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 (NYSE: IOC  ) 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.

Interested in more info on InterOil? Add it to your watchlist by clicking here.


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