big rise - png oil discovery?

  1. 3,800 Posts.
    IOC have shot from $2.00 to $3.50 this week after mentioning oil shows in their weekly report from the Moose prospect. Intriguingly buying has been hot each day since the first report, albeit on low volume (this is a low liquidity stock), suggesting that drilling since the report could be good. The buyers are extremely aggressive. IOC only report once per week, so next weeks report will be interesting.

    Market cap seems high at $660 million now -however.......

    They have an oil refinery two thirds built.

    The Moose prospect currently being drilled has a target of 400 million barrels of oil of which IOC has no less than 100% of the permit.

    They are on a 16 well drill program currently on the first hole.

    The second prospect Rhino I believe has a target of 500 million barrels.....

    All of these holes are in a newly discovered oil province.

    Whilst we goggle at HDR's potential, is IOC an oil major in the making here????

    So how high can IOC go? If they have found 400 million barrels at Mosse, then their market cap of $600 million could actually be cheap. Then add on an oil refinery and 15 other huge prospects in new oil province to drill.

    I dont hold this one, but it could be a big story unfolding.


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