Why You Should Buy InterOil
By Shareholders Unite:In the present rough market climate, InterOil (IOC) should offer a nice upside (or better) for those that want to hide from the market mayhem elsewhere. While hardly immune to volatility itself, things are finally coming together for the company.The company had drilling success, confirming a new big recourse (Bwata-Triceratops or BT). It immediately concluded a rather lucrative farm-out deal with Pacific Rubiales (PRE), and, most important of all, the tension with (part of) the government seems to be waning as three different investment banks are busy clobbering a deal together that monetizes the gas. That process is nearing completion.Booming Asian LNG marketWhile the American natural gas market is plagued by oversupply and historically low prices, the gas, or rather, LNG market in Asia is booming. This is the result of various trends, like:
- Strong economic growth
- Reduction of greenhouse gases
- Pollution in cities and the need
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