zzzzzzzzz......consolidation trading range
IAE continues to consolidate in its new trading range. Seems to be some minor support at $1.27 and I anticipate it will churn in this range of about $1.30-$1.50 (give or take a dime) for at least another month. My guess is it will require the FPF-1 to sail from Gdansk before we move much above $1.50. Next stop will be in the $2.20's maybe by the end of Q3 if all goes to plan with Stella and assuming a stabilization of Brent in the meantime. A takeout price could then reasonably be seen around $3.00 on a 35% acquisition premium. JMHO, although I like our crafty friend GG's TO target price of $4.25 much better.
As expected OPEC officials are now discussing the possibility of an emergency meeting to put a floor under Brent in the mid-$50s. M&A activity is likely to pick up once oil stabilizes and IAE would be a logical target.
Stella #5 results should be very soon. Will be surprised if they are not good. Start-up production should be 35,000 boepd gross.
On the count of three everyone,
STELLA!!!!!
https://www.youtube.com/watch?v=qVrU0JNAgqI