SINGAPORE and PORT MORESBY, Papua New Guinea, Nov. 14, 2014 /CNW/ -- InterOil Corporation
(NYSE: IOC; POMSoX: IOC) today announced financial results for the
third quarter of 2014.
InterOil's Chief Executive, Dr Michael
Hession, said the company continued its focus on developing
the Elk-Antelope gas field and executing its drilling program.
"Papua New Guinea is emerging
as one of the world's most exciting new energy plays with
Elk-Antelope having the potential to be one of the lowest-cost,
most profitable LNG projects in the world," Dr Hession said.
"Our focus continues to be on creating value from
Elk-Antelope.
"With our drilling program, the biggest in Papua New Guinea's history, we are adding
value through exploration success and we continue our disciplined
and methodical approach to high-grading our exploration
portfolio.
"As we move into the most active year in our history, we are
funded and focused to extract maximum value from our first-class
assets."
Operational Update
On July 14, 2014, InterOil
announced the suspension of drilling at Wahoo-1 in PPL474 after
encountering gas and higher-than-expected pressures that could
compromise rig safety.
Significant concentrations of methane, ethane, propane and
butane had been recorded, and were believed to be entering the well
bore from permeable zones above the predicted reservoir zone.
InterOil plans to resume operations in 2015 after a detailed
review of well engineering, equipment and options, and after
regulatory approval of its revised plans.
On September 16, 2014, the
Antelope-4 appraisal well was spudded in PRL15, marking the
commencement of the final phase of Elk-Antelope appraisal.
In addition to acquiring new seismic over the southern portion
of Elk-Antelope, the company has re-processed seismic data over
Elk-Antelope and is using the combined data set to revise resources
modelling in preparation for development work on the field.
This work is complementing studies by the PRL15 joint venture
for development options for Elk-Antelope ahead of concept
selection.
On November 6, 2014, gas and
condensate were flared during testing at Raptor-1, an exploration
well in PPL475.
Consequently, the company today notified the PNG Department of
Petroleum and Energy of a discovery at Raptor-1.
The company is now planning to appraise the accumulation through
additional seismic, followed by appraisal drilling and
comprehensive long-term testing in 2015.
In the week of November 10, 2014,
Bobcat-1 in PPL476 was drilled to a final total depth of 3,208
meters after intersecting an interval of about 320 meters of Kapau
limestone.
Wireline logging operations are currently underway to determine
the presence of hydrocarbons.
Financial Update
The company's net loss for the quarter ended September 30, 2014 was $16.9 million, compared with a net loss of
$6.3 million for the corresponding
quarter in 2013.
Net profit for the nine months ended September 30, 2014, was $353.9 million, compared with a net loss of
$15.5 million for the corresponding
period in 2013.
This increase in profit by $369.5
million was driven primarily by the sale of an interest in
PRL15 to Total S.A. and the sale of the refinery and downstream
businesses to Puma Energy.
At September 30, 2014, total
liquidity available to the company was approximately $754.3 million, which included cash, cash
equivalents and net receivables of $454.3
million.
The company also has access to an undrawn $300 million credit facility led by Credit Suisse
and repayable in December 2015.
In the three months to September 30,
2014, the company's total expenditure was $130.3 million.
This included $55.9 million for
net exploration costs, $41.7 million
for the company's share buyback and $32.7
million for other costs including preparation for appraisal
wells, seismic activity, equipment purchases, drilling inventory
and corporate costs.
InterOil's share of net capital expenditure for the company's
three exploration wells in the quarter ended September 30, 2014, was $55.9 million, of which $27.3 million was for Raptor-1, $7.0 million for Wahoo-1 and $21.6 million for Bobcat-1.
InterOil's share of total net expenditure for the first nine
months of 2014 for all three exploration wells was $150.9 million.
The company expects its capital expenditure on drilling to
reduce significantly in 2015 as it moves from exploration to
appraisal drilling.
InterOil has a carry from Total on drilling costs associated
with Antelope appraisal wells.
Conference Call Information
The full text of the media release and accompanying financials
are available on the company's website at www.interoil.com.
A conference call will be held on November 14, 2014 at 8am US Eastern time (9pm Singapore)
to discuss the results and the company's outlook.
The conference call can be heard through a live audio web cast
on the company's website at www.interoil.com or accessed by dialing
(800) 230-1074 in the US, or +1 (612) 288-0340 from outside the
US.
A replay of the broadcast will be available soon afterwards on
the website.
