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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Sweet Ol who wrote (196041)	4/4/2016 2:58:18 PM
From: Salt'n'Peppa	1 Recommendation Recommended By Bruce L Read Replies (2) of 206084

Doubled up my shares in the low $30's as I am a believer long term. I fail to see how Interoil will not get taken over. The current market cap is less than the minimum expected resource payment from TOT. I'd like to write covered calls on some of my shares but premiums suck at the moment, so just holding. Regarding a takeover, TOT could pay a 70% premium over today's price for all of IOC and come out ahead of just remaining a partner. They would get an additional 5 tcf (and growing) outside of the Elk/Antelope field, plus 4 million net acres of prospective PNG land, none of which has an exploration commitment for several years. It is virtually zero risk to TOT since they have to make that payment to IOC anyway. They would eliminate that $1.8B payment if they owned Interoil. Interoil has a floor price equal to the TOT resource payment, which is not commodity price dependent, so downside risk is very low. That doesn't mean that the pps won't trade under $30 again, but it won't stay there. Again, all IMO.

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