an offer if ELK/ANT has 9+TCF. Total will end up paying more than Interoil's entire market cap for 40% of just PRL-15.
ya... think we're just gonna have to agree to disagree. I don't think he had much of a choice and Total was the only option that allowed IOC to keep the licenses. I'm just glad he got FIXED pricing with upside. Should be fine going forward.