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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (28378)	12/21/2003 11:04:01 PM
From: Fiscally Conservative	Respond to of 206325

how about FXEN?

To: Ed Ajootian who wrote (28378)	9/11/2004 8:15:58 AM
From: Ed Ajootian	Read Replies (2) \| Respond to of 206325

Interoil (IOC) -- They finally got on the Amex and the stock seems to be responding very nicely as a result. Yesterday they had record volume when you combine the action on the TSE and the Amex. This company has become a fully integrated oil company with a niche operation in Papua New Guinea. They explore for oil there, they now have an operating refinery there (the only one there), and they own a large number of gas stations there. Since they have their own refinery, their threshold for commerciality of an oil field is much less than anyone elses, since they don't have to pay the cost of shipping the crude 1,000 miles to Singapore or Australia to get it processed. Their market cap (>US$500 M FD) appears very high vs. the current fundamentals (projected $50M/yr. of cash flow from the refinery) but they control 9 million acres of prospects over there and the markets are betting that they will make a large discovery at some point. In PNG there is thought to be plenty of 100mmbo + fields yet to be discovered. See a recent company presentation at mail.interoil.com I still like the stock a lot even after this latest runup on the Amex listing. They just issued some convertible debentures (convertible @ US$20) but the stock should be able to blast through that brick wall as soon as they can get the drill bit turning again. They had problems with 2 earlier wells, it turns out they were trying to get away for cheap by using rigs that did not have enough horsepower to get through the shale over there. Also the targets are deeper than they thought. So now they are waiting for a more powerful rig to show up from the US, which is due to arrive at PNG next quarter.