Why InterOil's Shares Jumped
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 jumped 10% today after the company announced early results from a new well.
So what: InterOil completed the logging program for its Antelope-3 well in Papua New Guinea and had fairly positive results. Average porosity in the pay interval was 10.2% and has a net-to-gross ratio of 0.66. This is similar to Antelope-1 and 2.
Now what: This is another good step forward for the company, and investors are obviously happy with the news today. The company is going through a partnering process and plans to sell down its interest in both the Elk and Antelope fields in the near future. Until that is done, I would be a little leery of jumping into this stock, especially considering the very volatile movements we've seen in the past year.
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The article Why InterOil's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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