Singapore and PORT MORESBY, Papua New Guinea, Aug. 13, 2015 /PRNewswire/ -- InterOil
Corporation's (NYSE: IOC; POMSoX: IOC) analysis of the latest well
test data from the Elk-Antelope gas field in Papua New Guinea supports a two-train
liquefied natural gas project.
In announcing financial results for the second quarter to
June 30, 2015, InterOil Chief
Executive Dr Michael Hession said
the Antelope-5 well had exceeded all previous Antelope well
results.
"Our latest appraisal results confirm our confidence that the
field can support two trains," Dr Hession said.
"Our latest downhole pressure data from
flow testing shows clear connectivity across the field -- that
is, we see no evidence of compartmentalization either laterally or
vertically.
"The testing also indicates a world-class, multi-darcy reservoir
with strong deliverability, which should favorably influence
development costs."
Appraisal of Elk-Antelope is expected to finish later this year
and will be followed by certification of the resource volume.
In the past two weeks, Total of France has assumed operatorship of the PRL15
joint venture and the Elk-Antelope field, which is being developed
as the Papua LNG Project.
The joint venture recently selected
sites for gas field infrastructure, pipelines and the LNG
plant, and is proposing to build Papua
New Guinea's second LNG facility next to the
ExxonMobil-operated PNG LNG Project near Port Moresby.
Dr Hession said InterOil remained disciplined about capital
allocation, would streamline its organization to account for Total
becoming operator of PRL15, and would prioritize investment on
proving up existing discoveries.
Highlights
Papua LNG Project
The formal change of operatorship from InterOil to Total was
completed on August 1, 2015 with
InterOil continuing to provide technical services for Total in
PRL15 until the end of 2015 under the Operator Transition
Agreement.
InterOil will continue to operate its remaining licenses in
Papua New Guinea.
On July 2, 2015, the PRL 15 joint
venture unanimously endorsed locations for key infrastructure sites
for development of the Papua LNG Project.
The central processing facility will be near the Purari River in
the Gulf Province, about 360km north-west of Port Moresby, and will be connected to the LNG
facility by onshore and offshore gas and condensate pipelines.
Caution Bay near Port Moresby
has been selected as the site for the LNG facility.
The site locations and pipeline corridors will be further
refined as part of project development.
Selection of the final development concept is expected in the
first half of 2016 when appraisal of the Elk-Antelope field has
been completed.
This will be followed by front-end engineering and design with
early works scheduled to begin later in 2016.
Work has also started on project financing for Papua LNG with
the PRL 15 joint venture appointing financial, legal and tax
advisors.
Elk-Antelope appraisal update
During the quarter, the Antelope-5 appraisal well was flow
tested at different rates, with downhole gauges in Antelope-5 and
Antelope-1 recording pressure variations during the flow test.
Detailed analysis of Antelope-5 and Antelope-1 pressure response
data across the flowing and shut-in periods provided further
confidence that the gas volumes seen by the Antelope-5 test support
a two-train LNG project.
Consistent gas compositions and
pressure across the field as well as recent flow test data from
Antelope-5 and Antelope-1 suggest no evidence of
compartmentalization.
On April 27, 2015, Antelope-4 was
suspended due to drilling difficulties after intersecting dolomite
in the top of the reservoir. A replacement rig has now started
sidetrack operations.
Site preparation for Antelope-6 appraisal is nearing completion
with drilling expected to begin after the completion of the
Antelope-4 sidetrack.
It is expected that the certification payment from Total will
occur in mid-2016.
Non-PRL15 operations
The Triceratops-3 appraisal well was spudded on June 15, 2015.
The well is about 5.6km west-north-west of Triceratops-1 and
35km north-west of the Elk and Antelope gas fields.
Triceratops-3 is targeting additional volumes north-west of
previous appraisal wells and would provide tie-back potential to an
LNG project if sufficient volumes are proven.