Summary of Consolidated Quarterly Financial Results for Past
Eight Quarters Financial Statements
Quarters ended
($ thousands except per share
data)
|
2014
|
2013
|
2012
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Total
revenues
|
10,749
|
13,689
|
1,903
|
712
|
617
|
831
|
602
|
8,188
|
EBITDA
(1)
|
(12,135)
|
(10,252)
|
316,949
|
(27,272)
|
(99)
|
(11,293)
|
(5,138)
|
(22,452)
|
Net
(loss)/profit
|
(16,931)
|
52,266
|
318,637
|
(24,812)
|
(6,318)
|
(13,230)
|
4,003
|
(3,732)
|
From continuing
operations
|
(14,622)
|
(15,764)
|
310,825
|
(32,024)
|
(3,555)
|
(15,240)
|
(8,096)
|
(27,512)
|
From discontinued operations
|
(2,309)
|
68,030
|
7,812
|
7,212
|
(2,763)
|
2,010
|
12,099
|
23,780
|
Basic
(loss)/earnings per share
|
(0.34)
|
1.05
|
6.46
|
(0.50)
|
(0.13)
|
(0.27)
|
0.08
|
(0.08)
|
From continuing
operations
|
(0.29)
|
(0.31)
|
6.30
|
(0.65)
|
(0.07)
|
(0.31)
|
(0.17)
|
(0.57)
|
From discontinued
operations
|
(0.05)
|
1.36
|
0.16
|
0.15
|
(0.06)
|
0.04
|
0.25
|
0.49
|
Diluted
(loss)/earnings per share
|
(0.34)
|
1.05
|
6.38
|
(0.50)
|
(0.13)
|
(0.27)
|
0.08
|
(0.09)
|
From continuing
operations
|
(0.29)
|
(0.31)
|
6.22
|
(0.65)
|
(0.07)
|
(0.31)
|
(0.17)
|
(0.57)
|
From discontinued
operations
|
(0.05)
|
1.36
|
0.16
|
0.15
|
(0.06)
|
0.04
|
0.25
|
0.48
|
(1)
|
EBITDA is a non-GAAP
measure and is reconciled to IFRS under the heading "Non-GAAP
Measures and Reconciliation".
|
About InterOil
InterOil Corporation is an independent oil and gas business with
a primary focus on Papua New
Guinea. InterOil's assets include one of Asia's largest undeveloped gas fields,
Elk-Antelope, in the Gulf Province, and exploration licences
covering about 16,000sqkm. The company employs more than 2000 staff
and contractors. Its main offices are in Singapore and Port
Moresby. InterOil is listed on the New York and Port
Moresby stock exchanges.
Investor Contacts
Singapore
|
Singapore
|
United
States
|
Michael
Lynn
Senior Vice
President
Investor
Relations
|
David Wu
Vice
President
Investor
Relations
|
Meg
LaSalle
Investor
Relations
Coordinator
|
T: +65 6507
0222
E:
michael.lynn@interoil.com
|
T: +65 6507
0222
E:
david.wu@interoil.com
|
T: +1 281 292
1800
E:
meg.lasalle@interoil.com
|
Media Contacts
Singapore
|
Australia
|
|
Robert
Millhouse
Vice
President
Corporate
Affairs
|
John Hurst
Cannings Corporate
Communications
|
|
T: +65 6507
0222
E:
robert.millhouse@interoil.com
|
T: +61 418 708
663
E:
jhurst@cannings.net.au
|
|
Forward Looking Statements
This media release includes "forward-looking statements" as
defined in United States federal
and Canadian securities laws. All statements, other than statements
of historical facts, included in this release that address
activities, events or developments that InterOil expects, believes
or anticipates will or may occur are forward-looking statements.
These statements, which include statements as to planning for or
the timing of the proposed LNG project and future exploration, are
based on our current beliefs as well as assumptions made by, and
information currently available to us. No assurances can be given,
however, that these events will occur. Actual results could differ,
and the difference may be material and adverse to the company and
its shareholders. Such statements are subject to several
assumptions, risks and uncertainties, many of which are beyond the
company's control, which may cause our actual results to differ
materially from those implied or expressed by the forward-looking
statements. Some of these factors include risks discussed in the
company's filings with the Securities and Exchange Commission and
on SEDAR, including but not limited to those in the company's
Annual Report for the year ended 31 December
2013 on Form 40-F and its Annual Information Form for the
year ended 31 December 2013. In
particular, Papua New Guinea has
no established market for natural gas or gas condensate and the
company can make no guarantee that gas or gas condensate from the
Elk-Antelope field will ultimately be able to be extracted and sold
commercially. Investors are urged to consider closely the
disclosure in the company's Form 40-F, available from us at
www.interoil.com or from the SEC at www.sec.gov and its Annual
Information Form available on SEDAR at www.sedar.com.
SOURCE InterOil Corporation