Monday, July 12, 2010

BP (NYSE:BP) Surges on Stopping Leak, Selling Alaskan Assets

BP (NYSE:BP) had it largest one-day surge in 20 months in London on the possibility they may be able to stop the oil leak in the Gulf soon, and that they could generate capital by selling off some of its Alaskan assets.

The new containment cap being put on by BP today, if it's successful, would effectively stop the flow of oil seeping into the ocean, giving them some breathing room until they permanently plug it with a relief well.

BP is also negotiating with Apache Corp. to sell assets they hold in Alaska for a little under $12 billion, which would exceed their original goal of raising $10 billion through asset sales. Other assets they could sell are in several South American countries and/or Vietnam.

That could mean they'll stop at that point concerning raising capital in that manner, or they're going to use asset sales as a chief way of raising capital, seeing some are hesitant to invest in them, as well as the share price of the oil giant has been rising significantly lately.

The Sunday Times in London also reported that Exxon Mobil (NYSE:XOM) has been encouraged or given permission to investigate bidding on taking over BP. It could be premature to think that Exxon, or any other major oil company would take on BP at this point, at least not until a more accurate picture of what their liability will be emerges.

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