Triceratops-3 has penetrated the
carbonate reservoir target with positive indications of gas and 13
meters of core was recovered. The well has now reached total
measured depth of 2,090m (6,857ft) and preparations for wireline
logging are underway.
This well has continued the improvement
in our drilling team's performance and was completed in 59 days,
comparable with the Antelope-5 well.
The Wahoo sidetrack is being prepared for plugging and
abandonment after sidetrack operations reached 1,589m (5,213ft)
measured depth without intersecting any carbonate reservoir.
The well will assist in evaluating future targets in this
frontier area.
At June 30, 2015, we had acquired
high-resolution airborne gravity gradiometry over 65% of our
16,000sqkm of licenses and had completed seismic acquisition over
Raptor, Bobcat and Triceratops.
Other
matters
On August 1, 2015, Sheree Ford replaced Geoff Applegate, who retired as General Counsel
and Company Secretary.
Ms Ford is an experienced corporate lawyer who has worked with
BHP Billiton, Oil Search, Roc Oil and Pexco Energy.
Financial update
InterOil returned a loss of $32.5
million for the quarter, most of which comprised the
reversal of $25.9 million of interest
income, recognized in relation to the Total certification
payment.
The adjustment was required with the certification payment now
expected in mid-2016.
After net expenditure of $87
million, InterOil finished the second quarter with liquidity
of $541 million, including cash and
receivables of $241 million
(June 30, 2014 -- $610 million).
The credit facility of $300
million remains undrawn.
Summary of
Consolidated Quarterly Financial Results for Past Eight Quarters
Financial Statements
|
|
Quarters ended
($ thousands except per share data)
|
2015
|
2014
|
2013
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Total
revenues
|
(13,643)
|
13,215
|
(13,182)
|
10,749
|
13,689
|
1,903
|
712
|
617
|
EBITDA
(1)
|
(30,583)
|
(20,317)
|
(60,443)
|
(12,135)
|
(10,252)
|
316,949
|
(27,272)
|
(99)
|
Net
(loss)/profit
|
(32,531)
|
(21,869)
|
(64,205)
|
(16,931)
|
52,266
|
318,637
|
(24,812)
|
(6,318)
|
From continuing
operations
|
(32,531)
|
(21,869)
|
(62,474)
|
(14,622)
|
(15,764)
|
310,825
|
(32,024)
|
(3,555)
|
From discontinued
operations
|
-
|
-
|
(1,731)
|
(2,309)
|
68,030
|
7,812
|
7,212
|
(2,763)
|
Basic (loss)/earnings
per share
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.46
|
(0.50)
|
(0.13)
|
From continuing
operations
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.30
|
(0.65)
|
(0.07)
|
From discontinued
operations
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
0.15
|
(0.06)
|
Diluted
(loss)/earnings per share
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.38
|
(0.50)
|
(0.13)
|
From continuing
operations
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.22
|
(0.65)
|
(0.07)
|
From discontinued
operations
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
0.15
|
(0.06)
|
|
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 and six months
ended June 30, 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 August
13, 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) 230-1085 in the US, or +1 (612) 234-9960 from outside the
US.
A replay of the broadcast will be available soon afterwards on
the website.
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
|
David Wu
|
Cynthia
Black
|
Senior Vice
President
|
Vice
President
|
Investor
Relations
|
Investor
Relations
|
Investor
Relations
|
North
America
|
T: +65 6507
0222
|
T: +65 6507
0222
|
T: +1 212 653
9778
|
E:
michael.lynn@interoil.com
|
E:
david.wu@interoil.com
|
E:
cynthia.black@interoil.com
|
Media Contacts
Singapore
|
Australia
|
Rob
Millhouse
|
John Hurst
|
Vice
President
|
Cannings
Corporate
|
Corporate
Affairs
|
Communications
|
T: +65 8112
5694
|
T: +61 418 708
663
|
E:
robert.millhouse@interoil.com
|
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/interoil-announces-q2-2015-results-300128093.html
SOURCE InterOil Corporation