SINGAPORE and PORT MORESBY, Papua New Guinea, May 12, 2015 /PRNewswire/ -- InterOil
Corporation's (NYSE: IOC; POMSoX: IOC) promising appraisal results
of the Elk-Antelope gas field in Papua
New Guinea underpin a
multi-train LNG project.
In announcing financial results for the first quarter to
March 31, 2015, InterOil Chief
Executive Dr Michael Hession said
well results from Antelope-5 had been very encouraging.
"Drilling results from Antelope-5 identify this well as having
the best reservoir thickness, quality and fracture density of all
wells drilled on the Elk-Antelope field," Dr Hession said.
"In particular, the thickness and quality of the dolomite zone
with porosity readings of up to 25% is superior to other wells,
signifying a high-quality reservoir.
"Antelope-5 has a 680 meter (2,231 feet) gross gas column and
appears to have even better reservoir quality than we initially
thought.
"Evaluation of seismic and new high-definition gravity data
indicates that the field could extend further west than originally
modeled.
"This data, combined with the top reservoir being higher than
expected, suggests potential for significant upside."
Under the initial clean-up flow, the flow rate at Antelope-5 has
been constrained to a maximum rate of about 74 million standard
cubic feet a day.
Testing will be extended to include pressure measurements on
other wells in the field to determine reservoir connectivity.
Initial results at Antelope-4 have provided strong indications
of a high-quality reservoir with a gross gas column of at least 300
meters (984 feet).
A porous dolomite section evident from core samples and logs suggests good
reservoir properties extend into the southern flank of the
field.
Antelope-4 has been suspended due to mechanical problems about
150 meters (492 feet) above the field gas-water contact.
The joint venture is now evaluating data from the well before
deciding on next steps.
The PRL15 joint venture will also drill Antelope-6 to provide
enhanced structural control and further definition of reservoir
extent and quality.
"These appraisal results underpin a multi-train development at
Elk-Antelope and the quantification of volumes in this world-class
resource," Dr Hession said.
In addition to Elk-Antelope, InterOil will continue to appraise
the resource at the Triceratops field and will resume exploration
drilling at Wahoo-1 around mid-year.
"With $628 million of liquidity,
InterOil is well positioned to move into this next exciting phase
of growth," Dr Hession said.
Highlights
Resolution of PRL-15 arbitration
On February 10, 2015 the
International Chamber of Commerce arbitration panel dismissed all
claims by the PAC LNG companies, affiliates of Oil Search Limited,
to pre-emptive rights over a share sale and purchase agreement
involving an interest in the Elk-Antelope field.
Consequently, the PRL15 Joint Venture unanimously voted to
appoint Total E&P PNG Limited as operator of the PRL15 Joint
Venture on February 27, 2015.
The appointment will take effect in accordance with an operator
transition plan and the joint venture operating agreement.
Progress on LNG Development
Promising appraisal results at Antelope-5 underpin a multi-train
LNG project. Total SA, the designated operator of PRL 15, has
continued work on the development, with a large team across the
joint venture working in France,
Papua New Guinea, Singapore and Australia.
It is anticipated that a preferred development concept will be
announced by the middle of this year.
17 tcfe targeted in exploration and appraisal
drilling
Site preparation at Triceratops-3 is advanced with the well
scheduled to spud in mid-2015.
It will appraise additional volumes to the north-west of the
previous appraisal wells.
Resumption of exploration drilling at Wahoo in PPL474 is planned
for mid-2015.
At Raptor, an appraisal well is intended to be drilled towards
the end of 2015 to follow up on the success of last year's
discovery.
At Bobcat, InterOil is acquiring additional seismic to identify
an appraisal well location for that discovery.
An exploration well at Antelope South in PRL15 is intended to be
drilled later in 2015.
Antelope South is about 1.9km south-east of Elk-Antelope and
will test a multi-tcfe (trillion cubic feet equivalent) structure
that partially underlies, but is separate from the Antelope
field.
InterOil will be carried by Total on the Antelope South
exploration well for 75% of the first $60
million of gross well costs.
InterOil's internal assessment of Triceratops, Wahoo, Raptor,
Bobcat and Antelope-South indicate that they hold a cumulative
gross, unrisked, potential resource of about 17tcfe.
Board renewal
The appointments of Dr Ellis
Armstrong, a former chief financial officer of BP
Exploration and Production, and Katherine
Hirschfeld, a former senior BP executive, were effective
from January 1, 2015.
