Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of InterOil (NYS: IOC) fell 10% today after the company updated drilling information and an LNG agreement.
So what: Today the company said its Triceratops-2 well in Papua New Guinea had been drilled to a total depth of 5,971 feet. Delivery of drill stem testing equipment, which could provide more information about the well, has been delayed, but the company is forging ahead with drilling.
The company also said the final decision date for an LNG project with Mitsui has been delayed by six months.
Now what: The information today doesn't really fundamentally change the investment thesis yet, it just puts data into question. Management should have delivered DST testing to provide vital information about the well's commercial viability. This stock is just too speculative for me to jump into right now.
Interested in more info on InterOil? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.