The company also announced the appointment of Chee Keong Yap, a former chief financial officer
of Singapore Power, as a director from March
13, 2015.
Financial update
The net loss for the first quarter of 2015 was $21.9 million compared to a net profit of
$318.6 million for the first quarter
of 2014.
Most of this loss resulted from expensing $19.3 million of seismic that the company
acquired over its extensive exploration portfolio during the
quarter.
InterOil had $328 million in cash
and receivables plus $300 million in
undrawn credit as at March 31,
2015.
The credit facility has been extended to December 31, 2016.
Summary of Consolidated
Quarterly Financial Results for Past Eight Quarters Financial
Statements
|
|
Quarters ended
($ thousands except per share data)
|
2015
|
2014
|
2013
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Total
revenues
|
13,215
|
(13,182)
|
10,749
|
13,689
|
1,903
|
712
|
617
|
831
|
EBITDA
(1)
|
(20,317)
|
(60,443)
|
(12,135)
|
(10,252)
|
316,949
|
(27,272)
|
(99)
|
(11,293)
|
Net
(loss)/profit
|
(21,869)
|
(64,205)
|
(16,931)
|
52,266
|
318,637
|
(24,812)
|
(6,318)
|
(13,230)
|
From continuing
operations
|
(21,869)
|
(62,474)
|
(14,622)
|
(15,764)
|
310,825
|
(32,024)
|
(3,555)
|
(15,240)
|
From discontinued
operations
|
-
|
(1,731)
|
(2,309)
|
68,030
|
7,812
|
7,212
|
(2,763)
|
2,010
|
Basic
(loss)/earnings per share
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.46
|
(0.50)
|
(0.13)
|
(0.27)
|
From continuing
operations
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.30
|
(0.65)
|
(0.07)
|
(0.31)
|
From discontinued
operations
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
0.15
|
(0.06)
|
0.04
|
Diluted
(loss)/earnings per share
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.38
|
(0.50)
|
(0.13)
|
(0.27)
|
From continuing
operations
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.22
|
(0.65)
|
(0.07)
|
(0.31)
|
From discontinued
operations
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
0.15
|
(0.06)
|
0.04
|
Note (1) EBITDA is a non-GAAP
measure and is reconciled to IFRS under the heading "Non-GAAP
Measures and Reconciliation". More details can be found in
InterOil's financial statements for the quarter ended March 31,
2015 on www.interoil.com.
|
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 May 12,
2015, at 8am US Eastern time
(8pm Singapore) to discuss the financial and
operating results.
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) 230-1093 in the US,
or +1 (612) 332-0107 from outside the US.
A replay of the broadcast will be available soon afterwards on
the website.
Annual meeting and roadshows
The company's annual meeting of shareholders will be held in the
Onyx Room at the Park Hyatt New York, 153 West 57th Street,
New York on Tuesday, June 9, 2015 at 10am.
After the meeting, the company will have a non-deal roadshow in
North America and Europe including participation at Tudor
Pickering Holt's 11th Annual Energy Conference in
Houston on June 17, 2015.
About InterOil
InterOil Corporation is an independent oil and gas business with
a sole focus on Papua New Guinea.
InterOil's assets include one of Asia's largest undeveloped gas fields,
Elk-Antelope, in the Gulf Province of Papua New Guinea, and exploration licences
covering about 16,000sqkm of the Eastern Papuan Basin. The company
employs more than 2,000 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
|
Cynthia
Black
Investor
Relations
North
America
|
T: +65 6507
0222
E:
michael.lynn@interoil.com
|
T: +65 6507
0222
E:
david.wu@interoil.com
|
T: +1 212 653
9778
E:
cynthia.black@interoil.com
|
Media Contacts
Singapore
|
Australia
|
|
Rob
Millhouse
Vice
President
Corporate
Affairs
|
John Hurst
Cannings
Corporate
Communications
|
|
T: +65 8112
5694
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 in the future are forward-looking
statements. These statements 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 a number of assumptions, risks and
uncertainties, many of which are beyond the control of the company,
which may cause our actual results to differ materially from those
implied or expressed by the forward-looking statements. Some of
these factors include the risk factors 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 December 31, 2014
on Form 40-F and its Annual Information Form for the year ended
December 31, 2014. In particular,
there is no established market for natural gas or gas condensate in
Papua New Guinea and no guarantee
that gas or gas condensate from the Elk and Antelope fields 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.
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SOURCE InterOil Corporation